that was oaktree capital's cofounder howard marks.ng us now for the rest of the hour is the head of the global portfolio solutions for at goldmanmanagement sachs. we've come off the best week for equities since 1974, and a lot of the fed coming in. how much further can the latest move from the fed given lift for risk assets or do you expect that to fade in the coming days. >> good morning. thanks for having me. rally, wetes to the have seen an extraordinarily rapid pace. it has been unprecedented, but then the decline was equally rapid. inuess the current pricing the markets is implying less growth in two years. quite a v-shaped recovery. a lot of that is clearly do to the extent and swiftness and targeted nature of this policy response and looking at the latest data as it relates to the flattening of the inflection curve. just to put that into context, we look at asset prices. similar to where we were a year ago, the economy was at full employment, we had a healthy, robust consumer read earnings growth for 2020 was expected to come i

romaine: howard marks, oaktree capital, speaking with our very own erik schatzker.op that? we will bring back joe weisenthal who will talk to us about food delivery and grubhub's recent guidance. this is bloomberg. ♪ back with us on the program, joe weisenthal, coming back in place of our don't miss this segment. i'm told you been keeping an eye the deliveryd services. to jim talked last week gino's and he was talking about how he was short grubhub. people are wondering, maybe this will be one of the winners. obviously, people of stop going to restaurants as much. if you look at grubhub's announcement, they kind of confirmed that in some markets but they have seen a pickup in ordering. shares selling off at one point down 8%. actually more than that now. in pickup they are seeing some markets now is not offsetting overall weakness that they are experiencing from this crisis. scarlet: you just read my mind. let's take a look at what the noted short seller discussed. jim: people believe that everyone is ordering in. but actually, it looks like volumes are down for a l

how much has oaktree put to work since this crisis began?t give you a of a publicas part company i do not want to disclose information that has to be generally disclosed, but i will say we were strong buyers in the month of march, and in the panic or the motivated selling that accompanied the good buys towere be had. erik: you know whether bruce , jay, werecochairman able to buy as much as they wanted. many securities were selling at deep discounts from where they had been weeks earlier. that's right. bruce did a great job and he was a substantial buyer. bruce way, back in 2008, and i were going at it all the time. i think we are going too fast, i think we are going too slow. of a cascade midst downward is always challenging and always with mixed emotions. we try to calibrate. lot but be buy a disciplined so as to have money left for the next day and so forth. i think we are happy with the events of march. erik: the fed is now buying fallen angels along with a lot of nongovernment debt. i am almost getting confused by the scale and depth of

oaktree capital's cofounder howard marks speaking with erik schatzker.h is with us right now. is always fascinating to listen to howard marks. do you think he's in too soon? do you think what we saw in terms of a rally was just a bear market rally? a little bit of a head fake and markets have further to fall? ben: no, i don't think he is into soon. i would never question the great man anyway. but i think of course we could thosee the markets test lows, but it still would be appropriate to be adding on weakness on sort of a 12-month view, given that we believe we can emerge from this health crisis and emerge with economies in reasonable shape, given all the efforts that central banks and governments have gone to that weakness represents an opportunity and the equity market. likewise, we have seen this considerable rally and i would caution against using all of our dry powder at this very moment. buckman, who works at citigroup as an equity strategist, says that a decent rule of thumb is that stock markets should fall generally as much as corporate earning

how much has oaktree put to work since this crisis began? >> well, i can't give you a number, eric.c company, i don't want to that hasn'tormation been generally disclosed. we were strongat buyers in the month of march. and in the panic or the motivated selling that know,anied the virus, you there were good buys to be had. whether bruce carr, the cochairman, jay, the c.e.o., everyone else back in los angeles, were able to buy as much as they wanted? lot of forced selling. and many securities, as you selling at, were deep discounts to where they had been only weeks earlier. right. that's well, you know, bruce did a great job. buyer.was a substantial at the time, and by the way, back in '08, bruce and i were at it all the time. well, i think we're going too fast. no, i think we're going too slow. and you vacillate. and, you know, buying in the midst of a cascade downward is alwayschallenging and introduces mixed emotions. so, you know, we bought. we tried to calibrate. to buy a lot. but be disciplined so as to have day. left for the next ♪[music] beyond the routine checkups. beyond the

futures term positive despite the process of more grim jobs data today as oaktree and guggenheim leave space for gains in debt markets. away.is less than an hour global coronavirus cases top 2 million. germany is set to start loosening the lockdown for next week, and president trump will unveil guidelines to reopen today. european futures turned positive despite historic declines in retail and factory gauges, sinking stocks on wall street. attention turns to today's jobless claims. plus, wti crude at an 18 year low amid a record collapse in the u.s. fuel demand. washington is considering paying drillers to leave oil in the ground. just under an hour away from the start of cash trading. nymex crude still under $20 a barrel, but rising today. we see futures doing the same, regardless of where you look. european futures are up half a percent. on dax a percent futures, quarter percent on ftse futures. dow jones, s&p, and nasdaq many contracts all showing a little bit -- just the slightest 10th of a percent of a game today. anna? anna: let's talk about the breaking news from european corpor

futures term positive despite the process of more grim jobs data today as oaktree and guggenheim leaveebt markets. trade is less than an hour

oaktree saying there's a possibility that we haven't discounted the worsening of news.s the contra commodity trade, if those three huge calls that i would say are people i would pay some attention to. gold has been drifting lower last couple of days. news had some slightly bad in the physical world. china's demand has not yet picked up, russia has stopped buying, they could potentially turn sellers in order to cover some of their rising budget deficit later in the year. at least in the short term that is adding some pressure. , it isinflation story key here because gold is a correlation to other markets. that's the way inflation will come in. over the last three months compared to some of the other asset classes, is starting to do well and i think it will continue to do so. [indiscernible] indicates that longer-term investors are continuing to get into the market. the funds are more price driven so they are easing off somewhat recently. the worldhe outlook is staring into right now is gold right now. much forank you so joining us. show, three the market titans have warn

i want to get your thoughts on comments from howard marks of oaktree.hat it is time for investors to be more ostensive. the cautious positioning has served its purpose. while waiting for the market is irrational, he says now he is less worried about losing money and more interested in participating in gains. is that how you would approach the credit market right now? wen-wen: thank you. it is good to be here. i would take a slightly different view from him, and that i think it is still a good idea to maintain a good cash balance and portfolios. the market has been more risk on in the last few weeks. i don't think we are out of the woods yet, because we still need to see how spiking unemployment in the u.s. is going to play out through the economy and markets. nejra: what signals would you be looking for, either in markets or and macroeconomic data to make you want to take on more risk? that we well, i think want to see that there isn't a cascade of delinquencies building up in the system. if we think about the american household or small business, liqui

we end with oaktree capital howard marks.known for buying up debt of troubled businesses says the troubled central bank is protecting investors and companies from the consequences of their actions. he says when they take on too much averages, businesses are shielded. that is your bloomberg business flash. francine? francine: thank you so much, that the on hurtado, in new york. -- viviana hurtado in new york. we understand that germany will likely extend the national lockdown measures until may 3. germany also one of the first countries mulling possible easing, but for the moment they are extending. we know that angela merkel, the chancellor, will speak to various regional governors today to figure out the next step. let's go to james athey, senior investment manager at aberdeen investment management. we saw the spread widening italian -- and german bunds. is that all with their ability to handle the pandemic? james: i think what we are seeing -- to be honest, the conversation is quite similar to the broad market conversation

coming up in the next hour, we will hear from oaktree capital cochair and cofounder howard marks. ♪ federale chairman richard clarida spoke with michael mckee and tom keene about the central bank's ability to keep out of a deflation trap. have a listen. >> i am very confident that as the economy recovers from this hit and begins to return and recover, that we, at the appropriate time, will be able to unwind these programs. there's nothing fundamentally wrong the u.s. economy. it came into the year and a very strong position in terms of employment, growth, and financial markets, and i am confident we can get back there, and up the appropriate time we can scale that these programs. michael: let me follow up on that and ask you this. with probably billions of dollars in loans out to companies near zero for over four years, are you ever going to be able to raise interest rates again, or our we looking at the fed doing yield curve control now? right now we are its where they are, which is very close to zero -- right now we are not doing yield curve control, but we indicated in our march meeting

sources say think the second andncing deal in the week, oaktree capital, it builds on the early deallverlake and six partners, which are also participating in the new arrangement. johnson & johnson seeing record demand for its pharmaceutical products. that is as coronavirus cases near 2 million globally. world arearound the racing to tackle the pandemic. his timeline for a possible antibiotic. vaccine,espect to the things continue to progress. as early as late january when we found out the secrets of the coronavirus, to identify a lead candidate with backups, we are doing clinical research and hope to be first in human by september. it should lead to a readout of the data in late december with the hopes of producing about one billion vaccines in the early part of next year. upare simultaneously ramping manufacturing capabilities across the globe to ensure we can handle that demand. things are very much on track to what you heard a couple weeks ago. reporter: how are you able to ramp up speed so quickly? my understanding is vaccines take years. what makes this different? >> what we ar

oaktree capital is seeking $15 billion to invest in distressed credit, the largest fund of its kind evercohead of alternative capital at ubs joins us on the phone. really good to speak to you. thanks for joining us on the european market open. opportunities in distressed debt -- do you see a lot of opportunities at the moment because of dislocations in the market? they are still present, i guess. >> yes, the distressed debt market has reached astonishing numbers in the past couple of weeks. talking about one trillion dollars, which is extraordinary. insee a lot of opportunity some say sectors, and this is a once-in-a-lifetime is why aty, and that lot of money, i think, will be directed to this asset class over the next couple of months. meanwhile, have we seen the private equity side of things slowing down, the deal activity? give us a sense of how nonexistent deal activity is or how much slower deal activity is behind-the-scenes. >> we started with q1 this year, .hich has been a record year i think q2 is going to be very slow and the next couple of months are going to be very slow. we h

you see oaktree is one of these players. appaloosa, elliott.osition to enter this market at what they see is very cheap prices that might rebalance significantly. they are looking at returns of 20 to 30%. if you don't have money already, you are probably not able to enter these trades. but with that said, because there are a pretty hefty list of buyers, all of them have different cost to capital, so let's see how much they are really able to get that for. alix: 20% to 30% returns, that's huge. sonali pesek, thanks so much. excellent reporting. coming up, one hot wall street we just sort of talked about in terms of whether the fed should or can buy mortgage backed securities, but also, what to they do about banks, their dividends and buybacks? we will break it down next. this is bloomberg. ♪ to help you stay informed of the latest news just say "coronavirus" into your xfinity voice remote to access important information and special reports from around the world. and to keep your kids learning at home, say "education" to discover learning collect

oaktree would buy up debt in struggling companies in some cases and see control of businesses and restructuringinvestment officer scott minor deployed about $7 billion in distressed credit markets last month, almost three times as much as private equity giant kkr. coming up, g7 versus em currencies. we are going to get to it and look at what volatility is telling us in today's trader's take. this is bloomberg. ♪ alix: time now for trader's take. joining me is bloomberg intelligence. what if you got today -- joining me is damian sassower of bloomberg intelligence. what have you got today? em implieddamian: currency volatility is not declining at the same place we are seeing for g7 nations. central banks across em are cutting rates aggressively, turning real rates into negative territory, and this is keeping fx implied vol elevated. alix: so how do you trade something like that? damian: what you do is basically say, we are not going to trade it because the uncertainty is too high. you must remember, the jp morgan em currency index is down 13% year to date. that is 30% over the last five years, an