torsten: question.n you think about what happened as the reaction in the stock market, one is that people see this as a sign that it is an interpretation of what the fed saw and the market did not see. the economic outlook has deteriorated significantly and we are not quite getting from the press conference. what he did say, we think this is good for now and we think the policy stance is enough in terms of thinking about what will happen for the next meeting. he was signaling that no more cuts will be coming for now. we need to see some economic data. this is actually as negative as we are all fearing. his the economic data potentially holding up. looking ahead, the answer to your question, jobless claims is the number one variable we are watching. this is such a critical variable leading into the labor market. romaine: some of the reaction seemed to hedge on the comments about the toolkit and that that might not be enough. that you that sense have to have something more than rate cuts. qe, fiscal stimu

deutsche bank torsten slok tells what means for the global markets.sten you had a widely misquoted chart can you tells what it said and what it didn't say? >> the point of this chart is to try to figure out how quick was this correction that we saw over the last week, and the answer is if you look at it from the peak that was an all-time hi, how many days did it take before we got a 10% correction? this was the fastest we have seen basically since the 1930s. so the reason why this is interesting is doing from euphoria basically a week ago we are at all-time high every thing is good, now we suddenly have a whole different view now that we come to the end of this week. jack: 's are generally investors are told when everyone else is selling you're supposed be buying. at what point do you determine it's a buying opportunity or you ain't seen nothing yet it's going to get worse? >> the old saying is you do it at the worse and you look at the situation today can get much worse? the problem with the situation is so difficult to figure out what the imp occasi

now that's about to change, thanks to torsten schreiber and his wife aida.ey're the founders of a company called africa green tec. they arrive to great fanfare. their company brings solar power plants to remote villages in the sahel region. everyone here has been looking forward to this day for a long time. >> "it's such a relief to finally achieve e this and mae it possible for the people here. >> "this has taken nearly nine months of preparation. when the moment finally comes where you know, now it's happening, tomorrow there'll be light, it's a great relief. " >> while the villagers celebrate, the malian technicians from africa green tec set to work. there's lots to do before the lights can go on. after the long journey, every component needs checking. the container spent six months at the customs office, followed by a long drive lasting many days over sandy roads. the solar system costs 150,000 euros. the hope is, it will strengthen the local economy. >> "to make a solar plant like this worthwhile, you need a village with at least 4 to 5000 residents. we

torsten: that pushes gdp down quite hard. have been a function of, will the lockdown last one month? will the lockdown last two months? in china you saw gdp go down 50% quarter over quarter. lasted in wuhan about 50 days. if you do that exercise and ask what that does for u.s. gdp? if we were a little bit later, and if the lockdown last between one and two months, you also get to the impact on gdp water over quarter in q1 could be down as much as 20%, 30%. as mike just mentioned, airline factories are closed. all manufacturing is closed. the drop is going to be very severe. alix: it's a great point. how do you look at it? it is a foregone conclusion that this is going to be a very sharp correction. the only question, how long it goes on for. this is why jobless claims are going to be so important. i think the government has an ability to restrain that. if they were to offer to continue look, we will to pay your employees, that is going to mean the unemployment rate does not rise as much as it could. if they can do that, you c

to come into play and also i think it's important to note -- here i would disagree with my friend torsten a little bit is they can't reverse whatever they do right now back in december chair powell promised there would be no tightening until they actually realized their 2% inflation target so once they come down then they're down for the duration until you get inflation back up. so i don't think they want to get too close to zero. i think they would like to get two or a little bit below where the yield is on the two-year note and get a normally sloped yield curve and they would feel more comfortable as opposed to where they are right now, but i really don't think they want to test the limits of conventional policy right now and if they went to zero they would and then that raises the whole issue of qe and monetary fiscal policy cooperation and all of that stuff. >> but, paul, i just argue one footnote to that which is i think the timing and magnitude of federal reserve interest rate cuts is going to be highly contingent this time around on fiscal policy. i believe behind the scenes and al

this is according to deutsche bank's torsten slok.t only are millions losing their jobs, but the link would see rates had been up even before this outbreak began. it is especially true when it comes to auto loans compared to credit card dealing with these. 20% of u.s. workers now make less than $600 a week. consumers were already a tight spot to begin with." coming up, will we see volatility calm down, and what does that wind up meeting for the broader markets? what really matters most? dean curnutt will be joining us. ♪ alix: welcome back to "bloomberg daybreak." we have been waffling around positive/negative territory. i want to focus on european banks as many of them, like unicredit and abn amro suspend their dividend to help their liquidity situation. this has been pushed by the ecb. switch of the board. it is still a stronger dollar within the g10 space. you are looking at the cable rate also, after you had a downgrade by one of the main rating agencies on friday, but not the worst off in the g10 space. you're seeing a slight bit

let's get more on this now with torsten bell, chief executive of the resolution foundation, which isorks to improve the living standards of people on low to middle incomes. he was economic adviser to the then—chancellor alistair darling during the 2008 financial crash. hejoins me from haringey in north london. good morning. thanks forjoining us. what would you like to hear from the chancellor? what we need to see is a recognition that we have now certainly move from just a medical crisis into our economic crisis and its important to understand as a lwa ys its important to understand as always when we go into economic crises the exact nature of the one we face and in this case it is one thatis we face and in this case it is one that is going to be particularly felt ha rd est by lower that is going to be particularly felt hardest by lower earners, low income families because they are the ones that work in the sectors hit most by the social distancing measures we are putting in place. for good reasons, to tackle the medical emergency, but they are having very fast and that economic effe