this is bloomberg. ♪ ♪ vonnie: live from new york, i'm vonnie quinn. london, i'm guy johnson. this is "bloomberg markets." let's find out what is happening with the bloomberg first word news. here with the details, ritika gupta. ritika: british prime minister boris johnson warns that the coronavirus outbreak will become more significant to the u.k. in the coming days. meanwhile, new york is expecting more cases after identifying its first. iran and south korea both reported another jump in infections. polls show bernie sanders dominating the democratic presidential race in california one day before the primary. leading runner-up joe biden 32-14. 14 holdings one of primaries tomorrow on super tuesday. in india, the death toll from riots last week has climbed to 46. the violence began over the disputed new citizenship law. hundreds were killed -- hundreds were injured. other than one tweet, prime minister narendra modi has been publicly silent. a border crisis triggered in the european union. greece declared a state of emergency after turkey told million

vonnie: right. if the fed is looking at the bond market today, where does it want those yields to be? effectively, we are where we were at the end of last week. anything?one does is ite thing it means the steepening of the yield curve we have seen over the past couple of weeks is likely to be more embedded now. one of the risks is that the fed , if they were definitely not cutting, the market was likely to see a lot of the curve steepening have seen verse, and wind up with very flat curves. that would make things in risk assets just a little bit more uneasy because the market, certainly the equity market, looks at twos-tens three-month-10 year interest rate spreads as a key indicator of whether or not we are going to have a recession. in reality, it means the federal reserve is either behind or ahead of the curve. this basically puts the fed on what the market was expecting in terms of footing. let me say that if the federal reserve cuts more and the market is anticipating another 0.5% rate cut duri

vonnie: i'm vonnie quinn. here is a look at the biggest business stories right now.oshi son making his biggest plan to silence doubters. he has unveiled a $40 billion shoreo set off assets and up the crumbly market value. they plan to buy up stock. and -- will plead guilty to involuntary manslaughter charges for the wildfires last year. they filed for bankruptcy protection. the fires were blamed on their equipment. and commercial mortgages are on the back of collapse. the ceo of: capital is calling on the government to take action. effectould be a domino of catastrophic portions. that is your latest business flash. amanda: you can catch all the interviews you see on bloomberg . this is bloomberg. ♪ >> it is 2:00 p.m. in new york. it is 6:00 p.m. in london. i am scarlet fu hosting from home. romaine: i am in the studio and this is "bloomberg markets: the ok, you are the designated survivor in your secret bunker there. let's take a look at the markets. it has been a wild day. think about s&p futures overnight. we rallied 9% off of the bottom. but we opened lower. t

vonnie: indeed.et to the markets now and have a look at not just the stock market, but the bond market. we just had a new york fed announcement saying they are coming in hard into the treasure market, $30 billion worth of bonds across the curve. our alex harris tells me it looks like they are frontloading the schedule and trying to clear the inventory, and that is why we saw that announcement a few moment's ago. a couple of guests with us to explain the moves come a bloomberg's dave wilson, and we also have john authers with us, author of some excellent columns recently. dave, we are seeing a rebound, but i've seen several notes today sit -- today to suggest that we are going to expect some rebounds, but this will likely still get worse. dave: it is understandable because we don't have a very clear sense of how the coronavirus outbreak is going to affect companies' results. we have some indications, but not a whole lot. ticket company like broadcom. they came out yesterday with quarterly figures. the

vonnie: from new york, i'm vonnie quinn. this is "bloomberg markets."rcore isi head of comic research, it -- of economic research, is a business cycle expert. he's also on the board of the china institute. no better time to have him in studio than today. thanks for coming. we will get to the election news in just a few minutes. first, we got services data better-than-expected this morning. all is obviously not well. you do hundreds of proprietary surveys on a daily and weekly basis, so you have up-to-the-minute gdp growth data. what is it telling you? ed: it was really good. the economy has been really good. now, andtracking china i think the u.s. economy is going to really get weak and have zero growth in the second and third quarter. vonnie: zero growth, in spite of the 50 point fed cut? ed: right. it doesn't really help the virus very much. i think it's going to be really weak, and our surveys, right now they are about 52, zero to 100. i think they will probably drop to 45. vonnie: on china, what are you seeing in terms of overall gdp growth number?

vonnie? vonnie: a little bit of breaking news.isiana is postponing its primary because of the coronavirus, according to a report on cnbc. louisiana postponing its primary. this is the first date. assuming we will see more. the first date to postpone its primary due to the coronavirus. we are back with peter garnry, head of equity strategy at saxo bank fresh off the trading floor. talk to me about daily percentage changes. we have seen a massive amount of daily percentage changes over the last two weeks. for how long can markets withstand this kind of churn? peter: we are in the critical 2008 that we had back in where there is a lot of policy action, and we could have a brief couple of weeks rally after some of these policy measures, and that is the data comes in from the macroeconomy, what is the real impact on the ground for businesses in europe, and when we get to the u.s., what will be the impact on the world's largest economy? all of the markets will readjust expectations. where will rates be? we could have another race down.

vonnie: i'm vonnie quinn in new york.sia saudi oil price wars left investors really, u.s.-saudi accord could be in the cards according to the u.s. energy secretary. an alliance is one idea under consideration to save prices. >> there are many ideas that have floated around the policies. that is one of them. i don't know that that will be presented in any formal way. vonnie: joining us now from washington is mike summers, u.s.-saudi arabia, there have been in agreements throughout the years, do you see something formal in the cards? >> i don't think we will see any new cartel that the u.s. or saudi would enter into. thate very concerned taking one cartel like opec which we have argued against for many years and replacing it with a new cartel, that wouldn't be the policy solution that api would advocate for. we expect one cartel to continue to exist like some sort of protection curtailment or control in the middle east, is it inevitable that will include america? >> i don't know about that. this is an industry that has reli

vonnie: i'm vonnie quinn. vonnie: this is "the european close" on "bloomberg markets."tter is surging today and the best performer in the s&p 500. bloomberg reporting that elliott management is pushing for changes after taking a $1 million stake in the company. that includes possibly replacing jack dorsey. elliott has nominated some directors. let's get the details. candidatetter a good for elliott, which doesn't tend to invest in companies like this? scott: it is the perfect company, because tech companies typically have a control shareholder or founder who has control over the company. twitter is different. they have a single stock, which means that anybody can accumulate a certain amount of shares and affect change, which is what elliott does. guy: what role will dorsey play in the whole process? he was not in the meeting over the past few days. can we assume that he will exit gracefully or will he go with a fight? scott: that is assuming he does go. i would say that meeting that happened between elliott and put her on friday evening that we reported on this morning,

vonnie: from new york, i'm vonnie quinn. this is "bloomberg markets."n hour and 15 minutes into the u.s. session. here's abaco belittle. -- here's abigail doolittle. abigail: monday was the worst selloff for u.s. stocks since 2008. the s&p 500 near session lows. it is orderly, tired almost. the stoxx 600 has flipped lower. at had been higher earlier. the euro is climbing on christine lagarde saying that the ecb is ready to do anything it will take, and that there should be a coordinated global response around the virus. stimulus from italy around the virus. the euro is climbing on all of that, weighing on the dollar. bringing crude oil into the picture, down 2.3%. a risk off mood around a potential global impact on the virus. over the last 15 trading sessions, the s&p 500 is close to a bear market, at this point down 17.7%. not so long ago, close to a true bear market. the question is whether it will join the dow transports. seems pretty likely technically. we take a look at the sectors in the terminal using the imap, all 11 sectors are lower. the worst

vonnie: from new york, i'm vonnie quinn.he rp and close on "bloomberg markets -- the european close on "bloomberg markets." the nasdaq performing the best today, but still down 1.3%. this is the sixth down by 2% day , so we will see how we progress throughout the coming hours. the vix is up around 35, the 97, and the around yield is down to 0.9376%. no let up on those lower yields. guy: in terms of the picture 600 aere, the stoxx little bit more on the story here in europe. nevertheless, we are off session lows. we are down by 1.6%, 1.5% for the dax, cac 40 down by 1.8%. in terms of some of the biggest losses, you are seeing city world -- you are seeing cineworld down, responding to the bond movie and suspicions we could see further movies being postponed as well as a result of people not thing to go to the cinema right now. european close is next. this is bloomberg. ♪ guy: 30 seconds until the end of regular trading in europe. european equities are back to bright red. we are down 1.5%. terms of the way the market is set up,

vonnie: thank you for that. guy: i'll pick it up. thanks, vonnie.et's talk about what is happening in europe. the euro area plunging the most on record after the furious spread of the coronavirus forced businesses invest parts of the region to shut down, and prospects are dwindling that life will return to normal anytime soon. we are joined now by poul thomsen, imf europe director general. europe is heading for a recession. we know that. how deep do you think it is going to be? poul: i thick it could be deep. we are deliberately shutting down big parts of the economy as a way of getting to grips with this crisis. parts ofonessential the economy is defined and inputs is where the are being shut down is about 1/3 of gdp. for means for the ever -- that every month it continues, that means -- of gdp. this will have a very significant negative impact on the european economy in the short term. the good news is that the policy .esponse is very powerful central banks are providing significant support. fiscal policy is providing targeted support. the first i

vonnie: i'm vonnie quinn in new york.unprecedented aid package that among other measures could make it easier for community banks to lend. for more let's bring in christopher maher, chairman and chief executive officer of oceanfirst. jersey anded in new obviously you make a lot of local loans. where are you seeing signs of trouble? christopher: we see a couple of signs. it's obvious places in the economy. it is the restaurant sector, it is the hotel sector -- really, across hospitality. others are doing well. anyone in logistics is having trouble keeping up with demand. this stimulus package is important. front, i knowt that as of march 23, and likely this number has changed, but you received forbearance requests from 195 borrowers. what is the procedure in order to make sure that you can offer that and stay in business? christopher: we've been very proactive. we were one of the first banks to offer that proactive forbearance agreement. we have been reaching out to our commercial borrowers. we have had hundreds of those c

this is bloomberg. ♪ ♪ vonnie: live from new york, i'm vonnie quinn.: from london, i'm guy johnson. this is "bloomberg markets." with michaele back metcalfe, state street global head of microstrategy. michael, is there a difference between synchronized or coordinated action and what we are getting right now, which is governments acting on their own, but more or less at the same time, along with central banks acting on their own, but more or less at the same time? michael: i think there is a if after effect, so the call earlier in the week, leading attral banks the same time, that would have a difference. i think they talked about broadly their plans. i think each economy is going to be impacted in a slightly different way as the virus spreads, and is contained in some countries and isn't into others. i think what we are getting is, to be frank, pretty sensible. i think it a very similar way to house intra-banks reacted to the trade war last year, they are being very proactive. the fed has cut 50 basis points against an economy which, for the moment, lo

this is bloomberg. ♪ ♪ vonnie: live from new york, i'm vonnie quinn.: from london, i'm guy johnson. this is "bloomberg markets." let's find out what is going on with abigail doolittle. abigail: we have a bit of a rebound rally on our hands around the world. the s&p 500 and the nasdaq buzz up about 3.5% or more after climbing to 4% on the open, but giving back some of the gains. some of the bulls are still trying to take charge after yesterday's stock market plunge, the worst day since 2008. we have strength in europe, too. a big piece of this is the fact that we have oil on the rebound, up about 9%. you can see crude oil are around $34 a barrel. over the last two days, we have the s&p 500 lower. lots of volatility here for the s&p 500 between yesterday's huge selloff in today's rebound rally. we are still down 4%. is it a real deal rally or a dead cat bounce? supporting the fact that stocks are higher, we have bonds lower. it is very hard for investors to buy stocks if you have bonds in rally mode. also have the yen dropping on the day against the doll

vonnie: exactly. scott bauer of prosper trading academy, thank you for joining us this morning from the cme. just want to point out that right now, the s&p 500 is down 6.2%. diamondback energy the worst performer. we have a trio of stocks higher. capital oil, autozone, and o'reilly automotive. presumably, people still buying provisions. all other stocks in the dow are lower. the dollar index is on the cusp of dipping below 95. we have the vix trading at -- more markets next. this is bloomberg. ♪ hi! we're glad you came in, what's on your mind? can you help keep these guys protected online? easy, connect to the xfi gateway. what about internet speeds that keep up with my gaming? let's hook you up with the fastest internet from xfinity. what about wireless data options for the family? of course, you can customize and save. can you save me from this conversation? that we can't do, but come in and see what we can do. we're here to make life simple. easy. awesome. ask. shop. discover. at your local xfinity

vonnie quinn is in new york. we are coming you down to "european close" on bloomberg markets. ♪ vonnie: we are seeing some activity. we gave up our gains when it looked like both the house and senate would be out next week and it would be difficult to get anything done fiscally in terms of legislation before next week. the timeline is getting pushed out. because of that we lost all of our gains. 3% gains in some cases. then we had some mike pence strategy from the meeting with insurers. at that meeting mike pence said there would be no surprises, there would be 4 million test sent out and there would be no co-pay. insurers would waive co-pays. that gives the markets the idea we are going to get an accurate and quick assessment of those infected and those passing it on. we also heard president trump pay lip service to the fact that they were looking at the cruise industry and airline industry and that has stocks bouncing. the s&p 500 up almost 1%. the 10 year yield, 60 basis points. jim vogel out with some good le

guy: exactly. -- vonnie: exactly.hose jobless claims did serve four times the previous record, at 3.2 8 million. business is laying off workers so they can apply for unemployment assistant, so it is all part of this coronavirus story, and the human toll is getting worse day by day. to analyze, let's bring in bloomberg international economics and policy correspondent michael mckee. it is almost we .3 million. what do we read from these numbers? michael: that the economy was going on at a very fast clip and suddenly ran into a brick wall. that is a different kind of situation that we have ever seen before. go back and look at that truck that you were just showing. on the far left side, 1982 was the previous record for the largest jobless claims filing in one week in history, and that was 690 5000. this is four times that amount, and we are probably not done. we will see a similar number next week because they couldn't process all of the claims they got this week, plus more people will be going on unemployment. we are go

this is bloomberg. ♪ vonnie: live from new york, i am vonnie quinn with guy johnson in london.s is "the european close" on bloomberg markets. it is type your latest bloomberg business flash. general motors is tapping its revolving credit line. downutomaker plans to draw $16 billion. gm is also suspending its guidance for this year because of the coronavirus pandemic. chevron up 18%. it is the latest oil company to take an ax to its budget. it is suspending share buybacks. weeks ago several on -- chevron ceo mike worth plan to keep the buyback but this month's collapse forced him to change his mind. amazon is cracking down on price gouging during the coronavirus pandemic. the world's largest online retailer says it suspended almost 4000 seller accounts for violating its fair pricing policies. among the overpriced items were protective masks and hand sanitizer. that is your latest bloomberg business flash. we are just rising higher through the session. up more than 9% on the dow. chevron leading that index. american express and boeing in its footsteps. boeing up 16%. in the s&p 5

vonnie: i do. it is not a balance sheet recession because banks enter this recession in the best shape anytime in the past half-century. i said this before but it is worth repeating -- u.s. banks have one trillion more capital, $2 trillion more cash and more deposits than before the global financial crisis. let's talk about one more area. the banking industry is open for business. banks literally are using secondary data centers. bank of america has 150,000 employees working remotely and goldman sachs has 98% of their workers working remotely. incredible. you have the operational resiliency, capital resiliency, liquidity resiliency, the bank balance sheets are there to support the economy. they can handle throw downs of loans. anything that is thrown at them by their customers. what a night and day difference a decade ago. vonnie: probably because of measures put in place, you mentioned the workers working remotely. to have any idea how many we are talking about and whether all of the banks are as

vonnie: it's 10:00 a.m. in new york, 2:00 p.m. in london, and 30 minutes into the trading session if united states. from new york, i'm vonnie quinn, along with guy johnson in london. ."lcome to "bloomberg markets around 1:00 a.m., we got agreement in the senate on that to trillion dollar package. we saw futures turn around and make a bid for a positive day. right now, we are mixed, with the dow up about 0.3%, the s&p 500 down 0.5%. treasuries still in the region they have been on the 10 year. the dollar index continuing to be a little soft, and crude oil we will get to enjoy a few moments, down 1.8%. a stimulus bill about to get signed, hopefully today, if not tomorrow. the same thing in europe. we are looking at some approvals for some fiscal measures. absolutely, but the focus has been on what is happening in washington. it was fascinating to see the fade on equities today. european equities are off session lows. we faded pretty precipitously earlier on. the pound is also off its earlier session highs and has certainly faded the

from new york, i'm vonnie quinn. vincent: and i'm --guy: and i'm guy johnson, joining you from london. this is "bloomberg markets." vonnie: we have equities higher by 6% for the s&p 500, by about five .5% for the dow jones industrial average, and 5% for the nasdaq. the vix is down to 54. all eyes on washington, d.c. it looks like within the next few hours, there may be agreement upon a deal. the bill hassaying moved sufficiently to workers, so this is sending some waves through the markets. again, larry kudlow saying he expects parts of the economy to reopen at the end of the month. a little bit of a mixed message out of washington as to the health of the economy, but at least it looks like there's a big stimulus deal coming, and in the words of may 2 pelosi, that could be within hours -- the words of nancy pelosi, that could be within hours. bloomberg u.s. dollar index is down by 0.9%. london in the in u.k. as well. guy: a lot going on in europe. pmi data out a little earlier on that were absolutely bad. we have nev

vonnie: -- guy: live from london, i am guy johnson vonnie quinn in new york. we are counting you down to the european close on bloomberg markets. let's look at where we sit with markets in europe. a positive week for equities but today we are not getting that vibe. we got that friday feel like, people not willing to take risks into the weekend. i'm hearing the rebalancing trade done and dusted. the stoxx 600 down, the london market off 5.6%. we are off our lows. we are certainly seeing a bid back in the bond market. -48 on the german 10 year. a big debate in europe on risksharing. 1.2846 despite the fact that we have the health minister and the health secretary self-isolating. both have been confirmed to have the virus. brent crude down seven point 75%. -- 7.75%. very much under pressure. vonnie: we do have another headline from the federal reserve. it turns out the fed will help liquidity and banks even further. the fed will let banks delay the capital hit from the loan-loss accounting rules. banks can mitigate the capital hits for up to two years. banks also

. ♪ vonnie: this is "bloomberg markets." i'm vonnie quinn in new york.uy: in london, i'm guy johnson. welcome to "bloomberg markets." what a set of markets we are watching right now. emerge outng news to of it opec+ meeting taking place in vienna right now. we understand that those talks are on the verge of collapse. oil down and down very sharply. we are down by around 7% when it in theo brent and wti united states. let's get the latest now on what is happening here and how close these talks are to collapse. let's go to vienna and join bloomberg's manus cranny, who is covering what is happening for us. what can you tell us? we are using the headline that we are on the verge of collapse. about an hour ago, preparedness for the russians to walk away. the risk to the market is that as opec+ potentially disintegrates, and we have said that the talks are at the point of breakdown, take your mind back to 2014. that is the last time that opec did not manage to agree a deal to bring be marketed to check. we are down nearly 1%. that is down on the possibility, s

vonnie: let's turn to washington, d.c.ow, where lawmakers in the house are debating ahead of an expected vote. we are joined by an adjacent -- anna edwards and. how will this go? anna: that has been a bit of a slowdown. yesterday, house speaker nancy pelosi said she wanted this vote wrapped up by noon, but she was under the assumption they would do a voice vote, have people in the chamber yell out there vote and say it passes and they are good. but a republican from kentucky suggested he would call for a recorded vote, which would require each lawmaker to individually cast their vote through the electronic voting system, being present in the chamber. yesterday, pelosi and republican leader kevin mccarthy decided they would try to get as many members back as possible to get a quorum of at least 18 members to make sure that the bill would pass, even if there is an objection. that u.s. businesses and individuals desperately need the money coming out of this -- we are not even allowed to call it a stimulus package. we should n

vonnie: thank you for that.or all of the market moves, we try to stick with bloomberg tv and access it on the bloomberg using the function gtv . from new york and london, this is bloomberg. ♪ guy: from london, i'm guy johnson. vonnie: from new york, i'm vonnie quinn. this is "the european close" on bloomberg markets. guy: european banks are seeking virus relief in a series of demands they are making to eurozone regulators. let's get some color on the story with bloomberg's financial reporter. what are the banks asking for? nick: i cannot remember a list this long and quite some time. it is extensive. they are asking for relief on the liquidity front good to run down liquidity reserves without being penalized. they are asking for relief on the capital front to ignore some of the findings. changes toasking for how to define what a loan is. this is quite extensive. it speaks to the fact that the the banks see a lot of damage coming their way because of the economy, or if you want to be cynical, they see this as

vonnie: exactly. purchase of agency, mortgage backed securities, it is a new vehicle for this to happen from the federal reserve. bundled up really right now. the credit markets absolutely illiquid, and that was seen last week in the tremendous blowout of spreads all across the board from investment-grade and beyond. european banks, for example, getting squeezed. and movement from the ecb as well. $750 billion of bond purchases. it is really only stemming the bleeding. we have gone through 2002 levels on the dollar index. we are looking at 1985 levels. there are some comparisons to previous crashes, but nothing like this, nothing like the actual grinding to a halt at the economy has to weather right now. the likes of jim bullard saying because he gdp down as much as 50%, 30% unemployment rate. would that be very short-lived? at which point we may be able to see some kind of decent recovery towards the end of the year? or could it be protracted? there are no answers. we are waiting for authorities to t

vonnie: what's next?else can be thrown at this whether it is on an individual country level or on a europewide level? obviously, what happens with britain now that it is not in the european union anymore? maria: i would say in terms of the u.k., it is out of the european union but it is very different, it is doing measures that is very different to what the european leaders are doing. i'm sure you have seen a story that was making the rounds over the weekend in which emmanuel macron was allegedly very angry at boris johnson, and said if you don't take measures to prevent the spread of the virus, i'm going to shut the french border to u.k. citizens because this is unacceptable. this is a readout from the french site, but what is clear is when it comes to the measures to tackle the virus, they are very different from a european continental point of view which has gone fully shut down, let's shut everything, to what the prime minister in london has handled it. in a few months, we will see who is right. in te

this is bloomberg. ♪ vonnie: this is bloomberg markets. i'm vonnie quinn.rom hongthe latest kong. retail sales down 22% in january, worse than economists were expecting. the financial secretary says us by the turmoil, he sees property values holding up. ofthere is a high chance another contraction, but we remain hopeful because we still have several months to catch up. it really depends on the current epidemic situation. and after this is all over, how much energy people will put into revitalizing our economy. >> you are encouraging residents to spend, of course. of $10,000 wasut a main feature of your budget. i spoke to you in january, and you seem to play down that idea. what changed in your mind? >> get exceptional measures in exceptional circumstances. people, businesses are suffering. we are still doing some fiscal research, spending some to help people, businesses, is in line with the expectations of the people. >> will a cash handout of this size get people to spend? what will stop people from saving in a bank, or spending overseas? >> people will sp

this is bloomberg. ♪ vonnie: this is "bloomberg markets." i'm vonnie quinn.s the impact of a severe economic slump becomes clear from the coronavirus, the stress bonds are surging. with european leaders backing so-called corona bonds. not all of them. joining us is the cio a fixed income and volley investment management. he joins us from atlanta. i want to ask you about the u.s. curve. the front end now is negative yielding. does that continue, is this thanks to the fed actions? matt: it is thanks to fed actions are the curve should steepen beyond that. it is closed -- as close to zero as possible. the 85 basis point makes a lot of sense. expect to see it in the 50 range. hard to hold above 100 basis points at the long end, but not below zero at the front end is a sign of strength. vonnie: at what point does this move? we have seen a lot of volatility and equities recently but bonds have been trading in a range, at least certain maturities. what knocks them out of that range? do we have to see more economic data come in? do we have to see inflation data come

vonnie: a lot of content.ring in mike regan, the 10 year yield is literally half of what it was, when we are seeing an all-time low with credit concerns. and it does look like we are hitting bottom stocks, are we? >> i don't want to go on record saying we are. i think they're so much uncertainty. when you remove the markets entire confidence on the profit outlook for this year, it's like a house of cards and you just took out a bottom card. everything collapses on top of that, whether the technical signals you are looking at are the valuations based on anything that depend on earnings or dividend yields, that sort of thing. as john said, the longer the issue goes on, that credit story will become more important. it's very focused on high-yield energy right now, it could spread to other places and that's a major concern. in addition to low yield, that's why we see the bank stocks suffering. john and i were looking at charge. price-to-bookhe of banks, flirting with going below one, they are selling for less than

this is bloomberg. ♪ this is bloomberg. ♪ vonnie: live from new york, i am vonnie quinn, along with guynson in london. this is "european close" on "bloomberg markets." the $2 trillion plus stimulus package that congress has yet to approve, it has gone through the senate, and they are anticipating that there will be some kind of a vote at some point today. joining us via skype is kevin cirilli, bloomberg's chief washington correspondent. kevin, what is the latest. i have not heard from. . nancy pelosi. is she going to allow a voice vote, for example? still no official bill text, but senate majority leader mitch mcconnell all but assuring a vote in the senate for later today. so that is in the senate. in terms of the house of representatives, it is still unclear, the timing of the vote, however, i spoke with one republican lawmaker who told me just within the last hour that they are operating under the assumption, the working assumption, that the vote will be tomorrow, so the issue right now is whether or not any of these far-left progressives will hold out and take away the ability for s

vonnie: guy's, thank you.to point to some of the asset moving, including the s&p the s&p 500 up 5%, and the 10 year yield staying in that range. weakening below today, 99.50 four. obviously sterling and the euro, big beneficiaries there. the euro up 1.3%. sterling is back up to 1.2 1 -- 100 when 40. -- 121.40. to whit, have a look at the offshore. after a very unusual fixing, a today.ker >> let's get more about what is happening with ecb. in talks for the confidence lenders, what is happening with dividends. how dividends are going to be dealt with in this time of difficulty. let's talk about the broader picture as well as what is happening in europe. there is a call taking place between leaders. we will get a group briefing later. are certainly watching this story, incredibly carefully, because we find ourselves in a situation, once again, we have seen it before. it is the ecb that is having to do all the heavy lifting when it comes to the pan-european approach. every thing else is being handled on a governme

vonnie: i'm vonnie quinn in new york.m a viral pandemic and plummeting oil prices, corporate america is facing its most severe test since the financial crisis. names are the biggest maxing out credit lines and grabbing cash before it disappears. joining us now is our bloomberg reporter. me where thisll cash is going to disappear too, and who is taking advantage. signis is the first real we have seen with the spreading virus and the oil market chaos, the corporate sectors are really getting rattled, and they are racing to shore up their finances. let's see what their options are. revolvers, corporate credit cuts. the real winners are backup loans diniz rainy day funds. the banks go out there when they are raising for companies, often involving these credit lines, but the expectation is they will never go there en masse. it is there if they need it. but if you are a company drawn done on your credit line, that is a sign of distress. this past week when we have companies like boeing and helton drawn down there credit line, p

vonnie: let's check u.s. markets. dow jones industrial average, only one stock higher, and that was walmart. the dow is down 19%. chevron is down. j.p. morgan chase and some of the banks are suffering, as our airlines. that was another black swan event, that the economy had to deal with in recent weeks and months. more markets, next. zulauf is coming up. this is bloomberg. ♪ ♪ mark: i'm mark crumpton with bloomberg first word news. white house advisers plan to meet with president trump this afternoon when he returns from florida. they're expected to present him with a list of potential fiscal policy responses to combat the spread of coronavirus. meantime, the president is trying to downplay virus fears. on twitter today he said the number of flu cases are outnumber the number of coronavirus infections. he says nothing is shut down, life and the economy will go on. in new york, governor andrew cuomo says the director of the port authority has been confirmed to have coronavirus. he is on home quarantine. american troops

i'm vonnie quinn.rashing after the breakup of the opec plus alliance triggered a price war between russia and saudi arabia, poised to flood the markets with cheap oil. here with us now is alix steel. >> i wanted to put that into context for you. the way you can see it is in the contango in the oil market. when prices today are cheaper than prices later. we are looking at $1.46 the difference in two months. we have not seen this kind of level since 2016, when you had oil prices hitting their low of $26. $27 for wti yesterday. that creates floating storage. that means when oil prices come back, that flood of oil goes into the market, which makes everything worse. on the oil equity side, this is where things get terrible. suntrust downgraded everybody. they are bringing full coverage of the group to hold or sell. here are the winners in the shale patch. these are the good guys. i'll be speaking with the pioneer ceo tomorrow. down 33%. they have good cash flow. diamond back announced an end to their spendi

vonnie: we will keep an eye on it all.arkets expecting more rate cuts at the meeting in two weeks. st. louis had president weighted -- weighednterview in during an interview. rate to theolicy right place for now given the information that we have and we took out some insurance against the possibility this will cause a growth slowdown in the u.s. >> on the other side, incoming bank of england governor address to the coronavirus saint more action would likely be necessary. >> i think it is reasonable to expect we will have to provide some form of supply chain finance in the not distant future. ,o ensure the affects of this the shock of the virus, are not damaging. joining us now is pernille henneberg, and economist. using the phrase shocking all, what does that mean? does that mean we will see more cutting or that yesterday's emergency cut was supposed to be the big one? u.s. economies believe the fed will deliver more cuts. last week, they think 25 basis point cut will be delivered at the march meeting. if anything, the ris

this is bloomberg. ♪ vonnie: live from your city, i am vonnie quinn with guy johnson in london.berg markets. let's get another check on markets. u.s. stocks hovering around session lows. the dow erasing all of its gains since the trump election. kailey leinz is here with more. kailey: the s&p 500 now lower 5%. it has been an incredible session. last night, right when we open futures trading we hit the limit down almost right away. we are in the red for most of the session overnight until 8:00 a.m. when the fed through everything it had at the market, at bazooka. it had a short-term impact. we were in the green now back in the red, but we have been heading lower ever since because there are still questions about the fiscal stimulus out of washington. in the bond market you are seeing money come back, the 10 year yield headed lower. 46 over the past three sessions. the yield on the 10 year 73 basis points. the backdrop to all of this market action is the ongoing coronavirus. in part, that is having a big impact on real estate. a number of rates are moving lower after getting downg

vonnie: in new york, i'm vonnie quinn. we have seen a bounce all morning for u.s. equities. the major indices up 1.5% to 2%. the health care stocks are doing the best. the equipment and services index up 4.5%. includevidual stocks humana. michael bloomberg announcing he was dropping out of the race. the 10 year yield is at 96 basis points after yesterday's emergency move. as you can see, we are still elevated on the vix. for crude oil, even after inventories came in and showed a bounce, we are up about 1.3%, just off the highs of the session. let's have a quick look now at the canadian dollar and its performance. you see that bounce there by the u.s. dollar versus the canadian dollar. that is after the bank of canada dropped interest rates by 50 basis points. it was anticipated the bank of canada would drop. , and manybasis points strategists saying this was to keep up with the federal reserve . you can see the canadian dollar $1.3394.t guy: today, the european union coming out in warning of recession risks both for italy and france. some speculation as well that italy is we

vonnie: excellent point. guy? guy: as i watch u.s. rates go lower and lower on the market this afternoon, carl, i want to check in with you about the cost of capital. are you suggesting the cost of capital in the united states, given the economic backdrop, is too high? i am wondering what effect another basis points of cheaper money will do other than give a further boost the housing market, which has been juiced up already? carl: i am not saying it is too high, but if you love mortgage at 3.5%, you will love a mortgage at 2.5%. the marginal changes in the cost of financing have very material macro economic consequences. we were not in restrictive territory. given the outbreak and the development of events to move further into accommodative territory, absolutely. what what is this -- guy: is this going to do? if i am a bbb company experiencing cash flow problems, what does this do for me? carl: it makes it cheaper for you to refinance debt. consequences, and for the healthy crowd, it makes it more viable for them to take on debt, whet

vonnie: 50% of staff laid off at norwegian.ure other airline ceos are looking at this and looking their chops. will we come out of this with a different corporate landscape, whether it be in europe or the u.s., or certain industries like airlines, like oil and energy? we are in the first wave, likely to get something in the first part of the year. this is here to stay. i think we will see larger layoffs. there's been a number of technological developments in place for a number of years now. whether that is to promote working, the growth in the digital economy and so on, which will start to see much bigger growth going forward. that will bring you to question whether older analog things will survive in this environment. rather than people going abroad on holiday, people may instead use more virtual forms of entertainment, rather than engaging in travel. on the education side, rather than going abroad to study, may rely on online education tools. all of these forces that we have seen will pick up. the more be some of enduring imp

vonnie: thank you for that. coming up later in the hour, we taleb,peak with nassim risk engineer at new york university. this is bloomberg. ♪ >> i am guy johnson with bunny quinn. this is bloomberg close. let's begin with a bloomberg first word news. >> european officials are warning against loosening lockdowns. this -- that is after the coronavirus outbreak claimed more than 3000 lives. the total death toll for the two countries is now over 17,000. the pace of infections is showing signs of leveling off. officials are warning against complacency. experts are warning italy to learn from the mistakes china made when it comes to the coronavirus pandemic. with mild symptoms instead of having them isolated at home. producing a strain on china's overburdened health-care system, what experts say they did not realize how infectious the virus could be, even in those who do not seem very sick. the prime minister benjamin netanyahu will go into quarantine. he came into contact with an eight who tested positive for the cor

vonnie and i will be back in an hour. in the meantime, i will hand you over to the capable hands of david westin and "balance of power." this is bloomberg. ♪ ♪ from bloomberg world headquarters in new york to our audience worldwide, i'm david westin. welcome to "balance of power," where the world of politics meets the world of business. the armstrong is here, kevin cirilli, and guy johnson. drew, let's start with you. how any cases do we have, and how does it compare to china? drew: right now we have only a little over 1000 cases in the u.s., depending on what counts you want to look at. where i think that is potentially misleading is that we know there continues to be a significant bottleneck in the ability to test in the u.s. if you look at where other countries have been on this, in the early days of the china atbreak, we were seeing small, fixed number of cases being added everyday. the reason for that was that

vonnie: i am vonnie quinn. we are joined by --. vonnie: here are the top stories we are following. emergency interest rate cuts, slashing targeted rates by half a point. we will be speaking with larry summers. investors worried the move might not be enough to comply with the needs of the economy in terms of combating the virus. falling to fresh records. the chevron chairman and ceo will have a conversation shortly. tonda: major market reaction the move by the federal reserve and the reaction was volatile. with a swing of about 110 points. averages,n the major broad markets moving lower. interest rates are a pocket of strength for the broad markets. energy and financials are a drag. , where they might be affected by a cut, industrials, consumers, staples. gold is on the move higher. the 10 yearing yield, close to 1%. 1% levelbreak the today. it would be a big moment. vonnie: it has been on the cards , but we have been bouncing away from it and we are down there again. i want to give you an idea of what it looks like, the s&p 500 coinciding with the interest rates increases and cuts

vonnie: how high will the spread go over? to 1100,n get out 1200. there is too much of the left tail that has been protected with the unlimited cap on what the fed can buy and the $2 trillion stimulus, which represents 10% of u.s. gdp. vonnie: bruce, thank you so much for your time today. hugely busyds, week. we thank you. this is bloomberg. ♪ >> live from world headquarters in new york, welcome to bloomberg markets. we are joined by our audiences. the top stories we are following from around the world, the u.s. stocks urging me with the s&p 500 on track for a third day of gains, poised to call back nearly two weeks of losses. this as the fed gears up to inject trillions of dollars into the economy. the similar bill moving through congress. lending powers for the central bank. have a read of the coronavirus impact on main street. weekly u.s. jobless claims topping 3 million, some economists expecting to see the worst quarterly contractions on record. let's get you started with a quick check of the markets. in the afternoon session, we continue the m

vonnie: phenomenal what is happening around the world. the coronavirus in the backdrop all the time. i'm looking at that deal is the start of this week. everybody in the markets obviously knows the levels we are at. look at the speed of the decline in the last few days. it's incredible to think the 10-year hit 65.72 in the session. even to say that is kind of phenomenal given we were at 1.30. it is the worst day in a decade for credit markets. cruise lines getting hammered. it is the perfect day to have one of the greatest credit investors with us today. >> we are talking about howard marks, the cochairman of oaktree capital. good to see you. you write in your latest memo that nobody knows how bad the viral outbreak will be, or how deep it economic impact will be. of course, that's true. nobody, not even dr. fauci knows how that this is going to be. but investors need a framework. is deciding what to do as simple as saying buy if you are a coronavirus mentalist -- minimalist, or sell if you are a coronavirus maximalist? howard: i am an in

. ♪ vonnie: -- guy: live from london, i am guy johnson vonnie quinn in new york.ng you down to the european close on bloomberg markets. let's look at where we sit with markets in europe. a positive week for equities but today we are not getting that vibe. we got that friday feel like, people not willing to take risks into the weekend. i'm hearing the rebalancing trade done and dusted. the stoxx 600 down, the london market off 5.6%. we are off our lows. we are certainly seeing a bid back in the bond market. -48 on the german 10 year. a big debate in europe on risksharing. 1.2846 despite the fact that we have the health minister and the health secretary self-isolating. both have been confirmed to have the virus. brent crude down seven point 75%. -- 7.75%

♪ vonnie: i am vonnie quinn. greenquity back in the writing highs with health care stocks leading.g and vaccine candidate. you will hear from mike mayo. he says the finance situation is night and day but banks are staring down an earnings recession. playing the is stake in the pipeline unit. abigail doolittle is joining us to take a deeper dive into this rally and we are gangbusters. abigail:

i'm guym london, johnson vonnie quinn in new york.ou down to the european close on bloomberg markets. ♪ vonnie: what has happened in the last hour? we are awaiting a news conference at 3:00. it is likely president trump will declare a national emergency under the stafford act, which would allow for more options for the administration unilaterally to take into their own hands. the s&p 500

this is the setting of some 20 by the grace italian renaissance composer to vonnie to palestrina. like the glorious paintings from the sistine chapel palestrina his music brings the biblical texts to life with a wondrous mystical quality. in addition to the choral music there's another attraction atones on plants that draws billionaires every saturday the street market. it's popular with weekend shoppers. intellectual and spiritual nourishment is just a few steps away. from the field right now on the front of the. room it's good to. come from my bike i'm going to try my balcony i can see the people coming to new. done because i see them streaming into the church kids hurrying up the stands. and once they're inside they encounter a peaceful atmosphere. among the efficiencies and at the latest there is silence and says if people feel i can become ham i can take half an hour for myself by yes it's on. the the. you can eliminate all kinds of people come to new song everybody is welcome one new song there was a little girl sitting on her mother's lap she was fastening. did you could se

live from london i'm guy johnson with vonnie quinn new york.ng you down to the european close on bloomberg markets. ♪ vonnie: another difficult day in u.s. markets. the 12th down day in 15 sessions. almost 18% lower than the high on the s&p 500. down 3.7%. every single move in the s&p is lower. less than half a dozen stops