Joint action. Saudi arabia wants producers to agree on additional cuts of one Million Barrels per day. Nejra what a wipe out on wall street. We will get to that in a moment, but first, breaking headlines coming through. We are still in earnings season. Basf sees significant first half Coronavirus Impacts on the Global Economy, and it sees 2020 point 2 ebit of four billion euros to 4. 8 billion euros versus 4. 5 billion euros in 2018. Those are the two red headlines. They are saying they do not expect the virus effect to be fully offset over the years, so some important headlines coming through on the impact of coronavirus. Elsewhere in the numbers, it is proposing a full year Dividend Per Share meeting the highest estimate, but it sees a significant first half Coronavirus Impact on the Global Economy, bracing for a possible profit drop on coronavirus but also the slump in autos. That is the main takeaway here, adding to industrial gloom by adding to the profit drop due to the impact of the coronavirus and ongoing automotive slump. Lets get to the market and that wipeout on wall street. Fastest correction in history for the s p 500, global stocks in correction as well, heading for their worst week since the financial crisis since 2009. Futures come under further pressure. You are seeing red on the screen in terms of s p, in terms of nasdaq futures, and look how much we are seeing a drop in the euro stoxx 50 futures. Switching of the board, you see the risk off across assets. The 10year yield hitting record low after record low, the twoyear yield heading for its worst drop since 2008. Foot. On the back we saw a bit of dollar weakness in yesterdays session. In the case of the perspective for Global Equities, scott miner saying coronavirus may be the worst event in his career. We could see a 30 drop. Jim juncker of says the market will find a bottom when traders start moving on every single negative headline jim bianka the marketco says will find a bottom when traders stop moving on every single negative headline. Japan is closing schools to limit the spread. However, the country is becoming a center of concern as experts expect japans official tally to be the tip of the iceberg of a much wider problem. Jp morgan joins a string of other Corporate Giants as it restricts nonessential travel globally. Another consequence of the virus jp morgan, citigroup, and goldman have cut earnings estimates for 2020. Citigroup and Goldman Sachs expect zero growth in earnings this year. Bank of america has cut its forecast for Global Growth to 2. 8 for this year. For more on the Market Reaction to the virus in asia, juliet joins us from singapore. We see u. S. And european futures taking a significant hit, all down between 1 and 3 . How is it looking in asia . It is looking really ugly, to put it bluntly, but remember, its also the last trading day of the month. Asian investors on track for the worst month since the Global Financial crisis. The nikkei closing lower by 3. 8 , 3. 7 percent, its biggest drop since december 2018. In australia, we entered correction territory today, down 3. 3 on the close, the worst drop since september 2015, down for a sixth session in a row. A career, of course, already in correction, down 10 or 11 , actually, from the peak before lunar new year. Been holdings have up quite well due to the fact that we have seen so much stimulus and promise of stimulus push through. No surprise, you are seeing money going into the bond market, yields on a straleys 10year note all into a fresh record after yesterday hitting that level to Prime MinisterScott Morrison initiating an emergency package for what he is calling the epidemic, and again, doing well amid safe haven buying. Elsewhere, you have seen the kiwi absolutely smashed as new zealand reports its first case of coronavirus. Mzders suggesting the rv will be forced to cut rates. One bright notice to bank of indonesia who has just come through saying they do see a recovery in april. Nejra thank you so much. Joining us for the hour is the chief Economic Advisor of outspoken margin. What a White Knuckle ride it was on wall street yesterday. Withoutet a bear market the odds of a u. S. Recession rising significantly . We can get both. We can get a significant u. S. Recession and also a crash in stocks. I think most people have to take a backseat here. Is the market rich . Is the market cheap . Those types of questions do not matter this week because this is a very complex it is an economic crash, a financial crash, a market crash, and we also, unlike 2008, have a Health System which could potentially implode. There are all the bad news. The good news today is people should go out and buy stocks and sell bonds. You are not going to have someone like me or any other analyst and strategist or any other investor do that trade. Because of the complexity of the situation today, just like the virus, most people with portfolios have to concentrate on immunization. This is a Risk Management event. We first of all have to basically prioritize and the First Priority is Risk Management. There is no priority in rushing. There is a major situation where the complex systems could implode, so the first thing everyone has to do is basically take a backseat, relax, and the best news is today is friday. It is also the end of the month, and people should not take action today. They should wait and consider of issues for the next month march. When should you buy stock . Do you wait to see when the bottom might be reached . How long do you wait to buy stocks . The problem is we have multiple systems colliding, so this is a very complex situation. What the white house has done this week was to put multiple groups together. They put the health group together. They put the Economic Group together, the Financial Group together to come up with a whole new government solution, and that is similar to Crisis Management in 2008. 2008 is the model people should use. We had a financial crisis. What we did not have in 2008 was a Health Care Crisis. This dramatically complicates the issue. Nejra is this worse than 2008 . There were dark parts in the Financial System and we did not know what was going on, but its obviously tragic as well and it is a human crisis, but in a way, does that make it easier to predict . How should you view this versus 2008 . It is actually much more difficult, and it is an asymmetric risk. Put in almost a state of emergency for the last six weeks on the country, we now have japan almost going to the same situation locking schools up for a month is almost like a state of emergency, so the issue is people have to actually consider what they are doing themselves and first of all, it is containment, it is prevention. All of these issues are in the health care system. We could also use the systems with regards to how we trade and how Financial Systems work, so any governments or Central Banks thinking this is not a big deal, those types of debates are almost academic. When you are in a Crisis Management situation, it is all hands on deck, and it basically means policies from the monetary side and fiscal side. Nejra you said Central Banks should cut rates. Scott minard says this may be the worst event of his career, he, of course, did live through the financial crisis and said the fed is fairly impotent in this environment. I would slightly disagree with scott. This is not impotency, its basically an issue where we have low Interest Rates and when people think there is nothing more global policymakers can do, there is a significant amount global policymakers can do. Headlines have shown, weve lost 6 trillion in global stocks in just a week. The 6 trillion loss is not a big deal. The problem is it is all in a week. That basically creates the instability in the system, so we dont know where their losses are, and therefore the uncertainties are extremely high in that situation. Therefore, global fiscal policy should not be 3 trillion. It should be for trillion dollars or 5 trillion, but we need a 30 , 40 increase. Nejra Martin Malone stays with us. Lets get to first word news, though, saudi arabia is planning to sell more of its stake in aramco to fuel its plans for Economic Diversification according to the chairman of saudi aramco and the head of the saudi sovereign wealth fund, but an International Listing could face hurdles. Investors may question the oil giants valuation at a time when crude rises are slumping. We are looking into it in order to have more offerings, continue toferings be in saudi and if we have some good Stock Exchanges that we think will bring value to investors and us, we will definitely consider it. Selling its elevated overion, in a deal worth 17 billion euros, making a europes biggest private equity deal in a decade. The consortium beat out a rival bid. The deal is a muchneeded injection of cash. He is process it will take the case to the supreme court. Global news 24 hours a day on air and quicktake on bloomberg powered by more than 27 hundred journalists and analysts in more than 100 20 countries. Coming up, saudi arabia looking into taking his crown jewel aramco abroad. We bring you the chairman of the saudiant and the head of department. We bring you the latest on oil up next. This is bloomberg. Nejra this is bloomberg daybreak europe. Im nejra cehic in london. Lets get a look at the risk radar and Global Equities taking an absolute drubbing, headed for their worst week since 2000 nine, fastest correction in u. S. Stocks in history. Futures. 2 more losses today, both in the u. S. And europe. We saw the dollar weakened after yesterdays session, the 10year yield below the 1. 25 handle and oil headed for its worst week since 2011. Mounting fear about the Global Impact on of the coronavirus bracing. Rs three on twoyear u. S. Note has plunged more than 20 basis points, one of the biggest weekly drops since 2008 when the twoyear yield sank 51 basis points. Martin malone from alphabook is still with us. What does the chart matter to you . Why it matters is there is significant room for the twoyear yield to rally. We could see the 10year yield in the u. S. Trade at 1 or even 0. 5 , and in a situation where we have this multicomplex system and the uncertainties are so high, the only thing that we can purchase is the u. S. Government bond, so the u. S. Government bond actually comes into play in all of the scenarios you are talking about, so if we are cutting risk, theres only one thing we can buy. We can buy gold, but we also have to buy the u. S. Government bond market, and global yield, the u. S. Government bond market is the most liquid and highest yielding product we can find globally. At the top of the show, you said the logical thing to do now is buy stocks, sell bonds, but that is not actually what you are advising people to do. Know, when youve got this sort of collision of complex systems, and economic system, health care system, Financial System, the first thing you do is immunize your portfolio. Just like the Health Care Crisis we have today, maybe it is the wrong word to be using, but it is not today of what investment are we going to make, what is cheap, should i rush out and buy . 10yeartocks on a 3, 5, basis, we should be buying. Today is not the day. Today is Crisis Management. Today is making sure you look after your portfolio. It is not about making investment decisions. Nejra give us some examples. Do you literally sit tight . Do you do it via options . The problem is the price of the options has dramatically doubled and tripled in the space of 72 hours, so the cost of actually using options will be prohibitive for almost all investors. The way you do it is actually by purchasing treasuries, and the way you do it is by purchasing gold or even the u. S. Dollar, so in the currency space and the commodities space and the bond space, these are things we should be looking at. In the equities face, we should be very careful in the credit space, we should be very careful. We should not be making new, fresh investments in those spaces today or even next week. Nejra Martin Malone staying with us. Oil is on course for its biggest weekly loss since 2011, which is putting pressure on opec and its allies to act. Can we expect a deal . Good morning. Speculation is certainly building given the fact we are seeing very low prices on the wti and brent. The top opec official secretarygeneral saying he is seeing renewed commitment between opec and its allies, so that is starting to build speculation that next week we could see a cut. Remember, the group has been somewhat divided with saudi really pushing for this urgency over the last few weeks while the russian oil minister, their position has been more about waiting to see the data and then making an impact, but we know from the Technical Committee that they said they could see a 600,000 a barrel 600,000 barrel a day cut, that is what they said would be the potential, but now the ft is saying that one Million Barrels a day is on the table. I was in riyadh just a few weeks ago, and his royal highness, the saudi energy mr. Heim close doors compared the impact of the coronavirus on demand disruption as a house on fire. He said you could use a garden hose or call the fire brigade. I think next week they are going to call the fire brigade. Much. Nk you very are they going to call the fire brigade . For instance, one major mistake was last weekend. The g20 had their First Financial financial ministers and Central Bank Governors in riyadh, and they were a little bit sanguine about the situation that was going on and there was not really much that came out of that meeting, and that was sort of a communication and a timing mistake and the g20 last week and should have recognized the instabilities in some of the systems we were discussing. They are going to have to get on the front foot, and that basically is the month of march and the month of march is we have all of the majors, the ecb, the fed, the reserve bank of australia, new zealand, the bank of japan, all of these Central Banks now should actually cut Interest Rates. More importantly, we should have a significant increase in fiscal easing. We keep talking about finding bottoms here. Of the Asset Classes that have an punished and terms of stocks, in terms of commodities, risk assets, basically, which is going to find a bottom first . The equity market is going to find it first simply because it is the most liquid space. The only equity market we need to watch is the u. S. It is the only one that basically has got that range of technology, health care, financial sectors. Other markets do not have the liquidity or sector issues that we need to look at. You will see america move first on these issues. The first port of stability is going to come from america, so all eyes should be on the american markets, not on other Global Markets. The 200daye below moving average. Will we find the bottom . Been a should have support level, but because we have a Risk Management situation and a Crisis Management situation, the bottom could be at any level. We could easily see 5 or 10 times easily today, but as i said, the good news is it is friday. Frenchcoming up, the president and italian pie minister meet in naples and pledge to restorative medical relations, but the coronavirus outbreak takes center stage. We are live in southern italy up next. This is bloomberg. This is bloomberg daybreak europe. Im nejra cehic and london. French president Emmanuel Macron and italian pie minister just a picante pledge to reset diplomatic relations between the two countries. The meeting in naples was overshadowed by the coronavirus outbreak in italy. Two leaders vowed to combat the virus together and keep borders open. This summit was framed as a cause for celebration, but the tone was much more somber, wasnt it . Exactly. This was supposed to be a show of force by the two countries, founding members of the European Union saying we are going to handle political differences. We want to focus on the future and push for more political integration. That was on paper. The reality is that on the ground, the mood was very different. The government in italy is under huge pressure to show that it is able to deal with the coronavirus outbreak. We know theres a lot of pressure on just picante himself. I was in that press conference. The questions were all about the coronavirus and all about what to do with european borders because that is the other side of the debate. Should europe restrict travel access between countries that are Member States of the eu . Whats interesting is both konta and micron said theres no point in doing that both conte and macron said theres no point in doing that. In italymber of cases continued to climb yesterday. How is the that how is the government responding . Exactly. We are looking at 600 cases. We know 17 people have died. What is interesting is the government has the government is trying to flip the narrative, saying they have done a lot of testing. Perhaps those tests show there are symptoms of the coronavirus but its not exactly the coronavirus. If anything, we can treat the virus, and the change in tone has to do with the economic repercussions. The government does feel perhaps they went overboard. There has been panic in the country and you could really see a slowdown. What is interesting is the fact that they are really trying to change this to say it is perhaps a big issue, a National Emergency but we are going to be able to deal with it. Nejra Martin Malone of alphabook is still with us. What should investors price for with Christine Lagarde saying there is no need for an ecb response, germany continuing germany considering stimulus . There will be a need for a response. Potentially a disinflationary or deflationary shop when you have complex systems across so many different sectors, it doesnt bring every central bank into play. Maybe not on Interest Rates because the Interest Rate on the deposit rate is. 5, but we will probably have to see some fairly innovative and unconventional measures brought in by the ecb. You wonder if that will take the euro down. The euro has actually gained this week. Martin malone is staying with us. Scott minard said the coronavirus is possibly the worst thing he has ever seen as a money manager. Stocks could drop 30 to 40 . More on that next. This is bloomberg. [ fastpaced drumming ] [ fastpaced drumming ] nejra good morning from bloombergs European Headquarters in the city of london. Asia stocks following coronavirus fears. The s p 500 saw its worst session since 2011 and the fastest stock Market Correction ever. 5 trillion in Global Market cap is raised in a week. Says intensify as the who the outbreak is at a decisive stage. Jp morgan curbs nonessential travel globally and joins citigroup and Goldman Sachs in cutting earnings estimates for u. S. Companies. Oil is set for its worst week since 2011 as opecs secretarygeneral says theres minute commitment for joint action. A report says saudi arabia wants producers to agree on additional cuts of one Million Barrels a day. Nejra wideout on wall street. Global stocks had for their worst week since 2000 nine. U. S. And european equities drop below the 200day moving average and futures deep in the red pointing to more losses today. Meanwhile, the 10year treasury of drops below 1. 25, the twoyear yield headed for its biggest drop since 2008. Lets get all the Market Action from our team around the world. Great to have you all with us. Asia. Ful day in juliet it certainly was. Tomorrow we get the biggest and most anticipated insight into how much the coronavirus is hurting the chinese economy with the pmi for february handed down. No surprise, china virtually shut down since lunar new year. Youre expecting to see a big slump in pmi. There also expecting nonmanufacturing pmi to fall to around 51. When other restaurants, cafes, and the like have been shut. We are seeing some normalcy sort of return to china. Ofes across about 85 Starbucks Stores not open, but the coronavirus likely to severely impact the chinas Economic Growth story which will be at reflected in the numbers released tomorrow. Goldman sachs now seeing 2. 5 growth compared to a median estimate of around 4 . So much. Ank you give us the size and scope of the kind of losses we have seen in indian equities today and through the week. Good morning to all of you. We market is paying scant regard to the data coming out. You have seen more than 1 billion pulled out in this weeks, fortis alone. The midcaps and small caps are headed for the first loss in the last five months, and that tells you a story about how nervous the markets, investors in india are, despite the fact we have not seen any major impact from coronavirus thus far. Back to you. Nejra theres no better way to anture nervousness than markets. The dollar has actually been a little weak this week and the euro has strengthened. You are looking a volatility in the eurodollar. Interestingly, the volatility in the euro has not been this high since the currency was developed, about a year or so in its development, and we have a ninth straight day of volatility on the euro. It is gaining for a threeweek high. I like that you bring up the fact that we are seeing a weaker dollar, everyones favorite haven. Why . People are just betting the fed is going to have to cut rates. It will push down the dollar and be useful for stronger bids on other currencies like the euro. Thank you so much. Story, coronavirus cases continue to appear outside china. Numbers and south korea top 2000 and italy, iran, and kuwait. Nigeria confirmed a case first reported in subsaharan africa. Meanwhile, japan is closing schools to limit the spread, but the country is becoming a center. F concern over in the u. S. , a whistleblower is accusing the Trump Administration of not providing protective gear or training to workers who helped evacuate americans from the outbreaks origin in china, and guggenheims scott minard says the coronavirus is possibly the worst thing he had seen at as a money manager. Is possibly the worst thing i have ever seen in my career. I have been through a lot. I have been through the stock market crash in 1987. I went to the financial crisis. This has the potential to real into something extremely dangerous. Simon clark,get to associate professor in cellular microbiology at the university of reading. He joins us on the show now. Thank you so much for joining. Global markets are trying to grapple with how much of a Health Crisis we are actually facing. Declaredbefore this is a pandemic . Any time soon. We have heard people say it might not become a pandemic, and that is true. The World Health Organization will not declare a pandemic until they are confident it all the boxes,x but it could be any day. In terms of the Global Response for containment, we have just heard that u. S. Has come under some criticism in terms of how it has managed the spread of the virus. Is it possible to actually contain this in any meaningful way . I think not. You have seen the chinese worked very hard, be very strict in their control methods, their control procedures, but still its got out. That may have been because the genie was out of the bottle, to use the phrase, before they started trying to control it. We dont really know how long this has been spreading. We have only known about it for seven or eight weeks, so it may well have started to spread and be classified as Something Else before we really knew about it. Clarify forou just us, if this was classified a pandemic, why would that be so much worse than endemic . What would it actually mean in terms of the impact on the Global Economy . Probably not an awful lot the difference between pandemic and endemic in terms of what it actually means on peoples daytoday lives is negligible, i think. Interesting. Where you think the touch points in terms of worst developments could come now . People are fixating on new cases, coming off a number of new cases, always looking for inflection rates in terms of cases and the mortality rate as well, but is there anything we might be missing in terms of the development on a health level . Spreads, it will spread among the healthy population. They will not be particularly badly affected by this. With what areople called flulike symptoms. They will be more likely to spread it to people at risk, and it will be people at risk with longterm Health Conditions that really are challenged by the infection, not the healthy population. What about the risk of reinfection of people who have already had coronavirus . We are seeing that as well. That has implications for vaccine development, but we also know there are four intimate coronavirus is in the human population. You and i have probably had some or all of those because they cause the common cold, and you get reinfected by those. There is no longlasting immunity to any of those, so you can get you can get infected again and again and again by them, and people do, so its quite possible that is the case with this new coronavirus as well. How did you characterize the sociallyin terms of but also in Global Markets to this Coronavirus Crisis . Are we overreacting . I have to say, i think a little. That is not to deny the importance of this infection, particularly amongst those that are at risk, but we have to remember the vast majority of the population are not at risk of anything more than cold or flu like symptoms, which we get every year anyway. This really does affect the people with longerterm Health Conditions, longterm illnesses, it is not a relatively large sector of the population that is at risk. Quickly could a vaccine realistically be developed, and how much would it actually help . I would be amazed if we have a vaccine this year. Its just the way of these things. You need to be able to make sure that the vaccine you produce raises immunity, that that immunity is protective, and that is the problem with people getting the infection again and again and again. There is no protective immunity, and of course, it has to be safe. It has to be safe, also, dont forget, in the people who are at risk. Who have already got longterm Health Conditions. Having a vaccine tomorrow is unlikely. Nejra how can the Global Health community prevent a crisis like this in the future . Well, they cannot. It is normal, it is natural for vaccines to pop up out of nowhere. We have seen this 20 years ago with sars. We have seen it with mers. Batch of flu viruses every year that then circulates around the world. Health authorities cannot stop these things. Nejra thank you so much for joining us. Of alphabook is still with us. You were saying to me in the break, this is gf c 2. 0. Is anything simon said make you think we could be overreacting in Global Markets . We already heard from scott minard saying first thing that has happened in his career. At a slightly difficult to answer, but i would say no that is slightly difficult to answer, but i would say no. We saw a peek out in official members in china. What we saw last friday and saturday was a significant doubling or tripling in global what hit thet was markets and was new and we saw what china did on containment. Can global economies like the u. K. , europe, u. S. Do a containment policy like china . Probably unlikely and therefore, people with no vaccine in virtually no containment measures that are going to be super aggressive, that delivers all of the uncertainty issues that people fear. Coming up, saudi arabia is looking into taking his crown jewel, aramco, abroad. More on that story and our interview with the oil giants chairman next. This is bloomberg. Nejra this is bloomberg daybreak europe. Global equities in correction and also heading for their worst week since 2009. Read on the screen. U. S. And european futures. The 1. 15ar yield below percent handle. Weve seen a bit of dollar weakness, but will that come back if the buyers keep coming into treasuries . It is risk off off off. Saudi arabia is looking into taking his crown jewel aramco abroad. Insaudi aramco went public december with nearly 30 billion making it the Worlds Largest ipo. The Public Investment fund thernor and chairman says kingdom is considering listing the worlds most valuable company on a foreign Stock Exchange. Spoke to the cofounder and an exclusive interview. You are the chairman, as we talked about earlier, of saudi aramco, which is the largest publicly traded company in the world, also the Largest Oil Company in the world. Is that right . Absolutely. The Largest Company from different levels. Market cap, the profits that we generate are second to none, and the ipo that we had was the largest ipo in the world. David you went public not too long ago, evaluation, if i recall, roughly 1. 8 trillion dollars. Evaluation was 1. 7 trillion. 2 trillion for a couple of weeks and now about 1. 8 trillion. No company is as valuable as that company, but it is traded on the local Stock Exchange in saudi arabia. Have you thought about listing it in new york or london or tokyo or other places yet . Offered 2 , we only of the company. 90 of the company is owned by the shareholder, which is the government of saudi arabia. Our program is to have multiple numbers of listings over the years. We are looking into it, to have more offerings, and these offerings can continue to be in saudi, and if we have any good Stock Exchange that we think can bring some Value Investors to us , we will definitely consider it. Any International Listing would face significant hurdles, and investors may question aramcos current valuation at times when oil prices are slumping. Nejra thank you so much. Selling its elevated division, the deal worth over 17 billion euros making it europes biggest private equity deal in a decade. The consortium beat out a rival bid. The deal is a muchneeded injection up cash. Pg e facing a record fine of 2. 1 billion after its involvement catastrophic wildfires that raged through southern california. The penalty would be the largest ever imposed by the state regulator. The decision increase a prior settlement by about 462 million dollars. Pg e says it is disappointed by the increase. Gilead has approached a Cancer Therapy company with a takeover offer. We learned gilead exploit a number of options with the Company Including partnership. No official word from either company. Paypal cut its First Quarter revenue forecast due to the coronavirus. It says Business Trends remain strong, but that International Ecommerce has been hit by the outbreak. This follows similar warnings from microsoft, apple, hp, and others. Companies are warning of supply the virusuption as continues to spread. Markets continue to be gripped by fear. Global equities heading for their worst week since 2009. European futures down almost 4 and the 10year yield below a 1. 25 handle. This is bloomberg. Wall streets biggest banks continue to sound the alarm on the impact of the coronavirus. Were looking at the hit to earnings. Good morning. Another morning we are seeing warnings from wall streets biggest banks. Citigroup expecting zero growth in global earnings for 2020 and they say even this new forecast may prove too optimistic. It follows what we heard from j. P. Morgan as well as Goldman Sachs, which cut profit estimates on u. S. Companies, and goldman expects no earnings gains at all for american firms this year. Really doom and gloom on these early earnings estimates from wall streets biggest banks. Thank you so much. Martin malone is still with us. Global stocks up by yearend, but they want to see more panic in the market, basically. If we do get zero global earnings growth, how much can stop stocks valley without cuts from the fed . That is a number of different issues. Athink basically we remain on mediumterm basis very positive toward stocks. The issue with what were doing right now is a risk off Crisis Management issue across complex systems. Theres sort of two different issues, and it would be surprising if earnings were not cautious. It would be very surprising if we did not have sharp cuts in economic forecast, etc. They always lag market movements, and the issue is what next, and what next is we will go to buy stocks, but we will need to see stabilizing factors across issues. Have a breaking headlines at around 1000 people have been quarantined in heinz berg, germany. That is the headlines crossing in terms of 1000 people quarantined in heinz berg, germany. To come back to the earnings picture here as well, how bad could it actually get for earnings in 2020 . We could easily have negative earnings. We had negative earnings last year. This will dramatically hit investment. There is no ceo cfo going to launch a significant investment increases if we have negative earnings, and this is a problem because last year we had negative on trade, negative on investment. Interest rate structures are saying go out there and invest. It will be very difficult for companies to do so. One thing we saw last year that kept everything stable was employment growth was still 1 . 1 is 30 million jobs. If we have. 5 percent, that is 17 million jobs, we do not want to see negative employment growth. If the situation gets worse, we will see negative employment growth. You have literally taken me exactly where i wanted to go because i was about to say when does this start to impact the labor market. People are starting to think is not what is priced in the markets, but there is talk of them potential he cutting in march. Talk of 50basispoint cuts in one go. Fed responsee the evolving . When do they cut . When do they signal . How does that narrative change . Everybody knows the criticism for all Central Banks is that Interest Rates are superlow. We have negative Interest Rate structures in europe. Very low Interest Rates already in most of the world and we have seen all emerging markets cut Interest Rates this year. We have not seen developed markets. It is not just good enough any more now for a developed market to cut Interest Rates. They need a whole packet of measures on liquidity, on balance sheet, and perhaps the end perhaps the fed will have to move quite quickly. Do you expect it to be a coordinated Global Response . Know, they are finding it very difficult to do so as we saw last weekend in riyadh with the g20, which was very disappointing. We are talking a lot about the bad news. You certainly say today is definitely not today to go out there and start adding risk, but where could you actually hide in this market, and if you were to add risk, where would you look . You are going to add risk in markets that have done very well this week, and that is the u. S. Treasury market. The u. S. Treasury market could easily see a twopoint to fivepoint rally today. We just dont know. The issue is basically investors will have to put the spare cash they have in somewhere, and that cannot really be in the commodities space. Yes, we could have some purchasing of gold, but the major area and the major float is going to be the u. S. Bond market. Headlineother breaking , istanbul stock index slighting 10 at the open. We bringing you all the updates on the various market moves. We did the south koreas index fall 3. 3 of the close to the lowest since september. Even with the wipeout we had on wall street, the path to correction for u. S. Stocks, global stocks and u. S. Stocks were at their lowest since october, so that is a little bit of context if you want to think that there is even further to fall. I want to ask about the dollar because this week, it is not really quite acting as the safe haven of all choices. Will it come back . Yes. What we need is to be buying safe havens. U. S. Is actually the safe haven. Why . Because they are outperforming in almost all the measures and they have taken Decisive Action approach toth the the multiple risks we see today. Fora thank you so much joining us. That is it for bloomberg daybreak europe. The european open is next. It is looking like a painful open, futures down. Tv just keeps getting better. How you watch it does too. This is xfinity x1. Featuring the Emmy Awardwinning voice remote. Streaming Services Without changing passwords and input. Live sports with realtime stats and scores. Access to the most 4k content. And your movies and shows to go. The best tv experience is the best tv value. Xfinity x1. Simple. Easy. Awesome. Xfinity. The future of awesome