Mark a school in the bronx attended by one of his children has been closed. New york city has one other confirmed case so far. A woman who contracted the virus while traveling i nee iran. In iran. Is World Health Organization helping people around the world to stop hoarding gloves, masks, and other equipment. The concern is the coronavirus is disrupting supplies of protective equipment needed to protect the Health Workers fighting the epidemic. This came hours after emmanuel said his government is requisitioning current and future stocks of protective masks. Benjamin netanyahu appears to be an striking distance of forming the government. With 57 of votes counted today after the third election in less n a year, net yahoo s netanyahus party has defeated benny gantz. Final results are expected later today and could swing netanyahu over the top before he goes on trial to face corruption charges. I am mark crumpton. This is bloomberg. 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 we have had over the last 20 years. Emergency insurance cuts last year and at this emergency cut and we are down to 125. The s p keeps traveling. It had raised rates. Not all Central Banks can say the same. Jerome powell acknowledged fears about this emergency cut not being enough to combat the economic effect of the coronavirus. Toolnetary policy can be a to support economic activity. A rate cut will not reduce the rate of infection, we do not think we have the answers. Our action will provide a boost to the economy. Mike mckee is watching this. There is a lot that could happen that this rate cut will do nothing for. Seen,ms of what we have manufacturing data from china has not shown up in the u. S. , is it not is it enough . Mike a lot of people are expecting the economy to slow. The fed is in charge of trying to keep the economy in good shape. It makes sense they want to use the tools they have. The fed, we have gotten used to them being the only solution to any problem. This is not an issue that cutting Interest Rates will help with. Certainly on the supply side, it will not make up for parts missing from oversee suppliers to her down the demand side, you are stuck in your house, afraid to go out, you are not going to spend money. Why would you do this . They might be looking at the drop in the stock market and saying that could cause people to pull back because they feel less wealthy, they are concerned about the economy as the stock andis a proxy for the they spend less. If the economy is going to slow in the fed believes we see some effect from this virus, the neutral rate is going to be policynd the feds setting before today might have been too tight. Those are the justifications they would use even though they know they are not the answer. In larryets bring summers. This emergencyo cut, the size of it and the fact that it came today. Larry i have raised my eyebrow pretty far. There are few things that surprise me. It is odd choreography to that was highly publicized where there was no outcome. Two hours later, to have a unilateral u. S. Only emergency action. That did not speak well of the cooperation process. Second, when you have limited ammunition, you have to conserve it. The fed has limited ammunition because rates are starting low. The fed has limited ammunition notuse Interest Rates do cure the coronavirus because Interest Rates dont repair supply chains. They have a limited amount of an got notnt and they have that relevant of an instrument. Firing it off in dramatic faction dramatic fashion, by doing a 50 base move instead of move,ual 25 point basis and doing something that has only been done three times in context of three different episodes in the last quartercentury seems to be running a number of risk. You are going to scare people with the magnitude and gravity of your action. That is going to be counterproductive. You haveunning a risk shot your ammunition and you will not have much of it left and you demonstrate to people it is not that effective ammunition for the kind of war we are in. Once people figure that out, they will be less confident than when they thought you had a major tool in reserve. Third, we have not seen statistics deteriorate. It looks like you are trying to repair a falling stock market and the fed has been in pains to explain there is no said put, no moral hazard, that they are calling that into question as well. What could the fiscal from the treasury secretary and finance ministers on that call . Things on the list of you recommend if we see economic fallout . They it depends on whether problem is on the demand side or on the supply side. There goes down because is a blizzard, that is too bad, but there is not much fiscal policy can do. Is goes down because there a power failure, there is no much fiscal pou not much fiscal policy or Monetary Policy can do. Demanday be knockon effects. The place to start is with Health Related fiscal policy. To create onpaying an emergency basis more ventilators in case millions get this disease in the united states. There are serious people who think half the population could willhe coronavirus and we need more ventilators. We will need more facilities suitable for quarantining people that we have. Going to need more investment in the research. That is a task for expenditure policy. The place to start is with the outlays we have neglected, and the Trump Administration exacerbated by the neglect by position ofthe Pandemic Response coordinator. We need to make up for the expenditures we have skimped on for a long time. 1 on we got through the the 10 year. We are at 99. 90. I am curious on your reaction to that. This is an unfortunate un from an unsecular source of the stagnation hypothesis, that the economy is suffering from lack of demand i demand in a major way. Pressuresee downward on Interest Rates and that is equate have seen to extraordinary extent. It has to raise concerns more generally. It means Monetary Policy is out of ammunition. Ben bernanke gave a speech months ago in which he tried to make the case that if we had a recession, Monetary Policy could use the tools he used some years ago in terms of buying bonds, giving guidance and giving the feds forward intentions. Those ideas were designed to bring longterm Interest Rates down. It is already basically on the floor. Vonnie absolutely. Lovely to have you on. We will continue this conversation later on. Thank you to you, Larry Summers and michael mckee. We are still through the 1 on the 10 year. 990. Now, we are at dow, s p, nasdaq, they are all down. The vix is at 37. Chevron is holding its investor meeting today as it is recommended Oil Ministers consider a bigger production cap. They are recommending 80 billion in dividends of stock buybacks. Alix steel is standing by with the chevron ceo. Alexs thank you for joining us. A big day for the company. We have oil trading around 50. What do you see on the ground . It is a rapidly moving environment. The main thing is the health and safety of our workforce. Supply chain and operations are operating normally but it is a rapidly evolving situation. We have command structures to stay on top of the situation and deal with things as they evolve. Alix a delegate said we could oil600,000 to one million barrel cuts. How do you see the supply and demand dynamic . Mike it is moving quickly. And demand is off now. Prices reflect that. For our company, we are built for an environment like this, low price with a low dividend breakeven. We have set ourselves up to navigate a situation like this. Onx what is your plan based . What oil price. Inflation, 60 flat, we can distribute 75 billion to 80 billion of cash flow to our shareholders over those five years with cash from operations. See it at 50 for a while . Do you getnt worried . Ore if it is temporal cyclical, we stay the course. Our Balance Sheet is strong. We can lean on the Balance Sheet for some time. Were to become convinced ,here were a structural shift that is when we would revisit things. It is way too early for that. A pretty austere view on gas markets. Last yearme charges as we reallocated capital and chose to stand down from large opportunities we had. We took some writeoffs. Gas will continue to be a well toughed market with ramifications for pricing. What is 50 and some two dollars in gas mean for them . Mike it depends on their portfolio. Liquidsave more waiting, perhaps not so much. Whether or not you have been able to bring your Capital Spending in line, you have a lot of debt coming due, you can be in a difficult position. It depends. Some of our small and midsized competitors can do all right. The other challenge with super tuesday, the elections in november. A lot of the nominal a lot of the democratic nominees hate you guys. How do you fix that . The Energy Economy has never been bigger than it is, energy jobs have not been bigger than they are. Energy has never had a bigger impact on trade or security than it does now. It is important. We see how the election sorts out. The next president will inherit is anrgy economy that asset, one prior president s wish they could have had. Inwill be prepared to engage policy discussions with whoever the president is. We do this every four years. We prepare for either eventuality, with intent to engage in a discussion. We have an obligation to understand how fracking works. It has been done for decades, safely. Energyart of the u. S. Economy, helping to drive our economy. Understand people the benefits, how it is done, and if there are things that need to be done to regulate it better, we can talk about that. Alix you are open to more regulation versus a ban . Regulation. Able if there are gaps, that is the discussion we engage in all the time. Oil the conversation for companies is Free Cash Flow, buybacks, capital discipline. How have you altered your Business Plan to fit that narrative . Mike that is the core of our Business Plan. Commitment to reduce our operating costs by another billion dollars by the end of this year, improve margin flatre and maintain spending. That allows us to double Free Cash Flow per share over the next five years and continue with shareholder distribution plans that yield more than 7 . This is what our investors are looking for, a commitment between terms and shareholder distributionals. Alix do you think that will change . Mike fundamentally, improved reserve returns is something the Industry Needs to deliver. Over the last decade, we have not delivered as strong of returns as we would like. That is the number one thing i hear from shareholders. Execution. T risk, they want to see their work as part of a lower carbon future. With the other has to do you have to keep exploring and developing your projects in order to make up for what you have lost by normal decline rates. Dont halfsay you enough. The ratio is not great, you have to spend more money to grow. Mike our five year reserve ratio has been greater than 100 . We replace more than we produce. Last year it was below. Dry gased our development in the northeastern united states, which took reserves off the books. We reoptimized our Development Plan and we cannot book reserves until we have data. One year reserve replacement can be volatile. Longer periods are the thing to look at. We have been well above 100 . Will weyear from now, talk about the u. S. Being in the Energy Driver seat in the world . Mike i think we would. Alix will it be another country . Will it be solar . Mike the shale revolution has made a dramatic impact. It is a tremendous resource. We have an industry that has the capability and capitalization and workforce to develop it. This is not a one and done phenomenon. This is a structural change that will be with us for decades. Alix is the demand going to be there . Mike there are 7. 8 billion people on the planet. 2040, that goes over 9 billion people. There is an emerging class looking for better life. We need all sources of energy, wind, solar, nuclear. We will also need oil and gas. The demand will be there. Alix i appreciate your time. That is mike wirth. Amanda thanks so much. The 10 year fall below 1 for the first year ever on the u. S. Market. That as the stock and bond markets respond to that rate cut from the Federal Reserve. The equity markets, we see the stocks close to the lows. Keep your eye on them. Central bank acknowledging the rate cut does not solve the coronavirus problem but will do what it can for the economy. Millions of voters are heading to the polls. The 5 the prize in the fight for the democratic nomination. Liberalizedrs has has energized liberals and young voters. Wave. New york state has confirmed a second case of coronavirus. Governor cuomo said the man who itly traveled to miami is also not clear whether he and been in contact who an infected. Tornadoes ripped across tennessee early today killing at least 19 people and destroying about 40 buildings. Causedthe tornadoes Severe Damage in downtown nashville. Schools, transit lines and transport stations and