No huge moves just yet. We will give the market time to digest that. Once again, the bank of canada cutting 50 basis points. A little trepidation given the heating in the housing sector. Lets move to the u. S. Picture. We are getting a bounce today, and you can be sure that Services Data is going to do nothing to do away from that. The Health Insurers are at the top of the pack, up 12 for some of them, this after the super andday results showed Biden Bernie Sanders can for the democratic number nation. The 10 year yield at 96 basis points. We got as low as 90 points in the basis in the u. K. Session. Crude oil bouncing back about 2 . I believe we have a fiveday chart of the 10 year yield to give you an idea of where we have been for the last five days. We will get to that any moment. What is going on in new york, guy . Guy we are up 0. 9 on the stoxx 600. Utilities are leading. A defensive story when it comes to equities today. Feels like a risk on blowout we are seeing. The german tenyear, 64 now. We are down by another basis point today. We continue to see yields going lower and lower. Vonnie for more on rates now post the fed emergency cut, we are joined by mark haefele, ubs chief Investment Officer from zurich. We have another central bank cutting, and not just by 25 basis points. Your reaction to what might be the beginning of a domino effect, and whether this is because the g7 hasnt done anything coordinated yet . Can call it not coordinated, but we have seen not just canada and the u. S. React. We have seen australia react. We have seen japan react. These Central Banks are taking advantage of the low inflation environment to provide some support to these markets, and the history since the great financial crisis has shown that it tends to work overtime. I think after that be digested yesterday, that started to be reflected in markets a little bit. Vonnie do you imagine we will get more cuts from the Federal Reserve now that we are well below 1 on the 10 year . It seems like the market at least is looking for that. What is your outlook now . It is certainly possible to get another cut. Feds movebout the yesterday is that, given the coronavirus situation which continues to unfold, it is very hard for the Central Banks to achieve shock and awe with one move. Those are the two narratives playing out in the markets, making the markets, which is just how bad will the coronavirus situation unfold outside of china versus the willingness and ability of the Central Banks to cut. We would expect continued volatility as that swings back and forth on new data about the coronavirus. Guy mark, what did you make of the fed move yesterday . We had an intermeeting move. It felt like an emergency move. That seems to communicate the idea that we have an economic crisis on our hands, or economic emergency. Do you think that was the right way to communicate what is happening here at the moment . Do you think the fed sent the right message by delivering this . So, instantaneously, people were concerned, but i think over time, it will prove to be the right message. The fed is, in essence, saying that they realize that negative rates are not going to help the situation, and given the low inflation, they are willing to frontload cuts in support. They have that luxury, rather than wait and be back end loaded and potentially have negative rates. I think that is a positive signal overall. At the same time, for markets, if you think about yesterday, you have this fed rate cut at a time where, tragically, theres been eight deaths around the coronavirus in the United States, but it is a relatively small number to date. But we also know that the number of cases as the testing expands in the United States will increase. Those are uncertainties that led to some people to think that maybe the fed knows something that we dont. Is that a little bit there is some good data coming out from the World Health Organization mission to china about what control measures need to be done. We also have colleagues around the globe, particularly in singapore, a nation that has kind of got this under control. I think that it does transmit like the flu, and isolation does work, but it needs to be aggressive. The different scenarios that could play out in the fed leading a little bit here, being aggressive at the start, contributed to some initial wondering about what does the fed know that we dont. Guy that is a conversation we always seem to have. Lets talk a little bit about what is happening with the equity markets. Do you think with this quarter, the low was in friday for the s p . Course, dont know exactly where the low is, but we were in the markets yesterday adding to our equity exposure with optionality. We also bought some u. S. Highyield, in part because we think that the central bank weponse and the fact that have seen signs that containment has worked to a degree in china and some other nations leads us to believe that it is probably too late to be massively selling here, unless some other new factor unfolds. Vonnie where are the correct levels in u. S. Treasuries right now . What would be something you could live with on the 10 year . I feel like theres opportunities no matter what the level. We have to take it. Is of the things weve done , theve been adding in tips inflation protected securities, over the 10 year because we think some of the action in the 10 year is mortgage hedging and other things. That might be an opportunity for people to look at. Vonnie Market Participants anticipating another cut by the end of april. Many looking for something in march. Do we get as far as half a percentage point, or even zero before this is over . Know, i think when some countries have rates below zero, we are in economic uncharted territory yesterday with the 10 year below 1 . For some people, it felt like we had fallen off a flat earth or Something Like that. So anything is possible, but see i think we will aggressive action, not just monetary action. Stimulus ine fiscal different parts of the world as this unfolds, if it got worse. So there are stabilizers that would prevent an unprecedented move of Something Like the 10 year lower. Will the fed do actions if the 10 year continues to drop . Absolutely. Guy let me jump in for a moment. We are just seeing reported now that Michael Bloomberg has suspended his president ial campaign. That is being reported by axios. We will get confirmation of that very shortly. Lets get the latest on what this means for the democrat nomination process Going Forward from here. Kevin cirilli joins us now to give us his sense of what this means. Given what we saw yesterday, is this a big surprise . Kevin it is not a big surprise. Based upon my reporting, what i can tell you is that former new york city mayor Mike Bloomberg had gone into super tuesday hoping to take up a significant number of delegates. That did not turn out to be the case. Behind the scenes, what we are gathering is from Bloomberg Campaign officials, as well as folks who talk to Bloomberg Campaign officials, is that the former new york city mayor is someone who is driven by data, someone who is assessing the numbers, and the math simply does not look to be there for him to be the nominee. He has saidowever, consistently publicly that he will do everything he can to defeat President Donald Trump from getting a second term. In fact, if you look at a lot of these advertisements that had come out from the Bloomberg Campaign around the country, they did outspend significantly former Vice President joe biden, who emerged from super tuesday as the top contender and frontrunner of this race, but that advertisement coming from the Bloomberg Campaign were largely attack ads against president trump. That is largely anticipated to continue. Note,her points i would with bloomberg comes a political apparatus that is all around the country, and that is well positioned in suburbs around the country. If you crunch the numbers, the Bloomberg Campaign was able to win over a significant number of individuals in suburbs all around the country. Those are the key battlegrounds that democrats will need in order to win back the white house from president trump. So there is a case to be made from bloombergs political orbit that he will be able to be influential as it relates to the Party Platform in the direction of the Democratic Party, which was something he had talked beforend weighed ultimately deciding to get into the race. Vonnie will Michael Bloomberg keep spending on the airwaves, even if he has to change direction a little bit . Will he take direction from the dnc on who he should endorse . When will when should we expect an endorsement . Kevin he end his campaign have said publicly that he is very much going to keep his staff on through november and transition that campaign vonnie actually, let me jump in because we are already getting an endorsement. Michael bloomberg is backing joe biden in the 2020 race after dropping out. Kevin that just goes to further show that the biden political organ has been able to unify a large faction of the Democratic Party, in addition to picking up the bloomberg and dorfman. He also gets bloomberg endorsement. He also gets with that a political apparatus in atul graham states and a mechanism of in battleground states and a mechanism of being able to win. They will be able to convince independent voters that they will be able to convince suburban voters to back an alternative to President Donald Trump. Beyond that, he has said he will keep his campaign staff, a large number of officials on through november. The other point i would note here, this is an individual, having served three terms in new york city, with political experience. It is also someone who has emerged on the forefront of the issue as it relates to the Second Amendment and the environment. In addition to creating a political orbit in the suburbs, he also carries with him two advocacy issues that have become and have emerged as a crucial part of the Democratic Party debate, as it relates to the environment and as it relates to the Second Amendment. With that now, joe biden inherits all of that information , all of that mechanism in terms of that he will be able to funnel into his campaign. Guy are things to bloomberg chief washington correspondent Kevin Cirilli our thanks to bloomberg chief washington correspondent Kevin Cirilli. Just to reiterate, Mike Bloomberg suspending his Political Campaign and to endorse joe biden. He is the largest shareholder and founder of bloomberg lp, the Parent Company of bloomberg news. This is bloomberg. Guy from london, im guy johnson. Vonnie from new york, im vonnie quinn. This is bloomberg markets. Evercore isi head of comic research, it of economic research, is a Business Cycle expert. Hes 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 betterthanexpected this morning. All is obviously not well. You do hundreds of proprietary surveys on a daily and weekly basis, so you have uptotheminute 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 doesnt really help the virus very much. I think its 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 . Ed up again. We have gdp in the First Quarter bouncing 10 or 20 . You saw there pmi came out. It is just a complete freefall. It was about 30 . I think china is very weak, but things are opening up there now. By the second quarter, it will be a little bit better. I think pmi will probably go up a little bit from this freefall in february. Vonnie wow. Guy good morning. Nice to see you. Do you think claims that the u. S. Are going to pick up . Ed i do. I am bullish on the economy. I see things being very strong, like adp would indicate. Our surveys right now are 52. They were 55. They have come off. But looking ahead, it is hard to imagine that all of the things connected with the coronavirus risk wont impact the economy, just like they did china. In china, it took about three weeks from when it started counting the virus to when the economy really started to unload. I think towards the end of march, early april, i am counting on Something Like four to six months before we get to a point where the coronavirus is starting to recede like it is in china now. Guy how do you see this actually operating on a Company Level . Supply chains clearly are stretched. Theres going to be some sort of effect on the Services Side as well. Do you think u. S. Companies will hang onto labor or start to shed labor, at least on a shortterm basis . Ed i think they will try and hang on. They certainly are so far. Behaviornk it is the you and i have, whether in london or new york, as to what is going to happen. People are going to be not going out as much. That is going to impact the economy. They are not traveling as much. I think it is going to have a real impact. In 2021, i have the economy coming back to about 3 growth. Vonnie assuming everything goes well, what is needed between now and then to bring us out of what you are calling in armageddon Growth Scenario in china, and 0 growth for the next two quarters in the United States . Weve got a Federal Reserve response. What more is needed . Ed we have got to get more central bank easing. April, 25 in25 in march, and then they are going to look and see. If it looks really bad when they get to june, they will go to zero. Everything im covering is pretty obvious. It is just a question of how much you respond. Other Central Banks are responding, like canada just cut, i believe. Global short rates are coming down like a stone. Vonnie are there problems for small and mediumsize businesses . Will we see a wave of bankruptcies or liquidity problems . Ed sure, all over the place. Theres going to be a lot of interest in fiscal policy to try and help companies that have been impacted. That is what is happening in china right now. I dont think getting anything done in the United States, given the election coming up, but likeusly fiscal policy they just did in hong kong would make sense, make more sense if you are cutting interest rates. Vonnie we have a lot more to talk about. He is staying with us, ed hyman of evercore. Guy ok. Still ahead, our exclusive conversation. We are going to be talking about more on what is happening with the fed. St. Louis fed president jim bullard will be with us. Cant wait to hear what mr. Bullard has to say. This is bloomberg. Im abigail doolittle. Lets get a check of the markets at this hour. After yesterdays emergency rate cut, we have a nice rebound now. The s p 500 and the nasdaq here in the u. S. Up more than 2 . At the lows, up 1 . A little bit of uncertainty about the macroenvironment around the various rate cuts we are seeing. The make of canada cutting by the bank of canada cutting by 50 basis point as well. The stoxx 600 up 1 . Take a look at bonds. We have that 10 year yield at 98 basis points, losing to basis points on the day as investors still one in on bonds. When we take a look at the volatility on an overnight chart of the s p 500 futures, this is what it looks like. Lots of gains for the most part. Yesterdays move being bought. Theres a little bit of volatility. It will be interesting to see how the day plays out. When we put this in the context of the longerterm technicals by going into the bloomberg terminal, relative to the last year, you can see some upward trend, but lots of chopped. Wethe gap down last week, see the 50 Day Moving Average is starting to ramp down. Nearterm momentum is in control of the bears. You can see the s p 500 wrestling with that 200 Day Moving Average. Below that level, it signals that recent congestion could be bearish. Finally, a big winner on the day, the health care index, up the most since 2008. Im abigail doolittle. This is bloomberg. Guy from london, im guy johnson. Vonnie from new york, im vonnie quinn. This is bloomberg markets. The bti crude up almost wti crude up almost 8 . We are awaiting Oil Inventories from last week. The market is looking for a build. Just 450,000 of the previous week. We are also waiting on refinery utilization, which was negative last week. Here we have it. We have a build, but not as big as forecast. Oil is rising even more off the back of that. 84,000 barrels last week. Refinery utilization was down 1 . Gasoline inventories showed a drawdown double what was expected, at 4. 3 3 million barrels. Crude up about a dollar now, or more than 2 . Guy lets carry on our conversation with ed hyman, evercore isi chairman and head of economics research. Do you think that jay powell did a good job yesterday . Ed i dont think its whether he did a good job or not. Market got into what does the fed know that we dont know, and i dont think the fed knows anything that the markets dont know. The economy is not falling out of bed, which was the interpretation. The economy is not falling out but the story yesterday, the market is about 2 3 economy and 1 3 political. They start to think, if the economy is weakening like 50 basis might suggest, then maybe Bernie Sanders wins, and oh my gosh, that is a pretty negative scenario. Did you get the results last night, and no it looks like Bernie Sanders is not going to lead the ticket, so markets are up. We also have sort of unlimited fed easing coming down the pike. Guy weve got unlimited fed easing, Bernie Sanders looking like hes going to have a tougher road. Do you think the s p had a low on friday . Would you be a buyer now of the s p . [laughter] ed you are just getting me in trouble with a question like that. I think it will be higher at the end of the year, and i think the stock market looks good. For me to buy bonds yielding 1 versus buying the stock market, which yields 2 , i would go for the stock market. Vonnie the fact that we are where we are now in this coronavirus has suddenly entered the picture, does it change where we are in the Business Cycle or market cycle . Ed im not sure. This is unprecedented. Theres nothing like this, except maybe 9 11, which hit, they responded, and at that point, it looked like it had changed American Life forever. In hindsight, it didnt. But my guess, like i mentioned, is this will be pretty much through the system in about six months. China is taking maybe four months until you can see that the numbers are way down, and now people are coming back to work, so it is that sort of timeframe. It is also uncertain. Thats why the markets are uncertain. You dont know if this is something more serious and gets to be really bad. But it will pass through the system. I am not trying to belittle it. Think there will be a lot of cases and a lot of deaths here. But it should work through the system. It is always possible that we get some sort of remedy for it. Thats being talked about a little bit now. Vonnie the other thing you do that gives an edge to people who follow you is that you survey hedge funds. What have hedge funds been doing, and what are they doing today . Ed we survey about 40 hedge funds week. The only thing thats a little bit of a bias is 80 of them are here in new york. Right now, they are defensive. They have not extended any during this entire market rally. 50 iss particular index, your base mark, and the survey now is about 45. Before the great financial crisis, it would get to 60 regularly. 2006, 2007, they would really get long. Now they are still hugging a pretty defensive position, which from a contrarian point of view, is a positive thing. But it certainly hasnt helped any last week, when the market got absolutely shellacked. Guy what are the credit funds saying . Are they worrying about what is happening in bbb . Ed we are in an equity shock, and i really dont have the exposure to your question. I dont know exact how they feel. The spreads are starting to widen out as the stock market went down, so i assume they are getting nervous. Lets talk a little bit about equities then. In terms of the positioning inequities at the moment, as you say, reasonably defensive. How much dry powder is there available potentially if there was a view turning around that arethe equity markets starting to look like value, and people are willing to step in . How much dry powder using there is to take advantage of what we have at the moment . Ed i think you go from dip to rip if there was something to clear the air. Dont think anything is going to come along in the next three months. I think it will get worse and worse. We survey hedge funds. They are clearly defensive. Every week, you get data on flows by mainly individuals. They are putting money into bonds, taking money out of equities. Theyve been doing that for years. When i travel around, which i do constantly, i find glass is half md. If things were to work out better, theres plenty of dry powder to fuel the stock market. Vonnie lets talk about the Administration Agency feedback loop and what is going on there. As the Federal Reserve a different Federal Reserve than in ben bernanke or Janet Yellens time . Is there a perception problem . Is the president impacting Market Perception of the fed, even if not the fed himself . What would you ask tim bullard to say . Ask jim bullard to say . Ed thats a lot of questions. Trump is really nothing ive ever seen before. Previous president s have job owned the fed, but nothing like the have jawboned fed, but nothing like this. I understand their thought process pretty well, and part have krishna who covers the fed for us. A fed funds rate below 1. 25 looks perfectly normal. On bullard, i would ask and that. How does he feel about having the bond yield so much below the fed funds rate . In our case, we think they will cut the funds rate, and hopefully at that point, you have a positive yield curve. Equity marketu. S. Look better positioned right now then other equity markets around the world . If we see stabilization in china before stabilization elsewhere, does that market become better valued . How do you see the u. S. Versus the rest of the world . Ed i dont see the u. S. As being some sort of shining star compared to other markets. Every market works itself out in terms of valuation. Economyay that the u. S. Looks the best of any economy that i look at. Oddly enough, we have one ocean on one side and one ocean on the other, and friendly borders on the north and south, so compared to other economies when you have value coming through looks pretty attractive from that perspective, but i dont have a particular positive view on the u. S. Versus other markets, or a negative view on it, for that matter. Guy always a pleasure to get your take. Thank you for spinning time with us on bloomberg here today. Ed hyman joining us from evercore. Coming up, we are going to speak to the ceo of avolon. Onhnal slattery will join us this virus outbreak. Thats next. This is bloomberg. Renita this is bloomberg markets. Coming up in the next hour, we will have an exclusive interview with james bullard, st. Louis fed president. Vonnie live from new york, im vonnie quinn. Guy from london, im guy johnson. This is bloomberg markets. Vonnie as we all know, the travel industry being hit immensely by the coronavirus. One of the Worlds LargestAircraft Leasing companies, avolon holdings, is considering measures to help. Backonald slattery is just ceo Domhnal Slattery is just back from the conference. What was the message you are receiving . Domhnal i would describe it as two core themes. I met with a number of asian and a number of asian airlines. The perspective coming out of china and singapore was a sense of may be the worst is over. Cautiouslyeeling optimistic that they were in the endgame of the virus. Thattrically opposite of were European Airlines and some of the u. S. Majors, who are now for the first time really beginning to see some direct impacts. On tuesday, we had a number of the major wall Street Investment banks deciding nonessential travel was off the cards. That has an immediate and direct impact where we expect a lot of money. Think it is a tale of two stories right now. The beginning of the story in the western world, theres a sense that the worst might be over in china. Vonnie you have been considering measures like waiving lease payments. How many are taking advantage of this, and is it helping with the liquidy situation . Domhnal if we look at china, we think this is just a liquidity problem and challenge, and that we will get through it. So we are assisting our chinese carriers and companies in china with referrals as appropriate. Clearly, there are some airlines directly impacted. We are trying to be considerable and thoughtful on this, but supportive. Weve got liquidity on our balance sheet. We positioned in a defensive way on an ongoing basis. It is times like this where the religion between a global lessor and its airlines really come to count. Guy good morning. Guy in london. Are you seeing a softening when it comes to narrowbodys, secondhand narrowbodys at the moment, in terms of pricing . Are they softening now . How manyunallocated aircraft ash how many how many un allocated aircraft you have on your books right now . There are continued delays on new aircraft deliveries. That market remains pretty firm. Strong demand in south america and north america in particular. It really depends how long the virus goes on to the consequence for demand. With respect to our own portfolio, we are almost 100 safe at the back end of next year. We still have a number of unplaced maxes, but that number is on hold until hopefully the aircraft returns to the skies later in the summer. To behere is going consolidation in china amongst the airlines. How do you see it unfolding . Domhnal there are four major carriers. There was speculation in the media last week that they were going to get consumed. Vonnie and full disclosure, hna owns avolon. Domhnal they own a part of avolon, but we do with them very much at an armslength basis. News over the weekend that the Central Government have put in executives into the group. I think that is credit positive. The rating agencies have called that a positive. , it is perhaps owned by other shareholders. Time will tell. But netnet, as with think about the chinese market, what we have is a sovereign support network because the Chinese Government is just not going to allow any of these airlines to fail as a consequent of the virus. You said hopefully max gets back into the air by midsummer, but talk to us about everything that happened as a domino effect from the downing of the 737. Are you still hoping for the max to return, or would you rather it just got scrapped and Something Else got started . Domhnal very much at a strategic level, i think it is in the interest of all stakeholders in the early space foodchain that this gets back into the aaron flying because when you have a duopoly like you do with airbus and boeing, if one of those players has a challenge, it is not good for the overall foodchain. Airbus is sold out for seven years on its narrowbody program, which is good news for airbus and its shareholders. In religion to the max, we remain confident that airplane will get back in the sky late summer. Believe, based on what we have seen, we are in the endgame. It will take probably two years after that gets back in the sky to get back to a normal flow production. The worlds airlines, the vast majority we talked to want this aircraft back flying. There are some airlines reconsidering their position, as you would expect. Theres no market, per se. Theres no rental levels to talk to. That will take some time to flow through and the second half of the year. Guy i spoke to Michael Oleary yesterday in brussels. He says he is seeing his aircraft being prioritized. Do you think certain carriers are going to get prioritized for the max . How is it going to work . Domhnal michael is a big customer of boeing. So are we. So our southwest. Theres 400 of them parked in a variety of locations. Just think about the logistical challenge of moving airplanes around to get delivered. Boeing will try to get there will be airlines who absently want the aircraft back in the sky quickly. Ryanair seems to be one. Southwest is another. I dont think necessarily ryanair will be prioritized over any other airline, but im sure michael would like to think that. Guy he certainly sounded fairly confident on it. Can i come back to this hna connection you have . Are you looking for alternative financing right now, to maybe change the structure of the way you do business and how you are financed at avolon . Hna is now effectively in government hands. It will be interesting to see what happens Going Forward. Domhnal we are very much in independent lee run company. Theres 6 billion of cash liquidity on the balance sheet. So what happens at the age level is not that relevant to the running of avolon as an independent business. We continue to position ourselves as an unsecured borrower in the investmentgrade market. That market has been moribund for the last week and a half. The good news from avolon perspective is that we are prefunded for all our capex through the back end of this year. Whether it was luck for insight, we got a 1. 5 billion bond john bond done in the first week of january. So we are confident from a liquidity perspective. Today. Anks for your time we really appreciate it. Slattery, ceo of avolon. We are heading towards the european close. Abigail doolittle has every thing we need to know. Abigail i hope that is the case , and to meet your expectations. We certainly have a risk rebound on the day after yesterdays fedinduced selloff, that emergency rate cut. We are off the highs once again in the u. S. Nonetheless, very nice gains after that big selloff. The stoxx 600or in europe. The shanghai composite in the Asian Session nicely higher, up about 0. 6 . Areof 0. 8 , so risk assets in rally mode. Lets go into the bloomberg terminal and take a look at where we are at. Theres a very clear message. Upve the redline, bonds 5. 6 . Oil and the dow transports, both down. We have cover and the s p 500 down since the coronavirus broke out. Interestingly, the shanghai composite down about 1 , but risk assets clearly suffering. Health care on the day is doing quite well. Some of these indexes having the best day since 2008 is joe biden did Gain Momentum in the bid for the election on super tuesday. Finally, other sectors doing quite well on the day, the rate as yields areors dropping on the day. That is helping those dividend rich sectors. Guy abigail, think you very much indeed. We are going to carry on with coverage. We will go to the cme next. This is bloomberg. Guy its time for futures in focus. Ira epstein joining us now from the cme. Are these markets tradable . Ira actually not. Once you get into 10 territory of a correction, the market fights to go a little bit further. Sometimes you get to 15 . The next day, you find you are a 9 . For, and you are seeing it, is your getting 3 5 switches, which is highly unusual, from the evening trade into the day trade. Youre supposed to make something out of that i dont think you can. The same time, the coronavirus unknown, we keep hearing of new cases. Italy toying with the idea of closing schools. In our own office, we were going to go to a Rain Convention in texas. Plans were canceled yesterday. Youre going to see much more of that. Guy what do folks think of what powell did yesterday and his performance during the press conference . Ira i am of the opinion that he couldve waited, gotten into the march 16, 17 timeframe. He must know something we dont know. Thats how i walked away from it, and that was the reaction of the market place yesterday. Todays reaction is much more Michael Bloomberg having dropped out of the race, biden doing better than people thought, and it being a two man race. Markets are digesting this. Guy we are going to leave it there. Thank you very much, indeed. Epstein joining us from the cme. What have we got coming up for you . We are going to be talking more about the fed. We had this interview coming up. Jim bullard is going to be joining us. We will be having a conversation with him at the top of the next hour. He is just of human its way. People are trying to figure out exactly what is happening with the fed. Does the fed know something we dont . Expectations are that that probably is not the case, but heretheless, nice to that from his mouth. Up next, jim bullard, st. Louis fed president. This is bloomberg. Guy from london, im guy johnson. We are counting you down to the european close on bloomberg markets. Vonnie in new york, im 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 yesterdays 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