Greekturkey border. It is real, boats be encountered after the third election in less than a year. Party has aanyahus leader but is falling short of the majority needed to form a government. With nearly all the votes counted, luck to let it away. Followed by the centrist blue and white party. Netanyahu is set to stand trial on corruption charges in two weeks. Global news, 24 hours a day on air and on quicktake by bloomberg, powered by more than 2700 journalists and analysts in over 120 countries. This is bloomberg. Live from welcome to bloom. Stories wee top are following from around the world. Stocks rebounding after yesterdays selloff. Betting on a concerted effort by the largest economy to tacko fall a lot from the coronavirus. Health stocks leading the way in the u. S. Stocks getting a left after a strong showing from joe biden in the primaries. The bank of canada following the u. S. Says coming into trade this morning with half a percent at the coronavirus darkens the Economic Outlook. Officials are saying they would act again to reduce rates if necessary. Lets check on the major averages. We are seeing a boost in equities today do and no small part to some health care stops rallying impassively on the fact that joe biden showed strongly in super tuesday. Mr. Street, no fan of sanders and his health care plans, where he and what pressure that would have on private insurers. The dow art the dow up 800 points. S p up almost 3 as well. Some moves in the chipmaker names. About a china exposure in the coronavirus, it seems ,nvestors the 10 year yield 1 for the first time on the heels of the fed making rate cuts. Lows. At record our central bank today moving instat with the u. S. Federal reserve cutting by half a percentage point. Our economists think there is more to come on the bank of canada as g7 countries react to what is going on. Vonnie the Canadian Housing sector will need watching because it had been hot. That half a percentage point will be impacted canada. In terms of the u. S. , it would be fun to look at the housing sector and how yesterdays emergency rate cut will impact that sector. The data has been showing it is healthy. Investors optimistic and pending home sales and existing home sales came in strong. To refinance homes has been surging. That is the white line. It surged in the last couple days. This as Mortgage Rates tumbled. We are going to be seeing potentially refinancing and people taking out new mortgages. Expectation, the fact the bank of canada went deep in its rate cut, it might inflame what we have seen, the loonie falling on the news of the bank of canada dropping basis points. The light to the upside means the value of our Canadian Dollar did drop off dramatically. A lot to digest today. Line with the u. S. Federal reserve. They applications for this economy. If the are any doubts he was concerned about the spread or followed from the coronavirus, and are not today. He is all in on stimulus, not only cutting Interest Rates, matching the fed cut on tuesday, but taking it one step further and saying he is ready to cut again if needed if the Economic Outlook deteriorates. This is dramatic reversal. He was governor of the bank of canada, one of the few central bankers that did not cut Interest Rates last year. That left canadian policy rate to the highest among industrialized nations and the reason he was reluctant to cut wasrest rates up until now because canada has a unique Household Debt levels, official did not want if you will more data, they did not want to feel the Housing Market you talked about. Aroundarly the concerns the coronavirus, be global Economic Outlook, have begun to outweigh Financial Stability concerns that the bank may have had. Vonnie given the concerns, how much was the bank of canada forced into this move . Economists were looking for a cut in the median today. At least partatch of the fed move. The risk of having canadian Interest Rates that are too far above the fed rate is that it drives up the Canadian Dollar and that is not good time for the canadian economy that is struggling. The canadian economy did not grow last year at the end of last year. Of made in lot canada headwinds, we have disruptions, Business Investment is not strong. There are things to worry about around the canadian economy that have nothing to do with the coronavirus. A is not a great time to have strong Canadian Dollar. The bank of canada did not want fade cut andthe canadian rate. The fed moving back 50 basis points on tuesday essentially fourth the Canadian Bank of canadas hand. We could not have had a more interesting opening act. Toronto coming out with february numbers. Who buys a house in february . Apparently i a lot of people. Prices up 17 . There,worry the fire is here is the additional fuel. That is the big risk. Governmentfederal loosening mortgage qualification rules. Ins is kerosene on kerosene canadas Housing Market. That is the big risk. Thisnk that is why dramatic change and tone of the bank, this change in policy suggests a pessimistic outlook at the bank of canada because they had been wary about this problem for more than a year. The fact that they are moving at risking thisand bubble in places like toronto goes to highlight how worried they are about the broader Economic Outlook. Vonnie we will keep an eye on it all. Markets 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 yesterdays 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 risk is the cut is possible, that the fed follows and cuts more at the april meeting. What we looked at in a broader context is the overall financial conditioning index and what we heard Jerome Powell sank yesterday was the cut was meant to prevent financial conditions from tightening. Greg when it comes to these cuts, the most powerful central bank and the world acted first. We acted in canada. Preceding this is the phone call from the g7 central makers at finance ministers. Can be expected the governments to show up at be a partner in this with fiscal stimulus . Takinge governments are action in countries that have been hit the most. We are seeing it in italy and in china. For both of these countries, the issue has been to contain the spread of the virus and later on they will try to use policy more aggressively and china to support the economy because that will be needed later on. Is losses tooblems the economy will be permanent in the sense that services are not storable. That implies the comedy vi carmine vonnie does the fed hike Interest Rates as soon we see the impact of the coronavirus go away . The expectation is for the fed to cut. Focus will be on financial conditions. Two weeks ago, we compared financial conditions with the growth in advanced economies. There has been a whitening between the gap of financial conditions and activity in the economy. The signal from advanced economies is growth would be 2. 6 in the First Quarter. On 1. 3 . Is there is a gap between these two. It suggests that monetary easing is supporting the Financial Markets but not fitting into the real side of the economy. Greg there seems to be a disappointment for Market Participants yesterday even though the fed went deep. Have aell had to say, i central banker, i will not cure the coronavirus or stop it. That it seemed to have a sour tone. Are we coming to grips with that reality . The central base have saved us from a lot, they cannot stop a virus. Pernille the key for the central bankers and at this stage was to prevent financial conditions from going into tight territory. They are not there yet, although there has been a sharp move recently. The challenge is if we go into tight territory on financial conditions, the economic boost traditional shots to financial conditions become larger. It depends on the level of financial conditions. The impact of the u. S. Election on the economy, given that the feds cut yesterday and we will not see the impact for several months, will that have an impact on the polling come november . Pernille fundamentals in the u. S. Seem strong. Services we got today was a solid. Much focus will be on how services will be affected by the virus outbreak. There are these permanent losses. Expect will would not be the same within services. Be hit fairly hard if the virus spreads more substantially within the u. S. Because messages for people to stay home is affecting services. Greg thanks. We want to point out, one sector in a u. S. Stocks moving higher in the last hour. U. S. Airline index, this comes as President Trump sought to secure u. S. Airline leaders. The industry confronts a potential collapse of travel demand because of the coronavirus. This is bloomberg. Super tuesday leading up to s10, especially for joe biden. Closing the gap with Bernie Sanders and what has become a twoperson race. Clearly, at least of the Health Care Stocks, the market like what they saw. Care stocks were probably artificially low. Investorking with some relation folks who were saying the fear that Bernie Sanders was going to nationalize medicine was probably overrun. These things happen. Tuesday was a great day for joe biden. Now, very much in the lead leading nationally in the last three poles. I think he is looking now like he is the front runner and possibly the nominee. Vonnie how much will Michael Bloomberg endorsement mean to the Joe Biden Campaign . That locked up now given money will likely be diverted from what was bloombergs campaign to joe biden . The endorsement that probably matters is that when he put on the back of the check. The money that he said he would spend on the democratic nominee is probably more important than saying he likes joe biden, especially given how poorly he did on super tuesday in the states where he was spending the most money. As things start to shake and super tuesday is an important event when we talk about you will get the nomination, are we starting to get a better sense of the timeline . Do we know who is going to go up against President Trump . I think we will see in the next couple big states that primaryhere will be a basically every week in a big state, it will be clear very soon if joe biden can sustain this momentum. I think that the party, establishment, decided he was their best bet. A lot of moderate voters who were late deciders decided to go with him as well. Another option out there. Elizabeth warren could not pull it together. Everybody else has dropped out. It is down to him or sanders and it is not looking like sanders can improve on his performance in 2016. Vonnie our thanks. Disclosure, Michael Bloomberg is the majority owner of bloomberg lp. He endorsed joe biden earlier today. Lets get a check on markets. We are close to highs of the session. S p 500 up 2. 9 . The Health Care Index up 11 . Health all up. The Canadian Dollar a little weaker. The u. S. Ar yield in back up to 99 basis points. This is bloomberg. This is bloomberg markets. Vonnie it is time for your latest business flash. Could cut offs millions of dollars from First Quarter operating products. The impact of the virus was not incorporated in expectations for the last three quarters. Buyout opportunities increasing. A cofounder says the coronavirus created dislocation in the market at that could be chance to buy. The leverage u. S. Company, a good opportunity. Equity markets bouncing back. Right now hovering near session highs. Investors weighing the odds of further central bake Central Bank Rate cuts. Joe bidens Strong Performance in the democratic primaries. For more on market reaction, lets bring in senior markers editor. Lets start with the intersection of politics and virus. How should we read these moves today . Biden getting a little bit ahead of Bernie Sanders is causing a big rally in Health Insurance stocks, taking away that risk that a sanders presidency would lead to medicare for all. When you step back and look at the last couple weeks, it is not uncommon when you have a quick, sharp correction in the market like we have seen, it is not common uncommon to have a massive up moves and down moves. I think back to 2011 when the s p when the u. S. Lost its aaa Credit Rating from s p. We saw a similar scenario where you have massive, quick correction followed by a big update next eight, back down the final day. It takes a wild for volatility to work its way through the system until you can get a clear idea of what the market is itcing in at whether or not will be a quick recovery from this drop or something that will take longer. Vonnie we are seeing Health Care Stocks rebound. Can we expect other sectors to follow suit . Pretty much the entire market is up today. Are catchingstocks a bid today after a nasty drop. Air like index down almost 30 since this started. Market, there is some complacency, maybe some hope that the numbers of patients in the u. S. And europe outside of italy is not rising dramatically. There is a risk that as more testing comes online in the u. S. At we start discovering more, we start to see those quarantine and isolation measures to halt the spread of this, i think that is the risk going forward, that we see an increased number of infections and further measures to stop the spread, canceling of events, shutting down businesses, that sort of thing. The market right now is reacting to a buyer righty a variety of signals that may not a signal the all clear but people making quick trades, whether it be algorithmdriven or regular investors trying to catch a little bit of this bounce. Going forward, i think the risk is only going to get worse. I think volatility is here to stay. Thanks. R vonnie stay tuned for more market coverage. Bloomberg users, you can interact with the chart shown using gtv. Rts featured on blaber tv on bloomberg tv. This is bloomberg
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