Myriad of things, hard to believe that congress is not going to get on and vote down any of those dynamics. But its got to be a series of things. It is not one silver bullet. I think they will do something. On the regulatory front, the banks in this country are in great shape. They have capacity. They have the wherewithal, the capital and liquidity to not exacerbate the problem what they have in past cycles, where they are piling on. I think theres room to continue to deregulate them and allow them support. Isolation is really key, and wiley country like singapore or china can do this effectively, how they can do it in the United States will be absolutely key. Jonathan acid a new discussion. Fascinating discussion. Great to see you. Lets get you some price action in this equity market. 32 minutes into the session, the equity market is down hard by 2. 87 . A wildbond market, just move on the 10 year treasury. That yield coming in at 21 basis points. The 30 year down by 29 basis points. Record lows in the bond market. For the white house view on the jobs report, we are joined on Bloomberg Television and radio by larry kudlow, National Economic council directly council director. I know you must be exhausted this morning, but lets get straight into it. The good news is the labor market going into this growth scare looks pretty decent. Yes, the labor market looks excellent. Very strong. Incidentally, most sectors of the economy look strong. We are through the first two months of the first quarter, so weve got january and february, and some of the china influence is already affecting us, but the numbers are probably better than anybody thought. You may be 2. 5 in the first quarter. I know as a realist, Economic Growth is likely to slow in the second quarter, and maybe the third. I dont want to get too far ahead of it because some of these virus numbers in china are way down. Outside of china, not so much. The u. S. Economy is very strong. 273,000 jobs, and as you know, with revisions, 358,000 jobs, that is a blowout. Wage rates still rising. The blue color boom still there from the data. Middle and low income people are outperforming their managers. 3. 5 ,oyment rate, acrosstheboard. That is awfully good. Housing is improving. Building is improving. A lot of construction jobs, and a pickup in manufacturing. Yes, the economic base is strong. The fundamentals of the economy is strong. We are going to see some issues coming up from the coronavirus. I get that. But i think for the United States, this is going to be a temporary problem. Jonathan not a time to panic, but a time to be prepared. We seem rate cuts from the Federal Reserve, and emergency 50 basis point cut. Any of our fiscal mnuchin andcretary i talking about it at the treasury and other groups helping us, we are in the camp ants timely and targeted micro measures, not large, sweeping hundreds of billions of dollars that dont affect incentives and dont affect growth in any permanent way. We were worried about people who may have problems with jobs and wages because they have to stay home. We are worried about Small Businesses, for example, that might need some help to get through this if it turns out. We are worried about certain sectors of the economy, airlines coming to mind, but i dont want to get too deep on that, that might need. Some help we are looking for it that might need some help. We are looking for targeted measures that might do the most good in a small period of time, not Macro Solutions that have no permanent impact on growth. We want to just get through this and help folks as much as we can in a targeted way. Jonathan thats music to my years because weve got a bit of a problem here. But whatbe temporary, will determine how temporary this is is the kind of tools we have ready to deploy to help some of these. Walk me through the actual policies. Youre having a discussion. When do we start to get some results . Mr. Kudlow stay tuned. We may have more to say about this next week. This when need to do the actual facts come in. We are getting reports from industries. We had the Airline People in the white house earlier this week. President trump is talking to a lot of major sectors across the economy. We just want to keep gathering of many facts and information as we can before we come up with anything specific, but we are looking at this. As i say, temporary and targeted to get through this, which will be, god willing, a temporary virus problem. That is our approach. We are not looking for big picture, gigantic packages. That will not help growth, as weve learned in the past, and will be huge budget busters. Jonathan something that concerns may come of that we will wait to see what the data says. Whatee not so far is ive seen so far is not just the administration, but they are being held hostage by the next move in financial markets, and they havent got the tools ready to deploy when they need to. This should be the planning stage. We should be ready to go. Have we seriously got no policies ready to employ if things get worse next week, the week after . Mr. Kudlow my short answer is yes, we can move very rapidly, and we are doing a lot of homework right now on all of these points. I dont want to put them out publicly because jonathan i understand, but we have a moment now where there is a real lack of confidence. We dont like to lay it on thick. This isnt about making people fearful of things. I think there is just a lack of confidence in global officials, not on the medical side, but on the economic side. Talk to me about the policies. Have we got payroll tax cuts ready to go . Do we have a tax forgiveness season ready to deploy if we need to . Mr. Kudlow we have made decisions on some of that. Payroll tax cuts, we can debate the pros and cons. I lean against them. We have tried them in the past, temporary tax cuts. They cost a lot of money, 650 billion dollars. They dont last. Theres no incentive affect because they are temporary. Again, i think the basic view ise amongst my colleagues temporary and targeted. If cash injections are needed to help folks who are at home because of the virus, one way or another, and lose a paycheck or two, we want to help them. If Small Businesses are in dire condition in certain parts of the country, we can inject some cash. That could be true in farming. That could be true in manufacturing. That could be true in transportation and a lot of other places. To pull that trigger will not take much time at all, and probably, we would like to do it internally, if we can, by executive order. We just got the a billiondollar package from congress. Thats good, helping on the medical side of this. Very important. Thankful for it. We may need to come back. If we need to go back to congress, we wont hesitate. But we are in the planning stage, and by the way, secretary mnuchin reminds me the g7 just had a very in court and Conference Call very important Conference Call. All of these countries are making their own plans as things develop in those countries. I dont want to be premature, but yes, this can all be done in a timely way. Information gathering is very important, jonathan. With respect to the jobs report today, which was a blowout number i mean, employment is blowing out under President Trump beyond what anyone thought possible but that good income numbers, good spending, good housing numbers, lets not assume the worst. Youve got a menu of options here. Some options are negative. Some options are either less negative or rather positive. I want to wait and see how that plays out. The same is true with the actual contagionports on the. Jonathan i dont want to teach you how to be a policymaker. Youre far more experienced than me, but you know how it goes. Lets talk about thresholds. Ive got yields at alltime lows, crew down. My bloomberg terminal is lighting up. Movewill determine you to and deploy those tools you say are ready to go in a timely fashion . Does the market did take that . Does the data dictate that . What dictates that . Mr. Kudlow both will dictate that. Look, youve got myself, secretary mnuchin, President Trump, for that matter, we all have a lot of market experience. We all have a lot of businessecto experience. We all watch the markets. On the other hand, you have to watch the data on the ground. Economic data, the health data, the iris related data. We the virus related data. We have to do that. We cant just make a move because of the bonds on thursday or friday. We are watching it. We are trying to do our homework and watch everything. I just want to say, again, im not the medical expert. I am part of the task force. Im in constant touch on a daily basis with our really experienced cdc people and others who have done such a fabulous job. Ive got to give them a lot of credit. They are all over it. Most americans are not at risk. That is their view. Most americans are not at risk. The biggest risk cohort is the seniors, the elderly folks, and they need to be extra cautious. The younger you are, the less risk you are facing. Most americans, over 80 , recover rather easily should they get the virus. I want to put that out. My point is if you are healthy and you exercise common sense about washing your hands, and kleenex for sneezing and coughing, and things of that nature, and you avoid the obvious places where there are travel advisories, most americans are healthy and should go about their business. Thats what im saying. Thats what the data is suggesting. Jonathan neither of us are medical professionals. I want to focus on the economic data, not the data from the virus. On the economic data, it is clear that the delivery times on the pmis are stretching out. Weve got a supply chain issue. An easy way of addressing the supply chain issue would be to drop some of the tariffs. Why are we not talking about that . It is an easy policy response with no followthrough. Why not . Mr. Kudlow just quickly come of the supply chain data shows just quickly, the supply chain data shows some slowdown. Not huge, i might add. So far, really quite manageable. With respect to tariff policy, ive not heard the president mention that. It doesnt seem to be on the table right now. We would undoubtedly like to focus much more on our domestic issues, whether they are Economic Issues or healthrelated issues. So the tariff question is not being addressed at the present time. Jonathan but larry, can you see why this is a problem . The president is signing a bill, and the only policy initiative he is talking about is cutting rates again and getting the fed to stimulate. And i know you know this, theres a policy ready to go that would offset a lot of fear out there at the moment, whether it is justified or not, and there is a reluctance to deploy it. I just dont understand why. We kudlow well, jonathan, have to be thoughtful and careful and analytic. We dont want to willynilly billion00 billion, 400 with a 1000 check to every american. Jonathan but thats not what im talking about. Im talking about removing tariffs. Im not talking about helicopter drafts. You know what im talking about. Mr. Kudlow removing tariffs, not everyone agrees with your analysis. It is something that is thus far, not surfacing yet. We like our china policy, and we like the fact that china has cut its own tariffs. And by the way, when this virus will, yous, as it will see a major export boom from the United States to china that will grow the economy by at least another percentage point. Regarding other measures i mentioned, measures that would be timely and targeted towards ,ndividuals or Small Businesses or perhaps some industrial sectors, that is on the table. We are in the planning. We are in the discussion and planning phase. Again, we have to exercise some caution and analysis. We are in touch with everybody in the economy, every single sector coming to visit us on a daily basis. The president is deeply involved , and my hats off to the Vice President for leading this task force. Dont be impatient. Youve got to exercise some judgment before you jump in, but we are on it. Trust me, we are on it. I im telling you more than has probably been put out publicly. We are on it, and we are looking at these various methods. Jonathan thank you, larry kudlow. White house National Economic council director. We are 45 minutes into the session, and your equity market in america shapes up as follows. Crude getting hammered. The bond market with a monster bid. Yields at alltime lows in germany and the United States. From new york, good morning. This was the countdown to the open. This is bloomberg tv. Vonnie this is bloomberg markets. Im vonnie quinn in new york. Guy in london, im guy johnson. Welcome to bloomberg markets. What a set of markets we are watching right now. Emerge outng news to of it opec meeting taking place in vienna right now. We understand that those talks are on the verge of collapse. Oil down and down very sharply. We are down by around 7 when it in theo brent and wti United States. Lets get the latest now on what is happening here and how close these talks are to collapse. Lets go to vienna and join bloombergs manus cranny, who is covering what is happening for us. What can you tell us . We are using the headline that we are on the verge of collapse. About an hour ago, preparedness for the russians to walk away. The risk to the market is that as opec potentially disintegrates, and we have said that the talks are at the point of breakdown, take your mind back to 2014. That is the last time that opec did not manage to agree a deal to bring be marketed to check. We are down nearly 1 . That is down on the possibility, so if there is no deal, the market collapsed by another 10 back then. The analysis is as follows. Russia walks through this door, the first question is how much are you going to pump. How much more oil are you going to pump . Are the discussions over . Will you have another discussion with your buddies here at opec . That is question one. Is the opec legendary marriage over . Is, ok,second question how much of a crash are you prepared to take on . What are you prepared to do as opec, i. E. Saudi arabia, kuwait, the united arab emirates, nigeria and iraq, what are you prepared to do if russia walks away from this . Are you prepared to take the cuts it will take to bring this market to heel . Or are you willing to take the risk to run down to 30 . Those are the decisions. That is not rocket science. That is simple analytics. The russians pump more, the saudis try to bring it to heel. Vonnie i want to bring in Frances Donald into the conversation. Obviously, oil is completely plummeting. The s p is lower for the sixth of seven friday sessions. Banks are down 25 . Windows this when does this end . Frances the ground keeps moving underneath us. I am seeing a lot of changing forecasts for the s p. Market Inflation Expectations are falling even faster. This headline, and all i can think is this makes it even harder for the Federal Reserve respond to these types of developments. With oil falling like this, we are at the level that we see adverse Economic Impacts for the United States on top of corona, adding to our pilot concerns. Vonnie thank you. That is much appreciated. Guy lets get back to manus cranny and carry on the conversation about what is happening with opec. Is the speculation can we now start to move in direction of the idea that opec is over . Is the arrangement between the russians and the cartel now run its course . Is an incredibly tense situation. How do you manage the message if ivak walks out and goes, no, am not agreeing to the extension of these cuts . What does ben salamon come out here what does bin salman come out here and say to us . You need to understand saudi arabia and their position in the region and the cartel. They want to own the message. Production can saudi arabia really tick themselves down to . What amount of time can you endure that for . I spoke this morning to paul mcnally. This, athe risk is spectacular policy misstep and implosion by the opec grouping. That, he said, could take five or six dollars off the price. Corona, policy, and a lack of cohesion, and you undercut any confidence in this opec alliance. That is the risk. It is so emilio rated, you run the risk it is so emilio that you run the risk of losing confidence all around. Vonnie why is russia willing to take that risk . Manus economic fundamentals and around 42 for the russians, they can still endure this level. It becomes a lot more tenuous sub 40. The two sides are coming to this from very Different Directions and sets of needs. This is about mohammed bin putin on saudi arabia and in moscow. This is about a geopolitical relationship with gives rush the preeminence they so want. That makes me wonder whether it really is all over. We really are whistling in the wind in terms of that. The biggest position is the 40 put option. Guy i just got an email from Annmarie Hordern come our colleague, and shes got an interesting point of view. Using the russians or some plea the price to drive lower to kill u. S. Shale . , in a word. Shale was rolling over according to four or five different analytic interviews i did. That would just be look, who am i . I am not an oil analyst. I would doubt very much that russia is causing the oil market to implode to crucify shale. Maybe im wrong. Maybe there is a greater political russian agenda here. Thats take that side. Shale, dump texas, give trump an additional pain going into the election, which is a credit crunch in the markets. Back to you. Vonnie thank you from vienna. Much appreciated. Now we want to move on to etf friday. James seyffart is here to talk about the etf landscape. Give us the big picture. James theres been an amendment of trading. We saw a record volume in dollar volume for all etfs. Highyield bond etf, traded at record volumes multiple days in a row last week. Massive outflows, but no issues, really. There werent many issues we saw with these type of etfs. The other thing we are seeing is that most of the moving going around is more from the institutional side. Retail seems to be buying. Vanguard took in a record amount of money last month and last week, more so than they have ever taken with etfs in history. Etfs were built for this type of situation. A lot of people try to say theres issues and concerns with the way they were built, but they were built on the back of the 1987 crash to handle things better than futures did at that time. Essentially, etfs are handling it very well. , 20 plus yeart treasuries, pimco zero bond etf, obviously gold. All of those things are taking in a lot of money right now. The flows, is hasnt been anything ridiculous aside from money going into those safe haven type etfs. Vonnie all right, james. It looks like we have to leave it there. Our thanks to James Seyfert with etf friday. An interesting week for etfs as well. Lets get back to those markets. We got payrolls that were better than expected come about as you pointed out earlier, its a little older data, so not exactly the focus of the markets this morning. You heard larry kudlow on a little earlier, saying that the administration is on it. There is funding now from congress, and they are going at targeted temporary measures should workers, for example, miss a paycheck or two. All groups in the s p 500 down 2 . The 10 year yield is at 74. 79. This is bloomberg. Live from new york, im vonnie quinn. Guy in london, im guy johnson. This is bloomberg markets. Lets turn our attention to the travel sector, the sector that has been hit very hard, one of Many Industries certainly being affected by the fears of the coronavirus. Certainly diverting people from flying, getting on cruises, and looking at their holiday vacations. Joining us is the world travel and Tourism Council president and ceo, Gloria Guevara manzano. Manzano. Good afternoon. How bad is it . Gloria it is pretty bad, especially for the panic and overreaction. Guy is it overreaction . Gloria travel is 10 of the world gdp, so when people start in countries where they dont even have one case, that is where we start seeing the issues. There are a lot of unknowns in this virus. We know that. But there are a lot of things that we know, and we need to base decisions on facts and data. As we say, do not overreact. Dont panic. Guy are you suggesting that people get on planes . Are you suggesting people get on cruises . Gloria yes. In mexicohe outbreak in 2001. We overreacted in some cases. There were some destinations we decided to shut out, and at the end of the day, we paid the price. What i am saying is yes, we have some countries with some issues, but not everywhere. I am going to take a flight tomorrow. Can i fly . Sure. What i am saying is we need to put it in context and not who can tellause you that 90 of the Economic Impact of the outbreaks is not related to the virus. It is related to the overreaction and the panic and the consequent this. And the consequences. Vonnie what about airlines who have lost about 1 4 of their market capitalization . Do you have any advice for those kind of industries . Frances absolutely gloria absolutely. Our advice is to try to postpone my try not to cancel. Listen to the experts. Listen to the who, basically sharing with us the experience they have. If it gets to the airlines, depending on the region and the i understand the Airlines Follow demand, and in many cases, they have some planes that unfortunately are not flying. We know we are going to weather this storm, and hopefully bounce back very soon when we can contain this spread. Long is the last big thing like this that you had to contend with, how long did it last for, and how long do you anticipate this will last for . What can the industry withstand . That is very good question. Represents the goebel travel sector. We analyze 11 different outbreaks in the last 20 years, and what i can tell you is recovery varies depending on a couple of factors. Depending on how well the crisis was managed, the measurements that were in place. For instance, we have some cases that the outbreak took 34 months to recover. Some cases, it took 10 months to recover. We also looked at the Economic Impact of sars, h1n1, zeke got, h1n1, zika, different outbreaks and crises around the world. In the last crises, we have recovered faster than the ones before, which is good news. But in a way also, we need to make sure we work together, that that public and private partnership is crucial for recovery because at the end of the day, the impact can be significant. Guy what do you need to see from governments . Do we need to see government aid , things being suspended at airports at the moment . Airlines are worried they are going to lose their slots at key airports like heathrow because they are not flying a lot of airplanes at the moment. But if they dont fly the airplanes, they lose the slots. What can government do now to help your industry . Gloria i think what we need to see from governments, first of all, they need to step up and work with the private sectors, work with the airlines, and understand how they can help us. Some countries can help with some measurements in terms of reliefs. S or how they can help depends on every country. We have seen some countries already stepping up, some countries overreact, and we have seen different responses around the world. What i can tell you is that partnership is crucial. Governments should work with the private sector and help us to weather this storm. Some governments are already reaching out to us and helping us, and are putting together a plan to bolster these prices, and at the same time, reduce the recovery from 10 months to perhaps less. In this case, the experts can tell you exactly what needs to wedone, but lets make sure make this Partnership Cities country because in every case, it is different. Leisure here in europe down by 26 . Thank you for stopping by to cs here at bloomberg, gloria world travel, the and Tourism Council president and ceo. Vonnie we are down 2. 3 right now on the s p 500. We have some individual stocks higher, but all of the industry groupings are lower. Friday in seven fridays lower the sixth friday in seven fridays lower. Larry kudlow says the council is on it, and reminded us that the g7 just had an important Conference Call. Crude oil is down big. Youre just seeing the equity indices there, and may be the 10 year yield come about across asset classes, the vix is at 45 right now, higher than we have seen all week. 1. 13ro trading at [laughter] 1. 1311. We will have more markets coverage next. This is bloomberg. Renita this is bloomberg markets. Coming up in the next hour, we will get Market Insight from chris watling, ceo of longview economics. This is bloomberg. Guy weve got some bricking news coming out of the Airline Sector some breaking news coming out of the Airline Sector. Lufthansa is going to reduce capacity by about 50 on the coronavirus. This is an industry that is clearly going to feel a lot of pain as a result of this. We are now seeing cases starting to crop up within the airlines. Weve got problems at heathrow. Inevitably, this is what is going to happen. These are travel hubs, obvious hotspots. In terms of the way this is going to be managed, i think it is going to be fascinating how governments and airlines work together. I was talking earlier on about the slot issue. You dont fly an airplane, you lose the slot. Lets get a sense more broadly about what is happening with these markets. We are joined by the head of our markets live blog team, mark cudmore. Give us a sense of what is happening. Actually, we will do that in just a moment. Vonnie just to jump in here, Abigail Doolittle has a complete look at the markets. Abigail another brutal day here for markets around the world. The s p 500 and the nasdaq down almost 2 . A bit of a bloodbath continuing. However, we are off the lows. Despite the big down days weve had, we did have two up days, up ever so slightly on the week. The stoxx 600 down 3. 4 . Brent crude one of the big stories today as that opec deal has collapsed, down 6. 6 , on the year come on pay for the worst year since 2015, when crude crashed. More remarkable is the rally for bonds and yields. Lets take a look at a chart of the 10 year yield. Who knew we could have the 10 year yield at 76 basis points . That is off the low, shedding about 40 basis points in the week, the most on record going back to 1963. Investors want into the safety of haven bonds, looking past everything else, going into the safety of haven bonds. As for what could be next for stocks, perhaps more selling. We had a bearish breakdown not just for the dow transports. The s p 500 breaking down, too. Overall, there is a nice uptrend. However, you can see in the recent selloff, someone talking about the possibility of a vshaped recovery out of this coronavirus tragedy. That would be accompanied by a v bottom. Yesterday, the dow transports going below the low, suggesting another decline of 10 to 20 . Something similar happening for the s p 500. Completely below the 200 day moving average, suggesting more pain is probably ahead for stocks, even if it is not in a Straight Line down. Perhaps on a choppy sideways path. Bringing it cross asset class, we have a big rally for some of the havens. On pace for its best year since 2017. The bloomberg dollar index well off its lows, down more sharply because theres not as much of a europe into the bloomer dollar index. 4. 4 a look at the vix, up percent. Overall, a truly remarkable week and a risk off tone. Guy absolutely, another truly remarkable week. Bloombergs mark cudmore sitting next to me. Give us a sense of what we are seeing this friday. Mark i think we are trading into crisis mode again. We are finally getting volatility back in fx. We are ignoring the fact that opec has collapsed and oil is dropping. People are trying to work out, is the u. S. Heading to recession . I would go into the camp that it probably is, but that is not going to be in the short term. Is there some kind of financial threat around the country . Is this a 2001 recession, or like 2008 with the financial crisis . It doesnt seem like a 2008 situation. I think it is more going to be an upanddown path of the next few months as people become slowly more aware that a recession is likely. Vonnie how much are equity markets taking their cues from the previous session, and how much will they be trading like this, even if investors knew nothing about the previous recession . Mark that previous context is very important. We are going to get use to get used to 1 , 2 intraday moves as being irrelevant. One of the fears is this neverending bull market with low volatility, and suddenly we are going to ignore the fact that the s p has jumped or fallen to percent in the space of a few minutes. Just from the time when i went to the studio from my desk, futures moved about 2 . In the context of where we have been in volatility, i dont the you can read too much into these moves. One of the things i will remind anyone less than their mid 30s is that bear markets see the most powerful rallies. You dont get sudden 10 rallies in bull markets. Guy lets talk about that. What would get the markets attention in terms of policy response . There was already abundant liquidity in the system. Yields are already superlow. Cutting rates doesnt solve a pandemic, and it is not really a liquidity problem. Guy what does the u. S. Government need to do to stabilize this situation . Mark i think a massive fiscal package. I think a coordinated fiscal stimulus around the globe would make a big difference. Bigger than the u. S. In terms of signaling would be germany doing it, potentially. That would be a big surprise for europe. It would emphasize that is a shortterm shock. The shortterm Circuit Breaker for markets is not a Circuit Breaker for the Economic Impact. Vonnie we did have larry kudlow say that the 8 billion by congress could be targeted, and could go to helping people that, say, miss out on a paycheck or two, and that the of is ready to do that. How long can the administration wait . Mark i dont think they can afford to wait much longer if they dont want to see the market get significantly worse. On the other hand, are they trying to prop up the market, solve the pandemic, or solve the economic problem . The economic problem is going to be much harder to solve. They are definitely not going to solve the pandemic that way. I think 8 billion is really irrelevant compared to the problem we are facing. Guy people talk about significant tax cuts coming through. At least, that would be a significant effect. Thank you. Lets talk about what is happening in the markets right now. Certainly, it is a whippy market out there. This is the picture in europe, justy circa 3. 5 averaging across those markets. Nevertheless, we are seeing big moves in equity markets, big moves in the crude market. Crude is being battered by what is happening in vienna. Moves in equityi think the signt difference between this week and last week, we are into the credit markets now. This is bloomberg. Guy from london, im guy johnson. Vonnie from new york, im vonnie quinn. This is bloomberg markets. This job reports, the bloomberg dollar index below 96. It did show the biggest increase in two years before the coronavirus threatened to unravel that strength. Bloombergs renita young has i recap and talk about which industry may get it first. Latest data does not reflect that the coronavirus is already leading americans to cut back on leisure and business travel, and air transportation may be one of the First Industries to see virus job losses. External shocks have hit the industry hard before. Air transportation payrolls climbed sharply after the september 11 attacks and the sars outbreak. According to the international airtran sport association, the coronavirus out rake could cost Global Airlines up to 113 billion in lost passenger revenue this year. Overall, airlines could see revenues dropped 19 from last year, i Financial Impact equivalent to with the Aviation Industry experienced during the Global Financial crisis. Airlines are trying to navigate the virus slump ticket discounts and route cancellations. Iatas director general says as governments look to stimulus measures, airlines will need reliefs on taxes and slot allocation to mitigate some of the losses. Take it there. Thank you very much. Let me just remind people that the vix is now at 44. We are seeing extremes in the market this friday. Lets get some context now with Gina Martin Adams intelligence. It is the sixth friday in seven that we are seeing such moves. Is it something to do with fridays, or was the market just not happy with the administration and monetary response this week . Gina i think we had a lot of intraday movements over the last couple of weeks, especially on riday, as investors were somewhat unwilling to take risk into the weekend. If you look at intraday friday of last week, what you did find is we made a low and then clawed back at the end of the day. I would look for something similar this week. Clearly, the market was willing to defend the 50 retracement of the rise from 2018 to 2019. Last week we saw 45 , which was extremely unusual. What you want to see a some kind of defense of major support levels. 2950 to 3000at also seems to be a place where the market is trying to find some degree of support. Guy given where bonds are, do stocks look cheap . Gina yeah, that has been the argument for 10 years, though. Stuff looks extraordinarily cheap. We spent the better part of the last 10 years trading at an equity risk premium somewhere between the 90th and 95th percentile in history. Once again, they are extremely cheap, and part because bond prices have rallied so very much. If you do get to a point where bond prices start to selloff, people start to get a little more optimistic about the comic about the economic outlook, that cheapness starts to go away. You keep the stock valuation discount alive. Vonnie people are talking about things like Circuit Breakers, talking about what might interrupt this bleeding, and there are so many more worries we cant so many more words we cant use on television to describe what is going on here. Thiscould be a sals to market could be a salve to this market . Gina i think the single strongest thing is the fed could start increasing the Balance Sheet again. We talked about this a lot earlier this week, when the fed made their 50 basis point into pointg cut basis intermeeting cut. I think it was the wrong lever pulled by the fed. I also dont think the fiscal packages necessarily strong enough. I would look at Balance Sheet movements. Vonnie gina, we are obviously session wild ride of a today and into next week. Gina martin adams of Bloomberg Intelligence joining us on the phone. Guy lets go to chicago. Time for futures in focus. Joining us is the Vice President of calamos investments. What is going on over there . A lot of volatility. You have seen it in the commodity markets. Crude markets after we saw that nonopec nations arent going to get on board, watching russia they sickly say we are not going to adhere to any further cuts, you see a lot of disjunctive, volatile action. That is what youre seeing across the board in every asset class. I will say, your previous guest is right. The velocity in the bond market has been something that has a lot of people on their toes, and it has been extremely active down here. Guy it is friday. People dont want to carry risk through the weekend. What happens monday . I think monday, you start to see how bad the virus is spreading in the United States. We will watch that very closely. I think you will see that equities havent really come off. At the end of the day, we are not seeing a pull down 10 like we saw in 2008. They trimmed a lot of fat from the per folio the portfolio. Now they are going to look for opportunities to hedge on any bounce, and then see how the virus spreads in the states. Guy are people worried about credit . Joe i think people are starting to get worried about credit, and they are going to want the fed to be a little bit more laser focused. Watch the bbb minus. You could see the credit markets come into question. Guy have a great weekend. Joe cusick joining us out of the cme. Vonnie we are going to have more markets next. We are off our lows for the s p now, the 1. 75 right nasdaq down 1. 7 . Crude oil a big mover today after opec walked away without a deal, according to a delegate. Wti down 7 . You could argue that is a separate kind of trade from the rest of what we are seeing today. The 10 year yield is at 76 basis points. The 10 year well off its high of the day. There is just money hand over fist going into bonds today. More next. This is bloomberg. Guy the friday fear. Bonds up big, especially long bonds. Keep an eye on what is happening there. There is some good news. U. S. Payrolls showed the economy going into the coronavirus with some strength and momentum, but that is in the Rearview Mirror now. The number of cases globally now north of 100,000. Crude also getting crushed as russia is set to oppose the saudi led plan to cut production. Plus, back down to back down to 2013 lows. We are counting you down to the european close on bloomberg markets. Vonnie this has not been the end of the week that the Federal Reserve would have expected, im very inclined to say, following tuesday mornings emergency 50 basis point rate decrease. You didnt hear Gina Martin Adams a few moments ago saying that may not have been the exact right response. We are s