Things will get worse than they are right now. It is 10 times more lethal than the seasonal flu. The flu has a mortality of 0. 1 . This has a mortality of 10 times that. Much dr. Fauci says how worse things become depend on the ability of u. S. Authorities to curtail the influx of travelers who may be bringing the disease into the country, and the ability of states and communities to contain local outbreaks in the united states. Italy has unveiled a 28 billion stimulus package to help the the coronavirus outbreak. Italy needs special permission from the European Union to spend more than allowed under the strict budget rules for member states. The country has more than 10,000 confirmed cases of coronavirus. More than 600 people have died in italy. Im Mark Crumpton with bloombergs first word news. Bloomberg World Headquarters in new york, im shery ahn. Amanda lang. m welcome to bloomberg markets. We are joined now by our audiences, and here are the top stories we are following from around the world. Market losses are accelerating as the World Health Organization declares covid19 a pandemic. Than p 500 now down more 4 . Stocks have erased yesterdays gains and are losing ground in 12 of the last 15 sessions. This amid concerns of around the Trump Administrations response to the novel coronavirus. The president has failed to deliver on his promise of a sweeping stimulus package to and crude outbreak, oil prices are extending their declines as saudi arabia and the United Arab Emirates pledge to boost output. We will have an opinion from harold hamm of continental resources. Thats still ahead. Shery lets get a quick check of the markets. Stocks are obsession lows, but the s p 500 and the doubt now down more than the dow down more than 4. 1 . Groups in the s p right now sinking more than 3 . Small caps leading the decline, 9 . The nasdaq down around 4 . 10 year yields down below that treasuries are rallying. We are seeing treasuries rallying, the japanese yen and volatility is soaring. Financial markets are being whipsawed this week, but we have seen a 20 basis point move in treasuries today. We have seen outside moves in energy names as well with the Oil Price Crash and amanda, all to do right now with the coronavirus outbreak. Its potential Economic Impact and what we could see on the fiscal side of things, and as we are waiting for clarity that President Trump promised, that there will be more coming. Amanda even as we hear from the government of canada, u. K. Fiscal measures, we await. What will be done to help businesses that face cash crunches. One number of that, the number of distressed issuers at the highest level since 2016, issuers, nowme 300 more than 1000 basis points over treasuries. You can see that huge jump. Some numbers will be in the energy group, with a highyield prices underde oil significant pressure, down 3 . Saudi arabia and the United Arab Emirates promising to keep ramping up supply. For more on the outlook of the sector, alix steel is with us with a special guest. Alix im joined by harold hamm, chairman of continental , and right in the epicenter of the selloff we have seen in oil prices. Great to see you. There are three prongs that i have heard that the government could be looking at. Buying oil for the Strategic Petroleum reserves, lowering royalty rates for companies, and low Interest Rate loans. What do you want the government to do . Harold there are a couple other things that they certainly could do. [inaudible] revisit the oil field, like you have done in the past. Everybody is aware that saudi arabia and russia had a dispute between them, and basically the with a directive from the Kingdoms Energy minister, have moved to essentially flood the market. It drove it down some 16 a barrel between fridays close and mondays opening. That is what started this. The only thing about that is basically that is illegal. They had express the intent expressed the intent to grab more market share, this is why they were doing this, and i just ,ame off a call with our board the Domestic Energy producers have beenand we cleared to begin an investigation of antidumping law. That, whatal to do theyve done, and certainly we are going to start that investigation. Basically, commerce would have 20 days to accept that and perhaps as soon as 60 days to rule on it. Of veryended a period low prices that they initiated, would not be good for the industry, would hurt service companies, suppliers, oil and gas companies, would hurt the entire industry, and that is what they would like to try to do, Something Like they tried in 2014 that works very well for them. To that point, if it is an antidumping situation, would you want the administration to track opec oil imports into the u. S. . Would that be most helpful . Guilty if they are found of dumping, as we now believe they are obviously are, there could be countervailing duty placed upon all of their imports to this country. Certainly, that would be a good measure that should be done. That is not the first time this it wasr been initiated, initiated in 1998, 1999, also by a group that basically sought to do the same thing, take market producers, and it did work out very good for them. Whoalmost say venezuela these days . It did not work out very well for them. Alix if that doesnt happen, if we take that off the table, with you, harold, be supportive of low interest loans to a producer . Do you want the government to help you survive during 30 prices . Harold lets back up and talk about the industry. There are so many good things that have happened in the last few years. Energy independence, national urity, the east,ensifying the middle all things brought from horizontal drilling. It would not be good if our country lost any of that. We certainly want to take preventative measures and all the things that you just mentioned, you went through the for, and we are not asking a handout. We want a level Playing Field and certainly do not want to be disadvantaged. These people are taking advantage of a pandemic, this to try and, pandemic wipe us out. That is what is going on. Alix it seems what may be difficult for some to digest is that the industry just outspent cash flow and has too much debt, and now the oil prices are rolling over. The problem is one cannot service the debt, especially when equity market keeps getting hit. The idea has been, why should the government bail you out . Alix we are harold we are not asking to be bailed out. Nobodys doing that. Pricing, nobody has extended too far today. Continental certainly isnt, most companies arent under normal conditions. These are not normal conditions, when you decide to flood the market to extend your market share. Basically, that is what is going on. That is the legal part. At one point you were very close with President Trump, when he was moving to be elected. Have you spoken to him about this, and what has been the reaction . Harold i have not spoken directly to the president. Weve certainly reached out to but i think the best thing is for the industry wheree action, that is the industry is going, and it can quickly happen. It is not something to be delayed a long time. It is going to happen very quickly. Alix in the meantime, what is continental doing in terms of their capex and trying to preserve cash flow . Harold weve told the market, weve got a budget, we just set that budget. Weve said we would adapt as necessary, all these prices somewhat fluctuate normally, but not to this extreme. We have told the market that we would adapt as necessary to remain a cash flow to remain cash flow positive, and we certainly intend to do that. Ratingarold, your credit is one stones throw away from junk, yields are quite high, equities have gotten hit. Is this time to take continental private . You know, we think our stock is a bargain for sure. A lot of people apparently too, we do think so and we want to run the company and make money for our shareholders. That is our intent. It has always been our purpose, and it is certainly what we are doing today. You, the last question for if you do not get the support you would like from the government, walk this out for me. What happens to your production and your rig count, the stock what do you do . Alix contin harold continental is very strong. We do not have any nearterm debt. We have a very strong cash flow, thebalance sheet is strong, production is very strong, the debt metrics are very good, so our company is in good shape to weather this, probably better than most. To move forward in a positive manner and we have support from the industry to do we are that is where headed. It is not up to the administration per se, we are by the commerce laws of the u. S. Alix harold, i appreciate you taking the time to talk to me. Thank you very much for taking that time, harold hamm, chairman of continental resources. Shery alix steel with that conversation, thank you very much as well. Lets get a quick check on the markets now. We continue to see downsides with the s p 500 near session lows, down at 4. 6 percent. Every sector falling more than 3 at the moment. We have seen the treasury rally continue, but we saw around a 20 basis point move at one point. The 10 year at. 8 . The dollar index unchanged at the moment, but watch the dollaryen cross, because that has been volatile. The japanese yen moving higher on haven moves. Crude oil down 3 , that has been another market that has been worse throughout the week. Plenty more to come. This is bloomberg. Traditional Monetary Policy has to go to zero, has to do qe, and everyone is going to do it. Carneyplaud what mark did. I applaud the instincts behind christine lagarde, but ultimately this is about people being sick. You need massive, not kind of, massive monetary and fiscal stimulus. Concerns around the economic followed from covid19 have pushed global Central Banks into action, but is it enough . Our guest,discuss, billion ins 44 assets. We did see the ecb go even further than the fed in terms of what it is able and willing to do. Gaugek to the ecb now just how much and how far this has gone, and is it enough to reassure . Far it has not been enough to reassure markets, and i do not think it will be for quite some time. The reality is we are in uncharted territories, and this is both a potential supply and demand shock, and it is Monetary Policy alone to reassure markets. We have seen the temporary sugar highs of monetary stimulus, but we have much further to go for it to be truly effective in supporting the underlying economies. Amanda in terms of what we need to hear fiscally, that is the next shoe to drop. One of the problems, jeff, is that fiscal solutions, after what we know the damage is, but what can be preemptive . What are you hoping to hear from the government . Anything that gives confidence to the people that are ultimately very uncertain, right . There have been talks of tax stimulus, of delaying income taxes for a while and other supportive measures, having covid testing being free for instance. At is difficult to do in the environment, given the uncertainties, but anything we can pass along to the bright spot of the global economy, the u. S. Consumer and consumers broadly, we could potentially go a long way. All of those stimulus measures seem difficult to pass, especially during a politically divided time. Is it hoping for too much at the moment when we saw the rally yesterday . What was going on there . Confused as well. Exactly. The markets have for quite some time, and we have discussed this for quite some time, believe that the central bank and even Fiscal Authority could come to the markets rescue and they would. There has always been a potential for these exogenous shocks, and we are seeing them. The markets reaction yesterday in the positive was that theseastic things would be truly effective at supporting the underlying economies. I am not surprised to see that pullback today. We will continue to see fear and panic ripped through the markets answers,e to wait for and those are some time away. Shery if we are expecting a slowdown in confidence and Consumer Spending in this environment, we have seen value stocks underperforming growth stocks. Does this make sense, given that in this environment potentially, those cashrich Growth Companies would have a better chance of ceiling their own fate . Jeff it depends on how long this goes on. We have to keep in mind, the valuation gap we had going in. The toughest part for the markets to digest, we went into this with very overinflated levels of confidence across all risk assets. That just didnt feel right. Theres always these black swan events, whether it be the knowns, like the u. S. Political situation, or the unknowns, like the virus for russiasaudi. Rabia challenges we would eventually will find a base, but we will eventually have to find answers before the market begins to recover. Amanda when you do look to recovery, where will you look for it, jeff . Will it be company specific, or sectors getting swept up. Tha swept up here that n eednt . Jeff people are excited on the Trading Floor today because there are things to do. There is new information to slowly digest. In some of the portfolios, we went into this very defensively. Is aimes the best offense great defense, and that is what we are finding. We will find out if it is a baby thrown out with the bathwater type situation. Great quality, Free Cash Flow companies that the market has chosen to sell, perhaps to raise liquidity or the defense profile those are things we are buying now. It is too early to say what the next industry and next great opportunity will be. As active managers, we are always on the lookout. , thankjeff klingelhofer you very much. Lets get you another check of the markets. The s p 500 is right now near session lows while the russell 2000 is that the lowest level since december 2018. Surging, up yen almost 1 , and the dollaryen index has been pretty volatile in this environment of a lot of uncertainty. We are hearing from delta as well, that they are going to cut bywide capacity i 15 . Their flights to china will be suspended through may 31. U. S. Capacity cut by 10 to 50 , transpacific at 55 as we see from airlinernings associations, that the industry could lose billions of dollars in revenue this year. This is bloomberg. Amanda this is bloomberg markets. Im amanda lang in toronto. And im shery ahn in new york. U. S. Treasury secretary Steven Mnuchin says he hopes to provide 200 billion or more in liquidity by delaying tax payments. This as the Trump Administration mulls extending the tax filing deadline to be on april 15 to provide Economic Relief on the coronavirus outbreak. The Washington Post is reporting that the president might give a noble Office Address tonight. Lets go to our Bloomberg Tax reporting, joining us in washington. Nowhere near what was promised in terms of major substantial of what isures, but being proposed by Steven Mnuchin, how would that help . They would help some, particularly for businesses facing cash flow issues. This gives them a couple months, we do not know where the extended deadline would be, but a next her time to pay their tax bills, which would be helpful, particularly if they do not know what the business might look like in the next several months if people are not dining out, staying home, essentially social distancing. Amanda really quickly, how soon do we need to hear something, laura . Delay is not good here. Laura it is unclear how quickly they are going to move. It does not require congress, so they could do something quickly, and it has the support of and republicans. We are a bit over a month away from the end of the tax filing deadline, but it could help tax filing preparers know what to expect. Amanda laura davidson, thank to have you with us. From toronto and new york, this is bloomberg. Mark i am Mark Crumpton with first word news. Harvey weinstein was sentenced to 23 years in prison for Sexual Assault after decades of using his immense power in hollywood to target aspiring actresses. The sentence, the maximum audible term, drew gasps in the Lower Manhattan program and prompted the two victims of the center of the case to embrace and burst into tears. Weinstein had finished a rambling speech seeking mercy, comparing his prosecution to the mccarthy era, when Supreme CourtJustice James burke announced his sentence. Outside the courthouse, weinsteins attorney called the sentence obscene and obnoxious. That number spoke to the pressure of movements and the public. That number did not speak to the evidence that came out at trial. That number did not speak to the testimony that we heard. That number did not speak to evidence, nor did it speak to justice. I am overcome with anger at that number. I think that number is a cowardly number to give. I t