Had any symptoms himself, and his wife is now feeling better. An emergencyg for 5 billion loan from the International Monetary fund to help fight the spread of the coronavirus. Its the first time iran has asked for the imf help since the 1960s. Reported cases in iran soared by more than 1000 in the last 24 hours. Now topping 10,000. More than 400 people have died, including several top iranian officials. Global news 24 hours a day, onair, and on quicktake by bloomberg, powered by more than 2700 journalists and analysts in over 120 countries. Im Mark Crumpton. This is bloomberg. Live from bloomberg World Headquarters in new york, im shery ahn. Amanda live in toronto, im amanda lang. Welcome to bloomberg markets. We are joined by our bloomberg and Bnn Bloomberg audiences. Here are the top stories we are following from around the world. Equity markets plummet. The stoxx 600 recording its worst day on record, plunging more than 11 . In the u. S. , the s p 500 plunging more than 8 at its lows, triggering a Circuit Breaker for the second time in a week. Reserve nowral stepping in, injecting massive amounts of liquidity. To thes adding optimism market, the stock bouncing off the lows but struggling to maintain momentum. Amanda just checking in on those major averages, as you note, it is the intraday move that will be the story of the day. Veryw markets tracking steep declines, including here in toronto, one of the steepest on record, close to the 1987 declines. We are off the lows of the session as we heard from the new york fed. Among the hardest hit groups, energy, financials. Are stille and tech leadership, but still underwater, even as we see the markets move a little bit mor lr once again. Shery lets get more insight on the market moves tied to the feds repo announcement. Lets bring in michael mckee. Feds aggressive measures, and then we saw a pop in the markets. But it did not last long. Mike you saw a pair losses. It wasnt so much a question of where prices are but the fact that operations were not moving smoothly. What the fed is doing is stepping into the essentially a buyer of last resort. Its been difficult to sell treasuries, particularly off the run treasuries, some of the longer maturities. The started to gum up overall Financial System. The fed is stepping in with its treasury securities across the Treasury Curve and then offering these 1. 5 trillion in repose. It points to the fact that as much as the markets would like reassurance, action by Central Banks on the fiscal side from government, you need to see the problem before you can offer a solution. Are there other places where we are starting to see liquidity issues, places where you could say there is a policy solution that could be applied here . Important to separate the idea of stimulate ,he economy through rate cuts and this aspect of it, which is keeping the Financial System operating. The fed, in this case, had a clear picture of what was going on. The treasury desk is surveying members, traders over the last 24 hours. There were a lot of reports of problems just transacting. That is the feds job, to keep it running. The question of what you do about the economy, demand issues, that may be rate cuts could solve, is something for another day. Shery how much funding stress are we seeing out there . It looks like the markets are trying to get liquidity somewhere. Mike that has been the problem. We dont know all the causes, but a lot of people say it is in part because of the doddfrank regulations. Banks have filled up their Balance Sheets with treasuries, they dont want to take on anymore because it changes their Capital Requirement structure. So when people come to market and try to sell something and there has been a lot of selling of people try to raise cash they dont find any buyers, so the spreads widen out, the market slows to a crawl. That is what the fed is trying to address. Amanda one of the questions that keeps surfacing is how much we can compare this to 2008. So many differences including the health of Balance Sheets, the underlying structural systems. Would you say, as much as you can say it, that this is a healthy market . Has been. Ar it the problems we have seen in the treasury market over the last 48 hours are not really like we like what we saw in 2008. There were questions about bank Balance Sheets, the idea that people were pulling credit away, and that banks could not fund themselves. Not a question of not being india fund yourself but there are probably some hedge funds or investors that have liquidity issues that this will help. We are not looking at a broad, Financial Systemic problem as we did in 2008. We are looking at a couple of asset markets in fixed income that had trouble trading. That is why the fed will be able to address this reasonably well. Shery michael mckee, thank you for the latest on the markets and the fed. Coronavirus fears weighing on the markets, as you can see, as well as governments and global organizations. Advising Member States to postpone or cancel more than 100 planned events in new york. The upgrade tos cause the Global Economy up to 2 trillion this year. Joining us now for more is elliot harris. He is also the u. N. Chief economist. Great to have you with us. If things stay as they are or worsen, could we see that doomsday scenario of 2 trillion hit to the economy . Elliott i suppose that scenario is possible. Thewe have to count on effectiveness of the measures that governments have put in place to limit the spread of the virus and continue to hope that we have a temporary phenomenon, something not some thing that will last months and months. If we can bring a halt to the virus in the next few weeks, we can avoid that. It will still be a hit to the Global Economy, but hopefully with a supporting measures in place, we will be able to recover relatively quickly. Here in the u. S. , with this outbreak is doing is highlighting the divide we have seen between workers who can now potentially afford paid sick leave, and those who cannot. What is the risk of this outbreak, this pandemic actually exacerbating the wealth and inequality gap . Theot that is exactly problem we have to guard against. There will be vulnerable groups that will be particularly exposed and have less of an opportunity to fall back on reserves, savings, or on the provisions of their job. They may not have Adequate Health insurance, paid sick leave. Those types of conditions are exactly what the government needs to support. People are not thrown into poverty or thrown completely out of labor markets, or otherwise disadvantaged for the long term. Then they can recover within a reasonable period of time after the crisis. What is really important now is these measures put in place support those that are most likely to suffer, so that the widening divide between the haves and havenots does not get too much worse. Amanda we should note, some breaking news that the u. K. Now says it expects the peak of coronavirus to be in 10 to 14 weeks. We also hear additional measures being taken in terms of containment. The nhl will be suspending. Regionally baseball similarly. The consequences of this it will highlight pretty quickly in even wealthy nations those that have care and those without, and the strains on our system. Already, anybody who is an economically vulnerable already, but also nations that dont have access to health care, how long could this problem before countries that are more vulnerable . Elliot the biggest challenge for these countries is to avoid having their Health Systems overstretched. In many cases, we simply do not have the infrastructure to do with major amounts of infections , or with the health care that over aprilquired 2 of time. The International Community can certainly help. There is a lot of accumulated wisdom that can be put into countries who are dealing with this epidemic for the first time. But this highlights the need for international cooperation, to strengthen assistance, so we can ander deal with unexpected deep reaching crises of this nature in the future. It is better to fix the roof while the sun is shining. Unfortunately, we are in some rain right now. Shery how can the outbreak also change the way that economies function . We have seen more companies trying to automate their jobs. We see more of this phenomenon, digitalization. Elliot that is a trend that would have continued even without the virus. The virus has now exacerbated it. It allows us to see the opportunity to work in a different way. We are forced to do it now because we have to reduce the exposure. Digitalization and Remote Working becoming much more prominent features of the economy. Will that affect the way the jobs are defined . Yes. Does that mean that we are going to lose jobs . Not necessarily. We can we organize the work that we do online, the work that we can do remotely, but the fundamental Employment Situation will only change gradually over time. Of course, that will happen with technology in any event. It is just that this may be an accelerating factor. To leave iteed there. We appreciate your time, sir. Elliot harris is United Nations assistant secretarygeneral. Quick check on the markets, we are seeing on an intraday basis the game that had been granted things to the new york fed saying that it would spend 5 billion in the repo market, losing ground. Heading back to the lows of the session. For the canadian market, that maybe the worst decline we have seen on record. This is bloomberg. Shery this is bloomberg markets. Im shery ahn in new york. Amanda im amanda lang in toronto. Than 200 coronavirus cases confirmed in new york state, the government is taking postponing theng new york city st. Patricks day parade for the first time ever. We are joined by new york council city member new york city Councilmember Mark levine. We are seeing these dramatic steps being taken, starting to nba, nhl making decisions that get in front of the problem. I want to ask about the thinking of getting in front of it, asking people to take steps that may seem premature, but when you understand how these unfold, may not be. We can either act now in reasonable ways, or we will before to take even more jacobian measures down the line. We need to be acting to limit large public gatherings and limit any nonessential events. That is happening now organically as organizers are making that decision on their own, but the government needs to step up and put mandates in. I believe that will be happening in rapid order here in new york city. We have to act quickly before this gets even more out of control. Amanda the natural resistance is that we also dont want to cause economic damage, or more necessary. If we knew how long this would be, it would be different. But telling people not to take the subway or even staying home and because their businesses economically, are we there . . Is there push back on that, or istime to do what it takes mark every one of these decisions has to be balanced, economically and cost and help. But we must stem the pace at which this disease is gathering steam. We can do that by social distancing. We may not be ready to shut down the subways, but we are on the edge of major, aggressive steps to help people shelter at home, to telecommute, to avoid large social gatherings, and to generally limit discretionary activities that would expose them to large crowds. Shery when will schools be closed . That is a very weighty decision because of the impact on parents, child care, kids who rely on schools for food and nursing services. I dont believe that is imminent, but it is on the table. Shery the president was not too sure what would happen to those copayments on treatments for coronavirus. How will we protect the most honorable in the city . Mark it would be outrageous if anyone was denied treatment in the midst of this epidemic based on the inability to pay. We have to provide the service to everyone. It is an epidemic. If any segment of the population goes without medical services, we all suffer. Amanda how quickly can you move that . Ngs like obviously important ideals but not all at the city level. You may need the state and the feds to step up. How coordinated are the levels of government here . Mark we have a Public Hospital system in new york city which is larger than many around the country. Ultimately, we will be relying on the federal government. We will need an injection of resources or Health Care Provision to compensate for lost wages, to shore up small business. This is not just going to be a Public Health shock but an economic shock for new york city and the aunt. Shery what are you seeing in terms of testing . We continue to hear conflicting reports. Says that there is a surplus, others say that is not true. There is conflicting guidance coming from medical providers about who should be asted, there is still shortage of capacity, despite what we hear from washington. That needs to be ramped up immediately. I also want to make it clear, everyone who feels a little bit ill or is worried they came into contact with someone who has this virus should not be tested. That will overwhelm the medical system. We need to reserve Testing Capacity and medical capacity for the people who are truly sick. Others can shelter at home, self heal and seek Emergency Care if needed, but we are going to start to have to prioritize who can get service from our medical system. Amanda how long do you expect us to go on . The you have any Council Level estimates . Healthhe citys commissioner is estimating a tapering off by september. This depends on so many unknown factors, the impact of the seasonal change, and how much we can flatten the curve. Are we facing a short, intense spike, or through this kind of social distancing, can be spread of this epidemic over time. That is preferred because it gives the Health Care System the room to deal with the influx of cases over time. But this is unlikely going to pass in a matter of days or weeks. I think we need to prepare for the long haul. Shery mark levine, thank you for your time. New York City Council member on the latest new york city measures to do with the outbreak. We continue to see downside pressure. The s p 500 falling 6. 6 . A bounce backf after the feds repo announcement, but that has not been sustained. Even gold, which usually acts as a safe haven, is down 2. 5 . Gold down for a third session. People just trying to get liquidity somewhere. Crude also down 5 , falling toward that 30 a barrel level. We are heading for the biggest weekly decline since the financial crisis. This is bloomberg. Amanda this is bloomberg markets. Im amanda lang in toronto. Shery im shery ahn in new york. Mode. Markets in somewhat credit fears hitting crisis levels after steps taken by the ecb and President Trump failed to ease investor concerns. Joining us for more Market Analysis is claire boston and chief equity strategist gina martin adams. Let me start with you, claire. Are we seeing a meltdown in the credit markets . Claire it is not getting any better in the credit markets. Wethe Investment Grade side are seeing the worst day for cx since 2011. High yield is not much better, the ugliest since 2012. Investors seem to be pretty concerned, not sure where the bottom is. We are still seeing particularly energy, travel credit, anything exposed to the virus, taking a hit e. Amanda as we watch this downdraft across the board, feels like there is a lot of momentum. For every seller there is a buyer. Do we have a sense of who the players are in the market that are buying in these sessions . Of buy, to whole lot be honest, considering the meltdown we had over the week. I will say some of the themes that were working prior to the meltdown are still working in the markets. To the extent investors are putting money back into equities, they are putting them into safety trades, especially companies with the most stable and profitable margin signal. Companies that have persistence in their price trends. They are looking for safety, which is indicative of the current climate. Usually if you are in the process of forming a bottom, you volatile stocks, less profitable stocks, more valueoriented stocks take leadership. We have not seen that at all. Investors are certainly reflecting the absolute meltdown we have had an equity prices in the last three weeks in these strategies. To the extent that they are putting any money into the market right now. The secular bull trend munging tested right now . At 24. 80are currently we have not gotten to that level just yet. We have broken through major resistance lines all the way through, so it is difficult to say how far we go. The technicals of the market are absolutely abysmal. We cannot seem to find any level of support. If you draw a longterm secular bull trend line combining the bottoms, that gives you to about 24. 80 on the index. We have not fallen to test that level yet. Amanda what else should we be watching . We saw there was a need in the repo to do something. Some are calling this a return to qe. What other parts of the credit market may need attention . Claire we are spending time looking at junk bonds in particular. Outflows are expected to be 5 billion, a top five to 10 of all time in terms of outflows. A lot of questions about etfs and liquidity, are they going to be able to meet those daily redemptions . Right now, trading is looking a little bit iffy. Trades are still getting done but Bond Market Liquidity could be better. We have to leave it there, claire boston, gina martin adams. Thanks to you both. Of course, you can catch all of our interviews on the bloomberg with the function tv. This as we continue to see pressure on the markets. The s p 500 and the dow falling more than 6 . The dow falling 7. 4 . Of course, this as we continue to see the fed trying to carry out more operations to ease the funding stress. Plenty more to come. This is bloomberg. Good morning oh no, here comes the neighbor probably to brag about how amazing his Xfinity Customer Service is. Im mike, im so busy. Good thing xfinity has twohour appointment windows. They have night and weekend appointments too. Hes here. Bill . Karolyn . Nope no, just a couple of rocks. Download the my account app to manage your appointments making todays Xfinity Customer Service simple, easy, awesome. Ill pass. Wthats why xfinity hasu made taking your internetself. And tv with you a breeze. Really . Yup. You can transfer your Service Online in about a minute. You can do that . Yeah. And with twohour Service Appointment windows, its all on your schedule. Awesome. So while moving may still come with its share of headaches. No kidding. Were doing all we can to make moving simple, easy, awesome. Go to xfinity. Com moving to get started. Mark im Mark Crumpton with bloombergs first word news. Of widespread testing for the coronavirus is a failing of the u. S. Public health system. That from the governments top Infectious Disease scientist. The director of the National Institute for allergy and Infectious Diseases told a House Committee the u. S. System is not set up to facilitate rapid distribution of testing for disease a disease that has not been previously encountered. He did have good news. He said the first human test of the Coronavirus Vaccine could weeks. N a few a new study is adjusting that coronavirus patients could be contagious for weeks. Doctors in china have been testing respiratory samples of virus patients. The medical journal says they have found that the pathogen can stay in a persons body for as long as 37 days. Currently, the recommended isolation period after exposure is 14 days to avoid spreading the virus. Across europe, american travelers are worried about getting flights home before the travel ban takes effect. But while lines are expected to grow ahead of fridays deadline, for
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