High of the day. Futures were limit up. Westart the session started the session up more than 5 at one point. Only a few days ago, we were wowed when the tenure went through 1 . It is hoping to hold know that it is approaching 1 again. The dollar stronger today. Below 107 on the yen, 106. 94. We will be speaking with john taylor of Stanford University in just a moment. Guy this doesnt even feel like a dead cat. It feels like a dead kitten. The equity markets are bouncing, but not much. Europe is off its session highs. Relative to4 , but the biggest move ever to the downside yesterday, that doesnt feel that impressive. Trading at 307. A lot of action in the german 30 year. You are seeing bid offers tightening up a little bit. Thats good. Liquidity may be starting to come back. That was certainly a focus for the fed yesterday. What is interesting as well, the bdp market is on offer again. We started to see yields coming back down again after yesterdays christine lagardeinduced move. That move has now faded. We are four basis points higher on btps. Vonnie lets get to our first guest now. Global Central Banks taking action to confront the Economic Impact of the coronavirus. No better person to talk to then john taylor, Stanford University professor of economics, Hoover Institute senior fellow, and of course, author of the taylor rule. He joins us from palo alto, california. Im curious as to how you summarize the last couple of weeks in the markets. Weve had huge moves, and none of it came from what we expected dislocation to come from, trade stepsations or differing around the world on isolation versus globalization. In fact, it came from the shock from the coronavirus. What say you . John theres tremendous uncertainty about that still here. We are figuring out whether it is going to be a big hump or flattening off because of mitigation and containment. I think that is what you are seeing. Volatility is there because there is uncertainty, and the sooner that is resolved, the better. When you say the u. S. Should look at other countries, what exactly do you mean . What countries, and what mix of fiscal policy would be appropriate here . John i do want to make sure the Health Policy is on track because it is a health issue, so dont forget that. On the fiscal side, the first thing is dont forget that these temporary things are often disappointing. We found that in the financial crisis after 9 11. If there can be some way to say whatever we are doing is more permanent, a more lasting thing, why not just have some statements out there that theres no tax increases coming . It should be something that both parties get together in the u. S. And say this is what we need to do longterm to keep the economy strong, and we are going to do that. Guy should the fed cut rates to zero . Should beink the fed very careful at this point. Yesterday, they intervened in the markets not for Monetary Policy, to stabilize the markets in a very extreme situation. Going forward, when they are close to zero, they need to say where they are going next. Are they going to do one of these Forward Guidance things so we will stay lower for longer, depending on how long we are near the zero bound . Becausethats important theres a lot of uncertainty about whats next. There was uncertainty yesterday about what the fed was doing and the longer ins of the maturities spectrum. Now to clarify what happens when they get even closer to zero than they are now i think is very important. Guy are you expecting more qe . Real ll, theres a theres already a little more in the announcement yesterday at the different end of the maturities spectrum. The results on that are quite mixed. Weve had lots of research on it. I would prefer if they stipulated what they plan to do with Monetary Policy more generally, and that is where they are going with the Interest Rate. And dont forget quantities in general are important, too. It is important to mention this andn international system, a lot of exchangerate issues are important. The feds actions compared to the ecb and other countries rates affects the economy as well. Vonnie i am going to ask you again what countries you mean when you say the fed should look to other countries for guidance. Qe also, youve been against obviously for many years. Do you think it is appropriate to have stimulus often . Is this a time when you are standing by those positions . Is it important to have stimulus right now . John what is always appropriate to Financial Institutions that have difficulty. The question is, are these broad, largescale asset thatases, and whether makes much difference. There are questions on that outside the Central Banks. When i say look at other countries, it is more on the health care possibly. We possibly have a big hump, and we flattened that through mitigation and containment. There is a difference of behavior in china and japan, let alone singapore and hong kong. I think theres important lessons for the Health Care Authorities to look at, and what about social distancing . How do you encourage people to do that . Vonnie absolutely, and we are very focused on that, but again, that theting up president tweeting out that the fed is doing physiological damage. Im curious what the administration can do to protect us from other kinds of damage that are going to come from this. Treasury secretary mnuchin saying there will be a broad bipartisan consensus on something, but would you be for a payroll tax holiday through the end of the year, which we know this administration wants . John i would be for something which the republicans and democrats agree on, and the move ahead. It is very difficult. One thing i have said before, why not just say no tax increases for the foreseeable future . That would be quite a statement. That would move the markets and move the economy in a healthy direction. In terms of finding a more temporary thing, i am not sure where they are going to go. Theres quite a bit of disagreements. In terms of commentary on the fed, here it is very difficult. Theres differences of opinion about the fed. I think most important is for the fed to clarify as much as possible what it is doing with the purchases, what it is doing with Interest Rate policy, and why it is doing it. I think that would be constructive at this point in time. Whether theres a rule, whether there is a strategy, whether they are deviating from of the strategies are would be important. Guy do you think damage has been done between the white house and the fed that would make what the u. K. Delivered in terms of a fiscal and Monetary Policy push that was done together, do you think that is possible in washington between the fed and the white house . John i dont think so. I think the fed has a sense of what they need to do. Theyve had much commentary from the white house and from others for over a year at this point. So yes, theres possible effects and uncertainty, but more is toant than ever clarify what the strategy is. When theres debate coming from different quarters from different reason from different quarters for different reasons, theres no better time for clarity. Vonnie staying with us is john taylor, Stanford University professor of economics, hoover , andtute senior fellow author of enduring policy lessons from the 1970s and 1980s. We want to get now to a market check. Lets have a quick look at where the indices are. We were up 5 at the beginning of the session. We are now up 3. 3 on the dow, the s p up 3. 7 . Clearly, the Michigan Consumer sentiment data not denting this rally. In terms of what we are seeing groups wise, we have less than half a dozen stocks lower right now. Those are some of those that had been rally in, such as 3m. More next. This is bloomberg. Guy from london, im guy johnson. Vonnie from new york, im vonnie quinn. This is bloomberg markets. Guy lets get back to our conversation with Professor John taylor, joining us from Stanford University. Can the u. S. Economy avoid a recession this year . John i think it is hard now because theres a lot of things pulling the economy. The transportation sector, leisure sector. I think theres a chance you will see rebound in other areas, but we havent seen the , the economy is strong. But it looks like theres going to be this hump in cases, and if mitigation and containment can flatten that out, whatever the effect is will be much more mild. Guy risk assets have been supported time and time again by the fed put. Does that fed put still exist . John i think basically, you can see the interventions in the market last week, the market just went the other direction. Theres many other things affecting the markets. Rates are quite low. I think the impact is smaller. I think the more important thing is the fed indicate where it is going to provide more certainty. Weve got so much uncertainty out there. There was a bit of a surprise yesterday with the intervention. People didnt know how large it was going to be. It was insurprised maturities which were longer. So explaining what is going on there would be good. That would be the most important thing for me at this point, rather than thinking about some kind of fed put. Vonnie how would the fed do that . Do you mean Forward Guidance . Do you mean at the News Conference next week, for example . Should there be something of a la what philipa lane did for the ecb today, writing a blog post for his website . John the fed has different ways to communicate. Sometimes it is what they say the new york desk should do, but i think the natural place is something in the statement, something in the press conference. What it is is pretty simple. Weve been researching this for years. When the rate gets zero or close to zero, state that it will remain low for a longer period depending on what happens to the economy. That provides some certainty about how long the rate will be near zero. I dont think the fed has any intention of going below zero at this point. That could change if they need an alternative. Theres been research on it. They did different aspects of that already. Theres indications that it works as well. Vonnie are you saying that the fed cant rely on data dependency anymore, or that phrase . Of timeld a period until necessary, would that even mean to markets . John data dependency has always been important. I think the people at the fed recognize that. The problem is, how do you describe it . Do you say we are going to have the right extra low, depending how long the serious this the seriousness of this lasts . A lot of this is health related. We want to take this hump and flatten it out through mitigation. And dont forget fiscal policy. Stabilizersmatic that have been very important. Taxes automatically come down, receipts come down in bad times. That is somewhat stabilizing the economy. That is still there. It hasnt been diminished. Some commentary on that, which has been almost zero at this point, would be very important to put into the discussion. Guy you keep bringing up the issue of what is happening on the health side of the equation. There is a debate in the United States at the moment about universal health care. Do you think if the u. S. Had universal health care right now, it would be more capable of dealing with the virus that it is currently experiencing . And therefore, from an economic point of view, potentially might suffer less . John i dont think thats the evidence we have. This questions about whether the testing has been fast enough. We have seen other countries get behind the curve, so you dont know how would people are infected. It seems to me that is what the focus should be at this point. How much social distancing is really needed . How much traveling can you do . How much is safe . How any conferences should be postponed . We are doing lots of conference cancellations at this point. Occur . G should that those are the kinds of things. You can learn from other countries. Japan has gone through this already. China has looked like they have passed the peak. Look what they did after the worst of it, and catch up. Thats with the most important thing is to do right now. Guy coordination on a number of different factors seems important right now. The health care side of things clearly needs to be coordinated. Europe was very surprised when the president announced that travel ban. When it comes to Monetary Policy, either there doesnt seem to be much coordination yet , and also on the fiscal front as well. Does there need to become more coordination at this point . Are you disappointed that is not happening . John what i am most disappointed about is the communications about this. In other words, what was the purpose of the move yesterday at the fed . The decision at the ecb, people were surprised there wasnt a rate reduction. On the other hand, theres lots of evidence a rate reduction would not do much difference. So the coordination is really describing dearly what is going on in conversations in basel or other places. Theres much that can be done on this to give confidence to the markets that the policy in place is working, we are on top of it. In terms of specific coordination, i think we have seen episodes where the timing can be bad. I think it is mainly just describing what you are doing so each central bank knows what the fed is up to, knows what the boj or the ecb is up to, and the markets understand what they are up to. Its hard, but they can do that i think in a better way than they have so far. Vonnie professor, we have to leave it there, but our thanks to you. That is john taylor, stanford professor of economics, Hoover Institute senior fellow. If youve got a bloomberg terminal, check out the function tv. You can watch all of the interviews we are doing and the live events we are monitoring. Click on charts, interact with us directly. Function tv wraps it all up. Quick look at the markets right now. Decent volume coming through in yen trading. The ftse bim is up the ftse mib is up. We are moving higher on yields. Big move yesterday on christine lagarde. In madrid markets, where we have seen a lot of action today, up 6 . Generally, we are fading earlier highs. The market is starting to move away from those highs. Is this a convincing bounce after yesterdays destruction . This is bloomberg. Vonnie some breaking news out of the fed. The new york fed will today buy treasuries up to 30 years. Explained in a statement just a few months ago a few moments ago on its website that it will buy treasury securities up to 30 years, and is expanding purchases. Other Central Banks joining the fed in pumping liquidity into markets. Yesterday, we got the statement that we would see shortterm refinancing. Now we are seeing even more expansion of treasury purchases. Lets talk about what is happening in etf land. This friday. Bonds are highlighting stress in it deepmarkets, trading discounts. At the Natsios Sarah Fay guess that shot nausea sarah fay guess psarofagis is here to tell us more. It was a really rough day for fixed income. Theres the price of the etf and the underlying basket. What you end up having is everyone trading the etfs, it tends to move ahead of what the actual basket is trading. You end up seeing these big discounts in some of these products. That is not necessarily a bad thing. It just optically looks bad, but it is really just meaning they are not able to source liquidity , which just means that is moving ahead of what the underlying market is doing. I think in a time like this, the etf comes a vehicle that youre turning to her more realtime pricing. That being the net asset value. Just been clear. Vonnie is there any area under severe stress . Athanasios if you lay it out on the spectrum, only a few etfs are trading at extreme discounts. Most of those areas are highyield municipal bonds. That market just tends to be a little more fragmented. It is a little harder to trade. About 40 of the market traded anywhere from a 1 to 2 discount. Given how aggressive the selling was yesterday, that is actually a pretty good step. Guy how are etfs performing versus, say, mutual funds . Athanasios if a Mutual Fund Investor has to redeem, they are faced with the same situation. Which is to say a fund manager has to sell bonds. Hes likely going to be selling the liquid bonds. Where that could become an issue is the shareholders remaining are going to be stuck with some illiquid bonds down the road. Etfs, the experience of getting out of you. Is unique to you might not like the price or it might be a bit of a discount, but at least you are not impacted by the actions of any other shareholders like you would be. Guy whether or not you get your orders filled at the price you are looking for, thats a different matter. We will leave it there. Up . What have we got coming vonnie just want to check a few assets because its an interesting move today. We are seeing small reversals and some of the Asset Classes that we have been following all week. 4. 5 , having a bit of an impact on the commodity currencies. The Canadian Dollar has been weakening all week, quite substantially, but seeing the little strengthening today. I wanted to point to the offshore yuan as well, trading at 7. 01. Gold futures back well below 1600 an ounce now. This is bloomberg. Guy breaking news out of spain. The Prime Minister is currently addressing the nation, and is announcing that as of tomorrow, there will be a state of emergency effectively. We are seeing that going to start tomorrow. Under that state of emergency, the government in madrid will be able to adopt essential decisions that are granted to it. We are still unclear on the details of what that is likely to look like. Just looking at the spanish market right now, the ibex earlier on was trading a little higher, now trading off those highs. We are up by 5. 63 on the spanish market. In terms of what we are learning from the Prime Minister, he is saying that the country will be able to adopt emergency decisions. Clearly this is likely to affect the schools, likely to affect blick meetings, likely to affect the freedom of movement that the spanish enjoyed within their own country. As we get more details, we will bring them to you. Vonnie indeed. Lets get to the markets now and have a look at not just the stock market, but the bond market. We just had a new york fed announcement saying they are coming in hard into the treasure market, 30 billion worth of bonds across the curve. Our alex harris tells me it looks like they are frontloading the schedule and trying to clear the inventory, and that is why we saw that announcement a few moments ago. A couple of guests with us to explain the moves come a bloombergs dave wilson, and we also have john authers with us, author of some excellent columns recently. Dave, we are seeing a rebound, but ive seen several notes today sit today to suggest that we are going to expect some rebounds, but this will likely still get worse. Dave it is understandable because we dont have a very clear sense of how the coronavirus outbreak is going to affect companies results. We have some indications, but not a whole lot. Ticket company like broadcom. They came out yesterday with quarterly figures. They talked about how they are concerned with the coronavirus and it is affecting their outlook space their outlook. Time it comes out at a time when shares for most chip stocks are higher. It translates into numbers that people can kind of analyze. It does raise the question of whether you are going to see even more declines in stocks as disappointment builds. Guy we seen concerns about liquidity for the bond market and the equity market. Is the market functioning today . John the market is functioning, to the great satisfaction of whoever shortterm traders bought at the opening in stocks. Weve obviously been discussing that. I dont think it is fair to say the market is truly broken at this point, not quite like 2008, where a number of important money markets truly werent able to give you a price, werent able to trade. We are not that kind of level. What you saw in european trading yesterday was certainly getting close to total disorder, and obviously the extreme overall volatility is the kind of thing you really have only seen previously during major stockmarket crises. This we see havent seen, for example, a major etf liquidity event, which many people have been worried about. Dont appear at this point to have any longterm Capital Management style institution in trouble. I wouldnt say that the markets were nonfunctioning yet. Vonnie i just want to break another headline. Switzerland is the next country to offer aid to tackle the impact of the virus. In this case, 10 billion swiss francs, which equates to about 10. 5 billion. Switzerland the next country to try to tackle the impact of the virus. Let me ask you the speed of which at let me ask you, the speed of with this has been happening has been phenomenal. Well, it is comparable to black monday in 1987, and comparable to what transpired after lehman. It is faster than either of those in terms of how quickly we moved from a high to extremes. So yes, this is a remarkably fast selloff. I think youve got to differentiate from other crisis. Its very difficult to have two external shocks that people werent prepare for, both the spread of the virus bound asia virus beyond asia and the oil price shock. It is very unusual to have both of those hit at once, but the fact that we have moved this fast means it is highly unlikely we will be able to find a level for a matter of weeks at least. I would say we are going to be getting volatility like this and modulations like we are going throughout the moment for quite a while. It is the simple math medics of markets. It just has to be that way. Guy more breaking news coming through, keeping you updated on what is happening here. The Canadian Parliament is to be suspended to respond to the coronavirus. Obviously it is a substantial gathering, and they dont want those gatherings to take place. We have also seen the impact on the trudeau family come up with the Prime Ministers wife being affected by the coronavirus. Obviously, that is something that is may accelerating such moves. Let me come back to you in terms of how the market is functioning. What kind of liquidity are you seeing in the equity market . Are all orders getting filled . Are people getting the prices they want . Dave i would reaffirm what john was saying. This was not even yesterday, for example, when almost 1 4 of the stocks on the s p 500 didnt start trading until after the 15 minute Circuit Breaker was put in place. It shows you how extreme things were yesterday. Weve kind of backed off that today, so it looks like a market that is functioning relatively normally, so it is a matter now of does that persist, or if we get further volatility, do people pull away. That is yet to be determined here. Vonnie we have to leave it there. Our thanks to bloombergs john authers and dave wilson. Guy coming up, u. S. House Speaker Nancy Pelosi says she is closing in on to deal with the Trump Administration to stem the Economic Impact of the coronavirus. We will get the latest from washington next. This is bloomberg. Renita this is bloomberg markets. Coming up later today on balance of power, richard vonnie live from new york, im vonnie quinn. Guy from london, im guy johnson. This is bloomberg markets. Vonnie lets check in with the bloomberg first word news with ritika gupta. Ritika two political enemies may form an Unlikely Alliance over the coronavirus. House Speaker Nancy Pelosi says she is close to an agreement with the Trump Administration on an aid package that would mitigate some of the economic image caused economic damage caused by the outbreak. Democrats have been holding out for paid sick leave and more help for the unemployed. A deal could be announced today. More americans will be getting tested for the coronavirus. Say therecials will be many more tests available. There has been growing frustration that the u. S. Wasnt able to match the response of nations such as south korea, which is testing 10,000 people a day. The British Government is battling criticism of its coronavirus plan. It responded with a number of modest steps. Trying to delay the worst of the virus. Another big sports event has been scrapped due to the coronavirus. This time, its one of the biggest tournaments in. In golf. It was set to be played next month in augusta. They hope that it will still be played at a later date. Global news 24 hours a day, on air and on quicktake by bloomberg, powered by more than 2700 journalists and analysts in more than 120 countries. Im riddick gupta. This is im ritika gupta. This is bloomberg. Guy house Speaker Nancy Pelosi says she is near an agreement with the Trump Administration on a coronavirus bill. For more, we are joined by Kevin Cirilli, bloomberg chief washington correspondent, joining us from our d. C. Bureau. They are close. What are they getting to . What do you think this deal is going to ultimately look like . Kevin they are hammering out the details, and i should note there is intense optimism on behalf of speaker of the house nancy pelosi and treasury secretary Steven Mnuchin that they are going to be able to get to some type of agreement, and they are hammering out the details virtually as we speak. It is likely going to involve involve paid sick leave and free access to medical tests, and allowing individuals to make sure that they are getting that information as it happens. We should also note that the administration has really been pushing and saying publicly for the past day that free access to tests and utilizing the private sector are in route and are going to be happening within the next week or so. It is a much more optimistic day here in washington, d. C. Yes, there is some polarization on the political front, but the expectation is that Speaker Pelosi and secretary mnuchin are working optimistically to hammer out a deal. Vonnie we are wondering what the delay is. The senate said it will be not in recess next week, so there will be able to be a vote and signing at all of that. What are the sticking points . What is emanating from the discussion . Kevin one of the main sticking points is the issue of who is precisely going to benefit from some of the policies being discussed as it relates to taxes, for example. I also think there is this other Common Thread that has emerged on both sides of the aisle, and outside of washington, particularly the wall street crowd, is paying attention to as it relates to pharmaceuticals. You have people like senator marco rubio, senator mark warner speaking an agreement, senator bobby midnights senator bob menendez speaking also about the need of america to better position itself in the pharmaceutical supply chain. That is something that i think, longerterm, beyond the economic stimulus package, but potentially in the next year or so, is going to be a bipartisan issue that republicans and democrats alike are going to be talking about, especially as the u. S. Seeks to better position itself in pharmaceutical supply chains in the world, and most notably with china. Of the Big Questions a lot of governments are trying to grapple with at the moment is which industries does government spend money on at this stage. How do you pick which industries should receive federal funding . That thean expectation Airline Sector is going to get some, the Health Care Sector is going to get some . How is that process going to be determined . Kevin right now it is picking sure that americans have access to tests. Youve heard that from the president , specifically in his public address, who actually named two of the private sector companies. Youve also heard from officials that they are looking in the immediate 24 hour window on making sure that americans are making sure they had been stricken is working to make sure that americans have access to tests. Beyond that, as it gets to tourism, ill keep this short, i think it is a little too early to tell. Guy ok. We will wait and see. I am sure we will be hearing a great deal more from you when we get an announcement out of washington a little later on. Bloombergs Kevin Cirilli joining us from our washington bureau. Vonnie heres a question to ponder. Will this coronavirus pandemic push joe biden to consider the Health Care Proposal that haverate democrats refused to touch, and that is medicare for all . Lets get to our columnist about this today. Max beeson joins us. This coronavirus could make things worse viviana is there the possibility could make things worse. Is there the possibility that medicare for all would become a more popular idea now . Max i think that is a very real possibility because more people are going to be exposed to the many costs of the American Health care system. You hear testing mentioned a lot. There are early moves to make sure that is covered. But the real source of cost throughout the health your system and for individuals is when you actually end up in a hospital. Even people with employer insurance, that is the suppose it gold standard, they face high deductibles for hospital stays. If you actually get this virus and end up with a long inpatient stay, you are likely to face a bill for thousands of dollars, and that is just for covered service. I think that will potentially highlight the case for further changes to the American Health care system. For example, joe bidens virus Response Plan he released yesterday specifically called for a number of changes that would make tests for covid and hospital charges for covid free of charge for everybody. That is, on a small scale, medicare for all. There is a case to be made, if not for going all the way there, be considering some tweaks to his platform that might do more to protect people when it comes to the cost of health care in this country. More countries with is there any indication that in countries with more comprehensive health care systems, they do better with the virus we are experiencing . Max there is some evidence in singapore, south korea, both having some success. It is a bit difficult to make a comparison because every other developed nation in the world has some form of universal coverage, either singlepayer or multipayer system, with greater control of costs. I think it is inarguable that even if the Public Health response isnt entirely dependent on it, the personal cost to people and also the conditioning, Many Americans have spent years being conditioned to avoid care because of cost. If measures arent taken to prevent that, it will lead to both financial toxicity and greater spread of the virus as people dont get tested and dont seek help. Vonnie theres a sense that anybody espousing ace in the espousing awont singlepayer plan wont get elected into office. Does this change the mathematics that even pulling will suggest it is more attractive to voters . Max i think that is the case as they are very visibly confronted with the unfortunate realities of the American Health care system. From a pure electoral perspective, it is hard to make the case that president has done anything but the response to the virus but botch response to this virus. Also, if you look at his health care policies, he has continually proposed cuts to medicaid, a repeal of the Affordable Care act, which is one of the few things protecting people financially in this crisis. Those are not popular policies at any time, and they are especially damaging politically, i would argue unconscionable in the middle of a pandemic. There is a case for a mandate for real change, and that may lead to something closer to medicare for all, a single payer system, or more ambitious public often even public option even. Vonnie thank you. Guy great coverage going on up there. The coronavirus continues to rattle the Global Travel industry. Weve just been hearing about it earlier on, canceling conferences, families postponing vacations, and hotels are taking a severe beating. One are more details how it is. Over to you, renita young. Are doubling down on sanitizing rooms and canceling breakfast buffets, but there is not much they can do to help panicked people travel and check in. Revenue per available room declined 12 for year earlier during the week of march 7, and it was before President Trump announced temporary bands on some travelers coming in from europe. The ceo of the Hotel Association of new york city says, relative to 9 11 the great recession, hotels didnt come close to the drop in occupancy they are experiencing right now. The s p 500 hotel resort and cruise line index is down now to 2015 or 2016 lows. It has lost more than 15 of its value this year. Companies like Hilton Worldwide are withdrawing their 2020 forecasts. Owners and operators are racing to reduce operating costs. Still, Bloomberg Intelligence analyst Mandeep Singh points out these conditions are only temporary. He said, given the transitory nature of this pullback in travel demand, we believe there will be a sharp rebound in growth due to pentup demand for expedia. Com. Com and once travel resumes. But the question remains, when will normal return . Guy thank you very much indeed. Still ahead, we are going to be live at the cme to get a taste of what is happening with the markets right now. ,ook at where brent is trading positive. Not that positive, though. Fridayat 34. 13 on this the 13th. This is bloomberg. Vonnie live from new york, im vonnie quinn. Guy from london, im guy johnson. This is bloomberg markets. Time for futures in focus. Lets bring in paul nolte from the cme in chicago. Concerns about liquidity yesterday. Is the market functioning today . Paul it is a little bit better. We are still seeing markets move pretty violently in either direction. We got a selloff, another rally, but when you look at the spreads for a lot of etfs, you are still seeing some fairly wide spreads and things moving fairly rapidly in both directions. As much as i would say we are in a better place then yesterday, i dont believe the markets are functioning at a normal level. They are still in a pretty frenetic phase right now, and i think that is going to last probably the next week or two before we see things calm down. Guy at its core, this is a health care crisis. The fed is trying to do what it can to deal with what is happening in financial markets. Is the fed helping . Paul i think the fed is helping. Central banks around the world are. Theres plenty of liquidity in the system right now. They are still putting a lot of liquidity in. We are anticipating the fed to cut rates again next week at their meeting. When you look at the economy, the Economic Data coming into the crisis, at least in the United States, was still very strong. So once we get past that with the additional liquidity we have , we would anticipate the markets and the economy to pick up pretty quickly once we get past the crisis here. Guy what will it take for investors to rotate out of bonds in a big way into equities . It needs to happen to form a bottom. When does that happen . What do we need to see . Paul if we take a look at prior issues, 1980 seven crash, 2008, you are looking at a period of anywhere between three and six months of fairly volatile markets, both on the upside in the downside, until people feel comfortable that the crisis has passed. This may be a little quicker only because it is more of a virus than it is financial, so it is possible that by the summer months, that has passed, or at least we are on the way to repair. But looking at history, we have at least three months on the inside before things quiet down. Guy paul, thank for your time. We greatly appreciate it. Paul nolte of kings View Financial joining us from the cme. Vonnie still ahead, we will speak with the European Commission Vice President about europes plans to respond to the coronavirus crisis. This is bloomberg. World from bloomberg headquarters in new york to our audience worldwide, im david westin. Welcome to balance of power. As we come to air, we can break news from the president of the United States. He has tweeted he will be holding a News Conference at the white house this afternoon at 3 00 eastern time. He says specifically to top will be coronavirus. We will be hearing from the president in about four hours on the coronavirus. This is following remarks from the oval office earlier this week. It has been a week for the dramatic market news, and today is no exception. Lets turn wide array lets turn right away to taylor riggs with where the market is, with what appears to be a rally. Coronavirus u get exclamation point, that could be a peak fear. The