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The s p down 4 on the day. , 17 on amazing week the dow, 15 on the s p 500, 13 on the nasdaq, all major indices down about 30 from alltime highs. Scarlet sorry we interrupted. You were saying that it will depend on the number of infections and whether that curve bends or breaks . Vince one potential piece of good news, if we look at the country countries that were successful at containing the number of new cases, china and korea, the numbers have slowed to a trickle. In italy, the numbers are still wearable and the news out of italy is horrible. One of the things we do notice is that if you look at the Second Derivative of the number of new cases out of italy, the percentage increase is starting to decline. If we get to a point where the number of new cases in italy flattens and starts to decline, that could be an important Inflection Point for markets because it would be an indicator that some of the lockdowns and quarantines are working and it could create the sense that western economies will be able to get this virus under control. Romaine well said. Biggest weekly decline for the s p 500 going back to october 2008, the week when there was concern about the Global Financial crisis. Scarlet plus aig and trying to figure out tarp. It all we will break down. What are you watching . The s p 500 went from bad to worse as the day wore on. It happened in a choppy session. Up asx is lower, it was much as 80 at the start of the week. Are below the december 2018 lows and that was a key support level. Movers wef individual are axing some stocks and the red but there have been some bright spots. We are seeing in the entertainment stocks, United Airlines and carnival, which got still downnceback more than 70 yeartodate. Cold it was about 1500 but it is lower and that we aren under pressure seeing treasuries higher. It seems like a very uncertain. Nvironment right now isrlet still with us vincent and big campbell and cacmpbell. L and ed throwing away the 1 contraction, and writing the message that was delivered yesterday last week that the jobs were not to close the spread or Pay Attention between bunds, but to and provide liquidity. There have been a number of measures. We know there is a relief fund being set up. Central banks, particularly the ecb, vowed to do what it takes, does that have the same potency . Vows like that make a difference to investors . Vince i think it makes a difference to liquidity. They were correcting mistakes they made last week. They knew the projections were out of date. Virus,d not included the but the offer that was rather was silly and i wondered why i was listening to. Ithout question it is fiscal policy. France stop at nothing to support the economy. That has a lot more weight to investors. About italy, a little better situation there. The summoner in the tristate hopefully ita did, will do a lot to stop the virus and the quicker we come to a resolution in terms of the spread, the higher confidence the markets will have. You think about that . Ed i think that is absolutely correct. Global policymakers response is critical in determining whether the Collateral Damage to the economy can be minimized so that once we do reach peak virus and fears and we start to get back to normal life that the economy want to be damaged in a lasting way. I think we are seeing Central Banks and fiscal authorities adopt a whatever it takes, wartime response and are throwing everything but the kitchen sink and that is appropriate. Scarlet we are in a bear market. We are looking at 30 declines from record highs. This will take a while to sort out because it is not a financial problem ultimately at the root of it, but a Public Health isis. How long do you expect us to be in this scenario where it is not yet time for investors to look into bottom picking . At the same time, you want to be ready to jump when the time is appropriate. Ed the average postwar bear market has had a 35 drawdown. We are getting pretty close to that. I think that suggest that the vast majority of the downward price action is likely behind us. We had some really nasty bear markets that have had 50 drawdowns, like the Global Financial crisis and the tech rack in the middle 70s. It is possible to have drawdowns like that but not likely. We are continuing to play a cautious because once you enter takesity bear market, it time to bottom and it is a process and you could certainly have further downside. That said, once you have had the type of decline we are talking about, there tends to be a positive risk reward profile looking forward six and 12 months. I dont know that we necessarily need to call it bottom. At some point it is going to make sense to add exposure. We certainly do not want to go with ae first of april massive underweight of equity markets after they have declined so much. Just to get back to benchmark, we will have to be buyers between now and the month. Romaine before you became the bloomberg, voice for you were a trader. Can you talk about the psychology in these types of times . I know what we are going through is unprecedented. We have gone to market meltdowns before. What is the general sentiment on the Trading Floor on a week like this and Going Forward . Do people say, this is an opportunity . Is the fear . Bece i think there will opportunities. I believe that 30 provide percent is 35 is the average down but it is not really a financial issue, but something we have never dealt with for. There is a potential to see this it goingr i dont see to much further. What you need to see is bad news come out in terms of data. Trader, you will gauge whether or not the market has the appetite for risk and whether the data move the markets or that data is now priced in. Where that comes after the data and how far it moves, you will get a sense of the fear of traders in the market and whether things are priced in. Out, then as ae traitor it counts. That is a time when bad news isnt affecting you too much but good news will area news will. We do keep track of that on the bloomberg terminal. That key track of the number of cases and you can assess for yourself. Scarlet that is a good reminder that in spite of all that, we havent seen the bad news on the data. There is worse to come before it eventually gets better. We have to hit rock bottom. We want to take think our guest, vincent cignarella. Cambell, q aank ed managing director. Scarlet that does it for the closing bell. Romaine we will take a look at latin america and the coronavirus. Scarlet this is bloomberg. Romaine live from bloombergs headquarters, im romaine bostick. Scarlet im scarlet fu. Romaine u. S. Stocks following the most amid the coronavirus pandemic. Scarlet the question is what you miss . Steven mnuchin and democrats went to expand the plan further. A vote is set for monday. To bring in ednt mills from alexandria virginia. There are lots of headlines in a know you have written with talking about washington lawmakers and what they have been working on during when it comes to stimulus and fiscal aid , are there expectations that the washington policymakers need to meet or do people just want big numbers . Combination of both big numbers and knowing that the federal government is not going to be down with round three. We have done two rounds already, 100 billion plus. This is growing exponentially. Minute. Owing by the after this, we have to think about how do we expand Unemployment Insurance and support for state and local government . Knows that the government is ready to stand behind whatever Economic Impact there is, its when we construct the bottoming process. Romaine still a lot of concerns about that and reports of various states issuing stayathome orders of some kind or another. Illinois is joining california, new jersey, new york, other states. There will be a big Economic Impact. When you talk about the response in washington, you mentioned the first two phases but that is a drop in the bucket good we are talking trillions of dollars. We have heard from some folks on the fed basically saying they need to make it rain. We need to be indiscriminate and how we approach this crisis and not worry about picking winners and losers. D think we should take more of a blanket approach to that do you think we should take her of a blanket roach or be more targeted . Ed he would know. He was sitting at the treasury working on distributing this during the financial crisis. If he knows what the Economic Impact is going to be and what the policy response must be, we need to listen to folks like him. What we are looking at is a couple of things. One, congress is moving really fast for congress. When you go back to the financial crisis to the first concerns of subprime until we did tarp, that was over a year. This is moving within a couple weeks time, but because of how quickly things are developing, it does seem like d. C. Is lagging. I am getting the message that they understand this will have a huge Economic Impact and that they need to act and act fast and they are attempting to do it. Fiscal stimulus is never a Straight Line and that is the headlines we have to go through and we will absolutely get something at the end of the day, i am just hoping it is enough. Scarlet a viral outbreak is easier to understand that exotic Financial Instruments repackaged and sold to supposedly sophisticated investors. You say congress is moving remarkably fast, and that is true, but it feels like we have it meet to people making happen, nancy pelosi and Steve Mnuchin. Does this rest with their ability to Work Together and in decent relationship . Where do we stand with them being able to do that . Pelosi and Steve Mnuchin but adding in Mitch Mcconnell and chuck schumer. They are instrumental here. You ultimately need to get 60 votes in the senate see need bipartisan compromise but neither will sign off unless they know it will pass the house. It is good that nancy pelosi and utia have a relationship and Steve Mnuchin have a Good Relationship and you have a secretary that warm worn to to senatewarned republicans that the economic aspect could be great and we need to move faster than you can imagine. Romaine i wanted your thoughts on other issues going on outside of the legislation itself. We heard talk or Steven Mnuchin floated this idea of reducing rocket hours and there has been talk on wall street as to whether it would actually be a hindrance to close the market for a short period of time. Are you hearing anything in washington from the regulators that this is an option. Been Market Participation test them to consider this and you have to bifurcate equity markets from credit markets. There is a greater debate as to what you could do with equity markets if you absolutely need the credit market to continue to function. Localities have to issue debt and corporate has to issue debt if they will meet the economic demand that we are asking of them. Look atly, whenever i the crisis playbook, it is always about liquidity and confidence. The fed is doing everything we can to keep liquidity and i need to do a better job of communicating confidence. If you shut the market, that is not liquidity and could debatably go either way on confidence. So we are always from that. Romaine well said. Obviously the market and the economy knelt on that confidence. Our thanks to ed mills from raymond james. Coming up, talking about the impact of europe, asia, and here in the u. S. From the coronavirus. And we will talk about latin america. This is bloomberg. Romaine much of the world in lockdown due to covid19. Much of latin america was untouched but now it is sitting there. They are warning that the rate in speed could leave latin america unprepared. Joining us from sao paulo are managing editor. The big tone here in the u. S. As well as in europe over the last few days has been taking this a lot more seriously than maybe we did a couple of weeks ago. However, looking over in latin america, i still see folks in mexico and brazil and other countries not necessarily practicing social distancing and not necessarily on lock the way we are here. Will we see that change . Is there a sense of urgency here that latin america is at risk . Dan it has been a mixed bag. We have seen countries like peru, venezuela, and argentina take some very strong measures with relatively few confirmed cases and sometimes without any deaths. El salvador fanned foreigners from coming into the country a week or two ago. Action from strong government but mexico and brazil are the countries that are taken the fewest measures in restricting travel, flights and everything else. It really is kind of rolling the dice and a bit of a gamble and we will see if it works for them or not. Ofrlett one thing that is concern is that latin america does not necessarily have enough facilities to address a Public Health crisis. Explain what it comes down to when it comes down to hospital beds per 1000 people. The numbers for italy suggests that the country would have capacity in normal times and stretched to the limits during this coronavirus outbreak, but when it comes to mexico, brazil, or venezuela, which is different entirely at, the numbers are vastly different and hugely concerning. Dan so far we have seen the affluent been more people have it via travel to the you up to the u. S. And europe. We has not seen the Public Health system in these countries be tested yet. I know mexico has the worst , which mayper capita not be that surprising, but when you see developed countries overrun by this, it raises the alarms on how bad it can get in some of these countries if the virus begins to spread among the poor in tight quarters in these neighborhoods. Bloombergs dan cancel and sao paulo giving us an idea for may happen. How do you practice social distancing and some areas in latin america and you have several generations in one household . Romaine they will have to address that and we talk about the Economic Impact and they are already struggling. Argentina is one of the worst area worst. Scarlet coming up, several u. S. Senators on fire for possible insider training with stocks. We are going to talk to senator to Kevin Cirilli on this latest story. This is bloomberg. [ fastpaced drumming ] [ fastpaced drumming ] saw a market that declined right into the close with the s p, dow, and nasdaq font to session lows. By the end of trading, they had lost at least 3. 8 in the case of the nasdaq, 4. 6 for the dow industrials. Rounding off a decline of anywhere from 13 to 70 for the week. Stampededas investors into the dollar. It remains the safe haven of choice, especially cash and we see that in the stress in the credit markets with companies trying to regain access to funding markets to fulfill cash needs. We will continue to keep an ion markets, especially as we get more updates on the coronavirus outbreak this weekend. This is bloomberg. Romaine planes grounded, cities on lockdown. The data keeps flowing. Widespread fear and surging internet good cause networks to fail. We have Colby Synesael on the phone from cowen co. , llc. With so many people working from home and using the internet in ways that are little bit more burdensome than they normally would that the infrastructure may not hold up. Can you give us a sense of how prepared that infrastructure is for this demand . You for having me. It is different across the world. There is a lot of talk about some parts of the European Union asking netflix and other streaming services to reduce which takes from hd five gige makes on a per hour basis and asking them to take it definition. Dard in standard definition, that requires much lower data usage. The good news is that in the united states, we have a stronger platform. Between the Cable Companies and telecom operators, they have put in place a network that is able to support demand that we are seeing. The carriers typically build networks in terms of capacity for peak demand. Historically we have seen man happening around 7 00 p. M. To 10 00 p. M. At night. What is interesting with covid19, we are not seeing and increase your naptime but we are seeing more usage during middle of the day, more than the Typical School day or workday and that is something the network cant handle. Scarlet in your conversations with the broadband providers, did they have any time to prepare for this . Ine they able to bolster anticipation of this for their networks . We know that schools had already called off classes in the weeks before different states came home and said Everyone Needs to work at home. Uses 252ur typical three heron gigabits of data each month. 200 to are expecting 250 gigabytes of data and that is expected to increase up to 300. It will not happen during the evening when we historically see it but will be more during the middle of the day. If you think about a network connection, it is like fire hose. During evening hours we are using it at max capacity, during the middle of the date we are dribbling it out and a low stream. Now we are effectively turning it on but the capacity of the network doesnt have to change. Toaine so it doesnt have change but a lot of folks have been taking more of a speculative position in the g at companieskin that make that are would benefit from that increased usage. Are there any stocks you are looking at that could be at the center of that . Colby the more obvious names would be the telcos and Cable Companies. Verizon,commending which we just upgraded a week or so ago and we also recommend charter. They are good names and should do well during this time. Other names that are less and if youand known look at some of the stocks they well. Een performing much forthank you so internets on the infrastructure and why it wont break. Romaine there is a lot of technology that goes into producing this show. We are not really operating at normal capacity. There are a ton of people working from home and working in locations to bring you this program and all of the programs you are seeing on bloomberg television. It is an incredible effort in human cooperation. Scarlet collaboration and patient. Romaine we should think all of them. Scarlet we just happen to be the people ecb there is a lot of work being done behind the scenes. An fse group, and and add the c group, common cause an group is asking questions. We are having 10 heading to Kevin Cirilli. Kevin i am Kevin Cirilli and i am joined by loeffler senator Kelly Loeffler senator from george piro thank you for joining me. Sen. Loeffler i appreciate being on. Kevin when will the economic bill be passed that which mcconnell has said will provide relief for Many Americans who are facing down the prospects potentially of losing their jobs . Sen. Loeffler that is an important question. We have committed to staying through the weekend to get this past era i am not leaving until we get it done. I spent roughly the last 10 days on the phone nonstop with hospitals, nursing homes, georgians, families, understanding what the needs are and make sure the bill reflects what Everyday Americans need. Kevin do you think that hospitals right now, as of friday early evening are prepared for the coming likely crisis that many of them are going to face . They have enough equipment and arts are the supply chains intact . Sen. Loeffler i am looking at that closely and at introduce legislation to create supply Chain Visibility we need for car equipment of a personal protective equipment, gloves, testing materials that we understand could be in short supply. We need to have better transparency around our ability to serve our citizens. I think that legislation will be part of this new bill. Kevin when you talk about transparency, you and some of your colleagues have been questions about stock trades that you main. I am wondering if you can say 1000 that you did not provide any illegal information that would have benefited your stock portfolio in the midst of this crisis. Sen. Loeffler absolutely certain. I have no involvement of the investment activities conducted by thirdparty advisors. I made that decision before coming to the senate. I made that in the private sector when i worked in the investment management. Many of your viewers will know that strict rules under the sec prohibit things like insider trading, trading on nonpublic information. These are core tenants. I know exactly what is required under the law. I held myself to that in the private sector there and im holding i saw to that standard and even higher in the senate. I have no engagement with my activities in terms of investments as well as the fact that these thirdparty advisors have no communications from me at all. Kevin did any of your staff communicate with them or anyone in your family or no . Sen. Loeffler no, that is not how we have it set up. There is a complete disconnect for me and my family with the investment advisers. We have an employee in our personal Family Office that intermediates between the advisors. There is no reason that they would need to talk to us are that i would want to share anything here and i certainly dont have information i would want to share with them at any time to apply with all the applicable sec rules, Senate Ethics rules. This is how i conduct my affairs and always will and will Going Forward. Kevin has Mitch Mcconnell or anyone from the Senate Ethics probe called your office are contacted other senators are facing these questions . Sen. Loeffler i cannot speak for other senators, but i will tell you 100 , if no one reaches out i will be completely responsive eared i believe in transparency. I think the stock act in the senate is important. It has provided this transparency. I make any trades or transactions are my thirdparty intermediaries to knowing full well these traits will be reported. Important to provide details should be have questions and im happy to comply. Kevin do you understand the concern . I understand that you did nothing wrong but do you understand the concern and senators mentioned in this, especially in a time when americans are wondering if they are going to have enough to pay their bills over the next two weeks . Sen. Loeffler i certainly understand why these rules exist and i have helped to enforce them and brought more into the private sector to support this. It is important to me that everything made transparent and i cant speak for other senators that i sent late appreciate why these rules are in place and the importance of complying and that is why i have over complied in congress. I would say that very few people could have a problem with saying that i have turned over all of my affairs over to thirdparty advisors and im not conducting any of that myself. I have given up the ability to transact freely in my financial life. Kevin just one final question do you have any regrets over how you conducted your financial dealings over the past several months as it relates to this . Sen. Loeffler not at all. In fact, i made extra precautions to not just comply with the letter of the law but the spirit of the law. I will continue to do that and i will continue to do everything with the spirit of transparency and the law as i have always done throughout my career. Sen. , thank you for your time and best of luck in georgia and across the nation in dealing with this global pandemic. Scarlet thank you so much. That was Kevin Cirilli speaking with senator Kelly Loeffler from georgia. Mark new york state joining california and ordering nearly all residents to stay home as governors watched with growing alarm the european spread of the coronavirus pandemic. New York Governor Andrew Cuomo said his state is going to close the valve because the Hospital System could become overwhelmed. Newsom,e after gavin from california, ordered the biggest lockdown in the country. President trump is trying to get needed supplies to the front lines of the coronavirus outlet and the private sector there to mobilize against the pandemic. The president said he would tap the act as needed. Today he has put that quote in gear it has put that in gear. This is in line with the restrictions on the Canadian Border earlier this week. Senate Intelligence Committee richard burr is asking for an ethics review after coming under criticism for dumping as much as 1. 7 million in stocks. He is one of four senators who sold just before the u. S. Benchmarks plummeted. He says he based his decision to liquidate based on solely on public news reports. Three other senators made sales before the market freefall. Dianne feinstein, james inhofe, said she loeffler, she told our Kevin Cirilli that no engagement with investment activities. She says her thirdparty intermediaries handle her financial affairs. Italy preparing to extend a near total lockdown on the country after italy reached a grim milestone of being the nation with the most coronavirus deaths. Officials considering extending the ban on nonessential activities until at least may. An italian newspaper says the government may call in the army to help enforce restrictions. More than 3400 italians have died from the virus. Modidia, Prime Minister urging 1. 3 million citizens to stay indoors to protect themselves from the fast spreading virus. Government is also halting all International Flights from landing in the country for a week. Indias government asking states to enforce work from home for all private sector employees and set those in emergency and essential Services Except those in emergency and essential services. Global news 24 hours a day, online and at quicktake on bloomberg, powered by more than 2700 journalists and analysts in over 120 countries. In new york, i mark crumpton. This is bloomberg. Inaine Senate Republicans the u. S. Proposing 58 billion dollars in loans to airlines who have seen their traffic plummet over the covid19. Will there be enough to support the industry . Lets bring in Nicholas Calio president and ceo of airlines for america via skype. Lets talk about with the Airlines Need to remain solvent and what they would need to get back up and running once we get through this downturn we are going through. Nicholas thank you for having me. It is a matter of remaining solvent and getting up and running. Right now we are in a situation that two weeks ago seemed unimaginable. We have seen traffic plummet in a mindboggling fashion. We are down to low factors of 10 to 20 and that is going down day by day as more and more restrictions. We were flying planes three weeks ago in record numbers. We had 85 to 100 Load Capacity and now is that 10 or 20 . At the same time, bookings have fallen off precipitously and cancellations have skyrocketed. It is a perfect storm. The of it is the fear of virus and part of it is the government restrictions. What we need is help from the government, because we cant sustain this. Our goal is to keep our employees paid and we do not want to lay people off. We would like to be able to come out of the crisis on the other side able to become healthy again. Scarlet we understand what you are saying and no one could have and what is coming President Trump said this is not the airlines fault. What washington has offered so far is loans. There is some political sensitivity and that is something that investors have pointed out to us as well, largely because of the way the airlines have used their cash. Ticket take a listen to what Scott Guggenheim said. Back 45es purchase billion worth of stock. Today they are asking for approximately 50 billion worth of aid to bail them out. I think that is a political nightmare. And an avowed capitalist there are situations where you have to allow the people who are getting the return for the risk actually bear the risk and not have the government bailing them out. Likeet what would it look if the government does not come through with the a package that is under consideration . Can you walk us through what that would look like . Nicholas it will look like a horror show. First of all, at the same time, you want to talk about 45 420 5, we also put out billion in compensation, 139 billion 425 billion dollars in compensation, 130 million in product. We have historically low airfares. That is a great academic point but the fact that the matter is, this is not like what happened in 2008. The banks did that to themselves and the american public, and it was repeated all over the world. This is not that case here the president is right and has been great. Senator mcconnell said it. There is no fault here. Three weeks ago we were flying in record numbers. Now because of this virus and everything that has happened, that has plummeted. Do you want to help the Airline Industry . We have 750,000 employees, 10 million jobs, where 5 at gdp and we drive the economy. We can help pull out this crisis to recovery but not if we are crippled. Romaine everything you said is spot on. We have also heard from a lot of folks out there that if we do get to the stage where we are providing that support and bailout or whatever you want to call it, the i. T. That the government should take an equity estate in an industry that provided money to, similar to what they did with gm, do you think your members are receptive to that idea and willing to accept that might be the price of the help . Receptivenot entirely to it stock prices are down 80 , as you know. From 100 down to 20. That is a difficult proposition. It could be almost opportunistic. You take a stake in the company and make it very difficult for the recovery. People dont understand, the government made a lot of money when that happened with the tarp loans. But we would like a different path if we can get that, because this is something that is beyond our control. What to, and be able to attract investors in our product again as we get back to health and the economy gets back to health. Scarlet Warren Buffett owns 10 of each of the four carriers. I wonder if you are the airlines have had conversations with him increasing his stake. Nicholas i cant answer that. I dont know if they have. Scarlet president and ceo of airlines for america, appreciate it. Miss . Oes it for what you romaine have a great evening. Scarlet this is bloomberg. Shelter in place orders across the state. Illinois could be next. New york ordering all nonessential workers to stay home. The u. S. Ings in market today. Walk us through the

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