Billion will be used to protect german jobs and businesses. Prince charles has tested positive for the coronavirus. That is according to the press association with which cites the royal palace. Old. Rinces 71 years the report says he has been displaying mild symptoms about is in otherwise good help good health. Global news, 24 hours a day, on air and on quicktake by bloomberg, powered by more than 2700 journalists and analysts in over 120 countries. Im mark crumpton. This is bloomberg. Scarlet vonnie it is 5 00 p. M. In london. Im vonnie quinn. Welcome to bloomberg markets. Here are the top stories on the bloomberg and around the world that we are following. As mark mentioned, the u. S. Senate is planning a vote on what is being hailed as the biggest economic rescue measure in u. S. History. It is more than a 2 trillion spending of rates to bolster the u. S. Economy but will it be close to enough . Stocks may be climbing again today. There is still stress in parts of the market. The stress of that supply surged 550 billion in the past week. Plus, the rates for the coronavirus vaccine. We will get an update from the ceo from buying from the pharmaceutical research companies. All of that, plus a Goldman Sachs rerating in the next halfhour. Lets get to taylor riggs. We are halfway into the trading day. It has a hue to it. Taylor yes, it does. We have even had a backtoback to back against since february 12. When you get a 5 or more again, it usually is followed by a drop of that magnitude. If we were to see these extend for another three hours into the close, this would be the First Time Since february 12 where you see backtoback gains. I want to talk about the air carriers. As we wait for them to officially vote on the bill, we do know the rescue package is looking at about 25 billion in loans to air carriers, 25 billion in Strings Attached, and 3 billion to Airline Contractors like caterers. Aid. Ng about 4 billion in you are seeing everything across the Airline Industry get a boost. It includes about 17 billion in loans that are earmarked for companies deemed critical to national security. That sounds like bowing but they are not mentioning boeing by name. 1200so are getting about or so mailed to people making under 75,000 or so. It means you are getting a big boost for the credit cards as they are feeling relief as people get cash in their hands and perhaps are able to put money toward to some of their fixed costs like credit cards. Finally, i want to flip up the board and and on another note where we are taking a look at the unemployment stock we are waving. Getting more and more analyst guesstimates on what could be a record filing that is expected. A few days ago, we were looking at applications for these Unemployment Benefits jumping by 70,000 last week. That was the biggest since november 2012. I think we can all agree that this is just only going to get bigger and bigger. Thank. Taylor riggs, Majority Leader Mitch Mcconnell says the senate will vote on the coronavirus stimulus plan. Joining us now with more details from washington is chief washington correspondent kevin cirilli. At an senators arrived agreement after 1 00 a. M. This morning. What were the sticking points, what did the democrats concede and what did the republicans get . Kevin essentially what the sticking points were over, the Strings Attached to the 500 billion in bailout that Large Companies will get. Democrats were pushing for more assistance for other types of localized programs in their districts. Bottom line is where this goes from here is a timeline of likely passes by at least by the latest, the end of the week. Theis a now comes massive education effort on behalf of the administration. Republicans and democrats to educate the public, to educate community, not just big business, on where to go to get access to all these different tools that are in here. That, then to administration is also ramping up its outreach efforts as it relates to housing finance. That is something that is also going to be on the minds of individuals as well. The question becomes, in terms of when this vote will be, relies on the far right in the farleft. There have been chatter all morning as to whether some progressives in the farleft, as well as altar conservatives would vote against this. There is not a significant number in either the senate where the house to derail this. But they could delay the process. And that is where the theatrics of politics will come into play this week. The bottom line, every source ive spoken with today has said this will likely be passed by at the absolute latest, the end of the week. However it could come a day or two earlier. The president will all but immediately sign this into law. Vonnie Chuck Schumer saying that the democrats are ready to speed up the stimulus consideration. Any word on whether nancy pelosi will allow for a voice vote in the instance that those who are there are not all unanimous . Kevin heres what i can tell you. I spoke with two lawmakers within the last few hours on background. What they had to say is there is a series of phone calls and telecommunication meetings happening well into this evening for members in the house to voice their concerns as well as to educate themselves on the different proposals of this more than 1000 page document. So, it is very unlikely that there would be unanimous consent, which would speed up the process dramatically. Because of that. The lawmakers who are back home in their districts will have to return to washington for this vote. You just heard it in the previous hour from congressman brady, one of the Top Republicans in the house, saying that he anticipates a vote on thursday or friday. Vonnie kevin, thank you. That is kevin cirilli, our chief washington correspondent. Before we get on a check on the markets, i want to bring you the italy death toll. The latest number has dropped. 683. Good news because yesterday we saw an increase in the divided the. Previous two days of dropping we will see if we do hit the peak and as yesterday was an anomaly or whether it is a lot of deaths. 683 deaths in italy. We got the news earlier that spains deputy Prime Minister has tested positive for the virus. Lets get a check on those markets on the back of this to millis vote. Potentially happening in the next day or two now that we have. An agreement stocks rallying. They put they took their sweet time. It took time for boeing to look like it was going to get saved in some way for the dow to increase 5 . Boeing, a big part of that. The s p 500 up 3. 5 . The nasdaq up 2 . I want to point out that the 10year has been trading in a range. The three month yield is negative by three basis points. This is bloomberg. Vonnie this is bloomberg markets. Im vonnie quinn. As the impact of a severe economic slump becomes clear from the coronavirus, the stress bonds are surging. With european leaders backing socalled corona bonds. Not all of them. Joining us is the cio a fixed income and volley investment management. He joins us from atlanta. I want to ask you about the u. S. Curve. The front end now is negative yielding. Does that continue, is this thanks to the fed actions . Matt it is thanks to fed actions are the curve should steepen beyond that. It is closed as close to zero as possible. The 85 basis point makes a lot of sense. Expect to see it in the 50 range. Hard to hold above 100 basis points at the long end, but not below zero at the front end is a sign of strength. Vonnie at what point does this move . We have seen a lot of volatility and equities recently but bonds have been trading in a range, at least certain maturities. What knocks them out of that range . Do we have to see more Economic Data come in . Do we have to see inflation data come in . Matt i think we will be stuck in this range for a while on the side. Ment the real volatility has been beyond the government side on the credit side where you have equities down 20 plus percent. You have seen the same move in senior bank loans. Down 50 relative to treasuries. While treasuries are relatively contained, the real web is on the credit markets. That is what you are starting to seek here over the last two trading sessions. Particularly on the securitize side which has been very volatile. Vonnie we have seen a mountain of fallen angels on the last couple of days. Companies are issuing debt again. It is a little bit of a funny atmosphere. Who is trading in this environment . Where are the volumes coming from . Matt the volumes are coming from real money investors that dont have leverage that can be pulled. You are seeing high quality corporate issue, cash is trading well, treasury is trading well. Those who are not leveraged, who do not have their lines pulled, this is a fantastic buying opportunity. One of the areas where you are seeing a renewed investor interest is cl is in clos. That is showing a real sign of resilience. You start to see capital pushed back in at the high quality end of the spectrum. A fantastic opportunity. Vonnie are there areas that concern you . If we are seeing a level of distress coming into the markets, such a level of stress debt coming into the markets, and obviously there are problems. Where are you concerned . Matt you are concerned today if you have leverage. Much like with a virus, it is as important as who you are with. If you are in similar instruments, the rate holders that are levered 10 times, you will see price volatility. Insecurities that are fundamentally very sound. Moving aaa loss remote, commercial mortgagebacked securities down 10 to 15 points is massive. Same on the consumer side. Concerned. We are not where you should be concerned is the deeper end of the corporate curve where a chappie growth environment Going Forward could actually be a persistent headwind to how tight spread gets. It is a fantastic a fantastic opportunity. Vonnie consumer is a good opportunity. Where else are you nibbling or buying . Matt in the commercial real estate space, you have a a lot of uncertainty about what will happen with payment terms. Are you going to have forbearance agreements . Or could you have technical defaults . We think is the market starts to work through not just the consumer, housing front, which will prove stable, the commercial real estate side, plenty of uncertainty but a lot of stimulus. A lot of fed support. Not as dire a scenario as being priced in due to the liquidity concern. That is another opportunity. Vonnie thank you so much for your contribution. It was lovely speaking with you. Hope you are safe in atlanta. That is not to toms, cio of fixed income envoy a investment management. Ubs cut Goldman Sachs price and why that much of a drop . Thank you for having me on. Why today . Realistically, we have been having discussions with investors for the past six weeks, ever since this volatility began, about what the implications could be. What the Scenario Analysis is. And we are coming here to the end of the quarter. It is normally right about the time we would put up estimates. It is a bit early for us. But we thought that actually putting formal estimates out there might further the debate. And continue to keep us focused on fundamentals and what has been a truly Challenging Market environment. That is the answer on the why now. As far as why this magnitude . Really, it is about the disruption we are facing, with the impact that is having to Investment Banking operations, market sensitive businesses like the Asset Management business, lower marks and potential headwinds, both from credit spreads and from equity valuations. Factorscombination of along with the general lower velocity to the Economic Growth which of course Goldman Sachs has a lot of sensitivity to. Vonnie what do the last two weeks of trading mean for the revamp of the bank . Brennan the last few weeks . Solomons revamp and the new Strategic Direction of the Management Team is a three to fiveyear venture. Not something that is going to be impacted significantly in a period of weeks. What i would say is that the implications of a slowing economy, a lot of it will depend on how much this slows the economy globally. If this disruption puts us into a bad scenario where we have an lshaped recovery on the back of thenter this disruption, that could end up being a setback. It could cause them to decide that they dont want to press forward with certain levels of investment. It is certainly possible. But to be blunt, i doubt it. I think this is the sort of thing that the Management Team has decided a long time ago. They have decided that this is in the best interest of the kind up. The company in the long run. Therefore, they will be pressing ahead. My sense is it probably does not have much impact on the new Strategic Direction at all. Vonnie i want to switch gears slightly. You also cover some of the private Equity Companies. Apollo, for example, which came out last night and reassured markets. Tried it to light a fire under Certain Companies really, by suggesting that there was so much opportunity out there now. This contradicting comments we heard from bill ackman, for example, that many Portfolio Companies in these private Equity Companies were going to be in deep trouble. What is your outlook on apollo and the other private Equity Companies that you cover . Colleague who works very closely with me, he covers on the reports im there with him of course, but he is neutral on apollo and carlisle. He likes aries here. That is actually has actually worked out quite well. Point,yesterday, to your came out and walked through some of the marks met they are likely to take on the portfolio. Those marks were meaningfully less than feared. Also, deployment picking up. Apollo is a little bit more uniquely positioned, given their strength in credit, especially distressed credit. This is the type of environment that apollo has been probably waiting for. Interesting to hear that they have been able to already put money to work. The volatilityt has led some credits that might have been already in some trouble to start to look for exits and allowing apollo to make attractive entry points. It feels a little bit early. Typically when we see a drop in the market, there is a wider ask spread. It takes a while for that spread to narrow between where the buyers want to buy and the sellers are willing to sell. It might be different in some of these distressed credits markets. Where really, financing conditions have typed into significantly. Credit markets, issuances down dramatically. It is pretty much shut. So they dont have many options. I think apollo might be a bit more uniquely positioned to benefit, to a greater degree, from the dynamic. Vonnie thank you. Pleasure speaking with you. A 160n hawken, putting price tag on Goldman Sachs down from two third 230. This is bloomberg. Vonnie this is bloomberg markets. Im vonnie quinn. The fight against the coronavirus has put pharmaceutical companies at center stage. Trade Group Pharmaceutical Research Represents the countrys leading in leading research companies. Its ceo and president joins us now from washington. Supply chain disruptions that your members are experiencing right now, what are the worst ones . Hi, great to be with you. Actually, our company is being very vigilant and is in constant communication with the fda. We have not had major disruption in the supply chain and have been very focused on, as you know, developing a safe and effective vaccine and effective treatment for those already infected. Vonnie theres that and then there are the treatments being touted by the president. What are your member saying about the president s comments regarding experimental treatments . Our members are focused on four key areas. They are focused on working with other companies on diagnostic testing platforms. It is running thousands of tests on their platform. Our companies are screening their vast global libraries of existing medicines. To make those available to patients right now clinical trial. Now are now there are over 100 Clinical Trials over way. You have heard about some of the medicines that the president and others have mentioned, whether it is malaria medicines or thatiral like remdesivir gilead has in trial. Ill six inhibitors made from Companies Like regeneron as well as genentech. Are yours antibodies body produces antibodies for those that have been infected but recover. Companies are looking at that approach that would either be plasmabased or could be developed into new medicines. Of course, they are working on a safe and effective vaccine. There are a number of Companies Pursuing a vaccine. We need as many shots to get a successful candidate. Vonnie let me ask you about the antibody research. It is really only as the coronavirus spreads throughout the world that we are getting more and more information on it. I was speaking to the investor the other day and he was talking about a company in new york state, a subsidiary of a company that is developing an antibody test. Is it realistic to anticipate that we might see Antibody Testing for everybody in the country, or anybody who might want to go back to work . Stephen i think eventually, we will. Essentially to get the community, we will have to have two large groups. One where we know they are immune through an antibody test, and others who receive a vaccine, so that we have the largest swath of americans who are covered one way or the other. Vonnie thank you for joining us today. That is stephen ubl, president and ceo joining us from washington, d. C. I want to point out that the information came from an investor letter today, being put to work in the antibody company. Coming up, we will speak with secretarygeneral about the Global Impact of the coronavirus. Lets take a temperature of the markets as we prep for that. We have a nice rally going on today in stocks one more time. The dax up 2. 4 . S p up 4 . Balloon of aeal day for bowing the Dow Jones Industrial average is up 5. 5 percent. The same moves, but oil is rallying, up to 4 2. 4 . This is bloomberg. Live from bloomberg World Headquarters in new york, im shery ahn. Amanda im amanda lange. Welcome to bloomberg markets. We are joined by our bloomberg audiences. Here are the top stories we are following from around the world. Stocks are gaining ground with major indices rising to intraday highs after a rocky start to the session. S p 500 looking for its first backtoback gain since the Coronavirus Crisis began more than a month ago. This as an unprecedented stimulus bill moves through the u. S. Senate. Lawmakers are now considering a 2 trillion spending package to help combat the effects of covid19 after announcing a deal early this morning. There are concerns the legislation will not go far enough. As confirmed cases in new york top 30,000, more than half the total for the whole country, Governor Andrew Cuomo says the bill is a drop in the bucket for the state. Shery lets get you started with a check of where markets are trading in the afternoon session. We are seeing column in the afternoon session. S p 500 gaining more than 3. 9 at the moment. Every sector on the s p 500 is in the green. All 11 sectors higher. Real estate, Energy Leading the gains. We are seeing small gains in the energy sector. The dow higher by more than 5 . Seeing bowing rally. We have talked about that too trillion dollar stimulus package being negotiated in the u. S. That of course include some boost for Airline Stocks as well. Nasdaq cap 2. 3 . We are seeing stocks being helped by the dollar which is seeing weakness. Lets bring in taylor riggs for a deeper look at the markets today. What should we be watching . Taylor im looking at a cross basis asset, a sense of normalcy returning to markets. The equities higher, you see copper higher. Then you are seeing gold finally turn lower. In times of stress, when correlations were going to one, you are starting to see correlations break down and go back to the ways that they should be behaving. During more normal times. Flip up the board, and a lot of the boost you are seeing within the risk on sentiment could be from breakevens. We talked about how breakevens earlier were showing no signs of growth, at least on twoyear breakevens. You are starting to see that pickup a little bit. Investors are thinking into years or so, you could see a little bit of an improvement. I do want to go back into some of the equities. This is a theme we have been talking about, where the most shorted stocks are outperforming. You are seeing Short Covering going on in the market, perhaps taking profit and covering some of the downside positions. You are also seeing that translate in some of the companies with a bit with the weakest balance sheets, are performing companies with the strongest balance sheets. This is a theme we have seen for two consecutive days. Flipping up the board, i want to take a look at some of the sector by sector basis. You are seeing the traditional risky sectors now outperform. As you can see, they are energy. Look at that, up 8 . This is after energy was up 13 yesterday, having the best day since 2008. Industrials on materials all start to come back as he would expect on a traditional risk on day. Amanda thank you so much for that, taylor. Drilling in even as we said, this unexpected to vote today on package. Ecedented aid the action comes more than three weeks after the oec urged governments to act swiftly and forcefully to help the Global Economy cushion the blow of this outbreak. Is it too little too late . Secretarygeneral is with us now from paris. Here, what we are seeing we are already seeing comments from inside the u. S. That it will not be enough in. The stimulus package give me your view on how important it is the u. S. Gets this . I know canada thinks this is important. That the u. S. Gets this right . Angel the u. S. Should get it right. I would say lets get the 2 trillion and agree on it and make it a law, pass it, and start distributing the checks. And then we will see whether it is enough or not. Of thingsere is a lot to get money and peoples hands. We will then take care of the small and Medium Enterprises. We have to take a look at the Large Enterprises that will be in trouble. There is going to be a lot of work to be to disseminate the 2 trillion. It is a lot of money. It is going to be thousands and thousands of companies and tens of thousands, hundreds of thousands, maybe millions of people, individuals, that will be receiving these checks. And therefore, this is where they have to go. People have to get buyer power. They have to have spending capacity. And then of course, there is also the fed. And the liquidity measures the purchases that they intend to be doing, so i would say, let that evolve and we will see, as we go along, if everybody were that ambitious, then of course, we probably are off to a good start. Amanda we have also seen talk, renew to talk, and it is hard to know how much credit to give it, about a corona bond. Bond. European we know there are those who remain opposed to that. Is it time to start thinking about a new tool for that, for that region . Angel it is time to start thinking about any instrument that will help. The times are extraordinary. We have to leave the deficit behind the concern about the relative importance of each one of the economies, whoever has the capacity to contribute has to contribute. We are very happy you were talking. We are very satisfied, the ambition is there. Now the question is about efficiency. Eurobonds, bonds issued by general, notrope just by one country in europe or another country in europe, have always been on the table. It is a good idea. There there are ways in which this can be a good risksharing, but also there can be very powerful instruments to fight this immediate enemy. We have to fight the virus first. Then we have to fight the consequences of the virus. And then we have to plot a way to recovery. Shery how much have you seen in terms of International Cooperation . Whether it is between european countries, g7 or the g20 . Angel in the beginning, i think there was not enough awareness about how generalized this problem was going to get, was going to be. And now there is. There has been a g7 pronouncement, which was good. Been meetings has of the ministers of finance, of the g20, there will be a meeting of the leaders of the g20. That means people are now very aware and very concerned, and now they are looking at every possibility. Here, the question is not what we are getting to the big numbers now. The big numbers look like there may be enough to the question is how to allocate those resources because they there will be different types of needs, individuals are going to have different needs than the small and Medium Enterprises and the Large Enterprises. Some sectors are going to need more immediate support than others. We also have to think about what the crisis is going to leave us, in order to deal with a Going Forward. We also have to be prepared for that. Shery when it comes to allocating resources, it is important you do it effectively. I do wonder how effective cash handouts are. The u. S. Is looking to hand out 1200 for lower and middle income americans. But then we have seen this happen in the past into thousand nine. We are now seeing it happen in hong kong. Do they work . Angel listen, at this stage, yes. We should do it. Help, it is not going to be the only solution, but people need money in their hands. The Unemployment Benefits have to be generous and prolonged for those who. Have the capacity. A lot of the people do not. A lot of the people do not have help protection. And therefore they should be provided with that. And then the, there is the Health System itself, which needs beds, masks, which needs respirators, which needs protective gear. And eventually, hopefully, medicine and a vaccine. The effectiveness is the keyword, you mentioned it yourself. Effectiveness is crucial. The allocation of these huge amounts of resources to the right areas or the right targets is very important right now. Otherwise, even the very large amounts will not be enough, and therefore, the coronation, the international ordination, not only sizable, but also well coordinated, credible packages are going to turn around. Right now, the market response has been relatively tepid. This is the first day which we have positive outcomes and where the market seems to be convinced. But that is only after the big bazookas came in. Amanda i know that there are discussions about beyond the initial stages, and surviving economically. And how to emerge. Is there enough thinking being done in the plans being put in place, both in europe and the u. S. , that go to what happens when you try to restart the economy and businesses . Are those levers there and available . Angel listen, first of all, we need to stop the virus. Because the longer the virus goes on, the longer the virus people die, and the more people are affected, the more unemployment it creates. The bigger the damage, the more smes that disappear or go under, the more Large Companies that are under pressure. And the more the Financial Markets become reticent and try to move away, etc. What will happen is that the longer the virus stays, the more expensive it will be to return to some kind of normalcy. First, the virus itself, that is the main enemy because the consequences of the virus will be more or less owners, depending on how long it lasts. And then of course, wanting a path to recovery has to be part of the exercise after we have built a shorterterm. Amanda President Trump shery President Trump seems to be looking at it the other way around. He wants to open the economy by easter. Can there be a normal functioning economy if this pandemic continues . Angel no, obviously not. Go first. Lies lies go first. We have to have all the firepower concentrating on the protection of people. On the protection of our societies. And therefore, the isolation measures, the social distancing, of, are the ones we know the absence of a medicine. In the absence of a vaccine. What we know is that the countries that have made ,rogress in stopping the spread or at least have made more progress in stopping the spread, are the ones who achieved some level of success in social distancing and isolation. Therefore, those are the instruments we know of today and we should apply them. Shery secretary general angel gurria, always great having you with us. Thank you very much. Lets get to first word news with mark crumpton. Mark spain has reported its deadliest day at in the coronavirus outbreak. There were 738 fatalities, bringing the death toll more than 3400. The total number of cases in 48in is now approaching thousand. Russia has reported its first death from the coronavirus. Two elderly patients who also had underlying conditions were the first deaths reported. Russia has 658 cases of the infection nationwide. In india, police have begun the gargantuan task of keeping more than one billion people indoors. On tuesday, Prime Minister and modi announced a three week nationwide lockdown covering nearly 1 5 of the worlds population. His speech triggered panic buying leading people to risk by another entitys for violating the locked down by going out to shop at local stores. Global news, 24 hours a day, on air and on quicktake by bloomberg, powered by more than 2700 journalists and analysts in over 120 countries. Im mark crumpton. This is bloomberg. \ shery this is bloomberg markets. Im shery ahn in new york. Amanda im amanda lange in toronto. We wanted to take a check on the markets. We are seeing stocks rallying as investors digest the stimulus bill in the u. S. Congress. We have news here that the imf is providing emergency funding to subsaharan africa, 50 billion emergency facility for nations on the continent. Total cases there, above 2000 now in less than one month. That includes 10 billion in concessional 10 billion dollars in concession lows. Thank you for being with us. I just want to start with, we are seeing day two of a rally off the massive rally yesterday. It is what people said they wanted to see. I guess the question is, when does the selling become the buying become more discriminant than it has been . When do you start to see evidence of fair pricing for the assets that are available . Had a condition a couple days ago where the markets were oversold. You had a lot of leverage unwind over the course of the prior week and a half or so. I think markets are ready to set snapback. You add the fiscal plan that has been agreed to and i think set conditions for a rally. With the relatively relatively thin liquidity that plagues equity markets broadly, i think you will see this kind of volatility. Until you really see the depths of the economic decline and you start to coalesce around an economic or earningspershare outlook for s p, i think that is what it is going to take to build a more Sturdy Foundation for the markets to rebuild. Shery given the doubledigit ups and downs we have seen, when can we confidently say that the full impact of this outbreak has been priced in . Joseph i dont think we have seen that yet. I think you have to see a slowdown in the growth of the number of cases in a sense that the Health Systems in major countries are not overwhelmed by this crisis. And then there will be a discussion around when the rebuilding process from the economy standpoint will continue. You have seen a bit of that with china as they got their arms around the health side of the crisis. They have now increased to productive capacity in their own economy over the course of the last number of weeks. Amanda we are looking for the stimulus package to become official. And then get details on which businesses will avail themselves up. We are seeing going up 30 on optimism that there is a piece of it marked for them. Are you trying to play that against what might come from that package . Joseph from the overall package standpoint, it is most important to help small and mediumsize businesses. This is a different kind of economic calamity that we have seen in the past 20, 30, 40 years. And the impact is going to be quite significant. The quicker this can get past, the quicker the money can be pushed out into those medium sized businesses, the less impact on the economy it will have. The larger businesses are better positioned to get through it with the exception of the industries that have been most impacted. Cruise line industry is an example. Airline industry is an example where they will there will be targeted support for those industries, which is appropriate. Right now, we are still in the mode where we want to be up in quality, more u. S. Largecap than nonus and emerging markets. Shery super quickly, given that we are seeing more good news coming out of china with their factories restarting, could we say that perhaps there markets could be a safer bet if the global recession actually continues . Joseph i think were watching very closely the pace of the virus. Impact. Virus one of the things we are watching is if we will see a resurgence of spread. The markets will be watching it closely. Theainly, the worst of impact has occurred already in china. But china is an important part of the supply chain for the Global Economy. As the Global Economy goes and as the larger developed market economies like the u. S. Go, i think that will have an impact on china. I would not say it is a safe bet necessarily to dive in right now. Shery joseph amato, thank you very much for that. Coming up, target dems its fullyear sales and profit forecast. It gave three weeks ago. We will drill down into u. S. Retail next. This is bloomberg. Amanda this is bloomberg markets. Im amanda lange in toronto. Shery im shery ahn in new york. Breaking news, Brevan Howards fund is set up for a record month with 17 gains during this market rout. We are hearing the fund has gained through march 20 according to a letter seen by bloomberg. They are set for a record month with 17 gains. We know that the 3. 2 billion fund has returned doubledigit growth, despite the market downturn. We have seen macro hedge funds like Brevan Howard shift through its global economies. It seems to be paying off. Lets turn to target. It is dumping its fullyear sales and profit forecast underscoring the difficulty retailers face in navigating the unfolding Coronavirus Crisis. Joining us by phone is matt boyle. This, despite the fact that target actually saw soaring sales are soaring march. How bad are things looking . Matt the sales are soaring but there is absolutely no way for them to forecast demand and what is coming in. We are seeing the stories everyday about toilet paper hoarding and shortages. Targeted target has thrown up its hands and say they guidance ago, we have weeks no idea if it will come in for the First Quarter and for the fullyear. It is impossible to see what they will see in profits. While sales are up, when they are sellings lowmargin goods. It is everyday essentials, food and beverages, the clothing and home to core that delivers better profit margins, they are not selling anywhere near as much of that. Shery also holding buyback amanda also holding buybacks a factor . Matt there is that as well. One thing we will be wondering, target has come out with this today. Is walmart going to also withdraw its fullyear guidance . That is a question we have. In a couple of days, we will hear from cosco, one of the few retailers that still does report monthly sales. I can only imagine what they will say in terms. Of their march sales terms of their march sales. Amanda our thanks to matt boyle. You can see the index on your screen. Up 2 . Markets at session his. Highs. A quick reminder, you can catch the interviews on the network on your bloomberg terminal. The function is tv. Stay with a network. This is bloomberg. Awesome internet. Its more than just fast. It keeps all your devices running smoothly. With builtin security that protects your kids. No matter what theyre up to. It protects your info. And gives you 24 7 peace of mind. That if its connected, its protected. Even that that petcamera thingy. [ whines ] can your internet do that . Xfinity xfi can because its. Simple, easy, awesome. [ barking ] it is 2 00 p. M. In new york 6 00 p. M. In london. , i am Romaine Bostick in the studio. Scarlet i am scarlet fu hosting from home. Romaine lets see where we stand. The markets setting themselves up for backtoback gains, the persons february the first since february 12. Looking beyond the shortterm. We are starting to see a lot about on corporate earnings over the mediumterm. And the inflationary aspects of the stimulus bill factored into the market over the longterm. Volatility is elevated. We are coming back down to manageable levels. You can see the treasury market. Treasuries more muted. When you look at the vix, the vix itself on equities camping out around 60. A lot of disparities between implied vol and real life
comparemela.com © 2020. All Rights Reserved.