Boris johnson and his house secretary. Spains deputy Prime Minister yesterday. Huge number of cases in the u. S. 22 states now under stayathome orders as 50 of the u. S. Population is meant to be abiding those orders. Down to 73 basis points on the 10 year yield. Crude back down again. 21 point 49. Canadian dollar weaker by about 7 10 of 1 after the bank of canada reduced its Interest Rate to 25 basis points. The Prime Minister selfisolating over here, the Health Secretary selfisolating. We are all selfisolating. The brown story in the market is done and dusted. We go into a weekend where traders do not want to take risk. Terrible numbers overnight out of spain. U. K. Numbers continue to climb. Numbers around the world of those infected and the fatalities continue to rise. That story is now taking over from that meal a we focused on so much over the last couple of days. European stocks at session lows, approaching that 300 mark with a bid back in the bond market. 50 in the german tenyear. Notdebate as to whether or can european bonds risksharing care the germans do not like that idea. A bid on the pound despite what is happening to the Prime Minister. Brent crude once again taking a big knock as we refocus on the Economic Impact of what is happening with a virus, trading 24. 66. Vonnie two fed president s offered up their forecast for the fed economy, contracting and rebounding. They spoke with our michael mckee. They that she joins us now. Theas the dallas and atlanta fed. Fascinating is that they reiterated, as all of the fed president s are doing, that we went into this strong. At the same time, what they are calling for coming out of this is terrifying. Michael they are taking two different views. Robert kaplan is particularly concerned about a slow recovery. The fact that we could still be looking at 7 or 8 on a plumbing by the end of the year. He things it will get to the midteens in the short run. Raphael bostic is not disputing we will see a big rise in unemployment and a big fall in gdp but things we could rebound more quickly once we get through it, once the disease progress is stopped and slowed. Guy what i am hearing, time and again from people i am talking to, is that small, mediumsized businesses, individuals are not getting the cash quickly enough to support their lives and businesses. The fed has talked about some sort of Lending Program to main street. Did you get any and handle as to how progress is being made to that front and how it would be executed . Michael both told us they have been spending a lot of time on the phone working on this, trying to get it set up. The idea is you would go to your local banker, who would make a loan to you. Then that loan would be backed up by the fed. The bank could essentially give that loan to the fed, and the fed would give them the cash for it. It will take a few days to get that working, but they say their has been a lot of progress, and they hope to have it up as there has been a a lot of progress, and they hope to have it up as quickly as possible. Vonnie yes to one question on the minds of everybodys streets, inflation. All of this stimulus, will it create inflation . Kaplan talked about disinflation. How were do we need to be . Taylor both adjusted we do not need to be too worried because the contraction will happen so fast and be so deep that it will be deflationary, possibly. Disinflationary, certainly. The money coming in will offset that, and we will probably not see any kind of major rise in inflation except for, maybe, hans sanitizers. Vonnie i suggest everybody watch both of those interviews. Plus trillion dollar stimulus package is set for today, although a republican congressman could hold off the timing just a little bit. Either way, is it enough to satisfy markets . Joining us is barings chief global strategist christopher smart. Is imulus christopher despite the red, today is a happy year day. A much better week than last week, in large part because we have had a fiscal response that complements what Central Banks have been doing. It is important to stabilize the Financial Markets and bring down the cost of financing. What is even more crucial now is replacing the lost revenues that companies and households are facing. That is what we hope this bill will do. Michael mckees reporting is spot on p the e now is how quickly will the money get out the door, through the banks come into peoples pockets. Vonnie what metrics will you be watching for in order to get a read on that . Christopher what everybody will be watching for. The Economic Data right now is all over the board. There has been breathtaking data on unemployment claims. They will be more breathtaking data on pmis, gdp estimates, earnings in the days ahead. What we will be looking for is a sense that companies will start to talk about how they can see their way through this crisis, how they will be able to emerge on the others, and that they have Balance SheetStrong Enough to last through that period. Do you think the bottom is in for stocks . Christopher i do not want to answer that question. Seen,k what we have clearly, is a bounce back because there has been a massive response. It looks, at this stage, as if that should be enough to give us the floor. But i think it all depends on how quickly the money gets at the door, as i said, and how the virus is contained from here. Those are the big unknowns that make it hard to know what we can call a bottom. What is important is to compare this crisis with previously crises previous crises. Although the shock is unlike anything we have ever seen, we should take comfort in a Banking System that is not falling apart, which it was in 2008. My barings colleagues will tell you about the crises, this is different and encouraging in that regard in that we have not see this before. Guy we do not have a handle on how long this will last and how long the economic effects are likely to be felt. There will definitely be longlasting effects of this. There will likely be longlasting negative event fx. Ofthis is more than a couple courses, we will see a lot of bankruptcies, a lot of Companies Getting downgraded. Thisu have any handle on point in understanding the magnitude of what could potentially be coming down the pike towards us if it is not just a couple of quarters, if it is more than that . Christopher even if it is a couple of quarters, it will be a serious blow to investment confidence. It will be a serious blow to the buffer is in savings that companies have been preparing for new investment for buying new cars, building new factories. That is the current challenge. When you say just a couple of quarters, we will have a recession, i think, this Second Quarter into the Third Quarter through the summer. Spread, is an unusual the disease is out of control towards the fourth quarter, that is a whole new ballgame. I think what we are dealing with now, this is a very important first step and first response. Companies will have to grapple challenges,urrent understanding what support is now being put towards them, made available to them by Central Banks and fiscal authorities, and see how they can build that through what will be a brutal recession, even in the best of cases going into next year. But clearly, we are all trying to grapple and understand the way the disease is spreading, how it is going to change our patterns, even as we come out of this. That is going to be a real challenge for companies, and that is why i think focusing on what companies are saying is the key to understanding how long this is going to last. Vonnie how are pension plans, endowments, and so on protecting their wealth, such as it is at the moment . Where are the fund flows going . Christopher Pension Funds and and down it plans all have much longer and so, to the extent that they do not have immediate cash needs, they are able to see through this. We have seen investors committing money to much lower levels, much better valuations, and understanding that, if you can look on a casebycase basis and analyze the fundamentals of the particular issue or stock, you will make money in the longterm. Where the real problems arise is where you have may be corporate to need cash right away or investment vehicles that need to raise cash right away, and they are being forced to sell out at very low levels. I think that is what drove a lot of the sharp clients over the last couple of weeks and, perhaps in some ways, we have seen the sharp recovery from here. But i think if you have the longerterm horizon, this is the time where, if you look at your Investment Managers and advisors to sort through where there are opportunities for where there will be companies in trouble. There. Believe it thank you for taking the time to join us here on bloomberg television. Christopher smart, chief global strategist from barings. I guess you take your opportunities where you find them with their big credit issuances week. Party leaders hope for a quick house response to the historic stimulus package. This is bloomberg. Guy live from london, i am guy. Vonnie quinn over in new york. This is bloomberg markets. Lets talk more about the markets and figure out what is happening. Equities had that friday feeling, and that is not a good thing. Thats figure out what is going on with taylor riggs. Taylor i want to start with major averages. I never want to joke, but what goes up, goes down. Yesterday, we were talking about the big gains in your european markets and our u. S. Markets. Today, that reverses. To 3. 5 on some of the major averages here. London off about 5. 5 or so. Very interesting, what is going on in the industrial index. Take a look at the last month. From our peak february 12 down to earlier this week, you are off more than 42 . In the last five days, there was a little bit of a recovery. We were up 50 or so on the industrial index. That has all turned around a little bit today as we had one of the worst performers of all the s p 500 sectors today. The industrial index, and again, hintingjones sort of around of where things could be, now off about funny 5 , 26 in the last month. A lot of headlines yesterday saying we have been out of the bull market, and today, little bit of that turning around. I want to look at some of the individual companies we are looking at, if we do have Carnival Cruise lines and jpmorgan there, before i get to the bull or the bear. A lot of cruise lines stocks are falling after a late change to the stimulus package that would bar companies not incorporated in the u. S. From benefiting from the aid. This is reporting to a dow jones report. Carnival looks like it is off 30 as they may not benefit from the stimulus. Jpmorgan another stock i am looking at. They are falling after analyst at bank of america cut rating from neutral to buy. There are lowing estimates to reflect a recession here in the u. S. Analysts at bank of america saying jpmorgan could see at least two years of challenge earningspershare. Then looking at an economic slowdown likely, to be followed by a ushaped and not a vshaped recovery. We want to go back to the bull and bear report. We talked a lot about the dow and the s p, where we are. Bull markets usually last 26 days or so, bear markets 26 occurrences. Average length much longer for the bull market than the bear market. Higher move always much to the upside than they are to the downside. Bear marketh of the a lot shorter, only about 11 days or so. It will be interesting to see where we end up from here. Vonnie lets turn to washington, d. C. Now, where lawmakers in the house are debating ahead of an expected vote. We are joined by an adjacent anna edwards and. How will this go . Anna that has been a bit of a slowdown. Yesterday, House Speaker nancy pelosi said she wanted this vote wrapped up by noon, but she was under the assumption they would do a voice vote, have people in the chamber yell out there vote and say it passes and they are good. But a republican from kentucky suggested he would call for a recorded vote, which would require each lawmaker to individually cast their vote through the electronic voting system, being present in the chamber. Yesterday, pelosi and republican leader Kevin Mccarthy decided they would try to get as many members back as possible to get a quorum of at least 18 members to make sure that the bill would pass, even if there is an objection. That u. S. Businesses and individuals desperately need the money coming out of this we are not even allowed to call it a stimulus package. We should not be calling at that. Anna relief package. Mr. Masseys problem . Anna he likes to cast himself as a constitutionalist, making sure to object to anything that does not follow the constitution praise where he has won from some super conservatives for taking that stance, but in this case, you are endangering the lives of lawmakers traveling across the country. Testedmakers have positive for the coronavirus and others are in selfquarantine. The president even tweeted against him a few minutes ago, saying he was a thirdrate grandstand her and calling for him to be thrown out of the grandstanderrty and calling for him to be thrown out of the republican party. Us Anna Edgerton joining from washington. I want to update numbers under the u. K. In terms of virus count. 79,e count now rising to 40,5 that from 11,658 yesterday. And the u. K. Is not testing a great point at this time. The Prime Minister now confirmed as one of those with coronavirus. The u. K. Death toll rising to 759 from 570 eight yesterday. A huge pickup, in a similar way to what we are seeing in spain, in the u. K. Case count and the number of deaths. We have both force johnson and the Health Secretary now confirmed with the virus. This is bloomberg. Live from london, i am guy johnson with vonnie quinn in new york. This is bloomberg markets. Mortgage lender interlocal axing axing 70 ofoak its staff. This week a better week when it comes to where the credit markets have been, but the mortgage stresses we are seeing are substantial right now and unlikely does it to disappear anytime soon. The Federal Reserve will later launch a series of packages to support the bond market. It is stepping in and buying in etfs for the first time. Analyst with etf us now. This is a huge step by the fed. Why is it stepping in and buying etfs . You mentioned a small part of that massive support package from the fed announced monday, the ability to support Corporate Bond markets. The fed is responding to stress it is seeing and how much more limited dealers are, so the fed is turning to etfs to get representative baskets of the. Nvestment grade bond universe vonnie and you have watched this headline with great eliminatinggel oaks 70 of its staff. There could be a cascade . Morgan yes. We have seen fixed income bond etf strain trade at huge discounts from where custodians are able to price their net asset values, which is how aggressive and fast selling has been in the fixed income market. The fed stepping in and expressing it is a willing buyer in this market has created a 180 this week. To the seen return Investment Grade base. We have seen the discount offset with some of these funds trading at premiums, and we are encouraged to see the bid offers narrow. We think this week has been a huge pivot in the Corporate Credit space. Guy is that pivot sustainable . Morgan honestly, we were looking at huge Fund Redemptions two weeks prior to this. For the month, fixed income funds have had to redeem investors of 150 billion dollars, which is so massive. We are on the edge of what could have been widely felt for ling by mutual managers to so it finds having to offload some of those issues could have been much more widely felt. But we are seeing some stabilization in Investment Grade fund space. Vonnie morgan barna of bloomberg intelligence, thank you. We want to recap, Mortgage Lender angel oaks axing 70 of 2055 employees. Member the prominent Mortgage Lender monday said it was closing all loan activity for two weeks. That is what it said at the time. It blamed a inability to appropriately evaluate credit risk. For now, the firm staying open, but it has asked 70 of its staff. It remains to be seen how much more we will see before this is done. The markets really just trying to find prices now and find liquidity. There was even a request for the fed step in in this space, not that that is likely to happen. Guy we live in difficult times. U. K. Housing market really suffering at the moment. Coming up later, we will hear from the nyse president , stacey cunningham. Volatility, Circuit Breakers, is the market functioning . This is bloomberg. Guy from london, i am guy johnson. Vonnie quinn in new york. This is bloomberg markets. There british Prime Minister early this morning confirming he has tested positive for the coronavirus. The Health Secretary saying a similar thing pay lets get the latest on the spread around the world with viviana hurtado. Ministerthe prime confirming the coronavirus positive and his selfisolating. He is the first head of state, his secretary of health, matt hancock, also testing positive for the virus. Lets take a look at the numbers. Confirmed cases worldwide, the top, nearly 25,000 dead according to Johns Hopkins university. In the u. S. , big headline. U. S. Cases topping those in the original epicenter, china. This is field by a jump in cases in new york state, but public other experts identify hotspots the south in new orleans and in detroit and chicago. With u. S. Business closing and americans laid off in record numbers, how help is awaiting a 2 trillion rescue package scheduled for later today. Over in europe and spain, makeshift hospitals are being set up, as is happening in many virus hotspots. In spain, cases surging, with the deadliest day to date, 769 in one day. In asia, scenes of panic buying in tokyo. That city seeing an increase in cases, and that has pounded authorities to issue stayathome orders this weekend. Confirmed cases also rising in indonesia. New cases may have dropped to zero in china, but it is issuing special sovereign debt. And china is being hit by a coronavirus shockwave, because shipment insulations from other nations that in the beginning of what looks like chinas recovery. And g20 leaders, the chief of the world health organization, urging shutdowns as necessary to slow down the pandemic. He said fight like your lives depend on it, because they do. A grim warning. Thank you. Lets turn back to the markets. Credit markets in particular rebounding. It has been quite a week, but it is starting to turn around a little bit this friday. We are seeing the market getting a little bit wider after tightening up. Bloombergs molly smith joins us to give us her assessment of what is happening here. In some ways, it has been a with the positive week market tightening up again in terms of spread. Friday feels different again. Nevertheless, how important is it that we have seen some degree of stabilization this week . Molly it has really been the story of the week, even though today is a month difference in tone, looking a lot weaker than we have seen throughout the week, but it really started with the fed, earlier this week, rolling out those new measures to prop up the Investment Grade market. The has had positive ripple effects for a lot of parts of credit. It is just beginning to make its way through the system now, so we did see spreads tightening and that ringing a lot of new issuance throughout the week. Hopefully, that is going to carry on good momentum. Vonnie we are seeing liquidity return to some markets, not all markets. Obviously, we have this headline lender riskier mortgage laying off 70 of its staff, angel oaks. D into spain more of that . Isly the share market feeling the pain. Of it started with treasuries and mortgages, some of the more liquid, deeper markets. It will take its time to work its way throughout credit. We have seen a few downgrades. Ford is one of the names that stands out. Is there any pressure on rating agencies to lay off a little bit right now . Get a massives we bunch of companies that are right at the bottom and of the i. T. Space, bottom end of the bbbs, getting pushed over the line, as a result of which we end up with a cascade as these companies are pushed into the highyield market. Is there pressure on rating agencies to take their time and maybe take a more considered view of what is happening not just right now but may be more in the mediumterm . Molly that is exactly what i am hearing from investors right now, that credit raters, their job is to see credits go through a cycle. That is how they describe it. It is tough now, if you can call what we are going through, this global pandemic, a cycle now or fit is more of a shortterm, acute shock to the economy. You cannot discount how intense the stress is, especially for industries travel and airlines especially. But when you look at retail and restaurants, that this is fundamentally changing their Business Models or if this is a nearterm hit to demand, so that is where i think investors are feeling frustrated now with the ratings and how fast they are coming. Vonnie thank you for contributing molly smith of bloomberg news. Now lets bring in david westin. He has a special guest. S p has been going up the most one day and one day since 1933. At the same time, they are headed towards the lowest and biggest loss since 2008. One of the people responsible for making sure markets function correctly is stacey cunningham, president of the New York Stock Exchange. She joins us over the phone now. Then he asked the most basic question on peoples minds are the equity markets working . How do you put price to earnings when the companies themselves have no clue what the earnings will be . Stacey the markets are functioning properly. There is uncertainty around how the situation will continue to evolve, what the impacts, shortterm and longterm, will be on the economy broadly. But markets are always operating with some degree of uncertainty. It just happens to be higher than normal now. It is important to recognize they are functioning properly. Very different from whether or not we like the prices or whether or not we think their prices are reflective of where the economy is going. The market does not actually reflect the strength of the economy, it reflects public sentiment about the strength of the economy. It is reflecting how people are feeling, and that is why we are seeing these moves. David we are seeing an enormous volatility now, but is that Market Sentiment you referred to, is that really a matter of where we think earnings will be or whether we think these companies will make it or not . Stacey it is a reflection of how people are feeling about those things. People are not sure what the impact or their owner of nash overall personal Financial Stability will be, what the ripple effects that will have on the economy might look like. How some of the Larger Companies have had traumatic exposure to coronavirus, the effects of the coronavirus, certainly how long it will take for them to recover from all of those things. Like i said, the market is not pricing all of that in, but it is pricing in how investors feel about that. The situation is evolving so quickly. Every day, we learned so much more. Each day feels like a week on each week feels like a month. We are quickly evolving the situation is so rapidly evolving that i think people are reacting to new information by the minute. Times where the market does not function like Circuit Breakers, where they shut down so people can cool emotions. Have you considered suspending the market for a longer period of time . Some have said lets just take a hiatus for a few days. Stacey we are absolutely not considering that. It is important that we even stop the dialogue around it, in my opinion. The fear that markets may unexpectedly close is enough to put selling pressure on the close. No one in a position of power to make that change is talking about that. No one is going to the exchange level. The exchanges feel the same way. The treasury feels the same way. The ftc feels the same way. There is a good reason for markets to stay open, because investors need access to their money. It could lead to an increase affect of panic on the market if you shut down the market. The reason why we have market white circuit records is because they are a response area they are a wellkept elated, well studied implemented response we took in reaction to the 1987 crash so that we would be ready for a scenario, should it arise again. We do not regularly use them because we are not regularly in that state. But we have used them four times in this month to date. That is our back is him agreed, when he had time to think about it and have a rational approach. The decision was you cannot close markets, but lets pause them. Investors get 15 minutes to understand what is happening, take a deep breath, assess the situation and react appropriately. Circuit breakers have been functioning the way they are intended to function. Closing the markets would be the wrong thing. It will not change underlying concerns. That is putting pressure on the markets itself. Ofwill have the likelihood panting up more selling pressure during the market closure, and it denies people access to their funds when they need it most. So certainly, that is not being considered. David are you happy with Circuit Breakers and the way they have worked . I recall, in 1987, when it was imposed will you rethink some assets of the Circuit Breakers in the coming weeks . Stacey yes. Every time we have a market event, we go through the postmortem process of saying what do we learn and what can we change so we can further enhance markets . Resultedt postmortem in the market white Circuit Breakers. When they were first introduced, they were introduced by the brady commission, based on the dow jones and not s p 500. They are based on points and not percentage moves. But now we have the s p 500 and asked to be based on a 7 move on the market. We will absolutely, after we get through this, take a step back and say what have we learned and where can we further make changes . I expect we will change some of the levels raised on the stock for the futures for the s p 500 index that end up in a limit state at 5 , where you lose some of that transparency. In the meantime, we have been leveraging the s p 500 etf as a proxy for what that market would have been doing if it had not been limited to a 5 move. That goes to the types of things we will take a look at after these events and see if there is further room for improvement. David you mentioned the u. S. Government what kind of communication is they are back and forth between you and them on a daily basis . What are you telling them . Stacey we have had exceptional dialogue with regulators, with government at the city, state, and federal level. Everyone is very constructive, looking at ways that can make shortterm stages changes to be helpful. They have been helpful not just for exchanges but also for Companies Navigating this period of time and making changes there. The government has been very focused to make changes that are needed right away. We have seen that with the stimulus package, with the actions the fed has taken, and we have had constructive dialogue on making sure we can do everything to keep my kids as resilient as possible and maintain a certain level of investor confidence, even though the prices are startling. David this coronavirus has market in a stock direct way. You had to shut down the Trading Floor for a short period of time. Tell us about that. Stacey we operate five different exchanges, five different exit equity exchanges and three option changes. Three of those eight, the New York Stock Exchange and the options changes have tradings floor. Added thehree markets eight have a combination of both people and technology. Given the nature of the outbreak and the nature of the spread and its impact on new york city in particular, we made the Division Decision to close all three Trading Floors. That means we continue to trade electronically on those market so it is not disruptive to markets, but you lose the Human Element. That is the decision we took monday. We do not have an end date on when we will reopen Trading Floors, but we will do it as soon as we can guarantee people are safe. David is it possible you never go back to the Human Element . Ive heard people say the Trading FloorHuman Element is outdated. Stacey the reason why we keep Trading Floors is because of that layer of human judgment leads to Better Outcomes and prices for investors. We have seen that in the data from this week, that the market quality is not as good as what it is when you have people involved. That means spreads get a little wider, which costs investors a little more money. Theave a unique model at New York Stock Exchange where every Company Listed on the extent has a market maker that is assigned for overseeing their stock, trading in their stock. Onse are the people standing the Trading Floor that you see on tv all the time. They are doing that function remotely, so we actually still trade better than markets that do not have that kind of responsibility, because those Market Makers are still using algorithms to trade them even though the Trading Floor is not there. But it is not quite as good as when they were doing that live. You get the benefit of dampening volatility. It is even more outsized when the markets are volatile. Which is part of why we were so determined to keep the Trading Floor open at first, because we really wanted to make sure that we were providing doubtful level of service to investors when they needed it most. It just became clear it was more about safety at this point as of the virus was progressing so quickly. David thank you so much for your time. Obviously a very busy time. Stacey cunningham, president of the New York Stock Exchange. Vonnie david westin, thank you. Fantastic interview. David will be hosting balance of power coming up at 11 00 eastern. This is bloomberg. Vonnie this is bloomberg markets. You are looking at the principal room. Coming up, we hear from thomas piketty. This is bloomberg. Guy live from london, i am guy johnson vonnie quinn in new york. This is bloomberg markets. Time for our stock of the hour. Lets get the details with dave wilson. Dave thanks. I am here to talk about the chip equipment maker when research on a day when you see a lot of stock fall. Lam research doing well. Shareholders are coming out ahead. This is stock that has fallen 45 from a high in february through last week, this week going into today up 39 . That was the most in any four since october lam 2002. Now you have analysts coming out buysuggesting investors the stock area Deutsche Bank was one of them. Ubs lifted shares all the way from buy to sell, what they call a double upgrade. Ubs was the only firm that was recommending investors sell lam shares. A double plus with the two firms coming through. Deutsche bank, they are talking about seeing room for the stock to move higher, even after this weeks rally. They figured, there is a Chip Industry Research rebound coming. Chinese firms getting up to speed after coronavirus swept through that country. They figure lam is well positioned for a rebound in the industry and that the memory chip area in particular looks resilient. These are not the only firms that got raised, the only chip equipment stocks. Deutsche bank room moved up its rating on teradyne. But they did not get the double upgrade that lam did from ubs. Vonnie dave wilson, thank you for that. You can always charts and so on at nywilson. Speaking up, we will speak with the wto director general at 12 00 p. M. New york time roberto azevedo. This is bloomberg. Live from new york, i am vonnie quinn, along with guy johnson in london. This is bloomberg markets. Time for futures in focus. Ofey sick, Vice President calamos investments, joins us sac, viceoe cu president of calamos investments, joins us over the phone now. Oil will be challenged to the upside. We are already hitting capacity levels as far as what we can continue to store. If the saudis continue to pump, as they are, and you see the russians also, this will be a challenge soon. Vonnie where could we settle . Where does this and . Joe this is true demand destruction, one of the rare areas of the market where you can say, because we have such an enormous glut, before we got to this very situation, at the day, you could see 10 to 15 oil, and it could happen in quick order, especially if the saudi continues to pump at this level and you see we have no more capacity to store. Vonnie what are you seeing at the cme in terms of development of coronavirus . Where are people clustering in terms of what they are willing to trade and what they are willing to hold . Joe as a hedged equity strategist, right now, the biggest thing is people are saying where can i stay safe, if they were not already positioned. We are having overlays against our equity positions. Right now, people are looking at the dollar. You have seen strength continuing their, you continue to see the treasuries, and if you are going to nibble, if you have cash, one of those fortunate people who have cash, you will be looking at selling way out, potentially, so you are not catching dropping knives, so to speak, in this market. Vonnie there such a volatility in this market. Are there volatility traits you can put on . Joe you have to be careful about volatility and trading it out right of a weather in the vix or in the vix options. I have not seen volatility trade sincese sustained level 1999. If youre going to nibble, you need to structure in very small levels of short puts in equities or markets where you see the opportunity to build into positions where youre willing to buy it. That is about all i will be saying right now. Other than that, selling some calls to take advantage of those out of the money big premiums. Stuff you may have heard as discontinuation this continues. Vonnie joe cusick of thomas investments in chicago. the european markets what a week it has been. Lets look at numbers. We got that friday feeling today. Not taking much risk into the weekend. The oil pricing you were just talking about having a meaningful impact on the london market. Stocks like bp trading sharply down to the downside. Hsbc also under pressure. Up next, balance of power. This is bloomberg. From bloomberg World Headquarters in new york, i am david westin. Power. To balance of the 2oing to start with billion package. Lets go to kevin cirilli. What is the deal . Anticipating to go through procedures to have the vote sometime within the early afternoon or evening. I am told in consultation with the house sergeant of arms and the decision, they have tweaked some of the voting procedures. Members are only going to be able to enter into one door. They have scrubbed the entire vicinity, lawmakers are going to use Hand Sanitizer before entering. A host