Romaine we will pause here and take a quick check of what is happening in the market. Royal caribbean down about 13 . Expedia, sabr moving lower. Nasdaq, the s p, and the all up more than 3 on the day. The russell rising about 2 . Semiconductors up about 4 . Some of the software and software services, the indexes that track those, up pretty strongly. The restaurant names, a little bit of a bounce. Still seeing some software financials. The treasury market, we came into the day, we saw some significant buying. 610 10 basis points basis points across the curve. As we got closer to the close of equity trading, we started to see a selloff in training. I guess you can sort of piece it together, rebalancing, whatever you want, and you can kind of draw a line to some kind of Risk Appetite returning to this market. Scarlet joe mentioned there was this measure of calm in the markets. Volumes down dramatically. The s p and dow off about 20 from the 20 day moving average. Really highlighting what you were saying earlier about this he resense of calm. Joe it is weird because s p 3. 3 , health care names leading the way. Remain mentioned software. Microsoft up 7 . People might be looking at this current world workers are living in and realizing or reminding themselves once again just what a software dominated world this is. Many structural problems. From a sectorial basis. As you mentioned, bottoms are a problem. Monthst took several with lehman and the stimulus before we found a bottom. A large margin for error so even if there are months before the bottom, this will be a longterm good place for them to have bought in. Done in thishave pandemic panic is to first cut our risks. We were defensive before this even started. Here in the u. S. We continue to think the best market to be in. Durable franchises that you know will come out the other side of this when it ends. Consumer staples, health care, select areas of tech, we really like those. ,ith all this working from home nesting from home, that is positive for a lot of the software companies. Microsoft at a high. Consumer space, walmart and costco, they are well positioned with price products, great ecommerce. Will increase the working from home will increase the demand for services. There will be less card swiping. Once we come out of it, the duopoly nature of their businesses will serve them well. Health care. Testing, not only for china, inationally, in think these will be good places. Scarlet i have a question for you about clinical leadership. We have seen President Trump be consistently inconsistent when it comes to this approach of this virus and pandemic, whether it is supporting social distancing or reopening the economy. Is this a risk for the market. At what point does the Political Leadership for absence of Political Leadership become a risk for the market . Tom excellent question. I think when you need to do is remember this is a time of war. World war i, at , there was a lot of arguing going on. Crystallized where we stand right now. You have the fed all in. Everybody is fully engaged at this point. That thewe know is going to work his way through the economy at some point. There is concern about some of the pain out there in what has been described as the lower rungs of our economy. Many folks will not be able to make rent payments. Many folks do not have paychecks coming, are part of the gig may not qualify for unemployment. Do you have concerns that this shortterm pain could have longterm ramifications when it comes to the recovery . Tom that is such a key point. I see positives. Mailing out checks to consumers is a plus. Plus, the expansion of the definition of who can qualify has gone way wider than it has in the past. Prevente also bills to evictions for 20 days. Protecting the consumer, giving them money, giving them support, helping with loan forgiveness so they do not choose to shut down, so they can deferred their taxes to next year, all of those things could be a powerful combination to protect people at the lower end of the income scale. Tom galvin. Nks to that does it for the closing bell. Whatd you miss . Is next. We will be talking about the Coronavirus Impact on state and local finances. This is bloomberg. Romaine broadcasting live from new york to our viewers worldwide, this is whatd you miss . Alongsidene bostick scarlet fu and Joe Weisenthal. Scarlet bonds rising, the dollar rising, oil falling. For stocks, a quiet, muted day. At sessionsing highs, pretty much. A lot of this is because there seems to be a unified message coming out of washington, social distancing for longer. President trump abandoning his plans to return life to normal before easter next week. Hel at least the end of april. Joining us, josh wingrove. Acounted the president doing 180 at least twice between this mission between dismissing the virus and taking it seriously. Who among his advisers does he listen to when it comes to the virus . Been a veryauci has prominent physician, but at the same time, you have a lot of people accusing him of undermining the president and essentially tormenting him on twitter. Josh it looks like fauci and dr. Birx, they pretty much convinced not only the president but the whole task force. Asically, the data just told convincing story. It whatever0, call you want. He ramped it up a few weeks ago with those guidelines. Yesterday was another ramp up where he tripled the length of them. It does look like the doctors are getting to him. Vice president pence and other members of the task force were in agreement that is just too early. Some of the places that do not have reported cases, it is unclear whether they do not have cases or if we just have not found them. The scarlet asked you about pivoting on the general assessment about health and social distancing. Relationshipe between trump and various governors . Sometimes, it seems like he is frustrated with his native new york. Getting avernors better handle yet on how to work with this white house and the Coronavirus Task force . Josh it is a great question. One of the governors we have seen more prominent in recent days, governor desantis. He is a prominent trump ally. Up until now, the states that are worst hit our democratic governors. Cuomo, theed governor of new jersey also, the irf the governors of this and Washington State in particular. He has made it clear that he cuomof not raise has been trying to walk that line. Are still seeing these caseloads rise. These governors are in need of masks. Has substantial shortfall of these supplies. That is why you have seen trump to fit in recent days, taking aim at gm and others to spur making of these things. Some of the governors walking the line, i guess trying to save the lives of people out there, we had this stimulus package make its way through congress. We have heard from congressional leaders that there is basically zero chance that there is any fourth phase of this stimulus being passed prior to easter. Is there any sort of push by the white house to try to negotiate, the same way we had Steve Mnuchin out there locking shoulders with nancy pelosi . Is there any chance we see the same kind of cooperation to get anything done on a phase four bill . Josh yes, but i think they are trying to roll out the phase three. I think we will see continued challenges in getting that money out the door. Can alleviate that supply stuff. For everyone sort of playing ftse with the idea of a fourth bill, but it is not imminent. I dont think we should expect it in the next few weeks. It is not clear what is in it. It is not clear whether we have seen the peak around easter, or if cases are still rising. Scarlet josh wingrove, thank you so much. Homeeveryone working from or doing rubber learning from or doing Remote Learning from home, we are all sick to death of staring at screens. According to amazon, the top 10 things shoppers searched for paper,d, yes, toilet hand sanitizer. But number seven was jigsaw puzzles. I spent a good heart of my a 500 putting together piece puzzle and then complaining that i picked the wrong one and should have done another one. Romaine you do that every weekend, scarlet . That is interesting. We have a lot of them. It will take as a while. It takes us about one month. Good, at least through the end of this apocalypse. Great thisk it is wholesome, doing puzzle stuff as a family. All my free time is spent looking at my phone, looking at the news, then picking up my phone and being proud of myself that i can put it down for five minutes. I hope to one day join you in your ability to have some sort of Mental Health time with the puzzle but i have not gotten there yet. Romaine you have to try it. There is a whole world out there beyond twitter. Program, next on this we will take a serious look at a serious issue. The looming budget crisis around this country. This is bloomberg. Joe states including nevada, new jersey, ohio, pennsylvania, michigan already announcing spending cuts as the coronavirus outbreak hits state coffers. From joins us massachusetts. This really feels like it will be the next shoe to drop in this crisis on the economic side. Give us a sense of how what we have seen is battering state and local finances. Brian thank you for having me. Reportseeing alarming starting the last week or two, and continuing to grow, municipalities and states, suddenly coming up on budget with no revenue or significantly reduced revenue. We are already seeing some of the smaller and harder hit towns land off municipal workers. Like ohioing states is tellingnor dewine administrators to prepare for budget cuts. Comingery, alabama, a 10 budget cut. Theously, new york is both outbreak, andhis Governor Cuomo speaking in pretty of elliptic tones about their revenue pretty apocalyptic tones about their revenue situation. A state and local level, all of these layoffs in a short period of time. Say we were to get a second half recovery, is the nature of these things that hiring would be rather slow . Is an given that this unprecedented situation, i dont want to draw a onetoone comparison. But, it took a very long time for states and localities to staff backup to the levels they were before. And, as we saw with those teacher protests, wages in particular were very slow to catch up. Joe you bring up the teacher protests. Reaction topart a the first time in almost a decade, teachers and employees saw that the labor market was tight enough that they had some bargaining room. Brian that is true. Are goinghose raises to be probably in danger. Ofnow there are reports out woninia that a just spending increase is going to be something they will take a look at. Avoid really trying to that scenario, which is why we need massive federal aid from both congress and the fed going forward. Joe we spoke to one of your colleagues at employee america about what the fed can do, backstopping munis. What would be the way for the federal government to bolster state and local governments, the best way . Brian there is no substitute for direct aid. If we do like the fed is doing. But there is no substitute for just direct cash infusions into state and missable pledges to prevent them from slashing workforces and Services Just when so many people are going to be dependent on them so much more. That is why we need that aid. Aid forn it comes to state and local governments, when you look across the country, is this in your view going to be a red and blue congressional crisis alike . Such that there is the possibility for some agreement across the aisle for aid to local governments . Brian obviously, that is going theepend somewhat on what rest of it holds. But i think there will be plenty of red state governors, blue state governors who will be pushing for federal aid. Georgia just passed a budget on the 12th that already is having issues. Or they are already concerned they will have revenue issues. I think this is something where you will see governors from both sides of the aisle make a push for this. Joe thank you, Brian Nichols at employee america. Coming up, slumping after hitting an 18 year low. We get the latest on the price war as President Trump inserts himself in a call. Scarlet lets check in with Mark Crumpton for first word headlines. Mark new numbers released in italy showed a slowdown for the number of new cases and the number of people cured. Organizationsh emergency chief says cases in both italy and spain are potentially stabilizing. At the same time, the agency warned it is not time to let up on tough contained edgers. New york state tough containment measures. New york state death toll above 1200. Governor andrew cuomo announced 253 new fatalities today but also said the rise in confirmed cases is slowing and the hospital discharge rate is slowing. New york is the epicenter in the u. S. Of the outbreak. German chancellor Angela Merkel tested give for the virus tested negative for the virus for a third time. She will however remain in quarantine for the next three days. She has been selfisolating since learning her doctor tested positive for the virus eight days ago. Israeli Prime MinisterBenjamin Netanyahu will go into quarantine. He came into contact with an aide that tested positive for the coronavirus. Netanyahu and his staff will stay in isolation while they await the results for their test. The city of wuhan, where the outbreak began, is taking steps to return to normalcy. Some shops opened their doors today for the first time in two months. Some limited how many people could enter. Wuhans bus and Subway Service has resumed. Automakers and other manufacturers are getting back to work. 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. I am Mark Crumpton. This is bloomberg. Romaine demand destruction and supply saturation looks to push oil down to its lowest level in years. Have seen invel we quite some time. Bloomberg intelligence mati strategist joining us right now on the phone. Is there any real support right now for what we are seeing in the oil market . Mike i think it goes back to the key level that really. Atters for Wti Crude Oil on the year is down almost 70 . This would be its worst year ever. It has a good reason to be down. Around already, dollars, that does not matter much. Lowsis basically the old from 2008, 2013. If we drop 10 from here, that is significant deflationary implication. Scarlet one thing that comes up over and over again, people are describing the oil market is broken. From where you sit, what does that mean . And when with the last time it oroken or is broken this broken . Reallyroken, i dont subscribe to that. We know this is a pretty significant global recession. You look at bond yields at the lowest level ever. Me, this is a really appropriate level for crude oil to be. War between saudi arabia and russia is really reflective of a lack of demand and lower prices. Somewhat fixed, meaning it goes back to where prices belong without a cartel fixing prices. You want free and true markets, and i dig we have gotten there in crude oil. Is clearerthink it than the past. Behind that market, you have industries built on 40, 50, even 80 a barrel oil. If you look at the market, do you see this as a sustained or will this be something shortterm and we get a little bit more of an appreciation in value, or at least appreciation in price . Mike i think sustained is the right answer. I thousand eight, it dropped to around in 2008, it dropped to around 30. The difference now, the u. S. Is a net exporter. We have decarbonization. I drive an electric car. , i dont think it will pick up to where people hope it will. 10 is a long shot. I look at it as 20, i think it will settle in and hang out here for a long time. Mcglone ofke bloomberg intelligence, thank you. Health care, the best performers in the s p 500. Johnson johnson said it would be committed to providing one million vaccines worldwide. He expects the first batches to be available in early 2021. We are very hopeful as we look at our early data which in these cases tends to be quite correlated with what we would expect to see as we take this into human testing later this year. We need to complete other trials. At the same time, we will be ramping up production. We love global production, both in europe and the United States. We hope to be in a position by the First Quarter to have a much better perspective on the vaccine itself, on the kind of quantities. Our goal is to have hundreds of millions available by that time. Obviously to work with regulators around the world to figure out where the coronavirus is to make this accessible. Of what thatsense Testing Process is. Are there certain things that can be done to expedite . Sense is that regulators in the United States and around the world, other government authorities, are doing everything they can to expedite this. At the same time, we have to make sure we gather the safety data that is so important. In this particular case, we are working with platforms. Looking at parts of a vaccine where we have significant sars,ence in things like ebola. We are confident in the safety data so far. It has been used in elderly, used in younger children. Aat gives us confidence from safety perspective. It also indicates that we should have an active vaccine as well. Trials to complete the in the Fourth Quarter before we develop the final data set for we make the decision at the appropriate moment. If you are successful in the Fourth Quarter, when what we have a vaccine available for people . Intend to work with regulators so that by late december, early january, we would have interim analysis. At that point, we would have to look at that data set in its totality. We would look at, how is the virus proceeding, what kind of state is it in around the world, then make a decision. At some point in the second quarter, we can make a decision on an emergency basis, then we would expect that to ramp up over the year. Could you get, how soon if in fact it does work . Alex to have a vaccine to work twoctively, it takes components. First of all, it is demonstrating efficacy and safety of your vaccine. That is something we are working very hard on as we speak. Ine of our trials will start september, Additional Data to ie certain volumes in quality. Capabilityoduction where it gives you the ability containersely small to make very large volumes, in the hundreds of millions of doses. Do toll have more work to determine the exact yield of these technologies and care that versus the safety at efficacy data. Based on the work we have done, we feel quite confident that we can be in the range of hundreds of millions of vaccines as we would move into the early part having, with the goal of a billion in place by the end of the year. Scarlet the ceo and chairman of there. About a dozen schools dropping sat or act requirements for students applying to college. This is a move that could change the makeup of the Net Generation of students of the next generation of students. Ey, former, anna iv dean of admissions at chicago law school. This shows how schools are adapting to a new reality, that some schools may not be able to field a freshman class and survive this disruption. What kind of schools are most vulnerable . Thinkmost vulnerable i are the vast portion in the middle. , some schoolsn will continue to offer the wonderful experiences with wonderful amenities. On the other end of the delivery system, there are a couple of schools that have already mastered online education. Those might the ones that are left standing. You havethe middle, all the schools that were already in a precarious situation before the virus hit. Whether they will make it in the long run, i dont know if all of them will bake it. Behink some of them will victims as well. Scarlet what does coronavirus mean for tuition . No one knows if international students, especially those from china, will be able to get student visas . Those are the stud that subsidize the domestic students who cant pay the full sticker price. Afford thes who can full price, who wants to pay when you can see you can go online . I think there are people who view college has more than an education. They want this comingofage experience. They want to be meeting people outside of the classroom. For most, that is a huge luxury anyway. Now these classes are online, knows how quickly they will be able to come offline again. For students stuck in the online world, are they going to be willing to pay those high ticket prices anymore . Unclear. For a lot of them, they are not getting the package of what they were expecting for that college experience. We learned that some colleges are loosening admissions standards are dropping versions, university being one of them. We know this has been a trend for a while, universities trying to wriggle out of using the standardized tests as a marker. Do you think this could be the thing that sort of accelerates this trend and forces colleges to think how they vent students students andey vet accept them . A trendat was already before the virus. Now, getting them all online in a secure way will be hard. Trust if you want to trust those scores, you have to believe there is confidence in place for these athome testtakers. I dont see it as wiggling out or lowering standards. Those tests have been under criticism for a long time. It really just shifts the burden on other parts of the application. I dont know they are necessarily loosening standards. There are a whole group of students for whom test optional will be a huge relief. Maybe they will come back. The University Says they are doing a pilot, they are only going to do test optional for two years. Who knows . Aey might never make it requirement again. Scarlet this has implications for the testing economy as well, all those companies that dole out tutoring advice for the sat. How are you advising your clients . High school seniors, will it be easier to get off a waitlist . High school juniors, were supposed to be in the thick of their academic careers. What does this mean for how they prepare for the College Admission process . Anna for the people planning to Start College this fall, i expect a lot of this summer on the waitlist. Right now, enrollment managers at these colleges are facing a nightmare scenario. They have no idea who will show up this fall. All of the modeling they usually do, all of that is out the window. Be a lothere will still over the course of the summer. I dont mean to suggest the virus is a good thing to students. But anyone on the waitlist, hang in there. I think anything is possible this summer for students who will be some adding applications. I would say, stay the course. Keep prepping for the test. I dont think we should assume they will all go out the window at the same time. Keep plugging away. Nobody has that crystal ball. We dont really know what the whole landscape is going to look like. Stay the course. If it turns out you dont need that, fantastic. Romaine anna ivey, we appreciate you giving us your time. Get a check on the headlines. Abbott lands, the company unveiled a coronavirus test that can produce results in basically five minutes. The medical device maker says it plans to supply 50,000 of the tests per day beginning this week. The test is small and portable which means it can be used by pretty much any health care setting. The food and Drug Administration givenven habit has abbott approval. Banks suspending Dividend Payments on earnings. Pressure to retain capital amidst the coronavirus turmoil. Banks, the ecb had asked to delay those payouts until at least october. The ecb said it would be socially responsible to continue paying dividends in the time. Jeffrey financial says the longtime chief Financial Officer from complications of the coronavirus. Roadbent was with the firm since 2007. Before that, he spent 15 years with morgan stanley. Thoughtsof course, our are with him and his family. Below up, the vix closed 60 for the First Time Since march 11. We are going to check in with Joe Weisenthal to get his take on the vix. This is bloomberg. Romaine broadcasting live from new york to our viewers worldwide, i am Romaine Bostick alongside my cohost scarlet fu and my other cohost, Joe Weisenthal. All of us keeping our distance physically. We have Joe Weisenthal telling us what he is keeping an eye on. Joe we were talking earlier about how i did feel a little bit quieter today. Scarlett mentioning just before the break, the vix closing just before closing below 60 for the First Time Since early march. We have a little more data to wrap our heads around. There were a couple of weeks here and there where people thought they were flying blind on a lot of things. The testing, the policy response comes economic response. Policy response, the economic response. We dont know yet what the future will hold but we are getting something to sink our teeth into. Scarlet volatility has become kind of its own asset class with bedding and trading on it on its own. For so long, there was no volatility. What does the vix futures curve look like . Just shorting, volatility has been the trade. Just directly shorting volatility. Seeing those positions washout. Normalishness coming into the market. Forlet we are all looking some sense of normalish in real life. That does it for whatd you miss . This is bloomberg. Shouldnt you pay less when you use less data . Now you can. Because Xfinity Mobile gives you more flexible data. You can choose to share data between lines, mix with unlimited, or switch it up at any time. All on the most reliable wireless network. Which means you can save money without compromising on coverage. Get more flexible data, the most reliable network, and more savings. Plus, get 300 off when you buy a new Samsung Galaxy s20 ultra. Thats simple. Easy. Awesome. Go to xfinitymobile. Com today. Emily welcome to bloomberg technology. I am emily chang live in san francisco. Arkets rebounding on hopes of vaccine candidate. Tens of thousands of Rapid Response coronavirus testing kits about the market. President trump extended social distancing guidelines for at least another month. Health experts around painting a dire picture of what is ahead