Taylor really seeing some big gains on the s p 500. This is the second straight monday where we have seen big gains. All of the monday before that going to march 2 posting big losses, so a relief that you are seeing some gains come in. Small caps are doing the best. This is a barometer of the u. S. Economy. Some hope, given new york city fatalities have perhaps started to level out, that the economy can get running again. There is some hope in the russell 2000. The riskiest of all sectors, the stocks index, many of the chipmakers get the revenue from china, also the biggest performer of them all. Take a look at the vix. 44 handle. This is the lowest going back to march 6. Finally, i want to look at some of the individual stocks moving today. A lot going on underneath the mes. Carnival is up 26 after a Saudi Investment Fund revealed a stake in the company. Ulta beauty rising 26 , added to jpmorgans focus list. Ulta beauty is one that jpmorgan is liking today. Nvidia, chipmaking stocks rising. Bank of america highlighting gaming and the crowd seeing a boost. Finally, a company that we all know, zoom video communications, falling today. Credit suisse downgraded them to underperform from neutral, saying the boost that they have been getting recently could be shortlived. Vonnie thank you for that. One part of the market lower today is oil. Brent and wti falling, even as opec nations raising to negotiate a deal to stem this historic price crash. The g20 is also taking center stage in an attempt to bring in the u. S. And other energy producers. The Energy Secretary holding a discussion with his saudi counterparts. President trump yesterday addressed the possibility of tariffs to stem the price. I would do substantial tariffs. We are independent now, we have our own oil. I would use tariffs if i have to. I dont think i will have to. Vonnie joining us now is Rebecca Batson at cibc private rebeccagement badin at cibc private wealth management. Is this another way of distracting from the immediate problems . Or ist weeks tweet, there truth to the fact that he may tariff . These countries thank you for having me. The market is interpreting tariffs as a little bit of an empty threat. That ison i say essentially the u. S. Imports about a Million Barrels from opec at this time. It 400,000 barrels from saudi, 100,000 from russia, 500,000 from kuwait. It is not a huge number, they actually import a lot more from canada and mexico. The idea that tariffs are going to be meaningful as part of this negotiation might not have the bite that trump is looking for. Vonnie does it indicate anything about how the negotiations are going . If he is throwing out empty threats, does that mean that he doesnt know exactly where we are in negotiations . Rebecca i dont think that. If we look at his negotiating tactics over the past couple of talk, he starts with big and then reverses, comes in with some sort of caret, stick, and then at the end of the day, you get something less than what was originally promised to just enough to get the deal across the line. I dont think it is necessarily an indication that he not committed to moving in that direction, but i think he is moving that way very delicately. He has to balance being a free market component, which he clearly is, but also supportive of an industry that our country needs and is proud of. He is trying to walk that fine line and we have seen him play this game before, where he comes up with a big statement, locks and that, says something negative, and we end up somewhere in the middle of that. Pressure areuch russia, saudi arabia and the rest under pressure to come up with a deal, assuming there is a deal on thursday . Rebecca a lot of pressure. No doubt about that. At 26. 50, brent trading at just over 30 is really devastating to both saudi arabia and russia. Saudi arabia has more Storage Capacity than russia does, so they might be a little bit better off, but they are under a significant amount of pressure whenlk back what they did they started to say that they would have a price war and go after market share. I think there are pretty high stakes for this deal to come together. Idea, is entertaining the brazil has wanted to participate. I think the g20 aspect of this is also a key factor, as we look toward a potential success of the deal. Deal, if we do get a what could we see happen to the price of a barrel of oil . Rebecca great question. I think it is pretty widely known that a deal come even 10 million a day, will not be enough to offset the demand destruction. What it does is support the crude price and supports a crash down into the Single Digits or team, which is where many analysts see crude going if we fill tank tops. I dont think it will be the headwind that rallies crude back to 40 a barrel, but it provides an orderly mechanism for the commodity market to adjust to this demand profile, this demand shock we are seeing due to the virus. Somelizes, maybe cause of shorts to cover, maybe about 30, but i dont think it will be a huge done when. Vonnie so at that point, will there be a call for even more cuts, this time from maybe u. S. Producers . Rebecca there is going to be a call for u. S. Cuts from the rest of the world, if everyone is signing on for cuts, they will want the u. S. To go along. It will be difficult to achieve that. As we saw last week from the Texas Railroad commissioner, he was on board with participating in some cuts from texas. Producers,been some parsley energy, pioneer, have said they would be on board. I think those calls will continue, i dont know if they will materialize. It is very difficult for u. S. Producers to get onboard with that, given the way our system is set up. Vonnie what will it alleviate the glut . Obviously, this has been exacerbated by the coronavirus, but even when we have the restrictions lifted in some states, will that be enough to undo the glut . Rebecca it is going to take demand coming back and stabilizing. It will take time. It is going to take some from this event to continue to work through beentories for the glut to back to normal levels. I think it takes demand, it takes time, and it takes a constrainedoduction from some of the producers. Vonnie thank you for joining us today, we appreciate it. Rebecca babin from cibc private wealth. More on the markets, next. This is bloomberg. Mark im Mark Crumpton with bloomberg first word news. It is back to feuding on capitol hill. The unity that led to the coronavirus rescue package has apparently come to an end. Now the partisan fingerpointing is threatening new steps to eat the economy. Nancy pelosi says president trumps slow response has cost lives. Mitch mcconnell says democrats distracted the nation from an emerging threat with the impeachment trial. Its a sign that europes largest operator coronavirus is slowing. Spain report the lowest number of new cases in more than two weeks. There were fewer than 4300 new infections in the last 24 hours. There were 637 deaths, the lowest number of fatalities since march 20 four. Japanese Prime Minister shinzo abe says they will declare a state of emergency for tokyo and six other areas as soon as tomorrow, but there will be no hard lockdowns. The Prime Minister also says his government will launch a 1 trillion stimulus package to fight the coronavirus pandemic. That is japans largest ever package, and nearly twice as much as expected. Global news 24 hours a day, onair, and on quicktake by bloomberg, powered by more than 2700 journalists and analysts in over 120 countries. Im Mark Crumpton. This is bloomberg. Vonnie thank you. Companies worldwide are seeing business fall. Nestle is struggling to keep him at the man as obstacles load of production. The ceo Mark Schneider spoke to bloomberg earlier. This is an unprecedented time. We have seen very Strong Demand at some of our food and beverage products, especially in those communities and countries that have been hardhit. We have three priorities in this period. The first is the health and safety of our employees. If we all stay healthy, we can make a positive contribution. Next, Business Continuity is key. Even under adverse conditions, we are trying to maintain manufacturing of our central food and beverage products. With a presence in 187 countries, it is important to us that we also get the helping hand over and above the call of duty in the communities around the world where we are present. All the Business Continuity. Do you have all of your raw Material Supplies guaranteed . The minute that we saw this crisis spread, we were trying to improve inventory levels at all levels of manufacturing. Inbound materials, work in progress, and also finished goods. Obviously, there was little time. I think less is what is required right now. You do have logistics constraints. Sometimes you have to resort to and sometimes capacity is limited. It is all about managing in a tight way this crisis, showing flexibility. This is what our teams are focused on right now. You actually see the coronavirus outbreak changing Consumer Behavior in the longterm . Longterm is probably a bit far out now. We are very shortterm focused at the moment, to meet demand really can. This is the most essential service we can provide to our consumers. Seeing from china, for example, where there is some improvement, even in the aftermath, there is a Strong Demand for value products, quality products. Maybe a bit less on premium. Given that we are in a recessionary environment right now, that is also a safe bet for these communities, as we emerge from the coronavirus crisis. Based on the demand you are seeing for various products, are you stockpiling any, have you increased production of certain products, like water, coffee, for example . Generally, we are trying to produce flat out in the face of Strong Demand, but keep in mind, logistics limitations are kicking in. Presents asemployee a result of illness or precautionary measures. Protocolsnced safety that we have to run at our plants. We are not always able to give it 100 of the capacity that you would have under normal circumstances. We are working extra shifts where we can, trying to ramp up manufacturing where we can, but keep in mind, this is a challenging moments. Just getting to the normal levels of manufacturing is a pretty Outstanding Achievement right now. That was the ceo of nestle, Mark Schneider. Still ahead, thousands of inmates across the country are being released early in an event to prevent corona virus outbreak. We are joined by an epidemiologist with some expertise at the intersection of Public Health and human rights. That is next. This is bloomberg. Vonnie this is Bloomberg Markets. Im vonnie quinn. Global governments are taking action on response to concerned prisons will serve as a hotspot for the spread of the coronavirus. Attorney general william barr said friday he is taking immediate action to maximize appropriate transfers of inmate suitable for home confinement. In europe, justice ministers met to discuss the best ways to manage the risk of outbreaks in prison and Detention Centers. Dr. Chris beyrer is an equity mail adjust with expertise at the intersection of epidemiology and human health. He joins us now from baltimore. How do you get your arms around the ethics and constitutionality , havingsing inmates them not put themselves and others at risk of a virus already broken out in the prison . Dr. Beyrer the first thing to say is you have to remember that the United States incarcerate more people than any other country in the world, about 2. 3 Million People in our jails and prisons, many of whom are therefore essentially administrative charges. Parole violation, unpaid fees, fines. There may never be a justification for using incarceration as a way to manage those persons, but certainly in the face of the pandemic, it was totally unjustifiable, because prisons, jails, detention facilities are known to be extremely high risk for ofnsmission acquisition respiratory viruses and other infectious diseases. Inmates, itjust the is also the staff, people that come in and out. Most prisons and jails, Detention Centers have three eighthour shifts a day, so there is constant motion between these facilities and the community from which workers come. We are concerned about everybody in a dynamic, including family members, coworkers of people working in and out of jails. I think there is very good justification for saying that people prefer administrative detention who do not pose a threat to public security, should not be in these highrisk environments. Vonnie who is the ultimate authority when you consider many of these is to shins are privately run . Who has the authority to say that you must release any patient who is sick, or is in proximity with somebody who may have the virus, whether an inmate, staff member, or otherwise . Are not juste talking about people who may have exposure who are at risk, we are talking about reducing the prison population because overcrowding and density is such a risk for covert outbreak. Let me make that point clear. In the u. S. , it is a patchwork. There are 37,000 people in immigration detention under ice. They have absolute discretion to release those people. Those facilities we are very concerned about because they are very dense, overcrowded, they have hygiene problems, and they already had problems managing severe complications of influenza last year, before this was even a problem. Ice has the discretion. You alluded to william barr. That is federal. Federal prisoners are under federal discretion. And stateails penitentiaries, particularly jails, are run by counties, run by sure its sheriffs. Many of them are for profit, or managed by the counties, forprofit companies. This is where the majority of people being held on it mistreated charges, things like parole violations, are being detained. It is really up to the discretion of the local level to get those people out of jail. Either way, not to put more people in jail right now during this crisis for administrative reasons, unpaid fees or fines. Unfortunately come in many of the small jurisdictions, this is the way these counties generate revenue, but this is a moment to reconsider whether that is ever in support of human rights, social justice, or indeed, public protection, which it is done in the name of. Pandemic, though we should be going to jail for unpaid fines or fees, parole violations. We need to reduce the numbers of people in detention to prevent catastrophic outbreaks inside, which unfortunately, we saw in wuhan, underway right now in rikers island. Vonnie how do you avoid is becoming a partisan issue . Different when youre talking about jails, ice Detention Centers, at the border, for example. Dr. Beyrer what you would like to think is in a Public Health emergency like this, everybody is concerned, we all have to do what we can. Protecting the people whose liberty we have taken away is a fundamental justice issue, i think, that crosses the aisle. It is in nobodys interest to have largescale prison outbreaks. We have to remember, these people, particularly in rural areas, and particularly true for the ice detention facilities, the people who progress and get really sick with covid disease need intensive care. Many of them end up needing intensive care like respirators and so forth. These counties are unprepared for what would happen if they had surges of patients from these facilities. I think that that has the potential to really be an issue that goes across the aisle. Iscourse, william barr already on the record saying that the feds will do this. I stood tension issues, already hunger strikes and protests underway. That may be the most politicized of all of these issues. But we must remember, until relatively recently, people were not detained, asylumseekers were not detained unless they had a criminal record at all in the u. S. To the need to go back policy of several years ago where people get a court date and are released if they have family members. Vonnie we have to leave it there. We would love to talk in the coming weeks. At johns beyrer Hopkins Bloomberg school of health ehealth. The Bloomberg School of Public Health is supported by michael bloomberg, founder of bloomberg lp and bloomberg philanthropies. This is bloomberg. These days you need faster internet that does all you expect and way more. Thats xfinity xfi. Get powerful wifi coverage that leaves no room behind with xfi pods. And now xfi advanced security is free with the xfi gateway, giving you an added layer of network protection, so every device thats connected is protected. Thats a 72 a year value. No one else offers this. Faster speed, coverage, and free advanced security at an unbeatable value with xfinity xfi. Can your internet do that . 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 ] shery live from bloomberg World Headquarters in new york, im shery ahn. Welcome to Bloomberg Markets. We are joined by our bloomberg and Bnn Bloomberg audiences. The s p near session highs and gaining more than 5 , on track for its best day in more than a week. This amid signs of the pace of the coronavirus spreads may be slowing down. Some of the hardest hit countries recording fewer deaths and new cases. In new york, Governor Cuomo saying infections in the state may be reaching a plateau. What it all means for the markets and the global economy. We will speak at Heidi Shierholz, director of the Economic Policy institute. First, lets get a quick check on the major averages. Taylor riggs is taking us through this upbeat tone in the markets. Taylor a very upbeat tone, the second monday in a row we have seen in a tone. Usually mondays, going back to march 2, most of the major indices have had losses, so certainly feels positive coming into a monday. You are seeing the nasdaq, big tech stocks leading again as well. The russell 2000, u. S. Domestic focused companies, there is some optimism here, potentially if the u. S. Is starting to see signs of a flattening out of the curve, that the u. S. Could get back on track. We are seeing a lot of these domestic focused Companies Leading the gains today on some of that optimism. That optimism is traveling translating into the tech companies. In my terminal, it is about that trillion dollar market cap. We know that what goes down, sometimes it goes back up. Amazon had fallen below that 1 trillion market cap. With all the gains we have been seeing, it is slowly clawing back. The last number i had was 981 billion in market cap, following on the heels of apple and microsoft, which had regained territory as well. Take a look at the consumer, leading the gains today. A few individual stocks we are following. Capri holdings giving an update in response to the covid19 out rate, trying to reassure consumers that they are doing what they can. Ofy are furloughing all their north american staff, trying to see when they can reopen stores. Hilton is another one within consumer services. They are donating about one million rooms to some of the frontline medical workers fighting the virus on the ground. Carnival is also in those indexes. They are jumping after saudi arabia disclosed a more than 8 stake. All of them seeing some big gains. Lets focus on one company, u. S. Ethanol producer green flame stock. Almost a 75 drop in a year. The ceo spoke earlier with alix steel about the factors in treating to the slow demand for cornbased ethanol. We are seeing some areas in the u. S. As high as 85 down, really through nominations, coming down from customers who want our products who actually do not want our product because demand is down so far. It is not just a domestic story. We have seen those customers is really back out of their contracts, calling force majeure, as they say. We are seeing a drop in the product now, and that is wreaking havoc in this industry. You have any visibility into china, where areas have opened up, in terms of what kind of rebound we can expect when things get better . They have bought some corn, some soybeans, but those are not big deals relative to the demand we have domestically for Agricultural Products and ethanol. We really have not seen them come into the ethanol market. It is the brazilians that have started to slow down, but china is sniffing around. Themfar, we have not seen book any of our product, but they need it badly. They could make a dramatic shift on this industry. We think through the trade war and negotiations, ethanol was part of the solution, and we are waiting for them to come back into the market. At this point, we are not seeing them return to the Global Markets for ethanol. Where the industry was before is also the an indicator, when we get to a recovery phase, what it would look like. There were Higher Expectations for a higher ethanol blend. They were talking about more exports, for example, some policy shifts to help ethanol producers. Where is that conversation now . Were already oversupplied the market as an industry, so this industry has a longterm idea that we make more product, we wait for the demand to catch up. The demand has not caught up. Doesnt look at clean air and clean water as much as they do favor of the oil industry, and it is mindboggling. But we are producing a little more than we need every day around the world. Expansion,eed e15 and we need the epa to clear the last hurdles. The president is supportive of 50 ethanol blends. It is really epa that needs to change a few factors and get products into the market. The consumer wants it, it is cheaper than e10, 88 octane. Not want to claim has come after several years of using it on the consumer. That is part of it. Theompete very well with price of gasoline, we have for a long time. Are fighting for sure at the gas tank, it is a battle. ,t is some of the big brands they are still under the old fuel contracts, so its been a hard battle. We are starting to make some progress, but we need that, we need china to come back into the market, and we need to temper our expectations on the supply that we put out there. We need to slow down as an industry, and that is happening right now because of the coronavirus, but overall, it needs to stay that way for a while longer. You say you are competitive with gasoline, but are you competitive at 1. 97 a gallon . Linked toices are energy, as much dont want to admit it. The spread is at record highs favoring crude, so corn, as an energy component, is priced too high. When you think about oil at 25, gasoline at . 70, ethanol is priced too high, and that is driven by the price of corn. As this industry shuts down through the coronavirus, we are destroying corn demand. The ethanol industry is the backbone of u. S. Agriculture. Without a strong ethanol industry, we dont have a strong agricultural economy. We are going to take 2 billion bushels of corn demand off. These prices are so high relative to crude. Can be competitive, it is just a function of the agricultural price structure be competitive with the energy price structure longterm. Shery that was tom becker of green plains. Lets check in with first word news with Mark Crumpton. British Prime MinisterBoris Johnson is said to be in good spirits after spending the night in the hospital, where he is being treated for coronavirus. Blow to thedeals a u. K. As the country prepares for the worst of the pandemic to hit. Almost 5000 people have died from covid19 in the u. K. So far. Scientists say the peak of the outbreak is likely to be in the next week or 10 days. There is a sign that lockdowns in europe may be easing the coronavirus outbreak. Germany and spain reported lower numbers of new cases. The death toll in spain the past 24 hours was 637, the lowest since march 24. Oil has pared its losses today, signs that saudi arabia and russia are making progress toward a deal to curb output. A number of hurdles remain, however. A meeting of the opecplus members is set for cirstea. Russiae, the saudis and want the United States to join in. President trump has shown little willingness to do so. Global news 24 hours a day, onair, 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. In as surging the most week after fears of the economic toll of the coronavirus shows signs of easing. Joining us now is peter kraus, as well as sonali basak. Thank you to peter kraus. I know that you been critical of the active Management Industry for some time, but you also believe they have a chance to shine in this latest crisis. Who will be the winners and losers coming out of all of this . The winners and losers from an active management point of view or the companies themselves . The active managers. What is happening right now in terms of investors being able to differentiate themselves these, companies are challenged in terms of estimating what their earnings will be for the rest of the year. I just finished reading 20 or so companies releases for the quarter. It is pretty clear, number one, they have full guidance. Tober two, they are not able estimate the length of the covid19 crisis, impact on sales, revenues, or expenses. Veryt will take thoughtful, deep analysis to actually understand which companies will survive, intact and with financial strength coming out of this crisis. That is an opportunity for humans to identify interesting opportunities. Very difficult for quantitative progress to do that. Of course, passive does not attempt to. Thatnk its an environment human to have strong analytical skills and Detailed Research abilities can differentiate themselves and produce outsize returns for clients. Sonali hazard management is an area that you been critical of some time. Of this volatility, extreme volatility we are seeking, when we are what are we learning about the passive industry in the face of a crisis when all markets are not going up at the same time . Peter the passive industry itself has seen some differentiation. If you are an investor in a simple largecap passive mutual fund, you have not seen very much tracking between the index in your returns. Theif you are in some of more, we will call them spicier etfs, or those that do not follow largecap securities, etfs that follow bonds, and you found the tracking error between you and the index is quite large. That is due to the illiquidity of the underlying assets, the challenge that etf providers, and the associated persons the trade them, have been keeping with the market. I think the passive industry is now showing what ive been talking about for years, etfs and derivatives will not give you the market return, and that you need to be cautious about what you own. Your point about how difficult it is becoming for investors to assess earnings, how much more difficult does that has to become when the government seems to be so involved in the free markets, telling businesses where to invest, deciding who lives and dies . Peter i think it certainly makes it more difficult. The major issue, however, is not so much the government. I think the government at least the u. S. Government, true are unloved economies trying to support existing businesses and jobs. The major problem is what will happen to the covid19 disease . How long will governments require shutdowns, social distancing, lack of interaction. Isn that social distancing lifted, how will peoples all . Ior change, if at nobody knows the answers to those questions, as to the duration or the impact of behavior. Because we are not going back to the status quo, especially during this outbreak, we have seen more visibility for those lower paid workers, how their importance is growing in the supply chain. Will we see more impetus for wage increases going forward, and what will that mean for the margins of all these companies . Peter that is a great question. You an answer,ve and of course, just a forecast, so take it as such. More than likely, at the outset, when social distancing is relaxed and people can go back to acquiring things, consuming, manufacturing, youll probably see some price reductions, inflationary pressure. Companies will want buyers to buy their products. But as demand comes on and as supply chains get strained, i suspect youll see price increases. Over the longer term, meaning over the next five, maybe 10 years, i think this significant amount of fiscal stimulus we are having in the world will create an inflationary cycle. I lived in the 1970s, inflation got to seven, it percent, im not talking about that, but could see a 10year right now in a 60 basis point range moving north of 2 . That is a significant impact. I also think you could see significant stress in the credit markets. We have talked a lot about the equity markets. You have to remember, this crisis is creating a cessation of revenues to the tune of 50 to 80 in some industries for a period of months. That means fixed costs have to be bridged with debt. That ultimately has to be paid off, or it can sink the company. That is going to be challenging for the credit markets. Sonali really interesting that you say that. I want you to put on one of your older hats, you advised financial institutions, ran strategy for a while. What is the role the financial industry plays here, especially big banks, as we head into more credit market stress, as we head into an area where Small Businesses are seeking loans but many cannot get any . Should they be suspending their dividend at this time . Peter all good questions. Credit to theome developed economies, both the physical part of the economy, and centralbank parts of the economy. Number one, they moved quickly. That did not happen with the degree of rapidity and skies size and scale as it did today than in 2008. The fiscal stimulus was longer to come, and smaller. And fiscall banks organizations have learned from that. The transmission vehicle of getting money into the hands of businesses is still strained. There is no solution for that but time. Time will be in april 2 of weeks. Yes, some companies will go bankrupt because they cannot get money in those weeks, but many more will be able to survive because they will get funding much faster than otherwise. Central banks have been extremely effective in increasing liquidity, reducing capital requirements, cut dividends to bolster capital, all allowing banks to lend more money because they have the ability to leverage their capital, they have more capital, or both. That is all good to reduce the impact of this. Shery peter kraus, thank you for your insights. We have breaking news here in the u. S. Johns Hopkins University data showing coronavirus deaths have topped 10,000. Of course, we know there have been more than 320,000 cases across the u. S. The good news is coming here in new york, Governor Cuomo is announcing the death rate has effectively remained flat for the past few days. Plenty more to come. This is bloomberg. Shery this is Bloomberg Markets. Im shery ahn in new york. Dimon expectjamie Major Economic fallout from the coronavirus pandemic. In his annual letter to shareholders, he said at minimum, we assume it will include a bad recession combined with some kind of financial stress, similar to the financial crisis of 2008. Joining us on the phone now is Heidi Shierholz of the Economic Policy institute, as well as former chief economist of the Labor Department under the obama administration. Great to have you with us. Difficult to gauge what a recovery would look like, especially as we continue to accelerate to contraction. You have a forecast of how we can get out of this . Recoverye speed of the is a place where im much more optimistic about what the situation we are in right now. Absolutely deep, deep recession. I have never seen anything like the number of jobless claims we have been getting in the United States. But once the lockdown is over, i do think we will get a relatively quick bounce back. It is not that people are not dont things because they have demand for those things, or things, itwant those is that we are literally not allowed to go to restaurants, events, many of the normal things in life. There is pentup demand. When the lockdown is over, we will spur economic activity. I do think i have great hope that we will get a pretty quick bounce back after the lockdown is over. That is the big question, how long will the lockdown last . That, i would ask epidemiologists, not economist like me. I dont know. Shery that has been a key question. Lockdowns have been controversial because they are choking the economy, but at the same time, this recession started because of a Public Health crisis, so can you get over it without the lockdowns . What are your thoughts about whether or not you can overcome the impact of the lockdowns . Heidi i do think the lockdown is absolutely essential. It is saving tens, if not hundreds of thousands of lives, and averting a bigger economic crisis down the road. This is what we should be doing, but it is painful. We are shutting down huge swathes of the economy, people are getting thrown out of work, we need the government to really step in and help people make it through this period of where we are putting everything on deepfreeze, so that when the lockdown is over, they will be ok, and we can get out there and spend money. I am very sad about the fact that the United States waited so long to get accurate and widespread testing, which means we have no choice but to do that widespread lockdowns really hurt the economy, but that is where we are. As long as we get relief to people who have lost their jobs because of the virus, so that they can hang on until the lockdown is over, we can make it through this. But it is going to be ugly for a while. It will get worse before it gets better. Shery quickly, will he get back to the status quo once we are done with this recession and lockdown . The concern is the disinflationary shock is so strong it is traveling to everything, that by the time we come back, it will not be the same. Question,is an open what things really will change after this, but one of the itngs we can take heart in is, this was not caused by some structural imbalance in the economy. This was a virus that really came out of the blue, and it has taken our economy to its knees because we have no other choice to shut things down. If we can put things in freeze for a while, and then start things up when the lockdown is over, that can work. That could function. We have to leave it there. Thank you for joining us. This is bloomberg. Is 2 00 in new york, 7 00 p. M. In london. This is Bloomberg Markets the close. I am scarlet fu reporting from home. Romaine bostick will be with us shortly. We are getting him checked him with audio to make sure everything is working properly. Equities are flying high. They popped at the open and have not looked back. We are seeing gains of at least 5. 5 for all the major indexes. For the dow, a 6 advance. With the increase in equities, we are seeing a pullback in the vix, falling for the third day to a onemonth low. Now below 45 compared with a record 85 on march 18. We are looking at oil prices coming back a little bit. We are still waiting for indication on what is going to happen next with the opecplus meeting between the opec producers and allies as well as other Oil Producers around the world. Lets check in with our