It is only the Dow Jones Industrial average right now that is lower today. We had a raft of earnings and a huge amount of Economic Data, very poor Economic Data. In the s p 500, it is some of the banks dragging it lower, but the dows worst performer right now is boeing, which is down 5 . Exxon mobil in there as well, and then j. P. Morgan chase. We had earnings from Morgan Stanley this morning. It has been a little all over the place, but down 1 now. The 10 year yield at 60 basis points after we got another whopping claims number, which we were expecting, but nevertheless is a shock to the system when you see it actually come out. Crude oil back above 20 a 0. 33. Just up about the u. S. Government said it was mulling paying drillers to keep oil in the ground. The vix just above 41. Guy a lot of oil. Lets check in with the bloomberg first word news. Here with the details, ritika gupta. Ritika the coronavirus outbreak has now effectively erased at decade of job creation. More than 5 million americans filed for Unemployment Benefits last week. In the months since the pandemic swaddled to the u. S. Economy, 22 million have lost their jobs. The latest number suggests an Unemployment Rate of at least 15 . President trump will release plans to relax stayathome guidelines today, suggesting that the pandemic is plateauing in parts of the country. The president spoke to more than 200 Business Leaders yesterday. Finance executives told him more testing needs to be in place before people feel comfortable coming to work. In japan, Prime Minister shinzo abe has announced a nationwide state of emergency, saying that it will stay in effect until may 6. Japan has had more than 9000 virus cases and about 150 deaths. Opec sees demand for oil falling the lowest in three decades. The latest report is that less than 20 Million Barrels will be needed in the second quarter. Even if numbers fully implement even if members fully implement new cut backs, it will be more than the market needs. Global news 24 hours a day, on air and on quicktake by bloomberg, powered by more than 2700 journalists and analysts in more than 120 countries. Im ritika gupta. This is bloomberg. Guy thank you very much, indeed. Morgan stanleys best trading performance in more than a decade capped off a quarter in which wall street capitalized on wild market swings. But the market questions whether some of those gains can continue. Erik schatzker talked with Morgan StanleyCeo James Gorman. He started by asking about his recovery from the coronavirus. Doing great, thank you. I am completely recovered, and to be perfectly clear, i had the virus, but i was one of the lucky ones. I was not hospitalized. My lungs did not get infected, which was a real blessing. ,hile it is unpleasant certainly in those conditions, it is manageable. My heart just goes out to the folks who were not that fortunate or who had Underlying Health issues, and the very elderly who have really struggled, and tragically passed away. It is a curse, and i just wish everybody well who gets it. Stay hydrated, stay rested, and wish them the best. James i second those erik i second those wishes. Ray dalio told me yesterday that the is much worse than the 2008 financial crisis. What kind of basecase functions are you making at this point for the recession and the recovery . James im not sure i agree with that. , the gdpmic impact decline is obviously much worse, but it is so specific and it is built around the virus. What sort of world will we have when we have immunity from it, when we have the right testing . Theres so many unknowns now whereas back into thousand eight, it was a collapse of the whole financial system. Had the system not been rescued, who knows what longterm damage, multidecade might have been to the economies . Truly tragice both situations. From our perspective and running a company, theres a few things youve got to focus on. Number one, weve got millions of clients trading trillions of dollars around the world. Our plant has to work. We have to be able to facilitate clients doing that so that they can manage their businesses. They have to have the ability to manage their own liquidity and funding and capital needs, and we play a Critical Role in that. The number one equities player in the world, one of the largest Capital Markets businesses, etc. So the plant has to work. And thank god, with 90 of our employees at home, we had almost no issues. That is just a roaracle testament to the tech and ops teams a remarkable testament to the tech and ops teams at this place. We cut back our buyback to zero. We thought it was best to preserve capital to support our clients in need. We are obviously doing everything through our communities and organizations like ours that are large and have resources should be doing. The third thing is to make sure that our teams are properly coordinated, given the remote isolation everyone is going through. We spent an enormous amount of time communicating with them, setting up plans. What would it be like to bring people back to work . Starting to thing about what the future might look like. Erik it is clearly not as bad, or at least you do not think it will be as bad, for Morgan Stanley, or for the banking industry, as the 2008 crisis. What about the broader economy . 5 Million People filed for on a point last week, in excess of 22 million since this began. How do you fathom or even model the kind of dislocation unemployment on that scale is going to produce . Be shocked to the Global Economic system is something we havent seen since the great depression, and is far more dramatic than what occurred during the financial crisis. And in addition, we have this Massive Health crisis which is working its way around the world, with at times devastating consequences. You cant model this. What youve got to do is preserve your capital, make sure you are wellpositioned to deal with the risk, understand the risk you are taking on as a business, and manage your way. Hrough that we have daily operating committee calls, risk many calls constantly. The whole team is organized around how we ensure that we are doing our job for our clients, and that Morgan Stanley remains stable during a period of incredible dislocation. Vonnie Morgan StanleyCeo James Gorman earlier on bloomberg tv. Spend as much as you can come about keep the receipts. That is the message from the International Monetary fund today as it reinforces the point that this crisis is like no other. The imf is Forecasting Global gdp contraction a 3 this year, a plunge in global trade volume of 11 . So far, more than 100 countries have asked for assistance. Imf and world bank are implement in a debt moratorium for these countries they help until at least the end of the year. Imf managing director Kristalina Georgieva joins me from the virtual Spring Meeting in washington, d. C. Let me ask you about the sdrs. Youve just said you are looking into trying to use them, what you have already for developing countries. At the same time, you have called on the g20 to support the creation of more special drawing rights. The Trump Administration is not on board. Can you change the white houses mind . Ms. Georgieva what i want to start from is that where forybody is on board is strong, Decisive Action now. We do have 1 trillion lending , and we got the full endorsement of the government telling us, lean forward with what you have. We are doing exactly that. We are establishing our emergency financing. We are taking very Decisive Actions on expanding what we have, like the creation of shortterm liquidy lines, and in addition to that, we are mobilizing concessional financing for our low income members. What impressed me tremendously are making thee call for 17 billion to increase concessional financing. I made this call yesterday. Today we got 70 of the funding secured. Sdrs, thees to consensus is not there, but where we heard encouragement in the spirit of do what you can intos to look more closely existing sdrs. Eventually economies dont need them. Developing countries need them. The question is how to create a bridge so we can move resources, more liquidity support to emerging markets. Work, we needour to recognize that the problem is gigantic, the resources we have to deploy significant, and we need to move with what we have very rapidly. Vonnie so far, at least by the end of april, you will have helped 50 countries, but more than 100 have asked for assistance, and there is a hierarchy. What do you need from private creditors, for example, in order to do more for those countries you havent yet been able to help . Ms. Georgieva what we achieved during this week is quite incredible. We got official bilateral creditors to agree on a standstill in the context of g20. Have the gulf countries, china, and the all coming together to provide breathing members. Our poorest in that call, we also turned to the private creditors, and we , andsking them to step up in the terms of the official bilateral creditors, to also ease the debt burden on low and middle income countries. We need to recognize that this is a highly uncertain environment. We need to carefully watch how the crisis evolves. As theyections are dire are, but epidemiologists are telling us it may get even worse, and therefore, as we look into this picture, we have to bring everybody on board. We need to make sure that we are all in this together because isuidity problems certainly a much bigger problem. We have to prevent that from happening. Vonnie and remittances are becoming a huge problem as well. I know that the amount of remittances also plays a role in your hierarchy of assistance. The trouble with remittances if they are also putting pressure on currencies, and em currencies are beginning. Do you anticipate any Asian Countries looking for help from the imf and world bank . Ms. Georgieva at this point, what we are seeing is asia is staying flat. In other words, we are not projecting negative growth for asia as we do for the world as a whole. We do have in asia some countries that have built since the Global Financial crisis strong buffers, and that helps them now in this more difficult time. But of course, we are there for the membership, and actually creating a shortterm liquidity line is something we believe is very helpful for strong countries. They may experience shortterm liquidity pressure, and then we can help with that. In terms of the requests that are coming to the fund, i can they are many low income countries, but also some middle income country saying we want to get that additional theion, or they are seeing dramatic developments because of their economies being more dependent on hard hit sectors, be it tourism, or because of the point you made in the beginning, remittances shrinking or even drying up. We are there for the whole membership. And let me make one very important point. Bys is not a crisis caused bad governance. It is a crisis caused by pandemic. , there is noense stigma coming to the imf. Is ergency assistance the only thing we are asking is spend money for your doctors and nurses and to protect Vulnerable People in sectors of the economy. Vonnie speaking of middle income countries, do you think europe should consider seriously a joint bond issuance debt mutual is a debt mutualization . Ms. Georgieva we strongly endorse the steps that have been individualrope by European Countries, but also by the European Central bank and the european institutions. Large, appropriately so, and they are done with good targeting, as well as with the temporary nature of some of these measures. Secondly, europe already has some mutualization through the european stability mechanism, and also vonnie sure, but corona bonds are a hot topic. Ms. Georgieva and three, the European Countries that are actually debating how they can vide more precautionary more of a buffer against this crisis, as you know, the debate is ongoing to europe. Everybody who knows europe knows that sometimes it takes a while for countries to come together. My conviction is that europe will stand together in the face of this crisis. Vonnie ok. That is a positive outcome, i guess. Talk to us about argentina. We are expecting the offer will be made for foreign creditors today for 69 billion. Have you spoken with the finance minister at all about this . In georgieva my team is close communication with minister guzman. I have not spoken to him personally recently, but i have been into munication with him multiple times. Ash have been in communication with him multiple times have been in communication with him multiple times. What i can say is that argentina has taken strong measures in the face of covid19, despite the difficulties the country has had. Second, that they are acting in good faith. They are going to put in an offer because they do not want to default. They want to find a pathway to an agreement with their creditors. Third, that we need to all recognize the world has changed, and countries that were with difficulties before are having even more difficulties now. Argentina, andto i do hope that they would be a constructive engagement. Of course, it is for argentina to negotiate with the creditors. But it would be good for argentina and for everybody in this incredibly uncertain environment if we had some good news coming. Vonnie if you could wave a magic wand, what would be the thing you would wish for in term of the sdrs right now . Do you need to expand the amount of money you have at your disposal, and if so, who can you count on for that . Ms. Georgieva well, let me say thati have full confidence for the next months when we are striving to stabilize the emergingmarket developing economies that are hit by this crisis, we do have financial strength that is sufficient to do our job. Let me remind everybody that before the Global Financial crisis, the imf had 250 billion dollars lending capacity. Now we have four times more. I am also convinced that the membership would come through should the conditions are more adverse. We have seen that we can find solutions to common problems effectively. We did it in the past. Today,done some of it raising concessional financing. If the needs are there, we will do it again. Vonnie thank you so much for all of your time today, coming to us from the virtual Imf World BankSpring Meeting 2020. That is the imf managing director Kristalina Georgieva. Still ahead, our exclusive interview with airbus ceo guillaume faury, who says the industry is facing its greatest crisis due to the coronavirus pandemic. This is bloomberg. Guy from london, im guy johnson, with vonnie quinn in new york. This is the european close on bloomberg markets. Here with the details, abigail doolittle. Abigail an hour ago, mixed to the upside and downside, but now the bulls are really trying to take it. The s p 500 now up 0. 6 . An hour ago, it had been down 0. 6 . Stocks in europe doing relatively well. The stoxx 600 up 0. 8 , the ftse 100 up 0. 7 . Investors continuing to digest the dismal Economic Data we have had of late as the new reality, the bulls are taking it. Where we have some bearish action is the euro. On the dollar against the dollar on the week, down. Investors going into the dollar on the dismal Economic Data, so something to Pay Attention to if europe continues to decline. Not really a risk on signal. Take a look at the commodity complex. Actually, the bulls are trying to take it here, too. Brent crude down about 1 . That continuing divergence there. Copper and gold also higher. On the year, commodities down in a huge way. To give you an idea, oil down more than 60 on the year. Gold up more than 10 . Finally, one of the big stories this week beyond the Economic Data, the earnings reports to come out of the banks. Across the board, really dismal reports. Profits plunging, big loanloss preserves. A bright spot is trading, but Morgan Stanley today even said they are not sure that trading strength can last, so the new reality of this data starting to hit, but right now, small gains. Vonnie thank you for that update. It is time for your latest wennberg business flash your latest Bloomberg Business flash. To slowlystarting ramp up operations in the United States. Strike tiffanys will be limited to Services Like drivethrough delivery and takeout. Amazon Ceo Jeff Bezos wants to test all employees for the coronavirus. That includes those with no symptoms. In a spelled out the steps letter to shareholders. He says the Company Already has a team of scientists, managers, and Software Engineers that hope to build a testing lab soon. Avis laboratories has suspended guidance because of uncertainty caused by the coronavirus. In the latest quarter, sales were weakest at the company diagnostic unit. That is likely to change. Abbott is introducing three coronavirus tests. One will tell if you have recovered from the disease. That is your latest Bloomberg Business flash. Guy lets take a look at what is happening with the markets in europe. We are off our lows. Author highs as well. Equities in europe higher first thing this morning. They did more yesterday. Needs bearing in mind. Volatility coming down relatively sharply over the last few days. We are seeing tighter and tighter ranges, which is in some ways good, some ways good, someways bad. If you are a traitor at Morgan Stanley a trader at Morgan Stanley, it is going to make things more complicated. In terms of where we are seeing the sector story today in europe, weve got technology, health care, food and beverage. A more defensive bias when it comes to the stoxx story from a sector point of view. Oil and gas is trading down by nearly 2 today. We are seeing the Banking Sector broadly a little weaker as well. Up next, the airbus ceo. 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 . Guy 30 seconds away from the end of trading in europe during may quickly show you what the sessions look like from a stoxx 600 point of view. A tight range. We are off our earlier lows. We are trading midrange, up around. 8 . Onestop under pressure today is under one stock pressure today is airbus. Down 2 on the session. We are trading down just over 2 , trading at 53. Lets focus on that business in more detail. The global air and space sector is facing its greatest challenge ever do the coronavirus pandemic. That is according to the airbus worlds leads the biggest aircraft manufacturer. He said that a little bit. Arlier in a video message he joins us exclusively from toulouse in france. A stark warning about the state of play in the Aerospace Sector from you in that message. Withs your business coping the stress it is under at the moment . How are your people doing . We have to face an unprecedented situation and we are facing that reality now. The situation of the airlines, our customers, is a very difficult one. Most of the planes are on the ground. That is unprecedented at the global scale. Therefore we have to adapt. We have changes on the supply chain. We are combining all of our data points to move forward and what we have done last week was to find a new production rate to give the right direction to our changers and adapt to a in the demand. Our customers are in a new situation. We have to adapt to that new situation too. Guy what are you hearing from your customers . United in the United States saying demand for travel is essential zero . What are you hearing for from other carriers . Guillaume there is a large diversity of situation around the world. Byis not the same country country or region by region. Is takeare doing proactivity to our customers individually who find solutions one by one to their concerns. The situation is today what it is. You mentioned united. We have a situation with other airlines. It is a complex situation. It is a lot of work for all of us to adapt and find a way forward. There is still a lot of uncertainty on when airlines will be back to service, when we will be back to normal, and what will be the shape of the recovery. That is what we are working on at the moment. Guy what you think of the being given to certain carriers . Guillaume i think the priority is on rescuing the airlines. There the first hit by this pandemic. There are few passengers flying, and the priority is to support the airlines going through this difficult situation. Supporting the airlines is also the best way to support the world supply chain. We are looking our customers, the airlines, as well as the rest of the supply chain to keep it alive and unprecedented period of challenges so we can keep moving forward and recovering when times would be better. Boeing wills like asked washington for some form of state aid. Do you have similar plans . You expect airbus to have to ask the french government for european government for assistance . We are asking for support, as i said before, to the airlines, the suppliers, we are asking for support in different forms, but not in capital from the governments. Guy that is good to hear. In terms of how you see the story developing, how much visibility do you have at the moment. I imagine very little. With a report over last couple of days saying it sees aircraft delivery down 40 to 50 over the next four years or five years. Is that what the future looks like to you or do you think the shock will be shorter and sharper . Guillaume i do not have a crystal ball and we are all andng to assess the depth the duration of the crisis. We think there will be a large difference between the wide bodies at the narrow bodies. Recoverer will probably much faster the later will probably recover much faster. What we will see this year is probably Something Like 30 to 40 . It is still very dynamic. Recovery in terms of passengers flying china already china is very interesting. That is a place where we can try to assess what will happen for the rest of the world. 40 to 50 over the next five years looks pessimistic. Guy that is good to hear. You are not in a position where you need to make any decisions on resizing the business. You are not at that point . Guillaume we have just resize the business. We informed last week of the supply chain and the market that we have reduced the production rate for the singleline from 60, where we were just before the pandemic, down to 40. It is a very significant resizing of our production activities. This will be stable for two were three months, and depending on the evolution of the global organization, we might revise that production for the next four years. We are already making harsh decisions to face the reality we are in now. Guy i probably did not phrase the question correctly. You are not in a position at this point where you think you may have to lay people off . We have used systems on using first relying holidays and the hours available already, then going to other this kindsure of way of dealing with the situation. We will see. Before we go to a more difficult decisions when it comes to employees, we want to have a better assessment on how the situation might evolve in the next month, what 2021 will look like so we can make a decision that relies on a good balance between the wrist and the scenarios the risk and the scenarios ahead of us. Guy if you were to find yourself in a position where you are ready to reopen or start reopen facilities, what is your planning at the moment in terms of dealing with stuff . What is your plan for testing. You have large sites, but access to them is relatively limited through certain key points. What are your plans in place at the moment to deal with testing . What is government telling you . What are your plans . We have a large presence on site in europe. The low point of attendance on site was two or three weeks ago depending on the different countries. We are recovering from this low point of activity. We have more people on site. We might go to testing as an experience in airbus to start to learn how to deal with it. We are following the recommendation of the government and taking more proactive measures when it comes to protecting people. This has been the priority. We have been hit first in china where we had to learn about measures put in place in china. That is what we are doing now in europe. A good priority on the health and safety of people, we take them back to work, but in europe we have recovered labor activity, which is significant. Guy lets dig into that a little bit more. For the 320 lines you will be focusing on a run rate of around 40 under the new plan as a result of resizing the business. When do you think are you able to achieve that now . When you think you will be able to stabilize around that kind of number . Guillaume we had a significant production last week. We had production this week on our Assembly Lines in europe. China is back on track. In europe we are to reduce rates. Run on thecult to reduced rates. Rates for april, may, and june. When it comes to pedigree it is different. April is very difficult because of the restrictions on international travels. It is difficult for customers to take delivery. In terms of production rates, we will be able to in q2 be around 40, i cannot be precise where will be exactly. There are a lot of moving pieces, but we are around that level as we speak. Guy do you think youre going to change the lineup of aircraft youre going to build as a result of this . You have cut back the 320 line, you have cut back the 350 line, you have cut back on the 330 line. You think the 330 is still viable if youre only producing the number of aircraft you are talking about at the moment . Guillaume we are reducing by one third for each one of our product lines. It is not unlikely the wide bodies will be hit harder than the singleline. We will have to monitor that situation moving forward. We are keeping our products. We think we have the right products. Some of them will be the perfect one for the post coronavirus situation. We keep our products and think they are good ones today and tomorrow and especially the ones which have been improved, modernized recently. The new versions with modern engines and strong environmental performance. We think the environment will be even more important moving out of coronavirus. Anything you can aircrafts, to make safer, feel safer as a result of the virus . A lot of people will be nervous about getting onto airplanes. Is there anything that can be done from an engineering point of view . , whatensity, air filters can be done on board airplanes . Maybe some of the surfaces on the aircraft as well, to make people feel more comfortable getting on the planes, make them easier to clean, etc. . Industry ishe modeling to find appropriate solutions to these problems. There are problems in the perception. 11 remember on september there was the threat of terrorism on board and something difficult to manage at the beginning. We Found Solutions rather quickly and i am optimistics we will find solutions, Different Solutions to a different problem, with all of the people and the engineers and the ideas which are coming on board in sections such as access to as arts, access to planes first step before we moved to other solutions. Im optimistic for all kinds of transport will find solution, including aviation. We have done that before. Guy you certainly have. We appreciate your time. Guillaume my pleasure. Guy the airbus ceo joining us from toulouse. Vonnie . Vonnie thank you for that. We have the latest death toll for new york. Dying in00 77 people hospitals in the last 24 hours and 29 people dying in nursing homes. Andrew cuomo says the deaths are continuing at a tragic great. It should be mentioned it is the first time we have seen a number below 600 in some time. Staying with travel, bloomberg is learning more about Cruise Line Company carnivals handling of the coronavirus. More than 1500 people from Carnival Cruise ships have been diagnosed with covid19. At least 39 have died. Much focus was on the grand princess early in march. March 4, passengers were told the cdc was investigating a cluster of cases in california that may be late to the ship. Hand sanitizer stations pop up and crewmembers begin to wear gloves. Big gatherings continued. It was not until lunchtime the next day the captain announced a quarantine on board. Carnival ships have become a floating testament to the viciousness of the virus and theyve also raised questions about potential corporate negligence and fleet safety. Responseays carnivals to the crisis was reasonable under the circumstances. It is a great story and it is the cover of the latest edition of Bloomberg Businessweek. Lets check in with bloomberg first word news with ritika gupta. Ritika on the u. S. Housing market. U. S. New Home Construction are up 22 , that is the lowest since 1984. Applications still fell almost 7 . Vonnie i can tell you the annualized rate was a little more than 1. 2 million homes. Applications falling almost 7 today. A low bit of a mixed message on housing. Lets take a look at where we stand market wise. The dow down. 3 , well off the low of the session. Boeing the worst performer in the dow. The s p 500 up. 5 at the nasdaq is flying, up 1. 7 . The nasdaq taking the lead and running with it. Volatility remains elevated at 40 over 41. The dollar index is back above 100, stronger by. 66 . A weaker euro at 10842. Crude oil in the u. S. We are at 20 on the nose. Up two thirds of a percent. Guy lets take a quick look at where european markets have settled down. What we saw was a defensive story today in terms of the nature of the market story. The ftse 100 up. 5 . The dax up. 2 . The cac 40 slipping into negative territory. Airbus one of the factors behind that. Tech undernto pleasure. We did see initially a gap higher. Trading in a very tight range. We are expecting news of the top of the hour when it comes to the u. K. Government decision on extending the lockdown in britain. We will bring that to you as part of the cable show. Jonathan ferro will be in new york, i will be joining him in london. We will bring you the Daily Briefing from 10 downing street. We will do that on dap Digital Radio in the london area and around the world on all of your bloomberg devices. This is bloomberg. Vonnie live from new york, i am vonnie quinn along with guy johnson in london. Time for Bloomberg Business flash. Cash bys raising offering bonds and selling loyalty points. The hotel chain trying to write out the crash in the travel market. The chain also plans to offer half 1 billion in senior volkswagen has abandoned its fullyear forecast. The pandemic has brought sales to a halt at the Worlds Largest automaker and forced vw to shut down factories around the world. A bold targetng on cleaner energy. By 2050 the Company Plans to eliminate all net emissions from its own operations and it wants to get rid of the bulk of greenhouse gases. Shells move follows similar steps taken by pp. That is your latest Bloomberg Business taken by bp. That is your latest Bloomberg Business flash. Guy we are getting numbers from lvmh, the giant luxury stock that will be seen as a benchmark for the rest of the data. Well, certainly as a relative basis. I think people will be paying attention to what is happening. The lvmh board is paying for 30 , but the revenue numbers came in at 10. 6 billion, that is down 17 on an organic basis. Trying to look at the estimate. The revenue range was 10 billion to 11. 2 billion. Looks to be at the bottom end of the range. The lockdown will hit revenues and earnings. Hat is unsurprising fashion, leather, organic sales down 10 . They need to preserve some of the cash it has and we will continue to monitor some of the headlines that continue to come out. As i say, looks like it is the bottom end of the range. Well see what the stock does first thing tomorrow morning. This is bloomberg. Guy i am guy johnson with vonnie quinn in new york. This is european close on bloomberg markets. Time for our stock of the hour. Here is taylor riggs. Taylor our stock of the hour is conocophillips. They have said they have seen their americas number three producer and have decided to slash production by a quarter and cap, including suspending fracking in the lower 48 states. I want to take a look at alpo, the company said it would reduce 225,000 barrels a day, that is 100 Million Barrels a day in canada and 100 million in the u. S. That is bringing production to the lowest we have seen in years. What that means for the longterm stock price reaction is not good. We are still down 55 for the year. Billion,capex by 1. 6 4. 3 billion, not enough to help boost the share price. It does represent a total reduction of 2. 3 billion or 35 of that initial guidance they were giving. Our you can see is where energy comes from in the u. S. Texas, offshore drilling, and then north dakota and new mexico. In international market, prices are not being helped by opec coming out this morning and need under 20st Million Barrels a day to be produced in the second quarter. We know this broader story about wells being drilled. We know that number has slowed in recent months, but another big story is drilling wells but not completing them. It is hard because what you do with all of that oil once you take it out . We know the storage tanks are being sold out. Hard to see a lot of the story continuing without more cuts given the drop in demand we have seen. Thank you for that. That is taylor riggs with our stock of the hour. Coming up in the United States, balance of power with david westin. Today he will speak exclusively with dallas fed president robert kaplan. You do not want to miss that after the type of Economic Data we have been seeing in recent days. Lets take a quick look at u. S. Markets. We still have the nasdaq running away with things. Up almost 2 . The s p 500 is also making new gains end up. 8 . I want to point to the dow because it is now in the green. It had spent most of the day in the red. The industrials are what is powering the nasdaq higher. This is bloomberg. David from new york to our tv and Radio Audience worldwide, this is balance of power, where the world of politics meets the world of business. Im david westin. Welcome. We had a rough day and equities yesterday, today the question is will that continue . We turned abigail doolittle. Abigail it is unclear whether or not we will break the pattern. Right now it is mixed. It does feel like the buyers are trying to step up. Very jittery in the first hour of trading. Right now we are all green. The dow basically flat. The s p up. 7 . On thedaq outperforming momentum stocks, especially amazon. Investors going towards those stocks, that momentum complex. The question is more recently the buying power crash owned by this week, two down days, one update