Not entirely clear. The buyers are less enthusiastic. We have had horrible Economic Data. Investors and traders are assessing that reality. It is no longer just somewhere in the distance. It is here today. Many folks are saying you will be the Second Quarter that will matter. Some are saying this rally has to do with traders looking past 2020 to 2021 as the data continues to come out poorly, it could be a problem. David it is not clear what the Economic Data are telling investors. Are they paying attention to earnings, because we are getting to the heart of earnings season. Abigail they are paying attention to earnings. The banks are down in a big way. All of the big banks reporting disappointing profits, absolutely plunging, bigger loan loss reserves. Trading is a bright spot. Morgan stanley saying theyre not sure how long that will last. This is a reality. In march where it was clear the coronavirus prices would create tremendous economic problems, everybody expecting it to hit earnings at so Many Companies were withdrawing guidance, but we hear we have the big banks putting up the worst numbers in years. The new reality is setting in, setting a bearish tone for banks for the rest of the season. It will be important to see what some of the other sectors report, especially track. Especially tech. , buthas been a bright spot the town is extended. Many people are saying it is the Second Quarter will be more important. Certainly we are getting in early tell on that relative to what march look like. David . David thank you so much. That is Abigail Doolittle on the markets. I want to get the investor perspective on the market. We turn to the ceo of the Rock Creek Group and a regular contributor to wall street group. We have some jobless numbers. We have over 20 Million People who have lost their jobs in the last four weeks or so. What you make of the economic numbers . Are they different than what investors expected . Great to be with you today. The numbers were more pessimistic than the market expected today. It is interesting the market itself has not reacted as negatively to those numbers so far as we would have expected. The interesting thing about the is they dot we saw not show the negativity of many ceos and cfos that we have been talking to. Even if we come back at the end of q2, or have a relatively more positive outcome, we still will have less employment coming out of this than people expect. That are upnumbers to 10 to 30 less employees when we stabilize. That will have a very big impact on the longerterm markets, but also the economy. Looking at the possibility of a jobless recovery . Jobless, but it will be at a lower level of employment than most people expect. What we are seeing is the cfos of the Larger Companies not seeing employment come back to quite where it was after this crisis, but also as we have seen and programs for the smaller businesses, those businesses are finding it has been difficult to get access to the ppp, which have been fully allocated. Unless we get another batch of it, it will not be helpful, plus it seems like the market is talking about a lot of bigger firms having had bigger access to the ppp than the true smaller enterprises. From an employment point, it is for the Larger Companies were the Smaller Companies that we are hoping to , thatcess to the ppp there employment numbers will come up as we expected. Another thing worth looking at is in china, but the government has done is push out cash to every chinese person, or most chinese people, so you get a cash account and you can buy goods with that. You will actually have to exit your home, you cannot order online, you have to go out and they are trying to get people to normalize behavior to go out on andstreets, to get a meal maybe even go to the movies or whatever. We do not have that. We are not accessing the consumers for the programs we have in the u. S. You know a lot about oil and energy. That is where you started out. What about this report that the government may pay Oil Producers to keep their oil on the ground. We have had the Strategic Petroleum reserve reside in the ground. Does that make sense . It is cheaper to do that sometimes then store it, especially we are running out of Storage Space in the u. S. And outside the u. S. Energy is you assume oil and gas are not renewable , it means if you keep your stock and its valuables up over a very long time, it may not be exactly the most stupid program. Common plan that the mosthad in the past of the time weve expected are Storage Spaces would be available to do the same thing we are talking about, also because tankers on the ocean are also getting full and most likely by sometime in april or may they will be full. Might have to stop producing, in which case there will have to be some sort of program if we want to support the industry domestically. Whether this is the way to do it or another way might be to help the companies with their credit programs and things like that might be more sensible. David you mentioned the possibility of the Employment Situation not coming back. Look at the oil industry are we looking at a longterm or permanent change to the structure of the industry . In the shale Oil Producers, they are really hurting. Im not sure if they will come back. You are absolutely right. On the other hand, i think what we are seeing is surprising. Some of the numbers we have been seeing this week is that Renewable Energy has reached just over 20 of our total power grid in the u. S. In fact, the lone star state, texas, is a hub of not just oil and gas the way we think about it, but they have been building a whole new solar capacity that has been installed in the u. S. , which may come as a surprise to most people who think of texas as an oil and gas economy. On the one hand, you see employment and one part of the Energy Sector is going down, but employment potential for Renewable Energy might be going up at the same time. The question is will the renewable survive and actually thrive as Energy Prices state lower. David in a world in which we have much more energy and less fossil fuels, does that require as much employment . Industry, in the Auto Electric vehicles do not require the same number of workers as internal combustion engines. It might be the cars themselves do not or they are manufactured differently, but at the same time installing capacity, lets say solar on top of your house or in industries, it is still it does need labor. A different kind of labor, trained in a different way. All the parts and all of the services you need for renewables or anything climate related will also generate a lot of employment. Wouldt, as we speak, i dare to say the service as part related to renewables is experiencing a problem with getting all of the access to good labor and experienced labor because we do not have that level of labor experience in the service as part of renewables and water and things like that. There is a mismatch there. If we can get our Training Programs up we might be able to help some of these unemployment problems we are seeing in the other parts of damaged sectors. I should also mention that in emerging markets you are seeing the opposite trend because a lot of them are energy importers. , it will in the u. S. Become a very Strong Energy producer, and a lot of countries that are energy importers, they have the opposite experience in the sense that as the economy starts coming up, they will benefit from this level of low Energy Prices and that will help their unemployment problems in the longer run. David thank you so much. Delighted to have you with us. She is ceo of the Rock Creek Group and also a wall street week contributor. We will have wall street week on again tomorrow night, that is friday evening at 6 00 eastern time as we look back at the week that was. In the meantime, we want to go to first word news with mark crumpton. Mark the United Kingdom is extending its lockdown for another three weeks. The announcement was made just moments ago. The u. K. Has become the sixth country to have more than 100,000 confirmed coronavirus cases. People. s is another 861 died in the past 24 hours. The increase follows four days of lower numbers, but Officials Say that may have been because of delays in reporting over the long easter weekend. Democrats in congress and treasury secretary Steven Mnuchin will try again today to reach an agreement on the next stage of the economic rescue package. Bloomberg has learned those host sides remained far apart bloomberg has lowered the two sides remained far apart after the federal Relief Program for the business is devastated by the coronavirus has already been drained. Shinzo abe has announced a nationwide state of emergency. Stopping crossborder movement of people and increased social distancing. Abe says it will stay in effect until may 6. Japan has more than 9000 virus cases and about 150 debt secured new york city is expecting the economy to crater because of the coronavirus. The citys Budget Office estimates 160,000 jobs will be lost in the year in tax revenue will plunge 9. 7 billion. New york citys gdp for this year is now likely to decline 4. 5 . The city has been expecting the economy to grow 1. 8 . 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. thanks so much. The u. K. Talked about extending its lockdown. The same thing in new york as Governor Cuomo he announced he will extend until may 15 the time we need to stay at home, until may 15 in new york. In the meantime, President Trump is playing a highstakes game with the governors and the democratic party. We will turn to our bluebird political contributor our bloomberg political contributor rick davis to talk about what is at stake. Coming up next on balance of power on Bloomberg Television and radio. David this is balance of power. I am david westin. President trump is slated to announce an approach for reopening the u. S. Economy this afternoon, although it looks isk down it looks like he back down from a conversation with governors about who will be responsible. We welcome our bloomberg political contributor rick davis, who has done so many things in politics including running john mccains campaign. Lets start with this plan to reopen. Is this a highstakes game for the president . If it works well he comes out a hero, if it does not work well, if you break it, you own it. Rick thank you for having me. I hope everybody is doing well in your bloomberg world. Trump owns this anyway. This has been a highprofile crisis. He has taken ownership by doing these Daily Press Conferences and has taken credit for as much as his administration can possibly do in the interim. , thatthing goes wrong falls on his shoulders. The biggest question the administration has is how to start this economy going again. His indicators are horrible. We saw massive layoffs and unemployment over last month. I think he sees getting back to work as a prerequisite to his reelection, i think he has an itchy trigger finger. Clearly of the economy gets going again it will help him a lot. We realized in the battle days we were climbing badly with number of infections, he has a real problem. Rick he does. This is something he has very limited control over. As you mentioned, governors have a Significant Impact on what the rules are that applied to their individual states and they all have different challenges. Urban states like california and new york have different challenges than western states with lower population levels and less concentration. To have some broad reaching National Policy that helps people get back to work and spurs the economy will be very difficult. He is going to have to work with these governors, all of whom have their own agendas, both as governor and trying to maintain the health and wellbeing of their states, but also as politicians who have a point of view on what the elections will be like in november. Suggest, it looks right now like the bid issue the big issue in november kobe how this Coronavirus Crisis was will be in november how this Coronavirus Crisis was handled. What kind of challenge will that be for Vice President biden . They are almost passive in this. What can they do besides weight how it plays out . Rick that is what they have is an option, sit back and see how it plays out. To some extent this election was always going to be about donald trump. Anything donald trump does is all about donald trump. This likely was going to stack down vote onp or his first term of office, which would not be unusual for sitting president s. Even more so, because of the pandemic, this will be a referendum on his leadership and whether or not people feel like he has done everything he can to maintain the Health Safety of america and the economic safety of america. Biden will have a limited ability probably late in the game to create a contrast with trump. Therell be plenty to do there, but he will have to pick carefully what issues he strikes out on because the American Public it is hard to predict what they will care about in september and october of this year. We do know one thing for sure. Securityd economic will be at the top of that agenda. David speaking of health, one last question. Do republicans who resist the risk, did we see that in wisconsin when republicans forced people to come in person to the polls . Rick i think this debate about vote by mail is overheated within the republican party. Traditionally republicans feel like they have a disadvantage for people who vote by mail, there was a major effort when motor voter was first started, which as you get registered to driver. Being a licensed all of these things bring people to the polls. One of the states that has almost all mailin ballots is utah, and they do quite well as republicans in utah. I think theres a lot of heat but no fire when it comes to vote by mail. Anlity is this will be intensely involved election. People will want to do something and making it easy for them to do it will give republicans just as much advantage to turnout as there will be for democrats. David whatever happens, a very different election. Great to have you with us. That is rick davis, our bloomberg political contributor. Later on we will have an exclusive interview with dallas fed president robert kaplan. This is balance of power on Bloomberg Television and radio. David this is balance of power on Bloomberg Television and radio. It is time for the stock of the hour. United airlines is the worst performer of the day. For a report, we turn to kailey leinz. Kailey we are expecting earnings from united after the bell. The company has not confirmed that but that is what we have estimated. Sentiment is not great going into that print. The stock has already lost about 70 of its value due to the total collapse in air travel demand we have seen as a result of the coronavirus outbreak. Useysts think united will of60 a share, that is profit 1. 13 last year in the same quarter. These estimates have been dramatically rerated over the course of this year. Earnings estimates for both north american carriers like united and asianpacific carriers have been cut by 200 so far this year. It is not going to be a First Quarter only problem. What is driving the loss today for united is a letter sent by the ceo and president scott kirby to employees last night signaling there is no light at the end of the tunnel. They said travel demand is zero and shows no signs of improving in the near term. They expect demand to remain suppressed for the rest of 2020 and into next year. To give you some perspective as to how suppressed, they say united will fly fewer people during may this year than it did on a single day in may last year. David you probably heard this number. In the new york area the reported airplane traffic was down 96 . There is help in the form of government bailout. Kailey they have gotten some help. United is getting 5 billion in grants and loans. That does help for shortterm liquidity and is focused on payroll cost. That is only 30 of uniteds total cost. They will still have to make deep cuts elsewhere. Analysts were not that happy with the Government Program given the fact airlines are on the hook to pay 30 of the money they get, and frankly it is not enough to offset the demand problems even with government aid. David . David thank you so much for that report on the stock of the hour, united airlines. That is kailey leinz. Coming up, we will talk with representative Katherine Clark about massachusetts of massachusetts about what is going on on capitol hill as they are stalled on more money for small business. This is balance of power on bloomberg tv and radio. David this is balance of power on Bloomberg Television and radio. I am david westin. Congress has already passed three major pieces of legislation to help the u. S. Economy. We are told that as of today we are already running out of the 350 billion appropriated to help Small Businesses and attempts to replenish that have stalled on capitol hill. We welcome congresswoman Katherine Clark, a democrat from massachusetts. She sits on the Appropriations Committee and is the vice chair of the Democratic Caucus. Representative clark, thank you for being with us. Lets start with that attempt to replenish some of the money for small business. Where does it sit . Knowclark as of today, we the Paycheck Protection Program is likely to run out of money. We have been working to get the senate to support our interim emergency package that would replenish that program with 250 billion in additional assistance and would focus half of that amount to make sure our womenowned businesses, our veteran owned businesses, farmers, Rural Communities and underserved communities have better access to those funds. In addition, we want to make sure we are continuing to support our hospitals, Community Health centers, and health 150ms, and additional million per state and local municipalities. We know this is a Health Care Crisis first, and if we want to help our Small Businesses and keep the focus on our workers who had been displaced, we have to address the Health Care Crisis simultaneously. That is what the democrats are pushing for and we certainly hope that the republicans will join us and secretary mnuchin will understand that these things cannot be separated and need to be taken up as soon as possible in congress. Or, oris this an either is there room for compromise. There is an urgency for all of the things youre talking about, both replenishing of money for Small Businesses as well as money for hospitals and states. Rep. Clark we believe these go hand in glove. We cannot restart our economy. Thatnnot get the aid out workers around the country need if we do not have the hospital and Community Health centers and the assistance to stick to our spending records amount of funding providing the lifesaving services to americans. These all go together. Give aid to our Small Businesses if we are not of theking Care Hospitals and Health Care Systems that are supporting those people. This is first and foremost a Public Health crisis. We have to continue to address that as we support the backbone of our economy, which is our Small Businesses. Are speaking, we we are told nancy pelosi has said she is still negotiating over additional relief funding. You are a member of leadership for the democratic side, vice chair of the Democratic Caucus as well as on the Appropriations Committee. Do you think this will get resolved, and if so, within what frame of time . Rep. Clark we certainly hope it will be resolved today and voted on as quickly as possible. That is what democrats have been pushing throughout this process as we have been taking the lead on ensuring we make these emergency relief bills tailored and aimed at the needs of americans. First and most pressing are their health needs, getting the protective equipment, making sure we have the ventilators, ensuring we are expanding testing to meet the needs. We do not always have a cooperative partner in the white house. We are alarmed at some of the misinformation and the eagerness to open this economy before it could be safe to do so. We are going to continue to press we do both things at the same time, recognize this is a Health Crisis and people in my district continue to be primarily concerned with preventing their families from getting this virus and helping those in their communities who are already struggling with it. We want to support those First Responders and Health Care Workers and Grocery Store workers who are at the frontline, but we have to do both. We have to make sure our Small Businesses are not destroyed during this pandemic and they have what they need to be able to reopen when we can securely do so. We are ready to act with the urgency that is required and we hope the senate will join us today. Congresswoman, you mentioned your district. Give us a sense of what is going on. We listen to Charlie Baker premuch every day at a news conference. It seems like things are getting worse. Give us a sense of what is going on in your district. Rep. Clark here in massachusetts we have been dreading this time. It appears we are now in the surge of cases, hospitalizations, and unfortunately, some deaths. Milestone,a gruesome the loss of 1000 people, and we have surpassed that already today in the commonwealth. Is one ofcommunities the top 10 in the state in deaths per capita. We are struggling. We are also seeing inspirational heroism with our First Responders, with our public and private entities coming together to help support our communities in this very challenging time. As always, i am proud to represent this district that is on the forefront of trying to wear our masks in public, to do whatever we can to slow the infection rate, and investing in research and finding a cure and a vaccine, which i think will be the innovation we are going to seek the help us address this virus that will come out of my district. It is the best of times and the worst of times in massachusetts. David indeed. All of our thoughts are with you and your constituents. Thank you so much. That is congresswoman Katherine Clark, democrat of the commonwealth of massachusetts. Now it is time for first word news and for that we go to mark crumpton. Mark thank you. Italy is reporting its highest new coronavirus cases in four days. The government says there were more than 3700 new cases, over 1000 more than the day before. 469,000 confirmed virus cases. The Prime MinisterGiuseppe Conte is working with emergency taskforces to map restart for businesses crushed by the recent light by the nationwide lockdown. Pushing back against allegations that the coronavirus may have started in a lab near wuhan and also denied it delayed announcing the outbreak. The wires is believed to have originated with bats and do a been passed from another species to humans at a socalled wet market in wuhan. A Firm Determination has not been made. The problem russia will gracefully accept President Trumps offer to provide ventilators for coronavirus patients. The president said wednesday the u. S. Was ready to send ventilators to russia, saying theyre having a hard time in moscow. We will help them. The u. S. Also stands ready to provide been a latest other countries, including italy, spain, and france. 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. David thanks so much. Coming up next, we will have an exclusive interview with u. S. President robert kaplan. Ons is balance of power Bloomberg Television and radio. David this is balance of power on Bloomberg Television and radio. We now welcome robert kaplan, the dallas fed president. Welcome, mr. President. I want to ask you about your outlook on the economy. As recently as a couple of weeks ago you said it would be rough, we will come back in the second half. We may have unemployment as high as 15 . Have the recent of elements changed your views on that and you think it is any worse than it was before . Pres. Kaplan i think it is basically my view is basically the same as it was two weeks ago. We will have a substantial contraction in the second saider and we have annualized as much as 25 to 30 , that is annualized so multiply that by four. We think we will start growing again in the Third Quarter and we will continue to grow into the fourth quarter. I probably would say today that peak unemployment may be closer to the midto high teens, may be higher that i said before, and we still believe we will end the year with an Unemployment RateSomething Like 8 or 9 or 10 . In that range. The challenge going into 2021 will be to work that Unemployment Rate down. David there seems to be a range of views among fed president s as well as the board, which is why you have multiple people so you have different views. If you look at the one hand saying it will be a sharp v and mary daly saying this could drag it to next year, where you put yourself on that spectrum . Pres. Kaplan here is the challenge. Going into this situation, we have sluggish manufacturing, sluggish business investment, obviously a lot of that had to do with week local trade. The one thing we had going was an economy, a strong u. S. Consumer. We had a low Unemployment Rate, household Balance Sheets were in good shape. That was 70 of the economy. The challenge is as we come out , and iflater this year the Unemployment Rate is 8 to 10 , you will have a weakened consumer who will save more, be more careful, be more reluctant to spend, and that will be a headwind for the economy. It may take a while, and i mean into 2021 for the consumer to get his or her footing back. I think that will be dependent on how quickly we can run down this Unemployment Rate to lower levels. Do i think it will be a v . The consumer situation makes me think we will have a recovery, and it will be a solid recovery in the second half of the year from the levels we are at, we are still going to have a 4 to 5 contraction for the year, but then the question will be what is the pace of growth and what is the state of the u. S. Consumer . Those are the questions and that is the issue i am the most worried about. David the psychology of the consumer is not being more conservative, but also being more conservative about their personal safety. How willing are people going to be to go back out even when they are allowed to go to restaurants and participate in the economy . Pres. Kaplan there are three levels of issues with the consumer. One is personal safety. This is why testing, the ubiquity of testing is so critical. If you had widespread testing at scale, i think i would do a lot to give consumers confidence to going to the work lies, to go out to restaurants, to go to other public gatherings. That is dependent on how available is rapid testing. The other two issues are job insecurity. I just saw survey from the new york fed that said Something Like 70 of all workers are worried about their jobs, about losing their jobs. Then there is that insecurity. The last issue is what is happening to the consumer financially, particularly that segment of the population, which is sizable, that does not have much savings and lives paychecktopaycheck. This will make it so theyre even more cautious. Those are the three big issues that affect the consumer. David as we look at the models you run at the fed, is it likely the pandemic will affect potential growth for the United States . Before it was probably around 2 . Does it take the number down so what going out . Pres. Kaplan it may. We will have some snap cap we will have some snap back growth in 2021, we will grow at a higher rate. We think we will grow a lot faster than 2 because we are making up for what happened this year. After you get into the future, their toes to think the drive potential growth. One is growth in the workforce and second is growth and productivity. The concern i would have if you have a number of people that will lose their jobs and have to find new jobs. Some of them, who are older, it is possible will decide to retire or withdraw from the workforce. Others will need to get retrained. Some will find it hard to find other jobs. Workforce growth as we are running down the employment rate, you would expect a good rate of workforce growth. As we run that down, we had a workforce growth issue coming into this because we are aging. Demographics were such we already had a workforce challenge and we will have to look at that. That means job trading. It also means revisiting immigration, appropriate immigration, ways to grow the workforce. The second issue is productivity. Ive talked a lot about that at the fed. Ledu. S. Going into this has to the world in math, science, reading. 25th out of 35 industrial nations. Why we have beefedup skills trading, we are also not doing it fast enough to keep up with the changes of technology and Technology Enabled disruption. You also worry about the level of Government Debt squeezing out some private investment into capex. We will have to address all of those issues, and i know we can, so we can grow faster. Also, potential growth could slip, and we already thought going into this crisis, we were concerned potential growth would erode over the years because of those drivers i just talked about. David how much good it slip . How much could it slip . Pres. Kaplan if you would talk to me in january i wouldve said the potential growth is 1. 75 to 2 . I would say that is. 5 in workforce growth and 1. 25 growth in productivity. Still we still have to address the workforce growth issue because of aging. That has not changed. Then the issue is is productivity going to get better or worse. We already thought in january in january if you wouldve asked me that over the next five years we could see potential growth slide to closer to 1. 5, heavily due to demographics, and then the question in our minds was can productivity improvements make up for it. I still have the same concern. David lets talk about your district. It is right in the middle of the oil patch. It onl industry is taking the chin. Give me a sense of how you evaluate the effect on your , notict at the economy just from the oil workers, but from all the service workers. There are a lot of jobs involved in Oil Exploration and development. Pres. Kaplan the oil business and related business is about 9 of texas gdp. That might surprise people, but over the last 25 to 30 years the state has grown dramatically and we have diversified into other industries. Thiswith that percentage, is an extremely difficult time for the oil business. The price of oil is down dramatically because of oversupply, and it is not economic for a lot of producers to produce. What they are doing is shutting in production. They are stopping production. Youll see a number of failures in the industry. People cannot make it through this. For the service providers, their obviously suffering because there is less production. We had expected in the Energy Sector to be down tempers we had expected capex in the Energy Sector to be down 10 . It will be down much more. There will be job losses. Even when you look at your screen, you see the quoted price. F brent and wti the local price is even lower. Why . We have so much oversupply we are on the verge of running out of storage. If we actually fill up the storage where there is no place to sell the product, you will actually see the local market thees being well below quoted market prices. That makes it even worse for producers where they cannot make the profit at these levels. That is where we are right now. After we get people back to work and start to resume appropriate consumption, some of this excess will take several months to work off and into next year. And then he will get to a more balanced market. Right now we have an extraordinarily imbalanced market. That takes into account the recent deal between saudi arabia and opecplus. It was not enough to overcome the huge amount of data oversupply we have right now. David there is a limit to what the fed can do to address that. It this time for fiscal intervention through bailout or now we have reports the government is thinking about paying to keep the oil in the ground. To things like that make sense . Pres. Kaplan i will leave it to the fiscal authorities to make those decisions good the point of it is we are getting to the point where there is nowhere for the production to go. There is dramatically reduced demand and nowhere for the production to go. I can see why the government is considering incentives to encourage producers to produce less, because all it will do is fill up the tanks faster and because the price to plummet even further. This is an extraordinary situation. It will eventually work itself through, particularly once we get the economy turned on. Talkednearterm, i regularly to people in need to street who have never seen anything like this. Because they have never seen the demand destruction we are seeing. I can see where extraordinary steps to keep those tanks from being filled up could well be appropriate. David the fed has done an awful lot already. Last week it took a lot of peoples breath away. What is next . We are nancy pelosi talking about a loan to mortgage lenders. Would you be in favor of expanding the lending facilities to other sectors . Pres. Kaplan what is going on at the feds we are standing up a number of these facilities. We have announced a number and a number are up and running. Some of them have been announced but are not up and running. We are furiously working aroundtheclock at the fed to get a number of these facilities set up to where money is being dispersed. Beyond that, we are continuing to look for pockets of the economy that have been overlooked in what we are doing, and through no fault of their own are under stress. I would say my own mindset would be we should be openminded about containment. Do not look for areas where there are not profits would be a good example. The issue of mortgages, Mortgage Services is something under a lot of stress. What our goal is is to have appropriate market functioning, and our other goal is to keep intact the maximum extent possible businesses and nonprofits that went into this healthy and only are under stress because of the situation. We would like to do what we can to help them come out the other side and continue to function. I would be openminded about what else we might need to do. David this takes us to a challenging point, the socalled moral hazard. Came in not so healthy, you have to bailout both to get through. Are you confused are you concerned about the moral hazard and how do we get off of that to returns were world where you are rewarded for prudence and not the opposite . Pres. Kaplan i am concerned about that. That is why on the corporate ofd program we set a cutoff march 22 if you are Investment Grade on that date, you are in the program. That will include some fallen angels, companies that were Investment Grade that have been downgraded. We have said we will buy highyield etfs, but that will be in relatively small size and is intended to help market functioning. I am concerned from the feds interveningw about for help in business where they were leveraged going into this and we are taking action in those cases. That is an issue for the fiscal authorities to decide and that is their judgment. I do not see the fed doing that. David thank you so much, robert kaplan, president of the dallas fed. This is bloomberg. Nowadays you do more from home than ever before. The xfinity my account app puts you in control with Digital Tools to give you the help you need when you need it. Get fast and easy answers with personalized help 24 hours a day, 7 days a week. Change your wifi password to a phrase thats easy to remember. Even troubleshoot your services on your own. Were working to make things a little easier for everyone. Download the xfinity my account app today. Vonnie it is 1 00 p. M. In new york, 6 00 p. M. In london, welcome to bloomberg markets. Im vonnie quinn. Lets have a quick look at where we are. The next 30 minutes, we are speaking with Ted Goldthorpe bc partners. An interview that you dont want to miss, fantastic outlook on where we have been with the market dislocations. Starts plungesing the most since 1984 as coronavirus rocks the real estate market. We will hear from cheryl palmer. Impact of the coronavirus pandemic on the Municipal Bond market. Nearly 4 billion in federal aid to keep running in the weeks ahead. Lets get a quick check on markets. The s p 500 has been making an effort to stay positive that we are down a 10th of a percent. The