When it comes to the dow jones, boeing is the worst performer, proved to be a drag. The 10year yield, down slightly after the economic data. Back below 20 a barrel on crude oil. Itn the government saying may give producers money not to take oil out of the ground. The next backup about 41. Lets get some details from Abigail Doolittle on the markets. Abigail it is proven to be a choppy, volatile day. Small moves but nonetheless, up and down, as investors do with jobless claims, earnings. Hat last leg lower right around the time Governor Cuomo said that the shotgun for new york state would extend to may 15, a leg lower. Investors trying to figure out what is behind all the information for data, earnings, and the virus. Behind those moves up and down, distinct camps. Amazon up for the second day in a row, investors think that this company will do well in the shutdown. On the other hand, United Airlines plunging 10. 5 . Some viewing the bailout for the airlines as not enough to do anything for these airlines that keep them limping along. Jpmorgan down on the dismal earnings report, as investors content with the reality of earnings. Another risk market that we look at quite often, credit. Hyg, thechart of highyield etf. After last weeks efforts by the fed, we had a huge rally in credit. Taking a, we see little bit of a breather. Appetite on the day a bit neutral as investors are contending with all of these different factors. Vonnie thank you for that. Bc partners, an alternative across private equity, coinvesting, credit, Ted Goldthorpe joins us now on the phone to discuss all of the dislocations in the markets, where he is finding opportunity. Talk to us about recent weeks, the landscape in credit, more broadly, the dislocations that have been so shocking . Ed thank you for having me on your show. We are definitely in an unprecedented environment. We have had, effectively, 2008, 911, and an oil crisis all happen in a short amount of time. Markets adjusted very quickly in march. With the fed getting involved, you obviously have more normalization happening in liquid markets, but there is andl a lot of uncertainty price discovery in the liquid markets. Vonnie we have seen a massive distance difference in offerings. Is5 yield on something that 5. 5 in the more liquid markets. Talk about that dislocations and when that gap will narrow, if at all. Ted it is still pretty fresh. This only started to occur in the last couple of weeks. Most companies will come out with ok First Quarter earnings. Second quarter will be extremely weak, especially for directly affected a sect yours. Marketslliquid markets, are you have the ability to trade or sell out, there is a lot of price discovery. Very little in the way of new loans being made by lenders. To the is extremely wide extent you want to get something done. There continues to be a lack of activity outside of the liquid markets. I contrast that with the illiquid markets, where you have a ton of new issues, including hospitality, cruise lines, airlines, everything thats been directly impacted has been able to raise new capital. How does that compare to other cycles . Theseve seen several of cycles and there was definitely the expectation that something would happen, but nothing on this scale. Would you say there is any comparison to be made . Ted this is really unprecedented. We have both a demand and supply huge disruptions to demand, supply chains, massive spikes and unemployment, mortgage democracies, and it all happened so quickly the liquid sees, and it all happened so quickly. Everyone was teeing up for a recession over the next two years, but people were not coming ove into his wildly over their skis, but nobody expected the impact it has had on certain sectors, broadbased against the whole economy. There is really no comparable time to this, including the great depression. You have not seen our economy shutdown or a short or prolonged until of time. Typically when you see a shock like this, it is potentially regional. The russian defaults, what happened in asia in 1988. This is truly global. You dont have parts of the Global Economy offsetting each other. Vonnie tell us about the bdcs. You have a unique insight there. Is the Market Pricing in for a total meltdown . Bdcs have sold automatically, both in the debt and equity space. What is being priced and is unfathomable. Foremost, the market is pricing default rates, which has never happened before. If you assume a normal recovery rate on loans, most bdcs, including the best managers, are pricing in default rates that are five or six times what happened in 2008. We do think defaults are going to spike, they are a lagging indicator, especially in the middle market. To getes have liquidity by in the next couple of months, but what is happening now is truly armageddon space. Vonnie talk about what you are doing at bc partners. You have probably been of event, some sort maybe not like this, but im sure you have some dry powder. Ted we are focused on sectors mainly not directed by the covid19 virus. In march, we were buying debt against companies that we truly felt the impact would be minimal. Think software, cable, certain arts health care. The market in march was indiscriminately selling. Large capital structures, small capital structures, bb, bbb all sold off in the same amount. Bb securities were underperforming cccs which is relatively unprecedented. The fed and the treasury have done a great job taking quick and Decisive Action that has largely corrected itself. The fire sale that happened in march, a lot of that has corrected itself throughout the course of the last two weeks. Andquickly things sold off how quickly things came back has never been seen before. We had six of our seven worst trading days ever in the month of march. That two 2008, that happened over 18 months. All of this happened within a twoweek period of time. The feds actions have obviously made markets more normalized in the way they are functioning. Vonnie talk about the decision to only get involved in noncovid affected debt. You are not tempted by other offerings . Ted in our view, the pricing did not make sense from a risk reward point of view. Cruise lines, airlines, other directly impacted sectors versus completely impacted sectors. When we looked at where things were trading, you could buy cable which will largely be uninfected, in the 80s, while cruise lines were still in the 70s, or hospitality debt. It didnt make sense for us to take that kind of risk for our investors. We are fundamental investors. Trying to underwrite earnings or on a go for basis of these companies is very difficult. You are basically trying to unprecedented situation. We generally feel the vshaped recovery will not happen. It will take a long time for indirectly impacted sectors to get back to normal. Vonnie you also have a special situations fund. At apollo, one of your specialties was energy. Anything going on regarding energy . Ted definitely a lot of special situations in energy. We have not been active in that area. The outlook is pretty grim shortterm. Actions u. S. And opecs will have somewhat of an effect, but the demand destruction has been unprecedented. With everyone staying at home, people not driving their cars, industrial activity down, oil activity is down 10 Million Barrels a day. No matter what you do on the supply side, it will take a long time to get things back in balance. Even though there has been a lot of production cuts announced, it will take a while for that to flow through the actual data. In the meantime, storage is getting pretty full. Again, the industry is doing the right thing. Coordinating a response in north america is difficult as you dont have a centralized authority managing these basis. Always comes back into balance over time through free market economics, but it will take a long time for that market to get back into balance. The answer to your question is we have not bought anything in energy yet. Sovereignswise, a lot of countries on the ropes before this, and even more now. Anything interesting in the sovereign space . Not one thing people are talking about enough is the impact on fiscal situations. The u. S. Economy and the u. S. Government is in good shape on a relative basis versus other countries, but the double whammy of a massive stimulus, plus a reduction in income tax receipts and others will have a big impact on fiscal situations around the world, particularly in europe. One way or another, we are going to have to pay for this, whether through higher taxes or austerity measures, or other measures over time. That will be a headwind for growth. When you think about this vshaped recovery, things getting back to normal, that is just another factor that will take a long time for us to normalize. Vonnie thank you for joining us. Appreciate your time, Ted Goldthorpe. Lets check in on the first word news with Mark Crumpton. Mark german chancellor Angela Merkel defended the work of the World Health Organization on a Conference Call today with President Trump and the rest of the group of seven leaders. Mr. Trump, the host of this years g7, said tuesday he is temporarily halting funding to claims or taking chinas about the coronavirus at face value and failing to share information about the pandemic as it spread. The is extending its lockdown for another three weeks in an attempt to contain the spread of the coronavirus. The announcement was made by the foreign secretary dominic rob, who is standing in for Boris Johnson while the Prime Minister recovers from the virus. The u. K. Has become the sixth country to have more than 100,000 confirmed coronavirus cases. Spain reported the largest number of coronavirus cases in a week. There were almost 5200 new infections in the last 24 hours. 551 fatalities, slightly higher than yesterdays number. Spain hasment says already overcome the peak of the virus. 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 this is Bloomberg Markets. Im vonnie quinn. New Us Home Construction in the month of march declined by the pandemice 1984 as the takes a toll on housing. We spoke with Sheryl Palmer about how the industry is adjusting to this new normal. We should beink surprised by the numbers, if you think about what has happened in the last 45 days. Marge was really a tale of two halves, we started to meet with some of the strongest activity in years. We just released our q1, sure that our orders were up 35 respectively, so tremendous momentum moving into march. By the end of march, it was a different environment across the country. Builders were either closed, or by appointment only, stayathome orders different across the u. S. As people disruptive were trying to find out how to operate in that new normal. Municipalities were staffed and very degrees by market. The permit process, i heard some permits were even quarantined for days at a time. There are a number of different factors, where we came into the month, and how we will come out, over the next few weeks. Can you give me some insight regionally . We have seen different orders from different states and counties on what to do, stay at home, can you give me some details on where there is activity, where there is a pause, stop . Sheryl most markets across the country have deemed construction as essential activity. There are some states that have not. Seattle, where we have generally been closed down for most activity. Parts of california. It is not even by state or market, it is very municipalityspecific on what the protocols are. Team ishat our operating under the safest protocols possible, being very creative on how they operate with the municipalities on inspections, both with individual progress inspection, as well as when we deliver to homeowners. Most parts of the country, as i said, have been deemed as essential activity, which is good news. Vonnie that was Sheryl Palmer, Taylor Morrison chairman and ceo. Virus outbreaks and u. S. Nursing homes highlighting the risk in muni markets. We will discuss that next. This is bloomberg. Vonnie this is Bloomberg Markets. Im vonnie quinn. Moment. Me for muni viruses at senior homes across the state lacking sectors that are largely unrated. Taylor riggs has more. Taylor joining me to discuss all of this is eric kazatsky, our senior municipal strategist. You have done a lot of Research Within the Senior Living facilities, some of those credits. What are the unique risks you are seeing in that space . Eric thank you for having me. As you said, there are couple of unique perspectives here affecting the credit. The first being covid. Senior housing stands out as a place at risk because you have an elderly cohort who is high at risk to contract the virus, and also the as they are in. You not only have a risk factor of people coming in from the outside to service the residents, but the close proximity. Coupled with that, you have recessionary pressure. On aof these homes work model where people are transitioning from selling their primary residence to put up an entrance fee to come into the Senior Living facility. As we saw in the last recession, those facilities who depend highly on those contingency models tend to do poorly in those environments. Lastly, we are looking at a potential illiquidity problem. We looked at trading the other day, and a lot of them were below par. What that means for Portfolio Managers is the duration of the bonds they are holding is longer. Illiquidityin that issue, you are noticing that in the high gilt markets, have any of the dislocations in highyield munis eased at all . Eric on the margin i would say yes. Look at some of the bellwether names. Things that really have a high trading volume. We saw those in the mid70s pricewise. This is a bond that a month and a half ago was trading at 109. Been firmer footing, but when you compare what is going on in the unrated Senior Housing sector to highyield, you almost have dd underperformance. Taylor you have done some great analysis on the state of new york, credits. Extendingill be their lockdown until may 15. What does that mean for the credit of new york . Depends onally whether you are looking at new york city or new york state. Two different animals. They are both dependent on sales tax, and that is going to be a game changer for not only new york a lot of state and local credits. They are losing out on this bucket of revenues that they were dependent on before. Something that will really play out a year from now will be the loss of income taxes for city residents, people who commute into the city and a those income taxes. That is not only a problem for places like new york, but philadelphia, where 40 of their revenue is from income taxes of nonresidents. Taylor those local credits could be the mta, ridership is down, any concerns about their income stream . Eric that is a huge issue. They announced they needed another 3. 9 billion in emergency aid, on top of what they already received in the cares act. They are raising the flag, sending the alarms out to the muni market. Spreads widened considerably. They started to tighten in april, but we think they will start to widen again after this announcement. Taylor that was eric kazatsky. Vonnie taylor riggs with our muni moment, thank you for that. Lets take a quick look at the markets. The dow is down. 6 . The s p has been flipflopping all day between gains and losses. The nasdaq holding onto those gains. The 10year yield at 60 basis points. This is bloomberg. You doing okay . Yeah. This moving thing never gets any easier. Well, xfinity makes moving super easy. I can transfer my internet and tv service in about a minute. Wow, that is easy. Almost as easy as having those guys help you move. We are those guys. Thats you . The truck adds 10 pounds. In the arms. Okay. Transfer your Service Online in a few easy steps. Now thats simple, easy, awesome. Transfer your service in minutes, making moving with xfinity a breeze. Visit xfinity. Com moving today. Mark im Mark Crumpton with bloomberg first word news. Democrats in congress and treasury secretary Steven Mnuchin will try again today to reach an agreement on the next stage of an economic rescue package. The two sides remain far apart after the first day of talks. The negotiations are taking place as the 349 billion dollars federal Relief Program for Small Businesses devastated by the virus pandemic has already been drained. Italy is reporting its highest new coronavirus cases in or days. The government says there were more than 3700 new cases come over 1000 before the day before. Cany now has nearly 169,000 virus cases. The Prime Minister is working with Emergency Task versus two map every start for businesses that are being crushed by the lockdown. China is denying allegations of the coronavirus pandemic may have started in a lab new the city of wuhan, where contagious samples were being stored. Delayedso denies it reporting the outbreak and underreported cases. The virus is widely believed to have originated in bats and passed on to another species to humans in a wet market. A Firm Determination has not been made. 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. Amanda live in toronto, im amanda lang. Shery im shery ahn in new york. Welcome to Bloomberg Markets. We are joined by our bloomberg and Bnn Bloomberg audiences. Here are the top stories we are following from around the world. U. S. Stocks volatile with the s p 500 now flat after swinging between gains and losses throughout the session, the index struggling to stay positive or the week as earnings season gets underway. This as we get another round of brutal economic data. Topped 5ess claims million last week, bringing the total over the last month to more than 22 million, effectively erasing a decade worth of job creation. The Canadian Software company that picked up signs of the coronavirus before it even had a name. The bluedotk with ceo kamran khan about how his company is using mobile phone data to track infections around the world. That conversation is still ahead. A check on the majors, we definitely have information to chew on. Markets are about as flat as we have seen in a long time. Tech stocks are mildly positive today. But given the kind of volatility we see in these markets day in and day out, this is a flat market. Dipping into positive territory but energies and financials remain real drugs on the market. The Energy Subgroup down 3. 7 . Health Care Consumer discretionary, staples giving us a boost. Amazon and netflix, call it the stayathome affect, but overall this feels like a market on hold. Nancyt to check in with davis, chief Investment Officer with quadratic capital. In theg all of this context of those jobless claims numbers adding on top of what we have already seen. Additional data points of pain. When you see a day like this, give me a sense of what you are seeing in the action . Nancy the market is at a very uncertain point. The impact of the virus on earnings is yet to be determined. These are just unprecedented times we are living through. The question is really is the monetary and fiscal stimulus enough, is it too much, or not quite enough . It is a question of when the whenmy opens backup and people will have a break, be able to go back to work and turned the economy back on. It is completely unclear at the moment when various countries, cities, regions will be open. Shery there are so many different regulations in place all across the world. The restrictions and the easing of the restrictions may come gradually. How will that affect the markets , given that we dont know even after the lockdown is done with, will people go out and spend and go back to normal after all of this social distancing habits . Nancy the one thing is we will have a new normal. I think the virus has changed the way that people react. It is not going to be the way it was, it will definitely change interactions globally. The question is what do we do now, and are we heading for an extended depression with all of the Economic Activity coming to a halt . Or if we can open back of the market, was the policy response hopefully too much, and we see inflation or problems come into play. Today is 60bond basis points. Back toconomy does roar life and the monetary and fiscal policy was enough, you could also see inflation becoming a concern for people with a 10 year at 60 basis points. If it goes up 100 basis points, still to a normal level of 1. 6, investors could lose about 8. 7 with that move in yields. It is a challenging time for investors because we dont know when people will get back to work, when the economy will open up, and also whether the stimulus has been just right, too much, or not enough. It is not clear until the economy restarts. , becauseo interesting we are having this conversation about inflation. It has been a long time since that is a conversation anyone wanted to have deflation seems like the more immediate pressure. When you think about playing that kind of inflation, you offer up as a hedge . My personal view, this is textbook stagflation happening right now. Slower growth, higher unemployment, and higher prices, which we are seeing right now in certain sectors like food and basic supplies, in the form of supply shocks. I think were in a stagflationary period. We created an etf to access this foret, called ivol, interestrate volatility. Portfolio, but then we enhance it with options on the shape of the u. S. Yield curve. If you think about what the yield curve is, it is the difference between short dated and long dated Interest Rates. It is really an investors expectations for inflation in the future. Right now, the whole market is in the camp of deflation forever, so low 90s an expensive options, we think is a prudent hedge. We dont know when the economy will restart, and when it does, if it roars back to life, it could be highly inflationary because we have just spent 10 of gdp on helicopter money, policy rates at zero, not just here but around the world. We think its a great time for investors to be looking to diversify, whether we have stagflation, inflation, or the really bad node of depression, where the economy stays closed for a long time. Hopefully that does not happen, hopefully is not a concern. I think investors have to be looking at ways to diversify their portfolio with strategies that give different outcomes. Ist is why we think ivol uniquely positioned because it has that interestrate option on portfolio tops benefit, if yields go lower. At that point, that would mean negative Interest Rates in this country, which is hard to imagine, but if the economy does stay closed for a very long time, what else can policymakers do at this point to stimulate things . Shery yet, we could see more coming. We are hearing from congress, the president that money has run out for those Small Businesses already. When we get that huge injection of funds in the markets, how do the markets prepare or that for that . The the market nancy market is forwardlooking. Equities have are covered there has been so much policy reaction both on the monetary and fiscal side. Is, everyone was talking about the market being goldilocks before, where it was the perfect balance. Analogy, ifsame this was goldilocks goldilocks have less has left the woods and we have gone into the bears cabin. We dont know if the forge is too hot. Too much stimulus. Or is it not enough, because the economy will state closed for longer and we need more stimulus to come and more potentially negative rates. Or is it just right . It is a challenging time, which is why ivol, as a defensive strategy and investors for olios to position for stagflation, inflation, or potentially a depression, is a good strategy to diversify in this environment. Shery nancy davis, thank you coming up, canadian Prime MinisterJustin Trudeau lists an bluedot in called his fight against the coronavirus. More with the founder and ceo dr. Kamran khan. This is bloomberg. Amanda im amanda lang in toronto. Welcome back to Bloomberg Markets. Role of Tech Companies in the fight against covid19 is one that has only been growing. In toronto, bluedot was among the first to use its Ai Technology to spot the Novel Coronavirus in december. Founder and ceo kamran khan joins us now. Thank you for being with us. Foundk to what it was you , why were you using for it, how does that anomaly pop up . Dr. Khan thank you for having me. At bluedot, we have been building what we call a global Warning System for infectious toeases, actually goes back the sars experience we had here in toronto in 2003. I was working as an Infectious Disease physician. Going to december 31, we have been building a system that is tracking Infectious Disease threats and outbreaks around the world. We learned in 2003 during the sars out right, if we wait for governments to report information, we may not always get it in a timely fashion. So we built an engine using natural language processing Machine Learning to scan in hundreds of thousands of articles online in 625 languages, every 15 in its aroundtheclock, looking for news about outbreaks involving 150 different diseases. We picked up this story Early Morning december 31 about an on dont pneumonia unknown pneumonia in wuhan centered around this wet market where animals were sold. On us thately dawned there were a lot of parallels to the sars outbreak. Shery your platform really comes through all of this , mobileion, sources com data. I want to get to the privacy issues that could potentially be a problem, but first, with so much Data Available to you, are these lockdowns, social distancing efforts really working to curve the infections . Dr. Khan no question, social distancing is flattening the epidemic curve, as we have heard. Ultimately, this virus spreads from person to person. To the extent we can minimize the number of contacts between people, we will slow the spread of the virus. This is very important, because as we have seen in other parts of the world, including new york state, europe, italy, if not curve grows exponentially, you can overwhelm health care system. That is what we are all trying to avoid, so we have the quality care at all of our patients need. No question, social distancing is having an impact, and it will be necessary in order for us to avoid an explosive outbreak, like he had seen in certain parts of the world. Amanda do you expect that we will have to monitor continue to monitor this . One of the big issues now is tracking, testing, measuring. Will your technology be a part of that as we seek to reopen the economy . Dr. Khan absolutely. Isortunately, this pandemic not going to end in a matter of days or weeks. It will go for some time. Open art to the reopen society, the economy, that means there will be additional movement, we will have to still look at social distancing until such a time that we have an effective vaccine, get everyone in you to this virus. Leading up to that is probably 18 months or so away. So we are going to be having to do this for a significant amount of time. We are also working anonymously with mobile device location data to understand population movements, where social distancing is working, where it is not, where Health Care Resources may become stretched. Those types of analytics will become perform important from a Public Health perspective in terms of mobilizing the most Effective Response weekend. Shery let me get to the privacy issue because we are talking about flight data, mobile data, all sorts of information. What issues could you encounter, how are you dealing with mitigating privacy concerns . Dr. Khan thank you for the question. It is a really important one to us. All the data that we work with his anonymous. We are also analyzing billions of flight itineraries, ticket sales on airplanes around the world to understand how populations are moving and ultimately anticipating how these diseases can spread. We did that out of wuhan december 31 and identified locations across the globe that would be at risk of having this virus spread to them, and we published this in scientific literature in early january. With respect to mobile device data, that is also anonymous data. We aggregate all the information up to the level of population. We are not interested in tracking individuals or identifying people who are sick with covid19, or their contacts. I know there are other measures that other organizations have been doing focusing on that. That is not at all what we do. In theerest is not individual but understanding the movement of populations so that we can anticipate how this virus will spread, where it is going next, so we ourselves can be a step ahead of it. Shery dr. Kamran khan, thank you for joining us. A very interesting conversation. Bluedot founder and ceo. Morgan stanleys best trading performance in a decade caps off and a quarter were wall street capitalized on markets, but the firm cast doubts on whether that can continue. The Morgan StanleyCeo James Gorman spoke about the Economic Impact of coronavirus, and his own recovery. I am doing great, thank you, completely recovered. 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. Unpleasant, certainly in those conditions, it was manageable. My heart goes out to those folks who were not that unfortunate fortunate, those that had underlying issues, the elderly that have struggled, tragically passed away. I just wish everyone well who gets it. Stay hydrated, stay rested, wish them the best. I second those wishes. Told me yesterday that this is much worse than the 2008 financial crisis. What kind of base Case Assumptions are you making at this point for the recession and the recovery . Im not sure i agree with that. The Economic Impact to gdp decline is obviously much worse, but it is so specific, built around the virus. What kind of world will we have been we have immunity from it, the right testing . There are so many unknowns. 2008 was a fundamental collapse of the whole system. Not been for the system being rescued, who knows what types of longterm damage might have been done to the economy. These are both truly tragic situations. Perspective, running a company, a few things you have to focus on. We had millions of clients trading trillions of dollars all around the world. Our plant has to be able to work. We have to facilitate them doing that so that they can manage their businesses. They have to have the ability to manage their own liquidity, funding, capital needs, and we play a Critical Role in that, one of the largest what managers in the world. Number one, the plant has to work. With 90 of our employees at home, we have had almost no issues. That is a remarkable achievement of the tech and ops team. Back ontarily cut our buybacks to zero, we thought it was best support our clients in need. They are obviously doing Everything Possible in their communities. 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 and of time communicating with them, setting up plans, what it would be like to bring people back to work, starting to think about what the future may look like. Will beu dont think it as bad for Morgan Stanley or the Banking Industry as the 2008 financial crisis was. What about the broader economy . On alion people file for planet benefits, in excess of 22 million since this began. How do you even fathom or model the kinds of dislocation, unemployment that that will produce . The shock of this will produce is something we have not seen since the great depression, far more than what occurred in financial crisis. In addition, we have this Massive Health crisis, which is working its way around the world with, at times, devastating consequences. You cannot model this. You have to preserve your capital, make sure you are wellpositioned with risk, manage your way through that in a way where the whole team is working together. We have daily operating committee calls, Risk Committee calls constantly. Arranged team is around how we can do our job for our clients, and how we can stay stable during a period of incredible dislocation. Gorman that was james with erik schatzker. Sonali basak following bank earnings. We just heard the banks need to prepare but none of them could have known what they were preparing for in terms of how well capitalized they are. When we see their various earnings, how is this playing out . Sonali capitalization is not the problem as it was in 2008. The problem moving forward is nobody knows what the recovery will look like, the brunt of the losses that they and their clients will take. The wall street businesses, trading, really propped up a lot of profitability here. A lot of the profit dropped that a lot of the banks, but the bright spot was treating. What happens next . Morgan stanley is the number one trading shop on wall street when it comes to equities, they have the biggest prime brokerage. Trading volumes at the beginning of april were lower. What a difference this pandemic has made. Trading divisions had such a difficult few years. It was the lending unit helping the banks. It is a complete reversal. Sonali that is true. For the last year, you had the consumers propping up these banks. Traditional wall street firms diving into maurice hill businesses. Morgan stanley buying e trade, Goldman Sachs buying united capital. The future of all of those businesses is very unclear in such a rocky market. We know they could benefit from the growth in deposits. When we do not know is how Consumer Spending and delinquencies will be impacted. Sonali basak, thank you for joining us. The latest on bank earnings, as bestw Morgan Stanleys trading performance in more than a decade. We see a mixed picture across markets. The s p 500 down. 1 . The nasdaq gaining ground. More market coverage ahead. This is bloomberg. Is 2 00 in new york, 7 00 p. M. In london. I am scarlet fu. Romaine i am romaine bostick. This is Bloomberg Markets the close. Interesting day in the markets. We have been all over the map. A strange day. We saw the nasdaq at one point recoup all the losses for the year and turn green. It has backslidden a little bit. The dow jones is below are a good portion of the day. The s p down about. 1 . Only three of 11 sectors are in the green at the moment led by health care and discretionary names. Is interesting is most of these what is interesting is most of these discretionary names look more like recessionary names. These are your leaders of the day. True discretionary names