The dollar index is above 100. Crude is trading at 1. 30 right now. Europe, guy. Vincent lets take a look at what is happening here guy lets take a look at what is happening here. As you can see, it is down heavily on the day, but still trading at 20 a barrel. Down by 20 on the session. We are hearing the currency effect coming through. One of those is the norwegian krone. The dollar benefiting as a result. Copper trading sharply down as well. We are seeing this bleed into other parts of the commodity space, as a result of which the lead sectors down are the oil and gas sector and the mining sector. European equities down by 2. 37 at the moment. Every single sector in negative territory. Vonnie a rough day, for sure. For more on the ripple effects of the oil selloff, we are cibcd by rebecca babin, private wealth senior trader. Anticipating that it would run out of shares, waiting for the sec to issue more. What do you read from this . Should we think of it as having wider implications for the Retail Investor . Rebecca i think the take away for this is in the near term until they can register more shares. Uso is no longer entirely reflective of the underlying commodity, and will trade at a discount. The readthrough to the Retail Investor is to know going in that this is less about an underlying exposure to the commodity and more about supply and demand about the share creation issues. This obviously is a hugely negative feedback loop throughout the commodity complex, which started with the front month trading negative. We are kind of in this vicious cycle where we have one very specific event related to they develop into a contract reading through into various Retail Products that kind of continues to reverberate, but ultimately, the uso share creation should come through in a fairly short time, and we should be able to see uso trade back to its nav. Vonnie the 4. 3 billion energy etf, about 1. 6 billion of that plowed in last week, and now it is trading in negative territory. Is anybody a counterparty to this . Whos on the hook for this . Rebecca for uso exposure . Vonnie trading negatively, yeah. Rebecca i think there is still uncertainty, but i think there is speculation that the cme or clearing exchanges may be somehow on the hook for that or the etf provider. Unclear right now if the june contract were to go negative, who would be on the hook for that, but it is certainly part of the enhanced volatility we are seeing around the trading both in wti and uso today. That is a playbook that i think we are still waiting to see how that is written out. Good morning. The u. S. Rig count is half where it was a year ago. Lets talk fundamentals. In a month, where do you think u. S. Production is going to stand . Rebecca it is a great question, and i wish i knew the answer. Production coming offline unfortunately is not as fast as the headlines scroll across our bloomberg. We see the rig count falling in the headlines about E P Companies slashing capex and production, but that doesnt readthrough typically in weeks. It does tend to take somewhere in the order of months to see that. In this situation where the price action has been so devastating and violent, we may see those readthrough more quickly in the coming months, but we should not expect it to be something we see in weeks. Somes certainly uncertainty around how soon this can resolve itself, so we are really playing a timing game here of how quickly the production can come off and demand stabilize versus how quickly storage is going to fill. I think estimates for supply reductions are in the neighborhood of two to 3 Million Barrels of u. S. Supply coming off in the next two months. Again, that is a pretty wide range, and theres a lot of uncertainty around that number. Say, this is now working with a lag, so lets talk about current pricing. Ive got may at two bucks, nearly three. Ive get july 20 three dollars, august at 25. Do you think those months, particularly the further out thes, come down if some of production isnt taken off as quickly as required . Rebecca thats a great question, too. It would feel that way in the near term, but heres the underlying question. It really depends how quickly virus comes back post quarantines. We have demand really flatlining and dropping at 20 Million Barrels a day. Those numbers are clearly too high. If demand can stabilize and improve over the coming months as things reopen, those numbers are reasonable. You have to keep in mind, what we are dealing with right now is literally demand dropping 20 Million Barrels a day in our current environment. I think the forward curve is anticipating an improvement in demand, which seems rational given especially where other Asset Classes are trading, but if that doesnt come to fruition, they will be a lot of downside. Vonnie the president tweeting out about the oil market in the last few minutes. It sounded like he was open to the idea of what you might call a bailout. I presume you saw the tweet. Ive instructed the secretary of energy and secretary of treasury to formulate a plan to make Funds Available to these very Important Companies and jobs to be secure long into the future. What do you, someone in the industry, see that being . And will Congress Even allow this . Rebecca weve seen a lot of tweets and headlines from trump about the Energy Sector in the u. S. They pack a big punch when they come across, but they have not come to fruition. A lot of that has to do with congress. A lot of that has to do with the mechanisms of supply and demand within u. S. Energy markets as opposed to a fixed structure like you see in opec. Theres a lot of uncertainty of whether he can really fulfill these promises. I would say the market at this point is pretty much discounting his ability to make those deals cross the line and get the bailouts that he is speaking of. That doesnt mean its impossible. It just means he hasnt been able to deliver them yet, and time is of thely essence. The commodity market is trading in realtime, with prices trading negative. We need congressional approval. We need mechanisms, and unfortunately, it is probably going to be too late to have a real impact. Vonnie if this is the eye of the storm for this market, with the market in distress, do all companies associated with this make it to the other side given that banks are probably being pretty lenient right now . There are a variety of ways to get through this. Does that mean that everybody will survive . No, not everyone will survive unfortunately. That is part of why this has been such a difficult selloff. Theres going to be some companies, Smaller Companies that have a lot of leverage or dont have the strongest Balance Sheets, that cant weather this storm. Theres going to be continued bifurcation within the sector, where you have the haves who have the ability to Access Capital and have strong Balance Sheets really prevail and do well, and you have some that dont make it. The Silver Lining here is that hopefully, that is the transformation that the sector has needed to accomplish to be sustainable and successful in the future. Although that is really painful now, it should be the longterm solution that creates stability within the group. Guy we are going to leave it there. Think you so much for your time today. We really appreciate it, rebecca. Rebecca babin with cibc private wealth management. Lets catch up on the news you need to know about. Here with the bloomberg first word news is ritika gupta. Ritika there is speculation about the health of north koreas kim jongun. U. S. Officials got word that kim was in Critical Condition after cardiovascular surgery. The white house was said to be told that kim took a turn for the worse. He missed holiday celebrations in pyongyang. President trump says he will temporarily suspend immigration to the u. S. That came in a late night tweet. He said the move would protect the jobs of american citizens. There was no word on how long the suspension would last or who would be affected. Senate democratic leader Chuck Schumer says there is a deal on the latest emergency economic rescue package. The Trump Administration says the two sides are close. This bill could be worth up to 500 billion. The measure would add funds to the depleted Small Business aid program and provide money for overwhelmed hospitals and coronavirus testing. In italy, the government will present a plan this week to ease the rigid lockdown. Prime minister Giuseppe Conte indicates it will take time and wants to lower the risk the virus will spread again. Italy suffered the most deaths after the u. S. 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. Gupta. Ika this is bloomberg. Guy thank you very much. Weve also seen comments coming through from chesapeake onto moving dbt btp from just a useppe conte from gi moving the btp market. Up next, more on President Trumps plan to suspend immigration. This is bloomberg. Bloomberg markets this is bloomberg. Guy from london, im guy johnson, with vonnie quinn in new york. This is bloomberg markets. A lot of moving parts today this is bloomberg markets. A lot of moving parts today. Lets check in on the market with taylor riggs. Taylor weve seen Oil Prices Still hovering near zero dollars a barrel, and you are seeing some of that filter up into the equity markets. You see equities down across the board, pretty much almost 2 . 10 year bonds are catching a bid. The 10 year yield down to about 56 basis points. We havent dipped below 64 basis points on a closing basis, but it has dipped below 50 at one point on an intraday basis earlier in march, so really heavy down near the lows on the 10 year yield. I want to take a look at the Oil Futures Market because again, yesterday was a mess, as we know , with the may contracts. Those expire today, so you see them flip back into positive territory at one dollar 40 since 1. 40 a barrel. Bank of america says we could see these contracts go to zero if we dont fix the demand issue. Dennis gartman of the gartman letter also said if the june contracts collapse, clearly this is not just a may contract glitch. This is a broader macro issue. I want to take a look at some of the earnings that we are following. Ibm yesterday reported after the bell. Revenue profit was in line, but you have a new ceo taking over. Analysts like the ceo, but remain very concerned about revenue growth. Cocacola also saying volume has dropped when he percent, and nordstroms has announced dropped 25 , and nordstroms has announced they will be amending their credit. I want to take a look at some of the positives we are looking at. Netflix, we know the story. They are posting first order results after the bell. You could see subscription additions that are really big. Amazon also reporting next week. They are still hovering near record highs. Tons of online ordering. Finally, Activision Blizzard is up as everyone is home gaming. Benchmark and buy share. To 72 a vonnie President Trump saying in a tweet he plans to suspend immigration to the United States over immigration concerns. He says the moves will also protect jobs. He did not give a timeframe or specify who exactly would be affected. Lets bring in Bloomberg White house reporter josh wingrove. Can you give us any more details as to what this weed actually means . [laughter] josh how many times have i been asked that question . We dont know. In particular, it sounds like they have not decided on timeframe. National,rien, the was asked how long could this last. He said, look, we dont know because we dont know how long the virus will last. Theres mixed reaction right now among republicans, decidedly critical reaction among democrats, as to what impact this would have. As for who this would affect, we dont really know. Theres already a lot of measures in place. The Immigration Service is already restricted or closed most of their offices abroad. There are already ongoing travel restrictions to europe, china, canada, mexico as to who can come already. , thed the scenes of that immigration process has been churning along, but we dont know on what he is planning on clamping down. Throughout this pandemic, hes made a point of saying that this only reinforces the need to do the stuff we always the stuff i always said we should do like strengthen borders, so it looks like you will use this border make a. 1 way or another on immigration. The is this being driven by Health Care Officials in the white house or the economic officials in the white house . Ive read a certain amount that seem to suggest the president is concerned about the unemployment numbers, and this is a response to those figures. Is more likelyt just driven by the president himself. When trump enacted those european travel measures, the second big move he made, china came first, and about five weeks or so later came europe, at the time, the Health Officials were kind of mixed on the results of that. They said the virus is already in the states. Travel demand is starting to fall anyway. We should focus our resources on containment. But trump favors these measures, and since then, other restrictions have come into play. I dont think there is some grand push by advisors for a big medical reason to do this. Immigrating to the United States takes years. If you freeze it for a few months, we will see what happens. If you are talking about a few months, it is probably more aimed at migrants rather than legal immigration. People who are legally immigrants are probably already banking on the sticking a long time, and if it is a few months freeze, that is just added on. ,onnie another little tentacle unrelated or peripherally related, is that people married to immigrants wont be able to receive stimulus checks unless the immigrant has Social Security numbers, so it is getting very in the weeds. What about the interim stimulus deal that has been reached . What does the white house think about it . Little mixed on whether there has been a deal reached. The Top Democrats in the senate Chuck Schumer said today that they had a deal, but were still dotting is and crossing ts, but we are hearing from her publican sources that we dont necessarily have a deal quite yet. It does look like it will get a vote in the senate and the house this week, exact days to be determined. It seems like they are shooting to get the senate vote today, but i think theres some dealing that therescans unease saying there is a deal. It looks like this will add some 310 billion to the patek to the paycheck protection fund, the Small Business fund, as well as 75 billion for hospitals, a certain amount for testing, although that remains a little unclear, that kind of thing. The democrats held up the straight topping because they felt the program was not working effectively. They didnt want to just throwing more money into the program that wasnt working. Republicans have responded by saying it is Democrats Holding up aid for Small Businesses. With the oilosure and gas industry have to some of these current programs being talked about, in terms of protecting workers and businesses . The president is talking about additional help for the oil and gas sector. What is not covered under the current scheme that could be added additionally to help oil and gas . If they could do extra measures on wage for oil and gas workers. The president dropped this in the last hour of so. Youre right, they can absolutely access money from the original package, but of course, we have seen oil markets on a ride since then, so it looks like trump is asking congress to a lot some kind of extra money also, but this isnt a part of the talks ongoing now. It will prisma believe maybe get put into phase for talks it will presumably maybe get put into phase four talks. Immigration is another example. Trump tweets things. There are rarely details attached to that. We all scramble in the hours and days afterwards to try to piece it together. The right now, it is not clear what specifically he wants for the sector or workers, and it doesnt look like it will be happening now either way. Vonnie thank you for that. That is bloombergs josh wingrove. This is bloomberg. Vonnie live from new york, im vonnie quinn, along with guy johnson in london. This is bloomberg markets. A shakeup at the top of German Software giant sap. Coceo Jennifer Morgan is abruptly leaving at the end of the month. Last october, morgan was appointed to the Top Executive role, along with Christian Klein , but the pandemic caused problems with the leadership structure. Klein will become saps sole ceo. Another hurdle for ibm in its transition to cloud computing. Its forecast for the year due to the pandemic. The theyted over say that over the next year, firms will delay plans. Coming up, we will dig into the details with nick colas, data track cofounder. 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. Guy from london, im guy johnson, with vonnie quinn in new york. This is bloomberg markets. The historic drop in oil prices is taking its toll on the bond market. The 10 year u. S. Breakeven rate, the proxy for average annual inflation in the next decade, reading further below 1 . For more on the impact of this historic price drop in crude is k colas, data track Datatrek Research cofounder. Going toct is this have, both in the economic trajectory and in terms of the way that relates to asset prices . Yes, it is, first of all, very historic. Ive been in markets 30 years and have never seen anything like this. To me, one of the more important longterm takeaways is just how hard it will be to gauge the u. S. Economy with all of these dislocations going on. Simple example, gasoline is 3. 3 of the u. S. Cpi. How do you think about inflation in the context of that . Then you factor in all the flowthrough effects that the economy is seeing right now in terms of disruption, all of them have a direct impact on how i measure inflation, how i measure unemployment, so we are really in a black hole of information right now because of all these dip look because of all of these dislocations. Guy do you think a Lower Oil Price will drive demand . Do you think a Lower Oil Price will have a positive effect on the u. S. Economy . It is really hard to see it in a world where, except for georgia and maybe a few other places, basically the u. S. Economy remains locked down, and theres a considerable amount of crude that continues to be pumped, and prices are going to go lower and lower. Im just wondering if there is an economic benefit that results from this. Unfortunately, the short term answer is absolutely not. Nobody is driving. 75 of americans commute to work in their cars. Another 10 commute by carpooling. So you have 85 shut down entirely as we work from home. In the shortterm, while these prices are interesting, they have no real effect on the u. S. Economy. When things begin to recover, they could have a beneficial effect because it Oil Prices Stay down through the back half of the year, that will have some benefit in terms of consumer pocketbooks. It just wont have the typical spillover effect that you see in the cycle when oil prices are typically low because we are not going to have as many different options of places to go, particularly in terms of recreational and weekend driving. So i modest effect in the mediumterm, no effect in the nearterm at all. Vonnie what will the Federal Reserve do with that data . How will it affect what the Federal Reserve is looking at . Nick it is a wonderful question, and we are thinking about that a lot because it is not just the inflation data, although that is very important. For example, restaurants are 6 of the cpi. It is a big number. How do you measure that when restaurants are only doing take out, and when they come back it will be on a limited schedule in terms of being able to reopen . In terms of inflation, it is a big black hole. We just dont know what inflation will look like for many months, and it is going to be hard for the Federal Reserve to calibrate that. In the near term, they are not so worried about that. But then the data will be very cloudy indeed. The same thing goes for the labor market data. How do we measure the effect of ppp on unemployment numbers for the next few months as Small Businesses bring their workers back off unemployment . The data is all in a thousand pieces right now, and it will take time to reassemble. Vonnie what will be the equilibrium price for a barrel of oil . Nick a wonderful question as well. We have in our mental model somewhere between 15 and 20 a barrel. That is when the longterm futures contracts seem to be settling out. On the plus side, at least some stability. On the downside, it is nowhere near the breakeven levels for producers of oil, and as a result, we also worry about structural unemployment in places like texas and other oilproducing regions as well that eventually do get shut in we do have some visibility on that. Nick, when you look at the amount of debt that the u. S. And just about every country around the world is likely to accumulate because of this, it is clear that sustainability at some point is going to become an issue. To what extent do you think we are likely going to see mitigating factors coming from the fed another central bankers around the world to make sure that the entitled you to curve is as flat as possible entire yield curve is as flat as possible . What impact on peoples portfolios do you think yield curve control will actually have . This is a riskfree rate we are talking about here. What does that mean for my portfolio . Nick a very important question, and i think a lot of eyebrows went up when the new york fed put out a reminder of how the fed controlled the yield curve during world war ii at the beginning of april. It was a very clear sign the Federal Reserve is considering yield curve control. Isterms of how a portfolio constructed, the issue is what happens to longterm treasury rates. It has been one of those basic counterweights against equity volatility. Right now with treasuries yielding well below 1 , it is hard to think the Federal Reserve wants to see them stay there forever, so if there is yield curve control put in place , what we are telling our clients is be very wary about longterm treasury yields because the Federal Reserve almost certainly wants a relatively steep yield curve with the short rates down at zero, but long rates perhaps higher than the 60 or 70 basis points we are seeing. To us, yield curve control is a warning sign that says dont be too reliant on longterm sovereign debt as the fundamental hedge in an equity portfolio. Look to shorter maturities and to lighten up on equity risk if the Federal Reserve and other Central Banks begin to think about yield curve control because that will certainly steepen the yield curve and remove that hedge that we historically have really relied on. Guy you talk about equity risk. We have seen quite a substantial bounce in u. S. Equities, being driven by health care and tech. As we come through into the earnings season and try and understand what in particular big texs trajectory big techs trajectory is, what do you see . Google and facebook rely on advertising. The Advertising Market is looking particularly difficult right now. Then youve got the issue of amazon having to pay its workers more. Obviously there is going to be pressure for that. Our repricing big are we pricing big tech correctly . Nick i think the fundament to answer is yes, but only because the market is seeing through the current dislocations and thinking about what the world looks like in six months, 12 months, two or three years down the road. We are seeing a lot of alternative, nononline advertising venues basically being destroyed. This is also an observation about why largecap stocks in the u. S. Are working so well. What markets are seeing as that, yes, in the near term, google and facebook will see tremendous downdrafts in advertising revenue because everyone is pulling back. However, as we come out the other side of this, theres going to be fewer places to advertise, and online will be an even more dominant place where companies advertise their goods and services. That is broadly speaking why the s p has held up better than the russell. The s p is a large cap, very tech heavy index, and health almost the balance, so you are looking at close to half the s p. Those are winning groups because they are so large and wellcapitalized. Unfortunately, it is also an implicit put on the Small Business economy and a lot of the businesses that have suffered over the last 10 years, but this event has pushed them off the cliff, and they may not come back. Vonnie a word on why you picked out this recent log that got noted on twitter more broadly. It is called a time to build. He talks about this being a critical mistake of western capitalism, that the thinking just doesnt scale. Nick yes, it was a very interesting note, and i would encourage everyone to read it because mark is a real thought leader in terms of Venture Capital and longerterm growth trends. His note is really a call to action to rethink the kinds of businesses that we build, mostly from the focus of how did they scale. He points out that a lot of the problems weve had in dealing with covid19 come down to scalability. We cant scale masks, respirators, a lot of solutions that we need quickly enough. To be honest, Venture Capitalists will always tell you scalability is important, but i thought the most interesting thing was that he calls on governments and Business Leaders in Venture Capital and investors , and basically all of society, to rethink how to allocate capital. From that perspective, i thought it was a useful way to thick about how the world might look Going Forward versus the world we built over the last 10 years. Vonnie everybody can catch that either via twitter or directly via his blog. Are thinks to you, nick colas, Datatrek Research cofounder. Increasinglyomes combative over trade, technology, talent, and now the Global Public of response to covid19. Lets take a listen to a Panel Discussion underway, moderated by bloomberg and featuring chinas a massacre to the United States. Featuring chinas ambassador to the United States. Balanced,ty evenly although it looks as though the u. S. And china are heading towards a more multilateral global order. China is stepping up its medical diplomacy towards europe, trying to position itself as the responsible power in contrast to an incompetent america turning away from its international obligations. How is this narrative playing out in germany and across the european zone . Overall, not very well, but it is important to look at the details. Is really an increase in distrust and question about , in what isability probably one of the most disastrous crisis the world has seen in past decades. The big debate about the lack of transparency and other measures. But theres a real problematic leadershipis the that has come out of this crisis has created exactly the opposite of what was intended to achieve. The need for beijing to claim space, to frame this authentically while also pushing ahead on their own issues, taiwan relations, what is happening in hong kong, all of this is creating more distrust. You see this in very Public Statement by major leaders in europe, officials for european policy and bureaucracy, france, germany all coming out with explicit statements about this being something that was not expected to some extent, but also, that doesnt create a better understanding and better relationships with china. Theres exceptions. Look at italy. Theres a very interesting case globaln understanding power, and you have a general rethinking of relationships there. We need to look at this very carefully Going Forward. I would like to bring an audience question that has just shenzhen, china, the ceo of , that uses ai to develop warehouse solutions. What would be the European Unions position towards u. S. China decoupling risk . How does the eu look at decoupling going on . Well, first of all, we have to say that for some of the u. S. Positions. A line that you hear very often is we share the assessment in washington, but we dont share the measures required to get to the goals. Many have alignment on ingredients of policymaking. The question is whether china should be recognized as a market economy. All of these issues need cooperation. But there is a clear recognition of the damage that all of this is doing to european interests, including multilateral institutions suffering from all of this, and being affected directly by measures on both tariffs and overall geopolitical uncertainty, business uncertainty, and the dramatic shifts that everyone who has to take positions in these times and needs to hedge their bets against this new future of potential decoupling, managing supply chain risk, etc. So it is a mixed picture. This line holds quite well, we share the assessment, we dont hold the measures. Me ask you about germany specifically. Europe do theyn feel more trapped between the u. S. And china than germany. On the one hand, the u. S. And germany have a close security relationship, share similar democrat values. And yet, in other areas, germany may have more in common with china. For instance, on climate change. Which way, in the end, do you think germany guy that was chinas abbasid are, among others chinas ambassador, among others, speaking in. An eu Economy Forum this is bloomberg. In an eu Economy Forum. This is bloomberg. Vonnie this is bloomberg markets. Powerup on balance of today, we will hear from Senate Chairman chuck grassley. This is bloomberg. London, from im guy johnson, was vonnie from new york. This is bloomberg markets. Its time for our stock of the hour. Heres dave wilson. Dave here to talk about ibm. They were out late yesterday with First Quarter results. Ibm is going for transition at this point, focusing on cloud computing, more specifically what is called the hybrid cloud, where companies store data on their own servers, outside on other companys servers. Not just ibm, but also amazon, microsoft. To buildent last year up this business. Not just that, artificial intelligence. Using about watson, which they have been advertising for Services Related to that product. They have a real challenge in terms of revenue as this transition has been going on. You look at the First Quarter sales, down 3. 4 . That was after a relatively stable fourthquarter and five quarters of declines in revenue before that. The issues they have faced in the past are right back front and center. It is really a revenue story. Beyond that, ibm following the example of a whole lot of other companies in withdrawing their fullyear forecast as response to the coronavirus. Isnt just the business in transition. The top management is, too. The First Quarter was the final quarter for the ceo. She stepped down. Ibm, and he dave, we are losing you there, but we got the gist of what you were saying. Thank you for that. If you want to catch up with him and his charts, dont forget he has his own code on the bloomberg. Lets get the latest headlines surrounding the coronavirus pandemic. Heres viviana hurtado. Viviana on capitol hill, a tentative deal was reached between democrats and the white house, according to Chuck Schumer. Rescuehe new economic package aimed at Small Business and provides money as well for coronavirus testing and hospitals. President trump tweeted he would sign an executive order to temporarily stop immigration, he says to protect american jobs, and also stop the spread of the virus. Between border closings and dwindling demand, the virus is wiping out or than 90 of international flights. Lets go to europe and spain. That nation has one of the strictest lockdowns. It is also reporting some of the fewest cases in three days. That is also that is not the case in other countries, where covid19 cases are rising this includes singapore, indonesia andre the ramadan holiday, cases increasing in russia, now topping 50,000. The u. K. Reporting the highest weekly death count since 2010. Parliament returning from easter break, and Prime MinisterBoris Johnson government facing scrutiny over how it is counting virus deaths. Multiple efforts are trying to advance therapy to administer to patients, and testing is key. Labcorp receiving emergency authorization for at home testing. You are watching bloomberg markets. We will be right back. This is bloomberg. Vonnie futures in focus time now. Joining me over the phone is joe cusick, Vice President of calamos investments. Quite a ride over the may contract for oil. What are you noticing at the cma for next months at the cme for next months contract and after . Really is unprecedented. We werent surprised to see crude challenge that 15 level, but to see it get negative, that is truly a case of storage. Looking out, we are pricing in a 10 range. That june contract come under pressure contract could come under pressure. Aat basically is looking at 14 on the crude markets, and you could see anywhere from right now, 24, to as low as 4. We are real concerned about whether or not we can see this Storage Capacity issue get relieved quickly. Vonnie briefly, there is one Silver Lining here, and that is that the vix is higher. At least for traders, that is a Silver Lining. Joe it is and it isnt. It is if you are an equity strategist like myself, with the funds that we run. The volatility works in our favor. It allows us to mute these downside moves, both downside and upside. That is beneficial for us. For those that arent using overlay strategies right now by selling calls, buying puts, and doing put spreads in the Commodity Markets or equity markets, it is a bit more of a challenge. It is going to be harder for them to weather this type of volatility, but Going Forward, it looks like we are going to see mid40s to high 30s going out as far as through november for sure of this year. Vonnie joe, thank you for that. Right now, the vix at 47. Joe cusick, thank you. Guy what have we got coming up in the next hour . We are speaking to john murphy, cocacolas cfo. Numbers out today. A lot of headwinds, not a lot of tailwinds. We will find out details on with the Restaurant Business can do next. This is bloomberg. Guy from london, im guy johnson, with vonnie quinn in new york. We are counting you down to the european close this tuesday on bloomberg markets. In europe, equities being affected by what is happening with the commodities story. Weve got brent down by 20 today. We are still in positive territory, which is something we havent seen in the u. S. Over the last 24 hours. The brent Contract Trading at 20. 27. Copper coming under pressure as well. European stocks down by 2. 88 . Oil and gas and the mining sectors both under pressure. Just about every sector in negative territory. Earlier on, we saw some movement in the btp yields as a result of the italian Prime Minister suggesting he could be open to using an esm line. Vonnie tg