Tells bloomberg theres no risk in using e. S. M. Funds to weather the pandemic. This as multiple policymakers warn of the rising risk of deflation. Manus its just gone 9 00 a. M. In dubai. 6 00 a. M. In london. Were digesting really one of these moments from the fed, nejra, whether it was truly a dovish message. Were not even thinking about thinking about the possibility of raising rates. So we got this jucks pox, q. E. Forever juxtaposition, q. E. Forever, versus the reality of risk for the world. As the number of cases rises, it is unsettling the markets. In excess of 2 million in the United States of america. So the message from the fed, battling against the uncertainty of covid19. Good morning, nejra. Nerja good morning, manus. The debate about yield curve control continues. We understood that the fed and officials were certainly looking at it. In terms of the reaction in the treasury market, i mean, the bulls certainly came back. We saw that 10year yield drop to a 72 handle. The fiveyear part of the curve, the belly, is whats really been outperforming. And certainly outperformed yesterday as well. Taking a look at the broader markets, youre seeing really a little bit of risk off coming through in todays session. So we did see a bump up in u. S. Equities yesterday. But then they gave up the gains. Were seeing futures firmly lower in the u. S. And europe. The fed is the parent and the market is a child that just kind of woke up after a nightmare. The child eventually calms itself down. But the parent is there to help calm them down. That was one of the takeaways in terms of the comment post the fed. The 10year yield is steady today after the moves that we saw yesterday. Dollar strength thats a sign of risk off. And you got those Commodity Currencies underperforming with the guidance the fed gave on the economy. Oil weaker after u. S. Inventories rose to a record. Now, bond buying and zero rates arent going anywhere for a long time. Thats the message from fed chairman jerome powell. Its a sign to central bank will keep pumping stimulus into the economy until the labor market has healed. Were not thinking about raising rates. Were not even thinking about thinking about raising rates. So what were thinking about is providing support for this economy. We do think this is going to take some time. I think most forecasters believe that. Manus asian stocks and u. S. And European Equity futures are slipping this morning. We digest the comments. Heres some of our top guests reacting. They are prepared to do what it takes and to stay the course with a very, very expansionry accommodative policy stance. If miraculously theres a much better outcome in the economy, they will reconsider. So theres no guarantee that the policy rate will be at zero for 2 1 2 years. Pretty clear they dont see any need to pull back for any of those Financial Stability concerns. And so thats just reinforcing the zero rate policy. Basically were not going to let Companies Fail. So you may as well jump in and get involved. Even though he cant directly he doesnt want to undermine the economy to deal with what might be a bubbling equity market. There is at some point in time he has to think about what does that mean for broader Financial Stability . Theyre not there yet. But i wouldnt be surprised to see them get there later this year. The fed shouldnt stop pulling punches just because a lot of benefits are going to shareholders. Because what it really cares about is maximum employment. The fed will play its part. But certainly not the only game in town. And im not sure its the premier game in town at this point. Nerja joining us now is steven major, global head of fixed Income Research at hsbc. Steven, great to have you on the show with us. Good morning. The fiveyear part of the treasury steven good morning. Nerja Treasury Curve seems to be outperforming. We saw consensus sort of coalescing in terms of yield curve control around the fed perhaps targeting the twoyear or fiveyear part of the curve. But we did hear from Jeff Gundlach this week who said the 30year becomes unhinged, gets to 2 , the fed would step in to control that. You said back in march that the yield curve control is next. How do you see it playing out if the fed implements it this year . Steven yes. I think its linked to the Forward Guidance. In a way it bolsters the Forward Guidance that they have underlined in this meeting. So the reference to keeping rates where they are through 2022, what that means is it sort of date dependent Forward Guidance. So theyve underwritten that here. That means that fiveyear bonds, fives, fives become the new twos. Because theyve just locked down the twoyear. The twoyear is going nowhere. The twoyear is linked to money and they just confirmed that. So you might as well buy the fiveyear. Because in two years time its a threeyear piece of paper. And this is how it works. This is how it worked in japan. This is how it worked in the euro zone with the low for longer policies that played out there. So i think the Forward Guidance is the main toll on top of the zero rates and the q. E. And the other programs at the moment. But the yield curve control might come in later. I dont think the fed really wants to be targeting the 10year or 30year just yet. Because it may be difficult to sustain a cap, especially on the 30year, for a long period of time. Theyve got the experience of the 40s and the 50s and they kind of unceremoniously came off of that cap. And theyll look around the world and see whats happening. In australia, they chose the threeyear point. In japan, they managed the 10year very well. But the difference is the b. O. J. Owns most of the 10year stock. With the u. S. Fed, they dont own the belly of the curve. Theyre more spread across the curve. And the recent concentrations of the front end. So the tactics and strategy playing out here, its a bit he will for the yield curve control. We wrote about it in march as being yield curve control next, and what we really meant was when the other have played out. So at the moment theyre focused on Forward Guidance and a lot more they can do on that. I was surprised, for example, that the committee, the collective view of the committee, left the long dot high and to me that looks borderline ridiculous. The idea that were going to get anywhere near where they thought last december in the next few years, that doesnt seem possible. So they got more things they can do. Nerja yep. Steven and over time, that twoyear point will become the three and the four and the fiveyear. Because if in a years time theyre still saying in two years time its like three years today. Manus so steven, good morning to you. So that is captain america. Thats your view in terms of where they go on this curve control. One of the big plays in the market has been the steepness and nejra you look at 1030s and any of the curves, we have this steepness. I want to get a sense from you whats driving the steepness . One side i want to put this question to a number of people. Either the treasury, issuance and the duration. The supply side. Or is it the demand side, steven, which is a concern about stagflation which tilts that the r it is just risk and its a small one after this, this fomc, is that the fed would step back in any way . Your view on the steepener and whether weve run out of steam, sir. Steven ok. I think we have run out of steam. And im not in favor of steepness here. And the way the yield curve is behaving, as i said before, its similar to japan. And the euro zone. The flattening happens from the front first. So its correct that the fiveyear is the lead point. Because money is flying up the curve from twos into fives. Its still going into 30s but theres more going into the fives. And a move from cash, if either a deposit account or money market fund, easy to get to twos or to fives. So thats logical. On the you mentioned captain america, that was the name of the paper about yield curve control we wrote three months ago. And the reason for the title captain america was that we were referring to the 1940s and 1950s. Thats when the fed and the treasury worked very closely together to sell bonds. Now, captain america, a marvel comic character, and they used him and bugs bunny and other characters to sell bonds. The hero in the film was a bond salesperson, can you believe it . So the point is it was a patriotic duty to buy bonds. And yield and supply question, i think that people are having no problem buying bonds. All across the curve. Precautionary savings has surged. And this is an interesting point about demand and supply, manus, because people get the causalities wrong. They look at the feds Balance Sheet and they think theres a lot of money floating around. Actually, the feds Balance Sheet expansion by 2 trillion, over 2 trillion to just above 7 trillion, thats been quite easily financed by the surge in Bank Deposits and money market funds. People are willing buyers. So not to answer your question, theres no lack of demand. And if theres one thing that frustrates me in all my meetings with clients is this constant focus on supply. Because you can see the supply in the auctions. Everyone thinks theres awesome paper coming so the yield must come up. Well, that misses the demand. And the demand is there first. Because people are saving because theyre worried about the future. Those are people who are in jobs. How about the people that are not in a job . And he spoke about jobs. Anus and that number indeed. And well come back to this, steven. Because of course they still say theyre going to be at 10 unemployment by the end of the year and as you and i and nejra know thats nearly 2 1 2 times what it was before this all hit. Steven, hold those thoughts and hold on to captain america. I wonder what a role in the new gig if it comes again . Steven major, the bond king, stay there. Do not hang up the phone. Im going to get our viewers up to speed with the first word news this morning. Because it is about this second wave of coronavirus cases in the u. S. That may be emerging. A report of the highest number of daily cases since the pandemic started. Californias hospitalizations are the highest in nearly a month. According to Johns Hopkins university and the number of confirmed coronavirus cases of the nation topped two million. The u. K. s top Scientists Say the government made a string of failures in handling the coronavirus crisis. The chief medical officer spoke of a long list of potentially flawed decisions at the daily virus briefing. It put Prime Minister johnson standing next to him on the defensive. Johnson says its still too early to judge the nations response. And agreed to buy grubhub for 7. 3 billion. The deal will create one of the Worlds LargestMeal Delivery companies. And it gives the European Company an entry into the u. S. Market. The purchase also sidelines uber which had been in takeover talks with grub hub for months. Global news 24 hours a day on air and quick take by bloomberg. Journalists and analysts around the country. Nejra, good morning. Nerja manus, coming up, the majority of the credit for the rally in stocks should go to the chairman of the Federal Reserve. Dont miss our interview with the Guggenheim Partners cofounder and c. I. O. Thats next. This is bloomberg. Manus daybreak europe. Im manus cranny in dubai. Nejra cehic alongside me in london. We did a pretty big view interview, scott major says most of the credit in the stock market rally should go to the chairman of the Federal Reserve. And the cofounder of Guggenheim Partners says theres a great deal of uncertainty in the economy. Lets take a listen. A matter of which piece of data you look at, theres a very high level of uncertainty, especially as we reopen the economy. Some 19 states now are experiencing spikes in covid incidents. And those are mostly the states which opened first. I think they are right that powell subject to a lot of uncertainty at this point. And theres only so much the fed can do through the operation of Monetary Policy to really address the issues other than to make sure that the markets are liquid and that they basically maintain a term structure of Interest Rates low enough so that it doesnt interfere with Something Like in the rates which market. Scott minerd, you got great reviews when global wall street was transfixed how dead on you were in february on the decline. You called it the ludicrous season. Its now become a ludicrous 2020 with this huge and abrupt recovery weve seen. Can you give chairman powell all the credit for this 44 move up in equities . Or is there Something Else going on . Scott you know, tom, i think that chairman powell probably deserves the majority of the credit. I think that you know, we were we were in the midst of a rally from the march 23 lows that looked like a correction in a bear market until april 9 when the Federal Reserve announced aggressive policies in relationship to dealing with corporate credit. And the e. T. F. Purchase program. So that actually has supported the rally. When you look at the correlation between credit spreads relative to u. S. Treasuries and equity prices, that correlation is pretty robust and very tight. So i think the fact that the fed has managed to drive credit spreads tighter has basically given the support to the equity market that, you know, basically the signal was we wont let Companies Fail and you may as well jump in and get involved. Mike scott, its mike. When you look at where the level of stocks are right now and you look at the level of spreads and how the feds brought everything in, and theyre going to continue buying at the same rate, is this a little bit like shane, jay powells work here is done, they can just be on hold at this point . Because they dont need to really do a whole lot more . Scott well, i think, mike, there are two issues. The first issue is the fed is stuck being interventionist now. Simply for no other reason because they have to provide enough credit to finance the u. S. Treasury. So, you know, u. S. You asked an interesting question earlier is there anything the fed can do to address the problems . And i think really the fed is stuck financing the u. S. Government because of the size of the deficits. When you look at credit, however, you know, credit spreads now have been wider 40 of the time relative to u. S. Treasuries and tighter or 60 of the time however you want to think about it. And thats a pretty normal spread for credit. Im not sure that the fed is really finished in terms of what it wants to achieve in terms of tightening credit spreads. I think the jury is out there. And one of the big reasons for that is we have yet to buy any Corporate Bonds under the Corporate Bond purchase program. And in time, i think theres so much demand for credit at this point from the investment standpoint that we probably will end up driving credit spreads in and it will be upported by the fed. Manus scott minerd, cofounder of guggenheim. Scott scott with hsbc, steven, scott minerd said the fed is not done in terms of credit and yet to buy any Investment Grade credit. You say the fed is reducing the risks but you already shifted and turned neutral on Investment Grade from mildly bearish and you turn mildly bayish on high yield bayish on high yield from bayish. So you are shifting your consideration here. How much more do you want to be in i. G. Versus high yield and how much more compression on those spreads can come . Steven yeah. We have been creeping up the weighting toward credit. Inside the credit call, about how we take duration. And we want to take high quality duration. I think one of the problems with credit is that you cant just go all in and buy anything. And in fact those that have just gone and chased the high yield would have suffered quite a bit recently. Its important to be very selective. I get the idea that low for longer and low volatility is good for credit. But its not a simple case of just buying everything just think about how the economy is going to be reorganized and restructured post covid19. Think about how its happening already. The things that we value, our choices, our preferences, everything will change. And so if you had an idea about whats a basic industry or a stable industry, if you like, utilities and what have you, which were relatively safe sectors to go to, maybe we need to think about exactly about what risky and what safe is in the recovery period. Nerja yeah. Steven most people that follow the stock market for example, will know that its tech and health care thats been dominating the recent moves. So what thats the call to make. Its the rotation in the coming months. So were were upgrading our credit view. But were not going all in. Nerja makes sense. Steven steven from hsbc staying with us steven major from hsbc staying with us. China, Government Works to help the economy recover from the shock of coronavirus. Will the policy work . Well look at the numbers next. This is bloomberg. Nerja this is bloomberg daybreak europe. Im nejra cehic in london with manus cranny in dubai. Lets take a look at what were watching today. Germanys Angela Merkel speaks with the chinese premier at 9 00 a. M. London time. Strengthening relation ss the key topic. Italian Industrial Production at 10 00 a. M. And april is expected to be even tougher for the sector due to strict lockdowns, manus. Manus well, nejra, it is about the jobless numbers, the reality of covid19. And the impact on real lives. 1 30 the jobless claims come in. The figures have been coming down. But extraordinary levels. Euro area finance ministers, they meet at 2 30 today. To discuss the e. U. s recovery package as well as who will be the next president of the euro group. And to our guest most favorite topic, the soccer fans they will be pleased to learn that the beautiful game is back. But is it back at arsenal . Germanyaries bundesliga paved the way. But today, spane spain spains la liga kicks off. Who do you support . Nerja something to look forward to. Ill tell you after the show, manus. Lets turn to chinas credit expansion. It picked up in may signaling tipped policy support pour for the economy. Financial institutions offered 1. 48 trillion new yuan and aggregate finance was 3. 2 trillion to 0. 9 trillion in april and 1. 7 trillion in the same month last year. Steven steven from hsbc is steven major from hsbc is still with us. Under in china, is your bullishness on china concentrated at the front end theretherefore . Steven we focused on the upper part of the curve. China they have Balance Sheet as a country. And a, you can get the government and the central bank working together. And thats been the success of the u. S. In recent years. So theres plenty of space to ease Monetary Policy. Not just the Interest Rate but also policies to expand credit. So i think that this is a very positive sign. Our call on china is consistent with the call we have in the u. S. , australia and other markets. We think yields should be a lot lower. And over the years, ive always mapped the evolution of chinese yields against the u. S. Yields. And you can see from the charts they moved together quite a lot and the causality cant often come from china. So its important that theyre easing. Its important that theyre signaling looser credit as well. Manus steven, thank you very much. 2. 775 on 10year paper in china. Steven major hsbc do not hang up the phone. The policymakers, we will discuss the debate we hear from the bank of italy governor, this is bloomberg. Manus good morning from dubai. Your first top stories. Not even thinking about raising rates. Jay powell says stocks and treasury yields lower. Fomc members see rates lower through 2022. The trend above 10,000 for the first time. The yen advances on haven demand. The bank of italys governor tells bloomberg there is no risk in using efm funds to whether the pandemic. Warn ofkers born rising risk of deflation. Nejra on a dovish fed you might have expected equities to rally. I saw somebody saying the market is like a child waking up from a nightmare and the fed is there to sooth it. It. Oothe markets focus on the gloomy outlook. When it comes to fixed income, it makes sense to buy the fiveyear because the front end. Forward guidance element could have been a little bit more expressed. Stoxx, the oil, the 10 year paper, which saw quite a reversal. You are just seeing stocks get back this morning. For me it is about whether jay powell managed to put a floor under the dollar, or did he wound it in terms of what we are seeing in terms of rhetoric . Sobriety about the state of play of the american economy. We are going to need captain america to come to the reward of the bond traders out there. The fx regime this morning, the aussie and the rand giving back value. The dollars bid but there seems to be concerned about the possibility of covid19 reemerging. That is weighing on risk sentiment this morning. We need a more sobering judgment of what jay powell has to say. Good morning. Nejra to get back to the fed, bond buying and zero rates are not going anywhere for a long time. That is the message from jerome powell, a sign the central bank will keep pumping stimulus into the economy until the labor market is healed. We are not thinking about raising rates. We are not thinking about raising rates. What we are thinking about is providing support for this economy. This is going to take some time. Most forecasters believe that. Manus in europe ecb policy makers tiptoed into the debate just days after the ecb doubled the bond buying program. Member bothe board the inflation outlook deteriorates. The bank of italy governor echoed by saying the central bank is so active because Inflation Expectations have declined. Speaking with francine lacqua, he started by commenting on the outlook of the italian economy. Take a listen. Clear there have been a number of statements. And it is right, it is a long time. Firms arenot because lagging behind. Certain Monetary Policy cannot increase. Level reasons to increase the level of demand, there is the possibility of the employmentng back to sufficiently. It is not a substitute for measures that increase the rate innovation, and all the improvements the economy needs now. What is your opinion on italy using efm funds . A number of people have been asking that question. Testimony in parliament two months ago, before the covid. Comenk these funds now without strings attached. Have ear that they the only requirement. This asd not consider manna. This is. A loan. The market a loan in is with respect to europe. Im also getting questions on the unwinding of the special measures. When will this happen . Sheetu see an ecb balance increasing the next five or 10 years . How do you see the timeline of this progressing . We still have projections this could take years before we go through stability. We have been able to advance the deflation. Regardless of what some others say. Able consistently also through a few weeks. Secondtier banks can they survive the second round of new nonperforming loans . Say, the first round of nonperforming loans has been very difficult. The globaltion of financial crisis and the sovereign debt crisis. The real economy has suffered a lot. By the way, what we are foreseeing post covid, it is correct. Been a substantial fall in the quality. I used to say the italian system within its entirety. There are number of pieces and some of them did not managed to resist less than 2 . 90 of the system has gone through this very difficult thing sufficiently well. Now, clearly we start from a much better position than 10 years ago. The capital ratios of banks have doubled. Backonperforming loans are to where they were. Manus that was the bank of aaly governor speaking to guest host. He said Monetary Policy, fiscal policy in europe is a game changer and it may well be that europe is ahead of the u. S. If that is the case, do you agree . A game changer it is. It became a game changer quite some time ago when germany went in with france. Over as well,d you had enough of a strong consensus supporting the European Commission proposals. That is the game changer. There is a prospect of joint issuance, which has a number of different impacts. , and that is why it has done so well versus swaps. Then there is the convergence from above. Italy, portugal, whether yields crash down to the lower level, because they have some they have. Issued much less. The big winners are italy and spain in terms of the funds they will get. To me, the big question is whether we can take those yield spreads below previous lows. Or tightening can continue to where we were precovid19. That i wonder how much of impetus will come from the side of bund yields. There are those who suffer started to say you started to say before the end of the year it would be positive territory and now is the time to short bunds. How much more can we see that yield rise . Here. Ould not short bunds the German Government has been able to issue 30 year just above zero. That was a steal for some investors, believe it or not, to get close. The interesting thing with bunds is they have been cheapening versus swaps for one year. Ratess a function of being in, the idea rates cant go any lower. The proximity of the traversal rate that said if the ecb would go even lower, they might actually start tightening Financial Decisions positions , then there is this new factor from above, the eu recovery fund. There is a convergence factor. Bundhat an investor hold a that yields rest less than swaps, for example, when the quality of the new bond is actually better . That is a slow process. It is not going to happen overnight. I do not think you are going to see bund yields go up that much. I do not think you will see 10 years in positive territory for a long time. But the trend is in place. Us,a thank you for joining steven major, global head of fixed Income Research at hsbc. Coming up, food fight. For the u. S. Mail Delivery Market heats up. Rket heats up. Manus this is bloomberg daybreak europe. Investing 2. 7 billion euros to gain an edge in opposed pandemic world. These are owner aims to boost its commerce operation. Growth hader online a 44 growth drop in the first quarter. Grubhub. Com is buying thehe deal to create one of worlds Biggest Delivery Companies at a time when the coronavirus pandemic is driving a surge in orders. Our next guest sees consumers shifting more shopping online as a result of the pandemic. Joining us now is a consumer analyst. Thank you for your debut on daybreak. Your worldnline in as you look across consumer goods, who is best positioned at the moment . Who has the most work to do to make it online . Good morning. Good morning. Trends one of the developing out of this crisis in the consumer sector, experiencing a very swift acceleration online, an area the sector has lagged other categories. I think we are going to see a permanent step up in digital penetration rates going forward. This is going to be a permanent feature. Companies that are well positioned in that area historically have been names like unilever, loreal, companies that really invested some years back in accessing that channel. Going forward, i think it is interesting we are seeing Companies LikeBeer Companies talking about online being part of the business. Beer historically was not such a big item online. In fact we are hearing throughout the recent reporting that actually beer is doing really well online. Theink it is expanding reach into new consumer areas that were not accessing online as well. Nejra that is interesting what you say on beer. In the u. K. There is a lot in the media about the fact people have been drinking more during lockdown. You are not that positive on the outlook for spirit companies. What is the distinction within beverages in terms of the outlook . Clearly there are areas of consumer goods that are more under pressure from the out of channel being shot out of home channel being shot. Shut. Beverage companies are seeing declines 40 yearoveryear. The channel has been shot. Our issue the channel has been shut. Our issue has been we think the stocks are overvalued. Despite these pressures the companies are facing, that geo inferno are trading at highs despite facing the most uncertain outlook they have ever seen. 2020 etfear calendar estimates have been cut 20 since the crisis began, certainly worse than the average for the sector, but there could be further significant downside if the entree takes longer to recover, which we think is highly likely. This last week, another spirits it was which forecasting organic sales in the june quarter to be down 45 after including a betterthanexpected trend in the u. S. And china. These spirits companies are facing unprecedented headwinds. Beyond trade opens up again, the things that will replenish the fastest are things that go quickly like soft drinks and beer where the shelf life is shorter. Spirits have a long shelf life. Matt manus we debate dividends. Been tolds that have by their regulators to conserve capital. You talk about the Tobacco Industry and you talk about limited dividend cuts across consumer goods. Will this be something that puts a floor under part of the sector here . It is certainly one of the reasons the sector has held up so well during the crisis. Balance sheets are pretty strong across. These companies were very click very quick to access reso revolving credit facilities. The firm i work for has raised over one billion pounds of equity for corporate clients in the u. K. We have yet to see any equity raises along the consumer goods category. It is not necessary. A small handful of them have had to cut their dividends. The companies and sector are relatively sound. There is ongoing m a, even just this morning. Understandes dividends are a key attraction of the consumer sector. This is especially important when Interest Rates fall. They are going to do all they can to protect those dividends. Nejra thank you so much for joining us. Lets get a quick look at the markets. What happened to the powell put in equities . We saw equities decline in the u. S. Yesterday. European futures in the red with asian equities as well. The 10 year yield hit a low yesterday, but it was part of the curve that outperformed. Dollar strength talks about risk off, though the yen is strengthening as well. This is bloomberg. Nejra this is bloomberg daybreak europe. Along with yesterdays rate decision, jay powell addressed concern about the disproportionate loss of jobs among minorities. Joining us to discuss is annmarie hordern. It is not the first time jay powell has addressed this in news conferences. Whatever he said had far more weight because of the protests we have had in the u. S. Of late following the death of george floyd. What exactly did powell say . It comes at a time we still see protests in america. America really is confronting racial inequality and injustice. Jay powell talked about what this means in terms of unemployment. Unemployment has gone up more for africanamericans and women have borne a share of the burden that is really unfortunate. We know the pandemic has already hurt the black community in terms of disproportionate healthwise and financially. Check out this chart. Before the u. S. Economy lockdown , africanamericans on of limit rate was close to a record low relative to white unemployment. Nearly 50 years of data. Now we see black unemployment rising faster than for black for white americans. The other thing to quickly think about i want to mention is who is reaping the benefits from the Financial Markets . This has been the main talk about the diversions between Financial Markets and the real economy. Brianomberg opinion, outlined this yesterday in the feds own words. He talked about the fact that is disproportionate in terms of who owns these assets and how they accumulate wealth in terms of white americans, hispanics, and of course, black americans. Something they are going to have to address. Annmarie hordern tracking the very latest stories. You know what . Just before you go, we have a major piece to note. It is really about this top line. Well done, you are way ahead of me. My apologies. My apologies. This is a story that is obviously gaining a lot of traction because everyone was questioning whether we were going to see a second wave. Now the cases have topped 2 million. What we are seeing is pockets in america. These pockets we are starting to see cases tick higher. Florida reported more than a thousand new cases. This is what we 8000 new cases. This is what we need to watch. Manus thank you very much. The European Market open his next. Next. Anna welcome to Bloomberg Markets the european open. Matt good morning. Today, the markets say the taps are staying open. Stocks slide despite a clear message from the Federal Reserve with europe pointing deep to the downside. The cash trade is an hour away. The second wave hits america