Of europe. Early on, we saw the autos up more. 1. 36 ,os are only up 1. 42 . The german tenyear now catching a bit as well, negative 0. 44. David from Credit Suisse is going to be joining us to give us his technical picture about what is happening here. He is certainly very interested in how the markets close at the end of the week. David is coming up from Credit Suisse, the head of ta at Credit Suisse. That will come up at roughly half past the hour. ÷bthe u. K. Story today, very g. We are watching very carefully as the data comes in. Is it worse than anticipated . Today, a little bit. That was certainly the gdp weed. Basically, we wiped out 18 years of growth in the month of april. The new of england, governor of the bank of england andrew bailey, has just done a poll interview. What play a clip of that, the governor has to say. There is question about how much longterm damage that will be and that is what we have to be focused on because that is where jobs get lost and where damage is done to peoples livelihoods. We hope that will be as small as possible, but we have to be ready and ready to take action. Not just the bank of england but more broadly on what we can do to offset the longterm damaging effects. The governor of the bank of england speaking moments ago. 20. 4 gdp drop in april, 18 years of Economic Growth that has been destroyed. Our guest from Morgan Stanley is joining us now. Andrew, a lot of focus now on what the governor is going to do next month. Sorry, next week. And ultimately where the bank goes with policy. I guess the question that feeds off of this from a market perspective is, do you buy at this point . Are rates going to go lower . Do you buy on that expectation . We would not at the moment, but i think there is a good reason to believe that gilts are going to lag any broader move of yield higher as global data does improve. I think as you just highlighted, the u. K. Economy is really lagging other developed markets. It is clearly weaker than the eurozone at large. It is weaker than the economies in the u. S. And asia. 9ii think that weakness is a reason that we are seeing the price action we have seen in gilt so far and a reason why the bank of england is going to need to stay dovish. We dont think the bank of england takes its front and right negative end rate negative. We think that would be technically difficult but the bank of england could introduce some negative rates further out its lending programs to try to help the economy. Guy ok. Kind of floating with this idea as to whether or not we are going to see the bank going negative, but as you say, from a technical point of view it poses a significant number of problems and is hard to get out of. But it looks like we will get some extra qe coming through. That will have an impact on the market. There is talk of an extra 100 billion. There is a credit effect here as well. How do i position for that . I think with negative rates, again, what i think is important or something we think at Morgan Stanley is very important is, yes, there is a lot to focus on this, yes, the market has been position for negative rates, but if you take a step back, it is hard to say this is a particularly effective policy where it has been implement it. I think implemented implement ed. I think banks are aware of that. There is a reason why you can see the pound, like other currencies, expecting broader dollar weakness from our Morgan Stanley research view. I think the pound can be a laggard there. It goes to both the much weaker growth you are talking about, the underperformance of the u. K. Economy, but also that you continue to see a lot of uncertainty over what Brexit Strategy will be pursued and still no indication the government will look to extend that period, which also introduces some uncertainty. The pound lags is another way that we think fundamentals can work their way into market prices. Guy yes. In some ways, it is surprising the pound has been left relatively unscathed by all of this. You bring up brexit. Dnmonday, there will be a conversation about this. If it does not go well, how does the bank respond . What do you think the policy mix will look like for the bank of england . Andrew i think this is one of these dilemmas. I do nothing this is an issue that Central Bank Policy can really fix or address. I think the scenario where you have an exit without a deal is a very severe economic risk, one that cutting rates 25 basis point or what have you i think will not move the needle for. This is a challenge the bank of england has. It is not just trying to deal with this extreme economic fallout. It also has this other extra issue that it is attempting to deal with. I actually dont think there is a real clear path or a clear way the bank of england can address it. For some of those reasons, we do think the market can price in a higher risk premium to the pound than other currencies in the region. Does the boe and the markets have the same kind of relationship they do here in the u. S. . We talk a lot in the u. S. About the fed backstopping markets and the markets run the fed. Is it the same conversation over there or is that a little different . Andrew i do think at some level all Central Banks in the developed market have become more market sensitive. I think there has been a broad adoption of thinking about financial conditions as a key measure. Think that dynamic is also present here in the u. K. , but again, i think the bank of england is dealing with some particularly extra challenges. It has an economy that is underperforming significantly. And this overhang of brexit uncertainty is very serious because a lot of the centralbank policy is really geared at regaining confidence, getting investment going. Brexith the pandemic and are both events that discourage investment. You do not want to build a new factory or build out capacity if there is still uncertainty about when people will go back to work and still uncertainty about what sort of trade environment you will be in. Again, those are fundamentally very difficult problems for the central bank to address. Alix it feels like the u. K. Government itself has come under a lot of heat for their handling of the virus, particularly when it comes to reopening. Do you play the reopening trade in the u. K. . How do you think about that . Andrew i do think within the u. K. Something over equity in a lists have focused on is a lot more desk analysts analysts a lotocused on is more cyclical stocks. The market has priced in a lot of the uncertainty and concern around a slower reopening, but i think that is a reason why i come back to the currencies, we feel like a very ready instrument if markets wanted to express the idea that the u. K. Economy will lag, that it has struggled a lot more with combating the virus than its neighbors in europe. In a scenario where brexit was worse than the market expects or where Health Conditions are worse than expected, both of those could reduce the amount of investment into the u. K. , could we strain the recovery of the u. K. , and ultimately be currency weak. Alix e are familiar we are familiar with all of that. What do you do for feeding the earlier rally . This is bloomberg. It is a combination of just valuations made him vulnerable to bad news and bad news the market cares about has been hitting. It has been such a huge run that it has discounted risks to the reopened. We got really lulled into complacency on the buy risk. This is still a problem and is still going to be some thing we need to grapple with is coming back to the forefront. This is also about the value and momentum trade. And just how far and how he did that rotation has been. We have also seen an incredible rally from the bottom. The idea that investors may be looking to take some profits here is certainly part of what is driving this all. We should not be surprised by a reprieve after a parabolic rise. I do not think it is not surprising that we are taking a step back. And i would not necessarily think this is a sign of panic either. It could in fact be a healthy thing that the market either marks time sideways or drift lower. This is the reckoning that a lot of us are waiting for. We waited a long time. That was our guests weighing in on the forces that drove the selloff yesterday. Have we hit some kind of bottom . Can we bounce from here, or will we roll over . Joining us now is abigail doolittle. Abigail certainly a very volatile week to say the least for stocks right now. The s p 500 headed to its worst week since march 20, basically around the lows of the earlier bear market this year. Speaking of volatility, but it did not start with stocks. Is started with haven assets. Had japanese we yen futures also higher mysteriously midmorning. Fnsame thing with 10year nots moving to beasley higher monday morning. Simultaneous to another asset, oil falling on monday. That is risk off even though stocks were up on that day. That trajectory continued into tuesday and wednesday and really set the stage for the stock selling on thursday that we saw. Reasons,mber of those strategists talking about valuation, too far, too fast, parabolic moves. We take a look at a chart in the bloomberg terminal. This is the put to call ratio. When that goes down, that told nr g and calls buying. That speaks to the complicity and fragility of the state of the markets right now, quite frankly, and it really makes possible for the kind of selloff we have seen. Speaking of selloffs, it is the worst week going back to march 20. We take a look at the losses on the week, it is just ugly. The nasdaq 100 ironically earlier this week put in an alltime high, a record closing high, down 1. 8 . Outperforming even though it is down because the stay at home trade is working better this week as the cyclicals selloff. You can see that the s p 500 is down more, down 5 . Dow transports getting pummeled, down 9 . The Kbw Bank Index also getting hammered, down 12. 5 for the worst week for all these indexes in almost three months. Pretty ugly. As for whether or not it continues, indexes hitting their 200 and moving average. Will that hold . Mixed signals, perhaps a bit more bearish. Guy yes. Starting to turn a little more bearish now. Are down by 0. 2 , 10 on the week. Ofll with us, andrew sheets Morgan Stanley. What did you make of yesterdays price action . If we do not get a significant bounce today, what does that tell us . Andrew i honestly dont think i would read too much in any particular days price action. Obviously it would be technically better if we can hold gains today. That would be a better sign for markets, but over the course of june up until yesterday, we have gone up very far, very fast. Another way of thinking about what happened is we have effectively gone back to where we were at the end of may. We have taken out those gains very quickly. But big picture, i dont actually think much has changed. I do think we have turned a corner on global data. I think that is getting better. One thing i would note is that while a lot of investors rightfully were waiting for some sort of pullback after these very rapid gains, i dont think Investor Sentiment is close to euphoric or extremely happy. I think there is a lot of skepticism of the rally. In my conversation with investors, and of fear that farngs have moved too ahead of fundamentals. Fundamentals is a supportive thing for the market because i think there is a lot of doubt out there about the market that has reduced positioning, that has reduced how optimistic people would otherwise be, and limits the amount that we would selloff in this correction. Alix i just want to bring in, too, earlier we saw florida cases rose by 2. 8 yesterday. We are getting the fed semiannual testimony as well. I want to redo headlines. The data showed an alarming picture of Small Business health. Sector vulnerability will be significant. This echoes what we heard from jay powell on thursday. Basically saying he needs to be media trained some said so he does not sound so bummed. Having a substantial bid. Guy absolutely. When he talks about the fact that the bulk of the job losses and the pain coming into the lower economic strata of society, this is something that will become more and more important for the fed to think about. When the economy was roaring ahead and we had low employment, there was an argument that finally Monetary Policy was good for that portion of society. It is going to be interesting to see in a low inflation world whether the fed pumps up asset prices and we get the recovery people are talking about. But the fed continuing to pour cold water on this, and i wonder whether this is my what we are seeing in the market right now is starting to accelerate to the downside. Alix andrew, it is hard to answer that question daytoday. But overall, it does matter whether or not we are in able market or had a bull market with any bear market. That means whether you buying value encyclicals or stick with the growth oriented sectors in safeties, where are you in that spectrum . Andrew we think we are enabled market. A bull market. We think we started a new cycle. The fed identifying the weakness in the data is absolute the correct. The u. S. Economy and Global Economy is still in and in quickly week place. I do think it is very important to acknowledge that markets usually lead the economy. A lot of the markets better gains have come in periods where the economy is weak but stunning to get better and some of the markets worst performance have come when the performance is good but the data is getting worse. Trend matters a lot more than the level. Your point on a rise in case count is important. That is a real risk we need to watch over the summer because i think as you guys were mentioning before, you can debate whether or not it would be a second wave or just a continuation of a plateauing first wave in the u. S. Big picture, looking out, we do think we are in an early cycle environment and thus we do not think we are starting a new bear market. Guy does it feel logical to you that we are seeing the most beaten up stocks bouncing in the way that they are . I am not going to get you to comment on individual stocks, but hertz is able to raise money in the stock market despite the fact that it is technically bankrupt. Does that sound like a properly functioning market to you . Andrew obviously, i will not comment on any particular company, but i actually do think the pattern of performance that we saw over the last month where you had small caps outperforming, more cyclical stocks outperforming, that is very normal. Often when growth is very weak but not getting any weaker, which is where we are, that is often a time when those smaller and more Cyclical Companies start to do best. In many cases because they have just done their worst as data was very weak. I thinkm that sort of early cyce pattern i think is much more normal than abnormal. In some ways, the oddest part of this market was that some of the same stocks that had been 2019, athroughout 2018, lot of this largecap quality growth had worked in an environment where growth was sloping and yields were falling. Markets wereked as declining and markets started to rise again. I think some change in that leadership is healthy. I think that would suggest a more sustainable shift in Broader Market patterns. Guy yes. Andrew, thank you today. We greatly appreciate it. Andrew sheets of Morgan Stanley. This is bloomberg. 23 minutes past the hour, it is friday. Normally, a lot of people would be about two set up shop in london and get on trains and go home. Huge numbers of commuters pour out of london every day. Probably a little more relieved at the end of this week than they normally would be. What we are getting as a result is a huge number of them saying, you know what . Actually, we want to keep working from home or want to do it our time. 4 5 want to continue working from home when it comes to european banks. Even greater among stockmarket professionals. Part of the reason where we may be able to see a shift in the hours as well. People are actually ok with this working from home malarkey. Alix malarkey. On the flipside, you say, you want to go to the office and generate ideas likezi watercoor cocy; . J n were generated, but there was a great article on the uber got talks about banks in europe reopening. Italy, itare doing in does not feel like that is the open aired, good for chatting conversation world that will be there. In madrid, their cafeteria looks so sad. These tables with one chair. You are nowhere near anybody. You cannot talk at lunch, guy. Guy no. I think it will be interesting as well. Corporate culture is a really important factor. I think it will become increasingly important. How you instill Corporate Culture into people if they are not coming into the office i think will be one of the key challenges. I am not sure the permanent work from home will become a reality. I think people will have to go in. People have been surprised at a corporate level and a risk level that this has worked as well as it has. People would have normally said there is no way i will be working from home. Why do i want to be isolated . That can be bad for my career. They have actually found that it works. That is a real shift. I think that is something that will take a really long time for Corporate Culture to ultimately catch up with. I think getting the balance right will be really tricky. Alix yes. I totally agree. Especially if you work at home for four days, take a meeting, call it a day. Guy ok. Lets talk about where we are. We are four minutes away from the end of trading in europe this friday. Turning a little more negative out there. We will get technical with david from Credit Suisse. The dax is now down by 0. 6 . This is bloomberg. You say that customers make their own rules. Lets talk data. Only Xfinity Mobile lets you switch up your wireless data whenever. I accept 5g everybodys talking about it. How do i get it . Everyone gets 5g with our new data options at no extra cost. Thats good. Next item corner offices for everyone. Just have to make more corners in this building. Chad . Your wireless your rules. Only with Xfinity Mobile. Now thats simple easy awesome. Switch and save up to 400 a year on your wireless bill. Plus get 200 off a new Samsung Galaxy s20 ultra. Guy european stocks are closing. A huge moment after yesterdays price action. At the moment, it looks as if it will be a fairly mixed close in europe. We are getting into it now. [rwe will have the options and e the final numbers later on. There is the stoxx 600 back to the flatline. It is just in positive territory but certainly rolling over this afternoon. In terms of what it looks like as the week, the weekly closes are a factor. It has been a more negative story. A significantly more negative story. The stoxx 600 down 5. 82 . Some of the individual markets are still in positive territory. The ftse 100 is still up. The cac 40 is up as well. The dax is down. 3 . Dax is down over 7 on the week. Some of the more peripheral markets like the ibex down 7. 63 . A big reversal. In terms of the breakdown of the sectors, earlier on the cyclicals were back in charge. You did see some of the auto stocks coming back, but that bid has faded as the day has progressed. The mood completely changing. The auto parts are still up, but only up. 9 . The miners are still higher. Financial services, retail, all down on the day. Much more positive performance from some of the cyclicals early on in the day. ,n some of the individual names idiosyncratic stories are worth purchasing on. We have seen the pearson story coming to the fore, we have seen businesses and stocks up nicely. Easyjet, the airlines have come back. Easyjet up 6. 71 . For week or the week after easyjet, looking forward to what johann has to say. Astrazeneca down 1. 7 . We have seen a rolling over today and it is an important close. On theet that taste closes we will see around the world and get an idea of where we are going next. In order to do that, lets bring suissed snedden, credit head of global analysis. How important are these . I think these closes are hugely important. Clearly we had a very significant move down yesterday, especially clearly in the u. S. Key today is determining if that was a flash in the pan event or are we starting something more significant and finding the correction to what has been a super impressive rally from march. The interesting thing for me technically is if we look at the markets and indices like the nasdaq, this weakness we are seeing is emerging when the as bennetts classical stream on the upside. Typically for the nasdaq, you did not tend to move much more than 15 , which we have been well above over the last six to 10 days. Vyouve also seen the nasdaq moe exactly to the top of its trend for 2011. If you look at last week for nasdaq, it was interesting you had every single component stock and the nasdaq above their 90 ofterm average and stocks above their 200 day average. You clearly have this weakness coming through. The close today is going to be critical to determining what type of correction we see. We see a high level consolidation for markets, or do we see something more meaningful in terms of retracing this rally we have seen . To highlight the levels we are watching, and we are clearly pushing into them now as we anded to the european close it clearly sews the importance of the levels. 3013 on the s p, we are oscillating above now. 3032 is probably the other big level. 3032 youose below would take out the 200 day average and put in a classic bearish reversal for the s p 500 and that would late the path for the next two or three weeks and we would see support around 2950 at then around 2835. If you can close above 3013, you are looking at high level consolidation. Alix talk to me about the vics. Aithe story was we saw back were dated curves so investors expecting more shortterm and longerterm. What you see there . David what is interesting on back beforeoing the rally we had yesterday. X had beenin the vi contained at higher levels t ji we normally assumed. We have healthy 25 24 area. We had a load of other support levels in there as well. What the move is doing is reinforcing a much higher level range for volatility. I think the risk is clearly higher in the range, and just in terms of levels if the vics gets much above 48 we are going to see that rise continue up to 5455, and probably higher, more in line with the s p breaking down. Even if wes, stabilize at 50, we are now in a much higher level range then we have been for several years. Guy what about in europe . What is the euro stoxx 50 look like . David is interesting. The selloff we have seen, the reversal we have seen, europe has been showing signs of outperforming. I think that is been interesting. You see the euro strengthen. The dax had a great run. On a relative basis, i think that is the case. It would be interesting to see, if the s p does not close with these big levels and europe comes down, i think at the moment the likelihood is europe outperforms on the way down. It would not stop europe to retrace lower, but i think the weakness would be much more likely to be more restrained for the time being. 2955, see it down to which is where the first big retracement levels come in. We would look for europe to hold at the euro to establish a more higher level range. The interesting thing is we are seeing signs of action. European outperformance coming through. Alix that is interesting, particularly in the recovery phase. Taking a look at gold, i was covering gold in 2008 one 2000 was all the top. Weve had breakouts from the low in march but we cannot seem to break through 1750. We get that and we get an extended break out . David our view is we do. The break last year in june was hugely significant. That established a multiyear us was thee, and for initial catalyst for this huge move up we have seen. What is been the big driver behind the move has been the real yield move, and that very much remains the case. Gold and consolidation at the same time real yield pete in mid april real yield peaked in mid april. Our view is the yield we have seen is classic consolidation, and they are seeming to do that. That will be the catalyst that takes gold higher. Coreiew is if old is in a longterm uptrend it remains one of our outperformance. View is you will eventually move to a new record high on gold at about 1920. Alix i love some technicals on a friday. Great to chat. David sneddon, Credit Suisse level head of technical analysis. We want to give an update on what is making headlines outside the business world. Haska President Trump retweeted a call to ban microsoft from federal contracts. The tweet came from his former director of national intelligence. Besays microsoft should barred for its refusal to sell facial Recognition Software to Police Departments until there are laws governing its use. North korea accuses the u. S. Of breaking promises it made at that historic summit two years about two years ago. Kim jongun says the trump ministration has turned dreams for peace into a dark nice wear. Agreed. And north korea to work towards do nuclear is asian. President trump demanded denuclearization. There has never been a month is bed is april for the british economy. The u. K. s has gdp fell more than 20 as the coronavirus lockdown took hold on a threemonth basis. Economic output shrank more than 10 . Passed largern calls for the British Government to ease restrictions on industries trying to divide. Olympic organizers said they have lined up about 80 of the facilities needed for next years summer games in tokyo. The games were supposed to be held this summer but are delayed until 2021 because of the coronavirus pandemic. The cost of that delay is estimated to be between 2 billion and 6 billion. The International Olympic committee has said it will chip in it will chip in 650 million, but most of it will be paid by japanese taxpayers. Global news 24 hours a day, on air and on quicktake by bloomberg, powered by more than 2700 journalists and analysts in over 120 countries. Wi am ritika gupta this is bloomberg. Guy . Guy thank you very much. Europe through the auction. Lets take a look at the final numbers. U. S. Equity markets beginning to find a bounce. 3040 is where we are trading. These are the final numbers. The dax down. 2 . A bounce in the last few minutes through the auction process. 4839 for the cac 40. Do not forget to tune in with the top of the hour on bloomberg radio. Well be taking the Daily Briefing coming from 10 downing street, which seems to be critical viewing at the moment. We are all trying to understand what the governments policy or easing the lockdown. That at the top of the hour. This is bloomberg. Alix live from new york, i am with guy johnson in london. Ons is the european close bloomberg markets. The fed continues to sound dumb a spirit Kevin Hassett talks about the risks of reopening the fed continues to sound dovish. ,ome counties reopening allowing some brickandmortar stores to reopen. Next week therell be a lot of data. Into that with manager rico. Manny chirico. He joins us. He reported last night. Analysts are saying it was a mixed bag. Yes it is good your reopening, online sales are doing well, but it is a wholesale weakness that was troubling. What you think . Manny i think this is a hard environment to make investments for analysts to figure out what was going on. Our wholesaleder customers, the macys and kohls were closed from six to seven weeks in a 13 week quarter i do not think it is surprising their sales would be in the 40 to 50 range. That is what we expect on the corner. Strong andthe year all channels of distribution. Coming out of a strong fourth quarter. February was a clean month. Surprisingly strong for us. We just hit the wall in march as the pandemic started to impact traffic and closures that happened in midmarch. We will want to know if we hit the trough. Have we hit the bottom in terms of retail sales and as economies reopen, did things get better. Usthat is too simplistic. Can you give us more nuance of what happens of texas and certain regions shut down . Walk me through how you think about that as a ceo. Manny it is a challenge. S you are managing not only disruptions that could happen in a city. Something that causes a shut down of some of our stores, if one of our Associates Test positive and we have to shut the store down for the day and cleated up, those are all issues we are dealing h, managing our east coast managing our retail stores. We have been pleasantly surprised globally with how our stores are reopened. , about 70 of our stores have reopened, and what we have basically seen is sales are down about 25 compared to this time last year, which is better than we anticipated in the early open. It is improving week by week as we go forward, and there is a Comfort Level in certain areas which is the consumer coming back to shop. Anda, which is open first closed first and reopened first, we are seeing sales slightly up compared to last year. There is much as six to eight weeks ahead of the u. S. And three to four weeks ahead of europe. Europe we have seen a nice recovery as well with our sales and our stores reopening, now only 20 . What we are finding is in smaller cities and nonTourist Destinations, we are seeing strong results. We are seeing positive sales in those environments. Some of our biggest, most Profitable Stores are in Tourist Destination locations. Vegas,bout orlando, las outside of new york and in paris, milan, asia, hong kong markets, tokyo markets under pressure. There is no tourist trade going on. 60 is anywhere from 50 to of the transaction. It is a balancing of what we have seen, the locations based on consumer demand. How it work Going Forward from here . I want to buy something. What will happen to that item if i do not buy it . How does the Retail Experience change in store . How much extra cleaning you have to do . khow does it work in terms of Inventory Management with the online stuff when i send things back . How significantly changed is the process you have to go through . Manny depending on the regulations in each jurisdiction , some of our fitting rooms are open and allow people to try goods on, and we go through a cleaning process with those goods and what needs to be done. In a majority of locations, fitting rooms are closed. We have enhanced and extended our returns polic when goods come back into the store, we do two things. They go through a cleaning process and they go through a quarantine process. When the goods are returned, either to a warehouse if there is an ecommerce or digital sale, or return to a store, there is a cleaning process and their put in quarantine for 48 hours they are putting quarantine for 48 hours. It adds expense and manpower and supplies, but until we get through the process, that is the process you go through. The stores are constantly going through cleanings. All associates have to wear masks. Plexiglass is put up. We provide masks to the consumers coming in where it is required that the consumers wear masks, they must wear them, and where it is up to consumer discretion, we offer them masks. Think, and our surveys are showing we are getting a strong response to the Comfort Level the consumers are having coming into our store, not only in the u. S. But globally. Great, butall sounds it also sounds like that cost a lot of money. Also if you need to put more time into the ecommerce part of your business, what is your Liquidity Position like . What does it mean for Free Cash Flow . At what point do you say now i am getting nervous . Manny we are fortunate. We have a strong balance sheet. We ended the First Quarter april 30 with about 1. 8 billion of liquidity. We have the ability to make the determination to raise Additional Capital through the debt or equity markets and our position and size of the company. Financial flexibility has not been an issue for us. We are focused on it. We have raised additional , but we are in a good position from that perspective. I think looking at fiscal 2020 as a year of managing from a cash point of view, managing from a Financial Flexibility point of view, and in order to position ourselves as best as possible with the second half of 2020, and in particular 2021. With theybn disruptions, this wl not be a usual year. Year we haveo be a to focus on our expenses, focus on our cash flow, and position our inventory so we are clean as we go forward. Manny, thank you for your time. We appreciate the conversation and the insight into what is happening with the business and the wider retail said ace. The wider retail space. On whatirico joining us is happening in the retail space. This is bloomberg. Alix a quick update on the markets. We are off the lows of the session within the s p. Financials and material seeing the way higher . Will we see the by the dip scenario into the close or will be risk off into the weekend . What does that tell us. We do have a very busy week. A lot of speakers coming out that will potentially move markets. Im particularly looking at jay powell, the semiannual testimony to the senate and house. We got some of the remarks from preremarks,heir saying there is an alarming predictor of Business Health and the path ahead of its is extraordinarily uncertain. Guy a bunch of things next week. The fed, a massive story. European leaders coming up on friday. Talks withill get ursula von der leyen in brussels and the british prime minister, boris johnson. There is a piece worth reading on the terminal by tim ross. Team is brokens by the virus and losing faith. Boris johnson. The British Government had big dreams about what the postbrexit world would look like for britain and it has been completely undermined by the impact of covid and that is starting to have a meaningful impact in terms of the way the government is functioning. It will be fascinating to see what comes out of the tops. Is there going to be in extension. What kind of brexit relationship will be looking at . Is a hard brexit something we should be looking at . Monday night, maybe we will get details on exactly what is happening. The big round of talks coming up monday. Alix i am also interested in the end of the week. European leaders will meet to discuss a recovery fund. I wonder what that will be like behind the closed doors . Guy quite tense, i would have thought. How that money gets divided up is a subject for discussion right now, to put it politely. Then we have the bank of england thursday. That will be a fascinating meeting. Alix you know what they need . They need a trampoline. If european leaders had trampolines, dispersing the billion dollars of funds would be good. Guy i think Everybody Needs a trampoline, but you can just not buy one right now. Find one tricky. Alix it is. I used to have a portable one. That is for another day. That doesnt for guy and myself. With david power westin coming up on bloomberg tv and radio. This is bloomberg. David from new york to our tv and radio audiences9t worldwid, this is balance of power where the world of politics meets the world of business. We turned to abigail doolittle. It has been a wild ride yesterday into today. It has been quite a 48 hours. Abigail your characteristic your characterization is true either way. Down in a huge wave of them major averages, up today, off of the highs, off of the lows. It seemed not long ago that stocks were going to turn lower. Lots of uncertainty. As for yesterdays paper move lower it probably has to do with the payrolls report, which is complicated. It will be easier to say it was a move off too far, too fast. The index had been up 40 off of the lows at that point. The case could be made that was a sell the news report, because it was more than delivered. It did not happen on friday but on monday we started to have the