Britains lockdown. European stocks follow asiasing Economic Activity around the world with basic resources leading the way. Car sales in china rise for the first time in nearly two years and a sharp uturn from the 43 drop the month prior sno the german consumer good sees demand for cleaning products jump in the First Quarter but sales of shampoos and adhesives fall. 2. 2 billion deal to sell its business in the philippines is blocked by the local regulator. Good morning pe with seen green march back to the european boards as we begin a brandnew trading week what weve got across the board is reaction to gradual reopening of some economies in europe. Although there is a little more caution than weve seen in some countries like germany, south korea and china, wuhan directly, where the reemergence from lockdown has meant a spike in interest rate. The benchmark stoxx 600 rise of 0. 40, drifting off higher ranges with countries like spain not holding onto some initial green, and france tracking back up. Uk markets are trading higher as the country begins slowly easing its lockdown after Boris Johnson outlined easing. In a televised statement johnson encouraged those who cant work from home to return to the workplace while setting a broad road map for schools and restaurants to partially open. Foreign secretary dominic raab said nonessential retail would only open by july at the earliest lets go out to steve for more a lot of criticism about the phrasing, the way this was communicated yesterday, stay alert instead of stay at home. Walk us through the changes. Lets start off with exactly that point well hear the Prime Minister saying it in a few moments time. The message stay at home, you get it, i get it, its unambiguous, stay at home. What does stay alert mean . Control the virus mean save lives mean for us ordinary people for nhs its a nobrainer. There have been some memes on the internet about this. The first minister of scotland refused to change from the stayathome to stay alert, control the virus, save lives frisology because it is a bit woolleyer, i think we can agree on that. What the Prime Minister, i guess, is trying to do is talk about this phase where we move out from full lockdown into some form of hybrid system and we see how it goes. The alert system that goes from critical to severe to substantial to moderate to low as well. These five different stages which, of course, the government wants us to move down to one from our current full level as well the Prime Minister is talking last night and he was given the sketch of a plan how britain can avoid this tight lockdown as well the concern if we go too fast, the second wave will reappear. Lets listen into the Prime Minister and well talk about a few of the ideas that come forth. No, this is not the time simply to end the lockdown this week instead, were taking the first careful steps to modify our measures we said you should work from home if you can and only go to work if you must we now need to stress that anyone who cant work from home, for instance, those in construction or manufacturing, should be actively encouraged to go to work and we want it to be safe for you to get to work so you should avoid public transport if at all possible reporter ive listen to that bit of sound from the Prime Minister about ten times today the more i listen, the more i think hes imploring people more than anything else to get back to work if youve been at home the trouble is, employers have encumber on them to provide Safe Environments for their employees. Thats the whole thing about this covid secure workplace scenario, which will be talked about later on today when we see the 50pageplus document. Employers have quite rightly r airerai errored on the side of safety. From all of us looking at the numbers, this cannot be afforded now employers are saying, well not sure if we can provide the environment youre talking about. He talked about construction, and its contentious at every level, whether teacher, construction site manager, whether you own an industrial or engineering facility it will be a delicate equation going forward. On the upside and what seems more than ambiguous is outdoor is getting the green light including bathing, going to parks, going for a picnic, unlimited exercise outside from the 13th you know im a keen gardner, so of all things im excited about, which shows how sad my life has become, Garden Centers reopening. Hoorah. Take the credit card and go large. The economy needs it lets push onto italy, Giuseppe Conti says he may ease the lockdown earlier than plan if the situation remains under control on the ep democrat logical level. And he called on the European Union to make Funds Available in the second half of the year to cushion the blow from the pandemic as he warned of sharp falling gdp saying the economic consequences will be very painful. Starting today, france, switzerland, spain and the netherlands will begin easing lockdown measures amid fears of a second coronavirus wave. In spain half the population will enter phase one from the exited lockdown however restrictions will remain in place between madrid and barcelona. Spanish Prime Minister underlined the need for the remaining restrictions to be obeyed translator 51 of the population will get back more of their lives thanks to the efforts of all the people fighting the virus however, i want to repeat and underline the fact that the virus has not disappeared. It is still here in france schools will reopen charlotte has been tracking the virus from the start of the lockdown measures in france. Give us a sense of what people will enjoy today after 51 days of confinement, french people today can start to go out its a slow and gradual reopening of the economy very few measures, no more declaration to go out. People can go out without feeling the purpose of their outing they can go out within 100 kilometers of their home groups of ten people or less can meet with friends or family. Hair shops, hair dressers, restaurants and cafes remain closed at the moment just shops reopening for now as you mentioned, schools, some primary Children Primary School children will start going back to school this week smaller groups this week on a voluntary basis from the parents whether they want to send children back to school, starting with teachers and starting to go back into school. All these very delicate exercises are going on while paris is still considered the red zone, where the government unveiled last week two areas where theres a slower evolution of the virus and a more active one. Paris and the east of the country is the more active activity of the virus. A bit of concern, a bit of nervousness as the economy is reopening, public transport is opening, including in paris. People have to wear a mask mask is mandatory public transport. And mass transport they need a letter from employer saying why they are taking public transport. Thoe authorities are taking these to open the Economy Numbers of deaths, very much slowing down in france yesterday 70 deaths, which is the lowest number weve seen since the beginning of the lockdown in the country. The pandemic here, the epidemic under control. A bit of nervous reopening the country but a necessity after 55 days of lockdown try to have this difficult exercise of slowly reopening, bringing people back into work slowly and children to school and sending them back skew school, et cetera, et cetera, to keep the situation under control. Then we keep saying reopening slowly june 1st the government will look at the data, see how the situation is going in the country and will assess whether they can open the economy further or have to put back some restrictions on movement theyre keeping an eye on the next two weeks what shops are reopening in france. Charlotte, thank you very much for giving us the latest around the situation in france chairman of Capital Economics has joined us, roger bootle. I want to get to the cost of the pandemic were looking at the devil of deaths across the country, that moved to the economic numbers. The next step is the amount of debt we accumulate if we look at gdp, there are concerns this could rise to 95 down the track how worried should we be about the rise in debt i think we should be panicked about that it is concerning the fact of the matter is weve been here a number of times befo before i think the debt level in the uk will go much higher, probably well above 100 . Weve been here before after the thnapoleonic war, debt rate was over 200 we managed to work those debt ratios down. What we must not do, it will clobber the economy, once the virus is contained, we have to make sure we get the economy really moving. That will help to bring the debt ratio down. Weve seen the challenges in the past ten years the inability to really bring austerity tomany across populations given how hard hit they were. How do we get out of this crisis and pay down those bills when there might be a vshaped recovery, there might be an overhang. Yes, there will be parts of the economy burdened with debt very, very heavily, individually and companies. Im particularly worried about companies at this juncture the consequences are going to be with us for many, many years to come fortunately, weve got in this country i think the bank of england, a group of people will be determined to do what they can. In some sense, it sounds bizarre, but in some sense well be lucky we went through the financial crisis when we did i think as a result policymakers are more apt to dealing with this more radical and i think well see Central Banks having to sustain the Financial System and the real economy for many, many years to come. Roger, this is julianna coming in here i wanted to ask you about the possibilities when it comes to bringing down the debt levels in the future and taxes in particular this is obviously one of the ways the governments could look to bring down debt levels in the future at what level are higher taxes actually counterproductive how do you see the uk government employing a higher tax rate in the future yes, i am concerned that some governments, perhaps including the british one, will react to the crisis by thinking tax rates have got to go up. If the deficit doesnt come down dramatically, the result of Economic Growth will fall back, then something will have to be done theres a choice between either reducing the rate growth of spending or raising taxes. Id be very much in reducing the growth of rate of spending, but the danger is if you put up tax rates, you clobber incentives and reduce the efficiency of the economy. Thats the very last thing that you should be doing. However, this is going to be a political issue. Its about social acceptability. I think its possible that in a number of countries after all this, people might feel that taxes need to go up for some sort of social reason. In particular its quite possible in some countries youll see it among the top taxes, wealth taxes go up. Roger, good morning to you. Dont we have an economic sdmreegs after the that pony yanick war for several years, regardless the best efforts of liverpool . Ill leave that and you can think about it can we afford brexit im sure you remember from your economic textbooks. Same as me can we afford brexit given the fact i know theres a constituency that thinks a harder brexit would still be good for the uk . I know there are uk politicians saying, no, no extensions to the transition perioder ed brexit is an Inconvenient Truth at the moment, which is only going to do extra damage to the uk economy at this time, isnt it, roger . I dont agree with you either about the napoleonic war or about brexit those two arent connected on brexit, i actually think the position since the virus is even more strongly in favor of us having to get out of the transition period exactly at the end of this year the problem is that if we extended the transition period, we would be in this rather awkward situation of still being subject to all the eus rules and regulations. And entering a new budgetary period without having any control over and not having any influence or voting power, nothing whatsoever thats a peculiar position to be in its a dangerous position to be in new, a peculiar one to be subject to all these regulations without any say in it. The time were trying to get over the coronavirus, it will be catastrophic, in my view, to extend the transition period so that were still subject to new rules with no ability whatsoever to question them at a time when the government needs complete flexibility. I mean, look, we can argue, you and i, very much indeed enjoy arguing, i have to say, but where are these ready, signed, sealed and delivered deals drment forks told us would happen after brexit . Whos going to give these better deals, u. S. , china or europe first of all, i dont think trade deals are the be all and end all of this issue. A large part of what we can achieve, we can achieve ourselves without doing deals with anybody i think the signs are that we probably will get some sort of deal with the United States and a number of other countries, but we wont get is a deal if were stuck in an extended transition period if we extended the transition period for a year or two, then we wouldnt be able to close a deal with the u. S. Or anybody. Roger, i want to take you back to the recovery in the uk when it comes to spending because one of the Big Questions is how higher Savings Rates will translate into Economic Growth after the pandemic the longer that the lockdown remains in place in the most part, how is that poised to affect how consumers then spend as they come out of the lockdown yes, this is a tricky issue there are actually going to be quite a lot of people, believe it or not, with substantial cash balances this is the virus and consequences are not falling on everybody equally. Now, if youve got a secure income, maybe youre in the Public Sector or youve got a pension, you cant spend very much there simply isnt much to spend on its quite possible you come out of all this with actually some substantial cash balances. Now, of course, there are other people at the opposite end of the spectrum who aabsolutely clobbered in severe difficulty even though you have money, i think theres going to be quite a long period in which they feel cautious, theyre worried about the virus, worried about economic things. Life doesnt get back to normal. Theres a real problem, i think, about how rapidly Consumer Spending can return to normal. Its not going to be very quick. Its going to be a gradual process. Thats one of the reasons why i dont think the government should even remotely contemplate raising taxes any time soon. They shouldnt do it and equally, i think its also why Monetary Policy will have to remain supportive for a long time. Roger, i want to ask you about the reinfectionses weve seen in countries where theres been an easing of lockdown, the likes of germany, south korea and wuhan, china all along people have been worried about a phase one, phase two and beyond that in terms of reinfection. What does it mean from a government level as weve had. Does that mean more stimulus is required each time from governments . Well, we really dont know, do we . This has been a danger all along. You could paint a really ghastly scenario under which the virus let back again and economies had to be thoroughly locked down again. I actually think if it were to come to a second round, governments responses might be different. As things have carried on, its become perfectly clear that the economic damage from the lockdown is absolutely massive and potentially as serious to health and wellbeing as the virus itself so, i suspect that we would see governments adopt a slightly more nuanced approach. But we all have to hope nothing like this occurs. I do suspect as we talk about winding down those furloughed schemes what would come next thank you for joining the conversation, chairman Capital Economics. Steve and julianna will be back later in the show. This is news crossing from the German Engineering Association that says the Production Outlook cannot be maintained theyve gone on to say china supply chain problems are starting to subside. Also that had its forecast of minus 5 it issued in march for production cannot be maintained. Close to half of companies that it sees still facing continued difficult situation in the next three months so, that is the outlook from the German Engineering Association just a reminder, you can get involved in the conversation were having on ai air streetsignscnbc and tweet me directly. Coming up, a rough cut for he henkel there are times when our need to connect really matters. To keep customers and employees in the know. To keep business moving. Comcast business is prepared for times like these. Powered by the nations largest gigspeed network. To help give you the speed, reliability, and security you need. Tools to manage your business from any device, anywhere. And a team of experts here for you 24 7. Weve always believed in the power of working together. Thats why, when every connection counts. You can count on us. Markets across europe have started out, as we inch ahead in this sector. A mixed bag. Credit suisse are starting the week lower as well as duitch bank in the green. We have a stretch high for barclays and hbsb. Uni credit in italy with a my bounce of 1. 5 to autos, chinese auto sales have increased 4. 4 in the month of april after falling more than 43 in march, the first prize in two years. The Chinese Association of automobile manufacturers has warned car sales could fall by up to 25 this year depending on the pandemic daimler, mercedes down 2 . Bmw a strong rival in the market this morning germany is looking for a way to help lufthansa without taking a stake in the company the carrier is negotiating a 9 billion euro rescue package but the German Government is split over whether to take a more active role in the Airline Quick look at the stock over the year you can see its down 53 . Among those stocks out there, thats been hard hit by the impact of coronavirus. Lets take a look at this one. It was trying to reconstruct the business as it had plans to sell various arms over the last couple of years. You can see the stock price has been down 55 . Its reportedly said the german conglomerate need edz to speed up restructuring after the virus. Mertz warned the steel maker is in, quote, a serious situation as the virus has caused the company to lose cash they may close in the summer looking to further funding. To volkswagen, the stock is up by 0. 50 . They saw sales plunge by 83 in europe the german carmaker said chinese sales only dropped by 2. 5 last month and expected volumes to hit last years level again in the month of may sales at consumer goods giant henkel fell short of expectation. This is offset volume in shampoo and adhesives. This stock moving into the red, at philippines unit has been blocked by competition authority. The swiss comment maement mashg planning to offload its stake in the company, which includes cement and grinding plants and expected to close by the Industrial Group by end of year last year. It announced plans that the transaction has now collapsed as he this look to sell global assets to pay off debt it has several quit southeastern asian markets in the process. Coming up in the show, brussels hits back to germany after the countrys Constitutional Court disregarded the European Court of justice. And ruled to potentially limit ecbs bond buying powers well bring you details of the legal threat right after the break. There are times when our need to connect really matters. To keep customers and employees in the know. To keep business moving. Comcast business is prepared for times like these. Powered by the nations largest gigspeed network. To help give you the speed, reliability, and security you need. Tools to manage your business from any device, anywhere. And a team of experts here for you 24 7. Weve always believed in the power of working together. Thats why, when every connection counts. You can count on us. Welcome to street signs. These are your headlines. We will come back from this devilish illness we will come back to health and robust health. Though the uk will be changed by this experience, i believe we can be stronger and better than ever before. From stay at home to stay alert, uk Prime MinisterBoris Johnson lays out a conditional plan to bring more of the country back to work but stopped short of ending britains lockdown. Choppy trade in european stocks as a resurgence of cases in asia and europe tempers over the restart of Economic Activity around the world. Autos also shift into higher gear as car sales in china rise for the first time in nearly two years. A sharp uturn from the 43 drop the month before elon musk sees red, saying hell leave california over stops to reopen his plant as he files suit against the local county european markets across are investor landscape with investors concerned about the spike in cases where theres been reemergence from lockdowns like europe, south korea and wuhan, china the likes of france, spain, right here in uk, thats seen as a positive sign. You can see some of the gains early are not sticking the French Market moving into the red and ftse around the 6,000 at one point in the early part of the session. Now holding onto a slim percent. The italian stock market giving back half of its early gains up just over 0. 4 of a percent lets see whats in store. 100 points on the dow jones futures. Still in the green is a positive sign cutting some of that early lead as we see markets just a little more cautious as we creep up to that u. S. Session later on today. Brussels has threatened to sue germany after the countrys Constitutional Court threatened to block bondus bank unless the ecb offers sufficient justification within three months scholars were all over this over the weekend and they thought the germans emboldened the likes of warsaw and other countries out east to challenge the ecb, too. Thats exactly the problem here its not just about the ecbs bondbuying program. Its also about the ram ficti ramifications that could come from the Constitutional Courts here in germany. Its the self time ever a national Constitutional Court is saying that the European Court of justice has actually made a mistake and that it might be a huge problem for the European Legal system thats why we see such a forceful move also by the European Commission putting a potential or saying that they could potentially sue germany and bring them actually in the same camp like poland and hungary. On suing national state, also france was already subject of such a proceeding in 2018. So, it is not super unusual but it might now at the time of this crisis, it might really set a precedence that other countries could also say, well, our National Laws contradict european law and it is not that the european law is actually worth more than the national law. That is the problem. And what will happen next is crucial. The German Government is currently analyzing the verdict. What could happen, according to lawyers ive been speaking to, is that the bundis bank comes up with a sort of report and that report then will also be approved by the governing council so everybody has saved their faces in that sort of scenario and then the bank could could continue to operate and could continue to buy those bonds. That is only a single problem. What happens to verdict as such has more ramifications for the legal order. Back to you. Thank you for bringing us the update Chinas Central Bank has signalled it will continue with policy measures to support the economy. They also announced it has cut Interest Rates on standing Lending Facility in april. Lets get more on the new focus from the central bank. Thank you very much so, certainly sounding progrowth in its latest quarterly review implementation paper. A lot of guessing game in terms of the pbocs language they didnt really come out with a lot of details but they did drop some key phrases such as flooding the economy with excess liquidity. That was there in q4 of 2019 but not this time around certainly looks like the pboc is ready to do a little more than previously obviously precoronavirus. There is another acronym of rates that the central bank of china is tinkering with. This time around its slf, standing Lending Facility loans for the month of april that has been cut pretty much across the board for overnight, sevenday and so forth by 30 basis points were talking about now this time around a shorter term lending loans that are being cut in terms of the rates as well. All this, is this really working in terms of the. Boc trying to engineer lending remember the authorities in china have been basically encouraging a lot of banks to give out loans so that small and big businesses can actually stay afloat during these difficult times. If you take a look at the latest figure we got in terms of the liquidity measure in china, it certainly seems that way if you take a look at the new bank loans for the month of april, it actually came in at 1. 7 trillion yuan. Certainly did come down from the levels we saw in the month of march, but certainly more than what economists were expecting the broader liquidity gauge in terms of economy and that came in with growth of 11. 1 on year and thats actually slightly higher than the figure we saw in the month of march and that beats reuters expectations as well if you take a look at the longer duration, there has been that pick up in terms of the liquidity. This actually shows this is the highest growth since december 2016 so is this working what the pboc is trying to do, engineering lending rates and getting liquidity out into the system it seems that way the bigger question at this point is, one, what does the second wave do in terms of dealing a blow to the economy and, two, what kind of effort derisking is going to what kind of damage all these derisking efforts that have been there in the past and what kind of repercussions is there on that front back to you. Thank you very much for that. Shanghai disneyland reopened doors to customers today ending nearly three months of park closures for the company it wont be business as usual for mickey and friends with visitor numbers restricted to 30 of the daily capacity. Temperature checks, mask wearing and social distancing measures will also be enforced. Shanghai disneylands Senior Vice President of operations showed our colleague some of the steps disney is taking to ensure customer safety at the park. This is one of our main entry areas into the park. We have a couple different types of markers we use. As youre further out in the queues where its a secondary area, guests are first arriving, we have basic yellow markers we asks our guests to stand as a group together, so as a family or group of friends they can Stay Together on a line. We also have cast members patrolling all the queues with social distancing signs, asking our guests to maintain that social distancing and public announcements to reinforce that. Elon musk is suing alameda county, calling the countys interim Health Office ignorant and said authorities were asking against the governor and president. The california has eased some lockdown issues but several counties have issued their own criteria which supercedes the states. Musk said this is the final straw and threatened to move the companys headquarters from california to texas or nevada if he was not allowed to resume operations julianna joins me with more. This is a facility with 10,000 workers making 400,000 cars a year not easy to pick up and relocate to another state. No, absolutely not. Its interesting to see elon musk, hes been one of the most outspoken ceos in Corporate America who has really spoken out to reopen the country, which draws contrast from Mark Zuckerberg to remain as locked down as long as necessary. His workforce very different from what elon musk and tesla is working with with auto manufacturing. I think looking ahead, it will be interesting to see how tesla stacks up against the other automakers given the renewed emphasis on electric vehicles and the push to Greener Technology and whether this is an opportunistic from elon musk to get tesla production up and running again to take advantage in this shift of public preference toward more green solutions. What jumps out to me is musk is not exactly a friend of the shareholders Broker Community very you have legacy automakers, the like of daimler and the challenge they face bringing operational changes to new electric vehicles where tesla has already made it much more difficult for legacy automakers the tweets weve seen from him in recent weeks have not been positive for the share price number one, around the stock price being too high you saw the Share Price Fall as a result of that and the latest tweet, obviously bringing the operational cost of relocating if that were to happen we know that musk has recently had a new Family Member arrive lack of sleep can make a difference thats a good call, absolutely bringing it back to your point about the incumbent automakers, one of the Big Questions over the last year or so as incumbents have invested in transitioning their traditional vehicles to make electric vehicles, with tesla the pioneer in electric vehicle actually fall back as incumbents ramped up their capacity to produce and employ their expertise in production but this could be an opportunity to change the race when it comes to lead the charge for electric vehicles in the future julianna, thank you very much well talk later in the show wirecard announced it is reshuffling its board and appointing a new Compliance Officer after a kpg audit report said it lacked necessary information to clear the company of accounting irregularities they said the ceo will oversee Financial Communications and Investor Relations while ceo marcus braun will focus on strategy and innovation. Ahead, we get a view on the u. S. Economic outlook after the Unemployment Rate soars to almost 15 jimmys gotten used to his whole room smelling like sweaty odors. Yup, hes gone noseblind. He thinks it smells fine, but his mom smells this. Luckily for all your hardtowash fabrics. Theres febreze fabric refresher. Febreze doesnt just mask, it eliminates odors youve. Gone noseblind to. And try Febreze Unstopables for fabric. With up to twice the fresh scent power, youll want to try it. Again and again and maybe just one more time. Indulge in irresistible freshness. Febreze unstopables. Breathe happy. A number of countries where lockdown measures have already been eased have seen a renewed spike in covid19 cases. South korea, germany and china saw a rise in infection rates. Germany had risen 1. 1. Seouls Party District has forced korean authorities to shut down bars and clubs again china has reimposed restrictions near the north korean border after new cases were reported. A quick look in paris as we see reopening across the capital. Cham champs, restrictions eased and designer shops reopening doors social distancing very much going to be the feature for any activity on the ground unemployment in the states may have already hit 25 , according to treasury secretary mnuchin, warning the numbers will get worse before they get better he expects a strong rebound in the second half of this year the treasury secretary also refused to rule out further fiscal support for the hardhit economy. If we need to spend more money to protect the American Worker and the american public, we will absolutely do that now having spent 3 trillion well take a few weeks. They lost more than 20 million jobs in april as the lockdown sent the Unemployment Rate to 14. 7 . That was below expectations. Bhut the highest level on record since warorld war ii. Travel and leisure lost 7. 7 million workers. Larry kudlow says the Trump Administration has started informal talks with u. S. Lawmakers on a next round of relief packages. They have a call scheduled with white house representatives today to discuss what the next steps should be as some states have begun gradually reopening their economies. President trump says the u. S. Government will stop purchasing agricultural goods this week with an aim to buy 3 million worth of dairy, meat and other produce from farmers job losses have forced Many Americans to line up for food banks, it comes after the u. S. And chinese negotiators agreed to create favorable conditions, including a chinese equipment to buy u. S. Agricultural goods. A phone call late last week eased tensions between washington and china over the source of the coronavirus outbreak. U. S. Treasury yields recovered after hitting an alltime low as the Economic Data pointed towards a disastrous Coronavirus Impact implying more Central Bank Action ahead adds the u. S. Treasury plans to borrow record 3 trillion in the second quarter. A quick look across the board. You can see u. S. Tenyear treasury yield at 0. 69 . Brin, i want to get to what fed funds futures did on friday sessions as we saw this switch into negative territory. Do you really think we are setting course for negative rates in the u. S. At some point . Im not so sure in the short term possibly longer term i think more to do with the amount of purchasing by the Federal Reserve large qe purchases continuing to drive down yields. I dont think well get there in the short term but there might well be a longer term view that goes negative. In the short term well hear from jay powell due to give keynote speech wednesday what do you think hell outline to investors that wont undermine risk assets . I think were likely to see qe until the end of the year whether they make that statement this early in the year but i do think the Federal Reserve and the treasury are almost playing a game of modern monetary theory we heard new zealand possibly monetizing their debt for every dollar of issuance were not quite there yet in u. S. But the feds large qe purchasing ahelping directly fund the large budget deficits were seeing from the issuance of 3 trillion in fiscal stimulus weve seen. I think were going to continue to see the fed talking a line of modern monetary theory where they monetize debt issued by the federal government. Youve got the treasuries at one end, high yield which you and i called junk at the other end. Is anything in junk that should not be or anything in junk that should be . There should be more stuff falling into junk as we go through the year weve seen a record year of fallen angels falling into junk. Etfs and direct fallen angels. We will see more drop into high yield at some point. I dont think theres much in high yield that shouldnt be in high yield i think its more the other way around interesting, though it, u. S. High yield saw yeartodate has actually seen positive inflow of 2. 7 billion were seeing a lot of Asset Allocation in excess is of historic levels. For some this is looking quite attractive the Energy Sector in the u. S. Is quite large compared to u. S. High yield thats an area a lot are concerned about, especially after the front end Oil Contracts collapsed. You can argue the fed has implicitly supported equity markets through their recent policy action. Do you think we could see the fedex police italy buy equities . When this first happened, i sat with the Asset Allocation team and said it was different from gfc gfc was about financial collapse and probably took too long sorting that out this time they came straight in, the assets across the mnl sector main street is where its happening. A huge amount of companies this are struggling you can say gyms and hotels and restaurants and airlines but where do you draw the line is that effectively nationalization . How does that all work are they only a shortterm buyer of this . I think this step into real main street economy is where they need to be focused theyve been able to get money into main street quite quickly if you look at the uk and banking mechanism perhaps has not been as successful yes, i do think perhaps it might be an interim measure to support main street. Quickly, any idea where that u. S. Tenyear yield is going its been fairly stable over the month of april and may, over those two months versus what we saw from the start of this year. Its the same as the uk very narrow range. The uk around between 25 and 30 basis points the tenyear has almost been a flat line. Well continue to see that, as we see every dollar of issuance, i think if we say that the fed are going to probably sorry, the fed Balance Sheet will be 10. 5 trillion, maybe hold over well see 3 trillion in the next quarter or whatever, and at the same time the fed bank will be buying 60 of new issuance with that amount of ifishanceof dont think well see that much. Before they stepped in and we saw the tenyear yields rise aggressively because it was a massive liquidity squeeze. People were selling assets that they could, which is basically gold and treasuries,and as a result i think the fed and Central Banks have stepped in saying they dont want to see that again. Thank you speaking of selling assets weve seen a reversal in universal markets. That wraps up todays show Worldwide Exchange is up next. Across america, Business Owners are figuring things out. Finding new ways to serve customers. Connect employees. And work with partners. Comcast business is right there with you. With a network that helps give you speed, reliability and security. And enough bandwidth to handle all your connected devices. Voice Solutions Like remote Call Forwarding and readable voicemail. And safe, convenient installation. When every connection counts, you can count on us. Get the connectivity your business needs. Call today. Comcast business. It is 5 00 a. M 5 00 p. M. At disneyland shanghai. Stocks could keep their winning streak going as Big Technology continues to do their thing. Well give you one remarkable statistic. Businesses pushing ahead with their reopening plans despite a rash of new outbreaking popping up around the world. It is musk versus the golden state. The billionaire threatening to pull tesla out of california the world is watching as shanghai reopens its