As to what the fiscal responses . We do not. Sebastian businesses size up their bottom line with continued headwinds. We see the business down 85 . Colleagues in china say it is Getting Better everyday. Can want to do our best to fight this crisis and achieve our targets. Sebastian investors, economists, and policymakers offer guidance in a time of financial turbulence. I think the odds are 80 we will have a recession. The Oil Price Decline is very good for india, good for china. Liquidity, three months, six months, nine months, people will go bankrupt. Sebastian that is all straight ahead on bloomberg best. Hello and welcome. And this isn salek your weekly review of the most important business news, analysis, and interviews from Bloomberg Television around the world. Lets start with a look at the top headlines. Last friday and talks between saudi arabia and russia as Oil Output Cuts collapsed in vienna. Opec Officials Say they will work toward a deal, but the kingdom announced it woul
Capitulation. I think investors are trying to figure out when does it come. How do you know . Abigail you feel the panic and fear. Highyield is selling off , credit selling off. We are seeing the haven bid. The other thing you would want is that capitulation bottom. Technically, we are nowhere close to the bottom, so we could see days and weeks of this kind of relentless selling, very reminiscent of 2008. Take a look at the Energy Sector, down more than 15 , its worst day ever going all the way back. That is the degree of the fear, the uncertainty and the selling of an on today. David you are a technical person. Give me an example of resistance on the s p. Abigail we are looking more at support, which means we want to see where the buyers are stepping up. You want to go to a weekly chart on todays open. We are well through the 100 week moving average, which means we will probably find support down. If we are lucky, that is at 2640 , but i would make a case for 3300. When you have bonds
Those are leading the gains today and recovering at the peak now 35 or so40 , from those record highs. David now we have an announcement that the fed is including their money Market Facility to include muni debt. Taylor this is interesting. There was a lot of talk on there. The muni market in general is much more illiquid than the rest of the market. Not surprising to see that in a week like we just had, with stress showing up even more and more. Muni traders continue to say there are some shortterm issues , but theres a lot of issues going on on the long end. I believe in previous laws, the fed could buy these up to six months. This expands it to longer dated maturities. We are getting a lot of that illiquidity on the tens and on that yield curve. Also, they had record outflows, according to as of yesterday. I would imagine this gives a little bit of some confidence to some money market facilities to also include muni debt. David what about all this talk about bailouts . There are neg
We had reached that 2000 level at 20,000 level. Coming back up against that. Tohink volatility is here stay. That might be the least most can say. Some peoplehear saying raise the possibility markets. He something suggested sec close the earnings this quarter. She said, most companies now are even being able to report quarterly guidance. They are just pulling their forecast. They even dont know the forecast. And try tocome out find a forecast for the s p 500 onearnings per shared growth year over year basis. Think of all the concerns. We will not get those answers or so untilmonth the 1st quarter ends. We start to get reporting for sole of those companies. Are some good winners today. There are few that i should mention that does remain in the healthcare space. This is interesting. Theyre working with pfizer on a potential vaccine. Trials looking for human early this summer. Early vaccine they are working on. Theainly some good news in markets. Appreciate that report. Now to chicago, w
Economy remain strong. The unplanned rate has been near halfcentury lows for more than a year. Job gains solid in wages have been rising. These strong labor Market Conditions have underpinned solid household spending, which has been the key driver of Economic Growth over the past year. Fomc meetingf our in january, prospects for growth remain favorable. Judge that monitoring policy was wellpositioned to support that outlook. Since then, the spread of the coronavirus has brought challenges and risks. The virus has afflicted many communities around the world and our thoughts and prayers go out to those who have been harmed. The art break has disrupted Economic Activity in many countries and has prompted movement in Financial Markets. To virus and measures contain will weigh on Economic Activity, both here and abroad for some time. We are seeing effects on tourism and travel industries and hearing concerns from industries that rely on Global Supply chains. The magnitude and persistence of