Equities not totally convinced. They were higher, then rolled over. Part of that is the u. S. U. S. Futures were a little higher three hours ago. Now weve rolled over yet again. Intocalvasina sees a dip 1700 possible for the s p. Part of the reason we are seeing this is a spike in the dollar index. Causing a lot of pain across the board, whether in the commodity market, emerging markets, europe. The eurodollar having an unbelievable slide. The cable rate at its lowest level at one point since 1988. Time now for global exchange. We are going to bring you todays market moving news from around the world. From brussels to london to lawson can to washington, our bloomberg voices are on the ground with todays top stories. The ecb announced it would do whatever it takes and an emergency Bond Buying Program. Joining us is maria tadeo. Walk us through what we know about the program. Maria first of all, it was unexpected. It took a lot of people by surprise. You have to take a look at the amount of 750 billion euros. What investors really like here is the fact that the ecb is hinting it can be very flexible Going Forward when it comes to what it would be allowed to buy. It is also hinting that it is ready to go into markets that until now have been restricted. You mentioned the great bonds. The yields plummeted this morning. The greek bonds. Yields plummeted this morning. It was across the european periphery, and italy in particular. I would also note and stressed that this was a total uturn from Christine Lagarde just a few days ago. She said my job is not to narrow bond spreads. Today she is saying these are extra ordinary times. There are no limits as to what the European Central bank can do Going Forward. Alix maria tadeo, thank you very much. Italian, german, and french bonds serving on the ecb stimulus plan. We are joined by dani burger from london. This int me put perspective. The move lower in btps by more than 70 basis points is the biggest decline in those yields since the european sovereign debt crisis. These are definitely a big day of superlatives. Greek bonds, a remarkable move in the fiveyear. At one point, more than 200 basis points lower. The ecb able to step in and by greek bonds once again. Many have questioned, has the ecb run out of stimulus in order p and stabilize the Financial System . Here is a big vote of confidence, but can it have a continued effect on the market . We especially need action from governments, is what analysts are arguing. Income, the fixed desire for cash and havens continues. Really apparent in tbills, short dated government bonds. The u. S. Government borrowing more and issuing more debt. We are seeing investors flock into the market. These short dated bonds are ones that are seen as more liquid, easier to buy and sell. Because of that, we see the yields turned negative on one month and three months government tbills, now trading at a record low in terms of the yields. At one point, six months tbills also turned negative for the first time ever, so it is clear that investors want cash, and they are willing to pay any price for it. Alix we have the 10 year tips auction coming up in the u. S. At 1 00. Thanks so much. Now we go to washington, where the Senate Passed the second major bill in response to defendant. Larry kudlow said the u. S. Government could take equity positions in exchange for aid. He was very much against the bailouts we saw in 2008 and 2009. That would be in exchange for help from Certain Industries. Joining me now is kevin cirilli. That was a headline. Kevin precisely. They are essentially saying there are going to be Strings Attached to these bailouts, particularly for large industries. President trump rather, Senate Majority leader Mitch Mcconnell advancing the first part of that economic stimulus bill. 1. 3all eyes turn to the trillion dollars stimulus bill. Lawmakers told to be ready to vote on this and to stay near capitol hill. It also comes when two house members, i democrat and a republican, have tested positive for coronavirus. They are quarantining. New measures are being called, proposals by mentors of congress, saying they are potential he considering to vote remotely. That is something that speaker of the house navy pelosi and Senate Majority leader Mitch Mcconnell have not publicly entertained as of now. But clearly, everything is an option at this point as lawmakers continue to grapple with the economic and procedural fallout of the pandemic. Alix thank you very much. As the coronavirus continues to put the economy at a near standstill, the fed made a Late Wednesday announcement on new actions it will take, including emergency aid to Money Market Mutual Funds. Joining us is michael mckee, Bloomberg International economics and policy correspondent. What did they do, and why was this so important . Michael putting out an announcement around min date around midnight is any indication of how worried the fed is about market reaction. The Money Market Mutual Fund liquidity facility will lend money to banks that buy commercial paper, treasuries, and also agencies from Money Market Funds that are trying to raise cash. Many of them have been trying to sell these securities to raise cash over the last week as investors try to get their money out, redemptions. But with demand for cash rising, they are finding it difficult to get buyers, so the fed is stepping in. As for the commercial paper facility, the Treasury Department is going to backstop this with a 10 billion line of credit. Analysts say the best measure of how this will work will be in the commercial paper market because even though the fed announced earlier this week it was going to put up funds in place for that, it hasnt really had a huge effect yet. Meanwhile, 8 30 this morning, we get a horror movie trailer release. It is jobless claims. We call it a trailer because next week, we are going to see massive jobless claims. Take a look at some of the numbers coming in from the states just for this week. We are seeing about half the number of claims we normally get in just three states. In shepherdson of pantheon macroeconomics said he thinks next weeks numbers will be over 2 million. This weeks numbers just include last weeks filings, so while it will be up, it wont be as bad. Thats why i am calling it a trailer. Thanks ahael mckee, lot. Crude rebounding after plunging to the lowest level in about 18 years. Futures rising as much as 22 . Joining me is bloombergs annmarie hordern. It seems like the conversation is less about saudi arabia and russia and just take out the lowercost producers fast. It is still a bit of a wipeout. Crude was down some 25 yesterday. Today we are up just to dollars. We are seeing epically low prices. Citi now saying we could see 17 on oil. People in the market say they see Single Digits insight, at least for wti. This is all due to demand destruction at the same time the worlds two biggest producers are ramping up production. Pecis so bad that a former no cosponsor is calling on President Trump to ban imports from saudi, russia, and other opec countries, and we have an emergency stimulus measure from Central Banks around the world, and one analyst made the point that this is making centralbank positions so much harder because low oil prices are creating a deflationary spiral. This is making the situation much worse, and at these prices, it is just panic level. Alix thank you very much. It is a develop into a dependent we have been watching. New evidence from the u. S. And europe suggest younger adults arent as impervious to the coronavirus as originally thought. Initial data from china show that the elderly and those with other Health Conditions were the most vulnerable, but in the u. S. , 705 of the first 2500 cases ranged in age from 20 to 44, and the latest numbers show even more hospitalizations by 54. Age between 45 and the most at risk are those with lments that havent yet been diagnosed. Obviously, the death rate is much higher when it comes to those 85 and older, yet the infection rate is jumping for those considered younger. They are not impervious as we ought. Coming up, more of your morning news, tradand analysis of the markets in todays first take. This is oomberg. Alix time for bloomberg first take. Going to make from our inhouse team of wall street veterans and insiders, michael mckee, Bloomberg International economics and policy for, and Damian Sassower, and mike mcglone. We wereyesterday talking about Money Market Funds and how the fed needs to step in and provide liquidity, etc. Is that enough from where you are sitting . Damian thats a very good start for me from where im sitting. The strength of the dollar is the story this morning. Down on theanc is dollar. If you look on a cross currency basis, yet again, they blew back out again. We are back up to tuesdays alltime highs. Obviously, the broad. For dollars is alix so what do you do . Do you just have to wait this out . Mike theres a few markets that finally found a base. Look at crude oil. Yesterday it finally found a good base. It is probably good support for now. On deals a couple of weeks ago at 1 , now you expect them to retrace to 2 . As quited yields back attractive. With the dollar strength, at least now with the volatility readjusting, and the key protruding name i am worried about that hasnt found a base yet means the stock market. Hopefully we will find a base like we did in crude oil. Alix fair enough. Are we going to have conversations on the plaza accord, etc. . Michael probably not. Other Central Banks, especially in emerging markets, but at this point, the dollar is every bit of the old line about its our dollar, but your problem. It is everyone elses problem the dollar has gotten so strong. It is having an effect on all markets. But i think the most important thing to keep in mind, as the gentleman we were just talking about, there are bottoms forming. The Central Banks have been trying to keep the plumbing working, and its starting to look but they are able to do that. Then the stock market and all of these markets become sideshows. The real question is what happens over the next couple of weeks with fiscal policy in all of these countries. Do they Keep Companies operating . This recession is going to be very deep very quickly, but how fast it comes back depends on whether there are any Companies Come back to. Alix it is such a good point, but i think thats where you have the dollar and the fx market meeting the fiscal. It is really difficult when you on the dollar index and cable rate at a low. Damian potentially a lot of asset are finding bases, and emerging markets currencies certainly arent. Look at the real, the peso, the ruble. The rand is already at 1730. They may weaken it. If you look at the price action, it is very clear to me that markets arent operating, they are not functioning properly. See margin calls. The Hedge Fund Index had its worst oneday loss on record yesterday, down 6 . That tells you all you need to know about the biggest hedge tsnds, the big multistra further weighing on Market Pricing here. Alix fair, which mike mcglone teased that maybe we have found a bottom here. Gold, if you are below 1500 an ounce, that totally speaks to margin calls, and even saudi arabia selling to make up for the fact they are losing so much money on the oil price. This point, i think theres pressure on gold because we know theres a war, and we know what does well in wars, gold. Right now it is the dollar pressuring gold. Even bitcoin, if we look ahead, we will see massive debt to gdp increases. I see that quasicurrency gold, this is a dip in the trend. We saw the same thing into thousand eight. Michael let me throw a question to both of you guys. Gdp these massive debt to numbers, which is not just the united states, how is that how does that affect the markets longerterm . Are we setting ourselves up for an Interest Rate problem . Damian i have to say, some of the biggest risk takers in the world are sovereign wealth funds out of the middle east. What do they own . What do they invest in . They invest in credit, treasuries, mortgagebacked had funds mortgagebacked hedge funds. Steal money from those reserves theyve built over time. Who do you think is going to . It is going to be u. S. Markets and u. S. Asset managers. That may be where we see some of these redemptions coming from. Just a comment on that, and i started trading in the 1990s, everybody says im happy. Chinese yields are lower, and i think we are heading a little blip because theres a massive increase in debt, but overall, theres no inflation. Just look at the breakevens. The bigger risk is deflation. The prudent thing for governments to do is what they are doing, but right now, i think this blip should go back to the trend of lower bond yields. Alix but your point, no one is going to care about that until they care about it, right . Michael it is a longerterm problem. Another longterm problem that came up last night, i saw an analyst note that said we are all thing about the problems we are having in the developed markets, but what happens when this disease hits africa, where they dont have Central Banks who can step in and prop things up . Where they dont have the medical systems to keep up with the disease . Damian a great point. Ive spent the better part of my career operating across the continent. If you look at nigeria, for example, nigeria and ebola, this is nothing new to them. You know, aids. A lot of the crises that have africa, they have a bit of a plan to handle this kind of thing. In many respects, they might be not better off, but certainly equipped to handle such stress. Mike, i have a question for you. Some of the highfrequency data in the u. S. That ive seen out of places like illinois, connecticut, ohio are absolutely horrific. I wonder if you have any thoughts because for me, if you look at the Global Financial crisis, it took 18 months for unemployment to surge, to double to 10 . I am wondering what you think about todays print. Mike claims is lagging. Stock market prices have been pricking this for a while. To me come of key things was yield. It is going to get bad. Michael im wondering how the markets react next week. This week, we are looking at claims that were filed last week before things really got bad. You are looking at number seven filed this week, and Ian Shepherdson from pantheon said this morning he six we could see claims of 2 million next week. He thinks we could see claims of 2 million next week. Remember, and the financial crisis it was a lot of people in new york losing their jobs, but for the rest of the country, it was a slowmotion crash. This is a fast motion, highspeed crash. We will see a lot of people out of work very quickly. I know that the market knows that, but the question is, when they see that number, does it still give people on trading desks a bit of a heart attack . Alix just to wrap that up, the issue now is going to be in the services industry. In the financial crisis, it was the whitecollar jobs, and then it rolled over. This is a whole different thing. Consumers add trillions of dollars to the economy. Michael its gotten worse than that because now we are seeing auto companies, the entire Auto Industry around the world is shutting down, including all of the plants in the united states. We are going to see it in manufacturing as well, and of course, oil fields are shutting down. This is going to have a massive impact across the country, and away we have never seen before. Buy to wrap this up, you any currencies today . Damian ive had a lot of conversations over the better part of this week. At this point, with the lack of trader safety in the market and the value of risks shock we are seeing on the heels of that, i wouldnt be surprised if people start taking seriously the idea of setting this market down. Theres no price discovery. Its just not real. Concerned that it is going to spiral downward. Im not calling for the markets to be shut, but it definitely think we need something to reset sediment here resets intimate here. Alix youre not alone with that reset sentiment here. Alix youre not alone in that. Thanks a lot. Any chart we use throughout the show, go to gtv on your terminal. You can browse them and check them out, save them. This is bloomberg. Viviana you are watching bloomberg daybreak. Kkr has pulled off one of the biggest deals since the market turmoil began. It has agreed to buy pennant groupa Waste Management arm pennant groups Waste Management arm for 4. 9 billion. It is a sign that businesses are still willing to deploy capital unstable assets with printable cash loads. The pandemic taking a growing toll on u. K. Fashion brands. Burberry saying sales have fallen by as much as half since late january. About 40 of its Stores Worldwide are closed. We end with an offer reminiscent of detroit contributions in world war ii. Tesla has joined General Motors in offering to make hospital ventilators. This as auto factories closed by the coronavirus outbreak. Theres expect to be a shortage of the devices. White house Economic Advisor larry kudlow saying g. M. Ceo mary barra floated the idea that the automaker could pitch in. Alix thanks so much. Incredible story there. Staying on what companies are doing to help hardship such as the virus, netflix wants you to be able to have a movie night wit