The russell looking at a 100 point drop. Volume has picked up today. Volume in the dow, s p and nasdaq positive versus yesterday. A little bit more activity in the selling on the first day of the Second Quarter. We have all three Industry Groups down. When you look at the decliners versus advancers, it is in double digits. Romaine on a day like this, anytime we have a big down day, i would like to see who the gainers are, the winners, names like balaton, teledock health. Teledoc a lot of the consumer staples, target, kellogg, moving higher 1 or 2 , kroger up more than 1 . I want to bring back into the conversation jim polson, still with us. Appreciate you being here. Lets move from equities and look more broadly at some of the other Asset Classes. When we look at the treasury market today, i relatively tamped down day come a relatively tamped down day. On the long end, seeing the 30year hold around 1. 27 . When you look at the treasury market, what signal is it telling you . James i think it is significant the bond yield, 10 year bond yield bottomed out on march 9, below half of 1 and it is still higher than it was then. You know, in the last several, both before 2000, bottoming in 2000 and 2008, the bond yield bottomed first before the stock market. It was a good sign of the past four bear markets that was the start of the bottom of the financial markets. The fact it has held that bottom i dont think is significant. The fact what has gone on in the bond market, the embedded Inflation Expectation in 10 year tips, which for a while was belowdown significantly 1 . 5 ent down as low as about a couple of weeks ago. It is closing tonight almost unchanged at. 9 . For a while the real yield was skyrocketing. The 10 year treasury was rising at Inflation Expectations were collapsing. Now the real yield is back negative. That takes the pressure off of the financial markets, liquidity squeeze. It also is suggestive to the extent inflation has turned up like yields themselves which could be a sign of the first part of the recovery process. Scarlet im starting to get your the fixed income space go ahead. James the other thing i point out as well is we also in recent bulkhave a peak out in investment and junk spread. The tech investment which after expect exploding higher, all of those have come in a little bit. That is also encouraging. We will have to see if that holds out, the market comes down even more. It is nice to see some evidence in the credit markets of a bottom showing up. A crlet you want to see alming. I want to get your opinion on the muni market. There was selling two weeks prior. Things have calmed down after the fed announced it would buy those bonds as well. Im looking at this etf, it closed down 2. 4 today. There was a 5. 5 decline friday. Is this a leading indicator for other Asset Classes or is the damage, the route specific to itself . In some regards it sort of is common to what we saw in a lot of these credit markets. Junk spreads, even the moodys has had similar movements. If you look at the hyg, the etfs for Investment Grade and junk bonds, they have a similar chart to the permissible bonds. It shows stress. Today the underperformance of the muni relative to the treasury was not as advanced. Stress. E is still the more liquid markets you go, you see even more stress. The muni architect greater liquidity that some of the Investment Grade corporate markets. All of them have shown liquidity than some of the Investment Grade corporate markets. All of them have shown ability to bounce. March 18, 42. 5 . There is some bounce going on. All of them show stress but at least they are showing maybe that is bottoming out. Theine when we look at we talk about the trillions of dollars hitting in a backstop from the fed, do you worryto worry you be is not the right word maybe worry is not the right word. Is there any meaningful increase in inflation down the road once we get the recovery . James at this point, i hear what you are saying. I will deal with it when i see the lights of inflation the whites of inflations eyes again. 13 federal deficit is a percent of gdp. Maybe the largest ever in postwar history. And having essentially a negative real 10 year yield, and a massive growth quantity of easing 7. 5 we have massively stimulated here. If we have a revival in growth, inflation will become an issue in the financial markets, but certainly today. One thing i would say about policy which i think is meaningful, like this market itself, we have gotten policy much quicker and much more aggressive than we ever had in the past. In 2008 it took us until december to get the zero funds rate. We got there almost overnight after the collapse. We didnt have fiscal stimulus until after it was almost over in 2008. We have it now. The real yield was rising throughout 2008. I am encouraged i the policy response. By the policy response. I think it is going to win. Scarlet we have a question from a viewer. Even though we are socially , one offrom each other our viewers has a question. Do the Department Stores survive this . In what form . Think there is going to be a number that will close and will not come back. The thing about Department Stores is they were dying before this happened. Since 2018 in some regards we have had rising internet sales, death on main street as far as store sales are concerned. I think it is a risk. It is a risk for a number of Department Stores, not the companies overall. It has more to do with a shift in the way we shop anymore and we are just not going to be needing as much physical space as we did for retail in the past. Scarlet jim polson, thank you. Chief investment strategist at that does it for the closing bell. What did you miss is up next where we are looking at one persons push one for ppe. There is good news out there. This is bloomberg. This is bloomberg. Broadcasting live to our viewers worldwide, this is what did you miss. I am romaine bostick. Scarlet fu, Joe Weisenthal will be joining us later. Scarlet we start off the Second Quarter the way the First Quarter ended with big losses. The s p falling at least 4 . More than 7 for the russell 2000 in decline. Investors brace for a longer economic shutdown. The Federal Reserve we know has taken unprecedented action to stem the fallout from the coronavirus pandemic including a new Lending Program for main street businesses. With ters at down to discuss the different Lending Programs and how the new Lending Program may be a couple of weeks away. It is a compensated facility complicated facility. [no audio] scarlet we seem to be having some problems with his comments, but he said it is a complicated facility to scope and it will take a while to scope. They will work over it the next few weeks. Lets hope there is no technical issues here as we bring in our next guest. She is a former fed economist and now director of macroeconomic policy at the Washington Center for equitable growth. Good to speak with you. Are you there . I am here. Thank you for having me. Scarlet perfect. All right him a great. Scarlet it is not the Federal Reserve that has taken unprecedented action. We have seen the federal government take unprecedented action with issuing direct checks to people, making direct payments. You were part of a paper preparing for recession and you wrote a section on direct government payments to people. You have done research on this. What does the Research Show about Lump Sum Payments to individuals . Paymentsws that these are effective and they are important in a recession. We absolutely have to get the most money to the people that are hit the hardest, the ones that lose their jobs, get ill. We also need to get money out to everyone. Everyone is going to need support, especially because they dont know whether they are going to get sick. Many americans dont have much savings set aside to buffer a job loss or hours getting cut. So i have lobbied hard for this policy intervention. It is crucial it came in a package with many different forms of support from congress. I am convinced this was an important step and i am heartened after having spent a lot of time talking about the proposal, explaining how the Research Says it is the thing to do. It is going to happen. Romaine i talk a little bit about how it was structured in the 2 trillion bill that got past. Going out, but not necessarily to every single person. There are some caveats and qualifications. Is that the type of thing you are satisfied with, or should this have been expanded by giving them to every american . Claudia i am thrilled with the way the legislation came together. The devil is always in the detail and i am not going to stop holding my breath until i see the checks out the door, the money out the door. The recovery rebates is more, it than anyr, bigger rebate the federal government has done before in a recession. The most important thing to note, there is no income requirement to get the benefits. That was not the case before. Those security beneficiaries had file a special tax refer return but have a certain amount of income. Nobody getting some kind of support, they were left out. These are the people who most need extra money. It is going to be harder for them. The irs issued guidance about how they are going to get money to people they dont already have in their system. The government doesnt have our direct deposit information for every individual. Experiences, irs, treasury staff, they will hustle to get this out. Anyone with a Social Security number has a claim to one of these checks. Praise i wonder as you with the government has done, what do you think about the amount, 1200 to adults, 500 for kids under 17. Enough ifing to be the pandemic lasts for months on end and doesnt come a thing of the past until the end of the summer or fall . Claudia no. Even with what we have already gone through, it is not enough. There is no piece of this package that is perfect or sufficient. Congress will have to keep fighting against this thing. There are lots of ways to do it. It is not enough for people who have already lost their job. It is something for everybody. That is important and the Research Shows it is. We need to get the economy stabilized and people cannot be as afraid and do what kind of spending they would have done anyway, pay rent, get medical care. It is a good first step. It exists. That is better than it was a week ago. Personally i would like to see multiple rounds of checks go out and have that be part of a stimulus package where Congress Says it will happen. There should be a trigger on for a lot of support for social safety, especially unemployment insurance. 30aine we only have about seconds left but is there any other program you would endorse they should do in the next round of stimulus relief . Claudia state and local governments have to get more resources. They need more money. It could come from congress or the Federal Reserve in terms of municipal bonds. Something has got to get through to help the states. They are struggling. The second thing i want to see legislation is a commitment by congress to stay the course. This we are in freefall right now. The economy recovery is going to take time especially for some people that are hit hardest. Congress has got to stay at this until the Unemployment Rate gets back towards 3. 5 we went into this with. That is what i would most stress. Romaine we will have to leave it there. Thank you. Hope you come back. Claudia sahm, from the Washington Center for equitable growth. Later on this program, Health Workers are reporting shortages of protective equipment. We will talk to the organizer of a grassroots effort in new york city to make these personal protective equipment a little more widespread, more available. This is bloomberg. Scarlet new York Health Care workers are on the front lines of the pandemic, and they are desperate for ppe. One organization is working to fill that gap. We are joined by the founder of the firm. He is an organizer with nyc makes ppe. He is a masters student at columbia university. Fantastic to speak with you, and so good to talk about something that feels good and just a pointood story at this given how everything is going. Tell us about how this effort got started. Nyc makes ppe was started two weeks ago in an online chat room by some engineers and makers that were concerned about the shortage in new york city. We have grown to 100 volunteers from various organizations including universities like columbia, cornell, and other [indiscernible] like in therkshops west village, brooklyn and in chelsea. Romaine are you delivering these to the hospitals and they deliver them to the Health Care Workers, or are you delivering this directly to the Health Care Workers themselves . Jake we are designing and , orfacturing the ppe personal protective equipment and we see that directly in the hands of Health Care Workers who need them. We have an online form on our website or people say might emergency room is running out, could you deliver something, and we try to get it to them as soon as possible. Scarlet it sounds like you are making face shields and overall that have plastic components. Have you looked into making different items or are you limiting it to face shields . Jake we started with face shields which are transparent plastic sheets but go over your face to keep articles like from coughing or sneezing to get onto the Health Care Workers face. We thought they were easiest to make and they are easy to make. They are lasting with a strap that goes on your head. We pump out a lot of these, making 500 per day. We can distribute them. We have [indiscernible] orbitnting n95 masks later parts. Those are a lot more critical. Orwant to make sure ventilator parts. Those are a lot more critical. Butre still working on it, the masks on face shields as well as facemask through our Community Network in new york city. Romaine this is great. You started this about a little less than a month ago, a couple weeks ago, march 19. What has been the pace of getting new volunteers on to this now you have gotten awareness . Start the group. I was brought on by a friend. I volunteered for four years, so i was brought on by that friend. Support has been overwhelming. I currently have a lot of emails from people throughout the city saying, i have a 3d printer at home. I work at a company that has manufacturing capacity. How can we help . Deliver them to Health Care Workers . We have gotten donations through our gofundme. The support has been amazing. People say, i have a car. I can take it up and take it to Health Care Workers for you. Everyone wants to help however they can. Makeet are you looking to facemasks if the u. S. Considers asking everyone to wear them . Jake yeah. As long as there is a design that has been approved by hospitals, we are happy to make it. Right now we are making masks you can make at home with any sewing machine. Mask thats some n95 can be done at home needed approved first. Need it approved first. Romaine so great to talk to you. Ppe, ae of nyc makes volunteer group. Lewis,up next, michael he has written about a lot of the big crises around the world. Now he is writing about the coronavirus. Rus. Governments and Health Officials are bracing to monitor and slow the spread of the coronavirus. With very little data at their fingertips. One austrian veteran may have found a way to track the operate wall street veteran may have found a way to track the outbreak. You know him from many books. He joins us by the phone from berkeley. Thank you for taking the time. You have been publishing a series of dispatches in the age of covid19. We have two of them on the bloomberg terminal. The common thing you identify is a lack of data on the virus which is stunning that we rely on data to drive so much that we care about, Optimal Results of everything from political campaigns to baseball teams to supply chains. In this case we are flying blind. How we can collect and apply the data, you spoke with the former chief risk officer of jpmorgan. Tell us what you learned from him. Jackson. Me is peter peter hancock. He had a very bright idea. Leadinghis letter, two british ent specialists published a few days ago, explaining how prevalent this odd symptom was, loss of sense of smell. It is really dramatic. You dont just sort of lose your sense of smell. You wake up one day and you cant smell and onion. They are saying it is a shocking number of cases. They have done some work with other doctors around the world, working on a paper they are about to publish. Trying to figure out what percentage of these people who got coronavirus also lose their sense of smell. Somewhere between 20 and 60 or they estimate 80 of people who lose their sense of smell have the virus. It suggested two things. You could use this as a very crude selfdiagnostic tool. If that is all that happens to you, isolate. It is a symptom that is a leading symptom. Symptoms when no other occur. The second thing was, we can harvest this as data. If we get enough people thought reporting they have lost their sense of smell Self Reporting they have lost their sense of smell. We cant get now because we dont have the testing kits. It was an interesting idea. The thing that impressed me was i talked to him the last couple of days. He is english. The day they published their letter, five or six days ago and in five or six days he has built this Organization Complete with data scientists and the website and celebrities who are going to encourage people to report their sense of smell. It offers a real it is crude but anything that better than anything we have got it is crude but better than anything we have got. You cant fight it unless you know where it is. Scarlet he is doing this as we try to search for some kind of medical solution to figure out who is sick or who has immunity to coronavirus. What is interesting is he is looking for people to help him crowd source this. Looking for influencers. Do you have any indication how much traction this has gotten . Judging from the response, it will get a lot of traction. He just treated the website yesterday. This happened in five or six days. ,mart people seem to think including the british ent specialists, this is a good idea. Especially absent the test, if we had widespread kind of universal cheap testing, you would not need this. His the United States in a month, maybe we will all have widespread. Well india ever have this . Will india ever have this . It is a cheap, free diagnostic tool, a free way to get a population wide map of the disease. A couple of things are important. Because it is an early symptom and it is often just a lone symptom, you get it with people who are otherwise asymptomatic, the exact people who are otherwise infecting people. He points out, who is getting the test . The people who are showing up really sick at triage tents outside of hospitals. Those people are already isolated. The people who are dangerous are the people who dont know they have it. This is a way to identify you might have it. Little as i say, this is being done on the fly, but he has credible people i think including the World Health Organization on board. I think it is every possibility this thing could move very quickly. So yes. Romaine i want to get your thoughts on some of the government response to the covid19 crisis, particularly here in the United States, the idea we had this black swan event. Maybe that black swan wasnt as black as people thought it was. This idea we interest we underestimated the likelihood of what we really saw coming. When you look at the government response and the way we are scrambling to protect ourselves and our Health Care Workers, what lessons do you think we might be able to draw from this so if we are confronted with Something Like this again, we will be better prepared . Bunchl there are a whole of them. One is leadership matters. We had a response kind of playbook that was there on the shelf because the Obama Administration had a scare. The Trump Administration through it in the garbage when they came the people who were the Pandemic Response people in the National Security council would have been really important in this. Obamaou needed, what the people figured out, you need some person in the white house who coordinates the response right away, early. You have various agencies trying to do various things. The cdc laming it had a test claiming a test that in the end they did not, it didnt work. They would have caught that early. Moving forward, the big thing is we are paying a huge price for the demonization of the federal government that has gone on for decades. We have had the unhappy accident of having someone as president who had it really is the principal tool for dealing with this sort of it is not a black swan event. They were tabletop exercises that were presented to the Trump Administration and they were not interested in it, about justice. Romaine i want you to expand on that. You talked about the dangers, voting for people, very distinct and does in, it could are be that catalyst. Do you think we could rethink how we value government or one of those events where maybe people we shouldnt trust the government . Michael people want to reinforce their own beliefs and it is hard to change minds. I think a young person looking at this thing whose mind is not say why is going to didnt the government do a better job . I do think the general takeaway, the society will have for this want, we need, things we government to do well. It is a naturally centralized process problem distributing equipment, managing the nationwide response, you have people in restaurants and other places where people are holed up. It is naturally centralized government function. They are not doing it because they know nobody would believe it. You have a little metaphor, example of what happens when you are, when you take the hostile attitude toward zero federal government. Scarlet we know the president is leaning on the private sector and state governors to come up with solutions, people like andrew cuomo who are driving the response effort. You think the white house could step out of the way to let states get us back on track . Is that something you envision happening . Thing, if that was one let these governors going compete with each other, resources for their Health Care Workers, it is madness. Way, get out of the out of the way of what . You need a coordinated response to this. Lets change the example. Lets say we were attacked by russia. How would you feel if the president said, i will get out of the way of this and let ivan companies and governors deal with it . There are basic functions the federal government will do better than anybody but is centralized. Centralized. This is one of them. Get out of the way of the money supply. Let the governors issue their own currency governors if you their own currency . It is governors issue their own currency . It is an abdication of responsibility. He doesnt seem to be saying now , the federal government has no role in this. A question how quickly they can get confident in an area where they had no confidence. Competence. Romaine a lot of lessons are going to be learned. We appreciate you taking time to be with us. Ichael lewis, the author moneyball, blind side, you pick a book, you probably have one of them on your shelves. Lets go over to your our new york bureau where Mark Crumpton is standing by. Mark President Trump is resisting calls to issue a national stayathome order to stem the flow of the coronavirus. This despite the administrations projections tens of thousands of americans are likely to be killed by the disease. States are increasingly pushing shutdown orders. Puerto rico close another situation another police station, the fifth one this week. That is raising concerns about the u. S. Territorys abilities to respond to the pandemic. 150 Police Officers are under quarantine has dozens of weight test results per the island has had 280 confirmed cases of coronavirus. The curfew has been in effect for a month, closing nonessential businesses in puerto rico. There are new signs a nationwide lockdown in italy could be working. Europes hardest hit countries had that is down more than 100 from the day before and the lowest number in six days. Italy has had more than 110,000 confirmed coronavirus cases. The Italian Government will keep its nationwide lockdown in place until at least april 13. The United Nations General Assembly is weighing how to respond. Members have been sent two resolutions. The most widely backed one calls for sharing information. The other sponsored by russia calls for abandoning trade wars and implementing detentionist measures. If you thee defeated if only one country objects. You the if only one country objects. Global news 24 hours a day on air and on quicktake by bloomberg, powered by more than 2700 journalists and analysts in more than 120 countries. I am Mark Crumpton. This is bloomberg. This is bloomberg. I romaine apples manufacturing partner is assuring investors 5g iphones will be ready to launch sometime this fall despite the corrupted from the covid19. Here with more is shery anh. Can you give us a break down . How hard was any fracturing hit . Manufacturing hit at the foxconn facilities . Shery it is chinas largest manufacturer and it manufactures a series of iconic brands. The outbreak disrupted the Global Supply chain. There were strict quarantine measures about the workers. Since then, they have announced new signing bonuses, trying to reachedworkers and have seasonal staffing earlier than expected. There are travel restrictions and other disruptions but they are confident they will be able to keep to the deadline at getting us of the lines running in june. How important is the 5g apple Iphone Iphone for apple and its suppliers . You like years ago now, apple was going to delay and it was tumbling in shery one of the most important in years, given there is a little bit of a step behind huawei, they started buying them last year. The fact apple can come up with an iphone that makes full use of the 5g wireless networks, it is a big promise. Foxconn runs at full capacity, Mass Assembly is only one part of the supply chain. If this involves hundreds of foxconn Investor Relations chief thinks this will happen. The assembly will begin in early june, going to catch up and mass production starting in august. Romaine is there any concern if foxconn is able to start pumping out phones, there might not be an end market to buy these . It will be presumably selling what is a minimum going to be the middle of a recession here in the u. S. Question,t is a big what happens to demand if you have the Global Economy slowing down and people not wanting to switch out to a more expensive phone. This will be an ongoing concern where users are not switching their cell phones as much or as fast as they had previously. Apple has scrapped revenue guidance for the march quarter. Even before, and a saturated market, there in a saturated market, there were questions about this decision. And for 5g, the new market, this is what is going to change the handset hands market. Apple we have seen suppliers, at least like foxconn, trying to diversify away from china, given they had already taken a hit because of the ongoing trade tensions. Foxconn has started turning out older iphones in india last year. India is now the Worlds Largest maker of smartphones after china. Thank you for giving us the latest on that story. Shery anh, one of our anchors in new york. Excludedas temporarily treasuries and deposits in its leverage rules. They will let wall street banks take on more leverage. This is a key limit on big banks, the leverage ratio will be temporarily relaxed as the lenders get significant inflows with liquidity and the treasury market eroding. Romaine also crossing the headlines, Softbank Group said to be abandoning the 3 billion deal it had with wework, including buying shares from adam neumann. The deadline is tonight. And their sources are saying the deal will not be finalized tonight. Softbank, walking away. From new york, this is bloomberg. Loomberg. Live fromroadcasting new york to our viewers, what did you miss. Nowgside scarlet fu and joining us, Joe Weisenthal. You missed the entire show. What is going on . Joe i had other things to do. Just kidding. How are you doing . What did i miss . Romaine you missed it all. We were talking about heirloom chicken, something else. Bleak,viously pretty pretty bleak start to obviously we were talking about this segment yesterday. The fact is regardless of where e, people the curv doing distancing, the headlines are going to get extremely difficult to extend over the coming weeks. Pressday we got the trump conference where he talked as many as 200,000 american deaths before this is all over. That is at least in part what is setting the tone is going to be extremely difficult. There is no imminent end inside. Talking about how there needs to be more adherence to the rules, shutting down the grounds in new york playgrounds in new york. Scarlet we only have about 30 seconds, italy, things are starting to look up. I think that is the key reminder and people will need to see some evidence that ms. Extraordinary measures that , thatne or so many people it does pay off. You see in italy one of the lowest days for depth death in quite some time. Of daily percentage count case growth. There is evidence it works, timely, difficult, people get sick and they die. This is what we have of course. Scarlet that does it. Welcome to bloomberg technology. Markets falling for a Third Straight day as investors brace for a prolonged shutdown of the u. S. Economy. President trump said it will be tough, but could it be longer . The briefing scheduled to start any minute. We will take you there momentarily as deaths