At a 10 plus number for on them limit on friday. The dow jones is down zero point 3 . The s p is positive by just a point. The nasdaq is down by four points. Very Little Movement right now, at least around these indices. The dollar index is stronger today at 100. 18, as the said continues to as the fed continues to invent ways to get money into the economy, the latest to get banks to breach their leverage ratios. What is going on in europe right now, guy . Guy as you say, the dollar is creeping up, which means the euro is going down. The euro a big component of the dxy index. The dollar regaining a bit of traction right now despite the fed efforts. European stocks down by about 0. 6 . The only sector in positive territory is the oil and gas sector, given the climb we are seeing in crude prices. Brent is up by 5 on expectation for the president that a deal can be done between the russians and the saudis. Eurodollar now with a 1. 08 handle. Down at the bottom, youve got a bit of an offer today when it comes to the german tenyear. The German Government now indicating they will see a potential 5 contraction when it comes to the German Economy this year. Vonnie lets get to Michael Mckee now, who joins us to talk about jobless claims the fed programs. Michael mckee is the International Economics and policy correspondent for bloomberg news. This is greater than any surge we have seen in history. Michael theres no comparison. Theres no way to even put it in historical context. 10 millionot about additional Unemployed People whiche had two weeks ago, implies we have gone from a 3. 5 of them limit rate to about 10 in two weeks three point 5 Unemployment Rate to about 10 in two weeks. Show up in the numbers tomorrow. Income wont drop as that would imply, but will the economy suffer . Probably, because even if you are getting the money, a lot of people will save portions. They will pay their rent and buy food, but not do a lot of the discretionary stuff over the next couple of months. Guy perversely, this number is really good news. Hear me out on this. The automatic stabilizers are taking in. States are able to process high volumes of people coming through their doors to make these claims. That means the system is working in a way that we want it to. I appreciate you got to look really hard. Actually, it is quite a good number in that at least the money is getting to the people that need it. Michael well, we certainly hope so. There are anecdotal reports that a lot of people are still trying to file and running into problems. The states didnt ever anticipate anything like this. The offset to what youre saying is that somebody has to pay those additional unappointed benefits. That is going to put a hole in state budgets and the federal budget. Hopefully the government is going to pick up most of that, the federal government, so that the state budget deficits dont get any bigger. The real question that comes out of all of this is when the virus goes away, how many of the people on unemployment now are going to have jobs to go back to . That puts the focus on the Business Assistance programs that were that congress passed. Vonnie i think the only Silver Lining i saw was the comment that this is necessary to save up to 2 million lives. That was the only positive offset i could see. Talk to us about the new fed program freeing up banks from the lending ratio shackles. Michael to put simply as possible, the leverage ratio compares your assets to your capital, and it came in after doddfrank. Treasuries are counted against that, even though they are theoretically riskfree. Now the fed is asking dealers to take on a lot more treasuries as part of repo operations and is part of these lending programs. So the fed is saying you can relax those for the next year bonds,asuries and agency not for anything else. That should enable banks to take more risks to be able to put these things on their Balance Sheets help put the fed in its transmission policy. Vonnie Michael Mckee, the fed whisperer for us, thank you. Lets check in now on the bloomberg first word news. Heres viviana hurtado. Viviana china rejecting the u. S. Intelligence community claim it hid coronavirus numbers. Five agencies concluded that beijing under reported both total cases and deaths from the disease. Chinas Foreign Ministry says u. S. Officials just want to shift the blame. Now to capitol hill, where Senate Majority leader Mitch Mcconnell would move slowly on considering a fourth stimulus bill. Senator mcconnell telling the Washington Post he would ignore efforts by nancy pelosi to get talks going. He says he is concerned about how congress would pay for another wave of spending. Spain reporting its worst day yet in the coronavirus pandemic. There were 950 fatalities in the last 24 hours. That has pushed the death toll past 10,000. Spain now has more than 110,000 confirmed cases. It is the secondmost severe outbreak in europe after italy. The price of oil surging today. China plans to start buying up oil for its strategic reserve. President trump says he thinks saudi arabia and russia will resolve their differences to ease the price war. In the first quarter, oil plunging 66 . 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. Im viviana hurtado. This is bloomberg. Much,hank you very indeed. Lets take a look at where we are with markets around the world. The buck is catching a bid. This may just be rehighlighting some of the strains within the system, and the fact that maybe the feds actions have not gone far enough. That is causing a little bit of concern in stocks today. Stocks and negative stocks in europe are negative. In the states, they are coming off earlier highs. Euro is af which the big component, is trading up by 0. 5 , back north of that 100 line, which is a big line in the sand for the market. We will carry on with the fixed income coverage in just a moment. This is bloomberg. Vonnie live from new york, im vonnie quinn, along with guy johnson in london. This is bloomberg markets. The number of americans playing for an benefits more than doubled to a second straight record, highlighting the devastating impact of the coronavirus pandemic as shutdowns widen across the country. For more on that and the treasury market, we are joined by bill odonnell, Citigroup Global markets managing director and expert on the treasury markets. Bill, the last few weeks, explain how they have change the treasury market for somebody who has been trading in this and watching it for a couple of decades now. Know, it wasou just a few short weeks ago that our treasury market was suffering from some huge dysfunction. That was before the fed announced a lot of the recent acronyms that are credit support programs, as well as their willingness to expand quantitative easing and their Balance Sheet to essentially unlimited levels. As they stepped into support the u. S. Treasury as well as the mortgagebacked securities dealer that relieved Balance Sheets, and of course, those Balance Sheets were shrinking as the biggest banks were going into quarter end. It was a perfect storm for the banks. It was a perfect storm for the treasury market area but the fed has stepped in and theyve become a shock absorber, and have definitely returned dealing conditions back to a seminormal state again, including with the actions last night to loosen some of the regulations, as one of your prior speakers mentioned. Vonnie exactly. The leveraged loan ratio that banks now dont need to meet, its been widened. More,s the fed need to do or is this just a matter of time , a waiting period until things get back to normal in the treasury market and liquidity conditions are more healthy . I think theres a lot more to do. Certainly, we have been seeing waves of secondary supply hit the treasury market. Thats come from a multitude of different sources, from deleveraging among investor entities like hedge funds that have thrown a lot of treasuries into the market, Central Banks sellingn heavily, as evidenced by the collapse in the feds own holdings, and we have also seen anecdotes and evidence of a lot of asian players, especially japan, coming into their march 31 year end, crystallizing longterm gains and a lot of their bond holdings, including treasuries, that have put new supply on the market. But then you also have to consider the primary market supply that has already started to pick up in the tbill market. We end many others expect coupon supply to start rising substantially in order to fund all of these support programs that congress and the white house have approved. That thatk significant increase in coupon supply could come as early as next month, and therefore, i think the fed will certainly have to play a role in trying to absorb a lot of that supply potentially on their Balance Sheet, either through continued qe purchases, the possibility of maybe a new operation twist if the curve starts to steepen because the backend of the curve doesnt have the same kind of support from the policy rate that the front end of the curve has, and possibly even enacting rate caps if the situation at the long end of the curve gets out of hand. If it does get out of hand, the concern of the fed would be household longterm loan rates and those for corporations will rise and potentially damage any kind of recovery in the future. Lets talk a little more about the front end of what is happening here. What we are certainly witnessing credit. Tch of shorts on a bunch of European Companies are urging the ecb to frontload its purchases of shortterm credit right now to improve the liquidity situation. Is that the gap in the market right now, the front end of the credit curve . What needs to be done to address it in the United States . Well, the fed has already taken some steps both with the money market funds, as well as commercial paper and presumably the cd market, and a sickly blown the dust off of prior and basically blown the dust off of prior crisis era programs to step in and act as a buffer for those markets to keep them functioning, at least on the private side. So the steps are there, and i think we have now started to see at least a little bit more stability in the allimportant liborois, as the market begins to anticipate the beginning of the launch of these programs and others that are hopefully going to get these private markets, especially in the front end, functioning once again. So the fed has taken aggressive reallyand now it is just down to timing. If im not mistaken, beginning next week, a lot of these programs will be launched. I wouldnt be surprised at all to see the credit markets in the front end start to function a lot better in the days and weeks ahead. Say, we are starting to see some stabilization now. Weve got the move index up on the screen, trading at 83. I think the longterm average is Something Like 65 over the last five years. Would you be selling volatility right now . Would you expect these markets to calm down even more . Does the current 83 look a little high to you . Guy yeah, and for many of the same reasons that i said at the outset. If you look at implied volatility levels, which the move index does essentially contain, implied vol levels have come off the peaks we saw roughly a week or so ago. But i think there is more downside risk, and i say that simply because what i see in our is that baseets Interest Rates were treasury rates appear to be hot in this appear to be caught in this. You have the supply i talked about hitting the market. On the other hand, you have the secondary market supply, but also primary market supply like bill issuance and coupon issuance coming down the pike. On the other hand, you have the fed and the Balance Sheets in the middle standing as a shock absorber. The outcome we for see for u. S. Base rates or treasury rates is that they are going to remain range bound, very similar to the kind of tight ranges that we have seen this week. That should act as a notable depressant on implied volatility levels, so i wouldnt be at all surprised to see indices like the move index move even further south from here. Vonnie you have said the fed has been acting as a shock absorber, and its been useful and has stabilized things to an extent. What are you worried about that is coming down the pike, potentially . Where are the corners of the market or the actors that might be in trouble . Bill ill stick to my own homework at the u. S. Treasury market. I thickets going to be very interesting to see whether the fed, with their Balance Sheet and their qe, i. E. The treasury and mbs purchases weve seen every day now, is going to be enough to absorb the primary market supply coming from the u. S. Treasury themselves. So far, the demand for bills has been off the charts, so this massive increase in bill issuance in recent days has been readily and easily absorbed. It will be very interesting once they start to list coupon supply if the feds to see , via operation twist, and potentially even via imposing rate caps, is going to be needed down the road. That is what we are going to be focused on. It is next months business at the earliest to see what treasury is going to do with coupon supply. But that is coming down the pike. These programs have to be funded. Treasury supply has to go up. It is just going to be very interesting to see what happens when that supply hits longer duration space and what the fed response to it is in order to keep base rates contained. Vonnie bill, amazing as always. Our thanks to you. That is bill odonnell, citigroup bubble markets managing director and treasury strategist. Coming up later on balance of power, we will hear from Vice President mike pence on the latest on the coronavirus pandemic. This is bloomberg. Guy from london, im guy johnson, with vonnie quinn in new york. This is bloomberg markets. Lets hand things over to kailey leinz. Kailey of course, we are coming off the worst start to a quarter ever yesterday, and today we are trying to rebound, though it is not a very firm rebound. At the moment, we are higher on three major averages in the u. S. , between 0. 6 and 0. 8 , perhaps getting a bit of a lift from crude, up more than a percent today as china looks to boost stockpiles with cheap oil. But it has been a very volatile session. We saw strength in futures trading overnight and well into this morning, but things started going the other direction when we got jobless claims data this morning. Shortly after that, all gains were erased. While we are back in the green, they have been fluctuating between gains and losses since the market open. That print was far worse than 6. 65e expected, a record Million People filing for unemployment last week, more than double the prior week, which was revised up to 3. 9 one million. Over 10ngs the total to million, showing how devastating the toll of the Coronavirus Crisis has been on the u. S. Economy. I want to go back to the move we are seeing today and oil. It is translating to some big moves for energy stocks. Energy is the best performing in the s p 500 i far today, up more than 5 overall. Energy players across the spectrum are getting a lift. That includes majors like exxon, higher by 3 , but also Services Companies like schlumberger, valero. It is really the e ps outperforming. Some rx is up by about nine rx cimarex is up by about 9 today. These are leading the s p. Vonnie kailey leinz, thank you for that. It is time for your latest Bloomberg Business flash, a look at some of the biggest business stories in the news right now. Boeing will offer voluntary buyouts to its entire staff. It is a bid to adapt to Coronavirus Crisis that could depress the Aircraft Market for years. In a note to employees, boeings Ceo David Calhoun says it is important the Company Start adjusting to its new reality. Southwest will become the second u. S. Airline to apply for federal aid. In a filing today, southwest says it is looking for possible grants that could boost liquidity and provide job security for its employees. Merrick and airlines is already said American Airlines has already said it will have to up billion in aid. Jamie dimon back to work today after heart surgery. , he is, like so many working remotely today. He underwent emergency heart surgery march 5. That is your latest Bloomberg Business flash. Still ahead, we discussed the impact of the coronavirus. Andemic Jason Gardner will join, ceo of marqeta. This is bloomberg. Nowadays you do more from home than ever before. The xfinity my account app puts you in control with Digital Tools to give you the help you need when you need it. Get fast and easy answers with personalized help 24 hours a day, 7 days a week. Change your wifi password to a phrase thats easy to remember. Even troubleshoot your services on your own. Were working to make things a little easier for everyone. Download the xfinity my account app today. York, imve from new vonnie quinn, along with johnson in london. This is bloomberg markets. The coronavirus pandemic is putting a spotlight on mobile payments as people adhere to social distancing guidelines. For more, we are joined by Jason Gardner, ceo of marqeta, unicorn with backing from Goldman Sachs paymentrs, that makes infrastructure for Companies Including instac