The dollar index is above 100. Crude is trading at 1. 30 right now. Europe, guy. Vincent lets take a look at what is happening here guy lets take a look at what is happening here. As you can see, it is down heavily on the day, but still trading at 20 a barrel. Down by 20 on the session. We are hearing the currency effect coming through. One of those is the norwegian krone. The dollar benefiting as a result. Copper trading sharply down as well. We are seeing this bleed into other parts of the commodity space, as a result of which the lead sectors down are the oil and gas sector and the mining sector. European equities down by 2. 37 at the moment. Every single sector in negative territory. Vonnie a rough day, for sure. For more on the ripple effects of the oil selloff, we are cibcd by rebecca babin, private wealth senior trader. Anticipating that it would run out of shares, waiting for the sec to issue more. What do you read from this . Should we think of it as having wider implications for the Retail Investor . Rebecca i think the take away for this is in the near term until they can register more shares. Uso is no longer entirely reflective of the underlying commodity, and will trade at a discount. The readthrough to the Retail Investor is to know going in that this is less about an underlying exposure to the commodity and more about supply and demand about the share creation issues. This obviously is a hugely negative feedback loop throughout the commodity complex, which started with the front month trading negative. We are kind of in this vicious cycle where we have one very specific event related to they develop into a contract reading through into various Retail Products that kind of continues to reverberate, but ultimately, the uso share creation should come through in a fairly short time, and we should be able to see uso trade back to its nav. Vonnie the 4. 3 billion energy etf, about 1. 6 billion of that plowed in last week, and now it is trading in negative territory. Is anybody a counterparty to this . Whos on the hook for this . Rebecca for uso exposure . Vonnie trading negatively, yeah. Rebecca i think there is still uncertainty, but i think there is speculation that the cme or clearing exchanges may be somehow on the hook for that or the etf provider. Unclear right now if the june contract were to go negative, who would be on the hook for that, but it is certainly part of the enhanced volatility we are seeing around the trading both in wti and uso today. That is a playbook that i think we are still waiting to see how that is written out. Good morning. The u. S. Rig count is half where it was a year ago. Lets talk fundamentals. In a month, where do you think u. S. Production is going to stand . Rebecca it is a great question, and i wish i knew the answer. Production coming offline unfortunately is not as fast as the headlines scroll across our bloomberg. We see the rig count falling in the headlines about E P Companies slashing capex and production, but that doesnt readthrough typically in weeks. It does tend to take somewhere in the order of months to see that. In this situation where the price action has been so devastating and violent, we may see those readthrough more quickly in the coming months, but we should not expect it to be something we see in weeks. Somes certainly uncertainty around how soon this can resolve itself, so we are really playing a timing game here of how quickly the production can come off and demand stabilize versus how quickly storage is going to fill. I think estimates for supply reductions are in the neighborhood of two to 3 Million Barrels of u. S. Supply coming off in the next two months. Again, that is a pretty wide range, and theres a lot of uncertainty around that number. Say, this is now working with a lag, so lets talk about current pricing. Ive got may at two bucks, nearly three. Ive get july 20 three dollars, august at 25. Do you think those months, particularly the further out thes, come down if some of production isnt taken off as quickly as required . Rebecca thats a great question, too. It would feel that way in the near term, but heres the underlying question. It really depends how quickly virus comes back post quarantines. We have demand really flatlining and dropping at 20 Million Barrels a day. Those numbers are clearly too high. If demand can stabilize and improve over the coming months as things reopen, those numbers are reasonable. You have to keep in mind, what we are dealing with right now is literally demand dropping 20 Million Barrels a day in our current environment. I think the forward curve is anticipating an improvement in demand, which seems rational given especially where other Asset Classes are trading, but if that doesnt come to fruition, they will be a lot of downside. Vonnie the president tweeting out about the oil market in the last few minutes. It sounded like he was open to the idea of what you might call a bailout. I presume you saw the tweet. Ive instructed the secretary of energy and secretary of treasury to formulate a plan to make Funds Available to these very Important Companies and jobs to be secure long into the future. What do you, someone in the industry, see that being . And will Congress Even allow this . Rebecca weve seen a lot of tweets and headlines from trump about the Energy Sector in the u. S. They pack a big punch when they come across, but they have not come to fruition. A lot of that has to do with congress. A lot of that has to do with the mechanisms of supply and demand within u. S. Energy markets as opposed to a fixed structure like you see in opec. Theres a lot of uncertainty of whether he can really fulfill these promises. I would say the market at this point is pretty much discounting his ability to make those deals cross the line and get the bailouts that he is speaking of. That doesnt mean its impossible. It just means he hasnt been able to deliver them yet, and time is of thely essence. The commodity market is trading in realtime, with prices trading negative. We need congressional approval. We need mechanisms, and unfortunately, it is probably going to be too late to have a real impact. Vonnie if this is the eye of the storm for this market, with the market in distress, do all companies associated with this make it to the other side given that banks are probably being pretty lenient right now . There are a variety of ways to get through this. Does that mean that everybody will survive . No, not everyone will survive unfortunately. That is part of why this has been such a difficult selloff. Theres going to be some companies, Smaller Companies that have a lot of leverage or dont have the strongest Balance Sheets, that cant weather this storm. Theres going to be continued bifurcation within the sector, where you have the haves who have the ability to Access Capital and have strong Balance Sheets really prevail and do well, and you have some that dont make it. The Silver Lining here is that hopefully, that is the transformation that the sector has needed to accomplish to be sustainable and successful in the future. Although that is really painful now, it should be the longterm solution that creates stability within the group. Guy we are going to leave it there. Think you so much for your time today. We really appreciate it, rebecca. Rebecca babin with cibc private wealth management. Lets catch up on the news you need to know about. Here with the bloomberg first word news is ritika gupta. Ritika there is speculation about the health of north koreas kim jongun. U. S. Officials got word that kim was in Critical Condition after cardiovascular surgery. The white house was said to be told that kim took a turn for the worse. He missed holiday celebrations in pyongyang. President trump says he will temporarily suspend immigration to the u. S. That came in a late night tweet. He said the move would protect the jobs of american citizens. There was no word on how long the suspension would last or who would be affected. Senate democratic leader Chuck Schumer says there is a deal on the latest emergency economic rescue package. The Trump Administration says the two sides are close. This bill could be worth up to 500 billion. The measure would add funds to the depleted Small Business aid program and provide money for overwhelmed hospitals and coronavirus testing. In italy, the government will present a plan this week to ease the rigid lockdown. Prime minister Giuseppe Conte indicates it will take time and wants to lower the risk the virus will spread again. Italy suffered the most deaths after the u. S. 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. Gupta. Ika this is bloomberg. Guy thank you very much. Weve also seen comments coming through from chesapeake onto moving dbt btp from just a useppe conte from gi moving the btp market. Up next, more on President Trumps plan to suspend immigration. This is bloomberg. Bloomberg markets this is bloomberg. Guy from london, im guy johnson, with vonnie quinn in new york. This is bloomberg markets. A lot of moving parts today this is bloomberg markets. A lot of moving parts today. Lets check in on the market with taylor riggs. Taylor weve seen Oil Prices Still hovering near zero dollars a barrel, and you are seeing some of that filter up into the equity markets. You see equities down across the board, pretty much almost 2 . 10 year bonds are catching a bid. The 10 year yield down to about 56 basis points. We havent dipped below 64 basis points on a closing basis, but it has dipped below 50 at one point on an intraday basis earlier in march, so really heavy down near the lows on the 10 year yield. I want to take a look at the Oil Futures Market because again, yesterday was a mess, as we know , with the may contracts. Those expire today, so you see them flip back into positive territory at one dollar 40 since 1. 40 a barrel. Bank of america says we could see these contracts go to zero if we dont fix the demand issue. Dennis gartman of the gartman letter also said if the june contracts collapse, clearly this is not just a may contract glitch. This is a broader macro issue. I want to take a look at some of the earnings that we are following. Ibm yesterday reported after the bell. Revenue profit was in line, but you have a new ceo taking over. Analysts like the ceo, but remain very concerned about revenue growth. Cocacola also saying volume has dropped when he percent, and nordstroms has announced dropped 25 , and nordstroms has announced they will be amending their credit. I want to take a look at some of the positives we are looking at. Netflix, we know the story. They are posting first order results after the bell. You could see subscription additions that are really big. Amazon also reporting next week. They are still hovering near record highs. Tons of online ordering. Finally, Activision Blizzard is up as everyone is home gaming. Benchmark and buy share. To 72 a vonnie President Trump saying in a tweet he plans to suspend immigration to the United States over immigration concerns. He says the moves will also protect jobs. He did not give a timeframe or specify who exactly would be affected. Lets bring in Bloomberg White house reporter josh wingrove. Can you give us any more details as to what this weed actually means . [laughter] josh how many times have i been asked that question . We dont know. In particular, it sounds like they have not decided on timeframe. National,rien, the was asked how long could this last. He said, look, we dont know because we dont know how long the virus will last. Theres mixed reaction right now among republicans, decidedly critical reaction among democrats, as to what impact this would have. As for who this would affect, we dont really know. Theres already a lot of measures in place. The Immigration Service is already restricted or closed most of their offices abroad. There are already ongoing travel restrictions to europe, china, canada, mexico as to who can come already. , thed the scenes of that immigration process has been churning along, but we dont know on what he is planning on clamping down. Throughout this pandemic, hes made a point of saying that this only reinforces the need to do the stuff we always the stuff i always said we should do like strengthen borders, so it looks like you will use this border make a. 1 way or another on immigration. The is this being driven by Health Care Officials in the white house or the economic officials in the white house . Ive read a certain amount that seem to suggest the president is concerned about the unemployment numbers, and this is a response to those figures. Is more likelyt just driven by the president himself. When trump enacted those european travel measures, the second big move he made, china came first, and about five weeks or so later came europe, at the time, the Health Officials were kind of mixed on the results of that. They said the virus is already in the states. Travel demand is starting to fall anyway. We should focus our resources on containment. But trump favors these measures, and since then, other restrictions have come into play. I dont think there is some grand push by advisors for a big medical reason to do this. Immigrating to the United States takes years. If you freeze it for a few months, we will see what happens. If you are talking about a few months, it is probably more aimed at migrants rather than legal immigration. People who are legally immigrants are probably already banking on the sticking a long time, and if it is a few months freeze, that is just added on. ,onnie another little tentacle unrelated or peripherally related, is that people married to immigrants wont be able to receive stimulus checks unless the immigrant has Social Security numbers, so it is getting very in the weeds. What about the interim stimulus deal that has been reached . What does the white house think about it . Little mixed on whether there has been a deal reached. The Top Democrats in the senate Chuck Schumer said today that they had a deal, but were still dotting is and crossing ts, but we are hearing from her publican sources that we dont necessarily have a deal quite yet. It does look like it will get a vote in the senate and the house this week, exact days to be determined. It seems like they are shooting to get the senate vote today, but i think theres some dealing that therescans unease saying there is a deal. It looks like this will add some 310 billion to the patek to the paycheck protection fund, the Small Business fund, as well as 75 billion for hospitals, a certain amount for testing, although that remains a little unclear, that kind of thing. The democrats held up the straight topping because they felt the program was not working effectively. They didnt want to just throwing more money into the program that wasnt working. Republicans have responded by saying it is Democrats Holding up aid for Small Businesses. With the oilosure and gas industry have to some of these current programs being talked about, in terms of protecting workers and businesses . The president is talking about additional help for the oil and gas sector. What is not covered under the current scheme that could be added additionally to help oil and gas . If they could do extra measures on wage for oil and gas workers. The president dropped this in the last hour of so. Youre right, they can absolutely access money from the original package, but of course, we have seen oil markets on a ride since then, so it looks like trump is asking congress to a lot some kind of extra money also, but this isnt a part of the talks ongoing now. It will prisma believe maybe get put into phase for talks it will presumably maybe get put into phase four talks. Immigration is another example. Trump tweets things. There are rarely details attached to that. We all scramble in the hours and days afterwards to try to piece it together. The right now, it is not clear what specifically he wants for the sector or workers, and it doesnt look like it will be happening now either way. Vonnie thank you for that. That is bloombergs josh wingrove. This is bloomberg. Vonnie live from new york, im vonnie quinn, along with guy johnson in london. This is bloomberg markets. A shakeup at the top of German Software giant sap. Coceo Jennifer Morgan is abruptly leaving at the end of the month. Last october, morgan was appointed to the Top Executive role, along with Christian Klein , but the pandemic caused problems with the leadership structure. Klein will become saps sole ceo. Another hurdle for ibm in its transition to cloud computing. Its forecast for the year due to the pandemic. The theyted over say that over the next year, firms will delay plans. Coming up, we will dig into the details with nick colas, data track cofounder. This is bloomberg. You doing okay . Yeah. This moving thing never gets any easier. 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