Of the mining, some of the oil and gas doing well today. Health care is the lead losing sector. We will talk about that with the devil, with the Telefonica Liberty deal. Brutalbank of england, a session being forecast. We apparently have an issue here in london with manipulating the turkish currency, according to the authorities. Local banks having interactions with a series of them. And the norwegians have cut rates down to zero. Down despiteking the krona is knocking down to 1. 96 . Earlier, Francine Lacqua speaking to bank of england governor Andrew Bailey about open it do qe for the bank of england open ended qe for the bank of england. Weve got a rapid expansion of stimulus, so we got a lot going on. We have already got a lot thats happened, and weve got quite a long way to go in terms of what weve announced. In terms of payments, we will be going until probably early july. The view we took is that although we said in the march report that we will obviously continue to support the economy consistent with inflation targets, we are going to look at the news that is going to come out over the next month or so. We may get some important nose. We are actually expecting Important News in terms of how the governments thing about lifting restrictions, and we will take that into account as with about what to do next. Weve got some time and some room in that respect, but we are very clear that we are going to keep going in terms of what we are already doing. Francine did you discuss or consider openended qe . Bailey weve made a very strong commitment. This is more and faster than the bank of england has ever done before, and we will go on assessing what needs to be done, so i dont want to overdraw that distinction. Vonnie is it something francine is it something actually dependent on the length of the amendment . Bailey it is dependent, first of all come on how the pandemic evolves. It is dependent also on how the Public Health response evolves because a key determinant of the path of the economy has been the necessary Public Health measures. So yes, it is very dependent on that. Francine so what could you do . Qe, forley more instance. We are keeping options open. Two of my colleagues on the committee voted to do more qe now. Other members of the committee thought it was a sensible decision to take in our next meeting, when we may have more information. Francine are we any closer to negative rates, or is that just not an option right now . Gov. Bailey we are not ruling anything out in terms of responses. I dont want to say we are nearer to negative rates, but we are not ruling anything out. Francine under what circumstances would we get negative rates . Gov. Bailey i think the committee has a long way to go in terms of the negative Interest Rate discussion. It is a complicated question. You have to view it, i think, in the context of the times and the financial structure we have, and what would be the consequence of it. I just want to caution we are nowhere near in that respect. Francine what is your thinking if we have a slowdown that is not a severe this year, but then we have a much worse number in 2021 . If there is a second lockdown, for example. Gov. Bailey we obviously have to reevaluate, and there would be a new scenario we would use in that sake in that case. Have an assumption that arele quite voluntarily quite cautious about the way they reengage, so there is a caution that pushes a recovery out into next year. Obviously if the whole disease evolves in a different way, we will have to come back to that. Francine is there still a risk that this crisis becomes a financial crisis . Gov. Bailey if you go back to the middle and second half of march, we were looking at very severely difficult conditions. Very disorderly markets. We and the other Central Banks had to step in. Weve all stepped in and very big ways. A lot of firepower has been brought to bear, closely coordinated between the Central Banks, and it has ahead and affect. We are still on very high alert because come i will give you the example of what happened in the oil price the other day, and the west texas price. I got home one evening to find the prices negative. You just think, how can this be . Know, yougly, as you will have talked a lot about this, there are all sorts of stories you can tell about how this is idiosyncratic, all sorts of things about cushing, oklahoma and so on. But i would just caution that yes, we can always tell stories, but to dismiss this as just an odd idiosyncrasy, i think theres always one thing i have in mind, the sort of canary in the coal mine which says actually, there are wider have,itys ahead that we and it is not because we have a particularly different story about the oil story. It is because it points to the fact that we to have fragile markets. Vonnie that was bloombergs Francine Lacqua speaking to bank of england governor Andrew Bailey. For more, we are joined now by james foley, rabobank head of fx strategy by jane foley, rabobank head of fx strategy. Will there be expanded qe next month, up from currently . All mosthink that is inevitable, and the market is expecting that. The bank of england is likely to run out or at least hit its 200 billion target in july, meaning that weve only got a couple of weeks between that time in the bank of englands next meeting on june 18 for them to do something about it, so an extension of that qe target is anticipated. How much . Will they do another 200 billion . Will they moderate it . Will they carry on making further announcements into the year as they get more data about the real economy . We hope they can slow down that rate of purchases, too. But i think it is likely in june we will see more news on quantitative easing. Vonnie has the pandemic made it easier and a sense to forecast next . S coming prior to it, the bank of england didnt know whether there was going to be inflation or deflation because of brexit related issues. Jane i suppose you can see it like that, but i think a lot of the numbers we are seeing not just at the bank of england, but for most forecasters, private and the ones in the Public Sector around the world, we are just getting ballpark numbers. Yes, the bank of england is saying the economy is likely to fall by about 14 this year, expand by 15 next year, but we all know theres very little Economic Data to bind that to right now. That puts a huge amount of uncertainty about the demandside aspect of the recession we are going to have. We know obviously that as the letdowns are lifted, activity will restart. Are workers,dent consumers going to be in countries particularly where the mortality rate has been high to get back into the shops, back into their jobs, if they dont deem it to be safe . We know the demandside of the cycle is going to run quite a long time because employment rates people are forecasting for the u. K. And beyond our extremely high. The fiscal response will hit peoples pockets, theres already early evidence that a lot of this extra money people are getting is being saved. Is the pound cheap right now . Jane that depends how you look at it. To be honest, over the next few months, i think it comes forward. This is it just because the event of an end is likely to announce more quantitative easing. Weve also got brexit back in the headlines. We know the latest round of talks happening last week. We also know the headlines that did come from them, and there werent that many, they were positive. We heard sources being reported saying that on both sides, there was confidence that there will be a deal struck between the u. K. And the eu by june. Because the u. K. Government is digging in its heels and saying they will not extend that transition phase, weve got to face the reality that there could be a return to wto rules on trade between the u. K. And the eu on jane refers next year. We will be coming up from a really deep, stark recession. Yes, the government is our announced some sort of guidelines about the tariffs could be, but surely investors are going to be concerned about ueues atperwork, about q the border, and about tariffs as well. So the concern about brexit could hit the pound in the next few months. Guy lets talk a bit about the turkish lira. We have seen the turkish indicating today that banks do not deal with a series of foreign institutions. List. K ubs was on the the turkish lira is at a record low versus the u. S. Dollar. Does it have further to go . Are we going to see new lows in place . Jane if it wasnt for the turkish authorities deliberately trying to make liquidity offshore quite difficult, i do think the fundamental suggest that the turkish lira can fall further. Basically, weve got a country here where we have seen anna norma cement of Interest Rate. You seen eight straight Interest Rate cuts of quite large magnitudes, and we have a current account deficit currency. In emergingmarket around the globe, we have seen a pullout of investment back into g10, back into the dollar. The turkish lira is very vulnerable, and those interestrate cuts are just reducing the incentive for International Investors to be in turkey. The fundamentals certainly weigh against it. There have been criticisms from International Investors that turkey needs more structural reform that has not been forthcoming. So i think be trained as quickly or come of the bottom of the list in terms of emergingmarket , and quite clearly, the government options are limited. So what it is trying to do is limit the liquidity overseas and make it more difficult to short the lira, but actually, at some point maybe it is going to be itced to let it float or let naturally find its base because that central bank is running out of fx reserves quite rapidly. Vonnie norway on the Czech Republic also surprised today. Surprise cuts from norway. They did stop short of negative rates. But than the Czech Republics cut more than anticipated, 25 basis points. How can Central Banks still be . Urprising jane it was a surprise, but neither of these reeds are completely out of the blue. We know that norway has been deeply hurt by the oil price shock. And yes, it is different from other economies in that it does have that huge Sovereign Wealth Fund that it can dip into and really boost its fiscal spending , but it is an oilbased economy. It has been hurt by that. The outlook for the economy is rapidly deteriorating because of the oil price. It was not what the market expected, but i dont think that this was totally out of the blue for norway. Jane, always appreciate it. Thank you very much, indeed. James foley, rabobank head of fx strategy ash jane foley, rabobank head of fx strategy james foley, rabobank head of foley,e foley jane rep. Banks head of fx strategy. Strategy. K head of fx this is bloomberg. Guy from london, im guy johnson, with vonnie quinn in new york. This is bloomberg markets. Lets see whats happening in the markets around the world. Here with the details, kailey leinz. Kailey we are off the highs of the session in the u. S. , but the three major averages still higher by 1 or more. Gains in europe he is in europe as well, and even crude getting a bid. The market really turning towards that report tomorrow and some optimism about the u. S. And china, and negotiators talking as soon as next week. I want to focus on the nasdaq because with the gains today, it slipped into positive territory on the year. Now marginally off that, but this index has rallied about 30 since march. Big tech and biotech really leading the way with strong earnings. A lot of optimism in the health care space. As for some stocks moving higher today, a bunch of the moving higher by double digits on earnings. Among them, tell it on among them, peloton. Viacom benefiting from more streaming with 50 more users. Twilio is up 37 , at a record high. Paypal as well forecasting a strong Second Quarter. Finally, just a check on the commodity complex, youre seeing a nice rebound there. You have gold near 1700 announce. Copper up by about 1 . Even cotton getting a nice bid, up about 2. 5 . One final note on volatility, continues to come back down, now 31wo month low, looking at a handle. Vonnie top trade negotiators will speak as early as next week on a phase one deal. This comes as President Trump threatened to terminate the agreement if beijing doesnt stick to the terms for more, we are joined by Kevin Cirilli. It is a bit that we are back to talking about a phase one deal, particularly out of the amount particularly after the amount hurledoric that has been regarding the coronavirus. Kevin policy on a collision course. The administration remembers precovid19 era in which beijing was targeting agricultural space in order to use leverage from chinas against the trumpet ministration. The president the trump administration. Administration pushing back against beijing, saying they had promised to purchase a large amount of Agricultural Products from americas heartland. , the state department, the Intelligence Community on both sides of the aisle coming out of congress, raising concerns about what china new and when they knew it, and whether or not they were transparent about what they knew as it relates to covid19. Secretary of state mike pompeo speaking out forcefully in very clear terms within the last 24 hours, raising those questions. Andakers, republicans democrats alike, also asking those questions in congress as well. Guy how will the democrats react if we get a positive conversation going between beijing and washington, d. C. Right now . Im assuming that is just ammunition. Kevin you are absolutely correct. The democrats are saying that, especially former Vice President joe biden, who chaired Senate ForeignRelations Committee when he was a senator from delaware, they said that in order to reset the relationship with the United States has with china, they are going to need europe. I think what youre going to hear more coming from democrats over the next couple of months ofthis standing in the world the United States has, and how it needs its allies in order to reset that relationship. But this is a technological story as it relates to 5g. This is a Higher Education story, and yes, a big pharmaceutical story as well in terms of Global Supply chains and where the supply chains are bothsk, both in china in america and in europe as a result of china. Democrats behind the scenes right now still figuring out how the Biden Campaign is going to announce their china vision, but when we get it, we will report it. Vonnie at the same time, we are also seeing the restarting of and britainurope have started as well, talking about 30 teams yesterday in place to hash out some kind of british u. S. Trade deal. Does the administration have the capacity for all of these to be running at the same time . Kevin theres no doubt the president has preferred bilateral trade talks over multilateral approaches. Era,er, in this pandemic there are many republicans, including republicans from agricultural states, that i have spoken with who are saying right now, we have to focus on getting the economy reopened, getting it up and running, and that they are going to need european support to do so. Lets also not forget that china has made inroads in africa and latin america, and to some extent south america as well area so i think that all of that right now, as we are in the middle of this fog of the pandemic, all of that is being discussed and we just dont know precisely whether or not there is going to be a congressional vehicle before election day relating to national security, whether or not there is going to be a congressional vehicle ,elating to International Trade and whether or not President Trump a congressional vehicle on International Trade because he has really bypassed congress in terms of negotiating with china, but to your point precisely with the u. S. And european trade, it is at an unknown right now, especially when lawmakers and their staffers are having to opposed tol zooms as being able to go into the back rooms. Vonnie kevin, thank you. That is bloombergs Kevin Cirilli in washington, d. C. Coming up later today, we will hear from House Speaker nancy policy. Step nancy pelosi. Still ahead this hour, we will be speaking with jim fish, the head of Waste Company wiest management. We will talk about Company Waste management. We will talk about how the pandemic is affecting the business and employees. This is bloomberg. This is bloomberg. Vonnie it is time for your latest Bloomberg Business flash. Neiman marcus has started voluntary chapter 11 bankruptcy proceedings. The company says it expects to emerge from the process in the early fall. It has secured a 675 million and exitssession loan financing. It says that chapter 11 wont impact the timings of story openings, nor affect its my theresa brand. This is bloomberg. Staying connected your way is easier than ever. Youre just a tap away from personalized support on xfinity. Com. Get faster internet speeds with a click. Order xfi pods to your home in a snap. Or change your Xfinity Services with just a touch. All in one place. Youre only seconds away from all of that on xfinity. Com. 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