Transcripts For BLOOMBERG Bloomberg Markets Balance Of Power 20240713

Also spreading around the world. The who saying it is not a pandemic but saying it is deeply worrying. Before we came on air i was looking at the definition of an epidemic and a pandemic. An epidemic affects a few regions, but a pandemic is something which goes global. We have cases in italy, cases in iran, kuwait, over 12 dead in iran. Is it a pandemic . It seems to fulfill that particular criteria or definition. David what is the risk posed to beijing . They postpone the congress and language coming out of the Conference Call that was held by president xi suggests he is concerned about beijing. 170,000 people on the Conference Call, and some of the details coming out. The fear is does president xi jinping consolidate power . This is a question being asked by a lot of people. People have already seen him grab power with reducing his second term. He has unlimited terms. On. Nt to get what is going we have just gone 1 00 in the morning. There is an airy calm. When we look at what is going on with the financial markets, the biggest fall for european markets since 2016. It is almost as though it has just got real. David very well said. Terrific reporting from hong kong. Thank you very much. 1 00 in the morning your time. Now lets go to milan. What are the concerns affecting the markets is the spread to northern italy which is so terribly important to the italian economy. Explain to us what the Italian Government is doing in northern italy. Good afternoon from milan. The government here, particularly the regional governments are taking a two strand approach to the issue. There are number of towns to the city of here around the that are virtually locked down. Some 52,000 people who live in that area are not able to leave and people are not able to get in. Nonessential services have come to a halt in that area and there is a Law Enforcement presence enforcing the cordon around that area. And the rest of northern italy, communities have taken measures such as canceling sporting events, canceling cultural events, moving to close bars and restaurants after a certain hour. The approach of the governments across italy has been to limit contact between people as much possible. David what does it mean for the Free Movement of goods within the European Union . Maybe we see some borders close. Jerrold i certainly hope not. There has not been any indication of that happening yet, but there have been some cases, some isolated cases of authorities in other countries, austria, france, taking action to stop individual crossing be shirt infected people are not on board. There is not been any word on largescale border closures or anything of that nature. David thank you so much for reporting from milan. That is our colleague gerald colton. Now we go to washington with tom orlik who will give us a perspective more globally. What do economists think we know at this point . Tom at this point we are still dealing with a significant amount of uncertainty. There are a couple of points i would make. Blow tot is a severe chinas First Quarter gdp growth now appears a virtual certainty. It is also striking if you look at the forecast coming in from the street, they are coming down and down. At the end of january, people were talking about 4. 5 year on year growth in the First Quarter for china. That would already be a record low. It would be zero growth in sequential quarter on quarter terms. If you look at the latest numbers, they are pointing to growth in the 2 to 3 range in the First Quarter, even lower than people were thinking a few weeks ago, and pointing to a random 2 contraction measured in sequential terms. The second point i would make is that until a few days ago, i think economists were thinking about a blow to china and then spillovers from chinese demand and stalled chinese supply chains for the rest of the world. As youve heard from some of our colleagues in hong kong and italy, there is significant concern about outbreaks in other countries. Outbreaks in italy, outbreaks in korea, and what that means, if that happens, and we hope it does not, is that the rest of the world is not just going to suffer from weakness in china. They will also suffer as their own factories get closed down. David one of the problems is im not sure we have a model. We have a more globalized world than we have ever had. We do not know what this does to supply chains because we are more interdependent than any time in history. Tom that is completely right. If you go back to 2003, when we had the sars outbreak, china was around 5 of exports of Global Manufacturing inputs, the components which factories around the world need to finish their products. 2020, as we face this coronavirus outbreak, china accounts for 20 of Global Exports of manufacturing components. Aere is a risk of a virus in particular place, especially in china, having the severe global impacts. Much more significant now than it was 20 years ago. I think you put it well. This is a litmus test for the capacity of a Global Economy to show resilience in the face of this kind about break. David thank you so much for reporting. That is tom orlik reporting from washington. Now it is time for a check on the markets. I do not have to ask the effect of what we are talking about on the markets. Abigial we are looking at a brutal selloff. Stocks looking for their first date their worst day since december of 2018. That is the degree of the selling pressure. The best day for bonds on back to june of 2016. That was the brexit haven bid. That is the degree of haven buying we are seeing. All of this as investors are saying to themselves, this is not sars. A week or two ago folks were betting on the idea this would go away quickly. It is not known. We do not know what the impact will be on the Global Economy. Will it extend beyond a quarter or two . David this is different from december of 2018. That time we were not sure what was causing it. This time we know what is causing it but we do not know when it ends. Abigial it is infinite and the possibility for tragedy because doctors do not know how it is being spread. If it continues to spread and continues to force various companies to shut down manufacturing, it will continue to eat into the corporate profit outlook. At the end of the day, that is what stocks trade after. On the trade war, we have lots of headline volatility. That never affected the corporate profit outlook. In this case, we could see the corporate profit outlook hit in a significant way. In that case, stocks should come back to earth. Much more of a saint evaluation. There is been so much fear of missing out. A lot of these indexes are so far above their moving averages. The faang index has been 3 above its 200 day moving averages, telling you how far overextended. That was on falling momentum, which tells you there will be a crashed similar to what we are seeing today. David we will keep you apprised of the market as it develops. In the meantime we will turn to Mark Crumpton for bloomberg first word news. Mark former movie mogul Harvey Weinstein has been convicted of rape. A jury found weinstein guilty of rape and criminal sexual act, but acquitted him on the most serious charge of predatory Sexual Assault. On friday jurors signaled they were having trouble reaching a verdict on that charge. Weinstein still faces Sexual Assault charge assault charts in los angeles. Like millions of tourists who come to india, President Trump and his wife visited the taj mahal. He called the 17thcentury white marble mausoleum truly incredible. The president began his trip by saying the u. S. Would sign military deals with india work 3 billion. He spoke in a cricket stadium filled with about 100,000 people. The white house is getting ready to respond to an urgent budget request to address the deadly coronavirus outbreak. The department of health and Human Services has tapped into an emergency Infectious Disease Rapid Response fund, and is seeking to transport more than 130 million from other hss accounts to combat the virus. A white house official says a response could come this week. In germany, Police Say Dozens of people are injured, several seriously, after a car slammed into a crowd at a carnival parade. The driver was arrested and German Police say they believe he deliberately rammed his vehicle into the procession. It happened 175 miles southwest of berlin. Global news 24 hours a day, on air and on quicktake by bloomberg, powered by more than 2700 journalists and analysts in over 120 countries. I am Mark Crumpton. This is bloomberg. David . David coming up, nevada is in the rearview mirror. South carolina is looming. We talk with our Political Panel about Bernie Sanders on a roll. This is balance of power on Bloomberg Television and radio. In nevada we have put together a multigenerational, multi Racial Coalition which will not only win in nevada, it will sweep this country. David this is balance of power. Underestimated the size of a Bernie Sanders victory in nevada. We welcome Emily Wilkinson with what we learned in nevada. What did we learn . Emily Bernie Sanders was far and away the winner. Sanders come in strong, setting him up for a strong showing in South Carolina and super tuesday. David we will talk about South Carolina and super tuesday in a minute. Pause on the latino vote. Somethingdemonstrate about Bernie Sanders ability to reach out to latinos . Absolutely. You hear democrats talk about being a big tent. Talk about the need to make sure they are not only getting white voters but black voters, latino voters. Here you saw sanders do very well with latinos. A lot of people are looking forward to South Carolina to see how he does with black voters. Was is a demographic that very strongly in favor of joe biden initially. Recent polls shows his lead is slipping. David many thanks to Emily Wilkins of Bloomberg Government from washington. We turn now from the nevadas to the South Carolina future. With our Political Panel of james dickey, chairman of the Texas Republican Party coming to us from austin, and here new york, our bloomberg political contributor she needs a note. Zaino. Nne there was a time we thought joe biden had a prohibitive lead in South Carolina. If Bernie Sanders can winner take a strong second, is he stoppable . Strong if he even gets a second in South Carolina, that gives him so much momentum for three days later as we into super tuesday. We are focusing a lot on the debate tomorrow night in james clyburns endorsement on wednesday. But as we saw in nevada, those endorsements mean less and less on the ground. The polymeric union was not endorsing, yet the latino vote the polymeric the Culinary Union was not endorsing, yet the latino vote came after Bernie Sanders. You see him putting resources on the ground in South Carolina where he did terribly and 2016, but may have a strong showing in this primary. David there been times it sounded like the president is rooting for Bernie Sanders to be his opponent. Are you rooting for Bernie Sanders . James i have talked with the president s campaign and folks at the rnc. We have been universal that it does not matter, sadly, which of the socialist policy advancing candidates the democrats put forward. As you look on the debate stage, there is not an inch of difference between them. Bernie would save us that because he admits he is a socialist and he credits terrible failed socialist and communist countries and he praises them. That would save as a step. I think the Democratic Party as well on their way to burning themselves down. David i have to pause. You believe there is no different between the moderate positions of some of the Democratic Candidates and what Bernie Sanders is saying . You do not think there is any difference in Medicare Fraud and an enhanced and Affordable Care act . Democraticy single candidate for president has admitted they are willing to repeal and replace obamacare. They are admitting that the last giant Government Program they put forward was a complete and total failure for average americans. Theinor different minor differences in what theyre proposing is a replacement, but everyone is proposing repealing and replacing with a another baker government handbook. David i would like your thoughts. That Program James says was such a failure was the basis for them to win the house representatives in 2018, as i recall. Jeanne absolutely. If theyre able to hold the house and make any gains in the senate, it will be based on that. I would suggest that if you look at the democrats position, they do not want to repeal and replace. They have been a clear they want make itthe act and better or enhance it if they are in the moderate lane. If they are in the Bernie Sanders or Elizabeth Warren lane, i think there is a big difference between the moderates and the progressive, and it is about 50 trillion. There are huge differences among democrats on health care. What they all agree on is they want everybody to be covered, either through obamacare or through medicare for all. David i want to take up one pole with you that says Bernie Sanders would do the best against President Trump and the state of kansas. He would lose by two points, but would do the best of any Democratic Candidates. Does that square with how you understand the texas voting public . James absolutely not. What we are seeing on the ground is a ton of excitement on the republican side, not on the democrat side. There are hard numbers to back that up. Democrats can only get 1400 candidates in the entire state of texas. We on the republican side have 3106 candidates in our primary across the state. In early voting, even though the democrats are the one with the highprofile president ial race, even though Bernie Sanders and a bunch of others have been here and work your, we are seeing more votes on the republican on the democratic side. We saw this in fort bend county, in House District 28 just last month. The democrats were all over the almost all of the president ial candidates were there fighting for the democratic candidate. We took an eight point suburban win in 2018 when entered into a 16 point pounding last month. David it sounds like he is confident about the state of texas. Where you think texas is . Jeanne i think texas is still a red state and it will be a red state. We have seen some advances with beto orourke or others. Moving is the operative word. I do not think it is there yet. This is a race that will be decided in states like your home state of michigan, wisconsin, pennsylvania, florida, ohio. When you look there, that is why the establishment democrats are scared of Bernie Sanders. They fear a democratic socialist agenda will not play well on the states that matters. That is what we heard jim clyburn saying on all of the sunday shows. This is a concern of the establishment. Democrats will have to battle it out the next few weeks. David the next 10 days. Many thanks to genies a note and james dickey to jeanne zaino and james dickey. Still ahead, we are keeping an eye on u. S. Markets. Stocks down more than 3 across the board. This is balance of power on Bloomberg Television and radio. David this is balance of power on Bloomberg Television and radio. I am david westin. U. S. Stocks are sinking today amid mounting fears about the coronavirus. Kailey leinz is here with more. This is a red day. Kailey it is a severely red day. All three major averages down more than 3 . For the nasdaq we are down nearly 4 . This is the worst day for the majors since 2018. A lot of conviction behind the selling. Above average volume. Usually so far in 2020 days we were down, volume was higher. That is not the case today. You see how risk off the tone is when you look outside equities, the 10 year down 10 basis points. We are at 1. 35. Just a few basis away from a record low. You are seeing that safe haven play out in gold as well. Futures up 1. 7. We are nearing 1700 an ounce on gold. Just a few weeks ago we were at 1500. This is a swift and vicious flood out of equities and into safe havens. David it does not look like anyone is buying any dips. Tells about Health Care Insurance that has been hit . Kailey you are seeing the usual suspects like travel stocks, but the secondworst performer is 17. You are also seeing anthem and signal lower. This is about Bernie Sanders winning in nevada. The market was maybe underpricing the rest Bernie Sanders is to the market. One analyst wrote in a note that he is not only signifying his position, he could be a bigger threat to President Trump than the market anticipates. That is threatening because bernie is an advocate for medicare for all. David people say look at Bernie Sanders, maybe he would be a stronger opponent to President Trump than we would give him credit for. Kailey he wanted in nevada, showing he can build a more Diverse Coalition than previously thought. David we will keep coming back to the markets throughout this hour. Next, President Trump National Security advisor denies intelligence points to the russians trying to help President Trump in 2020 but more points to the possibility they may try to help Bernie Sanders. We talk to an intelligent expert. That is next on bloomberg. David from new york, this is balance of power on Bloomberg Television and radio. Im david westin. For bloomberg first word news, we go to Mark Crumpton. Harvey weinstein will remain behind bars until his sentencing on march 11 david after a new york jury found the former movie mogul guilty of rape today, the george ordered weinstein be immediately sent to jail. He was handcuffed and led away by court officers. A jury convicted widescreen rape and sexual act but acquitted him of the most serious charge of predatory Sexual Assault. The Supreme Court has agreed to hear a major religious rights case. The court will hear about a philadelphia Catholic Agency that will not place kids with samesex couples. Philadelphia could enforce a city by city antidiscrimination law by regarding those groups to work with samesex couples. Catholic social services has been threatened, the future of catholic agencies around the country. The 2020 president ial election is still more than eight months away but Vice President pence is already laying the groundwork for a 2024 run. The Vice President has his own Political Action committee and has also been steadily expanding his travel as a surrogate for the president with a focus on michigan, wisconsin, and pennsylvania. The u. S. Government began outlining its a tradition case against Julian Assange in a london court today, saying he is a criminal who put lives at risk. Officials want to try him on espionage charges over the 2010 publication of hundreds of thousands of secret military documents. Sange argues that he was acting as a journalist. Hundreds of his supporters gathered outside the courthouse. Global news 24 hours a day, onair, and on quicktake by bloomberg, powered by more than 2700 journalists and analysts in over 120 countries. Im Mark Crumpton. This is bloomberg. David thank you. Are they or arent they . U. S. Y, reports that Intelligence Officers briefed members of congress that the russians were trying to interfere in the 2020 elections, supporting birth bernie both Bernie Sanders and President Trump. But the National Security advisor Robert Obrien says ecs no evidence of Russian Support for the president. I have not seen any intelligence that russia is doing anything to attempt to get President Trump reelected. Welcome now an expert on election security, jameel jaffer, from Day University of george mason. Welcome back. That mr. Obrien is right and that the brief is right, in that there was not specific intelligence that the russians were not doing this to buttrump are reelected, there is evidence that they are interfering, and there is evidence that they are interfering, and generally they like President Trump . Jameel it is exactly right that we know the russians have been interfering in our election since the last cycle. They are interested in causing discord in the american body politic. On top of that, but we have heard in a new reports is they think President Trump is somebody they can work with, is approachable to them. We also see what is happening that senator sanders. What is clear is the russians are supporting both sides, trying to create a problem within our system, undermine the validity of our elections, the trust in our law and institutions. David you and i have talked before, there are two sources of election security, what is tampering with the election process, how the votes are reported, and the communication around elector process. This information, for example. Jameel that is right. Those categories of election interference. What we are seeing primarily is what we have seen previously, the idea of them getting into the conversation, manipulating the conversation so there is a debate within the american body politic about the legitimacy of them and the like. They can create additional down by affecting the actual votes. But they recognize if they do that, that will be viewed not as an act of war, but as a serious matter, and we would be forced to take action. Although we need to protect against that. Its important that the federal and state governments Work Together to collectively defend against this threat from an outside power, russia. Isid if the bigger threat simply interfering with information, being given to potential voters, what can be done about that . We need topart what do is spread positive information and correct information. Somebody once said the best antidote for bad speech is more speech. That is an important part of the conversation, correct what is being said. The media plays a part in that. Right now today we are harping in one another, but it is important that we come together as a nation, recognize the russians are coming after us, and then defend these elections collectively against the threat from outside. David how much of this is social media . Jameel a lot of it is. People get into these groups where they are focused on their own area of the world, and they get that theory validated over and over again and they spiral down. We need to elevate the conversation. Why the candidates are partly responsible for that. They need to elevate the conversation and have a conversation about the issues, not about who did what, to whom. David do you see anybody taking a leadership role in a way that you think makes sense, based on your expertise . Some good have seen work in the senate, the Senate Intelligence committee in particular. We have seen the leaders of the committee Work Together to identify the threats of the United States. The housep side, intelligence committee, there has been a lot more challenge between congressman schiff and congressman nunes. There is a debate about the validity of the elections but we need to say, there is a threat coming from the outside, federal government needs to work with the internet industry to identify misinformation and allow them to take action. Ultimately, we need to come together as a nation and say there is a debate about politics. What it is not about is whether the russians are manipulating our elections. They are and we need to stop it. David we saw Mark Zuckerberg talk about more regulation even for his own company to reestablish trust on the side of users. Issaid defined what political speech and what is not. Is that something the government should do . Wrestled withe what free speech means in the constitution for the better part of 200 years. Zuckerberg to mr. Say that with facebook having a dominant position. That being said, there is a role for government to play a role collaboratively to say that these messages are not legitimate. These are messages being brought from abroad. Take action against them. At the same time, you have to be careful that you dont get in the business of regulating speech. The dirtd of the day, is more speech, not less. David is it feasible to have a federal requirement that says you must disclose the source of the speech . Or if you cannot identify it, you can flag it and say, i dont know where it came from. Is some level of knowledge about where this stuff is coming from. The government has a lot of that knowledge. Unlike the private sector, the government overseas these areas. If they could take the classified information, share it in real time to better defend against hacking or social media threats, that would be good. The Tech Department of Homeland Security is working on those efforts. With the threat of our election, we need to do more now to defend against the threat from cyberspace. David thank you so much to jameel jaffer. Coming to us from san francisco. Coming up, more on the democratic race for president with the former Campaign Manager for president obama. And of course, we are watching the markets. Stocks are plunging on fears of the coronavirus. This is balance of power on Bloomberg Television and radio. Dio. David this is balance of power on Bloomberg Television and radio. Im david westin. Keep our eyes on the markets because the equity markets are really selling off in the United States following a european selloff. All the indices are down more than 3 . In the meantime, as we look at bonds, the 10year u. S. Bond is really gaining, down 11 basis points. 1. 36 on the 10year. Gold approaching 1700. The dollar slightly weaker. N has slightly weakened. We will keep watching those markets carefully to what the hour because they are clearly moving. In the meantime, lets come back to the democratic race for president. Leade sanders added to his with his rebounding victory in the bed on saturday. If the polls are any indication, he has the momentum going into South Carolina and super tuesday. For some perspective, we welcome jim messina, manager for president obamas 2012 reelection campaign. Thank you so much for joining us. You have said you think Bernie Sanders could be the worst candidate to go up against donald trump. Do you still feel that way, and if so why . Jim his election vulnerabilities are difficult for him. He has proposed massive tax increases on health insurance, wants to get rid of obamacare, which provides a lot of swing voters protections which they care about. I have not said that he cannot win, but of the main candidates, he has the biggest struggle. David can he be stopped . What does he need to do in South Carolina . Ae biden looked like prohibitive favorite in the polls until recently but it now looks like Bernie Sanders is gaining on him. Jim i think we have to pump the brakes on this journey has this sewn up thing. Only 3 of delegates so far. We will know much more about the race after super tuesday. Sanders can, bernie be joe biden in South Carolina. South carolina has always said that that state is his firewall. His africanamerican support coupled with older voters has always made him the favorite. If Bernie Sanders can pull up the upset there, that would be a difficult moment for the Vice President , and it would have people look at other candidates if you are in the antibernie lane. Ive always been told that you cannot beat somebody with nobody in politics. If not joe biden, who can stop Bernie Sanders, if that is the goal . Jim goal . Jim then you would look to michael bloomberg, perhaps to Elizabeth Warren. I think those are the only candidates that can put it together right now. The other candidates are beginning to struggle. If you are antibernie, you have to get these other candidates out of the race. You have too many candidates splitting the vote. You saw that in nevada clearly with the Vice President doing well, amy klobuchar, tom steyer, mayor pete, all these guys are te,itting the antibernie vo while bernie is racking up these winds his third is solid, and everyone else is splitting up the votes. Michael bloomberg is the majority owner of bloomberg lp, our parent company. By most views, he didnt have a strong outing in that debate. Another one tomorrow night. What does he have to do if he wants to be the alternative to Bernie Sanders . Jim unlike the last debate which was all about michael bloomberg, this will be about Bernie Sanders. Bloomberg has to have some better answers for the fairly obvious questions he will get on obvious issues like women, stop and frisk. These other candidates have done nine other debates. Bloomberg just is to have a steady debate where he lays out his vision of, one, his record as mayor of new york. And two, that he is a candidate that can be donald trump. If you can stick to that and not be on defense, he will have a better moment. People forget that in the super tuesday states, which we are two weeks away from, he is drastically outspending everyone. He just needs to right the ship a little bit, have a good debate. One bad debate does not kill your candidacy. As you remember in 2012, obama had the worst first debate and political history, and then went on to beat mitt romney handily in the election. People need to watch bloomberg. Bloomberg, ior would take the fight to bernie a little bit tomorrow night. David the critical question is perhaps if someone will drop out. Any indication that any of the alternatives in the moderate lane are inclined to drop out . Steyerdont see how tom stays in the race very long. Hes been dramatic amounts of money in nevada and got almost nothing for it. He spent a bunch of money in South Carolina. We will see what that does for him. If he cannot move in South Carolina, i think you would be the first of the out of the race. David is there an argument for Bernie Sanders . Passion, is real something of a celebrity. He has an operation, bernie bros. He may be the alternative to donald trump. A lot of those attributes are ones that you could say about President Trump. Jim that thing about Bernie Sanders is he can expand the electorate, get people excited about politics, people that feel disenfranchised by the process. Get them to vote in an election where they would not normally vote. Bring real newim voters into the process. He did much better against Hillary Clinton than anyone assumed he would. When you have seen so far is less of a turn of the people expected in the early states. Less voters coming and being xcited by senator sanders candidacy than his supporters would have expected. Still has a third of the Democratic Party showing up at all of these things, getting about 40 , and in that is enough to win these states. But so far we have not seen him expand the electorate in a way that he will need to to win in november. David i wonder if you are surprised by those turnout numbers . Some people were saying it is not so much that we would be so enthusiastic for somebody, we are enthusiastic against someone, the president of the United States. Maybe we should revisit that assumption . Jim its interesting, in the 2019 governor elections in kentucky and louisiana, you had the highest turnout that both parties had had in over 50 years. Before, we talked about the highest midterm turnout in 102 years. You are not seeing that in the democratic primary. I think couple reasons for it. But it does make people think about, could Bernie Sanders really expand the electorate in the way he is claiming . So far we have not seen it. David we have not seen it from anybody else, either, have we . Jim New Hampshire was better than 2016, approaching 2008. Were notnevada numbers a big explosion in turnout. Better numbers will be super tuesday, where you have 40 of voters. That is a national primary. I think we will have a better judge of that after super tuesday. David always a treat to have you with us. Former White House Deputy chief of staff, jim messina. Stocks on pace for their worst day in more than two years. Coronavirus are suddenly gripping wall street. This is balance of power on Bloomberg Television and radio. David this is balance of power on Bloomberg Television and radio. Im david westin. Todaytocks are plunging alongside markets in europe and asia as the coronavirus continues to spread more widely outside china. For more lets bring in abigail doolittle. Emma from the last time we from the abigail last time we spoke half an hour ago, stocks have made new lows, the worst since 2018. Sellers are not relenting at all as this fear grips the market that this coronavirus could really dent the Global Economy, economic growth, and perhaps will extend beyond a quarter or two. Perhaps we will see more Companies Like apple having to revise their views down. Time was a long printer of where folks were comparing it to sars, thinking it was somewhat contained. As you said earlier in the hour, theres a lot of uncertainty here. David we have talked about why the markets are doing so well when we dont know. It started with asia but then europe really got hit on the equities. This is a continuation of what we have watched over the last 24 hours. Abigail one of the market experts that we talk to frequently talks about the global relay race. It always starts in asia. Asia was next. The korea index was down nearly 4 , the worst day since 2018. The virus is really spreading in korea, causing a large quarantine there. Europe,s has spread to down 4 , the worst day since 2018. Bonds in the u. S. On pace for eir best day since 2018. David as you suggest, whether or europe,e kospi there could be a double effect here. A servant for trade. They also have coronavirus in korea. In europe, you are worried about what that does, problems with the european economy, but they havent in north italy. It is hard to determine what is a direct affect and what is happening in the markets. Abigail when, if it comes to the u. S. For the most part its been isolated. The idea that it is concentrated in asia, there is some doubt in the middle east and europe. If it were to come to the u. S. , there could be a greater issue in terms of the effect. Last friday we had that weak market pmi, the worst since 2013. It is clear there is already an effect here. If this tragedy were to spread here, it could hit the corporate profit outlook even more. That is probably a worry that some investors are reckoning with today. David obviously, oil is getting killed. Financials, you mentioned the 10year. Fangs, the tech sector, getting hit hard. If you look at some of the month that could be leading on the upside, they are getting hit the hardest. Abigail it is brutal in terms of selling. You often talk about traders say when the music stops, will you have a chair . Its a rush for the exit that we are seeing, with traders and sellers selling indiscriminately. On theall of that red screen. Something else worth looking at. We have been tracking all the Asset Classes is the beginning of the coronavirus. Risk assets did poorly, including oil, copper, dow transports, shanghai composite. However, a week before, the s p 500 was being bonds. That is the degree of blinders that investors had on, not factoring that is can play in. ,he s p 500 down about 2 actually worse than the shanghai composite, which is hard to explain. Maybe the fear that we have not seen the worst yet here in the u. S. Our job tomorrow, richard clarida, who will be speaking. People will be looking to the fed to see if there is anything they can do. Abigail when you spoke to him not long ago, he said if this extends beyond a quarter or two, it could affect policy. David thank you. Coming up, balance of power continues on bloomberg radio. More coverage of the virus selloff. And the interview with the head of the port of los angeles. We will find out how the virus is affecting shipments that his port in los angeles. This is balance of power on Bloomberg Television and radio. Mark im Mark Crumpton with bloomberg first word news. President trump began a 36our trip to india with talks about billions in weapons deals. 100,000ated crowd of hurt him speak alongside the Prime Minister. Mr. Trump says the u. S. Will sign military deals with india worth more than 3 billion. Israeli Prime Minister Benjamin Netanyahu is banking on President Trumps middle east plan to bring in the votes of the countrys west bank settlers. But he has doubled over his promises to quickly carry out annexation of west bank settlements. Israel heads to the polls for the third time in less than a year next monday. In the previous two rounds, neither netanyahu or challenger benny gantz was able to secure a 61 parliamentary majority. The white house is getting ready to respond to a budget request to address the down the coronavirus outbreak. The department of health and Human Services has already tapped into an emergency Infectious Disease Rapid Response fund and is seeking to transfer more than 130 million from other hhs accounts to combat the