Meeting to tackle the threat today. Nejra an emergency and shock move from the fed. Not just rate cuts but also 700 billion of asset purchases. The markets say its not enough. Take a look at the 10 year yields. We dropped as much as 30 basis points, down 27 right now on a 67 handle. Yields dropping across the curve and we are seeing flattening. The markets not responding well from what we have seen from powell. Dollar weakness. Morgan stanley saying markets are bottoming out so it is time to sell. You want to short the greenback versus the euro, the aussie, and the loonie. We are in the final part of a severe bear market. The bear market inequities that has been continuing in the asian session, a lot of red on the screen including japan. It is a lack of faith in centralbank ammunition. Have seen a lot of action throughout the night. The boj stopping short of a rate cut by talking about more stimulus in terms of etf purchases and a rate cut from the rbnz. Attention turns to the g7 call later today. Can european and Global Leaders do what Central Banks have not been able to do for markets . The move in s p futures has been stunning as well. Yousef absolutely. You have to wonder why the fed could not wait 65 hours until their regular meeting and that is getting factored in. It is spooking some portions of the market and that is the feedback we have been getting on the program over the last couple of hours or so. S p emitting futures many features showing that mini futures showing that clearly. Buy at thatd to level. Looking at what is happening with the story around brent crude, down 4. 2 . The losses have accelerated. Even though on the fiscal and monetary side, you mentioned the boj, more is getting thrown at this. The reaction is negative. Australian stocks is another example of that acceleration in any Risk Appetite or a version of Risk Appetite we are seeing across the board. The biggest movie nazi stocks since 1992. Our top story, lets get to that. The fed has been swept into action once again amid the coronavirus outbreak. The benchmarkhed Interest Rate and promised to boost its bond purchases by 700 billion. Primary response to this challenge will come from our Health Care Providers and policy experts, Economic Policy we must do what we can to ease hardship caused by the disruption to the economy and to support a swift return to normal. President trump said he was very happy with the measures. The federal reserve, as you know, just happened minutes ago, but to me, it makes me very happy, and i want to congratulate the federal reserve. For starters, they lowered the fed rate. Joining us now, the multiasset strategist at Societe Generale. Great to see you with us today on a stunning day and markets. Whether you think that with the fed and Jerome Powell did overnight was a misfire or not, the question becomes what comes next . What more can the fed do to support markets if anything . I think centralbank global Central Banks have a lot of the firepower in response to the dollar shortage, liquidity, credit line. Now, at this point, we can head over to government. Do . Can governments riyadh whereurn to Central Banks do their best and everything in their power possible to support the economy. Yousef i want to get some more context from one of our regular columnists. He wrote in a few hours ago that the fed has put a much gone all preserveattempt to credibility, standing, and perhaps political economy as well, a monumental policy but he hopes work bet he hopes works. It does not have overwhelming odds of success. Do you agree with that . Sophie i think it depends on which you are in. Socgen, two quarters of negative gp. We look at markets, he has been reacting so far. The performance of the s p over the past two weeks. It really shows that it has been with atn a recession least 20 eps downgrade for the new year. No chance of recovery this year in terms of lshaped and we are not in this scenario. We are more in the scenario of a shape where in the near term, it can go lower. That going forward, it is supported by the recovery of china. Peak terms of reaching the in the coronavirus. Everything should be supported and we should see a recovery of the economy by q4 in 2021. Nejra certainly by the end of the year. You are seeing 3500 in the s p 500. David constant of Goldman Sachs says we could bottom at 2000 but then we end the year at 2500. What we might see his devastation in Financial Markets and that can sometimes lead to a renewed bull market. How much more devastation are we likely to see in equity markets before the rebound that you forecast . Sophie theres two things. Investorsthing is continue to price in with no havingy in 2021, meaning the 2021 eps growth by 50 , it means that the fair value of the s p could be running 300. But on the other side, what investors learned from last year in january 2019 is no one really wants to because there is where a risk at the point the recent performance of markets has not done a lot of good on global portfolios. If you look at the performance of gold and treasuries over the past week, it really means investors to leave itill have there for the moment. Sophie huynh from Societe Generale, you are staying with us. We have a lot to talk about. Meanwhile, as the outbreak continues, the spread around the world, governments have taken edges to contain the virus. Joining us now is Annmarie Hordern in new york with the u. S. Response paid meanwhile, maria tadeo response. Also, maria tadeo. Annmarie over the past 48 hours, life as americans know it certainly being put on hold. First, over the weekend, we heard from the u. S. Government. Donald trump expanding the travel ban to widen it out to include the United Kingdom and ireland and that is having a direct impact on airlines. American airlines reducing by 75 their International Flights, one of the biggest reductions we have seen out of u. S. Carriers. It will be hard to find a transatlantic flight back to london. On the government front, the cdc this evening urging americans to postpone any event that is bigger than 50 people. This is not just conferences and concerts anymore. This is birthday parties etc. From new york city to los angeles, we are seeing more cities locked down. You can only order takeout or delivery. Things are coming to a standstill. It is the schools. New york city being one of the Biggest School systems for public schools. 1. 1 Million Students will be home through april. You are seeing a huge effect for everyday americans. Nike, apple, abercrombie fitch, are closing their doors. They say manhattan is the city that never sleeps. I have never seen it to be such a ghost town. Are certainly not sleeping. Maria, lets turn to you. The big agenda item today is the between g7 leaders p are they likely to provide the reassurance to the markets at central bankers have not been able to . Maria at this point, that is a big question. Over the weekend, governments here are trying to stop the coronavirus. It will become the epicenter of this pandemic. They are bracing themselves for a recession to take hold. Spain going into a shut down, very similar the french government deciding they will put the country in a semilocked down. The g7 conference happening today is happening at the request of Emmanuel Macron who said this is probably going to be the most Serious Health crisis facing the European Union , also saying there should be no cost implied here. The government should put everything they have to battle the coronavirus. The broader g7, are they going to step up . The central bankers have come out. The question is now, are we going to see relief on the fiscal side . Yousef thank you very much. That is maria tadeo and Annmarie Hordern in new york as well. Thats get you some of the stories we are keeping a close eye on in the first word news. The bank of japan has strengthened stimulus but it stops short of cutting it couldve Interest Rates. The central bank doubled its target for the next etf purchases to around 112 billion. Boj introducing new lending programs to help businesses hit by the pandemic. The bank is set to hold a News Conference which is happening at 7 00 a. M. London time. The first oneonone debate as part of the democratic president ial primaries, joe biden and bernie sanders. They use their responses to define their visions for the country. The vermont senator called for an overall overhaul of the Nations Health care system. The former Vice President said the country needed to respond like it was a war. In israel, the former military chief any ganz has been given the first shot at coming up government after the third election in less than a year did not provide a clearcut winner. Benjamin netanyahus party won the most votes, but his block is smaller than the oppositions. If benny gantz is unable to form a government, netanyahu may get another chance. 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. Get you a bit of a snapshot of what is coming up on this program. Chinese manufacturing, Retail Investment suffered an historic slump in february. Now, gdp is all but certain to contract in the First Quarter. This is bloomberg. Nejra this is bloomberg daybreak europe. I am nejra cehic in london. Yousef i am yousef gamal eldin in dubai. That me show you some of the price action. The msci asiapacific index under pressure even though authorities are throwing quite a were. As it losses of 3. 5 on that index could s p 500 many futures minifutures reflecting the consciousness given the emergency move we saw from the fed and the similar story in european stock futures as well, down 3. 6 . China has suffered an even deeper slump than analysts feared at the start of the year as the coronavirus outbreak has shuttered factories, shops, and restaurants across the nation. It underscores the fallout facing the Global Economy as virus spreads around the world. Chinese gdp is all but certain to contract in the First Quarter compared to the same period of last year. Sophie huynh from Societe Generale is still with us. You had quite a bit of conviction on emerging markets. How does your view on china feed through to your em Asset Allocation right now . Value in terms of market we like. Couldk in this cycle, we pick up between em and em. More importantly, something to take into account, in line with recent events, is to find that there is a china and the rest of the world. They arento 2019 going to get out of it earlier. ,e are forecasting the vshape q1, as you are mentioning, is not going to be great. Chinese economics is forecasting 2. 5 . Q4 20 atcovery with 6. 8 . Sophie, let me flesh that out because we have a chart, gtv for the users on the bloomberg. This is a story about chinese stocks serving as a template for what a future recovery would look like. The shanghai composite index bested the msci asiapacific index by 8 , the biggest margin since 20 15. What is your read on that . Sophie the first thing is the as athat using china template is fine unless talking about the firepower that china has. Europe and the u. S. Does not have it. Recovery, it might be slower than china. Recovery,f domestic it feels like the government has been taking things much more seriously in terms of the theentive measures coronavirus. You are going to get out of it earlier. We are not doctors. We will take a peek at the impact facing markets at some point. Of china, where we are still waiting. We need to be more patient out of china. Sophie, you were talking about the response from policymakers in china and how they have more room than a lot of other policymakers, both Central Banks and governments around the world. Do you expect more to come from china or are they done for now in terms of stimulus . Sophie it should wait. We have done everything to respond to the slowdown in the short term. I think in terms of the response for the credit market, and issuing and supporting the virus bond, i think it has been a good thing. In the short term, i think for now, it has been the proper response. We are going to see if the slowdown had ripple effects through q3. For now, its enough that in the performance of the equity markets as well, its been more muted, much more stable. When you look at the performance of the chinese it did not stay sophie, hold that thought. We still have quite a few issues to get to. Sophie huynh from Societe Generale. Lets get to some of the Bloomberg Business flash stories. Saudi aramco slashing spending this year, the first sign that plunging demand in the Oil Price War are hitting home. Capital expenditure will be between 25 billion dollars to 30 billion in 2020. They put the level at 35 billion dollars to 40 billion. Value has fallen to 1. 5 trillion. Amazon has suffered a Technical Glitch, hitting Online Grocery deliveries, as demand for Online Shopping has strained the retailers capacity. It comes as panic buying has left shelves at brick and Mortar Stores empty. American airlines is slashing International Flights by 75 , the biggest reduction so far by united is also cutting capacity by 50 and reducing some salaries as well. It comes as the demand for travel around the world has collapsed as governments imposed restrictions to try and slow the spread of the coronavirus. And that is your Bloomberg Business flash. Nejra. Nejra coming up, Central Banks around the world take measures to counter the virus impact. We get your chart that matters. That is next. This is bloomberg. Yousef this is bloomberg daybreak europe. I am yousef gamal eldin dubai. Nejra i am nejra cehic in london. We have a headline coming through from the center for Airline Warning the virus is to bankrupt most airlines by may. Carriers have lost more than 100 billion in market value this year and airlines globally facing 113 billion in lost revenue thereabouts, but they are saying the virus is to bankrupt most airlines by may. Central banks across the world have taken sweeping actions to blunt the Economic Impact of the coronavirus outbreak. There with a chart that matters is Annmarie Hordern. Annmarie we have to start with that sunday surprise from Jerome Powell. The fed cutting a full 1 . Look at where they stand at. 25 . They line up with the bank of england as well as with the reserve bank of new zealand. The highest rate amongst all these massive Central Banks is the bank of canada although Jerome Powell did say he does not think negative Interest Rates would work in the United States. That is where we are right now with the ecb in the negative rate territory. The ecb did not cut alongside many of the others who cut but they had monetary tools to combat the coronavirus. We will have to see how these u. S. Markets open up today given this massive surprise from the fed. Yousef lovely chart. Thank you very much, Annmarie Hordern, with a chart that matters to lets get back to sophie huynh from Societe Generale. You look at the cascade of cuts from the fed to the boj and investors have been relaying that they are spooked by a what the Central Banks might be seeing that the rest of the world is not seeing about the impact of the coronavirus. Sophie [no audio] nejra sophie . Sophie yes. [no audio] yousef sophie, can you hear me . Sophie i camp what was your question again . I can. What was your question again . Yousef what are these cuts we are seeing from Central Banks around the world . They might ring off an alarm with quite a few investors because Central Banks might be seeing data that the rest of the world has not had a chance to see yet. The response we got from global Central Banks has been the right one because theres been fear, as we were mentioning but theres going to be an impact on the nearterm topline revenues. Something they will find very hard to cope with, the lack of revenue and preventive measures which have been slowing down the business on the and the fact that some banks are not able to provide credit drive to corporate. They are doing everything they can to cushion the Credit Impact and to avoid unknowns in the financial market. I dont think boost equities. Nejra ok, so sophie, in terms of fixed income, how would you allocate across sovereign bond markets . Would treasury be your preference or would you prefer to look elsewhere . Sophie at this point, we are still we still like treasuries. The preferred perspective, we are overlaid on u. S. Treasuries. If the level was at 96 bips. The caution it provides becomes less and less much less attractive than in the past. I still think treasuries value and protection you need in portfolios. The question is more on the next step. Investors will have to ask themselves how much bonds you have to sell to buy equities. Nejra it might be a little bit of time before they ask that question but a great one nonetheless. Sophie huynh from Societe Generale staying with us. Coming up, youre up. Traveles in the free zone consider restricting access to foreigners and asking residents to refrain from leaving. More on europes response and the g7 call, next. This is bloomberg. Nejra these are todays top stories. Emergency action. The fed slashes rates near zero in an effort to save the u. S. Economy from fallout. Yields fall off a cliff. The Economic Impact of the virus laid bare by the latest data from china. And europe widens the spread as governments tighten border controls. Nejra a whatever it takes moment from Jerome Powell and the fed. Yields still down. Dropping across the u. S. Curve and also flattening. Says markets are bottoming to sell the dollar particularly against the euro, aussie, and loony. The euro stoxx 50 futures on the back foot as equity markets stay in bear market territory. A lot of read on the screen in asia. What a move in u. S. Futures. Yousef the markets life team saying we may be entering a world where yields stay low forever. Clearly this was an emergency move. Very pressing data that push them that way. Not exactly what policymakers hoped for. Currently we are in the 2555 point mark, not enough interest in buying asset level at that level specifically. Major moves in asia. Aussie stocks dropping the most on record. Down 9. 7 . Creeping ever so slightly toward the 30 per barrel mark. Signals from the rba of more action. We got a cut from the rbnz and we heard from the boj, stopping short of a rate cut, but talking about etf purchases. As you are saying, centralbank action not looking like enough. We have Global Market coverage from hong kong and new york. Joining us to discuss all this is Sophie Kamaruddin and Annmarie Hordern. Sophie, you have more on the boj. As you pointed out, the boj coming through with that key rate, but take a look at stock reaction. We did see the topics close in the red by more than 2 . Banks lend a bounce in the afternoon session right after that decision. Stock investors perhaps not too enthused by this incremental approach. Instead of full on shock and off. And awe. It signals the higher cap was for a limited time. The is just an indicator of scope for buying. That does provide leeway for buying to wrap up. More light perhaps being shed by boj governor kuroda when he had s his press briefing. Lets get to the crude oil front. The historic week we had, yesterday the biggest drop since 2008, we are seeing that deepen. Look at wti and brent. Wti around 30 per barrel. At one point dipping below 30 into the 20s where many analysts said we would end up. You can see brent is at 32 per barrel, down 5. 4 . This comes as there is growing fear about the demand picture. Many traders think oil demand may contract by the most ever this year. Asia, we saw lots of lockdown. Europe is locked down and that is becoming an issue in the United States. Flights are grounded, trains are canceled, schools are closed. There is less need for oil. Nejra here is what you need to know today. Restraints across the continent, tighten border controls to check the spread of the coronavirus. Maria, great to have you with us. What are the latest numbers . Goode numbers do not look and i would focus on italy where we saw another one day spike in the number of deaths and total cases now topping 24,000. It is running ahead of everyone by two weeks. The thinking is when italy peaks the rest of europe will follow. We are not there and the numbers do not look good. Government said it would take weeks for the shutdown measures to show an improvement in results. Its not just italy. You see spain, france, increasingly moving closer to a shut down, full shutdown. It is also interesting the European Commission wants to ensure there is a flow of goods in the single market. Ministersave finance who are not going to meet in person because of those. We are going to see real relief today. We have seenef more and more coordination between policymakers around the world the last few days. Now we have more in the pipeline on the european side. Do we know what might be on the agenda if we are going to get anything tangible at all here . That is the question. What i would say, we dont know whether we are going to get anything concrete today. The mood music around fiscal stimulus has changed. You have the German Government saying they are going to ensure they are ready to put unlimited cash on the table to help their own companies and also you had Emmanuel Macron saying europe will need a Massive Stimulus Program after the pandemic goes away. When this is likely to happen is still a big . Everyone is just keeping a close eye on italy looking for that peak. But there is no hesitation now in europe. When you speak to officials in brussels, they will tell you honestly the best Case Scenario is we are going to go into recession and that will require big stimulus. Nejra that was maria tadeo. Sophie, we were talking about the Central Bank Response earlier, and you might say it is starting to look like a coordinated global response. What do investors need to hear from the g7 call today to get some support to equity markets . Investors need coordinated real, fiscal package in order to , but also in the mediumterm and by the end of the year were investors are pricing in an lshape because of the lack of coordination. Waiting. Ill that is why the markets did not react well. Yousef what are your thoughts on european credit . Are they likely to outperform after this fed rate cut . Europe it could avoid default and it could avoid another spike in the widening of credit spread. We are still looking for a way up because you need a bit of growth for credit to perform well. In terms of equity versus credit, yes, credit could outperform equities. But to stop here because you have some cuts, i think, we are not there yet. Nejra what do you make of the call from Morgan Stanley that we have seen a bottom in markets and you should be selling the dollar against the likes of the euro, the aussie, and the loonie . I agree with the first part. Of budgeting, we still need to see fiscal support. The central bank did everything it could at this point. Now it is over to government policymakers. The economyoint, has been pushing since november, which did not quite work well at the start of the year, but it is starting to work now where the yield differential is not in favor of the u. S. Dollar anymore. A defensive market you would want to go more into euroyen and potentially the chinese. Yousef thank you. Here is what is coming up. Saudi aramco slashes spending as the coronavirus wipes out demand for oil. More on that next. We reduce the target range for our policy Interest Rate by one percentage point, bringing close to zero. Economic policymakers must do what we can to ease hardship caused by the disruptions to the economy and to support a swift return to normal. The Second Quarter is going to many, outputew of declining. After that, it is very hard to say how big the effects will be or how long they will last. We expect to maintain the rate at this level until we are confident that the economy is on track to achieve our maximum employment and price stability goals. We think we have plenty of policy space left, plenty of power in our tools. We do not see negative policy rates as likely to be appropriate policy response in the United States. Are going to be looking at the treasury market function. Todays fomc meeting was in lieu of the meeting scheduled for next tuesday. Nejra Jerome Powell speaking. The central bank announced an asset purchase program. Shock and awe looks like disappointed in the markets. Euro stoxx 50 futures in the red. The 10 year yield in the u. S. Dropping more than 30 bases at one point. The yen dropping against the dollar, briefly weakened after the boj talked about purchases and oil extended declines. As markets lose faith in central bankers. The storyt us get to around saudi aramco. They are slashing plan spending this year. Sign plunging oil demand is hitting home. Was 88 billion u. S. Dollars. Lets get straight to the senior director of Market Economics at nbd, who joins us. What is your read . Of nots very much a case wanted what saudi arabia to see with respect to the decline in income, but also for saudi aramco. It also plans to have these last Capital Expenditures going forward. As part of the price war between saudi arabia and russia, we expect to see significant investment in capital by the kingdom. They are going to have to be shifting their focus around the downstream side of their strategy toward more upstream capacity investment. With the oil price as low as it is, as low as its going to be for the foreseeable future, its really going to constrain their freedom to be able to capital to produce the but they want to. Is the bottom for oil prices right now. We are guaranteed to see a decline in consumption year on year. The question remains what the scale of that is going to be. Spreads, weavirus project decline we saw in china. The outlook for consumption is very soft in q2 and q3. The surge in inventory we might see the next six months is going ,o be depressing prices lower perhaps into the 20 to 30 range for brent oil prices. It does seem likely given where we are right now. Bit of attention in what is happening with the u. S. Petroleum reserves. There was thinking in the market that, you know what . If they soak up excess cheap oil, it might accelerate rebalancing later on in the year. Goldman sachs says, you know what . Thats not going to work out. Do you subscribe to that view . The scale of reserve purchases we have seen announced from the United States are going to be dwarfed by the planned increases we have seen from saudi arabia, from russian oil companies. Well it does help at the margins, it is by nowhere addressant enough to what we expect to see over the next few months. It may help improve sentiment, but in terms of overall balances, its not going to matter in a significant way. Nejra i have been off for 10 days, but even i could not fail to see the move in markets last monday on the concerns around the price war between saudi arabia and russia. Where does the opec plus alliance go from here . I think the alliance is very much dead at the moment and it does not look like we are close to getting any of these ministers around a table for the foreseeable future. It is an allout fight for market share now in the form of slashing official selling prices and increasing production and exports to targeted destinations. Of, how this question long can countries like russia or saudi arabia endure the pain . It does look like they are prepared to endure for quite a while. I dont see that we return to any kind of opec plus production going forward. Mind, an increase in production was always going to have to be the result of opec plus production cuts. There was no doubt in our mind saudi arabia was going to be producing less than 10 Million Barrels a day for the foreseeable future. Production increase was going to be inevitable at a time when we were facing severe demand shocks , getting a double way me of supply as well as demand shocks hitting markets. The countdown clock is on for u. S. Shale. The players are on a tight leash. How long do you think they have . See a meaningful decline in production its going to be the end of Third Quarter toward the Fourth Quarter of this year. Producerse marginal getting hit most acutely by the price decline. Bear in mind, shale producers , so had more flexibility that should insulate them for the foreseeable future on the price declines. In terms of what we are looking at closely now is what happens with the rate cut in the u. S. In 2015, that was slashed almost immediately. We dont see why that would be different this time. Q3,ysts start to look for q4 numbers to see a drop in production as a result. You for that. That is ed bell. The Qatar Stock Exchange is up 6 as the government announced a stimulus package. Arguably it works in some countries. Thats just one example at the moment. Here are some of the business flash stories. Amazon has suffered a Technical Glitch hitting Online Grocery delivery as the demand for Online Shopping has strained retailers capacity. The glitch hits its ability to deliver amazon fresh as panic buying has left the stores of brickandMortar Stores empty. American airlines is slashing longhaul International Flights by 75 . Is the biggest reduction by a u. S. Carrier so far. United is also cutting capacity by 50 and reducing salaries as the demand for travel around the world has collapsed. That is as governments impose restrictions to slow the spread of the coronavirus. Ferrari has shut down production. Italy has become the epicenter of the coronavirus outbreak outside of china. The government has put the nation on lockdown as it tries to contain the spread. That was your Bloomberg Business flash nejra coming up, was fridays market rally a signal the world has bottomed out . Nejra this is bloomberg daybreak europe. Asking for investors whether fridays stock rally marks the bottom, Goldman Sachs has an answer. Not yet. Here with your morning call is Annmarie Hordern. The s p 500 as well as gdp growth, Goldman Sachs out with two notes. On the s p, they say you will likely be back down by almost 10 the next three months. And if he deepens economic fallout, they say we could see another 26 . When it comes to growth, a fresh note yesterday saying they have zero growth First Quarter and then 5 contraction in the Second Quarter. More doom and gloom from Goldman Sachs. We keep seeing these calls from estimates having to revise their forecast given the situation due to the outbreak of the coronavirus. Nejra thank you so much. Sophie, a dire forecast using a combination of the fed model and the history of declines. Are you looking at for your forecast . Do you see the s p 500 ending the year at 3500 . Buybacks inen using our model. Earningshe implied recession since the peaking fed in 2020. We see 20 eps recession priced in, already more than the recession priced in. In the near term you could have more downside. Mediumterm, what we andseeing is recovery momentum by the end of the year. Butef you cannot help wonder, in an event where it does reach that level, whether the leaders of days past, the tech companies, are going to be the leaders of the charge forward. The same names that help drive momentum, or is there going to be rotation . It could be a rotation. Me, being out of the growth component, into next month, that why equitieshat is versus u. S. Tech. But on the other side what you fact we have had this ongoing rally in bond yields for but as bondrs, yields went lower to zero, the boost from this longer duration i think is fading. Youre going to have much more real gdp Growth Driving it. In line with what youre talking about, european versus u. S. Yousef we have to leave it there. Uynh. E h always a joy having you on the show. Coming up, we will be speaking to the bp cfo. Nejra the fed pulls out the bazooka, but equity markets disappointed. The 10 tumbling by as much as 30 basis points. Anna welcome to bloomberg markets, the european open. We are live from our European Headquarters in london. I am anna edwards, alongside matt miller in berlin. Matt today, the markets say it is still not enough. Stocks take a hit, despite emergency actions by the fed. They prepare for another brutal day. The cash trade is an hour away. Matt emergency action