No let up to the s p 500. After all that negative Economic Data, we have the 10 year yield back down to 65 basis points. Crude oil is trying to make a run for 20 a barrel, a whole . 14 lower their. The vix is trading just below 42. Halfway into the trading day. Lets get to Abigail Doolittle for some more detail. Abigail that was certainly a risk off picture. Thatinancial markets on dire Economic Data we have seen today. Subsector picture it gets worse. Look at the s p 500 energy index. Down 6. 3 . This antipathy in sympathy with the volatility for oil. We also have the bank index down sharply for a third day. More bad earnings from citigroup and bank of america. A global macro picture is not great. Auto down, airlines down even with a bailout. One area that is doing better is the faang index. It is doing quite well. A piece of this is tesla. Take a look at tesla over the last 19 sessions. Tesla has actually doubled. Goldman sachs has initiated on tesla with a buy rating, but it is extraordinary that in the time of the virus and the dire impact it is having on the economy, we have shares of tesla doubling. That speaks to the quality of the buying. It will be interesting to see whether that can hold. Some of the data we have had has to do with retail. March sales plunging in the most ever. Another bright spot amazon is up. 5 . Another alltime high. A real case of the have and havenots in retail. Amazon doing quite well during this difficult what difficult stretch. We will be speaking about retailers with adam portnoy and a little bit. Interesting. Adding to the outlook on the oil market. About the g20. R in the last few days, there were two very important efforts, one from opecplus countries and a g20 meetingas organized by the chair with saudi arabia. Brought some good news to the markets, but the market is falling so badly that they could only limit the damage. We expect, this year, Global Oil Demand to decline by 9 Million Barrels per day. , demand is to collapse by 9 Million Barrels per day. Decline around the world. A few minutes ago, you showed the imf. A steep decline in the economy, 3 . This would mean we are going to 2019 economicere, growth. In terms of oil demand, we are erasing an entire decade, the last 10 years of oil demand. Visavis one year of economic growth. What does it mean for further production cuts . You are involved in negotiations at the g20, where we heard that g20 members would help with production cuts. Is this actual production cuts or is it the fact that they are not pumping because the price is too low . There are different approaches from different countries. This happens as a result of some countries seeing that the Market Conditions pushed them. In some countries, there is a you lookl but when at for countries, the u. S. , canada, norway, who did participate in these meetings, our anticipation is that they will have an altogether production decline. About 3. 5 Million Barrels per day on top of the opecplus countries. If these efforts from opecplus and the g20 if we are not able to see those efforts from those countries, we will see a higher it helps us to shave the peak somewhat. Good morning. Thank you for joining us today. I want to go back to what i am sure you studied at the Vienna University of technology a long time ago, which is how people cheat within the cartel and now the new addition, how did they cheat outside the cartel . When do we begin to see people cheat on the recent promises . Thank you. It is one of the things that i remember from my studying in vienna. You are right. , would say that our numbers big numbers, are based on the compliance of those countries. If there is not 100 compliance by the producers, the targets they have set up may be more serious than we had planned this morning. That was the iea director. In the last few minutes, we have the new jersey death toll for the past when he four hours. More than 300 covid19 doubts for the second day in new jersey. The new york number was 752, down slightly. Hospitalizations are a different story. Peak. Re continuing to intubations a little lower in new york according to andrew cuomo. Lets get the first word headlines with mark crumpton. The worlds richest countries have agreed to help the poorer ones cope with the coronavirus pandemic. Finance ministers of the g20 group said they will free debt obligations. Leaders and african made a joint appeal for a Massive International effort, including a moratorium on debt payments until the pandemic is over. The coronavirus has infected more than 2 million people. It took about four months to the virus to infect one million people, and only 12 days for the number to double. Officials say that the total case count is likely higher because most countries are testing only a fraction of their populations. 700 61. Says another people died from the coronavirus in the past when he four hours. That was down slightly from the day before. The u. K. Has more than 98,000 confirmed cases, more than 12,000 have died. The figures are being closely watched as an indication of how much longer the countrys lockdown will last. The governor government must decide thursday whether to renew the lockdown and for how long. 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 mark crumpton. This is blumberg bloomberg. Vonnie this is Bloomberg Markets. New headlines from Andrew Cuomos news conference. He will issue an executive order to force people in new york to where a mask or a facial covering. He says new yorkers must wear masks. The executive order is going to suggest that all people in new york must have a mask or a facial covering. That is a development. The Federal Reserve stepping up in recent weeks coupled with announcements from the treasury and that supporting an economy. It will be at least 5 trillion. Joining us to discuss the coming months for the economy is joanna kirkland. We are through some of the volatility. It does seem to be calmer waters. We know some of what is going to happen at an executive level. How are you advising investors . We got through some of the extreme stress and now it is time to step back. We came through this crisis with failing anemic fairly anemic growth rates. We have been comparing that recovery with what we call a wobbly bicycle. Any gust of wind could blow you off course. I think that even once we get out of extreme versions of lockdowns we have seen in recent weeks, the return to normality will take some time. We will still be dealing with weak growth environments even after the more extreme measures are lifted and that is something we need to start thinking about now. Vonnie when you look across the multiasset strategy you have built up, what tweaks would you be making . Area is clearly the fed a week or so ago. Some of then extreme risks have been removed. Being further out Capital Structures is probably a good idea where growth has been quite weak. Weve been reallocating capital there. Bonds as an some hedge, although they have gotten expensive. We did also lift some of our hedges. Vonnie not the first time we have heard that about bonds. You say you are staying away from equities and looking at that. Is that primarily in the u. S. . Are you looking also in europe . Latera we are running exposures the normal later exposures the normal. Theou look at the level of s p 500, it does not look like it has priced in much stress at all. We all seeing we are seeing some interesting situations. Values as a strategy has underperformed. The more cyclical areas of the market like industrials were hit very hard. Under the surface, things are quite and there are potential opportunities in the more cyclical areas of the market is we come out of these lockdowns. Vonnie there have been some interesting moves in emerging markets. Is there something that schroeder is doing Schroder Investment is doing . They continue to warrant a place and a portfolio. We need to be careful. Going back to this idea of an anemic growth environment. I dont see global trade picking up any meaningful way this year. Emphasize thatto we see value in emerging markets, but i would not be allocating a lot of capital there. Vonnie is this the end of the beginning or are we in from a protracted difficult period . We saw the bank of america talking about recession until at least 2021. Some people are saying that the social distancing is going to remain the case for a lot longer. Johanna for me, it is the end of the beginning. We need to remember that churchill said that in 1942. I think it is the end of the beginning because we have we are starting to understand when he to be done to keep the virus under control. That helps markets. What the market hates more than anything is uncertainty. We understand the virus in a way that we did not even four weeks ago. That is a good thing. It is good to see the infection rates coming down in places like italy also. This log is really working out the economic implications the slog is really working out the economic applications. Vonnie we would love to have you back again soon to take the temperature of the markets. Johanna kyrklund. , investors are looking out for signs of a real estate meltdown. We will discuss with alan per doi alan portnoy. This is bloomberg. 0 vonnie this is Bloomberg Markets. Acrossyments cascading real estate. A scurry of activity to find a port in the storm. Rmr group is a Company Involved with real estate. Lets welcome adam portnoy, president of rmr. Give us an update on who is paying their rent and who is surprising you. Said, we have a large portfolio of tenants across the United States. Over 2000 properties, 90 million square feet that we manage. Touching all much types of commercial real estate with the exception of traditional multifamily. We have a good feel for what is going on with regard to rent. To answer your question directly, most tenets tenants are holding up well, especially in the office and industrial side of the business. We are seeing close to 100 rent being paid on the office and industrial side. The biggest area weakness we are seeing is on the retail side. We have about 700 different retail sites around the United States. We have only collected about 40 of the rents in april for retail, but we have been working closely with the other 60 . This is one of the advantages we have. We have been in business for over 30 years. We have Close Relationships all these tenants. Makinge are probably deferred rent in april, we are confident that the vast majority of those rents will ultimately be corrected collected later. Right now, the name of the game, especially with retail, is trying to work with our tenants, especially once we have had a long relationship with to help them get through this difficult period. Vonnie a huge amount of distress and retail. Rates andve mortgage you are in the position of not having any debt to repay and your relationship with your bank is giving you leeway here. Im curious as to some of the other types of properties that you own. For example, Senior Living facilities. Do you anticipate problems with those sectors Going Forward . Adam and the Senior Living space, we have a large port folio large portfolio. We take care of about 24,000 in folks and about 200 about 260 communities. We do not see significant problems financially in that sector. Is onector, of course, the front lines of what is going on in the United States with regard to the pandemic. Amazed at theen dedication of the employees on that side of the business. We operate that business as well and it is great to see how people are volunteering to put in extra hours to help take care of these folks. Of course, they may be among the most vulnerable. I think we are doing everything we can and we are doing a very good job of keeping that population very safe. Vonnie we were speaking with craig fuller of freight waves. He talked about it being challenging for Trucking Companies exposed to the stock market. Own an amount of truck stock, which happens to be a leading indicator in many ways. Andsale of gasoline there visits from truckers. How are your truck stops going . Adam i agree that it is a leading indicator. We sell about 2 billion gallons of diesel fuel to truckers a year. They have been deemed inessential service so they are up and operating an essential service so they are up and operating, keeping what we believe is a vital part of the economy operating well. That is servicing Truck Drivers moving across the country. What we saw as the pandemic actually aere was spike in fuel volumes. That was really our best guess is that that was restocking inventories and food services. What we have seen since the beginning of april is a weakening in the fuel volume. Right now, we are trying to figure out if this is just a temporary thing that is a direct result of the closing of the this a leading indicator that we have begun the is this anand indication of things to come in that space . And iod news is personally was happy to see this is that supply chains are working and have been working throughout this pandemic. Fuel just the volume of that we have been able to sell in march and into april. Have but i not am curious as to what you think we will see at the end of this. Will retailers reopen, will fast casual restaurants reopen . Will it be the same . Adam great question. It really hinges on Consumer Behavior and how this opens up. An area we spend a lot of time thinking about we do not own a lot of malls but we do own a fair bit of casual dining restaurants. Isare trying to figure out what is the effect going to be on that sector Going Forward. Obviously, it has been hard on that pedant on that sector during this pandemic, but as the to open up, will behavior change . That will dictate what happens in that sector. Vonnie we have to leave it there, but we will check back in with you to see how everything is going. Adam portnoy, rmr president and ceo. This is bloomberg. Mark the u. S. Military is bracing for a long fight against the coronavirus. The Defense Department is looking for a way to keep troops healthy while protecting the nation. Officials have frozen most forces in place overseas, stopped troops from moving to new assignments, and cutback access to the pentagon. There are more than 2600 confirmed cases among in Terry Service members. India is making plans to ease its massive lockdown. Ofwill allow makers information technology, farmers, and industries and rural areas to get back to work after april 20. After a, india plans to lift restrictions on ecommerce operations. India has more than 11,000. Coronavirus cases nearly 400 people have died. Voterss of south korean or masks and maintained social distancing as they voted in elections today. The turnout was surprisingly high despite the pandemic. South koreas government resisted calls to postpone the elections. The country has more than 10,000 confirmed cases. 225 have died. 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. I am amanda. Welcome to Bloomberg Markets. Audiencesned by our to hear the top stories we are following. U. S. Stocks plunging as rush Economic Data adds to global fears about a recession. The s p 500 erasing yesterdays gains and turning red for the week. A 25 billion bailout for the Airline Industry. Will it be enough . Getting americas business back to work. Speak with the u. S. Chamber of commerce president suzanne clark. That conversation still ahead. I want to get a closer look at those markets. As you said, a combination of negative news to consider. We have incredibly weak reads on retail, manufacturing. The reality starting to hit home here. We are watching these markets. The worst of all the groups for the s p 500 is energy. It was down 7 . Materials right behind. Financial seeing a 4 decline. Some of the biggest names, jp morgan, down for percent down for percent. A lot of concern about how this pandemic lasts. We should note that this is a time of day we often get news from europe that feeds into market sentiment. 1400 new virus deaths. That is the highest to date. That is the data point that will weigh on these markets. We are getting a lot of fiscal packages coming from governments. 25 billion in aid for u. S. Airlines. A big question about whether that is going to be enough. Jonathan root, senior vpn moodys joins us now. Lets start there. Lets start with whether this will get them over the shut down and whether it will get them back to where they need to be. Jonathan the payroll grants are if it wills pass get them to the other side, we do not know how i the other side is. Grants will cover compensation through september 30. They are intended to keep the airlines from having to furlough or lay off employees. It is a very big help. At fullve that Payroll Employment represents about 60 of the current monthly cash burn for the airlines. Having the government pick that up is going to be very helpful and free up other cash for other needs. Still have a couple of Regional Airlines that have not been able to strike a deal. We are talking about express jet. Will there be some carriers that will be left behind and what will this mean for industry consolidation . I appreciate that. I do not have a good view for those two names. Our ratings cover the big seven of the larger airlines. The regional jet model is going to remain relevant to delta, american, and united. There will be a for those services. I cannot speak to whether they will be left behind. The government is casting its net pretty wide. If there is a way, i have to believe there will be something there for those companies. To what extent is this historic low price in oil a boon to the airlines . Can they hedge, reach into their future and lock in some of these prices to their benefit . Yeah. If they were flying , it would be a tremendous boon. Every dollar change in the price ofjet fuel, the jet fuel changes by three cents. Where brent is today is tremendous. The challenge is the airlines are not flying that much. In terms of hedging, we do not believe the airlines are focused on that at this time. I am not in the hedging market and i do not know it would be available presently, but the u. S. Airlines have moved away from hedging. A majority of them, for a number of years. Alaska,t still hedges, hawaiian, jetblue the largest. All of those airlines take positions that do not put expose them to liquidity risk, which is very different from the financial crisis. Looking ahead, we are not focused on hedging. We are focused on how the companies are managing the liquidity to get to the other side. Do you have any visibility at this point of how long this might last for the Airline Industry . If we do see those travel restrictions being lifted, we continue to see more people more jittery about traveling and a social distancing even after the pandemic . The only thing i would focus on right now is the uncertainty. I do not have a firm view for the timing. Things that we are thinking about, though, are the willingness and ability for people to start traveling after the virus. I have to believe, looking ahead after a vaccine, we expect things will return to normal. The challenge is the intervening period. Countries are restricting arrivals today. There are quarantines. We understand that outside the u. S. Certain countries are requiring quarantines. I drove to pennsylvania last week. That is going to be a challenge looking out over the next few months. Even if the virus receives, what receives,if the virus to what degree will people be willing to travel . Thank you. Moodys senior vice president. March saw historic declines for retail and factory output. Indicators saying the worst may be yet to come. We will discuss that with Michelle Gerard girard. I am amanda. Foraw historic declines retail sales and factory output, but there are suggestions the worst is still ahead. The ceo of Goldman Sachs says analysts should plan for better hope for better, but plan for the worst. U. S. Gdp isd forecasted to decline in the Second Quarter before recovering, resulting in an Economic Contraction for about 60 of the year. Of about 60 for the year. We are joined by michelle girard. This is the big unknown. The degree of uncertainty. When you see the data and know that it is going to get worse, match it up with the fiscal programs we have seen so far. Do you expect it to be more or does it need to be more to get us through this . Michelle we have to acknowledge that what we have seen to date is unprecedented, both in terms of the speed and magnitude of the response, the type of response in many ways itself unprecedented with the fed buying corporate bonds, going placesds they have not gone before. It ishat is a encouraging in terms of ruling out a worst Case Scenario or an lshaped sort of trajectory for growth that many fear, because these actions that have been taken go along way to ensuring that the Health Crisis does not turn into another financial crisis that led gold that lingers for years. Thatnot want to suggest what has been done thus far is has fallen short. It has been tremendous. Is there the ability or need to do more . There is certainly the ability, and if there is a need, i think policymakers will do so. The most obvious area right now is, for example, with the paycheck protection program. We have already seen almost all of the allocated funds, 350 billion, already being dispersed not dispersed, but approved. So more will be needed and i suspect we will see more from congress on that front. Talkingbefore we get to about doing more, how important is it that the funds that have been allocated be dispersed effectively . Before we were talking about the Airline Industry and some word criticizing the treasury for this aggressive negotiating stance, making it difficult for these airlines to get this federal aid. Michelle there is a couple of things. I do think it is imperative to get the funds to struggling businesses as soon as possible, whether youre talking about the airlines, even the difficulties Unemployment Program where funds have been allocated but not yet dispersed because the system is overwhelmed. We need to get cash in the hands of businesses and we need to do so and i have heard the treasury secretary talk about those thatre will be perhaps game the system, who will apply for aid that may not needed, but we cannot allow too much concern about those kinds of individuals, which will be the minority, to keep the program from helping the majority. The do think that policymakers are very much focused on getting money to people as quickly as possible. I think they are trying to find the right balance about giving the funds without in a responsible way to ensure that funds are being used for the purposes they are intended to be used for. The efforts to do that i dont think ultimately diminish. Everybodys recommendation is we have got to get the money out. Meanwhile, we are hearing talk about how to phase in reopening. An important part of this equation. Kerry moore from the new york governor today about hearing more about the new york governor today. Reopen,consider how to Health Concerns will be first and foremost. How much mitigating Economic Impact do you think we will see if we can see a phase three longer . In weeks, not michelle a stage three opening, which is how it has to go, is certainly, by definition, going to preclude a vshaped rebound. It will take longer to start things up then it took to shut them down. The recovery from this economic hit is going to take longer. That a lot ofhink it comes down to the ability to test. That is so crucial in terms of the speed with which activity can be resumed. If we know who has the virus, the antibodies, the not only will be able to open up were quickly, but the confidence people have will be increased. Amanda thank you for that. This is bloomberg. Shery one of the biggest questions right now is when to reopen the economy and get everyone back to work. David westin standing by with one main voice on the topic, suzanne clark, president of the u. S. Chamber of commerce. Audiences. Elcome our we are going to talk with suzanne clark, president of the u. S. Chamber of commerce. She is here because she has a new program, the chamber has a new program, to help the president figure out how to get the economy started. Tell us about your program. Thank you for having me, david. The chamber is lucky. We have unique vantage point, members in every sector and of every size. And a Great Network of state and local chambers. We have put out a call to all of those members so that we can get their input, their questions, concerns to develop a framework so that we can guide both policymakers and businesses. Process workll the and how long will it take . There is no precedent for this. There is no playbook for the Public Health prices crisis or the economic crisis. We are looking at new processes, new restrictions, new requirements, and even the risks. Every ceo is asking those questions. In terms of how long, the better we are in the planning phase, the faster ceos can move when they get the green light. We know it a job means to health. What a job means to health. Fitd how does this together with what is going on at the white house . There is a group of white house officials, including jared and a large group of business executives. How does this fit together . The more minds we have at the table the better, especially with something unprecedented. The task force the administration has put together has phenomenal names across a bunch of sectors. A lot of our good members and friends. It is organized by sector. It is work which touches the whole economy. We have been working with the white house directly on the overall framework and guidelines, and with our members on each of the sectors in each of the sectors about specifics. Thed where we have into after a bit of back where we have ended up after a bit of back and forth is that the president has announced some guidelines and the governors will implement it. Is that how this will work . It will be a multilayered path to recovery. ve had federal government guidelines in local decisionmaking in the past. With the white house defining essential businesses, the cdc then putting out guidelines, and then states implement and policies specific to their conditions. It is exactly the playbook we have seen before. David fascinating. At the same time, we have to be informed by the health care professionals. What we hear from them consistently is we need to have more testing. Do you have a sense at the chamber of whether that testing is around the corner . We certainly hope so and we believe in the innovation of the companies hard at work at it. We see new innovations every day. The testing matters not only about the virus, but also about the serological testing that can tell us who is already immune. If you think about getting back to work, testing is important, tracing is important, but the next phase is what equipment are ceos going to need . Will they need thermometers, passing out masks, will be up to train people on using equipment . And how is childcare and transit going to work in an era when you get the yellow light to go back . It will be continued social distancing. Have i dont think i started to think about the various ways this could affect our lives going out into the future. At least until there is an effective vaccine. We heard from the governor of california suggesting some things could happen with restaurants. You have a thermometer, disposable menus, tables spaced more widely apart. That could permeate every part of american business. I think that is right. And then there is the underlying consumer sentiment. When do people feel safe, when are they ready to return with demand, what happens to this pentup demand . The place to be optimistic is that we are an innovative country. We are already seeing Ingenious Solutions to these things. I never bet against american entrepreneurs and the ways they will figure out to solve this problem. That part is kind of the golden, Silver Lining to watch. Asid do you envision that, a result of this Path Forward Program, you will issue a report or is this going to be iterative , going on and on . Both are true. There has to be constant reports. The most timely help we can give people. One of the ways we could be the most helpful in the emergency become available, produce guides to put out. Our last count was 3 million downloads on our website. Small businesses accessing information about what to do. Now you are seeing ceos turn to, ok, where do i get information to start to think about not just testing and tracing, but also best practices . One thing we hope to issue sooner rather than later is to look at the essential businesses and what they are already doing. David we would love to have you back on to talk about that. This is suzanne clark, president of the u. S. Chamber of commerce talking about her new Path Forward Program to get the economy back up and running relying on all her on all of her membership. Shery our thanks to suzanne clark. We will leave you with a quake check on the markets. Ofing a negative day because some of the information we are getting. Factory, retail, materials weighing on stocks. Rathers having a negative effect on stocks. There is your 10 year yield. London. It is 2 00 in i am scarlet fu. Romaine i am romaine bostick. This is Bloomberg Markets the close. Yesterday, we closed above 2800 on the s p 500. We opened below that level and it has been downhill ever since. We have not come back close to that since. Energy, material, financials are the sectors with the biggest decliners. There are a few stocks moving higher. We continue to see amazon and netflix trading near record highs, at record highs at the moment. Walmart hit a record high yesterday. Some of the gains got reversed. The big story is what we are seeing in the oil market. Again, the weakness in oil