Steer the countrys recovery. On markets. Check the s p 500 up 1. 8 , being led by the energy index, even as oil reaches for a 17 and all. Handle. The dollar index close to 100 again, 99. 77. Lets get to Abigail Doolittle for a deeper dive into the markets. Abigail stop gains on the days certainly stand out, possibility of the reopening guidelines from president trump. But what stands out more on the declines in crude oil. Here is an intraday chart, down 7 , down much more before. This is the first month contract which expires next week. Contract, june, is closer to 25, so this may be temporary. Nonetheless, crude oil reflecting the demand picture shrinking on the coronavirus crisis. It is a tell as well on risk appetite. The need the surface for the s p 500, the sector composition is interesting. Consumer discretionary helped out by a lot of those faang stocks. Health care is also solid. Gilead sciences with some good news on a drug that may be helping. In real estate, lots of talk about the problems in the second her. It will be interesting to see how that plays out. Some of those shocks are in the small caps. This chart that we are looking bubble, in the. Com tech outperformed small caps to a huge degree. Then through the financial crisis, out of the bubble, really the law. Really fell off. Now we are closer to that outperformance. It will be interesting to see how that plays out. It is worth noting the russell 2000 is actually heading toward a down week at this time. Vonnie thank you. On energy, not rig count fell by 79 last week. Continuing tot decline as well. Joining us now is robert tipp from pgim, which oversees 850 billion in assets. The last time we had you thought it was at the beginning of the pandemic, markets looked very different. Im curious on your thoughts about how much the Federal Reserve has done and whether there is anything left to be concerned about in fixed income . Robert thank you for having me, and a good time to be here. There is a lot of confusion, there is a lot of opportunity. Obviously, nobody knows how this crisis will end, but it does look like the statistics are playing out as people would have , wected, which is to say are getting the contours of what a sudden economic stop, but one that should stop in a finite amount of time. Within the next 3, 6 months, you will see the pit form in the economy, and steps taken by the fed and around the world, in their unified effort against the common enemy of the virus and economic downturn, are going to be successful enough to bridge the economy. It will not be a feelgood economy for individuals, but for some,s, mysteriously, for it will actually be a very good investment environment. I think thatll be one of the twists in this crisis. Vonnie we have seen huge dislocations in fixed income domestically and abroad. Something that would interest you . Robert i think it is. It is a credit figures market, its important not to be in the minority of issuers that end up defaulting and restructuring. Those risks will be real him especially where the underwriting was more aggressive , or the fundamental shifts in. He economy are more negative in general, it is a very positive environment for bond. On the one hand, youll get an improving economy 12, 24 months out, but some of the rereading in the bond market to lower equilibrium rates has been permanent. The fed was in a bit of a fantasy world where they thought on the fed funds rate, and the midcycle rate down to 1. 5 , and maybe that was it for the cycle. But what is turning out to be the case, they have had to cut down tossively, slash zero, and they will be left with an economy with spectacular excess of economy, they will not be hitting their inflation target, and they will be in the same game as the rest of the Central Banks around the world are in. It is worth mentioning that in many countries, major markets like japan and europe, they did not have an Interest Rate cycle. They were at zero or negative rates the whole time. The only difference between good times and bad times is whether you do extra stimulus an extra qe or not. Vonnie remember when a fed insurance rate cut was an insurance cup . What the false do we reach . Where do you primarily see that happening . Robert i think that potentiality was there essentially if you are not getting the kinds of assistance to the corporate sector, those numbers of 10, 15 defaults were out there, but you are seeing from theaid government. I am not the credit specialist , but you see targetedaid coming into the airlines. You are also seeing targeted aid come to consumers and businesses. Keepmay end up helping to defaults may be in the mid to high Single Digits if we are lucky. The places where you will have more stress are not just the Industries Like hospitality and retail and so on, and of course energy, where you would expect it, but it will also be a factor of the underwriting. Size were be a middle you are big enough to skirt a butd underwriting process you managed do some kind of loan that was widely distributed. Those are going to be one of the many pockets out there that have distress. When you look at the typical where theyr area, have the full spectrum of hard currency emerging market, yes, high yield, but also Investment Grade credit, which has been battered, structured products, or even your top of the structure of issuers have been pushed out to attractive levels. The fact is even if treasury yields go up a little bit, the incremental income and contraction of spreads we are likely to see over the next three years is likely to bring in solid returns. Vonnie briefly on markets, is there an opportunity there now . Is that looking dangerous . Robert both. , that hasrency side been very volatile, values have been very depressed. In the local emerging market side, some countries where the yield curve is quite steep, Central Banks are cutting rates, whether chile or brazil, creating opportunities there. On the hard currency side, the bad news is, a lot of these countries needed to consolidate on the government deficit side. Instead, they are having to spend a lot more money. That will be a credit negative. Having said that, spreads have widened out more than enough, adequately reflecting the incremental risk in the vast majority of cases. I think you are in an environment where you want to be selective, but the fact of the matter is, over the next 612 months, there will be a lot of the rising tide lifting all boats. For joiningk you us, robert tipp, of pgim. Appreciate your time. In the last few minutes, new jersey reported its fatality count for the last 24 hours, above 300 for the fourth day in a row. Again, more than 300 fatalities being reported in new jersey in the past 24 hours. Lets check in on the first word news with Mark Crumpton. And more u. S. Homeowners are not paying their mortgages, according to a report. Nearly 3 million American Home loans are in forbearance plans that allow delayed payments without penalty. Homeowners are skittering payments because of lost jobs are income represent 5. 5 of borrowers with 651 billion in unpaid principal. More than 20 million americans have filed for unemployment in the last four weeks. In spain, the government reports more than 5200 new cases of coronavirus, the most in a week. Spain has the worlds most extensive second most extensive outbreak. They are starting to focus on how to relax nationwide restrictions. Weeks, critics have been skeptical about chinas official death toll. Now beijing has revised the count upward by nearly 40 . The new total is more than 4600. Officials say the deaths were not recorded in official data at the time. 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. Vonnie this is Bloomberg Markets. Im vonnie quinn. The coronavirus has affected more than 2. 1 Million People around the globe. Professor and rolla just spoke to us about the unique nature of this virus. Is interesting in that it causes a Broad Spectrum of diseases. It is true the vast majority of people will suffer mild to moderate diseases, maybe even no symptoms at all. But when you look at the vulnerable portions of the population, the elderly, when you look at people with secondary medical conditions such as diabetes, heart disease, lung disease, even when you look at relatively healthy individuals, there are a significant part of the population that has severe disease requiring, if not a hospital visit, admission into the hospital. So it runs on a huge spectrum in terms of how it presents that infection. Enzymest want to talk rna,friday, certainly not and the other necessities of doing a test, but i would , america, from the top down, does not understand the sophisticated biochemistry of tests. How hard is it to do millions of tests for this virus . We know a lot about the virus, and you certainly can do good testing. It requires not only a good test but also a Good Laboratory that is validated, knows how to do testing, knows how to do the controls, and show that they can perform the test well. That is where its important to be focused on Public Health agencies and medical institutions that know how to do these tests. Talk to us about reinfection and immunity. Are people who have had the virus really getting infected twice . Right now, it is still a little bit unclear. This gets back to the testing issue. Often times, what i have seen, people who are testing positive by the test that tells you if you are infected, pcr test, that does that necessarily mean that you have been reinfected. It may mean that there are small amounts of the virus still in your system from the infection that you already had. There is no good evidence to suggest you are getting reinfected after your first exposure. It may be that the virus is hanging around and you see vestiges after. But it is something to understand as we think about rolling back and leading some of our Public Health interventions. Test,we have a credible to test and unity . It seems we have more questions than answers on the virus right now. Testing positive is not the same as testing and being able to transmit the virus to somebody else. When did we find out whether people can go back to work safely . There is going to be a twopart phase to that. Many of the tests will tell you if you have an infection and antibodies. That is important because that will tell us, the people were infected the first time the virus moves to the population. But most of those tests will not tell you if you are protected from reinfection. That will take a second set of tests that will be done in Laboratory Settings that will take time to develop. That will differentiate people that have antibodies to it versus those that have antibodies that we think will protect you from reinfection. We like to think those will be closely related, but we have to do those experiments to be sure that the rapid tests that people are establishing are telling you that you are protected from reinfection. Onnie that was Andrew Pekosz as lockdowns caused by the coronavirus continue to better profits, more companies are looking at investors relentless appetite for debt. Sonali basak is standing by with a big name in credit. We have Christina Minnis standing by of Goldman Sachs, the head of the americas Credit Finance group. We have the Leveraged Loan Market starting to see some. Elief finally the last shoe to drop in the credit markets. That said, it is a risky business. When you look at the markets, what are your and your clients biggest concerns . Christina it is great to be with you today. Relievedur clients are to see Capital Markets functioning as well as they are. They continue to focus on making sure they have adequate touidity and runway, continue to finance their businesses through what is what is still a volatile time. We are really pleased to say that the Leveraged Loan Market is also showing signs of life. Sonali what do they have to look at moving forward . Now, all things go right now that things are coming back, or are there still concerned in the coming weeks . I think you will continue to see a lot of issuance. The last couple of weeks have been very strong. The investment great market post crisis has seen 430 billion of issuance. The highyield markets, with the transactions in market today, will likely be higher than 23 billion. Convertible and equity line to markets are over 22 billion. That pace of the highyield convert target will continue. We obviously have our season, so you may see some folks in blackout. Even with the resilience we are seeing in the Public Markets, i believe Companies Continue to be very concerned about the possibility that the recovery could be slower, and that they really need to shore up liquidity. Sonali lets get to that point on the shape of the next recovery. We are hearing some of the private equity firms talking about a longer ushaped. What are you and your clients taking a look at in terms of expectations for any hope of life in this economy . Christina you are well aware of ,he Goldman SachsResearch View which is for a pretty sharp decline in the Second Quarter of 34 , with a recovery in the back half. That being said, it is only a 50 recovery of what we have lost year to date. I would say most of our clients are hopeful we were going to have a strong recovery in the back half, but depending on sector, conservatively thinking through when their businesses will be up and running at full steam. I applaud all of them for being quite conservative on planning for potentially a slower recovery. But again, everyone is withistic, particularly the Capital Markets being as open as they are, to continue to support them as they look at these plans. Sonali what are your clients looking at . You have been doing so many deals. What are the kinds of deals that are able to make it to market, given that we have seen hilton, spirit, travel and entertainment starting to access highyield . Christina i think they are looking at the fact that when the crisis started, as you know, the public Capital Markets were effectively frozen. They came to the banks, Goldman Sachs, and we absolutely supported our clients. Now that we have a function in credit market across equity and debt, they are saying we are hopeful the recovery will be quick but we are not certain. So lets tap across all markets. Many of the transactions we have been involved with involve not only highyield debt but also convertibles. Side, i amyield pleased to say that we have been involved in 75 of the transactions coming to market, but many are doing dual tranche offerings to make sure that they get maximum dollar and great execution. Sonali what are your private equity clients saying . We know there is a lot of dry powder in the industry. Im told financing for deals was very hard to get done. Do we think private equity firms will return to significant dealmaking anytime soon . Say, they haveou a tremendous amount of dry powder, are some of the smartest investors in the world. I think we will continue to see some recovery, particularly in the Leveraged Loan Market, before you see the classic leveraged buyout. I think they are active, supporting their portfolio companies, which is the right thing to do as we get through this first part of the crisis. But i would anticipate them being quite active moving forward because the amount of capital they have to deploy, particularly to support their portfolio companies. Active inbeen very activity, which is a natural place for them to play. Sonali is this a new normal for private equity firms, see a lot more of those types of deals as they try to deploy this type of capital . Christina i mentioned, 8 billion done since the crisis started. It is a form of capital they have deployed in prior crises as well, a lot of capital raised, a lot of capital looking for places to go to work. I would anticipate that market to continue. As the market continues to be strong, there is a natural place for companies to also look at the Public Markets as well. Yes, i agree. Private equity players will continue to be active in that market. Sonali christina, thank you so much for joining us. We appreciate your comments today. Vonnie thank you, sonali basak, with stena minnis. We will be speaking about todays rally and whether it has legs over the long term with bob doll. Later in the hour, we will be speaking with citizens financials ceo bruce van saun. They are performing extremely well in the markets, even after reporting more credit loss provisions. Citizens financial is leading the s p higher by 16 . . E s p is up 1. 75 this is bloomberg. Mark im Mark Crumpton with bloomberg first word news. President trump is siding with americans in some states you are protesting stayathome orders. The president tweeted today urging minnesota, michigan, and virginia two liberated themselves in an apparent criticism of stayathome orders in the three democratled states. The president made the comments in a series of tweets less than 24 hours after unveiling a plan that differed heavily to govern is to determine when they could safely reopen their states amid the coronavirus outbreak. Reporting a slight drop in new coronavirus cases today, even as a Record Number of people who have tested. The number of recovered patients hit a record as well. Still, experts warn it is too early to say italy is out of the woods. Hascials say the country reached an artificial peak of cases because of lockdown measures. The British Government wants its money back for coronavirus tests that did not work. Britain spent 20 million on more than 3 million antibody tests at the beginning of april hoping to find which people had been exposed to the virus. Thecials say they had hoped test could be made available on amazon and at pharmacies. The virus death toll the u. K. Has risen to more than 14,000. 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. Amanda this is Bloomberg Markets. Im amanda lang in toronto. I am vonnie quinn. We are joined by our bloomberg and Bnn Bloomberg audiences. Here are the top stories we are following from around the world. Stocks are searching for slipping from session highs ev. N this amid signs of optimism in a pandemic. Investors see a glimmer of hope in the race to find a treatment. Shares of citizens financial are surging on the heels of its Quarterly Earnings report. We get the latest from chairman and ceo bruce van saun. That conversation is coming up. A quick check on the markets, we are seeing a reversal in almost every way from what we have seen the last couple sessions. Positive action across the board is being driven by those sectors that have held markets back the last couple of days. Energy and financials are on the move. Based on the volatility we have seen lately companies are not massive moves, but in the internals of the markets, energy is up 8 , financials are up 4. 5 . We are seeing some give back by tech, amazon and netflix, reaching new highs thanks to the stayathome affect. Jpmorgan is moving higher, exxon mobil also moving higher. Maybe profittaking on one side, renewed enthusiasm for beatendown names on the other. I want to welcome in bob doll, chief executive at nuveen. The volatility here alone can keep some on the sidelines, but in terms of when you see energy and financials moving higher today, the news has not materially changed. What does that tell you about the sentiment in the market . Robert the sentiment and the understanding, clarity is close to zero. That is to say there are all kinds of crosscurrents, not of places to put stakes in the ground. Typical for the second phase of a bear market. You have the waterfall decline and then that massive chop that can last for weeks. It has been mostly to the upside, thankfully, but what are earnings going to be, what is the right priceearnings multiple . No one knows. That is why you are getting this whipping around with the market as a whole, and inside, as you point out. Vonnie are financials a buy or sell after this quarter . Bob it depends on your time horizon. As the economy begins to improve, these are among the cheapest and i would argue best positioned cyclicals. If you can stand some more whiplash in both directions, buying them on because next cents. I would not chase them like today. I would buy into the weakness. But i think you need to own some of those big banks into the economic improvement. Things thatof the has happened in the last few sessions is a repricing, rethink about how short this recession may be, some suggesting it may go on longer, it may be a w, not a v. Do you believe in short and sharp . Bob i do. A sharp drop in improvement, but at a much slower pace. It will be choppy, not like a straight line, as we experiment with opening up different points of the economy, deal with some setbacks related to businesses not turning on. Lets hope not, but the possibility of second waves of coronavirus. It will be choppy. I think as we turn the economy back on, coupled with a massive stimulus in the system, monetary and fiscal, there is a chance we will see some better Economic News of the bottom into the end of the year. Vonnie is it time to take your money off the table when it comes to bonds . Some say you would have to be crazy to buy bonsai now. Bonds right now. Bob im in that camp as well. Ising a 10 year treasury probably not a very good deal. Course, is that we have economic recovery and song return of modicum of growth, and we will get that. Bond market treasuries in are still, i think, suggesting there is trouble out there. We do these 10 predictions every year, we revised them for the first time in history. Our guess is by the end of the year we will have a one handle on the 10 year treasury yield. Amanda i want to talk about where you are looking to put money. You still believe there is value in cyclicals . Bob for the next leg of economic growth, yes. I will hedge that by saying dont give up on a lot of what got us there. This is the third massive, exogenous shock. The first was the portfolio insurance of 1987, 9 11, and now the coronavirus. If you look at the first two, what led after the decline in the middle was the same thing that was leading before. What was leading this market . Technology, secondary health care. Those sectors will do well, maybe on more belly inside technology, less growth, but i would wait for economic improvement before making that significant change of pace. Vonnie what is the appropriate multiple for the s p 500 right now . Bob thats a great question. The second question is what is the right earnings to put that multiple on . Im guessing earnings of 1. 20 to to 1. 60s year, 1. 50 next year. If we look at next year and you multiple on that, that gets you to a level around where we are today, so it is hard for me to pound the table. I think the market is a little ahead of itself in the short term. I would wait for red days to do some buying. Vonnie thank you so much. That is bob doll of new been nuveen. Coming up, we are speaking with citizens financials ceo bruce van saun. This is bloomberg. Vonnie this is Bloomberg Markets. Im vonnie quinn in new york. It is time for the bloomberg quick take. One of the biggest questions about the coronavirus pandemic is how and when it all ends. There is a consensus that the pandemic will only end with the establishment of herd immunity. That is when enough people in a community is protected from the pathogen and it cannot take hold. That can happen through a vaccine or when enough people are infected and develop resistance that way. The public should not expect a return to normal soon, though. That untilndation, daily cases drop consistently for two weeks. Specialists have called for an immediate intermediate state. Schools and some businesses would be open, but people would be encouraged to keep a distance from each other. It cases rise again, restrictions could be put in place again. As governor prepare for a potential reopening, the top five wall street lenders have put a five si 25 billion to cover bad loans. Citizens financial is setting aside 600 million in Loan Loss Provisions in the first quarter. Joining us now is the ceo bruce van saun. Congratulations, the stock is leaving the s p 500 today leading the s p 500 today. What made you decide on that number for credit loss provisions . We are following a new accounting pronouncement. The current loss product. You have to go back and run a bunch of macro scenarios and estimateseshening the on your book. It was really a challenge. March, it looked like the outlook was worsening, so we came up with a scenario right at the end of march. Went through all of the modeling and determined 600 million was the number that would boost our allowances to levels that should allow us to cover loan losses under the scenario that we were working with. We will wait and see. Point,assuming, at that that we would be in a vshaped recovery, so a fairly deep recession in the Second Quarter, and start to see recovery in the second half of the year. Debate, still some uncertain as to how things play out, how people get back to work, when the economy rants back up. We will have to go through the exercise again and the Second Quarter, see if we put enough aside. As one of the businesses at the frontline of helping Small Businesses and hearing their requests, what is the most common theme you are hearing from small business, what do they want from you right now . Ppp was ahink the great idea, was vastly oversubscribed, so it needs more funding. That is what we are hearing. There is a number of our customers who were able to secure sba funding but we still have a queue of additional folks. Weve like to see the Administration Work with congress and put that additional funding in place. We can rapidly disperse additional funds to businesses who really need them. Vonnie you are involved in commercial loans, home equity lines of credit, regular deposits, where do you foresee that we will see the most pain . Are you able to forecast where the consumer will come out of this . Bruce our consumer portfolio is well diversified across a number of portfolios. We have had a bias toward super prime and high prime borrowers. We have a strict credit appetite. At this point, we think our portfolios should be in really is reasonably good shape. I would say what we are watching is the liquid seas delinquencies. It is economy stays shut for longer, people will suffer, people will not have the income coming in, the stimulus checks will run out, and there will be some distress. We are trying to work with those folks, have made provisions for forbearance, waiving fees and the like, to try to help people get through this rough patch, hopefully get back on their feet. We have done that also with Small Businesses, trying to get them into the ppp program, offering them forbearance to bridge this period. Similarly with larger companies, we are working with companies to try and offer forbearance, extend payment terms. What is really important for the banks is to use their capital strength and Balance Sheet to be there and support their customers, help them get them through this challenging period. There is certainly talk that some banks, especially smaller regional banks, may not be able to weather this storm. Do you think there will be any number of those, whether that could threaten the stability of the system . Bruce we went through the last crisis, there was a lot of Regulatory Reform that capitaled prudent levels, liquidity and funding positions. I think the system overall is in pretty good shape. The Smaller Banks also have generally reasonably good capital levels. We will see. If it is a vshaped recovery, i dont think youll see many bank failures. If it is more protracted and there is more pain, we will see how it plays out. Generally, the good news is, the Banking System overall is in much better shape than the last time we had the Great Recession in 2008, 2009. Also, the strength of the Community Banks is looking after their customers, so i think that is also in their favor. E see a round of consolidation after all this is over, would you be looking at any banks to gobble up . You think that youll be able to retain all of your staff . Point i think at this folks are really just focused on making it through this challenging period. You rarely see deals done in these challenging times, you dont know what credit risks lie on another companys Balance Sheet. Unless it is a distressed sale, you would wait until you get to the other side of this before you see consolidation. We have actually focused on ebasedacquisitions of febas d businesses, and that has worked out well for us. We bought a Mortgage Company in may of 2018. So as rates have come down, we have seen a huge refi boom in mortgages, and that has allowed us to print Record Numbers in mortgages, helping to offset the lower rates on our net income. We bought a wealth manager, three m a boutiques, and really just doling out our capabilities so that we can do more for our customers. On the colleague front, we have been able to shift working from home very effectively, have taken good care to make sure that our colleagues are protected. I think the spirit inside the company is quite good. People are galvanized, energized, feel it is great to be at citizens. We are going to amount to make sure that our customers are taking care of. Amanda we appreciate your time today, bruce van saun, chairman and ceo of citizens financial. Coming up, the chair and ceo of Conoco Phillips spoke exclusively with alix steel about decisions they are making on production curtailment. That is next. This is bloomberg. Amanda earlier, alix steel spoke to Conoco Phillips ceo ryan lance. The market has been difficult, inventories have grown at record rates, and that is delivering low prices. You cannot just look at the market price, you also have to look at the prices companies are receiving. We looked at that and said those are too low for us, we are more value driven. Store our oilto in reservoirs so we can produce at a later date. Your previous speaker and yourself talked about what is happening in the back end of the curve. We think with the prices we are on accessible to us. The reason we can do this, we have a strong Balance Sheet. We entered this downturn with over a billion dollars in cash, 14 billion in liquidity. We just refuse to sell our crude at these prices. Your coo yesterday talked about the fact that you could cut output further. Under what conditions would you do that . At thee continue to look next marketing months, so next week we will think about june volumes, Start Marketing or june volumes. Our expectation is we see a softer market in june relative to the announcement we made in may. We expect to curtail more production in june, given the early indication that we see on prices for that particular trading month. Think, overall, the industry in the u. S. Has done enough, or are there more cuts in general to come . Do you think that will be voluntary or involuntary . Ryan i think we will see both. Involuntary cuts are coming, storage will be full. It doesnt matter if you can ,roduce or get to the water global inventories will be full. Everybody is probably going to be experiencing some involuntary cuts across their portfolio. Those that have a strong Balance Sheet that can cut and dont need that one dollar a barrel of cash flow will probably, we think, be making voluntary cuts as well, similar to when we announced in may, what we intend to do until we get acceptable prices for our crude. Alix what is an acceptable price for your crude . Ryan that is kind of a competitive sort of value. We are making month to month decisions on that. We have a framework we use within the company. We think about that, and will make the decisions on a month to month basis across our portfolio globally. Alix let me ask you in a different way. Is any of your production in the u. S. Oracle where getting positive Free Cash Flow at 20 a barrel . Ryan all of it makes positive cash flow, except for maybe some of the canadian heavy crudes. Because wet in there feel like we are not going to be covering our variable associated costs. It is a value determination for us. We believe in the next few months we can sell the screwed for a lot more than what is on offer from our customers in may and june today. Can you compare and contrast what you did in canada versus the u. S. . Are you bringing back production in canada, are any of these production cuts going to be permanent . Ryan we dont believe they will be permanent. We have taken our canadian production down to the lowest level possible without doing any damage to the reservoir. Our intention is, when the markets improve, and they will once this coviddriven demand starts to work its way through the system, activity reductions that have been going on in our producers, once that starts to take hold, we expect the back end of the curve to start coming back up. Return,emand starts to we expect prices to recover. Then we can restart production. We are not doing anything that causes us longterm damage. We can restart all of these and get back to where we were before we curtailed production. It is 2 00 in new york, 7 00 p. M. In london. I am scarlet fu. Romaine and i am romaine bostick. Happy friday. This is Bloomberg Markets the close. It is going to be an up week for the stock market. Sometimes, you dont fight the price action you are seeing in the market. The s p 500 headed for the second straight weekly gain, a modest gain. Our leaders, energy and industrials. That is the leadership that brought you here on this day. 1. 7 on the day. That is about what you are getting out of the week. In europe, we saw an Even Stronger rally. It went up 19 from the march 18 low, so just a little shy of what would constitute on a tech