Huawei. The s p 500 down 0. 9 . Dire Economic Data followed by confidencey good data, according to the Michigan Consumer sentiment data. But we are checking the innards of those data to see what is going on there. The 10 year yield at 63 basis 28. 53, up crude at a good 3. 5 today. Lets get to europe. Germany plunging into recession, gdp falling 2. 2 in the first quarter. Bloomberg has been speaking with executives of German Companies about the pressures caused by the pandemic. Have a listen. The times are turbulent and they are complicated. The real question everyone is asking, how quick will be recovery come . The uncertainty remains. There is still very much uncertainty, so from that point of view, we remain kind of cautious. I think it is too early to call an end to the globalized world. We assume a ushaped in area into year end. We are presuming recovery on the one side, which is important. We dont know exactly how the restart and the unraveling of the current lockdowns across the world is going to work. There will be a time after corunna. After corona. I always say to my people, the night is darkest before the dawn. In our lets bring correspondent out of brussels, maria tadeo. Germany is a lot better than the u. K. , but the slump is pretty phenomenal. Talk to us about the context of it in terms of other European Countries gdp data. Maria you are looking at 2. 2 contraction. This is the biggest economy in europe. We always look at germany because it does have big implications for the rest of europe, and it is true that you are seeing an economic hit. This is not good for german industries, and probably not going to be good for exports. At the same time, we are going to see the fallout into q2 because the lockdown was already in place, and the easing of the lockdown is being done very gradually in europe, precisely because the governments here are worried that we could see round two of coronavirus, and that could be even more detriment to the economy. But when you compare germany to the italian contraction, to the french, the spanish, those declines were in the region of four to 6 viviana as a compare of 4 to 6 , so as a comparison, germany is doing better. The french lockdown was not as severe as germany, and also came out later. The were able to keep economy going for longer. Vonnie finance ministers our meeting as we speak. What can they come up with . What do we anticipate they might say . Maria we are still waiting for the big stimulus package that they have not really been able to translate into anything significant on paper. Theres been amounts that have been floating around for 500 billion euros, but the problem is that european leaders do not really agree on this. Finance ministers meeting today actually dont have a lot to work with, and we are not really expecting anything to come out of this. What is interesting, however, is the state a discussion. Theres countries that will be able to prop up their companies and bailout a lot of the companies. Weakeru hear from European Companies is they dont want to be in a position where they are not able to defend their own industries, and this could potentially create a twotier recovery. That is the concern, that you can see weaker countries and then strong countries, the european economy early split. Not a that is definitely new idea by any stretch, but a very dangerous path to go down, as we know. Talk to us about this story we have been breaking over the last hour or so, that lawmakers are looking to maybe remove some redtape and scale back regulations that had been being put in place since the financial crisis. Maria yes, and this is such a uturn from what we had been seeing from european authorities. I am sure you remember, it is very new. This took a long time to be able to enact. We already knew the industry was not happy with it. They actually felt that this increased the cost of doing business, and there was a lot of paperwork was essentially a burden for some of these companies and banks that had been for a while now saying that it should be revised. We now understand there is a discussion perhaps to roll back some of the elements to allow these companies and institutions to be able to feed more into the real economy, to be able to kickstart the recovery here in europe and do it quicker. It is something that actually feeds into the narrative we are seeing from the you now, saying the old rules should not really apply in this situation because it is such an exception, and this is such a huge shock for the eu. Vonnie is it possible the ministers will Say Something about that after todays meeting, or is that not on the agenda . Maria they could be asked about it, and this is something that we understand is not really official. It is not in a stage that is ready to be signed off. They could be asked about this today. They could also signal, perhaps not going into detail, that they are at least willing to reconsider and perhaps cut down the redtape if that means europe could have an advantage over competitors, but it also means that some of these countries that have been so badly hit could actually get going much quicker. This is really something that would not find a lot of opposition to remove some of the hurdles, if that means the recovery would happen quicker because ultimately, that is the goal here, that we can get back on track quick. Vonnie speaking of back on track, i want to move to britain because brexit negotiations are ongoing, too. We are now seeing rhetoric heating up once again. Michel barnier out in the 80 talk our in the 8 00 hour saying he is not optimistic about brexit talks. We are at boiling point once again. Maria and this is a negotiation that is definitely not on track. The two sides are now saying all of the sticking points that were problematic just a few months ago, they continue to be. Negotiations have been ongoing, but we havent actually made any progress, and that goes all the way from fisheries to what to do with a level Playing Field but the europeans are pushing for, and the European Court of justice, which politically is very toxic and very complicated. The two sides today took a really pessimistic tone. They say while we are running out of time, they are not really changing the redlines. U. K. Has repeatedly said it is not going to ask for extra time to get a trade deal, and that means perhaps that by the end of the year, we could be in a situation where there is no trade deal at all. Theres still another round of talks scheduled in june. That is seen now is a make or break moment, but you do have to factor that these negotiations are difficult to do just from a logistics perspective because they are not able to travel. The teams dont see each other. They dont come to brussels. They dont go to london, precisely because of the coronavirus. The whole timeline has become really unexpected because nobody could predict that we would be in this situation, where you are not even able to be in the same room. Vonnie maria, thank you so much. Over thebe a busy bee next few months, no matter how much europe stays in renting orchids to reopen area that is bloombergs maria tadeo stays in quarantine orchids to reopen. That is briggs maria tadeo that is bloombergs maria tadeo. Hasking news now, brazil lost another health minister. He has stepped down as the Global Pandemic continues to wind its way through brazil. The Health Ministry is reporting yearly 14,000 new coronavirus ,ases in the 24 hours yesterday and again, this is the Second Health minister that has stepped down in brazil. As you can see, the brazilian real taking a bit of a stance on that one. Strengthening, in fact, and then weakening again. Lets check Global Markets now with taylor riggs. Taylor starting in the u. S. , you are seeing a little bit of weakening after yesterday. We were weaker, and then you had some rally into the close. One exception to this is the russell 2000 after Consumer Confidence came in a little better than expect, so some of the smallcap domestic stocks are doing better, but overall, some of the major averages are getting hit i a slew of that. Retail dropping by the most on record, production dropping 11. 2 . I want to flip up the board and really highlight retail sales. As you can see, dropping 16. 4 in the month. Wells fargo says every category but four had the worst month on record. The only categories that didnt have record drops were vehicles, restaurants, building materials, and on store retailers. Perhaps and nonstore retailers. Perhaps some improvement showing signs that we might be bottoming out. I want to take a look at some Department Stores because they are actually doing better than expected, despite the fact Department Store sales fell 29 in april. Dillards, for example, analysts are looking at the good in the quarter and ignoring some of the ugly that they had. Analysts are really happy that they are aggressively promoting Products Online and cutting prices to bring down that inventory. Finally, we continue to take a look at the sox, the big underperformers today. Foxconn overnight said that revenue in the Second Quarter was going to be worse than the first quarter, so that pressured a lot of the chipmakers. Then again this morning, the u. S. Announced rules to crack down on huaweis ship supply. This is further escalation against the chinese company. It could further freeze out huawei in getting the chips it needs to make a lot of this equipment. Vonnie definitely castigate definitely casting a pall over these markets. Coming up, u. S. Retail sales plunging 16 14 in the headline number in april. 16. 4 in the headline number in april. What will that mean . This is bloomberg. Vonnie live from new york, im vonnie quinn. This is the european close on bloomberg markets. Lets check in on the first word news. Heres ritika gupta. Ritika House Speaker nancy pelosi going ahead with a vote today on a 3 trillion democratic only virus relief bill. The measure has no chance of getting signed into law, but pelosi is counting on parts of it generating pub look support, such as aid to states and more payment to individuals. That could force Senate Republicans into negotiations for another round of stimulus. China is denying it tried to cover up details of the coronavirus outbreak. Beijing said today it didnt know until january 19 how infectious the new disease was. China says it released that information the next day. The Chinese State sounding the rm about the coronavirus according to documents seen by bloomberg, italy will allow citizens to move freely between its 20 regions starting june 3. Retail stores and other businesses will reopen may 18. Another bad month for retailers in the u. S. Sales fell by a record amount for the second month in a row. In april, they plunged to a worse than expected 16 point 4 . The coronavirus cap Stores Closed and americans at home. Plus, unemployment has been soaring. 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. Im ritika gupta. This is bloomberg. Vonnie thank you. After this mornings dismal retail numbers, wall street is searching for a data point that will spark optimism and point to better times ahead. Is it out there . Joining us to discuss is yana barton, equity Portfolio Manager at eaton vance. Can i ask you about the confidence data this morning . It was surprisingly strong. This is something we didnt see at first blush . Yana i think as before, we stated that it is a sentiment figure, so it is sort of a soft line versus a hard number, which is the retail sales. So ultimately, i think right now the market is reacting to the retail sales number, which obviously has been very poor, the 16. 4 decline. That being said, i think there are some bright spots. I think the ecommerce and online, nonstore share continues to be the bright spot. If i just maybe take a minute to highlight how strong that is and how important that category is, it is massive. Just theink about ecommerce in general in the u. S. , it is still about 16 billion of a 5. 5 trillion pie. Even with the accelerated trends month over month and over the past two months, you still have a long way to go, and globally it is 25 trillion. So i think the stocks of companies that are providing the goods and services and the backbone to structural ability to do Digital Payment and delivery and infrastructure will continue to do well, and that is probably the bright spot i would take away from the retail sales number. Vonnie the nonstore sales category, which does include online sellers, was up 8. 4 , but is hard to know how much is pulling from other retailers and how much will be a permanent shift and permanent growth of that pie. You are suggesting it is permanent. Yana yeah. My household is one of millions, but certainly the change in spending dynamics that have taken place today, just as you think about grocery and other deliveries, i think we are kind of entering this Digital World across the board. Think about working from home. Think about how our kids are getting their education, from a social perspective, others. Maybe we can say that not all of it is going to be permanent. I certainly believe that a significant portion of it is here to stay, and i think, more importantly, i think it highlights the importance to focus on growth while the markets will continue to be jittery as this unevenness and a twotiered economy takes hold. I think investments that highlight higher growth, both in terms of revenue cash flow and earnings streams, will remain in demand and command a premium. You have seen that to date in sector leadership, and i think that will remain in place. Vonnie you are obviously running that fund, the equities ,ortfolio, at Eaton Vance Growth opportunities wise. Are you looking at traditional Growth Companies like alphabet and some of the tech names . Are you looking at new companies . Give us some ideas. Yana i think you bring up a really great point, which is growth is coming in all shapes and sizes, and it is not only to traditional growth areas of the market. While Information Technology remains the backbone of it, we are finding phenomenal Growth Opportunities with the health care space. Health care is a perfect example. While it has done relatively better relative to the s p 500 to date, there are areas of the market like life science and med Device Companies that have been left behind relative to the biotech side of the equation, so that is an opportunity for us to capitalize on. And then Communication Services and some of the Consumer Discretionary names, again, while the Consumer Discretionary space was hit the hardest, obviously, given its exposure to leisure, hotels, restaurants, and other areas of the market, there are a lot of other opportunities that we believe here,ansitory, a pause and will remain places to be. For us, across the board, even in industrials, which is more cyclically oriented, there are areas of the market offering that sort of logistics, efficiency, and Asset Intelligence insight, and sort of Smart Technology that is shunned by the market right now, just because everything is being grouped as one area of the market, and we think that is an valuationprovides the support and longterm secular opportunity for us to capitalize on. So across the board, lots of opportunities. Vonnie what about the likes of uber . What happens to a company like uber . Yana a company like uber that happens to be an investment within our focused strategy is one of those sort of new type of logistics companies. It is a tech company or a traditional Transportation Company . It is a hybrid. I also think a company like uber that has the cash and Balance Sheet and liquidity position, and a variable cost structure, certainly at an advantage versus those that have nondiscretionary and more of a fixed cost structure within traditional transportation areas. So again, that is a company from the longterm perspective that has done a ton of work lately. It is one that, again, we think over the long term means a winner. Vonnie i do want to ask very briefly, you have a lot of retailers in there like dollar general, tjx, some of the lowerpriced retailers. Do they thrive in an environment when peoples wallets are cashstrapped . Yana i think there will always be a place for specialty retail. We are in a world right now where usually, the leading indicator to us is earnings stream. We are just at the later stages of earnings reports, and we will see a lot more from Retailers Next week, but i think you will see pockets of strength where those that are providing the omnichannel or double ways of or multiple ways of grabbing the consumer through online or isk up curbside, whatever it , the convenience aspect of it will remain in demand. So i think there is a place for it, and the retail again is not just food and clothing. It also happens to be within the auto space and other areas of the market where theres less of a condition every span. Vonnie thank you for your time today. Yana barton of eaton vance joining us there. This is bloomberg. Vonnie live from new york, im vonnie quinn. This is the european close on bloomberg markets. We are just about five minutes from the close itself. Lets take a look at where european markets are trading. We are higher on the session in spite of dim Economic Data out of germany which showed a contraction of about 2. 2 in gdp. The dax has been the laggards throughout the session. The cac 40 has been the laggards throughout the session. The ftse 100 up 1. 7 . This is bloomberg. Vonnie lets take a look at where european markets are trading as we head towards the close. Markets shrugging off the contraction in germany and indices making gains. Across the board, with perhaps the exception of the cac 40, we saw gains from most if not all of the session. This on china data overnight, which shows production was coming back online in china and that gave a boost to the markets , particularly basic resources. We will see those Companies Made gains. The dax up almost one point 1 and the ftse 100 up a full percent after a difficult day yesterday. Bringing the overall stoxx 600 to a gain of. 5 . We will see in a moment where it settles but that is where we are. The british pound using ground versus the u. S. Dollar. We will have the mpc next week and with Andrew Bailey saying note negative rates for the u. K. Just like we had jay powell saying the same about the united states. Lets move to the next board and take a look inside some of the indices. Basic resources responsible for most of the rally, up 2. 8 . If you look elsewhere, you saw a decline. Retailers, travel shares, they will all down. Not by a lot but enough to drag most of the indices down from earlier gains. Greenndustries in the after the industrial output figure in china increased in april. The First Time Since the coronavirus outbreak. It could bode well for other economies. I want to point to deutsche post. It rose 3. 5 . It was one of the Outstanding Companies throughout the can to drought the coronavirus pandemic. Lets move to the united states. Hours just a couple of into the session in the u. S. , but we are seeing declines. Plunging, and i mean plunging. Only online sales showed a gain for the month of april. We did see a better confidence figure in may, but it preliminary confidence. Dirething else has been so it is hard to know what is going on in the economy. And the500 down. 7 , nasdaq down. 7 . The president not laying off china. Stressing its chip supply for huawei which is affecting Companies Like taiwan semi as well. Lets take a quick peek into the s p 500. You see some Companies Like nordstrom and carnival are higher. A traders market at this point. We know how those narratives are going. One of the stories that is obvious is the china story, where you can see qualcomm down more than 6 . Other companies affected by the decision if President Trump carries out on his threat. Lets get to something a little more fun, and sign some of the economy as we are talking about are beginning to reopen. A test this weekend coming for sports. In germany, we have the bundesliga trying to start its games back up again. We will see a game on sunday. There will not be any spectators at we have a lot of precautions in place such as masks on the coaches and precautions with the players. To tell us more from berlin is our reporter. A lot of people not just in germany but around the world will be excited to see the bundesliga starting up again. Itll be strange to watch a stadium empty, wont it . Be very strange. The leak clubs and broadcasters have said they have no choice but to restart because there is a lot of money at state at state in soccer, as we all know. A lot of money ats stake in soccer, as we all know. [no audio] guy vonnie talk to us about how many games are likely to be played if this first timeout is a success. Inl there be another game the quick future after that . Stefan yes. Basically there are tennis games and there is hope it can continue for the next week. We will start off on saturday with a round of games and another game on sunday. The big shocker against dortmund and officials are hopeful they can make this work after making thousands of test with players and staff in the past weeks. What about other sports . Will this be a good example for other sports, not just in germany but around europe to get back into action . It is not just the fans that want to see this happen but tv stations are desperate for content. Everybody say getting a home everybody sitting at home is waiting for their favorite players and sports to come back online. Stefan definitely. The head of the bundesliga has said he has been in touch with the National Football league in the u. S. , major league baseball, soccer competitions around the world, we will all be watching how things will go, how officials can ensure the safety of players, staff, and everyone involved, so this is a big test this weekend. All eyes will be on germany this weekend. Vonnie all right, stefan, thank you for contribution today. That is Stefan Nicola from our berlin bureau. Lets check in on first word news. Here is ritika gupta. Ritika nancy pelosi is going ahead with the vote on a virus relief bill that has no chance of being signed into law. On the democrats are backing the 3 trillion measure. Pelosi is counting on getting public support for some parts of the bill such as aid to states and extending unemployment benefits. That could for Senate Republicans into having to negotiate another round of stimulus. In new york, andrew cuomo has given the green light for five of the states 10 regions to start reopening. New york city is not one of them. It has not met the seven healthrelated benchmarks to start lifting those restrictions. Germany has entered a historic restriction with its biggest slump in more than a decade. The German Economy shrank 2. 2 in the first quarter. Less than two weeks of official lockdown. In that period it continued spending and capital investing. Government spending helped stabilize the economy somewhat. In the u. K. , they say there has been limited progress towards a close brexit deal. Britains chief negotiator blames what he calls the eus novel and unbalanced proposals. He also criticized the eu demand for criticizing fishing orders. Politicians need to decide the way forward. 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 ritika gupta. This is bloomberg. Vonnie . Vonnie much appreciated. The dax in germany up 1. 25 . The ftse 100 up 1 . Even the cac 40 managed a little again. A. 1 gain. The cac 40 was the worst performer. Italy was little bit flat but the cac 40 dragged lower by chipmakers and also airbus down about 1 . Salafi carrying the losses we are seeing in paris. This is bloomberg. This is bloomberg. Or andrew have evan cuomo updating us on the daily density new york. We have Governor Andrew Cuomo updating us on the daily deaths in new york. The death number is going in the right direction in terms of going lower, but it is still a lot of people dying. Hospitalizations, 431. That number has inched up slightly over the last few days. Governor andrew cuomo talking about the economy reopening, certain parts of new york reopening. He says those decisions are not arbitrary and announcing 132 people died in the last week or hours in new york. 135 companies were downgraded to ccc or below in april, putting pressure on the cielo markets. Some investors on the clo markets. Ccc investors find investors. Bostick. S is cinelli is sonali basek. Sonali given that you are active in the riskier parts of the market, i am curious how you are weighing risk and reward . What are your calculations in terms of default risk and what is an investable opportunity . Question. D today i think the downgrades from march 20 to today on march 20 they were roughly 150 or 60 year today. Have yesterday we downgrades, whether it is moodys or s p, somewhere in the neighborhood of 700 plus. We seen about a five times downgrade move just in a month. For us to answer your question directly, this is a great opportunity for folks like ourselves. If you do the math, the total size of the market is between a 200 billion dollar and a 300 billion opportunity today. It is the biggest downgrade move in leveraged debt in the history of leveraged credit. Ourselves,pants like it gives us a great opportunity to look at the large universe and only pursue those companies where we stress our assumptions, both for Business Model and ultimate liquidity. , it poses a lot of opportunities, and we have looking been phasing in at the universe for many months, actually. Given that, you have done a lot of calculus, can you explain your thoughts on what you think the riskiest part of the markets are now . Are there Certain Industries you are looking at that are more concerning than others . James we are. We have biases for sure. We are very much looking at the issues with brickandmortar retail as an example. Business is facing certainly going to have challenges unless they have a substantial ecommerce presence. Thate looking at companies have sustainable Business Models even in this environment, but if you had to wrap it up concisely, it is hospitality, it is potentially gaming, hotels, travel related, etc. Those industries will be challenged for a while. Vonnie is interesting. Are there any systemic risks, are there any corners of the market where there might be even ripple effects from the pain in the cielo market . T . In the clo marke james i think in january of last year we touched on the issues. Today the issue in the clo market is a confluence of three events. , and theargest market largest market with the most leverage on Balance Sheets. Year, theo the highest multiples are being paid for companies and senior debt of those companies which is six or seven times more total debt than that. Events ofave the covid19 completely impacts many of these businesses, most businesses. Laste same time, over the 30 days, in the course of about two weeks, you had every company that had a revolver was drawn down. Now we have a much more levered credit when you did just 60 days ago. That is why i think the rating agencies have been so quick to downgrade these assets, these loans, which wreaks havoc for the clo structures, because most clo structures can only deal with the limitation of 7. 5 . Today, about 90 of cielo structures of clo structures are exceeding their ccc limits, which creates Portfolio Management issues for sure. It also means potentially. Redits will be sold for folks like ourselves, we can take advantage of that. That is the dynamic we have had today where we have never seen the confluence of events like this. It is sort of a perfect storm for clos. Sonali when youre looking at are feeling that al the pain, what are the types of sellers you are seeing . Who is forced to be selling right now . James i think it is concentrated in two groups. One is the clos. They are trying to comply with their structural confidence or tests their structural covenants or tests. We see in unwinding of potential clos. You folks have gathered articles recently on that. Where static yields were done, which means there were warehouse portfolios to be structured at some point. I also think you are seeing forced selling from hedge funds do to elder Asset Classes trading off significantly, so they are unwinding these types of assets as well. I think those are the three main groups. Vonnie cannot wait to hear how they perform and how this part of the market performs going forward. Our thanks to you for your time. James zenni. Also our thank you bloombergs cinelli bostick sonali basak. This is bloomberg. Vonnie live from new york, i vonnie quinn. This is the european close on bloomberg markets. Lets get to our stock of the hour. Taylor todays stock of the hour is canada goose. Earlier falling as much as 9 after analyst at bank of america cut the stock to an underperform on declining revenue. It also comes as retail sales this morning show to more than 60 drop in april alone. 6 drop in april alone. A lot of the analyst commentary had to do with where the company gets it sales. He said there is likely to be significant yearoveryear decline in revenues due to a drop in tourism. He thinks 50 of north american and european demand comes from international tourist, mainly from china. That will be restrained through the end of the year. About 30 ofets its sales from the u. S. , 29 from canada, and then the rest of the world like europe, they get 18 . 50 of that world comes from international tourists. That could present a headwind. Flipping up the board i want to broaden this out to a story about retail sales in general. As you know, those were the big numbers we got this morning. A more than 16 drop. The only winner was online sales, which jumped 8. 4 . The bank of america analyst cited concerns that canada goose relies on mallbased footprint given their exposure to stores like neiman marcus, nordstrom, bloomingdales. Clothing sales dropped 79 and Department Store sales fell 29 . All of those are creating some headwinds for the company. Finally, if you take a look at a chart i am showing inside my terminal, you can see broadly retail sales, not a good month. Analysts are hoping this is the bottom as the country starts to reopen in april and may. We will hear from canada goose on their next report on may 29. For now, bank of america cutting the price target to 29 Canadian Dollars to from 34 Canadian Dollars. Vonnie of course the Canadian Dollar has been moving all of itself as well. In just a few minutes, President Donald Trump is scheduled to deliver remarks on vaccines element at the white house rose garden. Joining us on the phone is Bloomberg White house reporter mario parker. What do you expect the president will say . This is the first of its kind, this press conference. Mario right. The president is expected to introduce the two gentlemen who ,ill be leading the effort operation work speed. He is expected to name general turner, who directs u. S. Army supply chain, and then also will besk executive named Senior Advisor that project as well to try to develop a vaccine. Vonnie indeed. What we know about the possibilities of vaccines and how much of what the president says will have basis in reality, even if it is in the future . Mario sure. It is very optimistic, as you alluded to. Secretary as are, who is in stock secretary azar, in charge of health and human services, this morning in an interview on fox said this is an optimistic and lofty goal. Has being said, dr. Fauci set a vaccine could be developed in about 12 dating months. Some critics say that is unrealistic 12 to 18 months. Some critics say that is unrealistic. President trump is trying to get a vaccine, through this initiative, by the end of the year. Vonnie calling it operation work speed. Administration officials have been trying to compare it with the Manhattan Project and so on. Will there be any kind of timeline for us today . This it will probably be lofty goal the president has set forth to have something by the end of the year. He mentioned to reporters the ball yesterday. He also started mentioned to reporters yesterday. Mike also started casper and general millie the president has said he is starting to mobilize the military and hopes that by the time the end of the year rolls around and the military we will have a vaccine and the military will be used to deploy the vaccine. Vonnie the president hoping for a bump in the polls out of this. Our thanks, mario. We know you will be covering it. Broadcast on Bloomberg Television as well. Our thanks to Bloomberg White house reporter mario parker. Lets take a look at where we are markets wise as we head to noon. We are down. 75 on the various indices, the nasdaq as well as the s p and the dow. All down together as it is right now. We did have an update in europe, but not so much taking that tone in the u. S. We will bring you President Trumps remarks as soon as he begins. That is coming up next on balance of power with david westin on Bloomberg Television and bloomberg radio. This is bloomberg. From new york to our Bloomberg Television and Radio Audience worldwide, welcome to balance of power were a lot of politics meets the world of business. We are waiting for President Trump who will make remarks from the white house about initiatives to fight the vaccine. In the meantime we have economic numbers that are a big story themselves. We see the markets reacting, although not quite as much as you would think given how dismal the numbers are, whether as retail sales, industrial production, or consumer sentiment. To take us through that we are joined by michael mckee. Thank you for being here. The numbers are pretty bad, whether they are better or worse than people expected. The old you know theng, sell the rumor, sell fact. It was only a question of how bad the numbers would be and they are as bad as we thought they would be. American