For the s p 500, 139 above the moving average. Romaine on a weekly basis, there are only two stocks that finished in the green in the s p 500, and those were both speculative plays around the coronavirus. Sector andal quick looking at, Energy Stocks, small energy up 4. 5 . This is a sector that got up litter rated. No new bond issues. Lets check in with our reporters and see what they are keeping an eye on. Abigail, lets get started. Abigail lets get started. This is the worst week since 2008. As they had that small move. He said watch after 350. That is when the by that can happen. That might be why we saw the better clothes than expected, but when we put it in the theyxt of the longer term, absolutely sliced through the 200day moving average. Here is the moving average and blue. In yellow, the 100week moving average. When that has happen in the past, for the most part, it has signaled that we are likely to go down to the 200day moving average, which suggests more bearish action is ahead that could add more volatility. Thanks. I am looking at gold. Gold is the true safe haven. Treasuries have rallied with the yield. They are at 14 basis points. Gold is down more than 4 on the week. Than 3 on thee week. Thanks. Oil continues to slide on the fears of the coronavirus hurting global demand. This quickly spreading coronavirus is hireling Global Markets deeper into losses, as we all know and wti is down for the year. Ricesien said that if continue to slide in wti they could go as low as 40 a barrel. Thanks, renita joe thanks, renita, and the rest of the market team. And kb. Us, bill orlando bill, i would to go to you. What would constitute a good headline . There are different times of volatility when you are waiting for something. Maybe if its the eurozone crisis you are waiting for germany to spend more money. Maybe youre waiting for the fed to do something. That investorsng needed to do . Got one a couple hours ago with jay powell saying the fed was prepared to do something. Our view internally is the fed is going to cut rates internally. The curve has inverted based on the fed funds rate at the treasury yields. To cut interest that the fedfact has our back, i think this rally may have been related. With the coronavirus we are cases plateau. The mortality rate outside of china is less. Ultimately i think that would be good news. Romaine when you look at the price action and take stock of where the market was trying to go this week, do you get a sense that people have a genuine sort of expectation that Global Growth and u. S. Growth is still relatively intact . You may have a speed bump in q1 and q2, but this idea that looking out over the years things will end up where people thought . i think people want to hang onto that. 2020. As the goal in that was the speedbump and maybe its turning into a speed bump. But you have not seen a lot of people capitulate on their emergingmarket view. Its still very undervalued. Not capitulating. We will have to see how this develops in the u. S. Will be do think there over buying of treasuries as stocks look for a bottom . If there is this thens we will get as an indication that the outbreak is turning, that will be reflected in equities, but will be demand for treasuries remain . Phil that is an interesting question. 10 , a monthnt, ago it was 165. We are at an alltime record low right now. Treasury yields are dramatically under bought. The vix. Katie was talking about that. 50. As gone from 12 to on a nearterm basis, the equity market is down 16 . It was dramatically oversold. Typically when you get that combination, that tends to point. An inflection a reversal. Scarlet a testing of that. Phil we will say. Obviously we will see more of that next week. I think we need to see what saturday in South Carolina looks like. Ad come next wednesday with little more information and projection on the data, investors will feel more comfortable going one direction or another. The democratic primary, youre talking coronavirus, do you think that is something that has been disruptive to the markets . Phil no question. The narrative to reelect the president has been on the strength of the market. If we go into recession because of the coronavirus, and that is not our call. That opens the way for a democrat. The market is definitely were tod if sanders win, what with the fed due to transition from market friendly economic policies today to market unfriendly economic policies. What would that do . I think some of that was reflected in prices over the course of the last seven days. One when things thing that seems to get lost, a lot of people thought that were high. Arguments it was not high. But you talk about forward pe on the s p 500, down at least two points on that this week alone. Pullback. Have the is this the pullback we needed. And once the coronavirus gets contained, you then have a reason for another rally. All of that is coming from price right now. You do see the forward pe up us yes come down. You see downgrades there. That, thatget past would definitely be bullish. It will take a while for companies to assess the damage from the outbreak. Absolutely. Julie our thanks to our guests. That does it for the closing bell. Whatd you miss . Is up next. To the largest Industrial Gas company on how the coronavirus could impact its supply chain. This is bloomberg. Romaine live from bloomberg World Headquarters in new york, i am romaine bostick. Scarlet im scarlet fu. Joe im joe weisenthal. Whatd you miss . Romaine the world health globalation raises its virus potential. Companies were already altering their supply chain. We will discuss whether the coronavirus is accelerating the shift. And chairman jay powell has a statement that he is prepared to protect the american economy. All right, for more on the market, we are joined on the phone by fed chairman michael holland. Im wondering what you make of today. In extraordinary final moments, the nasdaq closing in the green, other indices below, well off their lows. Is this just like every other hour this week except for the last one. Last one . We have a good suspicion, joe. I was watching carefully. I was reminded of another part of history when friday was an important we can talk about that in a second. You presume the algorithms were wrapped up. It acted a little differently today. Possible, thes cruise line stocks, the Energy Stocks, some of the selling seem to be spent in terms of energy and the was a little bit of a and stock market activity. Interesting to see what happens monday morning. Something we is have been keeping an eye on all day, michael. It is a safe haven. What does that signal to you in terms of the people having to raise cash to sell things that they like in order to cover the margin costs. Thehe activity today, action was an indication of something else. At the yield in the bond market. The 10year and the twoyear. Low levels. Vely you have all kinds of crazy things going on. You can see Constellation Brands had to come out. They had corona beer as a name and were down 20 . Its kind of our irrational things going on. Specifically, there is this phenomenon. Expected. S to be and theres no surprise it went up in a hurry. Last year, earnings were certainly not up. A major amount of upside. Was ae that back, it short time. It was not that crazy. It looks awful. There was this idea that asset prices had diverged from fundamentals from the last year, year and a half. But was there any incentive for anyone not exposed to equities, not overweight in equities to jump back in, maybe considering assetis did was ring price bring asset prices and fundamentals more in line with each other . But the good question. Im am sure that some people watching now are out of the equity market entirely. Even as it continues, you do not have 100. 100. Ve to you have to go 10 down with the favorite companies. Actually having been in the business for many, many years, its a great question and thats the right answer. As it goes down, you buy more. Joe letsut talk about yields. You have the 10year treasury at one point 68 . 8 . 1. 6 treasuries have been surging all week and Capital Gains of been quite impressive. How are you thinking about diversification, what do you want to the diversifying to . Know ifsince i dont the coronavirus is an attendant , whether it will cause inflation or deflation there inflation. Iate , you have no room for mistakes. I stayed at the very short end of the treasury. Much currentt so income on the one hand, but i can sleep better at night. Joe that is worth something, being able to sleep well at night. Yes, and a lot of people are happy to have these shortterm fixed Income Portfolio for sure. Michael, one last question. Im going to steal joe weisenthals very good question. You have a viral outbreak in which we really dont have her read on what the fix is eons a vaccine or the outbreak just slowing. In the past, we of the debt crisis, germany, the taper tantrum, or even last december, 2018, it was the fed coming in and saying its not going to raise rates. Whats a positive headline that traders and investors are waiting for . I think the question would be answered in part what we know it isnt jay powell did come out. It didnt do a thing for the market. What would turn the market on its head next week would be a major difference in the momentum of the coronavirus. Instead of getting two or three headlines that are going in the other direction. I think this market could do with the what the crude stocks in the Energy Stocks did earlier today. Scarlet michael holland, really appreciate your. Get some rest tonight. You will need it. Coming up, we will head to the New York Stock Exchange to talk about how the coronavirus could impact the Global Trading industry. This is bloomberg. All right, this week,is the stock market is going into the the Worlds Largest gas Company Exposed to this, and lets go to the ceo of the company, steve angel. He joins us from the floor of the New York Stock Exchange. Think you for joining us. Areess not Many Companies exposed to Different Industries the way that yours is. Can you give us a sense, if you have seen any impact so far from the coronavirus in the supply chain . Steve i think it is important to state up front that we are a global business, but we operate globally locally. Our products are sourced, made, sold locally. So we are not involved in any Global Supply chain. Were not even involved in any regional supply chain. We are not even involved in any regional supply chain. Two weeks ago we give guidance and accounted for what we believe to be the impact, on our business, of coronavirus in china. Joe has anything in the twoweek period since then changed what you see on the ground . We thoughtweeks ago there would be a slow ramp coming out of the lunar lunar new year. Its exactly what happened. If anything, we may be tracking slightly better in terms of recovery. How do you extend that forecasting from italy and its entryimiting outside of the country to the United States, where we have been sold to prepare for a pandemic . Steve we dont see an impact at this point. That is something we have to evaluate every day. If you take a place like italy and the United States, we operate a very big business. We try to prioritize the production of oxygen for medical purposes because its a respiratory disease. Did comment a few weeks ago about the recent acquisition there, and i believe you made the comment about efficiencies you had predicted predictedwas when this was announced several years ago. There were vestiges that were left hanging. I guess that there were questions about the other properties and what may come with them . In terms of the required to vesta schuurs, we have completed those. We still look at our portfolio. Our strategy is to focus on gas and engineering is mrs. There are businesses that both sides brought to the merger. Its not a large percentage. Something we will be looking to work through in the coming months and years. Scarlet steve, you are the gas company. Trial i wonder what your conversations are like . Certainly that industry has taken it very hard. We see commodities overall. What do you observe and how is that going to radiate across commodities overall . Steve we are a big supplier of parks Like Hydrogen to the refining industry. We do that under longterm con tracks. Steve the contracts. From that standpoint, we are insulated. Companies like oil companies, refining companies, you can see the margins being squeezed as prices are coming down, but fortunately for us, because of the nature of our contracting and supply with them, we are insulated from that. Ceo steve angel joining us from the New York Stock Exchange. Thank you. Interesting, scarlet, particularly what we are seeing with ace chemicals and base metals. Right now the readings are modeled. Today,ill striking because it has been so brutal, we have been really interested scarlet i just want to point out im looking at futures and they are somewhat positive. This is bloomberg. Mark the world health anization we are trying to contain the disease. 83 thousand people worldwide have been infected. 2800 have died. Larry kudlow is weighing in on the markets reaction to the virus. He says he acknowledges things could change and the situation could deteriorate. He added what is needed now is calm. The market has gone too far. Ive seen this before. It can come back rapidly. Im not saying the market is wrong. It is what it is. Youve got millions of people trading all around the world. I just think everybody, person, or ordinary people should not overreact. He said it is sometimes a hard case to make in the middle of one of these crises, which is part psychology in part fact. I dont think anybody ought to panic right now. The Trump Administration cant in mexico. A federal Appeals Court upheld an order barring the policy which prevents immigrants from living in the u. S. During the review prospers. Human rights advocates say asylumseekers are often assaulted in shelters and buses and on the streets when looking for food. The pompeo is defending killing of the iranian general last month. He was the top terrorist in iran and the strike reduced risk to americans. Pompeo forriticized limiting his address. Hillary clinton faced 11 hours of questioning over benghazi. 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. This is possibly the worst thing ive seen in my career. Scarlet i think a rate cut is on the table. I think the fed will respond by lowering rates. Policymakers are going to do Everything Possible to prevent the u. S. From going into a recession. It will not encourage somebody taking risk. Even if they dont see the hard evidence. Two cat to cut or not to cut. The fed may be forced into an emergency cut if the virus gets worse. Joining us for more is seth carpenter. So great to have you here. Cut your perspective, is a baked in . I dont think it has been baked in. We have been the economy is starting to slow down. The coronavirus, 15 or whatever in equities have to be rattling their cages. I think the fed would like to see evidence. That will be the truly difficult part. To the biglly comes disruptions, they have to make a value judgment. Scarlet is the thinking they will cut if there is evidence unless there is evidence otherwise . My sense is the baseline is not to cut. The first sentence today was the u. S. Economy is strong. Theres no reason to start that way if they dont want to sound anymore like they are heading. Some said it was too soon to speculate. I think what jay powell was trying to do was to say we are paying attention. We feel good as a base nine. We are no longer hiding our heads. Meet in when they do midmarch, obviously this is a conversation they will have to have. Are they going to be able to point to any data to support a rate cut . My understanding is the effects of the coronavirus is not really showing up just yet. It is hard. None of the official data, what they are going to do, and i think it is safe to say, are there any corollaries to learn anything from it. You could look to where the supply chains are shorter in asia. If you look at the first 20 days worth of data for south korea, imports five fell by half. That is the first sign a big part of the Global Supply chain is starting to show disruption. Then if you think back to 2011 when japan had the earthquake and tsunami it disrupted their Motor Vehicle sector. Vehicle duction fell 9 . Huge direct effect from the supply chain. They have to consider that type of disruption. Because the u. S. Has not experienced Something Like this in a long time, theres the cut, willf if they do it accomplish anything. I am curious your view. The fed cut is not going to do anything about fear over the virus. It could send a message. There is in terms of liquidity. On top of that the fed is aware nothing they do with Interest Rates will shortcircuit the supply Chain Disruption. You cant do that. If there is a demand slump because people are going to hotels less and restaurants recovers,he economy any Interest Rate cut could help support the economy and whatever the recovery is. Romaine that is the part i am curious about. When they have these discussions, they have to talk about the impact of the policy decision. Is the impact discussion going to be once we start to recover this will help . Or these rate cuts will help . There will be a lot of all of that together. If you think about 2019 the way the fed did them, it was insurance against a were slow down. That is clearly on the table now. I guess what i would urge the either thereabout, is a small negative effect or a big one. We can argue over numbers. The question they should ask is if you cut rates, and it turns out it is just a small negative effect, how bad can that be . What is going to happen . They are going to hit their target sooner . That is the analysis they should be doing. S