Between 5 and 7 . That kind of sets you up for your morning. Dollaryen, safe haven bid full in play. The yen and this was see the safe haven of choice. The long end of the curve taking more of that safe haven demand. Crude rolling over now. You have the virus, what is happening between opec and russia, and now a travel ban, which is going to destroyed jet fuel demand. Really taking it on the chin. Time now for global exchange. We are going to bring you todays market moving news from all around the world. Our bloomberg voices are on the ground with all of this mornings top stories. We begin in washington, where President Trump suspended travel from europe for the next 30 days, effective friday at midnight. The been excludes the you could the ban excludes the u. K. Pres. Trump to keep new cases from entering our shores, we will be suspending all travel from europe to the United States for the next 30 days. The new rules will go into effect friday at midnight. Alix joining me as kevin cirilli, bloombergs chief washington correspondent. Kevin the president delivering that oval Office Message in which he laid out how the administration is going to combat not only the Health Impacts of the coronavirus, but also the economic impacts, by restricting travel for a large magnitude of travel to europe. The European Union releasing a statement within the last halfhour. Headlines crossing the bloomberg terminal in which they say they were not consulted and criticizing that move, which obviously is reverting is reverberating this morning. The president also saying he will be calling on congress and his administration to increase Small Business loans and using the Small Business administration and others to try and free up liquidity to not just big businesses, but also Small Businesses. The president also calling on congress to take swift, bipartisan measures, including lifting the payroll tax and trying to inject some type of consumer confidence. I can tell you quickly, i was up on capitol hill talking to republicans and democrats. They are craving for there to be some type of nonpartisan vehicle , congressional vehicle to get through that would inject confidence not just to investors, but now all across the country on main street, which is dealing with everyday impacts of what the World Health Organization is calling a pandemic. Alix thank you very much. Lets stay on the virus. The World Health Organization declaring the Virus Outbreak a pandemic. The number of worldwide cases top 120,000. Joining me from rome is Bloomberg Government reporter john walk me through the situation in italy, as well as the rest of the world. Reporter reporter we had the Prime MinisterGiuseppe Conte under pressure from the areas hardest hit and within his coalition to tighten restrictions, and the screws were tightened again last night. Now we are in a virtual lockdown. Theres a curfew through the country. All shops are closed apart from essential activities, so groceries and pharmacies. Gas stations arts still open. You have to stay one meter from other people. The experts are saying it will take about two weeks to establish that. Theres also hope that perhaps the warm weather will have an impact on the virus, but the possibility is there will be further containment measures in the future. Alix thank you very much. Now we turn to the markets, where global stocks are on course for a bear market. You check us through the rout is bloombergs annmarie hordern. Annmarie the bloomberg flashing red throughout the night any morning. Futures down 4. 5 . We are limit down again today, once again. Only have totures drop 5 . The selloff is really widening. 18 benchmarks around the world are down in bear market. S p briefly touched that level intraday yesterday, now set to open deeper in bear market territory today, ending the longest gain ever for american stocks. Stoxx 600 travel and leisure also doing terribly. The havens, thats where the money is going into. We see a stronger yen, a lot going into gold, as well as treasuries. They are just rallying. Alix thank you very much. Lets drill down into airlines and cruise liners, plus credit markets. All of that in freefall this morning. Joining me from london is bloombergs dani burger. Walk us through what we see. So severeselloff is for travel and leisure stocks in europe, the last time they had a day this bad was september 11. That really puts things into context here. Already they were dealing with reduced traffic and reduced footfall over coronavirus fears. Now with the travel ban between europe and the u. S. , these companies are in freefall, tumbling 10 or more. American airlines premarket falling more than 13 . One of the fears this really races, especially when you look at stocks like norwegian come over the Balance Sheet was already questioned by investors, will this because companies to default on their bond covenants . Will they even have to go bankrupt . We heard from a company that operates a lot of cinema chains saying that under a worst case scenario, they could violate their bond covenant. For some companies, this just means the borrowers will waive that violation. For others, it could mean restructuring, it could mean bankruptcy. We are seeing that priced into the credit market, which is experiencing a lot of pain now. The index in europe which tracks the cost of insuring for highyield companies on their debt has surged. It has doubled over the past five days, seeing the biggest hiccup on record. We are seeing investors cast aside week Balance Sheet companies in favor of strong Balance Sheet companies. The cost of borrowing has also skyrocketed in asia and the u. S. Investors now starting to price in a recession here. Alix thank you so much for that recap. Finally, after the fed and the boe cut rates, investors now watch the ecb. Joining me from frankfurt is bloombergs paul gordon. Weve got an hour and change until we get this decision. What should we get . What do markets expect . Paul president Christine Lagarde effectively precommitted to action when she spoke on tuesday. That is highly unusual, speaking to the severity of the crisis. Things only got worse with the down and the travel ban to europe. Investors fully expect at least another 10 basis points, possibly 20. Theres a good likelihood that the quantitative easing program, which was controversially resumed last year, will be escalated again. The real focus is on what measures the ecb can come up with two direct liquidity towards small and mediumsize companies, which really risk defaulting or failing because of problems with cash flow. Theres a lot on Christine Lagardes shoulders. It is the first big test of the presidency. Lets see if she can deliver. Alix thanks so much. We will have complete coverage of the ecb decision, 8 45 a. M. New york time, followed by the press conference at 9 30. The outbreak is now rocking the sports world here in the u. S. The nba now suspending its season. The announcement was made after a player on the utah jazz tested positive for coronavirus. Now the nba says it will use the hiatus to decide what steps to take next. Meanwhile, there will still be march madness, but there wont be any spectators. The ncaa has decided to hold its mens and Womens Basketball tournaments and empty arenas. Only staff and a few family members will be allowed. There were over 100,000 fans expected for the final four. Atlanta was expecting 106 million in economic impact. Now they have to strip all of that out. Coming up, more of your morning news, trade and analysis in todays first take. This is bloomberg. Alix time for blumer first take for bloomberg first take. Joining me from our inhouse team of wall street veterans and insiders, damian sassower, mike mcglone. Have we hit capitulation . Is this what that looks like . Damian i dont think so. We are finally seeing evidence that liquidity pressures mating in the u. S. Are heading off for markets. Ive been talking about this for. He wife for a while libor is spiking. It is hitting the g3 cost currency basis. They are plummeting. That is making it harder to borrow dollars from offshore. That is going to increase liquidity stress in my opinion. Mike i think the fact that we agree means we should maybe get a little more bullish. [laughter] mike but i still see Unfinished Business in the s p 500. If you look at it, thats the only thing that matters now. Once the stock market stabilizes, Everything Else can trickle down from there. Thats look forward a week from now. The fed is going to be at zero. It is priced in. If we look forward a year from now, we are probably going to have a new president. It is a virtual guarantee we will have a recession. Typically, we are supposed to get at least 1 3 correction in the stock market. I see the s p 500 getting around 2000. Thats right where its word where it was when trump was elected. Then i look over at bonds. 1 in the thirtyyear mothers not a lot of room. I look at commodities. Oil is probably going to take out that low. Then you look at gold. Theres Unfinished Business at 1900. I dont see how we will not get above there. Damian im still focus on the move in spreads. These are highyield emergingmarket spreads. Really big moves. The highest levels on record across all of those Asset Classes. Intold not be going illiquid Asset Classes at the current point. I agree, youve got to be making your christmas list right now. Which companies, which securities, which Asset Classes you want to own. But i would say sit on your hands now. Alix joining us on the roundtable is should heed a lot , bnp is a shahid ladha for g10head of strategy rates. Hahid the risk remains skewed juste downside here, not for the immediate downside to the economy, but also the possibility of liquidity impact. We see potential working from home, potential shutdowns of central liquidity centers that could affect liquidity worse, could draw calls for the fed to add liquidity more and more as could addterday, and to dislocations in the market, particularly in credit, which seem to be the focal point of stress and how the Coronavirus Crisis can impact the economy. Alix just to play devils advocate, yesterday we saw the fed throw everything at the repo market. I was talking to ira jersey of bloomberg intelligence, and he was saying we are not actually seeing the stress within overnight rates. We just want to make sure everything is moving smoothly and it is more preemptive. But that is a good thing, right . It is not a response like we saw in september, no . Damian certainly we are going to see the ecb today. The fed has never disappointed. We are pricing at all was 100 basis points of cuts by the 18th of this month. Why not go with the ecb . Wouldnt that be best for the markets . May be alongside the ecb, it might be helpful. The ecb is probably going to cut 10 bps and do a bunch of other things. This is what the market is projecting. But to do some thing along side the fed would have a greater impact for investors today. Mike unfortunately, it is not really profound because we both agree it is priced in. Fed funds futures this morning, already priced in for zero. Alix what would actually make a difference . Mike it shouldnt really matter. The problem is if they dont do it. They need to make a Statement Like carney did that we will do anything it takes. We should expect quantitative easing. We should expect as much liquidity as possible. Until bond yields start taking up, we should just flood the market with money. Just helicopter. Why not . The bond markets should be the determinant here. Until yields spike, why not . Shahid . My think this is different to september. That was an acutely quiddity that was an acute liquidity issue. Flooding the market with liquidity may not help. I think we need to bring down the massive increase in highyield ig pretty quickly. Alix does the fed made to buy Corporate Bonds . Shahid we are getting to qe quicker than anyone could have imagined as we started this year, so that seems like the eventual outcome, but i am not even sure that alone is enough. I think we need a much more ,oordinated monetary, fiscal plus regulatory response, a bit like we have seen from the u. K. , hopefully like we will see from the ecb later today, and in the coming days from congress and the fed. That, two build on point 9 trillion of bbb u. S. Corporate credit outstanding, one third of that is in bbb. Saying if we do go into recession or we slow down, we start to move into the third quarter, all bets are off. You will see bbbs falling like a rock. Mike look at the fiscal side. We look at what our president did last night, and kind of failed. As much fiscal stimulus as possible so he can blame it on the democrats. Alix to that point, if you cut the payroll tax, which is what the white house talked, that is not going to help the credit market. Does it . Shahid no, i dont to get does help credit directly, but it does start to try to build a floor. It does start to try to offset the potential Downside Risk to gdp we see now in the coming quarters. Touted,taxes, it was could be as large as 2 gdp. That is very unlikely to get through given democratic opposition. I think it can help, but it shouldnt be the starting focus. I think the starting focus should be more about paid leave and Small Businesses, where it is hurting the most, and then provide a backstop once we get through the Inflection Point of coronavirus infection. Alix if we take a look at the bond market, if treasuries are supposed to be a riskfree asset, and they are not reflecting that right now, how do we price Everything Else in the world . Damian for me, i am really more concerned about some of the structural so i am going to talk about emergingmarket debt. Emd saw the Biggest Record outflows yesterday. That is comprised of illiquid securities right now. Buyers . T are any damian i dont know, but a huge money that gets sucked out of a illiquid asset class, some of the structural breaks in these products that everyone considers safe, that could be a very damaging on the psyche, on the impact of markets. Alix and you end up selling because, like yesterday when we saw the selloff inequities at the end of the day, you also saw a selloff in bonds, which made no sense. Some are saying that is because of sovereign wealth funds. Damian and muni yields blew up because people are selling their be visible bonds to meet their liquidity needs. Thats insane. Mike i think the key for investors is dont lose money, and i keep going back to gold. Gold is the new bond vigilante. Going upgoing about a lot, but it is still well below the alltime high. Gold has got a lot of room. Shahid we start with bond yields close to their alltime lows, so i dont think they are reflecting at all some premium for safety. However, i think the bigger issue is more about liquidity in the nearterm, and that can affect even the riskfree assets, as we saw with tightening swap spreads yesterday. I think broadbased liquidity plus this coordinated effort can get us through what is a very acute rough patch, and hopefully start to look past that sooner rather than later. Alix do you still think we are in a v, or is it a u . All the investors so you do want to buy stocks, just not today. There will be a recovery by the end of the year. Damian if you look at breakevens in europe, they blew through 1 . That is an alltime low. If these disinflationary pressures persist, when does it become deflationary . When do Inflation Expectations get anchored that much lower, and what does that mean for the markets . We are heading there quickly. Point,hat is a great especially when you have oil at 31. Super contango, by the way. Mike mcglone and damian sassower, thank you. Shahid ladha of bnp paribas sticking with me. This is bloomberg. Viviana you are watching bloomberg daybreak. Twitter employees working from home is numb editorial for all of them. Previously is now mandatory for all of them. Previously, the company only recommended it. It will continue to take contracted an hourly workers to weekly hours. Madoff wants what is called compassionate release because he is dying of kidney failure, saying retribution alone isnt enough to keep him behind bars. Prosecutors say he doesnt deserve a break. Wynn resorts struggling to deal with the Coronavirus Impact on its revenues. Bloomberg has learned the casino operator plans to drive down a portion of its 800 million revolving credit line. Macau,s operations in closing for 15 days in an attempt to halt the spread of the coronavirus. That is your Bloomberg Business flash. Alix . Thats stay with the impact thanks souch alix much. It lets stay with the impact of the virus. Value of assets around the world is in doubt. Ability to trade without substantially moving prices, that has now plunged to the lowest level since the financial crisis in 2008. That means you are seeing a big difference between the bid and the ask spread. Plus, the cost to trade treasuries is spiking. Bonds2 3 of 30 year trades are taking now with wider spreads. Slumping to the lowest level since february 2016. Super contango. Francisco blanch of bank of america will be with us area this is bloomberg. Hi were glad you came in, whats on your mind . Can you help keep these guys protected online . Easy, connect to the xfi gateway. What about internet speeds that keep up with my gaming . Lets hook you up with the Fastest Internet from xfinity. What about wireless data options for the family . Of course, you can customize and save. Can you save me from this conversation . That we cant do, but come in and see what we can do. Were here to make life simple. Easy. Awesome. Ask. Shop. Discover. At your local xfinity store