The markets are telling. Abigail, are you there . Abigail we are looking at the s p 500 down 3. 5 after the worst quarter of the s p 500 going back to 2008. The russell 2000 down 5 . Last quarter the worst quarter ever. The stop selling we have seen this year on the coronavirus crisis, human tragedy is continuing right into the Second Quarter. It seems today to be a combination of technical factors and key support levels broken late yesterday so the sellers remain in control. Plus the fears around the virus as it is hitting the u. S. , the peak ahead in terms of what the fallout could be through the human tragedy weighing on wall street today. David exactly. It is not lost to me that President Trump came out yesterday after the markets had closed and said this would be tough for the next two or three weeks. He said it would be one of the most difficult things the United States has ever faced. How much of the Market Reaction does not have anything to do with the economy, it is the virus itself. The virus does get a vote in the markets. Abigail i think youre right about that from a sentiment standpoint and also the standpoint that new york is the epicenter and the heart of the Financial Markets in the u. S. Certainly a toll of anxiety, fear of the unknown. We are in an unprecedented period. Nobody knows what is next. In terms of the petite potentially 2 in terms of the away,otentially two weeks nobody knows. It does take a psychological toll in terms of the Economic Impact and data that could be on the minds of traders. David take us across asset. What is going on with bonds . Last time i checked it was truly risk off. Abigail it is a risk off day. We have the yen higher at this point. In premarket began have been flat but that tells as investors are seeking safety from a sector standpoint. All 11 sectors are down more than 1 . The best sector down 1. 3 . The worst sectors real estate, down 7. 3 . There are lots of news that april could be a terrible month for landlords. The New York Times added an article had an article out saying 40 of new yorkers may not pay rent. This is weighing on the real estate sector and apartment reits in particular on the fears that if the apartment rates in particular on the fears that some of these Companies May have problems paying loans. Some are saying this Health Care Crisis could turn into a real estate crisis. We are seeing that with the real estate sector down 7 on the day. Overall, very much a risk off picture with stops down and bonds and again higher. And bonds and the yen higher. David at the same time, it appears dollar is stronger apart from the yen, which would indicate people are flooding dollars again for safety. Abigail i would agree with you on that. The dollar has been troubling. The dollar index, which is a composite against the major currencies in the world, it had been well above 100 at levels not seen for quite some time. That signals uncertainty. The higher the dollar goes, it signals investors and traders are looking for safety. They are seeking the haven of the u. S. Dollar. That pressures risk assets such as commodities. Oils big tumble came when the dollar was at recent highs. Back in 2008, there was a period of time when both the dollar and the yen climbed. I am talking about the yen itself. That was the degree of the haven bid. Investors and traders were out of stocks and commodities to such a degree they were buying up the dollars and buying up yen. Some talking about the liquidity cash. The dash for seeing dollar strength. Stocks are at session lows. The russell 2000 down 5. 3 after dropping more than 30 last quarter. Thetodate down 35 and s p 500 at session lows, down 3. 7 , close to taking out other key technical levels. I should mention the real estate sector has already taken out the equipment of the s p 500 key support levels. It may suggest more weakness ahead. David thank you so much to Abigail Doolittle for that report. Now for bloomberg first word news we go to mark crumpton. Mark thank you. China has been lying about the extent of the coronavirus outbreak in that country. Bloomberg has learned that is the conclusion of the u. S. Intelligence community and a classified report to the white house. The report found china has been under reporting total cases and the number of deaths. The outbreak began in chinas Hubei Province in late 2019 but the country has publicly reported only about 82,000 cases and 3300 deaths. That is according to data compiled by Johns Hopkins university. The uns General Assembly is weighing have to respond to the coronavirus pandemic. Twoers have been sent resolutions for consideration. The most widely back calls for International Cooperation by sharing information. The other, sponsored by russia calls for implementing protectionist measures. Because the global body is not holding meetings, the resolution is defeated even if one country objects. Germany has extended its nationwide lockdown until april 19. The governor is asking germans to avoid contact with people outside their own households to contain the spread of the coronavirus. Germany has about 73,000 virus cases, the third highest in europe. Spain reported its deadliest date yet. There were another 864 fatalities from the coronavirus. The total debts have now risen past 9000. The number of confirmed cases in spain is now above 102,000. 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. Bloomberg. Thank you so much. , lets go toying nato. We will speak with u. S. Ambassador to nato, kay bailey hutchinson, someone watching every day for military preparedness issues. Before serving to ambassador to nato, she was the senator from texas for 20 some years. Madam ambassador, thank you for joining us. Thank you for your patience. We have difficulties with the connection sometimes. Give us a sense of military preparedness. We heard about that from the theodore roosevelt. You are not responsible for u. S. Military, but you follow the readiness of our troops and allies at their preparedness. Where did we stand with respect to the coronavirus . Hutchinson we ate a as well as we u. S. Are taking great precautions. They are taking on missions together. Afghanistan, iraq, kosovo, there are number of measures being taken so if there coming into afghanistan there is a 14 day quarantine. If there coming out of afghanistan there is a 14 day quarantine so they will not. Back to where they will go. We are doing that at the military level. I also want to say we see the importance of the defense spending that has happened at nato in the last few years because we have so many assets that are helping in this humanitarian and Health Care Crisis. Vessel,the u. S. Navy the comfort, which is now relieving a lot of what is going to happen in new york. We see it all over our European Alliance as well. Of whative us a sense that is. We know italy has been particularly hardhit. What can nato do to help a country like italy or spain . We are anison information gathering and coordinating effort so that italy is asking for supplies, certain supplies. Turkey today deliver those supplies to italy as well as to spain. The United States is giving a spainamount to italy and and several of our other allies through our supreme allied commander at nato. We do have the capability to transport. , peoplethat in america do not have enough of the equipment, the masks, the protective gear, the ventilators. America is taking care of our own. When we have the capacity built up, which it appears are great entrepreneurs and scientists are doing, then we are going to immediately transfer it out. What is not used in america, the excess go into our alliance and our partnerships. We are coordinating and very active in the defense capabilities that are building these makeshift hospitals to take the excess patients and be able to save peoples lives. We are also going to be working with our entrepreneurial spirit to get more taken care of in america so we can share with our allies as quickly as possible. Hutchinson,sador you and ive talked before that nato had a set of priorities before the coronavirus. How is it fit the existing priorities with the new priority . Amb. Hutchison we have the new priority because it is first and center for all of our countries. We never expected a pandemic that would affect all of us at the same time. We are gearing up and dealing with it. At the same time, we have the foreign ministerial meeting tomorrow. Administers will be on video and we are going to be able to deliver on afghanistan, the information about the Peace Process that america is starting and our nato allies are helping us with and President Trump has asked for more nato help in iraq and we are reducing phase one tomorrow for the Foreign Ministers to discuss, and hopefully they will approve that as well. We are going into phase two beyond iraq so that nato will be able to do more in the middle east. ,e are keeping our core tasks the security tasks we have been assigned to do, but at the same time we are trying to divert all of the assets we can to helping ourselves and our allies in the coronavirus. Like to works it from home as a diplomat . Is it doable . You cannot do military exercises from home, but what about as a diplomat . Can you accomplish what you otherwise might . Amb. Hutchison it is not as good. We have gone down to only one media week in person with our ambassadors. Normally we have four to five a week to go over our missions and what we need to do more. Now we are having one and we are doing Everything Else virtually. Ondo a lot of negotiating the computer, but then we come together one time a week to try to make sure we are all on the same page. Whatis how we have come to we are going to present to the Foreign Ministers tomorrow. A lot of it has been done virtually. Our staff is mostly working from home, probably 60 to 70 are at home, even if we are in the office. I have been in the office every day, and i have been able to work with our staff that is not in the office because we are trying to adhere to the belgian rule, which has given nato an exception. They are saying we have essential duties. We are trying to help them in their efforts to contain the virus for all of us who are in brussels now and throughout belgium. Thank you so much for your time. We hope you stay safe. That is ambassador kay bailey hutchison, u. S. Ambassador to nato. Coming up, we have the miami mayor who has survived the coronavirus. He has a hotspot in miami. That is coming up next on balance of power on Bloomberg Television and radio. David this is balance of power on television and radio. We have been watching the markets closely because they have been tumbling. For a report we go to taylor riggs. Taylor i wanted to take a look at the s p 500. We are now offer second additional day with a 3. 4 drop, having the worst day going back to market since friday, march 20. There has been a lot of debate if the markets had found a volume a bottom or if they think we can hit a lower lower low than the previous tip. I was reading report saying the s p 500 expected to drop below 2000 four we find a bottom. They are one of the strategists calling for a lower low if the markets continue to turn lower. I want to flip up the board and take a look at some of the stocks we have been talking about. As you can see with the 10year gilts, so does go the banking index. Wells fargo Bank Analyst Mike Mayo coming up with a report saying he is coming back estimates for a third time, same levels are below consensus and he does see sobering times ahead. He writes fear has a commanding lead that is bank stock valuations down. He sees opportunity in the next one to two years but there will be significant guidance downward as we approach those levels. Fold that into what it means for some of the Credit Card Companies we have been following. As you can see, capital one, discover, a lot of these are concerns given it is april 1 and i would argue more pain is ahead. On may 1, consumers are paying not paying their credit cards and not spending, given their supposed to be a drop in consumer confidence. You are getting worries for some of the credit card issuers today. Some of the worst performers. You could look at some defaults down the line. Flipping up the board, i was here with a slew of pmi that came out in asia. Everyone except for taiwan was in contraction territory. Not a good sign for some of the metals, particularly copper. No global growth. Unsure what that means for copper futures. David thanks to taylor riggs. Coming up, he is they have of a bank that deals with 66 million Small Business customers. Ceo ofthe chairman and bank of america will be brian moynihan, the chairman and ceo bank of america, will be on the power, onalance of bloomberg. David this is Bloomberg Television and radio. I am david westin and this is balance of power. New jersey is the state in the union with the secondhighest number of victims of the coronavirus. Earlier today, i talked to its governor, phil murphy of new jersey, about how his state is coping with the coronavirus. Murphy we have not announced the overnight numbers. I do not get them until after this. The numbers are going up. Lives lost. Ecious almost 19,000 positive tests. The positive test number, actually both numbers we expected and warned people, but the positive test numbers cut both ways. On the one hand it is positive test that people have the virus, on the other hand, it gives us a much better sense of the dimensions of this. We keep not just positive but negative testing results, and that gives our epidemiologists and other professionals a better handle on trying to figure out where this is headed trying to stay ahead of it. David one of the things we are all looking at is the rate of increase. You have any sense on whether the rate of increase is diminishing at all . Gov. Murphy the rate of increase on positive test is diminishing. In fairness, that is an imperfect assessment because as much as i want to test everybody , and that was our hope from day one, we do not have the materials to be able to do that, both the specimen collecting materials as well as the protective equipment where health care workers. The rate has been flattening as a percentage. The number of fatalities in broad numbers and percentages. Umped up again one other point that needs to be said is we have been as aggressive as any american state , the most aggressive set of steps we took were a week ago saturday. That is 11 days ago. Some of these testing results we are getting were from specimens that were collected eight to 10 days ago. We will not have a real handle on the impact of the aggressive social distancing for another week or so. David we all know social distancing seems to be the best weapon we have in the arsenal. At the same time, new jersey is the most densely populated state in the nation. What special challenges does that pose for you. Can you monitor the extent to which people are complying and can you enforce it . Gov. Murphy we are the most densely populated state in the nation, which gives us a unique challenge. Challenge. You can imagine the north and central parts of the state, we are part of metro new york so we are living the same reality new york city is and we are all in this together. Compliance based on every objective assessment we have right now is very high. I would not have said that two or three weeks ago, particulate among our young people who felt and still feel they are invincible to some extent. We enforce this aggressively. We have the state police out last night, we obviously have local and county officials. We are finding people, not just host but people who attend any gatherings. We are telling people stay home, stay away from other people, no gatherings. If you violate that, you will pay a big price. That was new Jersey Governor Phil Murphy talking with me earlier today. Coming up, we will talk with brian moynihan, he is the chairman and ceo of bank of america. Millionamerica has 66 individual and Small Business customers. We will talk to him about how his bank is coping and what he is seeing with Small Businesses across the country and will they get relief from the 2 billiondollar package. The 2 trillion package, and what was it like to sit next to president and talk about this . That is coming up next on balance of power on Bloomberg Television and radio. Nowadays you do more from home than ever before. The xfinity my account app puts you in control with Digital Tools to give you the help you need when you need it. Get fast and easy answers with personalized help 24 hours a day, 7 days a week. Change your wifi password to a phrase thats easy to remember. Even troubleshoot your services on your own. Were working to make things a little easier for everyone. Download the xfinity my account app today. David this is balance of power on Bloomberg Television and radio, im david westin. The Banking Industry and the lifeblood of our economy, and bank of america is an important part in that process because it has 66 million customers that are individuals or Small Businesses, so it knows how the economy is going. We are delighted to be joined by brian moynihan, coming to us remotely of course. This is an economic crisis, but i know you would be the first to say, but it is first and crisis. A human can you give us your perspective on the overall crisis we are facing . Brian it is clear, it is a Health Care Crisis. This virus out there that we are all in a war, and everybody in the world has one common enemy, and that is to win the war against this virus. Humanitarian crisis, and there are people who have been hit by a that are sick, and we h