This is a very unprecedented time. Three priorities in this period. The first is the health and safety of our employees. If we can all stay healthy what stay healthy, we can be part of the contribution here. Even under adverse conditions, we are trying to maintain manufacturing of our food and beverage products. And then with the physical presence in 187 countries, it is very important to us that we also give the helping hand over and above the call of duty around the world where we are present. And on the business continuity, mark, do you have all of your raw material supply guarantees . Crisisminute we saw this spread, we were trying to improve inventory levels at all. Evels of manufacturing obviously there was very little time, and i think flex ability is what is required right now. You do have logistics constraints. Sometimes you need to resort to airfreighting. Sometimes that takes longer or capacity is limited. It is all about managing in a very tight way this crisis and ensuring flex ability. This is what our teams are focused on right now. Nejra how do you see the coronavirus outbreak changing Consumer Behavior in the longterm . Mark i think longterm is probably a bit far out right now. I think we are very shortterm focused at the moment to really meet demand where we can. I think this is the most essential service we can provide to our consumers. What we are seeing from china, for example, where there is some improvement here, that even in the aftermath of demand for maybe we willts, have some premium. Given that we are in a recession area environment, i think that is also a safe that for some of the other communities as we emerge from the Immediate Health care crisis. Nejra in the shortterm, based on the demanding rcn for certain products, are you stockpiling any . Have you increased production of certain products like water, like coffee, for example . Mark generally, we are trying to produce flat out in the face of strong demand, but keep in mind, with logistics limitations now kicking in, and also lower employee presence as a result of illness or precautionary measures, and also enhanced safety protocol at our plants, we are not always able to give it 100 capacity that you would have under normal circumstances. We are working extra shifts where we can. We are trying to ramp up manufacturing where we can. But keep in mind, this is a very challenging moment. Just getting to the normal levels of manufacturing is a pretty Outstanding Achievement right now. The facilities that we are announcing come the Crisis Response facility, is designed to give rapid and flexible help member countries who are under pressure as a result of the crisis. As you said, this can include financing urgently, Public Health infrastructure needs, Health Pressures that need to be ,et, but also more widely financing where Infrastructure Investment is affected by the our mandated also is on infrastructure financing, but we can also finance in other productive sectors, support for manufacturing. Those kind of things can also be included within this facility. The most important thing is to identify the needs of our member countries, and within the mandate we have been given by our members to support whatever those needs are, particularly in terms of health and the economic and infrastructure needs. Which countries do you expect to see the most demand for this kind of funding, and how quickly can you deploy this cash . Danny we discussed this with our board of directors last week. I think there are widespread needs all around the world, but obviously particularly in asia and among developing countries in asia. Weve already had more than 20 of our members come forward to express interest in accessing this finance, and i would expect more to do so in the coming , and very much the emphasis from the banks point of view is responding quickly and of lead to those needs and flexibly to those needs. Finance within weeks of those countries getting in contact with us to say that they want to. Obviously, 5 billion is the initial money we have attached to this facility, but if the demand is greater, then obviously the facility could be topped out in the future. I say also that this is very much part of a coordinated international response. We saw the call from the g20. We are working closely with other multilateral develop in like us. The world bank, the agentive element bank, and so forth. So from within the community of International Financial institutions, there will be many different sorts of finance that are available to members, and we hope that those will be componentry to each other to comee our members to through the severe economic crisis going on with this Global Health emergency. You mentioned the possibility of you topping this off, but in the greater scheme of things, things, given what is happening, it doesnt seem like a lot of money. Has there been talk about how big this facility could get . Danny we havent discussed that. Obviously, as an International Financial institution with member countries all around the world, we are there to support our members in their time of need. Now will help us finance the urgent needs that come forward first, but also help to edify the scale of the demand that comes from our members. Obviously, if that demand is greater than the 5 billion weve allocated, we would go back to our board straightaway and top it up. That is something we can and would do, but obviously the 5 billion is a substantial allocation, and it will depend to a large extent on the need and the demand that we get from our members. Just a quick one on the aiib. Er portfolio at are you having to look at restructuring any loans or forgiving any loans as a result of the impact of the coronavirus . Danny so far, no, but obviously we are monitoring the situation very carefully, and we are in touch with our existing clients. What we are seeing much more is demand for additional help in our members, and some existing clients may ask for additional drawdowns or more rapid drawdowns to help meet their needs. Guy ok, i dont think we can hear vonnie, which is a great shame. We will be back with her shortly. Lets talk about what is happening in these market. We apologize for technical difficulties we are experiencing. Wall street views on the outlook for stocks, as we all know, widening for a while. Guggenheims scott met it may have taken things up. S p earnings could get as low as 100 this year. Given the Traditional Market multiple around 15x, that would put the s p at around 1500. That is a long way down from here. For more, we are joined on the phone by ann miletti, Wells Fargo Asset Management head of equities. Thank you for joining us. Thank you for your patience as we work through our technical difficulties. There are a number of people today looking at the data when it comes to the virus and seeing the curve beginning to flatten a little bit, and saying, you know what . I can extrapolate out of that into an argument for buying stocks. We are hearing a number of other people saying youre getting ahead of yourself. Earnings are going to be hit and hit hard. Which camp do you sit in . How are you judging whether or not money should be put back to work in the s p space . Ann i definitely understand the reason for two arguments. Economic activity is likely to continue to be disastrous, but we are seeing some stabilization signs in the market. Was lesss decline than 10. Narrowed a little bit. You wanthe camp that to stay invested. If you will or if you were invested in the market, you want to stay invested in the market. I think this is a unique time for stock managers who dont have to own all of the names in the index, people can be picky and thoughtful about the companies that are going to be best positioned on the other side of the storm. ,ven if we retest the lows correlations are going to be wider. Theres going to be more separation between the winners and the losers. Are im presuming you basically therefore looking at companies that have very strong balance sheets, so here is my question. If im looking at those kind of companies, should i buy their credit or their equity . Well, i obviously am focused on the equities of the managerso the active within Wells Fargo Asset Management are looking at the equity side of things, trying to figure out who is best competitively positioned to exit this youre going to start to see exit this. You are going to start to see a lot of separation between the winners in the losers. There was change already starting to happen ahead of this virus. Things that were going to take three to five years to accomplish are now going to be sped up, so things that many of you have talked about on this show even this morning, things in the retail space, the haves and havenots, the companies that have been able to distribute online and do it seamlessly to the customers, restaurants that can serve their ,ustomers anyway they want grocers who can do online delivery, those types of things are going to set up much more quickly, and many other things well [indiscernible] ann, of those plays you say are going to rebound rapidly, what happens if this still cant get fixed in a couple of months . If businesses cant access the ppe to bring back employees and keep them on the payroll . They sort of have to be convinced that they need to have them on the payroll beyond that, to make it worth it to rehire those staff. So what happens to all of your picks if we dont see at least some kind of rapid rebound in the economy . Good point. Very i am not suggesting that this is going to be a bullish Case Scenario for all companies. Certainly, the impact we are companiessmall local is very difficult. Even companies that are not wellpositioned, this virus could be deadly for many of those businesses as well. Is thatm suggesting active managers can choose and bestselect the competitively positioned companies to take advantage of what the future may look like, and that is challenging for all investors to do, and no one will do it perfectly, but i think what we are positioning ourselves to do is, rather than settle in and look at all the negatives, we are trying to look forward at all of the change that might occur and has been occurring, and focus on that, and how do we get our position size most competitively advantaged for our clients for the future. Vonnie if you are looking at the health care space, what is attractive there right now . Space, the health care it has been a place in the market that has been a little bit difficult to invest in. There certainly have been the haves and the haves nots. The Healthcare Services names have been challenged, much because of some fears on the political front and what may happen, but i think what we are seeing is that the pharmaceuticals and biotech mostnies are probably competitively advantaged, especially if they can Bring Solutions to this virus and to other things into the future. So i think as consumers, we are starting to see that there are strongvantages to having biotech and pharmaceutical companies. Yes, we care about price, but we also care about the strength of the companies. So i would say in that space, biotech and pharma, and also on the medical technology side, some of the companies will come out of this very strong as well. Stocks safer than global stocks . Ann that is an interesting argument. I know that theres two sides to that. Certainly in the near term, a lot of people have said, look, it is easier to go to places that have already been impacted by this and are recovering. If you see what has been going on in china, in chinas market, the recovery has been pretty strong. Is i thinkide of it the u. S. Is going to be a good place to continue to invest. Ist we are likely to see that there will be more on shoring. That consumers have become aware of what is made here on what is not made here. We will have more and bee things come back to manufactured here, especially essential items. Hurt a little bit of some of the international markets. Certainly, china has been set up for that as well, though. Guy thank you very much for your time today, and thank you very much for your patience as well. Etti, Wells Fargo Asset Management had a backward actively management head of active equity. Annmarie hordern joins us. What stands in the way of a deal . Annmarie good afternoon. I think one thing is getting the United States on board. We heard from the u. S. Energy secretary on foxbusiness, talking about the fact that he had been in touch with the saudis over the weekend. But they are looking now is the g20 Energy Ministers meeting, potentially one way to get some of these opec beyond reducers like canada, norway, the United States, brazil on board for a production cut. While this might mikel let sense on paper, how that actually plays out is really difficult make sense onht paper, how that actually plays out is ready difficult. President trump has said he doesnt like opec, and will protect u. S. Oil and gas if it comes to it. Salmonn and bobbitt been willing and Mohammed Bin Salman willing to see decline in the u. S. , or will you see states that have progress inning mechanisms in place that have prorussian and that have prorationing mechanisms in place . Vonnie are we anticipating something coming out of thursdays meeting . Also, why was it postponed . Annmarie over the weekend, there were fresh bards exchanged between russia and saudi arabia. Putin says the deal collapsed because of the saudis, and the saudi strategy was taking out u. S. Shale, when people told us that was a russian strategy. The Saudi Foreign minister came out and basically said that is categorically wrong. So they needed more time for back channel negotiations. They settled on thursday, but to be honest, i have been covering opec now for more than two years. They settled on thursday, but that is technically within the calendar right now. We could potentially see a change in date. They all want to kind of say face. It is getting so very political. But the bigger question is, even if they were to cut 10 Million Barrels a day, where are these coming from . One think they need to discuss is what baselines they will be using. The russians definitely want to pumpingecause they were 8 Million Barrels a day. The saudis definitely want q1 because they were pumping more than 12 Million Barrels. Guy thank you very much, indeed. Thank you for the latest on what is happening in oil prices. Vonnie we are going to be talking airlines next as we get the latest out of american, also slashing the number of flights out of new york city to basically nothing. Airlines are lower today, including united, american, and delta, one of the worst performers in the s p 500 right now. We will have George Ferguson on from Bloomberg Intelligence any moment. This is bloomberg. Live from london, im guy johnson, with vonnie quinn in new york. This is bloomberg markets. American airlines is joining united in eliminating most of its new york city flights. Flights out of the big three new york airports will fall to 13 nearly 217ared with aday this time a year ago. Lets bring in George Ferguson, Senior Analyst at Bloomberg Intelligence. We know at some point there is going to need to be aid coming from governments. Why doesnt this happen soon . What is stopping us getting clarity on how all of this is going to work . , fore good afternoon those of you in europe. I think we are already starting to get some clarity on how this aid is going to work. The airlines had until the end of last week, friday, to apply for the grants and loans from the u. S. My guess is that most of them did it. The grants will subsidize the labor cost over the next couple of quarters. All they have to agree to is a minimum amount of flying. We are working for delta this morning. We still expect that delta, they cant lay off any people. That got to keep at least 90 of the staff. Deltas labor cost will probably be 2. 3 billion in q2. Those grants really go to keep that employment going. , not surprising, we are seeing flights being decreased in the new york metro area. Right now, theres a bunch of governors even that one quarantine for people traveling from the new york area when they arrive to their states. You can see where demand is really going to fall off bad in the new york metro area, as if it isnt bad all around the country. We really think that the load factors are somewhere in the 15 range. But the airlines will be required as part of this aid to keep some level of service between u. S. States. Vonnie the problem is we dont know how long this is going to last. Even if they are getting aid, you said the labor costs alone are going to be 2. 3 billion in that only in q2, but brings us to the end of june. What if there is even a partial reduction of flights after that . That is the best Case Scenario. The airlines will still be short of money. When does the age stop . Does the aid stop . George it is a temporary measure that the government has proposed to support the airlines with through september. I would think if things spread well into 3q, you might even see another aid package. It is hard to run a robust economy like the United States economy. I think we will see, even in europe, hard to run a robust economy without functioning airlines. So i think this is just the first tranche, if you will, of aid to the airlines. If you dont see dramatic improvement, i think you will see the Congress Come back with something. Guy do you ultimately think this ends up with governments taking stakes in airlines . In the you know, i think u. S. And in most areas of europe , i think there isnt the interest in owning the airlines. I think weve come a long way since deregulation in the u. S. , where the government regulated a lot of the industry. This is really a difficult storm to weather for the airlines. Probably the worst scenario ive seen. So it is hard to see them survivin