Scarlet i am looking at the advanced decline line. Volume also picked up quite a bit. Nasdaq, the s p, and the of at least 20 above the average we saw last week. The sense of optimism broadening here. Technology and utilities leading the way up. The laggards are energy have just which we discussed. Each up at least 4 , so when you. Ee laggards lets bring back our guest, michael shaoul. How do you think about inflation . Everyones mind is still on disinflation but with all this stimulus and Interest Rates at zero, there is a point where we need to worry about rising prices, no . Michael yes. If it happens, it will be caused by supply disruptions. I think there are sometimes you have to worry about that. Inflation,ply driven especially in agricultural prices, that is something to be legitimately concerned about. Cap the indexes. From is already suffering deflation caused by swine flu virus. I dont think we will have a replication of that but i think locally, Agricultural Supplies are probably more vulnerable than they realize. I think we will get some deflation but god help the central bank that pays any attention. Maximum stimulus. If you get some inflation along the way, there is not going to be any response to it. Romaine that is a great point. Do you think the fed and other Central Banks should be concerned about some of the deflationary effects out there . Michael the fed is absolutely fighting deflation. In the bondflation market, the long end of the curve starts to behave badly. Does the fed take the final step nationalize the yield curve. I guess they would in that situation if they have to but if they dont have to, they wont. Scarlet if you look at what my hear from Company Executives of earnings season, how much useful information for investors do you think we will really get . They dont have a a lot of visibility and ceos will be reluctant to go out on a limb. Think you would be crazy to do anything other than withdrawal guidance. Very strong on this. Sometimes you kind of laugh at it, but i think these are some of the most confusing times for someone running a business. We just dont know. What would you take as a sign of it being not as bad as you would expect or worse than you would expect. It is not realistic. Romaine speaking about how hard it is to run a business, we are getting some headlines. Airbnb getting a one milliondollar investment from silverlake. Investso said they would with more hosts into the community. Update, the company saying it is focused on longterm, the investment from silverlake. , prior, i am wondering to the outbreak, we were expecting to see a few more of these big private companies, a few more of these unicorns try to make their way. The private corporate space, particularly with some of these larger names, do you think there is still an opportunity for some of these companies to make it into the private market in 2020 . Michael probably not. That is why you see a company like airbnb do the smart thing and secure financing while they can. If you are a Profitable Technology company, i think people will give you the benefit of the doubt. The building and they will, models, tied to activities being directly impacted by the virus, getting beipo is rightfully going to extremely difficult. If it happens, it will happen in asia. Is the biggest risk for investors when it comes to positioning . Is it to be sitting in cash, is it to be overweight one asset class over another . Volatility,you hate being exposed is difficult. Commercial real estate, that b stands out as a second air that sector that as a was inflated going into this. Had have allave said commercial real estate. I think that is the one, jumping into a distressed opportunity, i would be avoiding that. Michael shaoul sounding the warning there for commercial real estate. That does it for the closing bell. Whatd you miss . Is up next where we will be talking about jeffrey katzenberg. The streaming app launched today. This is bloomberg. York to live from new our viewers worldwide, this is whatd you miss . I am romaine bostick, broadcasting alongside my cohost, scarlet fu. Optimism seeping back into the market. Scarlet volume picked up on the u. S. Trading day. This followed gains in europe and asia as well. Passed the worse, with major indexes having their best gain in almost two weeks, up almost 7 . One headline we have been keeping an eye on closely is what is going on in the u. K. Prime minister Boris Johnson has been moved into the icu for his coronavirus treatment after his condition worsened. This has led to questions over who will run the country. In joining us by phone, tina at avon a partner hurst, a political and legal advisory boutique in london. In your london, the u. K. Prime minister now hospitalized. We outward from the u. K. That dominic raab, the foreign secretary, will be taking over some of his duties where necessary, where appropriate. What does this mean for the running of the country . Michael tina it is a good question. Bearing in mind that the u. K. Does not have either a written any kind of Vice President like the u. S. Has. The responsibilities, but part of what the uncertainty is about, just the communication strategy coming from number 10 on this. Night, being told last and we also had an additional speech from the queen, that the Prime Minister was being added to hospital as a precaution. Now we are finding out that he is in intensive care and there are suggestions that he might end up being on a ventilator. , and igood delegator think it is quite a chilling effect, particularly after the Market Performance today. To kindus is not going of peter out in some sort of predictable fashion. Romaine when we look at i guess the way the governments are responding, i guess what we saw yesterday out of the queen in the u. K. , quite an unusual moment. But we have seen a lot of leaders hungry to see that leadership at the federal level in the u. S. And in a lot of countries. How do you rate what we are getting out of those leaders so far not only in terms of logistics but also reassuring the public how this is being managed . Tina it is a remarkable effect. Perhaps contrary to what we might expect in a situation where people are dying and the public is being tested, social systems are being tested, the remarkable thing is that Approval Ratings are actually skyrocketing for just about every leader presiding over a country that is a virus hotspot. That includes italy where the government under Prime Minister conde has seen very strong ratings. Boris johnson, higher ratings that he had when he won a landslide in fact in the elections. Trump, they rally. Round the flag affect the problem is that it is unlikely to last. For President Trump, can it last until at least the election . Right now, his apartment, presumably Vice President biden, is not getting a lot of airtime. He cant get a lot of airtime. Tina it is an important point. It looks like we will see the conventions postponed. Obviously ground to a halt. Sure that the spike in Approval Ratings will be able to withstand what we have heard from the u. S. Surgeon general and others about the projection of deaths. What really matters here in terms of the electoral outcome in the United States or anywhere else is the ability to maintain public evidence and Public Public confidence and public trust. That is a factor we saw very much diminished in the runup to the 2016 election and of course the referendum results. Plummeting of public trust. Romaine so all right, we are listening to dominic raab, the u. K. Foreign secretary speaking in a prerecorded statement. Ande can defeat coronavirus pull this country through the challenge. Are you confident that the government is under control tonight . There is an incredibly Strong Team Spirit behind the Prime Minister and making sure we get all of the plans implemented as soon as possible, and that will bring the whole country through the coronavirus challenge that we face right now. Scarlet that was dominic raab, the u. K. Foreign secretary, making some comments after we know the Prime Minister of the u. K. Breast johnson was taken to the icu. Of course, we will keep you posted on any further developments. I want to bring back tina fordham. We started out talking about what was going on in the u. K. Dominic raab said the government business would continue. Other things are still going on in the background now. Can we assume that things like like brexit will continue . Tina i think no government will to do any other policy except for this virus. That is why i have been saying for a couple of weeks now that i expect brexit will be postponed. That would have to come at the june brussels summit. It would have to be requested. Of course, that is the last thing number 10 would want to be talking about right now. Both parties are really fighting for survival. Brexitct that a delay to will probably suit both sides. On the other site of it, just thinking about the people for whom brexit has been the primary objective. This virus has done more to reduce to reverse globalization, poverty, and borders than brexiteers could have dreamed of. Romaine you kind of mentioned some of the populist movements or what passes for populism around the world. I am wondering, do we start to see a change in voters in terms of what they want out of their government . A lot of what we are seeing now is a direct outgrowth of choices that voters made and made pretty definitively. Sense that there would be a shift in Voter Attitudes . Is ani think that important point. What you are asking about, does the demandside change in terms of who is electable . Said thishas famously country has had enough of experts. The antiscience bias in the u. S. , broadly similar. More in nothing we need a crisis like this than experts. That has been seen quite clearly. Ae question becomes whether severe economic and financial crisis colliding with a Health Crisis leads to some kind of return to more moderate political pace, or whether a new wave of populists can sort of harness the fear, bewilderment, or something else. And i hope it is not wishful thinking, if we look back to the 20th century leadership profiles, leaders with wartime experience were very much soughtafter. , wonder, in the 21st century and i do think this pandemic will be the defining feature of this century, we will rely on leaders who have experiences managing crises, who can manage complex systems. I expect people with that kind of Management Experience will be that more desirable. They will be the generals of the 21st century. Romaine they will be big changes that you typically get any time you have a crisis like that be well, be safe. Coming up a little bit later in this program, the battle to survive. We will hear exclusively from peter krause, the wall street veteran expecting the route in credit markets only get worse. This is bloomberg. Romaine lets talk credit markets. Peter krause, the chairman and ceo of aperture investors, basically saying that there is still the worst to come. He spoke earlier with sonali bostic. Happening right now in terms of investors being able to differentiate themselves, companies are challenged in terms of estimating what their earnings will be. 20 or sonished Reading Companies releases. They pulled all their guidance. Two, they are not able to estimate the length of the crisis and impact on their sales, revenues, or expenses. Now it will take very thoughtful, deep analysis to actually understand which companies will survive and will survive both intact and with financial strains coming out of this market. That is an opportunity for humans to identify. Very difficult for quantitative programs to do that. Environmentt is an that humans who have very strong analytical skills and Detailed Research capabilities can differentiate themselves and produce outsized returns for clients. Passive, with all this volatility, extreme volatility, what are we learning about the passive industry in the face of a crisis. The passivenk industry itself has seen some differentiation. If you are an investor in a large cap passive mutual fund, tracking between the index and your actual returns. Theou are in some of spicier etfs or even etfs that do not follow largecap securities, you found that the tracking error between your performance and the index is quite large. That is due to the illiquidity of the underlying assets and the challenge for providers and the associated persons that trade. Hem etfs are derivatives, not necessarily going to give you the market return, and you need to be cautious about what you own. Talking about how it will be difficult for investors to assess earnings from here, telling businesses where to invest and really deciding a lives and who dies. Peter it certainly makes it more difficult. The major issue is not so much the government. I think the government is trying to support existing businesses and jobs. The major problem is what will happen to the covid19 disease. How long will governments require shutdowns, social distancing, and lack of interaction. And when the social distancing is lifted, how will peoples behaviors change at all. Scarlet we bring you special coverage of all the price action. Because you cant get to the theater, were bringing the theater home to you with xfinity movie premiere. Such news. I know what this is. This is a real thing. Our Brand New Service that lets you watch movies at home, while theyre still in the theater. Oh, mister elton. Ahh he has figured out a way to be invisible. They picked the wrong woman. Just say xfinity movie premiere into your voice remote to bring the theater to you. The facility that the Crisis Response facility is designed to give rapid and flexible help to clients, to member countries who are under pressure as a result of the crisis. As you said, this can include financing, Health Infrastructure needs, Health Fissures that need to be met, but also more widely, financing where Infrastructure Investments is an impacted is not impacted. We can also finance other productive sectors, support for manufacturing, those kind of things can also be included within this facility. Is tost important thing identify the needs of our member countries. And the mandate given by our members to support whatever those needs are, particularly in terms of health and economic infrastructure needs that those countries face. Which country do you expect to see the most demand and how quickly can you deploy this cash . We discussed this with our board of directors. There are widespread needs around the world but obviously particularly in asia. Than 20already had more of our members come forward to express interest in accessing this finance and i expect more to do so in the coming weeks. Very much the emphasis from the banks point of view is responding quickly and flexibly to those needs. Those member countries within weeks of those countries getting in touch say they want it. Initial money we have attached to this facility. Obviously, if the demand is greater, the facility could be topped out in future. This is very much part of a coordinated international response. The g20. E call from we are working closely with other Multilateral Development banks. Of from within the Community International financial institutions, there will be many sorts of finance available to members and we help those will be complementary to each other, to unable our neighbors to come through the severe economic crisis. You mentioned the possibility of topping it up. 5 billion is a lot but in the grand scheme of things with things happening, it does not seem like a lot of money. Have there been discussions how large the facility could eventually get . Danny we have not discussed that as an International Financial institution, we are there to support our members at their time of need. 5 billion as allocated now will help us finance the urgent needs that come forward first but also the scale of the demand. Obviously, if that demand is greater than the 5 billion we have allocated, we would go back to our board straightaway. That is something we can and would do. 5 billion is a substantial allocation and it will depend on the need and demand from our members. Pressureu seeing any on any of the loads you have . Ent out are you looking at restructuring or for giving any loan as a result of the coronavirus . The are in touch with need for additional help in our members. Some existing clients may ask helpore rapid drawdowns to their needs. Scarlet that was danny alexander, Vice President and corporate secretary of the Infrastructure Investment bank. We want to shift gears and look at oil. It is falling today after saudi opeca, russia, and other members and allies raced to try to strike some kind of deal in limiting production. Our next guest, pressure professor for asian and eurasian studies. Members have a meeting on thursday. It was supposed to be held today, it was postponed until thursday. The Energy Ministers will be meeting on friday. Im a little confused here. We are talking about reducing production by 10 Million Barrels per day. What does that actually accomplish when it does not fit an does not create an increase in inventory . Thursday, the meeting of the opec ministers, friday, a meeting of the g20, at best, it can delay the inevitable. The crashes dictated by the loss and demand. The Coronavirus Crisis hurts oil more than any other source. The major change in our behavior is lack of mobility. Oil, the transportation sector. Until there is a dramatic or significant change in our movements, whether it is through the deployment of a vaccine or medication or through a policy change, we really cannot shift the balance in the