Sectorsre your main leading the rally today. We should mention this is unlimited volume as well. It is up 11 . In the case of the dow and s p lower than it was a day ago. Passover begins tonight. We might see limited trading. Friday is a public holiday. Monday there might be people off. Jay powell is speaking, and that might provide some catalyst for market pricing. Romaine joining us is christina from invesco. ,hen you look at these rallies it is an encouraging sign, but the market seems to be very focused on the virus data we are getting, the number of deaths and what is a decline in the number of new cases in certain regions. The market will start to focus on little less on the virus count, and focus more on the economic numbers, corporate profitability, the more traditional metrics, and is it going to matter knowing that we know it is going to be bad . Kristina that is the point you are making is right. It is going to be bad. The market is likely not to focus on it which is the right thing to do. The market should be looking ahead to when we could expect to see the be see the beginning of the rollback of the lockdown. That is why Health Statistics matter more than Economic Statistics. That will be true for the month of april and likely for the month of may or part of the month of may. Once we see the rollback of the lockdown, that is when Economic Activity, statistics are going to matter more. I can see that, but we are not sure how this reopening will take place. Austria is doing it in phases, moving tentatively. Want Company Executives offer insight into wont Company Executives offer insight on how they will bring workers back into the fold and start reopening . Wouldnt that be market moving . Kristina it could be. We might hear from companies soon. This is new to many companies. Unless they have had operations in china, this is a fairly new phenomenon. It might take a little time to formulate a plan. But you are right, that could be market moving. At the end of the day, Health Statistics matter more. We know that this is going to be a slow rollback of the lockdown. Gauge thent to different Economic Statistics once the rollback against. Understanding Economic Activity is likely to be subdued for some time. The doesnt mean we wont get a vshaped recovery, but it will be ugly. Line,will be a meandering not one shooting straight up. There will be a lot ofs execs here. Im wondering about the a lot of zigzags here. Im wondering about a lot of the Discretionary Spending that was sort of a big component of consumer spending. Do you anticipate the companies that are in the business of the highly discretionary products will recover at least maybe sometime this year, or will it take longer . Recovery i expect a this year. Might not happen until later. Much of it is predicated on adequate fiscal support during the crisis. That is why we need to see us to did a significant extension of what we got in phase three in phase four. There is a significant cohort of american households that are very vulnerable. What we have seen from fed surveys, independent thirdparty surveys, there is a large cohort of americans that have little or no emergency savings. That doesnt matter much when unemployment is 3. 5 and growth is solid, but it matters now. We need to continue to see the lifeline extended to them. That means cash payments. We have got the start of that. Lets hope it gets into their hands and it needs to be followed up with more. Scarlet i want to get your thoughts on the recovery in europe. We know that the e. U. Finance ministers held this 16 hour emergency Conference Call and failed to come to any agreement on a rescue package of 500 billion euros. And Christine Lagarde has said members cannot avoid economic fallout if one suffers. Trying to rally the troops and get them to act in unison. What does the recovery look like if they squabble and drag out the response to the crisis . I am optimistic the squabbling will be shortlived. There is some hope that will be the case. What kind oftate recovery europe sees, just as it will every economy. So i would imagine that we will coming fromtimulus europe. If not, what we could see is the ecb step in. This might seem like an outlandish idea, but what we have seen time and time again is in an absence of fiscal stimulus from governments, Central Banks have stepped in. That was apparent during the Global Financial crisis. We could see it happen again. Exploring anhe ecb experimental tool which could simulate fiscal stimulus. Scarlet relying on the central bank. The invesco chief Global Market strategist, thank you for your time. That does it for the closing bell. What did you miss is up next, where we will look at the impact of the coronavirus on higher education. This is bloomberg. This is bloomberg. Romaine this is Romaine Bostick, alongside scarlet fu, Joe Weisenthal joining us later in the hour. Scarlet we are taking a look at how u. S. Stocks close. We are at fourweek eyes for the dow highs for the s p, and nasdaq. Lets say on topic because President Trumps top Health Advisers are developing criteria for reopening the economy safely. This is if trends continue to show improvement in the coronavirus outbreak. For more on how this is going to play out, lets bring in mario parker, Bloomberg White house reporter. What can you tell us about what kind of medical criteria the health team has come up with . It is in the early stages of deliberation. What is remarkable so far is the fact that the white house is allowing the Health Experts to take the lead. They dont want to open they are eager to open things up but not prematurely. At this point the health team is taking the lead in terms of analyzing data. Parts of the country could be opened earlier. The hotspots, etc. , and taking the lead from there. That is encouraging. For those of us that watch the briefings and follow what is going on in washington, having the Health LeadingHealth Experts leading is encouraging. Do you get a sense that is going to hold, that we will see politics divorced from the final decision and that decision is going to be made with the health of the public in mind . Of the present it the Trump Administration is things can change rapidly. The president is anxious to open the economy. It is instructive argument for reelection and it is something he is touting. On the other hand and is his strongest argument for reelection and it is something he has touted. We know dr. Birx and dr. Fauci, some of the other members of the task force, met late into the night at the white house, sans political advisers. If we were to read the tea leaves, we would be able to say at least so far the health mines are the ones health minds are the ones leading. Scarlet the president is a big fan of having panels Work Together and empowering other groups to make decisions while he has the final say. If the Health Advisors are working out ways to open the economy safely with Public Health concerns in mind, is there any Economic Team the president is putting together to look into how we would deal with the details . Mario we know the president has talked about a second Coronavirus Task force who would be tasked with the economy and how to get it back opened, what policies would help to spur the economy and what the logistics of reopening will look like. That is something that has been under consideration. Yesterday the president kind of waffled on whether or not he would follow through. One one thanked thing everyone agrees on, you will need some degree of testing to make sure people are not carrying around this virus or transmitting it. And businesses need to have access for personal protective equipment, to make sure customers who walked in the door are not going to be infected. Does the white house have a plan for addressing that . Mario sure. That is the most critical. This is the key to everything, testing and proliferation of widespread testing. So far we know there has been hiccups with ruling out testing, making it available. But the white house has been confident it can rule out more testing and we have seen more discussion in the briefings, President Trump talking about rapid testing. As Business Leaders and Trump Administration allies pressed him, the administration to start to reopen the economy, testing is first and foremost. Remember a couple of weeks ago President Trump was talking about a system where he would designate cities or counties or states as high medium or low risk hi, medium or low risk. Is that still part of the thinking . Mario not sure about that but the discussions now or possibly sparselyelatively populated areas. Governor is, their trying to boost testing, even though it doesnt look to be a hotspot in the vein of new york, new jersey or chicago. Maybe the idea would be states like utah, places like iowa, nebraska, north dakota, those will be the places that would have guidelines in order for folks to get back to work. Romaine thank you. Mario parker for the bloomberg houseomberg white reporter. We will talk about the credit market chaos and why that is presenting a onceinalifetime opportunity for some money managers. This is bloomberg. Democrats are proposing another round of economic stimulus with a price tag of 500 billion, double what the white house has been seeking. Performers a former treasury secretary says assistance is needed. He spoke with david westin earlier. The whole need for response here is immediate. We shut the economy down, we need to make sure that these businesses are there when we open it back up. If we take too much time to get things perfect, which is my preference i would love to crossed, wewas would love we would look back and regret it, because there would be so many failures, the length of the recovery, the recession has deepened. If half of the American Workers are working in Small Businesses and we need them to go back to work with Health Conditions permitted. Time is of the essence. The funds part put in the third bill were helpful but i didnt think it was adequate when you look at the number of businesses that are going to need help. Im not surprised they are looking at providing more assistance. What i am trying to add into the thinking process and the comments i am making, when the green light comes, there has to be cash flow to reopen. There is going to be a need that continues the assistance longer than the health crisis, like there is going to need to be help for people with unemployment, food stamps, snap and other kinds. Other long is the economy is lagging behind because of the Health Care Crisis as long as the economy is lagging behind because of the Health Care Crisis. David the government will have to borrow a lot of money. There will be a lot of issuance from the treasury. Might that change the way issuance is done . Should we reconsider and ultralong bond . Some people have considered a war bond. Should we be thinking about different issuance coming out of the treasury . We need to be open to using the whole yield curve to finance this huge increase in debt in the most efficient way possible. I have never been persuaded that the 50 year bond is likely to have the kind of deep market that could be relied on. This is a dangerous time to run an experiment with a new concept. We have very deep, welldeveloped markets. We can go long and short. Debt will for u. S. Remain strong in the Global Economy we are in as long as it is clear we are responding to this crisis and we have the resilience to bounceback. The place where i am worried about the financial shortfall being crushing and without federal assistance, there will be terrible consequences is at the state and local level. They operate many of them with balanced budget requirements. If they cant fill the holes because of the sales tax revenue being off, gasoline tax revenues being off and income taxes being off and delayed, they will start cutting back on Vital Services and they will be canceling things like road programs. That will have macroeconomic consequences. I have spent most of my career worrying and i continue to about the longterm sustainability of our deficit and our debt. I dont believe in this moment, if we are penny wise and pound foolish, it would be a good thing. Takes. Take what it the economic costs will be greater and the deficit will be greater. As for as financing, we need to be careful as treasury typically is in going into markets to make depthhat we maintain the and liquidity for what is a large increase in federal borrowing. We were listening to jack lew, the former treasury secretary speaking with david westin. Lets turn to credit markets. A lot of chaos and some folks are finding opportunity. Lets bring in Catherine Doherty who covers this at bloomberg. Explain what is going on. When you look at the credit markets, youre seeing this violation issed misvaluation. What opportunity does that provide . Everyone is looking for the opportunities no one else is or that are arriving just in time to put money to work. After the selloff last month we saw a number of funds go to investors asking for fresh capital. The reason is they are seeing high grade investmentgrade debt that normally would be trading at much higher valuations come down. They are seeing this opportunity might not last long. They want to get in right away so that if this opportunity ends up rebounding and the prices snap back to where they were before the selloff, they will have the opportunity to do so. Some of the funds include highbridge capital, night had capital. Are they all targeting struggling companies, distressed companies, ones that may not survive the epidemic, or are they going after Healthy Companies . What credit are they looking at . , it is not all distressed troubled situations. Some of them are. But the ones these funds are looking at they would not have looked at before our highyield investmentgrade are highyield investmentgrade companies, fallen angels which have created forced selling or have run into new pressures with businesses being closed, that have pushed prices down further. These investors bet normally look at lower prices are seeing new Companies Come in every day. Analysts having to do work on new sectors they had not beforehand. Reporter,essed but it i have had to look at an entirely different subset of companies and you conversation starting with these funds that are bringing in the capital to start looking at them as well. Is romaine is this like mean reversion where people say, it will have to correct itself, or is there a deeper fundamental analysis going on . Is the thing. The caution is how deep someone brought up to me and said we see that there is a fall, but how wide does this go . If you are getting into situations you believe there is going to be a rebound, what will these Companies Look like two or three months from now . Is the stress going to continue so much so the valuation stays lower . Is it an Immediate Impact that remains . These are questions analysts are having to do. There is uncertainty because we have not had any comparisons for previous times that have caused disruption across all sectors. I guess these funds have some of them their work cut out for them. Thank you so much, and stay safe. Coming up we are talking about colleges in crisis. How the virus epidemic might be too much for some schools to overcome. This is bloomberg. Rg. 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. Scarlet the finances of some small u. S. Colleges have big problems and the coronavirus makes it worse. Work for our reporter writes about this and while some schools have managed to persevere, it is impossible to say how they will adapt to the latest hurdle. But it seems more likely than ever they will all clear it. Lets be clear, these are the nonelite schools that are facing the music. The likes of harvard and princeton with big endowments will be ok. Having said that, the smaller schools that have lived on the edge financially for years, when you look at the financial metrics, what does it show about their distress . Byi grouped these schools days cash on hand which serves as a proxy for liquidity position. , 1000 orer schools 2000 students, the have operating revenue of less than 100 million. These schools are living on the edge and they rely on consistent istion, enrollment and it unclear if those trends are going to keep up Going Forward because all of a sudden you have a combination of Remote Learning demographicthe trends which are not favorable. Some of these companies you are writing about, they have debt outstanding, bonds outstanding. Is the idea that they cant repay that existing debt, or they cant raise Additional Capital to keep it going . What is the issue . Rep