tv Bloomberg Markets Americas Bloomberg April 27, 2020 10:00am-11:00am EDT
york, 3:00 p.m. in london, and 30 minutes into the monday trading session in the united states. from new york city, i'm vonnie quinn, along with my cohost guy johnson in london. this is "bloomberg markets." today we have green on the screen. the dow jones industrial average up zero point 6%. the s&p 500 up zero point 9%. the nasdaq up 1.2 5%. it is a huge week for tech earnings, alphabet and many others on tap. we've got some upgrades today as well. diagnostics atst citi accounting for some of the s&p 500 gain. then the bank of japan saying it will buy as many bonds as it needs. that is strengthening yen today. new york crude come of this contract at $12.60. the u.s. 10 year yield at 64
basis points. let's get to our guest now. we have a very fascinating guest right now. ed hyman, institutional investor economist of the year for decades. the surveys he carries out are unparalleled in the industry. we are going to talk about central banks, the ecb, and the fed meeting this week, and the bank of japan coming out with some decisions today. chairman of evercore isi, is with us now. small and medium-sized enterprises, and companies that do business is with china. obviously, the data is falling off a cliff right now, but in your estimation, what will the severity of this recession be in comparison to, say, 2008? ed: much worse. but this is a very interesting time for me. i've probably been the most
bearish person on the street with our gdp numbers down 50%, and like you say, things have been kind of freefall, company surveys included. i just wanted to share with you that for the past two weeks, our surveys have increased a little retailers and restaurants. the checks that were sent out last week and this week look like they might have done a little bit, and i am beginning to think that i am too pessimistic on the economy. vonnie: that's fascinating, and. talk about specifically retail and restaurants, which had seen very hard hits. whetherestionable as to all of that sector would come back at all. what is your estimation for how many of these businesses were able to take advantage of the ppp program, for example, and hold onto most of their workforce? ed: well, not that many,
apparently. is as a help, but layoff announcements, unemployment claims, employment have been very hard hit. but the openings that are like in london, to australia to the states, those are coming sooner than i thought. the stimulus that you mentioned is part of a gigantic mosaic that has unfolded over the past year. intensified it's with the fiscal stimulus we got here in the states last week, a big package in japan. .he fed is working hard you mentioned the bank of japan. the ecb is going to have some stimulus out this week. so the stimulus we are putting in the system i think is maybe three or four times bigger intody then what we put in
thousand eight and 2009, -- put 2009.2008 and there are a few green shoots, like restaurants and retailers. vonnie: how long before demand fully returns, do you think? well, that's the really good question. we talk a lot about the rate of growth, what it is going to be next year. i have the economy weak this than others, but not that different. the question is, when did we get the level of the economy before it was when it went down? i don't have that until 2022 or 2023. so i am beginning to think that is too pessimistic. it is also may be implausible because if the economy stays down that
all sorts of help to pay in terms of bankruptcies, layoffs, pay cuts, capex cuts. so i am thinking about just what you asked. windows the level of the economy get back to where it was in 2019? the same is true for earnings. i have earnings next year at 130, and they were one last year. -- and they were 165 last year. i am beginning to wonder if i have gone too far on the dark side. vonnie: you calculated over the last nine months, 300 60 stimulus measures have been announced, and now you're how that could change. should the fed cut again? what should it do? on yourone who has been
show does our monetary policy work. he has unloaded the most provocative view about thatssive forward guidance the fed should communicate with goingt they will keep qe and keep rates at zero until the .nemployment rate is below 5% it is over 20% now. and inflation is back to 2%. -- or is up to 2%. . let's put it that way. .nd that could be years to come so basically, that is the next big thing for the fed in terms of communicating very aggressive forward guidance. whenever they do something like that, it puts pressure on other central banks to also have aggressive forward guidance. so the fed has been leaving here, but let's not forget we
are lee done $2 trillion -- the fed has been leading here, but let's not forget we have already fiscal trillion in stimulus. guy: good morning. guy in london. sorry for the delay joining the conversation. using the fed will ever cut below zero? ed: i don't. voice.nice to hear your i don't think they will because the are going with these, other measure i mentioned, the aggressive forward guidance. so i think that is going to be their preferred route as opposed to going to negative rates. i guess both would have the same message, which is whatever it takes. worlds clearly around the
, the pattern of policymakers, both fiscal policy and monetary. has been notiscal as aggressive so far as the monetary, but of course, on monetary, you only need a few people to agree on something, whereas fiscal policy, whether it is in europe or the u.s., many people need to agree on different fiscal measures. one of the only asset classes out there that isn't confused by what central banks are doing right now is the oil market. it is not being interfered with by central banks. we are clearly seeing some sort of attempt at management by opec plus and others. what signal are you taking away from the crude market right now?
oil, particularly wti, down sharply again today. ed: yes, i see. vonnie had that question about the level of the economy. economy righthe now obviously is very depressed. one of the fallouts for that is the fall in the demand for oil, and then the drop in the price of oil. will see inhat we this episode a number of financial crises resulting from a drop in the economy, a drop in the demand, a drop in the level of gdp. price, and myil view of things, was the first one. it hasn't gone away. still the path of least resistance is on the downside. i am sure there will be other prices that, when we look at a conversation like this a year
.rom now, we will say, oh yes the emerging economy blowing up was one of those, or may be a big company or series of bankruptcies. but you can't take the economy look out much when you the window and see empty streets, empty hotels, md whalesants, not have the -- empty hotels, empty restaurants, and not have the whales flipped to the surface. it,ink it has a single to obvious,on to just the that it is devastating to the u.s. energy industry, so we think the rig count will have a very sharp drop in the wake of oil coming down. vonnie: i want to hear a little bit more about the whales coming to the surface, so stay with us. ed hyman is chairman of evercore isi. let's check on the bloomberg first word news. here is ritika gupta. ritika: british prime minister
boris johnson is back to work after recovering from coronavirus. he urged people not to give up on social distancing measures. he said lifting the lockdown now what risk a second spike of infection that could do more damage. new york state could begin reopening as soon may 15. governor andrew cuomo has laid out a plan that starts with construction and manufacturing. he said it would probably begin upstate before moving to the new york area. the state reported 357 deaths yesterday, the lowest in almost a month. in spain, officials are reporting a slight increase in the number of coronavirus deaths. the country has begun to gradually relax stringent lockdown measures after more than six weeks. officials will monitor households to try to lower the risk of a renewed outbreak. spain has reported more than 23,000 deaths. new york oil plunged today,
falling below $12 a barrel. that snapped a four-day gain. saudi arabia has already started cutting back on output, but investors are focused on the rising oil glut. there is concern that it could lead to a rerun of last week's crash. global news 24 hours a day, on air and on quicktake by bloomberg, powered by more than 2700 journalists and analysts in more than 120 countries. i'm ritika gupta. this is bloomberg. vonnie, guy? guy: thank you very much, indeed. still ahead, we continue our conversation with evercore isi chairman ed hyman. later this hour, we are going to look at the real estate industry planning for the future with cushman and wakefield ceo brett white. all of that coming up. this is bloomberg. ♪
vonnie: live from new york, i'm vonnie quinn, with guy in london. this is "bloomberg markets." let's check those markets with kailey leinz. kailey: things are in the green in the u.s., as well as erupt. you are getting a lot of things -- as well as europe. you are getting a lot of things that into optimism. the boj coming out with added bond buying. governments detailing how they are going to open back up the coronavirus pandemic. one risk asset that is not dissipating in the rally is crude, down by nearly -- not participating in the rally is , down by nearly 30%. the market is worried it is not going to be enough to balance the demand story. the supply glut continues, and
they are running out of places to store all of that excess oil. no surprise, energy is the underperforming sectors today. diamond offshore actually is not trading at the moment after it filed for chapter 11 bankruptcy yesterday, but it is dragging down some other peers like transocean, down by about 14% today. also seeing the likes of continental resources lower by about 5% as north dakota is starting to pull back on oil production. occidental production down by about 5.5% today. of course, carl icahn heavily involved in at story. take a look at the broader market. it is earnings season. earnings broadly aren't looking stellar. it is really their earnings going forward that have been statistically re-rated lower. s&p even given that, the p/e ratio is still the highest since all the way back in 2002. stock valuations are starting to look just a little bit frothy as we continue to see this rally take shape.
finally, just from an earnings related mover on the day, we are getting tech earnings coming this week. twitter is on deck in just a few days. it was upgraded at mizuho today. yes, advertising revenue is expected to be down, but the company says that this valuation, it looks attractive. that stock is higher by about 5.5%. facebook up about 2%. similar story. people saying increased engagement on facebook and instagram will offset the weaker ad prices. finally, lab core and quest labcorp and quest diagnostics up at citi, saying that they will be a new terror but i'm -- a new paradigm as testing is key for reopening. guy: absolutely. that's where i'd like to pick up as well, see what is happening with the tech stocks. a massive week for earnings. about 1/3 of s&p companies do to
report this week. they represent about $11.5 trillion in market cap. nearly half of the index's value. we are back with ed hyman, chairman at evercore isi. the recent rally has been led by tech. we've got a whole load of names out this week. amd, amazon, facebook. do you think these are going to justify the leadership that has been exhibited by that sector? ed: this is not my wheelhouse really, but i do think it will. here from myorce perspective is the enormous monetary stimulus that they put in the system. they say disconnect -- there is a disconnect between the economy , which, although there are a few green shoots, it is generally plunging, oil a part of that story, earnings a part of that story, and the pmi's
just devastating, but the stimulus they are putting in, whether it is money growth or interest rate cuts or fiscal stimulus, those are the things that have the pes up in the market essentially looking past the current collapse in the economy to what is going to 2022. in 2021, but it is really the stimulus that has been very strong, and frankly, surprising to me. i've been all over this is a theme, but it is still more than i expected. ay: as you say, you've got kind of fairly dark outlook on what is coming down the pike towards us in terms of the economic story. we talked a little about oil and what is happening there, and the massive turbulence we are getting. you mentioned as well that this could be first of many such of what issuch tells
really happening in the economy. where else do you expect to see similar stories bubbling up? the things one of where you really can't identify the whales until they surface. [laughter] , but and analogy emerging economy getting in trouble could be one. it could be some trouble over with theou in europe, stress on the weaker economies in the euro zone. big company that surprises or a wave of bankruptcies. i don't have a favorite, but i do have a strong sense that you cannot take the economy down this much, this quick, and keep it down for a while and not have some very serious disruptions. again, oil is certainly the one to point to right now. it's weakness is not the same as
the strength in the s&p. oil is the price of a good, whereas the s&p is the price of an asset. the policymakers have been able to get upward pressure on asset prices, but you cannot change with thee of the virus bank of japan bond buying. it just doesn't work that way. but you can help financial markets, which is what they've been doing, and hopefully that will help the economy once the virus runs its course. vonnie: you have a deep interest in china as well. you are on the board of the china institute, and some of your businesses are in china. how easily does the supply chain ramp up again? is it difficult for that to happen, for the supply to resurrect itself? china, asbig fan of
you are pointing out, but i am getting more and more disappointed as the weeks go by because i think companies are going to be reluctant to reestablish their supply chains in china, and to a certain extent, the episode the virus has been another increase in or trust between the u.s. and china. so it will be slow. they have done a really nice job under control.us not out of the woods. we serve a 21 companies that do business in china, and that survey has come from about 30 to 35, but my 35 is still really weak. it is improving, but it is a
little bit slower than i had hoped for at this point, which makes me think that the u.s. was a little bit slower. ed, we are going to have to leave it there. ed: guy, my pleasure. vonnie: thanks, ed. guy: it's been great to speak with you. we really appreciate your time. ed hyman, chairman of evercore isi. this is bloomberg. ♪
vonnie: it is time for your latest bloomberg business flash. apple is reportedly delaying mass production of its flagship iphone this year. according to dow jones, production of the new devices will be pushed back by about a month. the coronavirus outbreak has heard global demand, plus it disrupted manufacturing in asia, where most iphones are made.
investors appear to be ignoring the record loss forecast because they anticipate a share buyback will boost softbank for years to come. firmirm soccer -- the suffered a record loss due to bad bets. the japanese company says the coronavirus outbreak has hurt sales of appliances, electronics, and auto parts. that is your latest bloomberg business flash. still ahead, brett white, ceo of cushman and wakefield, will join us for a look at how the real estate industry is looking at reopening the economy. this is bloomberg. ♪
let's check in on the bloomberg first word news. here with the details, ritika gupta. ritika: the white house is reportedly finalizing died lines for the reopening of society. that includes the phased ,eopening of schools, camps restaurants, and other businesses. it has led to sharp debate between health experts and other officials. a key test of europe's efforts to restart public life in the economy. italy's construction and manufacturing sectors will be the first to resume. prime minister giuseppe conte warns that a second wave of coronavirus infections could cause irreversible damage. greece will begin gradually easing its lockdown restrictions next week as well. the first phase will see the reopening of shops and hair salons. churches and some schools will start operating during a second phase. greece's prime minister will unveil more specifics tomorrow. the mystery over kim jong-un's health keeps growing.
there's a report about a visit by a chinese medical team, and another says that the north korean leader's armored train has been spotted near a coastal compound. he has not appeared for two weeks. there are rumors -- south korea says that rumors that he may be dead or in poor health are untrue. global news 24 hours a day, on air and on quicktake by bloomberg, powered by more than 2700 journalists and analysts in more than 120 countries. i'm ritika gupta. this is bloomberg. vonnie: thank you. let's turn now to the oil industry. crude falling below $13 a barrel as the biggest oil wtf will sell out of its futures positions. the industry is running out of places to store oil. let's bring in bloomberg's annmarie hordern with more. explain to us what is meant by the etf moving out of the june contract. annmarie: good morning. we are seeing a lot of volatility in this wti contract. as you came to -- as you say,
is moving asetf far out as june in 2021. they are citing market conditions and regulatory requirements in order to do this, but also, you have to think that they clearly do not want to be in the front month of this curve. maybe they are just thinking about what happened last went low,en oil and they are starting to move out well ahead of this curve. even if you look alongside what we are seeing for the remainder of the month down the year, yes, june is trading below $13 a barrel, but even july is below $20 a barrel, $18.17. the oil market is clearly flashing too much oil to stop producing. guy: it is fascinating.
we are starting to see the saudis beginning to stop producing. we are going from 12 to around eight. fronts the more those month contracts get withdrawn, there's kind of a self filling prophecy. where in the world do we see storage capacity still available? where is it possible to put crude right now? annmarie: that is the million-dollar question. it is very hard to find storage right now, no matter where you look. we see the industry reaching nearly tank tops. south korea, one of the biggest in asia, is nearly at capacity. south africa is nearly especially. cushing, very much tied to these wti contracts, if you don't financially settle up in the derivatives future market, you have to take the crude dollars. goldman sachs says that is going to be complete before by the first week of may. on top of that, even if you could get storage there, it is
already booked out. also, something we haven't seen in years off the coast of the united states in california, we are seeing more than 20 million barrels a day. that is 20% of daily consumption. really, it doesn't matter where you look right now. the storage just completely exhausted, completely evaporated in terms of where to put this. we started to see some cuts from opec+, but without demand picking up and storage at tank tops, there really is nowhere else to put oil. vonnie: after all of the talk that went on in the negotiations and someone, you almost have to feel bad for the opec+ countries that finally did come to an agreement, and as guy said, saudi cutting already by nearly 4 million barrels a day. it is a huge cut, and saudi won't really see any gains from that, well it? annmarie: no. the problem is the opec cut was historic, the biggest supply cut
,e have ever seen in history but unclear if you will see 100% compliance. for themn easier way to ramp up to the friday unwinding. from russia, big limb or of hope. russia is the world's largest energy producer right now. their exports now are going to be the smallest in about a decade. so we are seeing major producers ratchet back and come into agreement with the opec+ deal, but the problem is it is just not big enough, when you look at the demand picture. the demand picture is so weak. we are seeing serious demand destruction on top of that storage being completely exhausted. this is why the futures market is really just flashing red yet again today, a week after we went negative. guy: thank you very much,
indeed. bloomberg's annmarie hordern covering the oil market, as ever. keep an eye on abbott today. testt's covid-19 antibody getting a nod. there's also news about what is happening in terms of contracts in italy. all of this coming together to generate quite a decent stock bounce. what are we going to talk about next? we are going to stay in the related space. our stock of the hour, coming up, is bayer. the company's results out a literarily -- a little earlier on. this is bloomberg. ♪
♪ guy: from london, i'm guy johnson, with vonnie quinn in new york. this is "bloomberg markets." here is our stock of the hour, kailey leinz. kailey: our stock of the hour is bayer. shares are up by about 4% in the european session today, their highest in about seven weeks after first quarter results. they topped expectations. earnings came in above estimates. bita beate estimates. it was led by higher demand in the crops division, as well as an health and pharma. revenue in the consumer health division was up by 14%. analysts pointed out today that bayer likely benefited in the first quarter from advanced buying ahead of the coronavirus pandemic. that begs the question, what is the picture going to look like going forward after the first quarter? bayer is standing by its core earnings target for the year,
but said today that it can't be reliably obsessed given the uncertainty surrounding the pandemic and how it is going to impact results. where it is having an impact directly is in the roundup litigation. of course, roundup is a legacy asset of monsanto, a company bayer acquired several years ago. . it faces allegations that that weedkiller causes cancer. bayer says there are now over 52,000 plaintiffs in that roundup case, and interestingly, it said that talks have significantly slowed down because of the pandemic. theye call, executives say see covid-19 continuing to slow down the talks for the immediate future, and that it is impossible to predict when the talks will actually end. because of that, the company's warning of considerable liquidity challenges, up to $10 billion in liabilities. but if it is any consolation, bayer says they kind of settlement for that litigation will not impact its dividend. they know it is key for retail investors.
of course, this ongoing roundup issue is really overhanging the ceo. he faces a confidence vote at the company's annual meeting tomorrow, and that will be held virtually. that is our stock of the hour. thank you very much, indeed. kailey leinz joining us with our stock of the hour. let's turn to what is happening in the oil market. we are joined by scott bauer, ceo of prosper trading academy. less talk about about what is happening in the crude market. big move lower in wti today. a move lower in print as well. the spread between brent and wti is substantial, and is getting better once again, seven dollars a barrel roughly. do you think it is going to happen anytime soon? scott: it is getting to that outer edge. if you look historically, we have seen it as wide as $10,
$11. recently it was almost trading at parity. what it is going to take is really, and my opinion, opening up of the economy. i am talking about where we use west texas. as you guys have completely hit spot on, there's nowhere to put oil anymore. all of the production here in the u.s., shale, everything, there's nowhere to store it any the demandbesides destruction, that is what is absolutely annihilating the price of oil here. traders i have spoken to from the trading floor tell me that the cushing space, cushing, oklahoma, which is being forrted as about 70% full storage of west texas, they are telling me that all available for the already leased coming months, so there is
literally nowhere to put this oil. i'm also hearing, and annmarie hordern was talking about this earlier on, we are getting a lot of volatility in the front months, the june contract, and getting into july as well. if it becomes a self fulfilling prophecy, the more people that don't want to play at the front end of the curve come the more volatile this contracts become, the more people want to avoid them. is that where we are now, you just don't want to go near those front month contracts? scott: there's no question about it. what you are seeing in west especially, investors are moving out to those later months because of what just happened here. the next settlement date, you have may 19 for the next west texas contract, but not until may 29 for the next brent contract. that 10 day span, which doesn't seem like a lot, it is a lot
in this world. that is also causing the bigger spread we are seeing between west texas and brent. it is probably going to expand even more, but you hit it spot on. traders and investors alike don't want the risk of that coming near term expiration contract. just in terms of what we can now expect, we are getting a lot of volatility. that is now a given. the oil prices going to be bouncing all over the place. what signals do you think it is sending? how clean a signal is the oil market now for the market economy? scott: it is not at all, quite frankly. there is such a divergence between what we see in the commodity space, specifically the oil space, to the equity market. there is such a disparity right now. i wouldn't count on what is happening right now in the oil space to give us any real indication of what is happening overall, economically or in the
equity space, because there is such a disconnect. but again, we are not talking about -- we are talking about economics, but the economics right now totally based off of what is happening with covid. actually get to start opening up the economy -- and i am not talking about here and there come bits and pieces. 30% ofe get back to 25%, what can be considered normal, i think you are going to see a big spike up in oil, but really not until that time. guy: ok. that is fascinating. scott, always good to get your take. thank, indeed. scott bauer, ceo of prosper trading academy. here in the u.k., the chancellor of the exchequer is briefing parliament on the economy. let's give you a few headlines in terms of what is coming out
from that. rishi sunak saying over 4 million jobs have been furloughed. the government largely paying that bill. 1/4 of businesses have stopped trading in the u.k. that is a terrifying number. also announcing a new micro loan owners to get them credit, and critically. this has been a huge debate in the u.k. the government is going to guarantee 100% of loans for small firms. it is also worth noting that michael gove is speaking at the moment, saying civil servants are being deployed away from brexit to covid. that may speak to the idea that the u.k. could potential he beheaded for an extension, though the prime minister very keen to pour cold water on that kind of idea. but resources have been diverted away from brexit toward the idea that we should be spending more time focusing on covid. maybe that speaks to the
vonnie: live from new york, i'm vonnie quinn, with guy johnson in london. this is "bloomberg markets." the global real estate market is feeling the strain over weeks of lockdown. joining us is brett white, ceo of schmidt and whitefield. also with with -- ceo of cushman and wakefield. also with us is bloomberg correspondence and alibaba. -- correspondent sonali basak. how much of your workforce is coming back? brett:it is hard to -- it is hard to know who will be back in business, but i will say
that when this pandemic begins to settle down in various jurisdictions, states, countries, and so forth big in the back to work protocols that i suspect most every business will be, and one form or another, making that slow transition from home offices and remote working back into the market. companiesere are some out there that say they are going to operate with a lot smaller real estate footprint after this is all over. morgan stanley ceo james gorman told us that, for example. are you preparing for the reality that a lot of clients might just operate with less real estate, and what could that look like? brett: it is a great question. i think it is easier said than done. i see jim's comments, and i know exactly how jim is looking at the world right now, which is the same way we all are. we have had this experience of
watching our employees work remotely for the last six weeks, and frankly, productivity levels of folks working at home has been the same of those in the office. there's not a large percentage of the workforce in most companies that can work permanently from home. weown view is it is unlikely are going to see a lot less space consumed by companies, but it is highly likely that we are going to see companies be a lot more flexible on how people use office space, when they are in the office, when they are not in the office. i do think something has changed in the last few weeks. the first two weeks of this pandemic, there was a lot of talk around, gosh, it is easy for our folks to work at home, so let's just not come back. i think people who have actually considered how that works have changed their view on that. so it is more now around flexible workspaces, flexibility of where people work on forth, but my so
guess is he would not see much of a decrease in the use of office space. vonnie: but how do you convince wall street? carl icahn is shorting commercial real estate. mortgage rates got killed at the beginning of this. what do you say to wall street to prove you can get your tenants back, paying 100%? all,: well, first of commercial real estate is a very large asset class, so there is a different story in, for example, residential mortgage reads. they are in a completely different universe of pain right industrialay, logistics owners, who are really enjoying incredibly strong demand at their facilities, fulfillment centers and e-commerce, etc. so i think you're going to have a different story across each type of asset class. office space, generally, i know we will see all companies in office space come back to work. whether they bring everybody
back or 90% of their people back, we don't know. certainly, all major companies, ourselves including, are looking at the market and saying, we had a number of people work from home. they are very productive. who can we leave at home? it would be better for them. let's commute time, less inefficiency in their day. when you look across your employee stock, there are people that can absolutely work from home. the way the market looks, when you think about how the market looks at this industry and digests this information, i think you're seeing the pain where it belongs. retail is in triage, no doubt about it. what happens to retail over the next year to two years is a big unknown, but it is certainly not going to be good news. on the other side of that spectrum come you've got industrial real estate, which is enjoying some of the best days they've ever had. sonali: how is this impacting your business?are you going to have to revise your earnings
expectations for the end of the year? brett: i thick it is fair to say that 99% of the companies that provided guidance for 2020 have taken that guidance away, or will take that guidance away. we will be no different than that. i think the way in which we are all looking at this year, 2020, has changed demonstrably over the last six weeks. for our business, we've been through many, many downturns. the good news at cushman and wakefield is our senior leadership team led companies through the tfc. i've dashed through the -- through the gfc. you have a playbook, and that is you really watch expenses carefully. you know that transaction activity and brokerage deals are going to slow down until there is price discovery. you modulate expense against revenue, and look for what recovery might look like. i think for us and for most
firms in this industry, we are really looking at 2021 and thinking about what might recovery look like, how might that come back into the marketplace. but no doubt about it, the early quarters of 2020, the second and third quarter are going to be interesting once for all of us. sonali: you mentioned expenses are some thing you're going to be keeping an eye on here. does that mean you are making headcount reductions anytime in the next year or so? brett: we announced an efficiency program at cushman and wakefield last november. obviously, it was not based on the pandemic. it was based on our view that there is a better model for commercial real estate services in this industry has used for many years. we implanted that program in november in december. that did involve some employee reductions. but we really came into this black swan event with those done and in place. i think it gave us enormous
advantage. we don't really need to right now think about further large employee reductions because of the fact that we had this program in place and really executed by the first of the year. vonnie: brett, thank you so much for your time today. we will check in with you again soon. that is bright white, cushman and wakefield ceo. of course, our thanks to bloomberg's sonali basak as well. we are counting you down to the european close. we will talk fx rates and lots more. meantime, we have the 10 year yield at 64 basis points right now. not really moving. stocks are holding onto gains of more than 1% for the major indices. this is bloomberg. ♪
johnsonm london i'm guy , with vonnie quinn in new york. we are counting you down to the european close on "bloomberg markets." travel and leisure the lead gaming sector today, led by lufthansa. we will get numbers from the airline sector throughout this week. i would caveat this, though. we are seeing quite low volume in today's session. that may be tells you something about the markets' conviction. the other thing is what is happening with brent crude today. not down as much as wti, but off by about 8%. euro-dollar catching a bid. we've had the boj today. the fed and the ecb still to come. after italy dodged a downgrade from s&p friday, you've got a trading 1.77%. yields moving