Rescue, is it really going to do very much about the problem . Futures pricing in the fed rate cuts at three for the rest of the year but of course this as more governments are taking action and coming to the rescue with fiscal measures. Speaking nowr abe saying japan will take bold measures if needed. He is also saying he will soon announce policies tackling school closures. Schools are in hong kong and now japan will follow suit from march 2. Let us get a quick check of the markets. Equity markets are giving into the rest of the global selloff. The cfx 300 is often the low of the day. But still down by more than 1 . The hong kong hang seng also testing the of trend that had been in place since august. Japanese equities bearing the brunt of the selling. In a correction position. Off by more than 3 just today. As np futures are rebounding just a bit. Up about 0. 5 after the worst day since 2011 and a decline of more than 4 . I want to take a look at some of the risk propositions. Represene dollar, china, 1 . Isk and the risk has not been contained to the equity market. Look at the dollaryen. Rebounding after three weeks of losses for the yen. The best week since august. And the safe haven bid pouring into the u. S. Treasury market. To year treasury yield down 30 basis points. A look at the carnage we are seeing in this market at the moment. Let us get more. David and is in hong kong. How bad is this compared to previous bouts of market capitulation . David we are talking 2008. Not to say that obviously back then, when credit markets were freezing. Not to say that is happening right now but in terms of the wise, percentage the fear indicator, the buying pressure and selling pressure. In 2008. A lot of comparisons are taking us back there. We saw it go from record high to technical days. Tion in just six the fastest time we have ever seen those milestones put together. What it shows is the uncertainty of markets as it pertains to the nature of the risk and the inability of Central Banks to get markets through this type of risk. It is being questioned as we speak even as we see rate cuts getting priced into the markets. The when is taking any risk at the moment. Lines out oftest south korea. We have been waiting for extra stimulus measures coming from the country and we are hearing they plan to prepare an extra budget proposal. It would be bigger than for the mers in 2015. A rate cut. D this time around, we do not have that. The kospi is entering oversold territory already in the session. When will we see markets reach a bottom . David that is a good question. What is interesting is when you talk about fiscal stimulus in the case of south korea, all of the measures and there have been a lot that china has put together as well. We were talking about europe and the prospect of germany doing the same thing. And look at what economists are saying. A lot of these things will hasten the recovery after this period of pain but it will not solve what is going to happen in the next few weeks. Tomorrow will be a good example of that. React to datas and tomorrow we will get a good example. An example of how bad data is going to get. Pmi data out of china. The manufacturing data. Not quite back to the 2008 lows but we could compare them in terms of scale. Markets bottoming. Stop reacting to we seeeadlines that right now. Pronounced front and center. We continue to see the markets falling. The jakarta composite slumping to play 5 , the lowest level since february 2017 despite the fact that we have not seen any confirmed cases of that virus in indonesia. Risingonavirus cases outside of china. South korea, topping 2000. The rate of infection seems to be slowing at the epicenter of who says we, the are at a Decisive Point. Let us cross over to Tom Mackenzie. Is there any timeline for when this could be contained within the country . Tom there is a medical expert that has become something of a point person for journalists and those of us trying to get a better feel for how the government is preparing for this. He was at the forefront of the fight against sars in 2003 and he says his forecast is that this will be largely contained by the end of april. We have also heard from other Health Officials in china that you could potentially see another rebound in infections as people returned to work. In the last few hours, we have seen news across the bloomberg thatg in some cities, transporters are getting back up and running. Shifting people around to get them to work at that remains a risk even though the end of april seems to be the forecast from this key advisor. Today, downal cases from yesterday. You continue to see a slower rate of infection in china. 36,000 who have recovered from the disease. To death rate sadly goes up about 2008 right now in china. Calling this ais Decisive Point as cases are surging global a. Globally. Absolutely, just seeing those numbers out of south korea for example. Above 2000. They are struggling there for beds and struggling to have enough medical facilities to treat people. The who saying we could be on the brink of a pandemic. When you look at how it has spread to other countries come it does suggest that you could be at this point of uncontrolled geographical spread which is the definition for a pandemic. They are saying it could now be in the cards. Look it what is happening in the u. S. They have started to step up their screening of passengers traveling from that country to the likes of italy and iran and south korea and japan. They are monitoring in california a number of people who are of concern. And you have the first case of Community Spread infection, or it is believed to be. Which could make things much worse in the u. S. The administration has done everything and done a good job but continuing to monitor what is happening statewide as they ramp up their facilities. They have enough masks in the last that is a concern as well as the testing kits. As the there are a number of challenges for the u. S. Tom, thank you so much. Tom mackenzie in beijing. Breaking news. Market moves even as we were speaking to tom. In south korea, a lot of speculation of the fiscal heavy lifting and what role it could play in terms of the coronavirus. South korea preparing more measures to monitor the spread of the virus. The bank, we saw holding fire and not cutting rates to a record low 1 largely on expectations that the government will be submitting fiscal measures with the extra budget and a see whether they will have an impact in terms of lifting Economic Growth or at least putting a floor under economic deterioration. We are also taking a look at the indonesian market. If it closes at these levels, we will see that market goat to be go to bear territory. Wille watching how this impact the indonesian economy even though there have been no confirmed cases of the coronavirus out of indonesia. That market seeing the lowest levels since february 2017. Even preglobal financial crisis levels. A number of the markets across asia heading towards correction territory. Su keenan. In the u. S. Economy was slower than first reported at the end of last year according to gdp data. Inventory figures kept the economy expanding but Consumer Spending was revised downward and nonresidential investment matched the steepest rate of decline since 2015. The World Economy may be heading towards its worst performance since the financial crisis. As hopes for a swift rebound from the coronavirus fade. It is expected there will be 2. 8 Global Growth this year, the weakest since 2009. Central banks are holding off from cutting Interest Rates but economists are joining investors are addicting looser policy. Three fed reductions are already being seen for this year. The u. K. Has had a tough timetable set for discussions with the eu. Johnson said if they cannot agree to the broad outlines of a deal in four months, they may begin to prepare for a no deal departure for january. In canada, they removed tariffs on 98 of goods without forcing them to join the block. A crisisresident held meeting with his top Security Officials after an airstrike left 33 turkish troops dead in syria. From basharmbush alassad was the deadliest attack on turkish troops in syria so far. Turkish troops entered syria in a bid to enforce a truce between rebel fighters near idlib. 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 am su keenan. This is bloomberg. Still ahead, how businesses and asia are mitigating risk amidst the uncertainty of the outbreak. We will ask the ceo of mercer asia later this hour. Seth blackrocks neeraj sees an up tech. That is just ahead. This is bloomberg. Shery u. S. Futures picking up and accelerating gains at the moment rising 0. 7 but still at a time when we see asian stocks getting off to another brutal morning, the rally in bonds has eased. Asianxt guest expects fixed income and credit markets to get more support from the monetary and fiscal policy side. Joining us now from singapore is neeraj seth, from blackrock. Thank you for joining us today. Outperformance in the credit market across asia. What is driving this . The key, whenk you think about the credit markets, it is a combination of the fundamentals of the valuation and the drops. Valuations in asia have been fairly attractive for the last 18 months after underperforming in 2018 and to some extent in 2019 compared to develop to markets. When we think about the macro backdrop, we have a mix of a meaningful readjustment or recalibration of the Global Growth and the outbreak of the coronavirus. One thing that has not changed is the demographic backdrop and the need for income. There is some caution in the nearterm. And a focus on quality. We do think this is wellplaced. Theave to be mindful of technicals. In the medium time, we remain positive. Sectors youhere any think will outperform or underperform in this environment . Neeraj we were cautious coming into the year on some of the sectors like Chinese Industrial highyield which is much more impacted by the slowing growth in china and the u. S. China negotiations. We had mixed views on indian high yields. Mixed views in indonesia. We continue to stay positive on the chinese real estate highyield development. Updo think you can pick reasonable risk. Given the backdrop, we tend towards Higher Quality in the portfolio. Haidi we have seen asian dollar bond spreads really blowing up. Do you expect this to continue . Neeraj i think there is probably more reason to go in this direction. We are still in the midst of understanding the outbreak of coronavirus. Everyone is looking at the possibility for Monetary Policy and the fiscal policy that can come in. The issue that matters the most is the containment of the spread of the virus and how far and and its mortality rate. If we see containment in the weeks and months coming, you will see part of the demand coming back for these risk assets. Others see the risk premium moving higher so it looks more attractive. Haidi what does that mean for issuance . We have seen Companies Going to market even in the last few days. Neeraj i think issuance is going to slow down. Credit markets is from a technical side in terms of supply, it is self correct. Volatility going up, the equity market is picking up a lot. Issuance to slow down in the coming weeks specifically for the highyield credit. There is a lot more cautious attitude from investors in the market. Marketse are seeing the laser focused on every coronavirus headline. Ignoring someps other remaining issues out there such as geopolitical risk or the fact that the trade war has caused but not necessarily over . The trade war has paused but not necessarily over . Neeraj this is probably the most important issue that people need to understand. But it has a low level of predictability. It is an unknown for investors. I would not underestimate the risk of geopolitical issues. The u. S. Politics is picking up. Over the course of the coming weeks and months, the markets will move to the other issues. From a broader perspective, what we need to establish is if we are we moving towards a risk recession or growth slowdown . Given those risks, we are seeing fed fund futures fully pricing in three rate cuts. Is that feasible at this point . What do you expect from asian Central Banks as well . Fed,j starting with the the fed is going to be watching this very closely. The market is pricing in a reasonably high probability. I would argue that the fed will still watch this closely to see how things will evolve. The fed has limited menu ammunition. Do have room from a liquidity standpoint to think about how and when they will purchase. You will see a balance. From an asian standpoint, i arek most asian economies tilting towards the dovish side. Looking for rate cuts in the coming months. Their art towards him issues as well as supply chain issues. They will lean towards more easing in asia. You for joining us, neeraj seth from blackrock. We are getting an update from new zealand in terms of escalating travel restrictions that a number of countries have put into place regarding countries that have had coronavirus cases. They are protecting against the coronavirus saying they will be imposing travel restrictions on coronavirusthe cases there. And the government will not be exempting students from the travel ban. There have been petitions to let some of the International Students come back so they can start school again after they extended the china ban for another eight days. Laceve also seen that take in australia as well. Let us get you the latest business flash headlines. We will get you that next. This is bloomberg. Let us take a look at how we are trading in terms of markets coming online. Indonesia seeing new pressure points. As a result of the coronavirus. Is that part of conversations traders are having . The virus situation is day by day. Its impossible to imagine what we will see next week. This is a very fluid situation. It seems as though we get headlines minute to minute. You dont know whats going to come next. Particularly heading into next week, many traders dont want to belong headed into the weekend because they are unsure of what headlines will drop over the weekend while trading is closed. If we will see this escalate much further at that point in time. Starting next week, we will start to get a good amount of data that will start to encompass this coronavirus time. We will get jobs data out of the united states. Australia,ting in another hectic week. Of course, trying to assess what is going on with the coronavirus, what that means for the economy comes first. Details ofing more the closure of tokyo disneyland. They will be closing tokyo Disney Resort through march 15. Have confirmation from japan saying that schools will be closed from march 2 as well as continued to get concerns over the spread of the coronavirus in japan. Longer from home is no just a privilege. Its a necessity as thousands of businesses are trying to figure out how to stay operational in a virtual world. To assess the impact of this on Business Strategies and insurance policies, we have our next guest. Joining us now from hong kong. Great to have you with us. Seenrms of what you have and the clients you have spoken to, was the Business World prepared for Something Like this . I dont think the Business World was prepared for the speed and pace of this. Many companies had Business Continuity plans in place. Implementing those and doing it on such a large scale was quite difficult for companies. Right. In terms of where you have seen strength of where the influx implementation has seen, has there been any trends on an industry basis or in terms of what the type of Preparedness Companies have undertaken to ensure that they can effectively work in this environment . There are a lot of businesses, you can have the best work from home set up in the world, but there are some things you cant do without facetoface contact. Exactly right. Companies are doing to make things at the moment. They have to ensure the precautions for their employees are in place. They are looking at how things continue to operate. Precautions for employees, a day by day proposition. A lot of it focuses on sanitary supplies, masks, etc. With regards to continuing the operations, it gets challenging. Weve had all kinds of alternative arrangements. Home seen working from across a lot of companies all across asia. It is quite challenging for everybody to manage. When it comes to Insurance Coverage for these kinds of health crises, how do asian businesses stack up . Theres been a lot of question about whether asian businesses are better prepared with regards to their continuity plans. The reality is, there are good preparations that we have discussed around business preparedness. There is limited coverage around insurance. There has been pandemic insurance that has been available in asia and other parts of the world. For the most part, its a very difficult risk to assess. It turns out to be quite costly for companies to afford. Is, itsty is can more about Business Interruption insurance which has limited coverage for these kinds of health epidemics. Seeing how employers need to look at what Insurance Protection they have for their employees in regards to medical care and how expensive that is to cover. Movese you seen any more to relocate offices . Especially when it comes to hong kong. Before the outbreak, there was months of protests. All these businesses have been affected. Disruptionly, the that hong kong has experienced has actually meant that we are better credit for the situation now with the coronavirus. A lot of companies had to implement working from home practices, different it working practices. Hong kong has been able to adjust to that quickly. Is, it will be a sustained time that we will be doing this. We are not seeing any wholesale movement of Companies Looking to relocate their offices. There is so much uncertainty. Picking red relocate would be quite difficult. Most companies are focused on where they have their operations today, how they protect their employees, and how they make sure that they have the right operation in place to continue to operate and ideally continue to grow. What we have already seen is an influx of outflows of people from places like hong kong, hong kong being pretty specific in terms of the fundamentals of the city in terms of being an attractive place for expats term is located. Will we expect to see that kind of thing, a struggle for talent retention for these countries and a change of the trends we have seen in being able to attract talent as well . To adviseiness is qualities on retention. We have seen changes across asia in that regard. Talent in asia is externally hard. Probably the number one priority is how they continue to attract talent and people from all around the world. All of our markets are really competitive. We are seeing a change there in hong kong. The priority is to get through the coronavirus and get back to business as usual. We can continue to attract all the Global Talent that has always gravitated to the region. We are also seeing a lot of question around the fragility of talent of the next 12 months. Whether we will be able to move people around parts of asia or even other parts of the world in the way the companies have the past. Sherrie mentioned the issue of pandemic insurance before. Obviously, the insurance issuance is limited in terms of what it covers. Actual physical interruption or damage to businesses. You areering what advising in terms of how businesses can protect themselves from force Majeure Situations like this. Does it depend on the government that they are operating under . Some governments will be picking up and dealing with the damage think these pandemic assurances that it is extremely difficult for insurers to assess the risk associated with it. I do not inc. It relates to much to government policies. The impact is the strength of the policy regarding the containment of the pandemic. What i do think we will see is a rise in interest and even availability of pandemic Insurance Protection after this event. The world changes so rapidly. What we do have now is more data hadanalytics then we have in the past. Hopefully, it will make the prediction easier. And more affordable ultimately for a companies to avail of as well. Shery renee mcgowan, mercer asia ceo. Over to su keenan. haidi we are having some audio issue there. We will get that sorted out. Much more to come on the impact of the coronavirus on the market. The selloff is accelerating in the asian market. More to come. This is bloomberg. Haidi opec and its allies are working on new deals. Saidroups top official that the cartel and its allies are displaying renewed commitment to reach an accord in the face of the coronavirus. Saudi arabia has been pushing for more production cuts but russia has appeared reluctant to do so. Opec meets next week on march 5. Saudi aramco went public in december raising nearly 30 billion making it the worlds biggest ipo. The saudi government is considering listing it on the foreign Stock Exchange. They have already been in discussions with wall street banks. In an exclusive interview, the thiso chairman discussed with david roman stein. David rubenstein. You went public not too long ago. Nowhe valuation was 1. 7 and we are at 2 trillion for a couple of weeks and now at about 1. 8 trillion dollars. No company is as valuable as ont company but it is traded the local Stock Exchange in saudi arabia. Have you thought about listing it in new york, london or tokyo . We only offered 2 of the company. Owned by the shareholder, the government of saudi arabia. Now, the program is to have a number of listings over the years. We are looking into it. To have more offerings. We have been working for the past 40 years. Today is about 60 years. Like most other oil and gas companies, concessions are between five and 10 years. Aside to a site, we want to make sure this world is big enough to produce more. At the same time, depletion rates of these wells is very small. Have, 86he wells we thes ago or 84 years ago, updated operations for a number of reasons. Is very muchy superb. Waterw emission, we have injected. The water we inject is seawater. And the energy we are using to retrieve the oil is less. That, oil is very important. Fuel,the cheapest fossil the Cheapest Energy source. Fuel, the Cheapest Energy source. Today, you have over one billion people in the world who dont have access to electricity. Get it for those people. Thats why we should be more efficient, but at the same time, we shouldnt forget who we are and what we do. Chairman. Ramcos catch more of this interview on the David Rubenstein show peertopeer conversations wednesday, march 4, at 9 00 p. M. New york and 7 00 p. M. Thursday in hong kong. We are getting the latest lines out of south korea when it comes to the budget they are trying to push for next week. They will deliver it to parliament. The finance minister is coming out and saying it will likely affect this years tax income for south koreans, and the budget would require issuance of deficit bonds. Korea tryingsouth to push for a budget longer than that. We have seen during the outbreak around 9. 8 billion. That came along with bank of korea rate cuts, which does not see it steady at 1. 25 . We can see the budget much larger than during the outbreak of 2015. We are counting down to the opening of the session in india. We are also awaiting the Third Quarter fiscal gdp numbers out of the country. Our reporter is standing by in mumbai. How is the set up looking . We may be expecting an improvement in gdp growth, but the sentiment certainly is quite worse off, considering we are looking at five Straight Days of losses for the indian equities. Off 6. 5 from peak. More selling pressures from investors. Over 1 billion in the last three days. There is further weakness expected. It should include Something Like the nifty. The 200 firmly below day moving average. Nora speight coming from the banking sector. Whene a lot of volatility it comes to the indian rupee. The only thing keeping it stable is the fall in prices. India is large. Things are not looking that great. Its also indicating a further decline of another 2 . Shery we are seeing i we are seeing a key level. Thekospi letting go of the 2000 level. It is expected to trigger more selling. This is how it is sharing. Lets look at what we are seeing. The market is now trading at the lowest since september 2019. On the cusp of 2000. In danger of breaking below the key level. It can be heavy margin cause, given we have seen the surge in retail leverage. The coronavirus cases in korea topping 2000, sparking more fears growth will take a massive hit. Of extrails supplementary budget. We have one put through in 2015. That will likely go through Parliament Next Week in the absence of another rate cut from the bank of korea. We are watching that key level for the kospi. Expectations of further selling through margin calls. Coming up next, geopolitical risk brewing. Syriation collision in as soldiers are killed by an airstrike. This is bloomberg. Turkeys president had a crisis with his top Security Officials after an airstrike left turkish troops dead in syria. The syrian president , it is the deadliest attack. Lets go to our Senior International editor, jodi schneider. Why is there a crisis meeting. A water the wider ramifications we should be watching out for . This came after the largest oneday loss of troops for turkey. And others soldiers who had not been killed, but were hurt. This is inching much closer to a direct confrontation between turkey and russia. After that meeting, turkey said they will strike all available targets. Air andl use the Ground Troops to secure their position. They are also asking nato for help, saying its an international crisis. Theyre trying to get russia to back down, but they are going to their nato partners to ask for assistance as this grows even more tense. Shery what are we hearing from syrian officials . Jodi we have not heard a lot. We have been hearing from the turkish side. At this point, it looks like russia is not backing down. This is why turkey is asking for help from nato. We have not heard from other nato allies in this yet. Its only about further escalation about the conflict, and also turkey will have a lot of Syrian Refugees coming across the border and further into europe. Thats the case they are making to nato. Haidi jodi schneider, thank you. Thats our Senior International editor with the latest. Take a look at korean airlines. We are seeing the kospi on the 2000 level. Korean carriers also seeing a massive hit. Korean airwe hear will be reducing flights to the u. S. Starting march. This as the u. S. Is urging americans to reconsider travel to south korea as we see more coronavirus cases in the country, topping 2000. When it comes to the budget carriers, they are going to seek government support. So we have seen the budget now being announced. It willhints of how big be. The finance minister coming out talking about potentially being larger than during the outbreak of 2015. Haidi and there is the feeling that we havent been able to assess how bad this situation could get. We have investors scrambling to recover themselves as the selloff accelerates. Lets look at some of the trading moves we have seen. Indonesia one of the hardest hit in this session. Downside limited in the Chinese Market. If we carry on the way we are seeing at the moment, we can close out the day in bear territory. This is bloomberg. Its almost 11 00 in singapore, 8 30 a. M. In mumbai. The last hour of the morning session in hong kong. Very much has a friday field. Here are the top stories. Thanive points with more 80 thousand people infected in more than 50 countries. Who says the coronavirus now has pandemic potential. The Economic Impact of the virus sends markets into correction. Some see the Global Economy heading for a rough moment since the 2008 financial crisis. India reports latest gdp numbers just as the economy starts to show signs of a recovery. The coronavirus outbreak looms as a new threat. This is Bloomberg Markets asia. Straight to the markets, where Sarah Ponczek is in new york. It does look like a frantic selloff. It is the fear of the unknown. Absolutely. Badle dont really know how the fallout from the coronavirus will be once it is over. We have losses accelerating through the session. The csi 300 at the low of the session. Having its worst day since the day the Chinese Markets reopened after the Lunar New Year holiday. We also see the hong kong hung hang seng down. Japanese equities officially in correction. Off by 3. 5 . The worst day since december of 2018. The korean kospi is below the row number of 2000, off by 2. 8 . Hi case count. Really keeping investors on edge. Lets get you a quick sector check. See how different sectors are closing across the asiapacific region. These are sectors within the msci. All sectors are trading in the red. The worst performers are some of the worst we have seen in the wake of the coronavirus materials and industrials both off. Utilities and real estate are both lower. Cross asset reporter Sarah Ponczek. For more on the markets, lets bring in david ingles in hong kong. Compared tohis week previous bouts of market capitulation . David i have spent the last couple of hours looking at various Market Metrics you mentioned that global stock right now, about 9 . The other metric i want to bring up given todays losses is the fear and greed index. A chart that will show you this. There is a ratio of selling to buying in very simple terms. Levelalso at the lowest going back to the debts of the financial crisis in 2008. Time since the global crisis, markets are now that theh a problem Central Bank Money cant solve. It speaks to the dislocation received today and the risk going into the weekend that we dont know whats going to happen. Haslinda looking at japan, currently the nikkei is down 3. 5 . How much more potential downside are we talking about . David who knows . Say at the options market, we have a chart that shows you this, in terms of where traders are speculating, in terms of the levels at this time next month, 19,000 is very much part of that risk of trade going on. You see prices moving up, as well. Becoming part of the conversation that people are trading a possibility that we fall that much. At that level, even considering the loss to date, thats 10 below current levels. Thats the sort of gap down we are looking at potentially, assuming the environment worsens. With more and more markets now approaching their technical correction, do we have any signs of a bottom . Do we have any signs of a bottom . David hard to say. You to the moving day average in six days. What is worth noting is we are away from the equity markets to show how it is spreading across asset area credit spreads, where it is asia highyield, it picks up, as well. Its almost a synchronized across asset move. Question, iur recommend reading the piece on bloomberg opinion, it should also be on the website. Ingles, thankd you for that. The World Health Organization says the coronavirus outbreak is at a decisive stage and has potential to become a pandemic. In asia, the focus is shifting to other countries as the rate of inflection slows in china. Whats go to Tom Mackenzie hong kong. Are therea, how authorities handling the dramatic rise in infections . There are fires on how they have responded. We just got Approval Ratings of the president. They are the highest we have seen since october. The case is now topping 2000. We are learning in terms of the extra budget, more details about that. They may be offering something bigger than what theyve had during the 2015 outbreak package. It can include requiring issuance of deficit bonds. That will be included to the proposal next week. Locum media also reporting a handy motor plant has been halted after a worker was infected in japan, the tokyo Disney Resort will be shut down for two weeks on the coronavirus risk following the move we heard from shinzo abe to shut down schools for at least another month. We also learned japan is becoming the center of concern. Health experts say the number of infected cases can be the tip of the iceberg, because people with mild symptoms are not getting tested. This is as we see more cases in italy, iran, kuwait, nigeria also reporting its first case. Have the latest numbers out of china. They seem to be showing more moderation. Is there any timeline for when the outbreak can finally be contained . The numbers continuing the theme of a lower infection rate in china. Reported 377 official confirmed cases. 44 additional deaths. 78,800 confirmed infections. Almost 2800 confirmed deaths. You have the number of people being discharged, recovered from the virus continuing to rise. 46,000 people have been discharged from hospitals after having treatment for the coronavirus. In terms of the timeframe you asked about, we heard from the point person for those of us trying to get a steer on whether the Chinese Government things this is going. Hes an advisor to beijing. He says the end of april can be when it is largely contained. The usual caveat, other officials in china say as people return to work, there is a concern you can get an infection rate rebound. For now, the moderation case continues. Paul u. S. Authorities expanding testing for possible infections, what are the details . Yvonne they are all in travelers to testing from countries without breaks. If you are a traveler coming from china, japan, south korea, iran italy in the last two weeks or so and have symptoms, chances are you will be screened under these new guidelines. The cdc also urging testing for patients with unexplained lower severe respiratory illnesses and have no history of anyone with coronavirus. Ais is after we learned patient in california tested positive, but didnt have any known links to anyone with the virus, and ended up having to wait a while. For testing. They are ramping up on those types of cases, as well. We are expecting china to release pmi numbers over the weekend, possibly the first indicator of the impact, the real impact of the virus in china. What are we expecting . The First Official data that will take into account, the pain felt across the economy in the month of february. This is a manufacturing data we are expecting tomorrow. The surveys suggest it will attract manufacturing pmi from 52 around 45. Worse, 40. 7, in line with the worst numbers in 2008 during the financial crisis. The private survey, we are expecting that out on monday. Looking at the private sector, an area of the economy that is badly hurt by the coronavirus. The expectation is you could see a contraction to around 46 from about 51. A fairly steep contraction for the private sector forecast. On monday. Ed then nonmanufacturing, very important, given it corridors services. Used to be bigger during the sars crisis. Now a much larger part of the economy. Bloomberg economics thinks it will fall into contraction for the First Time Since the survey data was released in 2007. Early indicators have looked grim. According to bloombergs data crunching, as much as 70 of smes remain shuttered in china. That data should round out the picture. It will not look pretty. Beijing, mackenzie in yvonne man in hong kong. Lets get the first word news with su keenan. Japan, whichin closes schools to control the spread of the coronavirus. All schools will remain shut until spring holidays begin in late march. The measure affects nearly 13 Million Students at about 35,000 schools. Japan has more than 200 confirmed infections. That doesnt include another 705 cases spread on a cruise ship that docked of yokohama. In the u. S. , california is monitoring more than 8000 people for signs of the virus. Potential human to human transition in the u. S. Was affected. Gavin newsom says all of those being monitored have recently traveled through china. California recorded 33 confirmed cases of the virus. A crisisresident held meeting with his top Security Officials after an airstrike left dirty three turkish troops dead in syria. The ambush by forces loyal to the syrian president is the deadliest attack on turkish troops in syria so far. They entered syria to announce a troops truce near in the. Now reports outlet turkish troops along the entire Syrian Border have been placed on alert. Global news, 24 hours a day, on air and at could take by bloomberg, powered by more than 2700 journalists and analysts in more than 120 countries. Im su keenan, this is bloomberg. Haslinda thank you. Indias surging inflation is expected to take a bite out of Economic Growth in the fourth quarter. A preview of the gdp release, with our guest later on. Paul but first, j. P. Morgans head of Asian Equity Research makes sense of the Global Stock Selloff worsened by the fastest correction for u. S. Stocks on record. This is bloomberg. Paul lets get a quick check of how stocks in china are performing. Thursday was a good day. Friday, not so much. The shanghai composite off 3 . The chinext up 4. 5 . The chinese stocks are joining the global cell down we are seeing today. Haslinda pretty resilient early in the week. Heading formay be its worst performance since the financial crisis as hopes for a swift rebound from the coronavirus fade. Economists expect to. 8 Global Growth this year. Off cuttinglding Interest Rates, but economists are beginning to join investors in predicting looser policy. Money markets already seeing reductions. Sees theguest possibility of negative gdp growth in china in the First Quarter. Lets bring in james sullivan, ahead of Asian Equity Research from jp morgan. It feels like there are signs of capitulation. One of the most important concepts we are talking about is the concept of demand delay versus demand destruction. The biggest difference for us at j. P. Morgan is this versus sars in 2003, we saw demand delay. Now we see signs of demand destruction. Inthat, i mean the reduction gdp forecasts we made in the First Quarter are not being paid back in the next quarters. We see a reduction of Global Growth on a full year basis. We are still characterizing this as a temporary time defined event. We have to be careful not to over extrapolate the impact. Haslinda not over do it, but we already see signs of global credit markets seizing. The issuance is at a standstill. Another very important point to make is the starting point, from a markets perspective. It is critical from our perspective. It is easy to see the red on the board and assume things are more negative than they are. Its important to take a step back and recognize that as of monday, we had almost every major index in the world close to an alltime high. An alltime low. The goal that is sevenyear high. We had extreme Market Positioning. The adjustments we are seeing are a speedbump being hit by markets we are placing in an extremely positive global environment. It is the over extrapolation that becomes a risk. Markets were stretched as of monday this week. We are taking that out of the marketplace. We are by no means looking at significant value. The starting point is incredible. That to follow on from point, or we have reached significant value. Has the worst not been priced in . Was there a lot of complacency until monday . There clearly was. If you look at markets across a range of views, from an Overall Index level, many major indices were at or very close to alltime highs. Many rate indices were close to alltime lows. If you look at it from a factor perspective, we are trying to describe market factors by the value. You saw a very skewed market environment, where value versus defense, or cyclicals versus defense, or at an alltime high, in terms of evaluation gaps. Its has high as what we saw at the peak of the tmt bubble in the late 1990s. The extreme Market Positioning walking into this conversation is important. Paul it is in times of crisis like this that people look to the horizon and wait for the fed to come riding over it. As we look at the terminal, expectation for some action from the fed are rising. Does more easing even make a difference . Yes, but not in the right way. At j. P. Morgan, we are factoring a 25 basis point cut by the fed in july as an insurance cut. You are starting to see aggressive steps being taken by governments around the world. If you look at the budget issued in hong kong on wednesday, use saw the largest budget deficit in hong kong history. Markets havent really reacted strongly to that. We can get more into details of the structure and why we dont think it will necessarily be stimulative as it might be. Andare seeing governments Central Banks start to talk about aggressive steps. The danger with that conversation is this is a temporary time to find issue. What is going to be fascinating to watch is if we walk into the second half with rate cuts, if it get fiscal stimulus, you set up an environment where you end up over stimulating the economy through the second half with potential impacts on the inflationary environment. Downnda china 10 year five basis points. We see a record issuance in china of 22 billion in february. Are looking at a bubble, how does it feel . Where does it go . We work very close to bubble formation on a range of asset classes. The ones we are watching in asia where the bond market with the chinese property market. We can define that among a range of indices and why we think they were beginning to be bubble prone. The u. S. Equity market is another one we are watching. I would not disagree. Thats critical to this conversation. The starting point we are at on monday morning is critical to understanding the downdrafts we see every day this week. It was starting from an extremely elevated level. Haslinda how do you view default risks . We have downgraded banks on the back of asset quality risks moving forward. We are taking a more negative stance on singapore banks. We have been cautious on the mega caps in chinese financial space because of asset quality issues. Element, ime forecasting cash flow. We have to recognize earnings revisions are lagging. Thats true for corporate earnings and gdp forecasts. We are likely to see significant cuts in earnings and overall country earnings, or gdp forecasts, over the next couple of weeks. The factth that is activity statistics in Mainland China are starting to bottom out. If we look at things like traffic statistics, transport hub activity, shipping statistics, they are starting to form a bottom, which indicates earnings as a lagging indicator will lag the improvement we see in the economy. You had a quote earlier where you were talking about potentially moving beyond the covid19 conversation in Mainland China into the april time horizon. Our current forecasts are similar types of horizons. You get into this time shifted conversation where governments step in with aggressive stimulus measures. Potentially too late. Youre looking at an overstimulated economy as you move into the second half. Haslinda thank you so much. James sullivan from jp morgan. Lets take a look at where we are, in terms of u. S. Futures. Started higher, but are now lower for a seventh straight session. In asia, the capitulation continues. Indonesia, for instance, heading towards a huge correction. It could end up in a bear market. This is bloomberg. Lets get a quick check of the latest business flash headlines. Wharf tanking in hong kong after trading for the First Time Since getting suspended on monday. Suggesting news hong kong developer will lock will offer investor shares in holdings and investment. This is part of the deal to delist and go private. Wharf, andout 66 of 70 of wharf air eic. Haslinda haslinda abm bev is talking the worst in the decade as the coronavirus hits profits. The First Quarter earnings will drop about 10 after a profit also fell. They blame much of that on the biggest jump in Raw Materials in a decade. Shares down 11 . 85 of stores in china have reopened for business. About half of the 4300 locations have been closed due to the coronavirus outbreak. Some have been shut down for as long as a month. Kevin johnson made the decision based on new cases in china. He is seeing the early signs of a recovery. Indiada still to come, surging inflations is set to take a bite out of the Economic Growth. Details from teresa john. This is bloomberg. Tv just keeps getting better. How you watch it does too. This is xfinity x1. Featuring the Emmy Awardwinning voice remote. Streaming Services Without changing passwords and input. Live sports with realtime stats and scores. Access to the most 4k content. And your movies and shows to go. The best tv experience is the best tv value. Xfinity x1. Simple. Easy. Awesome. Xfinity. The future of awesome. Haslinda we are in the middle of the trading day. Currently being sold off. Singapore, a new list of companies to delay for up to two months because of the coronavirus. Lets flip the page. Take a look at where we are. Indexes in jakarta are slumping as well. A twoyear low. Headed for a bear market. Lets take a look at how the federal bank will respond to all of the worries in the country. The head of the World Health Organization says the coronavirus epidemic is at a decisive. He is urging affected countries to act aggressively to contain the disease. The outbreak reached an important Inflection Point on thursday when more cases were reported outside china than inside china. More than 82,000 people have been affected around the world. More than 2800 people have died so far. In malaysia, they have announced a 4. 8 billion stimulus package to counter the Economic Impact of the outbreak. The interim Prime Minister said the money would be used to support businesses, particularly the Tourism Industry he said malaysia may issue bonds if necessary. Growth estimations are down from earlier forecasts. A grim scenario for lawsuits over roundup weed killer. The Company Might have to sell assets, issue new stocks, or borrow money at unfavorable rates. The company is working to settle claims that roundup causes cancer. They have been whether 48,000 lawsuits in the u. S. 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. This is bloomberg. Paul thanks. We are getting some breaking news. It isgan announcing that restricting all nonessential travel globally. As the virus spreads. Week, more cases reported outside of china than inside. Jp morgan announcing all nonessential travel has been restricted. Lets check out how the markets are tracking. What was a brutal session in the u. S. The s p having its worst day since 2011. Ant is now being followed by ugly session across the asiapacific region. Down 3. 5 . The worst day since they open after the Lunar New Year holiday. Nikkei now down more than 4 . Indeed correction territory. I should add that u. S. Futures are now extending their declines. Lets take a look at how commodities are trading. Crude Oil Following falling for a sixth straight day. Opec is set to could be next week. There will be a lot of focus. Copper down 1. 5 . Gold still flat. Goldman sachs says they now too potential for gold to rise is higher as 1800. Haslinda thank you so much. When you take a look at the Chinese Market that just closed for the morning session, dont you what do you think stood . Ut to you david this market was resilient until about two hours ago. The last 15 minutes before the break, things basically went off a cliff. While perhaps is worth watching is the bond yield. For the better part of three weeks, it has been above 2. 8 . What perhaps is a Silver Lining for our clients is, if you are looking for a haven or a sign of stability, maybe look at the south korean yuan as an anchor. Out a bright pick spot in a red market right now, it is perhaps those two things. Lets speak about hedges. These massive market gyrations have exposed a pretty big hole in chinas financial markets. Has. it there is a reason why the auctions options are quite limited. This is not been ideal on a day like today. On a good day, exacerbates it and incentivizes speculation. On a day like today or a time when it is hard to price and the uncertainty or figure out how , you justory gets brought up the jp morgan restricting travel. It is hard to put a floor on markets when you cant put a book into the story. It is still a moving target. You only have four contracts that people used to heads in a market. At a time like this, you need more tools. Haslinda all eyes are on the pmi coming out over the weekend. It could potentially be ugly. David it will be the first set of numbers that captures the entire month. Tomorrow milt will be quite important. The world will still be on edge. Lets put it that way. Paul lets shift focus to india. Just as the economy is starting to recover, we have the coronavirus looming as a new threat. How do you see the virus impacting the economy . I think india could be the most insulated economies. Even in the fourth quarter, i dont think we will see a very significant impact. The impact will come to the supply chain. Paul we were just looking at gdp numbers and projections. A slight rebound expected. Inflation picking up. How great in your mind is the risk of stagflation. We are not expecting a significant improvement. That is mainly coming from higher government spending. The only Silver Lining to the high inflation is it is driven by higher prices. You might see a recovery going into the next year. Haslinda part of the problem is consumption. You have businesses not spending. How will this play out . One of the reasons that wasumption turned sluggish that it was driven by Rising Consumer debt. Income has not gone up. I think the only two ways we can see a turnaround is if we see a growth in credit. That is the only way we can see a sustained turnaround and consumption. Haslinda is there a Clear Strategy to reverse the growth . We have rate cuts that have done very little to the economy. There was no real system of coming to that. I think they are doing some significant steps. We could see slightly higher credit growth. The work done so far by the bank of india has not really yielded much of an impact. Are you expecting further action . I didnt get it. Paul do you expect some more action from the bank of india . We are not expecting any action on the rate cut front. We are not seeing an actual reduction in policy rates. Paul thank you so much for joining us. Some breaking news. Hyundai suspending work at a plant because a employee has been detected with the coronavirus. Yundai saying it is disinfecting that facility. That plant is in south korea. We are counting down to the open of the india session. This is bloomberg. Haslinda lets get right to moon by mumbai. In the early minutes, it is already down 2. 5 . In line with what has been happening. Now we are trading significantly lower. That is down about 700. The markets are not looking great as of now. We have seen selling of about 1 billion. Paul you mentioned banking stocks taking a bit of a beating. What else are you keeping an eye on . The longest time there was an overhang. He will be taking over as a ceo of march. They have exposure to global markets. Paul thanks for joining us. We could have some modest effect on sentiment. It seems we have moved to extreme confidence in markets to extreme panic all in one week. It seems like people want to have a limit to the spread of this virus. Because of containment measures. Will there be a Lasting Legacy and this coronavirus when it comes to the Global Economy . There certainly will be a legacy. Coming on the backs of the trade disruption, now we have this. Is there something that Central Banks, that have been so rescue,rushing to the is this something they can sift . No. It is not easily fixed. These only have modest effectiveness. At this point, Central Banks can say we will act when the time comes. There is not much ammunition left. It really is up to the fiscal authorities. More broadly, we also need to direct action against the spread of the epidemic. That was the former governor of the reserve bank of india. Plenty more to come. This is bloomberg. We spoke to the cfo about the impact of the epidemic. Coronavirus is very much on everybodys minds. We have seen businesses perform very well. Clearly the impact of that will come through in march and beyond. Time will tell how challenging it is. We can influence, some things we cannot. Indeed. The known knowns and the unknown unknowns. We saw hsbc give us a number last week. This . An you tell us about it is always a step back. Are at the lowest proportion of our total books that we have seen for about five years. The general quality of the book is really good. During that time, we have monitored things that are happening. We are keeping a very close eye on things. It is likely to have some impact at the end of the First Quarter. We will take a view of what inherent risks there are in the credit. It is difficult. We have heard that the outbreak could lead to as much as 600 Million Dollars in additional losses if it continues into the second half of the year. Is that a ballpark amount you will be looking at as well . I think it is very difficult to say. No guidance on the numbers. We will see what we get when we get to the end of the First Quarter. The market was looking for 1 billion. Why not a higher share of buyback . Is we ared thing doing buybacks. We did our first one last year. It was 1 billion. I think the market was into use as to how much and when we would announce something. We will show that we are continuing to live in that promise. Lets take a look at the latest business flash headlines. The buyers are a consortium that includes different groups. Deal, the the elevator unit will be kept in germany. The cash infusion will help the company with its business. Door has started the process of going public. The food to river really Food Delivery Company will be available publicly. It has raised about 2 billion from investors including softbank and sequoia capital. The last valuation was at nearly 13 billion. A quick check of the markets. In australia, we have wiped out all of the gains of 2020. It is a sea of red out there. Edition. T for this Global Stock Selloff as fears of a pandemic mount. The middle east sees its own searching coronavirus cases. The issue dominated the g20 in riyadh. Intral Bank Governors weigh on the growing risks and what can be done. Saudi arabia is working on new regulations that would cut requirements. Exclusive interview with the head of the nations Monetary Policy