Transcripts For BLOOMBERG Bloomberg Markets 20240713

The big day is here in the United States. Super tuesday. Can joe biden continue challenging Bernie Sanders . Will Michael Bloomberg or Elizabeth Warren claim their first date . First, more first state . First, more coronavirus cases in the u. S. Two employees in china contracted the virus, or cases in south korea, iran. The fed jumping in but u. S. Stocks still tumbling. What are you watching ahead of the open . Paul the u. S. Reaction really setting us up for wednesday. New zealand, already open and already weaker by half of 1 . Up day on monday no, a big update on tuesday, a down day on monday. Futures here in sydney are off by 1. 3 . The market up by almost three quarters of 1 yesterday. Nikkei futures pointing south by more than 2. 5 . We look at currencies, the aussie dollar actually gained amid all of this, knocking on the door of . 66. Gdp for australia a little later on for the Fourth Quarter. Those numbers are expected to be healthy but they are of course backward looking. The yield on the aussie 10 year improving a little. Strengthening against the greenback. Emily as we have mentioned, it finally happened, the fed with an emergency rate cut, one that jay powell says had to happen. Over the course of the last couple of weeks, we have seen a broader spread of the virus. For us, what really matters is not the epidemiology but the risk to the economy. We saw a risk to the outlook for the economy and chose to act. Shaving 50 basis points was not enough to keep stocks from falling. Didnt what the fed had to say give investors confidence today . Was i think it did, but it fleeting. Stocks willom out, still be up on the week by about 1 . The rally was about pulling forward these expectations that you would get a response from these policymakers. Lets look at the chart. I dont think you need to be a Rocket Scientist to tell when exactly that did come in there. Stocks up more than 1 . During the press conference and after, it slid. This is getting to the idea that it is not going to come from Central Banks. It is going to come from health professionals. The 10 was the slide in year yield. A sign that investors are doubting. The 10 year treasury yield breaks below 1 for its first time on record. The speed of the move relative to other sovereign bonds is very noteworthy. Move this fast a since the european sovereign debt crisis in 2011. That gives you a sense of how much the flight to safety is taking place stateside. Usually, when you get these lower yields, you get these things that have been at more as duration proxies that have been doing better. Even though the nasdaq did underperformed the s p 500, you are seeing the expense of software stocks. They actually did slightly outperform. The baby is getting thrown out with the bathwater, but not as bad as you might think. It is important to note that some other concerning things are above the week. Cdx Investment Grade and high yields both wider. Your front month volatility future also higher. This has been a sign that stille any good tidings, a lot of concern in risk assets and in markets generally. The rate cut coming as the virus claim two more lives in washington state, bringing the u. S. Death toll to nine. A man in new york also has tested positive without knowing how he got the virus. I want to talk about the testing situation there is a lot of confusion. The u. S. Had weeks to prepare but the testing is still lagging how many tests are available come out quickly can that be ramped up, and where are these new tests going to come from . The answer is we dont know and not nearly quickly enough. Initially, two sources. The fact that the cdc had a narrow initial definition of who they wanted to look at, which suggested the urgency. Now we are getting test kits from a broader set of sources, not just the cdc but private companies. They need to get out to private labs, need to get validated, and need to get introduced into use. We are starting to see a ramp up. The broader surveillance that we need paul President Trump is encouraging drugmakers to get it done on a coronavirus treatment. It is not quite that simple, is it . Quitengs are moving quickly in regards to a vaccine. There is a vaccine candidate from one Company Moving toward trials. He still have to test it and people initially for safety and then for a broader population. This is something you will be giving to Healthy People on a broad scale. Needs to benal found, something that might come a little more rapidly is a therapeutic that is given to people who actually have the coronavirus but that could take some time as well. Paul thanks for joining us. U. S. Stocks did double as investors worried that the Federal Reserves emergency rate cut will not be enough to combat the Economic Impact. That globalst says Central Banks must come together. A reaction from the cut priced inhis already . Lets take a step back and see where we are. We have a Health Crisis as well as an Economic Impact. We should not panic about either one, but we need to take precautionary measures on both. The fed today made an emergency move to lower rates by 50 basis points. Yet, the market was anticipating a more measured response. The analogy i like to use is a crying baby, trying to give that baby two scoops of ice cream but the baby wanted three scoops of ice cream. The markets were expecting more. They continue to have downward pressure. Maybe we will see continued rate cuts as we look at the next fed meeting in march. Paul we have some news that the bank of korea will hold a meeting this morning. They coordinated response around the globe, it seems like. Tothat going to be enough supply that third scoop of ice cream . Looking att we are is definitely a global slowdown in intentionally the global recession. We cannot minimize the impact to the economy around the world. Depending on how you define a global recession. Many defined that as global of as growth slowing. We do not know the full extent of what will be that global gdp number. But definitely a global slowdown. The good news, yes, Central Banks around the globe are coordinating and looking at various fiscal stimulus measures that we have seen in hong kong and we are talking about in the United States. President trump encouraged a payroll tax cut for one year. Fiscal stimulus measures that would also be promising. Emily i want to ask you about tech because tech had been on a tear over the past year leading into this. Facebook canceled conferences just today. Google cancel this big conference. I have to imagine there is some loss of productivity. Hattie think the virus will impact tech more specifically as a sector. Loreen as we look back, we have seen in technology, somewhat ahead of themselves, ahead of earnings. As we look at that, now we had a pullback that brings down p e ratios into a more normalized range. Around 16. 5 versus 17. We will see it come down even more so before looking at some. Reat names in technology it is both the supply chain and the demand that is going to impact technology. Apple gave Forward Guidance, that was the beginning of it, and now we are hearing more and more, both Forward Guidance and forward room. Emily meantime, americans are heading to the polls in super tuesday. Given the vast differences between the progressive and moderate lanes, i am curious if you think a bernie or a biden or whomever makes a difference in terms of your strategy over the next few months heading into the election . Cannot discount the markets response to who the democratic nominee will be . I do think that a bernie affect has been in the markets. Now that we are seeing biden taking more of hopefully a lead, a more moderate candidate, that will appease the market. Im not talking about my strategy, i am talking about the markets and what the markets are feeling comfortable with. That would e. A. More moderate candidate simply because of policy measures that would come into effect. Emily we will have more information when the polls close. Thank you for joining us. Do not miss our exclusive interview with st. Louis fed president james bullard. Midnight in hong kong. Coming up, joe biden roaring back on super tuesday in part thanks to his former rival. This is bloomberg. I believe we can do this together. Rallying the country together to defeat donald trump. To heal this country and build something even greater. In the name of that very same goal, i will be casting my ballot for joe biden. Joe biden. Joe biden. We need you, we want you. Join us. Paul welcome back to Bloomberg Markets. Markets remain nervous about the coronavirus. Cut,eds emergency rate will it be enough to combat the impact of the spreading outbreak . Jerome powell lowered it by 50 basis points. 10 year yield fell below 1 for the First Time Ever on the move. Ally independent experts are recommending andctions of between 600000 one Million Barrels per day in the next quarter to counter drops in demand for energy. Japan says the Tokyo Olympics may be held back by the coronavirus and could be held later in the year. The minister in charge said the event had to be held during 2020. The deaths of at least 12 japanese people linked to the virus. Some olympic related events have been canceled or postponed. Global news, 24 hours a day, on air and on quick take by bloomberg, powered by more than 2700 journalists and analysts in over 120 countries. This is bloomberg. Super tuesday is upon us with democratic primaries in 14 states and one territory happening now. The Playing Field has changed dramatically after joe bidens big win in South Carolina. That brought in big endorsements and cash, and prompted Pete Buttigieg and Amy Klobuchar to withdraw. Here is a look at what to expect. The selfproclaimed mechanic socialist took the conventional with selfproclaimed democraticsocialist took the conventional wisdom and turned it upside down. All that talk about sanders support being limited to young white liberals, no one is saying that now. Sanders won 47 of the vote in the nevada caucuses and did it with a broadbased coalition that looked more like the Democratic Party as a whole. Eyeing bigger prizes. Senator sanders dont tell anybody, i dont want to get them nervous. We are going to win the democratic primary in texas. Super tuesday is the biggest day on the president ial primary calendar. 1 3 of the total number of delegates available are up for grabs. California and texas are the two biggest prizes. Carolina,lude virginia, and massachusetts. The question, can antisanders moderates come together to support the front runner . Biden was the Longtime National front runner. Until not won a state saturdays victory in South Carolina. Supporters hope that can give him a boost on super tuesday. And there is the Michael Bloomberg factor. The billionaire will be on the ballot for the first time. His debate in the his performance in the first debate was criticized. Theourse, bloomberg is majority owner of the parent of bloomberg news. Meanwhile, the candidate who took bloomberg down and that debate is looking for a bounce. Any time someone tells you a woman cant beat donald trump. I dont know about any woman but i will tell you Elizabeth Warren can. Chance will not get a unless they figure out a way to stop Bernie Sanders. Super tuesday could be one of their last opportunities. Emily lets head to washington. Our politics editor of a windy benjamin. I talked to a lot of people who voted today and many people did not know who they would vote for until the walked in. Some people came out and did not know if they made the right choice. It speaks to how many people are still in the race. Yesterday that we had two more candidates than today. Aople were in fact, i have friend who said her mother was going to vote for Pete Buttigieg, and when he dropped out, she said, i will vote for Amy Klobuchar. It is the fastmoving dynamic of this race that i think is changing a lot that. Any indication of how those east coast states are looking. Pulling te virginia is very close. Pretty much a threeway time. State that has upper middleclass suburbs outside of washington. Area, heavily african americans. That speaks well for joe biden. Andsuburbanites africanamerican communities. Toth carolina, very close South Carolina. Everything indicates that california loves Bernie Sanders. Californiansof voted early. That suggests that this last little bump that biden add may not affect the california vote that much. Emily when i voted this morning in person, there was not a line. Mike bloomberg said today that he thinks the only way forward is a contested defection contested convention. Like . Oes that look wendy what bloomberg said was the only way forward for him was a contention that was a convention. That he thinks. Lets say tonight that Bernie Sanders gets 500, 600, 700 delegates. Joe biden gets 300 and something. Who knows. That would mean that no one has enough to actually get nomination outright there are a lot of states to vote. If it remains closed, remains close, we would go to milwaukee in july. At 20 delegates that he got in iowa and new hampshire. They would all have to decide what they want to do. 1952, aave had since fourday infomercial where we crowned the nominee that we all knew would be the nominee. That may not happen this year. I am reminded of 2016 when the republicans had a front runner that many of them did not think was acceptable, and now he is president. Many are saying the same about Bernie Sanders. Wendy that is true. That is what circling the wagons on joe biden has been. Many in democratic leadership are worried that Bernie Sanders with his very progressive policies cannot beat donald trump. Only liberal democrats will vote to him and that independents and moderates who do not like the president very much cant bring themselves to vote for a socialist. They would traverse someone moderate, they would prefer someone moderate like joe biden. But people vote, not the democratic leadership. Bernie sanders may have an insurmountable lead after tonight. Paul thanks so much for joining us. You can tune in to our special coverage for super tuesday. Live analysis from 7 00 p. M. Eastern, 8 00 a. M. In hong kong. This is bloomberg. Paul welcome back to Bloomberg Markets. Lets take a look at those markets. , recoveringtrading some of those early losses that we saw, currently on currently off 0. 4 . Poised to sinkey by 0. 3 . Lets take a quick look at currencies today. We are seeing the aussie dollar put on some gains. The reserve bank of australia cut the cash rate. Gdp numbers in a moment and we will address all of that with our next guest in a moment. This is bloomberg. Paul welcome back to Bloomberg Markets. Im paul allen with emily chang in San Francisco. Lets check in with the first word news. Ritika the International Monetary fund and world bank have decided that upcoming meeting will be held in a virtual format due to the coronavirus. It is committed to productive dialogue that will use possible Digital Tools to host the annual talks. The meeting officially takes place in washington near the white house and scheduled for the middle of next month. New satellite images suggest china could be picking up after disruption from the coronavirus. The data shows nitrogen dioxide levels are rising across the mainland, which implies rising burning of fossil fuels. Levels that fell in february after authorities locked down millions of workers. Super tuesday is here after withdrawal of Amy Klobuchar and Pete Buttigieg. It is now down to four main candidates Elizabeth Warren, Bernie Sanders, joe biden, and Michael Bloomberg who was a Majority Shareholder of our parent company. It is the biggest day of the democratic president ial race. Primaries in 14 states from california to texas. You can see it all here on bloomberg tv. Our special coverage begins at 7 00 p. M. New york, 8 00 a. M. Hong kong. The sister of north Korean Leader kim jongun has made her first known official comments, slamming the south. Is believed to be in her early 30s and has accompanied her brother several times. The public release of those comments indicate her political status has been further elevated. Global news 24 hours a day on air and on quicktake five bloomberg, powered by more than 27 hundred journalists and analysts. Im riddick tika gupta. Emily markets in asia look set to follow wall street lower, while stocks slumped even after an emergency rate cut by the fed. Lets bring in david inglis. Why do you think this rate cut was not enough to boost sentiment . David great question. It is a question that a lot of banks right now perhaps talking about as asia wakes up during the morning calls as well. What i simply say is it obviously didnt work today. Whether or not it works the next couple of days, couple of weeks, we dont know, but i would say the bar to make that determination would really so much if markets rallied, but really if markets remain stable which is obviously part of what emergency rate cuts entail and the objective. The economy is a different conversation because that takes time. Lower rates dont necessarily have the same effectiveness when it comes to addressing those issues, per se. That goes back to the markets as well. One of the comments in our bloomberg story coming out and said larger than expected, off cycle moves sort of tells you about desperation. It is kind of like you find a bazooka and the monster is still there. That being said, markets are looking at spreading, whether it is 5 or 5 . We have to wait and see as i speak right now, we are getting more stability in asia. So we will see what happens the next couple of hours. What areer this cut, the Market Expectations right now as far as the Interest Rates are concerned . Are we going to expect more . I think south korea will do something. David dont forget, yesterday in malaysia, they delivered the first back to back rate cuts since the Global Financial crisis. We talked about the rba as well. The feds obviously is still germane play. Based on the comments coming through, whether it is jp morgan, td securities, they are expecting another cut at the regular meeting this month. Td securities expects another want to follow in april. As far as yields are concerned, that sends yields down further. I like the term jp morgan used are, that u. S. Treasuries stuck in negative yield quicksand. Echoes what blackrock was saying on aussie yields as well, that we are headed to negative at this point in time. Ingles,l right, david thank you for joining us. Despite President Trumps claims his administration is ready for the coronavirus the u. S. , there is nothing concerned the government is grossly underprepared. Lets take a look at the situation now with dr. Rivers, professor of epidemiology at the Johns Hopkins Bloomberg School of Public Health. Dr. Rivers, thank you for joining us. What is your assessment of u. S. Preparedness for this . Dr. Rivers i think things are ramping up. Haspleased capacity continued to expand. I think that will mean we will identify more cases in the United States which might feel alarming, but it is just us catching up to the Current Situation and getting a better understanding of the situation. Paul are enough tests available . Dr. Rivers yes, they are coming online. About half of state and local Public Health Testing Laboratories now have capacity to test. I understand the rest of them will be coming online this week. That will bring us to about 10,000 tests a day if things run smoothly, which i expect. Emily tests have not been available. We are looking at cases going back two, three weeks in the United States. Whats your best guess . How Many Americans actually are infected by this virus that we dont know about . Dr. Rivers it is impossible to say and that is what it is so important we have testing capacity. That is why i think we will see more cases in the coming days and weeks, because there has been transmission likely happening that we have not observed. We are going to go out and find those cases and get a better handle. Theres no way to really estimate what the current status is. Emily we are hearing conflicting messaging from the white house, from the Vice President , from disease experts about just how high the risk level is here. What is your longterm outlook for just how serious this is and how many lives it could claim . Dr. Rivers i think the current risk to the average individual is low. For communities that are seeing transmission, i think the state and local Public Health departments for those jurisdictions are communicating about what risks will be. I do think there is reason right now for the general public to take steps to reduce their own personal risk, regardless of what they are seeing in the community. The best ways to do that are hand hygiene and respiratory etiquette which is covering your cough and staying home if you are sick. Paul i ask this question to a number of guests you because you see a number of people Walking Around with facemasks. Are they actually effective . Dr. Rivers they are effective if sick people wear them to contain their coughs and sneezes and so on. They are not particularly effective for well people to stay well. We are concerned about supply chain and making sure healthcare workers have access to those masks, because they are at high risk being in contact with people who may be sick. We want to make sure they have access to the supplies they need to be healthy. Paul for those of us who arent in the United States, ive got to be honest with you, the u. S. Health system is a subject of intense fascination for us all. Is there a risk that people who are not well will not come forward because they dont have insurance . Dr. Rivers that might be a risk and it could be a risk anywhere, because it is difficult to kind of understand what to expect when you go to the doctor. Some people have anxiety about that. Certainly under insurance or lacking insurance in the United States, could compound those concerns. We have a social safety net in the u. S. To some extent that helps to cover those people and make sure they can access the resources they need, but i hope there is additional consideration about how to make sure they are cared for. Emily meantime, we are hearing that treatment in the u. S. Will be available towards the end of the summer, but a vaccine, we are looking at the end of this year, maybe early next year. Is it your assessment that this just becomes a strain of the flu that we are vaccinated against every year . But we have this risk period of a year almost until we have that vaccination . Dr. Rivers we are only eight weeks into this brandnew pathogen so it is really difficult to understand the longterm horizon of what we can expect to see. I think it is true we likely will not have a vaccine this calendar year. So, i think we should proceed as that planning assumption. Emily all right, dr. Rivers of Johns Hopkins, thank you so much for joining us. Coming up, the rba was the first beyond china to ease in response to the coronavirus. Ahead of the Fourth Quarter, Jp Morgan Says the bank is not likely done yet. This is bloomberg. Paul it was a bank of australia cut rates on tuesday and now Fourth Quarter gdp figures from the coronavirus will be more substantial than initially expected. Lets bring in Jp Morgan Securities sally auld. Thank you for joining us. The reserve bank typically goes twice. One would think we would hit that lower bound. So when will we see unconventional measures in australia . Sally thats right. We think they will go again in april and that will take the cash trade to 25 basis points, which is the effective lower bound, at least for the time being. That is the specter of unconventional Monetary Policy onto the radar. I think the rba would be reluctant to rush that story. Now that we have commitment from the government to deliver some sort of fiscal spending, that probably buys them sometime. Our forecast that jp morgan, we have unconventional Monetary Policy or qe taking place in the back half of 2020. But, clearly, things are pretty fluid at the moment so that could change. Yes, we feel eventually the rba will be forced to go down that path. Paul the rba said the government and the rba are hardly aligned, which suggest after years of prodding, fiscal stimulus is on the way. The Prime Minister says it will be scalable. I heard him say that 50 times yesterday. What does that mean . Sally it means we will see Something Different than the fiscal stimulus we saw an 2009 in the wake of the financial crisis. They want to provide support to the particular industries that have been hurt by the impact of the coronavirus higher education, tourism, perhaps retail as well. Scalable probably tells you they want the ability to increase or pullback if things get worse or better. But, i think what will be meaningful is ultimately what the size of the package is because that will determine the stimulus to growth and how much the rba can rely on the government to deliver more. Lets talk ally, little bit about tech in particular because that is our focus here. Tech has been in an interesting position. Some companies have no supply chains. You have Companies Like apple that have deep supply chains. Paul, take it away. I believe we are having difficulties. Paul you are unable to hear emily. We are talking about some sort of stimulus from the australian government. Does that mean the Budget Surplus that was promised last year, that is gone, how big with the deficit will be . Sally we know the surplus is gone. That was only around 5 billion which is not a big one. It was always vulnerable to many downside shock. The government has been honest of saying the impact of the bushfires and coronavirus means it will not be achieved. Theyre running the narrative around a balanced budget as opposed to a Budget Surplus, which tells you they want to avoid running a deficit. It does feel like that is an unnecessary, when the fed is probably doing more this month. It seems a bit unnecessary to put this artificial constraint on what fiscal policy can do at a time when i think the risk to the Global Economy and domestic economy have intensified quite significant. Paul we have gdp figures coming out later on for the Fourth Quarter. Probably not going to be too bad. It does not factor in the bushfires, drought, virus. What about the future quarters . Sally we think today, we will get gdp number of. 4 for the quarter which is reasonable. It tells you growth is still annualized still below trend. Q1, at the moment, it is. 3 . We all believe there is material downside risk. Later this week, we will start to get the first set of activity data for january so that will give us a sense of where we start the quarter and what sort of Downside Risks we might need to pencil in two gdp numbers. It does feel like the rbas narrative of a gentle turning point and improving trend in the back half of this year is generally under threat. Paul do you also see a risk of recession . We have not had one since the 1990s. What are the chances . Sally we havent had one. I think the way markets are reacting at the moment is to build a nontrivial chance of a global recession. Our method a jp morgan, between equity and bond markets, probably pricing a chance of a global recession somewhere around 30 , 40 . You means, i would imagine, would have to apply the same probabilities to australia as well. My sense will be we will not be so lucky this time around. Yes, i think the chances of recession here are certainly much higher than they have been at any point in the last 10 years. Paul the reserve bank of australia got a shout out from President Trump. He tweeted after the easing, essentially saying well done, the fed needs to move as well. The fed did move 50 basis points. It appears we are seeing a wave of easing across the world now. But, is this really the right solution to the problem . Is it just the placebo effect . Cheap money was not really the issue, is it . Emily cheap money was not the issue. Sally among the central bank communities, they really believe this is only a supplyside shock and was all about supply chains and eventually things will normalize. It is right to say Monetary Policy is not the appropriate tool, but in a world where you start to worry about a significant demand shock, what we are seeing Central Banks do is try to take out some insurance to protect against the chance of a much more meaningful decline in growth. The problem for all the Central Banks, is definitely the case for the rba, they face those risks with inflation just way too low. This means your tolerance for any downside, no matter how significant or otherwise it is, is very limited. Paul you do cover new zealand as well so i want to ask you we have a meeting later this month with the rbnz. What sort of move do you expect and is new zealand even more exposed to the coronavirus risk . Sally similar to australia. Big tourism sector, agriculture sector. If the chinese economy slows and they face restrictions on exports, that could be an issue. We expected 25 basis point rate cut from the rbnz. A lot will depend on what transpires over the next few weeks, the meeting at the end of the month. They have the advantage of waiting to see more information, seeing what other Central Banks do. It is quite possible the fed has cut 100 basis points the time vr begins at meeting rolls around the rbnz meeting rolls around. Paul jp morgan security chief economist, thank you so much for joining us. Still to come, we do have another major event canceled. Google is calling off its conference. We will have the details next. This is bloomberg. Emily quick check of the latest business flash headlines. Ford motors is betting all air travel for business trips after two of its employees in china tested positive for the coronavirus. They have been quarantined and ford says they are recovering. The company says it is serving domestic and International Business air travel until at least march 27. While also asking some staff to work from home. Indias struggling yes bank facing more difficulty with potential investors laying down tough conditions on any new much needed capital. They have all expressed an interest, but only if sovereign banks are involved. Both the Indian Government and to, a round of 1 billion meet revelatory requirements. Nearly all the engines ordered for the next generation f35 jet fighters were delivered late last year with brett and whitney blaming issues on parts and suppliers. 85 of deliveries for the Stealth Fighter missed the deadlines. The 428 billion program has been plagued by setbacks. A decision on whether to move ahead with full production is expected later this year. Those are our business flash headlines. Meantime, earlier today, the u. S. Federal reserve voted to cut Interest Rates by a half percent to fight demand shock amid the coronavirus. U. S. Stocks dropped and treasuries surged. As investors were the measure will not be enough to combat the Economic Impact. Scott minor, Guggenheim Partners chief investment officer, thinks equities could tumble even more. He spoke to tom keene and scarlet fu over the phone. He oversees about 215 billion for guggenheim. Scott i dont see this having much impact at all. I think whether the timing of this event was today or at the next meeting is fairly irrelevant. Inevitably, the fed had to act because they had to demonstrate that policymakers are not asleep. Ability tos of their really affect an outcome here, a recut is not going to improve earnings materially. A rate cut is not going to cause people to feel better and decide to go out and spend money. Tom what Everyone Wants to know from you is you have been exceptionally cautious. Many have said scott minerd is way too gloomy. The telegraph publishing Capital Economics analysis which clearly shows a slowdown in china. Can you within your caution extrapolate china gdp collapsed over to other nations including america . Scott sure. Don over at isi works with ed hyman does an excellent job on china. He now believes that Economic Activity in the First Quarter is contracting at a 20 annualized rate in china. With that much of a slowdown, obviously, it is interrupting the supply chain. We are already seeing that feed into earnings announcements or preannouncements by people like apple, microsoft and others. It, the on top of countries which export to china, countries like germany and basically europeans more than american are starting to be inacted by the slowdown exports to those countries. It is spilling over. That is before we get to the actual impact in the domestic economy. Of the virus itself. We are seeing now schools being number of cases proliferating in the United States. Scarlett that being the case, is its too early for us to take any comfort from at least preliminary signs that the cases in china have peaked and that china seems to be getting back on its feet, people are returning back to work, markets are performing better as well. Is that a false sense of hope then, that that kind of information . The china data highly suspicious, because of the sudden improvement. We were on a trajectory of case growth and so on and so forth. And then all of a sudden, there is this dramatic slowdown in new cases. Im suspicious of the data. The other thing, however, maybe even more importantly in china is that i think the policymakers are playing with fire. That is that if they have been successful in slowing down the spread of the virus, they are going to be undoing it with the pressure to send workers back into the factories where they could reignite the epidemic. I think it would be inappropriate to take a great deal of comfort in the data that is coming out of china. Emily scott minerd of Guggenheim Partners. Still ahead, the next hour on markets asia, how the feds emergency cut could play out in asian fixed income. We will discuss and hear exclusively from singapores minister for trade and industry on why his virus rescue plan starts with tourism. Dont miss that interview at 7 40 a. M. Hong kong time. We are monitoring super tuesday here in the United States. We will have updates as they roll in. This is bloomberg. Beyond the routine checkups. Beyond the notsoroutine cases. Comcast business is helping doctors provide care in whole new ways. All working with a new generation of technologies powered by our gigspeed network. Because beyond technology. There is human ingenuity. Every day, comcast business is helping businesses go beyond the expected. To do the extraordinary. Take your business beyond. [ fastpaced drumming ] heidi good morning. Itim haidi stroudwatts in sydney. Shery japan and south korea open in one hour. Welcome to Bloomberg Markets asia. Shery Central Banks tackle the coronavirus but the feds emergency cut does not inspire with asian stocks set to resume declines. What policymakers can do as the infection spreads. Spreadshe up wreck wider with global cases topping 90,000. All businessans travel. Its super tuesday as the remaining democratic contenders seek vital support. We will have the latest on the race live from washington. We are getting the latest lines from Vice President mike pence. Ins leading the task force charge of dealing with the coronavirus up rate in the u. S. The Vice President saying the u. S. Has 77 domestic coronavirus cases. This would excluding those from repatriated americans. Mike pence also seeing the Coronavirus Task force will brief the house tomorrow. This is the Vice President yesterday had said there could be a vaccine going into trial in six weeks. All eyes on therapeutics as well. Haidi yeah, we are seeing the markets buying the rumor and selling on the fact when it comes to the rate cut by the fed overnight. Not doing a lot for the markets. We saw the languishing when it comes to u. S. Markets at close of the last hour. We are seeing that in the asian session. Sidney stocks down by 3 10 of 1 . Really ended the previous session off the scented highs. Now tracking lower out of eight of the last nine sessions. New zealand also seeing 4 10 of 1 . That market had rose by the most in 11 years yesterday. Nikkei futures looking pretty lackluster at this point as well. We are seeing some wi weakness the u. S. Futures. Markets expecting more and soon from the fed. This is the u. S. Central bank made the emergency Interest Rate cut. A have percentage point amid concerns of impact by the coronavirus on Economic Growth. Monetary policy can be an effective tool to support overall Economic Activity. We do recognize a rate cut will not produce reduce the rate of infection, it will not fix the broken supply chain. We dont think we have all the answers, but we believe our action will provide a meaningful boost to the economy. Haidi this is the first time the fed made a move between meetings since 2008. The First Central Bank to lower rates this year. Lets get the latest from Tom Mackenzie who is on the coronavirus story for us in beijing. Markets are clearly not impressed. What are you watching at this point . Course, the focus continues to be despite that market reaction, what the Central Banks and what finance ministers around the world are going to be doing. The fed is the headline at the moment, cutting by 50 basis points. The markets expecting another two cuts at least this year. Of course, prior to the fed, you have the rba cutting rates. The Central Banks in malaysia cutting rates as well. Were looking ahead wednesday to the bank of canada. Then, we have the ecb, the bank of england later this month. There is intense pressure on those Central Banks to come up with some kind of action as well. Whether that is rate cuts or additional measures, maybe targeted measures. The ecb is obviously slightly constrained with the delayed statement from the new ecb head, christine lagarde. Some would say it is delayed in terms of her commentary. The ecb would be looking at their next meeting next week. Theres is an expectation for the markets that you would see a cut of 10 basis points. They are already in negative territory, 0. 5 for the benchmark. The other possibility for the European Central bank is maybe they will look at targeted measures around longerterm loans, some of the corporate that have been impacted. The bank of england later this month. They have a little more wiggle room. The bank of japan is relatively constrained as well. Their benchmark rate is already at 0. 10 basis points. They may be looking at increasing their targets for etf purchases. G7have had the teleconference between finance ministers, saying they will use all possible tools at their disposal to shore up the economy as the pressures from the coronavirus continue. Bloomberg economics says there is only so much Central Banks can do to inoculate from the impact of the virus. If you get the kind of shut down have seen in china and other countries, you can see at lost outputs of 2. 7 trillion for 2020. Shery we are continuing to see the impact in the United States as well. We are continuing to hear from Vice President pence at the briefing in the white house, saying that anyone will be able to be tested for the virus Going Forward. That there should be 1. 5 million tests out by the end of the weekend and there will be one million tests per week starting next week. Hes also met with the ceos of commercial lab. The white house will need their help in carrying these out. Vice president pence also saying the Budget Office will issue guidance on federal government travel policies. As these testing guidelines and expectations are more than one million for this week and by the end of those this week, more optimistic than Health Officials expressed during their congressional hearing. Just today when they said there could be some testing of one Million People by the end of the week. This, as we continue to see the numbers of confirmed cases growing around the world. Tom absolutely. Now more than 92,000 confirmed cases around the world. The World Health Organization saying this situation continues to moderate in china, but theres a lot of concern in south korea where you have more than 5000 confirmed cases. Iran remains a country under focus and under the spotlight in terms of how they are handling the outbreak of this disease. They have now confirmed more than 2300 cases. The second highest rate of death as well at 7070 confirmed deaths in iran. The u. S. Confirming they have 77 cases, not including those people who returned from places like japan. They have now confirmed about nine deaths in the United States. The testing kits have proven problematic in the past in the u. S. The question is have they improved the quality of those tests . Are they going to prove more reliable . On the corporate front, we have been hearing from some executives from the likes of bmw who have major exposure to the chinese market, saying the first few months, january and february, will be very difficult for that company. Any dont expect significant demand drops outside of china. Daimler has produced an Operations Plan to get things back on track. They have yet to get the green light to restart operations in china. Ford now confirming they have two employees in this country that have gotten infected with the virus. They are banning all travel for employees as well. Shery Tom Mackenzie, thank you very much. The Federal Reserve slashing Interest Rates by half a percentage point, trying to contain the economic damage from the coronavirus and this leaving policymakers in europe and japan under more pressure to follow suit. The 10 year treasury yield has fallen below 1 for the First Time Ever. Joining us now from San Francisco is teresa. Great to have you with us. As we continue to hear from the Vice President mike pence saying he has met with ceos of international airlines, that he will be meeting with them tomorrow to really contain the economic fallout. A key question now is we have seen the fed move, so will that 50 basis points really make a difference . I think it is too early to tell. Theres no doubt that the fed is trying to preemptively help lubricate the markets and lower the cost of financing. You have to remember, revenues is someone elses inventory and vice versa. The weeks and months of shutdown could very well tap the capital its and actually cause think the fed is being preemptive. I also think it is important to keep in mind that the cost of this insurance cut is actually quite expensive. Now, we only have 100 basis points left between where we stand today and the next recession. 100 basis points is really not a lot in terms of going for what the fed will have to fight off any further declines in global growth. Dory what is a cut going to if it is not followed by fiscal measures . Teresa i think we really have to borrow from the playbook of other countries. Surely, we dont have the number of levers that a country like china has. But i do think it is really important for us to follow through in terms of more fiscal. You look at what china has done, not only have they produced ample liquidity in the banking channels, but they have used a lot of fiscal measures. So, they have also lowered a lot of the policies around property. That should hopefully stimulate the markets over the next few quarters. Fiscal has the followthrough. Otherwise, Monetary Policy is certainly not going to be sufficient to help u. S. Growth. Haidi has it been a misstep here, not just from the fed, but we have seen preemptive cuts from australia, elsewhere in asia, and now from the fed. Be usingake sense to resources when we know a lot of the Central Banks are really restrained in terms of how much space they have to ease before the physical heavy lifting has been done even before the china data is out . Teresa i think that is precisely what has spooked the markets. The sequencing of the fed cuts this morning was really quite unexpected. You consider the fact the fed could have waited another couple weeks to cut, they must have seen something that worried them. I think that is what the math is being done right now. You actually look at what is known and what is unknown if you look at the u. S. , currently, we have nine cases of deaths from the coronavirus. If you apply just global rates u. S. ,ality to the assuming the u. S. Is no different than the rest of the world, we are talking probably more like 1000 cases as opposed to the 100 cases that has been diagnosed. Theres a really big gap in the orders of magnitude. In terms of the potential numbers of cases that will actually manifest once we do have the sufficient number of kits to diagnose these patients. Have vice we president pence addressing that. Saying among other things there is one million tests starting next week, 1. 5 million tests by the end of next week and there is a reserve of 43 million facemasks in the u. S. Turning to the actual impact in terms of what you cover, what do you see the effect of this race to the very in credit markets in asia . Teresa i think it is important to provide some type of liquidity to the markets. Lowering the cost of capital is really important and especially important for u. S. Dollar funding channels. You alluded to other asian Central Banks also having gone so overnight. For example, australia and malaysia. We expect more cuts but i do think it is really difficult to underestimate the importance of providing liquidity in the u. S. Funding channels. I think a lot of the potential liquidity problems will continue to rear its head. One canary in the coal mine is the u. S. Highyield market. Despite the rally we are seeing in the last couple of days, we really have not seen a reprieve from u. S. Highyields spreads from coming down. If you look at the sectors that have been hardhit, there is very little room for these companies because they are already looking at the combination of high operating leverage and very much a need for them to bring down the financial leverage. I do think with the fed has done is necessary. The timing and the fact they did it now as opposed to waiting a couple of weeks may have been counterproductive. Shery we are getting from the chinas security journal at the moment, talking about a potential cut in rates in open Market Operations this month. We have seen several operations already in china. What is all of this likely to do to chinas economic support, not to mention the credit market . Teresa i think overall, the Chinese Government has substantially more instruments at its disposal. I do think they want to err on the side of doing maybe too much as opposed to two little. Too little. Look at the amount of leverage the Global Economy has two Economic Growth. It is primarily Economic Growth in china and secondarily the United States. The fact that china is really stepping on the gas pedal in any way it can can really only help not only its own economy, but also the Global Economy, especially in the emerging markets. Haidi really appreciate your time. Teresa kong there. Dont miss our exclusive interview with the st. Louis fed president jim bullard. You can catch it at new in hong kong. 3 00 a. M. In sydney and 11 a. M. Wednesday new york. Lets get the first word news. Ritika opec an independent allies are expected to discuss new production cuts when ministers meet later this week. Experts from opec plus a recommending reductions between 600000 and one Million Barrels a day in the next quarter to counter falling demand. That will be less than some analysts have forecast. Russia has been resistant to new curbs, but it remained in line. Japan says the Tokyo Olympics may be held back by the coronavirus. It could be held later in the year. The minister in charge says the event must only be held in 2020. Preparations are being threatened by the spread of the infection, with the death of at least 12 japanese people linked to the virus. Schools, sports and other olympic related events have already been canceled or postponed. Israeli stocks jumped as Benjamin Netanyahu claimed victory in the countrys third election 12 months. The Prime Minister called the vote in a bid to form a workable government and postpone any trial on corruption claims. All votes counted his party and its religious and nationalist allies. The blue and white challenger. Leader kimn jonguns sister made her first note official comments, criticizing her countrys latest live fire missile test. Shes believed to be in her early 30s and has accompanied her brother several times, including talks with President Trump. The public release of her comments indicate her political status has been further elevated. Global news 24 hours a day, on air and on quicktake by bloomberg, powered by more than 2700 journalists and analysts. In this is bloomberg. Haidi thank you. Coming up, singapores minister for trade and industry tells us the emergency measures his country is rolling out the economic blow the coronavirus. Shery joe biden wins key endorsements as super tuesday gets underway, but will that be enough to beat Bernie Sanders for the democratic nomination . We are live in washington next. This is bloomberg. The selfproclaimed democraticsocialist took conventional wisdom and turned it upside down. Bernie, bernie, bernie. All that talk about sanders support being limited to young white liberals that are disinfected, no one is saying that now. Sanders won 47 of the vote in the nevada caucuses and he did it with a broadbased coalition that looked more like the Democratic Party as a whole. Now, sanderss i think bigger prizes. Dont tell anybody, i dont want to get them nervous. We are going to win the democratic primary in texas. Texas is just one of the 14 states at stake on super tuesday. It is the biggest day on the president ial primary calendar. There are 1357 delegates up for grabs. One third of the total number available. In california and texas, the two biggest prizes. Others include north carolina, virginia and massachusetts. The big question is can ant imoderate sanders come back . We are going to win. Biden was the Longtime National front runner. He hadnt won a state until saturdays victory in South Carolina. His supporters hope that can give him a boost on super tuesday. And, there is the Michael Bloomberg factor. The billionaire will be on the ballot for the first time. His performance in his first debate was widely criticized, but he has spent a fortune on advertising that will likely shore up his support. That means beating the biggest of all. Bloomberg is the majority owner of the parent of bloomberg news. Candidate who took bloomberg down in that debate is looking for a bounce. Every time somebody tells you a woman cant beat donald trump, i dont know about a woman, but i will tell you Elizabeth Warren can beat donald trump. Warren and the others wont get a chance unless they figure out a way to stop Bernie Sanders. Super tuesday could be one of their last opportunities. Super tuesday underway with voters heading to the polls in 14 states and one u. S. Territory. Our chief washington correspondent Kevin Cirilli joining us with the latest. Will joe biden be able to build on that momentum from South Carolina . Kevin here we go. Its super tuesday. The Biden Campaign sources i speak with say they are fully poised to be able to project not just momentum, but delegates coming out of super tuesday. Heres what you should be watching for. The suburban swing districts in texas and california. Look to see if these districts which flipped back for democrats in 2018, look to see if they go for joe biden because if they do, you will hear biden world really spinning that and saying this is precisely the area where democrats need to win back in november if they want to take back 1600 pennsylvania avenue. They have to win back to the suburban districts. Also look back for senator bernie to project confidence, not just momentum but delegates coming out of california. That is the tom price. Bernie sanders is expected to win california, the state with the most delegates up for grabs tonight. They feel if they are able to win the big democratic progressive stronghold, they will able to say this nomination is theres. Theirs. Haidi the criticism is this is what happened with Hillary Clinton and sanders. The Party Leadership supported the moderate candidate, with the grassroots supporting Bernie Sanders. Is this history repeating . Kevin it is history repeating itself, in the sense you have that very strong base that is for Bernie Sanders. When i speak to my sources connected to the sanders political campaign, what they have to say is it is different this time around in the sense that he has been able to win. Of thee now a coalition establishment in the Democratic Party backing biden. But Bernie Sanders needs to be able to say he would be able to form a coalition with the democratic establishment and Pete Buttigieg and Amy Klobuchar suddenly went over to joe biden. March 17 is next. I would kind of pivot towards there next in the sense that come tomorrow morning, two things i will be looking out for. One, the margin of victory for senator sanders. Two, if Elizabeth Warren or former new york city mayor Michael Bloomberg drop out of the race tomorrow. If they do, it is simply because you will be hearing from sanders as well as biden that it is time to narrow this field even more in particular. Shery how will this election really shape the fundamental question for the Democratic Party, when you have really contrasting approaches to winning voters . Centrists against a populist one . Kevin that is the election right there. I think when i talked to sources on the reelection campaign, you will notice they have been a bit more aggressive in their political attacks as it relates to biden and perceived resurgence of bidens president ial ups following his win in South Carolina. Haidi kevin, thank you so much for that. Here we go. Kevin cirilli with the latest on super tuesday. Tune into our special coverage. We will have live analysis of the democratic contest as it kicks off starting it again hong kong time, 7 00 p. M. If you are watching in new york. This is bloomberg. Haidi lets take a look at how markets are faring so far. The 50 basis point emergency cut by the fed overnight did nothing except stoke more worries for Equity Investors trying to price in what a worstCase Scenario of a recession and equities would look like. This is how we are seeing things in the asian session. Australia extending those losses , about 1 lower. Trading at its lowest since june 2019 when it comes to the asx. New zealand coping moderately well given we are seeing, giving back some of the gains yesterday. Jumped by the most in 11 years. Mckay futures turning more positive, but u. S. Futures still looking like they are stuck in the red. Coming up next, India Central Bank seeing room for more cuts as they question the economic fallout. This is bloomberg. This is Bloomberg Markets asia. Markets remain nervous about the coronavirus, doubting that the feds emergency red cut will be enough to combat the Economic Impact of the spreading outbreak. Jerome powell lowered the benchmark rate by 50 basis point, saying the economy remains strong but the infection will have an influence for some time. The 10 year yield fell below 1 for the First Time Ever on the move. New satellite images suggest factor activity in china could be picking up after disruption from the coronavirus. The data shows nitrogen dioxide levels are rising across the mainlands industry hotline which implies rising burning of fossil fuels. Levels plummeted in february after authorities locked down millions of workers in a bid to contain the virus. The International Monetary fund and world bank have decided their upcoming Spring Meeting will be held in a virtual format due to concern about the coronavirus. The fund says it is committed to productive dialogue, but will use all possible forms to host the annual talks. The meeting traditionally takes place in washington near the white house and scheduled in the middle of next month. 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. This is bloomberg. Shery thank you. Lets stay on markets. Lets get a quick check of how markets are trading at the moment. We are seeing australia open for about half an hour. We have seen almost every sector in the red. We are seeing tech and Energy Leading the decline. We are seeing oil reversing two days of gains. Oil has been largely insulated by the Broader Market declines. We have heard from an opec plus committee indicating a larger supply cut. The asx 200 at the moment of the lowest level since june as we continue to get more headlines on the coronaVirus Outbreak. Just from the nih, we are hearing from dr. Fauci that he is confident china is providing accurate data on the coronaVirus Outbreak. When it comes to nikkei futures, under pressure, 8 10 of 1 . U. S. Futures falling 3 10 of 1 . This after the feds first emergency cut since the financial crisis fell flat. Lets discuss this and bring it david ingles. What was really interesting was when we were heading into chair powells presser, we were up about half a percent of the s p 500. As soon as he was done, we were at session lows. What exactly did investors not like . David perhaps a couple of things. It could be perhaps a case of th e news. The civil reason i bring that up when i look at futures right now, australia is down but not down to the extent that, it is not like we are looking at a sale across the region. It could change depending on the headlines. The off cycle if you are barred for efficacy of the move, a rally was completely disappointing. I would probably look more to market stability over the next couple of days as the bar for we could to determine whether or not it actually works. A very good quote on bloomberg tv overnight and quoted in one of the stories today. Equity markets tend to price for the worst Case Scenario and the worst Case Scenario right now is a recession. That perhaps arguably is the best starting point. As we try to get a better idea of the damage, you work your way back. You price back. A couple of things, obviously. Right now, all indications are the economic damage is going to be a lot more severe than we thought previously as well. Lets see, when it comes to the economy and the nature of the problem, both supply and demand side right now, off cycle, large move, it helps but it is not really address it compared to what it usually does under normal circumstances. Of preexisting conditions, if you will, for an economy, lets talk about hong kong. We are seeing the Hong Kong Monetary authority passing that bates right kate that rate cut to. 5 . We will have to wait and see if that gets passed on to lenders, which we know are suffering in the city. It is interesting because it almost feels like markets are getting themselves into this negative feedback loop. We get more headlines, fatalities, infections, new places where you are seeing the virus. On and on it goes. David yeah. I even put you back to a couple of days ago out of jp morgan. When you equity markets find the floor . It is by the infection rate starts to go down and then you can get a sustainable rally. It is not as if because you are getting rates going down, the risk of another spread partially goes away. All it takes is one person. Now justlike right looking at the fed rate cuts and what we are getting in hong kong, that is an automatic function. It looks like hong kong will have to fall yet again in about 14 days because the pricing after the 50 basis point cut right now. We overnight index indicates will get one more 25 basis point rate cut out of the fed on their meeting on march 18. Aussie yields, all the commentary points to yields heading lower as well. That is what we are getting in australia. Haidi dave, we believe it there will leave it there. David in hong kong. Amid rising calls for Central Banks to act as the coronavirus ,ontinues to spread, the rba among them the most recently. We asked the governor of the reserve bank of india if he believes it is a case for coordinated policy action. Take a listen. The coronavirus has turned out to be a global problem. When the problem is global, the need for coordination action is so much more. In, we have articulated the statement which we issued earlier today. The coordinated action is underway. He have also indicated t coordinated action. I think the g7 countries, Central Banks from the g7 countries will have a conversation, teleconference later today. Going forward, i think in the very near future, there will be i expect some discussion to take place through teleconference or radio conference videoconference among the larger Central Banks of the large economies, including india. In a situation like we have today, coordinated policy action has become that much more important. One of the things we might be looking at is inflation coming down sharply from the relatively high january number. Maybe even falling by a full percentage point between january and february. Does that give you more room to respond to support the economy . The central bank, the response will be decisions that are outside the Monetary Policy. That is outside the Interest Rate cut. As far as Interest Rate cut is concerned, we have stated clearly the Monetary Policy has stayed. I have said it in my minutes that there is space for a rate cut. That is one option which is available. The other option is in temrrms of supporting the markets by liquidity, building confidence, or using various other tools and instruments to deal with emerging challenges. When there is a requirement. Shery the reserve bank of india governor there with stephanie flanders. Coming up, how singapore plans to help businesses whether the impact of the coronavirus. Our exclusive interview with the cdcs minister for trade and industry, up next. This is bloomberg. Shery this is Bloomberg Markets asia. Our chief International Correspondent for Southeast Asia Haslinda Amin joins us now with the next guest. Islinda well, singapore implementing more measures to counter the impact of the coronaVirus Outbreak. It says its immediate task is to boost tourism in the country with plans for hotels and attractions. The move comes on the back of a budget that aims to provide 5. 6 billion of economic stimulus, support for businesses as well as consumers. Lets get more with singapores trade and industry minister Chan Chun Sing. I want to talk about the coronaVirus Outbreak and how the fed has moved on the back of that. How did we go from a virus that is like the flu to a 50 basis point cut by the fed schumer by the fed . Mr. Chan it is not exactly like the flu. When you talk to most of the medical professionals, they are looking at a couple of scenarios. One is this is what we call a reshaped situation. The economy might recover quickly, but there is growing concern this might take a while. Even an lshaped situation. I think what you are seeing the fed done yesterday is to make sure they shore up confidence. It takes more than just the fed cut to restore the confidence how governments are handling this outbreak in order for us to restore confidence in the economy. Haslinda is this a case where banks around the world are in a state of panic . Mr. Chan i am not sure i would characterize it as panic but many Central Banks in the world will want to Work Together to restore confidence in the Current Situation. Having said that, you look at singapore, we always have a twopronged strategy. On the one hand, we will try to stabilize the Current Situation which is what the budget has done with the stabilization package. We will do more if need be. On the other hand, we will always have an eye for the future which is at this moment, even when things are down, when the chips are down, how do we prepare ourselves moving forward . We will continue with many of our projects, whether it is in the Tourism Industry or beyond, to make sure when the recovery comes, we are one of the first ones, if not the first one. Haslinda going into 2020, there was a lot of talk about a global recovery, recovery for singapore as well. Now are we any closer to a global recession . Mr. Chan too early to sing at this point. But what we certainly know is compared to 2003, the World Economy is much more integrated at this point and much more independent. Anything that happens in china or u. S. Not only affect them, but affect the Global Economy. We must never forget even if this becomes the new normal where we have to learn to live with the virus in the background, we must continue our plans positively and constructively for the future. Haslinda singapore downgraded its growth target. It has a midpoint growth of 202 0. Is that still intact given recent developments . Mr. Chan it all depends how long this will last and how the supply chains will be disrupted across the world. We are seeing the first wave of disruption in the supply chain in china. Closely, thetching supply chains in northeast asia including japan and korea, also europe and u. S. Are being disrupted. Haslinda much of global trade, 90 of global trade is done through shipping lanes. What are you seeing from singapores ports and what does that suggest in terms of the disruption in the supply chain . Mr. Chan i must say the reordering of the supply chain, even before the Virus Outbreak prior to this, we have other driving forces that will rethink the supply chain. Especially digital technology. Second was what happened last year with the u. S. China trade issues. Many people are rethinking the supply chains. Now with the third factor, which is the Virus Outbreak, Many Companies are rethinking their entire supply chain. From our perspective, we dont think even if the virus passes, we will not go back to old normal where supply chains are the same as a couple of years back. Instead, i thick Many Companies and many countries around the world will have a new set of supply chains and they will diversify the risks even if it requires a bit more cost for them to do so. Haslinda what does it mean for singapore . What is the outlook for manufacturing . What is the outlook for electronics . Are we looking at a rebound for electronics this year as expected . Mr. Chan we are cautiously optimistic. They were affected. We think they will continue to do well. Pharma, but also increases the demand for some of the products that we offer. The areas of digital technology, i think that will continue to grow. It may even grow more with the outbreak of the virus because of the demand for such services. Banking and finance will depend on the state of the economics. Haslinda electronics recovery, a rebound . Mr. Chan electronics in the shortterm, you will see a bit of a turbine lets. Longer term trend, the introduction of 5g, that will haslinda so no electronic recovery in 2020, possibly later . Mr. Chan it might be slightly delayed but i think the larger trend is the 5g and applications of the associative technologies. It might be a little bump but the longer trend is 5g. Haslinda the government has come out to say it is looking at pay freezes, pay cuts. That was followed by Government Linked Companies pretty much across the board. What message are you sending could you be perhaps at risk of instilling fear that mr. Chan not at all. The way we handle this particular crisis is based on a few sets of principles. The first is whatever we do, we want to base it on medical advice and scientific evidence. Second, what we have learned from sars, handling this crisis is for us to be transparent with our people. Give them as much information as possible. Most importantly is for us to make sure we maintain the trust and bond between singapore government and the people. This is very important. Haslinda why the pay cut, why the pay freeze . Mr. Chan this is a symbol of our solidarity with the people. We know many sectors have been affected. Maybe it is because of our background, the way our trading is in singapore. The leadership thinks it is in sufficient agoura, we will be less wants to eat, last want to consume. It requires us to sound a warning. Haslinda could this be a self fulfilling prophecy . If there is fear among the people, they are not likely to spend. Mr. Chan we dont think so at this point in time. I think the gesture by the Political Leadership instills confidence in our people. It will show our people that we are prepared to go through this with our people and we always want to remain with this trust. After this crisis passes, when people look back on the crisis, i think people will evaluate our countrys capacity based on systems and also the bond and trust between the government. The crisis our response to the crisis will be. Haslinda speaking of government, theres a new government and new Prime Minister just across the causeway in malaysia. The Prime Minister was sworn in on sunday. What do you make of relations Going Forward . Do you expect bilateral relations . Mr. Chan we wish malaysia well. Who they select to be there leaders, we will respect their position and will continue to to have a bilateral relationship. We will also work closely with malaysia on multimultilateral forms, because we have so many interests. As for the trajectory of the relationship the relationship is always detailed by the underlying fundamental forces between the two countries. That goes beyond personality. Haslinda we have to leave it there. Singapore minister for trade and industry Chan Chun Sing giving his take on pretty much a wide range of issues including the impact of the coronaVirus Outbreak. Back to you. Haidi thank you for that, Haslinda Amin with the singapore minister for trade and industry. Talking all things coronavirus and some of the measures the city state has taken to counter the impact. Dont forget our interactive tv function. You can watch us live and catch up with that interview if you miss that and any other past interviews, as well as a deep dive into any of the securities we talk about. You can join in on the conversation. Send us instant messages d. Check it out. Tv. This is bloomberg. Our center here. That specific person was a temporary worker who was put into hospital. 150 people who met him in the past days were asked to stay at home for the next two weeks and being put under quarantine. That is our immediate measure. Currently, it is not necessary and it would be overdone if we were to shut down facilities. Why think we have the right strategy. The concrete situation, we closed all of our dealerships in china in february. So, we lost the majority of our sales over there. Now we are opening the dealerships and looking for a better situation in march. It is too early to give a prognosis for the end of the year how we will recover, this situation in china. On bloombergives tv speaking about the impact of the coronavirus on their sales and production. Nissan is ready to make deeper cost cuts in the business deteriorates due to the coronaVirus Outbreak. The ceo spoke exclusively to bloomberg and said his mission is to make the automaker thrive again. He also promised a turnaround plan. This is his very first interview since taking the help at nissan helm at nissan. When i look at the individual, it is much more than what i know today. Oncefore, im saying that we have good companies, directionally, there should be the result much better than what we are showing in terms of our performance. Apart from costcutting, which everyone likes to talk about, what sort of investment needs to be made in the business . Makoto definitely when you talk about investment, human investment. That is what we have to seek. When you talk about the new era of the business and what direction, it has to be further enhanced, definitely that is the area. The shift in the automotive business is happening pretty rapidly. We are talking about electrification, self driving automobiles, new technology. Where is nissan going to be in that space . Makoto definitely, we would like to further enhance our electrified vehicles which is our core technology. That is an area we can demonstrate value for the customer. When i say that the automotive sector may evolve in the future, it is like a service. That will be the area we will have to have some partnership in the future which we need to further discuss and see a lot of stakeholders and tried to find our direction point. As you consider everything that has happened with nissan over the past 18 months, it is not an easy challenge for any an executive. You have just come on at the end of 2019. Can you tell us a little bit about how you view the challenge and whether it has sort of changed your view on whether success is reachable or not . I mean, it is probably going to be absolutely necessary, but was there anything that surprised you about the scale of the challenges facing you and the company right now . Makoto definitely, it is my first time being ceo. It has a lot of challenge which were unexpected. But day by day, i would like to further discuss with our employees and understand how they are feeling about the company. What has been the way they want it to be. It is important for me to know transparently what is really going on from people down to our employees. After having those united or something to be together, then i would believe the power comes in there. Once we have internal, better strength, that will be reflected with the external. Haidi that was the nissan ceo Makoto Uchida speaking to reed stevenson. Lets take you through what we are seeing with asian markets. The surprise emergency 50 basis to from the fed failing prop up markets in the u. S. And having the similar effect in asia. The asx 200, sydney stocks trading lower by 1. 5 . Pullbackso seeing that when it comes to new zealand stocks as well, 3 10 of 1 . We have been hearing lines from the chicago fed, talking about he is seeing the virus to likely have an quarter year Economic Impact in the u. S. Shery coming up, our special coverage of super tuesday. Tune in for live analysis. This is bloomberg. Good morning oh no, here comes the neighbor probably to brag about how amazing his Xfinity Customer Service is. Im mike, im so busy. Good thing xfinity has twohour appointment windows. They have night and weekend appointments too. Hes here. Bill . Karolyn . Nope no, just a couple of rocks. Download the my account app to manage your appointments making todays Xfinity Customer Service simple, easy, awesome. Ill pass. Wthats why xfinity hasu made taking your internetself. And tv with you a breeze. Really . Yup. You can transfer your Service Online in about a minute. You can do that . Yeah. And with twohour Service Appointment windows, its all on your schedule. Awesome. So while moving may still come with its share of headaches. No kidding. Were doing all we can to make moving simple, easy, awesome. Go to xfinity. Com moving to get started. From bloomberg world headquarters, welcome to live coverage of super tuesday. This is the night when voters in 14 states and one u. S. Territory inllenge dont from november. Virginia and vermont closing just a moment ago. From washington to california, with me in new york are my fellow bloomberg anchors