Us. Apple warnse, the path reopened after the super tuesday victories and what is shaping up to be a two man some iphones will be in short race for the democratic supply as Stores Slowly reopen in china. Nomination. First, the death toll from the that is up next. This is bloomberg. Coronavirus rising to 11 across the u. S. With california reporting the first death in this state. The fatality rate is 3. 4 percent, higher than the seasonal flu. Cases continued to surge in south korea, the u. K. 23 members of parliament have fallen no. U. S. Stocks rebounding, perhaps theing the rebound from surprise victory. Are expecting to see some decent trades some decent gains. We did have the new zealand Index Trading higher than more than hire more than 2 . Volatility is the name of the game. 1. 7 onhe asx slip by wednesday. It is going to recover all of that today. The nikkei also pointing higher. The nikkei broadly flat for the day. The cost fee looking higher by more than the cost be looking higher by more than 2 . The handle. Ing onto the aussie dollar, one of the best performing of the g10 currencies, some pretty decent fourthquarter gdp numbers out of australia. We are waiting on trade figures today. The treasurer saying the shock of the coronavirus is going to be significant. We are awaiting a fiscal stimulus package. Stocks advancing after congress agreed to the emergency spending bill to combat the spread of the coronavirus. Lets get to new york and Abigail Doolittle. Avenue volatilities are the name of the game. Every day seems to be a different story. Abigail volatility is the name of the game. It is tempting to put a fundamental reason to todays big gain such as the funding from congress or joe bidens momentum. It tends to be more reflex. Paul welcome back. The uncertainty. Yesterday, we had the big move down. The big move up today as the you are watching Bloomberg Markets. Lets check in on the first word best since monday because that news. Wasnt an even greater move of there are increasing fears 4 after the first week since the coronavirus will hit global growth. The imf says there were dips. 2008. We are back in the stretch of big moves as investors try to the World Bank Says it is figure out what this coronavirus working on a Fast Response while sources tell us the bank of tragedy means for the global japan may downgrade its assessment of the economy. Economy and more specifically Bloomberg Economic says the for the u. S. Economy and what it worst Case Scenario could mean will mean for the corporate growth stalls at a cost of 2. 7 profit outlook. We take a look at the airlines. This sector has been hit trillion. The coronavirus has triggered particularly hard. Today, lets of green on the falling carest screen. United airlines had been trading up and down. Sales since 2012. They made an announcement they the outbreak is a new blow to are cutting some of their the Auto Industry, which has overseas and u. S. Flights in been trying to arrest declining april. It could extend to may. Car sales in the mainland. They are offering some plays no manufacturers were hit. Paid time away. Some employees no paid time a slight recovery at the end of the month. The virus has also meant a ban away. Airbus is also higher after they mecca. Rimages to said they are perhaps looking at ofir a330 production because uncertainty fries uncertainty it affects the month of ramadan and the hajj later this year. From customers. There is the true story for the airlines. Prayers ined friday early for the markets overall. Not a bear market overall. Major cities across the country. The s p 500 down 8 . The Airlines Hit Hard on the 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. Uncertainty of how bad this could get. This does have to do with joe bidens momentum on super this is bloomberg. Tuesday. Take a look at these health care emily thank you. Stocks. The Global Smartphone market has managed care up 9 . The best day since 2008. Been slowing down for some time. The coronavirus will only make very relieved it seems bernie that works. Sanders may not have the shot smartphone some thought he did have. Shipments will drop to around that joe biden is looking more 1. 3 billion units this year. And more of a viable candidate. Joining us is coffered tell health care up in a huge way. Pratt crawford del pret. Paul thanks very much. Stories are reopening. You have some positive outlooks bloombergs Abigail Doolittle. The u. S. Has reported two more from analysts who say things are coronavirus debts including a coming back online. Apple is telling retail first in california. This brings the total fatalities employees they will not have replacing iphones for several to 11. Officials also reporting a weeks. Lets take apple as an example. Westchester county man has infected five others including what you see at impacting echo we have what do you see at family members and a neighbor. Lets get to the bloomberg impacting echo crawford we have opinion columnist who covers a number of analysts. We would say the tightest biotech and pharma. Component right now the what do todays numbers suggest about the response in the u. S. . Tightest ingredient as the people. Rapidlyphasizes how the people are not fully back to work. With think the manufacturers in this can spread from a couple china are mainly 30, 30 5 of cases in addition to the further capacity. Infection numbers. We also heard about a few more they are slowly starting to ramp back up. China also has been a place cases in los angeles. Where many components are it suggests we are likely to see manufactured. From that standpoint, what we an escalation in response in the have now is we believe the tightest components will be pc minute states. If youre going to have School Closures and Domestic Travel bas. Restrictions be effective, you that would fit with the story we have to do them as the number of have today that if you are cases are ramping up not after having trouble with replacement they already have. The amount of spread we are parts, what is one of the biggest parts . Seeing, we are likely to see you drop your phone and you break your screen and you need a more in the days to come. New panel. Alongside the increases of cases, youre likely to see an displays and screens are charting are increase in the measures that setting to show up in short are being tried in the United States to slow the spread. President orting that supply fits that story. Everything is generally tightening as we get deeper into this. Trump as reluctant to try fiscal emily we have heard tech stimulus. How might that help . It is hard to underestimate conferences are being canceled. The amount of economic you canceled a conference that was supposed to happen today. There is all this loss of disruption this can cause. Productivity. People change their Consumption Habits and stop going to work. Employees working from home. This can help the virus responds how do you begin to assess the impact on the Technology Industry echo on the and ameliorate the Economic Impact. Im thinking about things like industry . Crawford we are living in this financially helping companies time where we have seen gdp and support people who go on leave because of the virus. Take the rate of tag growth giving them some sort of financial compensation so they has been over two x that of gdp. Are more inclined to abide by restrictions. And they feel sick, actually stay home instead of going out shipping dogere because they feel like they have food banks. That was 1. 6 x. To work. I can support the economy and stop the spread of virus. That is worth considering in the tech was growing at twice the days to come instead of the rate of gdp. It is first thing we look at physical response in the belief the economy will do fine without is the gdp growth rate going it. Forward. Have an optimistic scenario, a for your continued probable scenario and a pessimistic scenario. We think in the optimistic updates. Thank you. The head of the imfs warning of scenario, gdp goes to two and a more dire scenarios. Due to the spread of the half percent. In the probable scenario, coronavirus. Because the 2 . In the pessimistic scenario, it we do expect that growth this goes to 1. 4 . We would look at all of the different components that are year under any scenario would be tied to gdp as well as overall demand and what verticals will be impacted. ,elow the level of last year from a probable but as you said, there is a standpoint and from a probable great deal of uncertainty about the longevity of the outbreak standpoint, we are talking about whether it we if china starts to come back online in the springtime, but faces headwinds into the middle of the year going into the a first or maximum said second half of the year. The probable scenario says the virus spreads around the world, they can maximum which is what has happened. Secondquarter impact or whether we are out of the optimistic it would spread further in 2020. Scenario. We think it comes down to how much it spreads into other emily the imf is making available 50 billion to help regions of the world. It is kind of taking as countries deal with the coronavirus. For more on the economic and somewhere between the probable market fallout, i went to get to scenario and the pessimistic david. David,nt to get to david scenario. That takes i. T. Demand from where we thought it would be to somewhere between three and 1 every day is a different story. Growth. We are getting more bad news we could get a 0 growth. From around the world. We have the biden surprise upset we do not think that will be the in the United States. Case. We think it will be between we have the rate cut. Those, lets call it two and a where is this leading you on half, maybe 3 growth. Strategy . Paul i am wondering, to what have focused on this high volatility a thousand up, a servicese cloud thousand down. Insulated . Crawford when you look at the Overall Services market, those it is extraordinary volatility. We will see more of it. We are sector conscious. Tend to feel the impact a lot later. We do not have any exposure in business, we think transportation. You just had a discussion on airlines. To answer your question, not we are worried about hospitality, cruise ships, the nearly as much as the people making the tangible goods. Services that support them. It is a lot easier to say, i we are worried about some assets will put off my pc buying. In the credit markets. We are starting to see spreads i will put off my mobile phone widen. We are overweight, the u. S. Buying. The actual people who are selling at this top at the Health Care Sector. Top of the stack, in this we have been that way. Marvelous time where technology you see biden success, is eating the world, if that in the markets today companies are going to be in because the risk from sanders on appearedh care sector business, they are using a Cloud Service provider. That means they are likely not to back away from those cloud to be substantial according to service providers. Paul i want to cycle back to many market agents. That was our view. Sector selection becomes very the point you are making about components and screens. Important. The u. S. Health care sector a couple of nasty sharks to the supply chain. First, the trade war. Should be owned in the face of no, this. The market volatility because it im wondering if the lesson is, maybe warehouse being has such a positive outlook for the sector. Emily there is talk about a warehousing. Recession. Crawford i would also throw the we are seeing china come back online. A serious situation when it tsunami we saw where that was a comes to the middle east. How are you parsing on different significant problem. We saw there were a lot of regions . Components we were not able to regional question is get. We had factories flooded in tough. Thailand. Peaking. China may be there are two lessons. We are watching how south korea there is probably a little more slack in the supply chain than we thought. That is one of the reasons why handles the virus. They have an explosion. We are not seeing component availability yet. What are they doing . That is supertight. They are transparent. You will slowly start to see they are testing. This whole thing is going to be they have systems in place. A situation where everything they are very much open with sees everything feels tight. Their public. The response, while it is time, we will see more serious, says positive things about south korea. Mitigation to other lowcost manufacturing sites around the that is on our radar screen. World. We are more worried about where places like vietnam, thailand there is no transparency or we are going to get another look in terms of places to manufacture. Are getting a distorted story from a government. We do not own any stocks in iran quickly, i am. Look at what is going on because wondering if there any lessons they are deceiving their own from previous outbreaks . Lessond from a population. You need to make a country by country decision on how standpoint, it is maybe not all governance is applied within that country. About cost, it is about it becomes very important. Mitigation. Paul i went to return to your figuring out how to mitigate the thoughts on volatility. Manufacturing base we have in order to flexibly manufacture in i made all of these wild swings, we can identify a few broad different places around the world. There are going to be some bumps trends. If we look at this chart, you in the road, what we will get can see withstanding all that through it. Has happened, the 200 day moving we will see i. T. Demand this average has still been broken. Year. Emily thank you so much for are we looking at a v bottom or sharing your perspective with us. A barriss congestion . How idc is dealing with it. David i am not sure. We have some cash reserve. This is bloomberg. We did not commit it we did not do it today. This is an unfolding story. We have taken down our earnings estimate for the s p 500 index for 2020. We have done that four times. It is going lower. We are in the one 50s now. We were as high as the one 70s before this all started. In earnings impact this year the first two quarters is not going to be pretty. Be deep those cuts will remains to be seen. Companies are not giving guidance. They do not know what guidance to give. We are not fully committed in the stock market. Weare sector specific where are committed such as health care. Paul i guess you could argue in that kind of sking to paul a complex of Bloomberg Markets. Lets take a look at how we are setting up for this thursday. We have new zealand already training and hiring by better than 2 . This after we saw a powerful bounce in u. S. Equities over the past 24 hours. We have futures in australia pointing higher by 1. 7 . A looks like it is going to be a risk on day. Volatility very much the name of the game. Take a quick check of currencies. The aussie, holding on above . 66. The japanese yen at 10755. Plenty more to come on the coronavirus. Stay with us. This is bloomberg. Emily welcome back. Lets get straight to the White House Briefing room, where Vice President pence is giving a Daily Briefing on the coronavirus. Cover your cough or sneeze with tissue, cover the trash, disinfect frequently. Wash your hands with either disinfectant or soap and water for at least 20 seconds. Let me say again, as we have said before, there is no need for americans to buy masks. I justmonsense practices described are all available at cdc. Gov. Today, we had a series of meetings here at the white house and on capitol hill. We met with executives of the airline industry, executives of commercial labs, executives of Nursing Homes, and our team also met with the republican and democratic caucuses in the house of representatives. We were pleased to learn that shortly ago, the house of representatives passed a federal virtuallyll by a unanimous margin that will now move to the senate. The legislation implements the president s vision to ensure not only do our federal agencies have the support and resources they need, but also state and local partners have support. In my conversations with governors this afternoon, i know they are grateful for the bipartisan spirit that has characterized this funding bill and will continue to work through that process. As President Trump said, we are all in this together. Whole ofployed a government approach, but thanks to the president leadership, it has developed into a whole of america approach. The meetings today with Industry Leaders is a reflection of that. Dr. Burks will indicate in a few moments with some of the data we are evaluating from around the world, it does appear that the elderly are the most vulnerable, especially those with Serious Health issues. At the president direction as a result, the center for medicare and Medicaid Services will issue new guidelines for Nursing Homes nationwide. And raised the bar involving Infectious Disease control in Nursing Homes. Administrator seema verma will explain how we will focus all of our inspection resources for the foreseeable future on compliance with Infection Control standards. Generally, monitor our nursing , but for abuse and neglect at the president s direction, we will focus exclusively on ensuring that those who are in Nursing Homes, people operating the Nursing Homes, like the ceos we met with, are complying with the new standards to keep our elderly safe. The president also met today with airline executives. I will reiterate, as the president said, our profound gratitude to our partners in the airline industry. , as weve worked with us say, flowing americans through particular airports, the screening, we are working with airlines on contact information. If a person is tested as positive for the coronavirus, we are working with airlines to get information about that person and who they sat next to and who else was on the flight. The president and i are very grateful. As we announced yesterday, i am pleased to report as of yesterday morning in addition to the travel ban from china, we suspended all china travel, all travel coming in from iran and foreign nationals who visit either one of those countries are barred from coming into this country for 14 days. Established a travel ofisory for italy, portions italy, and portions of south korea over the weekend, but even as importantly, as of yesterday morning, we implemented a screening process. All direct flights from all airports from south korea and italy are being subject to multiple screens before passengers board to come to the United States of america. The state department worked vigorously to bring that apart about and we are grateful to in making that a reality. Finally with regard to testing, we had a meeting today that gave great progressor in the near future on expanding testing across the country. We have a ways to go yet and i am pleased to report, as we have been able to convey to state governments and around the country, thanks to the good work of the fda and dr. Steve han with me today, all state laboratories, all University Laboratories at state level can conduct coronavirus tests. Assets ory Additional Resources from the federal government, they have the fda approved tests. They can conduct the tests all across the country. The efforts through of hhs, 2500 kids are going out this week. 2500 kits including tests are going out this week, roughly 1. 5 million tests available this week and we will continue to build. Perhaps most significantly thanks to dr. Burks effort and leadership, we brought together at the white house the leaders of all of the largest commercial laboratories in this country, companies that, like quest, that have vast capabilities and logistics and testing capabilities. We are pleased to share they and created a consortium literally have told us as they go through what is called the validation process on testing, that by next week, individual companies will be able to do, as they said to me, thousands of if they areonavirus needed and required, and many multiples more of them in the not distant future. Our objective here is what dr. Burks raised with the tax force, we have hospitals in affected state universities and labs, that can now perform the test on a requested racist. Basis. Our objective ultimately is to have tests made through commercial laboratories and providers that your local med checkur cvs, your is able to have a coronavirus test. That isnt there yet. We are working to make that a reality. Its one more example. It is not just a whole of government approach, it is a whole of america approach. Whether the nursing industry, airline industry, commercial laboratories. I can speak on behalf of President Trump and the task force when i say we are profoundly grateful for the by companiested all across the United States of america. Grateful for the leadership at the state level and the American People should be confident that that spirit of comfort emily Vice President mike pence from the briefing room. But the vicenews, president offering commonsense techniques about how to stop the spread of the virus, talking about the tara travel restrictions from china, italy, iran, south korea and giving an update on testing kits. We will continue to listen in and give you any headlines as we have them. Meantime, how plantbased impossible foods is positioning itself amid rising food safety concerns in the midst of the virus outbreak. We will hear from the cfo, next. This is bloomberg. Emily as the coronavirus continues its global spread, demand for more quality controlled food and shipment safety is rising. The plantbased food start up impossible foods, famous for the impossible burger, is sticking to its plan to enter china at a use time when animals in the food chain is being scrutinized. Is first question is, how what is going on in china and around the world impacting your plans to expand in the very country that was the epicenter of this outbreak . Certainly the headlines reflect that our world is increasingly connected and theres no question since asia comprises nearly 40 of the entire meat industry, our mission at impossible foods remains the same, which is to offer every mediator, whether they be in asia, china, or here in the u. S. , more and more of impossible burger and impossible pork made out of plans. We are excited to announce we are passing on cost savings by reducing cost to wholesalers by an average of 15 , a move consistent with our Global Mission to be available everywhere. Emily china is the Worlds Largest consumer of pork. That makes sense. But lets talk about food safety. This is a question on everybodys minds. What are you doing to ensure the andty of your shipments, should the public be concerned about broader food issues . Impossible foods was founded by a phd, md pediatrician pat brown. From the very beginning eight years ago, our fundamental culture, our dna, is rooted in ensuring we have the highest quality options that hardcore meat eaters can crave. For us, that means being radically transparent about how we make our products, ensuring we pick the right plantbased ingredients to ensure that the public is certainly safe, but beyond that, has a better option than the incumbent industry for their health and the environment. Anticipate any sort of marketing difficulties in china for plantbased meet . Meat . I think the verdict is out that meat eaters, not just here in the u. S. , but as we have seen and singapore, hong kong, and globallyat eaters crave meat that doesnt make them feel as guilty. The impossible burger is that. A crave a bull burger, a slider for less than two dollars at white castle or in the hands of a michelin star chef, and it can transform in the hands of a chinese chef as it has here in the United States. I dont anticipate that changing regardless of the headlines of the day. Paul the headlines of the day come of course mostly circulate around coronavirus at the moment. Has that had impact on your supply chains . We have had no material impact, and frankly, it has allowed us to focus on distributing more of our product. We have seen such Unprecedented Demand that even as we are fully in stock today, you can get a quarter pounder made by impossible at any mom and pop restaurant that wants to serve it through our distributors today. We know demand will increase. We have been undeterred and frankly not distracted by the news of the day and serving our mission. Emily disney resorts have been closed in china and shanghai and hong kong. What about your partnerships with disney world and the cruise line . Any impact . We were really privileged to see disney chose impossible foods. It was years in the making. They have an extremely high bar on quality. For it to be the choice they made for the plantbased products they are happy to serve is something that i think will pay off for the longterm. We have not seen any impact today, but our focus really is on a longterm business that goes beyond what we see day by day. Emily speaking of beyond, beyond meats shares have been on a tear since its ipo. We have to ask every time, any update on your plans to go public . Todayare not announcing and ipo for impossible foods. As i said before, it is our mandate. We want to ensure impossible has every strategic option. We have a Great Mission to fund. We are optimistic even though today we are not announcing an ipo. Lets say the news of the day is changing so quickly here, but what is your outlook on the growth of the plantbased food market over lets say, five years . How does that market looks different then than it does today . Consumers of impossible foods are hardcore meat eaters. We like to think of our business not as defined by those may be attracted to plants, but those attracted to crave a bull meat. Craveable meat. Eaters, it is such a fundamental part of everyday life, that regardless of what is occurring next week, we know the core staple market will be ready for continuous change and innovation. Thats the reason we exist, to serve the meat eater and make a difference on their health and the environment at the same time. Paul you talk a lot about global expansion. When can we expect to see your products in australia . We have not announced a date for australia. I can tell you while we dont provide dates, we have been hard at work for several months, if not several years, for all the major markets including australia. For now, the news of the day is about the global reduction in , a 15 . In price reduction that allows more consumers here to enjoy the impossible burger. Paul david lee of impossible foods. Thank you for joining us today. We want to get you breaking news out of australia. We have the australian finance minister announcing that stimulus is going to be announced soon. We got himself this earlier this would haveting we fiscal stimulus in australia announced before the budget, which is due in may. The budget surplus, which was widely trumpeted last year, would appear to be toast. We are hearing from the australian treasury saying the economy is quite solid and traveling cried well, although there was a need to hold fiscal response. We are expecting news here in australia very soon. Still to come, joe biden bounces back. The former Vice President surprises the naysayers on super tuesday and gains the backing of a former rival with deep pockets. Thats next. This is bloomberg. Paul super tuesday lived up to its name, especially for former biden. Esident joe he racked up wins in 10 of the 14 states and surged ahead of Bernie Sanders and what has become a twoperson race. On the roadntly following Bernie Sanders. Tyler, how is the mood in the Bernie Sanders, camp apart from that win and california, may be the rest of tuesday wasnt so super . Reporter reporter exactly. Sanders conceded that he was disappointed in results last night, admitting that his campaign was not as successful as he hoped and argued they would be turning out young people. He has long said he needs the historic voter turnout to win the nomination and it wasnt the case last night. Its definitely a sense of disappointment among Bernie Sanders and his campaign but also a sense of defiance that he would continue to fight on, framing it as a twoperson race between him and joe biden, as a contest of ideas, and trying to move forward drawing contrasts between him and the former Vice President. Paul lets talk about that contest of ideas. Theres a risk that there is a real battle now for the soul of the Democratic Party between the progressives and the moderates. Reporter exactly. The moderates have coalesced behind joe biden, giving him that boost he needed to win the vast majority. Amy klobuchar and Pete Buttigieg dropping out right before people to before super tuesday, urging their supporters to back him. That moderates have picked joe biden. Obviously, Bernie Sanders is trying to be the standardbearer of the Progressive Movement. , butems destined to do so Elizabeth Warren is still in the race. Bernie sanders said he spoke with her this morning, but she said she is reassessing her campaign and going to make a decision about its future. The timetable on that is unclear. Emily mike bloomberg, the majority owner of bloomberg, the Parent Company of this that the Parent Company of this network, said he was dropping out and backed item with his billions. What does that mean for sanders and President Trump . Reporter obviously a big boost for joe biden getting that financial backing and organizational capability bloomberg has set up in many of these key states. That will be a boost to him in terms of being able to run a robust ground game and operation moving forward. Its not exactly clear what the operation is going to look like. Biotin Campaign Officials telling reporters today that they are unclear what the arrangement will look like. Obviously, there are Campaign Finance laws and requirements they have to follow. But for Bernie Sanders, it is another point for him to put in the larger package about fighting against the political establishment and trying to build a movement outside of the. It means it will be much harder to do that because of the Financial Services ease up against, but Bernie Sanders has never had trouble raising money. He raised 46. 5 million in february. He will be at a disadvantage not having those financial resources, but Bernie Sanders has part of his message that hes running a different type of campaign. Emily what does whether warren stays or goes in the next several days, perhaps through the next debate, how does that chances,rnie sanders given that you cant necessarily assume all of her voters would necessarily go over to him . Something the is Progressive Movement is grappling with as we speak. Of sander supporters were pushing for Elizabeth Warren to get out by tuesday, to give him a better shot. The contest last night, the moderates backbiting. It remains to be seen what warren will do. Put out agn manager statement saying shes reassessing. Its not clear Bernie Sanders will gain all of her supporters. They are a Diverse Group of people and some of them might go to joe biden, some might go to sanders. It depends on the way Elizabeth Warren decides to play this. If she drops out and endorses sanders, she could become a very powerful surrogate for him. If she doesnt do that, it will be a more varied approach in terms of her supporters getting behind sanders. Emily map out the next few days for us leading into the next debate for senator sanders. Senator sanders is getting on a plane tomorrow and flying to phoenix, arizona, where he will hold a big Campaign Event and then hes off to jackson, mississippi. He will hold an event over there. Then hes going on a tour of the midwest ahead of the next contest on march 10. He will be in michigan, illinois, and missouri. One of the messages hes trying to send in the midwest is drawing these contrasts with joe biden. He says joe biden supported dealss trade deals that were disastrous for the midwest and hes trying to send his record to the voters, who will provide delegate rich states like michigan and ohio. That is what Bernie Sanders and his message will be ahead of the next contest, the debate in arizona. Emily tyler page on the road with senator Bernie Sanders, thank you. More headlines out of this press conference with the Vice President mike pence, reiterating that the coronavirus update ondid give an the tests, it is fully covered by insurance. Also talking about the travel restrictions. Theres a travel ban on china, iran, italy, and south korea. The task force is not recommending any additional travel restrictions at this time. Live pictures right there on at the folks speaking to reporters in the White House Briefing room. We are continuing to monitor what they say and bring you updates. Meantime, plenty more still had. The next hour on Bloomberg Markets we get the outlook for oil as major opec members are split on cuts with the senior Vice President of sbc Energy International. Thats coming up. This is bloomberg. [ fastpaced drumming ] [ fastpaced drumming ] can you help keep these iguys protected online . . Easy, connect to the xfi gateway. What about internet speeds that keep up with my gaming . Lets hook you up with the Fastest Internet from xfinity. What about wireless data options for the family . Of course, you can customize and save. Can you save me from this conversation . That we cant do, but come in and see what we can do. Were here to make life simple. Easy. Awesome. Ask. Shop. Discover. At your local xfinity store today. Haidi good morning. Im haidi stroudwatts. Im shery and in new york. Welcome to Bloomberg Markets asia. Haidi our top story. Markets welcome official moves to tackle the coronavirus. Asian stocks are set to follow wall street higher and Central Banks say they will work together. The fed is watching the Economic Impact. Jim bullard tells us the outbreak seems more severe than originally thought. Shery a really super tuesday as biden gets his campaign back on track. That might carry him all the way to the democratic convention. Breaking news out of south korea. We are getting january current account numbers. Narrowing toust 1. 006 billion. Surprising, shockingly small current account surplus. We have seen the surplus narrowing in the month of december already, but for january coming in, just slightly over 1 billion. When it comes to the goods trade surplus coming in at 1. 93 billion for the month of january, this is also surprisingly low compared to the 5 billion goods balance we have for the month of december, which narrowing. Been of course, this coming at a time when we saw exports still falling for a 14th month in the month of january, although they did bounceback for february. Remember, we did have the coronavirus outbreak happening over globally. The government has come out and an extraea seeking budget. Haidi in terms of this budget, that is what we are seeing driving Global Markets higher. Up the 500 ratcheting second rally in just three days. We are starting to make up ground, given we are still 7 off february levels. This is how we are shaping up in a show. Sydni stocks ratcheting up games , up 4 10 of 1 . We continue to have expectations stimulus to abate ,he impact on tourism education, and airport trouble. New zealand, the biggest jump since november 26. Nikkei futures looking pretty positive, following the lead on wall street as u. S. Stocks are urging, almost matching the best on14 months rally on monday expectations and confirmation of the authorization of almost 8 billion in virus prevention spending. Futures for the s p 500 index looking a little more muted. Shery lets get started with the latest on the virus outbreak. The u. S. Reporting to more coronavirus related deaths, including a first in california, bringing the total fatalities to 11. Lets bring in our opinion columnist max neeson. He joins me in the new york studio. Only 120 ors with so infections confirmed at this point. The ratio doesnt seem to make sense at this point. It really doesnt. One of the principal characteristics of the disease is while it can turn out to be really deadly in older populations, a lot of the debts are coming from an Old Folks Home in washington. People, it will be relatively mild. That suggests this is more about the fact that there are cases we have not caught yet because the ramp up interesting has been slow. That is starting to change finally due to policy changes and aggressive efforts by the government but it will be a little bit before the tests are up and running and we get a sense of what the accurate count might be. Haidi the testing is really key. In the meantime, President Trump is said to be really reluctant as ay out fiscal stimulus response, which is interesting because theres generally an understanding with banks that the bank has done its part the fed has done its part, but the rest of the world has to do heavy lifting. Theres only so much a rate cut can do to stimulate the economy when it is a shock on the supply side in addition to demand. Targeted fiscal stimulus can both help soft in the Economic Impact of the virus and also boost the response. We have a situation where many people dont have paid sick leave. If you help provide Financial Aid to those people, not only are you stimulating the economy, you are helping them comply with Public Health recommendations. It is a dual effect and makes a lot of sense. Haidi we will watch and wait the government response. Thank you for joining us. Max neeson in new york. Economic confirms rush concerns are heightening economic concerns are heightening. The latest from the imf stays it is looking at what caused more dire scenarios for Global Economic growth. Reporter thats right the imf say they put aside 50 billion u. S. To support countries affected by the coronavirus. Discussing,en central bankers and finance ministers are trying to gather sources and seeing what they can shery that was Tom Mackenzie in beijing with the latest updates on the coronavirus outbreak in china. Lets get the first word news with ritika guba. Have herdont seem to at the moment, but lets get you first word news. The coronavirus has triggered chinas largest fall in car sales. Deliveries plunged 80 in february as infection fears cap buyers away. The outbreak is a new blow to the Auto Industry that has been trying to arrest a twoyear decline in car sales in the mainland. Market leaders vw and tesla were hit, although demands showed a slight recovery at the end of the month. Are havinginisters emergency talks. The forced meeting saw saudi arabia and russia split over the prospect of new output restrictions. Prices are down more than 20 this year with the coronavirus further weakening global demand. Riyadh wants a cut of 1. 5 Million Barrels a day, while moscow favors current production levels. Extremelihood of recent bushfires in australia being repeated has risen by 30 according to a new study by the world whether attribution group. The latest report says Climate Change is adding to the risks by compounding associated factors like severe drought. This seasons fires raised in does razed an area the size of england, killed dozens and devastated wildlife. Joe biden was the big winner taking 10 of the 14 states in super tuesday for a defining moment in the race to take on President Trump. Bernie sanders won the prize of california in a contest that may go all the way to the Democratic National convention in july. The big loser was michael bloomberg, the Majority Shareholder in our companies parent. He ended his campaign and is endorsing joe budden. Joe biden. Haidi we will get you more of those headlines shortly in terms of whats coming up. Coming up next on Bloomberg Markets asia. We get more on super tuesday. Joe bidens rising president ial prospects, it was a super tuesday for him. That is part of what sent u. S. Stocks soaring higher. Plus, an exclusive interview with st. Louis fed president james bullard. Dont have too High Expectations out of that fed march meeting from him. More to come. This is bloomberg. This coronavirus could be more severe than what we were previously thinking. Have to think of a more severe adverse cigarette scenario. We have to think about the demandside about how the buying habits would change and what would happen for companies. The most immediate impacts now are for the travel business. No one wants to go on cruise ships or vacations. We have seen air traffic come down in the asiapacific region. There has been a concern about the longevity of the outbreak. In all likelihood, this will be temporary. It will be temporary, eventually we will get through this, but how severe will be and how long will it last . Ones onome big bloomberg to be assessing the virus. Richard steinberg. We continue to see massive volatility because we have seen the fix coming down a little today, but after searching. Since the highest level 2015. Even bonds volatility at the highest level since 2013. Volatility of course can go both ways. It can be bad but can also be good, especially when you have a good news day. What are you watching . I can follow it up with animal spirit. We think when the market had a big rip last year, it was animal spirits. A dog at the pound can either lick you or bite you. I think a part of this is the psychology of crowd mentality and the anxiety of the unknown. The coronavirus, the Elections Come all these things. You add on top of that a lot of money and trading from algorithmic traders, it creates a perfect storm. I think it is something we will have to live with for a while until the data comes into show us what the markets really look like and what to expect. Shery right now, the key concern, especially when it comes to the economy, is whether the supply shock morphed into demand shock. If we do see that transformation or we go that way, how do you trade that . Singapore is a good example. In singapore, you had a trite tight drawdown on virus issues. A lot of businesses have slowed down there. I think we need to be watching to see what extent the virus spreads. The human toll is obviously huge, but if you start courting feeding certain sections of cities, it could start to fall into the demandside. The question is whether it is transitory or something bigger. We need to watch Consumer Confidence number and other data around retail sales like that to of the anxietyd and anticipation will affect Consumer Behavior because in the u. S. , the consumer is 70 of gdp. Haidi i think what you are going through is this idea that we will see ready permanent changes to Consumer Behavior. We are already starting to see this idea of a self lockdown. People wont go to restaurants, to the movies, anywhere there risk . Oups, is there a is it going to be a longerterm issue, particularly to the point you make, if you dont buy an iphone this month because its not enough stock, do you put it off and buy it in four months time . I dont think we are talking about a permanent change in demand. I think for now, it is transitory. There are some injured streets Industries Like the cruise industry that people might think twice, but consumers typically have a short memory of news cycles and thats what im hoping. Once we get our arms around this mobilization. I met with a cruise executive over the weekend in miami who says they are getting more cancellations than bookings. Is that permanent . Probably not, but it can elongate. Haidi u. S. Stocks, they had the joe biden bump and the fed bump, government is the not doing the have you lifting, how long can we see equities . It looks like the rest of the world is looking to fiscal spending to cushion the blow. We have not seen enough of the demand slowdown for the government to come in. There was a stimulus package in the u. S. , but i dont see it changed yet and fiscal some of the things that could have happened may would be a payroll tax cut because that would put money directly into the consumers hands. I think its too early to take drastic changes until we see whether or not it spreads into a big issue. The risk is creating an issue without it being there quite yet. Of course, the sector is threatened by the rhetoric on the president ial election, the campaign. Now with the coronavirus, has the narrative changed . I think now that the democrats are trying to figure out what the party should look like, i think some of the heaviness in the Health Care Sector around the perception that Bernie Sanders would have been bad for health care got at least a bump, but i think we have to see how politics will change drug pricing. We havent really seen yet what policy is like yet. They were really distressed, so we got a bump, and it should not normalize, but on a pe basis, the stocks look cheap. Shery what about tech . That is the sector that rallies a lot. So my thesis is if we start to normalize and get a rebound in the market, money will also go back to the strongest names that were there before. The risk is at one point the s p got up to 18 and five tech names. We have to broaden the view of tech and not just in the fancy five. Haidi at what point are you going to be interested outside of the u. S. . We are seeing valuations coming down elsewhere in the world. Even in australia, the price targets trading for the asx is lower than most targets we have seen but it does seem to be the sense of until we know what the certainty is as to the extent of this outbreak, a lot of people are not buying it. At the firm on a static basis, our Asset Allocation has about a 40 allocation to international. I run some of the practical money where ive been underweight international. Specifically International Markets at the beginning of the year way cheaper than the u. S. Market, but the whole demand issue is being caught in asia. I saw an interesting statistic are 1 10 of global tourists chinese, and in the asia pac, trainees are 25 chinese are 25 . We could get mobilization and that should lead us. I think ultimately if we have a weaker dollar, em and international will be a placement where they outperform domestic markets, but we are not there yet. Haidi in the meantime, gold and treasury rally continues . , gold seems like a flight to safety. High netndowments and worth people into a higher risk profile, which is scary, so investors have to focus on what their personal risk or what the endowment risk is and not throw up total Asset Allocation. Treasury isyear, 1 the suckers bet. Haidi thank you for joining us, the colony groups richard steinberg. Back, up, biden bouncing surprising naysayers on super, gaining the backer of one former rival with deep pockets. Thats next. This is bloomberg. For those who have been knocked down, counted out, left behind, this is your campaign. [applause] press few days ago, the and the pundits had declared the campaign dead. And then came South Carolina and they had something to say about it. Shery that was former Vice President joe biden speaking after a big super tuesday come back. He racked up wins in 10 of the 14 states, surging ahead of senator vitter and sanders senator Bernie Sanders and what has become a twoman race. To, voters did biden appeal and is it a concern to him that perhaps senator sanders took california . Reporter biden appeal to the heart and soul of the Democratic Party, which is africanamerican voters, women, and especially People Living in the suburbs around cities. Long been the strength of the Democratic Party and Bernie Sanders was challenged in his ability to expand beyond his very liberal base and reach into core constituencies. Shery it has been a whirlwind few days. What are we expecting next . Reporter certainly the world looks completely different now than it did 72 hours ago. It started with Pete Buttigieg and Amy Klobuchar pulling out of the race and throwing their support behind joe biden. He stays rising on super tuesday, that no one would have predicted. His strength in the various places backed by former rivals amazed even seasoned observers of the process. Now you have to admit imagine joe biden has the advantage. We are moving onto primaries on march 10 and march 17 and areas that seem to be strengths for him including michigan, ohio, and florida. Coming later in april, weve got new york and delaware. All of these are states that for different reasons, biden would expect to have a lot of strength. Haidi so the Sanders Campaign is looking more like a coalition revolution. Is the Biden Campaign looking complete . What sort of alliances does he need to build in the weeks to come . Reporter he needs to stay trail. E on the campaign those who assume a biden candidacy or a biden frontrunner position is riskfree are probably making a mistake. Hes made numerous gaffes on the campaign trail. Hes been challenged in the past as a campaigner. He will still have to debate probably sanders and also President Trump. And all those forums, joe biden can stumble. Certainly, all the powerful constituencies of the Democratic Party have come together behind him as an alternative to sanders and sanders will have to look for a way to expand his base beyond young people and latino voters who are his strength. Haidi when he goes headtohead with President Trump, how does it look for his prospects . The whole thing leading up to super tuesday has been the issue of electability versus the president. Reporter President Trump has had a variety of derisive remarks for senator biden. He called him sleepy joe, im sure he will come up with other nicknames in the coming weeks and months, if it in fact turns out former Vice President joe nominee. The trump has a way of tweaking his opposition and building in the expectation of weakness, needling on small points. He will probably continue to do all of that in preparation for a headtohead confrontation down the line. Shery michael bloomberg, the founder majority owner of bloomberg lp, also sought the nomination. When he first decided not to run unless youre, it was because he did not believe joe biden could actually win. What did he have to say . Reporter he threw his support behind former Vice President biden and says former Vice President biden is the best candidate to try to defeat trump now. I think mayor bloomberg perhaps was surprised by the strength senator biden was able to muster in a short period of time. See ak he sees as we all very potent momentum for former Vice President biden and he did not want to get in the way of , and whether he thinks he can be trump, i dont know, but he has thrown his weight behind him. Haidi thank you. Lets get a check of the business flash headlines. The highest court in france has ruled uber drivers cant be classified as selfemployed. They say they cant gold clientele, dont set rates or decide on terms or conditions and therefore they are considered more like employees. Judges also called this current status of selfemployed fictitious. The ruling opens a way to give drivers more rights, but uber change. Hing will shery shery hsbc is reshaping its Global Banking and markets division as part of the strategical overhaul announced last month. The head of income has been abolished following the recent departure of the person who held the job. The fixed income currencies and commodities business generated more than 1 billion in revenue in the fourth quarter, almost one third of the gbm divisions and higher income. Hotels cutting the global 5000. Rce by about most losses will be in china where a business has crumbled in the wake of the coronavirus. The indian start, one of the largest and softbanks portfolio, is also cutting jobs japan. U. S. And the company was founded in 2013 and was once valued at 10 billion. Investors have soured on the businesses after we work melted down. Lets look at how markets are trading. 4 plus rally on wall street overnight. The snp up now more than 6 for the week. Sydney stocks ending the gains. We are also hearing we are expecting fiscal stimulus package to be announced in the coming days out of australia. New zealand seeing about 2. 5 up. This is bloomberg. This is Bloomberg Markets asia. Im ritika gupta with the first word headlines. Increasing fears that the coronavirus will hit global growth. Dip, somewhata unusual. The World Bank Says its working on a Fast Response. Brussels tells us the bank of japan may downgrade its assessment of the economy. Bloomberg economics says the worst case canaria could be a cost of 2. 7 trillion. The feds emergency rate cut following the g7 pledge to coordinate a response to the coronavirus has triggered a flurry a of activity in the asiapacific. Central banks have already cut rates this year while government rollouts stimulus measures. South korea is promising to support markets. Indonesia, thailand, and the philippines are promising more help. Meant a complete ban on pilgrimage to jerusalems holiest sites. Saudi arabia has banned all visits to mecca. It may also affect the month of ramadan later this year. Iran reacted to the widening crisis by canceling fridays planned in major cities across the country. The decision affects sunni and shia muslims. The virus has hit the worlds most famous spy. The new bond movie was scheduled for release next month but is being pushed back to november. Hollywood is feeling the effects of the crisis with production halted on the latest installment of mission in palos will impossible. 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 make a group do. This is bloomberg. Lets get a quick check of our markets across asia. We are seeing australia, new zealand getting in the ground. Kiwi stocks raising the most since 2011. The asx 200, every sector in the green. Tech and health care leading the gains. We will getting or a trade balance out of australia. Watch out for that. Nikkei futures gaining ground. 3 10 of 1 . This comes on the back of that rebound rally that we saw in the United States after Congress Approved an emergency spending bill to fight the coronavirus. U. S. Futures at the moment, down. As Central Banks grapple with the Economic Impact of the coronavirus, President Trump is calling for more rate cuts. Policiesresident says in the right place. Our Global Economics and policy editor had an exclusive interview. Whats interesting is that jim bullard said that policy is in the right place now. Its appropriate for what the fed feet season front of it. Last week on thursday, they were speaking to reporters and he said he would not be looking for the fed to move on rates and less and until the coronavirus is declared a global pandemic. I think what was interesting about this interview is how much he and other fed officials are watching the virus. They are watching the headlines. They are watching how the virus is getting more serious in the United States. Why i asked him, what the urgency . It was a couple hours after the g7 finance ministers met and said, we are going to do something thats appropriate. Whats the urgency . Its all tried tied to the coronavirus. Lets listen to what he said starting with jay powells press conference. I think jay powell did a great job in his press conference in elucidating the details around this. Rising forusly are the coronavirus. The could be more severe than what we were previously thinking. I think this sentiment for me was that we will probably have to move at the march meeting anyway. Might as well move that up and do it sooner. I think that was the basic thinking here. I also think that we got the policy rate to the right place for now. Given the information that we have now. We took out some insurance against the possibility that this will cause a growth slowdown in the u. S. Thats interesting. President trump isnt the only person calling for more rate cuts. Wall street economists are saying the fed will move again 50 basis points at the march meeting. That doesnt sound like something you are on board with. I dont think we should prejudge that meeting at this point. We just had a meeting. We moved the policy rate where we thought it should be given the information we have today. Its a very fluid situation. Were keeping track of things. Around Monetary Policy for a long time. Its unlikely we will have that much different information when we get to the march meeting. Depending on how you view how rapidly this is going to move. We can keep our options open there. Since we pulled that decision forward, im not sure you should put a lot of weight on the march meeting right now. Anyway, we could meet intermediate anyway. I just wouldnt want to put a tremendous amount of focus on this march meeting. There wont be a lot of new information that we dont have today. Except how the virus is progression daytoday, that kind of information. We will have a little bit more on that. Thats something the Federal Reserve is tracking very closely. Isnt everybody . Globally. , this is pretty much unanimously supported. Was this a close call as participants got on the phone and talk about it . You are not a voter. Everybody has a say in this. I cant talk about the meeting itself. The vote was unanimous. Clear thats pretty the baseline of the u. S. Economy is still quite good. The best labor markets weve had in 50 years. All the rest that is associated with that. Everything is looking good. The Downside Risks have increased. We want to take out on board. Get some insurance to make sure we keep the expansion going. This virus will be temporary. We will eventually get through this. How severe is a going to be and how long is it going to last . Clearly the coronavirus is the feds focus right now. They dont know. No one knows how big the impact on u. S. Economy will be. Thats what is driving them right now. Its also interesting, Important News out of australia today. Stephen kennedy, the treasury secretary there, saying that the coronavirus is going to take 0. 5 off the First Quarter growth in australia. It will flow into the Second Quarter of the year. Hes echoing what the reserve bank of australia Deputy Governor said the night before. They see the same figure the rba sees. Interesting that Scott Morrison is talking about stimulus coming. This is a significant. Scott morrison government has pushed back against any suggestion that maybe they could put more stimulus into the economy even before the coronavirus was an issue. Maybe this is when Central Banks will see one of their wishes come true. Dont put everything on us when it comes to stimulating the economy. Governments have to take steps now. We are seeing more cases were governments that have been reluctant into this getting ready to step up. Our very own Kathleen Hays in chicago. Thank you for joining us. Coming up, the outlook for oil. Major opec plus members are split when it comes to cuts. Saudi arabia versus russia. We will be joined by our guest for her take, next. This is bloomberg. Lets take a look at the oil patch. Crude giving up those gains of 2. 5 as we seem to be at a familiar place when it comes to negotiating within opec going into that ministerial meeting in vienna. Wti is trading to the upside. Hovering over 47 a barrel there. 1 higher than brent crude. Early finding itself stuck in this place where russia and saudi arabia are split between whether deeper supply cuts are the answer to cushion this destruction of demand, particularly from china. Not looking very positive for 2020 with expectations that there will be no growth and demand globally this year. With that split between saudi arabia and russia on the need s, there supply cut kingdom is pushing for a reduction as big as 1. 5 Million Barrels a day. Moscow is favoring maintaining the current outlook levels through to the end of the Second Quarter. Lets bring in our guest. Message to you think opec and friends should send from todays ministerial meeting . There is a difference when it comes to the opec member and russia which is another ortant leg of this his story. The current prices of crude oil are satisfying for russias economy. Said onas president different occasions, the current prices for the economy, russia is good. Russias budget is set for crude oil at 42. 40. Russia has plenty of room for the prices. Prices to go down for its economy. Are they likely to agree to an extension of a cut . We anticipate yes, most likely. They are going to agree with an extension of the cut. Beenooperation that had created between the opec members and especially saudi arabia is very important for russia. They are going to probably agree to extend for the cut also. If they do not agree for extension of these cuts, then prices could collapse closer to the 40 which is a redline for russia. They might agree to smaller amounts of cuts for short periods of time. What Russian Companies and experts see the market at the current level and the impact of coronavirus on the demand is temporary as it is going to start tapering off as the weather gets better and in the coming months. How exposed has russia been to the plunging demand in japan for oil . Looking into russias exports to china, the overall exports to china have been reduced. On the oil exports to china, the russian expert has not put changed. Traders feel the market is good for them for the coming months. With japan, it has been different. If you compare russia to saudi lost largeri arabia market in china than russia did. Analysts forecasting for the first time, only a few times in the past few decades have we seen Oil Consumption not growing at all. What are your expectations about oil demand . Goldman sachs is fortunate forecasting a contraction of the men this year. Most of the institutions and organizations that are working with supply and demand all reduced their expectation for the demand growth. On the other side, we are expecting supply growth. ,ooking at the overall market the Coronavirus Impact on demand was significant. Is going to be significant for this year. On the other side, on the supply side, prices are very low. Currently, we have 6 Million Barrels of oil out of the market , a combination of two political factor and sanctions. Iran, venezuela, the political issues, the opec cuts. All totally have cut back about 6 of global oil supply. Yet the market is very worried about the demand growth. What does this mean for u. S. Shale, the outlook for this year . Shale isve seen, u. S. Sensitive to prices. The sensitivity is not as high as years ago, that they would immediately react. We have larger players now in the market. What we expect is that the shale would still have growth. On the other side, there are lots of impact on the show producers and prospect of lower growth in the production. Overall, its not going to be a huge hit on shall production. Seb Energy International founder. We will have more analysis on the Energy Sector when we are joined by the founder and chairman of f de. Revealed anhas extra budget among the virus follow. This is bloomberg. Get you a quick check of the latest business flash headlines. Coronavirus has caused disruption at major credit card companies. Visa is imposing cost cuts after warning of a slowdown in overseas spending. American express also sees a slowdown with travel spending and months of asia falling. Corporations around the world are restricting nonessential trips because of the outbreak. Airbus is considering cutting back induction production after its biggest customer says it may be forced to delay deliveries. It will postpone taping delivery of new models. Airbus is reviewing current output levels and may make a decision later this month. Titles by tencent have surged in china. Local quarantines are keeping people at home. Two of their most popular games have seen usage sore 109. Have seen an increase of 20 . A surge of more than 130 since december. The open and south korea and japan is a few moments away. Dave, we are talking about gamers. If you are staying at home in china, you why either playing games or playing games on the stock market. What are you watching today . Or doing something else. Ive been stuck at home. If you have a look at the next room, my small storage room, you will see a lot of yoga equipment i have not used. At least you are staying healthy. I was wondering what that was. Lets talk about the markets. Yes. Lets talk about the markets. 250 points on the nikkei. Will follow little. We go to wall street higher as well. Bouncebackly gave from the crest we had yesterday . One of the things that Abigail Doolittle was pointing out as well, something that supports backisk as it tries coming is yield losses pushing backfire as well. It does both well for today. This is a daytoday story of course. In terms of volume, volume is back. Watch the brokerage today on the back of this story as well. If and when they are able to come up with a number that the saudis and russians can agree with. Weve seen the Chinese Markets rallying on the back of expectations that there will be more government measures, that the pboc will act. When it comes to market operations, they have not done anything for the past 11 days. Which is, in the context of the virus, is a long time. On a normal basis, its a very short timeframe. That doesnt mean they are not about to do anything. Look at a lot of the economists. Including Bloomberg Economics. Get morerhaps going to rate cuts out of china. I was just looking at the note out of ing. A couple things coming up. The ltr is 15 days from now. They are expecting a cut in reserve requirements as well, including your mls as well. It hasnt happened in the last two weeks or so. We are watching that closely. Thank you very much for that with the latest on the markets. Lets turn back to south korea. The be ok held an emergency meeting wednesday and said it will stabilize markets. The korean government is seeking an extra budget of almost 10 million to stem the fallout from the coronavirus outbreak. Daniel maas joins us now. Exactlyalking about 9. 8 billion. That is surprising to me. Wasnt that exactly what they spent during the mars outbreak in 2015 . At that time, they had rate cuts. Is what they are doing right now enough . Is not a substitute for Interest Rate cuts. I and others were critical of the be oks decision to hold last week. Having said all that, it is welcome. Its important to see this as a continuum. The korean government under president moon has discovered the joys of fiscal stimulus in the past year. , beforeourth quarter anyone had ever heard of the wuhan coronavirus, Government Spending made a difference between growth and contraction. This is an acceleration, not a new thing. So we have seen the latest data from south korea, starting to point up. That for theased size of the korean economy is that the export numbers for february actually recovered. Bok,ere clinical of the did it make sense to wait out for what the stimulus package would bring rather than acting prematurely . It doesnt make much of a difference if you are waiting a week or a couple weeks. Ideally, Everyone Wants fiscal and monetary levers to be moving in the same direction. But we cant forget the psychology of the moment. As the central bank, one never wants to risk being seen as behind the curve. Cutter aas a reluctant couple times last year. We have seen that theyve had an emergency meeting. They can do whatever they want. There were a couple of defense last week. Thats generally a sign that a cut is coming. Lets praise this fiscal stimulus for what it is. Theres no reason for the government not to have done it. Theyve already been doing it. They stepped on the gas more. The korean government can borrow for 10 years at little more than 1 . Koreas overall debt levels rather to other oecd countries are pretty cool. There is space here. Keep going, president moon. If the fed is starting at the race to zero, you are seeing Central Banks around the region not wanting to be caught behind the curve. Saying that korea has still space to move. Does everyone have that benefit, particularly as you see the number of governments looking at being in the red . For a long time, the International Organizations that many of these countries pride themselves as being members of, have all been talking about this mix of fiscal and monetary. Monetary cant do anything. It cant do everything. The virus has offered the prospect of a fiscal boost. It would be churlish not to a knowledge that and take the chance to do it. Thank you so much for joining us. Look at the state of trading action in the asian session. We have buoyancy again and equity markets. Risk on as we follow gains on wall street overnight. New zealand seeing have to gains of 2. 5 , jumping the most since november 2016 in the early part of the session. Expectationswith that a fiscal stimulus package will come through from the government here as well. The asx of the most since february 2019. Chicago futures looking moderately positive going into the start of trading in tokyo. Coming up in the next hour, more on how Central Banks are reacting to the coronavirus head of with oxfords india and Southeast Asia economics. The market open is next. 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. Good morning. As major markets our top stories this hour, markets welcoming official moves to tackle the coronavirus. Asian stocks will follow wall street higher. Central banks say they will work together. Imf is warning of a dipping global were growth this year. The fund is providing billions an emergency cash. The fed watching the Economic Impact. Jim bullard tells bloomberg the out brexit seems more severe than originally thought. Japan and south korea coming online. Lets get straight to the market action. Further hope of central bank and fiscal stimulus continues to propel the market higher. The bank of canada, the latest to act overnight. Comes online, stocks headed higher. Mostryen, yen among the worstperforming g10 currencies this morning. 11year jgbs now yielding negative basis points. South korea coming online. The kospi trading on helps of the be ok doing something a bit more, making a move. They held that emergency meeting yesterday. They continue to monitor. The kospi is heading higher for a fourth day today. We see australian stocks really jumping today. This after the australian finance minister did say that an announcement of further stimulus will likely be coming soon. Kiwi stocks now within 3 of those record highs. We see s p 500 futures trading a little bit. This came after the second gain of more than 4 in a matter of three days. Signed aand the u. S. Spending deal dedicated to the coronavirus. It has been a crazy couple weeks. Particularly across Global Financial markets. Not only have we seen hectic moves, weve seen it coming on massive Trading Volume. Right here, Trading Volume across major u. S. Exchanges. The rolling fiveday average has spiked. Its the highest since 2011. Across these exchanges over the past eight days, avery single one of them, weve seen more than 10 billion shares changed hands. Since the longest streak 2009. Thank you. The number of coronavirus cases around the world has topped 93,000 with cases rising rapidly in the u. S. And europe. Lets cross over to our china correspondent in beijing. Spread, the most concerning, particularly with the cases in the u. S. Thats right. Its interesting to see that the testing strategy for this virus is being adapted and changed by different countries. Very different approaches being taken. It will be interesting to see how this playhouse. Will ease up on the restrictions for the ability for hospitals and experts to test for the coronavirus. 100 or so confirmed cases in the United States. 11 confirmed deaths. Thehis part of the world, attention remains on south korea. 5300 or so confirmed cases. South korea is really ramping up the testing. They tested 130,000 visuals there. Theyve managed to keep it confined to one city wall not imposing very strict travel restrictions. Rate of infection continues to moderate. We are waiting for the latest numbers. There are reports suggesting that china has not been adding people who are a symptomatically at people who have tested positive but dont show symptoms. Calling into question the quality of the data out of china. Europe, italy is in concern. More than 3000 confirmed cases. More cases in france, germany, and in the nikkei. Iran remains in the spotlight as well. Almost 3000 confirmed cases in that country, concerned of the ability of the Health Care ReitHealth Care System to manage the outbreak. And turns of the central bank stage, the bank of england is now expecting that they may push through an emergency cut as well. You are hearing about the Thailand Finance Ministry drying up plans for 3. 2 billion worth of fiscal stimulus. The filipinos are looking at it as well. South korea came out with their additional 9. 8 billion budget. That 7. 8 billion of additional spending being drawn up by the u. S. Gcc, heard from the weighing in on the impact of the virus. Lets take a listen. , all,000 people in china of our major businesses have significant manufacturing footprints there. With the exception of a handful of facilities that we havent lujan, we are open for business. That doesnt mean we are at full capacity at this point. As people are coming back to are ramping our facilities are at 80 , depending on the day. The next focus is how this is going to play out for corporate earnings. Thats right. We did hear from the Retailer Association saying they are seeing the supply chain getting back into gear and that those issue starting to be removed now. The imf sees 60 of the factories in china have restarted. In terms of the corporate impacts, we are hearing very much from the airlines. The travel industry is the tube of the spear for a pandemic. It has not been called a pandemic at. You are seeing airlines Like United Airlines cutting flights domestically and internationally. In europe, ryanair and easyjet following suit as well, trimming the number of flights. The Business Association predicts that you could look at a head of 43 billion every single month for Business Travel part of the economy. Flights. Anies banning thats all playing into it. The travel industry is taking a hit. Reaction,central bank the bank of canada easing for the first time in more than four years. What a turnaround for the governor. Not just for them. For everyone. The bank of england is probably going to be next. If you look at pricing in futures. Weve had the fed up cycle. We forgot the rba. Coming up next, the bank of japan, the ecb, the bank of england, and april, the rba again. Pretty much across all those banks i mentioned, markets are expecting a rate cut. Larger in new zealand, the fed is going to follow up again based on fed policy. What has not been talked about as much and given all the spirit fiscal stimulus, we know will be severe this quarter. What a lot of the policymakers are trying to do is avoid and prevent their economies from contracting. When the health scare goes away, economies can go back in track more easily than otherwise. When it comes to the stock market, volume has been picking up. How significant is this . For the last time in the on alumes there fiveday basis, volumes are pretty much of the highest level since monday of 2011. Thats when the west loss u. S. Lost the aaa rating. In the 66 trading days that followed black monday, you had a significant portion where you had to percent moves in either direction and u. S. Stocks. In other words, the surgeon volumes back then indicates something to come here as well. It might indicate that volatility and not a straightforward rally will be ahead of us. Thank you to you both. Lets get the first word news with ritika gupta. Also meant ahas complete ban on pilgrimages to islams holiest sites. Saudi arabia has banned all visits to mecca, expanding on last weeks decision to ban foreigners. It may also affect the months of from a. Later this year. Iran also reacted to the widening crisis by canceling friday prayers in major cities across the country. The decision affects both sunni and shia muslims. Opec plus ministers are in vienna for emergency talks on the oil output and the wider market price. The meeting saw saudi arabia and russia split over the prospect of new output restrictions. Prices are down more than 20 this year with the coronavirus further weakening global demand. God wants cuts of 1. 4 Million Barrels a day while moscow favors current production levels. Joe biden was the big winner on super tuesday, taking 10 of the 14 states. It was a defining moment in the race to take on President Trump. Bernie sanders won the primary in california in a contest that may go all the way to the Democratic National convention in july. The big loser was michael bloomberg, the Majority Shareholder in our companys parent. He ended his campaign and is endorsing john biden. The likelihood of recent extreme bushfires in australia being repeated has risen by 30 , according to a new study by the world whether attribution group. His latest report says Climate Change is adding to the risk by compounding associated factors such a severe drought. The fire killed dozens of people and destroyed thousands of homes. 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. Im recouped up. This is bloomberg. Thank you. The st. Louis fed president says markets are wrong to assume another rate cut in two weeks. We get more with our interview with jim bullard. The imf sees a more dire economic scenario amid the virus outbreak. Highlights from our interview. This is bloomberg. This is Bloomberg Markets asia. Central banks grapple with the economic fallout of the coronavirus. President trump is calling for more rate cuts. The st. Louis fred president says that policy is the right place. Hes book with our Global Economics and policy editor in this exclusive interview. I think that jay powell did a great job in his press conference in elucidating the details around this. Risk, obviously rising. This coronavirus could be more severe than what we were previously thinking. Wasink the sentiment for me that we were probably going to have to move at the march meeting anyway. Might as well do that sooner. I think that was the basic thinking here. I think we got the policy rate to the right place for now. Given the information that we have now. Out some insurance against the policy that this will cause that possibility that this will cause a growth slowdown in the u. S. You say its at the right level for now. President trumps and person calling for more rate cuts. Economistsll street are saying that the fed will move again, 50 basis points at the march meeting. That doesnt sound like something you are on board with. I dont think you should prejudge that meeting at this point. We just had a meeting. We moved the policy rate where we thought it should be given information we have today. Obviously, its a very fluid information. Were keeping track of things. You hung around voluntary policy for a long time. Its unlikely we will have different information when we get to the march meeting. Depending on how you view how rapidly this is going to move. We can keep our options open there. Since we pulled that decision forward, im not sure you should put a lot of weight on the march meeting right now. Anyway, we could meet inter meeting anyway. I just wouldnt want to put tremendous amount of focus on this march meeting. There wont be a lot of new information there that we dont have today except how the virus is progression daytoday, that kind of information, we will have more on that. That is something the Federal Reserve is tracking closely. Isnt everybody . Globally. Fomc, this is pretty much unanimously supported. Was this a close call as participants got on the phone and talked about it and voice their opinions . Everybody has a say in this. I cant talk about the meeting itself. The vote was unanimous. Clear thats pretty the baseline of the u. S. Economy is still quite good. Best labor markets weve had in 50 years. Associatedt that is with that great consumption, everything is looking good. The Downside Risks have increased here. We want to take on a board and get some insurance to make sure we keep the expansion growing as we deal with this temporary virus. It will be temporary. We will eventually get through this. How severe is it going to be, how long is it going to last . James bullard. The feds emergency rate cut prompted policymakers across asia to double down on efforts to stem an economic crisis from the coronavirus. Lets bring in Oxford Economics head of india and Southeast Asia. Always great having you with us. This week, bank negara, the rba cutting rates. Who is going to follow in asia . Everybody is the short answer, probably. Later this month, we have this be, we have highland, and indonesia. All of them, lower rates by 25 basis points in the coming meetings. How problematic is it that we saw the aussie dollar gain ground just because the fed also cut rates . How does that pressure emergingmarket economies when you have their currency rallying against the u. S. Dollar . Its a shortterm bounce, i would think. We have seen are currencies weakening in this environment because the coronavirus started from china. That was considered negative for asia as a whole. Think witheneral, i the kind of selloff we have been seeing globally, keeping aside , it happened last night doesnt bode that positive in general for asian currencies. The view in the shortterm is for Dollar Strength being led by ofse concerns irrespective where this is headed. Asian Central Banks have already cut a lot. From here, they might cut less than the fed, from what the fed is planning to cut. Or at least will be expect them to cut. Who do we see as being in the best shape to be able to deal with the economic headwind of the coronavirus, whatever that may be . Who has the most space in terms of Monetary Policy . A lot of these banks have preemptively cut. Yes. Thats right. Singapore is quiet in terms of containing the virus. It has an extremely good job in terms of testing and showing its preparedness. Korea has been ramping up its efforts quite well. Asia seemconomies in to have learned some valuable as far as theyis have a test in place. They are able to quickly spread their net wide and test many people. Thats very important to contain the virus. Perspective, its not Monetary Policy stimulus we should be looking at. Fiscal is very important. In singapore and other parts of Southeast Asia, targeted measures that are either allowed or and pipeline to be announced soon. A second one in thailand, when worn indonesia. That should help support domestic demand to some degree. Its not going to prevent a downturn in q1. Its going to help buffer the downturn. In terms of the effect in inflation, how does that complicate the picture for Central Banks in asia . To some extent, you have a dislocation of the supply chain thats going to weigh on the supply chain of things. For things like energy will be weighing on Inflation Expectations as well. Think in india, inflation has shot above the Central Banks target rate. That is copper kidding the situation there. In other parts of asia, you do have an uptick in inflation. They are not really outside the boundary whatever the central bank has been targeting. As oil prices have come off sharply, we are seeing negative impact on demand as well. Banksk most Asian Central are not really constrained in terms of Monetary Policy by inflation at this point in time. Lets talk more about india. Yes, we have seen headline inflation above 7 . At the same time, its facing subpar recovery this year. What more can authorities do . It also doesnt have a lot of fiscal states. Thats true. To that extent, india is in a difficult position. Expect another 50 basis point rate cut. It has been penciled in by the middle of the year. Im keeping a close eye on how inflation of all from here. It is being driven by domestic ld keep the downturnncreases less quick than what we would have been expecting so far. If the external factors in terms of oil prices and also a slowdown in demand overall outlay that, then there is a possibility that the r. B. I. Chooses to move earlier than june, given whats happening in the rest of the region and globally. We recently spoke to former governor ephedrine roger and. He was worried about some industries that were deeply in trouble, like Real Estate Construction and infrastructure. Should there be a massive review of the asset quality in these nonbank finance companies around india . I think that would be the right approach to take. Especially now that they are written the pure view of r. B. I. They are not a regulator for these companies. While the governor has repeatedly stressed that r. B. I. Is monitoring it much more what is worrying everybody is that the rest of the people dont know that. Informationve more from the central bank rather than just an insurance that they are monitoring the balance , this seems like a crisis of confidence. It could continue this year as well. Oxford economics head of india and Southeast Asia economics joining us there from singapore. You can get around up of the stories you need to know to get your day going in todays edition of daybreak. Subscribers, go to your terminal. It is right there on the mobile app. You can customize the settings to get the news and industries that affect you. This is bloomberg. We are getting the latest coronavirus data numbers out of china today. Coronavirus cases rising to 80,409 as of march 4. For theional 134 cases hubei province. 31 coronavirus deaths in that province. For the whole of china, 139 additional coronavirus cases. It is a slight tick up from previous days numbers. Still, this broad trend of a slowdown in new cases. 31 toath toll rising by just over 3000. China says 52,000 fire his patients have been discouraged discharged. Lets get a quick check of the latest business flash headlines. Airbus is considering cutting back production of the 83 30 neo said its biggest customer it may be forced to delay deliveries. That accounts for about one quarter of outstanding orders. It will postpone taking delivery of new models. Airbus is reviewing current out the levels and may make a decision later this month. Plenty more to come. This is bloomberg. Slightly more than 4. 8 billion. However, january exports falling the numbersting on to come through, but of course, january we have not seen the full extent of the destruction coming from the coronavirus. To see atexpected least a half a point shave off the firstquarter estimates and we are hearing expectations from the government in terms of adding fiscal stimulus. Lets get to sarah for look at the markets. Data fromnomic january is relatively stale and heading forward, we see asiapacific markets headed higher for a fourth straight day, that is the longest streak in roughly six weeks. Australian stocks having their , withay of the year australias finance ministers saying there is likely an announcement to come soon and sure, the aussie dollar is lower in that the same time, the one has made up all of its postvirus losses, this after the fed issued the emergency basis points. The recordg off of lows, but still an extremely the 50 pointel in basis level, we have seen a massive steepening in the looks like we are having some technical difficulties, so with that, i will send it back to you, but we have seen some major moves. Markets lets say at the markets, joining us now on the yield curve flattening, without. After a season what message is that sending out . You can look at it with two ways, shauna to the commentary because when you look at that, i think it is a chart that was not for the absolute level, it is the page that which we come a couple weeks back to where we are right one bodes well for the economy Going Forward and the other part that is obviously one of the biggest drivers is expectations and they are expected to deliver it again. There is this massive collapse , that yield curve reflects Monetary Policy and , they dont expect praise your yields taking the other side of the argument and fall into negative terrain and remain there. Take ack thinks it would while to get there and we cannot remain there unless the fed actually takes rates below zero, samiti that is the optimistic side of things right now. Not optimistic when it comes to investors in china. 80 that was according to one of the industry associations, and were luminaries numbers they are coming out with the final numbers next week. Hard to see how that changes substantially if that changes at all stop in terms of market backion, a couple of weeks where the price was driven up substantially because it helps curve omission and with the collapse in china, quite a big drop of palladium as well. Looking at some of the data and try to extrapolate, some things like car sales, those are delayed purchases. In other words, you can buy the car. When you look at services in china, it is not that you will double up. This is food for thought as we move into the trading. They are providing it did billion dollars aid package to help combat the coronavirus. Around 10 billion will be for the poorer countries interestfree. What we are seeing is moved to aly we have more adverse scenario with the coronavirus spreading in 75 countries and so the impact of the virus already being felt in thatconomy, we do expect growth this year under any scenario would be low the level of last year, but as you said, there is a great deal of uncertainty about the outbreak and therefore we find it somewhat difficult to predict an impact oruld be it may spread a little further in 2020. Beside the News Conference as my, you had a Conference Call with finance minister mark carney for the bank of england. What is the tone of the call if you could describe it . Tovery serious commitment in a quality related manner. We heard from secretary mnuchin a strong emphasis on action and that resonated across from everyone. Andral Bank Governors finance ministers has shifted to what can beat them and we prioritize collectively with a great deal of consistently, first Funding Health systems people. Life and [inaudible] third, liquidity that we dont crunch and a credit also confidence that the financial system, having been built up is actually strong. China, is that also in the peoples bank of china give us some good news of production expectations in the next week go further with full recovery. You will have another big guest on bloomberg tomorrow. Ministers are in for an oil output. Prices are down more than 20 this year with the coronavirus further weakening global demand. Moscow favors current production levels. Made aus has also complete ban on images and saudi arabia has banned, expanding on [inaudible] they also reacted to the widening crisis and the decision affects both sunni and shia muslims. The new bond movie scheduled for release next month, but could be pushed back until november. Production halted on the latest bonde latest bonfield is called no time to die all no time to die. Coming up next, the outlook there are trade tensions in the spread of coronavirus. This is numbered. This is bloomberg. This is Bloomberg Markets asia. While hong kongs general [inaudible]n richard happy with us. Just tell us broadly the impact youve seen, if you have seen any impact on your business following the platform. Thank you for having me. As you mentioned, we are an infinite search platform and we work with agents across the people to we look for rent search and we get a lot of listings and one of the things you watch closely is what is happening to the asking prices on the market and since last year we have thats seen a 6 to 7 drop and we are looking ahead and Market Sentiment survey another 4 to 5 drop in the coming months. Is not the outlook because weve had six or seven ths of the ongoing process if you are talking about rental versus sales, on the we always see a delayed effect on the market itself because a lot of that is being driven by corporate sue are planning their hire hiring strategies, so in a lot of ways, i think the real impact of the protests is only being felt now in the new calendar year and so the actual impact of the coronavirus probably a. Ittle bit of time during the Chinese New Year when there was a lot of uncertainty in the market, nobody really andrstood the seriousness people tend to assume the worst Case Scenario. There were some volatility and we did see big drops, but things seem to have stabilized a little since then and this week in hong kong, the government workers have all have all returned to work and so far, so good and i think slowly but surely people are getting more comfortable with living with the coronavirus. Us, in the medium to longterm, we think assuming there isnt a deterioration, the market should stay in the longer for thek to the market second half of the year. Price given the farce and the protest, what have you seen in terms of Consumer Trends and how is that impacting your platform . Winner isk the big online. I think a lot of people in these types of situations, they want to stay home, want to be able to search for whatever they need from the comfort of their own home and so there has been a big jump in online traffic and i think for us as a business, we are working with agents who are trying to generate sales in asia has traditionally been market where people rely on offline channels with a have jobs and billboards and whatnot and expect people to walk past and things are bit more normal. A lot of agents are moving to an online only strategy because they understand walking past the shop anymore stop i think online has been the really big winner in other internet businesses have benefited from that as well. For those people watching from hong kong, what would you recommend in terms of finding good bargains in the rental market theyre looking to move russian mark at think the situation as it is right now, a five percent to 10 reduction in rent is certainly achievable. It is a really it is a valid market and so they tried to average and the cost of moving so to achieve that discount, you need to be willing to move and obviously there will be cases where people will be willing to take more because there will always be people are more concerned than on others than others. Are you seeing a gap between Market Conditions and the what the sentiment that landlords are Still Holding onto in hong kong . It has been such a hard marker for so long and it deals very much a lot of landlords are very reluctant to provide any rental because they are used to the market being for their benefit. Hong kong is very different than two a lot of cities because you have on the tail side sale side cash buyers and also a lot of extremely wealthy diesel its in the wealthy people. Pastwe have seen in the when we have had crises like the is any kind of andulence has been reversed prices for to much back to where they were prior to sars. A lot of people on this market have experience and they think the moment turnaround, the market will be back where it was side, what wee are seeing is transaction volumes have dropped, but there are still plenty of buyers out the reason it is dropped is the sellers are not willing to discount and so the money is there, the fundamental is strong in his and as it becomes clear, some of the discounts. Rt taking those prices so resilient. Thank you so much. Coming up, she did Things Initiative faces another hurdle. Next. L tell you why this is bloomberg. This is bloomberg market asia. Quick check of the latest business flash headlines, reshaping the Market Division as last month. The head of fixed income has been bullish and it fixed income currencies and commodities have generated more than 1 billion in the fourth quarter. All your hotels, cutting the workforce. Most of the losses will be in china where business has crumbled in the wake of the coronavirus will stop the indian startup also cutting jobs in the u. S. And japan. The company was founded in 2013 and investors have soured in moneylosing businesses after a meltdown. Prison xi jinping wrote an initiative as a way to protect chinas influence around the world and now the coronavirus showing how the program can support the problem. Virussaw just before the how the slowdown was already slowing this project. What exactly is the virus doing to this initiative. They live along the bill initiative and workers quarantine in china they one side effect is overseas workers there has been about 300 workers quarantined and also impact of the suppliers. Those firmses have also seen a domestic destruction with china disruption with china. Of businesses surveyed, it has even impacted Corporate Expansion so it goes well the home will be on be on the belt road. Beyond the belt road. The plan and strategy, what does it mean Going Forward that they can downsize their ambitions a bit. Shows that thea pace of investment to china, the size of the project has also and the Outbound Investment decline almost 40 according to estimates from the american enterprise, so what we are seeing is xi jinping consolidate and take less huge projects whichne may be on economics in some of and this could be a chance to streamline some of and this is a two way street, it is not just china coming in it is something we can partner and something that can rebrand initiative. Thank you so much for joining in hong kong. Before we get to Bloomberg Markets china open, we are , the nikkeintinue 225 up the cost is up by a 10 to 1 and expectations with the physical simas package, here in australia we are expecting some heavy lifting from the recentent with the most modeling onare not the basis of recession. This is bloomberg welcome to Bloomberg Markets our top stories, an official move of the coronavirus as Central Banks stay together. The fed watching the Economic Impact and saying to bloomberg the outbreak is more severe than originally thought. Oil producers discuss the reaction with the top players once again