Transcripts For BLOOMBERG Bloomberg Markets Asia 20240713

74 basis points. Everything is down. I would imagine 90 of stocks are down. All 11 major indices are down in the region today in very high volumes. At this point, there is nowhere to hide, at least in the equity markets. Yvonne President Donald Trump announcing a suspension of all travel from europe to the u. S. For the next 30 days. The most farreaching measure yet in the administrations effort to combat the spread of the coronavirus. To keep new cases from entering our shores, we will be suspending all travel from europe to the u. S. For the next 30 days. The new rules will go into effect friday at midnight. David our Senior International editor, jodi schneider, is here with us. Thats a big deal. It is. There was a little bit of talk about it before hand, but not necessarily expected to stop all of the european travel for 30 days starting friday. It is something he can do without congressional approval. It is a major move. Also the way the president cast it. Clearly by having the speech, he was attempting to try and calm the u. S. , but it really had a sense of worrying not only the markets, but people elsewhere. No questions, no press, it was just him speaking to the camera basically saying it was a foreign virus and the u. S. Needed to take steps to curve it. He actually said the u. S. Had taken such steps by curbing chinese travel, travel from china to the u. S. Theyre going to do it similarly with europe. He did announce another measures. Expanding paid sick leave, which would require congressional approval for all of the workers who dont have it. Basically suspending some tax payments from certain affected businesses. He didnt talk about a payroll tax cut, something he has seemed to support in the past. Yvonne in terms of economic measures, will he implement them right away or does he need approval . He needs congressional approval for those. Congress, democrats in congress, have supported expanding paid sick leave. 40 of u. S. Service workers have no paid sick days. That is really something that will help a lot of people. Effect,probably go into assistance, suspending some tax payments. It probably shouldnt be tough in congress. It may not go as far as someone, but it shouldnt be tough. A payroll tax cut would have been more difficult to get through congress. It doesnt mean he wont propose it. In this speech, hes had more limited economic measures, which is puzzling. One would believe he would come out more on those, but clearly he wanted the tone to be the and we hunkering down dont want this foreign virus on our shores. David i was asking if the u. S. Is prepared to be unpopular with the measures. Some of the feedback i got was it is an election year, and it might not be something the u. S. Wants. Given whats happened in the last 24 hours, has it become an election issue and argues popular measures to take . I think President Trump is going back to his campaign and political playbook, which is very america first, secure our borders. By calling it a foreign virus, saying we didnt allow travel from china, those are the kinds of statements hes made that his political supporters like. Initially, we have only had some feedback, mostly on social media. Some of it has been critical, saying the president didnt act fast enough in the u. S. , either, and hes not acknowledging that. He called out europe. I assume there will be pushback from european officials about that, as well. Our seniornk you, international editor, jodi schneider. Just some lines coming through. Continuing to see the u. S. Futures market in a steep decline. Losses right now. We have not seen any kind of war yet on how this will get stabilized. David it is triggering an automatic floor. What this perhaps means for u. S. Markets when you do open up later on is at some point, if it doesnt get better, you are flying blind into the yields. Similar to what we saw earlier this week. Futureseuro stoxx 50 also dropping 7 or more after President Trumps announcement of the travel ban on europe. When it comes to the topix, extending to 5 in this late morning trade. A busy market day today. David for percent to 7 losses across the region. 7 losses in european futures. We will call this capitulation. Something you dont normally see. Hong kong stocks are set to enter a bear market. Gold is losing some gains, as well. That is also being sold off. When you dont know what to do, perhaps the best is to do nothing. We will get your full market roundup later on. Lets get it over to Haslinda Amin in singapore. You talked about the capitulation. Lets get some insight from the head of institutional banking. We saw how indexes are going. No amount of stimulus working, no matter how aggressive the banks are. There is no confidence. What is your initial take . My take is the market doesnt like unknowns. The market is gripped by fear, unknown unknowns, panic. Asia, weingapore and went through that initial phase of fear when the virus hit us during the chinese new year. I think government policy came out strong in most parts of asia , then we saw some stability come back. I think the western markets are just seeing that initial fear in the unknown. I think government reaction is now tough. The travel ban, centralbank stimulus. I dont see confidence coming back until two things come back. Number one, confidence. Number two, demand. Cuts will helpte unless it is confidence and demand. You talked about a rush to quality in the medium. Where is quality . There are no havens, or Asset Classes falling far. In an 11 year bull market in markets forlot of pension, loans and investors, are still positive. You take what you can off of the table. Islso believe that everyone fearful, it is time to look at opportunities. Dont wait for crisis. Ful itveryone is fear is time to be greedy. Take a step back, dont panic, look at it for what it is. We need clarity and we are still not there yet. It could be a w shape, an lshaped, look for clarity and yields. Look for quality earnings. There are still companies that will do all right. And will pay you a dividend they will grow at a slower pace. Those are the kind of stocks to start investing in again. We are seeing Asset Classes freefalling. Currently down 6. 6 . 30 oil, not great news for banks. What are the risks of default . Singapore, we already had our major offshore defaults in 2016. A lot of these companies that have survived, this will still hurt, no doubt. But i do think there will be more consolidation to come. Time wenot the first have seen the week price of oil, a much weaker price of oil, because the toggle to renewables has already happened, the move from fossil fuels has already been discounted by the markets. I dont think it is unexpected. I think the speed was unexpected this week when opec had issues. But i dont think there will be as big of an impact within the asian contacts. All important countries, there are quite a few asian importing countries from asia, indonesia, and china. Maybe seeing a drop in costs. Do you see the possibility of a rebound . Yes. Given the demand situation, i do see npls going up, especially for the smes. Companies in the tourism sector,ospitality, retail, apparel those are the more discretionary demand driven. They will be definitely impacted. You talked about the uncertainty, are you more worried about expanding credit . I think this is the time to be helping businesses, especially small businesses. If wes the time where predict the virus will be stabilized and come back to normal, what we should be doing is extending credit lines. Thats what governments across asia are doing. Singapore,ckages in hong kong, australia, china. It is really banks, businesses working hand in hand. Of government is now a lot credit. That is really helpful. They are saying they will give them a principle moratorium for six months. Number two, they will help with the receipt and payments of cash. Global trade is a very paperbased business today, but if you digitize, and a lot of global trade in helping our climb with the supply chain if you canents, create help for the views of commerce in the crisis and use Digital Tools to enable payments and loans digitally without paper, i think you can provide a strong helping hand in support. Thats exactly what we are doing. In your outlook, its expecting a 2 hit to revenues. If the outbreak tapers by summer. It doesnt look like that will happen. Would you have to tweak your projections . This is a moving target. Day by day, week by week. Stay withre is to declines and watch number one is watch everyones positions and make sure they are ok. Number two, stress test. We have been stress testing for a long time. Also, being there for the clients when they need help. I dont think it is the time to start panicking. Will businesses be looking at the numbers, yes. We have been looking at numbers for a while now. Any way to quantify the kind of pain beyond the 2 you anticipated . I think it will be difficult to give it. It is a moving target. We are looking at this very closely. Thank you so much. There you have it. Back to you. Yvonne lets get to the first word news with Karina Mitchell. The latest developments. Is now the coronavirus officially turned into a pandemic. The World Health Organization calling on governments to step up efforts to contain it. The number of worldwide cases deathsped 120,000, with of 4300. There is no strict definition of a pandemic, and those who have avoided the term even as infections spread. It now says governments must ask if they are doing enough. Have never before seen a pandemic that can be controlled at the same time. In full response mode since we were notified of the first cases, and we have called every day for countries to take urgent and aggressive action. Bell loudng the alarm and clear. Karina australia has announced a stimulus package worth 17. 6 billion aussie dollars to fight the economic fallout from the coronavirus. Prime minister Scott Morrison outlined a number of measures to protect jobs and prop up a small to mediumsize businesses. 11 billion will be spent before the end of june. Australia is facing its first recession for almost 30 years. Packagecomprehensive that we believe is well targeted. Those measures do not extend beyond the 30th of june next year. That gives the budget and economy on the other site to ensure we can bounce back strongly. Karina global sport is being hit by the virus. Games are being canceled or played in 18 in stadiums. It would take place without fans. Then the entire season will be suspended. European soccer is also affected, with the Italian League suspended indefinitely. Defender has kept it positive for the infection. Italy is the hardest hit nation outside of china. The government is taking tougher steps to contain the virus. It is shutting down manufacturing and commercial businesses, except supermarkets and pharmacies, with the country remaining in lockdown. Denmark has shut schools and childcare facilities and Public Officials who dont have emergency roles in the crisis. Day, onews, 24 hours a air and at quicktake by bloomberg, powered by more than 2700 journalists and analysts in 120 countries. Im Karina Mitchell, this is bloomberg. David australia unveiling this massive stimulus plan. In a couple of minutes, we will be joined by this gentleman. The finance minister of the country. We will talk about that in a couple of minutes. This is bloomberg. Everybody will do it. I applaud what mark carney did. I applaud the instinct behind christine lagarde, but ultimately, it is about people being sick. You need massive, not kind of, monetary and fiscal stimulus. Make sure liquidity doesnt come in installments. We would be making a mistake if we suppose cutting Interest Rates by 25 or 50 basis points is somehow going to be decisive. Find mostng i extraordinary are the comments from People Like Us that the central bank has limited ammunition. We are a primary currency. You can do whatever you want. David some very big names sharing their views on global Central Banks, their ongoing response to the fallout from the coronavirus. The question for that asiapacific is can Central Banks afforded way to respond to the outbreak and a plunge in oil prices with scheduled meetings quite some time away . Yvonne maybe you cant wait. We already saw emergency cuts. What central bank should we be watching out for for any early move . Dontea, and malaysia have a meeting until later. Policymakers are living on a day by day basis. Those meetings seem a long time to wait. Central a risk and only banks could take a positive position at any moment. It doesnt necessarily have to be an Interest Rate cut, they can take other measures to support businesses. Seen someready emergency moves around parts of the world. The bank of japan put out a statement saying they can move if they have to. India also put out a statement that made clear they will if they have to. There is a real sense of urgency with all of these potential banks. David what can it achieve . There are certain things it will not help, but there are things it might actually help somewhat. What is that letter story . Central banks can help. Interest rates do help. They help at least Financial Market sentiment. They will not fix what we have now, a Global Health pandemic and the associated problems with it. Of people are lot looking for Central Banks to do is coming along and help get money into the economy through different channels. Benchmark Interest Rates, taking pressure off Capital Requirements on banks. They freed up the amount of capital banks. That means they can lend more into the economy. Certainly in the emergingmarket they, china, for example, pump in various channels into the real economy. Thats the kind of role central anks can play. Containment is important. When you get to the economic authorities, Central Banks can help. David our chief asia economics correspondent. Clients tobloomberg keep uptodate. One of the terminals you will find. There we go. Latest out of the headlines. As well as what may be exposed. We are u. S. Go. This is bloomberg. Yvonne the latest business flash headlines. Delta cutting systemwide capacity by 15 . It looks to mitigate back to the coronavirus. The cuts include a 10 to 15 reduction on domestic flights. Transatlantic trips will be reduced by 20 , along with 65 of flights. Delta suspended services to china and reduced operations in south korea, japan, and italy. Into globe aviation, which operates the Biggest Airline, indigo, is the latest issue a itning on earnings, saying could be impacted. Daily bookings declined from 15 to 20 as the coronavirus takes a hold on the selfconfidence. India reported 60 cases in the past few days. That number is expected to rise quickly. China profit for the First Quarter will be cut by around half 1 billion because of the coronavirus. Revenue in china is expected to be sliced in half. The worst of the outbreak on the mainland. When given it it would not give an estimate, but says business is slowing in japan and south korea, and the impact could last for more than a year. David shares of the sportswear maker down 14 overnight. Really contributing to this massive selloff we see across the region and globally. You are looking at the indicator, in very simple terms, selling pressure and buying pressure. You take the ratio and we have exceeded the depth of the Global Financial crisis because of what happened overnight in the u. S. The dow entered a bear market. Chances are very likely given the drop in futures, 2600 on the s and p. 9 uld see closing at 19 from the p. There we go. Is the hope Central Banks, the top line you see, 360 is a probability of a rate cut from the fed. That translates to 75 basis point cut markets are expecting. More than that. A lot more coming up. We are heading to the break and japan. Bloombergbloomberg this is. Yvonne its 10 29 in new york. Karina President Trump is suspending virtually all travel from europe to the u. S. For the next 30 days with the band going into effect midnight friday eastern. It does not include the u. K. It is aimed at containing the coronavirus and was announced during a speech at the white house. The president revealed measures aimed at protecting American Workers and business. To keep new cases from entering our shores, we will be suspending all travel from europe to the United States for the next 30 days. New rules will go into effect friday at midnight. Credit growths slumped in february as coronavirus weakened what was already an historically slow month for lending in the economy due to the Lunar New Year. By 123 billion compared to the median bloomberg estimate of almost twice as much. The pboc says financing expanded just under 11 , the same pace as january. Bernie sanders vows to stay in the race for the democratic a series ofespite defeats by joe biden. He pledges to carry on until sundays oneonone debate even after losing for state primaries tuesday. Sanders was once the frontrunner to challenge President Trump but in a widebut lost range of regions. The house of representatives voted to restrict trumps ability to take military action against iran. The bill bars u. S. Troops from launching hostilities without authorization from congress. This comes after an airstrike held in iranian general in january. The president said he will use his power of veto if the measure is passed. Global news 24 hours per day, powered by more than 2700 journalists and analysts in over 120 countries. This is bloomberg. David thank you so much. Quick snapshot of the markets, equity markets in asia compared to the sorry state of u. S. And , is not bad ins asia because we are only down 2 , 3 . Have a look at dax futures, down 6 on the back of the News Donald Trump has a complete ban. Yvonne europe will have a rough session given the futures and what we are seeing in the region. The hang seng, near the bear market territory, falling close to 20 of the peaks we saw earlier this year. Down 850 points now. He was futures down 4 , nasdaq futures a little down and that prompted stock losses. We have seen in terms of the nasdaq futures market, that is frozen but u. S. Futures heading lower. David lets get more on this. Risk assets, and confirmed coronavirus cases globally topped 124,000. The who top official, declaring a global pandemic. Yvonne selena joins us in beijing. They finally labeled this a pandemic. What else did they say . This has been a longawaited decision, finally officially calling the outbreak a pandemic. Some countries and officials think this came too late, including brazil. The declaration is not used lightly. The last time this declaration was made was in 2009 with the h one and one swine flu epidemic. Sars didnt reach this level. The world has Health Organization general says this is the first pandemic that may be able to be contained. In china, infections continue to slow. The country reporting just 50 additional new cases as of march 11, the lowest number since january. The picture outside china continues to escalate. The who pointing out in the past two weeks, the number of covid19 paces outside china increased 13 fold and the number of affected countries tripled. 22 ,. K. Cases jumping deaths in italy increasing over 30 to more than 800. The country has ordered all shops in the country to close except Grocery Stores and pharmacies until later in march. China, trying to get back to normal. Other countries, taking more extreme measures. President trump, saying he will suspend all travel from europe including the u. K. For the next 30 days. Yvonne we are expecting more stimulus signs from china, perhaps a rrr cut to becoming could becoming. Whats the latest effort we are seeing is a state council calling for targeted reserve ratio cuts to boost lending for Small Companies that have been hit hardest by the virus. The goal is to reduce their financing costs and help them resume operations. The state council mentioned steps to stabilize Foreign Trade and investment as well as help raise tax rebates for qualified firms. This is part of a string of measures to cushion the economic blow. We saw the pboc cut the oneyear loan prime rate. Economists expect more fiscal measures in the form of tax relief and targeted support for certain sectors. The focus is really getting that economy back up and running. Bloomberg economics estimates as of last week 80 of the economy was running at capacity and there are even efforts at the center of the outbreak to resume some sense of normalcy. The province says business will gradually get back to work and actually, transport within the province will resume in lower risk areas. So much. Hank you selina wang joining us from beijing. According to our economists, perhaps china is returning to normal somewhat but still at 80 capacity levels. David for a country like china that makes decisions quickly and is able to execute that, it has taken a good for weeks to get us to the estimate of 70 , 80 . The conversation if you look at what we have done, we have put together a couple things. Factories in the spots in yellow , and your purple circles, those are your hotspots. This largely disappeared in china. The issue is, things like Distribution Centers and research facilities, we are starting to see parts of europe and frankly, from the news earlier, the nba is playing, they are shutting the season down until further notice. You are getting more companies telling their employees to work from home. Twitter is an example. And italy come overnight in case you missed it, they said all shops are closed if you are not a grocery or a pharmacy. You get the hotspots, you get a lot of the closures as well, and you do understand from a capacity point of view, these economies are shutting down one by one. It is hard to see where we go from here because no one really knows how quickly this comes down. The question is what the impact would be on foot traffic. People are putting all their decisions, everything from normal shopping, on hold. Yvonne this is not just foot traffic but for the property sector. We will talk more about that. The coronavirus pandemic is escalating. A cash crunch forces developers to throw in the towel. More on bankers, the smaller developers, lets bring in henry, head of research at cbr he. He joins us from hong kong. Henry, thanks for joining us. Can you tell us roughly how this coronavirus is impacting this sector . How big of a hit are we seeing in terms of selling in manufacturing and how is this playing out for the developers . If you look at the asiapacific to start with, the sectors being hit the most are the hotel and retail. They take a long time for hotels to recover. Retail, we are talking about earlier news, the china situation is interesting because we are not surprised to see [indiscernible] seen, weugh, we have did a survey in the early part of february. It is interesting to see how managers are looking at the stress [indiscernible] Developers Come meet the cash flows. [indiscernible] david from a government perspective point of view, im sure you guys have toyed with that and are talking to officials wanting to it wanting advice, will you advise being the best medicine at this point for these Property Developers that either have liquidity issues or maybe in some cases, solvency issues . Over the past two years, we have been talking about the maturity happening for Property Developers. A small size of Property Developers, they are [indiscernible] inevitably, they will have to default. But we also look at the bright side. The Major Developers are using this advantage of low Interest Rates. [indiscernible] the first two months of this year, we see the significant rate of Corporate Bonds have been issued and the dividend yields, that has been 100, 200 points lower than 2019. Also, i want to highlight, some developers are using this in a limited way to do property sales. One case is hotels. The source and volume has been increased by over 100 , which is going against the trend. I think the government is not going to provide the wider support from a property sector. They are going to be [indiscernible] i just dont think [indiscernible] be in thatctors will category, to be frank. Yvonne ok. You mentioned when it comes to ecommerce, that can help drive demand. Given the supplychain disruptions we are seeing around china, can the logistics side keep up with the demand . I think this is something ecommerce will definitely help. If you look [indiscernible] has increasedelf by 65 in hong kong and 400 m of the percentage increase [indiscernible] funny enough, the struggles we are seeing, whether your facilities [indiscernible] how do yound also, deliver your goods to consumers. That is why we are newng the next wave of facilities developing across china [indiscernible] those are the two major points we are seeing. Europei know you cover as well. The big news overnight in italy, the worst hit outside china, the government essentially told shops if you are not a grocery or pharmacy, you have to shut down. What do people need to know about europe and can they look at what happened in china as a model of what happened in europe back up do a lot of Property Developers to a lot of Property Developers . Of people are panicked talking about the coronavirus outbreak in europe but based on what we are seeing, to be honest , [indiscernible] take a lot longer to close. To do our Due Diligence because all the travel bans, it definitely affects a lot of restrictions when it comes to closing deals. , we are as usual encouraging her colleagues to work from home. Flexible working, what we are seeing in hong kong, is going to happen, very normal in europe in the days to come. Yvonne you see many volumes come down. You are saying there is an amount of deals. When it comes to rental discounts, will rental discounts follow . Yes, i think for rental discounts, it definitely will happen premuch across the retail sector. Then, the rental Discount Retail sectors, we do believe some tourists, retailers, cities, it is going to be most exposed but we really havent revised down our rental growth for the sectors, to be honest. David henry, appreciate you coming on the program. When things normalize, coming to the studios. Henry chin joining us to talk about the properties. Unveilsnext, australia a massive stimulus plan as the coronavirus threatens the first recession since 1991. The finance minister joins us. This is bloomberg. Yvonne quick check of the business flash headlines. Cme group will close the putting floor at the end of the week as operations amid coronavirus. All products will be available to trade on their electronic system. The Stock Exchange restricted access to the trading floor. No virus cases have been reported at cme and the main offices will remain open. Hong kongbased insurer aia reported its slowest growth in new Business Value since it went public in 2010. Operations have been hit by antichina protests. There is the probability of new policies being sold rising 5 from the previous year. A 21 climb in new business in Mainland China wasnt enough to offset the slowdown in hong kong. Apples closing all 17 of its Retail Stores in italy until further notice as it looks to limit the spread of the coronavirus. Apple previously closed all 42 stores in china when the crisis was at its worst there. The decision came before todays announcement by the italian Prime Minister to close all shopped apart from Grocery Stores and pharmacies. David the theme of the day has been policy support, fiscal and monetary, and we are headed to australia where we got the announcement earlier this morning, that market is now down 5 . Markets are convinced this is the shot in the arm the economy will need but this is what the government has come through with. They unveiled a fiscal stimulus pan plan to buttress the of the in the face global slowdown and the various impact of the coronavirus outbreak. The impact threatens to hit australia and throw australia into its first recession in a most 30 years. Lets get more views on this. Joining me is a finance minister. Great to have you with us. The general consensus from economists reacting to the fiscal stimulus plan is that it is enough to get us through to the first budget. What can we expect after that . Dealing with a very significant challenge. It is a temporary challenge, but we dont know at this point how long this will last and what the intensity will be at its peak. The reason there is such volatility in markets around the world, not just in australia, is because the market is finding it difficult to apprise the risk. We announced today significant package that presents just under , designed to support business and individual australians through this period and set us up for the strongest possible recovery on the other side by providing incentives for businesses to invest now into their success post this period. Haidi the Prime Minister was optimistic about having a strong bounce back on the back end of this. Do you see a recovery . U or v shapedis a recovery, what we do know is that on the other side of the bottom, there is a big line going up and we of course want australia to be in the best position to maximize the recovery on the other side. This is a significant Public Health challenge with significant economic implications for people in countries around the world. Ingo into this in australia a comparatively strong position. On a into it having been 29 your continuous growth trajectory with growth strengthening towards the end of last calendar year. Our budget position has significantly improved over the last six or so years. We have the capacity to provide the necessary support, and the package we released today is scalable. If more is required on the track, we can make those judgments. Said this isve something that could see an impact going as long as nine months from now. Other economists project even longerterm, dire projections. In terms of what a potential second fiscal package would look like, this one was about 1 of gdp. Equivalent roughly in that sense to what we saw during 20082009. A second package, would that be to that same scale . Speculate oning to what we may or may not need to do doma track. We have done as much as we believe needs to be done right now based on the information in front of us. We will continue to assess the information, the data as it comes through. That is the situation in terms of the speed of the spread of the coronavirus, which we have been tracing as a pandemic for best treating as a pandemic for a number of weeks. As more information comes to hand we will make judgments. Right now we have put our best foot forward to support business , to keep australians in work and provide targeted direct support it income supported australians, those on welfare plans. I the package is skewed towards the Second Quarter in terms of when most of the funding is released. Is that enough to avoid a recession . Presentsa package that about 0. 9 , just under 1 of our gdp and upfront, it is even more than that because over the estimates, it is 17. 6 billion in the initial financial year, in the timeframe thereafter it represents 22. 9 billion dollar years dollars australian. Buts a significant package, as i indicated it is scalable and there is more data and information coming to hand. We have the capacity to do what is required. This undermine budgetary considerations for the country . This is a temporary challenge, a significant but temporary challenge. What we are doing in terms of ascal stimulus is put forward series of significant but temporary measures. Baking in any structural burdens on the budget. You may recall at our last update, iton showed it was in surplus every year under the tenure mediumterm the tenure d. We arerm perio focused on providing temporary relief, temporary support, as significant as it is. When we are on the other side of this and we experience a strong recovery that we are confident will occur, the budget will bounce back at that point. On friday you said the government wouldnt be embarking session, splash in the yet today, the government announced a multibilliondollar cash handout to pensioners, job seekers, lower income families. Im wondering what the thinking was behind the turnaround. Is no turnaround. What i said friday is 100 consistent with what we announced today. Those who are students of political and fiscal history, we governmenthe initial stimulus package which included Cash Payments to welfare recipients, which is what we are doing today. We didnt support the second reckless and irresponsible cash splash which involved putting because ofo roost houses put on fire. The catalyst the indiscriminate Cash Payments to around everyone around australia. That is not we are doing. All Cash Payments are very much focused and targeted to the lower income and income supported welfare recipient end, and that is the segment of the population that needs this particular support but it is also the segment of the population where the sorts of payments have the biggest impact in terms of economic stimulus moving forward. There is criticism not enough of this goes into broader household hands for spending. Are you concerned about the sentiments and the impact coronavirus will have in terms of what you are seeing when you look out under the streets, at restaurants, particularly if large gatherings and other events will be canceled . The most important thing we can do for sentiment and confidence is protect peoples jobs. We are providing substantial investment into protecting peoples jobs. We are providing support and investment incentives to businesses employing nearly 10 million australians, providing direct payment support to about 6. 5 million australians. This is a farreaching package designed overwhelmingly to protect peoples employment as the economy goes through a difficult time. And as businesses will find it cash as the onto revenues go down. That is what we are focused on and that is what we believe is appropriate in the current circumstances we are fighting. Haidi thank you so much for your time. Cormann joining us. More details on the fiscal theage announced today by Prime Minister and treasurer, Bloomberg Economics expects this is the first shot to get businesses over this shock of the coronavirus. There keeping an eye on budget and what could be in a second, much larger stimulus package. Yvonne thank you. Haidi joining us with the australian finance minister. According to the new zealand herald, the carrier Air New Zealand is planning a salary its staff on00 of individual employment contracts, also looking to minimize job cuts. They are looking to redeploy some Staff Members to other positions. We see this stock off some of the lows but still down 8 . This is bloomberg. Awesome internet. Its more than just fast. It keeps all your devices running smoothly. With builtin security that protects your kids. No matter what theyre up to. It protects your info. And gives you 24 7 peace of mind. That if its connected, its protected. Even that that petcamera thingy. [ whines ] can your internet do that . Xfinity xfi can because its. Simple, easy, awesome. [ barking ] yvonne its almost 11 00 in singapore, 8 30 a. M. In mumbai. We are entering the last hour of the morning session in hong kong. The top stories, not welcome here. Trump bans travel from europe as coronavirus becomes a pandemic. The president blames the eu for not acting fast enough. Markets collapse around the world as trump shuts the door. The fear index stands at a record amid rising concerns for global growth. The ecb says governments must do more. Christine lagarde warns of economic shock as damaging as the financial crisis. This is Bloomberg Markets asia. We are talking about another brutal session in the asia region. Seeing markets selloff across the board and stocks cratering. Ase a look at japan as well asx 200, falling more than 5 and the asx 200 sinking into bear market territory despite the fact that we got big stimulus from the australian government. The hang seng getting closer to their market territory, down 920 four points. We are down 5 in thailand this morning. There isnt anywhere to hide. We are watching india futures, looks like that session will be pretty ugly. We closed pretty slack yesterday , but we are looking at currencies, money headed back into dollaryen, what 03. 37, the aussie seeing some pressure. The renminbi seeing closer to 698 this morning, dollar index not doing a lot. The india session will be interesting, given that we have seen oil prices in erasing gains in the early session. Ante fromm up the saudi arabia, uae when it comes to Oil Production that can continues to weigh on crude markets. When it comes to the india session, we were pretty much flat yesterday. Nifty futures falling south of 4 . With the india rupee, we will see how that plays out but we oil benefit transmission for india. Were not seeing that yet. Keep in mind we have Inflation Numbers out of india later today so we will watch how the bond markets react. You see the india 10 year yield at the moment. Lets get to the first word news. Karina italy is the hardest hit nation outside china and the government is taking tough steps to contain the virus, shutting down manufacturing and commercial businesses except supermarkets and pharmacies with the whole country remaining in lockdown. Denmark has shut all school and childcare facilities and sent home all Public Officials who dont have emergency roles in the crisis. Tom hanks is the most high profile person yet to contract the virus. The oscar winner says he and his wife tested positive while preparing for a new film being shot in australia. He tweeted they were suffering fatigue and aches and would stay in isolation for his long as necessary. About elvisew movie presley. Global sport is being hit by coronavirus with games canceled or played in empty stadiums. The nba said thursdays match between the warriors and nets would take place with no fans but has now suspended the rest of the season. The Italian League suspended indefinitely. Juventusdefender tested positive for the infection. Chinas credit growth slumped in february as rotavirus weekend what was already a historically slow month for lending. Aggregate financing increased by 123 billion compared to the median bloomberg estimate of almost twice as much. The pboc says financing expanded pacest under 11 , the same as january. The house of representatives voted to restrict President Trumps ability to take military action against iran. The bipartisan bill bars u. S. Troops from launching hostilities against the Islamic Republic without authorization from congress. This comes after an airstrike killed a top iranian general in january. The president says he will use the power of veto with the measure is passed. President trump announced a suspension of all travel from europe to the u. S. Back to you. Yvonne i will take it from here. Thank you. Our top story, President Trump travel isce that restricted from people in europe for 30 days and that should be in effect on friday. We were expecting some type of economic stimulus as well, but it seems like they were limited. Some low interest loans for small businesses, but also we didnt get quite the payroll tax cut President Trump was talking about earlier. Lets get to derek joining us from singapore for some of the main takeaways from the speech. People were hoping for some stricter containment issues but we heard something about europe, which is significant . It really was. I think one of my emerging headlines from this is the white house has run a certain amount of cleanup on that speech. I will give you one on the european thing, this is from an official at Homeland Security ban doesntravel apply to american citizens or legal permanent residents or their families. The white house is walking back some of the stuff, trying to clarify. A lot of this will be a devil in the details situation and as we, as the white house puts out regulations to sort of talk is going to work in practice, that is going to be something i think markets will pay extra close attention to. Another point of clarification was that President Trump was talking about insurers waiving certain charges and coat hays copays related to coronavirus treatment. Actually, that might just be for testing. There is a lot of details that have to get worked out here. We are looking to the u. S. Government for clarification on what those are going to be. Separately from that, you have outside business and government really sit up and take notice him a particularly today. The nba, the worlds premier basketball league, suspended its season. The National Hockey league has said it is aware of that, it is evaluating options. More on that tomorrow. Actor tom hanks, probably the most beloved american actor in the world, announced he got coronavirus while filming or preparing to film a movie in australia. This is certainly, i think you can look at today as a day that certainly in america, people thisup, took notice, said is actually a thing and this will affect everybodys lives in a major way. Yvonne you are starting to see the response from President Trumps speech, as well. Im wondering, did he do enough to change the narrative that some people are saying against trump that he was slow to act when it came to containment issues and he wasnt really taking the virus serious leeco was he able to switch the narrative after this address . I think what you saw from President Trump was a very serious speech. He was addressing this in serious tones. This wasnt a flashy speech by any measure. This was somebody who was looking straight a camera, being very serious and direct about the threat this poses. The fact that the white house and administration are issuing statements,nup however, is certainly something that is sparking a lot of confusion online right now. I think we will have to wait and see what the full reaction is as people really take this and process it, but it is not a very good sign that the administration, within minutes to hours after the president s speech, is issuing major clarifications to the words that came out of the president s mouth. , thank you so much for that. Our guest is advising investors not to panic and maintaining his asset portfolio. Lets bring in frank, head of asia strategy. It is easy to say not to panic but if you look at the markets, it is all flashing red and we have the nasdaq futures coming down. What do you do . The market is in a panic mode. We can understand it. Have becauset we of covid19, now having said that come i think what is important is to have in place some protection. Some of the protection we have in support is to remain in u. S. Treasury to actively protect [indiscernible] and at the same time, we have to outlook andeconomic what i think now, the shape of the recovery, because it is rather clear that [indiscernible] global recession is not too far away, but [indiscernible] eu could have some shock recovery. [indiscernible] going to happen, do you want to hold and what do you want to buy . I think we have also to position on that. Frank, markets are already basis cuts by 75 the fed. Should the fed move . Why shouldnt [indiscernible] when a recession could be coming as well . The Monetary Policy is just one of the tools that is available, and it is quite possible it is not going to harm seen ay, liquidity like we have seen, the cut by 50 basis points, that mark is clearly what the market is expecting and what we should get is a more coordinated action, more targeted action, more fiscal stimulus and i think it is widely expected. I have to wonder, we have seen the fed and multiple governments like australia, the u. K. , come up with big fiscal measures as well. Moree Global Response effective than maybe what we are hearing from china, strong stimulus measures their . What is the most supportive in putting a floor on these markets . The response we have seen from china can be considered the to see someve, and really targeted merger and at the same time to use more fiscal one. The monetary but what we have to consider at china istime is not, one of the very few countries on which the virus is being contained. So it is in some ways ahead of the rest of the world because it can also put some resources on getting back people to work and getting back the economy to normal at a time when we are u. S. G europe and the having increasing measure of containment. Mentioned the treasury, the bonds may be the best way to hedge at the moment but what we saw overnight was equities as well as bonds selling off at the same time. It was one of the worst we have seen since at least 2002. How much more can we see these yields fall . Toi think they could go zero. Possibility at the moment. Is important to ,onsider is that the economies [indiscernible] bute is no way of disputing theres also some prospect for the growth to recover at some stage. And it could come maybe in the spring. View ofwhy we have this of thepletely being out equity market, to keep some balance view on the market so having as much as equity as long as something that is making [indiscernible] bethink the equity market to careful not to have too much directional view and to the [indiscernible] and we are on u. S. And europe. That is what we have shown in our latest outlook. Drying downmpanies credit, do you see a rush to the dollar . A rush to the dollar . Thats right. Do you see a rush to the dollar . No, we dont. Done is, what we have to increase the diversification in the currency market because this is where we [indiscernible] of correlation and to increase some position in euro, in gdp, in japanese yen. So we are i think at the stage where we should diversify further. Stay with us. Frankly will be staying with us. Still ahead could cheaper oil process boost indias prospects . Next, we look at the impact of the coronavirus on corporate earnings and why the year is looking bleak for business. This is bloomberg. Yvonne breaking news this morning, we are hearing from the u. S. , telling citizens to reconsider travel abroad due to the virus after President Trump implemented strict travel restrictions on europe for the next 30 days. We continue to see the u. S. Administration at least going further in telling travelers to avoid nonessential travel as much as they can do to the outbreak. The virus is gripping the Global Economy and the outlook for global earnings is growing grim. David this is the type of risk that is hard to price, hard to know where it ends. The timetables are pretty much fluid. You dont normally see price dislocations of this sort. Before i talk about earnings, i will talk you through the damage across equity markets. Australian futures down 6. 5 , u. S. Futures flirting with 2600, the philippines down 7 , we are getting a new story on the bloomberg today of the philippine president and his key economic officials getting tested not for any specific reason, they will get tested for the virus and going through quarantine. As promised, a look at earnings quickly. In terms of how earnings expectations changed across major benchmarks, looking at s p is blue, purple is europe, mci china read and asia has been quite bad, and em is where you are getting downward revisions, down 4. 5 as far as absolute change from the time the virus atrted about two months ago this point. Within asia, this is how things disperse. Energy, getting a drop in oil. Up. Th care has been revised it is a moving target at this point. It is clear for only one, and that is the energy sector, eps pronounced most downward revisions and earnings, down 12 on forward eps within that sector. Yvonne thank you, dave. Lets bring back frank, head for asia equity strategy. What davidck to mentioned, we are seeing downward revisions in sectors like energy and airlines where it is tough to really call for a floor when it comes to these earnings estimates at this moment. Are there any areas you look at right now where maybe the path is clearer, that we could see a bottoming out soon . Clearly in a context where the earnings are not only going to be downgraded, but the [indiscernible] is extremely look. In the case of the sector you were mentioning, we just of no just dont know. [indiscernible] you have a number of sectors, so [indiscernible] among technology, for instance, you could [indiscernible] some relatively [indiscernible] visibility in terms of earnings. That doesnt mean we wont have downgrades. We will have some downgrades but [indiscernible] cyclicalee some industries now going to be less impacted when it comes to their earnings. One of [indiscernible] we have in asia is the investment is going to be somewhat less impacted than consumption, which is going to take more time to recover. On relative terms, we would investmenttion on sector than the more consumption. Strength,s of market you talk about how you like china. How about korea . Goldman has said perhaps the cost be is the most the kospi is the most interesting when it comes to snap back trade. Is interesting because it has a High Technology content and number two, it has by thet brutally coronavirus. At the moment on the kospi, we view, butn a neutral that could be one market that could recover. I would see recovery more on [indiscernible] trend we are seeing when it comes to 5g deployment, for example, and who on the longterm it will benefit. This would be one of the markets that we would consider. Isone of the concerns now the squeeze in liquidity. How do you see that playing out in the asian markets . We see the illiquid asset to be more impacted. This is typically the time when we dont want to be too much involved in what is related to the smaller companies, for instance. It doesnt mean necessarily that we are not going to be on the small [indiscernible] we are going to look for the assets that are going to be substantive to this illiquidity. When it comes to dividends, should we expect that to be under threat now . Yes. For a corporate sector and corporate company, we will see probably [indiscernible] first to be cut. Then, you could see capex as well to be lineased. The next in would be the dividends. This is the time we have to [indiscernible] dividends where the are going to be the most sustainable. Talking about u. S. Stocks, we talk about the nasdaq futures being down and the dow in a bear market, the s p looks set to be in that territory as well. The question we are asking viewers today, how long this bear market in u. S. Stocks will last. You think the u. S. Economy is strong and resilient enough to stage a v shaped recovery like we saw in Chinese Markets . We had in our, own scenarios some recession coming in a quarter of the year. It is [indiscernible] we are keeping with the coronavirus coming. I think in this kind of market priceou have sharp action, you have to wonder how [indiscernible] economy. Affect the when he said the s p 500 when you see the s p 500 [indiscernible] more than half the growth of the u. S. Is coming from [indiscernible] the price of oil declining, that is increasing the possibility of a credit coming to a time when we have this [indiscernible] between the price on the economy and that is where we have to pay attention. Frank, we have to leave it there. Thank you so much for your insights today. Lets take a look at where we are in terms of the markets now. We have read pretty much across the board, although i think the losers include australia, down by 6. 3 , the csi 300 lower by 1. 7 at this point, pretty resilient compared to the other asian markets. Hong kong, a different story. It is inching towards bear territory. On the show. O come this is bloomberg. You are looking at pictures of the lion city, 11 30 a. M. In singapore. Singapore not spared, they are down 3. 7 in line with the rest of asia. Heard from the president last night through her Facebook Post saying singapore must consider tapping reserves to help its people, its businesses bleeding from the impact of the coronavirus outbreak. That comment follows the deputy Prime Minister saying the government is not ruling that out yet. 3. 7 . I down the first word headlines in new york. Karina President Trumps suspending virtually all travel from europe to the u. S. For the next 30 days with the ban going into effect friday at midnight. Measuresone of several announced during a speech at the white house. The president revealed measure aimed at protecting American Workers and business. To keep new cases from entering our shores, we will be suspending all travel from europe to the United States for the next 30 days. The new rules will go into effect friday at midnight. Credit growths slumped in february as the coronavirus weakened what was already and historically slow month for lending and the economy, due to the Lunar New Year holiday. Aggregate financing increased by 123 billion compared to the median bloomberg estimate of almost twice as much. Expandedsays financing by just under 11 , the same pace as in january. Bernie sanders about to say in the race for the democratic president ial nomination despite a series of defeats by joe biden. He pledges to carry on until sundays oneonone debate, even after losing 4 state primaries tuesday. Sanders was once the frontrunner to challenge President Trump, but lost in a wide range of regions and demographic groups. The house of representatives voted to restrict President Trumps ability to take military action against iran. The bipartisan bill bars u. S. Troops from launching hostilities against the Islamic Republic without authorization from congress. It comes after an airstrike killed a top irani in general in january. The president says he will use his power of veto with the measure is passed. Global news 24 hours per day, on air and on quick take by bloomberg, powered by more than 2700 journalists and analysts in more than 120 countries. Im Karina Mitchell and this is bloomberg. Haslinda thank you. Lets take a look at the markets. It is read across the board. It is incredible. What we saw with trumps address failing to assuage coronavirus concerns, and the 30 day travel ban from europe to the u. S. What impact will this have in terms of the Global Economic growth story . Two of the biggest travel hubs, u. S. Futures markets down by 4. 5 percent, the european stock futures index open down 7 . Looking at the superlatives in asia, the philippines down 6. 3 , the most since october 2008. It is holding at a sixyear low. In australia, 11. 4 billion government stimulus package announced. Has that given a reprieve to the market . Certainly not. 6 , and2000 200 down widespread selling in japan, down 5. 3 . ,he money going into the yen these asian currencies absolutely getting whacked. The south korean cost be down 1. 3 . Down 1. 3 . President trump is labeling this a european and asian virus and this has sent the markets into the panic into a panic. We are on watch or bear market territory in the hang seng and south korean indexes, the hang seng down 20 from april. If we hold at this level it will join the list of asian markets in bear market territory. Oil firms, Hong Kong Developers leading those declines. Haslinda a check on the indian markets, poised to open, nifty futures pointing to a lower open, down 4. 6 right now. We know india is suspending must be says until april 15 over the coronavirus outbreak. Likely cooled in february, reversing an uptrend in place since the monsoon season ended in september. Economists estimate 6. 7 inflation growth. They say the declining risk to cpi among others creates room for the federal bank to cut rates by 2540 basis points when it needs meets next month. Our economist in mumbai. Good to have you with us. 6. 8 inflation, lower but still above the r. B. I. s target. Thats right. Above thetion is target but it is important to note the sharp fall in crude prices we have seen is likely to give a number closer to 6 or lower for the next month. For the rba, which has been worried about growth concerns in india even before coronavirus, i think it is an opportune time to cut rates when it meets on the third of april. Da 35 oil is helping in terms of the fiscal space. India doesnt have a fiscal a 10 but simply by reduction in oil prices gives the fiscal room to about 12 billion for india. More important is as oil prices fall, it will make it easier for the government of india to hike excise duties on oil prices and get original additional revenue. Im anticipating as the correction to oil prices comes through, you could expect india to hike excise duty both on petrol as well as diesel, enabling them to garner additional revenue. When it comes to food prices, have we reached a peak yet yet a peak yet . Yes, i think we reached a peak in december. We saw softening in january. We are anticipating acrosstheboard softening because the previous month, softening was largely concentrated in perishable it this is likely to show softening in food prices. We are beyond the peak of food prices. How theentioned about r. B. I. Could cut as soon as next month. Didd it mean for what they with the fed and the boe with emergency cuts of 50 basis points . Do you think the r. B. I. Is more inclined to target injecting liquidity . When it comes to the Interest Rates transmission, it has been faulty of late. Currently, i dont anticipate r. B. I. To cut beyond 40 basis points. Ultimately oil headline inflation would remain close to 6 for the quarter. What i think is r. B. I. Is likely to inject liquidity to longterm operations which it has been doing and it already has finished four rounds of it, one trillion worth of reparations have been done. That enabled a compression of spread in the carpet bond market. With recent tightening of financial conditions given the bank was put in moratorium, i earn goingill forward. I dont expect them to cut beyond what he five to 40 basis points and use it with a longterm equity operations. Lower cpi, r. B. I. Cuts, that means indian bonds will continue to rally. That is right. Indian bonds are rallying largely because of the falling of its global peers. You have seen indian bond markets, at least the tenyear bond yield has seen a sharp or reduction of 25 basis points. In the year term the nearterm you could expect the 10 year yield to trade closer to 6 in the near term. What is the outlook for the Indian Economy . This morning, we had headlines suggesting india [indiscernible] to contain the virus, which may be impacted. The economy is already slowing at the pace not seen in about six or seven years. Ordinarily, a crude price reduction of this magnitude would have meant a boost in terms of growth impact. Ordinarily, a 10 decline in oil prices tends to positively impact of growth by 20 basis points. This situation is different because india was slowing before Coronavirus Impact magnified. Certainre also seeing impact, not just in supply side but on demand side. What could happen eventually is am a you would have concerns on supply chains, concerns on [indiscernible] not being able to use. There are concerns manufacturers of electrical equipment, dependent on china, could see slowdown. There are other concerns where you have sudden cases being detected in for instance, in hub city,ectronic bangalore. That could impact indias export of services. If you ask me, to begin with, i think if the Coronavirus Impact continues longer, the downside impact to growth could be a lot more magnified than the upside impact, which could come into oil prices. Go, the big news last week was the bailout of the us bank from sbi. There any contagion in the Financial Sector and could it have a wider impact on the economy . Not really. There are two reasons. One reason is, the r. B. I. Acted very swiftly over the weekend. They were ready with their. Esolution package for yes bank and r. B. I. A hinted they could open up a separate liquidity window for yes bank. Yes bank is taken out of moratorium. I would say there is a tightening of financial conditions Given Yes Bank is indias largest private sector to largest private sector bank. But sbi has acted swiftly to prevent contagion. Also follow quickly with longterm operations to significantly losing the interbank market. I dont think there could be any significant concerns emanating in terms of contagion. Thank you. Apoor joining us from mumbai. Inflation numbers out of india later today. We will talk more about oil coming up. Brent crudes down 5 during the asian session. This is bloomberg. Stocks falling fast and furious. The headline coming through, the msci emerging markets stock index down 20 from its big set for bear market. When it falls into their, it will join the likes of the dow, which is in bear territory, and global stocks in general poised to be in bear market as well. Crude, brentook at down more than 5 . At the latest business flash headlines. Systemwidetting capacity by 15 as it looks to mitigate the impact of the coronavirus. Cuts include a 10 15 reduction on domestic flights while transatlantic flights will be 65uced up to 20 as well as percent of flights across the pacific. Delta suspended service to china and reduced operations to south korea, japan, and italy. Interglobe aviation, which operates indias Biggest Airline indigo, issued a warning on earnings, saying it suspects quarterly revenue to be materially impacted. Daily bookings declined between 15 20 as coronavirus takes hold on the subcontinent. India reported 60 cases in the past few days, but that number is expected to rise quickly. Adidas says it is its china profit for First Quarter will become by about half 1 billion because of the coronavirus. Revenue in china is expected to be sliced in half during this timeframe which saw the worst of the outbreak on the mainland. Adidas wouldnt give an estimate for the outlook but business is slowing and south korea and the impact could last for more than a year. India markets just opening right now, lets get to mumbai where our reporter will take us through todays session. Seems like down arrows today. India, just shy of entering bear market. It has entered. Good morning to both of you. 9944 was the level we were monitoring on nifty this morning and the index is now at 9924, so ,rom alltime high levels subtracted 20 . Indian markets have entered into the bear territory. Points, aown over 500 cut of 5 . Sensex down almost 1700 points and the banking index is under pressure. There were reasons already due , and the selloff is across the board as we have the broadersome of market index, nifty 500 down 5 . The market is extremely weak this morning. Volatility index has risen to of 33. Of 23 levels for stocks what are you watching . Aviation, as you highlighted, opened with cuts of 10 after they issued a profit warning due to coronavirus. Their bookings are down 15 20 and remember, the Indian Government issued travel bans which put further pressure on the airlines. India aviation opened with cuts of 10 . The target to 1145 on the stock. Coal india is one we are tracking because they have a Board Meeting to consider dividends with markets going down. Traders and investors could be betting on dividend yielding stocks. It is open with cuts of 5 . Thank you so much for that. Crude prices plummeted after President Trump announced a halt to all travel from europe for the next 30 days. Is in singapore. We are seeing crude down 25 this week alone. What is contributing to that apart from trump . Just trump. This is a wider geopolitical issue that is taking into play saudi arabia and russia. The countries are vying for more market share of the oil market boosted drillers production and cut the price of oil significantly over the last few years. Both saudi arabia and russia tried to some degree to come to terms of Cutting Oil Output together, but they couldnt make an agreement last week, so they are boosting production as much as they can on both sides. At the same time, the coronavirus is having an impact on demand. We could see potentially the first year on year drop in oil demand in about a decade. That would be enormous for the market and add to the oversupply. There is a risk shale producers could go bankrupt. Is there anything trump can do to buffer that . Absolutely. Shale producers like to make a profit around when oil is at 45 dollars a barrel. Right now we are around low 30 so they are in trouble. Only the biggest ones are doing well. When you look at that, there could be bankruptcies and mergers. The u. S. Government has talked about potentially putting some sort of Bailout Program for these producers. Since it is an electionyear, there is chapter about how will trump try to appeal to voters in texas, for example go that bailout could help him out but it would be expensive and you would have to get support from folks on both sides of the aisle. In might not be easy to pass but it will be talked about over the past few weeks the next few weeks. Thank you, stephen. , the and erc in china saying they will be curbing the price rises in pork, vegetables and grain. Top are doing a bit of a when it comes to the level of food inflation we have seen in china, where we have seen inflation prices really being contributed by the surge in pork which continues to surge in february, we saw that 135 year on year rise for pork. The government doing something about that. We will see if that affect the market today. Seems like that is a side story given the macro picture today with the u. S. Banning travel from europe and the stimulus package and the details from this address causing more confusion than any kind of clarity today. Coming up, Morgan Stanley is among the banks pulling back from work, helping chinese firms list in the u. S. We will tell you why, just ahead. This is bloomberg. Credit suisse and Morgan Stanley are among the banks pulling back from chinese offshore ipos. Lulu chen has the story. You would think with this phase one trade deal, we would see more crossborder deals. What you think is impacting sentiment . Reputation of risky is what is the key matter. Is what isonal risk the key matter. These chinese ipos last year, largely because a lot of the more performing pretty badly on average, the chinese ipos last year fell 21 and you had 14 of the 33 chinese ipos in the u. S. Cut back in size. Right now i think they are veering on extra caution and evaluating what they want to do when it comes to chinese ipos in the u. S. Especially given the political climate, where washington is telling u. S. Institutional investors to cut back on chinese investments, especially from pension funds. He t makes them where wary of friends and family deals . When it comes to friends and family deals, there has been a lot of concern. Usually if a deal has a lack of interest from institutional investors, that is not a good sign. In the past, we have seen the seen this pulled off but for a semesters,itutional that is a pretty important benchmark for these Global Players to showcase that these deals are of value. Going forward, we will see even further pushback probably on friends and family deals. Sure is noty im helping. Thats right. Lulu chen, thank you. Lets get to market checks before we go because certainly, this has been a rough session in asian markets. The hang seng, we and things this way, we could be entering bear market territory in hong kong, down 920 points, the sensex opened moments ago, down close to 5 . The oil price has dropped, and thats not helping when it comes to india. The nikkei 225 coming back from lunch, still lower by more than 5 . We are watching the kospi, taiwan, singapore, same story given President Trumps address today, sending more worries that you essentially have the u. S. Restricting travel from europe, the u. K. Has been spared and when it came to economic measures in terms of relieving businesses in the u. S. , we didnt get quite what the market wanted. It was limited in terms of loans but not that much talk of payroll tax cut so that disappointed the market. Lower by 5 , taipei and singapore seeing the same red arrow story. Southeast asia markets, perhaps some saying this could be one of most hardhit regions right now. Index seeing the manila down 6 , we mentioned the msci index entering the their market. Haslinda to get perspective, the dow sinking lower, the s p lower. Taking a look where oil is right now, brent crude down almost 5 . Another crude market down almost as much. In this week alone we have seen oil dumping about 25 . The Commodity Index slumping about 1. 5 as well. On top of that, the msci emerging markets stock index down 25 from its peak, set for a bear market run. You get a sense this is capitulation. There is no floor inside at this point in time. Yvonne if we continue to see how this plays out in the europe session, where we saw stock futures heading lower, u. S. Futures as well. We are watching the s p because the way things are looking now, seems like the s p could also enter into a bear market during the u. S. Session today. , japanese yensh seeing gains of more than 1 , it yeah mastecs having a bloodbath a bloodbath. G yields are lower. Sold combinedds together, so when it comes to asia sovereigns, yields are picking up quite a bit here and we continue to watch the fall in brent, wti, gas and oil down 6 . Looking ahead to the europe session, take a look at that, germany futures down more than 6 . This is going to hit the news this is going to hit, the news we suck from President Trump. Thailand down 8. 7 , and not just when it comes to travel but in the u. S. , things are starting to hit at home when it comes to the likes of tom hanks, one of the most beloved actors, tested positive along with his wife. The nba suspending or season after one of their players had a preliminary positive test for coronavirus. Plenty to worry about in these markets. No end in sight at this point. That is it for Bloomberg Markets asia. This is bloomberg. [ fastpaced drumming ] [ fastpaced drumming ] the following is a paid presentation brought to you by rare collectibles tv. [gunfire] four stating years of battling, the allied powers of the United States, france and england prevailed over germany, austriahungary,