Transcripts For BLOOMBERG Bloomberg Markets Asia 20240713

The left column, a lot of those names in the green. Banking names as well. The rest of the region still seeing a lot of pressure. The split is tilted towards more downside. In terms of the sector groups as well, the similar to what we have seen. Youre getting a lot of upside in names like resources, banks, financials are seeing pressure overall. Down for a sixth straight session. 25 from the peak a couple of eci weeks ago. Yvonne back from the slopes. And back in hong kong. Steve, we have been talking about that pivot from President Trump. Painting a dire outlook on this outbreak in the u. S. Why . Wasell, i hope that he looking at the data and also seeing what other, even local news abilities are doing in the United States, cites and states aswell cities and well those in europe and they are taking this very seriously. And donald trump says it is bad. He repeated that. Its bad, its bad. He said this could last until august or even later. Hes calling it an invisible lining. Yo enemy. You can see the impact on the socalled invisible entity as places like san francisco, silicon valley, six of the most populated counties in the bay area have basically ordered people to stay at home. Restaurants are closed. Were seeing dallas and houston also telling people stay home. They are closing restaurants, closing areas like bars and gy ms, because look, the United States has 4000 confirmed cases at least. 71 deaths. Theyve also been criticized for the lack of adequate testing. That might be the tip of the iceberg. So, donald trump, maybe he is looking at the data and saying, listen, we need to change the tone on this and warn people it is getting perhaps even worse. But then again, he did not miss an opportunity to take some credit. He gave his government a rating of 10 out of 10 on their response so far. David timely, since we are talking about this, barriers to entry and exit in hong kong. The tube executive carrie lam is speaking live. Theyve issued a travel alert to all countries exchina, urging people not to travel abroad. Yvonne also wearing a mask. Just to show the seriousness of these travel restrictions. Weve seen, when it comes to asia, more containment efforts as well across the region. Thats right. Hong kong has taken the steps already of requiring 14 day quarantine, selfquarantined for returnees from the United States, for the u. K. , from egypt. From earlier south korea as well as yes, we just did that story but i got in on the last okaido. Out of a a red alert zone in japan. Too many travel restrictions to list in this short segment but lets focus on malaysia and the philippines. Malaysia is perhaps the most hardhit Southeast Asian nation with 553 confirmed cases, 125 new ones overnight. Granted, many of these infections were as a result of a religious gathering of 16,000 people a couple of weeks ago but still malaysia in crisis mode. They are restricted Peoples Movement, banning all visitors and relations returning, they will have to have a 14 day according. Quarantine. A 14 day citizens are restricted from traveling overseas and businesses will be shot except for those that supply daily essential. Philippines, weve been talking about that all morning. They have taken the unprecedented step of halting all financial transactions, stocks, bonds, fx trading will be halted as of today. That really does beg the question is this the first country to m take this drastic step . Will others follow suit . Right now seeing 140 cases in the philippines. 12 deaths. But, you know, the philippine stock market as you know down more than 30 so far this year. Yvonne thats right. Thank you. More lines coming through from that presser in hong kong. Expanding the travel alert and extending the quarantine as soon as today. David almost a direct correlation to your earnings line as well. Have a look at this. We have been tracking this metric for the past several weeks. It initially started and we were looking at this. Airline earnings forecast simply on asia and as the hotspots and europehe u. S. And precisely on the back of carrie lams comment on barriers to entry and exit as well, your earnings expectations pretty much for the airlines industry, regardless where you look, asia, europe, full service have been slashed. In asia down 50 . The latest downward revisions being reflected in north american airlines, eps. There we go, 32 now. The industry looks quite bleak. Yvonne joining us now on the line from Hong Kong John woods, the chief Investment Officer at credit suisse. John, today it seems like the mood better in asia. Is it still too early to say we are out of the woods . Actually. Too early, the knife is still falling. It is still very much a derisking and diversification story, at least from the advice and guidance of were sharing with clients. There is still substantial uncertainty, as you made clear in your comments. For as long as that exists and for as long as i think that we see concern over the policy reactions, it is far too soon to call an end to this crisis. Although i would make one point. Increasingly, i am of the view that the worst of the damage is behind us. David what makes you say that . The well, just simply by scale and scope of the drawdown we are seeing so far in, for exfo, the United States. Example, the United States. The volatility we have seen over the last week or so happens only once or twice in a generation. The drawdown, for example, last night suggests to me the markets are pricing in very rapidly the damage both at the economic levels and at the broad Public Health levels that this supply shock and this rapidly evolving demand shock is having. How low the markets will actually fall, im less certain. There is a lack of clarity on the potential damage that exists. Im of the view that the drawdown we have seen thus far is probably has the worst behind us. Yvonne honestly, we saw quite of bit centralbank action. Some are sticking their nexcks an emergency move on sunday and said that it failed. Does that resonate with you anyway, or was it enough to stabilize the liquidity issues we have been seeing . John you are absolutely right. There was a funding squeeze globally. Essentially disruption caused by the virus impacted global payments. Themore broadly functioning of trade in business around supply chains. We sell multiple corporate and the United States seeing the aawdown this was substantial amount in the bank markets. As a consequence we saw liquidity tighten. The fed was obliged to step in. Whilst the Market Reaction to the easing and q. E. May not have been particular positive, nevertheless, the stress has been addressed actually in a profoundly meaningful life. Meaningful way. And just to add. In certain ways and in certain levels f of scale and scope Central Banks all around the world will be essentially offering liquidity provisions. [indiscernible] yvonne stick around. We have more from john would joining us after the break joining us after the break. He said the worst of the selloff may be behind us. Lets look at the first word news. Ls collapse continues as the coronavirus looks to trigger the. Most severe price contraction on record as saudide felt 12 armaco says it is very comfortable with brent crude at 30 a barrel. Supertanker prices are soaring as Oil Companies pay skyhigh prices for storage. The fallout from the virus is probably lower forecast for china. Do 6 , the first contraction on record. It showed an acrosstheboard slump in manufacturing, retail sales in the first two months of the year. Macquarrie and it would require an unprecedented rebound for china to achieve this years growth targets. And australia is preparing to ramp up fiscal to miss again days after announcing its package worth 10 billion u. S. Dollars. The finance minister told sky the government must do more to help the Business World and save jobs. However, he added a grim reality that some companies will be forced to close and that workers may lose their livelihoods. Coronavirus is being hailed as a lesson to other nations. The citys has been recalled as the expense of the sars outbreak in 2003. The government legally imposed social distancing and ordering officials to work from home. Many people wore masks from the very beginning. Global news 24 hours a day on air and on quicktake by bloomberg powered by more than 2700 journalists and analysts in more than 120 countries. This is bloomberg. David thank you so much. Some further updates here out of hong kong. Carrie lam of course speaking. If you are hoping the kids will resume school on schedule, on april 20, carrie lam says it is unlikely for all school to resume by that date. s also offering a few more information on terms of flights and repatriation. Yvonne so, that is the big news when it comes to school. Sks, they are to ma offering 67,000 now carrie lam is saying impossible for all hong kong schools to resume by april 20. This is the second or third time they have extended the deadline. Fluid that deadline can be given how we are seeing trouble resurgence expanding in hong kong where they just said they are going to be, have more travel extrusions to everyone exchina. David we will get you more updates on this press conference. Coming up in the show we are talking crisis cut. The feds mercy cuts. Easing across the world as global recession looms large. Yvonne they have done little to calm markets. Well have more from credit suisses john woods next. This is bloomberg. Lines some more breaking when it comes to moves in the fx markets. The indonesia rupee are dropping past 50,000 against the dollar, the first time weve seen that low since two years ago. The bank of indonesia ahead of their meeting this week. David Central Banks pretty much on red alert, given what is happening. Asiapacific went into crisis mode. Rupiah in reaction to what the fed announced early monday morning, the cuts kicking off a fresh wave of policy coordination in the face of mounting economic risk. We bring our chief Asia Economic correspondent. These guysough what are trying to achieve and how we can measure their success. One aspect of asia is that some Central Banks have room to cut the benchmark rate. Youve seen it in new zealand and australia and in south korea and elsewhere. Those have room to cut their rates are doing it. They all know that is not the story, that is not going to turn around what is happening. The real story that is going on with Central Banks as they are trying to stop markets from seizing up, and trying to ensure there is enough money and in particular keeping an eye on dollar costs. It is important to have a look at the new topline arrangements the fed has set up with four or five other Central Banks. There are not any emerging Central Banks but it speaks to the idea that the Central Banks, no, they do not have, a magic wand but what they can fix i. E. , keep market from seizing up they are going hard at. Yvonne it is more at the financial plumbing then arresting the economic decline. More needs to be done, i guess. Terms of the in real economic damage that has been perpetrated and the stimulus needed. To be clear, the ultimate Circuit Breaker is containing the virus. An economic authorities cannot do much beyond that but beyond that there will have to be a lot more fiscal spending, and we are talking about not necessarily stimulates to build roads and bridges but helping businesses getting credit lengthen helping workers in the retail sector, that is a big story, story in hong kong for much of the past year, a story going global were Airline Workers are getting laid off, workers in hotels and restaurants are getting laid off in france and new york. That will cost money to support the consumption and Services Parts of the economy. David can they do more . What else can they do . You mean, governments . They can do a lot more to Central Banks are the lender of last resort. We can argue about how efficient lower Interest Rates are in negative Interest Rates are, of course, that is legitimate but they can do a lot to help sentiment at the margins. People are saying the steps the fed have taken are having an impact on the repo and the treasury markets in the u. S. Leftdo have some efficacy in terms of what they have now the government, of course, there has never been a better time to borrow. Look at the cost of borrowing around the world, there might be record levels of debt, it is a good time to get out there and spend it where it is needed now. The big question becomes how do you spend it . Do you leave another mountain of debt for future generations are do you leave these are the big questions. Yvonne love that story you wrote a couple of days ago about the longlasting effects from the coronavirus, that perhaps will stay permanent after all of this subsides. What do think is going to change the most . Enda this is a big feat ure. There will be a lot of microeconomic changes. Forget about the macro, there will be microchanges. One of the things that people are talking about is the work from home system. Its proven to be more popular than expected. People are enjoying the option for working from home. Not necessarily if you work in tv. Yvonne we have done it, too. Enda also, Health Spending print we spent a lot of time worrying about name your issue, tariffs, the impact of technology and along came a pandemic to cause the first global recession since the 2000 a crisis. Experts are saying that there will be lower spending on health care by governments and by companies. Were all going to stock up and will have a stock pile of fast masks going for facemasks going for it. Yvonne hong kong was a big example of that since sars. Part of the success of containing the virus here. Bloomberg chief asia correspondent, enda currant. Later today we will speak to mervyn king, the former governor of the bank of england at 6 p. M. In hong kong, 10 00 a. M. U. K. Time. David ok, lets bring back john woods from credit suisse. John, a lot of comparisons are being made to the Global Financial crisis. Back then, the trigger for the Global Economy to freeze up credit you had a crunch. This times it seems like governments themselves, because it seems that global economies, the Global Economy is freezing. On its own. My question is, is there a risk that markets are using the Global Financial crisis order of events and applying that here, and then the rest is coming up with the wrong conclusions . David, i think absolutely your comparison with the 2008 is correct. We are in a trough both in economic and market terms. Of a similar magnitude in intensity to that we witnessed in 2008. I actually think edit economic level the impact is worse. I actually think that the shock cost by the supply shock and demand shock caused by the, uh, virus and compounded by the oil greatern presents a far challenge to the Global Economy. Weve already seen particular from china the economic damage this is creating. Why i think financial have sold off so aggressively in the last couple weeks is because the market is afraid that the combined impacts of the oil shock and the virus shock could feed over to the financial space and exert additional pressure on perhaps less solvent and less robust financial institutions. And to me, that transmission risk is eminently logical and sensible. More broadly, we are seeing a confluence of concerns which is capitulation we have been seeing in equity markets is so intense and so apparent. Yvonne john, thakn you. Thank you. Just want to break some live news. Ohio saying they are going to order polls close tomorrow despite this court ruling, after we learned that in ohio judge rejected the vote delay putting the primaries and chaos. Very topsyturvy democratic president ial contest and now we are seeing it is being up ended again by the coronavirus. The ohio state, to order polls close tomorrow. Plenty more ahead. This is bloomberg. Yvonne your latest business headlines. As the coronavirus continues to rattle markets. The outlook for lenders has been changed from stable to negative citing the growing strain on the operating environment affect risk from the ongoing disruption. Cut as adds the feds pressure on the banks probability. To adviseechat clients. It accelerated the approval and design process last week and will roll out the service for employees by the end of the month. Ubs would be the first global bring to reach out to wechat which has one billion users across the whole of china. David Southeast Asia is very much in focus right now. Sub of the market, the sub, sector if you will. Of the emerging markets is really in bad shape. Vietnam thats about it come oinline. Suffice to say a lot of these indices have been draw down substantially. The philippines if the philippines was actually open you would see a similar draw down there as well. Very quickly, talking about Southeast Asia, you will not want to miss this interview. The Philippine Central Bank governor Benjamin Diokno is com ing up on the show in a couple of minutes. Send you questions in. Thats coming up. 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 ] 10 29 a. M. In hong kong, 10 29 p. M. In new york. The International Monetary fund is ready to tapas trillion dollar lending capacity to help nations tackle the coronavirus. Theyre calling for global coordination for monetary, fiscal and regulatory support as markets and the World Economy working we can further. There is still much to do. World economy weakens further. There is still much to do. President trumps comments are our previous dramatic turn from previous statements where he downplayed the impact. He is now say no one should gather in groups of more than 10 people. The philippines have extended its virus lockdown to a whole of the main island with about 60 Million People confined to their homes. Until atre will last least april 12. The manila stockings change is suspending trade until Tuesday Morning until further notice. Aysia is imposing government offices will be closed wednesday for two weeks until the end of the month. Massrime minister said all gatherings are banned and only essential services are allowed to continue. Malaysians are also banned from traveling abroad. Global news 24 hours a day and quick takeby by bloomberg. Lets do a market check right now. It seems that things have stabilized a little bit but we are still racing some of the earlier gains we saw. The likes of malaysia are still down 3 . We mentioned how it is on a two week lockdown. We continue to watch the euro and u. S. Futures are up before. We are seeing some wti, jp morgan is coming on in the next couple of minutes. The revised of their forecast in the next one to. Last 24 hours. And 27 versus the second quarter. 17 in the second quarter. Be a that should not record low, we had quite low levels back into thousand eight. Low 20s. 17 is quite low. I imagine what that stems to surrounding a lot of the oil producers. You fall below a certain level and that conversation becomes relevant. We will talk about that when we get there. This is your top story. Global Central Banks are pulling themselves lower. This has prompted a lot of Central Banks not just in asia but especially to either bring forward meetings or deliver deeper cuts, more liquidity injections and promises to do more easing. Lets have a look at this developing story. The political turmoil is continuing after the former Prime Minister ledge of his alliance losing power. He spoke to bloomberg in this exclusive interview. Our numbers are being they arebecause offering a lot to our members. If you dont have the majority i dont think the confidence will resolve the problem. He lost his popularity. Campaignings been to get me to resign earlier. His boys say nasty things about me. Quite violentre in their words to describe me. You were a longtime banker. He was a whether longtime banker. Do you think he could live to the country out of the malaise . Banks manage money by lending money. Countries spend money. I hope you can do something. How do you feel that youre no longer in power . Are you happier . How are you filling up your days . When i sat down into thousand three, i hope to be able to retire. Of course, i was not allowed to retire. Now i can retire. The disease causes me inability to move around freely. Otherwise, i am happy as i am. I dont wish to be Prime Minister. I thought i might enjoy life a little bit. Our exclusives conversation with the former malaysian Prime Minister. In the philippines kindness libyans, Central Banks will in the philippines, central. Anks will move governor ben, good morning, nesta have you on the program. Nice to have you on the program. Thank you for making time for us. Your meeting is soon. What will change between now and then . Originally, our plan was to cut by 25 basis points. New zealand, 75 basin points. Th korea, 50 basis points new zealand, 75 basis points. South korea, 50 basis points. We will cut by 50 basis points. How much monetary space does the central bank have to whether a possible fallout . Are you starting to look at other types of tools, governor . Of spacell have a lot from 2018. We mover this by 100 basis points. This we moved this by 100 basis points. We had not only a lot of monetized space but fiscal space. Point, after a onedinated move that is government will be really effective. We have a very long gdp ratio. 50 and flowing. David you are also the regulator for the Banking Sector. We understand there is a lockdown not just in manila, it spread to the island. The Banking Sector is going to remain open. They shuto you platforms to trade currency bonds. I am just wondering, have you heard from your banks any concerns about how their planning to offer Currency Services to their clients if they cant trade . There has been chatter about that. Naturally, there is some kind of patient some conversation about that. They will probably fix it by tomorrow. The Brokers Group has appealed for the markets to reopen. Do you think with the government did was a sensible move . Should markets stay open . Governor the delay is to this is to delay the spread of the virus. Geographically, the philippines are three major islands. This has been shut down. I think it is working. The concern is to limit the move of people. The private sector has a little limit the movement of people. A littlete sector has but of movement. The important thing is safety first. David a few days ago, admittedly this is a moving target. The assessment on Economic Growth and what the worst case may be and who knows, you mentioned a growth rate of 6 . Is that a target or an aspiration . Governor i think that is a realistic target. We go to a slow down by 1 . Reasonable as a target. We can go at this rate given the fundamentals for this year in the next two years. Yvonne what steps do you think are needed to mitigate the negative impact from this closure . How much help is needed for the most vulnerable sectors . Governor we are looking at the supply chains. Italy is not a big part of our gdp. That is the least affected of the coronavirus concern. We will have to look at the safety of our home people. We will have to look at the earliest resolution. Luckily we are surrounded by water. We have to look after the millions of people within the zone. There are 12 deaths at the moment. David final question, the statement said you are not showing any symptoms. I hope you dont mind asking how you are feeling. Have you been tested . Governor i have been tested. No results yet. It is being processed. I feel well. Perfectly well. That is it. I am just waiting for the results. Yvonne stay safe, governor. Take you for joining us ahead of your meeting this week. That was the philippine central knok governor, benjamin djo joining us from manila. David we will be speaking to the president of the Stock Exchange. We will be asking him why they chose to shut the market down and when he things they might be able to reopen things. This is bloomberg. David welcome back to the show. Market uproar. Oil is the big trigger. It is getting muddled already. What are we doing . There is 30 on brent. Energy consumption is being hammered as governments are restricting Movement Like closing borders and banning travel. Joining from hong kong, scott, i understand that jp brent revised its forecast overnight. How are you thinking about the demand structure we are about to see . 36 this year and 35 next year. We think there will be an 3 for oilll of supplies and demand. Quarter. Out into next on averageent allow of 46. Low what will the world look like at 17 . I know that is worstcase. What needs to happen for us to get there . Is a time when the middle east will lower things to asian clients. That will be in 90 days. This would come off a low demand quarter, particularly in china. Then you will see that elsewhere in europe. Youre seeing all demand down. Maybe one Million Barrels per day yearoveryear. Assuming the virus clears out at some stage. We could see an increasingly reasonable recover demand. Yvonne when it comes to the oil and gas producers, i am sure this is like catching a falling knife. How are you playing this out right now . How are you facing your base Case Scenarios . Scott we reset our earnings recently. We backed up the oil price in 2009. In this part of the road, you the refining see in upstream Oil Companies. World, some of the of the chinese refiners, they are setting the oil price. I can sell at the equivalent of 40. That is why we are skewing a bit more positive. That call to go along, does that get stronger the further the Oil Price Falls . Last oilu look at the price collapses, you will get some inventory losses for these companies. The markets have kind of price that in. As long as it is stable around say oil price level, lets the costs,low then you just had a 50 decrease in your cost. That is why when you look back, the absolute share prices are born. Can talkdiumterm, we about 30 or 40. Oilnt see why the cost for changes in the longerterm. The Industry Needs at least 60 for a lot of these investments. You will see delays sanctioning the projects. Some of these oil equities are around 30 or 40. Quickly, do you think this relationship between the saudis and the russians are repairable . Yes. Saudi, they will break even around 40 or 50 and russia around 20 or 30. If this could go unsustainably, it would be in the interest of those involved. We appreciate your time. Yvonne the reserve bank of india took a number of liquidity measures on monday and has not rolled out a rate cut at its april meeting. Not ruling out any possibility. Take a decision but i did not rule out anything. More on this from the economy and policy reporter live. They have stopped short of saying they will cut rates. Are we headed there anyway . At think we are headed there. Growth will be impacted. My understanding from speaking to the senior official is once they lower the growth forecast first week of april, they will probably go for a rate cut. The market is expected a bigger than expected rate cut. 40 or 50 basis points. Perhaps even bigger than that. A sharper than expected rate cut might have an impact. Are saying is they will probably cut rates but they want to make the rate cuts more optimal. Would you say the r. B. I. Is being a little too reactive . Are they still behind the curve . That is the feeling within the market. The governor prided himself for being ahead of the the cut. This time, the market is feeling that given the global Central Banks have responded, the bank of india has been shy in cutting rates. Part of the reason is because the rupee has been falling to record those. Reason why they are not hunting rates is because they want to keep the rupee carriage rate alive. To cut rates and make the situation more complicated. I think theyre probably going to cut rates. They are well behind the curve in this one. Yvonne thank you. That was our reporter joining us out of mumbai. David futures are doing well. Not as well as they were earlier on. That is not even news these days. 6 . We close higher at the open. Have a look at where we are in the benchmark. Two days of losses. From theout 25 down peak dollaryen. There are over 80 new cases of the virus. The worst Case Scenario is 17. Yvonne looking at the treasury market, we continue to see the yield taking up higher. We have not seen going up higher. We are looking at what the next movement is for yields. It seems uncertain here. One is down, one is up. We saw a little bit of a breather yesterday. Now, that selloff in bonds. Coming up, the Philippine Stock Exchange president will be joining us in the next couple of minutes. Dont miss that interview. This is bloomberg. It is a most of the clock almost 11 00 in the morning in hong kong. I am david ingles. Yvonne i am yvonne man. Asian markets for for the six day. Australia is finally in the green. David pausing for Global Cooperation amidst the virus. A 7ealand launches billion stimulus. Yvonne President Trump does a uturn on the outbreak after downplaying the danger. He is telling americans it is bad. This is Bloomberg Markets asia. David welcome to the third hour of the program. It is only march. 2020 has been so long. Look where we are market wise. And two days ago, we signed a trade deal between the u. S. And the chinese. Trade deal, brexit, those things are out the door. David out the door. Doing this right now, with the exception of estrella, up 3 in that market. The rest of asia is doing quite badly. Places like Southeast Asia and vietnam are seeing substantial downsizing. Yields are up. That is a good thing. As far as the split on your benchmark, more losers than winners. This bit you see right here, all over the place as far as session highs. We are at the midpoint of your session right now. Up. Have australia , maybe 70 ofia sectors are on the way down. Yvonne the night is still falling but maybe we have seen the rest of this virus. Some you are seeing buying. David you would be a brave soul to come in right now. If you were a brave soul and you wanted to buy in the philippines, you can. The Stock Exchange is closed for the time being. The Stock Exchange suspended. To talk about that is the Philippine Stock Exchange. Why did you guys do it . They were trying to reopen the market. Public transportation is suspended and all of are closed. Unfortunately, the Capital Markets were not included in the extensions given by the Interagency Task force. We are working to have them consider their decision to give us permission to operate. Was it you manus was it a unanimous decision to shut things down . Ramon there was no decision on our part. It was a government mandate. It was announced last night. That is it. If youre given the chance to givenlate if we are the chance to articulate our position, we will do that at the closure. After the closure. That the it possible market reopens tomorrow . We are trying for the Philippine Stock Exchange, we have no problem opening. For therepared scenario. Are more concerned about is making sure the brokers are able to operate. We have to get exemptions for the brokers. A challenge tobe the operations. We are targeting for thursday. Yvonne what sort of reaction are you expecting when they open . Some in the Foreign Community may say there was some reputational damage. There may be some pent up selling pressure as well. How do you mitigate those . Ramon we have our initial Circuit Breaker. The i said, i never thought of the market was the cause for for the declining of the markets. David we will need to be clear on everything we just discussed here. As far as if you are allowed to open, is that a decision by the president . Ramon it will be a decision by in Interagency Task force charge of this quarantine and the covid19 crisis. Propositiontting a paper to them. Need exam dide we from travel. Ban david a lot of people that were in manila and you have the travel restrictions as well, we understand that you mentioned your business continuity, that is no problem as well. Ramon the trading itself is no problem. We can trade outside of the floor. We have problems to support the Brokers Back Office when they trade. I am guessing there might be a possibility that the reason you might not be able to reopen is because the employees cant actually get to work. Is that accurate . I would not say that was cause for not opening. For us, i talked to a lot of the brokers all morning. To handleis prepared the logistical issue of transporting their own employees to their offices. It is a question of getting a permit to let these people travel. That is because of a total home quarantine. Yvonne what is the message you want to get to the International Investment Committee Given this shut down . Ramon i want to assure them the plan is in place and i can operate. I think it was an oversight that the Capital Markets are not included in exemptions given by the Interagency Task force. They are including us. I believe they will listen to us and it will allow us to open hopefully at the latest by thursday. I appreciate your time. Thank you for joining us. On joining usn monz from manila. David lets talk about the markets again. Policymakers are intensifying their efforts to protect and respect economies from this pandemic. The fed took early emergency action. Central banks across the region and across the world are poised to follow if they havent already. Yvonne they expect asian authorities to pull on Fiscal Authority measures. Lets bring in our guest. Joining us out of singapore. Volatility, the credit crunch and the liquidity issues in the fixed income space. How are you viewing this at the moment . What is needed to stabilize the issue . Thank you for having me. At the moment, cash is definitely king. , you can see your credit markets shrink to a certain extent with regards to liquidity. To that extent, but Central Banks are doing by pumping liquidity into the markets, that should be helpful once the panic subsides. Like i said, i dont think Monetary Policy itself is sufficient given the fact that given that you given the fact that you have everyone shutting the doors right now. A lot of intermediary balance are shrinking. That they are instructing management not to do too much. At this point, Monetary Policy is going to continue. Lets hope that there is enough there. Us out off lifting this growth sump we are headed slump we are headed into, we are ready for it. At creditn you look spreads, have we gotten to a point when your risk managers and compliance guys are telling you to stare down your position until we figure out where the story goes . I cant comment about equities because i am not in that market. With regard to the income , not yet. I am speaking from a position that has our funds very diversified. This is where diversification comes through. You want a married of investments. We have local currency. Have dollar investments as well. The domestic markets stay very liquid. Indonesia has a lot of foreign investment. Domesticn markets are investor heavy. This environment where they are running out of equity markets, you actually get a sense that the equity has room to sell into that. That is the best part of that. Told to teareen down because of the locations in the market. Yvonne are you worried about the false . Faults. This is something that we are very weary of. That is something that is on the desks at all times. I am hoping to see more fiscal policies. Whether this is toward peoples at this juncture, you can go for traditional strategies anymore. Might have to ignore the fact that sovereign might be downgraded because of debt levels. David do any specific countries come to mind where on a normal basis you would say they are spending too much . Under the current circumstances, would you be more forgiving . Like indonesia, india and malaysia. Those are probably the three that come to mind with how much consolidation they have been trying to achieve on a fiscal deficit front. In this scenario, whether or not it is a combination of not having a choice to avoid doing it, youre probably a little more forgiving of them doing at this point. David thank you for coming into the program and making time. Linjing. The International Monetary fund is ready to tap its trillion dollar lending capacity to help nations tackle the coronavirus. The fund is calling for global coordinations, monetary, fiscal and regulatory. The fund says the 2009 financial crisis saw a g20 fiscal stimulus of 900 billion. They add there is so much to do. New zealand has announced a spending package to counter the Economic Impact of coronavirus including higher payments and wage subsidies for affected businesses. Finance minister Grant Robinson says the program is worth just over 70 billion billion u. S. Dollars. It represents 4 of gdp. The fallout from the virus is prompting lower forecasts for china. The economy make shrink 6 . The first such contraction on record. Data shows acrosstheboard slumps and contractions. Macquarrie says it would require an unprecedented move out of china. Powered by more than 27 hundred journalists and analysts in more than 120 countries. I am karina mitchell. This is bloomberg. Also, we look at the Luxury Property market in japan. They are facing pressure to reschedule the olympics in tokyo in 2020 President Trump in 2020. Trump ones that coronavirus could push the u. S. Into recession. This is bloomberg. David for the latest on the coronavirus yvonne for the latest on the coronavirus, people are seeing this uturn from President Trump. A shift in tone on how he views the virus. David a remarkable pivot from the language, the tone. The knowledge that the situation is bad and he warns that it could last several months. My administration ones that all americans including the young and healthy work to engage in schooling from home when possible. Avoid gathering in groups of more than 10 people. Avoid discretionary travel and avoid eating and drinking at bars, restaurants and public food courts. If we do a really good job, we will not only hold of the death down to a level that is much butr than the other way people are talking about july, august, Something Like that. David yvonne lets bring in jodi schneider. 180 from the president. What changed . The country got ahead of his rhetoric. Schools have closed, Major Companies have people working from home, people are not going to the cinema. It has been the Great American shut down. I think at this made him realize that if coming out and saying everything is ok was not going to work anymore. Perhaps he is also realizing ,hat he is seeing those numbers the death toll rising, the number of cases rising. This is a big shift for him. Just the other day he told people it will be ok, dont worry about it. Now he is shifting into a mode of mimicking what governors and mayors have been saying for the past few days in the u. S. The other thing that is interesting is so much of his rhetoric has been about the economy. Saying it is owing to be ok and are goingzing things to require some measures. This is the first time we heard from him that he is talking about the kinds of measures. Social distancing measures that companies and other governments, state and local governments have begun recommending. David there was also because between President Trump and other leaders coordinating response. Do we know what came out of it . They are looking at the out, it was tome do everything we can to contain this virus and deal with it. We dont know a lot of specifics at this point. We were told that shinzo abe had said they want to continue with point. Mpics at this some said he was given the goahead to do that. The other thing they were talking about is what to do about borders and how you try to control this. Most of these countries have begun closing their borders. Or, like the u. S. , not allowing certain people to fly from certain regions. Many people from European Countries were caught surprised by President Trumps announcement that they would stop allowing flights from europe into the country. They are trying to say lets talk before so that we know we are on the same page. It looks like that came out of that call. Yvonne thank you. That was jodi schneider. David lets talk about the fallout in Southeast Asia. Youre getting many hotspots creeping up. They are stepping up restrictions on Peoples Movement, Mass Gatherings, closing schools and businesses in an attempt to keep the inspection curves in certain places. We have our guests with us. Lets start in manila. This is the first or second day of the lockdown. I believe we got further clarification from the president. What kind of economic fallout are we talking about . This is in the main region of wuhan. The economic fallout could be much more intense than initially expected. We are talking about taking domestic consumption that has driven philippine Economic Growth. Youre talking about the philippines biggest region. Home,me people staying at most closed. Have beenlishments closed today because a lot of their workers have been unable to report to work. A lot of this is due to the unclear guidelines of the measures announced yesterday. They dont know how to certify their workers. Even if they are certified, how they would get to work without public transport. The joke is that it is not work from home but walk from home is the only option. For the central bank is signaling is a deeper rate cut in its meeting on thursday and the finance department has also announced a stainless package of 530 million. This will help the taurus and stimulus package of 530 million. This will help the tourist and travel industries. It is not as restrictive as the lockdown that china briefly into limited. It is more of a restriction of Peoples Movement to limit the spread of the virus. That means visitors banned from entering the country and residents are banned from traveling overseas. Schools and Business Premises will be shut but the market is that supply the daily needs will be open. The Stock Exchange and Capital Markets will operate as usual. David how does it feel on the ground . Ofright now, there was a lot panic buying in supermarkets. People were uncertain of what sort of measures the government was going to introduce. Now that there has been a restriction, i think people should be coming down a little. Would not be surprised if the panic buying in the supermarket continues. David toilet paper again. Ubs is allowing china to use their Popular Service to advise clients. It accelerated the approval and compliance pocked process last week. Ubs would be the First Global Bank to reach out to we chat which has a billion users across the whole of china. The infection has handed tencent millions of new gamers. Tencent gained 25 billion of market value before the global stock hit home. The coronavirus is yet another blow for cathay pacific, already under pressure after months of protest in hong kong. It lost more than 250 million u. S. Dollars in february alone. Slumped andmbers the loss is more than cafes cathays net income for all of last year. They are offering a skeleton flight service. We have a couple min is left in the morning session. It has been not good but not bad. The markets were really topsyturvy. For tens of 1 as we had to the break. 4 as we go to the break. This is one of the better performing indices as far as asia. Is. 3 down. I will let you act on that information on your own. Index ise hang seng trading below book value for only the second time on record. 30 minutes left in hong kong. This is bloomberg. It is a pretty gloomy day in hong kong but at least we are seeing the hang seng up. 8 . We are seeing some green on some markets in the region. That has not lasted very long during this Tuesday Morning. Lamsg news from carrie executive was that it was impossible for all of hong kong to resume by april 20. That back to school they could be pushed back again. The city also tightened its restriction and quarantine orders for everyone. Spend more time with your family. Ase in case your kids are driving you nuts, find a way to love them more. They will appreciate it later on. Europe remains the focus of infection with the eu trying unified approaches. Emmanuel macron has closed colleges, bars and cafes and says he will work with other leaders to attack the virus. The contempt you lateral decisions condemned unilateral decisions. We are at war. A health war. Not against an army or another nation but the enemy is there, invisible and moving forward. That will affect our daytoday way of life. Malaysia is imposing sweeping curbs. Businesses, schools and offices will be closed until the end of the month. All Mass Gatherings are banned and only essential services are allowed to continue. Malaysians are banned from traveling abroad. Have 16 Million People confined to their homes in luzon. Is manila Stock Exchange suspending training from Tuesday Morning until further notice. To rampa is preparing up fiscal stimulus just days after announcing a support package worth more than 10 billion u. S. Dollars. The government must do more to help. He added that it is both a grim reality and that some companies will be forced to close and some workers will lose their livelihood. Global news on air and uncle take by bloomberg, powered by more than 2700 journalists and analysts. I am karina mitchell. This is bloomberg. David a taste of your markets headed into the lunch break. The nikkei 225 is ok. Who would have thought we would be at 17,000 right now . 271 on the hang seng index. This one is moving against the grain. Look at where we are ahead of the open over in india where the central bank came out. 1. 6 in europe futures up 1. 6 in europe futures. Thehey were disappointed by lack of rate cuts. About crude prices. That has been climbing back and gaining some losses. They finish above 130 per barrel. Above 30 per barrel. Lets send it over to stephen. Talk to us. How is the market looking now . 30, cheaper expensive . The market is reacting cheap or expensive . That is pretty cheap. States is restricting travel. Flights are getting canceled. People are not traveling internationally, orders are getting closed. They are on lockdown for about two weeks. This is having an enormous impact on oil and it is pushing down prices. Today, we are a little more stable. We are around 30. Just months ago we were near 60 or 70. People were talking about 100 barrels of oil. Yvonne we heard from saudi aramco saying it is sticking with its plan to ramp up production. What is the rationale . They want to capture as much market share as possible. They said that 30 brent oil is good for us. We can pump. If it goes below that level, that is fine. We wont be making profit on it but we can sell more oil. They want to cut out other competitors. Pressure is pumping as much. Saudi arabia and russia are trying to stop the competitors and undercut them in the United States and other markets by flooding it with tons of oil. It is creating not only a dementia but a supply shock. Mess in thea market. There are a lot more bearish factors then bullish ones. David thank you so much. That was stephen stapczynski. A quick check of the latest business flash headlines. There is a downgrade in the wake of the fed rate cut and as the coronavirus continues to rattle markets. Meunier said that studies on the growing strain have started. The emergency cut raises the pressure on banks profitability. Global if he asian is one of the Biggest Industries hit by the outbreak. Aviation is one of the Biggest Industries hit by the outbreak. They asked for 60 billion in government support. Virgin atlantic predicts that some will go bust. The situation is simply not sustainable. Lets talk about boeing. The company is adding his voice to the Aviation Industry call for help, asking congress for shortterm aid for itself, suppliers and customers. The travel industry weakens by the day. Boeing is trying to avoid layoffs and Collateral Damage amid the coronavirus, adding to the already quiet already steep problems from the 737 max. Aviation is facing its sharpest downturn since 9 11. Work on underground operations at this mine is continuing but progress is slowing. It is still too early to determine the impact of those restrictions. Delays at the mine could cost almost 2 billion. As malaysia grapples with the outbreak, onerus of the other things that has gripped asia is we spoke to the former Prime Minister in an inclusive interview. Our numbers are being reduced they are offering a lot of goodies to our members. Some of them crossed over. Now we may not have the majority. If we dont have the majority in i dont think we will resolve the problem. You have been blocked into pass on power. Why is that . He has lost his popularity. Campaignings been to get me to resign earlier. He even said nasty things about me. Of them are quite violent in their words. He is a former banker. Any news on whether he will be able to lift the country out of the malaise . Managing a bank is different from managing a company. Thanks managed by lending money. Behave by spending money. Different type of work. Something can do about the recovery. How yvonne are you feeling that you are no longer empower yvonne how are you feeling now that youre no longer empower . Are you happier . How are you filling your days . 2003, ii sat down in was hoping to be able to retire. I was not able. Retire. N i was unable to walk around disease. Cause of the otherwise, i am happy. I dont wish to become Prime Minister again. I thought i might try to enjoy life a little bit. That was our exclusive formerew with the malaysian Prime Minister. Lets see if we have the stomach for these gyrations. The market will open up five minutes from now. We will be back to take you through the initial Market Action there. Futures are pointing up. This is bloomberg. Welcome back, lets get you a quick check of the latest business flash headlines. Screening people for the coronavirus. Website stopped applications. The tests were initially only open in northern california. Aesident trump promised digital testing platform. The coronavirus continues to hammer demand for tickets. Domestic capacity is down about 60 in the same time. Further cuts may follow. Qantas says the move means our grounding of 150 of its fleet of planes. David david apple has been amount. Cord regulators say that the company conspired with wholesalers to thwart competition for noniphone products such as mac computers. Google was fined for setting opaque rules on its ad platform. Havellico has been said to won the backing of the government. They asked to pay off their debts over the next two decades. Pay 19y be forced to billion dollars by todays set date. The government fears that a bankruptcy mayo hurt the job sector. David a long list of companies shutting down capacity. We are talking about the Canadian Imperial Bank of commerce. They are temporary closing 206 Banking Sectors. Operateocations will under modified hours. The reports are proactive, precautionary measures to help to stop the spread of this virus. Companies that are doing shifts or reducing their operating hours in light of this virus outbreak. What we saw over the last couple of hours, we heard from local media about the kentucky derby. The city opera house is shutting shows as well. Sidney opera house is shutting down shows as well. David schools are banning clouds. Markets in india are now open. Lets go over to mumbai. Futures are pointing up. How are we doing . I reckon this is some relief to traders considering we are opening with gains of as much as 1 . Of futures indicated gains well over 4 . That is not the case right now. Green is still positive. M this is for the banking index as well. As far as the indian rupee is concerned, that continues to weaken against the u. S. Dollar. We are going to keep an eye on the kind of outflows that do that. We are looking at some amount of positivity. We are already giving of those gains as we speak. Gains as we those speak now. David what are we doing . Do we had to the break . The markets fell so hard. The hardest hit are in japan. A Major Economic hit. Officials are facing pressure to make a call on tokyo 2020, the olympics. A call coming up next. This is bloomberg. Almost every major sport has been shut down because of the coronavirus. Canceling the olympics will be on the agenda when the board meets later today. David such a move would spell severe hardship for businesses in japan banking on this. Assess engle traveled to the abenomics Economic Impact. This is what a northern japanese ski resort looks and sounds like under a state of emergency. This is usually teeming with lateseason skiers and snowboarders, today, a blue sky day but completely empty. Great for practicing wide turns on fluffy powder. This is devastating for local businesses which get the bulk of their annual sales from the Winter Sports season. They said if the coronavirus it will drop to 50 . Cancellations started flying in. We expect to be down in march by at least 60 . It is a tough table to get here. With outbreak concerns and quarantine threats, the outlook at this point looks bleak. The fear is palpable. I am concerned. I think people will be reluctant to travel. It has affected the weather thes because we are Winter Business because we are getting bookings for next winter. No business is coming in. It is one of the toughest environments this place has seen. Combined with one of the worst winter snowpacks on record, it is also threatening the summer Whitewater Rafting season. Tokyo 2020if the summer olympics are asked. Aret is looking quite axed. It is looking quite bad. That could spell a slowdown in what has been japans hottest property market. Slice wealthy, wealthy carve a slice of asias aspen for now. Lets bring in our next guest. The Luxury Property developer with investors here. Thank you so much for joining us. Hokkaido is handling the largest number of infections in the country of japan. What are you expecting in terms of tourism and business . The season started quite well. This started really well and then ended abruptly. A lot of people canceled. March is a disaster. We have seen drops and reservations and cancellations everywhere. Hotels are empty. Singledigit occupancy. The situation right now is very bad but overruled until the third week of february. This is a place that banks on the winter. Half the year, if youre lucky, you get a lot of tourist flow. We couple of months are a couple of months into the season, have you guys written off this year . There is always a bad year every 10 years. The last one was fukushima almost 10 years ago. We are probably going to lose money. We will just have to stay strong and hope the situation gets back as quickly as possible. I dont know what will happen with the olympics. It becomes very unlikely it will happen. Summer is more of a japanese tourist destination. We are hoping to get travelers tong to al qaeda going kkaido to visit this island. But it is a bad year. It is a bad year, unfortunately. It is bad for hotels and activity centers. Yvonne you just started the opening sales of your sales in your property in hana zona. How are transactions doing so far . What is the outlook . Competing with them, we are neighbors. We will reach our target by early february. We reached our target by early february. Sales have been good. The fundamentals are good. I think the project is great, the location is amazing. We will reach out in the summer when people are back in a positive mood. But i have been watching your program all morning and i have not seen any positive news so far. We have to stick around and wait until gets back to a better world. Have land prices gone down . Are you thinking of land banking and taking advantage of this crisis . I am pretty sure there are some pretty astute investors who are waiting for prices to come down. There are definitely good bargains to make. We have not dropped our price because we are confident. We are just waiting until the market recovers. Be goodll definitely opportunities for the right investors. David just to be clear, this fullyt project is not constructed because of the temporary halt in sales. Will you run into cash flow issues . Know, we are fully funded. We aret have no, fully funded there. We dont have any problems. People want to have their dream houses by us. We are discussing a couple of brands right now and discussions of the ongoing. But we arere on hold delayanning to construction or anything else. We are going ahead. We believe the fundamentals are great. Especially at a time where everybody is scared in big cities like hong kong, singapore and the rest of asia. A lot of people have come to work and are willing to plan to have a holiday home where the air is pure and fresh and there is no pollution. We are confident in the fund metals. Fundamentals. Yvonne any contingency plans youre are making right now . Far as im concerned, i am selfquarantining in hong kong because i have no choice. Obviously, we are always shutting down our restaurants sometime in april. We will have to do this earlier than usual. We will make sure that the locals can be fed. The rest will be shut down. I am not too sure about the hotel right now. It would depend on the bookings. We normally close in may and you to and june to do and june to may do renovations. If we have to shut it down for the summer, we might. Yvonne thank you so much. Good luck to you. Yvonne thank you for your time. Joining us from hong kong. David we are headed into the hong kong lunch break. Markets are down across the equity markets. Korea is the want to watch. U. S. Futures are up. Europe is looking shaky, not as bad as yesterday. Thank you for joining us. 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. This is bloomberg daybreak middle east. Our top stories this morning. Frenchwar, how describes the countrys war with the coronavirus as the e. U. Prepares to close borders. President trump markedly changes tone on the infections, warning it could last for months and could drive the u. S. Into recession. After the worst day on wall street since 1987, u. S. Equity utures are higher but asian stocks are broadly down. We have the latest. Saudi aramco says it will keep flooding the market with historic levels of oil at leas