Transcripts For BLOOMBERG Bloomberg Markets Asia 20240713

30 in the u. S. In the second quarter. It is looking to be pretty dire right now. The nikkei seems to be the outlier given that they were closed on friday. Haslinda taking a look at where we are right now. We talk about how we are down 3 , the selloff making chinese stocks pretty cheap. At least 20 low the 10 year average. Sti down about 70 . Singapore allies, that stock is slumping after canceling 90 of capacity. Year to date, down about 33 . Crude currently down about 1 on in termsof a 23 slide of crude prices just last week. 1500, way off from what we were expecting late last year, inching toward 1800. Yvonne lets get more context with our Bloomberg Markets coag or, david ingles coanchor, david ingles. He is at home. What stood out to you . Boj firsthad the expanding more than it was originally planning. New zealand with the big announcement this morning that they are also planning to undertake some sort of qe as well. Australia has also widened the scope of its bond buying operations. I know we have been banging on about this for several weeks now. It is the same story though, that there is just a shortage of dollars out there. You look at some of these metrics, the indicators of dollar shortages seems to be still pointing up. In other words, we will still be here for the time being. Moving forward still over the short term and it perhaps means as well that the dollar index will reach we saw back in early 2000s as well. Until the piping is fixed and some of the liquidity injections and some of the eligible banks pass on that liquidity, we will be here for the foreseeable future. Start i guess once we trading on fundamentals, they will look at the evaluations and they are just getting cheaper. David that is true. What is happening, with the steepening curve, nationwide self isolation, australia with news over the weekend, a big part of australia also shutting down. Markets are still trying to figure out how deep it gets and how far into the future we now have to extrapolate the recovery. Asia, for the First Time Since , Global Financial crisis haslinda more and more market in fair territory. Is this a good entry point for buyers . David no. It is not time for a shameless plug. You will see a function, but your screen. First, the problem will come up there when you run that. How quickly markets tend to recover after things like diseases. It is worth noting, for what is happening right now, i cant remember the last time we had ath in outbreak and also consequential sort of recession in the Global Economy. If history is any guide, you look at the s p 500, you go back to 1920. 30 bear markets. , 20 down from the peak. We were positive for the next 12 months. There is no precedent for what we are looking at right now, at least in recent market history. Haslinda thank you so much. The passage of the u. S. Stimulus bill could be delayed after Senate Democrats blocked Mitch Mcconnells rescue plan. That raises the question of whether or not the package can be enacted monday as planned. Lets get more from stephen engle. What is the hold up . There were a lot of challenges in the United States. Containing the outbreak and getting people to adhere to the orders and recommendations from all of the states that have put out those orders. One in eight americans now in several states have been ordered to stay home. Now, containing the economic impact. Nextnearly 2 trillion stimulus package has hit a roadblock. It does not mean it will fail. Mitch mcconnell is trying to have a passage by monday. Right now, nancy pelosi and other democrats have blocked it. It was a procedural vote to move it forward. There is some partisanship going on, some assurances on accountability for largely the 500 billion that would be put toward rescuing Companies Including of course the muchbattered airline set. We are seeing partisanship already going back and forth at a time when Many Americans are calling for bipartisanship. We are seeing Mitch Mcconnell lashing out at pelosi and Chuck Schumer, the democratic leader. The markets are already reacting to this average is nonsense, is what Mitch Mcconnell said. However, Chuck Schumer battled back and complained the bill was being too partisan by the republicans and includes a large Corporate Bailout with insufficient oversight. Said, one in, as i eight americans, 80plus million, have been ordered to stay home in eight different states. New york city alone as were then 9000 cases. Agreed to theas state of emergency in three different states. Yvonne focusing on europe now, we heard the german chancellor Angela Merkel is in quarantine. Her government also preparing for an unprecedented rescue funds. So germany, they are also joining in on a fiscal fight. Angela merkel has put herself into isolation. She is still at full capacity of her government of course. However, her doctor did test positive and he had given her immunization. She has not necessarily tested positive but she is in isolation. The german rescue package may borrow up to 350 billion euros in an unprecedented financing plan. The first 150 billion euros in the supplemental budget is expected to be approved by monday european time. Germany, along with other european countries. Italy, spain, and france. Weekendd spain over the saw 2000 more people succumb to this illness. We are seeing italy on a nationwide lockdown. U. K. , Boris Johnson a little impatient with people congregating. He is saying they need to perhaps take tougher measures to prevent people from ignoring his recommendations to not congregate. Thank you for the update. Lets get the first word news with su keenan in new york. Policymakers in china expect the economy to swiftly rebound in the coming quarter. Alsodeputy governor repeated earlier pledges to keep theit growth stable and central Bank Targeted easing program. Historic slumpan last month as the virus hit hard. Early trade data for south korea this month shows surprising resilience even as the coronavirus locks down vast parts of demand. Exports in the first 20 days of march rose 10 from a year ago. The spread of infection is slowing in south korea but the economic fallout they worsen as the pandemic hits more of their trading partners. There are increasing signs that the Tokyo Olympic games may be postponed because of the coronavirus. Prime minister shinzo abe said that the event should be suspended if it is not possible to ensure 100 safety. His comments marked a dramatic change in attitude. Until now, he is resisting calls will y, and Canada Canada is the first nation to say that it will not send a team to tokyo even if the nations go even if the game goes ahead. The worst earthquake to hit croatia in years is hindering efforts to fight the coronavirus. Mondaythquake hit zagreb morning. Most residents had been ordered to stay indoors because of the virus. Beentalities have reported. They are finding a way to shelter people who are displaced. Global news 24 hours a day on air and on quicktake by bloomberg, powered by more than 2700 journalists and analysts in over 120 countries. Im a su keenan. This is bloomberg. Hsbcs fred next, newman joins us. He says the dollar shortage is manageable and sees activity in china back to normal by the end of april. This is bloomberg. I noticed that people using the word recession. I think this is not the right vocabulary. A i think it will probably be recession when all is said and done. Declines of that dude, they are fully discounting a recession. I do fear that is where we are headed. We are in a recession. People need to realize that is certainly the situation youre in. It will almost with near certain to be one of the worst recessions in peacetime. Empire state you factoring survey, recession. Philadelphia fed manufacturing survey, also recession. I fear we are not understanding the depths of the impact. Yvonne joining us now is brett newman, hsbc cohead of Asian Economic Research the debate has been, are we going to see a recession or just how deep the recession will be . Industrial profits, pmis and europe, the u. S. Jobs report. I wonder what will be key to focus on next and how bad it will get . Fred this is really the first week we really get concrete data coming out of western economies, showing us the first sign of how bad things can get the flash pmis can be very important, indicators like new orders in the u. S. , europe, and japan. Initial claim in the u. S. , if very good indicator at the best of times. Probably a big jump in the first week after the u. S. Shut down with increases in Unemployment Insurance claim files. That is not the full picture. Recession seems very likely at this point, with most economies halting activity. Is question is just how long it going to last . Yvonne we have seen rate cuts, qe, fiscal packages. Yet they are not convinced that it is enough to help the real economy. Do you agree that we are not doing enough to keep businesses and consumers afloat and it is mostly about reducing Financial Stress in the market . Fred actually, you have to give some policymakers some credit. They are pulling out all the stops especially on the monetary side. Last week, 39 rate cuts. This week, rbc announced qe. There are support measures coming through from Central Banks. I think they have learned from the Global Financial crisis to be really quick out of the gate to support markets. We cannot really judge the success of the reaction. Purity looking at equity indices. Cansuccess is whether we ring fence financial systems, make sure there is no contagion of a no stress developing. At this point, it still looks as if they are on the ball to prevent broader Financial Stress. The longer the recession, obviously, the order that will be. The harder that will be. Haslinda there is a credit crunch. That is why the dollar is up to the moon. Where do we go from here . Fred that is right. There is signs of dollar shortages. Especially if you look at cross trading against the dollar in recent dates. The first two, weeks of the spreading of the epidemic, you have reasonably range bound Exchange Rates. Now the Exchange Rates are really catching up to what happened in other markets. Ultimately, that will run its course. Early for bit too stabilization. Volatile trading the next two weeks. But we still remain fairly confident that the dollar shortage problems will be addressed. The fed coming out with swap lines. A very quick succession of swap lines. There may be a case for expanding swap lines through other Central Banks in the g20, distribute the dollars around. Would expect more from the fed around this in the coming days and weeks. Haslinda having said that, who is most at risk in asia . Saying, do whatever you need to do to stabilize the rupiah. We havee thing i think to really acknowledge here, virtually all of the systems are solid. We came into the particular episode with most Banking Systems wellcapitalized, liquidity levels adequate. What happens in a situation like this is that countries with current account deficits tends to see a bigger stress on their effects. That is not a systemic issue necessarily. Just means the affects have to adjust to the new reality. We are seeing that now, but it does not necessarily signal any Financial Stress in indonesia. The economy might slow down, there might be further pressure this will ultimately, run its course. Indonesia will be able to refinance itself. We might even get more by way of multilateral helping across the region. We have bilateral swap lines that could be drawn on. Multilateral aid could be provided to some of the Southeast Asian economies. Yvonne china seems to be a little bit more confident that they can bounce back from this. Saying they are returning back to normal. How early do you think they can bounce back given that the external demand is still a constraint . Fred it is still a long way up the hill, even in china. We cant talk in terms of normalization of economic activity. What they mean by this, restrictions being taken off, more movement of goods. What is missing still is the demand element snapping back. That is both the domestic element and increasingly the external demand element. China has been missing in action when it comes to the big stimulus measures. There were hopes over the weekend that it does not materialize. There has to be more by way of stimulus and we are confident that china will support its economy more. It might still be 23 weeks before we get that big package announced. But more fiscal measures in china almost seems a certainty at this point. Yvonne fred, always appreciate it. Fred newman from hsbc. Coming up, more stimulus worth 38 billion, while new zealand leads into qe and a nationwide lockdown. This is bloomberg. We are closing our european plans for about four weeks. I think at this point in time, this is the right measure. Watching you are liberal markets asia. You are watching Bloomberg Markets. An airline is cutting passenger operations by 96 of the flagship, and also spending most of the network of its affiliates. The character the carrier says it will aim to cut Capital Expenditure and operating cost. The worlds top Longhaul Airline is to suspend all passenger operations this week as the coronavirus cripples air travel. Emirates says flights to most destinations will freeze, leaving routes to just 13 countries including the u. S. , the u. K. , switzerland, and singapore. Cargo flights will not be affected. Emirates say some of its competitors and suppliers may not survive the crisis. And, cutting Capital Expenditure million to550 mitigate the fallout. Australias second largest independent oil producer is also. Ooking to cut production costs Breakeven Oil Price is 25 per barrel. Taking a look at your mrr function on the bloomberg. Sector by sector and by stock, what has been going up and down. A mixed picture today. We are largely lower. Lets wait for these things to load. Stockses of the japanese leading the charge, the catch up rally but also a little bit more resilient in the face of things. , some ofperforming these developers. , down 16 . Hing a lot of travel restrictions, stocks data new zealand, that is adding to more volatility. We will get an update with paul allen it just a bit. This is bloomberg. Welcome back. Says the senate will remote on the gop bill unless a deal is made. The senate will revote on that gop veil. Gop bill. Says it fell short. The senate will revote on that bill. U. S. Stock futures have been plunging. Word that theh republican virus plan had stalled in congress. Noted the program has ballooned in terms of funding and the democrats disagreed on how it should be used. Official said u. S. Job losses could soar. Unemployment may search in the next quarter. President trump says the u. S. Must be ready for after the virus. This is a partial shutdown of the u. S. Economy in q2. It is an appropriate to call it a recession. Inappropriate to call the recession. Johnson is warning he may lock down the entire country if britain continues to ignore warnings about the virus. People are still meeting socially despite the governments decision to close bars and restaurants. His warning comes a day after he and the National Health service more than two weeks away from being swamped by the infection. Italy has banned all movement within the country. Sunday,lities as of its worst day yet. The number of cases is just short of 60,000. Spain is extending its state of emergency as the number of deaths jumped 30 . Employeesrdered of the New York Times and two other companies were dismissed last week days after china expelled a dozen u. S. Journalists. It comes amid calls of global cooperation. Global news, 24 hours a day, on air and on quicktake by bloomberg, powered by more than 2700 journalists and analysts in over 120 countries. I am su keenan. This is bloomberg. Haslinda thank you so much. Asian stocks adding to their losses over the coronavirus outbreak. We have the csi down 3 . The s p has plummeted 20 in that timeframe. Year byei down on the about 30 . Japan hinting at the olympics being delayed. Pressure for japan to hold those games. Additionalouncing bond purchases. By 7 . N lets turn the page and see how it is down about 8 . Drop, down largest by about 11 . Ins is the market that is bear territory, all 30 shares are down right now. Since s, not seen valuations not seen since the 1980s. Texas. Between opec and no reprieve from oil coming down. A little bit of haven buying when it comes to gold. It has been a broken type of haven. New zealand, the latest country to go into lockdown over the coronavirus. Every household will need to go into selfisolation within two days. They announced unprecedented measures to support the economy. Paul allen is joining us from sydney. New zealand had a low number of cases but seems like things are changing as we speak. What prompted this nationwide lockdown . Just a shade over 100 cases right now but new zealand sees itself as the same position that italy was before things got really badly out of control. If this escalates to an italy stage outbreak, new zealands Health Service would not be able to cope. That is the logic behind this. It will be the highest level of that system, level four. Everything will close, bars and restaurants, playgrounds. Only essential services will remain open. That includes supermarkets, medical services. Anyone breaking those laws will face police prosecution. The police will enforce these rules. Schools will close tomorrow as well in new zealand. This is expected to remain in place for four weeks. Zeelandtive easing in new zealand for the first time in its history. Haslinda a big stimulus, tighter restrictions, what are we looking at . A more chaotic response. There are closures here as well. Public gatherings, cafes, takeout delivery continues. Casinos will be closed as well as cinemas. This has been prompted by idiotic scenes. Thousands of people congregating on the beach on friday afternoon. Ignoring the rules around social distancing. We had cruise ships dock in sydney and all 2700 passengers were allowed to get off and over 20 of those tested positive for coronavirus. Cabinetve a national which has convened for the first time, the Prime Minister and the leaders of all the states. The messaging around that has been somewhat confusing. The Prime Ministers saying schools should remain open. States offering different advice in new south wales. Parents are advised to keep their children home. The economic package is a little more clear. Another 66 billion over the weekend. This will include doubling of unemployment benefits. Workers will be able to access the Retirement Savings early. Cash payments to small businesses. After the economic measures announced, more to come being promised, the Public Health front very much a different story. Yvonne thank you for highlighting all of that. We will get the outlook on asian credit. That is next. This is bloomberg. Haslinda Central Banks around the world have been at the forefront of fighting the economic crisis. Slashing rates and injecting liquidity but will this be enough . Lets get some perspective from jenny zeng. She joins us from hong kong. It doesnt seem like it is enough, no matter what Central Banks do, the markets keep going down. Evolvingis crisis is very fast. Crisis to alth financial crisis. The problems just keep popping up in the Financial Market. Best weink this is the can expect from them. Situation, there are things that Monetary Policy cannot address. Haslinda it does seem like all measures are geared toward ensuring the Financial Markets dont freeze. Where do you see the next source of turmoil in the Financial Market . Jenny the key to watch is the shortage of dollar outside of yen. S. , particularly the upre is a limitation to open how many the dollar shortage is one area to watch. Than half of the traders around the world working from home. Dealers Balance Sheet and dollars shortage, those are two areas to watch. Yvonne we have been watching credit spreads, whether it is highyield, investmentgrade, u. S. Or asia, have just blown out. We are back to levels seen during the Global Financial crisis. How much more can credit spreads continue to widen . Jenny good question. Valuation in the asia, lets talk about asia credit. Ig almost at 300 basis points. In 2008, age ig asia ig was almost at 600 basis points. Compositiont, the of asia ig was very different. The majority of the market was indonesia. Now china is 50 of the market. Are we actually going back to 600 . What is the probability of us going back to 600 . China financials are in the majority of the market and they have been quite resilient. I would be surprised to see hig will revisit asia ig will revisit the 600 basis points. Yvonne the structure of the market is different. China plays a much bigger piece of the pie. You mentioned the dollar shortage, the fed has expanded to multiple Central Banks. It is still at into a lot of stress. We still see the Oil Price Collapse and that leads to more indiscriminate selling. How do you break this vicious cycle . Jenny there is only one thing the correlation between Asset Classes. Traditionalall the safe havens. Unless we see more from the Central Banks, we are starting to hear headlines investmentgrade bonds. To directly address the Balance Sheet issue. Otherwise haslinda havens are not behaving like havens anymore. It is such a tumultuous time. Investors are gravitating toward chinese bonds. Is there a sense that chinese bonds have achieved a safe haven status . If not, what would it take . Credit,nshore china onshore china bonds. They have been doing relatively better. China credit, onshore credit has been doing extremely well. It makes sense because china has a very different dynamic offshore. The pboc has been quite measured in terms of how it manages the situation. If you think about the stage of the virus, china has flattened the curve a while ago. The key question, what is normal . Before we let you go, the Yuan Movement has been pretty stable. Where does it go from here . Jenny the rmb has been quite stable. The pboc has been able to keep it relatively stable. Haslinda thank you so much for that. Plenty more to come. Global aviation is nearly grounded. Next. S, this is bloomberg. Haslinda this is Bloomberg Markets asia. Bank has lostalia its second key executive in less than a month. Head of business and Private Banking resigned on monday following the departure of the consumer had. Head. Bezos saysff the coronavirus will likely get worse before it gets better. Surge ins seen a demand from Online Customers who want to avoid visiting physical stores. See three new directors join the board. It would see the support for the return of the former ceo. Nothing has been signed yet. Carl icahn raised his stake in occidental. Coronavirus has airbnb considering his options. Raising more funding from private investors and revising plans for a stockmarket debut later this year. Airbnb is said to have been approached by a dozen investors. Yvonne global aviation has been dealt massive blows. Emirates airlines and are the latest to announce they are suspending nearly all of their passenger operations this week. Cut 96 of their capacity. We are joined by angus whitley. More and more of these developments are inevitable given the fact we have seen Border Control in different countries. Singapore is marrying mirroring the actions of its peers around the world. Island in relative terms. All of its traffic is international. The Aviation Industry is at the front of this when it comes to the corporate fallout. Countries are locking down their borders in the effort to contain the spread of this virus. Have no alternative but to ground. They are operating as government assistance flights. Skeleton operations. Singapore is no more immune than any other airline. Yvonne for emirates, given that it has dominated the World Airline industry for generations, that seems to be more bad news for the industry as a whole. Do you agree with that . Emirates has been an emblem of longhaul travel. , flying 500 flights a day. Those kinds of planes are increasingly redundant in this climate. Grounded. F planes are it reflects for the industry is. It is for that reason that you have the Airline Industry saying that the airlines will need bailout and assistance to get to this crisis. Airlinesar that many will need aid to get through this. If they dont get state aid, they will get eaten up or consumed by peers. There is a sense that it is survival of the fittest. Some are even saying that potentially budget carriers may not even be around when the dust settles. I think that is true. We have seen a few already. A regional carrier this morning and australia said it will cease all operations in a couple of weeks. Health ofk at the airlines worldwide, only a few dozen sustain the Aviation Industry profits to some degree. Most airlines have cash to last them three months or less. Precarious industry in the best of times. They are very exposed to obviously ases, Health Crisis they are going through now. Yvonne thank you for wrapping it all up for us. Open int to the market india. We are less than an hour away. Nifty futures are feeling the pressure today. We are lower by 11. 5 . Lockdowns been under and a lot of questions about whether this was too little too late as this virus has spread in the country. We are watching when it comes to the last close, quite a decent bounceback on friday. Session, to that it looks like we could be easily erasing those types of gains here today. Currency,mes to the the nifty, we are still down 12 in the last five days. Your rupee, we do have this collapse in oil prices but you are not saying that benefit the currency given the Dollar Strength. The rupee very much a victim of that as well. Have better than what we seen in most of asia. 75. 19 was the last close. Haslinda it does look like we need even more stimulus. How much more can governments do . Our coverage continues in the next hour of Bloomberg Markets asia. We will check on where this selloff will lead us. Stay with us. This is bloomberg. Haslinda it is almost 11 00. I am haslinda amin. Yvonne we are entering the last hour of the morning session here in hong kong. Markets plunged as government struggle to contain the virus. Curves in thetens face of a recession. Haslinda china indicates it may be ahead of the game. The pboc expects a significant economic recovery in the next quarter as it contains the virus. Yvonne india shuts down amid warnings that may become the next virus hotspot. Going concern the measures might beoo little too late. Iss Bloomberg Markets aa. Haslinda no bottom in sight. Adding to the losses over the spread of theoronavirus. Spreading faster than expected, spooking markets as well as government. Lower, down byo more than 6 . Lead putting much by financials. Australia preparing for the worst. It could be staring at a possible recession. 2. 5 , prettyown by muted when you consider when you compared to the rest of the benchmarks. The government expressing optimism that the economy will recover the next couple of months. Just to put it in perspective, 25 trillion from global stocks. And that 30 drop spiral has been pretty breathtaking. Yvonne remarkable. Some people have said weve reached the peak panic. Nifty futures falling, plummeting more than 11 . Countryafter we saw the inching closer to a lockdown. The number of virus cases approaching 400. It seems like this will add to more pressure for the economy, already set for 11year lows. Take a look at the rupee. We will see if that plays out given the Dollar Strength. Resumed after a brief drop on friday. India 10 year yield, we are down 15 basis points. Lets talk about the passage of the u. S. Stimulus bill that could be delayed after democrats blocked Mitch Mcconnells rescue plan. It raises questions about whether the package can be enacted by monday. Steve, what is the hold up . It seems like they will go ahead with another vote in the senate. This was a procedural move to advance the bill forward. The vote was 4747. That does not mean the debate wont still rage. They have another 24 hours before you reach the end of mondays deadline. Mitch mcconnell has said he wants this bill, this emergency package past. There will be some partisan wrangling going on. Both sides want certain aspects of that bill passed. Speaker,osi, the house saying it does not meet the goal she had set in the house. Been mcconnell has blasting nancy pelosi and Chuck Schumer. Mitch mcconnell said the markets are already reacting to this outrageous nonsense, that is what he called. We have been fiddling with the emotions of the american people. Chuck schumer complaint the bill was to partisan and includes a large Corporate Bailout with insufficient oversight. That is one of the big stumbling blocks. They do not want a big bailout for certain corporations without oversight, and particularly the airlines. The other bighallenge is containing this outbreak. Americans have been ordered to stay at home across eight different states. In new york, the epicenter now, we have 114 deaths in new york already. Cases confirmed cases in the united stes. Governor cuomo in new york is appealing to the people to stay warningsnot flaunt the. This is what andrew cuomo said, the behavior of some has been insensitive and arrogant. Were still trying to stop the apex. 9000 of the 15,000 cases in new yo are in new york city. 63 deaths in new york city. Haslinda it seems like no one is really spared. Quarantineel is in as the government prepares for an unprecedented rescue fund. Give us the details. The number of people around the world are putting themselves in selfisolation. Mitt romney in the United States. Angela merkel is doing that heruse her doctor who gave immunization for bacterial pneumonia, her doctor was confirmed case of coronavirus. She is in selfisolation. The German Government is set to pass about 150 billion euro loan package. It could be as high as 350 billion. This as the deat toll and the confirmed cases in europe are absolutely sky rating skyrocketing. Over the weekend, there were more than 2000 deaths reported in italy and spain alone. Italy ha lockdown the country. No domestitravel is bein allowed there. Haslinda stephen englethk you so much. A key part of the stimulus plan so far rejected by democrats would allow the fed to start buying municipal bonds. Kathleen hays joins us from new york. This is a big step. The Federal Reserve has readily embraced and reinstituted many lending programs to provide liquidity for Financial Markets by bringing back tools from the 2008 crisis. , we havean see so far had so much opposition between the white house and the fed. But now we have the treasury secretary a key part of this part of Mitch Mcconnells bill. The bill draft would give treasury would put up 425 billion and this would allow the to 4 trillionup in liquidity through various kinds of lending programs. It would allow the fed to lever up this money. It would be an important step. The fed has not been allowed to do this in the past. Spoke to thes republican head of the Senate Banking committee and they report, he is saying this would expand the feds authority. Theard to conceive democrats are not on board with this package. They do not want Corporate Bailouts. Eric rosengren has been talking about this for a long time. The bank of england, many other Central Banks have the authorities to make these purchases. If you want workers to have jobs, you will have to have the companies who employ them in decent shape as well. Is it enough to avoid the recession fears . Is the fed on board . Said everything is on the table for more lending. He does think that unemployment could go to 30 . Gdp could drop to dust by 50 . Per c could drop by 50 ent. The fed could go higher in bond purchases. The president of the minneapolis fed, one of the people who hank paulson hired, he was on 60 minutes today. Here is what he said about the fed. We are moving much faster than we moved in 2008. Is there more we can do . Yes. I think we are being very aggressive. Cash, fed has infinite that is what he says. There seems to be such a cohesive effort for the fed to get on board. Treasuries working with the fed, congress. Once all these details get hashed out, the democrats were complaining that Mitch Mcconnell did not include them enough in putting together the stimulus package. You talk about infinite cash. Canquestion is whether it stop the u. S. Economy from sinking into a deep recession. That could be a temporary shrinkage. This is a deliberate step by the to make people stay at home, make factory shut down for a while. China saying it is getting ready for a rebound. The bridge has to be built. A bridge has to go from where the economy is now as people go on lockdown and there is no paycheck going out, no business, no revenues being earned by small, medium, and large companies. Bridge,step makes that months later, they can step out on the others. That is the most optimistic hope. So many steps being taken in this direction to avoid a recession, spiraling down into something that could look like a depression. The r we have moved from word to the d word. Su keenan is a new york. Su new zealand has raised its virus alert level, warning all citizens to selfisolate. Nonessential businesses are closed. Also announced schools will close. The measures will remain in place for at least four weeks. Showsdata for south korea surprising resilience, even as the coronavirus locks down vast parts of global demand. Exports rose 10 from a year ago. Sales of cars and semi conductors. The spread of the infection is slowing in south korea. The worlds most popular travel destinations are almost deserted as the virus continues to spread. Italy has banned all movement within the country as it reported another 651 fatalities yet. Nday, its worst day 5400er of cases people having died. The total number of deaths in spain jumped 30 for a Third Straight day. The policymakers in china expect the economy to swiftly rebound after the coronavirus. Governor also repeated earlier pledges to keep credit stable. Slumpsuffered an historic across all sectors of the economy last month. Global news, 24 hours a day, on air and on quicktake by bloomberg, powered by more than 2700 journalists and analysts in over 120 countries. I am su keenan. Ahead, a look at how the market uproar compares to 1987. We have gary dugan. He says it is much harder this time around. We will hear from him next. This is bloomberg. Haslinda welcome back. , letseek of mayhem bring in our next guest. , if you are looking for yield, where do you go . Gary it is a real tough time. At this point, you want Asset Classes that are supported by the policymakers directly. I am not so sure you will chase yield at the moment. Certainly some opportunity. We have seen a huge spike in highyield spreads. Probably only two thirds of the way through that correction. Bonds preferred to equities. Haslinda it is a zero rate world. How do you trade assets in such an environment . Gary it is extreme difficult. If i go back to my experiences back in 1987, you could almost day trade things. The violent corrections we are seeing an Asset Classes, it means day traders are finding it difficult to get in and out with profit. The huge volatility will keep those volumes away from the market and that is why we are not yvonne a lot of people question amidst this panic. What are you telling your clients right now . Do you just have to hunker down and wait until the infection goes down . What signs do you have to see first . Difficult. Very because this is you have to go back to the spanish flu to find something that hit the Global Economy with this kind of problem. The problem is not solved by policymakers. The problem is only mitigated by policymakers. We are seeing every government and every central bank actively engaged. We have to wait for this virus to disappear. Havingial distancing is a major effect on global gdp. Have an extended period of trouble in the Global Economy and policymakers are trying to help. Yvonne what would you be investing in, though . The funding stresses we have seen. Market start to trade purely on fundamentals again. Fair, we are putting together lists of things we want that havempanies strong Balance Sheets, have a very clear and strong brand in their space. Companies with strong brands and strong Balance Sheets. I know it is very difficult to see that far ahead but many of offer longterm fundamental value. I cannot promise this is the bottom. Yvonne and i will be buying handbags, we can tell you that. Everything is getting sold off. Even gold is getting sold offer cash. How much cash should you be holding . Some say as and high as 90 . Gary it depends on your personal circumstances. If you think your job is at risk, something major you would have to spend money on, it is better to be out of the markets and in cash. Otherwise, i would not disagree with people who say you need 20 or 30 cash at this point. Seeinge safest bonds are huge volatility. People will not want to wear that emotionally. Haslinda i want to get your thoughts on the question of the day. What would be the impact of an asset of 30 jobless . This point, we are probably only discounting Something Like six or 7 . There are far too many people these days in the United States on shortterm contracts. Very different to where we were 10 years ago. It will probably be close to 20 . Lets hope that is just a shortterm phenomenon. Dugan, joining us from singapore, thank you for your perspective. Were still watching futures market. U. S. Futures as well as dow futures not looking too good. We are off some of the lows. The nasdaq as well. Take a look at Southeast Asia markets. It is a dollars story, Dollar Strength story. Singapore one of the ones glaring red, 10year note lows for the benchmark. We have plenty more to come. This is bloomberg. Haslinda you are watching Bloomberg Markets asia. Singapore airlines is the latest as the to Services Coronavirus cripples demand for air travel. Carrier says it will aim to cut Capital Expenditure and operating costs. Coronavirus cripples air travel. Emirates says flights for most destinations will cease. Cargo flights will not be affected. Some of its competitors may not survive the crisis. As it looks to mitigate the fallout from the coronavirus and falling oil prices. Cut productiono cost. Gallagher yvonne take a look at Chinese Markets right now. We are still seeing red on the screen. Losses for the shanghai composite. When it comes to earnings for a shares, they see it falling 15 last year from this coronavirus outbreak. When it comes to hong kong, we are still seeing down. Who is buying . Citigroup says chinese insurers will continue to buy hong kong stocks. Much ofounted for the inflows. We are looking for data coming out this week. China industrial profit coming up. What will be key will be the jobs number we get out of the u. S. Later on this week as well as how big the impact the coronavirus will have on the u. S. Economy and the world economy. We have plenty more to come. This is bloomberg. When you move homes, you move more than just yourself. Thats why xfinity has made taking your internet and tv with you a breeze. Really . Yup. You can transfer your Service Online in about a minute. You can do that . Yeah. And with twohour Service Appointment windows, its all on your schedule. Awesome. So while moving may still come with its share of headaches. No kidding. Were doing all we can to make moving simple, easy, awesome. Go to xfinity. Com moving to get started. Haslinda a gloomy lion city, almost 11 30 a. M. In singapore, in the middle of the trading day. 8. 3 . Done as much as all members on the index are in negative territory. It is a grounding about 96 of its planes. Singapore in bear market. Yeartodate, it has slumped about 30 . Get the first word headlines with su keenan. A we start in the u. S. Where number of leading members of congress have been swept up in the virus followup. Rand paul wanted to quarantine after testing positive. He has now been followed by mitt romney and mike lee. Two more republican senators are in selfisolation. Againstpaul voted spending bills. He mayohnson is warning lock down the entire country if britains continue to ignore warnings about the virus. People are still meeting socially despite the governments decision to close bars and restaurants. Johnsons warning comes a day after he said the national a little then two weeks away from being swamped by the infection. Firepower and it will start buying bonds this week. , hitsia faces growth of 2 virus,iple whammy of the dropping oil, and political turmoil. The worst earthquake to hit the croatian capital in 140 years. Collapsing walls. Been ordereds had to stay indoors because of the virus. No fatalities have been reported. Theyre looking at ways to shelter people. Global news, 24 hours a day, on air and on quicktake by bloomberg, powered by more than 2700 journalists and analysts in over 120 countries. I am su keenan. This is bloomberg. Yvonne lets take a look at markets once again. We are off the lows when it comes to asian stocks. The exception of japan, still playing catchup after they missed out on fridays rebound. Hang seng, we are down 750 points. Kospi. S asx 200 continuing to see a downside of 5. 6 . They are restricting more of the entertainment places like casinos, restaurants, and bars. Some of the boards we are watching, Indian Markets could be key today indian futures still down more than 10 . Mumbai in lockdown. A lot of questions whether the government is behind the curve in terms of stopping the outbreak. We could see some pressure in the rupee. , 6. 29. Year yield President Trump has continued with its criticism for chinas response to the outbreak. Beijing did not provide information early enough, he says. Of more backlash from these comments . The Global Pandemic has escalated already very tense relations between these two countries. Last week, china lashed back at trump for using the phrase china virus. Trade andbroader economic dispute between these two countries, china has been quashing domestic dissent and deflecting blame for its early handling of the virus. Political analysts have noted that china is trying to gain an International Leadership role by branding itself a pioneer and by giving International Aid around the world. Country giveg the individual aid and outreach to these countries. China delivered a shipment of insulators to italy and hundreds of workers arrived to the country. China delivered more than 50,000 masks and said it is coming to aid for france, bulgaria, pennsylvania. Alibaba has shipped medical aid to spain and jack ma has pledged millions of facemasks and test gets to some of the worlds poorest countries. Be Alibaba Foundation would sending a donation of emergency supplies to the United States. This help is needed and is helping but it is a conscious move by china to expand some of its soft power. Haslinda when it comes to the economy, it is already talking about in the country talking about a recovery. It is interesting that the talkinggovernment is recovery in the second quarter. Slashing their forecast to growth in china. Maintainsnk of china optimism on their moderate stimulus approach which is contrasted to the u. S. And europe, which have been pouring trillions of fiscal stimulus to the pipelines. China has made adjustments to tax policy, trent interest rates, given extra liquidity but a disciplined approach. Firms in china are at about 70 capacity. The Services Sector is still struggling. Numerous shops and restaurants remain closed. About half of chinas consumer listed companies dont have enough cash to survive for another six months. Wang in selina beijing, thank you so much. The International Olympic committee has made its most public step yet and delaying the sporting event. Changes toplanning tokyos 2020 would decisions expected in the next month. Why has japan been so insistent in the games going ahead . Back, thetake a step 1964 Tokyo Olympics were an enormous milestone for the country. It represented japan coming back onto the world stage after world war ii. In the same way, the 2020 olympics were supposed to be a statement that japan was back. The years of deflation, the loss decades, the economic stagnation. Selena was just talking about china trying to use soft power surrounding its response to the virus. Abehe same way, the administration was hoping to use hosting the olympics this summer put soft power moment to japan stamp back on the world. They are set on holding it on time. Alignednister abe Even Economic policy over the years towards hosting the olympics this summer. Introduced sales tax increases in the runup, betting on a big boom in the summer of 2020 to help the economy come back. We saw the economy shrank last quarter, for example. In economic terms and soft policy terms, and all of these respects, japan really wanted to host the olympics on time in july. That has become no longer tenable. Yvonne the big news was from canada, saying they will not send their athletes if the tokyo games is not postponed. Japan to pressure postpone the games . Chris that does seem to be the case. We saw some of the u. S. Sporting organizations in recent days make the same call for a postponement. U. S. Swimming and u. S. Track and field. If there are no athletes, you cannot really have a games. With Prime Minister abe this morning saying he is putting a 14 day mandatory quarantine on arrivals from the United States. Look at the transport situation. It becomes impossible to conceive that in a few months, we will be back to normal and the olympics can be hosted on time. The question then becomes how long the delay is there, would it be a year, two years . Would abe still be able to host this . What are the costs going to be . What are the economic costs going to be . Japan is at risk of shrinking in terms of gdp every single quarter this year if the olympics does not go ahead. The next questions become, what kind of economic response does the Administration Come up with to try to curtail the negative effect of a postponement . Thank you so much for that. Chinas kfc and pizza hut operator says traffic in stores is improving but a recovery will take time. Yum china ceo spoke to bloomberg about how they are dealing with the crisis. We are happyt now, to share that around 95 of our stores are operational already. About 20 oftores, still can only do delivery or take away. The bulk of our stores can do dining. , delivery, and but there are still some stores that can only do takeaway and delivery. Recovery is improving but it will take some time. Of businesses have reopened. How about consumer demand . Do you think there will be a vshaped rebound . We expect our quarter one will be challenging as we can understand why. However, the recovery of the business, i think we will have to be a little bit patient. Quarter two will still be a bit challenging. , etc. , we are seeing positive environment we would like to see than in other parts of china. In bad situation. Can you tell us about some of the innovations you launched during this outbreak . , we hadatering business been working on not but the crisis gives us an opportunity to grow our catering business. We will have a customized menu for you. Deliver prepared steak to our customers. Time, thes period of customer need for home cooking has gone up. We pushed ourselves to come up with innovation to meet the need for our customers. Delivered to my door. I like that. I want to flag these latest from india. India rupee heads for that above 76w, breaking for the first time ever, losses of 1 . Stock futures pointing to some losses of 9 right now in singapore. This is when we hear more about this lockdown. This is bloomberg. Yvonne Indian Markets have just opened and we are seeing heavy selling when it comes to the indexes, losses of 9 for those benchmarks. Territory forfair indian stocks. Indian territory for stocks. The rupee breaking above 76 for the first time ever, record lows for the currency. Goldman sachs has been talking about it has been under pressure, capital outflows we have seen, 11 billion over the past month. The rupee willk outperform the philippine peso. Seeing huge losses across the board. A lot of worries about this lockdown in mumbai and whether they have the means to enforce all of this. Plunging the most in years. In years. Speaking of the lockdown, plenty of space to cut rates. To make sure the economy does not seize up. Policymakers are making sure indians have enough cash for essentials. Suspension of all Passenger Train Services nationwide. Lets get to new delhi. Experts are saying these lockdowns are not enough and aey are too late to prevent largescale epidemic. As many as 10 of indias population will contract this virus. Late. Asures have come too they should have been implemented some time ago. The virus is two steps ahead of the government response. It is difficult to lockdown a country of this size. The economy is paying the price for it. As we have seen in other countries, this is what india must do if it is to stop the spread of the virus. Yvonne if the lockdown is too little too late, what to the government be doing . Lockdown, it the also needs to significantly ramp up testing. Experts also say they need to actively start looking for people who are sick who have not made it to a hospital. And isolate them. Looking for a far more proactive response from the government. Haslinda what room does india have on the monetary and fiscal front . India has plenty of space to cut rates and offer fiscal stimulus. The immediate focus needs to be on ensuring the cash flow so that indians have money to buy essentials and avoid a wave of defaults. Flow to an is set to 11 year low. The finance minister said on friday that the government will announce a relief package. Itt like with the lockdown, is running well behind with its announcement for economic relief. Haslinda thank you so much. Lets go back to the Indian Markets. 30 minutes into the trading day. Indian stocks continue to slump about 7 right now. It is edging toward a lockdown after the number of virus cases posted the biggest weekly decline. It is approaching 400. The economy is set to slow to an 11year low. The rupee is heading toward a record low. Plunging the most in years. Foreign investors have been pulling out, 10 billion in shares so far this month. 76. 1. Pee is at plenty more to come. This is bloomberg. Ramping up production of ventilators and other vital medical equipped to meet the demand from hospitals. The company says it plans to double output within the next eight weeks. They are hiring more staff and plan to ensure manufacturing continues around the clock jeff bezos is telling staff that the coronavirus disruption will likely get worse before it gets better. , amazon wasetter criticized for not doing enough to prevent delivery stuff from infection. Staff from infection. Airbnb considering its options. Funding from private investors and reviving plans for a stockmarket debut later this year. Airbnb is said to have been approached by a dozen potential investors with possible deals ranging from 100 million to as much as a billion. Head of business and Private Banking Anthony Healy resigned on monday following the departure of consumer head earlier this week. He is expected to announce a strategic revamp of the melbourne based bank. A couple of headlines here. Making reference to the coronavirus measures, he will decide on which way to go at the end of a 15 day period. He will make the decision at the end of the 15day. That is coming from trumps tweets. Lets take a look at where we are in terms of the markets. Lets start with india, where stocks are slumping. This is a country hedging edging toward a lockdown. Mostis the second largest populist nation. Quite a headache putting in place the measures to put a lid on the virus. For modi. Ache the rupee plunging the most in eight years. Yvonne watching futures as well. U. S. Futures down, seems like it could be a rough session for the euro as well. Germany preparing for some type of fiscal measures. It seems like the hotbed remains to be europe. More cases in italy, spain, and france as well. Lets take a look at currencies. We have been seeing the dollar once again rearing its head and sing that strength so seeing that strength. The kiwi, joining the club when it comes to qe. The kiwi is down 1. 3. Rmb, thatnshore seems to be losing some steam as well. Haslinda it has been hard to find a bottom to this. , no andfiscal measures insight to the spiral downwards no end in sight to the spiral downwards. That is a drop of 30 . When you put that in perspective , far away from the Global Financial crisis we saw. That is it from Bloomberg Markets asia. Bloomberg markets middle east is next. Good morning oh no, here comes the neighbor probably to brag about how amazing his Xfinity Customer Service is. Im mike, im so busy. Good thing xfinity has twohour appointment windows. They have night and weekend appointments too. Hes here. Bill . Karolyn . Nope no, just a couple of rocks. Download the my account app to manage your appointments making todays Xfinity Customer Service simple, easy, awesome. Ill pass. The following is a paid program. The opinions and views expressed bloombergtch those of , its affiliates, or its employees. The following is a paid presentation brought to you by rare collectibles tv