Transcripts For BLOOMBERG Bloomberg Markets Asia 20240713

The Chinese Market has been pretty resilient amid the turmoil. The nikkei to do five higher by 6. 7 . Bluechip stocks stocks looking attractive, up 0. 8 , the cheapest since 2009. Wont be surprising for investors to be picking those out. The rest of asia was pretty much down. The hang seng rising 4. 5 . The benchmark in new zealand higher. Lets flip the board and see where we are in terms of futures. A higher open. It is surprising unlimited qe did not raise the s p more than most people thought. Futures acrosstheboard pointing to a higher open later today. Now, hong kong is taking drastic measures after a surge in imported Coronavirus Infections. From midnight wednesday they will ban nonresidents from visiting for 14 days and will stop bars and restaurants from serving alcohol. Lets bring in stephen engle. Lets start with these latest measures. Why is the government feeling they are necessary . Stephen last week they put in another step where they required a 14 day quarantine for all returnings returnees. A lot of people rushed back to meet that deadline. Since then we have seen a surge in cases. The most on a daily record, 39 and 40 plus. Most of those confirmed positive cases had recent travel histories. The government is taking this next step to ban all nonresidents in hong kong from hong kong starting at midnight tonight. That includes transit passengers. The International Airport is hub crucial, a hub Singapore Airlines. Has cut many roots. Singapore airlines has cut many routes. They are going to take the extra and of closing all bars those that serve alcohol. Restaurants will not be able to serve alcohol. They will impose harsher penalties on those who flaunt or violate the laws. We are seeing more evidence of the Economic Impact. Midlevels to 24 . Retail was hit hard by those halfyear protests. We were expecting to see a wave of possible bankruptcies before the coronavirus hit. Hitwith the coronavirus with half a year of protest before this, hong kong looks bleak with joblessness set to spike. Yvonne stephen engle, from hong kong. Lets bring in a prominent hong zeman,sinessman, allan chairman of the lan kwai fong group. You have said these measures are necessary. Going toan kwai fong look like now . Allan i can understand carrie shebecause the big problem, was getting a lot of pressure from the legislators, both probeijing and antibeijing democrats, to pass something. Also her medical advisors were saying people were gathering. Instead of keeping a 1. 5 meter distance from one another, when people drink they are gathering in the streets, getting together. It was causing the spike in numbers. February we were able to combat the numbers and the numbers are really calm down business was Getting Better for most tenants. It was almost back to normal. Midmarch came with many returnees from overseas coming back to hong kong for easter and many students. They brought the virus back to and kong and they went out did not have a quarantine. The 14 day quarantine only started last thursday. Of probably have two weeks people who came in without a , one of the popular night spots in hong kong and other areas. The numbers started spiking. 39, all of them more overseas returnees. The day before was 44 cases. I guess she had no choice. The problem that my tenants have in many operators have is that if you cannot serve alcohol, many will go out of business because bars or clubs, that is the only thing they sell. They are not restaurants. Restaurants can do home delivery. Not that that will sustain them. The big problem they have is that we now have to go forward with finding a way like the u. K. Did. The u. K. Closed for three months. The government is picking up 80 of the salaries and 80 of the rent. That will help. That is what we are appealing to the chief executive to really help these operators because most are on life support at the moment. And youthey will die will have a lot more unemployment because they are all smes. As a landlord, have given a lot of concessions, but you can only do so much. There is an interpretation that a lot of restaurants can still operate and stay open, but just restricting alcohol sales, but the government perhaps can avoid giving out compensations to bars and restaurants. Is that how you see it . Allan no. People who are in the business know that in the Restaurant Business without alcohol you basically just breakeven on your food or even lose money on the food read the money comes from the alcohol, the profit comes from selling alcohol, wine or beer. That is the biggest problem restaurants will have in general. Those 250 thousand people employed in the industry, it is not a small number. As i say, they all work hand to mouth. They need to be looked after. I talked to carrie lam and something will be worked out. She understands the problems. Legislators represent the industry. I understand all the reasons she is doing it. Spikingers have been like they have been. Thatbly another two weeks the numbers will go up because you did not have the quarantine untilhe first of march last thursday. You will have two weeks of people coming in without a quarantine and that is what is happening at the moment. I think it will spike for two weeks and then as we get into january and february it come down. Haslinda you talked about how some of the businesses are operating hand to mouth. There are about 100 bars and restaurants. Some are at a risk of going bankrupt. Would you consider requiring rent . Allan i have in the last few days of the protest. It was affecting business. As a landlord i went forward and did give concessions to many operators. Was publicized around hong kong. I will continue to do that you can only do that up to a certain point and still have payments to banks and repayments and other things. Alsoperators themselves need to be able to help themselves. But we will do whatever we can to get us through this difficult period. Haslinda you also continue to talk to carrie lam. What are you seeking . Seeking something similar to the u. K. , whereby 80 of the wages and rents are being looked after by the government for three months. Lasts, i how long this believe it should not last longer than a month. I think the numbers can come down again after two weeks. I am hoping she will be able to come around. I think she understands the problems of the moment. This was done in haste yesterday after pressure from legislators. Everyone in hong kong wants the numbers to go back down and we can get back down to business. Retail has been affected because before the closedown of the borders we had approximately 300,000 people a day from china into hong kong between tourists and locals. Have aboutnt you 3000 people a day. Has come down to almost 300. The economy here was built around Chinese Tourists coming to hong kong, shopping at the big brand the retail shops. Around thewas built ritz, the high rents that landlords were able to get, was really based around the economy, the retail economy. Huge change, a big change. I think what hong kong will be going through will be the same as the rest of the world, kind of a meltdown if this does not stop pretty soon. Yvonne we did speak with hong kongs black Sheep Restaurant group, its founder. He is projecting a difficult year ahead. I want you to listen to what he said earlier 15,000 restaurants in hong kong, i anticipate by this time next summer there will be less than 10,000. We are looking at three successive quarters of financial losses. We are squarely between a rock and a hard place. For us specifically we have done good work in hong kong. We created a lot of goodwill over the last eight years. In some way, shape or form we will be here when the dust settles. Yvonne there are seeing a difficult year ahead and expecting more closures, may be a wave of layoffs. Even after the 14 days, how quickly do you expect people to get back to lan kwai fong . Or will it take longer to feel safe . Allan it will take time. The alcohol ban is more than 14 days. Facinghe nonresidents the 14 day quarantine if they come to hong kong. We do not know how long this will last. Untilast as long as the numbers start coming down again. Whatsaed i think what saed said is solid. In every business that exists, are on lifes support. Not just in hong kong, but the u. S. And everywhere. There will be a total readjustment. In all my years i have been on this earth i have never seen anything like this. I have been through sars, the financial crisis, the handover from britain to china, and nothing like this. This is a Health Concern that needs to be solved and hong kong has done a pretty good job up to now. It is just these overseas people returning. I think we will be able to get back down to the way we were january, february. We were one of the best in the world at controlling sars. Before we let you go, haslinda haslinda how badly hit are you . Is there a possibility you yourself could go broke . Allan hopefully not. We are financially ok. Landlord, basically. Not so much in the Restaurant Business. Canong as my tenants survive, things will be ok. I think we are far from the. Allan, appreciate your time. Allan zeman, lan kwai fong chairman, visiting us from hong kong. The u. S. And china merely deflecting issues at home. Saysnda plus, jp morgan there is no reason markets will not recover and is betting on long term winners in tech and automation. This is bloomberg. Haslinda welcome back. Asian stocks opened higher Tuesday Morning after an initiative from the fed helps give some proper credit risk. Lets get views on jp morgan. Good to have you with us. To have returned, but we can expect volatility to accelerate at some point. If you are talking about the levels of volatility, we have probably reached it already. The vix at 82 plus was already exceeding levels. Look at volatility levels across different asset classes. We reached the elevated levels. The work we have done suggest volatility levels should come down. Our strategies, will improve flows. Which assets are likely to recover fast . Damage in thethe different asset classes, equities are pricing in a severe negative scenario. I would expect that to be one of the better beneficiaries of any rotation that should be expected at the end of this month. If you think about what happens during any type of recession, on the one hand you have a macro fundamental impact, and secondly, a risk aversion channel, directly through the new cases of the virus escalating in the u. S. And europe. More recently we have started to see the impact of systematic closes and liquidity pressures. Markets have been very stressed. If you look at systematic flows, a lot of the fixed Asset Portfolios will be rebalancing and that will bring inflows. Think we areo you seeing a decent risk off session in stocks today . Do see this as only a technical bounce, or does the fed do enough to alleviate liquidity issues and bring out the dollar . Mixo i think we are going through a period of volatility where daytoday movement are difficult to predict. When you look at measuring aggression in the near term, it did turn green at the end of monday last week. We are starting to see riskreward improve. Cycles haveiness come down to the best sentiment levels. This makes for a positive. What happens in terms of the news flow on a daytoday basis will continue to put volatility inequities going forward. As long as the risk aversion channel stops. Beyond that, if you think about where we are in terms of pricing duration,fundamental it is extreme. On a three to six month or even in thee period next two or three weeks used expect volatility. Yvonne thank you, mixo das. Joining us from hong kong. Coming up, how the u. S. And china are deflecting their handling of the coronavirus and the outlook for President Trumps reelection. This is bloomberg. We announced we are closing our european plants until april for four weeks. That is due to the closure of many dealer outfits and europe. I think at this point in time it is exactly the right measure. Haslinda welcome back and we have headlines out of macau. And taiwanhinese residents, travel restrictions to begin midnight on wednesday on wednesday. They are requiring medical observation for arrivals from hong kong and taiwan. They have been hit by the coronaVirus Outbreak. Revenue forecast have passed on the back of that. Mgm china up by 7 . Here are the latest business flash headlines. The coronavirus prompted jp morgan to impose a hiring freeze across most of the company. That is also in the consumer unit and wealth and Management Group to review job postings and pull any that are noncritical. Companies are increasingly noncertain about the direction of the Global Economy, amid the virus. Outlooking the earnings because of the widening impact of the coronavirus. A list of companies reassessing future performance as the pathogen spread. And magnitude of the virus they say is resulting in restrictions for customers and demand. At how taking a look assets are today. Seems to be a good session. The fed coming to the rescue to stabilize markets. We are hoping for some fiscal stimulus along the way in the u. S. Kospi up close to 7 . The nikkei to do five set to have the best day since 2016. New zealand also recovering from an ugly session. The dollar continuing to be on the back foot. To aussie dollar back close . 60. 1. 8 . The british pound continuing to see gains in recovering losses sayaw after Boris Johnson they would tell people in the u. K. To stayathome. Off those record highs at12. 85. Wti up more than 5 . This is bloomberg. This is bloomberg. It is 10 29 a. M. In hong kong. I am su keenan with the first word headlines. The latest on the coronavirus that continues to infect people around the world. There are some signs of hope. Milanmbary region around has reported a slowing of new cases. Posting a decline for the second straight day. The latest virus tally from Johns Hopkins University Puts withl cases at 375,000, 16,000 people having died. Nearly 80 nations have asked me imf for emergency funding. Meanwhile finance chief and central bankers from the g20 11 emergency Conference Call to discuss how to handle the fallout from coronavirus. The agenda included the damage to the Global Economy and how to work on a coordinated response. The impact on supplying chains and consumer demand is expected to push the world into recession, which could be worse of the financial crisis. Andvity in japans Service Manufacturing has deteriorated sharply as the coronavirus depresses Global Demands and keeps people indoors. Thear 11 year low while Service Sector recorded a record decline to the economic damage is expected to be worse if the Tokyo Olympics are postponed. And the United Kingdom is being ordered interlocked into lockdown amid sweeping new measures to keep people at home. As the coronavirus spreads across the country, Boris Johnson gave his approval to the banning of all necessary movement of people for at least three weeks. Police will have the power to break up gatherings and fine individuals who refuse to accept the new laws. The latest survey of the chinese economy Shows Companies reporting worse results through march. The china based firm says there was widespread decline in sales especially in retails and the collapse in revenue and profits. Meted asivity plum an china was put in lockdown to tackle the coronavirus. The Trump Administration is threatening to reduce aid to afghanistan. Kabul mike leaving pompeo said the u. S. Deeply regrets the lack of political rns washingtona could withdraw assistance immediately. 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. Yvonne thank you. We have not seen days like this for sometime. We heard from jpmorgan saying perhaps we had hit peak volatility. We are certainly are seeing a rebound here today when it comes to the asiapacific after we saw Global Equities fall to the 2016 lows. You are seeing emerging markets bounceback. As achina largely seen place of take shelter perhaps given the volatility, up 3 today. Were also watching the likes of Chinese Markets. 910 pointsng was up in hong kong. The likes of all sectors, mostly in the green today. Were watching big tech names like tencent. Shanghai composite. 2704. It looks like we could be avoiding entering that bear market territory today. And the nikkei 225 extending those gains. See how that plays out after that lunch break. Take a look at Southeast Asia markets we look at u. S. Futures and nifty futures, pointing positive. Southeast asia, seriously looking much better. The dollar snapping out of 10 days of gains, helping e. M. Today. The nifty today after that record meltdown yesterday. We plunged 13 . Looks like we could be on course for some type of turnaround today. The rupee at record lows. Hasas top diplomats exposed a possible rift within the common his party it is handling the coronavirus. On monday, chinas ambassador to the u. S. Refuted a conspiracy 30 theory which speculates the Inflection Point m ay have been introduced by the vice may have introduce the virus by the u. S. Army. How significant is this public spat . This is quite an unusuals wha split. You had chinas ambassador to the u. S. Public is saying he thinks that earlier rumors that were spread by Chinese Foreign crazy,y spokesman was and that the rumors are harmful and it is the job of scientists not diplomats to determine the origins of the virus. Signanalysts see that as a that Chinas Foreign Ministry may be having second thoughts about taking a more confrontational approach to trump. We have seen more conciliatory messages in recent days. Tweeting yesterday that coronavirus is challenging all of humanity at a time when solidarity the most. History will not forgive the u. S. And china if they goin into conflict at this time. Administrationmp has been escalating allegations against china. What are we hearing the latest when it comes to these different sell those . Salvos . The Virus Outbreak has been driving these two countries into deeper power struggle in addition to the ongoing trade and technological tensions between these countries. Trump has really been escalating as attacks and a nationals with National Security comments coverup byna of a hiding news of its outbreak from its own people. The new rhetoric from trump is a pivot when trump has praised xi jinpings efforts. And political analysts have said that trump is trying to shift blame in the u. S. At a time when he is seeking reelection. Some have noted this is part of trumps broader rhetoric to frame the u. S. As in a state of war to push blame onto a foreign power. Meantime, Chinese State media has been playing up the ineffective aspects of the u. S. Response and strategists say that is an attempt from china to deflect criticism of its early response when china seems to have the domestic situation under control. Yvonne thank you. Joining us now is gorana grgic, a lecture in Foreign Policy at the United States center at Th University of sydneye. You heard selina talking about the risky escalation we are seeing from the u. S. And china. Is it possible that two sides can look past these differences are we or are w entering into this newe cold war . U. S. Chinaly the relationship said editor more competitive face. It has been like this for the past couple years. Now and the kind of latest developments and the spiral with banning of the u. S. Journalists from washington post, new york times, wall street journal. Added further afield to the fire and the latest diplomatic spat hasnt done anything to help that. One thing to keep in mind is a lot of these accusations that are coming from both sides are serving a lot of domestic purposes, to basically deflect inm potential misdoings or ability to respond to the outbreak of covid19. In each of those countries. It is easier to blame the other side. Score political points and deflect from some of the issues within both the u. S. And chinese leadership. Yvonne deflecting blame. It seems like, when it comes to President Trump, his overall response of the coronaVirus Outbreak. Do you see that impacting what happens in november in any way . Gorana it is really hard to speculate what sort of developments we are yet to see unravel from late march to early november, but certainly donald trump now doesnt have that major part of his reelection bid, the strength and resilience of the economy to tout as his major achievement. What we see now is the rhetoric shifting actually to kind of war on the virus to the president becoming a peacetime to a wartim e president declaring a state of emergency. And basically just touting how healthy the economy was once upon a time before this virus hit. So, its certainly changing a lot of the calculations, and this is also why we are seeing ramped up nationalist rhetoric. The whole story around chinese virus and so on. So, the sort of that have been used in the context of 2016 campaign to rally the supporters to his side. Gorana, if the tit for tat continues what kind of Collateral Damage are we looking at . Gorana well, one thing is certain. Any sort of Pandemic Response needs to come from joining both countries to kind of work in a concerted way, multilaterally, rather than just doing things by themselves. If we have seen anything it is basically just in these early days the kind of responses have been strictly bringing back the rather than trying to work out solutions together. Because of the virus. That knows no nationalities or borders for that matter. Themore more we see intensification in terms of this major power rivalry, the worse off the world really is in that sense. If we still hold hope we can do something through more concerted action rather than being sort of piecel or piece by measures. Haslinda however you look at it, it is a power struggle between the between the u. S. And china. Is anyone emerging the weather . That given the gravity of the situation and everything we are learning from the pandemic, its extent and its severity, it is hard to see who the real winners are. I mean, the only thing that weve seen so far is maybe a glimpse of what the world could look like with a lower Carbon Footprint if thi sis the sort of Silver Lining that we might have been looking for, but certainly there has been a great human cost both in the kind of direct impact that has resulted from the outbreak of the pandemic but also the knock on effect of the economy. This is going to hurt everyone. Per ee wont be winners se in that calculation. Yvonne and perhaps a greater danger is that this virus has demonstrated from many countries that perhaps there has been an overreliance on china. And reliance on supply chains, for example. Once this is said and done companies will stay in china, or do you think we could see more globalization . F the contexteort o of the socalled trade wars. The imposition of tariffs on china and a lot of companies have been looking to basically move their supply chains or make them less reliant on production in china. And therefore, a lot of countries have profited around south and east asia but also some of the production might have been moved back closer to the in some cases in terms of the u. S. Production, for instance. But, obviously, we cant speculate what is going to over, once this is all but what we can certainly say is the life that we knew until early 2020 is probably not going to resume back to normal as it once was. So, even if we see some sort of greater integration in the present a sense of globalization, its probably going to be affected ina large way by some of these developments. Haslinda appreciate your insights. Gorana grgic lecturer in u. S. Politics at the university of sydney. How the worlds biggest lockdown sees india stocks go from they are expensive to extremely cheap in one fell swoop. This is bloomberg. Lets do a quick check of the latest business headlines. Haslinda is said to be in talks to raise a new 5 billion loan with a majority of two e years. Several companies are asking for additional liquidity. Honeywell tells bloomberg it still has access to the commercial paper market and its pension is overfunded. Disruption from the virus and slumping demand has forced the idling of almost all auto plants in the United States. Workers and60,000 includes 42 of 44 factors across the country. The auto sector has asked the government to delay supply chain rules in the usmca to ease the fallout from the virus. Yvonne we are counting down to the market open in india where the country will suspend all domestic flights. Indias lockdown has caused an unprecedented stock plunge. A day it was yesterday. Dave crazy, crazy. 11 . Drop all 50 stocks. We have yesterday. This is today was. Completely different nifty fellcks on the 50 fe as well. The most expensive market in asia went from something very expensive 8. 5 ford earnings and within two months that fell to 11 times, extremely cheap according to historical standards. These are unprecedented times. So, you have to rethink some of these assumptions on cash flow and earnings. Because parts of the economy are shutting down. But then again, we do not see something, you dont normally see this often, so i would imagine someone out there looking at these valuations would say, maybe have a look at some of these that may benefit. It comes out of the out of it relatively unscathed. Yvonne Bloomberg Economics cut their gpd forecast for india for the Fourth Quarter at 3. 3 . That is down from the 4. 5 estimate. Is that kind of downgrade or that kind of growth retraction really going to play out in the equity markets or is that priced in . David the estimate just came in. There is also an assumption from Bloomberg Economics. The main ascension fo assumption for the 3. 3 growth estimate is that disruption from the virus on india will peak in april. If that does not happen, it gets pushed back further. I would imagine that number goes down for the. Further. The previous one was 4. 5 . For the fiscal Fourth Quarter in india which is currently the third quarter. If we thought that 4. 5 was low, well, here we go, looking at a new normal as disruption continues. Yvonne haslinda david ingles. The boj awarding 89. 3 billion in dollar swap facility with the fed. This is to address the credit crunch that markets have been concerned about. Out of korea, announcing south korea is announcing the total of in market packages that will continue to see governments coming up with stimulus packages to prop up their economies. We heard overnight from the philippines coming up with a 5 billion to most package as well. Plenty more to come. A shakeup at softbank. He aims to offload assets to support his battered empire, including part of his stake in alibaba. Details from tokyo next. This is bloomberg. Softbank is set to be selling 14 billion of shares in alibaba as part of a plan to shore up its business battered by the coronavirus pandemic. Bloomberg finance reporter lulu chan has the story. Lulu softbank sells 14 billion of alibaba shares that would be a third of its planned rescue prackage. Its also planning to offload some shares a local telecom. Together that will form a 41 billion rescue package, an unprecedented rescue package. Is expected to use that to prop up the Softbank Group shares. Haslinda and what about alibaba . What effect will this have on the company . Immediately after softbank announced they were implementing those rescue plans, there was a solid in shares yesterday a sell off in shares yesterday. 14 billion. You can say that those shares can fluctuate. That would about i would 3 , 4 of alibabas market cap. Off we sawl yesterday, a lot of that has been priced in by investors. Alibaba announced last year there were a buying back 6 billion of their own shares. That will also help some of the fallout from all of this sell off that we are going to see coming into the markets. Yvonne you talk about this massive rescue plan. Does it do anything to change what the critics are saying with the recent wework debacle . Does it silent some of the critics now . Very masa is controversial. Theets a lot of grief for fact that he bombs everyone out of the water when he goes for deal. Uber. All of these ridehailing Companies Really gave them really lofty valuations. Whats happening in the Public Market is not helping a lot of the companies to go public right now. I think like even with the rescue package were still going to see softbank having to go through the challenge of a lot these portfolios struggling with their lofty valuations. That they got at the top of the market. Yvonne thank you. Joining us from hong kong. The bank of japan awarding 89. 3 billion and a dollar swap facility as we saw the fed expand credit lines with Central Banks and that helps when it comes to limiting the dollar shortage, the dollar strength. We see a little bit of weakness coming to the japanese yen. Off from the highs from the session at 110. 42. Certainly more signs that perhaps the dollar rampant rage could be starting to peter out a bit. We will see if the fed did enough to put a stop to that. Plenty more on the next hour. Well talk you through tylan iland marketsa are set to open in india after the records al sell of we saw yesterday. We have seen some signs of bring with the nikkei 225 and kospi leading gains in asia pacific today. This is bloomberg. [ one more time by daft punk ] woo [ laughing ] woo play pop music no way dude, play rock music yeah woah no matter what music you like, stream it now on pandora with xfinity. And dont forget to catch trolls world tour. Lets party people one more time haslinda it is a must 11 00 in the lion city. Im haslinda amin. Yvonne we are entering the last hour of the morning session in hong kong. Asian markets and u. S. Futures rise on Signs Congress will pass a stimulus bill. And can contain the virus follow. Says a likely recession maybe worse than after the financial crisis. Haslinda softbank leads the nikkei 225 higher on plans to offload its assets. It is selling part of its stake in alibaba. Yvonne investors are watching india were then locked down caused a big stock crash on record. There are warnings of half a cases. V virus some asianains in markets including korea, japan in new zealand. In excess of 6 . Lets have a look at where we are in terms of Chinese Markets. Up by 1. 8 . It is well, 2. 2 now. The market has been pretty resilient. We have breaking news out of korea. South korea will create a 20 trillion won bond market stabilization fund. Youre seeing Central Banks across asia adopting a similar move to prop up the economy as well as their respective currencies pi. The currencies of by almost 7 . Gains for the honk saying, up by 4 . Led by tencent. Ins biggest one day frop more than two years yesterday, and now trading at its deepest valuation. Major sectorr groups of the honk saying, they have been hit the worst so far. In terms of Southeast Asian markets. In the philippines the b centralbank announcing a 6 billion lifeline. The senate agreed last night to allow president duterte to realign is 2020 budget. To fight the coronavirus. Up by 4 . The thai market has slumped 40 this year. The baht, asias second worstperforming currency year today. Yvonne checking currency markets because was that liquidity from the fed gone nuclear that helped bring the down the dollar. You do see strength coming through into the japanese currency at 110. 37. We are off the highs after the boj did talk about the dollar swap. And the aussie 1. 8 higher. So, we are off those 17 goes for the aussie 17 lows for the aussie. India, afterion is the record meltdown we saw, looks like we could see some gains. Although it might not be able to recover all of the 11 to 13 drops that we saw. The rupee at record lows. Well see how things play out when they start to open in the indian 10year yield, stocks failed off 12 basis points higher at 6. 38. Just pull up this chart just to playing outngs are now because when you take a look at the technical indicators, you start to see the global stocks he msci all country index. That 50 day average is crossing the 200 day moving average. It is only happened three times in the last five years. The last time we saw that global stocks fell 16 before we saw a bottom. We could be seeing daytoday. These bear market rallies because some say we are not close to finding a bottom yet. Haslinda lets talk about the fed launching impressive measures to tackle the fallout from the coronavirus. Yvonne jumping ahead of congress is lawmakers argue over similars plan. Lets bring in kathleen hays. We are expecting q4, but this is more than that. On nuclear. When you run to those markets. It is not just the coronavirus but it is what it does to the market and what it does to the economies and there is no doubt that fe fed p ulled out all the stossel the latest in this package. First of all know limitation on how many Treasure Securities they are going to buy. This was one of the new tools that came out of the financial crisis. They are going to buy Mortgage Backed securities, commercial backed securities. Beyond that, what is so important is the two new funds that. Will allow them to assist the Corporate Bond markets that is not a big deal for them to buy Corporate Bonds but it is trading in the secondary market that is a big step. This is not been allowed by congress. This is something the fed is going to go ahead and do. They are going to use a special via carol a special vehicle where they have an intermediary. Expanding money market usual funds and expanding paper funding was holding. To support auto loans and student loans. There is no end in sight to the steps they are taking. Its clear they are concerned that they are going to not be able to assist the economy which is projected to be hit by its worst recession on record. Now, one thing to come back. A former fed official, who was president of the many of us of the minneapolis fed, wrote the fed should only be led into banks because when they led to corporationgs by buying security, they are taking on fiscal policy. This is what treasury does. But congress does this and by doing this they may be risk losing their independence where the white house can say, i need something finding. The fed is going to put that worried to that side because the threat to the economy and the Financial Markets exhibited already is so great, they are pulling out all the stops. Thats clear. The Daily White House virus briefing President Trump expanded on comments on possibly easing stayathome advice because of the headache it is causing. Not alone. Es many people in the United States,. Social distancing, they wish they can get tested. They are doing what they can to protect will people but they do see the steps that are being taken are damaging the economy and this is damaging to peoples lives as well. The president say you cannot turn off the entire economy to to contain the coronavirus. The cure cannot be worse than the problem. Lets listen to one of the many things he said. President trump were going to be opening up our country. Were going to be watching certain areas. Were going to be practicing everything that deborahas referring to and watching this closely. But you cannot keep it closed for the next, for years, ok . This is going away. Were going to win the battle ow, youalso have, you kn have tremendous responsibility. Guidelineshe virus were same mistake a couple weeks, lockdown, people stay home, stay away from each other and end of the at the end of the president is consulting with Health Care Experts on his team can. What can it mean for markets . It allows less damage to the coming may be at helps but at this point, there is a lot of governors who people think well push back. We will see where this goes next. Haslinda Global Economics and policy expert kathleen hays. Thank you so much for that. The g20 leaders are planning to hold a counfetele conference onh 26. We have yet to ascertain if this is in place of a physical meeting. Now, lets get. Back to markets. Bring back our guest. In l. A. Good to have you with us. From kathleen that there are some people saying that the fed should not have done it because it is a risk of perhaps losing its independence. What are your thoughts on it . Ben thank you very much for having us. I wouldnt agree with that because as kathleen said Financial Markets are not concerned with any kind of loss of independence at this point. For one, we have really low inflation. If not, we are going to end up in deflation. Thendly, really what Federal Reserves are doing is the emergency programs put in place to get stabilizations on the markets ongoing, because that is key. If we get markets stabilize, then we can also start working it into the economy and slowly restarted. This is what the key to it. It has less to do with the risk of loss of independence but ensuring the economy stays afloat. If we dont, we do end up in a Great Depression like the 1930s. So, Central Banks are committed. Haslinda you talked about stabilization. Are we seeing signs of stabilization . When we take a look at treasuries. Gains in asia today. Ben we do. There are indeed tentative signs. The treasury market really follow, low maturity treasurys are falling. You also see a good measure of liquidity narrowing. Market the fed is in the with huge quantities of liquidity, that the repo market become so liquid that is starts percolating. The liquidity starts to percolate in the system. So, the corporate debt market from that. Fects and months for weeks with liquidity programs, the stabilization in the market is really there. Yvonne ben, we have seen this avalanche of rate cuts and liquidity an injections. If this growthr shock we are going to see from coronavirus is short or transitory, what is the second half . Could we see a violent rally . Camp thattill in that you could potentially see that. One, the collapse and data will be very substantial now. Short of pmi data coming out of japan. Another example of major collapse. Were going to get this as well. Gdp in the Second Quarter everywhere will be really negative. Then you get the rebound, the shortterm effect. , there is so much liquidity arshed into the system it is f beyond what we had during the financial crisis. Its stepped up to such a record pace that i think that itself is a out and measure to get stabilization on markets into the economy spilling over. Of course, this is depending on we fight the virus and defeat it and hit the curve and stabilize. That matters, but i do think we are setting ourselves up for a much bigger recovery in the latter half, because of the actions we are seeing today. Haslinda the fed has provided dollar liquidity by the likes of boj, the boe, but the thing is the swaps need to be extended to emerging markets. Ben they took a big step last week by including several emerging markets. The example of korea. Thats a good example of where the dollar short is very extreme. There, i think that stress point is being addressed. The major hav already seen the effectse. What we call the currency basis the measure for the dollar liquidity fundin measureg. Those are starting on the euor aro and the yen. Its spilling over to emerging markets. Again, the percolation of liquidity, but it will have its effects. Emerging markets will see slowly but surely some pick up in liquidity. Yvonne you mentioned that we could be seeing some deflation. You see that with breakeven rates that are tumbling, the collapse in oil pressures. Oil prices. Watching we be more concerned about, deflation or inflation . Ben i would be more concerned with deflation. For one, we develop on the 2008 crisis with all the qe, that we did not get inflation. Second, if we go through a major contraction and the Second Quarter, that will put a huge amount of pressure on inflation going forward. Inflation will take a lot more time to recover than growth. Well see a rebounding growth but inflation, no. I think this is why the concern is more about deflation, especially because deflation can leave default. Thats the key concern. The central bank really intervene to not let that become a reality. Thats likely. Yvonne always great to have you. Thank you. Just want to break some lines coming through from thailand now. They are reporting another 106 more coronavirus cases, taking the total to 827. This is on the back of what we learned over the weekend on sunday with the partial lockdown in bangkok. Three more deaths in the country. New numbers coming from from pakistan. The Health Ministry reporting a total of 875 coronavirus cases and six dead in that country. Take a look at thai stocks. Seeing decent gains at the open. 15 minutes in, a 3 gain now. Su keenan is in new york. Servicevity in japans and manufacturing sectors has deteriorated sharply this month depressesonavirus Global Demand and halts factories and keeps consumer indoors. The latest numbers show a factory output plunged to a near 11 year low. This while th Service Sector recordede a record decline. The damage is expected to be even worse aif the Tokyo Olympic are postponed. Finance chiefs and central held anfrom the g20 emergency Conference Call to discuss how to handle the fallout from the coronavirus. The agenda included the likely damage to the Global Economy as well as how to work on a coordinated response. The impact on supply chains and consumer demand is expected to push the world into a recession. Which the imf fears could be worse than after the financial crisis. Latest surveyhe of the chinese economy, it shows or score suffering the on record with each individual sector reporting the worst results through marhc. Th the march. There wasbook says widespread decline in retail and the simultaneous collapse in revenue and profit. Ineady weak activity plotted plummetedty in february as china shut down to tackle the coronavirus. 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. Haslinda still ahead with look at how india stocks have gone from very expensive to super cheap in a matter of days and when a recovery might come. Center for disease dynamic 300s that india could face million positive virus cases by july. Well hear from his later this hour. This is bloomberg. Hong kong is taking drastic measures after asur sue in coronavirus diseases. Ban foreignl visitors for 14 days and stop serving in bars and restaurants. Lets look at the latest measures. Theate last week, government impose that 14 day mandatory quarantine, self isolation for all international arrivals. There were a lot of people they came back ahead of the deadline from various places whether it is the United States or europe. What weve seen in the first couple of days of this week is a sharp rise in new cases. We had 3090 cases yesterday. New cases and 30 were those with recent travel. The day before we had 44 new cases. The bulk were imported cases. So the government led, carrie lam. Basically banning all foreign arrivals, except hong kong residents for the next 14 days starting midnight tonight. As you said, going to close down barbars and pub scene and restaurants from serving all coal. Ohol. Om serving alchol. They think people get too sentiment. Restaurants will remain open, but if they cannot charge for alcohol its hard to make a profit or break even unjust food on the menu. That is the case right now. Fore harsher penalties quarantine violators. There have been several prosecutions according to the judiciary. Getting news in the next hour macau is tiny mr. Schatz requiring a 14 day medical officer is tightening its requirements. Banning mainland chinese, hong kong and china residents that have trouble overseas in the past 14 days. Macau is going to be a bit of a ghost town. Its going to be tough there. Haslinda how about the situation in europe . Italy seeing its infection rate dropping but the u. K. Going to fall lucked out. 0 lockdown. Italy is the epicenter of the outbreak in europe. They now have 6077 deaths. Cases. 3,927 italy obviously is in a tough situation but for the second day in a row there were fewer deaths. Add, there were a couple of days ago. K. , they are going to lockdown for monday night. Lawrence johnson calls it a National Emergency. Boris johnson called a National Emergency putting a ban on on necessary movement for three weeks. Police can fine people. Johnson has been criticized for acting a little bit too late. They have 6726 cases. 335 deaths in the u. K. Yvonne thank you. Stephen engle. The Numbers Alarming in europe. We got the numbers coming from india. They confirmed coronavirus cases, new ones 492, including nine deaths. That 492 is an additional 25 from what we saw yesterday. Were going to talk more for the center to disease dynamics about what they are projecting now. Were talking about 300 to 500 Million People in india that could get it by july. India futures seeing a turnaround across the globe. U. S. Futures up 3 . The nifty as well. Could be for a could be a good day for mumbai, up 5 . This is bloomberg. Haslinda you are watching Bloomberg Markets asia. Some headlines to tell you about. 4. 5ts Capital Program to billion Canadian Dollars on weak oil pirices. Canada is the first price war casual. Wti currently up by 4 . Brent crude bup by 3 . A quick check on the latest business flash headlines. The coronavirus the carrier is to reduce salaries and allowances next month with management pay cut by 50 . Ceo says the Economic Impact of the spreading infection means they will have no choice but to lay off some workers as well. Boeing is shutting down its seattle manufacturing hub for two weeks. Activity at the factories will start winding down immediately and halt on wednesday. Workers will receive 10 days of paid leave while factories are deepl cleaned. Yvonne green on the board. In fact, we are staying at these levels pretty much slowly edging higher. We are close to 2 higher. Shanghai composite as well just breaking about the 2700 mark. And the shenzhen price benchmark looking pretty decent here today. Holding pretty steady right now. Of course, waiting for some key data like production coming up later this week. Plenty more to come. This is bloomberg. In singapore, we are in the middle of the trading day. Up by 3 . Imf has been urging Financial Institution to adopt distancing after singapore reported its highs increase in a day. In the philippines some breaking news. The philippines to cut the Bank Reserve Ratio by 200 basis points according to the central bank governor. Remember that he provided a lifeline of 5 billion just last evening. The philippines joining measures out there by some banks to prop up their economies. Now lets get the first word headlines with sue canno keenan. Su the latest on the coronavirus continuing to infect people around the world. There are some signs of hope. The Lombardy Region around milan has reported a slowing of new cases, posting a decline for the second day running. The latest virus tally from Johns Hopkins university and the u. S. Puts global cases at 381,0 people reported150 dead. 80 nations have so far asked the imf for emergency financing. To win we need to attack the virus with aggressive and targeted tactics. Testing every suspected case, isolating and caring for every confirmed case, and tracing and quarantining every close contact. Su meanwhile the Federal Reserve announced a sweeping additional measures to support the u. S. Economy from the fallout of coronavirus, saying it will buy unlimited amounts of Treasury Bonds and Mortgage Backed securities. The news came ahead of a Second Senate vote on a republican 2 trillion. An worth democrats again declined to advance the bill despite dire predictions of a deep recession. United kingdom is being ordered into lockdown beginning on monday night. Amid sweeping new measures to keep people at home. Johnsonnister boris gave his approval to banning all unnecessary movement of people for at least three weeks. Police will have the power to break up gatherings and fine individuals refuse to accept the new laws. And the Trump Administration is threading to reduce aid to afghanistan by 1 billion this year, saying more cuts could come as the failure to reach a unity agreement derails a peace deal. Mike pompeo said the u. S deeply regrets the lack of political progress and warned washington will withdraw assistance immediately. 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. Haslinda lets recap some of the headlines all the philippines. The governors saying the philippines will cut Bank Reserve Ratio by 200 basis points and that will be effective from march 30. Banks reserve ratio will be cut by 200 basis points. Now lets take a look at how the asian markets are doing. Solid gains across korea and japan and new zealand. The nikkei 225 posting a gain of 6 , the biggest increase since 2016. The boj awarding and 89 billion swap facility with the fed. Byuch sought after move japan. Were also taking a look at where the hang seng is, up by 3. 6 . It saw its biggest oneday drop in more than two years yesterday now trading at his cheapest valuations. Take a look at where we are in terms of the other markets and in terms of india. India currently up by 4. . Nifty futures pointing to a higher open there. The benchmark plunged to a record 14 . The move tover amid lockdown the country amid widespread areas. Indias has gone from very expensive to very cheap. 10year yields at 6. 38 right now. Yvonne some strength coming through for the rupee. A little bit of a breather when it comes to the mumbai session. As the Global Pandemic continues to cause unprecedented economic and social disruption, more common is the revised guidance or pulled mthem out altogether. Dave, lets talk with those that guidance. Hed david we heard from twitter. A good example of seeing users, of people coming back on the platform. 164 million, doubledigit percent of gains compared to last year. As far as the underlying financial metrics are concerned, they are lowering the their revenue targets. Revenue objectives. Theyre also now expecting a loss first quarter. Advertising revenue is falling as well. Rofit, they have basically now pulled their advisors for head counts and Capital Expenditure as well. Im sure twitter is one of this growing list of companies that simply just cant keep up with the changes out there. Slashed dave, some guidance and others pulled their guidance completely. It is challenging to be pricing in all of the risk in all of the uncertainty. David you need at least several constants you can assume with high probability are not going to change. A very example of one good company a very good example of one company that came out and said were going to pull our 2020 guidance. Ab inbev. They are closing pubs in the u. K. , here in the hong kong, the government will start asking to stop serving alcohol as well. The scale and the magnitude of everything changing is probably better to pull it than to revise it as well. Its a very a good example of yet another company thats sa ying wait a minute, even analysts are saying it is hard to keep up. Lets better not come up with a number just now. David ingles, thank you for that. Bill ackerman is making recovery bet on the u. S. Economy, investing 2. 5 billion in week. He spoke to bloomberg a little earlier. 8 in starbucks and we bought more stock in Berkshire Hathaway and we bought more start, we couldnt buy chipotle. Some companies are actually going to be longterm beneficiaries. It is not just zoom technologies otle will be a very longterm beneficiary. They have great delivery and great tasting food, in expensive. You can feed an entire family with a couple of readers. Burritos. The customers are going more and more online for digital delivery. The revenues today are less than they were a couple months ago but quickly people are going to get used to, tired of having momos food. And they are going to order in. Thats true for fast food. Lowes, we bought a lot more stock in lowes. Lowes is considered part of a Critical Infrastructure along with home depot. Inneed to keep them open order to keep society functioning. They will do fine. Again, everyone does better in the event this period is sh orter. The key is you have to set an end date. You cannot say be going to furlough and we will see you in ninemonth. That kills every business. Almost every hotel is orectively shuttered, accuracy is down 90 to 100 . See while people cancel the room nights overnight they can wrap up very quickly as we recover. Were making a huge recovery bet. 2. 5 billion in 10, 12 days of investing. Bullishbout the most thing we have done. Going from very a very large short in the credit markets. That was gone as of this morning and we took the rest off earlier in the morning. All long. Betting on the country. Yvonne that was bill ackman. We are coming down to the opening of the session in india. Futures continue to point to gains. Futures in singapore pointing a 4. 5 gain in mumbai. This is bloomberg. India will suspend all domestic flights from midnight tuesday. The last piece of the countrys lockdown puzzle. Companies are struggling to ensure that one million such as banks and airlines and insurers can stay online. To our Southeast Asia editor with more from new delhi. I guess its safe to say a lot of these companies are struggling with this lockdown in india. Yes, they are. I mean, you have got global giants Like Deutsche Bank working with a local Industry Group to ensure that india stays essential services. So staff can continue to work from offices. And meanwhile you have got other indian firms that employ 4 Million People. Theyve asked their clients to relax privacy requirement, so if employees have to work from home during this lockdown can still do their jobs. Yvonne what are the privacy concerns right now . Are there many . Privacy is a big issue because this is Sensitive Data that millions of workers are processing. And the prospect of them having to process from home is a big concern. Many companies do not allow them to carry their mobile phones into the workplace. Now they may have to work with this information in their homes. There is significant concern. Haslinda ruth, how about the Informal Sector . How will it be impacted and also the impact on an economy that is already slowing at the biggest pace in years . Ruth thats right. Its growing at its slowest pace in 11 years. Ais lockdown is going to have very dampening effect on the economy. Now, for the countrys 450 milli on day laborers, we are talking about the home health, the street sweepers, the uber drivers and rickshaw drivers, they have basically just income. Lost their we are only talking about a couple of weeks into the locked him they will have Serious Problems providing food and shelter for their families. This lockdown is going to have a massive impact on indias economy and we have not seen the worst of it yet. You so much for that. Were coming down to the indian open. Were hoping to see some reprieve in the indian market today after a record plunge of 13 . Hadnow that india shares gone from very expensive to very cheap. The rupee sank to its lowest level on record. Modi trying to put a lid on the spread of coronavirus in the country. We heard about the lockdown whether or not that is effective, that is the question were asking. Of course, that has had a huge impact on india. Islobal rush for cash forcing investors to dump indian in two decades. Lets take a look at where it is. Whether it is in line, trading up by 4 , as indicated by the futures. The sensex up as much. We are seeing a bit of reprieve for the rupee, slightly stronger at 76. 05. Guest thingst india may see between 300 and 500 million positive Coronavirus Infections by july. Guest, founder and director of the center for disease. A Public Health Research Group in new delhi. Good to have you with us. Just wondering why so pessimistic . Why the huge possible number of infections . A disease to which literally no one has immunity. And the same estimates are there in the u. S. Or the u. K. Terms of population. That said, most of these infections are mild or not noticeable. Is not theo focus on number but the focus should be on the number of severe infections, which could overwhelm the health system. When its at its peak. Thats really what the data is confirmed. I should also say those are baseline numbers. Without the interventions that have been put in place. Our estimates are that this kind of a lockdown for a two week period can knocked down that number of infections by 70 . Haslinda some say the lockdown has been pretty chaotic. I mean, how effective can that be . Well, i think the lockdown started slightly chaotic. It was a voluntary shutdown. Which was intended to get the population on board. Its gone progressively stronger. Th emost porton part really the most important part is the shutdown of interstate traffic. The railways in the airlines will be shot and bus travel will be shot which will allow for the cases inwn states with fewer infections s. All of the cases mostly showed up in the west of india where new delhi, mumbai, the biggest cities, and then bangalore. Then will move progressively east. He dynamics we are trying to slow down as well is the dynamics within each state. An extreme lockdown, which is already happening. Haslinda yvonne you mentioned the 300 to 500 million estimate. What sort of timeline are we looking out for a country that is so densely populated in terms of medically, poorly equipped. Is this a trajectory you are seeing similar to italy, for example or the u. S. Or other parts of europe . Know. S hard ot there are other valuables at play. India is a Young Country relative to italy. Therefore the proportion of the population of elderly is lower. Herd community sufficiently amongst the younger prevents as dire situation as what happened in italy. But were also seeing in the literature coming out of china that children are affected. Theres a lot of unknowns of how this will play out in india. Doingl we could end up better on a per capita basis but things could be just as bad. The honest truth is nobody really knows at this point. Haslinda yvonne you mentioned india is different than many countries. Ourere just talking to colleague in mumbai about the informal workforce were if they and up half of the gdp, make two dollars a day and they do not have the luxury of social distancing or access to health care. Is the government doing enough for the poor, or do you think the impact will be worse than what we saw during the demonetization . The impact on the entire country is going to be dramatic. But the focus right now by the government is not on the economy per se. Its making sure that people dont die. That should take president s at this point precedents at this point in time. On, theyeeks go were look at ameliorating effect on everyone, the farmers, day laborers. Youre talking about hundreds of melons the people and everything in india gets amplified compared to other countries. Youre talking that hundreds of millions of people. There will be hard work in the days and weeks and months and years ahead to be honest. Haslinda you talk about amplification. This is a country so large. Areas. Lot of rural how about in terms of health care sensibility . Can rural areas Access Health care . That is really a concern. Critical care and oxygen cylinders typically are not widespread outside of capitals. The state capitals and to some extent they are available in district capitals. Theres now a serious effort to figure out how to get this kind of equipment into the places that are projected to be the most affected. This is nothing short of war in the sense of the mobilization the country is going through. And the work that is going into it, industrial groups. Who said they will make ventilators in response to people telling them, we dont have enough ventilators in the country and the government is trying to picture to procure icu beds. Infection, we are vastly under resourced in terms of Human Capacity as well as bed capacity to solve the problem. But the other side is that gearing up for it and i do not think anyone is under the illusion that the lockdown alone is sufficient. The lockdown well cut number of infections at the peak, but we will have a peak of some sort and everyone is gearing up for that as well. Yvonne you are also in economist as well. Can you help us quantify the hit this coronavirus can have on india which is already struggling to bounce back from the 11 year lows when it comes to growth . A h oonestly, im not macroeconomy, but let me say that there is aggregate growth which is driven by but the large component of our Economic Growth which is from rural india. My deep concern is that rural ndia where infections are because of Migrant Workers going back to the cities because there are no jobs. Millionsen videos of getting on whatever transport they could to go back to their villages. And i think rural india will take a big hit and will need a lot of help to come back. I think that the corporate sector and the i. T. Sector, they can work from home and they will bounce back a lot faster. And some of the hits to india will come from the fact that the rest of the world, everyone is taking a hit. And india would be no different as im sure it is in everything a country. The center for disease dynamics economics and policy in new delhi. We have something to tell you about. Stephen mnuchin saying that they are very close to the deal tonight. No stimulus deal tonight. But they are very close, and that is according to politico. Well, plenty more to come. This is bloomberg. The biggest equity shareholders have plunged 24 billion since january. It controls multibillion dollar steaks from the likes of alibaba. Lets go to Asia Investment reported. David, why has temasek suffered so badly. Temasek has a lot of holdings in singapore. Hassingapore as an economy gone down by quite a bit over the last few months. Seen airlines, shipping, banks and retail go down. There are no safe havens at the moment. Haslinda what does it mean for temasek going forward, then . David it basically means that a lot of its Portfolio Companies will need a lot of capital to stay solvent. Theyre going to need money. You saw Singapore Airlines cutting 96 of its capacity recently. If they dont get a lot of cash from existing shareholders, emasek, they may will collapse. Yvonne temasek not the only state fund suffering from volatility now. Shows how much green where seeing it we have not seen days like this for some time. The dollar seems to be living that safe haven status after the fed stimulus we saw overnight. You are seeing continued gains when it comes to the aussie dollar and the kiwi. E. M. Having a good day although we see strengths and the japanese yen. That is not stopped equities from getting the best since 2016. New zealand leading the pack up close to 7 . Crude we are off of the highs but seeing gains of 3. 5 . Plenty more ahead. This is bloomberg. Yousef this is bloomberg daybreak middle east. Headlines, starting off with stories from asian markets. Signs that congress will pass a stimulus bill. It may be worse than after the financial crisis. The latest Economic Survey shows the worst quarter on record with every