Transcripts For BLOOMBERG Bloomberg Markets Asia 20240713

Markets i treasuries as well. The aussie 10 year yield down 16 basis points and money rush into the end. Oil in a bit of a freefall once again. Brent crude down more than 6. 5 . We areke below 20 and watching indonesia here in particular just coming online. The stock index drops re. 5 . Once again, we are seeing a lot of these em volatilities, back once again. We are watching the pboc after that interesting move to cut the seven day repo rate by 20 basis points so they are joining in on the stimulus ways. Lets get more on this with david ingles coming forward. We are watching u. S. Futures in particular continue to head lower. Lets start with the 7 billion injection into the system. I mean, quite a bit. David yes. A couple of things i guess to get out there. You dont normally see a reduction of this magnitude from the pboc. You also have to consider the fact that we know the economy is not doing well and in fact, the latest forecasts now suggest quarter on quarter, you take the median. That is two. Second one, you are getting more and more of the pbocs peers. It is a very good example for today. They are deepening reductions in Interest Rates, in the amount of liquidity, and support that they are giving the economy. The pboc has not in fact, out and ejected injected liquidity. 28 to 29 days. Theome point, netnet, Chinese Renminbi is going to look very, very attractive given that everyone else is moving down in the pboc is not. That is another thing to note as well. Rate. N the seven day repo money market rates and china have been down as well. It might not look as big as that. This might be a coincidence. Day repo. Is the seven we have come from 4 in 2015. It might be a coincidence. It is up to you guys what to do with the information. Last time the pboc actually reduced this rate by more than what we saw today, we were in the weeks and months leading up to the 2015 one up devaluation of the Chinese Renminbi. I am not saying we are headed towards that direction but given the state of the economy there and the state of the Global Economy and external demand of demandinto sapping the for chinese exports, for example, and their trading partners, a strong current the is something you do not want to have at this point in time. Also, the mes out of action today, delivered a pretty unprecedented easing. Tell us more. David what they did with their settings, and i know it can get very confusing with all the terms, the slope, the width, the center, what have you. He read the statement on the website for everyone to read as well is that back to my earlier point, is that appreciation of the currency is not a welcome dynamic to have right now. The economy is expected to enter a recession this year as well, thehat they have done with sneer is zero appreciation. Last time we had that was back in 2008. In other words, they eased as expected by the market and the singapore currency, 143 against the u. S. Dollar. Yvonne anything else we should watch out for this week . David where do we start . [laughter] david where do we start . Earnings is going to be a big focus in hong kong this week if you look at fundamentals. Volatility will continue as well. I want to show you a chart later on in the program where you have the 10 day, 15 day, 20 day, and moving averages in the vix moving up, getting rid of the aberrations as well. Pmi numbers coming out tomorrow out of china will be very big because that is going to answer two questions. One is to what extent did china come back online for march, and the other thing that will help as well is toward the month of march, that is where we are seeing chinas trading partners shutting down so that partly will help answer the question, is it going to be vshaped, ushaped . What letter you want to pick out of the alphabet right now, and how will we price in the recovery, yield curves, earning specifications, fair value of assets right now. Longhow much really how will we be in this boat for . Leave it lets there and get to our guests at for fidelity, international director. Good to have you with us. Let us start with the mas. It did recenter, it did reduce the slope, but at the end of the day, it was still saying fiscal measures will help singapore overcome the impact of the virus. Fair assessment or not . Yes, exactly. Im in, that is exactly what we are seeing in this sun oreo, where markets are still in uncharted territory. You know, we have governments around the world focusing on trying to contain this pandemic. What is important from trying to contain the economic dislocation is really to provide some kind of fiscal stimulus, and that is like a concerted effort that we see. Whether it is the u. S. , whether it is governments in asia, everybody is trying to do something, and there could be different ways of doing it and it is not the end yet, so that is where we are as we assess this sort of disruption or dislocation from an economy standpoint. I am just wondering what impact that will have on the seeing dollar, which is already nghseeing dollar si dollar . Medha i mean, we are not trying to make currency forecast but what we are seeing, generally speaking, is on the one hand, you do have the u. S. Dollar under a bit of pressure. It does mean that emerging market currencies could be a little bit held up at the same time, but what we are really focusing on is the impact of fx on Company Balance sheets and trying to sort of look beyond the shortterm noise, the shortterm sharp movements that we see in markets, in currencies, and trying to assess which kind of companies are able to weather the storm. Somee we are expecting pmis in asia this week. Do you think markets are willing to look past how bad they are going to be similar to what we saw when the u. S. Jobless claims reached a 3 million plus and markets just shrugged it all off . Medha so i think markets already are expecting shortterm numbers to be not good. In fact, quite terrible, whether it is headlined gdp, growth numbers, employment, and that is really key. It is really sort of this notion of first in, first out. When you look at economies around the world, so china has got into it first. China seems to be coming out slowly, so employment will be key. How do the factories get back to normal, to what extent, what is the capacity that you are seeing here . We are seeing here . That is how you have to start when you assess the impact of this across sectors and companies. Yvonne how do you start positioning once this virus peaks . What do you start looking for when it comes to entry points . Do you think that now that we have seen various stimulus measures kicking in that there is a bit of a turning point now . What markets are really telling us is that we are still in uncharted territory. There are questions on the timing of the stimulus, how long, and will this be enough . That is one aspect of it. At the same time, when you look at the stages of this pandemic, you have got into escalation. The epicenter has shifted to the u. S. Now, it is also about containment, where we that are really are at the beginning with china showing some sort of that. We are far from recovery yet. Time. Ould take some given that, valuations have been quite supportive because you have seen indiscriminate selling right from china to india, which continues to be in knocked down. We have seen highquality names have been down indiscriminately and valuations are looking attractive, so it is really about trying to be selective, not just focusing on highgrowth areas for the future but perhaps also the time to be contrary and and trying to see where there is value and which companies can also emerge here. I am wondering whether the markets are still too optimistic. If you go back to 2008 and 1999, markets were down Something Like 50 . Right now, with the recent alley, it is only down 25 . How much more downside given that we are expecting week data from here . Weak data from here . Medha just the downside would really depend on a combination of factors. One is the data points, as you pointed out, but also in terms of numbers, in terms of the outbreak, the pandemic, where do they peak and where do they start stabilizing . That is the second phase of this whole process before we get into recovery. And it is really going to be hard to call those bottoms but its about actively engaging with the companies and trying to figure out what are Balance Sheets telling us . Where israel cash . Is is real cash . Is there unreasonable levels of debt . Even if you dont find the absolute bottom, what youre trying to see is that getting to positions with marginal safety out there. Yvonne what would be a contrarian call right now . Well, we are looking at opportunities across china as well as in india. From has been a market first in, first out valuations looking attractive. That is the highgrowth side of china. When we talk to companies, they are reinforcing that people are coming back to work. Traffic levels have stabilized. And improving. Companies, before this crisis, who were talking about the income side of giving back to shareholders, it is all this sort of dividend payouts. That is quite interesting for us. Has traditionally been a very high market and where valuations have now been sold down. Its really about those highquality names so we are seeing opportunities across both those areas. Yvonne thank you. Medha samant joining us from hong kong. First word news with Karina Mitchell in new york. Karina an additional budget in the next 10 days to file the coronavirus with shinzo abe warning of a long battle ahead. He said people must remain vigilant but ruled out the need for a state of National Emergency for the time being. Reports from tokyo say the postponed olympics may be held in july next year. Organizers are planning to make july 23, 20 21, the opening date. At the u. K. Government is warning the nationwide virus knocked down could last for months, not weeks, and the number of deaths is expected to rise. Ministers are considering tighter distancing measures to control the outbreak of current rules prove inadequate. Boris johnson remains in isolation after testing positive for the infection. New images from the European Space agency show industrial emissions falling as the during thelows coronavirus. Major air Quality Improvements from march 14 to 25th. Italy reports a second straight daily fall in the number of virus deaths. Italy and spain remain the hardest hit nations in europe with total fatalities between the two topping 17,000. Jeffries said the cfo of its main subsidiary has died from complications linked to coronavirus, marking one of the first reported deaths among wall street figures. 2007d been cfo since late following a 16 year career at morgan stanley. The news comes as thousands of traders deemed essential to working life continued to head into the office every day. Global news, 24 hours a day, on air and on quicktake by bloomberg, powered by more than 2700 journalists and analysts in more than 120 countries. I am Karina Mitchell. This is bloomberg. Yvonne thanks. Still ahead on Bloomberg Markets asia, oil tanks on both sides of the atlantic as the coronavirus wreaks have it havoc with a market drowning in crude. China looks at the headwinds and opportunities facing logistics with a cfo. This is bloomberg. Yvonne just want to bring you some of the latest pictures coming out from beijing. This is the ministry of industry and Information Technology holding a briefing on the resumption of manufacturing in china following this virus outbreak. They seem to be sending a message of caution, saying exporters face greater risks as virus cases rise. Also urging close attention on the challenges and timely steps. This of course as factories are getting back on their feet in china, but we are just talking partnerst week about like spain, italy, as they deal with shutdowns, cutting off orders to chinese factories as well, so things are back on track. The external picture still remains quite murky out there. Haslinda hong kongs number two Government Official is pledging more Financial Support for struggling Small Businesses as well as workers. Social gathering restrictions were put in place over the weekend. Our chief north later correspondent joins us now. Stephen engle, this is not surprising. People and businesses do need help. Stephen thats right. I was out yesterday, albeit very briefly, in the bay area of hong kong. It was empty. Shops were not full at all. Even if they were open. That is what is happening in hong kong right now. Enterprises are getting the brunt of this damage, if you will, because they had seven months of protests damage, now going on a couple of months of coronavirus, and now, we are having increased restrictions coming down from the government as of friday that were enacted this weekend. Cannot have social gatherings of more than four people. Restaurants have to have half the capacity. The food and Beverage Industry is getting pummeled. The number two official after carrie lam in the blog post yesterday saying more stimulus. Another package is coming that will target the Small Businesses as well as the workers who cannot make ends meet, however, in that blog post, fairly informal, did not give a timeline on that or the scope and size of that financial assistance. Right now, like many places in the world, hong kong is trying to whether this out and these new restrictions will be for 14 days. They are worried about the resurgence of the important cases. Hong kong has 641 cases, another 59 reported yesterday after 64 cases on saturday. Four deaths still for the mortality number. 641 cases in hong kong and a population of 7. 5 million. Yvonne more social distancing across the region as well, steve, with singapore. We heard some more measures there. It indonesia now even considering a massive quarantine. Stephen thats right. This quarantine is likely to be decided on today. It could affect some 30 Million People in western java. That is the area in and around jakarta. Ricarda has more than twice the of infections nationwide, which of course is in our post an archipelago of many islands. They are trying to get ahead of the spread from one island to the next. Jakarta has 675 cases out of 1285 nationwide. Inre are 114 deaths indonesia, the most in Southeast Asia. They want to get ahead of that, especially ahead of the migrant travel season, which is coming up next month as the end of the fasting month starts, so they are considering a fairly dramatic lockdown of some 30 Million People. To keep those Migrant Workers from returning to their hometown and spreading, potentially spreading the virus. Singapore 840 four cases. Three deaths. An emergingtting from the government. Stay home. Order food online. Do not go out. This is in addition to other restrictions such as banning shortterm visitors as well as closing down pubs and cinemas. Singapore wants to battle the imported cases of the virus. Haslinda airlines and tourism pretty much at a standstill. Muchen engle, thank you so for that. Still to come, we look at the impact of the coronavirus outbreak with key figures from the asia pac. Keep it here with us. This is bloomberg. Haslinda welcome back. Heres the latest business flash headlines. Chinas number two lender reports higher profits from last year, improving its defenses against potential losses from the economy at the start of 2020. Construction income rose to 30 billion, slightly better than the average estimate in a bloomberg survey. They seem to whether the trade war and the economic slowdown from the virus. Sinopec has refiner reported fouryear earnings down 7 as the rising fuel glut on the mainland hits office. Net income jumped 8 billion last year from 8. 6 billion in 2018. Operating profit fell 44 , highlighting week domestic demand for fuel. Chinese electric vehicle maker byd is planning to offer a full range of parts to its rivals in an attempt to diversify revenue sources. Companyen buffett back sells complete cars but would also offer competitive batteries, powertrains, and lights. Byd has been chinas leading maker of alternative energy for at least the last yvonne taking a look at your movers here today in the asiapacific, we are heading mostly lower but we have seen some standouts when it comes to the health care sector. You see the likes of Fujifilm Holdings in japan. They will be trialing for the coronavirus. A potential newcomer for the virus. It is a big leader on the board and south korea, up 13. 5 percent. Another biotech name. Health care in focus today. We are watching some of the tech names up 6 . On the flipside, the worstperforming is wanda film holdings, and the terrorism stocks are taking a hit today given some of the coronavirus jitters we are seeing in the market and of course, we are following the Energy Sector in particular with oil in a tumble. To 15 . Close plenty more to come. Walk you through all the moves we have seen in the last couple of hours. It certainly has been quite actionpacked with pboc cut and the sevenday ricoh rate. Repo rate. We are seeing that benchmark down more than 3 . This is bloomberg. Beyond the routine checkups. Beyond the notsoroutine cases. Comcast business is helping doctors provide care in whole new ways. All working with a new generation of technologies powered by our gigspeed network. Because beyond technology. There is human ingenuity. Every day, comcast business is helping businesses go beyond the expected. To do the extraordinary. Take your business beyond. Just want to bring you an update when it comes to your markets. Seems to be once again a riskoff session after what was a pretty decent week that we saw. In asian stocks were seeing the biggest weekly rise since 1990 last week. That all came to a stop this morning. We continue to hear more threats or fears of this infection in the u. S. 200,000 could be the death toll according to anthony fauci. You have the pboc stepping in. The mas with stimulus as well. That seems to be at least trying to at least keep the losses limited here at the moment. In the hang seng down 1. 3 . Off the lows in the asian session. Down 3 . Lets flip the boards and watch the class b, taiwan. I mentioned to singapore. There was confusion on my part. Slope asecenter the well as reduce the slope to zero for the currency band so certainly, that was what was expected for the markets are you are not seeing that much of an upside here when it comes to that. Down 3. 6 and we are watching when it comes to u. S. Futures and indio futures. U. S. Futures head lower. The nifty, take a look at that, down 2. 3 . This is despite the fact that we have the r. B. I. On friday, cut rates by 75 basis points, rejection of liquidity. They relaxed rules for the banks as well. Equity markets took it as a way of the r. B. I. Running out of bullets. A different story when it came to the rupee as well as the bond market but equity took a hit from that. You are talking about chinas injection of liquidity into the financial system. Open Market Operations for the first time in six weeks. It also cut rates. Tom mackenzie joins us from beijing. Tom, take us through the details. I cut rates for the first time in about six weeks from february for the last time they did this. You have an injection of 7 billion u. S. Dollars into the financial system, into the banking system. Additional liquidity comes after the politburo statement on friday said that they are looking to raise the deficit ratio. It has not been about the reports and 3 . Looks like they will raise the deficit. The exact tumble at the National Peoples Congress Whenever that takes place. Just as officials are starting to change tack as they see the impact of the coronavirus on some of the main sources of demand for chinese goods. The likes of the European Union and the United States, so that is crashing the demand picture impacting supply chain so you are getting more of an easing emphasis now and that injection of liquidity and the cuts to the rates for the sevenday reverse repose underscore to that. We are not likely to get the stimulus we saw in 2008, 2 thousand nine, but nonetheless, the emphasis has shifted. In terms of the actual infection rates in china, those continue to slow, so imported rates increase imported numbers were 31. 30 out of 31 were imported and that is the latest set of numbers, down from 54 that we got on the previous set in terms of the infection rate in china. We did see some scuffles between some residents in hubei as they tried to cross over into zheng she province. They are trying to soften some of the restrictions on the movement of people. We have president xi jinping heading to the port city and the state media saying that was to emphasize the officials for president xi himself, bringing the economy back in focus that is a clear priority as they continue to try to keep a check on the disease itself. The number of steps we are seeing from officials for the president down to people on the ground trying to get the economy again back into a clearer setting and to ramp it up in terms of where we go with the economy and the strength they hope to see in the second half of this year. Yvonne we are still seeing when it comes to corporate leverage in china, that is still ramping up. It is, so corporate debt was a Success Story in 2019. They managed to get the corporate debt levels down. 163 percent. Rom that was the peak in 2016 so corporate debt levels was clearly a concern but they are going to rise again. Its almost inevitable because companies will have to issue more bonds. The rates have been the lowest for about 40 years so they want to take advantage of that to rollover some existing debt and ensure they continue to fund their operations but it is a price essentially they will have to pay if they going to weather the impact we have seen, the kind of impact we have seen for january and february. There is the question of consumer demand and Consumer Debt levels. Those will continue to rise. Credit card lending and banks might see a tick up on the consumer side that is not being paid back. That might be a concern in the Retail Sector. We can switch the focus now to logistics. To, one of the z the leading Logistics Companies in china. He joins us. What is the impact of the virus and the shutdown on your Logistics Business . January february total volume is down in the teens and the it is definitely impacting our business. So far since the returning of february,e end of march performance has been reasonable. In fact, the total First Quarter because of the march growth might be at a flat yearoveryear in terms of volume. Logistics is one of the Strategic Industries and government is putting a lot of emphasis on and also putting a lot of resources on to support for it to get up to speed ahead of many other industries in china. And when you look at which sectors of the economy here in china are showing the strongest strength in terms of demand for logistics at this stage . Huiping we still think the manufacturing is not fully up to speed. The reports out for january and february retail. The total is down by over 20 yearoveryear. Retail is up 3 . Within which food and consumer burns consumables are up. We think that for supporting daytoday living, those are still in line with the reasonable level compared to precrisis. We have just seen the pboc cutting rates and injecting more liquidity. How would you characterize the liquidity environment at this stage . Our rates low enough that you have seen the impact . Government is really looking at what the policy could do on a gradual basis. Certainly, we look at our business. Our ve over 40,000 of 30,000 of our outlets, and they are feeling the pinch. The revenue has not come in for the first two months. In march, what we did is financing segment to support providing liquidity shortterm as well as longterm. It is not a flood the market with money but more so watching what the recovery is doing and i think on the count, the recovery has been rather well and reasonable so i think the rates right now, the rate cuts right now, is reasonably sufficient. Yvonne thank you so much for joining us. What are some of the Lessons Learned from dealing with a crisis like this . Where there things that zto did particularly right and where their parts you think could have done better to may be a an event like this again . Huiping certainly, i think, to asid it is not feasible, but you said, what we could do better Going Forward the distribution of information, where it goes straight from the end of ourthe very Business Network made a huge difference, so when the information pushed through at the first moment, and everybody what we could learn from that experience is even sometimes when information was distributed, such pandemic or such crisis to people compared to their daily lives is a shop, disparityly realize and take action to the extent necessarily is something that we should learn Going Forward. If such things happen. Go ahead. Yvonne i was just wondering, part of the industry i mean, you are dealing with a lot of stiff competition. Per parcel unit prices have gone down. You are trying to lower your cost. Is there a way to reduce margin compression or is there something you have to work on in terms of the revenue side to maybe do a little bit more for the Growth Initiative there, which seems to be the hardest part . Huiping you are right. The growth at this stage of the industry in china is still very much driven by one. Of course, the larger demand. Two, the competition. Express delivery is a very much scale driven business. When you do not have a clear market leadership or a separation between the first and the second, meaning the market share is pretty fairly equal or similar, then you will have price competition. So on one hand, because the scale advantage lowers the price in the past years has not really driven anyone down to where there is no profit to be made. The market the whole network is still doing well in the sense that volume more than offset the price in a way that people are still making a living. I am referring to the outlet. Going forward, it is our strategy to accelerate and further the distance from the second and the third tears of peersers tiers of our so we could gain Pricing Power eventually. We think that the outlook the likely scenario is that we are able to achieve that in the next two to three years. Our goal is to reach 25 of the 2022, 2023. Ar should invisible i say the price will return. The price has been very low in china for express delivery and have a lot more room to grow. Tom what are you doing on the headcount front at stage . Have you had to freeze hiring or are you ramping up as you try to carve out Additional Market share even as the economy remains under pressure . Huiping overall, in the past few years, we were able to reduce the dependency on labor. The labor costs have been increasing. Unit cost as well as social welfare costs. What we were able to do Going Forward, we think, is to continue this strategy to replace dependency on labor with higher efficiency equipment. At the same time, there are certain positions that are still required for labor for people. For example, drivers are before the autonomous driving comes to china in logistics industry, we will still need a good driver, so on one hand, we are hiring people. So the productivity gain on im a cost side has been able to the priceo offset decline Going Forward, and we think that theres still more a goal go, and we have to eventually get to certain with a limited number of people on the operation. I was curious to ask you, because in the last year or so, we saw a very ugly public divorce between the likes of fedex and amazon. What is the take away for a company like zto given your relationship with alibaba . Huiping fortunately, our collaborationr between the logistics, express business, and Online Businesses, are very productive. On one hand, the growth of online industry or Online Retail has provided a lot of demand to our business, and on the other hand, the express delivery business, because of its scale and efficiency, it is able to continue to support the low cost, low logistic cost equation for the Online Business to continue to grow. I think the cost structure between u. S. And china are different and also the scale itself compared with the scale of the zto, chinese express delivery. 62 billion 63 billion last year going to im sorry. Going into 70 billion, 72 billion this year. And that amount, if you look at the u. S. , is just a fraction. Could not really reach the scale arentage, hence businesses to make a profit when you could not cover the cost. It is somewhere hard to get together, but for chinese, we are fortunate that our relationship with alibaba, with businesseser online are quite productive and coexisting well, and we are developing newer and better approach to logistics. Before we let you go, you have your finger on the pulse of the China Economy in china. What is your outlook for the growth picture for china for 2020 . Coronavirushink the has a shortterm impact and we all have felt it. The longer impact is still yet to [no audio] yvonne huiping yan huiping yan we may have lost, but our we may have lost huiping yan. Express ceo,zto huiping yan. We also want to thank tom mackenzie. Coming up, more on oils dramatic decline. Howlow prices could go and chinas biggest refiner, sinopec, is coping with the glut that is set to keep going. This is bloomberg. A quick check of the latest business flash headlines. Global airlines raised more than 17 billion in bank loans as the coronavirus ravages demand for travel. Data compiled by bloomberg show u. S. Carriers have been the most active, barring 12. 5 billion with delta claiming half of that. Airlines raised new loans, drawn down existing credit lines they did not use before the infection wrapped air travel. Wrecked air travel. Sources tell us the rates is is changing ritz hands for less than 1 billion. It belonged to a reclusive british billionaire. It has been mired in family squabbling with their heirs competing for control. Haslinda crude drops to its virus in 17 years as markdowns cascade through the Worlds Largest economies. The market has been roiled by cratering demand and an unmanageable russia and saudi arabia remain at loggerheads about curbing output. We are joined from singapore by our energy reporter, steven our energy reporter. How low can will go . Can oil go . One of the articles we had over the weekend said that the oil market is fundamentally broken. We are at a place where producers are producing more than they have ever produced before and we are also on the demand side seeing the biggest drop in demand in the history of the oil market. That normally would not have been. Usually, when oil demand falls, you see producers cut production but you have the exact opposite happening because of some geopolitical rivalry happening between not only saudi arabia, russia, but also u. S. Shale producers, as they tried to grab as much market share as possible. How low can oil go is the question we have been asking every trader, every fund manager we can talk to, and the general idea is that it can go as low as 10, lower than 10, to the price of basically until producers in the u. S. Shale base stop producing. That will lift prices back up and provided a bottom. At this point, it could continue to plummet into the Single Digits according to people we have talked to. Oil, ia speaking of want to touch on sinopec. What has been driving its earnings down . Stephen its the coronavirus. Sinopec is one of the biggest refineries in the world and when you have people not driving, not flying, trucks are not operating, that will cut and normas amount of their demand and it is going to of course impact their profits. Because of all of that happening, you are seeing their profits drop, and you could see that reverberate around the world. They are definitely a bellwether refiners in japan, europe, the United States, how their profits are going to be hit as the coronavirus stops transportation of goods. Yvonne thank you. Stephen stapcznski, our energy reporter, joining us from singapore. The outlook for Indian Markets after the r. B. I. Says the country is battle ready. We are live in mumbai, next. This is bloomberg. There is a possibility that once the covid Health Crisis has gotten under control and we do not have that issue anymore, the economy may rebound quite robustly. As you can see, the Unemployment Rate peaked in the low to mid teens, but we would expect that would quickly would quickly decline. Clearly, a report has to be mounted to combat the virus. Involving both conventional and unconventional measures in a continuously battle ready mode. The u. S. Olicymakers in and india discussing economic outlooks, saying measures to counter the coronavirus. With the r. B. I. , theres the market on friday, taking sweeping measures to mitigate the virus fallout. Lets go to our bloomberg reporter joining us in mumbai to explain how the markets there responded to this move. Lets run through some of the measures and how markets really reacted to all this. Sure. Central banks delivering the biggest Interest Rate cut since 2009 and announcing measures to boost banking liquidity by 50 billion. Sovereign bonds are in on the move. Indian rupee also paired gains and ended the day weaker. Investors are looking for a solution and not just a financial one, to the coronavirus. It is pretty much a riskoff day for asia today. What is in store for indian investors then . Ordered Transmission Companies to continue supplies during the lockdown even if the Companies Fail to pay for the product consumed. Investors will be looking at another Big Development that happened was on the oil companies. This will also allow them to walk away from contracts to import crude oil. Overall, the stock market is headed for another volatile day but no solution. Yvonne thank you. Our bloomberg issue credit reporter, rahul satija, joining us from mumbai. Lets look at the rest of the region. We are watching the likes of china. We did not see a whole lot of reaction to the pboc cut to the seven day repo rate for 20 basis points. Overlooking Monetary Policy moves already. We are watching the likes of the hang seng down 300 18 points. The nikkei on that lunch break, down more than 3 . We are watching india futures heading lower right now. Crude is the big culprit here today with the big tumble to the lowest we have seen since 2002. We see the dollar snapping out for days of losses so that certainly is also another thing to contend with her investors. Money going into the yen, money going into bonds as well and you see the 10 year aussie bond your down some double digit base points at the moment and singapore down close to 4 . They did we center that policy and they also reduced the slope to zero. Seems like that was largely priced in for markets. Southeast asia taking it hard today. We see the likes of vietnam taking at the most when it comes to the laggards. We are seeing it down some 5 . Plenty more to come. This is bloomberg. A it is a 30 am mumbai. Anchor it is 8 30 a. M. In mumbai. Investors await a long road ahead to be the coronavirus. Singapore signals a weaker dollar in the face of a lengthy recession. It is a warning that industries are dying. And donald trump says the country should be on the road to recovery by june, but deaths make top 200,000. 200,000. P this is Bloomberg Markets asia. Whiplash this monday morning after we saw decent session or we, i should say, last week when it came to em stocks. Risk off, as you mentioned, the dollar getting more strength here after four days of losses. This is something to contend with along with the collapse of oil, brent crude down close to 7 . We saw wti break below a 2002 low. A lot of questions on how much factore go as we try to in demand destruction given the lockdowns we have seen. Looking at south east asia, the ho chi minh index down close to 5 , same for indonesia, as they look at considering a lockdown. The mas decision seems to be priced in, and futures lower by one india is going to be interesting, and we see money racing into the yen and bonds on the asia index selling off, nifty futures lower by two point by 2. 5 . Has . Haslinda china injected the community for the first time in six weeks. It also cut rates. Our guest joins us now from beijing. , the details . Tom yes, the injection of the community, coming from two point 4 to 2. 2 of a cut on the say aroundos, as you six weeks since they have injected this kind of liquidity. Standard chartered said part of the reason is youre getting towards the end of the quarter in terms of liquidity squeezes that traditionally happen at the end of the quarter, also a question of taxpaying at this time of year, but fort standard chartered, this is about assuring this is adequate liquidity in the system as we expect to see evermore bond issues at the local government to try to support Infrastructure Spending and the economy more aoadly, but it also points to shift, as well. The pboc and the finance ministry starting to take into account some of the pressure on , forof the key areas example in the u. S. , where you are expected to see demand absolutely crushed as the virus continues to have an impact there, and we saw the articulated, by the way, by the politburo towards the end of last week, who set the deficit may be increased and the deficit target up for this year. We will get that when we get the Peoples Congress possibly in april or may, and in terms of the infection rate for the disease itself year, it is relatively under control. We have seen a pickup in the last couple of days in terms of important cases. The most recent data set out on the 29th. 31 confirmed cases were imported. China has effectively sealed off its borders to foreigners trying to travel into china. Terms of restrictions domestically, you see those starting to be lifted in hubei, and you saw some scuffles and some protests breaking out between people trying to cross from one border of hubei. Andepends on how quickly successfully china can remove some of those restrictions, and, again, the focus on the economy and the impact of this disease was again highlighted when president xi jinping made a visit to an area to see some automotive manufacturers there, and again, underscoring, according to state media, rejuvenating the economy while also trying to keep this virus in check. Haslinda that is right. Rejuvenation, and we have the pmi this week, but the main concern right now, tom, is the rising corporate debt. It seems almost inevitable that you will see a pickup in corporate debt. The context, as you know this over the last few years, chinese officials have made it a priority to try to rein in corporate debt. That was, of course, before the impact of the coronavirus. Now, they will have to let these corporates issue more bonds. We have seen it up taking over 12 , so that suggests the corporate debt levels are necessarily going to increase. The good news for them is that the rate levels are relatively low. We saw the sevenday reverse repo, but overall, a 14year low, so it is cheaper to borrow and allows corporates to roll over their debt. Become inevitably higher. That may pose a challenge for policymakers further down the road. Another thing with reporting from bloomberg is Consumer Debt. Looking at consumer cards, we see a 50 increase in february in terms of the year before of debt that has not been paid off on chinese credit cards. We saw 8 Million People lose their jobs in the month of february. A lot of them have taken out debt, and now they are struggling to pay it back. To what extent consumers can get back will help support the Retail Sector as well in the months ahead. Mackenzie joining us from beijing. Pledging more Financial Support for struggling Small Businesses and workers. Social gathering restrictions were put into effect over the weekend. Our chief Asian Correspondent david engel joins us from hong kong now. As they add more tighter social distancing measures, they are going to be more help for some of these small and medium businesses out there. David that is right. You and i know the hong kong economy is built on the mom and pop and small and mediumsize businesses. They are struggling after the protests for months and the coronavirus outbreak, so they need some help, and matthew has recognized that, the chief secretary of hong kong, the number two official after carrie lam, and in a blog post, he says another stimulus package for hardhit businesses and particular for the workers who have a hard time making ends meet will be addressed in this package. However, it is a blog post, and no details were posted other than they are working on that and there is no timeline. It comes, of course, after more of the social distancing measures were put in place, enacted yesterday, not requiring no more than four people at once in a gathering, and also, of course, the various closures of gymsas well as cinemas and and the like, which is putting more pressure on Small Businesses. Mentioned indonesia earlier as they consider a lockdown. This seems to be a change of heart from the president , who tried to avoid largescale lockdowns. David yes, he has. A has tried not to do nationwide lockdown, but what you see in jakarta, a sharp spike upward in the number of in jakarta, more than half of the nationwide total of 1285. They also have the most deaths in Southeast Asia, and they are really worried about this being the tip of the iceberg and also the migratory season coming with Migrant Workers, perhaps, going out to the various islands in thearc of a lago in archipelago, and having some sort of announcement coming down the pike perhaps as early as today that could involve a quarantine of some 30 million part, thosearge migrants, in and around jakarta to get ahead of the problem and make sure that indonesia still lowimpactvely nation despite its large million. N of 264 Yvonne Stephen engle out of hong kong and the rest of the region. Lets get the first word news from new york. Reporter hey, yvonne. Officials saying to prepare plans for putting cities in lockdown due to the coronavirus. There is a decision to tell Domestic Airlines to severely curtail flights within the capital and the financial hub. Regional destinations are also being curbs. The biggest holiday destination in thailand is going into lockdown today, with all transport under tight restrictions with only trucks and ships carrying essential goods and services exempt from the order. Of the biggestne numbers of virus cases in thailand is in a state of emergency. Additionalnding an budget with shinzo abe warning of a long battle ahead, saying people must remain vigilant. Report from tokyo that says the postponement of a enablel emergency may july 23, 2021, the opening date. The u. K. Government is warning the nationwide virus lockdown could go on for months, not weeks, and the number of deaths is expected to rise. Ministries are also considering tighter distancing measures to control the outbreak if current items are inadequate. Johnsonnister boris tested positive. And Jefferies Group says the cfo of its main subsidiary has died from complications linked to the coronavirus, marking one of the first deaths among senior wall street officials paid he had been cfo since 2007 following a 60year at morgan stanley. This news comes as they continue to head into the office every day. Global news, 24 hours a day, on air and on quicktake by bloomberg, powered by more than 2,700 journalists and analysts in more than 120 countries. I am Karina Mitchell. This is bloomberg. Haslinda . Haslinda thank you so much. Still ahead on bloomberg coulds asia, the yuan be the exception. Next, a rebound rally might have given markets a boost, but global stocks are still 26 down from their february peak. A strategy. This is bloomberg. Haslinda you are watching Bloomberg Markets asia, and a long road ahead to a recovery. Defeat the coronavirus pandemic, Central Banks eased Monetary Policy to support an economy on track for its worst recession in years. Is the us on the line head of community credit, hartmut issel. It is pretty calm compared to previous weeks. How much does it have to do with rebalancing flows at this point in time . Hearing over the next couple of days, many markets going up, and, yes, there is some genuine buying. We are seeing is some on our side, some investors really interested. As things go up, there is a bit of a reversal of before. Those that may have some short positions were thinking about butdownside, now to go in, what we are seeing to our investors is many economies outside of asia that by sort of mid may, we can probably get rid ,f the most stringent measures and there is some hope the markets would be looking at, so we certainly believe that the markets and equities and also we arelose higher, but going very gradually. We keep going into riskier assets, the right strategy, not every monday but sort of stepbystep. You talk about risky assets. How much appetite is there when we saw emerging markets pretty much thrown out of the window . Now that the dollar is somewhat easing, is it time to look at that asset class . I think we are seeing some of it, but this stress on the liquidity side, easing away, and also the other ones easing morning, andn this that is what we are seeing. What we have done is, yes, we have some option strategies to benefit, in the s p and in europe, that at the same time, we are not concentrating the risky positions are only in equities, but more recently we have gone into u. S. High yields and subsequently think that now the emerging market bonds, especially government bonds, in fact, dollar bonds, are more in the negative scenario than equities do, and we have seen last week that the spreads are coming off, so it looks like we are seeing the first start of period in the market. Yvonne yvonne in hong kong. A you think the fed created critical backstop for you to sell the more risky side of credit, or, you know, do you stick to the Investment Grade, where the fed has intervened and is actually buying Investment Grade bonds . Why not just follow the fed . Ut we will have to see if the backstop is enough, but i think it is very crucial it thehat if the market has impression that this is all the fed can do, we would probably be a bit more concerned. Essentially, this q. Week could theoretically be in any case could theoretically be, in any case they are doing something, but everybody understands they could be doing a lot more if they needed to, and, yes, that is part of what gives us comfort to bridge this virus situation and also makes us feel comfortable with the higher yield positions and the sovereign positions in aluminum. Yvonne do we still need to see spreads narrow before we see more of a bottoming when it comes to equities . Hartmut i am not sure they are necessarily related. All of the markets are watching the equity markets. In thet is emergingmarket world and the u. S. And to some extent in europe, but the spread curve of the virus is starting to flatten. Getting like we are more and more evidence out of the italian markets, for example , and at least the curve is flattening, or the early regions are showing fewer cases, and if you look at the detail, the market bottomed already about two weeks ago. There are a lot of cases and casualties, but from the market point of view, it is already beginning to start to look through this, and it would not be surprised if this playbook holds valid for other markets. Would it be a Dollar Strength story for the rest of the year, because bank of america cannot say that . Even a contracting u. S. Economy is still better than other regions like europe. Rtmut we think from a fundamental point of view, what the fed currency does is it gives other Central Banks a lot of cover to also be easing, and we think beyond the initial stage of the dollar short, the reserve currency, and a lot of businesses function in u. S. Dollars, but as the fed is increasingly getting a hold of the situation, then the next part in the playbook in our view you hade that, before some yields in the u. S. , but that is not the case anymore, just slightly better, and then why should the u. S. Dollar strength and in this case . In fact, we believe that the u. S. Dollar could soften. Yvonne you are building a case of taking advantage of an undervalued pallet. Citing weaker public finances and uncertainty with this trade relationship with europe, as well as the u. K. , so what is the upside . More on the upside is the fundamental side. The pound is probably more than 20 undervalued. Uncertainty that has happened, as we have seen before, what we see is if you fastforward, maybe three months , in our base case, by that time, we certainly should have seen the most or the peak of the most stringent measures on the virus, and people look at it differently and say it is an asset, just like equities and parts of the bond market. It is particularly cheap. Some of these reasons now have unraveled, so we can go into it again, so it is more a fundamental call, not so much related to the Current Situation but rather an easing of the Current Situation. Yvonne thank you for joining us on the line from singapore. Thank you. All right. Lets talk about indonesia right now, because we did just see the jakarta composite trigger a Circuit Breaker after stocks dropped 5 . Here we go again with indonesia. We saw this previously couple of weeks ago and then a big bounceback last week, but again, more jitters in these markets as indonesia now contemplates whether to impose a lockdown there. All right, where we stand right 4318. R the benchmark, this is bloomberg. This is Bloomberg Markets asia, with a quick check of the business flash headlines. Bankruptcy, oneweb had raised more than 3 billion in debt, including qualcomm. At least one third of that came from softbank, which was invested at the end of 2016. This erases some of the gains softbank mate last week after it said it would sell assets to raise cash. Global airlines have raised billions in bank loans this month as the coronavirus ravages demand for travel. Data compiled from bloomberg show u. S. Carriers have been the most active, borrowing 12. 5 billion dollars, with delta claiming almost half of that. And there were credit lines they did not use before this. And a chinese electric vehicle maker is offering a full range of parts to its rivals in an attempt to diversify revenue carses as demand for stalls. The Warren Buffett backed Company Sells complete cars but competitorsfer batteries, powertrains, and lights. Leader ofen chinas alternative Energy Vehicles for at least the last six years. Yvonne all right, taking a look at the markets, a roller coaster ride, much lower than the end of last week. There could be some end of quarter rebalancing for some of the pension funds. Some were down, emerging markets also taking a hit. Oil prices still not benefiting. There is a tumble that we have seen in brent crude and wti today. U. S. Futures heading lower by 8 10 of 1 . The nifty, we continue to watch more selloff after that r. B. I. Decision. The emergency move we saw on friday. Lows andll around 2002 the worst record for crude for oil prices, and take a look at currencies, as well. We are watching the bloomberg currency index. Money coming into the dollar yen. Someussie still seeing weakness. There were measures to limit social distancing to just two people, and we see those 10year yields lower. 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. You are looking at live pictures out of the lions where we are in the middle of the trading day, taking a look at the nifty, currently slumping. H slumping. Maseard earlier from the with a 0 per annum policy rate. Also, this could be tantamount to a devaluation, but only so slightly. It also means the fiscal policy is back in play as a permanent way of mitigating the impact of the coronavirus outbreak. Again, down by about 4 . Lets get our first word headlines from new york. Reporter the rate of u. S. Virus deaths could peak in the next two weeks, with social distancing guidelines extended by President Trump until the end of april. Fatalities could top 200,000. Fauci spoke, and it is said that new york has half of all infections. President trump we will be well on our way to recovery by june 1. A lot of great things will be happening. That wasnt aspiration. I did not say easter. I said it would be a great thing if we could do it by easter. Reporter china has injected cash through open Market Operations for the First Time Since mid february, the strongest since 2018. The pboc is providing billions of dollars and also cutting rates from 2. 4 to 2. 2 . Already looking to counter the fallout of the coronavirus. And the Monetary Authority of singapore using the dollar as the main policy rather than cutting the currency close to zero. They are looking at a move into recession. The Prime Minister warned that aviation and tourism are virtually dead in singapore and that disruption to Global Supply chains are having a direct impact on exports. Indonesia is planning to quarantine almost 30 Million People in jakarta and in surrounding areas as the coronavirus deaths continue to rise. Daily movement is already in place, and a decision on a lockdown expected monday. 114 depths, the highest in Southeast Asia deaths, the highest in Southeast Asia. And the philippines is ready to support the economy as policymakers try to contain the followup from the coronavirus. The Central Bank Governors said much has been done, but much more can be if necessary. Billion under 6 a threemonth deal. Global news, 24 hours a day, on air and on quicktake by bloomberg, powered by more than 2,700 journalists and analysts in more than 120 countries. I am Karina Mitchell. This is bloomberg. Yvonne thank you. A lot of whiplash. Taking a look at the price action, looking at the nikkei 225 coming back from the lunch break lower by 3 . We will see how things play out. Look at the topix. Hang in, more than 50 or so. Hong kong Listing Companies that Hong Kong Listed companies will be reporting, and the likes of julie and other big names, and the kospi down. Just triggered a Circuit Breaker. The nifty is going to be interesting today. The longest weekly losing streak and 12 years last week. We have seen it fall six straight weeks now. If we actually see week number seven of this, this would match the longest losing streak we have seen in 19 years. Take a look at the rupee. Record lows. Did we did see quite a move therefore the currency. I think we are off some of the record lows, i should say, but the india 10 year yield yvonne, lets take a look at currencies. Our next guest is one of the analysts who expected the Monetary Policy to be loosened further. Lets bring in the head of Market Strategy and Research Asia at National Australia bank. Christy joins us on the line. Lets start with the mas. Why do you think it did that . Risty well, i think it is still a rather gradual approach than what was initially expected. There was no mention of recentering, but at the same time, i think the move to zero appreciation, even the current consensus, it does suggest that it is leaving some room for further policy easing later, and i think one of the hurdles that fromed the mas recentering is it actually estimate of the current level is slightly below the midpoint of the policy bend, and this is, i would say, an indication that if the recentering move is undertaken today, it would largely be quite ineffective. Haslinda i am looking at the singh dollar. It is currently flat at 1. 4270. Would you say this is to the downside . Christy i think there is still the upside buyers. We do think that the general broad dollar weakness is not likely sustained, but at the same time, i think the domestic situation for the current singh dollar outlook points to the weakness, as well, so both the external and the domestic actors are still pointing to weaker bias for the singh dollar. Yvonne lets look further now. How are you differentiating with asia . Currencies,n oil, countries with current deficits . I just wonder how you actually see things now in that actual space. Christy well, it is an interesting question. This wave that is hitting asia from the covid19 is basically still playing out in a very differentiated way, so i would say that in the next few months, this is the First Quarter, so for the Second Quarter onward, we may see something different, given that the policy responses on the asian governments have been to arrest the Downside Risks as well as to provide some kind of a growth support to pave the way for a synchronized recovery in the second half of this year. However, i think we are looking points from entry the asian economies into the covid19 situation, so we say that some of the countries that have taken more aggressive policy responses and some of the countries that have actually more policy moves, they will be able to provide a greater buffer, and we are talking about, you know, for instance, singapore and korea, and they have provided a lot more policy responses than, say, some of the later entrants to this covid crisis, so with respect to which sectors we want to look at, we want to look at policy moves. We want to look at policy responses as well as the entry points of the economy. On that front, i think of the second half of this year, even if we see a kind of synchronized recovery in asia, we are going to see it is not going to be a very sharp recovery point. It is probably going to be a type ofout, ushaped recovery. Yvonne when it comes to the renminbi, it is relatively speaking stable. Why is that so . Christy china being the first in the covid19 crisis and has shown signs of recovery and also manufacturing, we probably will see this panning out further, and given that china has greater policy room, be it monetary or fiscal, and has been targeted it has not really thrown in some kind of a bazooka policy responses, so these targeted responses are playing out as we speak. At the same time, even the external attrition in demand, we are looking at china having the absorb the reduction in the demand for its products, so in terms of recovery, in terms of room to actually absorb the Manufacturing Activity resumption by the domestic demand, china appears to have the biggest, i think the biggest room and the biggest opportunities there, so in that chinasi do expect that policy stability will play out pretty well, and the other thing is, with regards to the currency, we have seen as well in 2015 and during periods of financial crisis whereby when the currency is looking vulnerable, the policy authority can stabilize the currency, and we have seen this, as well. If you look at the renminbi performance with respect to its trading partners, it has actually been doing quite well, so stability is very important as a policy anchor for the rest of the region, as well. Christy, before we let you go, are the rupee and the rupiah raising red flags . Meisty well, what concerns in regards to the indonesian rupiah, it is currently one of the major risks of being a hotspot in asia, after china, so we have got some covid19, and the lack of eye think testing as well as transparency in the overall situation is keeping investors rather nervous, and reasonably so, so i do expect that, you know, while there is the general understanding that they will support the currency in terms of volatility, and it has stepped in, it has loosened Monetary Policy, as well, but i think Investor Confidence has to be restored, and a lot of it will depend on their policy response to covid19. As for india, in india, the current lockdown situation is not helping sentiment either, so in this overall situation, when actually carry trade and yield trade are now taking a backseat, these two currencies will probably be quite vulnerable. Thank you very much from National Australia bank, chris ty tan. We are moments away from the opening. We were talking about the nifty features heading south by close to 3 . We have the latest from bite next. This is bloomberg. By latest from moon mumbai, next. This is bloomberg. Yvonne alright. Take a look at the Indian Markets. A bond, according to traders we are talking to, once again, we are seeing no trades after market open, so once again, dealing with nervousness and it comes to the bond markets. Actually, the r. B. I. Did deliver on that emergency rate but. It seems traders are wanting more signs, and maybe, possibly, the r. B. I. To join other Central Banks in unleashing some type of qe program. It looks like not a lot of action when it comes to the bond markets today. Lets see if it sticks. Talking more about india, ordering states to quarantine Migrant Workers for a number of days. Salamat,hor, rishaad is watching all of this, as well. There seems to be a large exodus from the cities since this nationwide lockdown was announced. Rishaad can you imagine it . 1. 3 billion people. Many of them live in abject poverty. Many of them live in close quarters. It is not unusual to have Multigenerational Families living in one dwelling. To isolate them, tuesday is the day we saw the lockdown being announced by the Prime Minister, the 24th, and we have got the states now, the individual states, ordering that these migrants, who suddenly have nothing to do, they have no jobs, getting on their feet, literally, sometimes hundreds of kilometers to their home villages. The thing is this is being seen by some as a calm before the storm. Over a dozen doctors, many of them didnt want to be identified, but they are not seeing a huge, huge spike up in the number of victims. We have over 1000 people with the pathogen, and about 27 of them have died. There was a university of michigan study and all of this, and suggesting if this is not contained, we could see the number of cases in india rise to more than the global total, and that is with 915,000 people getting covid19 by the middle of may. That is where we are. We have seen nations restricting inbound traffic. We also have outbound traffic out of india also virtually nil now, so this is a country that is, perhaps, holding its breath, is is being some by being seen by some as the calm before the storm. Give us the reaction to the r. B. I. Measures friday . That 75 basis point cut at Interest Rates, bringing them right down. Now, it does come at a really bad time for the economy. It really was slowing and slowing to levels we have not seen since 2013 or thereabouts. The thing is, what can the r. B. I. Do . The surge of prices dissipated by the end of the session. We saw that being reflected in this idea that there is this huge Bond Buying Program that would take place by the reserve bank. Now, they have not done anything like this since the early 2000s. We are talking about a Staggering Amount of money with the indian income, if you will, Something Like 1. 7 Something Like 1. 7 trillion rupees. That would come on top of an unprecedented budget they had this year which amounted to just over 100 billion. The r. B. I. Would be the body which would have to do it, and as you said earlier, we do not have any bond trading at the moment, but we will watch and see what happens. Yvonne great to have you back. Rishaad salamat. Nokets opening, and surprise, heading lower here today, the sensex down 3 , the points. Wn by 251 it seems like they took these moves by the r. B. I. That the central bank is running out of ammo. Taking a look at the rupee, some weakness, off the record lows after we did see some appreciation of the r. B. I. Bazooka. But bonds, a lack of action there. About 500using on billion rupees and treasury bills and bond auctions. Caution from bond traders. This is bloomberg. Big a quick check of the business flash headlines. Againstg defense potential losses from the shutdown of the economy at the start of 2020, Construction Bank income rose, slightly better than the average estimate in a bloomberg survey. Joins rivals such as icbc amid the economic slowdown. A top chinese refiner, sinopec, reported full year earnings down almost 7 as the rising fuel glut on the mainland hurts profit. Income slipped to just over a billion dollars last year from eight point 6 billion in 2018. Operating profit at their main refinery arm fell 44 , highlighting week messick demand weak domestic demand for fuel. Dave, the big one today was from the pboc with their 7 billion injection into the banking system. How significant is that . David you saw the currency move, the renminbi, right . Debt markets were not expecting that move. Again, you get the likes of the mas, which is just one of a very, very long list, introduced something over the weekend and reduced rates. The pboc, the events, letting the currency appreciate, that is the other side of the conversation, as well, which i guess that points to how bad is this really getting, because when you look at forecasts, for example, on the economy, the latest forecast right now is way, way, way below zero for the First Quarter, and it comes ahead of the pmi numbers due out tomorrow, and part of what we are going to look at therefore those numbers are things like new orders. There is some gauge on inventory, raw material, input costs, what have you, because that would help to answer the question of how much of china came back online for march and how bad really still are a lot of these disruptions across the chinese mainland, so again, a moving target. The current state of markets right now, this virus is an absolute monster. Lets put it that way. David ingles, we will leave it there. Earnings reported later, and investors are bracing for the impact of the coronavirus on supply chain and productivity. Matthew, ourn Bloomberg Intelligence analyst for technology. Matthew, we are expecting pretty strong numbers for the quarter . Matthew yes. Headline Revenue Growth is going to decline for the quarter, but that is still relatively strong when you dig into it. The Smartphone Market has started to rebound in the fourth quarter. You had some headwinds in other segments. A lot of positives. We see very Strong Demand from the iphone 11. Apple is still about half of their revenue. Obviously, the real question now is what does 20 20 look like with the virus, and we saw what happened in february with all of the chinese manufacturing adding shut down for an extended period. Who they only got back to full capacity last week. Only got back to full capacity last week. We are looking for more clarity in the results. Haslinda talk to us and how much clarity there is at this point, and what signs are we looking out for . Matthew it is actually really tough right now, because a lot of customers, like where the companies are based in the west where they are basing the virus, they are on weight and hold, and that affects the supply chain. The positive is that ww32 is going to be strong the is going tothat q2 be strong and will look good. The question will be what the others look like, and when you take the uncertainty from customers, a cheekily key customers like apple and cisco and microsoft particularly key customers, what does their demand look like in the second half . Even they have not made their minds up with. Apple has not made up their mind on what the new iphone looks like and doesnt have to until june, so that is months. Apple may delay the next iphone, but we will not know. There will be so much time until they have to make that decision and see what demand looks like, and demand will be about the virus and the government response to the virus. This is way beyond microeconomics and macroeconomics. They are really reliant on just a wait and see approach until we get better clarity in the second half of the year. Delay, ok, the whole that is still up in question. What about the apple suppliers likehere like a high hon hai . A huge this is not growth business. But when you look at diversifying and moving into moreenterprise, modules, five g infrastructure manufacturing, and even automotive is becoming an increasingly important market. Deals with some other automakers in china. A western competitor to them, and they have done a lot of business, over 2 billion. Tech, theyand beyond can be aggressive, so that is a big opportunity for these companies in the long term, say three to five years. You, ouratthew, thank Bloomberg Intelligence analyst, when it comes to hon hai. You continue to see the selloff. We are very much Still Holding onto the losses in Southeast Asia, particularly vietnam, indonesia, taking it the most, and australia is the exception. The south korean won gained last week and is losing some ground, the rupiah as well. The dollar yen. And we are watching the india rupiah, still seeing some weakness after that rpi r. B. I. Bonds are still seeing a bit of a buy, 23. 40. We have got plenty more. That is it for us from Bloomberg Markets asia. This is bloomberg. W . W . Uhiono the following is a paid program. The opinions and views expressed do not reflect those of bloomberg lp, its affiliates or its employees. The following is a paid presentation brought to you by rare collectibles tv. Our country was founded on life, liberty, and the pursuit of happiness. Representing this idealism is our american eagle. The bald eagle was chosen in 1782 to represent the United States because of its long life, majestic looks, and great strength