Decline in infection rates as people are told to stay at home. But the virus continues to ravage economies across the world. Bloomberg economics seeing australia is heading for its deepest rest recession in 90 years. Taylor a quick reminder of how u. S. Stocks ended the day. A pretty good day on wall street. Up date on the s p 500, the fourth out of five up days we have seen as futures come online. Some of those gains just lightly continue to be extending in the session. So, starting to hear some rumors perhaps of catching a bottom with the equity markets, as you have not seen major losses. One market that is seeing major losses that we flip up the board, it is all about the equity markets, within the crude markets, i should say. Crude falling on monday, down for a Third Straight day. Today, now monday evening, trying to recover some of those losses. Up to 8 10 of 1 but Still Holding onto a 20 handle, near the lows we have seen going back since 2002. I want to see how things are shaping up for asian markets. Sophie kamaruddin has you covered. How does it look . Sophie this tuesday, futures are pointing higher in asia and kiwi stocks are extending gain, while the kiwi dollar is trading as the rbnz started the Corporate Bond buying program today. The last day of the quarter which brings the japanese jobs outlook from japan as well as south korea. Chinese pmi and Hong Kong Retail sales. We have had korean Business Confidence sliding further ended the week domestic demand. We will get earnings from the xiaomi. D such as shalx a 50 drop in net profits on sunday. In sydney, stocks look to extend gains after the biggest drop on the asx 200 on the governments stimulus package, with health care leading segments higher. This tuesday, we are washing Virgin Australia as it is seeking a government loan for 1. 4 billion australian dollars. After a rough First Quarter that had valuations down across asia, but bear in mind, the priciest market in the region with india as well as china. As we prepare to enter the Second Quarter, jp morgan suggests enough has changed fundamentally as well as technically to justify adding risk collectively. At goldman, they expect markets to turn lower in coming weeks. Still not really getting much market consensus as to where we find a bottom in this turmoil. Sophie in hong kong. President trump and his virus Task Force Team continue to speak at the white house, saying that more than one million americans have been tested so far for the coronavirus. The president also saying travel restrictions will remain beyond Expiration Date and a National Lockdown would still be unlikely. Reporter Emily Wilkins joins us on the line. We heard even as President Trump that a National Lockdown is unlikely, more and more states in the u. S. Are issuing these lockdowns of their own. Emily that is right. We are seeing today virginia, maryland come out with stricter lockdown orders. We are starting to see that for other states as well. Rural states today on a phone call with President Trump emphasize their need for more medical equipment, more supplies. I think this is something you are beginning to see in almost every part of the country. Abbott you had laboratories come out late with a quick rapid test they had. Johnson johnson is coming out and looking at vaccines perhaps sooner than we thought. What are you hearing about any potential response that we could be getting from the medical community to help speed up some of this recovery . Emily there was a little bit of discussion about that. So far, the rose garden speech which is currently in progress right now. There has been a discussion about doing a faster test. Who has been an all hands on deck situation. There are many people working on it right now. I think as he both pointed out, trump touted the fact that america has one Million People tested at this point, which has sort of been initially something the administration was criticized for come up for not having the testing in place. For deciding not to use the World Health Organization test and create their own. I think at this point, we are a couple of weeks in, you are starting to see more mobilization from groups who have understood now for several weeks that testing is absolutely key if we want to better understand who has this virus and make sure that they are being prevented from spreading it to others. Taylor i know we were talking yesterday about peak deaths coming into weeks time. Is that still on track with some of the news we have gotten out of washington today . Is that when we can see a flattening of the health curve which we have become so familiar with these days . Emily to be honest, i still think a lot of the theres a lot of unknowns out there. Trump during his rose garden speech said the next 30 days would be absolutely critical. That said, there have been other individuals who have suggested this might go on for far longer. That this might go on into june, july. I think everyone is in a bit of wait and see pattern at this point. Saidw the administration under even the best Case Scenario mother could still be 300,000 deaths in the u. S. And that is if everything goes perfectly. Taylor Emily Wilkins there. The World Health Organization says there are faint signs that italy and spain may be nearing peak infection rates. Although reducing the number of new cases requires proactive measures. Salamant go to rishaad for the latest on this. What is the latest we know in europe . Saying there is some stabilization. In other words, some light at the end of the tunnel. Part of that has been based on what is going on in italy. The country saying out of it has the smallest number of new cases in almost two weeks. This is the heart of the outbreak in europe, the hardest hit country in the region. Michael ryan, the head of emergency at the who, talking about there might be some hope in italy and spain. That there were perhaps be a peak and the lockdowns we are seeing will start to bear fruit. That is what they are basing on. Just to tell you a little bit about the fight must go one against the coronavirus. And they must not relet in any way. Deaths oneporting 812 monday, a slight decline on the previous days record. We got spain battling this outbreak. In order to perhaps contain it further, the Prime Minister did announce over the weekend plans for even tighter restrictions on public life. Ordering those at nonessential services to stayathome. Thats exactly what we have at the moment coming out of the who as well, saying there is no time to rest as well. Having a political fallout as well. Giuseppe conte, the italian Prime Minister, the country hardest hit. He said he have to fight to hold society together. In the southern parts of the country there, which is notoriously a long lag behind the wealthy north, it has become the governments top priority at the moment to bring some calm there. Police deploying on the streets of the sicilian capital after gangs used social media to plot attacks on stores. Taylor now, italy has been reporting the lowest number of new cases in nearly two weeks. I think we would argue that the financial crisis there is just now beginning. How concerned is the euro area group about some of the financial strain that we are now really just starting to deal with . Rishaad indeed. The euro area, no doubt, is going to come out of this crisis with huge and higher debt levels. What we do have is seen officials in the region say that the government, individual governments must use policy to prevent the threat of a bloc fragmentation as well. Really talking about the way the euro area deals with this crisis and determines the future, the shape and extent of the recovery as well. Now, this is all coming after European Union leaders struggled to agree on a concrete strategy to contain the fallout from what the pathogen has been doing. Weve got these entrenched differences between the french and germans. Of course, the italians, in how to actually share the financial burden here. Just a put it into a bit of aedicting this pandemic worst recession than the financial crisis. Even as most businesses and Movement Restrictions are lifted in the middle of may as many are predicting, it would allow the economy to recover during the summer period. Overall, according to the german counselors economic experts, that would a specter shrink by Something Like 2. 8 this year. That is where we are with it. We are just counting the cost. The question is how much is it . That is like how long is a piece of string . Taylor rishaad, thank you as always. Still ahead, we will break down the impact the virus is having on the tech supply chain. With us Senior Analyst medhi houssini. Apples most important supplier sees profits slide. Cougar Global Investment cio tells us why he thinks the pandemic is a black swan shock unlike anything we have ever seen before. This is bloomberg. Haidi you are watching daybreak australia. Ritika President Trump says the u. S. Should see Coronavirus Infection rates peak within the next two weeks, but does the country face a challenging month ahead. He spoke as more states impose restrictions, with virginia and maryland issuing lockdowns. New york city said the rate of new cases is slowing. More than three quarters of a Million People around the world have been infected, with 37,000 fatalities. China is set to Start Publishing a date on how many people are infected with the coronavirus without showing symptoms. The premier is telling local authorities to track entry cases of socalled a symptomatically infection. It follows International Criticism of updating figures only operate. Local media data will be released soon. They are growing fears the tokyo economy might stall if there are several new virus infections reported. Japan has remained relatively free of the pandemic, but there is concern any rising cases will prompt authorities to order a lockdown and the closure of shops and restaurants. A full shutout in tokyo would be equivalent of freezing and economy the size of canadas. New data suggest australia is heading for its deepest recession 90 years, as measures to curb the coronavirus pushes businesses to the edge. Bloomberg economics says gdp will decline by 10 in the first three quarters of the year before showing a gradual recovery. The government is pledging the equivalent of 80 billion over six months to safeguard jobs. Millions of Migrant Workers continue to leave town in india as the virus lockdown ravage the economy. The benchmark start index fell on monday and poised to see the worst quarter ever amid fears the governments response may not be enough. It is set for threemonth decline of more than 30 , surpassing the previous record set through june 1992. Global news 24 hours a day on air and on quicktake by bloomberg, powered by more than 2700 journalists and analysts. This is bloomberg. Taylor . Taylor there have been plenty of comparisons of this crisis to the one back in 2008 but there are some key differences. Earlier today, bloomberg spoke to the former options trader who predicted the financial crisis in her bestseller, the blacks long. Black swan. It was a white swane. People would say it is a black swan. We have had black swans. September 11 was a black swan, but this is a white swan. There is no excuse for any corporation to not be prepared. There is no excuse for governments to be not prepared for so like this. Taylor joining us to discuss is cougar Global Investment cio and Portfolio Manager abe sheikh. I want to get your reaction to that. Nassim saying it is clearly not a black swan. We should have been prepared for this. The risk was low but there was a small chance this was coming. How do you respond to that . Abe first of all, thank you for having me. I think he makes a legitimate point that we were probably going to have a pandemic at some point. And whether that pandemic emanated from china or elsewhere was probably anyones guess. I would call it a black swan. Because it is a novel coronavirus. Novel means new. We didnt really know this actually existed and it actually was not something that humans could actually catch. I would call it a black swan, even though he has a fair point. Taylor within your top three convictions, you talk about a Second Quarter drop in gdp. That it will be unlike anything we have ever seen before. I am curious i keep asking our guests this to try to get a consensus. How many of these job losses given the massive drop in gdp are permanent and may not come back . Abe my answer to that would be a lot more than people are expecting. The reason is because this is a systemic shock i think you alluded to a supply and demand shock, i think the economy will change. Fundamentally, companies will reorganize themselves. We have businesses disruption plan, most companies do. This will fundamentally change how companies work. That will affect employment. I think you are seeing that already. Companies that have less of a presence in terms of physical workforce are going to benefit from this. I think the trend is going to stay with us. A lot of these job losses are going to come back. A lot of the hospitality arena is going to come back and services, but a lot of them are not. Haidi, are you there . You know haidi essentially saying if you look at the effect of post pandemic. Overof the last periods the last hundred years, we are realng up for decades of depressed rates and return on assets. Abe thats right. I think theres going to be a longterm effect on this. I think whether we are sort of geared up for it right now and i think we are going to see how this plays out. But i think there is going to be an impact in the longterm of the current disruption we are seeing. We cannot gauge exactly what it will be right now, but it will last quite a while longer than people think. In that case then, what are you opportunistic about . Abe gold is probably my biggest conviction bet right now. The Federal Reserve will stay in this mode of printing money for a long time. I would say that gold is going to do well. In terms of stocks, im going to take a contrarian view. Ve been hit very hard. I would say if you got a bit of a longterm timeline, they are trying to show some attractive valuations, especially in the energy sector. If you look at companies which have a solid sort of portfolio of assets, it is likely to weather this storm over a multiyear period. You can start to look at highquality energy names. Some of these energy names will go bankrupt. In financials, i think a company like jp morgan with a strong balance sheet, they will blaster this low rate environment and then the economy will normalize, rates will go a little higher. Taylor one thing in your note that caught my attention, you are looking at below average valuations on some of these cavities. Curious how we are measuring valuations given a lot of companies have withdrawn the denominator of that multiple, earnings guidance. How then are you looking at valuations if we dont know what earnings may be . Abe that is the beauty of the stock market. We never really know what earnings are going to be. We think we know. These are good times actually for longterm investors. Youve got a lot of uncertainty about what the next year is going to look like. If you got the outlook to be able to look past the next year, maybe a couple years, maybe five years down the road, you can differentiate yourself and really earn normal rate of return. In financials, i will give you a longterm trend deregulation. The november 2020 elections will show us will be elected president. President trump has initiated a series of reforms that will flow through for many years to come for the banks. It is going to reduce capital requirements, liberate some of that sector. I think financials are going to do well once we get out of this extremely stressful environment. That is how i look at it. Not trying to estimate next years earnings. I look forward maybe a couple of years, three or four years. Energy is cyclical. The saudis and russians will get along at some point, whether it is with the help of americans or not. We are eventually going to see Higher Oil Prices and that will be a good investment, if you got the right asset. Taylor you like gold. I know in the past gold has sold off. Had gold firmly reasserted its status as a proper safe haven . Abe i think it is in the process of doing that. At this point, we had 23 trillion of debt in the u. S. At the federal level. That is probably going up very substantially by the time we are done with this crisis. 1 . Uries are yielding when you lack alternatives, youve got cryptocurrencies which is one play. I think gold is another play. I think it is going higher. Whether or not at some point gold has a sharp correction, i cannot say, but over the next 12 to 18 months, i can see gold prices going a lot higher. Haidi abe, how do you feel about tech given when you take a look at the faang, it was really the part of the market that took the longest to fall and the quickest to recover . Do you see the kind of post pandemic future being bright for these companies . Computing the cloud trend getting stronger. I think a lot of companies are going to work more remotely, but im not an uber bull on technology and i will tell you what, especially over the next five years. I think tech is very extensive. Expectations are still very high. If you discount some of the names that are advertised driven, facebook and google being prime example, the rest of the stocks have not come down in any significant matter even though weve had quite a significant crisis. I think that tech tech is disrupted. Tech disrupts other industries but it also disrupts itself. So, what we are likely to see over the coming cycle is that a lot of these companies are going to see Profit Margins shrink. They will see competition between each other. New companies are going to be created that we dont know about right now that are going to bring these valuations more in line. Im not bullish on the entire market. I think it is kind of pricey and tech is the primary culprit. Very high Profit Margins, very high multiples still. I dont like buying things that i have High Expectations because it is harder to make a return in the future if you do that. Haidi as always. Thank you for joining us, abe sheikh. We do have some other big guests coming up later today on bloomberg tv, including the hong kong secretary for food and health, joining us. Ander that, the chairman a ceo with us as well. This is bloomberg. Haidi lets get a quick check of the latest business flash headlines. European letters from unicredit to aig are suspending Dividend Payments on 2019 earnings, bowing to pressure to maintain capital during the current turmoil. Half of the euro zones biggest lenders have announced they are delaying, reviewing or scrapping dividends altogether. Reported four has years earnings that missed estimates and predicted for the challenges ahead of the coronavirus saps demand in the market. The billionaire posted a 35 decline net income to just over 1 billion for 2019. At the height of the virus in china, car sales were down as much as 96 . Macys is the furlough a majority of its 130,000 workers starting april 1 in response to the coronavirus outbreak. The Iconic Department store shut all of its outlets two weeks ago, including its bloomingdales stores. Workers will not be paid but will receive health benefits. Much more to come. 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. Haidi we are just getting some breaking numbers out of australia. Another economy that has been impacted by not just the ongoing pandemic, closures, partial lockdown of the economy and across tourism and services. We are seeing these impacts coming through from the likes of the bushfires as well. We are awaiting the numbers when it comes to the Weekly Consumer Confidence survey. They have not quite come through yet but we will get them as soon as they cross. Meantime, Bloomberg Economics seeing australia suffering its biggest hit to gdp since the great depression. This is the Coronavirus Forces much of the economy to shut down. Paul allen is joining us out of sydney. More stimulus, the third stimulus package from the government. We expected this. It is not likely to be the last. What did we get in this package that will help the unemployed, for example . Paul this was a big one that we had on monday. The government announcing 130 billion, basically a wage subsidy package, similar to what the u. K. , canada and denmark has. This will give money to businesses to pay workers 1500 every two weeks. That is about 70 of the Median Income in australia. The idea being those people would not be joining the unemployment line, because unemployment is a vetted to hit about 12 . That will keep staff ready and on the books for when the eventual rebound comes. In terms of when that will be, Bloomberg Economics seems to be forecasting it could be sometime, three consecutive orders of Economic Contraction expected in australia. That would see the economy shrink 9. 7 from the Fourth Quarter of 2019. Bloomberg economics does the gradual rebound in 2020. As you mentioned, the third firing of the fiscal kanaan unlikely to be the last cannon unlikely to be the last. 130,000 businesses signed up for the Wage Subsidy Program which was announced less than 24 hours ago. The market certainly liked it. Adx had its best day on record on monday, up about 7 . It looks like we are setting up for another reasonable day today. Taylor thanks. Paul, within the markets, what are the signs some of these Public Health measures could be working . Paul also encouraging signs there. Australia has taken incremental approach towards containing the virus which has seen Health Officials cop a bit of criticism, but there is signs of working. The number of new cases per day is flattening. There is now just over 4100 cases here in australia. There have been 18 deaths. Perhaps disturbingly, two employees of a supermarket in melbourne tested positive for the virus as well. These social distancing measures do continue to gain strength. A limit of no more than two people outdoors gathering. The government of New South Wales saying anyone who is outside for not a good reason faces a fine. Government of Western Australia taking a railing approach, deploying drones to patrol beaches, parks and cafe strips to make sure people are observing those rules. Taylor paul allen in sydney. Coming back to new york, after a long economic boom in which housing gave american landlords unprecedented power to raise rent, the tables may have turned. As more people suffer from the economic fallout of the coronavirus pandemic, the Real Estate Industry faces a big test when 81 billion of rent comes due on april 1. Lets crossover to shery ahn with the latest. Im fascinated by the story. I would argue a big date is april 1 and may 1. What happens when renters do not pay . Shery it could be a big problem in the u. S. The big fear is no one really knows what could go wrong, what could happen, how bad the situation could be. Its a huge difference from just a month ago, right now with the outbreak. Theres a growing sense that many tenants will not be able to pay rent and maybe they will have to skip on paying those rent payments. Many local governments have already placed temporary bans on evictions. A Real Estate Investor coming out and saying there needs to be some forbearance on interest owed by real estate owners, also mortgage investors. Take a listen to what he had to say. The fed, the treasury, the regulators are saying lighting up on the ultimate individual american who oews rent owes rent, owes interest, who has a mortgage on the house, mortgage on the restaurant. The Regulatory Environment on top of it takes time, it is difficult. What we have been asking everyone to do is timeout. Shery apartment owners collect about 22 billion in rent in a typical month. The worst Case Scenario right now put forth by Amherst Holdings saying that perhaps in the worst extreme case, 25 of households in the u. S. Would not be able to afford paying rent. That would require about 12 billion of government assistance every month. The apartment industry alone has around 1. 5 trillion in outstanding debt. You mentioned the idea of government assistance, so what are authorities doing or thinking about doing to mitigate the impact on Property Market . Shery we are seeing regulators trying to raise and anticipating these missed payments will also turn to late loan payments. The federal Housing Agency saying fannie mae, freddie mac will delay mortgage payments, will allow apartment owners to finance through them to delay their payments. We do have the 2 trillion in stimulus measures coming from congress. Those would involve 1200 for lower and middle income americans. That could be coming in three weeks, according to secretary mnuchin. The only problem is that would only apply to those americans who less than 75,000 last year. So, a lot of people in the manufacturing, technical, Technology Positions could lose their jobs and they wouldnt get any relief. Now, we have already seen jobless claims spike in the week of march 23. 3. 2 million claims. This could have a big impact on the overall u. S. Economy and on the ability of these tenants to make those rent payments. Haidi yeah, we are really bracing for those payroll numbers after those jobless claims. Just so shocking. Shery ahn in new york. Johnson johnson surged 8 in the previous session after the company signed a 1 billion deal with the u. S. Government to supply and manufacture a vaccine against the coronavirus. Earlier, the ceo told us when he expects the first batches of the vaccine to be available. Were very hopeful, as we look at our early data, that in these cases tend to be quite correlated with what we would expect a seat as we take this into human testing in september of this year. But we also know we need to complete those other trials. We will be doing that. At the same time, we are going to be ramping up production. Willl will have we have Global Production in europe and the united states. Weak spec to be in position by the First Quarter to have a much better perspective on vaccine itself. On the kind of quantity we would have available. Our goal is to have hundreds of millions available by that time. And obviously, to work with regulators and other people around the world depending on where the coronavirus is at that time to make this accessible on an emergency basis. Give us a sense of what that Testing Process is. Is it a normal Testing Process you have for a another vaccine . Or given the urgency, are there certain things you have done to expedite that . Alex my sense is that regulators both in europe and the united states, let alone around the world, other Health Care Authorities are doing everything they can to expedite this. At the same time, we have to balance that to make sure we gather the efficacy, safety, data that is so important before using this on a largescale. In this particular case, we are working with a platform so think of it as a vaccine where weve got significant experience iv. Areas like sars, ebola, h so, we are confident in the safety data that we have seen thus far. Its already, the vector has been used in elderly. It has been used in younger children. So, that gives us confidence or may safety perspective. The early testing that we have done so far which includes a range of animals also indicates that we should have an active vaccine as well. Of course, we need to complete the trials we will be doing in humans in the Fourth Quarter before we develop the final data set that would help us make that decision at the appropriate moment. David it is a push ahead and perhaps farther than we should. If you were successful in the Fourth Quarter, when w what we have a vaccine available . Alex we intend to work closely with regulators that by late december or early january, we would expect to have some type of interim analysis in our first human trials. At that point, we would have to take a look at that data set in its totality. I think we would also be looking at how is the virus proceeding and what kind of state is it in around the world . Then, make a decision. I think at some point in the Second Quarter, we could be in a position on an emergency basis, depending on where the pandemic is going, where they could be some access to this. We would expect that the ramp up significantly over the rest of the year. David i know you were committing a lot of funds to production, not just the development, but producing a lot of it. How big could you get, how soon if it does work . Alex you are right. To have a vaccine to really work effectively, it takes two components. First of all, it is demonstrating efficacy and safety of your vaccine. Thats what we are working very hard on literally as we speak, but also as i said, some of our trials will start in september in humans. We will have Additional Data by december. You have to produce them insufficient volumes and quantity so they can make a difference in the broader population. We are fortunate in that we have a very unique production capability, where it gives us the ability and relatively small containers to make very large volumes in the hundreds of millions of doses of this vaccine. Again, let me be clear we still have more work to do to determine the exact yield of these particular technologies. And to compare that versus the safety and efficacy data. Based upon the original work we have done, we feel quite confident that we can be in the range of hundreds of millions of vaccines as we would move into the early part of 2001, with the goal to have one billion in place by the end of the year. Those we are getting Consumer Credit lines now. It is quite a horrific lunch, coming in at 65. 3, falling from 72. 2. This looks like the lowest reading weve ever had when it comes to this particular gauge. Completely unsurprising given we have seen it is not an official National Lockdown but huge parts of the economy, services, retail. Consumer going down in australia. We had already seen essentially a downtrend as soon as we have the terrible bushfires in australia which also impacted Consumer Spending confidence and Business Sentiment as well. Just getting that through. 65. 3, Weekly Consumer Confidence, just after it plunged 30 in the previous reading. Things seem to be getting worse and worse. We will get lots more after the break. Ritika you are watching daybreak asia. The World Health Organization see signs the Coronavirus Infection rate in europe is starting to ease off as spain and italy reported smaller rise in cases. Madrid is ordering people to stayathome during easter while rome is extending the lockout through early april. Urges countries to have isolation efforts to halt the spread of the virus. Everyone is talking about the curve up and everyone talks about the stabilization. The question is how do you go down . And, going down is not just about a lockdown and let go. To get down from the numbers, not just stabilize, requires a redoubling of Public Health efforts to push down. Oil is selling for less than 10 that key american hubs. The pandemic has sent it to the lowest in 18 years with supplies backing up throughout the distribution system. Saudi arabia remains locked in a price war with russia as aramcos housing huge supplies in egypt as it prepares the flood the market. U. S. Jobless are excited to set a record for a second week with the most dire production saying the figure may double from last week at 3. 3 million. Thursdays release is seen as a more barometer of the economy as it will show how the coronavirus has stalled manufacturing and sales and reshape the labor market. Last weeks number was more than quadruple the previous record. Global news 24 hours a day on air and on quicktake five bloomberg, powered by more than 2700 journalists and analysts. This is bloomberg. Haidi . Haidi thank you. Apple iphone manufacturer is showing some pain even before the coronavirus pandemic struck. The manufacturer known as foxconn reported a 24 drop in profit in the october to december period. The company saying it is getting back on track. To talk about the prospects with a view on foxconn is Senior Analyst mehdi. Are we going to see a recovery, given it was a pretty fragile recovery across the semi space before this latest event . Mehdi thank you for having me on the program. I think we will see some recovery from march into the june quarter. Some of the disruption to the supply chain now behind us. Unfortunately, it is too early to quantify the impact of the demand disruption in north america. I dont think we are going to find out until may or june. In that scenario, i think the second half of the calendar year is now questionable and we do forct a significant cut iphones, pcs and other electronics to materialize by the may timeframe when we know the extent of the demand disruption. Which companies would you say is most resilient because clearly samsung with the containment of their own manufacturing would seem to be in better position . That i think Companies Still have exposure to the Cloud Infrastructure like Samsung Memory Division will do better than companies that have direct exposure to consumer electronics. Some of the impacts from telecommute is incremental capacity needed among the data centers like microsoft accommodate working remotely. When it comes to the consumer electronics, we really dont know what happens to the number of laidoff workers and to what extent they would forgo buying a new iphone or other types of electronic devices. Improvinge is an economic picture. In that context, i think infrastructure, 5g infrastructure, Cloud Infrastructure should do better than. Consumer r. A company like samsung or micron that has direct exposure to those areas could do relatively better than companies that have direct exposure to consumer electronics. Taylor what are your thoughts on how much this could impact the race to 5g . The partshink one of of the coronavirus is acceleration infrastructure. Latency, require lower faster speed. I could actually see a scenario where infrastructure for 5g buildout would accelerate in the second half. Unfortunately, consumers will have less Discretionary Spending and i think the actual 5g phone may not do as well as expected. We recently published enough talking about apple reducing the new iphone build from 80 million expectation down to 60 million. Lesse effect from Discretionary Spending. I do think the infrastructure could actually accelerate. Taylor i am trying to get a grasp on sort of the overall thesis of your note. You talk about how the server and Enterprise Markets are some of the strongest Market Segments but it sounds like the consumer end markets within the iphone demand and some of the handsets is not really enough or that will be more so than the strength you are seeing in the server market. In my reading that correctly . Mehdi thats correct. The server is consistent with the Cloud Infrastructure build up. I dont think cloud is going to go away. In the new world where telecommute could be permanent, you do need some level of Cloud Infrastructure but when it comes down to Discretionary Spending to the extent that consumers are not going to be able to spend, that will have an adverse impact on buying a new phone. That can be pushed out to next year. But infrastructure, including cloud and 5g are something you actually going to see strength into the next, into the second half. Taylor thank you to susquehanna Senior Analyst mehdi hussein. I want to bring in some breaking news. Japan says because the fixed assets tax for companies that are impacted by the coronavirus, we have increasingly seen a lot of government step in on both the fiscal and monetary side. This does come from japan. They will be cutting some other fixed asset tax for Companies Impacted by risk. We will bring you more as we get it. Now i do want to get a quick check now on some of the latest business flash headlines. Starting with saudi aramco. They are weighing the sale of a stake in their pipeline unit to raise money as crude prices crash. The Worlds Largest oil producer is looking to raise about 10 billion on the potential sale. Aramco needs money to pay around 75 billion in dividends and needs a similar amount to pay down the first installment for the purchase of saudi chemicals. And, chinas ag Bank Reported fullyear estimates that stood at 31 billion which is almost a 5 rise yearoveryear. It says the coronavirus has hurt the chinese economy but the economic fallout on the mainland will be limited. The lender has made efforts to dispose of nonperforming assets of loans worth about 17 billion last year. Billionaire mystery family is in talks to borrow as much as 1 billion by using a stake as collateral. The money will be used to repay maturing debt by indias biggest conglomerate as the coronavirus outbreak delays plans to sell assets. Tata is worthnd as much as 18 billion. The chairman was forced out back in 2016. Much more still to come. This is bloomberg. Haidi lets take a look at how we are setting up when it comes to the tuesday session in asia. This as u. S. Stocks saw a pretty robust rally. All three of the major indices gaining by more than 3 as we get increasing confidence that may be a recalibration when it comes to testing of the coronavirus in the u. S. Is getting underway. This is what we are seeing when it comes to this part of the world. Australia set to open in five minutes. Session highs when it comes to futures but still about 1 higher after the asx traded by the end of monday higher by 7 , really taking the latest english measures in stride. Lets switch it over to look at the u. S. Futures session. We are seeing a little bit of a positivity when it comes to trading in the u. S. Lots more to come when it comes to market open. Data out of south korea as well as watching the oil markets as the selloff continues overnight. We have more market analysis. That, wetle bit after will be joined by the hong kong secretary for commerce and economic development. Lots more to come. This is bloomberg. Very good morning. I am haidi stroudwatts in sydney. Injapan and south korea open an hour. I am taylor riggs in new york. Welcome to daybreak asia. Set to track are wall street higher amid new hopes about the virus that President Trump warned that the u. S. Faces a challenging month ahead and a challenge for japan. There is concern