China is accused of faking virus data. And oil slumps yet again. President trump says he may intervene in the standoff between saudi arabia and russia. Taylor lets get a check on how u. S. Stocks ended the day. We opened up to the downside. Off by 4. 4 . The biggest selloff in two weeks. Really acrosstheboard. All of the defensive sector selling off. There was some concern for the market. Perhaps some optimism as the selloff on wednesday could reverse some of those if you think futures are up. I want to flip up the board because it has all been coming down to these oil markets. Haidi we are setting up for that negative start to trading in asia. We are looking at japanese and korean futures. Weakness here in sydney. Looking at the degree of the trading, down more than 3 . Watching out for the kiwi dollar and aussie dollar. Taylor a press conference is happening now. President trump is warning that malign actors will try to exploit the situation. Naval vesselsg and planes in the region. Latest we know about the . President trump is using this to talk about malign actors. Is attorney general coming out and saying that they are destroying the cartels. Also talking about having very good information about iran. This all coming at a time when we have 200,000 confirmed cases. The pentagon is seeking to provide military style body bags. Painting a very grim picture. Haidi there has been some. Kepticism globally we have this report giving credibility to the suspicions. We have talked about the skepticism of the data being provided by china. Only about 82,000 cases. Sources are telling bloombergs that the u. S. Intelligent committee concluded that china the outbreak. There was a lot of doubt about these numbers. That has really driven public doubt. The modeling in the as thet we have seen virus heads into the summer adds to the concerns that the economy will be impacted by extensive shutdown. Is manye talking about as 200,000 deaths here in the u. S. States are now adding to their shelterinplace orders. Unemployment could soar to 15,000. More than 20 million jobs could be lost. The more severe the lockdown, the sharper the economic hit. It is difficult to predict what will happen given they are struggling to keep uptodate in light of these very rapidly evolving developments. Taylor i want to bring you some breaking news. Carnival is looking to price share sales at eight dollars a share. That is a little bit lower. Carnival has canceled a lot of their cruises through the end of the year. They are also looking at a bond sale. Haidi lets get a quick look at headlines. Bookings tumbled to their lowest levels. The Employment Index fell to its lowest level since may. Record monthly manufacturing declines. Oil whipsawed again on the news that President Trump plans to discuss how to stabilize the market. Car sales in japan slumps. Automakers have fences spending production as demand plummets. China is considering blowing subsidies for electric vehicles. The state council says rebates will follow through 2022. Various Government Agencies are these subsidies could be lowered. Global news, 24 hours a day, on air and on quicktake by bloomberg, powered by more than 2700 journalists and analysts in over 120 countries. Taylor still ahead, saudi arabia follows through on eval to produce more oil. We discussed. Next, a Market Outlook as investors brace for a longer economic shutdown. This is bloomberg. Taylor u. S. Stocks and bond yields tumbled. Sectors that usually benefit are in great decline. This is indicative of a larger problem. I am desperate to get your analysis on todays price reduction. We saw a return to normalcy with equities falling. You had a lot of those defensive sectors underperform. Something under the hood more concerning to you . There sure is. When investors are looking at stocks and they are buying , probably not the market. No one is lining up for going on this ride. The hard part is imagining when things are going to return to normal. Not what is going to happen to that company. There are a lot of people on the sidelines. Heartakes for some stopping drops in the market. Nobody really wants to catch that knife when they cant company beinglity able to execute if they dont know when they can begin. We could be an this a lot longer than we originally thought. I think that is consensus from the streets. We knew that, but it is still really scary. How long can some of these Companies Manage . Companiesoking for that have unbelievably strong balance sheets. A bonus. S always cash is king. For companies that can operate in the current environment. Airlines and cruise lines are completely out of question. Not that they were ever attractive to me. They are not at all being looked at. It is things like semi conductors. We know people need electronics. Software companies. Some retail. We still have to buy stuff. For retail, would you be looking at ecommerce . Obviously there are names coming out of this. Cruise lines and airlines. Are wondering if there systematic plays that come out of the other end of this . Moving away from Global Supply chains. Away from china. Looking at people who would benefit from a difference in the supply chain. Meanwould probably companies would have to build factories. They would have to be automated. Those companies, i am certainly looking at. Far in front of us to be able to say with certainty, this company will probably make it through. They might thrive in that new era. There are really robust, quality names that now have a great deal of uncertainty in the next few months. You said cash is still king. Produced somerket really attractive rallies. Not bee an argument to investing at this point . I was talking about the companys cash. You should the ploy half of what you think you should over the course of the next month or two. Anything can happen. What if a cure is found . Of processe kind comes that is manageable . And it is only four months . I know we are talking positives. Badll look at negative, things happening. But good things happen unexpectedly as well. You cant be exposed to the market. It can run away from you. We saw that as we came out of 2009 as well. The cataclysm didnt happen. We marched on with our lives. I understand we are in a different era. But that was scary. Still have to have market exposure. I strongly believe that. Highlighted companies with cash on their balance sheets. I think for a long time in this market we were seeing companies that were hoarding cash. A company like apple. You are looking at net cash. Will there be systemic shift in the way we think about companies who are hoarding cash . Instead of looking to force them to spend it, really rewarding them for holding onto it . I think there might be a rebound of this. Maybe in the next couple of years. Toare not buying a company be a Portfolio Manager to tell us how much cash. There are Certain Companies we look at and say there is too much cash. Especially if you factor in their cash flow. How much is being added every month or quarter. We will probably reward companies with lots of cash over the next two years. But then maybe back away from that over time. Always a pleasure having you on. We will have plenty more market coverage ahead. Coming up next, softbank is close to pulling out of it deal to buy we work. That story is next. This is bloomberg. Haidi sources have told us that softbank continues to allow the deadline to expire with we works. Our Venture Capital reporter joins us on the line. You have been covering this from the start. What a mess. It is a very genetic turn. This 3 billion offer was a major part of the deal that software softbank and we work struck. There are a lot of former employees and current employees who are anticipating his share purchase as a way to get some value out of their shares. They have tanked in value over the last year. Nowor what does this mean not only financially but the longterm issue of what the coronavirus is done . We know they are known for crowding people together. It is certainly not a good sign. You would hope to see some Investor Confidence at a trouble time. Softbank owns 80 of the company. The fact that they do not want to go through with the second purchase is not great. We work is going to be hit very hard by the implications of the coronavirus. They currently have a lot of who are prevented by government from leaving their homes. They will face a longterm issue. People may not feel safe in such crowded places moving forward. It is likely to be a difficult time. Their customers who are telling them that they cannot pay rent. They need help. In terms of the , this deal is contingent. What options remain . Wework had already gotten some financing from softbank in the fall. They had 1. 1 billion in Debt Financing that was contingent on the offer being completed. This share purchase is not going to affect the amount of money that goes directly to the company. But that is not quite true. That was contingent on completing this deal. This is still a company that loses a lot of money. Haidi thank you so much for joining us. We have some breaking news. The federal trade commission has filed administrative complaints juul went intod a series of agreements. Was in violation of federal antitrust laws. Another twist and turn in this situation with juul. Triahave the ceo of al saying they gave him no bonus in 2019. They have struggled with investment in the vaping company. To sec has filed a lawsuit unwind that investments that altria made in juul. Taylor breaking news from british airways. They are expected to suspend 36,000 of their staff. They have grounded much of their fleet. They have been negotiating with their union for more than a week. Both sides are trying to reach a deal. Suspending 36,000 of their staff. They have grounded much of their fleet. We will have more big guests coming up today. We will hear exclusively from the ceo of bank of america. He tells us why he thinks the u. S. Economy is in better shape than many expect even amid the pandemic. This is bloomberg. The fed, the treasury, the regulators are single latent up s rent,american who owe who has a mortgage on their cafe, on their restaurant. Time is difficult. So we have been asking people, timeout. Haidi bank of america Ceo Brian Moynihan is taking an optimistic view of the prospects of the recovery, sing that growth will bounce back fairly quickly once the coronavirus is resolved. Thinks the u. S. Economy is in a better position than many may think. As we went through january and february, we saw with our Consumer Spending at a much faster rate, doubledigit versus 2019. The economy is going to be able to grow faster than people projected, would be my guest. Would be my guess. Even with the impact in march, we will still see consumers spending in the aggregate cost 3 trillion in a year be up for march, not a lot, but 2 , 3 , Something Like that, and yeartodate it will be up high single digits. So the economy is on this path. Just as you watch march play outcome it has changed dramatically. What the Federal Reserve did was stabilize the markets, what Congress Passed with the stimulus bill is an effort to keep people employed. Number one at bank of america, we have told our team that they have a job which is important, and Many Employers say simply keeping people employed, keep cash in the household, thats terrific, and keeps the baseline economy growing. The other thing is Small Businesses, helping them implement a Program Beginning friday. The key to that is how we get that money, how quickly as a banking industry, on behalf of congress and the president and the administration. They developed a set of regulations. They are coming out and they are in process and have been published come starting to publish them. We just ask that customers be patient. Go back to their bank where they are a lending relationship, work with those banks. We will have millions of customers come to us in the program and it will be very good. It will also cover overhead, which is good things to help Small Businesses through this tough time. We are setting up shop and activating thousands of people to take applications, a huge digital presence, and if everybody does it in an orderly family orderly fashion, it would be very good for the u. S. Economy. All of us are hearing that we can get through this crisis, but looking forward a bit, some economists are talking about a reductionrejection in consumption. Is there a risk of that . At the end of the day one of the things that is great is if you think about the throughput of the u. S. Economy, with the amount of stimulus, the amount of fiscal support, monetary support, you look at economistss where they are 25 down in the Second Quarter, and the sheer amount of dollars is 5 trillion in the economy, quarterly, it is overwhelmed by the support in the markets. All of that is geared towards getting us through the other side of this faster. If we mitigate the healthcare crisis, you will see on the other side of this a rebound. That is what are economists say. As people have adjusted their Second Quarter down because of unemployment, the claims last week and what people are guessing will happen this week, there will be a deeper downdraft, but most economists and our internal economists believe on the other there was a reversion back to the economy almost getting back to the same size at some time in the next year that it was prior to this, which is a pretty fast turnaround. I think that is the core belief. Because you are not changing anything fundamentally about the business cycle, about whats going on. You are saying if you get past this virus it works. If you look at china right now the data is getting stronger because of the fact they are on the other side of the situation and we are seeing when i talk to our commercial clients, the factories they work with, 65 , china, and theof factories are starting up and even some of the places that were most affected people are going out and shopping. The question is when the consumer feels comfortable going ,ut and going to restaurants going to shop at a store and do things like that carrie that will come when the Health Care Crisis is resolved, and that obviously there is a tremendous amount of talented people, the best Health Care System of the world working on that everyday. When that happens, whatever time that is, that is when the behavior will revert back. It is just a question of when we get back. Taylor bank of america Ceo Brian Moynihan. We will get more with our Bloomberg Financial reporter. What is the consensus from the banks in terms of their Economic Outlook . Hi, taylor, great to join you. I think you heard from brian moynihan, bankers are trying to reassure people about the economy. While we have a standstill in the economy due to this virus, what is happening really is this is a standstill and the bankers trying to find a way to float some of these payments to their for them not to suffer so much hardship and basically give people more time to deal with the impact of this virus. That comes in the form of economic support, stimulus, which the bankers or try to help the government enact. We have seen major banks be pretty quick to reassure their employees. We have seen them give out special bonuses, saying they will not be having layoffs, also extending the offers to customers for loan payments. Student loans are also coming into play separately. In terms of the playbook from 2008 to what we are seeing now, have there been Lessons Learned from the big lenders that are different . Es, definitely, you said it right, the banks are trying as much as they can to be very helpful very early on. Obviously u. S. Banks will be really involved in the Small Business rescue plan in terms of transmitting that to the broader economy and Small Businesses in the u. S. Bank of americas ceo talked about the bank has done 70 billion in commercial lending this month alone. That is part of 400 billion the major banks have done this month as well. Anhink there has been acknowledgment by the Major Bank Ceos there is an issue here and they have been very quick to step in and say, listen, we have huge amount of capital, we are ready to deploy, we are helping the authorities transmit this assistance to the broader economy. It is interesting, the charm offensive. Week out at last u. K. Banks for holding dividends, sing u. S. Banks are not doing the same. He said the banks are not in his view capital short and it could hurt small investors and Small Businesses. Is that the view that is being held across the board . I think that is quite a popular view. What were hearing is this will hurt Retail Investors and small investors and undermine confidence in the Banking Sector when banks in the u. S. By and large are very well capitalized. What is more exit what is more significant and already short of confidence is the major banks have suspended buybacks in the u. S. I think for now that is seen as a measure that helps assure the system and gives people confidence, and so far it doesnt seem like there is much support for banks in the u. S. To suspend evidence. Taylor our Bloomberg Finance reporter, lananh nguyen. And dont miss our interview with bill winters at 9 30 a. M. London, 7 30 p. M. If you are watching and sitting. Meantime, lets get a quick check on the first word headlines. The u. S. Seeking as many as 100,000 military body bags as the u. S. Ones coronavirus deaths across the country will increase in the coming weeks. The Trump Administration says as many as 200,000 people may die. President trump says the next 30 days are critical for the u. S. As coronavirus cases continue to rise around the world. This has more than doubled in the past week. In the next few days, we will reach one million confirmed cases and 50,000 deaths. U. S. Intelligence is accusing china of concealing the true extent of the coronavirus operate, underreporting total cases and deaths. We are told Public Statement about the infection have been intentionally incomplete and the numbers are fake. Beijing has changed its reporting of people with the virus, showing no symptoms, adding 130,000 cases in the first day. Italy is extending its locked for another two weeks even as reported deaths from the infections slow. Restaurants, bars, and public venues are closed. All nonessential Economic Activity has stopped and internal movement is severely restricted. Health authorities report 727 new fidelitys in the last day, the lowest number of deaths in the last six days. Total cases are now more than 110,000. India is stepping up measures to topple the infection, the r. B. I. Introducing financing. It triggered a nationwide lockdown and the imf has already declared it. Health experts say that india may be the next coronavirus hotspot as cases and deaths rise. Next, President Trump is set to speak to u. S. Oil executives as the unprecedented collapse in global crude markets threatens tens of thousands of jobs. This is bloomberg. President haidi trump is weighing in on the oil spat between russia and saudi arabia. They will meet with u. S. Oil executive companies. From svb Energy International joins us now. It is very unlikely we will get a protocol resolving the standoff. Soon to comes too to that conclusion because obviously these are the few months that we are entering into a few weeks since the coronavirus outbreak became a global issue and pretty much a global lockdown. Is justct on the demand being observed and changed into a much huger than expected impact. On the supply side, although the saudi strategy of market share and increasing production to maximum level and reducing prices has also on the other side impacted the prices. We could still expect at some point that if all the producers not only the opec and russia, but the other ones also agree to come up with cutting back there might be some consensus or agreement in the market. Meantime, we saw saudi arabia boosting production by 12 billion barrels per day, the most ever, and also talked about expanding exports in may. Im curious about the export side. Given the demand, how would they be able to expand exports in this current macroeconomic situation . This is a very good question because even though there are doubts about the market still waiting to see if the saudis will really produce 12 billion barrels per day, because they havent so far produced 12 Million Barrels per day, only crude oil, but on the export side, they can expand exports more than previous capacity both from inventory and also what they have done is they have started to utilize their gas lands in dubai, which is part of their massive gas plant, processing gas from the field, offshore, and the onshore field. Gas to giving additional saudi domestic power generation, and on the other side frees up some of the oil and liquid that was used for domestic generation that can be allocated for export. On the export side, saudi can increase this month and in the coming months. It can increase its export capacity, but that all of that will have an impact on the prices. Reasons,or budget another major issue for saudi arabia is the ipo, where it has already lost value and the saudi aramco value has gone down so far. Taylor exactly, so walk me through, how long do saudi aramco shareholders put up with this . Six months, the goal is six months, coming up in june, actually. Saudis who have purchased the shares have been encouraged to lock their shares and dont sell those before six months. Obviously the people on the ground in saudi arabia, they may be worried about the value of their shares, and by june, which is six months, the deadline coming up, if the value starts dropping, you might see saudis starting to sell off the shares, which is going to have a greater impact downward, downward impact on the value of the aramco shares an ipo. The other major issue i want to mention is currently we are seeing all this onshore storage and inventory filling up, as well as the tankers for transportation, really increasing significantly. Even a political consensus, all of the structure, the facilities, storage may fill up and there may not be anymore enough capacity to store the additional oil. That might push prices even to negative, which we saw in the u. S. Oil used mostly had already gone to negative prices. Even when the market is so worried about political producers,the opec you might start to see storch fill up and there is no more place for additional production. So that has an impact on the production. Taylor im wondering if the increase in output is what you would call it a war on u. S. Shale. How long does u. S. Shale responded, how long do they have to survive . Well, i dont like the concept of war. What i would like to call it is a struggle for survival. That we hadhe time a significant demand drop because of the coronavirus outbreak, most of the world is on lockdown. We have Major Airlines like emirates, airlines have suspended most of their flights. Is in thebal demand transportation sector, and when the coronavirus was just a china issue, most of the institutions drop their demand estimates down about one Million Barrels per day, but what we saw in march was about 10. 5 Million Barrels of demand from the market, and the expectation is this is going to go to about 18 inlion or 19 Million Barrels april. At this time, although of the producers are struggling to survive. Obviously we cannot expect countries like saudi arabia or russia or opec countries to cut production to allow shale production to grow. This is something that has happened since 2017. Opec and russia have cut production, and this has somehow subsidize the shale growth, allowing the level that shale production is growing. But at this point, it is a struggle for survival. I really dont like to call it a war, but it is a situation where everybody wants to survive. As a consequence of this survival strategy that has been taken by opec and russia, we will see a significant negative and downward pressure on u. S. Shale producer and production, which is high again. There are expectations by the end of 2020 or 2021 we may have as much as 2 Million Barrels per day of u. S. Oil production. Taylor svb Energy InternationalInternational Founder and president sara vakhshouri, thank you for joining us. Up, peter king name ceo of the next two years to restore the banks reputation after the Money Laundering crisis. We will have the latest next. This is bloomberg. Westpac has named peter king the ceo for the next two years. He has been the interim ceo the last few months. What is the thinking behind appointing him permanently . Continuity, it is stability as well. The chairman said they need a new ceo right now, not later on, not just in the acting capacity, and its also obviously a time of great global stress and uncertainty, so stability is central. Peter king fits that regard. Acting incting cfo, that role since november. He has steadied the ship after a couple of other major problems with westpac. One was the Royal Commission into the banking industry, and in november westpac got sued over 23 million for Money Laundering scandal, failing to detect payments. That was the job of the predecessor. King says now that he is of the role permanently, or two years anyway, so he will be focused on responding to the virus crisis and working with the government and sector to keep the Financial Sector going. Theor paul, outside Banking Sector, switching to the airlines, it seems to be a anding feud between qantas Virgin Airlines over government aid. Whats the latest . Paul it is a curious story, this one. Qantas of course has for loaded staff, built up a cash reserve of 3 billion australian dollars furloughed staff. They have positioned themselves to cervone to survive strongly. Virginals really has been unprofitable for seven years and is now looking for a government loan that will convert to equity if not repaid. But qantas is saying, wait a minute, why is virgin rewarded for bad management . If they are getting aid, we should get proportional aid, which would be about 4. 2 billion aussie dollars. Virgin for its part says that qantas is spreading rumors about they are attion, so odds, and the government once a Competitive Airline sector and wants this to blow over. Taylor paul allen in sydney. A check now on some of the markets on wednesday in new york, a rough first day to start off the trading on april 1. But we are seeing some of that resilience in the markets. The futures markets have just opened up less than an hour ago. You are getting some of the bond futures again continuing to go a little stronger. New zealand and australia a penny lower, taking cues from the u. S. On the trading session wednesday with the pessimism we saw in the closing market wednesday, carrying over. We will be having more Market Analysis when we are joined by chrisch affiliate cio brightman, and we will have more analysis coming up, so stay with us. This is bloomberg. To help you stay informed of the latest news just say coronavirus into your xfinity voice remote to access Important Information and special reports from around the world. And to keep your kids learning at home, say education to discover learning collections for all ages from our partners at common sense media, curiosity stream, history vault, reading corner and many others. For more information on how you can stay connected, visit xfinity. Com prepare. Haidi very good morning. , wheredi stroudwatts banks have just opened in japan. Taylor im taylor riggs in new york, and this is bloomberg daybreak asia. Asian stocks are primed for decline after wall street opened the quarter with a steep fall, traders questioning the effectiveness of virus control. China is accused of