Transcripts For BLOOMBERG Bloomberg Markets Asia 20240713

Exception of the new zealand dollar. We see the japanese yen weakening a bit and the renminbi was in focus. To 1714. Nching closer 711 93 for your onshore. Bonds are mixed across the board. Australian 10 we are watching it was the rba announced not a smaller amount than expected. Seeing a little bit of a selloff when it comes to your aussie bones. Up eight basis points. Areomes to brent, we getting a little bit of a breather. Higher. A half percent we are hovering around 21 for wti. There is optimism President Trump is going to be meeting. Ith oil execs that is leading to some of the oil bulls to come back out again. Lets get the first word news. U. S. Intelligence is accusing china of concealing the true extent of the coronavirus outbreak. Underreporting total cases and deaths. We are told the public statements about the infection have been intentionally incomplete and the numbers are fake. Beijing has changed its reporting of people and added hundred 30 extra cases in the first day. As many as seeking 100,000 military style body bags as authorities worn coronavirus deaths may soar in the coming weeks. The pentagon may withdraw the bags from its stockpile. Trump administration saying as many as 200,000 people could die. President trump says the next 30 days are critical for the u. S. As cases continue to rise around the world. More than doubled in the past week. In the next few days, we will reach one million confirmed deaths. D 50,000 u. S. Factories contracted in march at the click a space 11 years. The ism says bookings tumbled to their lowest levels since march 2009 while the Employment Index fell to the weakest since may of that year. Declines inacturing dallas, new york, philadelphia and kansas city. Italy is extending its lockdown for another two weeks even as reported deaths slow. Restaurants, bars and public venues are closed. All nonessential Economic Activity has stopped. Report 727 new fatalities in the last day. That is the lowest number of deaths in six days. Than cases are now more 110,000. 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. This is bloomberg. Businesses around the world are shifting into overdrive to fight the coronavirus. Providing everything from facemask to rubber gloves and hopefully soon, vaccines. The next guest runs chinas pharmaceutical company, which initiated trials. Us on thefor joining program. Ascletic specializes in treatments. You have a pipeline for an hiv drug. Do you make of the research that is going on for this coronavirus outbreak . Are we getting closer to finding some type of antiviral to fight this disease . Thank you much for having me. Antiviral start is two fold. One is to repurpose existing drugs which demonstrate the safety. [indiscernible] second is to Research New Drugs against coronavirus. So our first Clinical Trials all based on repurpose any theting drugs, especially hepatitis c drug. Moment, first, more simple studies of 11 patients moderate coronavirus patients. All 11 patients are discharged from the hospital because they met discharge conditions including occupants in the law, [indiscernible] thank you. Yvonne lets talk a little more about the Clinical Trial. I presume that is what youre talking about. It appears this small Clinical Trial has proven to be effective. Are there any plans to expand it to a bigger control group . Withs, we are working different doctors. In china and outside china. There are not too many cases of coronavirus in china. We need to expand to Clinical Trials outside of china. Any government our companies expressed interest in our antiviral drug . In your antiviral drugs . Yes, we have received interest overseas from italy, from luxembourg, from usa. We are talking to them right now because our goal is to help patients on a global basis as soon as possible. Haslinda are you confident that perhaps they will be recommended as a possible way of treating the virus . So. Ell, we hope as we mentioned, the trial is more simple. Only 11 patients. We need more data to demonstrate efficacy. Against the coronavirus. What about your therapy of antiviral x co nine . That has showed some encouraging signs. Do you see this type of combo therapy as a growth driver to be approved by regulators . Could bethis covid19 a bigger growth driver for your company. You are right because we focus on antiviral including hep c and hivaids. Coronavirus is urgent. Combination, both of them are hiv inhibitors. We definitely have [indiscernible] one for hivaids. One for coronavirus. Yvonne how do you view your does itdidates how differ from what other Pharma Companies are testing right now . Or thees of remdesivir antimalaria drug, hydrochloric one. Hydrochloric how do you compare those at the moment . Our targets are different from the drugs you mentioned such as remdesivir. Our [indiscernible] demonstrates the hiv and the hep c are very effective targets against the virus. There are two important targets for coronavirus. We are happy to see Different Companies working out different targets. Targeting in [indiscernible] give us a sense of your companys plan on developing therapies for this pandemic. So, as i mentioned, the two different approaches. One for vaccine and one for medicines. Take some time. Same thing for Drug Development of medicines. First, to repurpose existing because we have to demonstrate efficacy during Clinical Trials. Second, all these drugs are notg our drugs designed for coronavirus. They designed for ebola or hpv. Drugsd to Research Better hopefully to coronavirus because pandemic may last for longer than expected, may come back at some point. We do not know. Whennda when we came we come out of this pandemic, do you think there will be permanent changes to the way we do business . Do you think there will be changes to the pharmaceutical industry . I think you are right. In my personal view, i think we already changed the way of our normal life. In the pharmaceutical scene, same thing. Started Research Based on things helpl these us to quickly identify it may be an interesting candidate for coronavirus. Trials. Into clinical we start Clinical Trials. You can see [indiscernible] yvonne that is good to hear. There has been so much blame games that are being pointed at between the u. S. And china on what prompted the spread of this virus. We just saw a recently the u. S. Criticize and u. S. Intelligence Officials Saying that china was concealing the extent of this coronavirus outbreak. What do you make of the governments response since the outbreak began . Scientist my a goal is help patients as much as we can with existing drugs and Research New Drugs. Emergency,nder such every government should be responsible for their part just ake we as a scientist, as company, we do our job. Yvonne appreciate your insights. Hat was jinzi wu seeking toxchange scrap samsung stock waiting cap a role. Coming through when it comes to the exchange. The big tech company, they are one of the most heavily rated stocks on the kospi right now. Up. O see shares the Great Exchange saying they are seeking to scrap the stock rating cap role. Haslinda we have more Business Leaders coming up. Do not miss our exclusive interview with Tony Fernandez later this hour. Plus, we will hear from bank of america and the qualcomm ceo. This is bloomberg. Haslinda the u. S. Intelligence community has accused china of concealing the extent of its coronavirus outbreak. That according to three u. S. Officials. We are joined by our chief north asia correspondent, Stephen Engle in hong kong. We now have this Intelligence Report saying the same thing. Hen that is right. Allegedlycluded china concealed the extent of the up break, underreporting cases and death tolls. This according to three u. S. Officials who spoke on condition of anonymity, telling Bloomberg News two of the officials report that the chinese numbers are fake allegedly. Italy and spain combined have five times more cases than what china has reported and eight times more deaths than more deaths. Have china reporting 82,000. The u. S. , 209,000. Yvonne how dire is the situation getting in the u. S. , in particular of the hardest hit state new york . Stephen new york has more confirmed cases than anywhere else in the United States. From8 is the latest tally the Johns Hopkins coronavirus resource website. That is more than china has reported for the whole country. New york city, 47,000 and counting cases. Deaths in new york city alone are 1139. One in five of the hospitalizations in new york are under 44 years of age. And is quite surprising surprising epidemiologist as to why that is. Here is a morbid stat as well. Isyesterday the white house protecting upwards of 240,000 potential deaths. The pentagon aiming to provide as many as 100,000 villa terry style body bags for civilian use. This is an indication of how bad the situation has come. On that stat about the young people being infected, Governor Cuomo of new york says too many young people continue to not get the message they can be infected. Yvonne thank you. Correspondent our with an update on the situation in the u. S. Coming up, and of a 3 million americans are filing tablas claims. We look ahead for what could be a record rise. This is bloomberg. It is a big country. We can carry 10 more debt. If there was ever a time where you wanted to do Something Like this, now is that time. Yvonne lets get more on the markets, which have lost some of last weeks luster. Our coanchor joining us from hong kong. It just comes down to the virus. David and it is not just that the story is still here. It is getting worse in some parts of asia. These are some of the parts of asia where there already have been questions lingering if we did see an outbreak in those places. Can authorities handle it and to a larger extent, what would be the impact on those economies as well . Seen two days has have seen the group of second rate countries. Philippines, 230. Fairly pronounced moves again in those specific markets. Futures are pointing lower as well. On the backdrop of this, you have equity volumes continuing to move lower. The luster you mentioned that has gone away, volumes are 30, 40 . Analysts are putting our earnest are putting earnings estimates when is no end in sight those changes and expectations are going to broaden. Yvonne looking ahead to some important neighbor data, give us a quick sense of what we are looking at. Weekly jobless claim. Last week saw a massive spike to 3. 3 million. Last weeks report was for the year before that. Thatwe are getting today, it is expected to be 3. 7 million. Ifwill be interesting to see economists are able to recalibrate their forecasts based on how bad if last weeks mess was any indication, the 3. 7 million we are going to get today will be even five my impaired that is all speculation. Even 5 million. That is all speculation. Million americans have likely filed for unemployment benefits. That is due out today. Just to give and extent of the economic damage. There is a great piece on bloomberg today that talks about economists are giving up on the v shape recovery. U or a nike swoosh. Haslinda david ingles, our bloomberg coanchor. Qualcomm says it has seen the return of chip demand in china. The ceo says the market is improving activity after weeks of virus shutdowns. His comments mirror those of other executives who say demand in china is beginning to plunge back to previous levels. The tech supply chain has remained fairly strong during the crisis. New analysis from Jp Morgan Says gaming revenue in macau could fall to near zero as restrictions hit arrivals. April could be the worst month since 2004. Ave rose toshow revenues 664 million. One of las vegas is most famous casinos is a victim of the coronavirus shutdown. The tropicana was a favorite haunt of Frank Sinatra and was featured in the godfather. It also pioneered the swim up like check table. 52 million less then it caused five years ago. Plenty more ahead. We discussed the Coronavirus Impact on aviation with Tony Fernandez. Do not miss the interview. Coming to you exclusively on bloomberg tv. More to come. 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. Yorknda 10 29 p. M. In new. These are your first word headlines. Employment at u. S. Factories contracted in march at the quickest pace in 11 years as coronavirus hits demand. The isms has they are at the lowest levels since 2009 while the Employment Index fell to its weakest. Record monthly manufacturing declines in dallas, new york, philadelphia and more. News President Trump intends to meet Top Producers on how to stabilize the oil market. Fridays potential talk between saudi arabia and russia comes after a white house effort to rubber a solution to the price war. Moscow says it has no firm plans to speak to opecs leading member. While it reeling from the worst quarter ever as producers flood the market. Car sales in japan slumped in the year ending in march. Toyota and nissan and other build 5 million vehicles that year with sales for march falling more than 9 . Automakers have suspended production at plants at home and abroad as demand plummets and workers seek safety. China is considering lowering subsidies for electric vehicles as it commits to extending the program for another two years. The state council says rebates the continue until 2022 as coronavirus hits demand. Government agencies are discussing whether to cut incentives by 10 this year. The range of cars covered by the subsidy may be narrowed. Check, thoset negative headlines coming through from the coronavirus. That continues to make the markets heavy. The asiapacific region, down close to 1 , e. M. Ending hit again and getting hit again and msg i china lower by 0. 25 . When it comes to msci china, looking decent when it comes to , and the, philippines hang seng, you continue to watch the outfall or the followup i should say from the macau casinos where revenue dropped 80 in march from a year ago. And other banks continue to follow your regulators told them to scrap dividends and buyouts. Watching the nikkei 225, lower by 0. 8 in the lunch break. The coronavirus pandemic has disrupted global slashingith airlines costs and implementing costcutting measures to survive. And reducedpended capacity for most of its fleet. Joining us by phone for an the air asiat is group ceo. Tony, good to have you with us. Lots of doom and gloom in aviation. Singapore Airlines Cutting 96 of capacity. How is it looking at airasia . Tony hello . Haslinda tony . How is it looking at airasia amid all the doom and gloom in aviation . Tony it is tough. I dont think we can say anything else but that. It is up and down. Closed down operations from month. We hope to start resuming sales in the middle of april and we have lots of ideas to get going again. But it will be an uphill slog. We remain optimistic. We are lucky that we have a lot of our business in a conditional format as more people transact online and we can capitalize on that. Haslinda a lot of questions about the future for airasia. The longhaul carrier that has paindy been reeling from and losses even before the pandemic struck. What is the plan for airasia x now . Tony we were rationalizing the fleet anyway. Most of our flight has become involved. It is an extension of airasia. Airasia has been doing well over the last quarter and the beginning of january. E are changing the fleet routes are shorter. We think there will be beneficiaries, and people want to save money. We will return a lowcost product that is viable. In the immediate future, travel will be very reachable and wont be cross continental. Air asia is in a good spot to broker those, both airasia and airasiax. Yvonne we mentioned the gloom and doom in the industry. We will look to you for a Silver Lining. Our oil prices the Silver Lining . Is that going to help you will the collapse in oil offset the drop in air travel . And we are Restructuring Oil is less of an issue right now. And ifld be five dollars there is no demand it makes no difference but oil being where does, that helps. , thisreturn to flying will offset some of the drop in demand. Travel, and i have been through many crises and this is obviously the worst. Doubt the most difficult. Travel will remain and i think at every crisis, we at airasia have benefited. Competition will drop a little. Capacity will drop. It will balance out. Our cost structures, we are restructuring more. The business is very viable. Year, yourof last net cash position at airasia was 2. 2 billion ringgit. Do you think this is enough to weather the current challenging environment or will you be seeking a bailout . Tony no bailout, we dont need a bailout. Obviously Many Airlines are looking at loans. We think the cash market for the most part of this year, if sales return we are ok but it would be great to get a loan, as well. We think liquidity is available in asia and thailand. We had enough cash to last us quite a while at the moment. Long ago people talked about the possibility of a merger between airasia and malaysian airlines. Given current circumstances, is that possibility . Is that likely . Is that being talked about . Tony not that i am aware of. We are focused on getting sales in order. It hasnt been mentioned to me at the moment. Haslinda is that something you would consider . [indiscernible] as a solution. We focus on ourselves. But at this time, we will keep all options open. At theot being discussed moment. Haslinda talk to us about your fleet plan with the pandemic hitting the industry. You delayed your deliveries of the a330. What are the plans Going Forward in the quarters ahead . Tony i think that is the milliondollar question. We have a large order with airbus. We have an interesting relationship with airbus. About new to talk aircraft right now when demand is what it is. But we will have to see. I think all airlines, any airline is taking a hit right now. It is about hunkering down, being positive, and bouncing can begin to beat this, which will eventually happen. I remain optimistic that business will come back. But i dont think growth will come back for a while. I cant see Many Airlines taking new airplanes for growth for a while. That is something we will have to discuss and we are in discussions at the moment. Yvonne so no consideration line w . Tony bottom sorry . Yvonne is there any consideration of switching a330 orders for 787s now . Tony no. , we have an interesting relationship with airbus. But they are very much our partner. We continue with that at the moment. Airbus, i boeing, cant see any of this for a while. The Airline Industry has to recover. Prices will come down, Business Models will change. Prepared. You can put your head in the sand and cry or you can get up and do something. We are lucky we restructured our business. We have some ideas there. Ut we remain optimistic it is better to have more cash than less cash but we have enough at the moment and we will be hoping to do better. It is about getting our planes flying again. That is the most important thing right now. Growth will come later. Yvonne is the malaysian government doing enough to help aviation . Many carriers could go bankrupt by the end of may if governments want help. Is there more they can do . Tony [indiscernible] nowuch on their plate right. We see from various angles, there are airlines in thailand and malaysia and indonesia and the philippines and japan and india. Saysovernment [indiscernible] they are going industry by industry. Wed made our recommendations to government on the future and i think something will come out. They didnt incredible job in this time right now and it is unprecedented. It is a big contributor to the gdp,sian economy, 20 of airasia itself is 1. 8 of the gdp. We sure we are sure our suggestions will be listened to. Haslinda can you talk to us about jv what tata this . Tony it is doing good. We have 28 planes there. Tata, we were able to raise a lot of lines. They have a lot of cash right now. We will be waiting for International Approval although that is not relevant at the moment. India has banned international flights. Yvonne do you think at some point tata will have to choose between air asia and another airline . Tony i dont know. Like have to ask tata. Many of their businesses, they have premium and lowcost. That has never been a stressor with tata. Us about the other units of your business. You have big pay, restaurants, are those types of segments doing better . Tony cargo business is very. Trong obviously apart from humanitarian, you and we are demand doing things we have never done before, partnering with Many Airlines. Additional business is doing well. That is the shining light at the moment. And [indiscernible] beauty is, we dont burn a lot of cash. We are growing it slowly but steadily. A gives us a chance to catch up. We are doing very well. Our ecommerce platform, we are coming out with a campaign called save our shops to allah retailers who never had a chance to sell online to come online on airasia. Com. Yvonne tony, always great to have you. Usy fernandes joining exclusively. Coming up, how stimulus could affect you. Develop market stimulus. How it could make things worse when it comes to emerging markets. This is bloomberg. Fromnda the x it is emergingmarket economies left many in a catch22 position. Measures developed, countries are deploying could make things worse for emerging markets. Our reporter has more. What special challenges are emerging markets facing and how does that compare to the previous crisis . Do,s sort of damned if you damned if you dont. On the monetary side they are trying to cut Interest Rates to stabilize the economy and the financial system. When the rates are lower than inflation, investors are going to look elsewhere. They are not keen on this sort of negative rate. On the fiscal side, we have seen a lot of them rollout big stimulus packages that are there are calls for coordination across fiscal stimulus but too much of that can mean ratings downgrades and calls for international help. Like the imf, more than 80 countries asked for help from the imf. They are in a situation where it is spurring a lot of outflow. You asked how it is similar and different from prior crises, the data we are looking at is phenomenal. From the institute for international finance, there has already been 92. 5 billion of outflow in the first 70 days of the virus crisis. That is far outpacing the less than 25 billion in both the Asian Financial crisis and the Global Financial crisis, and the , or thentrum episode taper tantrum episode and chinas devaluation after sewed and Asian Financial crisis episode and chinas financial crisis. It is underlining the pain they are feeling. Problemsys have these and they are at the behest of Foreign Investors that are willing to drive out that money because they dont have the areidence that these ems going to sell to the crisis like dms would. Haslinda how do you think these economies will deal in the months ahead . I think they will have to take because there are no good options but they will have to take the road of pumping more stimulus in, cutting rates, doing what they can on the central banking side. After the Asian Financial crisis, many of these countries where seeming to learn the lessons. They built up their foreign reserves, thailand among them having very flush foreign reserves they can tap into. It is a matter of figuring out how to do that, reach deep into the toolbox and pump out the liquidity. For other economies, they dont have as much as in foreign reserves but they are looking at different ways on the Monetary Policy side and continuing to pump the fiscal stimulus. Indonesia increased its deficit cap to 5. 1 as we saw earlier this week, from 3 , so that they arewilling willing to forsake the problems on the debt side in the near term to provide that stimulus that is needed. I would expect to see more of them having to take that side of it, willing to risk the possibility of ratings downgrades to kind of stabilize the economy in the nearterm when theres so much uncertainty and many calls for help. Haslinda thank you. Come, we hear exclusively from the ceo of the worlds biggest chipmaker. Consumer demand is returning in china. More is next. This is bloomberg. Haslinda a check of the latest business flash headlines, airbnb is said to have talked to investors about a convertible note to help navigate the coronavirus. It is considering a potential debt issue and various options for the pandemic over the size and terms of such a plan arent clear. They could expand existing capacity to raise funds. It has 2 billion in cash and a credit line worth 1 billion. We work is said to be talking to another company about cutting rent demands as the pandemic hits demand for space. The ceo talked to we work past biggest Property Owners about how revenue new revenue the new new revenue agreements. We work had 47 billion of liability. New york state has had its Credit Outlook lowered the negative because lowered to negative because of what moodys says is a substantial impact of coronavirus. They may it may strain their ability to balance the budget. The negative outlook indicates ratings may go up. Malaysias new Prime Minister has been appointed to lead the countrys wealth fund. He takes over as chairman immediately. The old leader resigned as Prime Minister last month. The finance minister has been appointed to the board. The portfolio is worth 46 billion u. S. Dollars. Yvonne taking a look at your markets, a down day when it comes to asiapacific. Some exceptions like the kospi turning positive, up more than 1 there. Most of the time we are seeing risk off across the board with the philippines now and australia seeing 2 drops on those benchmarks. U. S. Uterus punching higher by futuresthere u. S. Hunting higher by 1. 5 but the jobless claims number later today will be key. The forecasts are all over the place, everywhere from 800,000 to 6. 5 million so it goes to show it is a crapshoot. We are seeing this up more than 5 . In terms of the sectors, the energy is benefiting from the brent crude recovery. Communications are slightly up but for the most part, all other sectors in the red. More from the world of banking, dont miss our at 9 30w with a ceo a. M. In london and 4 30 p. M. In hong kong. More to come. This is bloomberg. Nowadays you do more from home than ever before. The xfinity my account app puts you in control with Digital Tools to give you the help you need when you need it. Get fast and easy answers with personalized help 24 hours a day, 7 days a week. Change your wifi password to a phrase thats easy to remember. Even troubleshoot your services on your own. Were working to make things a little easier for everyone. Download the xfinity my account app today. Accused ofna is faking data on the infection. U. S. Intelligence says beijing deliberately underplayed the number of cases and deaths. Haslinda chinas top airline struck a bullish mood. The big three said their confidence they are confident of a postpandemic recovery. Yvonne restrictions to control the virus are wreaking havoc in macau. Jpmorgan says gaming revenue could drop to near zero as gamblers stay away. This is Bloomberg Markets asia. Haslinda it is a most 11 00 in singapore. Im haslinda amin. Vonne im yvonne man we are entering the last hour of the morning session in hong kong and seems like when it comes to the markets, april, not looking better than the first quarter. Haslinda you are right. The expectations that the worst has yet to come. We heard from bernstein, goldman saying we havent hit the low. Sentiment remains fragile at this point. Where china is right now, it is up 0. 2 . Early china data showing signs of recovery. Pmi numbers suggesting manufacturing still back to expansionary mode. Major economies may provide some kind of support. 0. 8 , 0. 3 , banks getting a hit as investors expect they will be getting dividends and no buybacks expected as well. The kospi up by about 1 , led by samsung. [indiscernible] 16 , most in 18 weeks. We are seeing a surge in volume. Lets take a look at how Southeast Asian stocks are doing. Indonesia in particular seeing some kind of strength. It is pretty flat but we saw it in some kind of strength earlier. We heard from the government raising the budget deficit cap 5 from 3 , what investors have been looking for. It is seeing strength but it is down about 15 since december, only 4 of hitting its record low in 1998. The level we are watching a 17,000 and the worst case scenario, the government said it could go down as much as 20,000. T up by up the s almost 1 . Funds have been avoided avoiding thai stocks. The thai baht has become a huge worry for thailand. It is mixed. Taking a look at u. S. Futures, that is punching higher but we saw 4 drops on all three major benchmarks yesterday. A ways to go when it comes to any kind of recovery. The 10 year, 59 basis points now but we had seen treasuries rally. Watching the aussie bond yield, seems like traders are being confused by the rba qe announcements because they announced a smaller amount of bond purchases so we saw yields ticking higher in australia. The yen, money coming off the yen but it is the dollar story, the dollar remains king against much of asia. Old seeing safety into bullion gold seeing safety on bullion on. Watching the likes of crude, still seeing gains close to 6 . A meeting the President Trump will have with oil execs to try to fix the industry is pointing to positive mood music when it comes to crude. We are seeing some weakness in the korean won. The renminbi easing off lows but we hit 714 against the dollar. The euro continuing to get hit after uglydata data when it came to the italy pmis which we saw a pretty ugly print. The u. S. Intelligence community accused china of concealing the extent of the coronavirus outbreak, according to three u. S. Officials, setting a new classified report. This is from hong kong. Steve, what do we know . We know according to the three u. S. Office of officials who didnt want to be identified, they say the new classified report to the white house basically surmises that china concealed the extent of the outbreak, under reporting cases and the death toll. Of the three Officials Say the report concluded that chinas numbers they reported are essentially fake. China reported some 82,361 cases, 3312 deaths but the u. S. , italy and spain combined now have five times more reported cases than what china reported and eight times more deaths. This comes as we are getting news from previously hardhit province one in hunan to the north of hubei. It is said to be under lockdown again. 640,000 residents, the local media says a citizen had tested positive and subsequently we have learned three doctors in the area tested positive. Haslinda talk to us about the situation in the u. S. President trump suggested flights out of new york might be restricted. That is one thing donald trump has suggested, considering restricting flights from cities that are hardest hit and that would of course be new york city, perhaps miami. The president was also very wary of imposing these restrictions on an industry that has been perhaps one of the hardest hit throughout the coronavirus outbreak. Speaking of new york and new jersey, the current epicenter, they are seeing deaths that have doubled in the past three days. New york has more confirmed cases, the state, then anyone anywhere else in the u. S. 83,948 cases, more than china reported for the whole country. New york city, more than 47,000 cases and deaths in new york city topping 1100. One in five hospitals in the nation, this is interesting, are under 44 years of age so that is puzzling epidemiologists. U. S. E it is not just the out of south and Southeast Asia, the numbers are not encouraging. Is the outbreak picking up pace there . That has been the big that has been the big concern, that countries like indonesia and india that have under tested or underreported or havent necessarily might be skipped by the first couple waves, india seeing 601 new confirmed cases, india indonesia 149, the philippines 220 seven. We are talking in the last 24 hours. In ninee 1377 new cases Southeast Asia and locations in the last 2448 hours. Haslinda steve, thank you. First word headlines from new york. Itstaly is extending sweeping virus lockdown for another two weeks as reported deaths from the infection slow. Restaurants, bars and public venues are closed, all nonessential Economic Activity stopped an internal movement is restricted. 720 seven new fatalities have been reported in the last day, the lowest number in six days you total cases are more than 110,000. Is slashing growth forecasts by more than half as the virus undermines Southeast Asias biggest economy. Growth is estimated at 2. 3 percent this year compared to initial projections of 5. 3 . The finance minister says in worst case scenario, the economy 0. 4 thisract by year. In india, they are stepping up measures to tackle the infection. The r. B. I. Is introducing relief for exporters and allowing states to borrow more to shore up finances. The pandemic has stalled business and triggered a nationwide luck down and the imf has declared a recession lockdown and the imf has declared a recession. India may be the next hotspot. Oil website after news President Trump intends to meet with Top Producers. The potential talks between russia, afternd white house diplomatic efforts to broker a solution to the price war. Moscow says it has no firm plans to speak to opecs leading member. Oil is reeling from its worst quarter ever as producers flood the market. China is considering lowering subsidies for electric vehicles as it commits to extending the program for another two years three in the state council says rebates for can will continue until 2022 as the coronavirus hits demand for all cars. Various Government Agencies are discussing whether to cut incentives by 10 this year. The range of cars covered by the subsidies may also be narrowed. Global news 24 hours a day come on air and on quick take by bloomberg, powered by more than 27 hundred journalists and analysts in more than 120 countries. This is bloomberg. Yvonne thanks. Still ahead, as india deals with the consequences of the virus lockdown, we speak to the official voice of the countrys telco industry and ask what is helping them stay up and running. He rupiah, not doing a lot we were just talking about how they slashed the growth forecast but the rupiah, very much out there. Haslinda just ahead, we speak a fund manager who expects stock markets to see more deep losses before any hope of a recovery. A ceo is up next. That is next. This is bloomberg. Yvonne some lines crossing him a terminal about abu dhabi commercial banks saying their is 981 to nmc Health Million on the back of reports we have been saying on how they as thered lazard companys financial troubles mount. The Boutique Bank will help recover some of those funds the to aowned lender provided struggling hospital operator and the Financial Services firm. That is according to people we have been talking to. We know the dollar amount, 981 million. It was thought the exposure would be up to 1 billion so close to the estimates. Investors continuing to gauge impact of coronavirus on markets companies dividends and earnings downgrades are expected. Joining us is generally jenna lee of aim. Thanks for joining us. Investing, the usually work that are during bull markets. How are you adjusting the algorithms given the volatility . Jenna we are not doing anything different than what we are very well aware. What we are doing is, we dissect the market cycle into four different parts and we knew from 2018 we were entering a lower market environment. We adjusted our Portfolio Allocation strategy three years 6,ore and now, as of march we sent a signal indicating we are entering the first days of recession. Our equityring exposure in our portfolios, and we would like to have our clients positioned to weather which we expect to last between six months to one year. Yvonne what are your retail clients and south korea asking are they asking about Cash Holdings, the extent of this coronavirus deck of what are the key questions you have to answer . Jenna what is funny is, we have been holding about 2 in the portfolio starting last year. They used to complain, why are we holding so much cash . Now they understand. Less complaint on the Cash Holdings but now, they are theng to understand different parts of the market cycle. They are asking how long will knowlast and how will we that this is not the worst that we are seeing . I am honest. Yes . I wanted to bring a headline to viewers, moodys cutting its chinese Banking System outlook to negative. Moodys cutting the chinese Banking System outlook to negative. The followup, speaking of your clients, have you seen a lot of redemption . Give us a sense of the mood among them. People have a full sense of what they are getting into before things happen. You spend a lot of time educating clients. Very little exodus of money going out. We are receiving 70 more inflow because it is an all weather portfolio. Outside of that, what is funny in korea is, people are actually learning lessons. We believed they learned lessons from 2008, meaning they think the market will recover at the end of the year and they are pouring money into the fundamental assets that represent korea, like samsung and hyundai. They are opening up new brokerage accounts, 20,000 new accounts on a daily basis now. It is an equity craze. Regardless of the shortterm outlook, people are thinking long term they may be thinking too long of a term without we are just seeing the beginning of the recession. My hope is that people stay longterm believers of the market as they set out to be and they will be fine at the end of , which tends to last a year or two, but before they see the peak to peak recovery, it will be a trying time. Haslinda we talk about how it is pretty much recessionary. In terms of sectors and countries, what would be the best bet right now . Onna right now, it depends the Asset Classes are going after and knowing the characteristics of each asset class. If you are going after marketstion, developed and currencies will fare better. When it comes to equities, equities are in your portfolio for growth. They are a growth prospect. You probably wont see much growth for the next six months in any region. Equityce is diversify holdings as much as you can and also, you dont have to throw away everything. You are bound to see recovery, and you need to have your foot in the water. Jenna, when it comes to fixed income you prefer u. S. Treasuries. Is this the assumption that to zeroould had had given what we are seeing with germany and japan and the u. S. Seeing that type of japanification, or we are talking about the fiscal stimulus. Will have to find a way to fund that. We will see a surgeons of, in the end a resurgence of, in the end, yields will have to spike higher . ] jenna it could happen. The reason i am a proponent of treasuries is not because of the best shortterm yield difference is but in an extreme case it will preserve your portfolio value. That is still fireball. Viable. Never mind the shortterm volatility. In the end you are holding that asset for the extreme scenario. Haslinda thank you so much for that. Jenna lee. Er and ceo the lights are on in macau that no one is home. The higher project dire projections. This is bloomberg. Haslinda a check of the latest business flash headlines, we work is said to be talking to landlords about cutting rent demands as the pandemic hits demand for space. The ceo has talked to we works biggest Property Owners about new revenue agreements, however sources say landlords are reluctant to agree to a new relationship. We work had 47 billion. Qualcomm says it is seeing the return of chip demand in china. The ceo says the market is improving as activity on the mainland grows after weeks of virusled shutdown of the industry. Comments mure are those of other executives who say demand in china is climbing to previous levels. The tech supply chain has remained fairly strong during the crisis. The acting ceo to the job fulltime as he six to restore the banks better reputation after Money Laundering scandals. He is a 25 year veteran and in novemberim boss after the resignation of the previous ceo. The chairman says management essential in a time of global stress. Moodys has changed its outlook on 12 aipac Banking Systems including the likes of china to negative. David ingles has the story in hong kong. We broke the story a couple minutes ago. Tell us more. David im holding a statement took a whiled it for moodys tacoma with this because as you mentioned, it is allencompassing. We are looking at the entire region. Before i get into the list, japan and hong kong, which are part of the report, are already under negative watch. They are including everyone. Australia, china, india, in the malaysia,ia, korea, new zealand, philippines, singapore, taiwan, thailand and vietnam. Governments have been putting support measures but dont expect those measures to be sufficient to offset the impact from what is going on with coronavirus, the downturn it will have on banks. This extends beyond the first half of this year, the Credit Impact could be significant. In terms of the sectors, hotel and restaurants, airlines, automotive could be the most severely hit. If you take the list and look at the second list, which ones really have the most exposure to those sectors. Expected, but that news. Bad news. Make matters worse, this is not just banks, it is casinos in macau where the latest gaming revenue numbers plummet again. Where can we expect a recovery . Is saying april might be worse than march if they dont open the border to guangdong, which is 30 of the tourism. In the event the borders a restricted are restricted, we will see. Everyone is suffering. David, thank you. Lets get to hear china markets for the lunch break. Seems like they are holding on to some gains, little better than the rest of the region. The csi 300 about 0. 4 , shenzhen looking better with the china the chinex seeing gains. 0. 1 ,g kong, down about we have come back a bit during the asian session. The renminbi as well, little weakness but we are gaining back that loss right now. We are pretty much flat for the currency at the moment. Things are looking a little better on the mainland side but we are watching the topix and nikkei seeing losses close to 1 . We will get you to the rest of these markets, Southeast Asia looking more under pressure. Vietnam, taiwan and india, all three closed for holidays today. This is bloomberg. 11 30 it is a most almost 11 30, in the middle of the trading day. A day when most asian stocks are down on the back of uncertainty about how the spread of coronavirus is doing. 0. 8 , singapore reporting its first coronavirus death, 1000fourth cases. It continues to escalate in the lion city despite measures in place. This just in, the government world fund 90 retailer caused to use ecommerce. The government tried to use this to encourage more companies to adopt technology. Lets get the first word headlines with Karina Mitchell in new york. U. S. Intelligence is accusing china of concealing the true extent of the coronavirus outbreak, under reporting total cases and deaths. We are told public statements about the infection have been intentionally incomplete and the numbers are fall false. Beijing changed its reporting and added 130 extra cases in the first day. The u. S. Is taking as many as 100,000 military style body bags as authorities warned coronavirus deaths across the country may soar in the coming weeks. The pentagon may draw the bags from its stock file with the Trump Administration saying as many as 200,000 people may die. The next 30 days are critical for the u. S. , as coronavirus cases continue to rise around the world. To fickle days are ahead for our nation. We will have a couple weeks, starting pretty much now but especially a few days from now, that will be horrific. Unemployment at u. S. Orderses contracted on employment at u. S. Factories contracted at the quickest pace ever. Fell to itsnt index weakest since may of the same year. The readings reported a record monthly manufacturing decline from fed officials in dallas, new york, philadelphia and kansas city. In japan slumped in the year ending in march with demand hit by octobers tax hike and the coronavirus pandemic. Toyota, nissan and other manufacturers sold 5 million vehicles in the 12 month period with sales falling more than 5 . They have been suspending production and demand is plummeting. Global news 24 hours a day come on air and on quick take by than 120, in more countries. Im Karina Mitchell. This is bloomberg. Lets take a look at the markets, jack japanese markets coming online. Quite a bit of pressure in tokyo today. Taking a look at the nikkei 225, 52 stocks up, 170 down, three are unchanged. We are coming off the lows of the session so we are down by 0. 5 . The kospi remains resilient, samsung pushing that higher, up 1. 3 . Southeast asia, still not out of the woods yet. 2. 5 lower when it comes to the pcomp. Looking ahead to other markets as well but india is closed. Taking a look at qualcomm, it is seeing the return of consumer demand in china amid the coronavirus. The ceo spoke to Bloomberg Technology about the impact of the pandemic. If i look at demand, i think really byas been hit the impact to the consumer while the virus has been peeking in them in individual countries. It has probably worked its way west, meaning in china, you have seen an improvement in terms of demand and you have seen the activation of phones, for example. Everybody is trying to put their arms around how western europe and the u. S. Are going to deal with this. In terms of the operations of the company, the operations of the supply chain, i would say the ultimate and demand for the technologies we work on, that seems to be quite robust. We have to consider how we get through the nearterm here mac in terms of period in terms of the demand but the operations of the Companies Continue to go well, even given the difficulties of this environment. There is a lot of uncertainty, but you have to be doing the math and looking forward and preparing for the worst case scenario. What is your operating assumption about how much worse it gets for the overall economy, which is often an indication of demand in general . Say if you use china as a guide, it took about five weeks for their handset activations to resume to a more normal level. I dont think anyone thinks the issue worldwide is going to be any less severe than what we saw in china. I think what happens with companies, particularly Big Tech Companies and we are in this category, we are focused on making sure we are positioned theseoming out of situations. If you look at the technology, like 5g or the smartphones people are using to get by during this environment, we know those are going to continue to be important to people. We know that maybe even more so, given what the usage patterns we have seen. We want to make sure we are prepared to take advantage of what we think will be a pretty significant uptick on the backside of the situation. I think there is probably less work trying to figure out how long it is going to be, at least right now, and more to make sure you are your organization continues to be strong during the down take in terms of demand. To add we can continue people in the areas we are driving 5g and that will continue we think through any length of time we envision in terms of the length of this situation. But we are probably in a different situation than perhaps other companies because we know the technologies we are working on will continue to be important as we come out of this. My nextreempted question but i want you to dig deeper in terms of what your operations are looking like in the midst of the locked down. How much of the company is operating as compared to normal . We went to work from home and essential personnel a little over two weeks ago and we are going to extend that we did that worldwide. We will extend that in the United States until the end of april, consistent with the guidance the president gave a few days ago. , there is different guidance given from the local government and we are in compliance with that. What has happened is, even given the fact that the majority of our the vast majority of our company is working from home, we are continuing to make progress because of all of the we our labs sorumented you dont have to physically be in the labs to make progress. We dont expect, nor do we see in the near term, any indicators that would suggest anything other than, we are on track for 5g deliveries. We continue to take up new chips, bring up new chips and we continue to make progress on 5g. It is remarkable. It is a tremendous amount of bandwidth being used, delivered to homes are merely of to Software Engineers to make sure we make progress. Like every tech Company Last Week we had to figure out how to deal with the shutdown in india. We figured our way through that and most people have continued to do well. Tremendous usage of data into the home and mobile data to make sure we are successful. Qualcomms ceo some headlines, dow jones saying boeing will offer early retirement and buyouts due to the virus. It will announce the buyouts internally as soon as thursday. This is on the back of the coronavirus outbreak, which has been painful for the Airline Industry. Most airlines, cutting capacity by about 90 or so. Staying with aviation, the Aviation Industry is one of the worst hit sectors by the pandemic. Carriers massively cut back by cap on capacity and in some cases, have stopped flying altogether. Chinas airlines are striking a defiant tone. Air china reported results and say they only see it as a shortterm issue. Lets get more from Rishaad Salamat. What is their argument . If you look at air china, the most optimistic of the socalled the socalled group of big three airlines, they remain on a steady growth path with the positive longterm outlook. They are pointing to strategies the government has been employing, like the greater bay area, saying it will strengthen the demand for aviation here. Air china coming up when it came out with the earnings statement, they said they would remain strong in the long run and the market potential is huge. It is not just them. China eastern, china southern, we have seen all that. We have seen the outlook remain uncertain, but they stopped shy e forecast. It is not just them. Lowcost carriers like airasia and the ceo was on with us about an hour ago and he spelled out the longerterm picture. Yvonne its not Just Airlines feeling the pain. It is the playmakers. We broke the lines from dow jones saying boeing will offer early retirement and buyouts. How is the situation affecting boeing and airbus . One of the strangest of the twists out there, which complicated the ungrounding of the boeing 737 max, this one could be one of the strangest, the pandemic is actually keeping regulators from being in the same room at the same time. Ath Airlines Flying certainly much reduced schedule, we have the production at boeing curtailed hugely. Many of the facilities the playmaker has have been the has have been suspended. A former pilot declared he would take the max Training Course and fly the plane himself before the agency approves it. ,his other roadblock selfimposed isolation after shaking hands with a member of congress who tested positive for covid19 caused by the coronavirus. His isolation should end this week. It shows how simple actions can upend the process. What boeing has at the moment is a target to return the aircraft to service in the middle part of the year, but to do so the manufacturer will have to pull off the ultimate work from home challenge, to get the aircraft circled certified with regulators who are selfisolating on different continents. One analyst predicts the logistical hurdles that are means risk is slipping by another 13 months. Giving you an idea of what has gone on, the seattle area, an early epicenter of the virus, boeing suspended production at its plant there for two weeks. That is after one worker died and dozens fell sick. The cut me the company counted 88 cases among its workforce. On the other hand, we have chinese airlines, airasia confident about the longterm picture. Yvonne thank you, Rishaad Salamat come on the phone. We have plenty more ahead. This is bloomberg. Ceoinda bank of americas is taking an optimistic view of recovery prospects for the u. S. Economy, saying growth will bounce back quickly once the coronavirus pandemic is resolved. He told us exclusively why he thinks the u. S. Economy is in a better position than many think. As we went through january and february, we saw with our Consumer Spending money that the doubledigit rate for us is 2019, so the economy will grow faster than what people projected. In march, when he saw the situation, even with the impact in the latter half of march, we will still see Consumer Spending in march, this will be 3 trillion on the youre so not a small sample, it will be up for march. Not a lot but 2 3 , and year to date up almost double, high single digits. That is faster than last year versus the year before. He economy is on this path as you watch march play out a changed romantically. What the Federal Reserve did is stabilize the markets. Congress passed the stimulus bill as an effort to keep people employed. At bank of america, our teammates have a job it is important. Many employers are told that. We keep people employed, keep cash coming into the household and that will be terrific. Is, how touestion help small businesses. That is the program that is announced that they will implement beginning friday. The key to that is, how do we get the money out quickly on behalf of congress on and the president and the administration . They developed regulations that are coming out and they are in the process and they are starting to publish them. We ask customers to be patient. To the banker you have a lending relationship with because this kind of documentation, you work with those banks, they have millions of customers coming and we will put them into the program and it will be very good because they can pay their employees. That is the what the money will do, plus cover overhead which will be good for small businesses. We are setting up shop and activating thousands of people to be able to take the applications, a huge digital presence and i think if everybody can do it in an orderly fashion it will be good for the u. S. Economy. We are trying to live day to day, to live through this crisis. Some economists are talking demand destruction, permanent reduction in consumption because of the crisis. Is there a risk of that . How large of a risk is there . At end of the day, one thing if you think about the throughput of the u. S. Economy, with the amount of fiscal support that is coming, the amount of monetary support, if you look at economists, 25 down in the Second Quarter than working the sheer amount of dollars, 5 trillion in at 20 trillion per year is overwhelmed by the amount of support. That is geared to get us out the other side. There are no structural issues in the economy. If we medicate the Health Care Prices you will see on the other side of this a rebound and that is what economists say. As people adjusted their Second Quarter down more due to unemployment claims and what people are guessing will happen this week, there will be a deeper downdraft. Internalomists, economists believe there is a reversion on the other side back to the economy come almost back to the same size at some time next week that it was prior to this, which is a fast turnaround. It is a core belief. You are not changing anything fundamentally about the business side, what is going on. You are saying if you get by the virus, it works look at china, you are seeing the data get stronger because they are on the other side of the situation and you are seeing we are seeing i talked to commercial clients, their factories, 65 , 70 , goods coming out of china and they are seeing factories start up and some of the places most affected, you are seeing people shop. The question between us and that will be when a consumer feels comfortable going out and going to restaurants and going to shop at a store and doing things like that, that will come when the healthcare crisis is solved. There are talented people in the great Healthcare System working on that every day and when that happens, whatever time that is, you know that is when the it is a matter of how fact how fast we can get there. Yvonne that was bank of americas ceo. Coming up, subsidies for electric vehicles. China is considering trimming benefits. How this could affect tesla and volkswagen. This is bloomberg. Yvonne china is the biggest market for electric cars but it is considering a cut in rebates given to buyers and limits on the models that qualify. Any reduction in subsidies could tamper the demand for homegrown makers and foreign giants like tesla. Selina wang joins us. They extended this and now they are considering turning it back. Why . Is a complicated picture. Chinas state council said it will be extending rebates on evs until 2022 to bolster the industry, but sources say various government bodies are in discussions over reducing the incentives by 10 later this year and they may narrow the types of cars that qualify for the discounts. This is as china is committing to extending that broader costly foridy program for evs another two years. China is trying to play this balancing act to cushion the the economy while restoring normalcy to industries because before the pandemic, china had been planning to roll back all that support to the ev industry. That they want that industry to be more independent. Haslinda what insight with this have on global automakers like tesla, volkswagen that have been betting of the Chinese Market to boost sales . In benefitstion could tamper sales for those Companies Like tesla and volkswagen. They are counting on the Worlds Largest auto market to boost sales. For the domestic auto industry, it has been a difficult picture of a the past few months. Weekly car sales plunging as warning96 , and julie a top automaker warning this could be its most difficult year ever. For foreign Companies Like alla, they had just put this money to invest in the plan near shanghai which allows cars to qualify for the subsidies and favorable tax treatment. That is part of the plan to win greater market share. Tesla is getting back up to production when it comes to the virus impact now reaching a weekly production rate of three thousand cars but we have seen registration for tesla cars fall for two straight months. Any reduction in benefit could also pressure those sales. Take a look at general motors. They have a lot riding on the china market, announcing they are investing 20 million into byand self driving cars 2025. Huge investment from volkswagen, gearing for a massive global ev push this year and they are starting production of batterypowered cars at two new factories in china. A lot is riding on these companies in addition to the virus outbreak. They are dealing with these lower oil prices, which make internal Combustion Engine cars cheaper. Difficult for companies abroad and domestically. Haslinda thank you, selina wang. A quick look at the list the latest business flash headlines. New york state had its Credit Outlook lowered to negative by moodys because of the impact of the coronavirus on finances. It says the virus may eat into state reserves and strain the ability to balance the budget. Moodys confirmed the rating, citing its large and diverse economy but the negative outlook indicates ratings may be cut. , the tumbling travel demand. The australian government, bailout. To provide a a carrier asked for a 1 billion rescue package but the Financial Times reports, they would prefer a new carrier. To beers dont want settled with equity in a company that was struggling even before the crisis. Tmobile completed its takeover , creating a new wireless giant that rivals at t and verizon. The agreement was announced two years ago but has taken time to complete because of pushback from regulators. Mostlyl will be funded like corporate bonds, with tmobile saying it is preparing a 10 billion offering immediately. Yvonne take a look at markets before we go, looking to be a little better than what we saw the last couple hours. Off the lows of the session for the asian stocks but we continue to digest the negative news when it comes to the coronavirus. Lower by just close to 0. 5 . Gains, the cost be one of the leaders of the board fueled by the likes of Samsung Electronics kospi one of the leaders on the board fueled by samsung. This reflects the market development, deregulation and the investment limits especially when it comes to etfs. We see samsung rising in dominance when it comes to the etfs in the industry. Taking a look at u. S. Futures heading higher by 1. 5 , the today but expecting pmi data out of india and if there is any guide from what the aviation the asian pmis showed, it could see a hit or brent crude is elevated. That is right. That is it for Bloomberg Markets asia. Bloomberg daybreak middle east is next. Tbi staywith us with us. This is bloomberg. Stay with us. The following is a paid presentation brought to you by rare collectibles tv. Announcer John Fitzgerald kennedy served as the 35th president of the United States from 1961 to 1963. Hope,ought america strength, and the vision of a brighter future. So, mynt kennedy and fellow