Lets look at the boards. S pralia, new zealand, downgrading the outlook for australia to negative from stable. Open toand, increasing qe. Looks like they are willing to extend bond buying. The csi 300, still a little bit of pressure after the threeweek highs we reached yesterday. The nikkei, pretty much flat now. Like investors were taking this state of Emergency Declaration in stride. Saying we could be a very good chance of hitting a bottom. Watching currencies. Seeing so many go back to the yen. The rupiah just coming online. We have learned that jakarta ordered offices to close. They are also banning gatherings. The offshore renminbi still seeing a bit of weakness after we did see some strength. Yield, chinese 10 year we certainly saw the yield at 2002 lows. Tom now lets focus on the lockdown in the original epicenter of wuhan, which has been lifted. The situation is still far from normal. Complex restrictions are in place and there are fears of a second wave of infections. Darren chen is on the ground in wuhan. What is the atmosphere there . There is a lot of nervous anticipation. Theres also a lot of uncertainty. The government has continued to maintain strict restrictions on people within the city and everyones lives and movements are governed by these codes that show your temperature and you need them to go everywhere, to get on the train, the plane, to go in the shopping mall, any building or restaurant. Even though people are rushing to get out, there was a lot of fear that they wouldnt be able to board their flights or trains. We were just at the airport where there was a whole crowd of people trying to figure out how to get in, especially older people who couldnt navigate the qr codes. Security is getting overwhelmed by questions. Some people are even trying to force their way through. A lot of people wearing full protective gear. It is a mix of excitement, but also nervousness. Theres quite a bit of tension in the air. On the youve been ground since the weekend. What is your sense of how quickly Economic Activity and business is picking up . I think the main takeaway is that it is going to take a lot of time. There is a long road ahead for wuhan. It is a cautionary tale for new york, london, milan, it is not going to be the flip of a switch. People are cautious. They are cautious about getting the virus, about a second wave, about coming into contact with someone and themselves getting quarantined. People have also gotten used to keeping their distance. There is a little bit of shift in the way people interact and in the cultural sense. Gotten used tot not gathering in crowds. Even restaurants are beginning to open, but nobody is actually going inside to eat. Thattaurant owner told us even though they are lifting the lockdown, life isnt going to return to normal for some time. Yvonne you mentioned it is going to take a while for Business Activity to return back to preoutbreak levels. Most economists say they are expecting some type of contraction. It makes sense that we are hearing that perhaps policymakers are thinking of scrapping that growth target for china. There is an interesting debate and it would be politically wise of them. It is just completely unrealistic right now. Reportereconomics wrote today, it would put a lot of pressure on Government Officials, not only to boost stimulus to a point where it is unsustainable, but it might even put pressure on officials to make up numbers or meet those targets even though it doesnt reflect the real economic situation. Yvonne it seems like markets at least are pricing in that we are going to see more stimulus from governments. What exactly are they pricing in . What could still be deployed . See moreld still rate cuts. That would give local governments more ability to spend and boost the economy and infrastructure spending. There is a Consumption Campaign underway in china being led by the local governments through subsidies and stuff like that. But it is taking a long time to go through. The psychological impact of the virus is a big part of that. Afraid to still very go outside and return to work. Sharon, thank you so much for joining us. Sharon chan joining us from the ground in wuhan. Evenoronavirus marches on as some nations report and apparent slowing of cases. 1. 4 million top with 81,000 deaths. White house Economic Advisor larry kudlow telling politico that the u. S. Economy may be able to reopen. He says plans were already underway. Suffered its worst day so far with the highest rise in deaths and Prime MinisterBoris Johnson remaining in intensive care. Rose, takingities the overall total above 6000. The government says johnson is in a stable condition and is not on a ventilator. He was taken to hospital on sunday afters ending 10 days in social isolation. Italy reported the fewest new infection since march 15. Just over 3000 new cases were reported in the last 24 hours compared with 3500 a day earlier. Food and Health Care Business may reopen by the end of the month and social restrictions could be eased. Half the japanese economy is entering lockdown amid a state of emergency and rising fears of recession. The government shut down seven prefectures as coronavirus cases surged. Prime minister shinzo abe launched a stimulus package as critics say he has been too slow to respond to the pandemic. And en Bloomberg Markets asia, we will ask Credit Suisse about gains in asia. Woods,cific cio john more on that and his views, next. This is bloomberg. Asian stocks halted a twoday rally after new york state reported their worst daily death toll since the pandemic began and china lifted the lockdown of wuhan where the outbreak started. Lots to think about. Joining us on the line from hong kong is john woods. Always great to have you. A pretty choppy session today, but we were seeing signs of perhaps light at the end of the tunnel. How do you decipher that whether this is technically driven or something has fundamentally changed . Much for inviting me on. We do see some guarded optimism. The market is very much focused on the rates of change in the to thef infections and extent that these are topping viewthere is a sense of a that markets potentially have maybe two or three weeks ago. It is important to point out that we are not yet aware of the economic fallout from the coronavirus. Untilont become apparent we get the q1 and q2 gdp numbers. Is happyt very much that there is a sense the virus has topped out, but still potentially on guard. How should i be looking at earnings . The past, the future, the guidance . Big box. Like just one earnings is something of a challenge for obvious reasons. Providing banks are bridging finance to various employees and employers around the world, clearly theres going to be a profound impact of the lockdown and more broadly the corporate shutdown on earnings. In our view we are not even close yet to getting a sense of what those earnings downgrades should be. Forecasts even up to 50 . I think we are a long way away from getting a sense of clarity. While Credit Suisse has moved, and did so a couple weeks ago on the basis that the worst was behind us, nevertheless we have ventured into names such as switzerland. We have a preference for Investment Grade bonds. Risks. Accumulating broadlyn concerned more about the scope of the earlier downgrades. What do you like in the credit space at this point . The asian highyield space looks particularly attractive. Right now the market is pricing in rates around 20 . In my mind, an excessive amount of bad news is being priced in. And we still need to be focused on the underlying credit. Think you arei do being rewarded and compensated for the risks you are taking. I think we can expect a total return of between 4 and 5 . This is largely a function of spread tightening. Spreads are at levels we only seen twice in the last 20 and 30 years. Again, perhaps not as generously as the highyield. Tom to what extent is the oil story muddying the waters in this parts of the world . Is more of aurse oil price taker than giver if you will. It has been negatively impacted by lower oil prices. The rest of the region is a major importer. The last few quarters of the world, china, japan, south korea are beneficiaries of the lower oil price. Course, low oil prices demand, clearly a negative. But if oil remains at these year,of levels into next then i think it will be an unambiguous positive for the asia region. Seen a john, weve massive amount of debt issuing in the u. S. Are you seeing that in asia as well . Yes, theres a huge demand for cash in the u. S. , which is extraordinary. This has not been replicated. Leverage has been playing through the asian space over the last five years or 10 years. Remain s [inaudible] the level of issuance over the last month or so at around five or 6 billion has been quite modest. It has actually been substantially lower on a year on year basis. So we havent seen this huge dash for cash that we have in developed markets. Is itonsequence, my sense will remain reasonably well supported. Outstanding debts remains essentially stable. Market levels will remain supported. Woods, chief Investment Officer at Credit Suisse, thank you so much. Slightly cautious on equities. Will be a positive for equities in this region. Look atp, we will japans record response to the coronavirus. This is bloomberg. Tom welcome back. As many parts of japan enter their first full day under state of emergency because of the coronavirus out rick, other asian nations are taking further steps to promote social distancing. Stephen engle is tracking the developments and joins us on the line. Lets start with indonesia and india. Both have imposed lockdowns, but one is tightening the restrictions while other is considering relaxing. In these two countries, these , ass of lockdowns have president of indonesia said, they diss proportionately affect the poor. In indonesia, theres been pretty much a lockdown in the capital of jakarta and it is announcing tighter restrictions as well as the other neighboring cities around the capital. They are going to be closing offices and they are going to ban gatherings of more than five people. That is pretty tough in a city of 10. 5 million. Transport hours will be limited and people need to follow strict social distancing rules. Jakarta is the epicenter here. 221 deaths, the most in asia after china. In india, they had that nationwide lockdown for three weeks. A panel of Indian Government ministers is now advising Prime Minister modi to partially lift the nationwide lockdown. Areas of large clusters of cases would remain closed. This panel is recommending that cities can open markets on alternate days. It is a tough choice. Or basicallydown keep the lockdown in place and prevent the spread. More measureseing in hong kong as well as singapore. Hong kong extending their restrictions to april 23. Local newspapers saying schools to remain closed through may. Singapore banning gatherings of any size of those people not living together. Yvonne it is a difficult tradeoff, to help the economy or help the health of many. A bold calle had from goldman saying that we could still see a record 25 contraction this quarter due to this state of emergency. What can japan actually do under that declaration . They are doing everything they can. Many people criticized japan as being late at this, whether they felt they had it under control or because they didnt want to jeopardize the olympics. Now they have 92 deaths. Tokyo has been having a hotspot of infections. The state of emergency is being put in place in osaka, in tokyo. Also throwing the kitchen sink and Everything Else at stimulus. Intervene, shinzo abe says, or else infections could reach 80,000 a month. Japan is in a difficult situation. The economy definitely suffering even before this coronavirus. Engle there on the line from hong kong. Nissan says it is switching strategies, focusing on preserving cash and pledging to put u. S. Employees back to work when the crisis ends. The crisis has hampered demand for new cars. Nissan covered about 80 of regular pay. The company told bloomberg the virus fallout is challenging but not impossible. And number two is cash. Obviously when we have closed the plant, our dealerships are closed, we dont have revenue. We have to manage our cash. Chinese Video Streaming Company ig slumped 10 after a shortsellers report claimed it overstated revenue. They say it boosted 2019 revenue 44 , users by as much as 60 . Muddy waters also worked on the report and says they are shorting as well. Taking a look at the markets, we are pretty much flat when it comes to the digital benchmark. News, perhaps places like wuhan are lifting their restrictions, but on the other hand, the deadliest days for new york state. We are dealing with this kind of negative bad news as well that continues to weigh on sentiment. Dollar also seems to be on the stronger side. We did see it down for the last couple days. Wti on the recovery, up close to 6 . 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. In hong 10 20 9 a. M. Kong and shanghai. Im Trina Mitchell with the first word headlines. Just hours after china lifted travel restrictions in wuhan, people were heading out by road, rail and plane. The city had been in lockdown for 11 weeks with millions of people kept at home. Local media say about 65,000 residents are on the move. China announced no new daily virus deaths for the first time. Pause u. S. Rump may funding for the world health organization, attacking it stands on travel bans and saying it failed to sound alarms early enough about the virus. The president slammed it for what he called being china centric. Blanketurged against travel bans. The u. S. Is cutting its Oil Production forecast by more than a billion more than a Million Barrels a day. Alsoyears projection is being trimmed with the news coming hours ahead of expected talks between opec and its independent allies. Saudi arabia and russia won the u. S. To join any potential restrictions on output to stabilize prices. The Airline Industry is calling for a global set of virus eluded Health Measures for when travel resumes to avoid the chaos seen after the 9 11 shutdown. The group says it excepts the need for safety but offering conditions must be coordinated to return to ensure a slow 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. At marketse a look right now. A pretty mixed picture when it comes to asian equities. We reversed the three and a half percent gains. To headures continue slightly higher. Still, quite pressured as we see more of the death tolls in new york escalate and spike up here. Still spending two days of gains after we saw the state of emergency the clarity for parts of japan. We could reach the 20,000 mark for the nikkei 225. Watching nifty futures. Up some 8 . Slightly lower by one and a half percent as india opens today. Lets take a look at currencies today. The australia currencies seeing a bit of reversal. Yesterday, rba was talking about if conditions improve, they could talk about tapering again. S p cut the outlook for australia from stable to negative. Talking the rb and z about how they are willing to embark more on qe. Japanese yen, 108. 78. Lets stick to japan right now. Other osaka and five prefectures are entering the state of emergency as shinzo abe announces record stimulus of a trim you dollars of a trillion dollars. During as online from tokyo is the head of the bank of japan economics. Thank you for joining us. Lets talk about the state of emergency on the seven prefectures. It basically makes up half of the japanese economy. The government says it is not essentially a lockdown. Is it going to feel like one . I think they are right in saying this is not the kind of outright ban on movement that europen in china and now and u. S. Are experiencing. Japan toery hard for implement from a constitutional and legal perspective. Looking out my window right now, there are a lot of people out and about going to work. They have not stopped the trains. What we are seeing and well before the state of emergency was declared is a rheumatic fall in retail and restaurant and foot traffic. Most down 60 at the end of march. That is because of this increased caution by households and more people staying at home. There is certainly an impact on consumption. Anyas dramatic an impact on factoring activity as we saw in other countries. It could change behaviors of consumption. Late to at trend how does that translate to Household Spending . it is going to be a very secondquarter gdp. We were estimating a one month he can impact of the lockdown, if you want to call it, affecting the seven urban areas. We estimate the hit from that to be to be a. 5 trillion to 8. 5 trillion. The damage will be concentrated in the secondquarter numbers. Not only are we expecting a third consecutive quarter contraction but the size of the contraction we are forecasting is close to 22 annualized. That is double digits. Theill have a pickup in third quarter. Think japan is going le in it quite a ho comes to the shock. David we have this billiondollar tom we have this billiondollar package. What more is needed and where does it need to be targeted . Izumi the one problem is and this happens a lot with the japanese stimulus numbers. There is a strong incentive for the government delivers deliver some strong headlines. We have to fade the one trillion u. S. Dollar headline. Part of that includes previously budgeted stimulus amounts. There is a large part of it that is new. 10 of gdp are more in financial support. This is like allowing corporates to defer tax payments. That is pretty chunky. That is going to help corporate stay alive during the shock. Where we are disappointed is with the actual thrust of income support and other Consumer Spending stimulus for the recovery phase. When you calculate the Discretionary Spending involved, we think it is less than 2 of gdp. It is very small relative to the size to the economic downturn. It is going to have to be addressed in further stimulus packages. Tom do we expect more action from the bank of japan . Is there more they can do to expand the Balance Sheet . Do not think it is going to be accompanied by some dramatic fanfare, but under their policy framework, the bank of japan does have the ability to expel their purchase of bonds. The stimulus spending, which is going to involve a chunky extra deficit issuance, but we have been seeing so far is the bank of japan has been buying up more jgb. That trend can continue. We still think they can do negative rates, funding for lending. Support the corporate sector further. Overall, they have already done quite a bit with liquidity provision. We are hoping for fiscal 2 am company for fiscal two accompany the monetary easing. Yvonne japan has always been known for a jobs for life corporate culture. Do you think that increases the prospects of a cover . That we are not going to see the massive layoffs have seen in the u. S. And europe . That is a very interesting point. I do think that is one advantage that japan has, which is this rigid labor market the country for. Ten criticized does happen in it does help in a moment of shock like this. We are forecasting an increase in the unemployment rate, we are talking about going from 2. 4 to 3. 4 . We saw this during the Global Financial crisis or the adjustment in the labor market and wages in hours and not headcount. Assuming this is a shortlived not result in a severed relationship between corporate and employees. That may facilitate the recovery. , there is ad states bigger challenge. Say this could potentially be a v shaped recovery, a w, is it a nike solution . When do you think the economy can get back to the preconsumption rate levels . Izumi the alphabet soup of trajectory of recovery levels is confusing. I prefer to look at, when do we return to the prekoba stock level . Even before the covid shock, we were talking about predepressed levels of consumption. It is going to take a long time. We think it will not be until the second half of 2022 when gdp 2021 when gdp returns to precovid levels. It is going to take even longer for consumption. To return to the pretax hike level, it is going to be 2020 two for gdp in 2023 for consumption in our effort in our estimates. Tom a long road ahead. Thank you very much. Economics. Rica head coming, indian stocks posted their best session and 11 years on tuesday. Will the rally last . It does not look like it. We will look at that story next. This is bloomberg. Yvonne a quick check of the latest headlines. Japanese utilities are being ordered to check for any impropriety in their workorders following a scandal at, psy electric. At, psy electric. Ministers also want utilities to check for other potential problems in compliance and governance. Two independent directors at struggling Office Sharing start up we work are suing softbank for abandoning a bailout deal. Softbank was to have bought 3 billion of shares. Adam neumann dropped the idea in midmarch. A closing deadline for the sale past last way. A listing will boost the value of the companys most famous label. It could go public in australia by the end of next year. Sells atypically aussied bottles 8000 dollars a bottle. 8000 tom now, investor Michael Berry who successfully bet against Mortgage Securities before the 2008 financial crisis has spoken out against the pandemic responds in controversial tweet. The tweet is this. He says, if covid19 testing were universal, the fatality rate would be less than 0. 2 . This is no justification for sweeping Government Policies lacking any and all nuance that destroy the lives of jobs, businesses of the other 99. 8 . That is from Michael Berry. This debate seems to be happening at the white house. You see officials discussing how quickly they want to open up the economy. He is saying minorities and the poorest in society are being hurt by this lockdown. What he is talking about, testing being universal, that is a crucial weakness in the u. S. Response because they have not been able to ramp up testing as many would have liked. Yvonne he goes to some who had said before these lockdowns create more of a hit to the economy than the virus itself. He seems to be echoing that despite the fact we see the pandemic starting to see signs of a cresting, but the numbers are quite alarming. ,hen you talk to Michael Burry you want to hear more about his investments. He was a little more refrained. He had a sniffing and bearish market bet that is working out right now. Not sure what that is, that he is saying in terms of where this goes, we are wearing a little too much. That is up for debate at this point. Lets take a look at india. A panel of the government ministers is said to have advised Prime Minister modi to partially lift the lockdown imposed on the 25th of march. The recommendation comes as equity markets posted their best day in almost 11 years. Us about what sparked this massive 9 gain. Can we expect similar moves . This is just like a oneoff session i would say because we have the cruelest march ever for indian stocks. Bowing ght the problem is pretty much real for india right now. People the 1. 3 billion under the biggest lockdown. Want the virus to not spread into the community. If you look at the nifty contract, we see 1. 8 down. That was a oneoff session. The problem focus to we switch our the bond market, the r. B. I. Has cut. Bond yields are highly. What is going on . Concernarket renewed because of the disruption. States are also borrowing from the market, 8. 96 these levels are at 7. 3. You can see that people are of fiscalthe role stimulus. We are expecting more to come from the government. Why the reason despite 75 basis points. Anxiety among see dealers. On the health care space, what is happening with i pca laboratories . India partially lifted the ban on that antimalaria drug. What effect will have that will that have on the economy . It is one of the largest producers of hydroxychloroquine, which donald trump has been asking india to supply. We have learned that india has partially lifted the export ban. At their first look requirement and then start exporting the drug. There are a lot of other countries also that are asking india to supply this drug. It will be considering everything on a case by case basis. That will that is where we stand. Yvonne thank you. Us equities reporter joining from mumbai on what to expect. Coming up, is the worst still to come for emerging markets . Alexander fromom Johns Hopkins about where the economic strain is being felt the hardest. This is bloomberg. Tom welcome back. Pandemic hasus pushed other emerging markets to the brink of economic crisis. Professor as school lessandro rebucci told us the extent of the damage is unprecedented. Are very close. Emerging markets have been hit hard by the initial phase of the crisis. We have seen massive outflow of capital. The epidemic is just picking up in emerging markets. It lasts for about four months. The peak is for two months. Emerging markets are much less capable of absorbing the health of the crisis. They will be put under extreme strain. We will expect to see unprecedented decline in Economic Activity and widespread financial damages. You are a World Authority in real estate. It is not something we can touch. Leverage within the Global Real Estate system . Are they exposed as other Asset Classes were exposed in 1998 . Alessandro at the global levels in the real estate, it is not as diffused as in the united states. Markets, in emerging real estate purchases take place on a cash basis. From that perspective, leverage in real estate is not necessarily the most important problem. Shows that impact in individual communities affected by pandemics can be extremely longlasting. Certain segments in emerging markets can be particularly damaged. Kai talk a little bit about what is happening here in europe . Italy find itself in a difficult situation. Its economy already burdened with a huge amount of debt. It is likely to take on significantly more. What is your perception of the economic trajectory of italy and whether or not the debt is sustainable . In aandro italy is particularly difficult situation because it was already experiencing difficulty to recover from the Global Financial crisis. It never recovered from the Global Financial crisis. Growth was permanently hit by that shock. Catastrophe could be extremely damaging. Help is definitely is desperately needed from the european community. Ideally from the rest of the international community. There is a lot of talk about. Ptions for Financial Rescue i think it is the time to consider emergency help from international and financial institutions. The International Monetary fund helps other economies during the financial crisis. Yvonne Johns Hopkins professor rebucci. O take a look at markets. We are taking a look at a risk off session. We thought we were going to halt this two day rally. We continue to be flat when it comes to equities. We are seeing mostly lower here. The hang seng down to hundred two point. We just learned the social distancing measures are going to be extended into april 23. The closing of beauty parlors, massage places as well. Taipei is the exception. U. S. Futures are pretty much flat. The nifty, we could be seeing a down day after that massive rarely. Singapore seems to be taking it the most. Jakarta orders offices to close. Singapore issuing 7000 warnings a day on social distancing. Antnam, the market opened up hour ago. Currencies as well. The dollar stronger during the Asian Session at likes of the aussie dollar taking it on the chin on that downgrade. An outlook from s p from stable to negative. We will have plenty more coming up. Tom great guests lined up for the rest of the next few hours. We are going to be discussing the dividend tobacco with Asset Management. The outlook for the Indian Nation economy with the former finance minister. Indian telcos. Plenty more great interviews to dig into. Stay with us. This is bloomberg. Yvonne it is almost 11 00 in the lion city. Im yvonne man. We are entering the last hour of the wind session in hong kong. Wuhan aste to leave china lifts 11 weeks of lockdowns. Restrictions changed the lives of millions. The infection of marches on elsewhere with the u. K. New york state reporting their deadliest day yet plans are underway to reopen the u. S. Economy. Hsbcs decision to scrap dividends. We hear from stuart Asset Management. This is Bloomberg Markets asia. A check on the markets. Asia mostly lower. It may be premature to say australia leading the pack lower. Weakness in the aussie dollar. The s p cut. Australias outlook to negative from stable. Some economists forecasting 12 unemployment in the country from 5 in february. The government set for a record 80 billion jobs cared the asx down seven tens of 1 . Korea, down a tad. The nikkei 225 coming off its best in two weeks. Japans a sense that stocks have bottom. Have bottomed. The nikkei up by a have a percent. Qe stocks lacking direction. A rapidly evolving situation the rbnz a rapidly evolving situation. Announcing a program. It is how much bonds taken by without distorting the markets. Take a look at the currencies right now. Dollar regaining some strength as investors look for some kind of protection. For 20. Ah at 16 foreign reserves to support the currency in march. That is the biggest monthly drawdown in reserves since september. Fundamentallyis undervalued. Expect the currency to get to 15,000 by the end of the year. Ruby at 16,431. Consumer prices fell in march. Investors have been spooked. Is bracing for a big hit. The bestperforming thing currency and other world to the worst. Saw theand of course we fx rose in china as well. Perhaps reflecting the stronger dollar effect. Taking a look at india markets, we had the stellar session yesterday. The best day since 2009. They were joining in on this global rally that perhaps the signs of winning in this pandemic. Keep in mind the infection curve in india has not flattened yet. Down futures in singapore one and three quarters of a percent. Last trade at 7563. To india yields continue spike up despite. These cuts from the r. B. I. A lot of jitters in the bond markets given that trading activity and the hours have been shortened under this lockdown. Lets get to the first word news. The coronavirus marches on even as some nations report an apparent slowing of cases. New york state reported its deadliest day yet as global cases top 1. 4 million. What house Economic Advisor larry kudlow is sounding an optimistic note telling politico the u. S. Economy may need baby able to reopen in may be able to reopen in a month or so. U. K. Suffered its worst day so far. Prime minister orest johnson remaining in intensive care. 24 hour fatalities rose, taking the overall total above 6000. The governor says the government says johnson is in stable condition, does not have pneumonia and is not on a ventilator. He was taken to hospital sunday after spending 10 days in isolation. Italy reported the fewest new virus infections send march 14. Cases were000 new recorded in the last 24 hours compared to 3500 a day earlier. Food and Health Care Businesses may reopen by the middle of them arent middle of the month. Isf the japanese economy entering lockdown amid a state of emergency and rising fears of recession. The government set down the government shut down seven prefectures. Prime minister shinzo abe and as a stimulus package worth close to a trillion dollars as critics say he has been too slow to respond to the pandemic. 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. Haslinda thank you so much for that. It iscoming out to say planning to cut pay by as much as 30 starting monday. Company. Not the only Companies Across the world including singapore planning to cut pay on the back of the coronavirus. Tesla nearing its debut of longerrange china made model. Lockdown in the original virus epicenter of wuhan has been lifted after more than two months. The situation is far from normal. Complex restrictions are in place. There are fears of a second wave of infections. Our beijing chief is in wuhan. You have been in the city since saturday. How have things been looking on the ground . Things are very slowly coming back to life. People some people are being allowed out of their housing compounds. Have the lockdown being lifted today. There has been a lot of excitement, nervous excitement in the air. People finally getting to get on a plane or a train and being reunited with her family. People are being extremely cautious. Every Single Person is wearing a mask. Some people are completely suited up to travel. There is a risk of meeting with people from outside wuhan. Become a codes have way of life. They basically compile information on where you have been and your health. Everyone is really careful because you are coming into contact with someone who tested positive or exhibited symptoms means you can lose the green code and end up quarantined at home again. Yvonne it seems like we are far away from back to normal in wuhan. What restrictions are still in place in the city . Given the risk of a second infection, a second wave of infections, the government has said housing compounds should maintain restrictions on who can leave and enter. Within wuhan, there are still restrictions on everyday life. You need to be able to prove you have the green code to get into any building like a shopping mall, a restaurant, any of the public transport stations. There are still a lot of restrictions on where people can go. Yvonne there is a lot of debate on chinas growth target whether it should be lowered or scrapped altogether. What are you hearing . Is interesting to see the debate spilling out into the public among a lot of government affiliated economist and wellrespected academics. It is politically smart of the government to consider scrapping the growth target, setting it around 6 would be unrealistic given the massive economic lockdown we have had. The shutdown has affected every section of the economy. Any indication, it is going to be a long journey. Setting a target as high as 6 is going to require a lot more government washe prepared to employ. The longterm effects may outweigh the benefit of the shortterm boost. Thank you so much for that. Our beijing bureau chief reporting from wuhan, the epicenter of the outbreak now emerging from a lockdown. Plenty more to come on Bloomberg Markets asia. Indonesias former finance minister tells us why he is not happy with the governments stimulus package. Find out why he is calling for extra ordinary measures beyond fiscal stimulus and monetary policy. We have minority shareholders in hsbc banning to forcein an attempt dividend payouts. We speak to the Asset Management possible asset manager responsible. This is bloomberg. Scrap hsbcs decision to dividends created an uproar among Retail Investors in hong kong who have banded together to reverse the decision. As on ther joins phone from hong kong. Thank you for joining us. Lets get an update on the response you are getting from investors in terms of the number of investors you have contacted the number of shares of hsbc they own. Are you confident youre going to get the 5 needed to call for an agm . Simon yes. We are still on the way. Approximately about 2 on the way. Scheduled around 2000 to 30,000 individual lenders including institutional ones. Way. E still on the yvonne ok. Still on the way. They key as stated hsbc has stated they canceled their payments at the direct request of u. K. Regulators. Other u. K. Banks followthrough. Have heard e. U. Regulators do the same. Do you feel like this is going to be a difficult fight for you . You are asking for something that is difficult to achieve . Simon it will be a very difficult situation for us to fight for that. At the Current Situation because the potential, the dividend after this is a case where we are fighting on. Haslinda we have activist investor david webb saying on your facebook that hsbc is making moves within its legal capacity and investors have a choice of selling some of the shares to raise cash. Do you agree with that view . Simon basically, yes. It is legally forcible. , the minority shareholders especially those that are elderly or those going to be retiring soon, they basically did not have very much. It is technically feasible in terms of the Dividend Distribution cancellation. It is enforceable. Emotionally speaking, it is hard who have the investors such a notification from the management to suffer the dividend without any other action plan such as dividend squeeze or shares in the form of dividends. Haslinda do you see a role the government can play . Is there anything the government can help with . Simon yes. I think the Government Official some rulesto set up or regulations or some other extra measures in order to. Egulate they have to regulate the agement not to use [indiscernible] influence so that they got the wrong message of dividend is going to be on the way as they expect [indiscernible] i think this is one of the regulation loopholes. It might be the regulator has to put the effort in to try to make it clear to the investor. It is actually quite technical to the Retail Investor from their point of view. It rate is ass bigger question about, where to find that kind of yield given the situation with hsbc is still uncertain. What are you telling your Retail Investors . Are the other places they can search for for stable income now . Simon this is a really good question, especially in the Global Environment of very low rates. We are still trying to advise our clients to put their eyes on the ig for those Retail Investors. Step they have to try to to the retail side of the ig phones. The one of oning to put their focus phones instead of the equities. The decline in hong kong is medically is mostly focused on the phone market. It might be the Hong Kong Government has to do more work on the phone Market Development especially in hong kong for the Retail Investors. This dispute you are seeing between Retail Investors and hsbc, do think hsbcs headquarters could ever do you think hsbcs headquarters could return to asia . Simon to return to asia, we understand they have a diverse point of view. Hsbc, most of the revenue, especially in hong kong. I think many Retail Investors will also think they have to move back to hong kong especially when theyre mostly coming from hong kong. For the Institutional Investors side, i understand it is quite difficult because it might [indiscernible] this point of view, gatheron the way to around 5 . Movementhis is not a not a moment to talk about whether it has a good point to move back to hong kong. Go,inda before we let you if you are going along, would you be buying gold . Qe we are seeing across the world. Because at this moment, especially during a vast majority of the Central Banks are calling for programs. Differentrrently, markets are having a [indiscernible] the qe on theng way. I think our long goal is one of in longer Term Investment terms of the over panic sentiment right now. Yvonne thank you so much for that. He is representing investors wanting the dividend from hsbc. Still to come, the United Kingdom and new york state see the biggest single day death toll since the pandemic began. Details are just ahead. This is bloomberg. Yvonne it is now five weeks since the coronavirus hit the u. S. Officials in the hardest hit states are hoping the number of virus related deaths have reached a peak. Some of the optimism has been dented. New york and new jersey saw a jump in deaths. Lets get to our colleague with the latest. Thanks very much. We are looking at these two states, which are the two epicenters of the virus. We had some tapering of the infection. Then the biggest oneday jump in fatalities including by 8 . Day it wastraight 10 . Inernor murphy saying we are the fight of our lives. We have had deaths in a new york as well. A Record Number of people who died. There have been tapering new cases for a third day. The part the white house developing a plan to get the u. S. Economy back in action. The efforts according cities and towns that have not been hit hard by the coronavirus. Cities such as new york, which the president described as shut as hot spots, which would remain shuttered. Economicump and his advisers talking about returning americans to work. Haslinda part apart from new york, the u. K. Severed its worst day so far with its highest rise in fatalities. Can you tell us more on that and the health of Prime MinisterBoris Johnson . Prime minister Boris Johnson is still being monitored in the Critical Care unit at st. Thomass hospital in london. That is as the Coronavirus Crisis in the u. K. Deepens. We have at the moment the Prime Minister in a stable condition receiving oxygen treatment but not diagnosed with pneumonia or put on a ventilator. The foreign minister is taking a grip on the government machine and coordinating the pandemic response. The strategy britain has been implementing is severely criticized by others. You have ministers accepting they have not done enough to test people for infections. Pandemicigns the turning the quarter turning the corner in spain and italy not reflected in italy. The department of health saying the number of people dying of by 796. Has risen the chief scientific advisors says there is no acceleration in the number of new cases and it is possible the infection curve is starting to flatten. Predictions things are likely to get worse than they get better in six to nine days. Back to you guys. So much forank you that. Our Bloomberg Markets coanchor. Lets do a quick check of the latest business flash headlines. Nissan says it is switching strategy, focusing on preserving cash and planning to put its employees back to work when the crisis ends. After halting nonunion operations in america, nissan covered about 80 of regular pay. The company told bloomberg the virus is challenging but not impossible. What is important is people first. Number two is cash. Plants,have closed the our dealerships are closed. He do not have revenue. We have to manage our cash. Take a look at markets. Today under pressure here as we continue to deal with the negative headlines with the coronavirus. China reported 62 new infections, which was a bit higher than we have seen in a while. Haslinda were looking at live pictures of the lion city. We are in the middle of the trading day. Day two of this i can break. A partial lockdown of the lion city. The government proposing banning all gatherings anywhere. It is debating whether or not to criminalize gatherings among friends or fairly members who are not living together. Most workplaces and schools have been shut. Singapore bracing for tougher days ahead. Thats get first word lets get first word headlines. China liftedr travel restrictions in wuhan, people are heading out by road, rail and plane. The city had been on lockdown for 11 weeks with millions of people cap at home. About 65,000 residents are on the move. Comes afterf curbs china announced no new coronavirus deaths for the first time. The trumpet administration attacking the World Health Organizations stance on travel bans. Congress allocated 123 million to the agency this year. The president slammed it from being what he called, china sentry. The who urged against blanket travel bans, saying they have been historically ineffective. Hong kong is stepping up measures, extending closures of bars and gems. All travelers coming through the airport will be tested. They will be allowed to go home or designated a combination for mandatory quarantine. Those from the u. K. Can only leave the Testing Center and results come back negative. The u. S. Is Cutting Oil Production forecast by a Million Dollars a day. Next years projection is also being trimmed with the news expectedurs ahead of talks between opec and its independent allies. Saudi arabia and russia won the u. S. To join any restrictions on output to stabilize prices. 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. Lets do a check on the markets. Haslinda actually ill take it from here. Yvonne ill continue. I think you guys can still hear me. We will take a look at this risk off day. The hang seng still lower by 1 . We have been dealing with the social distancing measures. That will extend a little later on to april 23. Seeing more of the measures as well. Manila seems to be taking the most on the chin. We are down about two and a half percent. Watching india after what was a rockstar session yesterday. We are losing that today. The nifty futures down 1. 8 . There was a lot of talk about how the gains are not sustainable. India, 10 year yield continue to see a lot of selloff when it comes to indian bonds. Hours have been reduced. Of the countries feeling the pain is indonesia. It is working on a second stimulus package to counter the impact. Guest says the stimulus so far is poorly targeted and will not work. Lets bring in the former indonesian finance minister. Good to have you with us. 25 billion dollars set aside to counter the impact of the coronavirus. Is that enough to ensure indonesia escapes a recession . Of this, ifn terms we look at the priority of the focus, i think it is very important. The government focused on three sectors. In terms of numbers, the relief is perhaps lower compared to a country like singapore or australia or malaysia. Comparable to a country like spain and italy. This is about the fiscal finance damage as well. Leopard out the projection has been cut to 2. 3 for the year. Is that realistic . You have countries like singapore with 13 of gdp in terms of stimulus contracting positively between 1 and 4 . If you are talking about singapore is more than 2 . Tanisha, oure evan share of gdp is less than 30 . Somehow, and anita still gets its support from the domestic economy. Depends on whether the domestic economy [indiscernible] the first half, the economy is still doing ok. I do believe that the minister of finance came up with a scenario. Yvonne thank you so much for joining us. That is such a deficit for indonesia. At has long seen the cap of 3d printing of 3 of gdp. It seems like that has been lifted now. Theyre forecasting 5 or so. That is something you guys had called for. Do you think that gives it a fiscal firepower for the government now . Agree this is an extraordinary situation because the government needs to focus on health issues. The outbreak getting the outbreak under control should be the priority. The government needs to spend money on that. Removing talking about the failing of the fiscal icit, you need to [indiscernible] maybe the government can spend more on this. It really depends on the ability to finance it. Yvonne so you do see that perhaps that fiscal deficit could exceed the 5 the government is foreshadowing . It is very early to judge, but at this moment, maybe not. I think the possibility is open. The government needs more protection. The government is now implementing social distancing on a wider scale. Tohaps the government needs [indiscernible] if this happened, then maybe we need more targets. I think the 5 is ok. In the market, yesterday [indiscernible] market wasn from the positive in the sense that our number is critical for the market. Haslinda the indonesian isernor says the rupiah fundamentally undervalued. He sees the rupiah going to 13,000 by the end of the year. Used do you share his views . I think it is very difficult. The biggest problem is [indiscernible] january theall in [indiscernible] as long as the government cannot control the pandemic, [indiscernible] that is my getting the outbreak under control should be the priority. That is why given the outbreak under control should be the priority. It will not work unless we focus on the health issue. Much forhank you so your time. It was a pleasure. Former indonesian finance minister. Coming up, Indias Telecom providers get muchneeded loan relief from the r. B. I. Their network is get some their networks get swamped from people working from home. This is bloomberg. Haslinda mobile Internet Usage in india has seen a surge since the start of the locked down as more people work from home. Our next guest is urging the government to provide additional spectrum tall callup tall telecom players. The indianl voice of telecom industry. He joins us from new delhi. Good to have you wear those. Telecomhow are operators coping with a surge in demand . Fortunately, the operators had a bit of advanced warning. Getting our networks on emergency ready visavis redundancies being put in place. The Network Elements being up to snuff. Sure we have the maximum number of cell towers on air. There was an adequate amount of preparation for our networks. But does not mean we were completely ready for that surge. About 30 increase of traffic on data hit our networks. We were quite precise in the way we responded. We had to look to where this was coming from. We noticed this was as a result of increased data usage from streaming services. We had a targeted approach. We went to the government arm and said, work with us in forming these streaming Companies Like youtube and hulu and tictoc and amazon and others saying, please reduce the bit rate from a High Definition to standard definition. Surprisingly, that brought the traffic down back to just about 15 to 20 above what was normal. That was the first intervention we were able to do to stabilize traffic on the network. Having said that, are you saying there is no risk of a collapse for a congestion that could pose a problem to the country . Have hit the peak for what we have the peak. What we have seen is a shift in traffic patterns. Saw in thece we mornings and the evenings resulting from patterns emerging from computers. That has shifted to more of an even distribution on the network. We have had this big migration of our workers out of the urban areas into the rural areas. Of the seen shifting distribution of traffic, which does not mean we do not have surges in certain hotspots in the country. Our efforts right now are to continue to monitor networks to see where these hotspots are emerging at various points in time and then involve ourselves in Network Management to ensure the surges do not bring the network down. I think that is working very well in terms of our folks managing the networks, making e the we had to work with the government to pick sure these people were given particular permission to be on the street. Regain thee to network in the instance where there was a fiber cut or one of our cell towers was going down. We also worked with a local minister polities to bring online additional capacity by putting on temporary cell towers. We are able to very quickly go into the places where we are seeing congestion of traffic and begin to deal with it. These measures have helped us cope with maintaining our networks. What do you think about the proposed tariff increase . Do you think that is going to be delayed further . That has been there has been a round of traffic cut increases. Our operators have on cert have acted responsibly in ensuring affordability is never a concern or a problem for our citizens. Specifically in the particular instance where we saw the bottom. Mid of our group of customers facing hardships because they had prepaid phones and not smartphones. They could not get to a recharge station. The operators put out free voice calling and free incoming while the quarantine is lasting so this group of customers that was facing the hardship was targeted and afforded relief so they could continue being in contact with people they were interested in being in touch with. Pandemic,prior to the Telecom Operators in india were in a dire situation. Do you think this pandemic has helped them come through and would help them survive . Thank you for raising that issue. Yes, for several years and most recently with what we call the Supreme Court ruling on adjusted Gross Revenue where several billions of dollars of additional liability was imposed on the Network Operators in addition to these tremendous amounts of debt that had accumulated to operators as a result of the extremely high pricing of our spectrum in india. The cumulative effect of that including the fact that 30 of every rupee that is earned by an operator goes back to the government and does not come back to us. Lead the industry into a very disastrous financial position. The operators were able to invest in our network. Overve at this point 550,000 cell towers. 2have over a million stations in operation. We have 365 centers. The rows in the world do you have that kind of configuration of networks. To make adequate implementation and investments ofensure the critical needs the customers in terms of coverage and capacity was being maintained at this time. This time has showed, the health of the nation in a time of Health Concern is as equally as important to sustain the connectivity and the ongoing Economic Activity, at least what is left of it, in the country. Future, do you still see a risk of it going bankrupt . I think the operators there has been some chatter about this. We are hopeful and we are convinced vodafone is doing the right thing to contain and continue its operations. We have received some strong indications from the government that they are not keen to have adafone exit and go to through market environment even in a country such as the u. S. The Justice Department took a hard look when they went from four operators to a suggested three. Ultimately to them up amobile and sprint forming consortium of three. You can imagine in a country like india where we have one point one billion people and as many connections going down to two. A significant threat in terms of direct investment in future investments in the sector itself and the competitive landscape. The government is keen to ensure it stays there. We have that some indications they are going to work with the industry in terms of ensuring we can deal with the financial crisis. We expect that vodafone continue to be a competitive player in the marketplace as we go forward. So much fork you joining us. He has from the Cellular Operators Association of india. Some lines coming through when it comes to zoom. It seems like shareholders have filed a classaction suit in San Francisco over securities fraud over privacy and security flaws. They are saying the ceo and cfo are accused of concealing encryption shortcomings. We had seen a speculation of this and the cybersecurity concerns that some countries and companies have raised. Taiwan was the first government to impose a ban on the popular videoconferencing app over these security concerns. Just an update on the class action suit in San Francisco. This is very. This is bloomberg. Yvonne just some lines crossing the terminal. Citigroup is said to replace Credit Suisse and we doctors hong kong ipo. This is after we learned Credit Suisse was dropping out as a sponsor of the plan listing. Citigroup is set to replace Credit Suisse. A quick check of the latest business flash headlines. Streaming company has formed more than 10 after it has overstated revenue and subscribers. Byboosted its 2019 revenue up to 24 using numbers by as much as 60 at inflated expenses to hide the alleged fraud. Japanese utilities are being ordered to check for any and proprietary in their work for any impropriety in their work orders. Executives and local in exchange for they also won facilities to check for potential problems and a and governance. The u. S. Hopping and of has seen fortunes reach a new high as the coronavirus pandemic raises value across global markets. To combined wealth has risen 165 billion as recession worry continues. Retail dominance of rise has made the waltons there which family in the world. Toyota, gm andas bmw are set the funds will be needed to support the companies in the second and third quarters before a rebound toy the end of the year. Exxon mobil is slashing expenditure by 10 billion. That is more than double the cuts by any other oil company i made the unprecedented crash in oil prices. 30 cut is the second largest in the companys history. Tole will continue to grow 350,000 barrels a day this year and by another 30 next year. Yvonne just want to recap those breaking lines. Citigroup set to replace credit konge in we dr. s hong ipo. This does have connection to the Luckin Coffee scandal. Sued for its was sale. N the u. S. Share that is why citigroup is now taking over. No details on when the ipo is going to be taking place. There have been a lot of questions with the accounting fraud. That has been associated or accused when it comes to Luckin Coffee. Whether we are going to see more of the Chinese Companies listed in the u. S. Or elsewhere. That is the latest. Here is what markets are looking like. We are counting down to india where we could be seeing a selloff after the massive rally yesterday. The hang seng lower by 1 . Taiwan is the exception. U. S. Futures have been flat for the session. Southeast asia still seeing a lot of pressure. Ricarda warning offices to shut. Singapore, more social distancing measures. This is bloomberg. You doing okay . Yeah. This moving thing never gets any easier. Well, xfinity makes moving super easy. I can transfer my internet and tv service in about a minute. Wow, that is easy. Almost as easy as having those guys help you move. We are those guys. Thats you . The truck adds 10 pounds. In the arms. Okay. Transfer your Service Online in a few easy steps. Now thats simple, easy, awesome. Transfer your service in minutes, making moving with xfinity a breeze. Visit xfinity. Com moving today. Announcer the following is a brought to you by rare collectibles tv