How these cuts will be disk it and how willing will russia be . Certainly some optimism today. Jakarta is coming online. A pretty steep fall off of stocks yesterday. We are rising. Ingapore is up the csi 300 is up. 3 . The dollar is looking pretty mixed across asia. The reaction from that meeting has been seen in the korean won. We are seeing that strength. Nine out of 17 economists respected the hole. Some were expecting for a cut. We are looking ahead to governor lees press conference. We will hear more clues about the trajectory of where rates go and whether they will embark on this qe theme that we have seen in many Central Banks. The dollar yen, we are seeing a little come off of the yen. Were advancing on the back of the oil prices in the euro, premuch flat. Lets stick to oil. Prices are rising again ahead of that opecplus. The worlds Top Producers may be moving closer to a deal on curbing output. Volatility remains a key theme. Wti has seen another 24 hours of wild springs with the price 26 despite much as that record high. Opecplus meets later today. Then we have that g20 Oil Ministers meeting. What are the expectations of a deal . Oil prices have been very volatile. It is extending its gaze for a second day today. Plus ministers are expected to meet later today. They are going to cut production i 1. 6 Million Barrels per day. That equates to 15 . Russia is still insisting that the u. S. Should do more than just let the market reduce record production. Trump is putting huge pressure on the oil superpowers. Cutas said that americas oil prices have fallen to 18 year lows. Do a survey of traders and analysts earlier yesterday. They said that they see an average of 8. 5 Million Barrels the day of cuts from the oil purchaser global producer meeting. The responses anywhere from 2 Million Barrels per day of cuts to 50 Million Barrels per day of cuts. If russia, opec and g20 can strike a deal of about 10 Million Barrels per day, it can bring us historic production of 10 of global spikes. The key question is to what extent these cuts come through if they do. Hether it will be enough Goldman Sachs amongst others seems to think that it will not be enough. What is the story on the demand side when it comes to this . Muche demand story looks weaker. Even though china is boosting oil refinery. Like you said, u. S. Oil demand has fallen to the lowest in data going back to 1990. Goldman sachs has warned that they global oil cuts of 10 Million Barrels per day will still not be enough and that price support may be shortlived because the demand junk is too large. I think theyre hoping for some kind of a deal. Hopefully 10 Million Barrels per day or more to get rid of the demand shock. We will have to see and wait for the results later this week. President trump has historically called for cheaper oil. Now he is calling for more expensive oil. What is going on . Is a lot about protecting the shale producers in the u. S. We have to know that none of the u. S. President s have tried to push up oil prices in the past three decades or more. It is a surprise that President Trump always took a hit on cheap crude. It comes from the fact that american shale jewelers and producers are really hurting from the fall in oil prices. The u. S. Has become the top producer of oil, making many of its own companies having difficulties coping with lower oil prices. That het trump has said has hated opec in the past. Now he is having to work with opec in the coming days. Thank you for that update. We will be monitoring for the next couple of days. More on the outlook of crude later with the director of asia oil. To the first word news with Karina Mitchell in new york. Global cases of the Coronavirus Infection have topped 1. 5 million just one week after passing the million mark. They reported their deadliest day so far. Governments continue to hammer and support programs. The World Health Organization continues to caution against any easing of virus restriction. Dont politicize this virus. It exploits the differences you have at the National Level. Exploited and be you want to have many more body bags, then you do it. Meanwhile, a new Study Reveals the Coronavirus Spread through china far faster than many previous thought, suggesting measures will be needed to take on the pandemic. They probably passed the virus on to more than five others, more than twice the forecast from authorities in february. More than 1. 5 Million People have tested positive around the world. President xi jinping says china is facing new economic and social challenges as a result of the virus with rising numbers of reported infection and increasing threats to growth. This is designed to resume work and boost domestic demand. They include the reopening of commercial operations and the speeding up of investments. Australia has approved a job rescue plan worth 80 billion u. S. Dollars. As part of a wider move to show the economy from the virus. The government said the fallout from the pandemic is unprecedented. The programming should protect 6 million workers. The government will subsidize wages to the tune of 1500 aussie dollars every week to help businesses key people at work. In the race for the white house seems to be down to the last two runners with senator Bernie Sanders pulling out of the democratic campaign. Former Vice President joe biden is now the per something nominee for novembers election. Sanders says he will remain on the ballot and continue to try to collect delegates in order to push the democrats closer to his vision for the u. S. Mobile news, 24 hours a day on air and on quick take by bloomberg, powered by more than 2700 journalists and analysts in more than 120 countries. Name Karina Mitchell. This is bloomberg. We are going to speak to blackrock, later on, we are , this by emerging markets is bloomberg. Minutes from the fed meeting last month should show uncertainty about the severity of the coronavirus. It is creating downsize risk to the u. S. Economy. Thank you for holding out, thank you for joining us. Now is actually the time to be more offensive. Given the Current Asset violations we are seeing, he is less worried about losing money more worried about the gain. I think it is a time for imbalance. One is to look at the risk factor. Ambiguity around Economic Impact, i think it is in front of us. You dont know the shape of recovery. The aspect violations have opened up. It extends the quality of the markets. I would send the balance is the right word. What do you think ultimately changed the most . We see massive stimulus from the fed and other Central Banks in terms of liquidity. Has there been much credit support when it comes to balancing the sheets and income . Comes to Balance Sheets and income . I think there is more to be seen. It is to support the functionality of the markets. That is the foundation of the risk assets in the parts of the world. Then looking at the functionality of political markets. Risk of theroader corporate balance sheet, the default and the downgrading. I think there is some ambiguity given the fundamentals of the economy. That for cash in the u. S. Not exactly really translating in asia. We are not seeing that much debt issuance right now. Does that mean the spread could main well supported . In case of asia, what we have seen in the u. S. When it comes to the stabilization of id markets, i think it will follow through with the leg. What we have seen over the course of the last few weeks is new issuance has been a lot more selective. It has performed on the higher end of the credit spectrum. I think we will see that opening up in asia but it will come with a lag. The asian markets will benefit. You see the benchmark yield is down. You . Oes it break down for overall, we like china. We like some of those credited in china. We like how real estate was affected. There are more National Level players. It is quite interesting. The bills have started to come back as the economy is opening up and china. We like the policy. There is ample opportunity in the region. The key here in my view is pew have to focus on quality in terms is you have to focus on the quality in terms of your portfolio. Thesis you changed your at all on india given the locked down there . The invitations around the spread of the virus . You said you liked the Government Bonds in india. Do you stick to that . From a macro perspective, i behind from aill covid perspective. It has a lot of downside impacts from a growth standpoint. At a point where the fiscal room is limited. A lot of heavy lifting is getting done by the monetary policy. I would remain selective in the case of india. The Government Bonds still look attractive. Especially with the policy accommodations. In terms of credit, there are opportunities in india. About when it comes sector to sector . There is a resumption that it could get bailed out. Do you think that some of the names could avoid the full thing . Think it will i think it will vary by sector. Credit markets. A lot of these sectors that are affected by the coronavirus. They dont have a lot of names from the airline sector. You have a small composition of the commodity names and asian credit. They are much more supported find them. Impact isat overall by virtue of the composition of the markets. I think it will vary by country. It is going to be something you see. We saw those minutes about the fed so the need for more forceful policy action. Do you think we could have seen more from the fed when it comes to the highyield market . Would they ever support junk bonds . My base case is that it is difficult because of the amount of credit risk they are not getting in terms of the fed Balance Sheets. I think the direct support might be difficult. There are very decisive actions in terms of supporting the credit markets. Overall, the key point i would say that is important is had we gone through whatever it takes, i think they will stay accommodative for the rest to help the markets. Thank you. Have a great weekend. The head of asian credit at blackrock in singapore. Plenty more coming up. The career governor is due to speak and solve for the policy decision. Bloomberg subscribes can continue to watch that. This is blumberg. Cases of coronavirus have topped 1. 5 million. It is a grin figure but would peace are worried about is the speed of contagion. The one million mark was breached less than a week ago. Lets get to my colleague, rishaad salamat. That is an astonishing rate of infection. What is the situation in the u. S. And europe . Cases in the u. S. Are really growing at more than 420,000 wednesday. This is the deadliest day on record. 15 more than any previous day during this pandemic that started in the u. S. Five weeks ago. All of this data from Johns Hopkins university. The brakes are beginning to slow. Then and italy at are at two epicenters. The trend is down according to text. She has been urging governments to get over their differences. We had European Finance ministers failing to agree on half a trillion or 500 billion packages to mitigate the consequent as of the pandemic. She says you have to get over that difference. A second round of talks later on today. These governors might support one another and point at that there economic and policy differences we have also some things like andr it issuing some debt Boris Johnsons health is said to have been improving but the same cant be said about his country. Rishaad absolutely. Backgroundainst this of the latest data showing the British National picture has turned more bleak. A record amount of people dying from the virus on tuesday evening. Officials say it is highly likely that the restrictions will be kept for weeks longer when theyre up for review on monday. For infectionsg to peak. They should be picking between six and eight days from now. Situationbal economic is terrible. We have a clearer picture of how dire it is . Rishaad we have the wto coming out and saying it could cause a. Eeper collapse the unprecedented nature of the Health Crisis the Health Crisis could result in a variety of outcomes. It is set to rub the Global Economy of more than 5 trillion of growth over the next two years. In other words, that is greater than the annual output of japan. Downturn is likely to be shortlived and it will take time for the economies to make up the lost ground. That is the dire warning. Yvonne thank you. That was rishaad salamat. This is more of a teleconference given the situation now. We have been seeing that they are cutting rates to 0. 75 . Kong. 10 29 in hong 10 29 p. M. In new york. We have the first word headlines. There is a dire new warning about the effect of the coronavirus on global trade. The wto says it fears shipment and orders may slump by about a third as the pandemic ravages demand and manufacturing. The wto says the drop could be worsening during the financial crisis a decade ago. The Organization Says it is ugly forecast. A bleak forecast. So steeply inen every region of the world and across all sectors of the economy. In an optimistic scenario, are economists see Global Trading goods stumbling by 13 in 2020. If the pandemic is not out of canrol and government coordinate policy responses, the client would be 32 . New data shows Airline Flights slumping the first days of april as the coronavirus hammers travel demand. Animation shows far fewer plan to file it flying across the country planes flying across the country. To slash domestic routes as measured 90 in the coming months. They are her are reviewing government aid as revenue slumps. Japan is facing a doubledigit contraction as the coronavirus told the economy. All 17 economists see the economy shrinking in the current time. Afterojections come shinzo abe declared a state of emergency and bunched launched a record stimulus package. Hong kong has announced a new stamos package worth most 18 billion u. S. Dollars as the economy deteriorates further amid the virus outbreak. The Program Includes support for jobs by subsidizing 50 of wages for affected workers over the next six months. Are cutting by 20 amid with the government says is an unprecedented challenge. Google and facebook have one u. S. Approval on the condition saysthe Justice Department there is a significant risk to direct connection between the u. S. And hong kong that would jeopardize national security. The project was announced four years ago. News, 24 hours a day on air and on quick take by bloomberg, powered by more than 2700 journalists and analysts in more than 120 countries. I am Karina Mitchell, this is bloomberg. Speaking about todays decision to stand pat when it came to raising, keeping it at 7. 05 . He said it was not unanimous and are goingembers through a board reshuffle later on this month. This was kind of a 5050 shot about whether they would cut rates or not. It looks like they will be waiting a little bit until they see the effects of the emergent you see emergency cuts use saw earlier this month. They see the virus impact to be bigger than the financial crisis and the 2020 growth really depends on the virus situation right now. Still sensing a bit of caution from the governor himself. He already mentioned in their statement that when it came to the growth projections for 2020, 2. 1 percent gdp growth, they were going to miss that february projection by a large margin. 1 inflation for 2020. It is not looking good. They are looking for clues about whether they will embark on this qe. They might need to do a cut before they do more on the asset purchase inside. Lets check the markets before we get some more lines from the be ok. We were watching when it comes to risk assets. It looks like we are getting to the end of this shortened week on a positive note. Green whenly in the it comes to your asia benchmarks. Betralia, singapore seems to the leaders on the boards. Massive stimulus coming in from hong kong. U. S. Futures are still pointing positive. What is boost in sentiment is the oil prices. We are up 3 for wti. It seems like russia is willing to play ball on these output curves. That certainly helped when it came to the oil price. How are you going to get g20 involved . Is it enough to offset that demand out there . Into theeing them give disappointment that they held rates unchanged. There seems to be a mixed picture here today. He dollar is mostly weaker we are watching all of the aussie yields. They continue to go higher here. We are seeing the r. B. I. Trim the bond purchases. A lot of questions about how they will take this. Playing a fewnks steps back. More wings on the dire outlook for the economy. The treasury saying that the Second Quarter gdp contraction could be the worst in new zealand history. The worst contraction in new zealand was 3. 1 . That was in the Fourth Quarter of 1986. They saw a drop of 1 . The treasury in new zealand says they could see the worst quarter on record there. Lets get a view on how this is all playing into the fx base. Space. There have been warnings around global recession. Options traded with the gap g7 appears the widest since june. More on currency markets now. Our guest. Ed by thank you for joining us. Your views on volatility and the suppression in volatility that we have seen in the last few days. Do you think that continues . How much of that is down to the climb support we are seeing from the Central Banks . Think you, good morning. Thank you for having me on the show. We are seeing volatility come down. I think it is reflecting of the fact that you have not had that rush of capital outflows. Markets have experienced liquidity at the same time. Many countries are under lockdown. Traders are working from home. Investors are not engaging in the market. Post importantly, we have no dollar flowing in the global trade. Stocks an unprecedented in the liquidity. Fx has been very poor. A recovery phase. It is too soon to say that we are out of this. I think that in the near term, we are likely to see volatility stay at the current level rather than decrease from here. With that, i think we remain of thecautious in terms dollar against em currencies. We do expect Dollar Strength going forward. Tom further Dollar Strength going forward. It seems to be improving right around the edges. In terms of korea, we have the bank of korea keeping rates on hold. There is some strength for the korean won. Explain the rationale. Ethic is where i can be ok. We had the shock in march. Now we are seeing support come from a number of factors. The most important in my view is that the be ok is starting to supply dollars. They still have potential scope to increase, given the total of 60 billion and supplies coming from that. The second is when it comes to the fundamentals of the korean economy. Yes, we are going to see growth even weaker than the Global Financial crisis. In terms of how korea has seen the covid outbreak, they done a lot that are than other countries in terms of maintaining and flattening the curve. That has significantly hurt economic activity. For the see some room korean economy as well. The tech sector , it isance, the demand likely to support korean export revenue as well. To koreaat points still being sensitive to Global Sentiment and Global Factors but the fundamentals are fairly supported coming from both the be ok and the economy. As well as the capacity for government to increase fiscal stimulus there. The won is the proxy for trading asset risk. Should we expect other asian currencies to fall as well . It in the to take context. We are facing unprecedented shocks. Use thethink we should proxy as the new normal going forward. I do see that given that the ket has already punished the korean won was a lot weaker in march. The account the recovery of the economy is going slightly better for korea. Supply asf the dollar a major issue for em countries, korea and singapore are seeing the dollar suck supply from the fed. They are in a lot of a better position compared to other currencies in the region. Yvonne lets talk about those. Youre talking about the rupee as well. Why are we not out of the woods yet . Is that thehe key worst part of the rest capital foreign are over given fixed income selling in march. That was the highest on record. However, it is still only to say that we have to enter into a recovery. Part of the reason is the dollar the quiddity. That they have very low capacity. Or evene relative size the absolute size in indonesia, i think the next few weeks will be a very important observation time when it comes to the rupee. Ofneed to see in terms global and new cases as well. We may need more stringent measures. See thetly, we want to effect on local liquidity. Liquidityptical that remains to poor and we need to raise more volatility there. Won, you have the Second Quarter where it gets to 7. 35 and then it strengthens again. Playing intofacts the chinese currency at this point and your target for the yearend . The r d, ilook at think people have talked about this as a set heaven and asset heaven. Half of those have retraced. I expect outperformance to lessen going forward. The reason is that china is isply china as an economy not insulated from global shock. Global external demand is going to be taken out on china. We are seeing production presumption right now. We have to watch out for a second beat when it comes to china growth. When it comes to the r d, there are two factors. We still have very, very high dollar borrowing from china corporations. Especially the more corporate sectors. Find existing to positions. It stood at 1. 5 trillion. China fxalf of the reserve. There are strong policy incentives within china to keep fx at the level. If anything, i think the policy sector is going to have a very flexible fx regime. Forecast at the moment is likely to be Interest Rate cuts and the quiddity easing locally. But once werength get over this and we see global recovery. We will leave it there. I just want to bring you back to those live pictures from seoul. There is still room for rate cuts. When it comes to qe, he did mention they will conduct an outright purchase of bonds if needed. When it comes to the direct purchase of corporate bonds, that is bank of korea law. They will respond depending on the situation in may. We will have plenty more coming up. This is bloomberg. The world is firing back at recent criticism of its handling of the coronavirus outbreak. Most noticeably from President Trump. The Organization Says the u. S. And china need to stop politicizing the situation. Stephen engle has been tracking all of this. Who director saying that the two powers, china and United States need to Work Together and show honest leadership. He also urged all nations and the media to stop trying to divide people. He says that if you dont want to have more body bags, you refrain from politicizing it. No using covid19 to score political points is his takeaway. Donald trump has been very critical. Blasting the who for favoring china and also blowing it and not giving enough advance of the about the extent potential of the virus. Again, since that last statement on march 12 when the who named this a pandemic, we have seen global cases surge 12 full, death has surged 19 times. India may extend its lockdown. What are the details . That is right. It is a tough choice. Do you lift the lockdown and how peoples livelihoods . Do you keep it on and help stop the spread of disease . There are many cases in india with 178 deaths. The one state has 326 cases and three deaths. That is a state of 200 Million People. They are going to seal off 15 districts worst affected. Thinganother troublesome for the indian economy. Modi has hinted to parliament that the lockdown may have to be extended. That comes a day after a panel was set up of government officials saying that maybe we should relax a part of the nationwide lockdown that has been in place has march 25. It does not look like that will happen. It looks like it could be extended beyond april 14. Thank you for the update. I just want to bring you some fresh lines coming through from the bank of korea right now. It seems like they are embarking on some type of qe. They are saying that they will be announcing Government Bond purchases. That is planned for this afternoon. They expect an increase in Government Bond issuance. It will be conducting active outright purchases of Government Bonds. When it comes to corporate bonds, they are saying this when it comes to brokerages. We will leave you with those live pictures. Those are the latest lines from the bank of korea. This is bloomberg. Lets check of the latest business flash headlines. Videoconferencing app zoom has seen surge. Been increasing concern about zoom cost vulnerability to hackers in the way it uses data. They accused the company of misleading investors about its encryption capabilities. Netflix documentary tiger king has attracted 10 million viewers. He is in jail for tempered murder. They asked if mr. Exotic could be granted a pardon. I dont know if you have watched it yet but this has been the highlight of the last couple of weeks. This is my easter weekend. Joe exotic. That is what it is. Switching from tigers. Second Quarter Sales today, they are not expected to be pretty. Bloomberg intelligence has forecasted that the owner of the popular brand could see sales decline beyond japan widened as the spread of coronavirus disrupts retail sales around the world. Joining us to discuss is Catherine Lynn in singapore. Just give us an overview of what you should expect. We should expect. Good morning. I hope all is well. I think we will definitely see fast retailing. It will be later this afternoon. Just to recap earlier on, they growth incting a 2 for your sales for the 12 months and august 2020. I do expect that to fall into a negative territory as we see the effects drop on the covid19 pandemic. Obviously, that is going to take a hit on the companys margins unfortunately. A redee that falling to spot low. It is harder to predict what some of the items that may actually be cooked in including provisions. We will have to see what the company says later this afternoon. Chinas resumption to normalcy is helping to offset disruptions across the rest of the well. How much truth is that right now . We tend to take some comfort that we will not see as sharp a sales decline in china as we have seen in february. As we do our checks in china right now, speaking to some of the local retailers, sales are far from back to normal. About 2030 down from the same time last year. This is even after some of the accounts wide into this for product. Garments s and apparels and garments are not essential at this time. I doubt that willfully offset the sales declined that we will worldwide. Iqlo even in the physical third quarter. Thank you so much for your analysis. Thank you for joining us from singapore with the latest on fast retailing. Lets look at korean assets. We heard from the be ok saying that they are going to start a qe light program. You see a strange reaction when it comes to bond futures in korea right now. We are seeing them spiked quite a bit and watching that strength into the korean won. We have seen when it comes to those bond futures. We will have more coming up, 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. Yvonne it is all most 11 00 in singapore. 8 30 am. I am haslinda. Aonne calling for coordinated response to the coronavirus. Infections have topped 1. 5 million just one week after passing the million mark. Vivusrelated stocks are benefiting from the outbreak. The testing kit has helped shares takeoff. Virus has slashed demand for oil with phthisis prices tumbling. There are signs of a deal as opecplus prepares to dock. This is Bloomberg Markets asia. Check. S do a market mostly higher on the back of the rally. Sentiment driven by optimism. Saw a Record Number of deaths. Also, questions about how quickly the goebel Global Economy can recover. The costs are trading higher. Factors inding, all the index are in the money. The be ok saying that it will do its best to stimulate the economy within its boundaries. We will get details later. Paring throughk recent gains. Annual profit will miss targets due to inventory write down. Japan is bracing for that steak up emergency. Tokyo is expected to keep working through the full week. Will see themarket biggest potential hit to liquidity. Chinese stocks trading higher as wuhan emerges from that lockdown. Investors brushing off xi jinpings warning of difficulties in the economy. Also, socially. China pushing for businesses to reopen. Lets flip the page. Take a look at where markets are trading right now. See ignore singapore and indonesia trading up. Re is new concern to do there has been accumulating debt. Sep, ties stocks, they are seeing the best weekly gain since 2013. Take a look at oil. The standing has rally. There is optimism opecplus could be inching toward a deal. Look at Indian Markets and seeing how things are going to play out here today. We are seeing the nifty slightly positive. We have seen some weakness into the rupee. We will see if the oil price bump is going to help india here. Probably not. We are still seeing that yield taking higher for the bond markets given the lack of liquidity we have seen in that market due to these shortened operating hours. For the first word news, we have Karina Mitchell in new york. Global cases of the Coronavirus Infection have topped 1. 5 million just one week after topping the million benchmark. Says fatalities and new cases arising again. Governments continue to hammer out support programs. The World Health Organization continues to caution against any easing of virus restriction. Please dont politicize this virus. The differences you have at the National Level. Exploited and be if you want to have many more body bags, then you do it. Zealandhile, new quarantined all new rivals for 14 days as it continues to fight the coronavirus. 40,000 New Zealanders have already flown home since the country closed its borders on march 20. The Prime Minister says the decision will be taken on april 20 whether to extend the current fourweek lockdown which began a little over a fortnight ago. Pedro the Central Japanese he was not named in the government list of seven areas under emergency this week. The governor says he will make his own declaration tomorrow. They have a large concentration of auto related companies. Legal basis. E no australia approved a job rescue plan worth 80 billion u. S. Dollars as part of a wider move to shield the economy from the virus. The fallout from the pandemic is bedfast is unprecedented. The government will subsidize wages to the tune of 1500 aussie dollars every week to help businesses keep people in work. Local news, 24 hours a day on air and on quick take by bloomberg. 2700ed by more than journalists and analysts in more than 120 countries. I am Karina Mitchell, this is bloomberg. The bank of korea opted to keep its policy dry at todays meeting after taking aggressive emergency steps less than a month ago to contain the economic damage of the coronavirus. The decision comes even as it acknowledges the pandemic will take its toll on inflation. Policy here. Onomic i know that they are pretty divided on with the be ok would do. It was. About halfandhalf. The economists surveyed by our Bloomberg Team said there will be another cut following that big emergency meeting cut last month. It has been three weeks from then. The other said they would wait and see how it played out before they made a move. Lets jump into a chart to start this off. You can see there is a line showing what was expected. In fact, the blue line was showing that what actually happened last month, the 50 basis points joint to. 7 5 . The yellow line showing that if you look at what traders were saying, they were expecting a cut. Bloomberg economics already writing a rate cut of 25 basis points. Talking,governor was he said the chance of a global recession is high. I always like to point this out, korea is the worlds 11th largest economy but it is the for the biggest exporter. If you have other countries slowing down in china and wuhan and they are getting back to exports beingsee from korea and japan. There is a high possibility of recession in korea. Theremportantly, he says is still great because. He also said the bank of korea could conduct outright purchase of Government Bonds if needed. Like many other central bankers, he is not eager to jump into the world of quantitative easing but he is acknowledging that there is an argument that more needs to be done. I think it is also interesting that he said they could even consider some kind of yield curve control. As japan has done. They were wondering if the fed would do it. All of these things are apparently on the table if needed. He said he is not sure that the korean economy can grow 1 . Is not easy to achieve growth faster than that. Inflation has already pulled away from the target. It continues to move lower. The door is wide open to the bank of korea doing more. They wanted to wait and see how other things played out. The bond market is doing quite well in korea now after he made his remarks. Apparently traders are realizing this is something that could happen. Kathleen, the qe, it seems like they are ready to embark on Something Like this. What does it look like compared to other Central Banks like the fed . Kathleen that is what they have to work out. He pointed out that the rules and regulations arent quite the same in korea as they are in the United States where the fed has ifn pretty much free rein you think about any kind of bond purchases. Maybe that is the kind of thing we have to watch. The u. S. Congress has been willing to ship things and make some changes, loosen up on certain rules and regulations that they would not loosen up on if the economy were not seeing such dire circumstances. We can only imagine that this thing could be the same could be true in korea as it is in the u. S. Global economics and policy editor, kathleen. Still had this hour, we will biolitics. Livex we are going to look past daytoday volatility. This is bloomberg. Back to markets now. Our next guest things volatility will continue to decline despite the likely terrible Economic Data across the world in the Second Quarter. Joining us from singapore is our guest. Thank you for joining us. What is the rationale behind the kind of statement russian mark thank you for your time. With how thelear Financial Market are reacting to the Economic Data, it is about infection rates around the world. Three things that are prepared isbe reduced in the market volatility. We are prepared to avoid the worst of the systemic shock to the financial sector. And the fiscal stimulus. Clearly there is some diminished risk of the Global Economy being shattered by financial crisis. Secondly, it seems quite clear that markets are looking forward to when activity is allowed to resume as lockdowns around the world start to be eased. May bepectation premature. We could get more infections that require further lockdowns. Each round of lockdowns will be equated toward a vaccine developed. I expect markets will react less to a second round of lockdowns in the summer and maybe a third round of lockdowns. We are going we have seen this already, we are getting closer to a vaccine. They are going to press down on Financial Market volatility now. We were just talking earlier with eric kelly, kathleen hays. The be ok could be embarking on some qe right now. We have seen the likes of australia and even new zealand enter into that kind of realm right now and join the fed to. Do you collect qe . Does it matter do you collect qe call it qe . It does no matter what you call it. As long as they are expanding their Balance Sheets to handle this, that is what investors are focusing on turning more bullish on the outlook. When the fed first started this, it gave limits to treasuries. It got rid of that limit. You can see Central Banks are beginning to realize that there is no point in limiting purchases at this date. Theres too much uncertainty. Investors like that there are Central Banks being very flexible in this crisis. Also, the crew and one korean won and the rupee have hit a snag amongst the selloff of the markets. Do expect risk assets to lead the recovery when the recovery sets in . Boththink you will get emergingmarket currencies and Commodity Currencies much more likely to lead a rebound when investors really feel that this has all turned rather than saying major currencies like the euro. Similar because most of the emerging world has already been through one round. It is also about the evaluations. Argue that they have been very strongly affected. They would now appear more attractive to foreign investors. That investorsse could see that the korean won has turned. What do you make of the chinese yuan . Some say it is reusing its 2009 playbook. It is likely to be led lower given where growth is expected to be, somewhere along the range of 3 . I am much more in the former camp. Essentially, the central bank kept the yuan very stable against the dollar. That was a very significant move china bothstabilized in sentiment and offshore as well. I dont think they can take the same Exchange Rate stabilization path. Rather than design we need to let the currency we can like did the last couple of years to offset. They realize that by doing that in a crisis, globally, that would just exacerbate things. I am much more in the camp of this being a reasonable safe haven compared to currencies in asia. What about oil . It is a big day for oil, we are all awaiting that opaque plus meeting. A cut, ideal is expected. Is oil still a risk consideration for you . Is it a fair indicator . It is very important. It is a really big day. Russiaectation is that and saudi and the u. S. Will somehow come up to an agreement that cuts Oil Production by 10 Million Barrels per day. Global production normally is about 100 billion barrels per day. Because of the dementia from the covid crisis, demand has fallen by 30 Million Barrels per day. Even with a 10 million barrel predict cut, it could be seen as insufficient. Important point is that if agreementsg to get between the major oil producers, you will find it very difficult to follow through. If you get some sort of agreement, markets will begin to say the outlook for oil can stabilize. The recent rally we have seen in oil prices is actually sustainable now. We have gone from 30 per barrel to about 30. I think that is a very sustainable rally now. A sustainable rally. When does asia start to benefit from these levels of oil prices . Usually they start to benefit but we have not quite seen that yet. That is right. Global see that well markets recover, there is a true menace amount of uncertainty. Investors are cautious about committing money to risk assets. Emerging markets have been really struggling to put back in capital flow. Think the Economic Data will be very poor in the next quarter. That is going to make investors a little hesitant. ,s the data starts to stabilize we will start to anticipate that. That will bring capital back into the emerging markets. We are going to leave it there. Have a great weekend. Joining us from singapore. Coming up, the u. K. And the state of new york. The daily virus death tolls hit a record for a second straight day. This is bloomberg. A quick check of the latest business flash headlines. A warning of worse disruption in the First Quarter and into the fourth. Stocks fell 3 in the Second Quarter while chinas lockdown hit adjusted eps by as much as . 18. Starbucks is temporarily suspending a Share Buyback but does not expect mcdonalds is think coronavirus has reversed strong sales growth. March aftered in rising more than 7 in the first two months. Itsnalds is shoving february outlook due to the uncertainty surrounding covid19 and its impact on global operations. Alumina producer says the pandemic is hitting demand with some customers asking to delay orders. Some companies in the auto and construction sector claims there is a delay to reduce contrast. More metal will be stockpiled while rich prices are already at a fouryear low. Aluminum demand may drop by as much as 80 . Yvonne . Coronavirus cases have topped 1. 5 million. While that is a grim figure, people are worried about the speed of contagion. One million mark was reached less than a week ago. New york and the u. K. And belgium reported their deadliest day so far. Rishaad is joining us with more. That is an astonishing rate of infection. What is the who saying . They are putting out a warning saying the United States and china should Work Together to show honest leadership. The head of the World Health Organization, this is the director general said that even at the height of the cold war, the soviet union still came together to fight and eradicate smallpox. He is urging Political Parties and the media to stop trying to these big using the coronavirus to divide people. President trump accused the who of giving him bad advice on travel restrictions. He has also called at the chinese buyers before. At the same time, beijing has also been lashing on. Give us a sense of the situation in the u. S. And in europe. The ecb president weighing in on the issue. With renewing off for a strong fiscal response to the Economic Impact here. Urging governments to get over there differences. We are talking about the european financial minister. Theyre going to put out a package to midget the konta went as of this pandemic. This includes a lack of agreement on what they can do with credit lines from europe. We saw spain have his worst day four days. Italy had its worst day in three. It seems like it has paid to there. That seems to be the case in the coronaviruss where cases grew to 140,000. The country notching up its deadliest day on record. Many states had the highest daily death tolls. That are some officials are cautiously advising that the outbreaks are beginning to slow. Boris johnsons health is said to be improving. The same cant be said about his country at the moment. We cannot. It has only turned more bleak with a record 938 people with rotavirus. Heading into the crisis without its political leader. Back to you. That was our coanchor joining us on the latest. 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. Day two of we are in the middle of the trading day. We are keeping a watch on singapore reads. With the partial lockdown in the country, we could suffer doubledigit blows to their income. ,ingapore has shut offices businesses, and schools for at least the next four weeks to contain the pandemic. For now, lets get the first word headlines in new york. A new Study Reveals the coronavirus is spread through china far faster than previously thought, suggesting more measures will be needed to halt the pandemic. Each person infected early on probably passed the virus onto more than five others, more than twice the forecast from the Health Authorities in february. So far, more than 1. 5 Million People have tested positive around the world. There is a dire new warning about the effect of the coronavirus on global trade. Ae wto says it fears shipments and orders may slump by about a third as the pandemic ravages demand. The wto says the drop could be worse than the financial crisis a decade ago. The Organization Says its bleak forecast is due to the unpredictable nature of the pandemic. We project that we will fall steeply in every region of the world and across all sectors of the economy. Scenario, areic economists see the volumes of Global Trading goods tumbling by 13 in 2020. Now if the pandemic is not stopped, the decline would be 32 or more. Meanwhile, president xi jinping says china is facing new economic and social challenges as a result of the virus, with rising numbers of imported infections and increased threats to growth. State media says he told the bureau to step up policies designed to resume work and boost domestic demand, including the reopening of commercial operations and speeding up of investment. Google and facebook have won u. S. Approval for a transpacific data cable on the condition that it does not carry traffic to hong kong. The Justice Department says there is a significant risk that a direct connection between the u. S. And hong kong would protect national security. The project was announced for years ago and google is being allowed to operate the part of the cable linking the u. S. To taiwan. Global news 24 hours a day, onair and on quicktake by bloomberg, powered by more than 2700 journalists and analysts in more than 120 countries. I am Karina Mitchell. This is bloomberg. Lets take a look at what the markets are now. In the markets. [laughter] go ahead. We are working through these tech issues. We are pretty much flat right now. Inare watching the taiwan particular. We have seen it rise over 20 . If we continue in this type of momentum, we are set to enter a bull market for thailand, joining the likes of indonesia, which we have seen of late. Asx 200 up 2 . They just solidified that emergency package when it comes to job subsidies. It was quite uneventful meeting here today. Set to embark on this qe and outright purchase of Government Bonds. They have kept rates unchanged. We have seen the likes of the , wei as well as the yuan seem to be seeing a little bit of stability. Higher when it comes to those bond futures. We will talk oil next. Thats right. Sentiment in the market being driven by that oil. Oil trading higher ahead of the meeting of the worlds Top Producers to discuss how to address the recent flood. Lets look ahead the recent slump. Lets look ahead to the opecplus meeting. Good to have you with us. We heard reports stating that russia is willing to cut 1. 5, 1. 6 Million Barrels at about 15 . Withe closer to that deal russia suggesting it is willing to make that cut . Thank you for having me. Good morning. As we all know, the crisis in the oil markets has heightened is heightened by the covid19 situation. Clearly, to find some wrist e, russiasia respit and saudi arabia agree to end the price war last week. Since last week, there has been lots of discussions, debates going on how much these countries will cut and how much will other opecplus producers cut to bring some stability in the market. We know these negotiations are extremely complicated, given the sensitivity of the issues involved. It clearly remains to be seen how the Virtual Meeting will end today. Will there be any sort of framework between, say, opec countries, russia, and usa to deal with the issue . Or will bear just to be some general statements on Global Production cuts or will there general statements on Global Production cuts lets look at the numbers cuts . Lets look at the numbers. What kind of cut would move the market . When it comes to demanded destruction, it is between 2530,000,000 barrels per day. Yes. , itou look at the numbers is about 1015 Million Barrels per day. Thelook at the mat arend side of things, as we speaking, probably the world has lost some 24 Million Barrels per day of demand. This is not going to go anywhere soon. The lost could account for as much as 70 Million Barrels per day. Are they looking for sanctions really or are they actually looking relief or are they actually looking that the u. S. Has to come to the table with output curves, too . Yes. The deal will not go through without the u. S. And others participating. 10 Million Barrels per day is a big burden to hold by one little opec country. Clearly, this will go through only if other countries come on board, which is why we think the a deal is very slim by today. How will this be received by u. S. Shale producers . Will u. S. Produces be able to come up with some kind plan that satisfies the russians . We think with the u. S. , right, with the current price, clearly there will be some Production Cuts happening. That will help the u. S. To reduce some volumes from what 4 last year. Q when you take a look at brent contracts, they are fetching higher prices. Is that a reflection of expectations of tighter supply to come . Yes, very much. A lot of the Market Expectations are currently surrounding, you know, around lower production levels, which will help the future with the higher prices. You know, staying with prices , some say that Current Oil Prices are where they should be without the manipulation of opec and its friends. What do you say to that . It is a true reflection of demand. Is happening today is primarily driven by the demand side of things. If you look at both sides of the balance, clearly a supply kind of lost its influence. Driven very demand picture. Prices could fall harder. A Production Cut agreement is made today, we dont think it is going to offer a lot of support. The near term prices may see some increase. The volatility will be there for a long time. It is really driven by demand. We dont see a conclusion for this situation without changes in the demand side of things. So where does that take us in terms of the direction . Oil, for at wti example, hitting 10 or 40 per barrel first . A 2020 five dollar range for the next few months 20 25ive dollar months. R the next few if we do see some type of deal or we dont, what is the credibility of opec now . Will they still be the central banker for the oil market . Not really, you know. As i said, it is a very demand driven situation today. Even if opec kinda pushes this forward, they will not have great control over the market as it stands today. Sri, director of asia oil at sge joining us on the line. Surgedof biolidics have close to 40 and the last 10 days. The companys rapid test has received approval for sale under european union. We will speak to the biolidics chairman about how he plans to meet the demand for kits. This is bloomberg. Welcome back. Rose as muchlidics as 12 earlier this week, as the singaporebased medical Device Manufacturers says the rapid test kits for covid19 were approved for sale in the european union. A number of countries have unveiled rapid test kits to detect the coronavirus, which has infected around 1. 5 Million People globally and killed at least 88,000. Joining us from singapore is the biolidics chairman, jeremy yee. Some say that such kits may not be as accurate as conventional kits. Your thoughts on that . Jeremy thank you very much for having on the call. In the first place, for rapid kit like this, we do not attempt to say that we are going to replacing the currentodus operandi moderates up around modest operandi. Y modus how soon do you see this kid being used in the eu, the u. S. And where are you seeing the most interest . Jeremy currently right now, we have been receiving a number of calls from all over the world in regards to this kit. For thef concern really Detection Kit is that it is supposed to add value, provide diagnostic support. At the same time, it could add value for patients who, depending on the clinical presentation and the rules pertaining to any country, to patients that may exhibit any potential falsenegative for a symptom at patients, as well as for pate asymptomatic patients. What it does essentially is to the expressodies the bioanalytical process between the virus and the immune system. It is essentially a serial get surrogate a biomarker. We can tell from that that iseone may have disease and able to go back to work. Jeremy, you share of koreaies is south stretched to you hear of factories and south korea stretched to their limit. The number of companies and institutions creating these types of commercialized test. Are you seeing signs of strain in the supply chain to make these tests when it comes to Raw Materials and ingredients . What kind of scale are we talking about now . We are almost at no capacity at all. We are not just talking about factories being able to produce tickets, we are talking about transportation as well. These are the two operational hurdles that the team is working now in a race against time. We are trying essentially to do a few things on the outside. The responsibility of a company like biolidics, not just to ensure that there is essentially quality in the manufacturing, but ensuring at the same time that these kids get to Health Care Providers as soon as we can. We also usetime, the data to enforce our Empirical Data analysis and find ways to ensure that the kit remains reliable for clinicians to use. What about in terms of cost . How much do the tests cost now . Is it feasible for you in poor countries of the world . Has beenlike this around actually in the world. The technology is not new. In terms of cost, i am afraid is a little bit of a sensitivity issue to talk too much about that. I can assure you that kits like for were primarily invented low cost countries, particularly in a situation where there is a pandemic and potentially some form of screening is required or trial is of medical required to ensure that the patient is appropriately diagnosed. You talked about how you are seeing a lot of demand from all over the world. How difficult is this to produce at scale . How quickly can you do that . What kind of support do you need for you to be able to do that . Jeremy well, at this particular kit, even though the technology is not new, but the process in running this is really tedious. You need to have appropriate to run the different manufacturing process. Also, there is a selective process when we select those specimens for testing ourselves. Companies will need to have at least for them to assemble the kids and to manufacture them kits and to manufacture them. These are some of the most difficult processes in manufacturing, so its tough, yeah. Jeremy, is this pandemic a catalyst for growth for biolidics . Where do you see Growth Opportunities for you . Has its ownidics proprietary platform. Tried in the realm of liquid biopsies. Whether or not this is going to sure there are several companies out there that came outame in history because of adversities. We are fairly ambidextrous. We are asset light. There has all along been an Infectious Disease arm in the one in the u. S. Right now is assisting us in followup testing for infection Infectious Disease. We certainly hope that a company like biolidics, a Small Sized Company like this in singapore particular current crisis. Last question. You got approval in the eu. Are you looking at other markets right now, like the u. S. For example . Jeremy yes, definitely i am. Diligently have been filing our applications in the u. S. Under the fda guidelines. Are waiting for results to come in. Great. We have to leave it there but thank you so much for speaking with us. Your efforts in this virus fight. That was jeremy yee joining us from biolidics in singapore. India considers an extension to its nationwide lockdown as Prime MinisterNarendra Modi highlights what he cause a social emergency. That is just ahead. This is bloomberg. After ane day Government Panel floated the idea of relaxing indias nationwide lockdown, Prime Minister modi is now considering extending. Indias most populous state put 15 districts under even tighter restrictions. David engel has been tracking the developments. Bring us up to speed. Both of these countries have tough choices. You left the lockdown and help peoples livelihoods, especially all of those Migrant Workers on daily wages, or keep the clamp downs and extend them and prevent the spread of the virus. Both of these countries are facing increased cases right now. India has nearly 6000 cases, 178 deaths. Narendra modi is saying that they are facing a social emergency. We are hearing as well, the most populous state that has over 200 Million People, the same size as brazils population, they will seal off 15 districts that are worst affected. Hintedhearing that modi to Parliament Yesterday that the nationwide lockdown may have to be extended. That decision will be made after an april 11 meeting with his chief ministers. A day just after after a Government Panel suggested that may be parts of the nationwide lockdown should be relaxed. Doesnt look like thats going to happen. Its going to go until at least april 14. Indonesia, very quickly, they too have had a bit less of a lockdown but jakarta is closing all businesses. Commercial activity will come to a grinding halt as of tomorrow. They have about 250 million Migrant Workers in the capital need to go back home. That big migration is going to start probably now already, but definitely by tomorrow. Jakarta is home to 11 of the nations population but has 2 3 of the cases. They have nearly 3000 cases in indonesia right now and the largest number of deaths outside deaths. In asia, 240 singapore has seen a surge in cases. The government has expressed some kind of frustration that social distancing rolls are not being adhered to. People are just not doing it enough. They basically blend band d all public and private gatherings. The government voiced some frustration that people are still gathering out in public. They are announcing that they will issue written warnings to people who are gathering. I dont know what that means, whether that is a criminal offense or whether that carries an economic penalty. They will get written warnings. 142 new cases in singapore, haslinda, a record daily increase. Deaths. Cases, six there is a seventh pending right now. Thank you stevan engel stephen engle. Looks to be a pretty happy thursday before that Easter Holiday on friday. We are seeing the likes of the Indian Markets just open up come up, morehan 2 open than up more than 2 . We are watching the korean story when it comes to qe. They are embarking on this. They see some strength in the yuan, as we look ahead to opecplus and that g20 ministers meeting. 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. The following is a paid program. The opinions and views expressed do not reflect those of bloomberg lp, its affiliates, or its employees. Announcer the following is a paid presentation brought to you by rare collectibles tv. In a letter dated back to december 27, 1904, to the secretary of treasury, president Theodore Roosevelt wrote a short, twosentence letter. And this was in typical Theodore Roosevelt, direct bravado style. My dear secretary shaw, i think our coinage is artistically of