2. 95 . There were talks yesterday about another policy easing soon. There we have it today. The china 10 year bond futures rising on the back of that. The taiex currently down by 2 10 of 1 . T mnc will build the new mac chip. Apple is working on its own mac processes. It will be faster than the processors in the iphone as well as the ipad. The benchmark in new zealand currently bucking the trend, up a marginal 1 10 of 1 . Rishaad absolutely. Getting more details on that. The pboc acting in order to show sufficient liquidity in the system. Injecting merely a billion dollars worth of you want into the banking system. Weve got that declining or cut by 20 basis points. 3. 15 . Direction from our chief asian market strategist. Money intoue to pump the system, the financial system. Does it end up in the right places . This is targeted, hence the name. As the we. Look at chinas policy execution in the past six months. Lot that emphasized a these liquidities need to go to the real economy, to those in need rather than speculative positions. What we have seen is that while these liquidity can go to a number of places, the government is also very carefully monitoring whether it is going to speculative activities or the Property Market. The pboc is doing one thing. They are look we sing rick we sing liquidity to the system. They are monitoring the destinations of the liquidity to make sure it is going to productive and constructive sectors. Weve got this 500 billion aid bill passed in the house. Weve got money coming in to various different economies, stimulus measures taking place. Its a demand issue. That is perhaps only going to go once away once the lockdowns come to an end. Its always a tradeoff, isnt it . It should not be. Its about saving lives and the economy, not one of the other. Tai absolutely. The truth is, if you want to save lives, thats the path right now. If you relaxed the lockdown to early, the risk is that you will get a second wave. Frankly, if you get a second wave, the economy is going to suffer. One way or another, the economy is facing a lot of challenges in the next 36 months. Perhaps longer. Its good news that the authorities and governments are able to bring up the spending packages. I know these will create concerns over fiscal deficits and debt in the future. When you are fighting with water, you dont worry about water damage to the property. At least governments and Central Banks are working in tandem to provide the economy, businesses, and household families the support they needed. Rishaad absolutely. Haslinda [inaudible] falling off a cliff, levels we have not seen before. Unprecedented levels of pmi and services. Tai that is largely expected. Look at chinas experience back in february. Maybe go back to 2008. That was more they manufacturing recession rather than a service recession. These levels are largely expected. 20s, teens. Social distancing, stayathome orders basically shut down a significant part of the service sector. Think back to 2008. Youcan still go to a rep could still go to a restaurant or concert or theater. Right now, not of that is happening. From that perspective, these numbers are largely within expectations. How long will it take for these services to gradually resume normality . My view is that this will take months before signs of improvement take place. Haslinda weve heard from various banks and governments saying they will do whatever they can. The approach has been different when it comes to china. This rate cut is pretty gradual compared to what the fed is doing. Is that right . There is debate that china needs to its growth projections. Tai china this years growth protections projections need to be below the singledigit given what we have seen in the First Quarter. If you are looking at 12 for this year, that is not a bad estimate. The rest of the world is contracting very severely. In terms of policy, the pboc is still concerned that another round of stimulus similar to 2008 or 2012 will create another wave of corporate debt. The truth is, the authorities are trying to use the fiscal policy side to support the economy as much as possible. If this drags on for longer, the shock feeding back into the chinese economy, i expect the authorities will have few choices but to relax policy further. Haslinda i want to take a look at the gyrations in the equity market. We have seen how for is down 32 from the high that we saw in may, in march which was 83. When you take a look at september, vix futures are near their highest in march as well. How do you play this . What opportunities do you see amid all this volatility . Tai the equity markets right now are giving uncertainty of duration. In the near term, i think you will still see days were markets are struggling with earnings estimates, shortterm earnings estimates and also the pace of recovery. I would argue that the recovery we saw in april, a lot of that is due to the extremely generous monetary and fiscal policies we just discussed. Investors need estimates for how long this recession is going to last. My recommendation would be, if you are looking to equities, you need to have a longterm projection or perspective in terms of investing equities. You are not there to play tactical applications. You have to think more strategically for the next two or three years where the earnings outlook well iron itself out. I think that is crucial. Thats where sectors like technology, health care, communications, those are more resilient in this pandemic. They are the front runners and favorites. Beyond that, you start to see technology and hardware sectors come back. The important point is the sequencing of sectors rotation as we go from pandemic to recovery to a normalization of the economy over the next two or three years. Thats the longterm perspective. I am p said either you take the long for lash longterm view or day trade. Aheadg to or three years is perhaps the best way to do that. Given this environment where there are so Many Companies unable to give any guidance, its a tough call, isnt it . Tai absolutely. Q1 earnings season. Companies are trying their best to provide indications. No one truly knows the extent of the pandemic and how long this will continue for. Look at the u. K. They suggest some sort of lockdown or stayathome orders could last for the rest of this year. If you look at asia, we have seen in singapore, the Circuit Breaker had to be extended for another month. Governments are taking a more avoidvative approach to overloading their medical systems. All this put together does imply that we need to be a little bit more patient to wait for either medical solutions, a vaccine, rapid testing, a credible care or treatment of this virus. Or a Technology Solution that allows us to go back to our daily lives in a more normal way. Until we are able to identify these medical or Technology Solutions, the market and companies will still be trying as much as they can to anticipate or forecast the earnings which comes with a huge degree of uncertainty. Uncertainty. Thank you so much for your time today. Lets get the first word headlines with Karina Mitchell in new york. Karina the philippines is extending lockdowns of manila and surrounding areas until may 15. The restrictions apply to metro manila and the central and southern parts of the island. Says that theary virus could shrink philippine gdp by as much as 1 this year. Malaysia is also extending its virus lockdown by another two weeks to make 12. While easing restrictions on limited travel. The government says students and workers will be allowed to go home but further nationwide curbs may still be imposed. Section cases have slowed since malaysia limited personal and is effectively. New zealand is preparing to ease lockdown measures starting monday. The finance minister praised the rbnz effort to ease the Economic Impact of the virus. They down plied the idea of monetizing Government Debt to pay for the qe program. The countrys bond market is continuing to function and operate well, he says. Bank ly the reserve debt is continuing to operate. Liquidity levels are good within the banking sector. For now, the approach were taking is right. Karina human the u. S. , the house of representatives has passed a 484 billion coronavirus aid package even with lawmakers at odds over the next rescue bill. The debate from members Wearing Masks and entering the chamber under strict precautions. President trump is expected to sign the legislation which is the fourth virus related package since early last month. Global news, 24 hours a day, on air and on quicktake by bloomberg, powered by more than 2700 journalists and analysts in more than 120 countries. Im Karina Mitchell. This is bloomberg. Rishaad thanks. Still to come, many exclusive directors from the nec and ask goldman president. And the Credit Suisse ceo. This is bloomberg. Haslinda gilead shares dipped after a data leak appeared to show a chinese trial of a covid19 drug had failed. Infections rose at the slowest pace in three weeks. China reported no deaths for a ninth straight day. Lets get to our coanchor yvonne man. The covid19 drug, one of the most closely watched therapies. What did the who findings show . Yvonne thats what the study appeared. The who accidentally publish the study. The drug was not associated with patience Getting Better more quickly. 14 of the patients getting the drug died. Thats compared to 13 to got the standard treatment. Gilead and the scientists working in the trial responded by saying this is not a failure. The resulted not represent the actual results. This is a study that looked at patients with severe cases as well. The company said the study had been stopped early after they could not get enough patience. A study with low employment could lead to results to be inconclusive. Weve seen investors very sensitive to these incremental oforts on any signs unaffected therapy for covid19 year covid19. A drug appeared to have helped a group of patients who are part of a separate trial as well. The company says at this point, they are waiting for the full results from two other larger studies at the end of may. Fewaad weve got a Southeast Asian countries extending their lockdowns. The philippines, lets start with them. The people have to wait until the middle of next month before possibly being able to move around freely. Yvonne thats right. We heard that earlier when they to mayd that lockdown 15. Now the island death toll in the philippines from covid19 has surged nearly fivefold since the start of this month. 462 now confirmed cases. We heard from some conflicting messages this morning. The president said in a statement that the nation is running out of cash to fight the pandemic. The finance secretary had to come on and clarify, saying the government had sufficient cash but they have no authority to spend that much at this point. What the president was alluding to was more of virus funds running low. We are also watching malaysia. They have extended their lockdown until may 12. Easing some restrictions. They are allowing 100,000 students living in dorms and those away from home to travel during the lockdown now. Growth in malaysia has slowed. They are relaxing other types of measures like letting a few Companies Like construction and machinery to operate again with a reduced workforce. The government did not rollout a further extension as a possibility. Japan might actually be extending that golden week holiday. The goal is to lift the lockdown by may 6. The tokyo governor is proposing that companies add Vacation Days with the hope that they could stay at home during those weeks and they can relax those measures soon. Haslinda yvonne man in hong kong. Plenty more to come on the show including our excuse of interview with the former National EconomicCouncil Director and ask goldman president. Thats next. This is bloomberg. Rishaad we are back with bloomberg markets. We look at this debate over the reopening of the u. S. Economy. That rages on. Gary cohn weighed in on bloomberg earlier. I think it is a ushaped recovery. Im trying to foreshadow or think about a ushaped recovery, knowing certain businesses and certain events want come back in that ushaped recovery for some time. Toont think we are going basketball games or baseball games anytime soon. Do i think that basketball might play and baseball might play without fans in the stadiums in a controlled atmosphere . Yes i do. I think we would all enjoy having that entertainment. Thats a different type of environment where youve got 20 or 50,000 people going to a specific event. Commissioner fda drafted the country a roadmap to reopening the economy. It relies heavily on logistics and on compliance. Do you think what scott outlined is a viable approach . I do. Scott during to this quite a bit. I think scott has been very practical. He has tried to be reasonable in what he suggested. I think he is trying to lay out a way that we can try to get back into a more normalized economy as soon as reasonably possible. I think what he has laid out is quite reasonable. What do you think are the biggest obstacles to reopening . You talk about your trepidation and the gut instinct that you have to temper your optimism with really some. What do you think those challenges are . A large amount of people in this country right now are thatng government benefits may be in excess of what they will earn when they go back to work. Thats a whole other conversation we need to have in this country at some point. If you are home doing nothing earning more money than you would if you went back to work, its hard to get those people back to work. Ive heard of many fast food restaurants right now who are doing Curbside Pickup or trying to hire people. I see help wanted signs in the local retail establishments who are doing Curbside Pickup. They cant get people to reengage in the economy. We will need people to reengage and want to go back to work and not rely upon the government handouts. That is number one for me. Number two, we will need a National Feedback loop through testing. Everyone talks about testing. We are going to need to know if we have a sudden outbreak of the virus and the virus reappears, we will need to slow down the economy in certain areas. It will not appear everywhere at once. The better data and more granular dater data we have, the easier it will be to open in some places and close in other places while allowing some places to stay open and continue on their gradual increase of economic activity. Lets turn our attention to Financial Markets. Thats your previous career. What do you think of the most it are the most important lessons to be taken from the panic selling, massive deleveraging, and speed at which prices collapse during the month of march . These are not normal environments. The Financial Markets around the world have actually held up quite well. Weve had relatively good liquidity. Very good price recovery. Everyone that has wanted to get in and out of Financial Markets has been able to do that. One of the unintended consequences we are seeing, i think when we write about this time economically we will talk a lot about this, yes, the banks have been in very good financial positions. The Central Banks around the world have had to provide somes substantially more liquidity to this crisis than any other crisis in the past. Gary cohn, former director of the National Economic council. Quick check of your latest business headlines. Boeing slashes production in half. It announces earnings this week. Final details are still being discussed. The company is under increasing pressure from the collapse in travel. On top of the grounding of the 737 max to max. The collapse of chinas coffee has led to a sizable increase in asian loanloss provisions for Credit Suisse. The bank provided 100 million in marginal loans to markets before accounting fraud allegations triggered a collapse in the stock. Even with these losses, Credit Suisse announced a 38 rise in earnings in asia during and its earnings quarter. Rishaad the tokyo lunch break is upon us. The nikkei down at the moment. 8 10 of 1 . Haslinda it is mainly in the red, investors mulling over a couple things. Stocks with rising evidence of the damage of the pandemic and a slew of disappointing earnings. On top of this disappointment that the virus drug might not be working as people thought. It went badly, the drug company itself rejecting that claim. Of 1 . Down 7 10 pboc cutting the rate for one year to 2. 95 . China yields coming down by four basis points on the back of that. Nikkei 225 down. We are keeping a watch. Earnings do later today due later today. Can qantas maintain profitability . Falling Machine Tools in china on the back of the pandemic. Hang seng down by 6 10 of 1 . Lets look at where we are in terms of the oil market. Look at it go. So much drama in the oil market this week after that stunning drop below zero. Oil now almost back to where it was before. Futures in new york gaining. Wti climbing. Set for a 6 drop on the week though. Demand remains a concern. Fge saying oil demand has been revised down further due to weak Economic Data. Demand expected to fall by 11 Million Barrels a day. Lets get the first word headlines with Karina Mitchell in new york. Karina global virus cases continue to rise, although there are more signs of easing. World leaders are being criticized. Ecb president Christine Lagarde said governments have done too little to stem the virus, and what they have introduced has been too late. U. S. Cases rose at the slowest pace in three weeks. Spain reported the most fatalities in a week. The public must understand understandablys rying to release sasol by societies and perspective economies. Newe is no fasttrack to normal. Karina in the u. S. , fallout is pushing on up limit to the levels last seen since the great depression. Almost 4. 5 million applied for benefits last week, taking the total to more than 26 million cents mid march. The statistics are raising the debate over when and how states might ease the lockdown. Japanese inflation slowed again last month. Something Consumer Spending amid the coronavirus slumping Consumer Spending amid the coronavirus. Cpi on fresh fruit slowing from 6 10 in february with Energy Prices accounting for much of the decline. Inflation has slowed two months running. Even bigger falls seen in the weeks ahead. The coronavirus hit hollywood. Film production collapsed from 1000 shoots in february to zero last month. The l. A. Film office cant say when cameras will start rolling again. One in five jobs is tied to the Entertainment Industry locally. Of scripted tv shows are usually shot in los angeles. Global news 24 hours a day on air and on quicktake on twitter, powered by more than 2700 journalists and analysts in more than 120 countries. Im Karina Mitchell. This is bloomberg. Haslinda after a dramatic two days that saw oil prices plunged below zero for the first time in history, crude continues to claw back losses and is on track to close out the week not far from where it started. Attention is now shifting to output cuts in response to coronavirus lockdowns. Lets bring in senior fellow for energy at the council of foreign relations. She joins us now from new york. Thank you for joining us today. The question really is after all of the gyrations in the oil market, when do you see the market balancing . Will it be july, august, september . I think it will be a long time. We are building up more oil in storage. One of the things that created this Huge Movement we have seen is not just the fact that there was a lot of money in the market, but we have critical locations, one of them being oklahoma, where the futures market is based, a trading hub, running out of storage. You are getting producers being told they have to shut in because there is nowhere to put the oil. I think we are going to start to see that in more Different International locations where we have Oil Producers that have run out of storage and there is no place to go with the oil. Haslinda given where demand and supply is, what is fair value for oil . Amy that is a great question. The market seemed like it wanted to hover between 15 and 20 for brent. But if we get to the end of the june contract on the exchange for west texas intermediate if things do not get resolved with the access to storage in the United States, i think we could see another crazy volatility again. So the market is definitely not out of the woods. Rishaad that is the demand side. Demand has fallen off a cliff here. What is going on in the opec capitals and indeed in moscow as well . What is the thinking behind this . This 10 Million Barrels a day cut comes into effect early next month is nowhere near enough. They need to be doing more. What do you think they are playing at . Amy the first discussions have been, maybe they can afford to wait until may 1, maybe they need to start making cuts right away. The russians have told their companies to cut. I think what you are going to find is the cuts will not come because of a political agreement or a high cost producer. The cuts will come because arerally whole customers going to run out of storage and we get to the point where you cant charter anymore ships to take more oil. You will start to get production drawn back because there is no place to go the oil. Go with the oil. Rishaad we are looking at a massive ended tory massive inventory overhang, which means prices will stay low for a lot longer. Amy yes. We can see that, because in the oil world we like to talk about when was the last time Something Like this happened. You have these giant overhangs, over 500 plus Million Barrels in 2016. You might recall that opec had an agreement with the russians. It took them over two years to work off that surplus inventory. That was at a time when the Global Economy was growing beyond 3. 5 a year on gdp. Now we will be facing global inventories of 700 million, 900 Million Barrels surplus. We will basically be in a recession or possibly in some places a depression. The momentum to work off the inventory will be much slower than it was the first time around. Back in 2016. Haslinda President Trump has played an active role in the oil market. First he pressured opec to bring prices down, then he brokered the deal to bring prices up. What do you make of trumps oil policy . Statesthink the united has a lot of broader interests. Of course there is the politics jobs lost in america. Fundamentally, the white house was concerned about what i call fragile face. You have a lot of countries who were already indebted. We have a crisis in the sovereign credit markets with ecuador, which is an oil producer. You have the state oil company inmexico add 6 billion bond payments due this year. You have countries like oman and are reallyhers that suffering now. If you add that to countries that already had a debt crisis, it is a big burden both on the imf and sovereign credit markets , but also the instability that could be created in these countries. The United States is deeply concerned about that. I think the president was hoping for an agreement amongst producers to stabilize the price would be effective. Tohaad i want to get headlines coming from donald trump at the moment, saying he will be signing the coronavirus stimulus bill at noon on friday. At aboute doing that midnight hong kong time. Amy, very quickly, it seems unprecedented that a u. S. President should ask for Higher Oil Prices . Is that being called for by donald trump because he sees instability in the middle east . Amy absolutely. It is not the first time a president has, behind the scenes, stopped at a low oil prices to stop destabilizing in the international market. The United States is a little bit of the fairytale goldilocks, not too high, not too low. A veryis very clear that low oil price can bring a burden of problems on top of the problems already coming from the pandemic. Amy, thank you very much indeed. Amy myers jaffe from the council on foreign relations. Up, new zealand is looking to pick up the slack in the tourism slump. We hear from the finance minister on the economic challenges from the pandemic and prospects of monetizing Government Debt. That and more. This is bloomberg. Haslinda new zealand will look to pick up the slack with tourism ravaged by the coronavirus. The finance minister spoke to us about the effect of border closures on travel and the wider new zealand economy. We need to be thinking about stimulus and when consumers perhaps are feeling quite gun shy and restricted in what they can actually do and buy, that is probably not the best time. We will continue to look at our options. A couple weeks time needs to be focused on the recovery and our immediate response. Government debt to gdp was under 20 precrisis levels. What is the appetite to push that up . Could it go as much as 50 . This is one of the things new zealand is wellpositioned in terms of recovery, the debt to gdp ratio under 20 is low relative to the rest of the world. Positionlace us in a where we can borrow more and extent that out. We are. The level we reach will become clear when we get to the budget on the 14th of may. I imagine it will continue to be at the very low end of International Comparisons on this. New zealand is a robust economy. Kept ithe reasons we low is because we are susceptible to economic shorts and natural disasters. Say in newi zealand, we save this for a rainy day, and it is pouring outside. We will continue to be careful with our spending. As most countries around the world have done, we put in substantial support packages and there will be more to come. What could the extra Government Support be . The size of the extra Government Support be . Could we safely assume that it would be at least 20 billion . Those are just scenarios the treasury developed as examples of what could happen. Final details of that will be in our budget. As i said before, we were in a strong position in terms of new zealands debt levels. It means we are able to facilitate a kind of fiscal policy and fiscal responses that are needed. Targetsmake sure our continue to support businesses and households to respond. The amounts of money are eye watering compared to what other countries are used to spending, but we are committed to supporting our firms and people. The sums of money will be substantial, but the final details will be put out in three weeks time. Isby articulations, the rbnz on track to earning 30 of new zealands debt by next year. I wonder whether debt monetization is an inevitability at this stage. The governor seems to be open to talking about it. What are your positions and assumptions as to what that means for government spending, what it means for inflation, keyway asset prices kiwi asset prices . At the moment, the bond markets are continuing to operate well in new zealand. Involved inbank is the secondary market. That is continuing to operate. Liquidity levels are good in our banking sector. For now, the approach we are taking is right. Around the world, we are seeing the more direct involvement of Central Banks and bond purchasing. That is suitable for those countries at their particular time. What is clear is what people used to call unconventional Monetary Policy is now front and center of the Monetary Policy of most countries, so therefore it is a dangerous game on either approaches. We are comfortable where we are. From my perspective, we have a good working relationship with our central bank. They are independent in the decisions they make, but clearly monetary and fiscal policy have to be aligned. They have undertaken a number of initiatives to bolster Financial Markets here, but also ensure there is plenty of liquidity in the system. For now, it is working. Rishaad the new zealand finance minister grant robertson. Coming up, surprised west. Ndias benchmark bond yields details are on the way. This is bloomberg. Haslinda lets do a quick check of the latest business headlines. Top indian carrier indigo is rolling back mandatory pay cuts, saying it wont cut salaries this month. The airline announced companywide reductions in march in line with government wishes. Its ceo says all staff will receive full pay, however the executive Committee Salaries will still be cut, but only voluntary. India has been under lockdown since march 26. Analysts are resuming passenger flights to limited destinations in europe, africa, and asia. Only those approved for entry will be allowed on board. Inflight services will be modified to reduce contact. Passengers must wear masks. The flights are aimed at flying out foreign nationals and bringing citizens back home. The backlash against zoom is widening with Top Companies advising against the conferencing app. Daimler, ericsson, and bank of america are those banning zoom because of security concerns. They join tesla and Government Agencies in asia they d that deem zoom to be unsafe. Zoom now claims 300 million daily users. Indias looking at 10year note as it surge after the reserve bank announced plans to redeploy debt operations similar to the feds operation twist. Lets get more from our asia credit reporter in mumbai. Why has the r. B. I. Returned to ins tool that it used last january . The r. B. I. Is redeploying this operation because the nations debt market is showing signs of strain from the government borrowing plan. Traders are worried about issuance because foreign funds have been fleeing. The Worlds Largest democracy is under a lockdown to control the outbreak of coronavirus. After the announcement, we saw Government Bond yields plunging by the most in a month. Just to share some numbers, under the debt operation, the r. B. I. Will be buying 1. 3 billion of longterm debt. That is basically Government Bonds maturing between 2026 and 2030. Still in equal an equal amount. The operation will be conducted on monday to april 27. Templetonfranklin Services Closed fixed income and credit risk funds run by its indian unit. Is this move warranted . Divya the fund is about to close fixed income and credit risk funds, which have combined assets of 4 billion. The fund is going to be shut down because there has been a dramatic fall in liquidity in some segments of the nations Corporate Bond market due to the lockdown of the indian economy. The industry of the nation has been facing highpressure, and hence the indian unit thinks the best way to preserve the value of the investor is to shut down the funds. The credit market in india has been facing a lot of pressure from the past two years, especially after a large shut of banks. The lockdown is hitting the market more severely. Despite all the steps taken by the central bank, shutting down some of the funds shows that more steps are needed by the r. B. I. How do you look at the flipside . We are seeing dollar bonds issued by Indian Companies leading returns in this part of the world. What is going on . Divya that is the irony of the markets. The dollar bonds on the other hand are insured by Indian Companies and leading returns as the nations central bank has ramped up steps to help borrowers. Numbers, the local farms dollar bond returned 5. 2 in april, the most among Major Economies in asia. It exceeds an average of 1. 7 . Thank you for that update. Lets look at where we are in terms of the markets. Mostly red across the board in asia. Investors mull all the earnings coming through. Also the disappointment to do with the coronavirus drug test. The Financial Times claims that was not successful. The hang seng index down by 2 10 of 1 . Kospi down by 4 10 of 1 . Singapore index down by 7 10 of 1 . One outperform or on the index is outperformer is the singapore exchange. Its quarterly report. Rishaad Oil Extending Gains we had seen before, going beyond what we saw the other day when we had negative oil. We are coming back to where we were before. We have the tokyo reopen next. This is bloomberg. Haslinda it is almost 11 00 in singapore. Im haslinda amin. Rishaad we are entering the last hour of the morning session in hong kong. This is a look at our top stories. Asian markets declining amid an uncertain session after reports that a leading coronavirus treatment tested poorly in trials. Oil maintaining its recovery after a wild week. Traders still concerned about the swelling global glut and a lack of storage for crude. As the weekend is nearly upon us, hong kong relaxing some curbs on restaurants. We look at the damage so far due to the shutdown in the pandemic. This is bloomberg markets. Haslinda markets pretty much red across the board. Disappointed as the virus drug test went pretty badly according to a report by the Financial Times. We have a lot of eco data today. U. S. Jobless claims now exceeding 26 million. Trump saying he may extend social distancing measures. Back home in the lion city, it is expecting a deeper contraction. Uncertain outlook for china even as it reopens business. The csi 300 counting down by 4 10 of 1 . Bic in focus. Subsidiesing its ev by 10 . Are tracking those markets in Southeast Asia as well. 1. 2 . Down by pcomp down by 1. 2 . This could weigh further on the economy. Foreign investors selling philippine stocks for a 27th straight session. The benchmark in the lion city down 7 10 of 1 , rish. Rishaad lets quickly look at what we have in prospect for the session in mumbai. Ahead of that, this is what is going on with the Oil Price Recovery gathering momentum with brent crude up 4. 7 . Wti 6. 8 to the upside. All bringing us back to the levels we had at the start of the reeks before those the we eks before those gyrations took oil to negative terrain. India, intel revenues down 1. 3 . Net profit declining nearly 19 . Looking also at some of these other stocks we are watching. Jaguar land rover planning to resume output at the 18th of may. Approving certain debt as well. That is what we have at the moment with regards to the open. 1 down the nifty futures contract. Big moves on the bond market as the r. B. I. Enact operation enacts operation twist. We have the 10 year yield 17 basis points to the downside. Lets head over to new york and have a look at some of the first word news headlines. Karina the philippines is extending the lockdown of manila and surrounding areas until may 15 to halt the spread of coronavirus. Stremme restrictions apply to metro manila. Accounts for much of the countrys technique output. The finance minister says it could shrink philippine gdp. Malaysia is extending its virus lockdown by another two weeks to may 12 while easing restrictions on limited travel. The government says students and workers into what tories will be able to go home in dormitories will be able to go home. New infection cases, slowed cases slowed. Meanwhile, new zealand is preparing to ease lockdown measures starting monday. The finance minister praised the rbnzs efforts to ease the impact of the coronavirus. He told bloomberg the countrys bond market is continuing to function and operate well. Bank isly the reserve involved in the market. Debt is continuing to operate. Liquidity levels are good within the banking sector. So for now the approach we are taking i believe is correct and right. Karina stateside, the house of representatives passed a 484 billion coronavirus aid package. The debate saw members Wearing Masks and entering the chamber under Strict Health precautions. President trump is expected to sign the bill, the fourth virus related spending package sense last since early last month. Global news 24 hours a day on air and on quicktake on twitter, powered by more than 2700 journalists and analysts in more than 120 countries. Mitchell. This is bloomberg. Haslinda lets get more on the days Market Action with our Cross Asset Team editor. Lets start with the mood. So much uncertainty, it is hard to figure out whether we should be upbeat or downbeat. You mentioned the gilead study and report that came out that the news is bad. The company disputed that. Other analysts said you cant tell a lot from what was said. There was preliminary data, the sort of thing. That shows you how nervous the market is, that one study coming could takenarily things down like this. Even though markets generally are well off of those lows and the frightening period, it is definitely still a lot of nerves in the air. Haslinda the s p back to levels we saw in october. Where are we in the Bigger Picture with stocks . Joann we have had this massive rally off of the lows. 22 for the msci world. S p 500 is really at a key resistance level, right around 2800. It is hard to see how stocks can go that much higher without seeing good Economic Data because it is well off those lows, but there is still so much coming out that reminds us we have a lot to get through. Even as investors are trying to look past those big problems right now, it is hard to see too much Going Forward until we dataast that economic rishaad what are the different Asset Classes signaling in terms of this u. S. Economic rebound . Joann that is interesting. We keep looking at the divergence between rates and stocks. Rates are pricing a worse economic scenario. Credit has bounced back. Deutsche bank strategists looked at this in a report yesterday and said they are pricing in manufacturing in the 50s, equities in the 40s, but rates would price in the mid 30s. Looking at Different Things with different Asset Classes. Pretty interesting. Haslinda Cross Asset Team editor joann ossinger in singapore. A forward top diplomat from singapore ways in on the city state weighs in on the city states surge in coronavirus infections. We get his views on escalating tensions between china and the u. S. Rishaad that is coming up later. The chairman of a Hong Kongbased group tells us how virus containment measures are affecting his wideranging businesses from retail to trade. This is bloomberg. Haslinda lets do a quick check of the latest business headlines. Alibaba is touting controls of sales of virus a quitman on its platforms after some claims summer hiking prices. Anyone who tries to dodge the rules and make exaggerated claims will be subjected to so far im substantiated penalties unsubstantiated penalties. Amazon has also been accused of letting sellers dodge prices. Top companies advising against the zoom conferencing app, and bank of america banning staff from using zoom because of secured a concerns. Compan tesla an zoom claims 300 million daily users. Rebates to scale back it offers to buyers of electric cars to encourage manufacturers to concentrate on product development. The finance Ministry Says it will begin with 10 cuts this year followed by 20 next year. Scope of those qualifying for discounts will also be narrowed. Rishaad hong kong will be removing its 50 cap on restaurant Seating Capacity today but will extend social days as a for 14 precautionary measure. Carrie lam says the government is trying to balance Safety Measures and making sure the economy doesnt suffer too much. Lets discuss that with Kampery Group chairman simon wong. Thank you so much for joining us. First it was the protests, now it is this. How bad are things . Simon [laughter] since last june, the business, particularly for the catering business in hong kong, has been greatly affected. Since the end of january because of the chinese new year, there is the outbreak of the covid19. Is affecting not only china, but also hong kong and worldwide. Months, the past few hong kong is suffering a lot from this pandemic. Has done a lot of measures to contain this situation. Et throughwe can g this difficult time. How much of this has also been made worse by people being stubborn and bringing down rents. Evidence of rents coming down and people getting a holiday from paying rent just so they can stay in business and the person will have a tenant at the end of the day. All, the poverty market in Property Market in hong kong is slowing down. When you see the rent of a lot toshops has come down to 25 30 . Some even come down to 40 . It shows the economy is not very promising here. The problem is in the past months we have been affected greatly by the pandemic. There are some cases confirmed with the infection. The government is putting a lot of measures trying to control the spreading of covid19. That said that, while the economy has been greatly affected, the government is launching several measures trying to help the economy, especially for those in seriously affected industries such as the retail industry, the tourism industry. Because i am in the catering business, i have to praise the government to help this industry by rolling out two rounds of relief fund. Particularly, one of the a 100 low to have to 4 millionn, up hong kong dollars for all smds to pay their salaries of employees and pay the rent. Thereh case, i see that could be a slowdown of the Unemployment Rate. February we had a rate for the catering industry of 7. 5 . Then in march, the number has gone up to 8. 6 . I expect that in april the Unemployment Rate would go up as high as 9 . This is rather alarming. The government has to do something on that. Kong f b is the hong sector struggling with supply Chain Disruption . Is the hong kong sector still finding it difficult to get supplies, for instance . , the f b the moment sector, when you talk about the supply chain, it is a factor, but not that serious. Particularly for the food part. Products areod coming from china. Month of thee past beenmic, has in some way fully controlled. There is a lot of transportations and logistics going on between china and hong kong. Receive a lot of trucks delivering food and things to hong kong. Overseas deliveries for example, a shimek from the United States and european a shipment from the United States and European Countries would be a factor because there are delays in arranging the shipment. Also because of the supply chain which has been broken down. Areinda simon, we know you expending in china. During the selloff outbreak, the chinese economy was booming. Now during this pandemic china is slowing down. Consumer behaviors may have changed. Simon you are correct to say that. Thatlooking forward to see there will be more opportunities in the near future after the pandemic situation, especially the greater bay area. The business in that area is s till quite well. Although the whole region has been affected by the pandemic. Company, because we also supply coffee and tea for the whole of china, particularly in the southern part of china, and of our region is one main markets. In the next coming year, we have byns to of invest in the gba expanding our production doing marketing mark in order to catch marketing work in order to catch the opportunity. Rishaad thank you so much for joining us, simon wong of Kampery Group talking about the f b situation in hong kong. Takeda plans to sell its Health Care Consumer unit. They are saying the unit would be valued at Something Like ¥400 billion. That is about 3. 7 billion u. S. Dollars. That Consumer Health care unit is also garnering some interest from ee funds. Takeda planning to sell its Consumer Health care unit, thinking it being worth around 3. 7 billion u. S. Dollars. We can get a share price because we are in the lunch break still in tokyo. The open is in about 10 minutes. Shares are already up 1. 7 so far today. Coming up, weve got more lockdown extension across asia. Toonavirus treatment is set said to disappoint. Details are ahead. This is bloomberg. Shares we saw gilead with sawing after whipsawing after a datalink showed a trial of its covid19 drug failed. China reported no deaths for a ninth straight day. Lets get to our coanchor yvonne man. Gileads drug is called remdesivir, one of the closely watched therapies. It. Ad the w. H. O. Look at what was their findings . Yvonne the study looked at patients with severe cases. Basically the drug was not associated with patients Getting Better more quickly. The company was quick to respond. Gilead and the scientists working on it responded by saying this is not an outright failure, that the results did not fairly represent the outcome and the study was stopped early after not enough patients could be found. We know the study enrollment could lead results to be inconclusive. We have seen investors very sensitive to the report on remdesivir. It was just a week ago when a new chicago report showed it helped a group of patients in a separate trial and the stock was flying. We have seen the stock move in all different directions. The company waiting for the results of two larger studies at the end of may. Haslinda more Southeast Asian countries are extending their lockdowns. Lets start with the philippines. Yvonne they extended the lockdown to may 15 after the philippines death toll surged nearly five old five fold since the start of the month. The number of confirmed cases tripled to nearly 7000. We saw conflicting statements with president duterte saying the nation is running out of cash to fight the pandemic. Then the finance secretary had to clarify the government has sufficient cash, the president was referring to virus funds that were running low. When it comes to the cash the government has, there is not a lot of authority to spend that much. Malaysia extending its lockdown until may 12 while easing restrictions, allowing students living in dorms to travel during the lockdown. The growth in human infections in malaysia has slowed. The government is slowly relaxing these measures. Allowingupper are the operation of construction machinery. The government at this point not ruling out a further extension. Our markets coanchor yvonne man. Another look at equities in china as we had towards the lunch break in shanghai. This is what it looks like. A move to the downside. Economists suggesting Economic Growth will slide below 2 for the whole of this year. China addressing liquidity issues by cutting another policy rate. This is the targeted mediumterm loan facility. These are some of the stocks on the move as we had toured that lunch break head toward that lunch break in shanghai. There you have it. 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. Were looking at live pictures on friday. Down. 8 of 1 . Developer saying its ditching its quarterly eporting, and matheson, a wideranging of businesses from construction to property to hotels, its rate has been cut to cell from mutual by goldman. 45. To headquartered thats a drop of 10 . Of 1 , pretty much in line with the rest of the region. Friday here ff in asia. Headlines coming to you from york. Thank you so much. We begin in japan. Inflation there slowed last month because of the economy saying the prospects are the worst since the financial crisis. The situation is both xtremely severe and worsening rapidly as it cuts forecast for a second straight month. Production, and jobs. Earnings they will discuss unlimited bond purchases when it meets monday. Nwhile, always has cut has pushed for changes, being careful not to single out china which is australia biggest trading partner. He first case of covid19 was centered in a wet market in the capital city of wuhan province. We have to see, if we then we have to understand how do we isolate them from a traditional wet market. Very important particularly in developing nations in providing food security. Pushing u. S. Unemployment to levels last seen in the s, ression of the 1930 with one in six americans now out of work. 4. 5 Million People applied for benefits last eek, taking total to more than 26 million since mid march. He bleak statistics are raising debates on how and when states can ease the lockdowns of business and life. Nal Oil Continues its recovery from dramatic selloff although the global versupply still sees huge amounts of crude looking for a home. Futures gained 20 here in new york with u. S. At its lowest level since july. Ome opec nations have instigated output curves. Kuwait says its rolling back on production. Global news 24 hours a day by bloomberg powered y more than 2,700 journalists and analysts in more than 120 countries. This is bloomberg. Thanks. Lets get to break news that had about 10 minutes ago. Day price there for the company. 2. 7 . Price up we are already up 1 point this announcement. Its going to sell its healthcare division. Its a deal that could be worth 3. 7 u. S. Billion dollars. Of this according to the nikkei. Coming interest through from other companies. Tasha pharmaceuticals is one f those cited and weve also got some private equity funds indicating interest in takeda hopes h will improve its financial position. To contact a spokesman but they declined to contact on this nikkei report. Position kind of with that break news coming through. Lets have a look at what throughoutpening as we head for the open in india, too. Whats eck in with going on with the hang seng. The currently down off low of the day. The compos sit one of the the osers 1. 1 down as philippines plan to extend its lockdown of the manila surrounding areas there as well for a few may 15. Til actually the singapore futures contract suggesting a deep the start there. 8 down for that particular contract, and seeing a little bit of strength, it moves to the upside against its american. 75 or you by down say the dollar is by 3 4 of 1 . Singapore was initially how to contain the damage. Over 11,000 cases the most infections in Southeast Asia. The crisis highlights the between the policy responses of asian and western governments. A s bring in distinguished fellow from Institute Search here in the city. Good to have you with us. Singapore. Of it dropped the ball and overlooked a possible hotspot. Youre absolutely right. Could have done a much etter job in handling the challenge of Foreign Workers dormitories. As you know, of the 11,000 cases in singapore over cases come from the Foreign Workers in dormitories. Look, look at the ocal citizens, the numbers seem to be under control, its around a thousand. But we could have done a better job in handling the workers in eign dormitories. Let me just add, at the same has been apore quite noble in its response n giving assurances to the families of these Foreign Workers in bangladesh and ndia and elsewhere, that well take care of them. Thats a very, very generous esture on the part of singapore, which i think has underappreciated. Do you think there has been a flipflopping of policies. Went from needing to wear masks only when youre ill o masks being compulsory, not wanting to close closing then schools, and has there been a flipflop of policies . I think its important to that were dealing here with an unusually difficult virus. It is not performing in the ay that the previous viruses have done so, which infectingey start people, only a person who is infected displays the you could, in a sense, anticipate where the infections are going to from. Weve had a lot of transmissions via cases and they continue unexpected. Think when the government changes its response, i think its right for it to responses when it gets new information and new want to i fact, how one key badly singapore has done in some areas, its true, but give you one complete example to illustrate the difference, he total number of deaths singapore has had is 12. And in the United States, ratio of he same deaths to population that singapore has had, it would 662 deaths instead of 50,000 deaths. Now, we have done something quite remarkable in ensuring that the people who suffer from this, we try to provide much assistance as possible. So there are two sides of we singapore story, and should acknowledge both sides of it. Overcome try to , is pandemic, thistic anting to blame china, how will this play out in terms of relations between the two . Think its actually, ts extremely sad to see hat covid19 has actually aggravated the political contest between u. S. And china. Just read a book has china won that talks about the deep Structural Forces that con divinityis the u. S. And china. I think if we were we could be f the most intelligence species on planet earth which is what human beings supposed to be, clearly since the u. S. And china are common enemy, an enemy, covid19, which proven to be far more isastrous and far more damaging than anybody thought even two or three months ago, the logical to be for sponse the u. S. And china to come and Work Together to deal a common enemy, and that will be the rational response. Going to go for lawsuits and so on and so forth, as know viruses can anywhere. At the same time, viruses dont carry passports. Here is no such thing as a national virus. It becomes any virus is a global virus. We need is a Global Solution to a global problem. In the case of filing a lawsuit by the state of missouri, i would say its ery unwise because that will leave the state of new suits from countries saying that the whole world suffered. Crises are global like this, that we should focus on dealing with the risis and not blaming inting or each other. Is a fight toward hegemony, global hegemony, that any excuse can be used to trigger a competition here as well. That what were facing . I think the fact is, this is what i document in my book, whenever the worlds two power, which today is china, is about to overtake the worlds number is power, which today the United States of merica, you always see rising political tensions. So i think there is nothing avoid the o political competition and china u. S. Thousand s two years of at the same they face a common enemy, i think this logical for nd the world to pass both u. S. And china to press the button. Im not saying press the pause button for six months, year, and lets deal with this common enemy of together. And work let me give you some examples. If President Trump, for example, were to announce oday that hes going to lift all tariffs on chinese so ucts, immediately, that when were in the post ame nail world, the Global Economy will bounce back much quicker. There are steps we can take to boost competition in the future and the markets will ifpond response activity the u. S. And china show signs of cooperating rather each ompeting with other against covid19. Kishore, to pick up on something you were entioning earlier, you talked about Good Governance in asia. You actually included china in that. People a lot of would take exception to that. Yes, of course they because, you know, in framework, the necessary condition of good democracy. Is and clearly china, does not have a democracy. By definition, under the western definition, china governance good because it doesnt have a democracy. N fact, most social scientists would measure Good Governance in terms of hether or not youre succeeding in improving the wellbeing of your people, look at the Overall Record of the last years, no government has done as good job as china has in improving the wellbeing of its people and, in fact, the livelihood of the Chinese People have done better in 40 years than they have in the past 4,000 years. Now, its a sad contrast, statistic, the united major is the only developed country that the average income of the bottom 50 , has gone down over a 30year period, and this is reason why i has china won, the United States should focus now on wellbeing of its people rather than engage in a geopolitical contest against china. So if youre an objective social scientist and you like e things reduction of poverty, rowth, improvement in health, improvement by all of these measurements, an good lifies governance. Me just jump in. Its not just the u. S. Taking issue with china on pandemic. Of the its also, europe and the uk. Do you think governments now rethink whether or not to use huawei echnology, because of the rising distrust in china . Youre i mean, absolutely right. Distrust of ing china. Certainly in the case of the United States. Now out of 10 americans see china as a threat. I was quite shocked to see that figure. Right. re in europe or so, sentiments towards china has changed. Course, you know, we live in a very dark moment everyone is frightened about the future. See, and this is what i speak about in the ost covid19 world, after weve overcome covid19, and is ome back, everybody going to think very hard to t what we can do restore the world where we sed to be in the past, and there is a very simple choice that the world has to make make at that point in time. Are you more likely to achieve where you were in the past by working with china, or working against china i suspect were on the same boat and we have to work with china. Great insights, thank you. Still to come, well wrap up some of the top earning results from the week. Stay with us, this is bloomberg. Bloom burke markets as we this is bloomberg markets. Lets get a summary and also others. Ead to what weve k at seen so far. Decent had some names this morning. Orders came out. With the exception of a few being the them singapore exchange, whats ostly been clear is weve een a drop in full year profits, quarterly profits, rather. Thats been consistent as over what weve seen the last 24 hours. So far, since the start of reporting season its a very small sample size. Weve had about 13 of companies on the asia that have reported earnings, its been so bad, theme has already emerged. A lot of companies are estimates. Tech, consumer and resources that are leading negative revenue. Its been, its been its poorer, lets put it that way. Dave, looking ahead, its be a busy week. Busy, and what do you see playing out . Week, if the calendar doesnt change much, its probably going to the absolute busiest week for earnings in the asia pacific. Ver 700 companies are reporting results. With varying degrees of focus. Some companies are reporting. Most companies are reporting First Quarter earnings. Wrapping up its fiscal year. Without being said its the same calendar quarter where you see the pain pretty much. Hsbc, a few big names across china, a lot of oil names reporting earnings. More on the upside of the oil prices h where they are, if there is any value that will be interesting to see plus a china airlines, southern, a a. To erms of what trends i e, i just note that would be watching for any yields. On dividend dividends, because right now dividend ook at yields they are pretty much compared to treasuries, which are very terms of yield there, the question is, can i trust paper or will Companies Hold money close the e chest given physical time . Markets in hong kong. Plenty more to come. More on the race for a covid19 vaccine as the of global l infections exceeds 2. 7 million. This is bloomberg. Million. This is bloomberg. The race is on to find a vaccine for the current a promising new drug has performed poorly in tests. University s professor told us when some ready. Ents may be right now, vaccine in phase one. These types of studies are really looking at the safety we whether or not actually see a response. So does the immune system respond to the vaccine . Thats not testing efficacy, meaning if it effective from preventing the virus from occurring if we have a vaccine. Those studies connect and importantly, thats why were continuing to roject time lines of at east 12 if not 18 months away. Dr. Farley, the raging debate this morning is in house. Eel youre one of the nations la the steph fear of medical experts is a virusary bout of this down the road. The likelihood and how it will demonstrate if we get a virus come or ember or december even into 2021. Yes, certainly. Looking at estimates of antibodies that are merging that suggests that 5 of the population, for the data out of seattle, and the Washington State that suggests that 5 population may have been exposed and recovered. Question obviously, do those antibodies lead to any form of attenuation or protection in the future . The second question is, if that is so that still leaves 95 of the population who immunologically naive, meaning no prior exposure or recovery. Roll er words, if we back social distancing too fast we continue to propagate virus in the community. Subsequently leads us into the season of cold n flu which is, like you said, september on, in the Northern Hemisphere that then we also get other respiratory viruses merging, such as influenza, it complicates our scenario as mentioned by the cdc redfield, because then clean anythings are seeing patients with respiratory ymptoms and scratching their heads saying is this flu . Covid19 . We know her how to treat flu. Obviously we know how to iagnose it and prevent complications in most circumstances. Not all. Yet, transmission parameters and dynamics do affect the way we may respond. Again, were concerned about respurs tore viruses occurring in the same season. Exactly that we dont anticipate coronavirus o return in the fall, we absolutely expect a second wave of infections to occur. It aroundady seen the world in various sites reemerged. Hopkins professor jason farley, from the Bloomberg School of public michael pported by bloomberg, founder of bloomberg lp as well as philanthropies. Lets have a look at whats over in mumbai. Were 1. 2 down. In fact, we extended those 1. 6 to the downside. Losses deep. Point out t whats going on with regards 10year nd market, yield yielding 6. 05 . The reserve bank is running out. F bonds to lend the country is on lockdown have parked about rupees, doingn that in return for bonds. The thing is the situation as asked the rbi to do something about whats going on. They are looking at another edition of operation twist. Pera. The following is a paid presentation brought to you by rare collectibles tv. 15 seconds, guidance is internal. 12, 11, 10, 9, the sequence starts. 2, one. 3, zero. All engines running. We have left off. Lift off apollo 11