Medical team to north korea. We are pulling together the latest claims. Shery lets get you started with how markets are trading. U. S. Futures are extending gains we saw on friday. Last week we saw Downside Pressure across the markets. The s p 500 was led higher by consumer stocks. President trump signing the 484 billion spending package including money for small businesses. Congress has doled out 3 trillion in that package. Upsideinue to see the with u. S. Futures. Joining the intel ranks of those companies that are now opting to withdraw fullyear guidance. There seeing oil falling as session begins in asia, after the wti hovered around 17 a barrel. And we are going towards the opec output cuts that begin may 1. It is all about the latest headlines on coronavirus cases around the world. They are approaching 3 million according to Data Collected by Johns Hopkins and bloomberg. Has the state saying it death rates have continued to fall and now at the fewest in a month. This as Governor Cuomo sketched out a phased in reopening plan. Ros krasny is joining us. We continue to see more and more states starting the work of states starting the work of reopening their economies. Ros that is right. If you look across the states, you get 50 different ideas of what is going on. There is some states like oklahoma, georgia that are pressing ahead quickly. Others, even hardhit ones like new york, taking baby steps. Andrew cuomo likes what he has seen. Steps. Aking small in california there are interesting images of people on the beach is this weekend. Stepbystep even states quite reluctant to commit to anything like maryland are taking a lunch , at least baby steps. Taking the plunge, at least baby steps. Haidi there is lots of questions about how this massive stimulus is going to be funded. We heard from Stephen Mnuchin about the issue of how the deficit will be addressed over time . Ros yes. Republicans are very worried or say they are about deficit spending. Not like the case with the coronavirus pandemic they have much choice, but mnuchin and kevin hassett, economic advisor, used to run the council of economic advisers, started talking about that. They kicked it down the road and say we are further along with the virus. We wont be doing anything for the time being. Hassetttruck a really struck a hawkish note. Need to think of the next phase of stimulus and get ahead of the curve on death. Dont know what they are going to do given the pressing need first a need for spending, but seems like they will pump as much money as possible. After four stimulus packages, maybe for the next phase there will be a worry about how do you pay for it down the road. About it being a longterm drag on growth. Our bloomberg editor. Lets get a first word news headlines. Karina european governments are moving towards lifting lockdowns as there is a slowing of fatalities. Spain, italy and france will announce a gradual reopening after they all recorded the smallest rise in deaths in three weeks. The e. U. Has reported 100,000 fatalities at his bracing for the deepest recession in living memory. Japan will extend its virus led state of emergency beyond early may. They admit it may not be possible to lift restrictions as planned on may 6. Tokyo had a second daily decline on monday, the first time in 13 days the number is below 100. It is unclear how long any would last. China is pledging to support its virus weakened economy. The pboc says fundamentals are unchanged and they will make Funds Available for businesses hit by the pandemic. They have pledged the first Economic Contraction in decades. Leading Central Banks meet this week with policymakers under growing pressure to support their economies. The fed, the bank of japan and ecb cover half of global output and all have pledged trillions of dollars. Financial markets are in turmoil. 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. I am karina mitchell. This is bloomberg. Shery still ahead we speak to an australian startup as they work to provide direct shipments of seafood to china without passing through any wet markets. The ceo joins us. Our other guest tells us why she thinks the Economic Outlook will get worse before it gets better. This is bloomberg. We have breaking news, surprise Earnings Release from National Australia bank. They were supposed to announce may 7. It is a massive decline, first half cash earnings excluding large items, the klein of 20 sit decline of 26 . Cash profit 1. 44 billion australian. It was materially impacted by the covid19 pandemic. They have approved 70,000 mortgage deferrals. The net income, 1. 3 billion australian and saying the covid19 impact at a group level. The bad debt charges have risen to 159 , 1. 16 billion. They expect to make an announcement in the asx to do with the proposed Equity Capital raising, which will a Share Purchase Plan which will be halted in terms of trading for that and when that announcement is to come. To build up trying a much of a fortress as they contend with the impact of covid19. Almost 25 decline in earnings in the cash half. Shery a lot for investors to consider with earnings season. There is a new week with a continuing battle against the coronavirus. Major decisions pending for top banks. We are awaiting gdp numbers, in the middle of earnings season. Joining us now is wealth enhancement senior vp nicole webb. We have last week the global rally being overshadowed by weak ego data across the board. Will we have support given the trio bank trio of Bank Decisions and investors waiting for more support . Much arehank you so having me. This is nothing like the benign markets of months past. The nifty thing about volatility correlated. It remains high when it is high. We have to look at where we started in february in the u. S. Market. This appeared to be a shortterm impact to supply and demand. Changes on growth and possibility for 2020. Now we are looking at a multiquarter versus multimonth issue in supply, demand, profitability, growth. All of those are fundamental changes to the risk premium. As that gets higher and higher, dont know that a coordinated effort is enough to help or slow down the amount of volatility. This changes stems from the resurgence. , if it is likely there is a resurgence in the fall additional news came tout multimonth extensions distancing and closures. And is it possible the u. S. Will thento a recession before election this november and do the markets need to start pricing in a change in leadership . Could there be more impacts to profitability and expectation . We say volatility is high, and high. Likely to remain investors have to hold on. [indiscernible] yeah. Mean, a really difficult and challenging year for investors to try to gauge what happens in the next few months given the political risk. We had intel being one of the latest companies to give up on trying to forecast what the full year guidance will be. As an analyst, what do you take gauge at in order to where you want to invest and park your money . Nicole we are experiencing something we have never seen before. You cant say you know what guidance to turn to. If there is no informed way of making the decisions, what we are seeing is investors and analysts are starting to act more on bias us. If you read through the information, looking at this selloff versus others, the polarization between market optimists and pessimists. Where we are looking at is what country cannot can we look to invest in . We have gotten u. S. Centric. It had liquidity and strength going into the stupid into this to support this. Backve trimmed dramatically on small caps exposure because the volatility is more pronounced. As the saying goes, waves rock small ships. Those are the tactical shifts we are looking at this time. Other sectors that we are haidi at the moment because continue. Give us your sector picks. Nicole the other sectors we are interested in is real estate. People start to look at me like i am crazy. How can we have high unemployment numbers and look at real estate . We need to change our thought process on what real estate is. It is not commercial and strip malls. It is data centers, cloud storage, distributions, warehouses and the longterm land leases under the cell phone towers are part of the real estate sector here. All emissions are really valuations are really attractive and there will be a tailwind for the low Interest Rates as we look to the side. I know you have heard this before and you will hear it as long as we remain distanced, but Consumer Staples are doing well. This is the investors play to say i am not going out to live my normal life, but there are things around my house i am dependent on and forever will be whether it is living my life in more quarantine or making a leap of faith. And then your chocolate and alcohol is very strong as well. Haidi we always need wine and chocolate. One of the things that was interesting, the timing of what each persons portfolio looks like, one of your clients aged 50 is there a sense depending on where you are, you could afford to be more aggressive . He said he might not feel another might not see another selloff in the next 10 years. Nicole bear markets return stocks to the rightful owners. Is then stocks longterm answer. Many clients have asked if this is the last real buying opportunity for me, before my future retirement. Sitting there is a 50 euros going, i believe market valuations were stretched three short months ago but perhaps there is a tailwind. When we look at the argument for the bull market, whether a ways out, sooner rather than later, earning bounces back. Whether six months or 12 months out, the recovery is supercharged by low Interest Rates, pentup demand by consumers. That goes back to my earlier comment, which is it appears many investors feel they are in control of the markets. They understand why the market is down. I have not left my house, i am not driving my car. I am not booking a flight. As soon as this is over i will go back to the normal life activities. Vdont believe this is a shaped recovery anymore. It will take a few months. People want to go back to living their normal lives. Haidi very interesting. It will be very interesting to see the suppressed demand returning. We have to leave it there. The Wealth Enhancement Group senior vp nicole webb. Breaking news out of national of newsa bank, a flow including unexpected earnings being released over a week before the week expected them. Also the raising of 3. 5 billion in a share sale. Person announcing toplevel personnel changes. Cell line of the sale, earnings close to 25 . We are getting more lines including the 20 cut to seniorlevel remuneration. The ceo directed and the chair seeing a reduction by 20 . They are expected also to increase the ct one ratio. Reporting that jump of bad debt as well. Heavy impact of covid19. The bad debt including an 800 million for potential impact. In addition to the earnings being disappointing, shares are halted until wednesday pending details of this institutional and Share Purchase Plan. Coming up, where is kim jongun . Satellite images showing a train similar to the one used by the leader passing by a coastal compound. This is bloomberg. Check. Lets get a quick Deutsche Bank said firstquarter results were above market expectations. In a statement, they said the group profit before tax came in at 610 Million Euros with revenue is expected to be around 6. 4 billion euros compared to the estimate of 5. 7 billion euros. Customers of the bank of china i have china have taken heavy losses on the investment in oil. It was linked to u. S. Crude futures, surged more than a 10 fold to 1 billion. Protections of losses have come in from local branches across china. It is not final and could change. Jpmorgan is looking to help Bluechip Companies untethered trillions of dollars. Thats untether trillions of dollars. Investment trade companies. The multinational will be able to keepy earliers money flowing. The mystery of the whereabouts of north Korean Leader kim jongun have been growing over the weekend. Multiple contradictory reports say he is clinging to life or alive and well. Stephen engle has been tracking all of the developments. Stephen more speculation this is said to be on well. Others said he was in a vegetative state and he was also seeing fidgeting seeing visiting chinese medical teams. I dont want to give individual cretins to any report because there is so many contradictory reports. The health of any Senior Leader in north korea is a closely guarded secret. You cant call up the office and get an update. You also see where there is smoke, there may be fire. You have to see what holds water and what does not. Kim has not been seen in state media in two weeks. He missed his grandfathers birthday celebration, which is a big star on the calendar. That caused speculation like in 2014 when he was absent for six weeks and showed up later with a limp. He had speculative Ankle Surgery or doubt or gout. There is so much speculation but we have to take these reports with a grain of salt. A representative from the south korean government says he is alive and well and staying in a coastal compound since april 13 noh, according to them, suspicious movements detected. We have satellite imagery from the west side 38 north which tracks north korean developments. It shows kim or a train that looked at the special train he travels in, was spotted near this coastal town which is where the majority of their muscle missile tests have been. South korean media speculation thinks another missile test could be imminent. Lots of speculation. Shery many analysts think the north korean communist regime would not collapse if kim jongun was not there. What are we thinking of succession . Stephen the name that comes to the top is the 31yearold younger sister of kim jongun. She is one of her brothers closest aides and has risen in the ranks of his inner circle after the failed trumpkim summit. She was reinstated as an alternative Bureau Member and is really the only other member of the kim dynasty with anything approaching to real power. There was the only surviving brother of kim jongun he is long considered a longshot because he is not known to hold any position of power and is known for his interest in guitars and not politics. There is the son of kim jonguns halfbrother, his own child and the only surviving child of the founder of the country. All speculative at this point area at this point. Haidi Stephen Engle with the latest on the ministry. The boj could be set to allow unlimited bond buying. We will get a preview next. 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. Karina you are watching daybreak australia. The number of coronavirus cases around the world is approaching 3 million. More than 200,000 people have died so far with the u. S. Suffering 53,000 fatalities. New york state deaths fell to the lowest in nearly a month and andrew cuomo said the worst point has passed. India will let small Neighborhood Stores reopen gradually a month into a nationwide lockdown. Individual shops can have half of their normal staff and all must wear face masks. The order says outside marketplaces and shopping malls will remain closed until may 3. Egypt has appealed for help from the imf to the confidence amid the fallout from the coronavirus. In an advanced stage and involve the use of rapid financing instruments that have a standby agreement. The website says there are flexible resources without the stream connected to a full loan program. Separatist in yemen have declared selfrule. The announcement is a significant setback for riyadhs efforts to broker a deal between separatists and the internationally recognized government there. Tens of thousands have been killed since the start of the civil war. 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. I am karina mitchell. This is bloomberg. Lets take a look at markets. The Asian Session starting out. U. S. Futures showing weakness today. Investors were waiting optimism hingaiting optimism weig optimism. Italy also easing more of its restrictions as well but we are seeing tepid trading when it comes to s p and many futures. Wti and brent, we are watching oil as brent sees a fourth day of gains. Began producing Oil Production earlier in the week ahead of the start of the date ofs cut starting may 1. We are watching nikkei futures here it asian futures are higher as we look to wall street ending last week on a positive note. Central banks, the fed and ecb, before that, the bank of japan today. Off thehe boj is taking big week. Policymakers are expected to take steps to contain the financial and economic damage caused by the coronavirus. Kathleen hays is here with what we might see. Irst up is the boj if the bank of japan moves towards a limited bond buying, how much will that help the economy . Bigleen that will be the question because we learned from nikkei news probably what they are debating going into this meeting is a couple of things. This pledge for unlimited doubled Corporate Bond purchases. Surveyed inmists tokyo said yes, you will see more steps. Bnp paribas was reported as saying what they have to do is avoid looking less aggressive than the fed and european Central Banks. If that happens, if the others are more stimulative, this could make the yen stronger. Even though the Federal Reserve has boosted its bond buying and the size of its Balance Sheet, the boj bond buying is the equivalent of 110 of Gross Domestic Product of japan. Percent compared to gdp, they are more aggressive than the fed and the ecb. Statements from the boj warned of investment losses. Potentially things are ok but clearly maintaining Financial Stability is very important to the boj. Haidi the Balance Sheet is the equivalent of more than 100 of japans gdp. We keep asking this question what more is achieved by buying more . Kathleen that is the question. Some people think the boj could be happy to drop its its pledge to get more bond purchases made. Some people are saying some tapering. They can make ¥80 trillion over a year and right now that bond buying is ¥14 trillion. I spoke to a former boj economist who said this is a communication strategy. It is rhetoric. It will not change anything in the economy. Told meortfolio manager this might not have much impact on markets. They are seeing Rising Economic output probably squashed. The growth forecast. Lets look at another chart. The year ended on a sour note for japan in terms of the economy down 7 yearoveryear. There was the consumption tax hike. The virus hitting. Some people are saying the drop could be 30 , return to deflation, worrisome to the boj. Policy editor Kathleen Hays with the preview of the bank of japan. We will get more on what the Japanese Central bank and do next. We will be speaking with Nicholas Smith and the Keio University professor later on. This is bloomberg. Shery boeing is walking away from its proposed 4 billion merger with environ. The partnership would have given boeing a range of smaller single aisle jets to compete against airbus. This will be this will weaken boeing. Airbus is not without problems and is warning staff it is leaking money and meets urgent needs urgent cost cuts. A letter obtained by bloomberg said a Production Cut of up to one third is already announced and could not be the worst case scenario. Airbus is reassessing the longterm outlook for aviation. Virgin atlantic is said to be considering a range of rescue plans including tapping u. K. Government loans. Talks are in the early stages although Richard Bransons request for funding has left met with government resistance. Offer any it will not assistance and now Virgin Atlantic is facing insolvency. Bank National Australia plans to raise 2. 2 billion u. S. , prompting the lender to slash its dividends. Is our editor. Great to have you. This was a surprise on so many fronts. In terms of the expectations, we were not going to get earnings today. That is right. Big announcement that has taken everybody by surprise. They were not expected to announce first half earnings until next week. Breaking down the news, we got 3 billion australian institutional placement, 14 a share. Friday,ount writing that will be followed up by 15 shareholders to raise 500 million australian. The funds will be used to shore up the banks Balance Sheet with the aim of taking capital to 11. 2 . It is the biggest thing announced by Australian Companies to date as they battle the australian the corporate coronavirus outbreak. Fallen 51 ofit has year on year. Dividend pay a . 30 down from . 83 last year. Shery we saw them charging off more than 1 billion australian with the issues so far what is the threat of more miss so far. What is the threat of more misconduct deals . Ed one of the reports has been materially impacted by the coronavirus. Earnings have been impacted by higher credit impairment charges and losses on assets and treasury. That is taking collected visions of 2. 1 australian 2. 1 billion australian. The chairman and directors will take 20 pay cuts. The ceo will take a 20 pay cut for the second half and the Leadership Team will go short term rewards for the year. Haidi what have we heard in terms of the impact of covid19 . The impact on bad loans . Ed we are working our way through the statement you one thing they say is they join the chorus call of economists expecting recession and higher unemployment in 2020 and 2021. We hadwe had the philip lowe expecting a 10 fall in gdp and Unemployment Rate doubling to 10 this year. That is reflected in the out look today. Johnson, bloombergs managing editor for australia and new zealand. Canionaire investor carl i is usually zigging when others zag. Erik schatzker asked how he has been putting money to work the last several weeks. We keep it pretty well hedged. Hedges could not some money. Losing we still have quite a bit. I am not crying about it. Ive always kept a large amount for ah, Cash Equivalents stormy day. I think this will be very Interesting Times ahead. While you have to be careful in this market, and we can discuss that, i think there will also be some good opportunities. I cant talk about it shortterm. Shortterm you may have some big downdraft. That is where i am with that. Foundre else have you opportunities to make money in this environment . I gather you bought some i want you to tell me about that. Item. T is a much smaller oil we are down to we own a refinery. We own what i think is a good refinery. We own 70 of it. When oil started sinking like that, i called them up. Usually i dont recommend it. I say we have got storage space, everybody is going crazy for storage space. They said it is hard to get the trade through in whatever. They did a good job because we set up an account. Believe it or not, you have never seen this, and we made some money relatively speaking, nothing like cmbx we are making money on, but it was fascinating. You will never see that began in history i dont believe where they have to pay you to take their oil which was up to 35 a barrel. It was an interesting point in history. If you do it again, you have got to look at risk reward. They have funds that do the futures and the same thing again in 2008 or any of these times before the market really breaks. Market in the future the oil gained or any commodity is not for the faint of heart. Attention to our the coronavirus. It is wreaking havoc. I mentioned occidental petroleum. The company is so cashstrapped, it is paying Warren Buffett in stock effectively for the Financing Deal you opposed. That must make you mad. I have said it and i wont belabor it anymore. The board has changed. We have three people on the board. I cant speak about it really. I disagree a little bit with what you are saying, cashstrapped. I think occidental has a lot of great assets. Being that said, i cant argue with you it was one of the most ridiculous deals i have ever seen. I said that publicly, but those days are over. We are now at ford. We are working together. Hopefully, i think, there are things where i think the shareholders will eventually be rewarded their i think. There is rewards that you favor there. Investor carl icahn in that exclusive interview. Wetlands in the seafood supply chain. The founder and started of the start of australian two hands is talking about how he is avoiding the wet markets. This is bloomberg. Haidi we have controversy over the role went markets may have played in the origin of the coronavirus. Our next guest is using blockchain and a Australian Company two hands is shipping from australia to china without stopping at those markets. Joining us to explain is the. Ounder and ceo great to have you. Tell me who your clients are in china and what kind of business you are seeing with the economy, hotels, restaurants gradually reopening . They are only gradually reopening. The lower and middle and restaurants are very impacted. They only got half of the capacity in the restaurants. The highend is still slow to take off. We are hearing orders will start coming suddenly in another month. The second half of this year weddings will start taking off and orders will come through then. It has been five or six months the start to where things start to move in china. Tell us about the nature of your app and how this technology helps. There is ongoing controversy and tension between australia and china and other nations about the role the wildlife wet markets had to play with the spreading of the coronavirus. Is there concern over regular wet markets and our people concerned about the origins of food safety and being able to track where they are coming from and the background of where they are getting their food from . Greg there is a Global Expert on food supply chains, david hughes from london imperial college. He said here is another coronavirus issue. Markets inonal wet china and asia will take a while to lose its market share especially from Fresh Produce and meat. What is clear in chinas coronavirus was the traditional wet markets. That is what we are seeing. What we do with our staff is we our start up his we are connecting people directly with the restaurants. We get the orders from the restaurants, packet pack it in australia and then goes direct to the restaurant in china. We have reinvented the supply chain and eliminated many middlemen. We are reducing cost but also using Blockchain Technology what indicate the problems of food and food safety. And in this environment people are thinking more seriously and sensibly about food security. In regards to we are talking to many chefs. I mentioned the mid to high end restaurants still are not getting a lot of clientele but chefs are still working. We have been working with a large number of executive chefs in shanghai and what we are doing resumes. Doing resonates. The world knows coronavirus started in the fish market and i know that is a large statement, he is worried about the safety of food and what he provides his clientele. The beauty of blockchain is it provides a Single Source of truth. Chefs and consumers it empowers chefs and consumers and farmers, because they can see the food has been transported on an ethical supply chain and see where it has gone, what temperatures and how it has been handled. The chefs we are talking to have asked us to expand our proteins. We are doing it. We are expanding the number of proteins including the only seafood but moving into the meat as well. What we are doing is really resonating in china at the moment. [indiscernible] shery especially after sars a few months years back. But peoples livelihood depends on the wet market. What do you think will happen to the middlemen, and do you see the marketplace changing where wet markets are a thing of the past . How are you gauging interest for your technology . Reallyou know, what is interesting, it is worth remembering the counterfeiting remembernd dvds and the Music Industry thought their days were numbered. But technology provided the answer. Or lawnot governments enforcement. That is what people are talking about now. Lets have governments step in and close down those markets. That is silly talk because the markets are essential to food distributional in china. We need them to provide solutions that not just close it down. There are people working in the wet markets, good people who like that he would like to invite home to dinner. And re is that actors bad actors and those are the ones we need to get rid of. So on the cds and dvds, it was technology that result that issue. Now with smartphones, people can download movies and music reliably and cheaply and that closed down the counterfeiting and pirating. So i can see myself, that will be the answer. Blockchain technology is a thing of great beauty the world has not seen yet but it will provide the answer. I believe that kids today, that they are incredulous that people, that smartphones did not exist, there was the time they didnt exist. Infants today, when they get to primary school, they will be equally astonished. They will be equally astonished that there was a time when people did not know where their food came over the ethics of the supply chain. Mclardie, two hands, the founder from melbourne. Dont miss some big interviews coming up. We have the ihh health care ceo joining us a little later. And in the next hour on daybreak asia, we look at central bank action. We have the chief economist for asiapacific 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. Shery good evening. I am shery anh alongside haidi stroudwatts. We are counting down to asias major market open. Our top stories, the world leading Central Banks meet this week with policymakers under growing pressure to support their economies through the virus and looming recession. Global infections approach 3 million with death topping 200,000. The rate easing, with several governments planning a restart
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