Chairman. Lets get you started with a quick check of how markets are trading. U. S. Futures continuing to add to gains after u. S. Stocks rallied in the regular session. Vaped tech shares leading the gains. Alphabet optimism about the experiment of drug coming from Gilead Sciences. U. S. Futures gaining ground at the moment. This after the s p 500 rose in the regular session. We have some negative data when it comes to u. S. Fourthquarter gdp seeing the biggest fall since 2008. We did get the fed decision. We have policymakers holding rates steady. Wti also continued to add to gains after we rose in the regular session, rebounding from almost 30 of declines in the last two sessions. Haidi of course one of the big headlines, the Trump Administration putting together this Manhattan Project style effort to drastically cut the time it takes to develop a coronavirus vaccine. Operation work speed hopes to have enough warp speed hopes to have enough doses available by the end of the year as gilead shows promise with helping patients recover more quickly. The data shows remdesivir has a clearcut significant positive timet in diminishing the to recovery. Our bloombergring opinion columnist for his views. There is a reason these conical protocols are designed the way they do and take so long, for efficacy and safety. Realistically, how much faster could this get done . Speaking about a vaccine, the answer is not that much faster. You cant make Clinical Trials and make the data come in penny faster. You really have to go through these steps. There are certain things the Trump Administration is trying to do, more coordinated trials, trials of for similar vaccine candidates. All of those things can help, but i dont know if that is the thing that will dramatically accelerate the development of the vaccine. The one thing they can do is build manufacturing capacity as trials are ongoing so when something does prove to work, there can be the capability available. What that does rely on at the end of the day is that one of these vaccines prove safe and effective. There is no guarantee and no ability to speed that up. While the manufacturing site is useful and can help get more doses once there is something available, there is a limit on what any organization can do. We are talking about complex biologic here. Shery what do you think of Gilead Sciences covid19 treatment . Dr. Fauci seems to be optimistic. Max with the caveat that i am not a physician and i and most people have not seen the full data from the trial, i do think it is good news. This was a rigorously done, randomized Clinical Trial of some size, done by the National Institute of health, by a reputable group of scientists. That the drug could show a tonificant boost to time improvement, that is great. A four day boost in a group of patients, we dont know how ill they are that isnt something that is necessarily a game changer in terms of the global trajectory of the virus, even if this drug were easy to take and manufacture it happens to be neither of those things. Definitely good news that we have the first confirmed medicine that seems to have some but what people expect from the medicine even if positive results seem to hold. Shery we are seeing Antibody Testing rolled out across the country, in new york city. At the same time, congress is becoming concerned. A study in california showing one out of three antibody tests showed a 10 rate of full spot if. Of false positives. Are we getting a sense of how reliable these tests are to getting people back to work . Max that is going to take a lot of direct study and validation of these tests. The rush to start doing these studies and get emergency approvals done, there wasnt as much rigorous evaluation of these tests as we would see in normal time. When it comes to Antibody Testing, something you may be 15 of at for that 1 to the population that contracted the coronavirus, a 10 error rate is unacceptable. Heavilyor rate in infected places could confound the data and utility of learning anything about a population, let alone being confident to give a oncalled path forward given our limited understanding about immunity. A lot of work before this can be a tool for fighting the virus. Shery max nisen our Bloomberg Opinion columnist. Karina germany sees the pandemic pushing the economy to its worst recession since world war ii as businesses confidence collapses across europe. Gdp is forecasted to fall by more than 6 this year, a low point expected sometime in the second quarter. The government hopes its trillion dollar rescue package will limit the damage. 47ans 47 projectors prefectures are asking the government to extend the state of emergency. Tokyos official says the situation remains severe. Unemployment claims are surging in Southeast Asia with more than 9 Million People registering. The labor market is slumping as well in singapore amid its sharpest contraction since sars. Hong kong says the economy will contract by as much as 7 this year as the virus fallout adds to pressure. The advanced firstquarter gdp reading is due on monday and may be worse than what was seen in the financial crisis. Hong kong has been in recession since the second half of last year with tourism and entertainment under severe pressure. 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. We saw the Earnings Call for facebook wrap up. Mark zuckerberg said the impact of the coronavirus may be worse than what we are predicting, saying we will see a meaningful economic hit for the health emergency. All of that depends on the efficacy of the shelterinplace order. He doesnt think he has any particular insight, but it would be worse than what people are predicting. Facebook reported an 18 increase in firstquarter revenue, showing there was still advertising demand. Earnings call on the way for microsoft. The cfo saying the forecast for Fourth Quarter operating expenses are between 11. 8 billion and 11. 9 billion. Revenue for the Fourth Quarter between 11. 7 and 11. 3 billion. We have seen Quarterly Sales and profit rising. We have seen their internetbased software and Cloud Services doing better because more people are working from home. We have seen the shift from its ceo for years trying to focus on cloud software. Microsoft saying they will aggressively expand Cloud Infrastructure next year, that they will make significant investments on those goals. We willtill ahead, focus on commodities. A metals chairman speaks on the ongoing tensions between china and the rest of the world. Coming up next, no change from the fed. Powell warns the heartbreaking harms from the virus. We are joined by a Harvard University professor. This is blumberg. Bloomberg. Forceful measures we as a country are taking to control the spread of the virus have brought much of the economy to an abrupt halt. Preserving the flow of credit is essential for mitigating the damage to the economy and setting the stage for the recovery. We are deploying these lending powers to an unprecedented extent, enabled in large part by the backing from congers and the treasury. From congress and the treasury. The economy may need support from all of us if cover is to be robust. It will take some time for us to get back to a more normal level of unemployment. We would not be in any hurry to withdraw these measures. This is the time to use the great fiscal power of the u. S. To do what we can to support the economy and try to get through this with as little damage to the longer run productive capacity of the economy as possible. Haidi Federal Reserve chairman Jerome Powell speaking at his News Conference earlier today following the feds latest policy meeting. The fed stuck to guidance. For a closer look at how the Central Bank Sees it from here a professor of economics at princeton university. Thank you very much for joining us from washington dc. Say that chaird powell was successful in this meeting. There was a most no reaction almost no reaction, which for Central Banks is a success. There are occasions where the central bank that is trying to move rockets. One. Was clearly not trying, when you dont move markets, that is good. Those expecting a change in Monetary Policy were sorely disappointed. I saw speculation he might hint at yield curve control. That didnt seem likely. He didnt. His basic message was what it had to be, we are here with a toolbox. It doesnt have everything in it. Congress has to do some things. But we have a toolbox and intend to use it to the maximum extent possible. Could that mean additional measures . Already they have announced so much. So far it seems only five of the nine lending facilities they announced are fully operational anyways. Prof. Blinder first, the simple elseion is if someone can figure out for them Something Else they can do with lending powers, not spending powers, they would be willing to do it. To your perfectly correct point that they have not stood up all the lending facilities they already announced that is a reflection of the fact that several of these are unorthodox to the fed, way out of the feds normal comfort zone. I take as a clear example of that the socalled main Street Lending facility. The fed has never been a main Street Lender. It has been a wall Street Lender occasions in the financial crisis, it has been a backstop lender to various companies that may not all be banks. That was. Unusual. Was very unusual. For main street businesses, this is unusual for the fed. They had no preprepared mechanisms, no internal expertise about doing that. I am sure they are gathering that as fast as they can. It was just an unusual or unnatural task for the Federal Reserve. Day, at the end of the this is a crisis hitting main street, not so much wall street, despite the volatility we are seeing in markets. Blunt setnse, is it a of tools the fed has, and why they are leaning toward putting pressure on the fiscal side . Or is it more unconventional things they can do, bearing in mind time is of the essence. There is not a lot of time to research and data collecting. Prof. Blinder they are trying to figure out how to distribute it. When that was announced, it seemed like a long time ago, but everything is going at warp speed. I felt that was an odd thing to put in the Federal Reserves basket. There is a huge need for lending to main street, whether it is the payroll protection plan, or without forgiveness, just lending to Small Businesses that might otherwise have trouble getting credit. Correct,tive is appropriate, and important, but the odd things was handing that over to the Federal Reserve. How do you even begin to forecast post pandemic inflation outlook . Are there so many dislocations that we are not seeing at the moment . Prof. Blinder i think the nearterm forecasting, as long as you dont want to get into the decimal point, is not that hard in the sense that we know debt economies drag down inflation. Dead economies drag down inflation. This economy right now is dead. It will be a long time before we get back to peoples asian rates we had to utilization rates precovid. Had i feel pretty safe to forecast not numerically, that inflation is going to get lower, not higher. The hard part is the longterm outlook. The fed is creating gigantic amounts of liquidity, credit, and money. Ite the economy has revived, will have the task of withdrawing a lot of that at just the right pace. What i mean is if you withdraw to quickly, you send the economy downward again. If you withdraw too slowly, you have the danger of inflation. That is just what the fed was doing before the pandemic hit, still recovering or normalizing from the world financial crisis. It will have to do that again some years down the road, and at a much larger magnitude. Haidi alan blinder of princeton university, now visiting scholar at the Brookings Institution with us. More on the fed outlook in the next hour. We are joined by a Columbia University professor who oversaw Monetary Policy implementation, including crisis related facilities. Next, facebook is surging in extended trade as revenue holds up in the midst of the pandemic. We get a look at results from a number of heavyweights reporting after the bell. This is bloomberg. Shery facebook, microsoft, and tesla jumped at the bell, all posting better than expected earnings despite the impact of covid19. Microsoft has seen a jump in cloud demand as millions are forced to work from home su keenan has the latest on a big earnings week. Su looking at the after our movers hours movers, two stocks that reported after hours are microsoft and tesla, both coming in with significant surprises. Both of those stocks jumped off the bat. Tesla we will get to in a minute. Lets talk about microsoft. They are expected to benefit. Even they came in better than expected. Their ceo has put their focus on the cloud. They demand there big demand there, as mentioned. [indiscernible] to facebook. Revenue headed higher. The stock moving higher. Its before covid spread was stronger. It warned it would see a drop in ad revenue. What they said on the Conference Call was after the initial increase, they benefited from people trying to reach out. We have tesla hitting the pedal to the metal. Earnings and revenue beat estimates. Shery su keenan from new york. Lets get a quick check of the latest business headlines. Boeing has announced plans for deep job cuts and reduced output amid the worst crisis in aviation history. Production of widebody planes will be scaled back. Max a cash cow 737 returning. The coronavirus ravaged the Aviation Industry and travel demand. Boeing aims to cut 10 of its workforce, or 16,000 jobs. Airbus is warning of the greatest crisis in aviation history after burning through 9 billion in the First Quarter. Almost half of that came from a bribery settlement. The severe falling orders amid the pandemic added to financial woes. Its ceo says airbus aims to survive, but needs as much help from customers and suppliers as he can find. Singapore Airlines Says it is expecting substantial losses on jets fuel hedges in march due to the in normas cut in flights the enormous cut in flights because of the coronavirus. He says it is now over hedged on fuel consumption. Hedges will be market to market as of the end of last month. Chinas top airlines slumped in the First Quarter and are warning there is worse to come as the coronavirus hammers demand for travel. Pair china and china eastern lost a combined 2 billion through march and are operating at less than half capacity. Domestic flights have picked up as the country eases restrictions, but International Demand remains weak. Haidi lets take a look at how we are setting up this thursday in asia. U. S. Futures extending those gains. Upside after u. S. Stocks hit that sevenweek high. The s p gaining more than 2. 5 on the dual expectations on this operation warp speed, where the Trump Administration said to be planning this Manhattan ProjectStyle Initiative to get a vaccine by the end of the year, and also news that Gilead Sciences said its experimental therapeutic drug is improving as well. Tokyo trading. South korea not trading today. New zealand stocks seeing gains after losing ground yesterday. We are just getting lines through from the Australian Oil minor reporting iron ore shipments of 175 million tons. Capx guidance revised to 2. 2 billion dollars. Iron ore shipments 43 million tons a little over estimations. Capx for the Third Quarter coming in at 414 million. We will get analysis later on. We speak with the ceo and also the fortescue chairman himself is joining us. He is coming after some heat when it comes to the company and australias relationship with china. Watching daybreak australia. Lets get a check of the headlines. President trump says he sees light at the end of the tunnel in the fight against coronavirus, with the Fourth Quarter of the year to be, quote, really really good. Echoing predictions from his economic advisors. The white house has been urging states to consider reopening their economies as the number of new cases slows. Fed chairman Jerome Powell says the virus has brought the economy to an abrupt halt as he held Interest Rates near zero and pledged to keep them there until the u. S. Is back on track. He talked of the harm the pandemic has caused and said activity would likely fall in the coming months. He said there may be a need for more fed action. Wirelesslargest carrier is seeking to dismiss u. S. Claims it paid the taliban to avoid attacks. They say the suit targets the wrong defendants and in the wrong court on insufficient evidence. A mining tycoon has used contacts with china to acquire millions of coronavirus testing kits. His donation comes with rising tensions between australia and its largest training partner. Andrew forrest joins us now from melbourne. Great to have you as always. What are your views on this escalation of tensions . Is there a sense that australia is pushing its diplomatic relationship too far, calling for this investigation at this sensitive time . Andrew i am of the view that there will be a global inquiry into the pandemic and i dont think that is a bad thing at all. It is notmake sure politically motivated and lets ensure that it comes after the u. S. Election. Certainly it will not distract from the immense work which must be done by every country working together. If we dont all Work Together in what is the biggest crisis since world war ii, then [indiscernible] uss get this virus behind first, get the u. S. Election out do an way, and then inquiry by all means. It wouldnt be a china inquiry. The world wants to know what actually happened. But theres criticism that what you did last night was seen as a political move, by calling the chinese counsel general on stage during the press conference with the health minister. Can you hear me ok . Haidi andrew, im just saying, yes, that you have faced criticism this morning from ,edia saying that what you did what has been called an ambush, by calling the chinese counsel general in victoria to come on stage with the health minister, that was seen as a political move. Break theen we helped back of the personal protective equipment crisis in australia, unsurprisingly i brought in the consul general. There was no surprise whatsoever that i should also invite the consul general of victoria. I invited the consul general if that really helped australia get through this covid19 crisis. It was china who is really helping us and i certainly invited him and he spoke incredibly well. Got very rudely interrupted by a journalist as he was leaving and the cameras panned onto the minister quite correctly abruptly saying no and walking out. The whole announcement was a day of celebration. It was a great relationship being celebrated by two fabulous businesses. There was no surprise. There was nothing like that. This is the biggest nonstory ive ever heard of. Haidi where do you stand on australia pushing for this independent probe on the origins of the virus . Should this be done if it will cost australia business and relationships with china . Andrew i think that we need to be really sensible. We have a fabulous trading relationship with china, with japan, with america. We should not be choosing a best friend. Australia is a small country which is deeply reliant on trade. Down i and wouldnt have thought is the wisest thing. Inquirye will always be with something this big. Itnorth america wants straightaway for political purposes, why dont they order it . Out, toonly one way have a vaccine, and that is testing. Every scientist knows that. We are in an enviable position globally to be able to test our way out. I want to thank china for that. I want to thank north america for everything theyve done. Have bestshould friends around the world, shouldnt choose our best friend. Way, so you have, in a acted as a procurement agent for australia. How cooperative have the chinese been in trying to help australia out, especially when it comes to securing quality goods . I used to believe in fairies at the bottom of the garden. I dont believe that you can do things in china at a really great scale unless the Chinese Government supports it. Tens of millions of dollars of personal protective equipment it was absolutely rarer than diamonds. And then stepping up and providing these fully approved whichsting equipment, tells an absolute truth about ther a person has covid19 it tests everything. Fortunate thatso weve had really strong Chinese Government support. We look view after our trading partners and we care for our country. Out to the ranges football field for us trillion. I want to do what is best for australia. That means having a great friend in china, america, and around the world, not picking and choosing. Andrew, is our friendship with china strained when the Chinese Ambassador makes allusions to potential boycotting of chinese goods, saying Chinese People may not that are you concerned chinese steel makers might boycott australian iron ore . Andrew im really not. We are all adults. We are getting on with the job of building our country. Theticians can get on with job of being politicians. We are just cracking on. , likee consumers australian consumers and japanese consumers, they all have a choice. Too. Se people have choices what i believe is that everyone acting in their own best their kids tosend our great universities in australia, they will participate in our wonderful agricultural and energy and mining sectors, because trade between countries is the right thing to do and being hostile is the wrong thing to do. I want to throw up a terminal that shows our viewers the situation when it comes to china stockpiling iron ore. I wonder how the economic recovery is going. What sort of a shape do you see . How do you see that impacting levels of demand . Is a reallyink it good question with a big lesson. Its terribleough tragedy of covid19 through testing. The world doesnt have a vaccine yet. It is probably 18 months away to get a massproduced vaccine. We have to get it out of our country and get our economies back to work through testing. China went really hard on testing. Has now allowed australia to go just as hard itself. China has recovered and will further grow. Their orders are very strong. We are selling everything we can possibly produce. Steel mills all over the world and particularly in china are really good. Haidi before we let you go, what do you think of the reopening happening in australia . We know that the infection rate has dropped below 1 . In the united states, we are seeing states starting to reopen, but australias government has pushed out to later. How disruptive will that be for businesses . The i think that premier of each state has a big say in how quickly they open up the states. , every premieria wants to open up as quickly as possible. Happened today in lightning saw the most unreasonable schedule, three weeks for something which might have taken two years. This country, and im really encouraging our premieres, get kids back to school, students back in lecture halls, and companies and workers back to work. Forrest, thank you for your time today. Dont forget, we will be speaking to the fortescue ceo in just a few hours time. You can catch that exclusive interview. We have breaking news. We are getting the latest earnings numbers for the singaporean bank. The group has reported firstquarter net income at 1. 1 7 billion dollars. 1. 19is below estimates of billion. Firstquarter net interest singe at 2. 248 billion dollars, which is a rise of more than 7 on year. What is interesting about these numbers are the allowances. That is over one billion sing dollars. 1. 09 billion dollars. Firstquarter nonperforming loans ratio already rising 1. 5 tly to 1. 6 versus year on year. Losses,ll about credit provisions, depending on households and business default rates. Dbs group still maintaining their Quarterly Dividend at 33 thing for singapore cents per share. Coming up next, we will take a look at how the pandemic is changing the way people work. This is bloomberg. Haidi the tidal wave of unemployment filings continues with claims exceeding 26 million as of last week. Workplace itself is changing. Coronavirus has forced the majority of businesses to change to a remote workforce. Joins us fromwork san francisco. Thank you for your time. With a wave of people losing their jobs, what sort of impact and changes have you seen on your business . Right now we are seeing a lot of excitement in a couple categories on our platform where companies are looking to hire freelancers. They are looking for professionals in areas like i. T. And infrastructure, marketing content, and even game development, where they are realizing traditional ways of working are not getting to the crisis and they are looking for some alternatives. We continue to see the shift to a remote workplace. Seeing that are you could fundamentally shift the way that people work even after the pandemic is over . Hayden we are really glad to right now be leveraging our 20 years of experience as a distributive company and provider of a platform for workers to be giving clients a lot of advice and help as they are transitioning to this new normal of remote work. I think the big picture is that remote work has seen a huge acceleration with this crisis. A mainstay in workplaces even after the crisis of a. Where are you seeing most strength in terms of industries that are hiring sectors that are showing demand for the labor market, and which Employee Skills are being most valued during this crisis . Macro level, a lot of companies are finding the need to do digital transformations that they may be thought they had more time to do before the crisis and suddenly the time is now. We are seeing a lot of demand for people in web development, mobile development, i. T. , and networking, where companies are looking to adopt new tools or they are looking for help in maintaining and continuing with existing systems. Digital transformation is a hot topic right now. How much coordination or support are you getting from all levels of government in terms of working with platforms and providers like yours in trying to make the path more seamless for people . Hayden i think the government in the u. S. Has done a good job with some first steps with the programs rolled out here to help Small Businesses as well as independent professionals who have not necessarily been part of some of the stimulus and income support packages the governments have offered. I think there is a lot more to do. We are not out of the woods yet. Governments have to reach out and support businesses to get us through the storm. Business, what roles and jobs do you see that may be impacted in a permanent who that perhaps people have lost their jobs in those sectors might not get them back . The work hasf always been done remotely. These are skills that are not being negatively impacted in the ways you would imagine, versus sectors like retail or hospitality or travel. , we are seeing a real surge demand, even for marketing and content creation. So many businesses are shifting their messaging and outreach to their customers, trying to tell new stories and provide more relevant messaging. Looking for people to help them tell those stories. Those are some of the shifts we are seeing as they look to fully expand the stories they are telling and the ways they are reaching customers. Brown, thank you for joining us today. President and ceo of up work. Just recapping from dbs, they are saying their credit cost will rise to between 3 billion and 5 billion sing dollars. We have seen the lockdown and restrictions really hitting households and businesses. Dbs will assess the virus impact and adjust dividend policy as appropriate. So far they are saying that earnings are sufficient for maintaining their Quarterly Dividend. Interesting that they are saying their total loans for oil and gas is 23 billion. They have had exposure to the trader that confessed to hiding about 800 million in losses. The dbs ceo saying there will be , buttrenchment or pay cuts they are hiring judiciously. Haidi we are also getting an update when it comes to mining. Goldmining here in australia, saying they plan for an equity raise near 1. 1 australian dollars. We also had new crest reporting key output as well as production numbers. Including 100 million australian dollars for nonwritten share purchase plan. Largely maintaining its outlook and guidance despite some disruptions. All right. Lots more to come. This is bloomberg. A quick check of the latest headlines. Almost 1hartered, billion potential bad loan losses because of coronavirus. They reported the biggest provisions for five years as client saw trouble. 12 tquarter earnings slid while operating income rose. Samsonite says it expects march toes to fall, contributing declines. It said that firstquarter earnings were expected to be slightly positive but significantly lower. That follows travel restrictions around the world. Swung toward a loss in the First Quarter as a collapsing oil demand hit refining and prices fell. Asian refiners shut facilities in early february because of the coronavirus as demand took a massive hit. Next coming up in the hour, we will have more analysis on the feds policy direction. We will be joined by patricia muster. She served for two decades at the new york fed. Plenty more ahead on daybreak asia. This is bloomberg. These days staying connected is more important than ever. So were working 24 7 to maintain a reliable network, to meet your growing internet needs. Were helping customers who are experiencing Financial Difficulties stay connected. Were increasing internet speeds for low income families in our internet essentials program. And delivering selfinstall kits to your door. Nos comprometemos a mantenerte conectado. Were committed to keeping you connected. For more information on how you can stay connected, visit xfinity. Com prepare. Shery good evening. I am shery ahn in new york with haidi stroudwatts in sydney. We are counting down to the market opens in australia and japan. Welcome to daybreak asia. Rise afters set to wall street rallies to a sevenweek high. Strong tech results put the nasdaq on track to erase 2020 losses. President trump sees light at the end of the virus tunnel. A project aims to cut the time it takes