Grubhub jumps on the news of a take away by huber. They will diversify by uber. They are trying to diversify from simple shery car journeys. ,utures are under pressure extending losses from the regular session. It was a risk off a day, the dollar tumbled, treasuries rose. We had dr. Fauci reiterating his warning against reopening the economy too soon. We had real estate financials weighing on the s p 500 and it lost the losses are accelerating after trading. Some people saying the Virus Outbreak and partial shutdowns would risk massive bankruptcies which could create a lasting scar on the u. S. Economy. We have cpi numbers in the u. S. That fell the most on record in april. One. 4 ,il, wti down above 25 a barrel level, after touching the highest level in five weeks. We are seeing optimism in the oil markets with uptick on demand and saudi arabias plans to cut production by an additional one Million Barrels a day. As i was saying, the top u. S. Disease official warning against states reopening to quickly, telling a senate panel reopening too quickly. There is a real risk you will trigger an outbreak you may not be able to control which paradoxically will set you back not only leading to suffering and death that could be avoided but could set you back on the road to try to get economic recovery. We will turn the clock back rather than going forward. Lets bring in Emily Wilkins in the sea. We heard nothing out of the ordinary. If you reopen to quickly too quickly, you will get more cases. Where people reacting to something that seems obvious . Toyou see people wanting make the economy open, wanting to get things back to normal but also being aware there are health concerns. Dr. Fauci sent a clear message today if you are worried about the economy you need to be in favor of these protections to make sure the disease does not continue to spread. Today full testimony remotely in front of a number of senators who were also a video chatting in from their homes. He answered a number of questions about the virus, estimating it is likely 80,000 americans have died from the coronavirus, that we have not, that our tally doesnt cover everyone who has passed away because of the virus. In the meantime we saw House Democrats putting together their version of the virus relief bill. There is little chance this will be passed by Senate Republicans or get the signature of the president. What is the significance . Forhis is the opening bid the next round of funding. We have not seen any bills from the republicans yet. So this is the first piece we are seeing in the negotiation. It is a 3 trillion virus relief bill expected to solve Different Things for individuals, families, elections. It does include democratic priorities that dont have anything to do with the coronavirus like property taxes. Most of it is focused on the virus and focused on sending funds to the states and localities and native american tribes who have been hurting through this process. That, not of surprising we are seeing a record deficit for the month of april. Yorkve already seen new Governor Andrew Cuomo talking about meeting billions of dollars of federal support as well. Emily this is why you start to see republicans push back. You see them say, we need to be mindful how much we are spending and not taking our country too far into debt. The pushback argument is this is an emergency, the money is needed right now. I think back to the basics. You are going to see this play out. At this point it is clear to people that we are, this is going to be needed for the next several months. The bill they are discussing for the next coronavirus stimulus, they dont think it will be available until june at the latest. Then they are looking at Small Businesses because those loans will be running out from the ppp in june. That is something they will have to come back to. Shery our congressional haidi our congressional reporter there. Lets get you caught up with first word headlines. Karina senior officials are warning that the u. S. Downturn could trigger historic portions. F job losses there could be business failures on a wide scale that may prompt a new depression. Cleveland said earlier u. S. Unemployment could exceed 20 as virus fallout spreads. India is reopening parts of the real Network Despite rail Network Despite the virus cases rising. Passengers must prove they are not infected and maintain social distancing. The virus has devastated the Indian Economy with factory output collapsing in march, manufacturing falling 16 . Japan says it is winning the virus battle with tokyo not seeing any rise in the overall mortality rate. The Capital Region reported 33,000 deaths in three months through march, fewer than the average for the preceding four years. The measures dont provide details of cause of death but they say there is no search during the pandemic. Twitter is offering employees be opportunity to work from home permanently when the outbreak receipts. Jack dorsey has told staff the company is unlikely to reopen its is a cool offices before september but most can work from wherever they want. Twitter employees around 5000 people in 35 offices around the world. 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. Adam shery we have an alert on the bloomberg, apple is planning for more workers to go back to their offices over the following few months. Their plan is flexible and depends on local orders according to people speaking to bloomberg. Returning the employees to their offices will be done in phases including the main apple park campus in silicon valley. The second phase will start in july. This approach, returning to offices differs greatly from that of other tech giants pay we have seen facebook and google saying most employees can work through home from 2020 but apple has a plan to return more workers to their offices over the next few months. Haidi tensions flare between australia and china after beijing moved to suspend some meat imports. We discussed this with the council see no pressure cut consent. Patrick hutchinson. And why one guy is sticking to the biggest bluetooth amid the pandemic. This is bloomberg. Shery tech stocks are leading the way to recovery. The Nasdaq Market cap has risen to 55 of the s p 500 value in part to the continuous strength of the faang stocks. Yousef garyow is yanni. It has been really interesting to see tech giants have sort of played the role of haven assets when everybody is panicking about the rest of the market. Given some of the fundamental changes we are seeing with covid19, can we expect these giants to get bigger . I think you can. All we are seeing, the only impact coronavirus has had on them, to pull forward kind of a growth trajectory we already saw happening before transitioning to the crowd, pete the cloud, people are transitioning to work from home. Now these companies are going to take advantage of it into the future. Mean forat does it traditional businesses . Big banks, j. P. Morgan, being upstaged by mastercard. Surpassed the has u. S. biggest bank as the chart on the bloomberg shows our viewers. If we are seeing more of these transactions in the way people do business, what does it mean for the traditional businesses like banks . A lot of traditional businesses will have a hard time. Banks we have a hard time believing in, going forward. We have fought for independent companies. Banks are loaded down with large physical footprints. They have got regulatory burdens. They are faced with a low Interest Rate environment, not a lot of volatility for them to make money off of trading. Large payment systems, economic recovery, they are in the middle of it. As people go digital, they are in the middle there. They are profiting off of it. And they can dip their toes into whatever the banks are doing that is profitable. We want to get depositors, they can do that. If there is money. We like the upside of the Payment Companies more than the upside of the traditional names. Which pandemic related darling stocks are we seeing perform real well have hit their peak . Zoom is one which will probably pullback when people go back to workplaces. Are durablethere habits and there are habits which will not be as durable. Things like zoom, they are a flash in the pan. They dont have a wide, huge advantage over everybody else who has video streaming, whether it is microsoft or apple or google. Weforward, we begin think there is a hard time to defend market share. Bestnt think that is the place to put your money compared to some of the other Large Tech Companies that have got more cash flow. Haidi when it comes to the retail recovery, that is still out. In australia you have seen surprising upside with retail sales, Consumer Sentiment over the weekend when Shopping Centers were seen flooded with people on the idea of the economy is reopening and people in china are lining up for the latest nike shoes and revenge consumption. Is there a chance Consumer Behavior may surprise us . There is a chance general Consumer Behavior could surprise to the upside. The downturn has been a case of consumers not having access being able to purchase rather than not having the funds. I dont think that will be reflected at the shopping malls. If you have not taken the time to build a digital relationship with your consumers, you are in trouble. Reopening the malls, we might see a surge in the first or second week that longterm, they will struggle. As an aside, if you have people back at malls in close contact, that is not great for the next several months as we consider whether or not there will be a second wave of the coronavirus shutting everybody down. Preferenceou have a when it comes to geography . We think the United States and emerging markets are more set to grow compared to other developed markets. Developed markets in europe and onan, they are focus resource extraction and banking. We think the banking seen, which is not want to be a part of, lower for longer Interest Rates. It is not as attractive as the growth stories in emerging markets in emerging markets and the u. S. Shery we saw the dollar getting a boost from safe haven moves. What are you factoring in . Like you said, Dollar Strength is a reflection of u. S. Markets being the most attractive. If we are talking about the next five years where do you want to park your money, and i told you could buy Something Like microsoft, a lot of people will buy microsoft. You are sure it will be there in five years. Microsoft bridges Deutsche Bank versus Deutsche Bank, the answer might still be microsoft. So highquality companies. Investors are fleeing to the markets that are the most stable and developed. Haidi last question in terms of the beaten down sectors. If you are a longterm investor, would you be adding to positions like in disney, big oil given evaluations we are seeing, knowing we wont see a recovery in the next one, to, three years . Longerterm, these Big Companies with solid Balance Sheets that will survive . Think it is a great idea. The companies that have been beaten down but have solid Balance Sheets are great investment screen we are cautious when we look at companies that have been beaten down that dont have Balance Sheets that are as great. That is where you have to be careful and you will see a wide spread between the returns. Would not be surprised if one of the airlines ended up going under in the u. S. But if you pick one that survives, there is great returns to be made over the next three to five years. You have to be careful where you put your money but there are opportunities out there. Great to have you with us. Thank you for your views. A there was the rbnzs overnight cash rate is likely to be the only thing unchanged later as the kiwi centralbank looks to head off declining inflation expectations. We get a preview on what to expect. This is bloomberg. This is bloomberg. The big of new zealand is to double down on bond purchases as pressure builds for aggressive steps to rescue the economy from the coronavirus. Kathleen hays is here with a preview of what to expect. What is the rbnz expected to do . Starting ie are looking out for doubling down on the amount of bonds they have been buying. They started that in march. They are seen taking that number two 50 billion new zealand. And remember in the emergency march meeting, they cut their points. By 75 basis it was a surprising move, aggressive. It was always a question of the rbnz signaling they are ready to do Something Like that, negative rates, or more than that if needed. They are looking at a gdp in the Second Quarter that is expected to drop up to 22 . It was not that strong but 1. 8 growth, unemployment could get to 10 . Coming,e is a budget the finance minister speaking in a couple of days to give more stimulus because the economy is in need of it and that will mean more bonds. That is one more reason why the rbnz would be ready to buy more bonds. They want to keep yields from rising especially when other countries are issuing bonds, you got to do something to make sure high. Ields dont get too as for negative rates, adrian, the head of the rbnz, has said they are not off the table. People will be looking closely at the policy statement to see what it signals about policy rates. This will be another very important question as there is a lot of talk now about negative rates in other countries as well. Shery this coming at a time we have dire outlooks from fed officials. Kathleen we certainly do. Some people think that is encouraging, the top of negative rates. Jim bullard was speaking and he warned of business failures on a grand scale if it shutdowns are prolonged, even a depression. Speaking later in the day, loretta from the cleveland said to 35 ld drop up to 25 in the Second Quarter and it could be even worse if the shutdowns are prolonged and there is a rise in bankruptcy. This all happens after negative comments in the morning, donald trump came out with a tweet about the negative rates. He said up long as other countries are receiving the benefit of negative rates, the u. S. Should accept the gift. Jim bullard commented on that. A lot of fed officials have been asked about that. He said negative rates dont have a good track record. Look at japan and europe. He said other tools should be used first. Jay powell is speaking tomorrow morning actually this afternoon in asia. He has been asked about this. It will be interesting to see if he rejects negative rates as an effective tool as he has in the past. Shery kathleen hays. Lets get a quick check of business flash headlines. Elon musk thinking President Trump for his support in the reopening of Teslas Fremont plant as he defies orders of bringing the factory back on stream. Alameda county and other bay area officials have warned of restarting businesses. Elon musk congratulated workers returning and say he appreciates their drive to make tesla successful. We work is exploring plans to sublet its headquarters in manhattan including seeking tenets for certain floors or renting out the entire building greeley have been seeking to minimize the lease liability by promoting revenuesharing. They have laid off staff and signal job cuts are on the way. They need the new fifth quarter fifth avenue headquarters to amazon for this year. This company is trying to stave off bankruptcy. They announced the move in a Conference Call a day after hurt z reported they may not be able to continue. The coronavirus has devastated travel and they used the used car market has effectively shut down. We are getting news, the u. S. Treasury releasing a list of Payroll Support Program participants and Aviation Industry assistance. 25 billion in approved assistance has been approved for the Aviation Industry pay we will get more details on what has been released in a moment. To 352 applicants according to a statement from the treasury department. Patrick hutchinson, the president of australias Meat Industry council, talking about on australian meat import. More to come. This is bloomberg. Karina you are watching daybreak australia. President trumps top disease expert has told congress reopening the u. S. Economy too intothreatens a new spike run a virus infections. He told the Senate Health committee he is concerned about cities and states relaxing curbs without meeting guidelines. This is in conflict with the president who is pushing america to return to normal. Parts ofeopening network. Its rail customers must prove they are not infected and maintain social devastated social distancing. The virus has devastated the economy. Manufacturing fell 26 . Huaweiwyers prosecuting for violations of sanctions say the companies should not be allowed to share pages of evidence in china. Legal teams have testified thousands of pages sensitive. Huawei denies it has evaded sanctions and wide to u. S. Authorities. The ceo continues to fight extradition from canada. Oil slipped from a fiveweek high after the government of the u. S. Lowered its output forecast. Oil futures gained 9 . Doesntncy ihs market see oil prices recovering to previrus levels until the second half of next year. 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. Fears of a trade war have grown after china announced it is blocking imports from four australian meet him forces meat importers. The ceo patrick conscience and joins us. In your view is this political retaliation for australia calling for an investigation into the origins of the coronavirus . I think it is unfortunate timing. We have gone through these issues before. This is nothing new for us. These are nontariff issues we have to deal with on a daily basis. For the 110 countries we export to, we have to continue editing them on a daily basis. This is unfortunate timing. We are working on it now, working to get the differences back up into china as soon as possible. Timing is not just in fortunate but unfortunate but highly seriously we heard the Chinese Ambassador to australia saying as a result of the probe australia was calling for maybe Chinese Consumers will decide they dont want to drink australian wine or to eat australian beef. That seems like a huge coincidence. The previous incidences in 2013 were also in response to australian bands on chinese pork imports. There is a political angle. I cant comment on Foreign Policy but i am a meat supply expert. We know that china and the Chinese Consumer wants our beef regardless of public commentary. To that end, we have seen beef exports to china even in covid times above 10 from the end of april to the year before and we saw 300,000 tons of beef to china. This is not a beef industry issue. This is a specific company issue. Unlike barley, which is looking at all barley exports, these are specific to businesses. They have presented the information to everybody and it is now up to us to go and find it. In regards to the more geopolitical areas, my role and our role is about putting safe stake and sausages on planks. That is the area we work in and we will continue to do. Shery is your government making that job easy or harder . Ministerstrade perspective, birmingham and our agricultural we certainly are. I have been talking to the public about ensuring whatever the geopolitical discussions that need to take place, we need to be making sure the trade is not collateral damage. Ministers had that as their mantra to make sure they know it doesnt happen. Handling areas of individual discussions from the back bench is always but as i said i am not a foreignpolicy expert. My commentary around that is not good. We are working strongly with our government and continue to do that. That is why we saw last year a rise in our beef exports of 3000 tons. It has been beneficial for our whole supply chain. Shery this year the world has been infected by been affected by covid19. How will that impact your industry . People need to continue to eat so we are supplying the Product Group have a range of different areas that impact on us as a trading nation from climatic, going through drought, which we are coming out of in some areas but suffering in others which has impact on supply, currency fluctuations, the world leading midday red meats nation. Other policy settings that occur on a nontariff business in a number of countries around the world. We see moving out of covid australia is absolutely well great we are the most reliable red meat exporting nation. We have seen consumption in australia increased 30 the last true weeks. We are very the last four weeks. We have seen rises to the end of april on 2019 levels for base into beef into china and then but seen reductions in u. S. And south korea we are able to move and be flexible and provide product not just where it is necessary but economical. Haidi can you give us an idea of the impact of this latest beijing,tussle with with what percentage of exports from australia this affects and how long it will take to resolve in the losses being faced by the businesses affected . We have these companies that represent about 20 of beef exports at any one time to china throughout the year. It will fluctuate because of the products these companies provide. Some manufacturing these, some highlevel grain fred there is a range of product mix. We know in china we have also an inventory we are working through. While we have seen a rise in our export numbers, they have been mostly in january, february before covid and the new near. The new year. The last time this happened it was across a number of different product lines including sheep meat in four different states. We have got beef only in basically a geographical region, no more than 200 kilometers apart going out of one port. So we are managing the issues quickly. What we have also been doing, research and development has been overtaken has undertaken in the past, enhancing labeling techniques and requirements. We are the thirdlargest manufacturer in australia. In manufacturing we have the issue we need to fix in regard to automation and labels. The key thing with labels is sometimes labels that appear on a manifest dont appear on cartons. So we have breached tolerance levels of the companies and we need to give them that reassurances we have got those solved. That is what we are working towards. We dont see this as being a large impact on us at the moment but the longer this goes on, the worst it can get. You worried about a reputational hit to australian branded meet in china . You know Chinese Consumers can be patriotic and rallied by their own government in situations like this. Andou think that is a risk should australia be diversifying its export markets beyond reliance on china . Ofin the past 100 odd years australia being exporters and we just celebrated 50 years of the First Container exports that have gone out from australia, we have got to her member our flexibility. We had agreements aside all over the world agree we had some recently signed with indonesia and peru. Years tog back 15 2005, we only said in 2010 about 5. 5 thousand. In 2015 post chapter we were looking at 140,000. We are now 300,000. We can move the product mix and moved to other nations as we see fit. Our cattle herd as increased. It has been the product mix that has increased. They will be able to serve this market. If there is one market that wants to go to another, we can manage that. We can do it across the world. Shery thank you for your insights. We will have more on the escalating tensions between australia and the australian finance minister joins us 8 30 a. M. Hong kong. Dont miss it. Haidi i am getting the Trading Update from the Commonwealth Bank of australia. They are reporting the Third QuarterTrading Update. Additional loan loss provision of 1. 5 alien dollars australian, slightly better from the cost rivals the cost impairment of westpac and anz. A restructuring going on. They are set to sell 55 of colonial, cash proceeds of 1. 7 billion australian. We are hearing that kkr is set to buy the majority stake in Commonwealth Banks wealth management. That is according to media reports earlier today and we are looking at cash proceeds of 1. 7 billion australian. Others say the sale is 3. 1 billion dollars. We will get more details on that as they get to us through the virus pandemic is shaking up the Education World as parents are learning to become home teachers. Next to guest joins us discuss. This is bloomberg. Haidi you are watching daybreak australia. Lets get you a check on the markets with Sophie Kamaruddin in hong kong. We saw u. S. Assets trading within recent ranges and the yen looking steady while futures are subdued. Offshore yuan holding a sixday decline which could indicate licensee on trade risk. Emerging stocks are in a precarious this after aprils bounceback above 50 Day Moving Average as nations have less fiscal space to facilitate their economies. The bank of america pointing out constraints like high debt and corporate defaults and man Group Warning of debt to gdp ratios. They are planning to send spent 10 . Albeity is resuming slowly. Stocks have clawed back half of the virus sparked losses. Strategists are in debt postpandemic world in which people are going to continue behaviors adopted during lockdowns. Blackstone saying the Digital Economy has jumped five years ahead from health, payments, groceries and so on. Some places could double in value in three to five years as people are moving to interact and work online. Twitter will permanently allow people to work from home. Many schools across america and others around the world have announced they will be closed for the rest of the school year because of the coronaVirus Outbreak, leaving parents adjusting to a new normal for the next several weeks or months. How do parents adjust . Joining us is the cofounder and president of a learn to read cap. Read app how has this affected your business . It is great to be here. We have seen an explosion in growth. We have seen 300 growth in our sales and we are seeing more in engagement. Our daily active and monthly active users growing by the day. It is a moment for us. We are a Mission Driven company and we have seen this as our moment to help support parents. Shery it seems a lot of these education tools are now online. Are there any concerns by parents or others about the amount of screen time the kids are spending . Been a longstanding debate. We like to think we are moving from screen time good or bad to more like quality screen time. We are looking at my media pay we have a simple framework we use, the play framework. Purpose, what is the purpose you as the parent are using the screen time for, to catch a break, to get your kids ahead, connect with other family members . How do you assess the learning value . A is appropriateness. Is for yes. It is ok to have more screen time right now. We all need more flexibility. What about the concerns from parents that their children are falling behind when it comes to kids especially that are in senior years looking to Start University and College Next Year or the year after . What kind of approach will you be taking for the parents and kids who are concerned this is an entire year of children who are being disadvantaged . Two tors focus is sixyearolds. But i am living this myself with teenage girls. We often thought of school as the academic focus. What we are learning in school is more than that. It is a community. For children it is social structure. For others it is a way for them to have services. Many meals are served for children at school and they are wraparound services. With older children, it is not just about the loss of academics , but the disconnection from their friends and the emotional toll that takes per this is unprecedented times for parents and the anxiety is high. We are seeing that is high in children as well and teenagers coming through this experience. The academics will sort themselves out. There will be a way for us to close the gap but as kids get older we have to focus on social and emotional as well. You for joining us. The president and cofounder of homeowner homer. Huber is ready to gobble up competition in the food delivery is necessary a this is bloomberg. Uber has made an over to buy grubhub. Both of them are facing surge in demand for food during the lockdown. We have seen the devastation, the disruption of uber is ridehailing business. Is this an indication they are doubling down on the part of the business that has seen a surge . Exactly. The ridesharing business is going to see about a 50 to 60 decline this year. They are trying to offset the top line impact by doubling down on eats. What they are trying to trade growth ish, for uber paramount. That is what people look like for the potential in uber. If they are able to offset the decline by adding grubhub, that will be mostly inorganic, it helps them show some level of growth in the top line which is important. What does it mean for other Companies Like lyft . What we are seeing right now is the pressure when it comes to the liquidity and cash reserves, and for somebody like lyft, which is seeing a monthly cash burn of based on our calculations, they can only survive for about a year if trends dont improve in the ridesharing business. I think consolidation is in, both ridesharing and food delivery but for delivery has more vendors. Uber has the better shot at buying grubhub that it has in buying lyft. Haidi is there a sense that we were not that we will not see a what does that mean in terms of the spending and investment uber makes in that side of the business . Is this the beginning of more of a permanent restructuring . Yeah. They have already cut about 14 of the workforce. Lyft also has. They expect a recovery to be slow here. You are not going to see a vshaped bounce where volume goes back to where it was last year. Consumers with social distancing and all of the other measures are not going to be in effect at least for the major cash remainder of this year. Companies will have to curtail, but at the end of the day the margins are going to remain. Given these companies were not profitable to begin with, it keeps adding to the liquidity pressure i mentioned. Analyst forenior Bloomberg Intelligence with the latest on uber and grubhub. Pnc financial is set to raise roughly 14 million after selling its stake in block rock in blackrock. The sale banks will benefit to the tune of 240 million in fees. People like airbnb have been shelved because of the coronavirus pandemic. Chinas starbucks rival has topd its ceo and another executive over fabricated sales. The transactions under investigation occurred last year and totaled around 310 million dollars. Employees have either been suspended or placed on leave. summer internship will be fully remote except for india. The program has been delayed by the coronavirus pandemic and was going to start april 7 but was pushed back to the first week of july. They intend to fully honor the original program in terms of duration and financial commitment. Plenty more to come on daybreak asia. This is bloomberg. Haidi welcome to daybreak asia. I am haidi stroudwatts in sydney along 10 shery ahn in new york. We are counting you down to market opens in australia, japan, and south korea. The white house pushes the u. S. To reopen but stocks fall as top disease officials warned against moving too fast. Anthony fauci sees a new spike in infections. Oil retreats from a fiveweek high as virus caution focuses on we