Rescue, is it really going to do very much about the problem . Futures pricing in the fed rate cuts at three for the rest of the year but of course this as more governments are taking action and coming to the rescue with fiscal measures. Speaking nowr abe saying japan will take bold measures if needed. He is also saying he will soon announce policies tackling school closures. Schools are in hong kong and now japan will follow suit from march 2. Let us get a quick check of the markets. Equity markets are giving into the rest of the global selloff. The cfx 300 is often the low of the day. But still down by more than 1 . The hong kong hang seng also testing the of trend that had been in place since august. Japanese equities bearing the brunt of the selling. In a correction position. Off by more than 3 just today. As np futures are rebounding just a bit. Up about 0. 5 after the worst day since 2011 and a decline of more than 4 . I want to take a look at some of the risk propositions. Represene dollar, china, 1 . Isk and the risk has not been contained to the equity market. Look at the dollaryen. Rebounding after three weeks of losses for the yen. The best week since august. And the safe haven bid pouring into the u. S. Treasury market. To year treasury yield down 30 basis points. A look at the carnage we are seeing in this market at the moment. Let us get more. David and is in hong kong. How bad is this compared to previous bouts of market capitulation . David we are talking 2008. Not to say that obviously back then, when credit markets were freezing. Not to say that is happening right now but in terms of the wise, percentage the fear indicator, the buying pressure and selling pressure. In 2008. A lot of comparisons are taking us back there. We saw it go from record high to technical days. Tion in just six the fastest time we have ever seen those milestones put together. What it shows is the uncertainty of markets as it pertains to the nature of the risk and the inability of Central Banks to get markets through this type of risk. It is being questioned as we speak even as we see rate cuts getting priced into the markets. The when is taking any risk at the moment. Lines out oftest south korea. We have been waiting for extra stimulus measures coming from the country and we are hearing they plan to prepare an extra budget proposal. It would be bigger than for the mers in 2015. A rate cut. D this time around, we do not have that. The kospi is entering oversold territory already in the session. When will we see markets reach a bottom . David that is a good question. What is interesting is when you talk about fiscal stimulus in the case of south korea, all of the measures and there have been a lot that china has put together as well. We were talking about europe and the prospect of germany doing the same thing. And look at what economists are saying. A lot of these things will hasten the recovery after this period of pain but it will not solve what is going to happen in the next few weeks. Tomorrow will be a good example of that. React to datas and tomorrow we will get a good example. An example of how bad data is going to get. Pmi data out of china. The manufacturing data. Not quite back to the 2008 lows but we could compare them in terms of scale. Markets bottoming. Stop reacting to we seeeadlines that right now. Pronounced front and center. We continue to see the markets falling. The jakarta composite slumping to play 5 , the lowest level since february 2017 despite the fact that we have not seen any confirmed cases of that virus in indonesia. Risingonavirus cases outside of china. South korea, topping 2000. The rate of infection seems to be slowing at the epicenter of who says we, the are at a Decisive Point. Let us cross over to Tom Mackenzie. Is there any timeline for when this could be contained within the country . Tom there is a medical expert that has become something of a point person for journalists and those of us trying to get a better feel for how the government is preparing for this. He was at the forefront of the fight against sars in 2003 and he says his forecast is that this will be largely contained by the end of april. We have also heard from other Health Officials in china that you could potentially see another rebound in infections as people returned to work. In the last few hours, we have seen news across the bloomberg thatg in some cities, transporters are getting back up and running. Shifting people around to get them to work at that remains a risk even though the end of april seems to be the forecast from this key advisor. Today, downal cases from yesterday. You continue to see a slower rate of infection in china. 36,000 who have recovered from the disease. To death rate sadly goes up about 2008 right now in china. Calling this ais Decisive Point as cases are surging global a. Globally. Absolutely, just seeing those numbers out of south korea for example. Above 2000. They are struggling there for beds and struggling to have enough medical facilities to treat people. The who saying we could be on the brink of a pandemic. When you look at how it has spread to other countries come it does suggest that you could be at this point of uncontrolled geographical spread which is the definition for a pandemic. They are saying it could now be in the cards. Look it what is happening in the u. S. They have started to step up their screening of passengers traveling from that country to the likes of italy and iran and south korea and japan. They are monitoring in california a number of people who are of concern. And you have the first case of Community Spread infection, or it is believed to be. Which could make things much worse in the u. S. The administration has done everything and done a good job but continuing to monitor what is happening statewide as they ramp up their facilities. They have enough masks in the last that is a concern as well as the testing kits. As the there are a number of challenges for the u. S. Tom, thank you so much. Tom mackenzie in beijing. Breaking news. Market moves even as we were speaking to tom. In south korea, a lot of speculation of the fiscal heavy lifting and what role it could play in terms of the coronavirus. South korea preparing more measures to monitor the spread of the virus. The bank, we saw holding fire and not cutting rates to a record low 1 largely on expectations that the government will be submitting fiscal measures with the extra budget and a see whether they will have an impact in terms of lifting Economic Growth or at least putting a floor under economic deterioration. We are also taking a look at the indonesian market. If it closes at these levels, we will see that market goat to be go to bear territory. Wille watching how this impact the indonesian economy even though there have been no confirmed cases of the coronavirus out of indonesia. That market seeing the lowest levels since february 2017. Even preglobal financial crisis levels. A number of the markets across asia heading towards correction territory. Su keenan. In the u. S. Economy was slower than first reported at the end of last year according to gdp data. Inventory figures kept the economy expanding but Consumer Spending was revised downward and nonresidential investment matched the steepest rate of decline since 2015. The World Economy may be heading towards its worst performance since the financial crisis. As hopes for a swift rebound from the coronavirus fade. It is expected there will be 2. 8 Global Growth this year, the weakest since 2009. Central banks are holding off from cutting Interest Rates but economists are joining investors are addicting looser policy. Three fed reductions are already being seen for this year. The u. K. Has had a tough timetable set for discussions with the eu. Johnson said if they cannot agree to the broad outlines of a deal in four months, they may begin to prepare for a no deal departure for january. In canada, they removed tariffs on 98 of goods without forcing them to join the block. A crisisresident held meeting with his top Security Officials after an airstrike left 33 turkish troops dead in syria. From basharmbush alassad was the deadliest attack on turkish troops in syria so far. Turkish troops entered syria in a bid to enforce a truce between rebel fighters near idlib. 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 su keenan. This is bloomberg. Still ahead, how businesses and asia are mitigating risk amidst the uncertainty of the outbreak. We will ask the ceo of mercer asia later this hour. Seth blackrocks neeraj sees an up tech. That is just ahead. This is bloomberg. Shery u. S. Futures picking up and accelerating gains at the moment rising 0. 7 but still at a time when we see asian stocks getting off to another brutal morning, the rally in bonds has eased. Asianxt guest expects fixed income and credit markets to get more support from the monetary and fiscal policy side. Joining us now from singapore is neeraj seth, from blackrock. Thank you for joining us today. Outperformance in the credit market across asia. What is driving this . The key, whenk you think about the credit markets, it is a combination of the fundamentals of the valuation and the drops. Valuations in asia have been fairly attractive for the last 18 months after underperforming in 2018 and to some extent in 2019 compared to develop to markets. When we think about the macro backdrop, we have a mix of a meaningful readjustment or recalibration of the Global Growth and the outbreak of the coronavirus. One thing that has not changed is the demographic backdrop and the need for income. There is some caution in the nearterm. And a focus on quality. We do think this is wellplaced. Theave to be mindful of technicals. In the medium time, we remain positive. Sectors youhere any think will outperform or underperform in this environment . Neeraj we were cautious coming into the year on some of the sectors like Chinese Industrial highyield which is much more impacted by the slowing growth in china and the u. S. China negotiations. We had mixed views on indian high yields. Mixed views in indonesia. We continue to stay positive on the chinese real estate highyield development. Updo think you can pick reasonable risk. Given the backdrop, we tend towards Higher Quality in the portfolio. Haidi we have seen asian dollar bond spreads really blowing up. Do you expect this to continue . Neeraj i think there is probably more reason to go in this direction. We are still in the midst of understanding the outbreak of coronavirus. Everyone is looking at the possibility for Monetary Policy and the fiscal policy that can come in. The issue that matters the most is the containment of the spread of the virus and how far and and its mortality rate. If we see containment in the weeks and months coming, you will see part of the demand coming back for these risk assets. Others see the risk premium moving higher so it looks more attractive. Haidi what does that mean for issuance . We have seen Companies Going to market even in the last few days. Neeraj i think issuance is going to slow down. Credit markets is from a technical side in terms of supply, it is self correct. Volatility going up, the equity market is picking up a lot. Issuance to slow down in the coming weeks specifically for the highyield credit. There is a lot more cautious attitude from investors in the market. Marketse are seeing the laser focused on every coronavirus headline. Ignoring someps other remaining issues out there such as geopolitical risk or the fact that the trade war has caused but not necessarily over . The trade war has paused but not necessarily over . Neeraj this is probably the most important issue that people need to understand. But it has a low level of predictability. It is an unknown for investors. I would not underestimate the risk of geopolitical issues. The u. S. Politics is picking up. Over the course of the coming weeks and months, the markets will move to the other issues. From a broader perspective, what we need to establish is if we are we moving towards a risk recession or growth slowdown . Given those risks, we are seeing fed fund futures fully pricing in three rate cuts. Is that feasible at this point . What do you expect from asian Central Banks as well . Fed,j starting with the the fed is going to be watching this very closely. The market is pricing in a reasonably high probability. I would argue that the fed will still watch this closely to see how things will evolve. The fed has limited menu ammunition. Do have room from a liquidity standpoint to think about how and when they will purchase. You will see a balance. From an asian standpoint, i arek most asian economies tilting towards the dovish side. Looking for rate cuts in the coming months. Their art towards him issues as well as supply chain issues. They will lean towards more easing in asia. You for joining us, neeraj seth from blackrock. We are getting an update from new zealand in terms of escalating travel restrictions that a number of countries have put into place regarding countries that have had coronavirus cases. They are protecting against the coronavirus saying they will be imposing travel restrictions on coronavirusthe cases there. And the government will not be exempting students from the travel ban. There have been petitions to let some of the International Students come back so they can start school again after they extended the china ban for another eight days. Laceve also seen that take in australia as well. Let us get you the latest business flash headlines. We will get you that next. This is bloomberg. Let us take a look at how we are trading in terms of markets coming online. Indonesia seeing new pressure points. As a result of the coronavirus. Is that part of conversations traders are having . The virus situation is day by day. Its impossible to imagine what we will see next week. This is a very fluid situation. It seems as though we get headlines minute to minute. You dont know whats going to come next. Particularly heading into next week, many traders dont want to belong headed into the weekend because they are unsure of what headlines will drop over the weekend while trading is closed. If we will see this escalate much further at that point in time. Starting next week, we will start to get a good amount of data that will start to encompass this coronavirus time. We will get jobs data out of the united states. Australia,ting in another hectic week. Of course, trying to assess what is going on with the coronavirus, what that means for the economy comes first. Details ofing more the closure of tokyo disneyland. They will be closing tokyo Disney Resort through march 15. Have confirmation from japan saying that schools will be closed from march 2 as well as continued to get concerns over the spread of the coronavirus in japan. Longer from home is no just a privilege. Its a necessity as thousands of businesses are trying to figure out how to stay operational in a virtual world. To assess the impact of this on Business Strategies and insurance policies, we have our next guest. Joining us now from hong kong. Great to have you with us. Seenrms of what you have and the clients you have spoken to, was the Business World prepared for Something Like this . I dont think the Business World was prepared for the speed and pace of this. Many companies had Business Continuity plans in place. Implementing those and doing it on such a large scale was quite difficult for companies. Right. In terms of where you have seen strength of where the influx implementation has seen, has there been any trends on an industry basis or in terms of what the type of Preparedness Companies have undertaken to ensure that they can effectively work in this environment . There are a lot of businesses, you can have the best work from home set up in the world, but there are some things you cant do without facetoface contact. Exactly right. Companies are doing to make things at the moment. They have to ensure the precautions for their employees are in place. They are looking at how things continue to operate. Precautions for employees, a day by day proposition. A lot of it focuses on sanitary supplies, masks, etc. With regards to continuing the operations, it gets challenging. Weve had all kinds of alternative arrangements. Home seen working from across a lot of companies all across asia. It is quite challenging for everybody to manage. When it comes to Insurance Coverage for these kinds of health crises, how do asian businesses stack up . Theres been a lot of question about whether asian businesses are better prepared with regards to their continuity plans. The reality is, there are good preparations that we have discussed around business preparedness. There is limited coverage around insurance. There has been pandemic insurance that has been available in asia and other parts of the world. For the most part, its a very difficult risk to assess. It turns out to be quite costly for companies to afford. Is, itsty is can more about Business Interruption insurance which has limited coverage for these kinds of health epidemics. Seeing how employers need to look at what Insurance Protection they have for their employees in regards to medical care and how expensive that is to cover. Movese you seen any more to relocate offices . Especially when it comes to hong kong. Before the outbreak, there was months of protests. All these businesses have been affected. Disruptionly, the that hong kong has experienced has actually meant that we are better credit for the situation now with the coronavirus. A lot of companies had to implement working from home practices, different it working practices. Hong kong has been able to adjust to that quickly. Is, it will be a sustained time that we will be doing this. We are not seeing any wholesale movement of Companies Looking to relocate their offices. There is so much uncertainty. 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