Matt the coronavirus spreads stateside. New cases across the u. S. Including in new york city. President trump meets with pharma executive today as the global death toll passes 3000. The fed is in play. Policymakers stand ready to cut rates but doubted they can fully offset the virus in fact. Goldman sachs sees a 50 basis point reduction this month. Berlin reports its first case of the coronavirus. Italy seeks a wider deficit to pay for emergency economic measures as cases soar. We are under an hour away from cash trading in europe. You are getting 1 to 2 gains in futures, the ftse futures up. This is after the biggest route we have seen, we saw last week since 2008 for the broader stoxx 600 european index. Getting gains in the preachers in the u. S. Are not as sharp but we are 7. 5 hours away from the start of trading there. The nasdaq, down, many contracts rising this morning. What are you seeing . Money going into risk assets. That is the theme through the Asian Session and markets expect a lot from Central Banks. Whether they can do a lot on their own is debatable. What can the fiscal side do, what is the Global Leadership going to do . We will hear from the g7, if they will give reassurance and how much can be believed in the containment measures through dort this is what things look like better than friday, better than last week. Really interesting to see the Chinese Market bouncing to the extent it is. That is a slightly separate story from the other bounces which are driven by what can Central Banks do. On thes a focus infection rate coming down and recent data which is reassuring. That is what we are seeing on equity markets globally. There could be something at the margin to suit things here soothe things here. Indonesian week, assets in focus as we look at the indonesian government announcing its first case. Indonesia was a feature, but also new zealand and the United States. New zealand is interesting because there is a case as we know over the weekend and we have an expectation of action from the central bank in new zealand, movement in the u. S. Tenure illustrating how we are 10 year illustrating how we are seeing adjustment from the flows away from risk assets and enter the safety of sovereign bonds last week. Into the safety of sovereign bonds last week. Iron ore is up in singapore. Lets go to our managing editor. Grilli good to have you on the program really good to have you on the program. How much do you believe in the rally . You made the point even in bear markets we see squeezes higher and equity markets, easing out what we are seeing today. Are we back to selling later on . Mark i think we are maybe not for a couple of days but in the weeks ahead we have lower rises to trade. Overall this story will evolve into one of Economic Impact. Recession risks will be a global thing to ponder. Only get these riskaverse , risk aversions, it is a genuine a versions, it is a genuine one. Monetary policy will make us not going to the worst Case Scenario and then panic takes over and we have brief times of shifting the price lower. Now we have the shift over last week. We will be going drop to optimism. It might only last 24 hours or a week. We will have to pricing in the massive disruption into the supply chain we have seen because of the chinese economy shutting down. It is not just the bear market. We see the most powerful shortterm moves higher. 4 move 24 0 move into days. It is because it is in the bear market when is short it is most portable to the squeezes. You dont see such rallies in a market that is when you see as it was volatility. In the next couple of months if we will see lower prices you will also see plenty of very shortterm to present squeeze higher in the index as well. Higher in the index as well. Matt i have this on my chart. , have got it for the euro area which is, you can check it out for asia, the u. S. , the euro and click into this chart and see how much financial conditions have tightened. It is clear the fed has some room but the ecb seems to have no bullets left. What can be done for the euro loosen financial conditions . Mark it is not just the euro area. Many countries in the world are near zero rate or below. Therefore it is hard to know what they can do. Many countries have applied serious qe. Will more liquidity change this . Cheaper rates, cheaper ability or money to cure people doesnt cure people. People not going out and factories closing down isnt being helped. That is why traders are nervous. Academic problem and risk which would really be solved by monetary policy. Of course it eases some of the concern and the immediate pressure of Companies Going bankrupt but it doesnt solve the underlying problem. Even though there is a big expectation Central Banks will respond globally in the weeks ahead and that is why we have a lot of volatility, we are going to get powerful rallies, overall for the next couple of months we will see equities trade lower as people realize there is going to be this severe economic slowdown that will feed through in the next few months. Anna lets focus on the data we have had thepeople realize last. Some of that comes from china. The pmi taking the market by recep by surprise. We need to be mindful will we see the pmi from various countries, mindful of the time horizon, during which the fieldwork was done, the collection of the data. It has been a recent phenomenon expectations of a more severe Global Impact have come through. That relates to Business Expectations as well. Mark that is right. The pmi is the most important one today because we are getting the full release. The services on wednesday and they are seen as a highfrequency, quite a forwardlooking indicator. But the coronavirus threat was mainly perceived as a china problem until about a week ago. In all of the pmi numbers, output will be affected by the threat of coronavirus. They knew it was a problem in china after the supply chains. There was a problem for demand out of china but they didnt know of the domestic threat. When the surveys were done a credit virus was not seen as a big problem in europe or the u. S. , not even the rest of asia, i think those pmis will be very misleading in terms of not as low as people think. People knew of the china problem. Now you have got other data which will come through later this week and again most of the data is looking back to january or february with coronavirus impacting massively. It has been a recent story. Think of the country data which could fuel the shortterm positivity. We could get a scenario where the next couple of weeks is about Central Banks providing stimulus, cutting rates, getting data that doesnt look bad and everyone saying this is a false threat. And then we start realizing how bad the economic blow this will be. Matt thank you for joining us. He is the bloomberg mliv managing editor coming to us out of singapore. We will take a look at your stocks to watch including toto, bp and shell as the coronavirus hits demand for oil hard. Remember Bloomberg Radio is live on your mobile device or dab Digital Radio in the london area. Tune in. This is bloomberg. Anna welcome back to the european open. 48 minutes to go until the start equity trading day. Based on expectations of what Central Banks can do here at the margin perhaps, that is set to continue equity trading day. Through the european session. We see European Equity markets called higher at the start of the monday trading day. Lets get to bloomberg first word news. Reporter the number of coronavirus deaths around the world has risen above 3000. The total number of infections over 80,000. New york city has reported its first case. A woman is isolated in her manhattan apartment after contracting it in iran. The governor said it was a matter of when. Organizers have canceled the first two races of the motor gp season. This comes as the coronavirus has led to travel restrictions across the globe. The opening race was set to take place on the outskirts of doha next sunday. Oils freefall has been halted by opec. Pluripotent said mark russia is rooted to support the World Oil Market even though it is comfortable with karen prices. Prices. Nt Oil Consumption may not slow at all in 2020 some say. The southden has won carolina primary. It moves him closer to Bernie Sanders. Great Buttigieg Pete buttigieg has pulled out. , super tuesday, 13 delegates hundreds of up for grabs. South korea says the north has launched two unidentified missiles off of these coast. This is on the anniversary of the failed hanoi summit. The north Korean Leader said he was no longer bound by selfimposed weapons tests. 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. This is bloomberg. Anna, matt. Matt thank you. Laura wright in hong in london. Your stocks from around the newsroom, Annmarie Hordern is looking at nokia. Our Equities Team is covering oil stocks. What is the leadership story at the mobilephone maker . Reporter the see sweet is isnging in c suite bringing in someone new after they failed to bring gain traction. They are falling behind ericsson and huawei. What nokia says this person brings to the table, consistently delivered on shareholder returns am a Strong Player in the Global Energy sector very whether or not he can bring the same kind of momentum into nokia, we will see what the market thinks of it. Storyreally interesting given the focus on the big picture moves around coronavirus. This is where the virus comes in once again. Interesting trade on oil dropping at the start of monday session in asia but now on the rise along with other risk assets into the european session. Reporter what we are looking for today after the carnage of last weeks pockets where you are going to see last weeks pockets where you are going to see recovery. Oil will be one of them. It is quite a way up. Futures in europe or higher. The oil stocks are going to be higher. It will be a busy week. There will be an opec plus meeting later in the week. There are concerns about how much of the virus was hit demand. There is a lot of moving parts. Anna thank you to sam and annemarie. You can get all of the stocks stories our team is covering. Go to the bloomberg or through the mobile app. The fed is in play. Policymakers open the door to a rate cut to cushion the blow of the coronavirus. How low will they go . We will ask the questions that matter. Tune into Bloomberg Radio live on your mobile device or dab Digital Radio in london. This is bloomberg. Manus welcome back. This is the european open. We are 41 minutes away from the start of cash trading across europe after the big drop that we saw last week. We are seeing a bounce in futures this morning. Lets get to the Bloomberg Business flash. We go to laura wright. Reporter Elliott Management has taken a stake in twitter. The activist investor is pushing for changes including replacing jack dorsey. Nolearned the sale comment from either side. We could not determine the size of elliotts stake. Deutsche bank facing scrutiny. The Financial Times as it has to give money updates on and take money money antimoney laundering. Concerns stemmed from an incident in which the bank mistakenly sent data related to the transaction of 500 clients to a corporate customer. He was regulars told boeing pilots may need additional training. U. S. Regulators told boeing pilots may need additional training. It includes replicating the mistakes of the two fatal crashes. It is the latest application for efforts to bring the max back into service has been grounded for more than a year. Grounding flights and planes. The german carrier is casting as much of efforts to bring the max back into a quarter of its t and medium haul flights. The first annual decline in present passenger demand in over a decade. That is your business flash. Thank you. The worldwide death toll from the coronavirus has gone past 3000 with the operate now reaching more than 65 nations. That is as chinas economy could be heading for a worse than expected firstquarter contraction after activity reported at a record low in february. We are joined by our reporter Sophie Kamaruddin with us from hong kong. Spring is up to speed on the global spread before we dive into what has been going on on the chinese data. Sophie we are seeing a pickup in cases through europe, north africa and the u. S. With cases in california, Washington State ad new york citys seeing positive case. In italy we have seen a jump of about 50 in the attempts to seek a widening of the budget deficit in order to get relief measures. In china we are seeing continued to climb topping 80,000 on the mainland. This as we are exciting more stimulus from policy makers to offset the impact of the virus. Slowdown you seeing a in the growth rates . Sophie when it comes to the cases in china we are seeing a bit desperate of a slowdown in Hubei Province seeing a bit of a slowdown in Hubei Province, not as negative given the containment efforts but it doesnt mean authorities are not on high alert which is still seen as several countries maintain travel restrictions to an from the mainland. We are seeing a pickup in fatalities elsewhere. Iran is a growing worry. The who is sending a team to investigate. Here onhave got a chart the bloomberg terminal, 3801 if anyone wants to check out the rate of increasing the rate of infections in china. It is slower. The markets attention has gone global. We have pmi numbers out over the weekend from china and i wonder what they tell the overall number is disappointing but what do the numbers really tell us about the impact the virus and containment activities have on an economy such as chinas . There is weakness in the supply chain, exports likely to take a hit. We got a private gauge of chinese pmi out reinforcing the outlook and so the chinese economy is expected to contract in the First Quarter and for 2020, anz and barclays among those seeing growth for the chinese economy. This outlook, policymakers looking to provide support. On sunday the pboc and financial regulators financing chinese lenders will be able to delay, recognizing bad loans from until the end of june. A reprieve for borrowers but it means bad loans will pile up on the mainland as the economy slows. Matt Sophie Kamaruddin reporting on the virus for us. Joining us to talk more is the cio at a bp invests. Warned of this kind of Market Reaction you had warned of this kind of Market Correction when you were on surveillance. Do you think it is done . Have we passed the worst . It was not warning against the impact of coronavirus. I was not expecting such a move. It was mostly ahead of the super tuesdayi thought the markets wet really taking in proper Political Risk in terms of what the price is good come from that. That was because of the valuations within the s p. The markets were overvalued, expensive and whatever triggered the direction would have had the impact. This is the trigger rather than the cause for the s p. Anna you saw the market was ripe for this. I wonder what we can learn from the way the chinese equity market has responded because china is ahead in dealing with this. Csi, wemazingly on the seem to be back to where we were before the market was really focused on this in china. Does it tell us about something out when the city authorities taking really Decisive Action . There is pentup demand. So the vshaped recovery will certainly take place with a stimulus especially if it is between u. S. , china and europe. That is out of the equation. We will work ethically in terms of the recovery. D demands some misse like conferences and events which have taken place. I was going to be with matt today but the event which was going to take place was canceled. Rescheduled for may. Another event was also canceled. Other events in other cities have been canceled. So there are elements where a vshaped recovery will take place and others where it will not. The stimulus will be sufficient from the various policymakers but in terms of recovering as we had, not necessarily. Anna you have been looking at the car sector events. To go toas supposed geneva today for the auto show and i was going to go to delhi to watch the first round of the moto gp. Both of those have been canceled so we are all going to stay where we are. You are going to stay where you are. From him. Chinas factory activity registers its worst month ever 30 we will discuss the Economic Impact of the coronavirus. This is bloomberg. Were down 1,000 points on it matt welcome back to the european open. 30 minutes away from the start of cash trading on this monday morning after a disastrous week for anyone long stocks. Last week the worst for the stoxx 600 since 2008. Im matt miller here in berlin with anna edwards at our European Headquarters in london. Anna . Anna now, the coronavirus is spreading state side and u. K. C. New cases have been reported across the United States including in new york. President trump is meeting with its pharmaceutical executives today as americans grapple with the prospect of a widening epidemic. Lets get back to Thanos Papasavvas. C. I. O. At a. P. B. Invest. We heard from the fed on friday talking