India italy locking down the whole country. Lets get straight over to the markets now, we are joined by Sarah Ponczek. One of the one of the highlights . Helling say the the selling has not stopped. Saw a limitafter we down in futures yesterday, we and at the same time we have new zealand coming on, getting closer and closer, well below the 200 Day Moving Average which served as support earlier on. At the same time, we have seen dollaryen moving closer and now the yen is trading at the highest level. Prior to the president ial election in the United States, and also, the vti crude oil extending losses again after the worst day since the 1991 we have seen absolutely massive moves. Day, we didf the close down 7. 6 and if you look at the different barometers, we have seen massive moves. The average move over the last eight trading days has been 3. 7 , that is the largest going back to 2008, so to put into context the amount of volatility we have seen, the vix also at [indiscernible] lets get more on the market wrap right now. How much further have we got to fall here . Has workedthe market itself into a position where we do need monetary authorities to come up with something strong and possibly what is lacking in terms of a fiscal response always seems to play catchup even though we have been doing. His for several months now you say we are waiting on it fiscal response, we are expecting a monetary response at. East what is your base case for the next move for the fed . Cut and i they will think it is subject to how much volatility we wind up seeing. I would expect them to calm more forceful than they did last week. I think they tried to save some of the ammunition in the market. Whether it is dollar liquidity that we saw earlier today. I want to bring of the chart curve nowentire yield below. Is intervention needed in the bond market, Something Like yield curve control . I think of this point, and it is unfortunate were talking about in this type of context, lower rates are nothing to demand when it comes to the type of issues we are dealing with. We are trying to pull volatility of the market so there is one less trigger for societies to retrace the ways this virus is created whether it is by decree being veryies and cautious. Bull market dont die of old old age. What has it been killed by . One of the things to remember is ultimately we will get through this. We hope it is sooner rather than later, but we are going to have Monetary Policy as loose since really the crisis errors and when it is compelling, we want to think about how we will put that into work. Theres a lot of conspiring against the markets and really, were going to see a global recession is not just in anybodys playbook and it does price back quickly. Has a recession that is inevitable, do you think it is inevitable . Im not quite there yet. If we go by the official cases, i understand theres a lot of concern of the data and with a response. If it is closer to a seasonal flu, it is a Beautiful Day in the northeastern United States and maybe that would be a trigger for us to hopefully walked back, but at the moment it is certainly hard to see at least the intensity of coverage anytime soon. Here whereomforting winter has yet to begin. Here is the next up relative that we hear all the gains have been wiped out. How likely do you think that will happen . I think from an equity evaluation perspective, that is not out of the question. We really have adjusted to changes in the bond market is more than even what the equity via has been, so i would get used to volatility and get a handle on both monetary and the as hard asng to be anything we have dealt with. We have not even mentioned the oil markets. Are you looking for any Circuit Breaker or catalyst that brings an end to the Oil Price War . Unfortunately, no. It is in with the broader commentary and now you have supply issues going along, so it was, in addition to many of the data points we received, the last thing we needed to add to the mix, certainly u. S. Yields are pricing in just how hard it will be to get rock on. To certain degree, not too much, but it shows the growing concerns around inflation and how commodities will come back to stop i wanted to return to point come back to. I wanted to return to your original point. The i think we need bipartisan support for more than just talk and studies. Theres very low expectation for something, certainly europe is dealing with it. You have the ecb later this week, so lets start there and hope our administration and Congress Starts to take this more seriously than what we have seen. Thanks a much for checking the first word news. Capacityre expanding cuts as demand continues to be hit by the coronavirus, nearly all of the airlines will be grounded with just two of 12 still flying. Alsoget division reduces by half. Candidates return states vote. X Bernie Sanders hopes to repeat of fourigan victory years ago to keep his campaign going. First time states decide since the race was narrowed to two. They denounced those as fraudulent and said he is the rightful leader the impasse threatens the peace deal between the u. S. And the taliban. And, led zeppelin has won an appeal that says they did not steal the rift for stairway to heaven. The court said they did not take the vital series of notes by a californian band in the late 1960s. Global news global news 24 hours a day, powered by more than 2700 journalists and analysts in over 120 countries. Thanks very much, still to come we look at it bouncing back, but of next, italy has locked down the whole country in a bid to spread the coronavirus. Prevent the spread of the coronavirus. Lets get a quick check from the latest business flash headlines. We are actually talking coronavirus andy situation in threats of a the coronavirus continues to grow. What is the latest . Announcementd an from the Prime Minister they are going to expand the measures taking place to the whole of the country, so they will then sporting events ban sporting events, things like going to the jens, swimming pools and now they are going to restrict movement. You can only travel around for work or healthrelated reasons, so this is a way to encourage people to stay home as much as possible. Can you give us an impact a sense of the impact of the extremely radical decision . It will be a very big hit for the economy. Clear it will be sharp. Entire sectors like tourism or facinglity a really essentially zero revenue at the moment or close to that, so it is pretty dramatic. Has italy has a very large so all eyes are on the European Central bank which would meet on thursday and decisions you might take to contain the impact of the market. We also have news out of germany concerning debt and putting an export ban on masks. What theell us reaction has been for the rest of europe . Isi think what we are seeing a number of European Countries as italy,ing the same just with a delay. It is just a matter of timing, so i expect other european governments to come under pressure and take measures that not justing germany, but also france seem to. E doing at the moment any expertd not be i think any goods, so it is a very serious issue, but shows how governments are scared which would put an enormous amount of pressure on the health care system, especially with regards to intensive care units. We have the french president on thecooperation coronavirus. How can we rate the level of cooperation so far or has it been everyone for themselves question mark i think there has been a reliable mac reliable urgency. Governments talk about the need for a fiscal stimulus for things, but we have seen very government. E a fiscalas passed stimulus of 3 billion which is really peanuts. Andye virus spreads consequences become clear, in theents Work Together question is just how important the measures she will announce. Thank you so much for joining today. Increasees continue to around the world, they appear to wang inng with selina beijing. What can you tell us . A number of cases in china morenued to flow, but well than 100,000 cases in the world, but has not reached the level of pandemic all the it is getting close, despite other experts saying it has already reached which it means and and they make that has reached worldwide. They really want to focus the intention on containment and not spreading any panic, so the number of cases you have seen it dramatically slow down out of china, but now it has all in behind italy and they managed to mostly keep the virus in surrounding regions and they have been testing for the virus at the fastest pace around the world. What is the main priority for chinas government and corporations . You would think you could breathe a sigh of relief since the World Health Organization china representative says the peak has passed for china, but there is no guarantee this will remain the case as theres going concerned that it could escalate again as people come back from overseas and could reimport and someside of china travelhave put reverse and major cities including beijing need to carry out and overborder checks the weekend, the city reported that a majority of infections have been coming back from people overseas. Like the pressure is going to continue. Manufacturing firms across china have been telling bloomberg that the though they are operations, they are worried about it spreading worldwide and a half customers canceling orders. For instance, a Lighting Company says the virus has forced them to cancel client visits and exhibitions which means they are getting reduced orders and economists are worried that this is just the beginning of this even though china is recovering on the supply side, they have to deal with demand shock with lower demand around the world. Thanks for the update. We will be speaking to the World Health Organization later today, but for now, lets take a look prettyu. S. Futures, a brutal start to the trading week , futures not as bad as they were. We have crude in new york just half an0, a little over hour from the opening, futures lower. G sharply plenty more to come. This is bloomberg. Quick check of the latest business flash headlines. Shipments plunged last month according to data from china. This is it forced the closure of apple stores on the mainland. Apple has started reopening outlets in china to help sales and demand recover. Of chairman and ceo suspending their salaries to help the Online Platform deal with the fallout. They announced the move and other Senior Management set to half of compensation. Grab has shut offices in singapore and thailand as it begins a fiveday deep clean. They previously visited the theital and the coming says office will be closed and facebook shut its office. Still to come, we are going to take a look at the prices of oil as prices fall the lowest since 1991. Ease. Prices continuing to just about half an hour away from the open here in australia as well, futures sharply lower than 4. 8 . We have been hearing quite a bit out of australia, qantas cutting capacity further and the ceo will not be taking an annual salary for 2020 oh stop also been hearing from the australian minister Prime Minister who gave a speech and said the impact of the corona crisis maybe greater. We are awaiting news of a fiscal stimulus package, but the aussie above still holding, just . 66. Pretty close to parity. Plenty more to come. This is bloomberg. To repair not going itself. Many countries are going to be hit. To throw sos going much liquidity at this thing. I dont think this is a micro problem. Will not sort itself out before some further damage, unfortunately. Earlier guests weighing in on the global selloff. We just heard him say do not buy this dip. Investors not yet stepping into stem any of the bleeding. Cashs the worst day in the trading session since 2008. One point futures were off by 1. 9 . That brought the futures contract down more than 20 from the record high. Putting a bear market insight, when we do get to cash trading for the u. S. , tomorrow at the same time the kiwi under pressure, having its workstations 2008. I just want to point to this because the fear at one point fell to 31 basis points, you see this massive, historic move. But is not just flight to safety within the bond market and commodities, we are also seeing it within the equity market. Goldman sachs pulls together different baskets of stock based on the health of their Balance Sheet. So now with the oil shock, were dealing with the potential credit crunch and thats what investors are truly worrying about. StocksBalance Sheet outperformed the week Balance Sheet the most since 2008. The dow jones Market Neutral basket of quality, that means going long, shorting the lowest quality stocks. Longest sixday streak since 2009 so clearly investors are focused on the Balance Sheet right now. Paul thanks very much, sarah. We will get you across to President Trump now who is about on the latestfing response to the coronavirus outbreak. Lets listen in to that. Here we go. We are still waiting on president to make an appearance there. You see the Briefing Room full of reporters and other staff. As we wait for the president to arrive, what should we be watching out for on asian markets today . Sophie waiting patiently and nervously. I want to highlight reports with the vix. Riple digit territory making. Rspy can the weve already seen 100 call contracts after we saw the index jump to 2008 hike. Also a job in debt calls. Confirming the move with the are aside not expect the momentum to be ramped up with other factors coming into play this weekend. President trump i attended a very important Task Force Meeting on the virus that everybody is talking about all over the world, no matter where you go, it is what is on peoples minds. It something were going to take care of and have been taking care of, the American Public and the american economy. We are going to be asking will be meeting with House Republicans and discussing a possible payroll tax cut or relief, substantial relief, very substantial relief. Its a big number. We are also going to be talking about hourly wage earners getting help so they can be in a position where they will not have to miss a paycheck. Small companies and large cabbies, a lot of companies so that the dont get penalized for something thats not their fault. Its not their fault, its not our countrys fault. This was something we were thrown into and we have been handling it very well. The first ones ever to shut down our borders, weve never done that in our country before. The situation would be a lot more dire. Also we will see the Small Business administration and loans for Small Businesses. Were also working with the industries, the cruise ship industry which obviously will be hit very strongly. We want people to travel to certain locations and not to other locations at this moment. Hopefully that will straighten out sooner rather than later, but we are working with the industries. We are also talking to the hotel industry, some places will do well in some places probably wont do well at all but were working closely without tail industry. The main thing is we are taking care of the American Public and we will be taking care of the American Public. I really appreciate the professionals behind me and the professionals behind them and it different room. We have a tremendous team headed up by our great Vice President , mike pence. He has been working 24 hours a day just about. He has been working very hard, very diligently and very professionally, and i want to thank him and thank the team. I will have mike say a few words. Thank you very much. Thank you, mr. President. Todayscompleted meeting of the White House Coronavirus task force. We had the opportunity to brief the president on a broad range of issues, and once again, because of the unprecedented action President Trump took in january, suspending all travel from china and establishing travel advisories for portions of south korea and italy, establishing screening of all direct flights, all passengers from all airports in italy and bought aea, we have considerable amount of time according to all of the Health Experts to deal with the coronavirus here in the United States. Today, thebefore you risk of contracting the coronavirus to the American Public mains low and the risk of serious disease among the American Public also remains low. That being said, the president did deploy not just the whole of government approach but also the whole of america approach and last week at the president s direction we met with leaders and industries from Nursing Homes to airlines, pharmaceutical companies, commercial labs, and have had great input. Pharmaceutical companies are already working literally around the clock on the development of their pukes that will be medicines that can bring relief to people that contracted coronavirus. And i know how please the president was to learn that the commercial labs in this country led by Companies Like lab core and quest have already brought a test forward and are taking that to market effective today. This week at the president s direction we will be meeting with hospital ceos, Health Insurance ceos and all building on top of w