Investors say there is little chance of warding off a recession. The bank of japan is next. Governor kuroda may be more aggressive as the virus further weakens the economy. U. S. Futures start trading in the negative right now. Under pressure right now. 3 percent. Even after we saw the worst day since 1987. Forident trumps travel ban europe not today well with investors. Take a look at what we saw throughout the session. It was an incredible day on the s p 500. The fiveminute trading. If you can switch up the board, you can see what happened throughout the session. We were down 7 . We did see a little bit of a bounceback around 130 when the fed came in with surprise Market Operations. We have the fed ramping up measures to help the markets and liquidity with more than 5 trillion being promised. 1 30, that Center Markets a little higher. That did not last long. You can see how the 10 year yield did manage to pervak some lower,e but it was still around. 8 . The same thing for the u. S. Dollar. We have those gains being reversed a little bit with the fed Market Operations. That after surging to a threemonth high. We did see the hit in the commodities market. We had oil continuing to fall toward that 30 per barrel level. We are on track to see the worst weekly decline since 2008. Gold is unchanged. Tohave some investors trying sell a haven in order to get liquidity. They have to get liquidity somewhere. Gold suffered, we have seen that trend throughout the week. We were just Getting Started in asia. We are looking at deep declines across asia. We are seeing losses of nearly 8 . This is the worst week since october of 2008. You have the original benchmark trading. We have worst Case Scenarios being mapped out. The asx 200 losing 50 for the record by the end of the year. There is extreme pessimism building across the board. Global stocks are building into bear market territory. We are seeing a big surge back above 70 for the First Time Since december of 2008. The questions are about how we will see support being provided for the most vulnerable in the economy. , we willk to the fed show you what happened right here. A steep drop in that space. Expect that to continue. Lets bring in our chief Market Strategist here, brett ewing. Great to have you with us. We have seen really aggressive action. We are talking about a pledged 5 trillion for the markets. Why havent we seen a stronger bounceback . Believe you did not see a bounceback because those moves, the 50 basis points have been priced in already. I believe you will continue to see a market selloff until we resolve a lot of uncertainty. Markets dont like uncertainty. We are facing uncertainty on three fronts. First, uncertainty in the United States on the virus. We dont have enough tests for anyone to put a true model together on how this will impact our economy. I think we will have a little light on that in the coming weeks but we dont have a lot of clarity right now on the Federal Reserve. They have done some action and that is great but they have already been priced in. What is important is that they get ahead of this issue next week. Give the marketplace some clarity and confidence that they will stay ahead of this issue Going Forward. Or it will eventually get to the credit market. Already we have had the biggest a in credit spread in the past two days. That is a larger blowout than we had in 2008 in any given two days. I want to point that out. Thirdly, it comes down to uncertainty with the fiscal policy. I think congress probably has the lowest vote of confidence right here. Partisan politics have no place when we are dealing with the economy and with peoples health. I think the market has every reason to sell off like it is doing. What we need on the fiscal front is partisan politics to go to zero and to come together and focus on economic benefits. We also need them to focus on Health Benefits and allow our citizens of the United States to deal with this. Given what we have seen so far. Toitical partisanship going zero seems very unlikely at this moment. I dont see any catalyst coming forward in the next two days other than the fed potentially doing Something Big that could help the markets. You are saying in your note that youre actually buying. Why buy now . Believe thatt anyone walking this earth can measure a market perfectly. I think we are close to around 25 selloff year. Equities lookk more attractive than bonds. We may not bottom tick it. If youre buying equities, you should have a 10 year time horizon. That is the focus we have to stay on with our clients. Yes, we could go a little lower. 15 even. That is ok because if you look out 36 months, i think a lot of this will be washed behind us. We are just getting breaking news. Victorian premier talking about the speculation as to what happens with the grand prix. That begins today and goes into the weekend. They say there will be no spectators at the melbourne f1. There has been heavy criticism for letting these go on. 180,000 people expected to congregate over the weekend for the melbourne f1 event. This goes to my thinking but you see the market time and time again underwhelmed by what Central Banks can do, what fiscal packages are being unveiled. Has it gotten to a point where the physical Monetary Policy side is no longer what is needed and they are really looking for leadership when it comes to the Health Care Crisis and the management of the virus itself . Not just supporting the markets with another pboc push. Think there are three fronts to the level of uncertainty. It has to do with the virus. Over the coming weeks we will get some clarity about where we stand in the United States and around the world. We are doing more tests every day around the world as we move forward. The markets like transparency. I think that no matter what the tests come out, the market has priced to that in. What the market does not like is not knowing and having no way to deal with what is to come. On thead some clarity real statistics about this coronavirus, i think there is a lot of modeling we could do on the economy as economists. I want to throw up a shot, taking a look at what we expect from bear rallies after market aftermarket falls into fair territory. Greatarkets can produce rallies because you have this extraordinary level of volatility. Is there a risk of complacency when we get these dead cat bounce or slight recovery rallies . What would you be comfortable with buying at this point if these see further downside price action . Brett i would say the last two days have been cute. Everything has been sold off completely. At some point, no markets go straight down and know markets go straight up. Yes, a relief rally into next week. I think we get a lot of clarity on the Federal Reserve. I do believe we are going to get some framework on some fiscal policy dealing with the economy out of congress. Have seen the carnage in the travel industry, not surprising given the travel restrictions. Are those sectors cheap for you . Are they dangerous to go into right now . We are looking at those areas. Of the bought some stocks in that area, i will go into specific names right here. You have a lot of selling pressure across the board. I think there is a lot of etf selling. That does not distinguish the good stocks from the bad stocks in this arena. I think it commoditize is all of the travel and leisure stocks. I think it presents a great opportunity for stock pickers like our firm to go and cherry pick a few that we think will come out looking really strong in 612 months. Why do you like small caps . We are seeing the biggest names going after credit lines, maxing out credit lines, wooden Small Businesses suffer the most . Throughout this crisis, we to higher credit worthy largecap stocks but we do like small caps stocks. They have retraced around 40 . I think they could have another 510 ago. To go i think the opportunities are cherry picking through the carnage and picking individual stocks within the smallcap and midcap arena. Thank you for joining us. That was brett ewing. Jessica the bank of japan seems likely to extend its Stimulus Campaign next week to limit damage from the coronavirus pandemic and reassure nervous markets. Governor kuroda may take a more aggressive stance in buying etfs. Whether the boj will raise its 58 billion in purchasing target is unclear. It could depend on the state of the market. Made a task reserves to help alleviate the crisis if virus cases spike. They are preparing a second support package. It already allocated almost 5 billion u. S. Dollars last month for medical care and business. The last time the government tapped reserves was in january of 2009 when the financial crisis threatened recession. The government used funds to help property and ease tax burdens. And i vance has the Virus Outbreak could be part of a biological attack. Says the Virus Outbreak could be part of a biological attack. The virus has already claimed more than 400 lives in iran. There is evidence that race is a possibility. Virus has hit theater land with broadway dimming its lives lights indefinitely. Banning people. Broadway is a revenue earner for new york. It generated 1. 8 billion last year but the venues will be closed until at least april 12. Global news, 24 hours a day on air and on quick take by bloomberg, powered by more than 2700 journalists and analysts in more than 120 countries. I am jessica summers. This is bloomberg. Coming, Emmanuel Macron because the coronavirus the wrist epidemic of the century and that the french government will do all that is necessary to save lives. We will be getting an update out of europe. New york city declares a state of emergency. We will discuss all of the latest development in the u. S. Look at how the markets are trading right now. We are seeing u. S. Futures continuing to fall, accelerating those losses. Worst day since black monday, 1987. This is the sixth consecutive session of losses with kiwi stocks falling the most. We continue to see Dollar Strength while w ti is down 1. 8 and headed toward 30 a barrel. This is bloomberg. You are watching bloomberg. It is a cloudy night in new york city. The city declared that state of emergency. We have over 300 confirmed cases of coronavirus. The new york authorities have that have over 500 people. Rules will apply to broadway theaters as well. The city is coming to a standstill. The Infectious Diseases expert trumpspresident european travel ban. Max also said that the testing system around the United States is failing. How could it be failing after the weeks of time we had to get ready for this . Ofis a failure communication, urgency, a failure by the cdc to use a version of a test that was already working across the world, under developing its code. For the Trump Administration to not push for broad testing to identify cases. All of that is combined to create a situation where we are still playing catch up with cases that have existed for a while or people who need a test can get them. Where we are just unable to track and break the chain of transmission for cases all over the country. It seems like we are finally starting to get some capacity boosts to get to a point where we are at least close in areas of most concern to getting the number of tests we need but there is still much more that needs to be done. Developing pointofcare tests, more rapid swabs get into labs. A lot of still to come. Some progress, a lot of it too late. Is it fair to say we have moved past in terms of flattening the curb . We have moved beyond the window for containment . The focus is now on mitigation. Brett partnership said political partisanship has no place. A lot to ask for. Max i would hope that is the case but we are already seeing a spat between President Trump and house democrats. Later mitchey mcconnell having a problem with this demos package. It is about providing paid sick leave for people who dont otherwise get it, working to make sure the tests and care are covered for people. Beyond thet will get point where everyone is trying to cross things off their wish list or win a political fight and just focus on doing everything we can. Even that bill is missing some things that need to be done. It is time to think about building temporary hospitals, measures that help combat the too sensiblere not in bringing the number of cases and hotspots below the level of capacity. President trump now banning or restricting trouble from europe. Does this make sense when we are already saying Community Transmission so widespread . Beenw that it has endorsed, it makes me feel a little bit more positive about the move. It can really only have a limited effect when we are seeing such Widespread Community transition transmission. The issue is no longer travelers. It really is the people that we just dont know are spreading it. ,hile it may have some impact what will need to make the difference are the social measures, canceling school, canceling events to get the spread though enough that hospitals will get overwhelmed. Thank you for joining us. Nisen. S max nathan this is where criticism of the central bank coming hours after the booster that kept rates on hold. Matheson joins us now. We continue to see expectations that it will be Central Banks that do the heavy lifting to try to combat the damage that we continue to see globally from the virus. S france and italy are pressing for really coordinated action from the ecb and the unusual criticism is Christine Lagarde saying that it is not enough. She says it is not they are not in the business of hounding the bond market. Governmentselling to do more. The main theory behind what some of the central bank is saying is that spending needs to go to companies and for ordinary people in the fiscal cents to tide them over because this is not a structural shock. It is an external one for economies. The priority needs to be to keep the doors open and companies afloat. They arerobably why reluctant to do more at this time. When it comes to germany, it seems to be coming around their balancedbudget policies they had in place for a long time. That is right. That is very important. Germany is the economic engine of europe. Angela merkel holds a lot of sway. Thiss the one that held idea of a balancedbudget policy. What we are hearing from officials is that it is increasing talk in the circles. That would enable other nations bus thosesuit and to rules that are essential in brussels in a physical way. Likecularly for countries southern italy. The germans have not formally said they are going to do that. Much theyreow how willing to go beyond their budget policy but now the doors are open from germany to say they will do that. What kind of reaction have we seen on President Trumps travel ban in europe . There has been loads of anger. In part of what it would do to the airline and travel sector but also that the u. S. President couched the travel ban. He was quite critical of europe, saying that they are not doing enough to stop the virus. It came from asia to europe to the u. S. He believes the u. K. Is doing fine even though the number of cases in the u. K. Is higher than in some European Union states. This also caused a lot of anger. It comes against that florida backdrop of the transatlantic tensions that are going on with everything from trade to nato. This contributes to the overall feeling that trust is really rising across the atlantic. Risingistrust is really across the atlantic. Plenty more to come on daybreak australia. This is bloomberg. Youre watching daybreak australia. We continue to see Dollar Strength. Aussiee picture for the and the kiwi dollars gaining ground. We have the aussie selling off after disappointment about the 11. 4 billion fiscal stimulus plan that was announced by the government. The kiwi dollar fell for four consecutive sessions. We are seeing strength on the japanese yen. This is bloomberg. The market opens for friday. Front of the 13th. Are pointing very firmly to the downside. Aussie stocks slumped deeper. We could end at the year 50 lower for israeli stocks. This is after u. S. Stocks plummeted yet again. Haidi i am haidi stroudwatts. What an ominous day. Youre watching daybreak australia. Lets get the first word news. The coronavirus handed wall street is worth session since black monday in 1987. Stocks 27 percent below where they were three weeks ago. New york state declared a state of emergency after President Trumps action plan fell flat. Reports passengers are paying enormous sums just to change flights. Meanwhile, the United States is admitting efforts to contain the virus are failing. The Trump Administration paschi Health OfficialsTell Congress that the u. S. Is lagging behind and ensuring people will be tested. The system is not set up to carry out tests and the way that other countries have been doing. He said Public Health experts dont have a clear understanding of how wide the virus is writing. European markets went into meltdown after the virus stimulus plan proved underwhelming. Investors dumped stocks and bonds and shares of following the most on record. Policy makers held off cutting rates. So its worst drop since 2016. Global sports are pulling back in the face of the virus as well. The mens tennis circuit is being suspended indefinitely. Hasr League Baseball stopped springtraining and the nhl has joined the nba in suspen