Emergency meeting. A Chinese Pharma Company wins approval for human testing of a vaccine. Governments around the world starting restrictions to slow the outbreak. The virus threatens to weaken chinas economy even further. Our review of the latest for the slowest and the end of the cultural revolution in 1975. Shery lets get you started with a quick check of the markets close. It was another down day. The rebound we saw in the previous session, we are talking about the s p 500 and dow and nasdaq all going down the s p 500, every sector was in the red. Energy was the biggest decliner. Oil sinking to a 19 year low. When it comes to the dow, losses of about 36 since the peak in february. We continue our way down. Weve heard about a second stimulus package coming from the trump administration. This was after the close ended during the trading session. We saw volatility Circuit Breakers also being. Possibly another down day. Asian stocks and futures trying to climb. We have taiwan, philippines, indonesia on tap. Rate cuts expected with falling oil making inflation less of a headache for these policymakers. Sharesr australian forming for the asx 200. Keeping a close eye on australian banks as the government is considering loan guarantees. Given the surging strike seen in the u. S. Dollar, the yen is trading above 108. Offshore yuan is at october lows. Mounting risk for the chinese economy. Keeping a close eye on cable, slumping to 1980 five levels wearing about a london lockdown adding to that pressure. We have the aussie dollar languishing by at 2003 lows, trading below 60 as we are waiting for the rba intermoving announcement, which may bring it on top of rate cuts. Aussie bonds are moving ahead of this. 10 year to a tenure high. Trumpshis as president second virus relief bill has been cleared as lawmakers rushed to follow up with a package that will cost 1. 3 trillion. Republican and Democratic Leaders are working on the details of the scale of that proposal, which could include 500 billion in cash handouts and loans to the airline sectors. Lets go to max, who covers health care, biotech, and pharma. Give us more on the details, and more importantly, trying to get a hold starting to control this Public Health crisis. What do we know about the Testing Capacity in the u. S. . It seems we dont have our Bloomberg Opinion columnist. But as i mentioned earlier, we have seen these measures coming from the trump in order to try to handle the coronavirus outbreak. We are talking about a second major bill. This was passed by the house, already being passed by the senate. President trump has to sign it into law. What the measure will provide is paid sick leave, Food Assistance, not to mention, help for virus testing. Haidi the question for the markets is the missing fundamental, which is knowing when we are potentially going to see a peak in global infections. There is no indication we are close to having that certainty yet. Lets get the latest on that part of the world. It now surpassed china in numbers of coronavirus cases and deaths as countries around the world struggle to cope. Ecb policy makers an emergency call to discuss their response to the pandemic. Lets bring in roslyn matheson on the phone from london. What is the latest when it comes to the situation in europe . We now have the news that europe has surpassed china in the number of confirmed cases of the virus and deaths. Most of those still clustered in italy. Including the u. K. And in paris, which sees ever more drastic decisions by policymakers, in terms of travel, blockades, and social distancing. The government now announced schools will in fact close. They had been holding out on that for some weeks, despite pressure to act. We also had the german chancellor using a very unusual tell address and television address calling on people to stay strong and invoking world war ii language, saying it is the biggest challenge to germany since. The british have said they have their government in essentially wartime footing. You see those rallying cries spreading across europe from governments and people to take action. Shery the german chancellor also backing down from their usual balancedbudget approach. What do we see, in terms of fiscal action . We see more stimulus packages coming up from individual countries, but also the prospect of more united action from europe as a whole. Thats where it becomes paramount, because Angela Merkel is the one who had been reticent to allowing governments to bump the budget. The Ecb Governing Council meeting tonight. It has finished, but we are waiting for the outcome. They will make an announcement about possibly asset purchases. We were told they were thinking about activating a bailout fund, which could pave the way for them to buy more bonds. Certainly, we are seeing a shift in germany, which is paramount to allow countries to start to spend a lot more and dip into debt to do so. Shery our International Government executive editor, thank you. Lets get back to the u. S. , the senate has cleared the virus as lawmakers rush for a package that will cost 1. 3 trillion. We are joined by max neeson, who covers health care, biotech, and pharma. Give us more details on whats happening with testing, that seems to be crucial in controlling the outbreak. The good news on that front is after weeks, where u. S. Testing has been badly behind, we are finally seeing some of the regulatory changes, some of the efforts to bring private testing labs online and taking hold, the giving beginning to give us Testing Capacity in the tens of thousands. A long way to go on building capacity to test people we need. Still seeing a lot of anecdotes and realworld evidence that people arent able to get the tests they need. And the second thing that we will need to happen is giving people more outpatient, more drivethrough options to get tested. We dont want people going to hospitals to get tested, especially if they are relatively healthy. What they will be able to do to remove risk of infection if they are not already exposed. Haidi the issue is with the testing lag and selective testing continuing to add to the cost of the virus, infections, and also uncertainties with the economys economic outcome. How do you see the social distancing guidelines . Our people following them . Is it having that Economic Impact . It is too early to tell whether those measures are having an impact. It will be a wild before we actually know. The unfortunate thing about epidemics in general and ones where there is a testing lag, is the numbers we have now, the visible impact we have now, reflect the status of the outbreak. Probably from one week or maybe a few weeks ago. The actual number of cases and the sorts of impact people might need to see to convince them to really take these measures seriously, thats only likely to come in a week or two ahead as we finally see the real world impact of that surge in Testing Capacity. I think it will be a little bit longer beyond that initial 15 day period that we will need to continue having these social distancing measures. That will have an enormous Economic Impact. We see restaurant groups, other employers beginning to furlough and lay off employees, because revenue is dropping to zero. That will be the focus of the next stimulus package to deliver direct economic assistance. That will be essential to help people financially, help mitigate the Economic Impact, and help people abide by those social distancing measures. Shery we also heard from Vice President pence that u. S. Doctors will be able to work across state lines. Give us more details about what sort of preparations the medical community is putting in place as we anticipate this surge of cases in the next few weeks. That regulatory change may end up being very important. We already see a trajectory in new york state and washington unmitigated and will end up overwhelming beds and physicians available. Having people coming in from less affected states will be very important. Already, some measures are being taken to account for the fact that it will be very difficult to have enough beds ready, given the current state of the hospital system. There are efforts being made to build temporary hospitals to bring hospital ship up to new york and somewhere on the west coast. You will see more of these measures and involvement from the federal government as it becomes clear the extent to which the governor continually said in his press conference, the number of beds are unlikely to be up to the challenge. Any measure to mitigate that impact will be received well. Haidi how much discrepancy do we see or disparity do we see, in terms of the preparedness and ability to handle potential worst case in areas when it comes to health care, as well as the economic outcomes, in terms of the different states . We know San Francisco has taken a fairly different approach to other states have been hit by the virus. Ofthere is a great deal variation with the executive, the willpower to take such severe measures, and beyond that, in Health Care Systems between different states. You can point to california, new york, and washington as epicenters, but also places where there is a comparatively strong state role in the healthcare system. States that have expanded medicaid that have lower uninsured rates. And in several cases, they have taken extra efforts beyond the federal level to make sure more people are insured and have Health Care Coverage as the virus spreads to states that dont have as much of a safety net and havent taken such stringent preparations or been as willing to act on social distancing. There may be an increased impact in those states. Haidi thank you so much for joining us. Lets get a look at oil markets. We saw that capitulating overnight with Risk Appetite pretty much across all assets. This is what we are seeing at the moment when it comes to oil. Falling to the 18 year low, down 24 overnight. We continue seeing investors in the markets wanting more out of government as to how they are handling the coronavirus outbreak and the detrimental Global Demand. Lets get the first word news. A Chinese Pharmaceutical Company says it won Regulatory Approval to start human trials of a coronavirus vaccine. They say the treatment has been developed alongside military scientists and will undergo testing on patients in wuhan. 215 thousand people have been infected by the virus. More than 8700 have died. Frominy of the latest china suggests the virus will reduce the economy to its slowest growth since 1976. Across the board slump in activity indicates an expansion of 3. 4 this year. That would be the lowest since the final year of the cultural revolution. Manufacturing and weaker sales also fell sharply in january and february. Bernie sanders is insisting there is no truth in reports hes abandoning his bid for the presidency. Axios said he was ready to suspend his campaign after joe bidens sweep of three major states on tuesday. The campaign tweeted the report is incorrect and sanders is Holding Facebook campaign ads. Biden now has more than half the delegates needed to win the democratic nationally nomination. May also deal a blow to hong kong. And have repercussions for press freedom in the city. Beijing says reporters involved would also be presented from working in hong kong, despite the mini constitution that includes press freedom and underpins the basic rule of the Hong Kong Government. News, 24 hours a day, on air and at quicktake by blumberg, powered by more than 127 journalists and analysts in more than 120 countries. This is bloomberg. Many still ahead, with bigname players saying the current u. S. Stocks slump is a golden buying opportunity, we speak to one Value Investor who is preaching caution. This is bloomberg. Shery rebounding from the fall we saw in the u. S. Trading session, we had seen a fall of about 25 . Right now, we see 11 , which is coming off of the 18 year low. U. S. Futures,to we are still down. Still coming off the back of another selloff we saw in the s p 500. Every sector in the red. Energy was the biggest decliner. Oil, we see a little bit of rebound. Take a look at asian futures. We see a little bit of a mixed picture when it comes to nikkei futures. Down 1. 5 percent. We have seen a divergence between the topix and the nikkei. As topix outperforming it the etf purchase target was announced. The boj has shifted to favor these topix link etfs. That seems it was one of the reasons we saw a little bit of a selloff on the nikkei and more buying on the topix. Down, weeing futures expect the rba announcement, policy announcement. It seems the central bank is also gearing up from quantitative easing. Some bigname investors diving into equity. Bill ackman is aggressively buying stocks, including hilton. Bill miller says now is an exceptional buying opportunity. Are they right . Lets bring in one investor preaching caution. A Portfolio Manager for vale. Company. Great to have you with us. Villareal company. Great to have you with us. Everyone is selling at the moment. How important is it to have a strong cash position . Obviously it is a great situation to have a big cash position. We are fortunate enough to have suffered last year from the cash drag during a positive year. Its nice to have cash on hand right now as the valleys become more attractive. Shery what are you buying right now . Now, are not buying right we still think there is more to come, when it comes to the downside. We are seeing really attractive opportunities. What we have seen, in addition to some of the companies you would expect to suffer, like hilton and the others, there is a number of companies that have absolutely no reason to have a pullback in here and yet are still suffering with the markets. There are interesting things that we are close on making purchases. Haidi can you tell me which names you are liking at the moment . Those who still have strong fundamentals . One that really jumps off of the page is one that we actually own and have for several years. This is basically the Global Leader in contamination control. Tend to besers health care, hospitals and such. Their focus is Infection Prevention. If you look at that, you expect a company like this to potentially be rising in this situation. To the contrary, it is down 20 year to date. If it continues to pullback, it will be a very attractive yourtunity to buy something are not too worried about. Lastsr the u. S. Lockdown theer than people expect, hospitals are in high utilization, the focus on Infection Prevention is going to do nothing but increase. That is one where we think there is real opportunity. Haidi you take a look at the selloff, the range of selloffs, bonds, stocks, commodity, including gold. Pretty much every currency, including the yen. If we see hoarding cash as the main strategy, what is really the missing fundamental or Inflection Point that investors would need to see to get back in . Right now, there is such a lack of clarity. There is over 15 million restaurant employees in the u. S. I dont know what percentage of them will come out of this with their jobs, but unfortunately, i dont think its close to 100. There will be layoffs, we are already hearing about that. Folks will see the numbers shortly. What is the carry through impact of that . Will those people have start paying rent, then landlords have problems. There really is the basic parameters of the situation being not clear. I think investors want a little more certainty. What is the size of this . We see the metrics in asia, some of those are encouraging, but u. S. Investors are really looking at this situation trying to figure out which countrys experience we should be looking to as a guide. There is a wide variety. Thats what i think has us a little cautious on jumping in. ,ike i said, with opportunities there are interesting ways to take advantage. Shery we see incredible dollar appreciation at the moment. How does that affect your portfolio . It is positive for our portfolio. We are a u. S. Only, or primarily u. S. Investor, it works out fine for us. We are on the smaller cap side, so we are not a big importer or exporter where they are the bulk of our revenues in the u. S. So it is not a big factor for us. Longterm, it is positive for us. Haidi thank you so much for dying us thank you so much for joining us. Using that info on how to navigate these tumultuous markets. You can get a round up of the stories you need to know to get your day going in todays edition of daybreak. Bloomberg subscribers can go on their terminal. Its also available on the mobile in the bloomberg anywhere app. Customize those settings or you get the news, industries, and assets that matter to you. This is bloomberg. Shery lets get a quick check of the latest business flash headlines. Facebook is putting up covid19 information page at the top of users feeds, saying it will include a very fine material from trusted sources in a bid to counteract the potential spread of fake news. The data hub will include tips and best practices from the World Health Organization, the cdc. Facebook has seen a huge surge in user activity. Haidi the phone that was once apples biggest is turning bearish and running dark days ahead. Wedbush slashed its price target the 400 to 335, saying coronavirus will have a major negative impact on apple for the foreseeable future. They also expect the 5g iphones not to be released later this year as planned. In hongop authorities kong confirm using hightech to monitor travelers returning from abroad and living in quarantine. They have been issued to those in selfisolation since early february, and more recently for people flying home from overseas. Cannot besay the bans removed and dont collect personal data, but those under mandatory quarantine remain a home. Haidi here are some asian futures were taking a look. We are seeing a bit of a mixed pictur