Transcripts For BLOOMBERG Bloomberg Markets 20240713

300 billion in direct Cash Payments will be available for every american citizen earning less than 99,000 per year. 3000 3400 for the typical family of four. Beenng like that has ever done. Up to 250 billion dollars in expanded Unemployment Benefits. The average worker will receive 100 of their salary. Or up to four full months. Normal unappointed benefits, independent contractors and the selfemployed will be eligible. Independent contractors and self employed people will be eligible for this. The 100 billion to support heroic work of our doctors, nurses and hospitals who have been incredible. 45 billion for Disaster Relief fund. We are setting up a fund of 45 billion for Disaster Relief. That is more than doubling the amount available to support my National Emergency and disaster declarations. Thebillion to build up Strategic National stockpile with critical supplies including masks, respirators, pharmaceuticals and everything you can imagine. Very depleted, our military was depleted and now we have a brandnew military. We have a military like this. It has already come for the most part. We have a lot of things that will soon be coming, planes, missiles, rockets, but the stockpile was very depleted. Like every thing else. This will also include significant funding for the development of vaccines on top of the 8 billion we approved several weeks ago. Over 500 billion in support for the hardest hit industries with a ban on corporate stock buybacks. That was something i insisted on. Thekly, i tell you republicans wanted that and the democrats wanted that. They wanted to use the money for the companies and the planes or whatever they may be helping to get over this rough patch but i dont think it will end up being such a rough patch. When we open, if we can open, the sooner the better. It will open up like a rocketship and i think it will go very well, very quickly. Limits on executive compensation also. Arehey need the money, they going to have to make things work. We are interested in the workers, the jobs. We are interested in the companies. Workerswhat fuels the and those jobs. Funding for the purchase of personal protective equipment. You know about that. These respirators through Strategic National stockpiles i encouraged the house to pass this vital legislation and send a bill to my desk for signature without delay. I will sign it immediately. It will be a great signing and a great day for the American Worker and american families. Frankly, for american companies, some of its which are having the best years they have ever had. A little less than a month ago, they went into a position they have not seen because of the hidden enemy, the virus. Earlier today, i spoke to the leaders of many of americas amazing nonprofit organizations. I thank them for their unwavering devotion to america. People, american families, our nation, they have been fantastic, they have been collecting supplies, supporting health care workers, caring for vulnerable workers. The nonprofits have been fantastic. They are great people. Finally, i want to provide a brief update of the critical supplies through fema, the federal government is delivered. That, 9. 4 million, 20 million surgical masks. We have others that we will read pretty quickly. The whole world, not just us. The whole world is trying to get competition with may countries. I believe you broke the 150 mark for the virus. We have 150 countries, over 150 countries where you have this virus. Nobody would ever believe a thing like that is possible. Nobody has ever seen Something Like this coming. Now we know. We know it can happen and happen again. Going tos, somebody is be very well prepared because of what we have learned and what we have done. Thanber this, more tests anybody by far. The news, the reporters, they always like to bring up south korea. We have a very high level test. It is a test that is very accurate. 3. 1 million face shields. Gloves and almost 6000 ventilators. They go to the areas of greatest need. We sent 4000 ventilators to new york. I spoke with the governor about that, he was happy. I spoke with the mayor also. Mayor de blasio. He was very happy. It is hard not to be happy with the job we are doing. Emergency,s National Everyday heroes continue to step forward and demonstrate the extraordinary character of our nation, including the people behind me. These people are amazing. They are amazing people. Maybe i should just think for myself. To me, they have become friends. Maybe they dont like me, i dont know. All i can tell you is they are talented people that worked very hard. In maryland, a sevenyearold boy used his own money to bite mealsfor senior to buy for senior citizens. A College Student recruited 90 of her friends to help deliver groceries and supplies to the most vulnerable. This is happening all over the country, thousands and thousands. I could stand up here all day until you about other things. In minnesota, hundreds of medical students have volunteered to provide childcare for hospital workers alpine to keep our doctors and nurses on the front lines fighting to save lives. These inspiring americans remind us that we all have a role to play in winning this Great National battle. It is really a worldwide battle. We are dealing with other nations all the time. A lot of countries are in big trouble. From our greatar secretary of the treasury. He has been working rather hard. A fantasticn is guy. He loves our country. He has been dealing with both sides, republican and democrats. He works over in that beautiful building. It is one of the most beautiful buildings in the world and he has gotten to know it very well. If we could have a little update about how we are doing and what it is looking like, thank you. Mnuchin i would like to thank Mitch Mcconnell for his leadership and Chuck Schumer for the enormous bipartisan support we had on this bill and the many senators both republicans and democrats that worked tirelessly over the last five days on the task force. The president said i got to live in the lbj room for the last five days. He could not be more pleased with the unprecedented response from the senate to protect American Workers and American Business in this situation. The president has outlined many of these but let me quickly go through them. Loans,usiness retention this will cover roughly 50 of the private payroll in Small Businesses where we will immediately make loans that will supply eight weeks of salaries as long as they keep the workers employed and overhead. Those loans will be forgiven at the end of the. As long as they keep workers employed. The treasury will be issuing new regulations, authorizing almost every single insured bank to make these. I expect by the end of next week we will have a very simple will be a very simple system to get money into Small Business hands. For companies that dont qualify, we have an Economic Program of tax incentives to retain workers. As the president said, we have enhanced on implement insurance for people who dont fit into these two programs that will be administered through the states. We also have Economic Impact payments. These will be within the next three weeks, direct payments into most peoples deposit accounts. For those that dont have it, we will be having the checks in the mail. Additionalll have authority. We have 500 billion that we can use to work with the Federal Reserve for emergency programs. 4will create an additional trillion if needed to support American Business and American Workers in an unprecedented way. Finally, the president mentioned 100 billion to hospitals and 150 billion to states that have specific coronavirus expenses as well as many additional things. I want to thank the president and the Vice President. You are constantly available to us. We spoke constantly throughout the day. You gave us guidance and quick decisions on many issues. Thank you for this great, bipartisan work. This will be an enormous help for the American Workers and american economy. The president was very determined that congress would move swiftly to protect hardworking americans and business in this unprecedented situation. Thank you. That was a lot of work. Well see how that all goes. Will you think this bill keep the economy afloat . If we have to go back, we have to go back. You also heard from secretary mnuchin. President trump saying the package is worth 2. 2 trillion dollars, roughly 10 of gdp in the u. S. We know that congress has been negotiating. They are talking about how the loans will be dispersed into small and big businesses. We have heard that big be getting 500 billion. Lets see how markets are looking at the moment. We have seen a two day rally for u. S. Stocks. We are seeing u. S. Futures at the moment. If we pull up the board, we can see how they are trading. Three tens of 1 . 3 . We saw this rounding. Airlines were getting a boost from the stimulus package. We are also seeing the s p 500 which gained 1. 2 . We saw the biggest today gain since november of 2008. We have seen energy rallying highly. A little bit of rest bite. Risk bite respite. We are looking at a mixed start. Kiwi stocks are rising for a Third Straight session. There are . About whether we reached the bottom. Given the potential extent of the economic downturn and the impacts on earning. You have more companies withdrawing guidance and the fallen angels are continuing to grow. Despite efforts by Central Banks , Companies Brace forth this unexpected potential event. The yen still trading close to february lows. Now, we are looking steady. Check out the offshore u. N. The pboc could announce a deposit rate cut in the days to come. That would be the first since late 2015. The target stimulus may be on the table. Couldnew york traders activate the Bond Buying Program this. Uing we are watching the situation when it comes to the issuance of corona bonds. Much more to talk about. Lets get to the situation in the u. S. President trump speaks. In as well. N tuning we are getting closer and closer to the stimulus bill. They are open to more stimulus. If required. That is right. Still working they are working on this bill. Senate leaders did announce a deal and the top senate praise that deal as outstanding. More than 12 hours later, the decisions are still continuing on the measure. They are actually hashing out various parts of the final text. There is at least one dispute. That is over the structure of the Unemployment Benefits. Senators worried that a cap on those benefits would pay workers more than they were actually paid before they were laid off. Conflicts being ironed out. Lawmakers have said there is a possibility for more stimulus. They specked it to be gone quite a bit. From the st. Ard louis fed president saying that s package is temporarily temporary relief. What else could we see to help the u. S. Economy . How bad is the outbreak right now . One of the things this current bill does is it divides between direct spending. There are some loans and Grant Programs meant to provide relief to businesses being hurt as well as individuals. Congress can always come back and do more stimulus. One possibility is we heard from some mayors or some governors, including the new york governor, andrew cuomo. They said this is a drop in the bucket for stimulus. There is always a possibility for more states and localities in the future. Isfor the epidemic here, it clearly getting worse across the United States. New york is somewhat of an epicenter with the new United States. Cases are surging there in northern new jersey. Across the u. S. , there are different hotspots and places where we can see the increasing number of cases. More than 30,800 cases. We continue to watch that press conference at the white house. President trump on the stemless package. In the meantime, the u. S. Stocks are posting back to back gains as investors await those unprecedented Government Spending packages. We have doug sanders. Package with u. S. Gdp. Add 3 2,000,000,000,002 the u. S. Gdp. Do we know it happens to the outbreak next . What we have here in this nameless bill is intent. You can get caught up in whether this package is enough or whether the calibration is correct but at the end of the day, the intent. If this package is not enough, they will do more. They told us that. Whether it is more fiscal feel they will never be out of bullets. They will always come up with something new. I think the policy is on their side. When will we see the stimulus measures filter through to the Financial Assets . I think it will depend. There are lower Interest Rates after you see some of the lending that the fed did. Individuals,s to as they hash that out, we still dont have the final bill. Clearly they understand the gravity of the situation. There is a need for it to be timely. I have an optimistic view that we will be able to get stimulus in time. Start to see some of the data points. Potentiallyms could rocket. Has the market already priced in in terms of data . A typical recession brings it down to 38 . We are not in a recession yet. Most recessions dont have the stimulus. A pretty bad Case Scenario is priced in. We bounced back roughly 15 . My guess is we are in the tugofwar phase. Wonink the bulls just two days in a row. My guess is the bears start to pull back on the rowboat of it. We started tugofwar when the s p went below 2750. Breaks willw this be really important. We have eyes on 2350. That is the december low. We did break that but we did not stay below that. I would worry that we are going to go back down to the 2100 level if not lower. For the first time in a couple of weeks, we have actually seen some stabilization for demand and dollars when it comes to eurodollar and sterling darley teller markets. Is this something that continue . On monday and tuesday, this is huge for bonds. I think liquidity has been delivered. A member the mistakes of the financial crisis where the commercial paper market got locked. Money markets started breaking the buck. There remember that lesson well. As a result, i think theyre giving openended stimulus. We are already starting to andsome medical regulations trying to combat this coronavirus outbreak. Does this provide you opportunities in Health Care Sector . Etiquette does. For a long time, we have viewed health care as the problem and escalating costs. Whether it is easier regulations, faster approvals, more federal funding, for those moneylosing programs like vaccine research, having excess hospital beds, we know those dont make money. That is where we need the government to step in. Thank you so much for joining us. That was doug. We will get more on the economic market fallout throughout the course of the day. With oure speaking guests. Stop wasting precious time. That is the unusually blunt message coming from the World Health Organization the nations trying to tackle the coronavirus. Especially those that are not yet seeing large numbers of cases. Our reporter remains in london. We are seeing that situation and some of these places. What is the concern about the time that is wasted . For lessonsurope learned. It is how this pandemic can spread and spread very quickly. Getting your Health System ready for. That was the point being made by the who today. Coworkersyour Health Health workers trained. Have your government focused. Are expecting the g20 to hold a Virtual Summit today. What are we expecting . Joe we are expecting World Leaders to discuss the social impact of the pandemic and Global Supply chains. Provision of health care equipment, food, that is some of the things. I think theyre looking to come up with a Global Response to this crisis. Thank you very much for that. We have been hearing from President Trump and secretary mnuchin on the stemless package. We heard from the president that he is doing all he can for new york city. Inhave seen more than 30,800 the state of new york already. Of therging the passage stimulus bill that is worth about 2 trillion. The bill will include payments to americans aching under 99,000. That seems to be a slightly higher threshold than weve heard before. We heard 75,000 dollars. Secretary mnuchin says the direct payments will be made within three weeks. He expects the senate to pass the bill tonight. He will see the bill getting passed in the house. We will get you the latest on that as the data becomes available. Continuing to hear from President Trump speaking in the white house, giving an update on how the u. S. Intends to combat the widening coronavirus pandemic. President trump has spoken highly of ramping up the testing capabilities in the u. S. , saying at times that the testing has been better than what south korea has managed to do. It is worth pointing out that on a per capita basis, south korea testing leads the world. We have been hearing the latest about the monumental stimulus package. Even as this passage is yet to pass through congress, we are already hearing the potential for another package pretty soon. Secretary mnuchin saying that this package is likely to tied businesses and individuals for three months. There could be a second package down the track. Coming up, we will be joined. Is bloomberg. 9 30 a. M. In sydney. The market opening is 30 minutes away. We are looking for the positive when it comes to this part of the future session. Since theck ends middle of february. That is premuch the case when it comes to trading here in sydney as well. Lets get it over to Sophie Kamaruddin in hong kong for what we are expecting. We can see modest moves here in asia. Futures to the downside of the nikkei when it comes to a contract in chicago. They are just easing stocks. Trading steady right there. We have more concerns around the stress debt, whether or not stresses have been addressed. More angels and those makes more fallen angels turning up in those rights. Showing up inare go trading. Those prices are diverging in london and new york. Thank you. Lets get the first word news with rick a group that with our correspondent. This may delay the 2 trillion to mills package in the senate. Several republican lawmakers are demanding changes well Bernie Sanders says he will hold proceedings if the bill is altered. For includes a provision the lower paid that means they could make more money on benefits than ashley working. Casesong has 24 new reported wednesday. Health Officials Say 19 of the 24 new infections are among people who traveled back to the city from overseas. It brings the overall total of confirmed cases to more than 400. Macau has found five new cases in the last today, tripling its total number of 30 from just two weeks ago. There is an Unprecedented Nationwide Lockdown in india. There are warnings that the move will hit the country hard. The economy is set to shrink. Gdp could contract by 5 . India has not seen a contraction in at least two decades. Of a are new warnings severe economic reaction to delaying the Tokyo Olympics. Research says it will hit business and Consumer Sentiment, leading to recession and rising on employment. Out 18y will wipe billion from the economy or about. 4 of gdp. The uncertainty means it is not clear if the gains will happen next year. 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. This is bloomberg. Happening right now, President Trump at that white house pressure. He talked about dealing with sections of the u. S. Regarding this virus outbreak. Lets listen in. I would say we spend more time on the small cup in his than the big companies. People ask about that. We spend more time thinking about the Small Businesses that the big. We want to get back and the people want to get back. We want to get our country going again and we will be able to do that. The Vice President will stay with you. We will take a few more questions specifically. I will see you tomorrow. Thank you very much. Mr. President , a question for you. Thank you all. The president and our entire team continue to be inspired. Are 10 days into the 15 days to slow the spread. Let me say again to every american, if youre in an area that has been impacted by the coronavirus, it is absolutely essential that you listen to state and local authorities for guidance. But for every american, what you can do is implement the practices. We are hearing from mike pence speaking there with the Coronavirus Task force, giving an update on the handling of the pandemic. The unprecedented postponement of the 2020 a lipid games could cost japan 6 billion. Games could cost japan 6 billion. We have the minister of the lipid olympic games. This decision, well incredible difficult was clearly the right thing to do. It was fairly widely anticipated. Appears to have been welcomed pretty broadly by athletes here in australia. The qualification process has become more and more difficult. Clearly this is something that is impacting globally. The opportunity to reset the horizon has been welcomed. Athletes have some thing to focus on. It is much better then complete the canceling the event. It gives all of us something to look forward to. What are the business implications and the economic implications . They are so farreaching. Outside of japan, are you looking at implications for individual teams and athletes with regards to advertising, sponsorship and as such . Richard i suppose a lot of these things will unroll as time goes on but i know that the other bigs are looking to roll out the contracts with their sponsorship partners. At this point in time, that will be important. If you look at this in a Bigger Picture sense, everybody is being impacted by the coronavirus. E need to bear that in mind this is a sporting event. Clearly there are economic and financial applications from the decision. I thick it was a good one. We need to work our way through all of these. As weh everything else, managed the issues that the virus is imposing on us across the Health System and economies, sport being just one part of that. Tell us a little bit about the government measures, specifically for the sporting industry. This point in time, we are working our way through that. It is quite clear that good personal hygiene habits and social distancing is one of the things that we have to use to combat this virus as it spreads around the world. Clearly there has been for professional sport. Here in australia, i think sport will play a very important part in Community Recovery and ve engagement once we get the virus under control. It will play a very important part of that. Especially as we work through all of the different problems. Does that include Financial Support as well . All ofre considering those things. We are ensuring the health of australians. We understand that all of the things we are doing are having an impact not just on sport but business across the country. Airlines are effectively closing down a number of industries and events. Has to bee do undertaking. Bearing in mind that broader context of what we are going through across the entire community. Has it been a little bit tone deaf, their quests the requests that you have gotten about whether the players will have to take a pay cut given the context of the Public Health crisis . We know the suffering of Small Business and families across the country. Undertakingy are some very significant conversations internally. There are conversations around what might happen with respect to payments. I am sure conversations are. Ccurring everybody is going to take a pay cut. Everybody will be financially impacted. Those conversations have to be sensible. We need everybody to surprise survive. This will engage here in australia from local government but up to the australian government. We are all going to have to consider what we might contribute to that process. The road knows australia is a sporting nation. A national obsession. Do you think this has come to the detriment of social distancing and social isolation guidelines . The Prime Minister said he was still going there. Even people down at the local park where people are still gathering and clustering to be able to do sports. What kind of messaging do you think needs to come to get more clarity about the priorities i thinkhould mark that realization is starting to work its way through the community now based on some of the decisions that have been. Ecommended decisions. Ome of the there needs to be a realization by yes drilling community that this is something complete different. Lastis going to potentially six months. People need to come to the realization that this is different. Habitsed to change the they are operating with. That is permeating throughout the australian community. For joining so much us, richard. Lets get a check of the markets. We are seeing some moves when it comes to sx. The u. S. Dollar falling for another session after this enduring dollar demand and strength. When it comes to the aussie dollar, still seeing declines to just under 60 u. S. Cents. We are also seeing that decline dollar comes to the kiwi falling as much as seven tens of 1 . We continue to. 7 . We continue to get coronavirus news during this outbreak. Airbnb held a phone meeting with bankers according to reuters. This was to discuss extending an existing one billiondollar debt facility. In 2016. Agreed according to reuters, their Holding Discussions on extending that facility. We will have plenty more coming up. This is bloomberg. Us really has so far resisted a full virus lockdown as the Prime Minister attempt to balance efforts to save the economy and contain the Public Health crisis. As other World Leaders are discovering, something they have to give in soon. Thousands of people have already lost their jobs. Lets bring up emily in sydney. Measuresictive are the we are seeing at the moment . There is a criticism that what we are seeing is death by a thousand cuts. Differently restrictive. We got things like all bars, restaurants and cafes are shut. Libraries are shut. The streets of sydney are empty. You see very few people around, the traffic is incredibly light. We are not headed for lockdown yet. We are seeing some questions in here. That is not a halfway house. It is confusing some people. They are not sure exactly what to do. What has not been confusing is the impact on businesses. There are about 6000 sales that will be lost globally. There will be an immediate 50 pay reduction for executives and board members. Give us more insight on how this crisis is hitting farms and especially workers. I think we have seen the impacts. There was a bubble for a few week. E have seen huge job losses there are pictures all around social media. That is the job center with people whove been laid off. Workers are being put on hold. They are standing them down. They have not technically lost their jobs. They may have to go unpaid leave. 40,000nearly at s from the big firms alone. It is harder to track the small firms. We are seeing a huge Economic Impact. Thank you so much. As the coronavirus continues to spread, schools remain closed around the globe to help deal with this. They are provided online classes to those affected. They are trying to get highspeed access to those in mainland china. Joining us now is the founder and group ceo, adam. Me about what i am imagining is a surge in demand, how the company has been coping with that. It is great to be here. We have seen really incredible interest all around the world. The focus is to be one of the leading Lifelong Learning platforms in the world. We had 1. 7 Million Students globally. We were at with education providers. We are seeing quite strong interest at the moment across the center. It is from institutions that have been impacted more positively and negatively. What about here in australia as we get a mixed bag of regulations on what the school should do . After the holidays, you may see schools delay going back for the next term. Have you seen interest in this part of the world . What are they doing to get a coherent consistence . We are seeing a number of challenges across the sector. Our focus has historically been on universities, colleges, vocational education. We are seeing interests from schools who trying to transition the curriculum online. What is really happening at the moment is that there are a number of universities, a number of schools looking at stopgap positions to move online as quickly as possible. In the short term, that is understandable. In the medium to longterm, much Higher Quality solutions are required. We usually work with these schools, these couches, these universities to take their existing content and turn them into something that is more engaging and collaborative so they can deliver the same outcomes online. It does take time to design quality. The challenge is that everyone has to move so quickly to keep things going. Some of your partnerships with alibaba and microsoft helped in this regard . Support 1. 7 Million Students, thousands of courses. In some cases, over 100,000 people joining courses at almost the same time. Microsoft and alibaba allow us to scale at infrastructure. The partnership we have done with alibaba is the direct result of feedback from our customers around challenges they are facing reaching students who could not make it to australia for the start of term. We estimated that at least 70,000 students, International Students are expected to come to australia. Now we are working with a number of universities to help reach those students online. How competitive is the sector . Going forward when we get to the other end, you said people and organizations have scrambled to move as the pandemic has overtaken the ability to organize and plan. Preparedness do you think institutions should have going into the future . They will be a lot more prepared Going Forward after this. Online education has moved up the agenda. When i first started this company over seven years ago, the challenge was trying to move from Online Education being nice to have two a necessity. Now, what everyone sees is there are a whole list of things that could require campuses to be closed and schools to be closed. All these institutions are looking at how we deliver something that engages and inspires the students online. That means that when they study online, they dont feel like theyre getting a lesser experience. This, thatrd after is what our focus is becoming. How do we work with these institutions to help them invest in quality education . Forhank you very much joining us today, open learning. The open learning group ceo. From thetal deaths coronavirus is 400 63. This is a spike from 422. Also, the total number of coronavirus cases in the u. K. Confirmed at 9529. This is arise from around 8000. This coming at a time when we have seen the government in the u. K. Moving to shut parliament. We have also heard that Prince Charles has tested positive for the coronavirus. We will hear from dr. Fauci of the National Health institute. This could become a seasonal occurrence that we could be seeing. We could see another coronavirus cycle. The cases are at 463. We will have plenty more. This is bloomberg. A quick check of the latest business flash headlines. Softbank has lashed out at moody. Moody cut softbank after they revealed a 41 billion as ideal designed to fund a massive Share Buyback. Uber and lyft are feeling the pressure with large parts of the u. S. In lockdown. Ride shares are falling on average by about 6 during the first three weeks of march. Some cities including los angeles willful as much as 11 . Netflix is reducing video quality in india. They are trying to meet surging demand during the coronavirus crisis. Streamer of biggest internet traffic in the world after youtube. Coming up, we will have more now analysis on the global fallout from the virus. We will be joined by the chief pacific asia economist. Theres no place like home. Especially when xfinity has you covered with fast, reliable internet. With advanced security to help keep you secure online. And with the most tv shows, movies and streaming apps all in one place. With simple Digital Tools you can get the help you need or even trouble shoot your services on your own. Download the xfinity my account app or just say help into your xfinity voice remote. We are working to make things a little easier on everyone. Download the xfinity my account app today. Haidi im in sydney where markets have come online. Shery japan and south korea and. Im shery ahn in new york. Welcome to daybreak asia. Our top stories, asia poised for a mixed start after u. S. Stocks post their backtoback gains since early february as investors await a virus stimulus package. It dispute over Unemployment Benefits threatens to delay the program. Republicans want payments lower. Bernie sanders says he will derail a vote if changes are not made. Haidi the virus continues to ravage the west. China is getting back on its feet. Transport reopens in the province where the infection was first was first reported. Limitations and restrictions continuing to be put in place in the u. S. U. S. Troops have been ordered to stop overseas travel for 60 days. The pentagon is halting all overseas travel for u. S. Troops for up to 60 days to mitigate the spread of the coronavirus. That is according to a top u. S. Official. Mark esper said the order applies to all service members, personnel, and their families. Lets get you straight to the sydney open. Sophie we are seeing the markets opening above 5000. Adding 2 10 of 1 . Setting gains for a third day. More companies down under are withdrawing guidance and delaying or canceling dividends such as northland star. Also canceling its payouts and sending down 6000 staff. We have qe stocks adding 3. 2 . Futures looking mixed elsewhere. Today we will be watching the be ok, holding a policy Board Meeting to discuss Financial Markets and crisis management. Not a Rate Decision. This as businesses and small banks grapple with the freeze and credit markets. Local media reporting the country may ease capital gain cap shoals for large holders. I want to highlight the pboc. Encourage banks to margins. Out squeezing the virus expected to cause a tripling of chinas loan ratio. Some of the pressures weighing on policymakers. Ape quick check on the dollar. Holding a two day loss. The best month since 2011. The yen is steadying there a february low. Eyeing the 111 handle even as his it is even as it is in a tight range. The aussie falling as much as 1 against the greenback. Did over the kiwi dollar. I want to mention the euro pound cross. They watch for that amid the Viral Development we have been seeing. Shery thank you very much. We are seeing the kiwi dollar extending declines as much as 1 against the u. S. Dollar. To discuss these moves with our bloomberg strategist in singapore. We saw the commodity currency rally, given the latest we have heard over the potential more fiscal stimulus coming in the u. S. More positive sentiment. This has to do with what is happening with the u. S. Dollar. Have we seen the peak of the u. S. Dollar . We have seen weakness during the session here. Mark to call an out right peak is a little early in the same way as it is probably too early to say risk assets in general have completely turned the corner. People are getting more optimistic. Seeing a couple days of rallies in u. S. Markets in particular. They are feeling better about the world. Thewe have seen through 20082009 time, that you can get sharp rallies in risk assets and equities and directional changes in currencies without having a major change on the overall picture. It can take a long time for things to feed through. They are trying to get the stimulus deal signed awfully in the u. S. To say that the u. S. Dollar has fully piqued is probably a little early. Still able to get through the march end as well. People are scrambling to get dollar funding. And that is playing through markets. There has been slight improvement in the slots that we are seeing, particularly for the end. It does not show the all clear signal. There are People Holding dollars to make their payments. That is not fully reflected, even though Central Banks are trying to smooth this. It is not working completely. Demand for dollars will not go away yet. We are likely to see volatile trading in currencies over the next couple of weeks. For a sustained dollar downtrend, i think we will have to wait longer for that. Haidi in terms of how much the market has priced in the data Going Forward, we are getting the numbers starting to roll in when it comes to the jobless claims in the u. S. , industrial profits in china on friday. Potentially, if it is an ugly number as we are expecting it to be, could shock the market again . Mark people are getting ready for weak data. We got a taste of that last month with the china pmi. We saw data from europe which has been horrible. Theres still room for people to be disappointed, even though data. Now that the will be weak possibly one of the biggest ones to watch and the in the short term will be the job numbers. There will be the weekly jobless claims on thursday and people are suspecting this could be a huge jump. Possibly into the millions for people claiming unemployment benefit in the United States. These are the kinds of numbers which could be more shocking, even then data we get in asia. People will be very tuned in now to what they see from the United States. So far, the american data has not yet reflected the worst of the virus fallout. That is a place where people will be taking their cue from what happens there. It will give us an indication as to whether there is any sign of peaking in the effect on the economy or not. It could be that it is early days for the United States economy, and certainly things like the jobless numbers will help us get a gauge on that. Haidi thank you so much for joining us. Our strategist Marco Kornfield there cranfield there. More details of the massive u. S. Stimulus bill, saying it will be worth 2. 2 trillion. A dispute in the senate over Unemployment Benefits is threatening to delay the rescue package, despite earlier expectations that a vote could come within hours. Joining us on the line is our washington reporter, greg sullivan. What is the latest . We know President Trump in the last hour, continuing to sound very optimistic that the package will be pushed through. At the same time, we are setting up expectations for more stimulus to come. Greg thats right. We heard from President Trump, as well as others in both congress and the executive branch, that they are optimistic that the deal will get a clock get across the finish line. We heard from Senate Leaders that they had reached a deal, in more than 12 hours later, we are waiting for any kind of vote on that deal. We know that they are hashing out lastminute details on the bill. We have heard they have broad agreement on most of the date things within the package but some of the small details, there is at least one disagreement, one thing that seems to be at a stalemate. Some gop senators are worried provisions in the Unemployment Benefits could end up paying laidoff workers more than they have earned earlier. Changes. Hoping to seek we also know president ial candidate and senator Bernie Sanders has threatened to hold up the bill if the gop senators dont back off their objections. There are some lastminute wranglings going on. As you said, we have heard from lawmakers that there could be the possibility for more stimulus down the road. Though we heard from some senators today that the senate does expect it to be quite a while after this gets passed. Shery President Trump saying the longer we stay closed, the harder it is to come back. We have heard him express hope that the economy might reopen by easter. What is the sense that you are getting in washington about whether or not this is feasible . Greg yes, we have been hearing from President Trump, and we know for a fact that there is concern within the white house that the economic hit will be very devastating, and that the and trump is concerned about the economic hits from the virus, and may be focused on trying to avoid that. It does seem to be at odds with what Public Health officials are saying about social distancing, especially isolating, staying at home. But also from local and state leaders who are trying to shut down their own localities, to prevent the spread of the virus, it is unclear what can reopen, given the power in the state that leaders have. And their concerns and congress about this as well. A lot of the u. S. Government is focused on the spread of the virus. Uncertainty over what will happen on the reopening but we know that trump is focused on trying to mitigate the Economic Impact. Shery washington reporter greg sullivan, thank you very much. This coming as dr. Anthony fauci of the nah says the u. S. Needs to prepare for another coronavirus cycle. Plenty more to come. This is bloomberg. Is bloomberg. Haidi you are watching ritika you are watching daybreak asia. There are new warnings of a severe economic reaction to delaying the Tokyo Olympics. Research says it will hit business and Consumer Sentiment leading to recession and rising unemployment. Say the delay will wipe 18 billion from the economy, or about 4 10 of 1 of gdp. Says it is has not clear if the games will happen next year. Hong kong is bracing for a new wave of virus infections with 24 new cases reported wednesday. Health Officials Say 19 of the 24 new infections are amongst people who have traveled back to the city from overseas. It brings the overall total of confirmed cases to more than 400. They have found five cases in the last day, tripling its total number 230 from just two weeks ago. China they are coming back a day after the government announced the lockdown in all but one all but the upper center city of wuhan which which must wait two weeks. Longdistance buses are back on the road taking Migrant Workers back to their jobs as long as i have filled out forms seeking permission to travel. Asian governments are struggling with a virus fallout. Australia is in a rare recession, although it remains short of a nationwide lockdown. Malaysia is keeping people indoors at least through april 14. Thailand faces its most severe contraction since the Asian Financial crisis, and now sees the economy shrinking by more than 5 versus an initial projection of almost 3 growth. Global news, 24 hours a day, on air and on quicktake by bloomberg, powered by more than 2700 journalists and analysts in over 120 countries. I am ritika gupta. This is bloomberg. Haidi thank you. The german finance minister olah schulz says the government is considering a timely targeted and temporary stimulus plan to revive Economic Growth once the coronavirus epidemic subsides. He spoke exclusively to bloomberg in berlin. This will be [indiscernible] we will have to make it feasible that the economy survives. And you should always understand that there is a very successful system of social real estate which is working as an automatic stabilizer. The social welfare system of germany is i think one of the most effective systems in the world to deal with a crisis without making feasible that the people dont lose their incomes, and gives them confidence in a difficult situation. The question of stimulus is coming when we are through the situation. Then i think it is absolutely necessary that we not just wait for the economy to run again. On the other side of the break, you mean after you have got the spread of the coronavirus in check, then germany is going to have to think about you are already working on another stimulus package . Olaf this is something we are thinking about for the possibilities and what would be very effective. Think there is some sense in what the economists tell us, saying it must be timely and targeted, and it must be temporary. Instruments like this that help the economy to start again. What kind of size are you thinking . Because germany has a love for the 50 billion number. We saw that. The eu mts auction was that. The prices pack should package was 50 billion. Are we talking about more than that now . Can we break out of that number . Olaf we will do the necessary things and we are able to do the necessary things. This will very much depend on the situation in which we will have after the situation eases. We are in now. I think the more important question is that we get through this situation to be able to do things like that. In the situation right now, it would be a bit ridiculous to do some activity so that tourism is booming at the same time when we stop tourism. It is not the right way right thing to do. You bring up an interesting point. Germany has given itself the ability to do this kind of stimulus. You brought your debt down to 60 of gdp. In a lot of countries have had difficulty without. How much firepower does i give you . How much room and space do you think you have now . Olaf i think we have all the firepower we need and we will use it. This is the message we give to anyone. It was always the idea behind our fiscal strategies when i discussed the question of why it might make sense to reduce the public debt. It was also it was always my argument saying it is because there might be a crisis and we need strength to do the necessary things. Now we are in a crisis that we have not expected because it is something that came to mankind all of a sudden, in a way. But now we have the strength and we will use it. That was the german finance minister. Lets get more analysis on the policy responses in europe and across the world with at least see garcia, chief asian economist. Great having you with us. You were just hearing from germany, but of course we have seen some big National Plans like the ones we have seen in that country. It may not be the same for some nations like in the south of europe. How do all of these fiscal plans work out if some countries do not have the same fiscal leeway to implement all of those measures . All, we need to realize what type of crisis are we in. And this is literally asymmetric crisis which is affecting the world, simply that it is coming in stages. We had china first, italy. Therefore, there are two things to realize. First off, this is a liquidity crisis. And thereafter, you will need funding and especially fiscal funding for your recovery. We are not at the liquidity stage. Comparespeaking, this very positively, the response, liquidity rise wise to 2008 because it is reacting faster. This includes the ecb. The ecb has reacted enormously. They will seey spreads going up, which is basically what liquidity is doing at the current juncture. You need some liquidity and fiscal measures, which everyone has announced. For germany. Less over spain. Liquidity, it is about how long it lasts. If we are able to control covid19 in the least amount of time, in italy is showing the way that this is possible, because it started later, i think liquidity wise, we should be fine. Then we will need the recovery. Frankly speaking, because european is because europe is very integrated, we are happy to hear germanys plans with , becausethat leeway that will imply exports for the rest of europe. I would not be as negative. Theink what has to be done, u. S. Obviously, the top line dollar, this is so important for the rest of the world. And then the ecb, for its own area, i think liquidity wise, we should be fine. We have to go through as smoothly as possible in containing and preventing it from moving. I hope the whole world can basically do that quickly. It is a key question. How quickly we do this. Because the liquidity problem is not too big a problem for anybody. Shery we are Asian Countries in this process that you described . Whether it is in the virus containment, we have seen that stabilization starting to happen, but where are we in terms of liquidity, the markets, and the economic fallout . Alicia the basic difference between what i said for europe, no matter how bad it looks, is that europe has to reserve currency. We operate in euros. It is not a big issue. It can be an issue for the specific financial institutions. Asia, we only have top line dollar for different countries. Australia, south korea, japan obviously, and singapore. That is all we have. Countries, which are heavily dependent on dollar liquidity, indonesia is one. This is very important because of capital inflows that have not been massive for years. Now they are leaning and they need to find dollars easily. The other day the other obvious one is thailand. It is income dollar, tourism. I would basically point out that the more you depend on the dollar, either income on the rest of the world, or capital inflows, the harder it is for Central Banks to help. Because the access to dollar liquidity, this is why i find it absolutely essential that the imf steps up quickly. And this is not about stigma, same with other european countries, this is about a shock which you basically didnt create. Nobody created this stock. So we need dollar liquidity beyond what they have done for the rest. And forever for many Asian Countries, we know there is a long feud there. The funds are limited. The imf is not the fed. Cannot issue dollars. I think it is the responsibility of imf shareholders, lets put to raise it. We need to stop it everywhere. Otherwise the risk of a financial crisis is obviously in the light. So we have to give dollar liquidity to everybody who needs it. It is a liquidity crisis. Asia, you are talking about regional some clients then . Alicia yes. It is such a great idea. It just that it didnt go as far as it should have into thousand eight. Where they were basically 2000 eight. Rom we realized dollar liquidity was an issue. We tried very hard to regionalized some initiatives. The numbers there were low. Many of which many of which were local currencies. They are nice but they are not big enough. I think really, we need some insurance. Some research. But we need more than that. We need regional insurance. Or just pull the imf. Way which not go that is likely, for historical asians, we do not have an monetary fund, so these regional problems with need to be propped that soon as possible so the regional insurance not only sells insurance. Should we likely and be talking more about the idea of corona bonds . They seem to be gathering increasing support within europe. Or is it really a big concern when it comes to packaging up debt with these highly leveraged Vulnerable Countries like portugal, like greece . Alicia i think corona bonds are a great idea because they basically target an unexpected shock that is unrelated to economic policy. In 2010. Ot it is basically it is an external shock. It can affect anybody. In the same way, i was proposing to prop up regional insurance and asia, and you could even think of an a regional institution. It is an Infrastructure Investment bank, to serve the purpose of targeting investment for the region. The same can be said for europeans because you have the monetary union. We have to forget the meat of what happened in 2010. This is totally different. And frankly, the recovery will be different if funds can be [indiscernible] immediate the liquidity constrained of sectors that could eventually be in the recovery. It is not necessarily all bad money. It is just that this is a shock that we need to go through. That is why i think the corona bonds, beyond europe, are a good idea. Haidi always a pleasure having you on with us. Alicia garcia herrero, chief asiapacific economist. We will get more coverage of the Global Response to the virus ahead with Morgan Stanley asian economist who will be with us later. Lets get you a check of the latest business flash headlines this hour. Boeing is surging the most on record. Investors welcome signs that congress will approve a massive virus stimulus bill. Shares soared on optimism that u. S. Airlines will win government money to help them through the virusinduced collapse demand for travel. It was lifted by the news that boeing aims to produce the production of 737 max in may and the deal will go ahead. Shery ridehailing giant uber and arel feeling the pressure with large partsy of the u. S. In lockdownft. On inshares falling an average of 50 during the first three weeks of march. Some cities including los angeles saw a fall as that big as big as 11 . Uber and lyft have fallen 35 since february. The coronavirus pandemic and sit delivers a shock to the global Auto Industry. The downgrade makes ford the largest fallen angel today. The s p says it may cut further. Global carmakers are being warned to brace from big intels this year. They say deliveries will plunge more than 12 , around 80 million. About 10 Million Units below the january estimate. Coming up next, you will hear from the secretarygeneral about what countries need to be doing to limit the fall. Followed from the coronavirus. This is bloomberg. Beyond the routine checkups. Beyond the notsoroutine cases. Comcast business is helping doctors provide care in whole new ways. All working with a new generation of technologies powered by our gigspeed network. Because beyond technology. There is human ingenuity. Every day, comcast business is helping businesses go beyond the expected. To do the extraordinary. Take your business beyond. I think we have all the firepower we need and we will use it. Use it broad support to whenever we need. Used to thee to get assessment which is that the simpler, the better. Our instrument will be made available if needed. Lets spend some time thinking about the possibility of introducing corona bonds within here. We certainly think this is a good idea. It is a good idea to demonstrate the solidity of the fiscal response on the european side. All assessments our assessment is that it could be useful to create such instruments to support the european economy. Germany will work for solo for solidarity and we understand it is nested there necessary to fight together and this will happen. Shery european leaders weighing the creation of corona bonds as markets await a unified response from the virus pandemic. Lets turn to sophie for a check of the markets. Sophie with markets waiting on firepower from europe, angel gurria earlier telling us she thinks corona bonds in europe are a great idea to manage the external shock and cover, the liquidity stress. Jumping into the terminal, given measures to ease the funding crunch, we have seen demand for dollars normalize in eurodollar and sterling dollar markets. The end dollar remains strained as Companies Brace for unexpected events. I want to switch to check on stock movers in sydney. More companies are withdrawing guidance such as Northern Star which has also delayed its dividend as it expects buyer disruptions will see dilla will see lows by 10 to 15 in the march quarter. You need bail resuming losses falling as much as 10. 3 . The retail and more giant also withdrew its forecast and canceled the payout. Gaining ground, the stock was upgraded as Credit Suisse and city followed to serve liquidity by standing down 90 of workers on the casino band in australia. The countrys Biggest Companies have furloughed 40,000 workers in the past week alone. Shery thank you very much for that. Lets get more on what we should be watching in the markets with adam haigh. We have seen a little bit of momentum for equities, especially in the u. S. 1987 fortoday since the dow. Where do we stand globally . Is momentum going to be supported . Right oncourse you are that movement. It was significant. What was important was how some of the momentum faded at the back end of the u. S. Session which has left those with a fairly vulnerable set up for asian equities. The point is here, and you can see that chart pretty well in library,t in your gtv around the momentum of the market it has oversold. You look at this relative stress index and you can see how much you have gone into the situation where there was bound to be some intrepid buyers coming back into the market, given how oversold the content dropped. The point of what is next from a health point of view is how is have a vast swathe of monetary response around the world. To have toontinue move further into lockdowns and the latest we are hearing from japan, for example, his tokyo residents will have to stay indoors this weekend. It is still playing out very much. Markets will move ahead of any peak in what we are seeing in terms of the escalation of virus cases. There is still a lot of uncertainty around when that will be. It is a very difficult thing and it remains very tricky to be able to forecast out. At the moment, you are right. We are having this little rebound in equities. It was sizable the day before yesterday. Then you have more minimum to him coming through. It continues to be one of high volatility, high levels of volatility across asset markets and especially as we see fx markets this morning. We had seen the u. S. Dollar comeback after that huge run of gains. Somewhat. This morning, we see the dollar get a bid again, the likes of the aussie and kiwi to the tune of 1 or so. Continues to be a Market Driven by volatility. A lot of uncertainty. Getting see a peak or closer to a peak in places like the begich the gig economy in the u. S. And parts of europe, very difficult to make a longerterm view to move structurally more into equities. Haidi there is also plenty of debate going on around whether the it is better to run for duration. There is one money manager who says for sure there is. Adam yeah. We have been speaking to folks at our burning stand, there is a ton of money there. He is saying that with the fed and Central Banks behind you, that there is still room for those duration thats to play out. And bets to play he is buying the bonds that essentially the fed and other Central Banks around the world are buying. He likes duration in germany, australia, and new zealand. In the last two Central Banks, remember, are only a matter of days in to their Bond Buying Programs. They are still early days of the curb is trying to shift in australia. It is not just the sovereign also the semi government, the State Government bonds that are being purchased as well. He feels there is money to be made there. He is also looking at shortage duration, treasury bills and the u. S. They are prone to less volatility because they are being targeted by the fed. Plenty of debate around whether the duration traders is played out. You can still make a bit of money. Shery adam haigh, thank you very much. Of oecd says shutdowns factories and companies around the world related to the coronavirus represent up to 30 of global gdp. Secretarygeneral angel gurria spoke. Ves come first i to him earlier about what must happen to restart the economy. Angel first of all, we need to stock stop the virus. Because the longer the virus goes on, the longer the virus are inthe more people contagion and the more people die, the more people are affected, the more unemployment it creates, the bigger the damage, the more that disappear and go over. The more Large Companies that are under pressure. And the more the Financial Markets become reticent and try to move away, etc. The will happen is that longer the virus stays, the more returnve it will be to to some kind of normalcy. That ishe virus itself, the main enemy because the consequences of the virus will be more or less onerous, depending on how long it lasts. And then of course, plotting a path to recovery has to be part of the exercise after we have dealt with a shorterterm. Shery President Trump seems to be looking at it the other way around. He wants to open up the economy by easter. Can there be a normal functioning economy if this pandemic continues . Angel no, obviously not. And of course, lives go first. Lives go first. All theto have firepower concentrating on the protection of people. On the protection of our societies. Therefore, the isolation measures, the social distancing, etc. , are the ones that we know if today in the absence of a vaccine. What we know is that the countries that have made progress in stopping the spread are at least a or at least a bit more progress in stopping the spread are the ones who achieve some level of success in social distancing and isolation. Therefore, those are the instruments that we know of today. And we should apply them. The oecdat is secretarygeneral angel gurria speaking there. We are getting breaking news about shutting of assets from the Major Chinese conglomerate wanda. Wanda sports said to be in talks to sell the ironman franchise to advance i should say, talks to sell the iron man franchise is set to advance. The triathlon business is said to be worth than more than 700 million. Interesting Development Given that the purchase of the iron man business was really one of the trophy purchases that we saw in the heyday of some of these chinese conglomerates snapping around. S the world now we are seeing the opposite with wanda sports said to be advancing the talks to sell iron man two advance publications, which is listed in the u. S. Lets get to ritika gupta for first word headlines. Spain suffered its deadliest day yet as the number of virus deaths surpassed of those reported so far in china. Fatalities rose 738 and topped 3400. Hit, has been severely although the death rate has dropped slightly in the past one of our hours. Germany approved Emergency Powers to tackle the crisis setting aside constitutional debt limits and earmarking 170 billion dollars of measures to economy. He north Korea Remains assist insistent that there are no cases of the virus in the country. The famously recluses reclusive nation shut its border two months ago and says not a Single Person has tested positive. Media has regularly reported the spread of infection around the world and kim jongun warned of the danger at a meeting at the end of last month. Soundstages in bali would stages illustrate the lock in india. There are warnings that the move will hit the country hard. Deutsche bank say the economy is set to shrink next quarter and fullyear expansion will suffer markedly. It says gdp in the june period could contract by 5 . India has not seen a contraction in at least two decades. Says thes Tim Cook Company has procured 10 million antivirus masks and will donate them to the medical community in the United States. Writing on twitter, he said people deserve our thanks in the work that they are doing. Cook added that apple has been able to use its Global Supply chain to find the equipment the u. S. Needs. Deyiglobal news, 24 hours a dayn air and on quicktake by bloomberg, powered by more than 2700 journalists and analysts in over 120 countries. I am ritika gupta this is bloomberg. Shery thank you. We have breaking news in the u. S. We are still see it we are seeing the first case of coronavirus in the pentagon. The pentagon reporting the first case of covid19, saying that a u. S. Marine is the first case of the disease at the pentagon, according to the department of defense. This coming as we see u. S. Troops being ordered to stop overseas travel for 60 days. Again, we have no seen the first reported case of coronavirus at the pentagon. Coming up next, chinas Property Developers are loaded up with debt and have binged on Bond Offerings and now with the coronavirus, a new report says what comes next will not be good. This is bloomberg. Erg. We are getting breaking news when it comes to the state of boeing. Said to be near a 60 billion u. S. Lifeline forwe are lookings including eligibility for bowing to be included in National Security funds, as well as obtaining aid from treasury. We know there was an earlier report suggesting the Senate Stimulus package, which is still being debated over the details, includes a provision that aims to provide billions of dollars in Emergency Assistance to boeing. That is according to three people with knowledge of internal deliberations being reported in the Washington Post earlier. That is why we saw boeing shares gaining over 20 in the intraday session. The most since at least 1980. Lets get you a check of the latest business flash headlines. Apple is weighing a delay on the release of its 5g iphone. The news reports the coronavirus is snapping demand and disrupting supply chains. Development of apples next signature product is being hand hampered by the lockdown of its headquarters in california. The source said apple will make a decision on the release of the iphone in may. Shery netflix is reducing video quality for latin american countries to meet surging demands during the coronavirus crisis. Netflix is the biggest driver of the internet traffic in the world after youtube which reduced its quality this week. Governments around the world are concerned about per serving Internet Access for the hundreds of millions of people stuck at home. Outi softbank has lashed at moody after having its debt lowered by two notches, accusing the Rating Agency of bias grading substantial misunderstanding. After the it cut it sun rizzi revealed a program divide designed for a buyback. Moody singled out the scale of the plan at the time is severe market risk. There will be defaults. That is the future for Developers Report according to our report. You can see it in the rising volumes of presales. 90 of all apartments in china are sold before construction is complete. Developers rely heavily on those sales to get financing. James daly is the advisor reporter. He joins us now. Good to have you. How specifically are we talking about the financing pressures you see in the property space . What we are seeing in the eight weeks since chinese new been low sales have in the last few weeks. Behind the around equivalent point of where they were in 2019. Andlopers rely on presales is a substantial part of their future cash obligation. The cash you have seen buildup, [indiscernible] be done at this point to developers to alleviate cash flow . James as with all companies, cash is king. We are getting a lot of inquiries from our developer clients, helping them to understand cash both, their bill their ability of cash inflow and outflows, and what they can do to preserve cash and what they can do to raise cash levels. Some of the things we are seeing, including slowing the rate of which they are purchasing future land blocks, we are working with some developers to help them sell land, instead of developing the land, they are putting it on top of developers because they cannot raise the needs. We are working a lot with private debt funds and other institutions in Hong Kong China to help develop. Shery we have seen a lot of volatility in the offshore u. S. Dollar bond market. What does it mean for these developers then . James it is another headache, is the short answer. We have seen most developer on theall from . 97 dollar down to pricing anywhere between . 75 and . 85. If you look at bond issuance, following the 12th of march, there has been little in offshore market. That means the developers that are a lot that are relying on those bounds to raise surplus funds have do not have but. Shery what should existing lenders do to minimize risk . Kong i think both in hong and in china, there is clear guidance about the need to be forgiving and patient with borrowers who are facing stress of the moment. The volume of consultants at this point is not what we would expect. We expect that to increase in the second half of the year. We are spending a lot of time with them, helping them understand, really engage with the borrowers, understand what are the specific issues and how much of the challenges haidi in terms of how much this changes Buyer Behavior overall, obviously you look at those crowded Sales Centers as well as what is going on with construction sites. How longlasting will the impact of some of these restrictions in the psychology of Consumer Behavior last on the industry . James i think a clear part of it is the need or wish to stay away from crowded public spaces. I think some of it will naturally recover once confidence returns. The question of the timing of that is not known. In china, real estate pricing has risen for a number of years now, within the decade. And therefore, the sentiment on the consumer, or the retail it has been a source of well creation. Haidi what are you expecting when it comes to more government easing measures for the property sector . James today, we have seen targeted and specific measures. Governments and develop give Developers Extra timing to delay the payments that they should have. There have been statistic measures that the real estate has for cashestate tightening. Haidi thank you first thank you so much for joining us. Japan getting the Producer Price index numbers for the Services Sector coming across the bloomberg. Not much of a surprise. A little bit of an easing, 2. 1 percent against expectations of 2. 2 . A drop from 2. 3 in january. February, ppi services, the year on your number coming in at 2. 1 . Nikkei futures looking more to the downside, despite the two days of gains for global and u. S. Equities. Dont forget our interactive tv function. You can watch us live, catch up on past interviews and diving into the securities for the bloomberg functions we talk about. Send us messages during the show. This is for bloomberg subscribers only. Check it out at tv. This is bloomberg. Is daybreak asia. Im shery ahn in new york. Haidi im haidi stroudwatts in sydney. Markets opening at the top of the hour. What are we watching . Sophie keeping an eye on honda and mitsubishi. They put their ratings under negative watch, given increasing profitability woes from the virus impact which has carmakers across the world warning of a credit shock, raising questions if the sector will follow airlines in getting Government Support. In france, lemaire singling out the Auto Industry is needing government aid along with aaron nine. We are seeing a recovery in credit markets with a price to ensure against bond defaults falling further on wednesday after the biggest retreat since 2008. Risk does remain as many managers work through redemption. Many asian issuers are able to access cheaper funding and local currency bond markets. Panichas been no need for driven dollar bond issuance. Lets check in on futures. We have nikkei futures in osaka sliding nearly 3 . We are looking at a mixed bag across asia. This after global stocks managed to put in backtoback gains for the first time in six weeks. Caution still remaining given we are assessing the impact of the virus on earnings as well as the global economy. Haidi lets get a check shery lets get a check of the latest business flash headlines. Boeing surging. Congress will approve a massive virus stimulus bill. Shares sort on optimism that u. S. Airlines will win government money to help them through the virus and the collapse in demand for travel. Shares were lifted by news that boeing aims to resume production of the grounded 737 max in may, and that the deal will happen. Ridehailing giant uber and lyft are feeling the pressure with large parts of the u. S. In lockdown. The pricing tracker shows ridesharing falling on average by around 6 during the first three weeks of march. Some cities including los angeles will fall as big as 11 . Shares in it were and lyft have fallen around 35 since february. Shery forward is being cut to junk by as of the global ratings as the ratings deliver a shock to the global audio industry Auto Industry. Further. Ays it may cut global carmakers are being warned to brace for a big fall in sales this year. It says it will plunge more than 12 , around 80 million. 10 Million Units below its january estimate. Coming up on the next hour of daybreak asia. We will be joined by head of asiapacific microstrategy. The open is next. This is bloomberg. When you move homes, you move more than just yourself. Thats why xfinity has made taking your internet and tv with you a breeze. Really . Yup. You can transfer your Service Online in about a minute. You can do that . Yeah. And with twohour Service Appointment windows, its all on your schedule. Awesome. So while moving may still come with its share of headaches. No kidding. Were doing all we can to make moving simple, easy, awesome. Go to xfinity. Com moving to get started. Haidi im haidi stroudwatts in sydney. Asias major markets have opened for trade. Shery good evening from bloomberg World Headquarters in new york. Im shery ahn. Welcome to daybreak asia. President trump outlined more details on the massive stimulus bill. A dispute over jobless payments threatens to derail a senate vote. The virus continues to ravage the west. China getting back on its feet. Transport reopened in the province where the infection was reported. Haidi the infection is hurting economies around the world. Singapore is preparing a second virus budget as we get the latest gdp data. Straight to the Market Action with Sophie Kamaruddin taking a look at the open in japan and korea. Sophie we are seeing downside for japanese stocks. The nikkei 225 off to percent. The yen is gaining ground below the 111 handle against the dollar. Which is set for the best month since 2011. That is for the greenback. Lets check in on the open insole. The kospi under pressure. Lower by. 5 . The korean won edging higher by 2 10 of 1 . Trading at the strongest level since february 19. This as we get more support from korean policymakers as was flagged earlier this week. South korea coverage ratio rule for banks to 70 by the end of the current 80 where it stands. Waiting on the be ok Monetary Policy. Not for a Rate Decision but to discuss managing the crisis conditions as well as Financial Markets. We do have what is going on in australia. We have the asx 200 extending gains. Marginal advance for the asx 200. The aussie and kiwi dollars are under pressure, both falling as much as 1 against the dollar. Key vstoxx gaining ground, nearly 3 higher. Shery thank you very much. News. Get to breaking we are getting gdp numbers. Year on year, contracting 2. 2 . We were expecting contractions for the First Quarter. But this is a much bigger contraction than expected. Year on year, we are talking about a contraction of 2. 2 . Quarter on quarter, interaction of more than 10 . 10. 6 . That would be the second worst on record. Also, they have adjusted their forecast for the economy for 2020. They expect the economy contracting 1 to 4 in 2020. They are giving a wider gdp estimate range. There is a lot of uncertainty over the coronavirus outbreak. Singapore saying the social distancing will weigh on domestic consumption. We have seen already some headwinds of exports easing in the first two months of the First Quarter. We had seen year on year gdp and quarter quarter gdp expanding in the previous quarter. 2020,e First Quarter of a contraction of more than 10 quarter on quarter. More than 2 year on year. Thei we are just getting latest numbers out of china on the coronavirus. We continue to see the extension where theme of imported cases are continuing to climb in china. Reporting 25, china six coronavirus deaths, reporting 67 additional coronavirus cases. Saying all 67 of those new cases on march 25 are imported cases. This happening even as we are looking at the listing of the lockdown that has really gripped the original epicenter of the coronavirus in Hubei Province and in china. Still, with the additional quarantine and travel restrictions from international flights, still seeing essentially since the second half of march, all of the imported cases going into mainland china. Lets get back to the singapore gdp data that shery broke for us. We are joined by correspondent. At what point did the data points become surprising . We are all braced for a world of pain. I think you are right. Nothing really surprises us anymore. It is worth remand remembering that the numbers are going to get worse as the year goes past. The story from singapore is that it was meant to be a better year. Exports were picking up a little bit. Along came the coronavirus. Make up for what we saw which is the big lockdown that they are pushing through on the buyers and on the entertainment front. That has put a hole in tourism for some time. We know that the government is planning to spend more money. We could get details in those measures today. The central bank has their own meeting in terms of how they want to respond to handle the crisis. Singapore is one of those small open economies that we look to to get a gauge as to what is happening in terms of the world economy. Whacked. Ting. We know that there is still pain to come. Shery singapore expected to post the biggest budget deficit since at least 1997. How much physical room do all of these countries in asia have to really fight this economic fallout from the outbreak . Enda whether they have room or be, i think it seems to among economists that they have to borrow. Interest rates are low. Now is the time to borrow and put a cushion onto their economy, so that when we get past the virus, then the thinking is that these businesses will be in better order to rebound and the broader economy can rebound. There has been a big ideological shift in the whole debate around the world. Look at the u. S. And the you cannot and australia. In asia specifically, if anywhere has put has room to borrow, it is asia. By all accounts, they will use some of it. Shery the fiscal hawks are now extinct, arent they . Thank you very much for that. Our chief Asia Economic correspondent with the latest on the economies across asia. We are seeing lower opens for japanese and korean equities. The yen strengthening at the moment. Lets bring in Global Markets head of asiapacific microstrategy. Great to have you with us. We have seen a mixed picture across asia. This coming after the best twoday gain since 2008 for the s p 500 in the u. S. Is it time to get back into the markets . Is risktaking still a thing . Why are we seeing such gains in the u. S. And that is not really being followed by the rest of asia . Good morning. Dependsit very much where we think we are on the whole process. We are trying to think about this now a little bit more logically in terms of thinking of different phases that we are in within the economic picture, but also the financial picture. We have gone through liquidity story over the last bit of time. That is not set by a significant stimulus in the market, at least not by Central Banks. Where we see where we are now is we are in a different place whereby the liquidity is slowly being dissolved. Now, we are in a phase of uncertainty and volatility, whereby you will get bigger risk on, but you will get big risk off days. This never goes in a straight line. We cant really expect there to be a strong rebound, unless we actually see a real impact in terms of economics. We will not see that for quite some time. I imagine we wont see a real impact in terms of some semblance of normality to markets. That means volatility needs to be lower, stress levels need to be lower. We are not seeing that now. We have proprietary measures that are in the market and suggest that stress is very high. From our perspective, we look to be in another stage, less than a liquidity stage. We have moved into a cautious stage. We are going to get a big up days and big down days. To the extent that we have stress in the system, we still remain cautious in terms of how we would look at risk at this point. Shery what do you think will happen to the Chinese Market . We continue to see sectors coming back online across china. We see stabilization with the outbreak. And yet investors dont really affect big measures dont expect big measures to come on the monetary side of things in china. Dwyfor china is an interesting one right now. Obviously we have been talking about deleveraging for so long. That is reverse sharply into the effect of what is a deleveraging environment. That obviously makes sense because they need stabilize growth. However, when we look at monetary conditions at the back end of last year, they have become more supportive. The data that came out the other day in terms of fiscal expenditures here, actually nots reseeding which is surprising given that we have on a lockdown time in china and continue to have this lockdown in china. I think what we are looking at now for china is a move up in terms of productive capacity, and also a more normalized sense in terms of some of the highfrequency data we are looking at. What we are looking for now is we are looking for the next stage in china. And that is probably necessary in order to avoid a recession in china. Monetary policy alone cannot do a sufficient amount of stimulus here to push china into that for year. Rst half of the we will be looking for a stronger and more aggressive fiscal response to china. If we get that in tandem with Monetary Policy and we start to see production come back online in china, these are three things working in tandem that actually suggest to us that china will be probably the go to area in terms the first for semblance of solid risk refers to the upside in the second half of the year. Some of that has been discounted. We look at north asia as being the key ford the roadmap toward a markets outperforming once again. Though,nshore assets im wondering, doesnt matter . Historically, with the retail proportion or component of trading in china with this heavy state support, macro developments have not really reflected the markets. Will they retain the strength Going Forward . We have to wait and see on that. We have to really see what the data will tell us realistically in terms of the macro picture in china. We have had the initial few months worth of data in china with exceptionally weak. That is in terms of pmi. What is also an issue in china, from the retail perspective, we do have only a very small universe of active that you are able to invest in domestically in china. That predominantly of course has been the property sector in recent years. There is a very narrow range of assets. I would expect from china that it does not really pick up until we get toward the second half of the year. I would also expect that markets that is not just china reacting, that will probably be a global story for quite some time, that you see a disconnect reaction. And market we can look at data as much as we want. As we have seen in the last couple of days, it is the support from government and policymakers that will drive markets and will be the main price driver in the nearterm. Haidi thank you so much for joining us. Head of asiapacific microstrategy there. Still ahead, as transport resumes in the original epicenter of the coronavirus outbreak, more countries in asia are plunging deeper into lockdown. Find out who and why the who says the world is waiting for precious time. Shery voting on the u. S. Stimulus package raises hurdles in the senate over Unemployment Benefits. We will bring you more details about when the bill could pass. This is bloomberg. Bloomberg. Haidi you are watching ritika you are watching daybreak asia. Spain suffered its deadliest day at is number the number of virus deaths surpass to those reported in china. Fatalities rose 738 and topped 3400. Italy has been severely hit. Although the death rate has dropped slightly in the past 24 hours. Germany approved Emergency Powers to tackle the crisis setting aside constitutional data limit and earmarking 170 billion of measures to protect the economy. Apple boss tim cook says the company has procured 10 Million Masks and will donate them to the medical community in the United States. Writing on twitter, he said people deserve thanks for the work they are doing, those in the medical field and those working to stock supermarket shelves. Cook added apple has been able to use its Global Supply chain to find the equipment the u. S. Needs. Hong kong is bracing for a new wave of virus infections, with 24 new cases reported wednesday. Health Officials Say 19 of the 24 new infections are among people who traveled back to the city from overseas and it brings the overall total of confirmed cases to more than 400. They have found a five new cases, tripling its total number 213 from just two weeks ago. Global news, 24 hours a day, on air and on quicktake by bloomberg, powered by more than 2700 journalists and analysts in over 120 countries. I am ritika gupta. This is bloomberg. Haidi thank you. China has reported the latest numbers. This as the World Health Organization gave a rare public scolding, telling countries across the globe to stop wasting precious time. Lets cross over to our china correspondent, selina wang in beijing for more. Talk us through the latest numbers in terms of this continued escalation as cases in beijing in china are struggling with, and what the who is saying . Are focused on limiting the domestic transaction transmission as well as the international imported cases, now increasing for another day from 47 imported today. Esterday to 67 as china really ramps up stopping these outbreaks from coming into the country, they still do remain on high alert domestically as people are returning to work. Transportation is resuming in hubei. And gearing up for the lifting of the lockdown at the original epicenter of the outbreak on april 8. However, they are reporting zero wuhan, it has local citizens were concerned about authorities may not be reporting the full scope of the situation because local media reports have said that daily, dozens of new cases are being found in wuhan that are a symptom attic. China does not include those cases in official statistics that raises concern that there could be silent carrier spreading the disease. The World Health Organization meanwhile did issue this very rare and blunt criticism of countries saying they need to stop wasting their time. And that the time that they should have been acting with more than 1 was more than one to two months ago. Saying countries around the world are not prepared for a pandemic that they are going to be getting a Second Chance since there are more than 150 countries around the world with fewer than 100 cases, and they still have time to prepare. Shery what are we seeing in those other countries like countries in Southeast Asia, not to mention japan . Selina for many months, many countries in Southeast Asia were playing down the threat. Since they have seen a recent spike in cases, these countries are tightening restrictions and limiting travelers from abroad. If you look at the data from march 24, thailand, indonesia, philippines, they reported 100 more cases each. Singapore reporting cases from march 25, saying seeing the biggest jump in cases yet. In japan, which has been criticized for their low rate of testing, has also been seeing an increase in cases over the past three days. Now the tokyo governor is asking revit asking residents to stayathome, asking them to work from home, not go out at night during the week, and saying that if the situation does not improve, that they could go into a full lockdown. Saying the city is at a critical moment in terms of the potential explosion in cases. Japan was one of the first countries outside of china to be hit by covid19. And so far, it is one of the least affected among developing countries. And life has mostly, up until thus far, has been continuing as normal despite School Closures and the looming question thus far has been, dig a band dodged bullet, or is it about to be did japan dodge a bullet or is it about to be hit . Shery selina wang, thank you. In the u. S. , President Trump announced more details about the massive stainless bill state saying it will be worth 2. 2 trillion. A dispute in the senate over expanded Unemployment Benefits is threatening to delay the rescue package despite earlier expectations that a vote could come within hours. Joining us is Senior Editor derek wallbank. What exactly is the hold up . It is well, you know, funny. Yesterday, we were on a two yard line, to use an american football term. Today, apparently we are on the two inch line according to what some folks told the Washington Post reporter. And all of that is to say that we are very close but we are not quite there yet. There is concern among some republican senators that some of the Unemployment Benefits are generous to the point that it might create a benefit to people not doing work over doing work. They are pushing back on that. Then you saw a little bit ago, senator Bernie Sanders, the andidential candidate progressive from vermont saying look, if you all get changes in this, if you were going to hold this up over that, ive got problems too on the left. So the if this is going to be a problem, let me add to the difficulty. And if not, lets go through with this. All of this is to say, we are very, very close. But you do have some difficulties around the edges. As people see a mammoth bill with more than 2 trillion in spending, not everybody in congress is going to like every single part of this. And now there is a really difficult thing where you have to get all of these lawmakers to yes. Haidi given that time is really of the essence here, what are the next steps . Derek i think we are still seeing some thoughts that we might end up getting a vote sometime tonight, usa time. That would be maybe somewhere in the order of lunchtime here in asia. That is possible. It is also possible some of this stuff could slip to tomorrow. In that, we are still talking, you and i hear, about the this week in the soon variety. None of the real big timelines in terms of actual enactment has really shifted here. We are still talking along the margins. Right now, lets say this is sort of the complications on the normal path of getting a bill into law of the size. We have not gotten to the point that i would say this is a complication where you need to worry about the Overall Health of the package and whether or not the whole thing will fall apart. We are not there. This is the mechanics of getting this over the line and complications that we have seen many times before with other massive pieces of legislation as you are trying to maneuver it across to the finish line. Editor in senior singapore, thank you very much for that. Get a check of the movers in japan. These are olympic related. Advertising giant is a key olympic sponsor, and another which will redevelop the site of the olympic village. They are all at the moment losing ground. Of course, the Tokyo Olympics have been postponed. We are hearing from local media in japan, saying the ioc is seeking july and august in order games for the Tokyo Olympics. We have more breaking news out of the u. S. Senate. They are now releasing the text for their 2 trillion stimulus bill. Of course we have heard more insight on this third phase of the coronavirus aid package. President trump says there could be more to come. He has talked about this package being worth about 10 of u. S. Gdp. The u. S. Senate releasing the text for that to trillion dollar stimulus bill. Although secretary mnuchin has said we could see that bill passed in senate tonight and that it could get a vote in the house tomorrow. We will be watching closely to see what some of the provisions included. Plenty more to come. This is bloomberg. Shery a quick check of the movers we are seeing in japan. Stocks plunging at the moment after moodys cut their ratings by 2 notches. We see the back and forth, softbank asking movies to withdraw the ratings after the downgrade. They downgraded the ratings mistakenwhat they call views. Falling 13 , marubeni forecasting a record loss. The most in at least nine years, one of the biggest decliners. A casino group furloughing 90 of employees after the government ordered shutting of casinos in response to coronavirus. Coming up next, a shortage in medication. Shery this is daybreak asia. These of the first word headlines. China is restarting transport services in the province where coronavirus was first reported. Rail and road links are coming back a day after the government announced lifting of the lockdown in all but the city of wuhan, which must wait two more weeks. Longdistance buses are back on the road, taking Migrant Workers to their jobs as long as they filled out forms seeking permission to travel. Soundstages at bali would studios illustrate the nationwide lockdown in india. There are warnings the virus would hit the country hard. Deutsche bank says the economy will shrink next quarter. Could contract by 5 . India hasnt seen a contraction in at least two decades. The east european state of kosovo has become the first governmentlose a because of coronavirus. Months after taking office, a Junior Coalition partner to curbed steps taken the infection. They ordered a curfew and band public banned gatherings. A gunman who attached attacked mosques in christchurch unexpected pleaded guilty to all charges. Are 40 charges of attempted murder and one of engaging in a terrorist act. He had previously denied all charges. 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. This is bloomberg. Haidi drug manufacturers in china may have cut production by as much as 40 when the coronavirus hit, raising concerns muchneeded medicine could be in short supply. Bloombergs Health Reporter says it is a perfect storm when it comes to the pharmaceutical supply chain because there is so much on the demand side going on as well as the overlay of potential protectionism. What is the situation . Learned in talking to an Organization Called the u. S. Pharmacopia is that they saw signs that production of drugs in china was down 40 , and that was in january and february. Americans get a lot of their drugs from china. Many drugs that they take originate in china, so the thought is if production was down that much, there will be a little bit of a lag in this, but there will be shortages that will crop up. This is right as people in the states are dealing with the coronavirus ramping up and hospitals will be expecting a lot more patients needing a lot more drugs as the shortages could be hitting. Haidi could this become a political situation . Certainly, there are people who might try to use it to a political advantage. Certainly, there are some in the white house who would prefer for that sell to americans not to be as reliant on china and they have been pushing President Trump to possibly push the pharmaceutical industry to bring manufacturing back to the United States rather whichelying on china, they have increasingly done since labor there is cheaper so they can make the drugs cheaper. Haidi we have seen u. S. Lifting import restrictions from indian pharmaceutical companies. What is the latest . The fda lifted some restrictions on an indian firm, and they did that so the firm could make chloroquine and hydroxychloroquine, drugs approved for malaria but President Trump has touted them as possible treatments for coronavirus. There has been a huge increase in demand in the United States for that drug, and it is coming up in short supply, as well. The fda is looking for more companies to make it. They decided they would lift restrictions on the indian firm so it would be able to send products to the u. S. They had had quality issues. The fda is doing that specifically for this these drugs. Haidi yesterday, india announced a ban on the export of this particular drug after President Trump talked it up so much in his press conferences. Tothis what we can expect see from individual countries and does it highlight the need chainsrmaceutical supply selfsufficiency in the time of coronavirus . Indiare is the fear that is starting this but they wont be the only ones who will try to protect their own citizens and keep drugs that are made their, made there, there for their own people, particularly something that could treat coronavirus. We dont know that yet but it is being studied for that. Thought is sort of a that pharmaceutical manufacturers maybe dont need to be making drugs particularly in their own, in the countries where they are selling them, but they need to diversify and maybe not rely so heavily on places like china and india also for manufacturing. You thank shery thank you for joining us. Next, the earnings outlook for chinas oil giant as the coronavirus hits Global Demand for energy. This is bloomberg. Shery a mixed picture across asia. Lets get the market check with sophie. Sophie on the terminal, asian stocks modestly higher, u. S. Futures little changed, the dollar holding at a twoday loss ahead of key jobless gains due from the u. S. In seoul, two Budget Airlines among the gainers. One of them is higher by 0. 8 and kiwi dollar is falling as much as 1 today. I want to mention we are seeing after futures rallying the rba cash rate fell below the target and markets expect cash rates will fall further. The rba and boj will hold swap options plus traders will be watching it at sale. The yens trading firm or while the nikkei to do five losing more than 3 , a trading giant among the laggards after posting a record net loss on its energy and green operations. Lets check in on oil this morning. We are seeing that rally after a crude as advance for traders assess demand. Goldman forecasting a surplus of 14 Million Barrels per day in the second quarter, an unprecedented shock for the global refining system. Cutbiggest refiner processing and most plants by 25 30 on the nationwide lockdown. About 250 million per day but its imports are soaring. The governor the government, seeking to boost domestic production, at odds with comments from state oil giant capexsaying it will cut in 2020. ,hery and oil and gas producer cost cuts helped offset the impact of weaker oil prices. A senior oil analyst, Neil Beveridge, is joining us. Given that we have seen supportive measurements in terms theutting a flaw under price of oil they used to calculate retail pricing, are we expecting more Government Support for the oil majors in china and how does that impact the outlook . Government has stepped in with oil prices at 20 per barrel. Beyond cutting taxes further, there is little the government can do. The break even for onshore producers is around 50, 60 a barrel, less for offshore, 30 per barrel. The industry is facing a very severe test, given that oil prices have put a lot of strain on cash flows and raises a question around what the oil majors will do in terms of spending this year capx spending. Shery do the cuts help them to get through this low demand period . What are the expectations we may see a quicker recovery and chinese demand . Capexin terms of the cuts, we think we need 34 cuts to breakevens to get breakevens down to a sustainable level. There is a question, the companies are under pressure on governments to keep spending and employment going. The big question is, how big and how deep the cuts will be. In terms of the recovery, we are starting to see that. We saw a refinery runs collapse down 30 , 40 . Over the past few weeks we have seen an improvement as china gets back to work with refining runs down 10 , 20 . We are starting to see demand , as the recovery gets underway. We are tracking significantly below where we were in 2019. Who is the most pricesensitive among chinas oil majors . If you were to go in with a stock . Neil cnooc is the most pricesensitive. 80 production is oil related so it is, if you want to see exposure to crude prices, [indiscernible] has noalso cnooc debt. It is one of the global e p is that [indiscernible] who will be able to withstand this Prolonged Oil war we have come into. In terms of which company, sinopec is 70 downstream and it benefits from the oil prices in terms of lowering the cost and chemical production and lower crude prices that will help refining once demand comes back. We see significant, 20 decline in demand but as you see demand come back, that will help drive earnings at sinopec. Haidi we have seen centralbank action, we are seeing the u. S. Opec meeting. What are your expectations in terms of crude prices . Neil we are still pretty cautious on the outlook. The levels of demand are unprecedented. We think globally we will see Something Like 10 percent15 demand of attrition in the first half of the year, that is 1015,000,000 Barrels Per Day decline. We have opec putting an additional 2. 5 Million Barrels on the market from april 1, so the supply and demand set up for the first half of the year looks very difficult. At 30 or below, we start to really impact nonopec supply and it becomes difficult for lots of producers that are higher cost and we will see production shutdowns. That will take time, and we will see inventory built. One question is whether we run out of inventory, which could send oil prices significantly lower than they are. Rebound we have seen coming off the 30 plunge in the previous week, is that based in your opinion on realistic expectations that the u. S. Saudi alliance can come into this and we could get a political solution to what has been a political problem . Neil i think where the u. S. , the Texas Railroad commission, align themselves with opec, you could see the potential for a deal that could take a lot of supply of the market. We would see a significant curtailment in production. Im skeptical we will see a deal come together. I think this is not an easy thing to do, given the number of companies involved. But wait to see that, that would be supportive of the price but at the moment that is an outside possibility at this stage. Haidi where are we in terms of valuations when it comes to these Energy Companies he a cup neil if you look at these valuations, the companies are 30,ng at multiples on a 40 pricing deck. Crude prices are 27, 20 eight dollars per barrel but if you look at the one year forward curve,curve, one year forward ps around 40. That is where companies are to give up at this stage is unusual. We should be expecting certainly, prolonged pricing unless we saw a u. S. Saudi pact to rein in production. Haidi that was Neil Beveridge of sanford c. Bernstein. Thanks for joining us. We have the latest from the bank of korea, saying they will provide liquidity to markets unlimitedly for three months. They will provided by weekly repo purchases. This would be weekly repo purchases to him. We have heard a variety of actions coming from the bank of korea, and the finance ministry closely monitoring the fx liquidity situation that they would be providing some Financial Stability for three months. The bank of korea saying they will provide unlimited liquidity to the markets for the next three months. China coming up, could central bank announced a cut to its benchmark deposit rate in the coming days yeah cap we will look ahead to the market in the coming days . We will look ahead to the market, next. This is bloomberg. Shery this is daybreak asia. Im shery ahn in new york. Haidi im haidi stroudwatts in sydney. The latest headlines, apple is weighing the delay on the release of its 5g iphone. The nikkei news reports the coronavirus is sapping demand and disrupting the supply chain. Development of apples next product is being hampered in california. A source said apple will make a decision on the release of the 5g iphone in may. Shery netflix is reducing video quality in india and some latin american countries to meet surging demand during the coronavirus crisis. Net fix netflix is the biggest internet traffic in the world after youtube, which reduced quality this week. Governments are concerned about conserving Internet Access for the hundreds of millions of people stuck at home. S P Global Ratings of her coronavirus pandemic delivers a shot of the a shock to the global Auto Industry. S p shares in may cut further. Global carmakers are being fall ino brace for a sales. Ihs market says deliveries will plunge more than 12 , to around 80 million, 10 million below its january estimate. Softbank shares are on the downfall in tokyo today after moving being downgraded after moodys downgraded the the debt rating. They accused the company of bias. 6 y are seeing a downside of. Joining us for the latest is our reporter. What doing we know in terms of where we are at . Softbank has been making these major decisions of the past few days and the markets are not liking it. It has been a roller coaster for softbank. The company lost about 50 of weektock value in the coming up to the big announcement of the 41 billion asset selloff. It gained 50 since. For the 5 drop today, you could theit is has capped rally. But the company has approved a , andbillion Share Buyback probably further losses are highly unlikely. What is interesting is how Different Companies interpret moves differently. Moodys is making a move by likeng valuable assets alibaba and sprint and softbank in a down market while s p a few days ago praised the same move as a move in the right direction. I imagine investors have a hard time making sense of this. Shery does this have implications for their vision fund . Maybe not immediately but it suggests [indiscernible] a backseat. E we already have that suggestion coming into the downturn. The Second Vision Fund is not coming quite yet, there might be in a fiscally but difficult time, it is hard to imagine [indiscernible] had before. It is possible they will have to take a hard look at their portfolio and see which companies are worth and fit additional investment. Haidi thank you, our Asia Technology reporter. How the markets are trading, a bit of a mixed picture. A down day for the nikkei and the nikkei falling more than 3 , the biggest fall in more than a week. Moreost be the kospi, measures to add liquidity with the be ok adding a weekly purchase system. Asx 200 gaining ground at the moment. Lets see what else we are tracking for today as the rest of asia comes online. , what should we be watching out for today . David the liquidity issue will remain one of the top stories for markets. The reason i bring that up for today, it could change but there is some semblance of normalcy coming back in your eurodollar market, for example. Not getting the same kind of explosion down in the market there. The bok,the be ok the rba, not just doing it but also saying we are going to be here and the bok for the next three months or so, the other thing i would point out is [indiscernible] is on the way up. This issue has not completely gone away. That is something to watch their he closely over the next very closely for the next few days and the next few hours. Shery what are you watching when it comes to the virus front . Ecowise, we dont normally obsess and spend a lot of time on the weekly jobless wills in the u. S. But that be the biggest point today. On average you look at maybe [indiscernible] 24 months, that is expected to explode past one million coming out today. We talked about singapore gdp and hong kong exports coming out. The pboc is reportedly considering a cut to the deposit rate, at one. 5 currently. [indiscernible] last time they also moved the benchmark lending rate. Since they introduced the new loan prime rate, the lending rate, the prime has gone down 30 basis points. Banks are getting squeezed. You are getting Bank Earnings coming up tomorrow and you will probably hear about the margins are getting squeezed because banks are being [indiscernible] discount. S at a dont be surprised if this comes soon. On the virus front, Southeast Asia is the news the new hotspot. Indonesia, thailand, malaysia have reported about 100 new cases. That is one to watch as well, obviously. Shery lots more coming up on bloomberg. David ingles there with what he is watching. Coming up, a chief strategist joins us to talk about how he is never getting the challenges in markets today. Our markets coverage continues as we look ahead to the start of trading in hong kong, shanghai and shenzhen. Open isg markets china a must upon us. This is bloomberg. Good morning oh no, here comes the neighbor probably to brag about how amazing his Xfinity Customer Service is. 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