Markets i treasuries as well. The aussie 10 year yield down 16 basis points and money rush into the end. Oil in a bit of a freefall once again. Brent crude down more than 6. 5 . We areke below 20 and watching indonesia here in particular just coming online. The stock index drops re. 5 . Once again, we are seeing a lot of these em volatilities, back once again. We are watching the pboc after that interesting move to cut the seven day repo rate by 20 basis points so they are joining in on the stimulus ways. Lets get more on this with david ingles coming forward. We are watching u. S. Futures in particular continue to head lower. Lets start with the 7 billion injection into the system. I mean, quite a bit. David yes. A couple of things i guess to get out there. You dont normally see a reduction of this magnitude from the pboc. You also have to consider the fact that we know the economy is not doing well and in fact, the latest forecasts now suggest quarter on quarter, you take the median. That is two. Second one, you are getting more and more of the pbocs peers. It is a very good example for today. They are deepening reductions in Interest Rates, in the amount of liquidity, and support that they are giving the economy. The pboc has not in fact, out and ejected injected liquidity. 28 to 29 days. Theome point, netnet, Chinese Renminbi is going to look very, very attractive given that everyone else is moving down in the pboc is not. That is another thing to note as well. Rate. N the seven day repo money market rates and china have been down as well. It might not look as big as that. This might be a coincidence. Day repo. Is the seven we have come from 4 in 2015. It might be a coincidence. It is up to you guys what to do with the information. Last time the pboc actually reduced this rate by more than what we saw today, we were in the weeks and months leading up to the 2015 one up devaluation of the Chinese Renminbi. I am not saying we are headed towards that direction but given the state of the economy there and the state of the Global Economy and external demand of demandinto sapping the for chinese exports, for example, and their trading partners, a strong current the is something you do not want to have at this point in time. Also, the mes out of action today, delivered a pretty unprecedented easing. Tell us more. David what they did with their settings, and i know it can get very confusing with all the terms, the slope, the width, the center, what have you. He read the statement on the website for everyone to read as well is that back to my earlier point, is that appreciation of the currency is not a welcome dynamic to have right now. The economy is expected to enter a recession this year as well, thehat they have done with sneer is zero appreciation. Last time we had that was back in 2008. In other words, they eased as expected by the market and the singapore currency, 143 against the u. S. Dollar. Yvonne anything else we should watch out for this week . David where do we start . [laughter] david where do we start . Earnings is going to be a big focus in hong kong this week if you look at fundamentals. Volatility will continue as well. I want to show you a chart later on in the program where you have the 10 day, 15 day, 20 day, and moving averages in the vix moving up, getting rid of the aberrations as well. Pmi numbers coming out tomorrow out of china will be very big because that is going to answer two questions. One is to what extent did china come back online for march, and the other thing that will help as well is toward the month of march, that is where we are seeing chinas trading partners shutting down so that partly will help answer the question, is it going to be vshaped, ushaped . What letter you want to pick out of the alphabet right now, and how will we price in the recovery, yield curves, earning specifications, fair value of assets right now. Longhow much really how will we be in this boat for . Leave it lets there and get to our guests at for fidelity, international director. Good to have you with us. Let us start with the mas. It did recenter, it did reduce the slope, but at the end of the day, it was still saying fiscal measures will help singapore overcome the impact of the virus. Fair assessment or not . Yes, exactly. Im in, that is exactly what we are seeing in this sun oreo, where markets are still in uncharted territory. You know, we have governments around the world focusing on trying to contain this pandemic. What is important from trying to contain the economic dislocation is really to provide some kind of fiscal stimulus, and that is like a concerted effort that we see. Whether it is the u. S. , whether it is governments in asia, everybody is trying to do something, and there could be different ways of doing it and it is not the end yet, so that is where we are as we assess this sort of disruption or dislocation from an economy standpoint. I am just wondering what impact that will have on the seeing dollar, which is already nghseeing dollar si dollar . Medha i mean, we are not trying to make currency forecast but what we are seeing, generally speaking, is on the one hand, you do have the u. S. Dollar under a bit of pressure. It does mean that emerging market currencies could be a little bit held up at the same time, but what we are really focusing on is the impact of fx on Company Balance sheets and trying to sort of look beyond the shortterm noise, the shortterm sharp movements that we see in markets, in currencies, and trying to assess which kind of companies are able to weather the storm. Somee we are expecting pmis in asia this week. Do you think markets are willing to look past how bad they are going to be similar to what we saw when the u. S. Jobless claims reached a 3 million plus and markets just shrugged it all off . Medha so i think markets already are expecting shortterm numbers to be not good. In fact, quite terrible, whether it is headlined gdp, growth numbers, employment, and that is really key. It is really sort of this notion of first in, first out. When you look at economies around the world, so china has got into it first. China seems to be coming out slowly, so employment will be key. How do the factories get back to normal, to what extent, what is the capacity that you are seeing here . We are seeing here . That is how you have to start when you assess the impact of this across sectors and companies. Yvonne how do you start positioning once this virus peaks . What do you start looking for when it comes to entry points . Do you think that now that we have seen various stimulus measures kicking in that there is a bit of a turning point now . What markets are really telling us is that we are still in uncharted territory. There are questions on the timing of the stimulus, how long, and will this be enough . That is one aspect of it. At the same time, when you look at the stages of this pandemic, you have got into escalation. The epicenter has shifted to the u. S. Now, it is also about containment, where we that are really are at the beginning with china showing some sort of that. We are far from recovery yet. Time. Ould take some given that, valuations have been quite supportive because you have seen indiscriminate selling right from china to india, which continues to be in knocked down. We have seen highquality names have been down indiscriminately and valuations are looking attractive, so it is really about trying to be selective, not just focusing on highgrowth areas for the future but perhaps also the time to be contrary and and trying to see where there is value and which companies can also emerge here. I am wondering whether the markets are still too optimistic. If you go back to 2008 and 1999, markets were down Something Like 50 . Right now, with the recent alley, it is only down 25 . How much more downside given that we are expecting week data from here . Weak data from here . Medha just the downside would really depend on a combination of factors. One is the data points, as you pointed out, but also in terms of numbers, in terms of the outbreak, the pandemic, where do they peak and where do they start stabilizing . That is the second phase of this whole process before we get into recovery. And it is really going to be hard to call those bottoms but its about actively engaging with the companies and trying to figure out what are Balance Sheets telling us . Where israel cash . Is is real cash . Is there unreasonable levels of debt . Even if you dont find the absolute bottom, what youre trying to see is that getting to positions with marginal safety out there. Yvonne what would be a contrarian call right now . Well, we are looking at opportunities across china as well as in india. From has been a market first in, first out valuations looking attractive. That is the highgrowth side of china. When we talk to companies, they are reinforcing that people are coming back to work. Traffic levels have stabilized. And improving. Companies, before this crisis, who were talking about the income side of giving back to shareholders, it is all this sort of dividend payouts. That is quite interesting for us. Has traditionally been a very high market and where valuations have now been sold down. Its really about those highquality names so we are seeing opportunities across both those areas. Yvonne thank you. Medha samant joining us from hong kong. First word news with Karina Mitchell in new york. Karina an additional budget in the next 10 days to file the coronavirus with shinzo abe warning of a long battle ahead. He said people must remain vigilant but ruled out the need for a state of National Emergency for the time being. Reports from tokyo say the postponed olympics may be held in july next year. Organizers are planning to make july 23, 20 21, the opening date. At the u. K. Government is warning the nationwide virus knocked down could last for months, not weeks, and the number of deaths is expected to rise. Ministers are considering tighter distancing measures to control the outbreak of current rules prove inadequate. Boris johnson remains in isolation after testing positive for the infection. New images from the European Space agency show industrial emissions falling as the during thelows coronavirus. Major air Quality Improvements from march 14 to 25th. Italy reports a second straight daily fall in the number of virus deaths. Italy and spain remain the hardest hit nations in europe with total fatalities between the two topping 17,000. Jeffries said the cfo of its main subsidiary has died from complications linked to coronavirus, marking one of the first reported deaths among wall street figures. 2007d been cfo since late following a 16 year career at morgan stanley. The news comes as thousands of traders deemed essential to working life continued to head into the office every day. Global news, 24 hours a day, on air and on quicktake by bloomberg, powered by more than 2700 journalists and analysts in more than 120 countries. I am Karina Mitchell. This is bloomberg. Yvonne thanks. Still ahead on Bloomberg Markets asia, oil tanks on both sides of the atlantic as the coronavirus wreaks have it havoc with a market drowning in crude. China looks at the headwinds and opportunities facing logistics with a cfo. This is bloomberg. Yvonne just want to bring you some of the latest pictures coming out from beijing. This is the ministry of industry and Information Technology holding a briefing on the resumption of manufacturing in china following this virus outbreak. They seem to be sending a message of caution, saying exporters face greater risks as virus cases rise. Also urging close attention on the challenges and timely steps. This of course as factories are getting back on their feet in china, but we are just talking partnerst week about like spain, italy, as they deal with shutdowns, cutting off orders to chinese factories as well, so things are back on track. The external picture still remains quite murky out there. Haslinda hong kongs number two Government Official is pledging more Financial Support for struggling Small Businesses as well as workers. Social gathering restrictions were put in place over the weekend. Our chief north later correspondent joins us now. Stephen engle, this is not surprising. People and businesses do need help. Stephen thats right. I was out yesterday, albeit very briefly, in the bay area of hong kong. It was empty. Shops were not full at all. Even if they were open. That is what is happening in hong kong right now. Enterprises are getting the brunt of this damage, if you will, because they had seven months of protests damage, now going on a couple of months of coronavirus, and now, we are having increased restrictions coming down from the government as of friday that were enacted this weekend. Cannot have social gatherings of more than four people. Restaurants have to have half the capacity. The food and Beverage Industry is getting pummeled. The number two official after carrie lam in the blog post yesterday saying more stimulus. Another package is coming that will target the Small Businesses as well as the workers who cannot make ends meet, however, in that blog post, fairly informal, did not give a timeline on that or the scope and size of that financial assistance. Right now, like many places in the world, hong kong is trying to whether this out and these new restrictions will be for 14 days. They are worried about the resurgence of the important cases. Hong kong has 641 cases, another 59 reported yesterday after 64 cases on saturday. Four deaths still for the mortality number. 641 cases in hong kong and a population of 7. 5 million. Yvonne more social distancing across the region as well, steve, with singapore. We heard some more measures there. It indonesia now even considering a massive quarantine. Stephen thats right. This quarantine is likely to be decided on today. It could affect some 30 Million People in western java. That is the area in and around jakarta. Ricarda has more than twice the of infections nationwide, which of course is in our post an archipelago of many islands. They are trying to get ahead of the spread from one island to the next. Jakarta has 675 cases out of 1285 nationwide. Inre are 114 deaths indonesia, the most in Southeast Asia. They want to get ahead of that, especially ahead of the migrant travel season, which is coming up next month as the end of the fasting month starts, so they are considering a fairly dramatic lockdown of some 30 Million People. To keep those Migrant Workers from returning to their hometown and spreading, potentially spreading the virus. Singapore 840 four cases. Three deaths. An emergingtting from the government. Stay home. Order food online. Do not go out. This is in addition to other restrictions such as banning shortterm visitors as well as closing down pubs and cinemas. Singapore wants to battle the imported cases of the virus. Haslinda airlines and tourism pretty much at a standstill. Muchen engle, thank you so for that. Still to come, we look at the impact of the coronavirus outbreak with key figures from the asia pac. Keep it here with us. This is bloomberg. Haslinda welcome back. Heres the latest business flash headlines. Chinas number two lender reports higher profits from last year, improving its defenses against potential losses from the economy at the start of 2020. Construction income rose to 30 billion, slightly better than the average estimate in a bloomberg survey. They seem to whether the trade war and the economic slowdown from the virus. Sinopec has refiner reported fouryear earnings down 7 as the rising fuel glut on the mainland hits office. Net income jumped 8 billion last year from 8. 6 billion in 2018. Operating profit fell 44 , highlighting week domestic demand for fuel. Chinese electric vehicle maker byd is planning to offer a full range of parts to its rivals in an attempt to diversify revenue sources. Companyen buffett back sells complete cars but would also offer competitive batteries, powertrains, and lights. Byd has been chinas leading maker of alternative energy for at least the last yvonne taking a look at your movers here today in the asiapacific, we are heading mostly lower but we have seen some standouts when it comes to the health care sector. You see the likes of Fujifilm Holdings in japan. They will be trialing for the coronavirus. A potential newcomer for the virus. It is a big leader on the board and south korea, up 13. 5 percent. Another biotech name. Health care in focus today. We are watching some of the tech names up 6 . On the flipside, the worstperforming is wanda film holdings, and the terrorism stocks are taking a hit today given some of the coronavirus jitters we are seeing in the market and of course, we are following the Energy Sector in particular with oil in a tumble. To 15 . Close plenty more to come. Walk you through all the moves we have seen in the last couple of hours. It certainly has been quite actionpacked with pboc cut and the sevenday ricoh rate. Repo rate. We are seeing that benchmark down more than 3 . 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. Just want to bring you an update when it comes to your markets. Seems to be once again a riskoff session after what was a pretty decent week that we saw. In asian stocks were seeing the biggest weekly rise since 1990 last week. That all came to a stop this morning. We continue to hear more threats or fears of this infection in the u. S. 200,000 could be the death toll according to anthony fauci. You have the pboc stepping in. The mas with stimulus as well. That seems to be at least trying to at least keep the losses limited here at the moment. In the hang seng down 1. 3 . Off the lows in the asian session. Down 3 . Lets flip the boards and watch the class b, taiwan. I mentioned to singapore. There was confusion on my part. Slope asecenter the well as reduce the slope to zero for the currency band so certainly, that was what was expected for the markets are you are not se