Decline in infection rates as people are told to stay at home. But the virus continues to ravage economies across the world. Bloomberg economics seeing australia is heading for its deepest rest recession in 90 years. Taylor a quick reminder of how u. S. Stocks ended the day. A pretty good day on wall street. Up date on the s p 500, the fourth out of five up days we have seen as futures come online. Some of those gains just lightly continue to be extending in the session. So, starting to hear some rumors perhaps of catching a bottom with the equity markets, as you have not seen major losses. One market that is seeing major losses that we flip up the board, it is all about the equity markets, within the crude markets, i should say. Crude falling on monday, down for a Third Straight day. Today, now monday evening, trying to recover some of those losses. Up to 8 10 of 1 but Still Holding onto a 20 handle, near the lows we have seen going back since 2002. I want to see how things are shaping up for asian markets. Sophie kamaruddin has you covered. How does it look . Sophie this tuesday, futures are pointing higher in asia and kiwi stocks are extending gain, while the kiwi dollar is trading as the rbnz started the Corporate Bond buying program today. The last day of the quarter which brings the japanese jobs outlook from japan as well as south korea. Chinese pmi and Hong Kong Retail sales. We have had korean Business Confidence sliding further ended the week domestic demand. We will get earnings from the xiaomi. D such as shalx a 50 drop in net profits on sunday. In sydney, stocks look to extend gains after the biggest drop on the asx 200 on the governments stimulus package, with health care leading segments higher. This tuesday, we are washing Virgin Australia as it is seeking a government loan for 1. 4 billion australian dollars. After a rough First Quarter that had valuations down across asia, but bear in mind, the priciest market in the region with india as well as china. As we prepare to enter the Second Quarter, jp morgan suggests enough has changed fundamentally as well as technically to justify adding risk collectively. At goldman, they expect markets to turn lower in coming weeks. Still not really getting much market consensus as to where we find a bottom in this turmoil. Sophie in hong kong. President trump and his virus Task Force Team continue to speak at the white house, saying that more than one million americans have been tested so far for the coronavirus. The president also saying travel restrictions will remain beyond Expiration Date and a National Lockdown would still be unlikely. Reporter Emily Wilkins joins us on the line. We heard even as President Trump that a National Lockdown is unlikely, more and more states in the u. S. Are issuing these lockdowns of their own. Emily that is right. We are seeing today virginia, maryland come out with stricter lockdown orders. We are starting to see that for other states as well. Rural states today on a phone call with President Trump emphasize their need for more medical equipment, more supplies. I think this is something you are beginning to see in almost every part of the country. Abbott you had laboratories come out late with a quick rapid test they had. Johnson johnson is coming out and looking at vaccines perhaps sooner than we thought. What are you hearing about any potential response that we could be getting from the medical community to help speed up some of this recovery . Emily there was a little bit of discussion about that. So far, the rose garden speech which is currently in progress right now. There has been a discussion about doing a faster test. Who has been an all hands on deck situation. There are many people working on it right now. I think as he both pointed out, trump touted the fact that america has one Million People tested at this point, which has sort of been initially something the administration was criticized for come up for not having the testing in place. For deciding not to use the World Health Organization test and create their own. I think at this point, we are a couple of weeks in, you are starting to see more mobilization from groups who have understood now for several weeks that testing is absolutely key if we want to better understand who has this virus and make sure that they are being prevented from spreading it to others. Taylor i know we were talking yesterday about peak deaths coming into weeks time. Is that still on track with some of the news we have gotten out of washington today . Is that when we can see a flattening of the health curve which we have become so familiar with these days . Emily to be honest, i still think a lot of the theres a lot of unknowns out there. Trump during his rose garden speech said the next 30 days would be absolutely critical. That said, there have been other individuals who have suggested this might go on for far longer. That this might go on into june, july. I think everyone is in a bit of wait and see pattern at this point. Saidw the administration under even the best Case Scenario mother could still be 300,000 deaths in the u. S. And that is if everything goes perfectly. Taylor Emily Wilkins there. The World Health Organization says there are faint signs that italy and spain may be nearing peak infection rates. Although reducing the number of new cases requires proactive measures. Salamant go to rishaad for the latest on this. What is the latest we know in europe . Saying there is some stabilization. In other words, some light at the end of the tunnel. Part of that has been based on what is going on in italy. The country saying out of it has the smallest number of new cases in almost two weeks. This is the heart of the outbreak in europe, the hardest hit country in the region. Michael ryan, the head of emergency at the who, talking about there might be some hope in italy and spain. That there were perhaps be a peak and the lockdowns we are seeing will start to bear fruit. That is what they are basing on. Just to tell you a little bit about the fight must go one against the coronavirus. And they must not relet in any way. Deaths oneporting 812 monday, a slight decline on the previous days record. We got spain battling this outbreak. In order to perhaps contain it further, the Prime Minister did announce over the weekend plans for even tighter restrictions on public life. Ordering those at nonessential services to stayathome. Thats exactly what we have at the moment coming out of the who as well, saying there is no time to rest as well. Having a political fallout as well. Giuseppe conte, the italian Prime Minister, the country hardest hit. He said he have to fight to hold society together. In the southern parts of the country there, which is notoriously a long lag behind the wealthy north, it has become the governments top priority at the moment to bring some calm there. Police deploying on the streets of the sicilian capital after gangs used social media to plot attacks on stores. Taylor now, italy has been reporting the lowest number of new cases in nearly two weeks. I think we would argue that the financial crisis there is just now beginning. How concerned is the euro area group about some of the financial strain that we are now really just starting to deal with . Rishaad indeed. The euro area, no doubt, is going to come out of this crisis with huge and higher debt levels. What we do have is seen officials in the region say that the government, individual governments must use policy to prevent the threat of a bloc fragmentation as well. Really talking about the way the euro area deals with this crisis and determines the future, the shape and extent of the recovery as well. Now, this is all coming after European Union leaders struggled to agree on a concrete strategy to contain the fallout from what the pathogen has been doing. Weve got these entrenched differences between the french and germans. Of course, the italians, in how to actually share the financial burden here. Just a put it into a bit of aedicting this pandemic worst recession than the financial crisis. Even as most businesses and Movement Restrictions are lifted in the middle of may as many are predicting, it would allow the economy to recover during the summer period. Overall, according to the german counselors economic experts, that would a specter shrink by Something Like 2. 8 this year. That is where we are with it. We are just counting the cost. The question is how much is it . That is like how long is a piece of string . Taylor rishaad, thank you as always. Still ahead, we will break down the impact the virus is having on the tech supply chain. With us Senior Analyst medhi houssini. Apples most important supplier sees profits slide. Cougar Global Investment cio tells us why he thinks the pandemic is a black swan shock unlike anything we have ever seen before. This is bloomberg. Haidi you are watching daybreak australia. Ritika President Trump says the u. S. Should see Coronavirus Infection rates peak within the next two weeks, but does the country face a challenging month ahead. He spoke as more states impose restrictions, with virginia and maryland issuing lockdowns. New york city said the rate of new cases is slowing. More than three quarters of a Million People around the world have been infected, with 37,000 fatalities. China is set to Start Publishing a date on how many people are infected with the coronavirus without showing symptoms. The premier is telling local authorities to track entry cases of socalled a symptomatically infection. It follows International Criticism of updating figures only operate. Local media data will be released soon. They are growing fears the tokyo economy might stall if there are several new virus infections reported. Japan has remained relatively free of the pandemic, but there is concern any rising cases will prompt authorities to order a lockdown and the closure of shops and restaurants. A full shutout in tokyo would be equivalent of freezing and economy the size of canadas. New data suggest australia is heading for its deepest recession 90 years, as measures to curb the coronavirus pushes businesses to the edge. Bloomberg economics says gdp will decline by 10 in the first three quarters of the year before showing a gradual recovery. The government is pledging the equivalent of 80 billion over six months to safeguard jobs. Millions of Migrant Workers continue to leave town in india as the virus lockdown ravage the economy. The benchmark start index fell on monday and poised to see the worst quarter ever amid fears the governments response may not be enough. It is set for threemonth decline of more than 30 , surpassing the previous record set through june 1992. Global news 24 hours a day on air and on quicktake by bloomberg, powered by more than 2700 journalists and analysts. This is bloomberg. Taylor . Taylor there have been plenty of comparisons of this crisis to the one back in 2008 but there are some key differences. Earlier today, bloomberg spoke to the former options trader who predicted the financial crisis in her bestseller, the blacks long. Black swan. It was a white swane. People would say it is a black swan. We have had black swans. September 11 was a black swan, but this is a white swan. There is no excuse for any corporation to not be prepared. There is no excuse for governments to be not prepared for so like this. Taylor joining us to discuss is cougar Global Investment cio and Portfolio Manager abe sheikh. I want to get your reaction to that. Nassim saying it is clearly not a black swan. We should have been prepared for this. The risk was low but there was a small chance this was coming. How do you respond to that . Abe first of all, thank you for having me. I think he makes a legitimate point that we were probably going to have a pandemic at some point. And whether that pandemic emanated from china or elsewhere was probably anyones guess. I would call it a black swan. Because it is a novel coronavirus. Novel means new. We didnt really know this actually existed and it actually was not something that humans could actually catch. I would call it a black swan, even though he has a fair point. Taylor within your top three convictions, you talk about a Second Quarter drop in gdp. That it will be unlike anything we have ever seen before. I am curious i keep asking our guests this to try to get a consensus. How many of these job losses given the massive drop in gdp are permanent and may not come back . Abe my answer to that would be a lot more than people are expecting. The reason is because this is a systemic shock i think you alluded to a supply and demand shock, i think the economy will change. Fundamentally, companies will reorganize themselves. We have businesses disruption plan, most companies do. This will fundamentally change how companies work. That will affect employment. I think you are seeing that already. Companies that have less of a presence in terms of physical workforce are going to benefit from this. I think the trend is going to stay with us. A lot of these job losses are going to come back. A lot of the hospitality arena is going to come back and services, but a lot of them are not. Haidi, are you there . You know haidi essentially saying if you look at the effect of post pandemic. Overof the last periods the last hundred years, we are realng up for decades of depressed rates and return on assets. Abe thats right. I think theres going to be a longterm effect on this. I think whether we are sort of geared up for it right now and i think we are going to see how this plays out. But i think there is going to be an impact in the longterm of the current disruption we are seeing. We cannot gauge exactly what it will be right now, but it will last quite a while longer than people think. In that case then, what are you opportunistic about . Abe gold is probably my biggest conviction bet right now. The Federal Reserve will stay in this mode of printing money for a long time. I would say that gold is going to do well. In terms of stocks, im going to take a contrarian view. Ve been hit very hard. I would say if you got a bit of a longterm timeline, they are trying to show some attractive valuations, especially in the energy sector. If you look at companies which have a solid sort of portfolio of assets, it is likely to weather this storm over a multiyear period. You can start to look at highquality energy names. Some of these energy names will go bankrupt. In financials, i think a company like jp morgan with a strong balance sheet, they will blaster this low rate environment and then the economy will normalize, rates will go a little higher. Taylor one thing in your note that caught my attention, you are looking at below average valuations on some of these cavities. Curious how we are measuring valuations given a lot of companies have withdrawn the denominator of that multiple, earnings guidance. How then are you looking at valuations if we dont know what earnings may be . Abe that is the beauty of the stock market. We never really know what earnings are going to be. We think we know. These are good times actually for longterm investors. Youve got a lot of uncertainty about what the next year is going to look like. If you got the outlook to be able to look past the next year, maybe a couple years, maybe five years down the road, you can differentiate yourself and really earn normal rate of return. In financials, i will give you a longterm trend deregulation. The november 2020 elections will show us will be elected president. President trump has initiated a series of reforms that will flow through for many years to come for the banks. It is going to reduce capital requirements, liberate some of that sector. I think financials are going to do well once we get out of this extremely stressful environment. That is how i look at it. Not trying to estimate next years earnings. I look forward maybe a couple of years, three or four years. Energy is cyclical. The saudis and russians will get along at some point, whether it is with the help of americans or not. We are eventually going to see Higher Oil Prices and that will be a good investment, if you got the right asset. Taylor you like gold. I know in the past gold has sold off. Had gold firmly reasserted its status as a proper safe haven . Abe i think it is in the process of doing that. At this point, we had 23 trillion of debt in the u. S. At the federal level. That is probably going up very substantially by the time we are done with this crisis. 1 . Uries are yielding when you lack alternatives, youve got cryptocurrencies which is one play. I think gold is another play. I think it is going higher. Whether or not at some point gold has a sharp correction, i cannot say, but over the next 12 to 18 months, i can see gold prices going a lot higher. Haidi abe, how do you feel about tech given when you take a look at the faang, it was really the part of the market that took the longest to fall and the quickest to recover . Do you see the kind of post pandemic future being bright for these companies . Computing the cloud trend getting stronger. I think a lot of companies are going to work more remotely, but im not an uber bull on technology and i will tell you what, especially over the next five years. I think tech is very extensive. Expectations are still very high. If you discount some of the names that are advertised driven, facebook and google being prime example, the rest of the stocks have not come down in any significant matter even though weve had quite a significant crisis. I think