The u. S. Enters a new week with the highest number of coronavirus doubts in the world. Administration is still trying to ease lockdown restrictions by may. The Top White House virus eight says infection levels are stabilizing. Some of the u. S. Could be open in the next month. The imf and world bank held meetings this week using digital remote software. The global lenders will facing new reality of mounting unemployment. Thecials have already said Global Economy is suffering its worst recession since the 1930s. India is set to extend its current 21 date lockdown to the end of the months to allow more time to evaluate the spread of the infection. The Prime Minister said the government has adequate supplies of medicine and protective gear for frontline workers, adding that the next four weeks will be critical. The virus is ad social emergency. In hong kongals are facing a pay cut. Announced new stimulus. The additional spending accounts for double the projected government budget. The philippines says it is ready to act again to support the economy. They say it is a onceinalifetime crisis. Pandemic hasthe halted plans to further open the stock market. 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. This is bloomberg. Rishaad lets get to the Market Action. What is at the moment driving the mood in the market . We have huge amounts of worry. Is really being looked at by investors . The earnings season is really going to start kicking off in the next few weeks. Investors will be looking at the g20 meetings to see what comes out of that. Downgrades to the Global Economy. Stocks are up about 20 or more from their worst point. There has been quite a rally. It makes sense that people might be taking a little bit off the table right now. Rishaad what about opec . That was quite a result for them. They managed to hammer out some kind of agreement. The oil market was, on the one hand, rather pleased. It seems to be a bit satisfied. Is up at this point little bit. It has been volatile as people try to figure out what the deal is really going to mean. We will see what it actually means in terms of supply. People are not so certain that it will make a difference. It might take a few months for all of the changes to come online. Governments and Central Banks introducing measures to help the system. What are you looking at . One interesting thing today is that there are reports that singapore might tap into its reserves a little bit more. Governments are doing this. We continue to see a rollout. It might make things worse for some of the riskier credit. It may exacerbate differences between the two types. Rishaad thank you very much indeed. Ahead, we are joined by a guest from shanghai. Later on we are joined exclusively by the chairman of suzuki. He will be telling us how his country is company is coping with the lockdown. This is bloomberg. Rishaad we are back. Heres a look at the latest headlines. Coronavirus shutting down major plants in the u. S. Some employees were infected. The meat supply is perilously close to the edge. 3700 workers will receive pay for at least two weeks. Laying off thousands of staff amid the coronavirus. Hotel rooms are empty. Softbank is still reeling from the failed ipo of we work. Losses. Ow have to take ministers try to ensure that the Competitive Airline industry exists after this pandemic. Most of the fleet has been grounded and staff has been laid off. Starwood capital is finding opportunities to buy as policies change under the pandemic. Recently started buying commercial bank equities. He is also looking at Central Banks. I was pretty bullish. I thought this would pass. That the cover went government would probably over stimulate. With theave to deal ramifications of trillions of quantitativew easing or paper printing. Now you have this Oil Price War. On top of that, i was pretty optimistic and people thought i was nuts. About new innovations in the. Edical space every day i hear about another condition or way to help people that have contracted this. Are you inspired . Are you still as optimistic . No. I think the market may be a little bit ahead of itself on the slope of the recovery. I think the Manufacturing Sector will come back. We were all encouraged by chinas recovery. But if you look at the real , hotels are running 30 occupancy. People are not traveling. Theyre not going to restaurants or malls. Things will be slower here depending on what happens on the medical front. Recovery will pick up dramatically in the third and fourth quarters. This quarter will be a mess. I think we are seeing it in certain sectors. It is the shredded stocks that were impacted. That is the functioning of the market mechanics. They are dominated by this. Exchange traded funds. Individualof the characteristics. The baby got swept out with the bathwater. Some Companies Really had challenges. People are freaking out. Have you bought anything . Yes. What have you bought . I just bought some commercial mortgagebacked securities. Some equities. We have made offers to buy hotels. Nobody can really buy anything until the debt market stabilizes. Global coronavirus cases are rising. The u. S. Now the epicenter of the outbreak. There are signs of optimism in hotspots such as new york. We are joined by Sophie Kamaruddin. Sophie over the weekend, several mayors and governors said it was too quick to return to normal. New york state is the most affected in the country. The death toll has passed 9300. But if et al. At the rate does appear to be flattening. Governor cuomo said they can continue to begin to open. Said thaty felt she parts of the u. S. Could be ready to relax emergency measures in may. But there could be new rates of infection. Mean that the u. S. Economy faces another 18 months of rolling shutdowns. There are four different diagnostics needed to reopen the economy. In the u. K. , three weeks of lockdown, is there confidence . Sophie there needs to be clear evidence that a turning point has been reached and the united kingdom. Deaths are still rising in the country. His office has not provided guidance. Rishaad good to talk to Sophie Kamaruddin. Joined fromare shanghai. This is bloomberg. Haslinda haslinda welcome back. Companies are rushing to find a treatment. One is a Pharmaceutical Company based in shanghai. It hopes to have products ready for human testing by august. Joining us now is the ceo. Good to have you with us. Give us a sense of how the pandemic affected your production and your facilities. Where are you now . It is great to be here. I am currently in china. Back to normal operations. Haslinda give us a sense of what is back to normal. Are you back to 100 . Where are you now . We are back to 100 . More than 99 of our staff are working. We will be doing some overtime starting this month to catch up. We have plenty of capacity. We are working on more than 10 treatment programs for antibodies. Preventtually possibly covid19. These are a couple of programs we are working on. We are also negotiating on vaccines. Our efforts in treating the pandemic includes three aspects. Some of thend biological effects of symptoms and vaccines. Which one of those three are you most confident with . How far away do you think you are from achieving something in those three areas that you mentioned . That is the milliondollar question. I would split the science tell. We have more than 10 programs right now. We hope to have programs as early as august. Hopefully some of those will be really successful. And become a positive treatment for covid19. Some of the programs that i , they are already in the clinic. It may help the critically ill patients. Vaccines are absolutely necessary to have. Longterm prevention of the disease. Rishaad what are the scientist telling you about the biggest challenge when they confront this disease . What is making it so difficult to come up with something that cures it or prevents it . This virus seems to be a little bit more elusive. Every day we are learning something new about the virus. About the structure. About antibody treatments. This is very technical. It did not do well in a live virus challenge. It is absolutely needed. As you ramp up your operations, are you looking to invest more in r d . Yes. To wins the first wave over covid19. This is why we have so many programs ongoing. We have 500 people already working on it. Of this year, we could have 1000. Haslinda how do you see the coronavirus shaping chinas future . That is a great question. Chinagovernment including , how important is the Health Care Industry . The Global Community tends to have a very short memory. People forgot about sars. Hopefully this time the Global Community will remember after this pandemic. So that we are prepared the next time it hits. Thank you very much for joining us. Look at what is happening with the markets. This market was closed on thursday and friday. Some optimism up more stimulus coming through in the shape of Interest Rates. They are ready to cut the key rates below 3 . That is what we have at the moment in manila. Lets get it out to tokyo. We are heading toward the lunchtime break for japanese markets. Another down story here. Very Little Movement in the bond market. This is bloomberg. These days you need faster internet that does all you expect and way more. Thats xfinity xfi. Get powerful wifi coverage that leaves no room behind with xfi pods. And now xfi advanced security is free with the xfi gateway, giving you an added layer of network protection, so every device thats connected is protected. Thats a 72 a year value. No one else offers this. Faster speed, coverage, and free advanced security at an unbeatable value with xfinity xfi. Can your internet do that . 10 29 a. M. In hong kong. The euro is higher in asian trade as reports from across the European Union indicate a slowdown in new cases. Italy had the fewest fatalities in three weeks while france reported the smallest rising deaths in four days. Activism is allowing government to look for ways to ease the lockdown on cripple economies. Warnings that the euro zone is likely to see a more severe recession than the rest of the world and may not recover until next year. Prospects are deteriorating across the European Union as governments extend lockdowns with the French Economy contracting 6 in the First Quarter. Indonesia is pricing aroundtions on cities jakarta as cases in the country top 4000. Agovernor says it is onceinalifetime crisis. Myanmar says the pandemic has halted plans to further open its stock market. Seen expats fleeing. North korea says it is going to take more steps to combat the coronavirus but that the situation remains stable. Kim jongun chaired a meeting of the ruling politburo over the weekend and they said it is impossible to totally incubate infections. From the 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 karina mitchell. This is bloomberg. Rishaad thank you. Lets have a look at what is going on marketwise. Japan on its lunch break. Asiapacific, several markets not trading. Some movement to the downside. The philippine market has been shut since friday. Buting catchup over 1 generally speaking, we are to the downside. Off by aa index just fraction. Emerging markets index under pressure. Might bee things that bringing some relief is the Historic Deal to cut Global Petroleum output by nearly 1 10. Of into the upside but we did see quite a bit of consternation with this as Oil Prices Rose on the move, then dipped quite sharply, now on the up again. Guy wolf, global head of Market Analytics. Thank you for joining us. Lets have a look at what you make of this deal. I think it is enough to put a floor under oil prices for now. The market was sort of anticipating this move, so we priced in a lot of the projected cut. In the shortterm term, almost any supply cut will not be big enough to offset the collapse in demand we have seen. The market prior to this was deeply concerned about whether it would run out of storage capacity. To hold all this excess crude. This announcement is enough to take that fear away. However, the big question remains, the demand side of the equation, which will be driven by economies coming out of lockdown. Me an idea ofgive how bad the demand side is. How far has this fallen off a cliff here. Percentages are we talking about . Economists are finding it very difficult to forecast anything. It is so far outside of anything there has been any experience of. Data, seeing it in gdp employment data. Even with the 50 million barrel cut in production, the current consensus seems to be that we are still running at excess supply. Idea to theou some degree at which demand has fallen. It has probably fallen a little bit more than that because some of what we have been seeing is owners of inventory taking advantage of cheap spot prices to sell forward and capture the curve. Probablyld say it is 25 to maybe even 30 Million Barrels for day as far as demand. Haslinda what does that mean in terms of prices . You said the cut would put a floor to prices . Will that. To bringhat be enough prices up to about 40 per barrel . Guy kind of two ways to look at this. The price today and the price later in the year. Those will be very different things. The price today is still realistically going to be week. Now wontly hopefully quite so overwhelming where it can be by the end of the year is another matter. Cutswith these production on the assumption that they are fully implemented and they do begin to come back to work, we are still going to have a lot of excess inventory built up over that period to work through. Some of that production will come back online as the economies recover. I think it is unrealistic to think that you snap back in crude prices in the near term. Of 40, can we be north maybe even approaching 50 by the end of the year . I think that is feasible if economies recover as we think they do. Haslinda we are waiting for saudi aramco to price. What docique aramco you see aramco doing . Guy they have to follow through. If they dont, someone else will. Announce hasthey to be completely in line with the agreement just struck. Market is the oil going to be in trouble. Agreemento reach this and instantly be the ones to flake on it. Rishaad i just want to get to what you were mentioning. The ceasefire may not last, the smokeexican cut and mirrors has some have argued. The saudis or the russians did not want to come in monday or tuesday morning. What is your take . Guy there is nervousness because obviously the saudi increase itself came out of that, one could argue, quite extraordinary time. It seemed to be a time in order to crush the market. Beenusly, it has really the u. S. That has been the trying to force this deal through. Previously i was saying, there is a reason why cartels are illegal. They work for the members of that cartel. While members would try to cheat within a cartel, the truth is that most governments are desperate for revenue. You would need quite a strong reason, i think, given how far oil prices collapsed, 20 be the one, whether youre right oil prices collapsed, to be the one, whether your russia, mexico, or saudi arabia, to blow this deal up. Rishaad where prices are and where production is, where does that leave shale . Guy that is probably going to be the last thing to come back. One thing that allows this deal to hold together is the fact that people generally think you need to see crude around 50 a barrel for that to be profitable. On the assumption that steel holds together. Shale will be the last half of the supply to come online. Opecplus have achieved what they set out to achieve by forcing u. S. Shale production offline for as long as possible. Haslinda apart from oil, we are also keeping an eye on copper. Demand for copper is recovering somewhat with china back online. Not as much the rest of the world. How is it weighing out in terms of copper price . Workmetals actually relatively resilient. People were fairly bullish on the metals market. Prior to the market come on the assumption that postchinese new year, china would see some sort of recovery. Inventories are not particularly high. With china trying to stimulate their economy, china might struggle to get enough Raw Materials into the country. There is a prospect of metals markets actually doing rather better than people anticipate. Some people have concerns around the lack of western demand. But the majority of metal that they produce in china is consumed mystically. Actually look a reasonable prospect here. Rishaad i am not sure you can talk about gold, but i want to get your view of why gold has not gone up as much as some of the pundits were expecting at the start of all of this . Guy last time i was on bloomberg, i was outed as one of the rare bears in gold. Gold come ultimately, it is really a u. S. Dollar play. Twoyeareen through a rally. Repatriation of the currency through tax breaks offered by the trump administration. Having said that, that sort of crowded position. This was true in 2008 as well, then gold did not prove to be a safe haven as well safe haven at all and was hit as much as any other asset. In the shortterm, it has been a particular issue surrounding lillian and surrounding bullion and the availability. I think that is largely out of the way and gold looks somewhat more favorable. Fiscal stimulus and monetary stimulus going on globally. Haslinda guy, thank you. Lobal head of Market Analytics plenty more to come. The biggest lockdown to contain the spread of the coronavirus. More on that, next. This is bloomberg. Haslinda india is said to expand the worlds biggest lockdown to contain the coronavirus. What is the governments plan now . India is all set to extend its 21 day shutdown. In march, modi is expected to make a formal announcement on the extension today. Absolutely no Business Activity from any ind