225 pulling back after the rally we saw last week. Infections in tokyo hit a daily record on friday. The sti, keeping a watch on banks right now. Dbs said to be among which filed for protection. Flipping the page, the bloomberg dollar index. It does look like investors are looking for havens. New york crude down by 13 . Gold lower as well. We have President Trump upping the ante, suggesting china may have deliberately caused the coronavirus pandemic, saying there will be consequences if the country is known found to be knowingly responsible. Beijing saying the u. S. Is trying to shirk its responsibilities. Another move to ratchet up tension between the two nations and the handling of this pathogen. Tom absolutely. Every markable uturn from the u. S. President. He was praising china handling the coronavirus crisis. Trump see me to suggest the chinese seeming to suggest the chinese may have released theycoronavirus, saying if are knowingly responsible, they will face consequences. Deborah birx, a member of the task force, she said china has a beal obligation to transparent in its response. There does seem to be an effort from the Republican Party to blame china. Criticismtrump facing over his handling of the virus. Again. A titfortat yet how has china reacted . We have had an editorial in the global Times Newspaper accusing the Trump Administration trying to shift the blame, it describes the handling of this disease as miserable and accuses trump and his team to try to win the election by stepping on china. These festering tensions have been there for number of years. They are being made worse by the lack of trust, lack of transparency between both sides when it comes to this disease. The steps that have been taken by both sides trying to control this virus. The tensions seem to be moving higher. We did hear from the foreign minister after he spoke to the head of the world health organization, he said the u. S. Acks on the organization he promised china would step up and support for the agency would step up its support for the agency. Rishaad what about china doing much more testing to understand the spread of this disease . Imately, it is trying to get a better grip on how this virus has spread. It is concerned about secondary waves where we have seen that on the chineserussia border. They have been ramping up tests as well as people returning to the chinese capital, which they want to protect as much as possible. They are testing people as part research,y, involving taking samples from people to see if they have generated those antibodies to fight the virus. This is trying to build out that picture. Allowresults could scientist to get a better picture of the disease and give them more information about the virus. It is part of that effort here in china to build out that picture. China has pushed back on those u. S. Reports that it concealed the extent of the virus. Itspdated its china virus data it has updated its virus data. Haslinda lets get a first word headlines with Karina Mitchell in new york. Administration is temporarily halting tariff payments. To decision does not apply countervailing measures. Beijing andst airbus remains in place. It allows for 90 days. Virus cases in india have rose to 1400 new infections, taking the total to 16,000. The lockdown enters its fourth week. India steps up testing with infections up 78 in the last week. Dr. Say the true number is far higher doctors say the true number is far higher. Virussia is tightening restrictions. Infection numbers rise. It will affect about 9 million more people as the virus continues to spread. Indonesia has reported the biggest daily increase of cases and the government is widening restrictions for cities around jakarta. Western europe is reporting a decline in pandemic cases. Coronavirus fatalities in spain the smallest oneday climb since march 22. Italy reported its fewest deaths in a week. U. K. From germany and the also show an improvement. 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. Come, markets to and the Foreign Exchange strategy. Gekit. Oronavirus test stay tuned for our interview with the founder and chief executive. This is bloomberg. Investorssian stocks, looking for a big week of corporate earnings. Managering in portfolio for the pendal group. Give us a broad brush stroke of what is going on with the markets and with oil where it is at the moment, what gives . Amy it is a pretty big question. As you summed it up, it is not over yet. Prettys march is a significant month in terms of drawdowns. As the dust begins to settle in the market looks forward, we are thinking about what does the shape of the recovery look like and what that means for various Asset Classes around the world. From our considerations, i spend my time looking at china and china has given us a bit of a blueprint, and some ways, for the covidfirst into crisis and possibly the first out of the covid crisis. It is clear that just because lockdowns start to get lifted, it is not abundantly clear that all the pentup demand is ready to be unleashed. It means that looking forward for the rest of the world and even for regions like australia where i have to put it to the government in terms of doing a good job in terms of getting the numbers under control the way that it has done. It does not mean the vshaped recovery at the other end when all of this began a few weeks back is all that certain and that we can look forward to such a sharp recovery. It looks more like a u. T u,aad it could be a fac according to a guest we had last week. The stimulus that china has employed is in marked contrast to the kitchen sinking in 2008 and 2009. Amy absolutely. So many reasons for that, right . 2009, the and stimulus was large enough that it prevented australia from feeling the worse. China has had to do several rounds of stimulus. It had to stimulate the economy ,n 2015 in response to the oil and the tightening it imposed on its own economy. This time, it has a lot less ammunition. There is a lot less in terms of building that china needs to do. A lot of that stimulus that was unleashed in prior rounds was on the housing sector. Cities ine largest china, vacancies are in the mid 20s to 30 . All the infrastructure that was unleashed in those priors rounds have been mostly been put to good use but there is a limit to how much Highspeed Railway that country needs and how many more freeways and toll roads that that country needs as well. There is not that same scope. On that point about this weekend, we saw the meeting happen where it was emphasized the need to put some support under the chinese economy, it needs to remain. Muchfiscal element is very uncertain at this time. What is certain, we have seen some rate cuts, but the rate cuts emphasize more the oneyear element, the being cut by 20 basis points. Being reduced by only 10 basis points. Haslinda you talked about how china provides a blueprint. What does it mean for assets . Some say that ems will be the first to recover and some say it will be the next shoe to fall. Amy that is a good question. It really does depend on the Health Infrastructure that exists. Obviously, as you know, in the developed markets, it has not been uniform, the experience, either. Emsay that we look at through the macro lens, it speaks to the amount of firepower available and the amount of fiscal room at the sovereign level and for those looking more deeply into em corporate space, the amount of space state support that is available. Em certainat parts of em in latin america seems the more troubled and exposed places. It is likely to be uneven. Haslinda looking at em bonds, they seem to be trading at stress levels. Anything looking attractive . Amy the only one i would point out is it goes back to china. The shape of the recovery, we have already discussed. Nevertheless, the shape of the recovery is likely to be a u. When you look at chinese rates, where they are compared to most of the developed worlds Interest Rates are, which are pretty much glued to the floor, and emergingmarket space where a lot of the more developed em have their rates glued to the outr as well, china stands as being one of the more attractive markets in terms of the rates. Ahead at the big picture, coming out of any crisis, what you see out of the euro sovereign crisis, a risk aversion that shows itself in terms of higher Savings Rates in this is adding to the savings block and those savings need to find some yield. That Risk Appetite is not going to go looking into the depths of junk bonds immediately and it will not go rushing after more equity either. It is more likely the savings are looking for good quality but modest income streams and looking not only at the chinese bond market but certainly any bond market where the curb steepness, curve steepness, or some kind of carry, and the risks that are presented, you will probably see decent inflows into those kinds of markets as the dust settles. Rishaad always a pleasure. Break. Take a trader, we will see the extent of the potential damage and ask whether there is more in the pipeline. This is bloomberg. Haslinda welcome back. The latest casualty in an historic collapse in energy prices. The founder claims the company has hidden lawsuits on futures trading. Alex has the story for us. What does this mean for banks that provide billions of loans . Yes, it is a sudden huge potential loss. Very troubling, as much as 4 billion owed. As well as an 800 million loss that was hidden from the Financial Statements. Thecompany sold some of barrels of oil used as collateral to secure loans. That means huge losses for the loans. Hat provided those rishaad tell me about the man himself. What did he actually do . According to people familiar with the matter. Apparently, he told the finance department not inreport these losses Financial Statements. So they were not there. The Financial Statements showed a much more healthy financial position, according to people. Banks were willing to lend on that basis and now the chickens are coming home to roost. Alex, what does it mean for singapore . It is an oil trading hub. Singapore, it is rocking the oil community. This is really unprecedented. There could be huge repercussions for companies exposed. From singapore. Boeing has suffered a new blow because of its grounded 737 max. Statement says they are ending plans to take 29 of the trouble jets as the coronavirus strangles travel demand. Jets onll have 70 max order. Ationas parliament ta walking away from a deal. Began late last year. It plans to reengage when there is clarity in the markets because it still sees it as a good strategic fit. National Australia Bank has taken a hit. It is blaming a combination of rising customer compensation payout, Software Accounting changes, and reduction of its value of its Life Insurance arm. Nab is australias biggest lender. Rishaad lets take a look at what is going on. We are seeing declines across the board. Some of those declines have been reversed. We are seeing some positivity in hong kong and shanghai. Looking at what is really grabbing people condition attention is the fourth column and that is wti. Looks,bad as it actually. Futures contracts are priced much higher than that. You can see the spread between brent and crude. The biggest we have seen since 2014. Deputy i crude hitting wti crude hitting the lowest point this century. There we go. This is bloomberg. Awesome internet. Its more than just fast. It keeps all your devices running smoothly. With builtin security that protects your kids. No matter what theyre up to. It protects your info. And gives you 24 7 peace of mind. That if its connected, its protected. Even that that petcamera thingy. [ whines ] can your internet do that . Xfinity xfi can because its. Simple, easy, awesome. [ barking ] trump haspresident performed a dramatic uturn on the coronavirus, saying china may have deliberately released the infection. He is considering punitive action. Only weeks ago, he was praising his chinese counterpart for the way the outbreak had been handled. Would you be angry at china . The answer might very well be asked. It depends, was it a mistake they got out of control . Or was it done deliberately . There is a big difference between those. They should have let us go in. Peoplea said testing of reveals only a tiny people are actually suffering. Fears of a second wave of infection have been rising. More than a quarter of a million tests were taken this month and less than 1 10 of 1 are said to have been positive. Calling on the imf to resist american pressure and approve financing to alleviate the virus impact. Imf for 5d the billion to shore up and economy already battered by u. S. Actions and falling oil prices. Saysmfs regional director it is proceeding. Show aation data dramatic falloff in passenger traffic across the block. It shows how lockdown and the subsequent crash in demand amid the coronavirus. Airports are handling 90 less flights that a year 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. Atlinda lets take a look where asian markets are right now. Broadly lower. There is trepidation that the earnings we will be getting throughout the week. It is a big week for earnings. Virus impacting businesses in the economy. We have the index up by a 10th of 1 . We had china coming out saying and lowering it was rate. Easing measures by the pboc. The prime rate is getting cut by 20 points. Down. Kkei 225 a bull market. Blue chips are down. In tokyoections reaching a record. Abe extending the emergency. Trend. G seng bucking the oil is front and center. A whopping 15 right now. We have oil under pressure. Its weakest month on record. Demand is dwindling. Storage space running out. Projects are getting canceled. India futures currently down. We are counting down to the open. Thanks and focus. On the year, stocks are still down 17 . Singapores covid19 cases have risen sixfold since the start of the month due to outbreak in crowded Migrant Worker dormitories. Our next guest has developed a new kit that allows virus samples to be transported to the lab at room temperature. He is the ceo and medical director. Good to have you with us. Give us a sense of what this is about. How does this ensure greater accuracy in testing . Good morning. Thank you for the introduction. The goal of better testing is based on the principle that a great test is not anything without a good sample. The test is, great sampling is key. They are accessible and widespread. They allow for mass testing in the clinic. A supervised saliva collection could outperform current standards of swabbing. Allowingrucial to broader, more accessible testing. Haslinda what do you make of how singapore has handled efforts to try to contain the spread of the virus . How helpful with this testing before singapore . Definitely singapore has a wonderful response to the issue. Brought and accessible testing key to that. There will be Vulnerable People everywhere in the region. Good testing will be key all over the world. Rishaad with all of these different tests, we have Different Levels of efficacy. What is the biggest challenge when it comes to testing . There are several bottlenecks. Frontlinehe bottleneck in terms of sample collection. There is the issue of transporting chilled samples. And testing capacities. These are all well known across the world. That is beinging scaled up everywhere. There is a lot of attention on this. Saliva testing seems to be the way forward for now. Is that your view . Saliva testing is definitely something being evaluated. There are early adopters in terms of hong kong. This is where many governments will look very closely at this. How much is testing an obstacle to containing covid19 . Testing is the key to of theying the extent current outbreak. It would allow for assessment of the scale and scope. Tohink it will be a key allowing us to understand how the outbreak is going to be contained and controlled. What do you make of the Health Care Infrastructure . O respond to covid19 it is something with a lot of attention being paid to it. That will be the big question for the next few months. It will be a battle between a vaccine and treatment. There are many unpredictable elements of the future. But the company is focused on is the vulnerable. The patients who are being seen for testing. We recognize that the elderly are most prone to infection. Are working with the shanghai telemedicine network. It is the Largest Company in china to help the elderly. We are delivering our services and collaborating with asias Largest Health care network. Go,inda before we let you you are a Cancer Screening company. You raise 20 million in november in funding. Any other plans to raise funds as you expand . That is always a consideration. But not the most urgent one right now. Right now our goal is to make sure communities have access to the best possible testing and surveillance. Uniquelye are positioned to help. Rishaad thank you very much. A quick look at headlines coming out of china. What to do about new infrastructure. They will be unveiling guidance on this. Looking at investment areas to take on consumption. It has dropped off the cliff as far as the chinese economy has gone. The ministry of finance thanks china will be selling another 2 trillion yuan of special bonds. And they will be doing that in the near term. To shore up that economy. It contracted by 6. 8 . Worse than anticipated. We are also addressing what is going on with chinese ecommerce. Astrategic partnership with appliance retailer. We will hear more about the deal. This is bloomberg. Rishaad we have been covering this story about the oil trade in singapore. Hiding losses. Lands to make a claim against that company. All coming amid a plunge in oil prices. Charges. Nk filing that is according to singapores accounting and regulatory authority. To this platform. The vp of strategy brings us now from beijing. Tell us about it. Hello. This over the weekend. We are seeking collaboration. We think this is a winwin partnership. In the category of Home Appliances and consumer electronics. Looking at how we develop new Business Models online and offline. It is bringing a lot of value to our ecosystem. Sense, it is broad a road that both alibaba and tencent have been down. They have invested billions. We dont think that is the case. Chinese ecommerce is still a very fastgrowing industry. We have managed to accumulate billions of dollars of transactions. Amount oftill a vast consumer interest. There are further efforts in this area to bring experiences to our users. It is very important for consumers to have access to offline delivery. This is not something that people can deliver. Have they important to ability to create trust on our ecommerce platform and the consumers. Given the innovation we have been doing on this model, we see the partnership is moving forward. You talked about how this is the first such investment. Are we expecting more . Do you see the need to raise funds for it . Of march, we raised money. Moneyended to raise the for over 6 billion u. S. Dollars. We are looking to deploy that capital strategically in the second half. Our strategy remains user centric. This will accrue to our user experience. Haslinda before we let you go, just a quick question. There was little evidence of covid19 impacting business. Can you give us an update on that . What we have seen as a strong recovery. We have shipped over 1. 5 billion parcels. This is on top of our momentum in december. We will continue to see strong demand. This will help with some of the chinese exporters. Haslinda thank you for your time today. Come, indian and equity markets got a boost. Can the rally continue . We will check in on what to expect from todays trade. Haslinda lets do a quick check of the latest headlines. Of bank ofn unit china is providing 22 boeing planes to United Airlines and placing them back. Aseamlinerssix the airline seeks to reduce outgoing. The deal is expected to close by the end of the year. No financial details have been released. When resorts is calling for parts of the nevada economy to reopen. Any reopening may have to stop if there is a spike in cases. Wynn says it would impose reduced occupancy measures as well as physical distancing and temperature checks. Just under an hour to go until the session in india. We get a preview. What are the latest steps . What are we expecting . They will do whatever it takes to support the economy. They are discouraging banks from storing their cash. They are providing financing to the banks. It led to a rally. To are now expected Interest Rates further. We have also had earnings from indias second largest lender. What to they tell us about the impact of the pandemic . That Bank Net Income rose. After a nationwide lockdown. No wonder analysts remain bullish on the bank. Despite the optimism, markets are very questionable on the Financial Sector overall. Well for theoding Banking Sector moving forward. Rishaad we also have infosys out with numbers. What are we looking at their there . It is a big day for emphasis. The demand for services around the world. We have seen so many employees working from home. This reflects the uncertainty in the global markets. We are expecting Profit Margins to hold steady. Rishaad thank you very much. Come, including a full update on this oil pricing scheme. Oil at the lowest price this century. Haslinda it is almost 11 00 in the lion city. Rishaad this is a look at our top stories. President turning on china. Questioning if the coronavirus was deliberately released. Beijing saying it is a miserable attempt to shirk responsibility. The opecplus out put is curved. Questions about top Singapore Oil trader. Could there be a much bigger hole in the countries companys finances . All of its claims of a coverup. Looking at the markets, asia falling along with u. S. Futures. Concerns about the week ahead. Earnings from ibm, infosys, china mobile. A feis fresh crash in oil prices. Chinese banks today lower
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