Major peers. Cofounder sewing softbank for reneging on a 3 billion deal. Shery take a look at how markets are trading at the moment. We are seeing upside for u. S. Futures, kind of flat right now, paring back some of those earlier gains that were already adding to the rally we saw late in the session in the u. S. But paring back some of those gains. Kiwi stocks gaining for a second session. Sydney futures higher by. 3 percent. As we head towards the rba Monetary Policy decision, not much change expected there although we are hearing from the treasurer that we could see a deep contraction this quarter. We are seeing crude gaining ground, extending gains above 21 a barrel as we see u. S. Build now slowing. The push to reopen state economies is clouding efforts to predict the official told from the coronavirus p he has ramped up his death production. Coronavirus. He has ramped up his death projections. Greg sullivan joins us now. President trump still pushing for the reopening of some states. The are seeing a few states really accelerating those moves, and yet the projections for coronavirus cases and deaths, not anymore optimistic. Greg thats right. Growingections are not anymore optimistic and President Trump, as you said, did acknowledge that over the weekend, saying it would deaths would likely reach 100,000, which is higher than he has been saying recently. The focus for the president seems to be Economic Impact from the social distancing and stayathome orders. He is still pressing for state reopen, going so far as to say they are not reopening fast enough. Cases continue to rise in the u. S. Today, even though that rise was lower than the average daily increase over the past week. But still, President Trump focused on trying to get states to reopen. This is not really a new change. We have seen the president before focused on the Economic Impact, but it does not look like he is changing his course even admitted the projections saying likely that the impact will still be greater than he had hoped for. Haidi in the meantime, this sort of war of words is spilling over potentially into the next round of the trade war with china. Greg thats right. Trump does also seem to be trying to shift blame to china for the pandemic. Earlier, we heard him blame both the World Health Organization and china for not releasing data but lately we have heard rumors from within his administration saying that potentially this virus could have come from a lab that he has seen evidence suggesting that, and just today, we have a member of the National Security council advising the president , the deputy National Security adviser, giving a speech in chinese which warned the chinese they could face a potential populist backlash over some of the ways they have handled the virus outbreak. That of course seriously risks stoking tensions with beijing. Already, things are a bit more tense than they were before. Half a year ago, we had this trade deal that President Trump had negotiated, was sounding an optimistic note, and all of a sudden, we have a very tense relationship between washington and beijing, not least of which because of the virus and the way in which we handled this. Shery we heard democrats floating more than 1 trillion in additional spending. What are we seeing in congress in terms of negotiations and where that is going . Greg as of right now, negotiations are continuing. We do believe that the key players are still discussing what could happen. Democrats have obviously laid out their demands. Republicans have drawn a line in the sand over a certain issue my betty protections Liability Protection for companies. The senate is expected to be in session this week but considering nominations, and nothing as far as the fiscal stimulus bill. Negotiations continue. When that happens remains to be seen. Greg sullivan they are the latest. Lets get you caught uptodate with the first word headlines. Karina mitchell in new york. Toina nations are starting ease restrictions with small shops reopening in spain as virus cases declined there. Social distancing measures remain in place with commuters told to wear face masks. Italy is coming back to normal with trains running again. Restaurants and cafes can work again although only in takeaway mode. Will asia is edging back to inmal with traffic flowing kuala lumpur and trains running again after seven weeks of restrictions. Indonesia reports its newest tourist numbers for a decade. Arrivals plunged two thirds in march with travelers and down 96 . Hong kong is aiming to reopen movie theaters and jams this week as restrictions continued gyms as restrictions continued to ease. The philippines saying it will remain prudent in its support for the economy. The governor says benign inflation offers greater room for easing although the normal waiting. G means it is they lowered the benchmark rate in an unscheduled move. Australia expects the coronavirus hit to drop gdp by 10 in the current quarter, wiping the equivalent of 32 billion u. S. Dollars from the economy. The treasurer says indicators are going to be considerably worse before improving and retail and hospitality will be hardest hit. The treasury warning it is a further sign that australia is heading to the first recession since 1991. 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. Share a. Shary. Shery malaysia highlights a busy economic docket. Joins us toa discuss. Renewed u. S. China tensions may be another reason to sell emerging markets. He argues now is the time to buy. This is bloomberg. Haidi optimism slowly returns. Investors are looking for the best bargains and they could settle on ems. Using some measurements, emerging market stocks are trading on historic lows. Our next guest says now is the time to act and fill up on cheap equities. Joining us now is ben inker. Great to have you. History in terms of this time of year is firmly against emerging markets, but you look at the rest of Global Equities developed and valuations are not exactly cheap. Is there opportunity here to selectively go into e. M. s . Ben there really is. Theres a lot of cheap stocks in emerging markets. Theres kind of something for everybody who is willing to take a little bit of risk. If you are interested in cheap stocks, it is hard to go anywhere else. Theres a couple of potential risk factors here. A potential revival of the trade war with President Trump threatening potentially new tariffs on china as a result of what he sees as a mishandling or cover up of the virus situation. That would translate into a weakening of the yuan which has been acting as an anchor for em assets. In addition to a slew of terrible pmis we have had from recently, does that create greater volatility in that class . Ben it is always possible. You never know exactly what is andg to happen with e. M. There will be plenty of bad news to come in the emerging world. Of the worst midst Global Economic circumstances since the great depression, and there would be plenty of bad news. In our view, the thing that is exciting about emerging is not that bad news is not going to happen. Bad news will happen. Stocks in e. M. General are priced for absolutely horrendous news. Bad news we think has every chance of coming out. Shery e. M. s is such a wide and broad category. Where within emerging markets do you find the best value . About whatf this is risks you are prepared to take, so if you look at a market like, say, russia right now, the russian market overall looks really cheap. Russia is suffering from the collapse of the oil price, from the fact that their Public Health system is not well prepared to handle the coronavirus. Theres plenty of things to be worried about but you have got really very cheap valuations. Now, if you are looking for economies that are somewhat better protected against the coronavirus, because their Health System and government kind of have a pretty good playbook, look at east asia. You can find plenty of cheap stocks in taiwan, in korea, in china, and these are places where if you are really scared about the covid risk, these places have shown they have a pretty good playbook. On the others out of the world, again, there has been no windows bad news in brazil. The stock market is down 50 . And that pays for a lot of bad news. Incan find cheap stocks almost every country in the emerging world and there are some overall countries that we think, even given the considerable risks there, are just pricing and utterly disastrous scenarios, which we think the world is probably going to turn out less disastrous than that. Shery other than value, do you also take into account sectors . Even within these emerging economies, what we keep hearing is the same narrative that demographics are very theortive, that in china, consumption story is still strong. [no audio] shery hi, ben . It seems we have lost ben. Ben sorry. Shery did you get my last question, which was about potentially sectors that could look more attractive within emerging markets . Uh, so, to our mind, theres plenty to do in most sectors of emerging. Obviously, some of them are very cheap valuations. If you look at the energy or materials sector, theres a lot of cheap stuff there. But as you point out, demographically, a lot of these countries are in a zone where domestic demand should be expected to grow reasonably rapidly over the next five to 10 years, and you can find quite decently priced Consumer Staples and Consumer Discretionary stocks really all over. You know, we are running diversified portfolios right now stocks there are so many worth owning and theres no need to take high amounts of stock specific risk. But we are finding stuff to do across the sector. If you want the very cheapest ,ectors, its the more cyclical and in particular, energy and materials, as well as financials, but theres there are cheap stocks across just about everywhere. You veryn inker, thank much for joining us, gmo of asset allocation. Texas Railroad Commissioner says a proposal to limit oil output in the state will fail. The threemember agency was due to vote on curtailing supplies in a process known as pro rationing. He told bloomberg the organization is still not ready to act. At this point, it looks like the market is beginning the market is bottoming out. Texas producers are shutting in. Frankly, we have missed our opportunity to lead on this. At this point, we are not going to prorate tomorrow. Are you going to prorate tomorrow. I know the commissioner i read his oped in the Houston Chronicle and he was firmly against the idea that this process should be managed. Are you going to support this proposal or are you going to side with him . Ryan i dont even think we are going to take a vote tomorrow. We will see how the other two commissioners want to move. The political process has slowed this down. We have not done any calculations about how it could positively affect economics. It has been a political discussion. At this point, we are still not is tooo act, so, it late. There is no proposal to make. I think proration is now dead. How much industry pressure was there . Exxon said it should be less to market forces. Pioneer not at all in agreement. It splintered off from the groups, the industry groups. How much did the large players impact your reworking of your position . Ryan my position has not changed any. If you go back in time for weeks to six weeks ago, we should have been taking action. We should have been proactive. We should have led. If so, you would see much less industry destruction in the United States, but at this point, the major players, the political organizations, really slowed the process down so much that we missed our opportunity. It was not that my position has changed, it is just that we got too far along. We got to a point where we could no longer make a difference. So it has changed effectively then. If that is the case, if it is too late to do the right thing, which of course, it never is, how do you anticipate this will work itself out and what will happen to states like oklahoma who are taking up this question in a weeks time, and other states . Ryan most of them, they may pick some action, but its probably not going to have a major market move at this point. And you say it is never too late to do the right thing. It is interesting. I think in this case, the right thing eight weeks ago is not the same thing as the right thing today. And so, look, if someone said we have a planter prorate proactively a plan to prorate proactively, i would support it, but since we cannot put that together because of the Political Forces around austin, there is no way practically to take action. And so, that is the challenge. In other year or two when demand comes back to 95 Million Barrels a day, the country with the most loss of Oil Production will absolutely be the United States. We will have been the big loser in the global oil business. Guy in terms of taking that thought and working it forwards, do you think that therefore, going forward, given the lesson that will have been learned, if the matter works out in the way to, do youlikely think that texas, do you think the United States, needs to become utter at being organized and managing its output better at being organized and managing its output . Ryan its about how to support our key industries, our most vital infrastructure in the middle of a crisis like this pandemic. The oil industry has been very successful in the United States for the last 15 years, and the government, from a management perspective, not a regulatory perspective, but from a management perspective, has been fairly laissezfaire, that the industry take care of itself. In this complete meltdown of our global economy, you cannot take zero support for the oil business, otherwise, we are going to lose out. I think there needs to be much more thought given to how we use data, and understand impacts to market is to protect such a vital piece of our economy. Haidi that was the texas Railroad Commissioner, ryan sitton speaking to us. Plenty more to come on daybreak asia. This is bloomberg. Haidi researchers continue to debate just how fast the Coronavirus Vaccine may be available. Japans takeda says President Trumps plan that one will be ready by yearend is extremely ambitious, but the president of the global vaccine business is not ruling out the possibility. But it isossible, going to be extraordinarily ambitious and challenging. President trump is right that it typically takes many, many years to produce a vaccine. I would say that for many vaccines, it taken 10 to 15 years or longer, so to compress that to the stated 12 months to and of itself in extraordinary, but to set a target to having meaningful quantities of vaccine by the end of this calendar year is really, really, extremely ambitious. I dont think anybody can guarantee that this will happen, but what i can say is that the industry is doing its very best as well as the regulatory authorities and the scientific community, to make that happen. Toi know takeda is looking try to develop some kind of vaccine, may be in partnership with others as well. You have a plasma business that you are going to direct towards covid19 treatment. So explain to us why you would do that given that theres so many different efforts at vaccines out there, and they are not at all guaranteed to make money for the company that does find one. Rajeev thats right. This is the reason that we decided not to start our own vaccine developing program. There are over 100 companies, as we understand it, and entities, that have announced Vaccine Development programs, so we felt that our role is best to partner with one of these companies that have shown that there vaccine is safe and works and that bring the manufacturing of that vaccine into our japan manufacturing facility, where we have a lot of experience in making vaccines for the japanese population, and so, we would like to do that both for japan as well as companies outside of japan. That is our vaccine effort. On plasma, it is a very different story because we are one of the largest plasma product manufacturers in the world, and what we decided to do early on is to take this capability to produce a plasma formulation that has very high antibodies against the sars cov 2 virus. What we are effectively trying to do is give people who have covid illness access to the antibodies that their bodies will not develop for two weeks or longer, so it is essentially taking a loan on those antibodies so you can use them to treat the illness today in hopes that it will be less severe, not last as long, and ultimately, that he will go through it more quickly. This is still in development. We hope we will have the necessary data to show efficacy and supplies on an ambitious timeline by the end of this calendar year. How sustainable is that, given the fact that it relies on people with the antibody effectively to harvest those from them, then concentrate them in a sufficient dosage that you can then give people that have it that are going to be affected . On what kind of scale can this be done . Rajeev great question, guy. This is critically dependent on having access to enough people that have recovered successfully from covid illness and are willing to donate plasma, so you need to have large numbers of people donating in order to treat large numbers of patients. The unfortunate circumstance with the pandemic is that every day, more and more people are getting infected, so the pool of potential donors is expanding. Now, it is a matter of letting those people who have recovered know that they have an opportunity to help other people by donating their plasma to this process, and i think i would be remiss if i did not mention what tom hanks said just a few days ago after he donated his plasma to help others. He said it was as easy as taking a nap, and if you can take a