Few smiles and the magic kingdom. Disney suffers a coronavirus hit with seem parks shot, movie theaters closed, and sports on hold. Shery a quick check of the market. This after u. S. Stocks gained ground for a second day in the regular session. We have sentiment being boosted as more economies move towards easing lockdowns. Still, in the last hour of trading, there were some cautionary comments on said officials that cut gains in half. New zealand stock scanning. 8 . This would be a Third Session of gains. Therir rate. Rate. Ir we have the rba leave rates unchanged. We are looking forward to retail Sales Numbers very soon and we will see how all of that toilet paper hoarding that we saw in march is reflected in the numbers. Not Much Movement for the japanese at the moment. Tosident trump continues push the theory that the coronavirus originated and escaped from a lab inside wuhan but sources within the u. S. Intelligence Community Say the intelligence is less than definitive. That as he pressed for the reopening of the economy. Pres. Trump the people are not going to accept it. They will not accept it. And they should not accept it. We have a great country. We cannot keep it closed. I have had doctors say why dont close it for a couple of years . This is the United States of america. While some people be affected . Yes. Will somebody will some people be affected . Yes, but we have to get it open soon. Shery Emily Wilkins joins us from washington, d. C. Conflictingeen some messages coming from the intelligence agency. What are we seeing . Emily there have been conflicting messages. You are absolutely right. U. S. You talk about the intelligence agencies, you are not just talking about one agency. You are talking about a number of them. We have been seeing most of them say that this theory that the virus began in labs in china is not accurate. Ofhas not gotten their stamp approval for accuracy on it, and yet, you are seeing the Trump Administration in the Trump Administration, including mike pompeo, come out and say it did originate in a lab and blaming china for this outbreak and for the virus itself. We are just getting some breaking news when it comes to reportingrseas bank and impairment charge of 286 seeing dollars. That is slightly better than expectations of 790, 2 million singapore dollars as well as net interest. 782 million singapore dollars as well as net interest. We will get more analysis in just a moment, but in terms of mike pompeo taking a more vocal role in all of this, and certainly, he has become more of a target in tiny state media within those socalled Chinese State media as the person they are focusing on. Emily we have seen Chinese State media really try to use the american response to the coronaVirus Outbreak to their own advantage when communicating with their citizens and trying to paint the u. S. As not doing as good of a job as china did when handling the virus. They denounced pompeo, his remarks. For most of the Trump Administration, china has avoided criticizing trump himself, but with some of these remarks you have seen from trump recently, it seems that they are beginning to get a build of frustration at what trump is implying and sort of seeing this as his own trying to paint this as his own bungled response to what the u. S. Has gone through. Shery right now, we are hearing the Trump Administration is extending its deadline to return those ppp loans. Emily, what else have we heard about another phase for stimulus measures coming from the United States . Emily we are expecting to see more money perhaps go to the ppp. We might as well see another stimulus check that might come out for americans. Remember, every american, a little more than 1000 depending on your income range. That was meant to stimulate the economy. We are also seeing discussions of testing, of research, as well as some things that may be people dont initially think about when it comes to the coronavirus but are still very important. Things like how are we going to wind up building in november . Students need to be home from school and they need to access the school via the internet. What happens to be parts of the country where there is no Broadband Access . They are putting a lot of things into this upcoming bill. They are going to hit some resistance from republicans who are concerned that spending levels have been very, very high, are worried about the debt, the deficit, and want to begin to put things back, watch their spending a little more closely. We will be seeing how that plays out in the next several weeks. Our congressional government reporter, Emily Wilkins, with the latest. Lets get you a recap of the earnings lines crossing the bloomberg. First quarter impairment charge of 286 Million Dollars versus 93 million singapore versus a year earlier. Loans to oil and gas sector at 10. 2 billion since march 31. Downside to the oil and energy and gas sector is particularly prominent when it comes to the singaporean banks. First quarter number nonperforming loans ratio, 1. 6 , a bit of a jump from 1. 5 year on year. Loan loss provisions are likely to be pushed out for all of the singaporean lenders. At 855me coming in million, slightly better than the 792 million seeing dollar expectations. Exp ing dollar singaporean dollar expectations. Thats get to Karina Mitchell for the first word headlines. Karina the u. K. Has become the most seriously affected country in europe as virus the deaths surpass those of italy was almost 30,000 confirmed fatalities. It adds more pressure on the johnson government with critics saying it has been slow to respond to the pandemic. The Prime Minister ordered a lockdown much later than other European Countries and was slow to begin testing in the early stages of the outbreak. The European Central bank is weighing a German Court Ruling that casts doubt on whether the Asset Purchase Program is in line with e. U. Law. The bank has three months to respond. It will not stop the Program Immediately and will not stop a plan to combat the pandemic fallout. However, it does raise questions over how far the ecb can push its monetary stimulus. Malaysia cut its key rate by 50 basis points, the most since 2009. Rate byshed the 2 , saying the outlook looks gloomy. Indonesian with the weakest showing since 2001. And even have toll is expected in the coming months. A new report says indias virus lockdown saw the loss of more than 120 million jobs last month. Meanwhile, hong kong is inching back to normal with plans to gradually loosen curbs on social activity as the virus takes an even deeper toll on the economy there. Retail sales plummeted further in march as visitors from china stayed away. Values are slumped 42 from a year earlier while by volume, they fell almost 44 . Two straight months of such severe declines is unprecedented. 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. Shery. Shery still ahead, no magic for disney. 1. 4 billionith dollars in costs amid the coronavirus. We break down the results with mediatech. Jp morgan says it expects the stock to fall after reaching their targets last week. We get the Market Outlook from Global Market strategist carrie craig. This is bloomberg. Economies moved to consider easing lockdown restrictions around the world. The discrepancy between market behavior and economic reality remains. Muddy waters told bloomberg he things stocks will slump again and current valuations do not make sense so lets get some further analysis from jp morgan Asset Managements kerry craig. Is difficult to look at pricing and valuations and what is a sensible approach at the moment given that guidance, you know come out of the companies, is not terribly useful. And the outlook remains so murky. Kerry good morning. That is correct. I think that is the case that there is a quick question about how stale these earnings are. We are looking forward. That is the most important thing that equityts markets are forwardlooking. They might be looking to the resumption in collectivity, the strength around social distancing being used, data points to the contraction we have has and that explains the discrepancy for me that markets are seeing. Manufacturing numbers have come out, and business surveys are taking this as the low. In economice low activity. The Second Quarter, we might see things recover from here, and that is the view of the equity markets. We cannot get around the fact that markets have rallied very hard off the lows of march. And the consequence of that is the valuations have gone up. It is a little bit more difficult to look at the market and the uncertainties around whether the reopening of the economies will successfully go as planned, as governments pursue this policy of test and try to see if we get another spike in viral cases, that the earnings expectation will actually be looked up to. Haidi particularly as you get kind of the rising likelihood that we will see another round of this trade war, and certainly a diplomatic war between the u. S. And china. I am wondering, if you look at australia and new zealand, and talk about this reopening, does that mean australian assets are looking, if not cheap, but certainly more safe . That seems to be the case that the economies or markets we have seen control of the virus or at least an earlier starting of Economic Activity others have had more favorable treatment and that is particularly showing up when we look at the australian currency more than anything else. The equity market, it is more a case of the structure of the market. And in that case, because the tech sector is relatively smaller here compared to the u. S. , which is holding back some of the equity performance. It definitely is showing up in terms of the outlook for Economic Growth being reflected in the currency and the ability to trade and perhaps travel between new zealand and australia. That would be good for business and the economy. Thinking about the outlook for china, the growth there, and australia is a very open economy in terms of how it works. Any consequences around resumption of global trade would be as negative and potentially offset some of that positive news around the viral spread being contained political factor in australia given that we are now hearing from Prime Minister morrison that he is saying that the European Union will be the one who called for an independent probe in the coronaVirus Outbreak in china, but of course, we have already seen this war of words between china and australia . Kerry yeah, it is a delicate situation. A huge influx of tourism, education, students coming in to australia, capital flows. It is a delicate balancing act for a politician to try to manage in terms of there is this sort of rise in xenophobic attitude towards china thanks to the virus in many economies around the world. We will push ahead with china and clarify those answers. To me, the rise of that Political Risk is something that is really unnecessary at the moment given the fragile state of many economies. There are larger questions around how corporate behavior and consumption or Consumer Behavior will change on the back of this. The oillike we saw with price war between saudi and russia, a lot of these things can be mistimed and do more damage than perhaps they initially thought. Shery when it comes to some themes and sectors, we have of course seen a lot of focus on the faangs and the big tech giants. We have heard this sector is overvalued. I wonder if it is worth playing into it just because a postpandemic world could really play into their strengths. Kerry i think particularly in the case of technology, the cyclical themes versus the secular ones, it has plane through for a number of years now and probably will continue to do so. For me, there is the take away businessis which is resiliency and thinking about the companies that have the Balance Sheets with the larger stability to capitalize on this crisis. Afterwards, and think about perhaps consolidations in some sectors that may happen on the back of that. It is thinking about who will be the biggest beneficiary afterwards and coming back to that behavior around consumption and corporates that does seem like tech is a very obvious one. You will see that in other sectors as well. Privateting transport attitudes towards travel. You might see it elsewhere in terms of thinking about how Companies Operate in terms of real estate. Greater work from home policy to control cost, downsizing office space. That may play through on the back of this which may be more telling. In the near term, it is still the case that being relative defensive in positioning when it comes to equities, and that does with growthier stocks longterm characteristics in them given the uncertainties around the Economic Outlook for now. Youy kerry craig, thank very much, as always, j. P. Morgan Asset Management. Coming up, our guest talks about an extraordinary shock. He tells us the short and longterm impact of the pandemic in an exclusive interview. This is bloomberg. Billionaire investor sam zell says the Global Economy and nearly everyone will be permanently scarred from the coronavirus pandemic. The chairman and founder spoke to Bloomberg Erik schatzker about the short and longterm effects of the crisis. Despite the fact that we have been in lockdown for six weeks to seven weeks, there is very littleactivity, very transactional activity, very little opportunity to do anything. Is in kind ofody a, you know, dear in the headlights kind of stature at deer in headlights kind of stature at the moment, and at least so far, just sitting here, watching, and we are not seeing anything happen. Erik why do you think that is . Is it because prices are not low enough yet . Sam oh, i think that rather ian referring to this crisis, think that theres been very for priceortunity discovery. Sellers is that those that wanted to sell dont remember the prices that were available seven or eight weeks ago. The buyers are looking at a very different world. And they are expecting to see significant discounts from where we were seven weeks ago, and when you have got that big a spread, nothing happens, and i think that is an accurate description. Erik what about you . What do you need to see before you feel motivated, inclined, even excited about putting capital to work . Sam i think we are all faced with an extraordinary level of uncertainty. Uncertainty on how the reopening will go. Uncertainty as to when the reopening will happen. Uncertain about how people will respond, how soon will anybody get on an airplane, how soon will anybody stay in a hotel, how soon will anybody go to a mall . The fact that these places may be open does not necessarily mean that they will be doing business. And so, i think that that level of uncertainty, rather than people taking action, i think everybody is sitting on the sidelines, waiting for more clarification. Erik what do you think is the greatest misconception many people are under right now, as they look into this uncertain future . Sam i think that too many anticipating a kind of vlike recovery, you know . That we have been through this terrible period, the period is going to end, that virus numbers are going to go down, and the world is going to go back to normal. Us willink that all of be living, you know, in isolated form in one form or another. I have not taken in anybody in eight weeks. I have no frame of reference for that. That has never been the case before. Seen ournow, we have whole lives changed, and i think your ability or your likelihood of forgetting that is going to take a long time. Spanish whos is failed to learn from history is doomed to repeat it. We have a lot of history that we will be learning about and remembering, and it is going to affect everything we do, and answered you by saying i think it is going to take quite a while. And then, it is not going to be return back to where we were. Erik my grandparents were permanently scarred by their experience in the great depression. You are old enough to have known a lot about that generation. Do you think this is going to be Something Like that . Sam yup. As a matter of fact, it is really funny that you should say that, because the way i have described it to the people is i said, you know, i grew up i was in high school in the 1950s, and even in the 1950s, you know, which was 20 years after the end of world war ii, there were 25 years after the depression, there were still friends of mine who talked about the depression and talked about the impact on their family. Permanently scarred is exactly the right word. I think there is very little doubt that we are all going to be permanently scarred by having lived through this pandemic. That was billionaire investor sam zell speaking with erik schatzker. Lets get you a quick check of the latest business flash headlines. Capital ones staff will work from home until at least after the labor day holiday, said in what could be a benchmark for the financial industrys return. Richard fairbank has promised staff they will be given at least six weeks notice before any decision to reopen workplaces. Capital one has three quarters of its workforce, around 40,000 people, doin