Hotspot while infections in india rise at the fastest pace in asia. Zealandsnks new postvirus recovery. We are joined this hour by the rbnz governor, adrian or. Orr. Haidi lets take a quick look at markets. We saw that exuberance over the Moderna Vaccine progress really dissipate quickly. We saw the late session swing when it comes to trading in the u. S. As it has concerns over the efficacy data from moderna causing some concern. Take a look at the futures in asia. We are seeing downside when it comes to futures trading in japan, australia, and hong kong, although we are looking at a little bit more of a positive open when it comes to trading on the mainland, and just also keeping an eye when it comes to Energy Markets as well given that we are starting to see backwardation between that june and july contract for the wti, suggesting some of the storage issues have started to ease. Lets take a deeper look at the markets. Investors are increasingly debating whether the broader stock market has become disconnected from the fundamentals. If we look closer, the sectors can tell a different story but the view from the president of pence Wealth Management joins us now on the line. Great to happy with us. We continue to see the volatility in the markets, especially when it comes to any sort of headlines related to a vaccine or a drug for the coronavirus pandemic. We are seeing this rally in the markets but also very narrow rally. What is that telling us about who investors are rewarding during this very challenging economic time . Investors are Rewarding Companies in areas that did not do well when this covid is over, and they are starting any good news. News withhat moderna powells testimony on 50 minutes on the market just took off. Right now, we are at the foundation stage. Shery when it comes to different regions around the world, as we continue to see china really start to stabilize and coming out of this pandemic first, is this where investors should look for opportunities as we continue to see uncertainty in other parts of the world . Laila absolutely. We think china is definitely a head of the United States. They are 45 days ahead of us and theres a lot more opportunities opening up. Apple opened their stores. Nike is opening. Shanghai china shanghai, disney, opening slowly. It is ahead of the United States and the world and theres a lot of opportunities there. You talk about some of those names like disney that are starting to see a reopening even at its resorts in the u. S. , slowly but surely, the return to normal, so is that really an indication that we should start looking at the value opportunities within these big travel and leisure names that do have the solid Balance Sheets that may take a year or two to recover . Laila absolutely, especially disney. They are really learning a lesson to open up. They are learning that in china. It is a great model to reopening ,lorida and potentially france and certainly, here in california. T is a great model for them they have always been able to really learn quickly and adapt quickly. Is whatve that happened here as well. They have 54 million disney plus subscribers, and that is four years ahead of what they are estimating so they have a lot going for them, and it is a bargain at 25 below the high. In terms of the lockdown darlings, if you will, the work from home related stocks, tech, gaming, netflix, for example, how many of these or do you think are still looking like good values once you get to the other side of this . A lot of these were really good values before. You really have to look at, you know, are they going to continue to are people going to continue to want to watch netflix . That is a phenomenon that will continue because of their programming. You have to be looking company by company to see which ones will have sustained demand, and those are the ones that you want to continue on and they have a long ways to go. , thank youa pence very much for your time today. That was the president of pence Wealth Management. We have an alert on the bloomberg. We are getting the fourthquarter results for lenovo. Their revenue for the Fourth Quarter came in at 10. 58 billion dollars. Fourthquarter gross margins, 17. 6 of their fullyear final dividend per share. 21. 50 hong kong cents. The First Quarter revenue was slightly higher than what was expected. The expectation was for the low 9 billion, their revenue coming in on top and 10 billion, lenovo shares. Your today, they have been under a little bit of pressure, as you can see, down 16 . Lets get to Karina Mitchell with the first word headlines. Karina global confirmed coronavirus cases are approaching 5 million with fatalities now above 320,000. Brazil is the worlds pandemic hotspot, accounting for 13 of new cases in the past week while infections in india are rising at the fastest pace in asia. Deaths linked to covid19 surpassed 40,000, making it the first country in europe to reach that threshold. And while, Jerome Powell efforts to make him take sides on virus aid, maintaining a neutral stance in the debate over whether congress should add to its record stimulus package. Testified mnuchin remotely to the banking committee. Powell reaffirms that more fiscal help me be needed but he stopped short of a full endorsement. The bank of japan will meet an emergency session on friday as it works to firm up funding for business and the wider economy during the coronavirus. The talks are not expected to deliver any earth shattering policy moves but will flesh out a Lending Program alluded to at the banks previous meeting. The boj aims to show a proactive stance for business and it follows unscheduled meetings at the fed and the ecb. China has taken another swipe at australia over calls for an investigation into the origins of the coronavirus pandemic, having put duties on barley and beef imports. Beijing is threatening to target wine and dairy. China is said to have drawn up a list of seafood, oatmeal, and fruits that could face punitive measures and there are fears the state media may call for a consumer boycott. 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. Haidi. Still ahead, we have our big interview with adrian or. That is coming up in less than half an hours time. Dismisses that, china President Trumps latest accusations against the World Health Organization as futile. We will get the latest from d. C. , next. This is bloomberg. China has made a lot of mistakes, and regarding this virus. Is in a badident space about it. I cannot blame him. The president feels it could have been curtailed or restrained or may stopped earlier, and that has become more important than the trade deal. Was larry kudlow saying the trade deal between washington and beijing remains intact even as President Trump continues his blame game rhetoric against china and the who. Thats bring out Emily Wilkins for more, and emily, we are these renewed threats by President Trump to withdraw altogether the u. S. From the who. Emily absolutely. We have been seeing the tightening of tensions between the u. S. And china. We have seen them in regards to the World Health Organization, in regards to trade. At this point, we really have not seen any concrete action from the u. S. To get out of the trade negotiations with china. Reinforcets today that the u. S. And china shery we have seen already the response from china. They are not happy, saying President Trumps letter is full of insinuations. China definitely spoke out against trumps letter and china also told the World Health Organization that they were planning on donating 2 billion, planning on helping foreign countries. I think this is just another example of the u. S. And china sort of playing politics with the coronavirus and an International Response to it. We are also seeing the president and the republican congressional leaders really counting on the lockdowns being lifted in particular states and sort of expectations of more stimulus. Are we going to glean any more details of what future stimulus packages might look like in the era of a partial reopening . Emily honestly, it might be a while until we get a good sense on what that stimulus will look like. Last week, democrats passed their 3 trillion spending bill. Today, we are hearing from republicans that they are not in any sort of rush at this point to start another one. Republicans want to see the economy start up again and some of them are worried that state governors are going to keep the shutdowns going if they know the federal government is going to continue giving stimulus. At this point, republicans want to wait and see how do states open up, does the economy start getting back on track . To knowublicans want there is stimulus coming for Small Businesses so we are expecting another stimulus package. I would not expect one in the next week. Shery Emily Wilkins. Here at the u. S. Federal reserve, plenty when it comes to stimulating the economy. The boston fed president defending the risky loans being handed out on the Central Banks street Lending Program. Eric rosengrant told us the aim is to save jobs in a weak labor market with the reopening of the u. S. Economy, set to be a slow process. Wonderful news that we are getting to the place where we can Start Talking about reopening but i would highlight that that is only the first step that we need to take. Consumers have to be comfortable actually going to businesses and going to stores, restaurants. Employees have to feel comfortable going on the subway, the train, or a bus. With Community Spread still continuing in massachusetts, i think we are a little ways away from that point. As important as it is to take the first steps to open up businesses or allow businesses to open up, i think we should be cognizant of the fact that many people, particularly older americans, are going to be very leery of going into restaurants, going onto mass transit, or going onto planes, until the Public Health problem is more results. What are ceos of companies in your district and even people who run momandpop stores, telling you about their expectations of business, for the economy, as you reopen . There are they are very much hoping there will be a pickup in the second half of the year. In gdp terms, there will be a pick up. I also think that, unfortunately, the labor markets are still going to be pretty weak, so in the talk i gave today, highlighted that by the end of the year, i expected Unemployment Rates would be in double digits so it will probably be significantly down from where we are right now. He Unemployment Rate was 14. 7 . And any americans that took that survey said they were employed but were not working the week of the survey so the numbers are probably a little closer to 20 and we will see in the next couple months if it still goes up a little bit more. But i think by the end of the year, we are probably talking in the low double digits. That is still a very high Unemployment Rate. What that reflects is the fact that i do not think that many employees are going to go into the cities still having significant problems. I think consumers are still waiting to feel more comfortable before they go into stores and restaurants. One of the other programs that has come into some criticism is the secondary market in Lending Program because they are propping up Zombie Companies that really cannot continue to survive unless they continue to borrow and at some point, we will have a lot more defaults and bankruptcies. Do you see that happening in your district . Eric with the main street program, we are definitely doing somewhat risky lending and that the borrowers are providing financing for borrowers that were in good shape at the end of the year and are now facing difficulties as a result of the pandemic. Currently by design, these are going to be problem loans. We are trying to get the right outcome for employment and if all these businesses end up failing, that would be a Significant Impact on employment. We want to avoid that outcome. That means we are taking a little bit more risk than we normally take in order to try to make sure there is sufficient financing. During the financial crisis and in new england during the 1990 crisis, where it was a credit crunch crisis, one of the problems was borrowers and households could not find financing. We are trying to make sure the lack of financing does not become a problem right now and make sure that what is hopefully temporary spells of unemployment actually stay temporary and people are able to be reemployed but the longer that people are unemployed, the longer businesses have to finance themselves, the more risky it becomes for the economy overall. Many companies have discovered the joys of working from home and maybe the savings of working from home. Do you anticipate any problems in the commercial market . Eric commercial real estate is going to go through a major shift as a result of the pandemic. Office space is one area. There are more warehouses than we needed before. And i do think that some multifamily housing in downtown areas may be more challenged as people rethink whether they want to be downtown or in suburbs. We are in a period where real estate will be going through some pretty dramatic changes. That was the boston fed president , eric rosenkranz. Do not miss our interview with the rbnz governor, if you nor adrian orr. It is at 9 30 a. M. If you are watching in sydney. This is bloomberg. Shery brazil has solidified its unwelcome status as the worlds new coronavirus hotspot with another record day for infection and death. The governments disjointed response is fueling concerns that the worst is yet to come. Lets cross to sao paulo and the office chief. Brazil does not have a Health Minister at this point. How bad is the situation getting there . We have not held a Health Minister for the past few days. We have lost two of them doing the pandemic. The last one being on friday. Left after some disagreements with the president , especially over the use of as a medication to treat coronavirus. We are seeing the numbers just worse. Se and as you said today, we had a record both for new deaths and new confirmed infections over the past 24 hours. We have overtaken the u. K. And we are now way behind russia and the u. S. In terms of cases. In terms of the Economic Impact as well, does the government even have the deep coffers to be able to provide aid, particularly to those that need it the most . As we understand it, theres 15 Million People that live in spaces where things like social distancing is simply not possible. Julia thats right. The pandemic caught brazil the economy was starting to pick back up, but the government, by no means, has a lot of money to just do large stimulus packages for companies and for the poor. There is an emergency aid of up to600 which comes 100 something dollars, 200, being given to the poor. But it is not enough to make up for the fact that people are losing their jobs and Industrial Production is crashing, and all the numbers we have seen out of the economy so far are pretty bad, and that has been one of the big concerns for the government and for a president bolsonaro, his push to get everyone back to work and reopen the economy is rooted in that concern about the size of the crisis that is ahead. Shery he has been pretty dismissive about this pandemic and the impact of the virus. Is he changing his tone now when it comes to the severity of this disease . And what are we seeing in terms of his Political Capital . Even today, he was out and about, saying that his government has the majority in congress. Julia yes. He was just saying that on a live feed. In terms ofhanged saying it has been a while since he has called it a flu. And he has been Wearing Masks in public more often, but he does not acknowledge the size of the pandemic. Mexican leaders and governments elsewhere just backtrack on how bad the disease is. He has focused more on the Economic Impact and, you know, the crisis that will follow and people losing their jobs and not having money to eat. Haidi are investors getting spooked as well . Julia yes. We have seen markets perform underperformed by quite a bit. It is not a great year for emerging markets. Down 30 he currency is this year, by far the worst currency stock, in dollar terms, terms, , and in ais down 30 . It is a mix of the economic crisis, this political turmoil with bolsonaro always creating these controversies. We have lost two Health Ministers plus the Justice Minister during a pandemic, and just the numbers that we are seeing out of brazil in terms of the virus, we had a couple people calling it a burning house, saying it is out of control. It is certainly not looking great for investors. Shery a very grim situation. Julia, thank you so much for joining us. Lets get a quick check of the latest business flash headlines. Sony plans to take his lucrative finance unit private for 3. 7 billion dollars to inject more stability into electronics and ent