Session here. We are seeing korean stocks up, some 4 . This has certainly been a shift in the risk on sentiment we are seeing. The concerns over the waves are being brushed aside. Across assetsg here. When it comes to your bond, we are seeing yield ticking higher. 73 basis points for your u. S. Tenyear. We saw a rise but it is petering off. Did selloff overnight. Take a look at currencies, the dollar dropped will be the key story here. That is living these markets here today. As aen has been steady rock here. Despite the volatility we have seen. That should give some breathing room for the boj. Perhaps they are likely to sit tight when it comes to policy levers but look for hints on what they do with the Corporate Funding program. Youre seeing that dollar is really trickling through here. The taiwanese dollar is blaring green here today. We are up a third of 1 . The korean won strengthening. 7 . Mmb is unchanged. There has been a sense that the feds have the markets back. Letting the Companies Borrow admits to the virus pandemic. Wheres we are expecting the boj as well. The fed announced of program weeks ago. What is different now . It is a big step for the fed if you look at history. The fed never did this before. This is too much like the fed playing favorites, deciding who wins and who loses. Pandemic times need unprecedented staff. Steps. They will buy individual Corporate Bonds tomorrow through the secondary markets. Of course, they are buying individual Corporate Bonds after they bought 5. 5 billion of etfs. This is why it is a step forward. If you want to see what the fed is up to, we can get a little more detail. This fed is made up of all the bonds that make up the market. Approach will come at the current purchases of exchanged rate of funds. There is an index of u. S. Corporate bonds created especially for this facility. White is so important is because investors and probably some cup selling Corporate Bonds are wondering if they might meet the criteria for the bonds that the fed would buy but now they dont have to worry about that using the fed index. It is another step forward in that regard. This is one of nine emergency Lending Program set up in march. They have taken their time to roll some of them out. The mere announcement of this plan helped bowing out. Boeing out. They were looking at the Corporate Bond market. They figured they would not have to pay the issue yet. As soon as this is announced, Corporate Bond yields fell. Financing costs looked better. Listening to his closest advisors its closest advisors. Fed isoteworthy that the opening up the mainstream Lending Program as well. That will help small businesses. They are still moving ahead. They may not raise rates but theyre not holding back when it comes to this kind of facility. Shotough of an adrenaline for market. Perhaps not as much excitement when it comes to the boj. They may also step up support for small and mediumsized businesses at todays meeting as well. What is expected . Are in thehey pandemic fight for their life. They have to get jobs going again. They have to maintain financial stability. A Shopping Mall in tokyo shut down because of the virus. They definitely helped exacerbate a bad economic situation. At the sense of what they are doing. They are not going to change any of the key rates. Any certainly do have economy, we are waiting to see. It does not do better kluth with what they have so far. The Second Quarter of negative growth is expected. That is why people are wondering if they will take emergency Lending Facility. To ¥60 trillion trillion. They could triple it to ¥100 trillion. Other things people are waiting to see, what the governor said about the recent rise. They will that the yield curve steepen a little bit or not, that is something that people are went to see. After jay powell said that he is not even thinking about raising rates, i wonder if governor kuroda will find some equally pithy guidance comment. If anything, theyre waiting to see what happens with the special programs and waiting to see if they have to do more. That was kathleen hays. Ellis get the first word headlines. Now lets get the first word headlines. Quick chinese authorities have locked down the beijing Central District after a spike in the coronavirus. A second wave of infection. People with high risk of contracting covid19 are being banned from leaving beijing. The World Health Organization says the new cluster is coming. Some states are considering pausing plans to reopen post lockdown. Seen 100,000 new infections each day. Day, there are more new cases in the first part of the pandemic. Level infections have passed 8 million. It took more than two months cases toirst 100,000 be reported. For the past two weeks, more than 100,000 new cases have been reported almost every single day. The seventh richest person in china has been involved in a kidnapping plot after an abduction attempt in his home over the weekend. He founded the Home Appliance hent and was rescued after escaped and swim across the lake to raise the alarm. Hes worth around 24 billion. Five people have been arrested and people are continue to discontinue into investigate. Quick still ahead, the u. S. Report protects lgbt rights at work. We have details on that landmark ruling. Fed has affected the mood. How she is working that into her strategy. This is bloomberg. Yvonne asian equities are rising after the fed said it would begin buying individual Corporate Bonds, expanding an emergency Lending Program that has purchased only etfs. This comes after the specific index fell for three Straight Days after a concern of a second wave of the coronavirus. Joining us now is the investment director, Catherine Young yeung. Just when investors were beginning to question the durability of this rally, you see this once again. Does this actually put enough of a backstop for risk assets to go further . Catherine i think investors need to be cognizant of further volatility. There is distance between what we are seeing in wall street versus main street. I think the key drivers over the next six months are the question of the covid curve, the economic recovery, this is all global. Of course, policy response. At a think we are out of the woods even in the post covid19 world that we live in. Yvonne does the Central Bank Liquidity given the amount that we have seen is that enough to keep the momentum going . Catherine back before the actual virus outbreak, the economy was pretty fragile to begin with. Real Growth Drivers remained quite scarce. The economy relied on liquidity for a long time frame. Thatcovid19 situation, shook the economy, shook the market. Tooink we are a little optimistic in terms of Market Performance on the pace of recovery. Investors should anticipate further downgrades. We could have interesting opportunities in the asian region and in particular in china. Credit markets are the best indication of where risk is being priced right now. If you have the fed intervening in these credit markets, that could perhaps distort the price of risk. What are the parts of the market that you think are looking a little too stretched . Where is a place that looks to be an opportunity . If we go back to that policy response driver, we see moving central bankers on the economy. We see the pickup of Economic Activity because of the lockdown. Just looking at china in particular, you see those Ecommerce Health care names really outperform and even during the march time when we were in lockdown, it was almost like china was still gravitating toward those names. It is quite contrarian and quite unpopular but there are some interesting opportunities, especially from the fundamental perspective when we look at the value side of the market. Linda outside of china evaluations look pretty high, even though they have even somewhat. Catherine it is on a casebycase basis. In this kind of market, what is key for us is ensuring that the companies we speak to, given that we are on the significant decline in revenue, how are they positioned . How they how are they going to weather the storms . If they had this Balance Sheet quality, but say they are giving strong management, good execution from the management if they are in an unloved sector, that provides buying opportunity for us. China has talked about this big Infrastructure Spending plan. How do you play that . Catherine there are Certain Companies in the unpopular sectors. Materials, some of the industrial companies, this is not just related to policy response but some of these companies are providing really attractive evident policies. In the world that we live in today were 70 companies are reducing or and their dividends and spending them, some of these companies are backing the trend and going the bucking the otherand going in the way. You mentioned that contrarian call about the value stocks in china. Look aid that they may little stretched now and now you have fears of a second wave. Why are you still looking into the china space . There are argument about firstin and firstout. Because the virus is a bit more understood, there is still a long way to go in terms of our understanding. The containment efforts, the monitoring, the tracking of the people who have it is all a lot more stringent now versus where we were at the start of the year. Biguse we have seen this flurry, the Ecommerce Health care names, other parts of the market, there is distortion there. People are not even looking at them. Still down days, you can add to those names. Yvonne it seems like youre still adding names in china but what about india . Fidelity has cut their position in that market. What do you see there . Catherine when we look at india versus china and those three drivers, there are still a lot of cases coming in through india. The indian regulators dont have that same kind of talk that the policy makers have. You know how china is back in the trend. Seen different types of support but we havent seen as aggressive policies for other Central Banks around the world. Has is why china still tourism that india might not have. We will be taking some money off the table. Those three drivers, they dont look attractive in india at this point in time. Cheap china is looking in relative terms. He for your insights today. Still to come, beijing races to control the new covid19 outbreak as cases linked to leading markets. We will have the latest, this is bloomberg. China is bringing back some of the extreme measures that help fight the first wave of covid19. Beijing is said to be banning residents with high virus risks from leaving the city and it is compounds indown the district. John. Bring in one of the latest containment measures . What of the latest containment measures . With thisdifference third market that has been closed is that it was in central beijing. The others were on the outskirts of the city. It highlights the risk of how quickly the virus is able to spread throughout the city. Markets were wholesale markets. There is this natural. Istribution yvonne im sure it will be hard to find sam anywhere in beijing after the link to one of those markets. Do we have any indications of whether this virus can be transmitted through frozen food now . John that is the worry. We have not seen any conclusive evidence to say that is where the virus came from but they virus on as of the forping block that was used imported salmon. As of right now, it is causing this concern. There is a little bit of worry there. Haslinda has there been any reaction about the who . Is there concern about this possible second wave in china . The who has expressed concern. Many ways, the cost of shutting down will be tremendous, the impacts, there are people that come in and out of beijing. People whot allowing are high risk to leave beijing at the moment. Is a real risk that it could spread to the quickly across the country. Yvonne that was done with the update on what has been going on in beijing. J. P. Morgan will return more stepped with manhattan trading floors. Will begin formally reopening offices post lockdown. The company will start bringing workers back in waves to the madison avenue tower. J. P. Morgan will start with 20 of staff and build to 50 in the middle of next month. Other parts of the business will follow later. Boredom has been great for game makers. Of thepany that owns two biggest hit has fortnite and the networking app house party. They are close to raising 750 million and giving it a value of about 17 billion. New investors come in while existing partners will also participate. Chinas Largest Online classified business has agreed to be taken private with evaluation of around 8. 7 billion. It is listed in the u. S. And being bought by investor groups. Is offer of 56 a share slightly above mondays close. The founder and General Atlantic will hold majority voting at 44 . More potential investors for hertz. They would need a miracle to avoid a bailout. They sold half 1 billion in, stocks to raise funds. Shares fell as much as 38 but that is still better than when the company filed for chapter 11 bankruptcy. Rapidlyys it will need improving conditions if it is to survive. There are risks back on in asia after a week of negative sentiment. We have a corporate pond that shows that the fed has the markets back and will put a floor on the global equities. The index is up by a whopping 2. 6 after losing about 2 yesterday. There were stay since midmarch. We have futures pointing up by 1 . Afterd is boosting that worries of a possible second wave of the virus. Yields at 0. 7 it was flatlining here. 10year yields are looking like that. The nikkei 225 is higher by about 3 . We are awaiting the boj decision , expected to stand pat on rates. This gives the boj room to do that. It has been steady. The boj will reassess measures put in place to prop up the economy. We have Samsung Electronics otherbuting to loss with electronics. Hang seng is up by 2. 33 after falling yesterday. More to come, this is bloomberg. A. M. In it is 10 29 shanghai and hong kong. I am serena mitchell. The European Union is taking on chinas global with an unprecedented tariff decision. For the first time ever, the eu distorting eight in a third state. Ultimately based in china. Meanwhile, the eu and the u. K. Are one step closer to a deal with russells more confident Boris Johnson will compromise and the Prime Minister saying chances of an agreement are very good. Johnson held a Virtual Summit with the eu commissioner with officials on both sides saying there is new momentum to the deadlock in negotiations. Reiteratingump is his threat to pull out u. S. Forces from germany against berlin raises spending in its own defense calling germany delinquent. Natoys germany owes billions and will have to pay. He is now threatening to slash u. S. Numbers there by half. A unilateral annexation of occupied land in the west bank will lose Research Grants and other funding. Israel has received more than a billion dollars from the eu since 2014 what is being warned that future payments may be withheld. Powered by more than 2700 journalists and analysts in more than 120 countries. I am karina mitchell. This is bloomberg. Yvonne . Coming breaking news through here. According to our sources, President Trump is weighing a 1 trillion spending package for infrastructure to try to boost the economy according to people familiar with the situation. This comes as the current funding law is scheduled to expire on september 30. The plan is to set aside funds for 5g and rural broadband. There are still a lot of questions about how much of the 1 trillion will be new spending and how they well fund it. Does it necessitate a bond issuance. That will be a key focus for many as they look at this administrative draft plan. That remains under discussion. Congress will need to turn that plan into legislation. Haslinda the u. S. Possibly going the china way. As was mentioned, the bank of japan is expected to leave policy unchanged while reviewing measures are ready taken. Joining us now from sydney is moodys economist, shahana mukherjee. Good to have you with us. The boj can afford to sit tight. The worst of the economic downturn is possibly over and the yen is stable. ,hahana yes, as you mentioned the analytics are expecting the bank of japan to keep its monetary settings unchanged and o is primarily because tw have been already delivered. We do expect the bank of japan to hold steady. We heard corrode a say say the bankuroda of japan will do whatever it takes. Say how heard abe do you expect japan to manage those two . Shahana currently, japan is of domesticg forces demand as well as weak external demand. This is not just the case for japan. Otheran issue in countries of the asiapacific and other parts of the world as well. The bank of japan and the shinzo abe government have already mobilized significant resources. 40 of gdp. One of the highest among industrial nations. Shahana, let me jump in here because we have the bojs decision already. As expected it is maintaining its policy balance rate at 0. 1 . It is also maintaining its target at 0 . The news pretty much expected. The sense is that there is no need to boost the economy. This is probably the most significant point here, right . Shahana absolutely. And if you also take a look or if you were to assess the effectiveness of the measures if youd so far, take a look at the bank lending. The bank lending has grown at a record pace of 4. 8 . Companies have really been tapping into that to keep liquidity levels high at a time had shortterm cash flows been fundamentally disrupted.