Virgin australia tracks interest from indias largest by just budget carrier. Shery lets get you started with a quick check of how the markets are trading. We are seeing u. S. Futures under pressure, this after the regular session ended mixed. Markets pretty optimistic about reopening some parts of the u. S. Economy, but also a bit more cautious given that we have seen flareups around the world. The s p 500 finished unchanged. Health care led the gains, but financials weighed on the index. The nasdaq composite getting for the sixth consecutive session, outperforming again. The longest winning streak this year. Take a look at what oil is doing. Wti gaining ground, above 24 a barrel. This after it fell and erased earlier gains in the new york session. Tohave saudi arabias plan output, providing a boost but that was not sustained. We have opec given its Monthly Oil Market report on wednesday. Haidi in the u. S. , President Trump has responded to reports china is considering scrapping the phase one trade deal by saying he is not interested in restarting talks. Pres. Trump we signed a deal. I heard that too, they would like to reopen the trade talks and make it a better deal for them. China has been taking advantage of the United States for decades because we had people at this position right here where i am standing, sitting right in that office, the oval office that allow that to happen. Im not interested in that. Lets see if they live up to the deal that they signed. Shery our congressional government reporter emily wilson joins us from washington. This war of words has been going on for a few weeks and it continues to escalate. Emily yes, absolutely. We have seen trump initially criticized china. We saw china pushback. Last week, they were supposed to be doing trade talks and now we see this today. I think this is something where you are seeing the u. S. And china both politicize the other countrys response to the coronavirus. You are seeing trump tried to talk tough, act tough. Secretarywe know, lighthizer is still expected to speak with top chinese officials about the trade agreement. They have been doing this every six months. That is still on the books as far as we know. It sounds like trump may have been trying to put the pressure on china a little bit with this statement today. Haidi right. As we continue to see cases in the u. S. Rise, we continue to rising, the president saying they have prevailed. What is he talking about . Emily trump said today to reporters that the u. S. Prevailed against the outbreak and sounded very optimistic. This is focommon. He has had an optimistic tone about the virus since the very beginning. You are seeing a continuation of that today. We had seen cases go down slightly in the u. S. , but we are still seeing a number of people being infected. Unfortunately, we do see the death toll continue to rise. This is certainly not something that is in the Rearview Mirror for the u. S. Shery some of those infected among the highest ranks in washington as well. Emily yes. There have been now several cases reported at the white house among staff and employees, including the press secretary for Vice President mike pence. Pence has been quarantining himself, trying to stay away fro. The white house today sent out a memo requiring all employees to wear a mask. They did relax that if they are at their desks and the desks are socially distanced from everyone else. Visitors must wear a mask. There was a note today urging people if they dont need to come to the white house to not come. We have not seen trump wearing a mask yet. We have nothing other top senior officials wear a mask. It seems like a memo might go out, but it has not gone as far as it could go with requiring everyone to wear a mask at all times. Mixed messaging there. Emily wilkins. Get you caught up with the first word headlines with karina mitchell. Karina Global Health services are warning of a second wave of coronavirus get you infections w cases and south korea and a spike in the city where the outbreak was first reported. Wuhan saw its first new cases since the city ended the Strict Lockdown last month. Italy has reported its fewest new infections since march 4. France and spain continue to bs restrictions. Indonesia is warning about the fallout of the coronavirus amid a capital exit is that is even larger than the financial crisis. The finance ministers says the domino effect they require extra steps. Japan is said to be ready to lift part of its state of emergency as the rate of infections false. Lift. E government may russia is lifting its nationwide lockdown even as they learn new cases of the virus surge past most european countries. President putin is ending the stayathome order while putting the responsibility on regional leaders. Oils collapse adds even more pressure. Arabia has announced a surprise cut in oil output to its lowest in 18 years as it tries to counter the Energy Crisis that is crippling the economy. Hours after releasing new austerity measures, the kingdom says it will cut production by an extra Million Barrels a day, on top of what is agreed with opecplus allies. Oil futures rose on the news, which was later followed by cuts by kuwait and the uae. Powered by more than 2700 journalists and analysts in more than 120 countries. Im karina mitchell. This is bloomberg. Haidi . Haidi still ahead, more on the saudi move on oil but will it be enough to offset the demand disruption . We would discuss that with the lead analyst. Silversteinxt, capital ceo tells us why she is taking with cash and gold right now. This is bloomberg. Shery Amc Entertainment sort on reports that amazon is discussing a possible takeover, although the stock paired gains when another outlet cast doubts. The daily mail said it is not clear if talks are active or will eventually lead to a deal. Neither amc or amazon made a comment. Amc has fallen with the wider Entertainment Industry battered by the coronavirus restrictions. Marriott international fell as business collapsed last month. With travel virtually at a standstill amid the coronavirus, revenue plummeted 90 in april, indicating the Company Faces a long haul back. Marriott reported earnings in the first quarter, well down from average estimates. 25 of its Worldwide Hotels have been closed by the virus. The coronavirus lockdowns have sent electronic transactions soaring and muster countered mastercards value proposition. It is now worth more than jp morgan. Visa is worth even more than that. Shares have risen by more than 25 since the start of march. We will see if cash makes a comeback in the lockdowns are lifted. Stocksu. S. Partial mixed with reopening in new york state but Bond Investors are looking to the future and now. Joining us now is the founder great to have you. This dislocation we continue to see between bond markets and equity markets, does this play into the concern that you say investors will still buy in large price in a v shape recovery even though you cannot find an economist that can convincingly say that is what they are expecting . I couldnt agree more. Bond markets are obviously disagreeing. Where on the side of the bond markets. They are looking beyond the three to mfour liquidity bridge that is being afforded by Central Banks across the world. Theres a big difference between liquidity and solvency. Hertz, it isrket another key story showing that. We do not think this is a buy and hold environment because of that. Haidi when it comes to gold and cash, that makes it seem pretty dire. Are there parts of the market where you are continuing to seek because there are valuations . When wee net long, but say we are tactical with cash because the vix is less than 30, it is about 27 when i was checking out. The team maintains a tactical stance. If you are holding key long positions and they might range between 3 and 10 a day. If they are flagged as overbought as we can see, we will trim or exit them. Some days, you will see a pullback than then we may reenter the same security. We are doing the same thing with shorts. The key difference is when you have low volatility and more certainty of economic trajectory, you can buy and hold positions. But now here we are really trading. That is like cash is your friend. You dont have to keep one position, one net position. You can change it day today so cash can be tactical. Shery what about specific sectors of the market because we have seen outperformance by those growth companies, internet tech giants that Even Health Care has been really resilient to this pandemic. We have been overexposed to tech, health care, certain staples. Obviously some of the grocery players. Maybe the less known names internationally because obviously some of the bigger names stateside have been picked over a little bit so the asymmetry is not there as much anymore. We are enjoying some of the gold companies, Royalty Companies created telecommunications, there has been some Communication Companies which has been an amazing run. I dont think you have to marry yourself to tech. Tech has been great but health care has done quite well. There are names around the world that are benefiting from whether it is remote work order increased use of technology. We liked a lot of different sectorsi dont think you have ty yourself to tech. But you have to know where to pick the name. Shery would you pick some of those names in emerging markets as well . If you are looking for opportunities, you can find something that is even cheaper that emerging markets at the moment. We do have some chinese tech companies. We do have other e. M. Plays out there but we have to be cautious about the dollar. Theres a lot of emerging markets with that in u. S. Dollars and you can have a lot higher volatility in those stocks, which are less related to the underlying businesses. Wethe counts we can hedge, try to hedge out that risk. Narrowing on the fundamentals of those businesses versus fx swings. We do see there are attractive plays in e. M. , but you have to be cautious on what is going to drive the security. Bigi what about companies, wellfunded companies that will suffer in the shortterm as we get through the uncertainty of what is the new normal, but undoubtedly still has a future . Im talking about names like disney. Could you be taking a longer position at the moment . Areas, i think you would have to look at some clients have put together an Energy Portfolio in the past few weeks. If you are looking at the beatendown sector where there may be Good Companies with amazing assets that they have been investing in over time. You can find maybe intermediateterm attractive plays. You really have to have it aligned with their capital. You have to be gay type of investor that is less concerned with interim volatility which is obviously higher. As you mentioned, someone like disney, sure, you can say there are certain pieces of those you like but there could be a structural change in travel, a structural change on a lot of the money making business as they have. It could bring out the investment horizon such that your rors are not as exciting as before. We like to look at companies that may not have that structural issue. Therefore, have a little greater certainty for our clients. Shery always great having you with us. Nadine, cio of saltzstein capital. Coming up, the owner of indigo is the latest potential suitor for Virgin Australia. The details ahead. This is bloomberg. Haidi indigo is considering a bid for Virgin Australia which collapsed last month, crippled by travel restrictions. Paul allen has the story. What do we know about this potential interest we are seeing . Though renaultas dutta is responsible. He is looking at the data and finalizing a strategy. Denied beforely any interest in Virgin Australia but the strategy is being prepared by indigo. Will bess, dutta joining an increasingly long line of suitors for Virgin Australia which has now 20 potential buyers. Deloitte is looking for indicative bids to be by the middle of this month, looking to get assailed by the end of june. Virgin did collapse on the 21st of april after appealing for an failing to get a government bailout. It has pretty much grounded to a halt wind Coronavirus Travel restrictions hit. For over 10,000 creditors. A long way to run yet. Shery airlines are working on social distancing guidelines when travel resumes. Any idea of what will happen for the infamous middle seat . Paul the middle seat. I dont think anyone ever covets or wants the middle seat. There was a feeling that maybe it would go up in the era of social distancing. Weighed into this. Even if the middle seat is empty, all you are buying is an extra 60 centimeters of space on either side of you and that will really not cut it with social distancing guidelines, usually requiring something in the order of 1. 5 meters. It is barely a third of that. Alan joyce agrees with the sentiments, that there is no guarantee that keeping that middle seat empty is going to stop the spread of coronavirus anyway. Of course, there is the financial could duration consideration. Hard toint, gets very make money on a flight. Unless you increase fares and who wants to fly anyway . Working with the government to try to get some social distancing in place for air travel. Who knows when that will be . When flights finally do resume. Shery paul allen in sydney with the latest. The u. S. Airline industry also continues to struggle under major headwinds amid the coronavirus pandemic, even as the economy gets set to restart. Earlier, Southwest Airlines chairman and ceo told us exclusively that he does not think demand will recover anytime soon. Demand is still very modest. Were seeing very gradual improvements in air traffic. Our load factor last week was probably around 20 at best. Southwest, we are not booking our airplanes full anyway to allow for physical distancing on the airplane. You wont see a full airplane. But, the good news is we are beginning to see a recovery. Our government has asked us to remain open for business throughout. We never shut down, but we have reduced a lot of our flights. Were working with the government to hopefully implement temperature screenings so we dont have ill passengers getting into the airport and onto airplanes. We have a number of cleaning procedures we have implemented. Hand sanitizers are available. We are asking customers and employees to wear masks. We have hepa filters on board the aircraft, creating hospital quality air. There is a number of things that are being done as a multilayered approach to make the environment as safe as we can possibly make it. 20s isfactors in the not going to be ultimately sustainable. How long do you think it will take to get load factor backup to the level of which legs are viable . Do you think some routes are not going to be viable, with the kinds of load factors you will have to live with for some time . Taking air traffic as a whole worldwide because we are in a recession, we are going to see some very gradual return of business traffic. That is very typical in a recessionary environment and that is exactly what weve got. Talking about International Travel earlier. I think International Travel is going to be very slow to return. I think it will be years before we get back to 2019 traffic levels. In terms of the consumer, historically in recessions, consumers do travel. They watch their budgets. They will be looking for low fares. Of course, i do think lowfare carriers like southwest will see more demand in an environment like this. I think overall, it will take several years for the traffic to recover. All of your preparation seen predicated on revenue coming back, even if it is five years down the road. If it doesnt or if it takes longer than that or if there are too many airplane seats with too few customers, is there a round of consolidation that takes place . What would be the Tipping Point for you to consider Something Like that . I think all of that is premature. Right now, we are just making sure that we keep southwest healthy and we survive this crisis. How long it takes to survive, i think, is the essence of your question. And then, what techniques will we need to not just survive but then thrive are all open. We acquired Airtran Airways in 2010. Obviously, we have proven it is something we are willing to do and able to do. That is not the preferred course at this point, but you make an excellent point that in this kind of environment, if in fact travel demand is lower, there very well could be some consolidation. If so, we want to be prepared for that. Right now, we are doing everything we can to minimize our spending, focus on safety, focus on the health and make sure we have plenty of cash and weve done all of those things. That was southwest airline ceo gary kelly. Lets take a look at how we are setting up in the early part of asian trading session. A little directionless as we have had u. S. Stocks fluctuating, as investors are continuing to track the latest virus developments and reopening efforts we are seeing. Despite new infections rising in some parts and concerns over a second wave and a lot of economies. We are seeing a seventh day of gains for the market in new zealand. Australian stocks, the futures when it comes to the asx 200 all in a little bit in the early part of the session, starting the day flat after the 1. 3 gain we saw yesterday. Also watching commodities and oil in particular with saudi arabia saying it will cut oil output, bringing the production down to the lowest in 18 years. Coming up, double jeopardy. The u. S. China trade deal is coming under increasing pressure from both sides, as anger mounts over the coronavirus blame game. We get the latest from beijing next. This is bloomberg. Karina you are watching daybreak australia. Global Health Services are warning of a second wave of coronavirus cases with a second wave in south korea and a spike in infections in the city where it was first reported. Wuhan saw its first new cases since the city ended the lockdown last month. Italy reported its fewest new infection since march 4, while france, spain and greece continue to bes restrictions. Germany says the u. K. Is not taking brexit seriously and failure to agree with the deal is a catastrophe. The latest talks have resumed via video link and germanys Main Business lobby says progress so far has been completely inadequate. The coronavirus has already lost millions of jobs and failure in the negotiations will turn a difficult situation into a disaster. Japan may limit Foreign Investment in companies they say are vital to national security. The government has a list of firms to be protected, saying Foreign Investors will be asked. That is down from the current 10 holding. More than half of japans companies although exemptions and registered investors. To aides working for venezuelan Opposition Leader juan guaido have resigned over last weeks botched invasion. One of them says he has been in contact with former u. S. Green beret John Goodreau who led the raid. Eight people were killed with 40 arrested, including two u. S. Soldiers. Global news 24 hours a day, powered by more than 2700 journalists and analysts in more than 120 countries. Im karina mitchell. This is bloomberg. Shery we have an alert on the bloomberg. Alameda county in california, hoping tesla will comply without enforcement. This is after the county told tesla last week it didnt meet the criteria to reopen. Ceo elon musk dares authorities to arrest him, telling employees getting back to work in the factory. He did draw support from the u. S. Treasury secretary as well as several ceos when musk threatened to pull the company out of the state. Alameda county saying tesla will submit operation plans by today. Chinese trade officials are considering the option avoiding the phase one trade deal with the u. S. According to state media. The report comes amid purchases of u. S. Goods and President Trump says hes not interested in restarting talks. Tom mackenzie joins us from beijing. This coming from the global times. What exactly are they reporting . Tom it is a state backed tabloid, a nationalistic newspaper that cites advisors close to the trade talks, suggesting officials revise the 50s one trade deal the phase one trade deal. This after talks about the handling of the pandemic triggered anger in some of chinas trade officials. It also suggested negotiating a new deal to tilt the balance more towards the chinese side. The thinking apparently is they can use provision in the deal to rework it or potentially pull it out altogether. Gamesmanship from the china side. President trump said he suggested pulling out of the deal if china does not stay with the commitments. Now you are hearing the tabloid the same kind of conversations are being had with officials looking at trade here. We have a conversation between lighthizer last week and that seemed to be a positive conclusion with both sides reiterating sticking to the deal and working towards the completion of phase one. In the meantime, china is contending with the virus clusters. What more do we know . Tom this is in the city of wuhan where the outbreak is believed to be started. They have reported the first cluster of infections since the lockdown on that city was lifted in april. Five new confirmed cases, all of them apparently live in the same residential compound. It is a reminder that china will have to stay alert to new cases as the economy moves into full throttle. Several cases on the chinarussia border. We heard a cluster about in a city next to the north korea border. China trying to fully restart the economy, including opening cinemas and museums later this week. While trying to screen and test for the virus. It is about trying to strike that balance. Aseminder of a need to focus much as trying to get the economy back into full throttle. Shery we are getting eco data out of china. What are we expecting . Prices fall 2. 5 for the month of april. That is a drop of 1. 5 back in march. Weak Commodity Prices is the reason for that. The demand remains pretty tepid. Bloomberg intelligence expects factory prices will continue given the weak economy and the drag demand. That will weigh on corporate profits. Consumer prices, the forecast to rise 3. 7 , but that is still below the more than 4 increase we saw back in march. Weak price is a factor and slightly slower Consumer Prices increases for the month of april. The pboc saying over the weekend, a substantial and consistent inflation in the medium to longer term. Tom mackenzie in beijing. Coming up next, the outlook for oil as saudi arabia orders extra cuts for june. We will hear from the nasdaq Senior Energy director. This is bloomberg. Haidi the effectiveness of reopening hinges on how governments, companies and the public about it. Thecine lacqua spoke to vice dean at Johns HopkinsBloomberg School of Public Health about the proper execution. Reopenink the ability to depends more on masks and gloves. Masks are stopgap measure. How well they do in this relief is more than they think. The most important thing is the ability to stay away from each other physically. Particularly at a Cash Register to prevent droplets from spreading better than a mask. I think its possible in some areas to do that. , asases are coming down there are more Public Health measures in place and as the hospitals are doing better. It has to be done very carefully. How does Contact Tracing work . Is it the most effective tool rehab bring up . It is a very critical tool. The idea is you want to stop the virus from spreading to persontoperson without having to tell everyone to go home and stay at home. Someone do is you find who has the coronavirus, have a test. You call them right away, you find out who they have been in contact with during their infectious period. If it is a couple days before they started symptoms and then quick, you call them and sell them they should quarantine themselves so when they start getting infected, there is nobody for them to give it to. It requires a lot of people. New york is planning to hire Something Like 10,000 people. If you can do it even if it is not perfect, you can slow the spread of the virus. Shery that was the vice dean of Johns HopkinsBloomberg School of Public Health. The school is supported by michael bloomberg, the Parent Company of this network. As saudi arabias ability to implement additional production cuts. The kingdom says it will pump 7. 5 Million Barrels a day next month. One Million Barrels below its official opecplus output target and the lowest levels for 18 years. We discuss this with nasdaq Senior Energy director tamar essner. Great to have you back. We have seen the rise in oil prices in the regular new york session but then those gains being erased. What does this tell us about how big the supply glut is at the moment and how much saudi arabias latest move can help . Tamar great to be here. I think the market was a little taken aback by saudis announcement today. We are only 11 days into what was it historic agreement in terms of the duration and the degree of cuts. It was sort of a negative indicator in terms of the weakness they are seeing on demand side. I think the Oil Fundamentals are improving a little bit but from a low base. We see that reflected in the price. Up quite a bit over the last couple of sessions, although not today. I think the supply is being reined in. In the u. S. , 2 Million Barrels a day now. Deal, opec and russia have been pretty compliant so far. The supply is coming in. At the same time, we think demand has bottomed and we are starting to see signs that people are driving more and economies are opening up slowly. We think that even though it will probably take quite a long time, perhaps many years to fully recover, we are still trending higher and going in the right direction. Shery in the supply side of things, how much of the production has already been shut in places like u. S. Or canada . They can come back quickly. Tamar that is an interesting question because no one really knows how quickly it can come back. Inthe u. S. , we have shut about 2 Million Barrels a day but we have not really had this situation before. I think the wells that are first to go down are the wells that has higher pumping rates and they are newer. I think those wells will be easier to bring back online. The wells that have lower pumping rates, those will be harder to put back online. Those are probably the last to go down for we are really in uncharted territory because we have never seen this degree before. And the ability to bring them back. From a geological perspective, it is probably ok. The wells will perform again. They will pump but it is a matter of how much money it takes to get them there. S cut more,saudio but the counter argument for that is that is actually an indication of just how weak the his,ee underlying amend because if there was demand, they wouldnt be cutting it. Tamar yeah, that is the whole point of opecs credibility. We think the only reason they are cutting right now is because there are no buyers on the others or there is no storage and no place to put the oil. That is definitely a factor. We think of the end of the day, nothing has really changed in the ultimate market share strategy. Opec, saudi and russia are all price takers free to once we see a bit of an improvement in demand and a bit of reaction in oil prices, we think they are going to go back to pumping much greater capacity. I dont think we will go back to as low as we have gone but it does keep a lid on prices and we remain bearish for the foreseeable future because of that. Haidi what are you looking out for in aramcos earnings later on tuesday . Is there anything that could come out that would surprise you . Think theirusly, i earnings will be down more broadly. We are looking at the austerity measures being taken in saudi arabia. I think their Dividend Strategy is in the lowprice environment more protective of public Equity Investors relative to the government. That will be interesting if theres any change in that policy, although not expecting anything from that perspective. It really is an interesting point because we always talk about saudi as having the lowest listing cost on earth, two dollars to three dollars per barrel. Nobody could beat that. At the same time, they do require a much higher price to allens the allens the budget and to have the regime continue with its stability. It really is an interesting question when you look up the longterm competitiveness of the industry. Shale has a higher listing cost, but in the long term, that industry can potentially become more competitive. Haidi we do have the wti for june expiring next week. Our going to see something similar to what happened with may futures . Tamar i dont think so. , thatk whatever happens actor would have already learned their lesson. We have seen a lot of financial players have diversified. They are no longer quite has concentrated in their holdings. They only further out along the curve. Now arethat the issues very well telegraphed. I dont anticipate that happening again. There is the possibility, especially when you see there are options trading for negative prices. It is possible that some participant forces the hand because theres an option owner that could profit from a lowerpriced but it is not something we are really anticipating. Do we seewhat point prices level enough for u. S. Shale to come back online . We know they are pretty flexible in terms of needing a couple of months to be able to do that. Tamar yeah, they have the ability because of that. We have seen some shale producers have gone so far to suggest they could begin drilling downability because of. That is even a more extreme step than just reviewing production of new wells at 30. I think it really varies from company to company. Theres a lot of differences. I think the industry as a whole is very resilient and will get stronger over time, even though there are a lot of individual companies that are weak and inefficient and they will have to face bankruptcy. In the bankruptcy process, you have the chance to reset the debt burden at lower levels and takedown the corporate overhead and make the assets more competitive. Lifting costs for sale are pretty competitive. Assets dobankruptcy, not go away. Longterm, we think the industry can become more profitable and more competitive. Nasdaq Senior Energy director tamar essner with us. News of falling on the the saudi cuts. Lets see how we are setting of the Asian Session more broadly. Sophie kamaruddin in hong kong. Mixed messaging coming through from the wall street session. How is that playing out in asia . Sophie it looks like we might have a lack of conviction this tuesday. Asian stocks may face a mixed start to the day. U. S. Futures have swung lower. Treasury futures are looking steady for the upside ahead of jay powells webcast on wednesday. Another option in the pipeline tuesday. Concerns generally weighing on bond markets and that has pushed up indian and chinese yields and sparta deepening yield curve for the u. S. And china and australia. Edgee seeing aussie bonds lower while the dollar is continuing to stall after slipping back below 65. Flipping the board, taking this out. We are seeing the aussie dollar sensitivity with Sluggish Oil Prices waning since midmarch. Report coming through with policy responses with the currency managing to stay reporh policy responses with the currency managing to stay afloat this by the downturn which Bloomberg Intelligence notes it is an indicator of a commodity driven bearish play has been priced in for the australian dollar. Lets get a check of where we are on the negative u. S. Rate debate, even after fed officials pushed back on that. Traders are trading subzero rates along the curve with contracts from april 2021 broadly holding above 100. That line delineating from zero rates. The market will not completely rule out a possibility of prospects of an incomplete recovery for the u. S. Economy. That kforce the fed to perhaps innovate. Bloomberg intelligence working out the pricing we are seeing in futures. That could be slow oil demand. Shery just ahead, bitcoin supplies, but prices tumble. A look at what this means for the cryptocurrency next. This is bloomberg. A look at what this means for the cryptocurrency next. This is bloomberg. This is bloomberg. Haidi bitcoin declined having already tumbled. Halving takes place every four years and slows down the rate at which new coins are created. We have the details now. What are the implications of this happening and why did we see prices go down as supply is theoretically meant to be reduced . Michael it is good to actually get it over with. The bottom line is supply is being reduced but i think what we saw was a little bit of speculative walking into the weekend and getting out during the weekend that pushed to the price up. Year, line is as of next annual supply a bitcoin will drop below 2 , on its way towards zero. The average annual supply of gold is around 2 . The big difference is higher prices will not bring on more bitcoin. Its basically becoming somewhat of a collectible. The only thing that really matters is adoption. Most indicators show adoption and demand are picking up. Shery what is your outlook for prices because we have seen bitcoin already rally about 20 or more this year . Michael that is the bottom line. To continue advancing but at a slower pace. We know bitcoin has gone up a lot in its history. The good news about this year, it started out around 7000. I can see the upper range around 14,000 still. It could double from the bottom but it should continue to advance that a lot slower pace than it has in history. That is part of the significance. Bitcoin volatility is on its way down if you measure it on a 260 day basis. The stock market is on its way up so it is becoming attractive compared to the stock market. It is becoming more like gold versus the stock market. Shery mike more on Digital Currencies later. We will hear from roger burr. And dave chapman. Lets get a quick check of the latest business flash headlines. Elon musk is heading for another showdown with california, demanding his tesla factory stay shut because of the coronavirus. Musk says he will restart production anyway, tweeting if anyone gets arrested, i ask it only be meet. Teslas only u. S. Plant has been closed since march 23. Steve mnuchin weighing in, urging california to prioritize its reopening. Its future ason the virus triggers crash of travel demand raises questions to seek debt. It has been working with lenders to avoid bankruptcy but now says it may not have enough cash to pay bills amid the big outlook for car renting. First quarter loss per share was one dolla 1. 92. Version group says it is considering a half billion dollars sale of its Space Travel Company to save the airline. Virgin says proceeds would go towards supporting its portfolio of travel businesses which has been hit by covid19. Last october, Virgin Galactic became the first Space Tourism company to go public. Haidi coming up in the next hour, wells fargo asset senior Portfolio Manager tells us that the worst is over. Join us for that conversation. This is bloomberg. Welcome to bloomberg daybreak asia. Down to theunting market open in australia, japan and south korea. Trade tensions rise again and china may terminate the phase one deal. Coronavirus cases continue to rise with new infections in the chinese city where it was first reported. New york state will reopen partially this week