The big day is here in the United States. Super tuesday. Can joe biden continue challenging Bernie Sanders . Will Michael Bloomberg or Elizabeth Warren claim their first date . First, more first state . First, more coronavirus cases in the u. S. Two employees in china contracted the virus, or cases in south korea, iran. The fed jumping in but u. S. Stocks still tumbling. What are you watching ahead of the open . Paul the u. S. Reaction really setting us up for wednesday. New zealand, already open and already weaker by half of 1 . Up day on monday no, a big update on tuesday, a down day on monday. Futures here in sydney are off by 1. 3 . The market up by almost three quarters of 1 yesterday. Nikkei futures pointing south by more than 2. 5 . We look at currencies, the aussie dollar actually gained amid all of this, knocking on the door of . 66. Gdp for australia a little later on for the Fourth Quarter. Those numbers are expected to be healthy but they are of course backward looking. The yield on the aussie 10 year improving a little. Strengthening against the greenback. Emily as we have mentioned, it finally happened, the fed with an emergency rate cut, one that jay powell says had to happen. Over the course of the last couple of weeks, we have seen a broader spread of the virus. For us, what really matters is not the epidemiology but the risk to the economy. We saw a risk to the outlook for the economy and chose to act. Shaving 50 basis points was not enough to keep stocks from falling. Didnt what the fed had to say give investors confidence today . Was i think it did, but it fleeting. Stocks willom out, still be up on the week by about 1 . The rally was about pulling forward these expectations that you would get a response from these policymakers. Lets look at the chart. I dont think you need to be a Rocket Scientist to tell when exactly that did come in there. Stocks up more than 1 . During the press conference and after, it slid. This is getting to the idea that it is not going to come from Central Banks. It is going to come from health professionals. The 10 was the slide in year yield. A sign that investors are doubting. The 10 year treasury yield breaks below 1 for its first time on record. The speed of the move relative to other sovereign bonds is very noteworthy. Move this fast a since the european sovereign debt crisis in 2011. That gives you a sense of how much the flight to safety is taking place stateside. Usually, when you get these lower yields, you get these things that have been at more as duration proxies that have been doing better. Even though the nasdaq did underperformed the s p 500, you are seeing the expense of software stocks. They actually did slightly outperform. The baby is getting thrown out with the bathwater, but not as bad as you might think. It is important to note that some other concerning things are above the week. Cdx Investment Grade and high yields both wider. Your front month volatility future also higher. This has been a sign that stille any good tidings, a lot of concern in risk assets and in markets generally. The rate cut coming as the virus claim two more lives in washington state, bringing the u. S. Death toll to nine. A man in new york also has tested positive without knowing how he got the virus. I want to talk about the testing situation there is a lot of confusion. The u. S. Had weeks to prepare but the testing is still lagging how many tests are available come out quickly can that be ramped up, and where are these new tests going to come from . The answer is we dont know and not nearly quickly enough. Initially, two sources. The fact that the cdc had a narrow initial definition of who they wanted to look at, which suggested the urgency. Now we are getting test kits from a broader set of sources, not just the cdc but private companies. They need to get out to private labs, need to get validated, and need to get introduced into use. We are starting to see a ramp up. The broader surveillance that we need paul President Trump is encouraging drugmakers to get it done on a coronavirus treatment. It is not quite that simple, is it . Quitengs are moving quickly in regards to a vaccine. There is a vaccine candidate from one Company Moving toward trials. He still have to test it and people initially for safety and then for a broader population. This is something you will be giving to Healthy People on a broad scale. Needs to benal found, something that might come a little more rapidly is a therapeutic that is given to people who actually have the coronavirus but that could take some time as well. Paul thanks for joining us. U. S. Stocks did double as investors worried that the Federal Reserves emergency rate cut will not be enough to combat the Economic Impact. That globalst says Central Banks must come together. A reaction from the cut priced inhis already . Lets take a step back and see where we are. We have a Health Crisis as well as an Economic Impact. We should not panic about either one, but we need to take precautionary measures on both. The fed today made an emergency move to lower rates by 50 basis points. Yet, the market was anticipating a more measured response. The analogy i like to use is a crying baby, trying to give that baby two scoops of ice cream but the baby wanted three scoops of ice cream. The markets were expecting more. They continue to have downward pressure. Maybe we will see continued rate cuts as we look at the next fed meeting in march. Paul we have some news that the bank of korea will hold a meeting this morning. They coordinated response around the globe, it seems like. Tothat going to be enough supply that third scoop of ice cream . Looking att we are is definitely a global slowdown in intentionally the global recession. We cannot minimize the impact to the economy around the world. Depending on how you define a global recession. Many defined that as global of as growth slowing. We do not know the full extent of what will be that global gdp number. But definitely a global slowdown. The good news, yes, Central Banks around the globe are coordinating and looking at various fiscal stimulus measures that we have seen in hong kong and we are talking about in the United States. President trump encouraged a payroll tax cut for one year. Fiscal stimulus measures that would also be promising. Emily i want to ask you about tech because tech had been on a tear over the past year leading into this. Facebook canceled conferences just today. Google cancel this big conference. I have to imagine there is some loss of productivity. Hattie think the virus will impact tech more specifically as a sector. Loreen as we look back, we have seen in technology, somewhat ahead of themselves, ahead of earnings. As we look at that, now we had a pullback that brings down p e ratios into a more normalized range. Around 16. 5 versus 17. We will see it come down even more so before looking at some. Reat names in technology it is both the supply chain and the demand that is going to impact technology. Apple gave Forward Guidance, that was the beginning of it, and now we are hearing more and more, both Forward Guidance and forward room. Emily meantime, americans are heading to the polls in super tuesday. Given the vast differences between the progressive and moderate lanes, i am curious if you think a bernie or a biden or whomever makes a difference in terms of your strategy over the next few months heading into the election . Cannot discount the markets response to who the democratic nominee will be . I do think that a bernie affect has been in the markets. Now that we are seeing biden taking more of hopefully a lead, a more moderate candidate, that will appease the market. Im not talking about my strategy, i am talking about the markets and what the markets are feeling comfortable with. That would e. A. More moderate candidate simply because of policy measures that would come into effect. Emily we will have more information when the polls close. Thank you for joining us. Do not miss our exclusive interview with st. Louis fed president james bullard. Midnight in hong kong. Coming up, joe biden roaring back on super tuesday in part thanks to his former rival. This is bloomberg. I believe we can do this together. Rallying the country together to defeat donald trump. To heal this country and build something even greater. In the name of that very same goal, i will be casting my ballot for joe biden. Joe biden. Joe biden. We need you, we want you. Join us. Paul welcome back to Bloomberg Markets. Markets remain nervous about the coronavirus. Cut,eds emergency rate will it be enough to combat the impact of the spreading outbreak . Jerome powell lowered it by 50 basis points. 10 year yield fell below 1 for the First Time Ever on the move. Ally independent experts are recommending andctions of between 600000 one Million Barrels per day in the next quarter to counter drops in demand for energy. Japan says the Tokyo Olympics may be held back by the coronavirus and could be held later in the year. The minister in charge said the event had to be held during 2020. The deaths of at least 12 japanese people linked to the virus. Some olympic related events have been canceled or postponed. Global news, 24 hours a day, on air and on quick take by bloomberg, powered by more than 2700 journalists and analysts in over 120 countries. This is bloomberg. Super tuesday is upon us with democratic primaries in 14 states and one territory happening now. The Playing Field has changed dramatically after joe bidens big win in South Carolina. That brought in big endorsements and cash, and prompted Pete Buttigieg and Amy Klobuchar to withdraw. Here is a look at what to expect. The selfproclaimed mechanic socialist took the conventional with selfproclaimed democraticsocialist took the conventional wisdom and turned it upside down. All that talk about sanders support being limited to young white liberals, no one is saying that now. Sanders won 47 of the vote in the nevada caucuses and did it with a broadbased coalition that looked more like the Democratic Party as a whole. Eyeing bigger prizes. Senator sanders dont tell anybody, i dont want to get them nervous. We are going to win the democratic primary in texas. Super tuesday is the biggest day on the president ial primary calendar. 1 3 of the total number of delegates available are up for grabs. California and texas are the two biggest prizes. Carolina,lude virginia, and massachusetts. The question, can antisanders moderates come together to support the front runner . Biden was the Longtime National front runner. Until not won a state saturdays victory in South Carolina. Supporters hope that can give him a boost on super tuesday. And there is the Michael Bloomberg factor. The billionaire will be on the ballot for the first time. His debate in the his performance in the first debate was criticized. Theourse, bloomberg is majority owner of the parent of bloomberg news. Meanwhile, the candidate who took bloomberg down and that debate is looking for a bounce. Any time someone tells you a woman cant beat donald trump. I dont know about any woman but i will tell you Elizabeth Warren can. Chance will not get a unless they figure out a way to stop Bernie Sanders. Super tuesday could be one of their last opportunities. Emily lets head to washington. Our politics editor of a windy benjamin. I talked to a lot of people who voted today and many people did not know who they would vote for until the walked in. Some people came out and did not know if they made the right choice. It speaks to how many people are still in the race. Yesterday that we had two more candidates than today. Aople were in fact, i have friend who said her mother was going to vote for Pete Buttigieg, and when he dropped out, she said, i will vote for Amy Klobuchar. It is the fastmoving dynamic of this race that i think is changing a lot that. Any indication of how those east coast states are looking. Pulling te virginia is very close. Pretty much a threeway time. State that has upper middleclass suburbs outside of washington. Area, heavily african americans. That speaks well for joe biden. Andsuburbanites africanamerican communities. Toth carolina, very close South Carolina. Everything indicates that california loves Bernie Sanders. Californiansof voted early. That suggests that this last little bump that biden add may not affect the california vote that much. Emily when i voted this morning in person, there was not a line. Mike bloomberg said today that he thinks the only way forward is a contested defection contested convention. Like . Oes that look wendy what bloomberg said was the only way forward for him was a contention that was a convention. That he thinks. Lets say tonight that Bernie Sanders gets 500, 600, 700 delegates. Joe biden gets 300 and something. Who knows. That would mean that no one has enough to actually get nomination outright there are a lot of states to vote. If it remains closed, remains close, we would go to milwaukee in july. At 20 delegates that he got in iowa and new hampshire. They would all have to decide what they want to do. 1952, aave had since fourday infomercial where we crowned the nominee that we all knew would be the nominee. That may not happen this year. I am reminded of 2016 when the republicans had a front runner that many of them did not think was acceptable, and now he is president. Many are saying the same about Bernie Sanders. Wendy that is true. That is what circling the wagons on joe biden has been. Many in democratic leadership are worried that Bernie Sanders with his very progressive policies cannot beat donald trump. Only liberal democrats will vote to him and that independents and moderates who do not like the president very much cant bring themselves to vote for a socialist. They would traverse someone moderate, they would prefer someone moderate like joe biden. But people vote, not the democratic leadership. Bernie sanders may have an insurmountable lead after tonight. Paul thanks so much for joining us. You can tune in to our special coverage for super tuesday. Live analysis from 7 00 p. M. Eastern, 8 00 a. M. In hong kong. This is bloomberg. Paul welcome back to Bloomberg Markets. Lets take a look at those markets. , recoveringtrading some of those early losses that we saw, currently on currently off 0. 4 . Poised to sinkey by 0. 3 . Lets take a quick look at currencies today. We are seeing the aussie dollar put on some gains. The reserve bank of australia cut the cash rate. Gdp numbers in a moment and we will address all of that with our next guest in a moment. This is bloomberg. Paul welcome back to Bloomberg Markets. Im paul allen with emily chang in San Francisco. Lets check in with the first word news. Ritika the International Monetary fund and world bank have decided that upcoming meeting will be held in a virtual format due to the coronavirus. It is committed to productive dialogue that will use possible Digital Tools to host the annual talks. The meeting officially takes place in washington near the white house and scheduled for the middle of next month. New satellite images suggest china could be picking up after disruption from the coronavirus. The data shows nitrogen dioxide levels are rising across the mainland, which implies rising burning of fossil fuels. Levels that fell in february after authorities locked down millions of workers. Super tuesday is here after withdrawal of Amy Klobuchar and Pete Buttigieg. It is now down to four main candidates Elizabeth Warren, Bernie Sanders, joe biden, and Michael Bloomberg who was a Majority Shareholder of our parent company. It is the biggest day of the democratic president ial race. Primaries in 14 states from california to texas. You can see it all here on bloomberg tv. Our special coverage begins at 7 00 p. M. New york, 8 00 a. M. Hong kong. The sister of north Korean Leader kim jongun has made her first known official comments, slamming the south. Is believed to be in her early 30s and has accompanied her brother several times. The public release of those comments indicate her political status has been further elevated. Global news 24 hours a day on air and on quicktake five bloomberg, powered by more than 27 hundred journalists and analysts. Im riddick tika gupta. Emily markets in asia look set to follow wall street lower, while stocks slumped even after an emergency rate cut by the fed. Lets bring in david inglis. Why do you think this rate cut was not enough to boost sentiment . David great question. It is a question that a lot of banks right now perhaps talking about as asia wakes up during the morning calls as well. What i simply say is it obviously didnt work today. Whether or not it works the next couple of days, couple of weeks, we dont know, but i would say the bar to make that determination would really so much if markets rall