I feel like we are playing exactly as we should. Global slowdowns shouldnt sent shock waves around the industry. This is a huge amount of Money Airlines will lose. Super tuesday shakes up the race for the democratic residential nomination president ial nomination. This is a big night for joe biden who eat expectations who beat expectations. The economic race is strong, the fundamentals in the economy are strong stop strong. He said job one is to listen and learn. Its important for me to know transparency what is going on down to our employees. It is all straight ahead on bloomberg best. Hello and welcome. This is bloomberg best. Your weekly review of the most important Business News, analysis and Bloomberg Television around the world. Lets stop start with a look at headlines. Global equity markets coming off their worst week since 2008, investors were already on edge and weak Economic Data from china did not help. Investors racing for more negativermoil after Coronavirus Development and according to the lowest level on record, its bikes around the world. Pmi data way worse than expecting. Got. 3 was what we startednever seen lows in the official number we got saturday, that also came in well below the estimates. Services 29ring, so point six, another record low. The worst showing a bit of science prompted by optimism that Central Banks will once again saved the day. He has signaled that he is prepared to cut rates. Of doj offered to buy 4. 6 sovereign debt. Certainly, the financial markets, turmoil of last week in what you are seeing is Central Banks on a friday that this it is alert that we get, very much in market stability. It looks like we will get a meeting tomorrow. There is nothing that they can do to cure any of us from the virus, but we have had an asset price shock in banks can attempt to dress that and they probably should and that is what the markets will want to hear. Markete a rally in the today, 4. 6 , the again we have on the dow, five point 1 , the since march 3, 2009. For more patients have died in the americas state of washington in a top disease expert says the coronavirus is likely to become a pandemic. The reserve bank of australia cut rates, expected a quarter of 1 . To discussce leaders the response to the coronavirus impact, promising by making no firm commitments. Marker expectations, the g7 use all so they would policy expositions for Downside Risk. They did not say when they would be applied and a market that had come into expecting an announcement of cut rate cuts is disappointed in that. Emergency made an rate cut up 50 basis once and says the virus involves risks. We are now seeing positive market. What prompted this rate cut . Strokebest thing is to throw strong medicine. If youre going to do an emergency move, you might as well do a bigger rather than a smaller step. We have seen spread of the virus in see it spread here a bit in the United States and we saw a risk for the outlook of the economy and chose to act. I think the market was going to do what was going to do whether or not the market was going to react or not. Turned to the bond market, i believe our target of 25 basis points a quarter of 1 on the long bone. 10 year yields following below for the First Time Ever on those fires fears. , one reason they have 10 year yields below 1 in equities falling off a cliff at the moment. Well oniden performing iner tuesday, which puts him what appears to be a straight fight with Bernie Sanders. For viceas a big night President Joe Biden who beat expectations and even able to pick off texas, but it is not over yet. Stop becomes it to this race becomes a twoperson race. Seen the coming together of the democratic establishment, the center of the ideological wing of the party. One week from now, a lot of important state states. Says it is of canada cutting Interest Rates by half a percent. Officials say they would act again to reduce rates of necessary. It is a pretty dramatic reversal. He was one of the few central bankers who did not cut industries last year, but clearly the concerns around the coronavirus have now begun to outweigh any Financial Stability concerns. Capitol hill negotiators have agreed on an emergency spending bill to fund the u. S. Government response to the coronavirus outbreak. It provides much more funding and President Trump requested last week. Stocks rallying, bonds rallying on hopes that governments will fight the coronavirus. We went down 2. 8 and on balance, we were higher than what we were on friday. I think it is safe to say it will continue to be a bumpy ride. Opec ministers conclude they are meeting in vienna. Also, the demand coronavirus, russia not on board. We dont know that the russians are on board. The have shown will russians come on board . The realt is when nittygritty of the kind of pain has become to discuss, how much will the russians be prepared to do . They have to do something. And continue to bounce slightly. Is partly evacuated and research tested positive for the virus. Me, there is no certain amount of money you can end on or the monetary side that will some this problem. What is more needed is get the test kits out there. Ands do the blocking tackling the government is supposed to get. The government needs to act like government when there is a crisis, not just sprinkling money your there. Bell, we areg closing with losses of more than are russell 2000 stop they moving out of the market, what is it telling you . People are selling and going to treasuries. It is not matter if you are offenses or defensive. Yields heading deeper into uncharted territory, investors reeling from a week of volatility after the payroll payroll report does little. Does it matter . It tells you about the underlying resilience of the economy for top it does not economy. It tells you ultimately about resilience. Strong innomic ace is the fundamentals of the economy are strong. We are going to see some issues coming up from the coronavirus, but i think it will be a temporary problem. The Administration Working on to complement that . We are looking for targeted measures that will do the most good in a short time, not large macro kind of solutions which dont have economic incentives and no permanent growth. We want to get through this and help folks as much as we can in a targeted way. Oppose theaid to plan to cut production, oil down seven plus percent. Work is continuing i can assure you. Like we might be hitting a bottom for stocks. Are we . I would not want to go on record saying we are. When you remove the markets entire confidence of what this outlook will be, it is like you have a house of cards. Everything collapses on top of that. Still ahead, as we review the week, Robert Kaplan on what comes next for the fed. Plus, initiative conversation with a new seo. And coming up, for the weeks top headlines. Creates a 50 billion fund to help the nation deal with coronavirus and set the stage for a coordinated global fund. They would do less than necessary. This is bloomberg best. Lets continue our global tour of the weeks top stories in business, finance and politics. A new chapter in the brexit begin as the u. K. And eu talks to define their future trade relationship. British and European Union officials will start hashing out a posttrade deal as negotiations of the future Partnership Open in brussels and bloomberg sources raised concerns that red lines on both sides could put the agreement in danger by early april. No one is surprised to hear it. He says he does not see a full need for convergence when you look at the european rules, june is what he said will be the deadline and is prepared to walk away without a trade deal if that is what it takes. They say nothing will be agreed on until everything is a great. Turkey says it wont stand in the way of refugees. Way migration could see covering which is artie grappling. From lot of heated words president erdogan and concerns about what this is going to do and some classes on the border. The turkey side is saying up to 100,000 refugees have left the country, but it is unknown if they actually entered the border with greece and bulgaria or whether they are stuck in no mans land. For months now, they have been threatening europe with opening its borders, saying it can no longer look up for a high number more isees because coming across the border due to the conflict in the is would province. The International Monetary fund held a News Conference on its projections of economic fallout from the rented the coronavirus. As i understand it, beside the News Conference, you also had a Conference Call with the top central bankers which includes, steve mnuchin, for example and we had met in regard as well. What was the tone on the call . Very serious commitment to take actions in a coordinated manner. Collectively first with the health system, the measures that are well targeted, third, attention on liquidity, so the message was better to do less thanto do necessary. South korea has joined the ands of italy in announcing economic aid package, including the you are seeing at and this bigbudget is being rolled out on top of an annual budget that was already the biggest on record. Really, it looks a lot like what others have already rolled out, targeted Financial Support for the response as well as the packages for businesses and households, especially low income and jobs. Pledged morehave than 50 billion to fight the coronavirus. Almost been entirely confined to italy. The eu is saying we are seeing ordination between member states, but each individual nations doing their own testing and own rules. After a week of political turmoil, a new Prime Minister who will that abruptly resigned last week after he decided he was the politician most likely to leave a majority in parliament. The extra minister has been the prosecutor over the 1mdb scandal. It was never really out of the picture and says he has the support to form a government. It is to more than you need in he wantst, so confidence right when Parliament Convenes again. Whether that means they go inside i could form a government, i can be minister or they go to a snap election, that is the way this things this thing looks like its heading. Warning Elizabeth Elizabeth warren ending her campaign today. An Important Development where herly were supporters go. It is unclear who she will endorse and unclear where her supporters will go. It now becomes a twoperson race mccollum between Bernie Sanders and joe biden. You are watching bloomberg best. Week, nissan ceo said down with Reed Stevenson for his First Exclusive interview since taking over the troubled automaker. He says he plans to unveil a turnaround plan in may and in the meantime, he is focusing on cost cuts while he works to rebuild the companys culture. Individual, ite is much more than what i know, so therefore, i and saying i the direction we can set up properly will be much better than what we are showing. Apart from costcutting, what investment do you think needs to be made in the business . Investment,lk about for instance, our human asset, that is something we have to continue and when we talk about the new business and the direction, the competency has to be inhouse. As you consider everything that happened with nissan over in past 18 months, it is not easy challenge for any executive and you have come on at the end of 2019, can you tell us a little bit about how you view the challenge and whether it has changed your view on whether success is reachable or not . It is probably going to be absolutely nested there he, but was there anything that surprise do about the scale of the challenges facing you and the company right now . It is my first time in the field so a lot of challenges unexpected, but day by day, i would like to further discuss with a understand how they are. Eeling about the company it is important for me to know transparently what is really having thoseafter or something to be together, i would believe the power comes from their. Strength woulder be [indiscernible] coming up, compelling conversations. Hong kongs financial secretary explains why the government is handing out cash in its latest budget. What a week it was for the fed, two important insiders next. Current not about the stock market. We can meet at any time and move at any time in this situation. This is bloomberg. When you move homes, you move more than just yourself. Thats why xfinity has made taking your internet and tv with you a breeze. Really . Yup. You can transfer your Service Online in about a minute. You can do that . Yeah. And with twohour Service Appointment windows, its all on your schedule. Awesome. So while moving may still come with its share of headaches. No kidding. Were doing all we can to make moving simple, easy, awesome. Go to xfinity. Com moving to get started. Beyond the routine checkups. Beyond the notsoroutine cases. Comcast business is helping doctors provide care in whole new ways. All working with a new generation of technologies powered by our gigspeed network. Because beyond technology. There is human ingenuity. Every day, comcast business is helping businesses go beyond the expected. To do the extraordinary. Take your business beyond. Bloombergback to best. Hong kong got another dose of gloomy Economic Data this week. Retail sales in january declared declined for the 12 straight month. That comes days after the government announced it will give cash handout to all adult citizens and permanent residents. We spoke with hong kongs financial secretary about the exceptional budgetary measures. Measures inal exceptional circumstances. People are suffering, businesses are suffering. Have a pretty handsome fiscal reserve, i think spending some of that help businesses and help people is in line with the expectation of the people. With a cash handout of this stop people from saving this in a bank or spending it overseas . They will spend depending on their circumstances. But we would encourage them to come out and spend, and encourage the business sector to inventive programs to tempt people to come out. What do you say to economists that say this cash handout is not targeted enough, that it is a drop in the ocean for many and you can use the same amount of money to help people in need . What do you say with to people with that view . People in hong kong like to have choice and in a difficult situation, i think individual circumstances very. Vary. By encouraging people to come out and spend at businesses and encouraging businesses to have incentive programs, i think of course,d depending on their own personal circumstances, would support us and hong kong. Around thetral banks world consider policy responses to the coronavirus, the governor of the reserve bank of india spoke exclusively with bloomberg this week. That he expects to work with other Central Banks on a coordinated action in coming months, and also believes the r. B. I. Has room to cut rate if Indias Economic situation warrants it. In a situation like we have today, coordinated policy action has become that much more important. One of the things we might be looking at is inflation coming down quite sharply from the relatively high january number, maybe even falling by a full percentage point between january and february. Does that take some of the pressure off and give you more room to respond . [indiscernible] decisions outside Monetary Policy. Cut, wenterest rate have said clearly we want a policy committee. Ive also said it in my minutes. There is space for another rate cut. That is one option available. Another option is in terms of supporting the markets by liquidity, creating confidence, or using various other tools or instruments to deal with emerging challenges. Ready. Perhaps the most consequential news of the week was the fed decision to cut rates by 50 points. Next weeks before the scheduled fmoc meeting. Movelked about the unusual and the path ahead. Lets talk with the Dallas Federal Reserve president , Robert Kaplan. If you had asked me two weeks ago, i was saying publicly, lets see how this unfolds and i will make a judgment at the meeting. It is too early to comment. What happened once the virus got to south korea and then to italy and it was clear there were diagnosed cases in the u. S. , for me at least, the probability of a material deterioration in the u. S. Economic outlook, the probability of that increased to a point where i came to the view that we would need to take action at the fmoc meeting. Then i felt that the situation was changing so rapidly that i thought it would be wiser, and i will explain a little bit why, to act now and only and boldly where it could make an impact. It will not help with the number of diagnosed cases and it will not get people to want to go out. It will not do anything about the containment reaction if the casessis the diagnosed spikes. If we have a severe slowing in the economy that lasts for eight period of time, accompanying that is likely to be tightening in financial conditions. What Monetary Policy can do is if we go into this with somewhat easier conditions, i thought and i still believe it will help to moderate or mitigate some of that inevitable tightening of financial conditions that will happen as a result of this spike in cases and the containment. So the judgment about the wisdom of this is more looking ahead to what is going to happen in the next 68 weeks, not what is going on right now. In that regard, i feel as confident today that we did the right thing as i did on tuesday, and i will say one other thing a number o