A Global Travel slow down sends shock waves around the industry. I think the airlines will fail. This is a huge amount of Money Airlines will lose. In the u. S. Politics, super tuesday shakes up the race for the democratic president ial nomination. This is a big night for joe biden who beat expectations. The jobs report tops the week. The economic base is strong, the fundamentals are strong. Exclusive confirmation with the ceo of nissan. He said job one is to listen and learn. Its important for me to know 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 interviews from Bloomberg Television around the world. Lets start with headlines. With cases of coronavirus mounting and equity markets coming off their worst week since 2008, investors were already on edge. Weak Economic Data from china did not help. Investors racing for more market turmoil. Manufacturing activity in china falling to the lowest level on record in february. Pmi data way worse than we were expecting. Give us the breakdown. Records tumbling in china. 40. 3 was the number we got. We have never seen that low since the series started. The official number we got saturday, that also came in well below the estimates. Its about 35. 7. Nonmanufacturing, so services and construction, 29. 6, another record low. The worst rout showing a bit of signs of causing this month this month prompted by optimism that Central Banks will once again save the day. In japan the boj offered to buy 4. 6 billion of sovereign debt. When you look at what i a lot of banks are doing, are they saying a recession is likely. Certainly, the financial markets, turmoil of last week in what you are seeing is Central Banks is that signal alert. We get it. We are on it. It looks like we are going to get a meeting tomorrow. There may be monetary action as well. There is nothing that cheaper money can do to cure any of us from a respiratory virus, but we have had an asset price shock. Central banks can attempt to address that and they probably should. That is what the markets want to hear. Quite a rally in the market today. 4. 6 on the s p. Four more patients have died in the american state of washington. A disease expert says the coronavirus is likely to become a pandemic. The World Economy faces its greatest danger since the financial crisis. The reserve bank of australia cut rates as widely expected by. 25 . G7 finance leaders to discuss the response to the coronavirus impact, promising to act if but seri necessary, making no promises. Very little happened compared to market expectations. The g7 came out and said they would use all appropriate policy tools to achieve sustainable growth. They did not say what those tools are. They did not sake when they would be applied. Say when they would be applied. A market that had come into the morning expecting some announcement of rate cuts for he promised to cut rates is disappointed. The fed made an emergency benchmark rate cut of 50 basis points and says the virus poses evolving risks. We are now seeing positive markets. What prompted this rate cut . We have a combination of a supply and demand shock here. The best thing is to throw strong medicine at it. Take theoing to emergency move, you might as well do a bigger step rather than a smaller step. We have seen a broader spread of the virus. We have seen it spread here in the United States. We saw a risk to the outlook for the economy and chose to act. I think the market was going to do what was going to do today whether or not the fed acted. I see a decline from where we are. When i turn to the bond market, i believe that our target of 25 basis points on the 10year note and 1 on the long bond are inevitable at this point. U. S. Treasury 10 year yields falling below 1 for the First Time Ever on those virus fears. The market thanks the fed knows something that everybody else does not. That is a reason why you have 10 year yields below 1 and equities falling off a cliff. Joe biden performing well on super tuesday. Bidens win puts him in a fight with Bernie Sanders. Just a few days ago, the press and the pendants declared our campaign dead. This is a big night for as President Joe Biden who was able to pick off texas in the super tuesday prize. It is not over yet. This fight becomes a twoperson race. We have Michael Bloomberg the founder and majority owner of bloomberg, he is pulling out. And he is addressing joe biden. We have seen since South Carolina the coming together of the democratic establishment, the center of the Democratic Party rallying around bidens campaign. It is not over yet. One week from now a lot of big states and this endorsement will help a great deal. The bank of canada following the United States said cutting Interest Rates by half a percent as the coronavirus darkens the economic outlook. Officials saying they would act again to reduce rates if necessary. Is a pretty dramatic reversal. He was one of the few central bankers who did not cut Interest Rates last year but clearly the concerns around coronavirus, the concerns around the Global Economic outlook have now begun to outweigh any Financial Stability concerns. Capitol hill negotiators have agreed on a 7. 8 billion spending bill to fund the response to the coronavirus outbreak. The bill provides much more funding than President Trump requested last week. Spending bill and stimulus. Stocks rally, bonds rally on the hope the government will fight the coronavirus. Havent we seen this movie before . Up 4 today. On balance, we are higher than we were on friday, but it has been a bumpy ride. It is going to remain a bumpy ride. There is still so much uncertainty out there. I find it difficult to credit we are going to ascend. Opec ministers conclude their meeting in vienna, agreeing to a production cut. Russia not get on board. One and a half million barrels. We do not know that the russians are on board with this. Some of these groups have been shouldering the burden. Wealthy the russians come on board . The russian minister arrived tomorrow. Maybe that is when the real how much will the russians be prepared to do . Theyve got to do something large in size and substance. Stocks resume their slide, bonds continued to bounce strongly. The 10 year yield, 12 basis points lower. Hsbc has partially evacuated its london offices. This was after a member of their staff tested positive for the virus. Cases globally continue to rise. There is no certain amount of money you can spend on the fiscal side or Interest Rate cut you can do on the monetary side that will solve this problem. What is more needed is, get those test gets out there. Lets do the blocking and tackling that government is supposed to be good at. Government needs to act like government when there is a crisis, not just sprinkling money here or cutting Interest Rates over there. There you have it. We are closing with losses of more than 3 on the dow. What are people moving into . Are they moving out of the market . What is the price action telling us . People are selling everything that is not nailed down and going to treasuries. It does not matter whether you offensive. Fensive or everything is going to get dumped. Treasury yields heading deeper into uncharted territory. Investors left reeling. After a monster payroll report does little to reset expectations. It matters to one extent. It tells you about the underlying resilience of the economy. It doesnt tell you what normally job reports tell you, which is what is ahead. It tells you ultimately about resilience. Economic base is strong. The fundamentals are strong. We are going to see some issues coming up from the coronavirus. I think for the United States this is going to be a temporary problem. We have seen the rate cuts. What is the Administration Working on . We are looking for targeted measures that will do the most good in a short period of time. Not large macro kind of solutions which do not help the economic incentives and dont have any permanent growth. We want to help folks as much as we can in a targeted way. Crude is also getting crushed. Russia is said to oppose the saudi led plan to cut production. Oil is down. Work is continuing, i can assure you. The meeting has been adjourned but work is continuing. , i would not go on the record saying we are. Basically thee markets entire confidence on profit outlook is going to be for this year, it is like you have a house of cards and you took out a bottom card. Everything else just sort of collapses. Still ahead, Robert Kaplan and a James Bullard on what comes next for the fed. Plus, an exclusive conversation with the new ceo task to turn around nissan. Coming up, more of the weeks top headlines. The imf creates a 50 billion fund to help nations deal with coronavirus. And hopes it will set the stage for a coordinated response. We must do more than do less than what is necessary. This is bloomberg best. Gupta. Tika lets continue our global tour of the weeks top stories. A new chapter in the brexit saga opened this week as the u. K. And e. U. Began talks to define their future trade relationship. British and european officials will start hashing out a postbrexit trade deal as negotiations on the future partnership formally opened in brussels. Sources have raised concerns that red lines on both sides could put the chance of an agreement to danger. No one is surprised to hear the Prime Minister says he can get a canadian style deal by the end of the year. He doesnt see a full need for convergence. June is when he says will be the deadline. He is prepared to walk away without a trade deal. Europeans have said they see this as a full package. Nothing will be agreed until everything is agreed. Turkey says it will not stand in the way of refugees. It is igniting fears another wave of migration could mean a delicate recovery for the region which is already grappling with the spread of the coronavirus. We have heard a lot of rhetoric on both sides. They have been some clashes on the border. The turkish side is saying that up to 100,000 refugees have left the country. Of course, it is unknown other whether they have actually managed to enter the border with bulgaria or whether they are stuck in no mans land. Erdogan has been threatening europe, saying it can no longer look after such a high number of refugees. Turkey is home to 3. 6 million refugees. More coming across the border. The imf held a News Conference earlier today on its projections of economic fallout from the coronavirus. Saying outcomes remain uncertain but it has seen a shift to a more adverse scenario. Besides the News Conference this morning you also had a conference call, the top central bankers and finance ministers. That includes steven mnuchin, mark carney from the bank of england. What was the tone on that call . Very serious. Commitment to take actions in a coordinated manner. We prioritized collectively with a great degree of consistency. First, Funding Health systems, fiscal measures that are well third, aargeted, and great deal of attention on liquidity. The message from the call was act, better to do more than to do less than necessary. South korea has joined italy and hong kong in announcing an economic aid passage. Package. You are seeing a flurry of new activity across asia and korea is just one that is newsworthy today. This budget is being rolled out on top of an annual budget that was already the biggest on record. They are planning to fund this stimulus with new government bonds. It looks like what others have already rolled out. Targeted Financial Support for the medical response as well as a package for businesses. And separately for households. Especially low income and to support jobs. Governments around the world have pledged more than 54 billion in the budget support to fight the spread of the coronavirus. Europes spending is confined to italy which has been hit hardest. We also see increases in france and belgium. The e. U. Is saying we are seeing coordination but at this point he to individual nation is doing its own testing. We are not seeing a coordinated response, at least not on the fiscal front. There is a new Prime Minister to succeed the one who abruptly resigned last week. He was sworn in after the king decided he was the politician who was most likely lead to the majority for the parliament. He gained power with the support of the party of x Prime Minister, who has been prosecutor over the 1mdb scandal. What does this mean . Is he out of the picture . He has never really out of the picture. In fact, he says he has the support to form a government. He says he has got 114 people that back him. That is two more than you need in the parliament. He wants a noconfidence vote called when parliament convenes. He was a bit taken aback by the kings decision. He expects to challenge it right away. Whether that means he goes to the king and says i should be Prime Minister or whether malaysia has to do asap election, that is where this thing looks like it is heading. Elizabeth warren ending her president ial campaign today. Speaking with reporters outside of her home in cambridge, massachusetts. An Important Development particularly where her supporters go. It is unclear who she will endorse. It is also unclear where her supporters will go. With her out of the race it becomes a twoperson race between Bernie Sanders and joe biden. You are watching bloomberg best. I am ritika gupta. This week nissan ceo machida sat down with Reed Stevenson for his First Exclusive interview since taking over the troubled automaker in december 2019. He says he plans to unveil a turnaround plan in may. In the meantime, he is he is focusing on cost cuts. When i look at the individual nissan ability, it is much more than what i know today. I am saying that once you have very Good Companies working directionally how we can set up properly, the result will be much better than what we are showing in terms of performance. In terms of cost cutting, what sort of investment to you think needs to be made . There are many kinds of areas. For instance, for our human assets. That is continuously what we have to seek for. When we talk about the new business and what direction nissan, the competency has to be enhanced. As you consider everything that is happened over the past 18 months, it is not an easy challenge for any executive. You have just come on at the end of 2019. Can you tell us about how you view the challenge and whether it has changed your view on whether success is reachable . It is probably going to be absolutely necessary, but was there anything that surprised you about the scale of the challenges facing you and the company . It is my first time to be a ceo. There were a lot of challenges that were unexpected. Day by day, i would like to further discuss with our employees to understand how they are feeling. It is important for me to know, transparently, what is going on from the older executives down to our employees. After having those united or something to be together, then i would believe the power would come from there. Once we have internal strength that would be deflected external. Coming up on bloomberg best. Hong kongs financial secretary explains why the government is handing out cash. The head of the India Central Bank says he has policy space to combat further shocks from the virus. And what a week it was for the fed. Perspective from two insiders up next. This is not about conditions now, not about the current stock market. We can move it any time in this kind of situation. This is bloomberg. Tv just keeps getting better. How you watch it does too. This is xfinity x1. Featuring the Emmy Awardwinning voice remote. Streaming Services Without changing passwords and input. Live sports with realtime stats and scores. Access to the most 4k content. And your movies and shows to go. The best tv experience is the best tv value. Xfinity x1. Simple. Easy. Awesome. Xfinity. The future of awesome. Welcome back to bloomberg best. Hong kong got another dose of gloomy Economic Data this week. Retail sales in january declined for the 12th straight month. Falling more than 21 by value. That comes days after the government announced it will give cash handouts to all adult citizens and permanent residents in a bid to stimulate the economy. We spoke with hong kongs financial secretary paul chan about those exceptional budgetary measures. Exceptional measures in exceptional circumstances. People are suffering, businesses are suffering. So, given still we have a pretty handsome fiscal reserve, i think spending some of the reserve to help people is in line with the expectation of the people. With a cash handout of this size, what will stop people from saving it in a bank or spending it overseas . People will spend depending on their circumstances. But we would encourage them to come out and spend, and encourage the business sector to come out with inventive programs to attract 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 could have used the same amount of money to help people in need . What do you say to people with that view . The people of hong kong like to have choice and given this difficult situation, i think th