Transcripts For BLOOMBERG Bloomberg Markets 20240713

Deb. I want to talk very briefly about two or three things. First, the issue of testing and how that has changed the complexion of the approach we are going to be able to take. Testing was an issue, many questions of testing in this room for number of times. Now that we literally have hundreds and hundreds of thousands of testing out there, there are a few things we could do with that. One of the things is when we make policy of what we are going to be doing with the rest of the country, particularly those areas that are not hotspots, we need to know what the infection is there. We need to put a light on those dark spots that we dont know. We have to act policy wise on data. We are going to be getting more data, a lot more data. The other thing is the areas of the country that are not hotspots, that are not going through the terrible ordeal that new york and california and Washington State are going through, they still have a window of significant degree of being able to contain. In other words, when you test, you find somebody, you isolate them, you get them out of circulation under the contact tracing. When you have a big operate, it is tough to do anything but mitigation. We have an opportunity that we have the availability of testing to do that. It will be hearing more about how we can form where we are going because we have the ability to test. The second thing, i want to reiterate what the doctor said about new york. It is a very serious situation. They have suffered terribly through no fault of their own, but what we are seeing now is understandably, people want to get out of new york. They are going to florida, they are going to one island, they are going to different places. The idea is you look at the statistics is disturbing about one per thousand of these in vigils are infected. That is about a twotime desk eight to 10 times more than other areas. When they go to another case, for their own safety, they have to be careful, monitor themselves. If they get sick, bring it to the attention of a physician. Also, the idea about self isolating for two weeks will be very important because we dont want that to be another feeding point for the rest of the country wherever they go. Thirdly, just one comment about drugs and the testing of drugs. You heard yesterday about drugs isng out there that prescribed to give people hope of something that has not been definitively proven to work but have some hope. I dont want anybody to forget that simultaneously with are doing that, we are also doing randomized Clinical Trials on a number of candidates. Who have heard about candidates, but there are others in the pipeline. We will be able to design the study and over a period of time, particularly as we have so many infections, we will be able to determine definitively are these a and are these effective . Serum. Rugs, all of these are in the pipeline up to go into clinical trial. I will stop there. In listening to the White House Press briefing on all things coronavirus. Want to recap some of the headlines we have been getting. Not only have you been hearing from dr. Fauci, you also heard from President Trump as well. Trump sing the ultimate goal is to ease the economic guidelines, start to open things up. He would like to see things open up by easter but he will continuing to be evaluating the data and he will not hesitate to invoke the defense production act. Moving on from some of the human toll and tragedy we have seen onto some of the economic stimulus, trump saying senators are hopeful they will get a vote soon on stimulus, that they are close to getting a fair deal. Saying it is a health crisis, not a financial crisis, but every decision being made will be grounded in the health of citizens. Finally, for anyone here in my home city of new york, we are getting an interesting headline that anyone who left new york city should selfquarantine for 14 days. Some of the doctors said you are seeing increasing cases in long island, which is strong evidence people are leaving new york to get up the hotspot. Again, we want to fold in how all of these headlines, what that means for your market. We had a phenomenal day in the equity markets on tuesday. The dow posting its best day since 1933. The russell posting its best day since 2009. Again, nine, 10 gains. Futures as we head into tuesday evening trading in new york city, just slightly positive. All of the hopes within the market waiting on that stimulus deal, fluctuating between positive and negative. I want to take a look at the oil market, because the Energy Sector did have its best day since 2008 as the Energy Sector was up 13 on tuesday. Crude continuing to advance just above 24 a barrel. I do want to see how things are shaping up over in asian trading as we have started to get some of those markets to come online. Sophie kamaruddin, how is it looking . Sophie asian futures are hinting against in advance of more than 5 for sydney stocks even as australia widens its lockdown. Kiwi shares extending tuesdays rally with february traded out this morning, bigger than forecast. On the forecast from new zealand, the Central Banks first bond buying as part of its qe program due later this morning. On the central bank front, thailand excited to ease again after fridays emergency rate cut. Asian stocks set to extend gains after the best session after kospi2009, led by the with a list. With that coming through for credit markets, that is relieving stress. We are seeing wrist gauges easing with dollar notes taking in asia as well. An eightyear high, lingering caution of rates picking up in default while companies are seeking lifelines. Gonewide, borrowers have billions of dollars of new loans. The corporate cartage, more fallen angels are likely with players like Apollo Global ready to scoop up distressed assets. Haidi Sophie Kamaruddin in hong kong with a set up the asian trade today. We have been hearing from President Trump holding the News Conference with his virus task force. Also hearing from the doctors on the task force as well as fauci and deborah birx about where we are in terms of the u. S. Infections. President trump choosing to reiterate he thinks an easter reopening is still possible. Our Congress Editor joe has the very latest out of d. C. It is interesting as we continue to wait for progress on whether this spending bill gets passed. President trump saying it will be very soon. You are continuing to hear this divergence between when the president and his team want the economy to come back online. And you listen to the likes of dr. Birx and dr. Facui saying fauci saying they are still try to get on top of testing. Joe that is one of the points that dr. Fauci made. They have to catch up on the backlog of testing. That will inevitably spike the number of cases. Very interesting comments about new york city. Saying they are deeply concerned about the spread of the virus in new york city and all the cases that have been coming out of there. And encouraging anyone who has been new york city to selfquarantine. So, all this is leading up to some sort of spike. The president remains hopeful that there can be at least some isolation or selective isolation so that the economy can start moving again sometime around easter holiday. But, it remains to be seen whether they will take any formal steps to that end. Taylor we did hear from Chuck Schumer saying earlier today we are at the two yard goal line in terms of getting this deal done. That has been multiple hours now. We are heading into 6 00 p. M. On the east coast. I have to ask where is the stimulus deal . Joe it has been fairly quiet right now out of the capital. That is possibly a good sign. We understand that are a few issues that they are putting together. They are trying to get everyones agreement. They are still hopeful that they are able to do it by this evening, possibly release legislative text, and potentially vote in the senate on it. That would be a very ambitious schedule, but it is possible. The question has to go to the house. Nancy pelosi has been trying to there toer democrats be able to get this past with unanimous consent. That may be difficult. She has some dissenters within the democrats and it is not clear whether all republicans will be on board with that. It would have to be essentially a unanimous approval for it. This could move very rapidly once it comes out, but there are feet,a couple of six appropriately socially distance from the end. Taylor joe in washington. Even with todays surgeon u. S. Stocks, some investors are saying it is not time to dive back into the markets. Carol pepper is the ceo of Pepper International and has a game plan. The first thing that stuck out to me in your note is that you have gone to cash. Im curious, going to cash means you realize some of the losses we have seen in the last month. How do you feel of being in cash at this point . Carol i feel very good being in cash at this point because they are going to be phenomenal opportunities for stimulus finalized. If we look forward a month or two, even three weeks, think things look a lot more positive. Quite frankly, for a lot of people, this was a very rocky ride. We got out several weeks ago so we were cushioned from a lot of the worst of it when the coronavirus information for started to come out. We moved to cash before the very bloody losses that occurred in the last week or so. These were some portfolios. For other portfolios that are longterm, we let it ride because we have been through this before. There has been lots of historical precedence. The crash of 1987 was my first crash. Certainly the crash of 2008. If you are willing to sit through it, you will do very well when you come out. Taylor what did you need to see to get excited about dipping your toes back in . Carol i think we need to see a slowing of the virus peaking. A slowing of the virus cases and a peaking in the United States until then, we will have these huge relief rally days and then we will get is carried in the market plunging down again. I dont think we have at the bottom in the market, but i have a lot of wonderful names that i am watching and i certainly think that our names come even from last night to today, i am laughing at the notes i sent you. Stocks like jp morgan were up tremendously today but that is a very solid bank that will benefit from the stimulus activity and will do very well. Tech has held up the best. That does not surprise me at all because, again, the world has gone virtual and we are all watching netflix. Not surprised there. Haidi i want to talk about this chart which you may or may not be able to see but for the benefit of our viewers, it takes a look at the lag when it comes to this selloff for hang sox. This is the ny saying index. Not taking a long time to climb above the 200 day moving average. Largely because it was 40 above it as of last month. Does this kind of recovery and the pace we are seeing suggest there is greater momentum to come not just for the likes of netflix, but protect overall . Carol definitely. Tech is interesting. Tech is not are most able sector. It is the sector that will be the least effective as we are seeing because even during a virus pandemic, people are using their technology. It is the new, most a steady sector to look at ironically. It will perform the best in driving markets and cushioning in dropping markets. I have been in amazon since it came out. I remember the ipo. I think amazon will continue to dominate and will continue to do extreme he well in this market. If you look at amazon alone, it barely blinked during some of the big falls. That will be one of the stocks to recover most strongly and take advantage of this as we move forward. Taylor is there anything upper district that you are opportunistic about with the coronavirus related space . Haidi a great deal of excitement over biotech, pharmaceuticals, even the likes of companies that manufacture cleaning agents. Is there anything there that interest you at this point . Carol i think it is too early to tell how we are going to defeat this virus. I have a feeling that in the end , it will become a generic drug so you could say, ok, this will eventually become a generic so get excited about the generics. I think it is a little bit early. Again, i am much more interested in Airline Stocks. Buy delta while it is down. That will come back. Things you know that will come back. Microsoft. Companies that are very strong and it is not hard to see where the winter or loser will be. The market leaders because the home market went down are great places if you want to dip your toes back in or you think this is a great day not today, but the next panic day you want to buy something. Whos is going to win in terms of fixing this . Maybe you want to buy pge for some cleaning products or some thing like that. That is a shortterm thing. I think the market leaders overall remain the market leaders. When the economy recovers and we go through, get back to where we were and start climbing again, those leaders will do extremely well and you will be happy when you got in when you did. Haidi lots of opportunities, no doubt, given we know bear markets to produce sensational rallies. Great to have you, carol pepper. We do have a big interview coming up in the next few hours. We will be speaking to bank of singapore ceo about the impact of the coronavirus on the city. That will be at 10 a. M. Hong kong time, 1 p. M. In sydney. Still ahead, we will take a look at the current state when it comes to the coronavirus testing situation in australia with john kelly. His company is working towards mass production of rapid self tests. Taylor first, it is all about the olympics. They are off. After weeks of debate, the ioc and tokyo organizers agreed to postpone. The details ahead. This is bloomberg. Taylor after weeks of debate, the olympics have finally been postponed. The ioc and tokyo organizers have agreed to delay the games for a year, although thy insist they insisted is not a cancellation. We all knew it was coming. It was just a matter of waiting for the official word. What is your take on the ground . My take all along is there is no way they can hold these games. The only two groups that were pushing for it to continue where the japanese, of course, the governor of tokyo and shinzo abe. They had a lot of little capital on holding these olympics in 2020. The ioc want to keep the momentum of the summer games going, but everything was lining up against them obviously. This is not a cancellation. It is going to be a postponement until sometime in 2021. Shinzo abe telling reporters after he hung up on the phone call with the head of the ioc that it will likely be in the summer. 365 days there about delay. It means a lot of logistical headaches and pain for sponsors and the billions and billions of dollars that have been spent for 2020 marketing. This is the Worlds Largest marketing event. Given the dire situation around the world, now 417,000 confirmed cases. 18,614 worldwide deaths and counting. Keep in mind, the World Health Organization say we went from zero infections to 100000 and 64 days. The next 100,000 in 11 days. The next 100000 and four days. And counting,000 accelerating still. Japan is not a big problem. S, butave 1100 or so case worldwide, it is a big problem. You cannot hold the games four months from now. Haidi this looking at those staggering numbers, an impossibility. Member, from the ioc talking about really the waves of Economic Impact. Lets take a listen. Very big. Very big. Damage, of course, for the bomb. S is like a it shows how much it has damaged on the water. It is 10 the water, times more damage. Year. Ly this haidi we know that the Tokyo Olympics was a great part of the japanese economy which has struggled to make much progress on the economic recovery despite monetary and fiscal policies. He is right in terms of it is really hard to gauge at the moment, the various industries and the Economic Impact we are going to see from this delay. Stephen the japanese by most accounts have spent 26 billion plus to host these games. Goldman sachs says that the games are canceled, it could have indirect and direct consequences on everyone expecting some sort of windfall. Upwards of 60 billion of the games are canceled. Now the estimates are coming up from goldman and University Preference in japan, 6 billion damage for the delay of the game. Of course, japan was looking at seeing the games, just like beijing was looking at 2008 as a coming up already. Japan was seeing this as their reemergence as an economic power from basically two to three decades of malaise. Also, rebounding from the 2011 Nuclear Fiasco and earthquake. Now, 2021, they are still going to call it tokyo 2020 as a branding exercise. Tokyo 2020 one is more about the world coming up and showing resilience. Haidi i thought that was interesting, keeping that branding. Stephen engle there on the delayed tokyo 2020 olympics. The coronavirus continues in europe with deaths climbing in italy and spain, while on the economic front, finance ministers are inching closer to a financial package. Ros mathieson in london. This is a lesson in how unpredictable and how powerful this virus is. We had a couple of good days when it comes to the data out of italy and then we were hit by the secondmost deadly day when it comes to the italian case situation. Rosalind thats right. What it is showing his governments are still grappling with how to contain this thing. We saw the death toll rise again after the brief slowdown that you mentioned. The death toll at 743 today, with nearly 72,000 infections in total and 514 in spain. The government now, as horrible as it sounds, they may need to wait for the containment measures to have the desired effect, for the virus to catch up to the fact it is being boxed in. Or the countries need to do more. For example, the italy cabinet has increased fines for those breaking the rules on the lockdown. They may extend that. While here in the u. K. , Boris Johnson has set even more lockdown measures could happen if people do not comply with what is already in place. We expect that to start picking up. In terms of enforcement after another day today of many people being out and about in london parks, relaxing and reading in the parks. There has been warnings that those lockdowns could be extended. That is obviously a key contrast to the u. S. Where President Donald Trump is saying he essentially wants things back to normal around easter time and the u. S. To be fully open again. Taylor we spoke here 24 hours ago and germany said they were ready to have a rescue plan to help fight the virus in italy. What are the details do we know about a potential fiscal package for italy . Rosalind well, it was interesting because we had a euro area finance ministers meeting today. In the end, they essentially kicked the can down the road. They have a meeting on thursday to make specific decisions on a rescue package for member states. Right now, the discussion seems to be about overall lines for every state in the eu to be able to tap european war chest. 410 billion euros. The question is under what conditions and how much of their gdp can they borrow . Italy is saying it is not require individual attention, even as states like germany said it may be needed down the track. That is the thing that the leaders will have to discuss on thursday, followed by a meeting the same day virtually of the group 20 leaders. The finance leaders have met already. People on thursday will be wanting more. Taylor bloombergs executive editor ros mathieson. A quick check of the latest business flash headlines of what else is going on the world. Saying it is on the men after the coronavirus shut down. Inventories barring a Key Construction product have fallen for the First Time Since november easing and potentially marking a turning point. Inventories are still higher than usual for this time of year, but the fall suggests Building Activity is picking up. General motors is joining rival tod in topping credit fines bolster cash reserves but it is signaling its dividend. The 16 billion drawdown aims to maintain initial flexibly and will supplement a similar announcement that gm expects to have at the end of the month. Cl mary says the move will bolster gms general position. Pledging aves are quarter of their pay hit by falling demand in the coronavirus pandemic. It is redirecting its budget for salary increases, freeing up about 6 million for staff and partners. Gojek is working with a telemedicine app for an online consultation service. Coming up, more on the tokyo 2020 delay. On members give us insight the decision on whether the move is too late. This is bloomberg. [ one more time by daft punk ] woo [ laughing ] woo play pop music no way dude, play rock music yeah woah no matter what music you like, stream it now on pandora with xfinity. And dont forget to catch trolls world tour. Lets party people one more time haidi it is 9 30 a. M. In sydney. Futures are looking pretty positive, taking the lead from wall street overnight. One of the best days ever. The best gain in 12 years, the dow jumping to post its biggest gain since 1933. We are looking over 6 when sydney start trading. Take a look at the set up with Sophie Kamaruddin. Soph . Sophie taking a look at u. S. Futures this morning. Early in asia trade, we are seeing fluctuation as we learn more about cash stimulus from the u. S. Alongside some more being taken regarding rising virus cases in new york in particular. Now checking on the mood and wellington. Kiwi stocks extending kiwi gains the kiwi dollar is holding 58 as the rbnz kick starts its qe program. It will be offering to buy 250 million kiwi dollars worth of 2025 bonds at the auction. We are excepting more fiscal announcements from new zealand as the country enters a fourweek lockdown from midnight tonight. In australia, yields have open higher and the aussie dollar is nearly oneweek high. Jumping to the terminal, we do have the bloomberg jp morgan currency asian currency index. We could see a further drop after breaking the 101 level. Could be looking to crack. Seeaw in 2008, 2009 if we the dollar continuing. That could reignite dollar strength. Taylor Sophie Kamaruddin on the markets. As we mentioned, the olympics have been delayed after weeks of debate. The International Olympic committee and tokyo organizers have agreed to postpone the game for a year. Viceng us is a former ioc president and a longtime member of the committee. Given your years of insight, just curious, what have the conversations been like in the past few days, in the past few weeks as you think about the athletes who are prepared for this, while also trying to keep everyone healthy . Then, also just thinking about what a sad time this is. What have those conversations been like . They have been difficult. Accounty taking into very much the impact on athletes. But as you find the virus , theding and the measures countermeasures being taken are interrupting all kinds of opportunities for training and contact and that sort of thing, it was becoming increasingly clear to a lot of athletes that ease up a little bit to justify going to tokyo in july of this year, a lot of the athletes were simply were not going to be out there people performance. They were concerned about that. We were concerned about the increase and the spread of the virus. We are in regular contact with the health organizations. It has not gotten to the it has got into the pandemic stage and it is accelerating, and accelerating at a rate the World Health Organization says this is not going to be under control by the end of july of this year and probably not by the end of the year. So, our recommendation is that you think about the canceling or postponing. Said you haveyou been hearing from athletes. Curious what your conversations have been like with some of the advertisers, the business people, tokyo itself who is not on the hook for what is going to be a very big cost here. Dick, are you still with us . Know, this is not unusual. As we continue to try to all work remotely, we are coming more and more into these areations where our guests joining us on skype. We will work hard to get dick back on the phone. I do want to get an update on the first word news with ritika. Ritika manufacturing data from ihs market suggests the Global Economy is taking a battering not seen in decades as restrictions on business and households strangle demand. The first major numbers for march indicate orders falling at record pace, with activity shrinking and confidence slumping. Governments have vowed support but the data says deep global recession is almost inevitable. The coronavirus is tightening its grip on europe as italy reports a new rise in deaths and spain sees the highest number of fatalities in a signal day. 743 people died in italy on tuesday after two days of decline as it hope to the outbreak was coming under control. Active cases rose the least in a week, indicating the severe curve on movement are slowing the spread. The Aviation Industry is one of the most affected sectors hit by the virus and more than doubling the forecast of potential losses. Airlines could lose at least 250 billion in revenue this year, which will threaten their very survival. Earlier this month, iata said only about 30 carriers are healthy enough to ride out the storm of plummeting travel demand. Images from the new york space agency shows a significant reduction in pollution across northern italy and the region began shutting down for the coronavirus. The lockdown began more than two weeks ago with 62 Million People order to stay at home apart from essential travel. Most cars are off the road and factories are shut, with italy the hardest hit country of the crisis so far. Global news 24 hours a day on air and on quicktake, powered by more than 2700 journalists and analysts in more than 120 countries. This is bloomberg. Taylor, haidi. Haidi coming up next, we will take a look at the state of coronavirus testing in australia with john kelly. He will be along with us to tell us how his company is trying to massproduce self kits. This is bloomberg. Haidi as countries around the globe struggle to stop the spread of the coronavirus, one thing has become abundantly clear which is the availability of testing being crucially important. Australian blood test maker Atomo Diagnostics is hoping to help. It is planning to use a fund to manufacture more rapid self tests for the coronavirus. Joining us is the founder and ceo john kelly. I want to start with your view as to what the current testing capability is in australia because we heard from the Prime Minister and chief medical officer overnight saying compared to south korea, we are doing a lot more testing. In fact, really talking up how progressive and how capable the testing ability is an affiliate. Anecdotally coming here from so many people that even though there is Community Transmission going on, the barrier to get testing is still very high. What are your views . John i think the government in australia has been proactive in testing by International Standards which have been quite high. I think the challenges the Molecular Testing in laboratories is limited by the capacity of the machines and the availability. Theres a finite limit to how many tests can be done through pathology. That is where i think Rapid Testing can play an Important Role. Haidi tell me about the state of the relevant of the rapid test. We know they are how would it work for the coronavirus and how close are we as really the public and therapeutics Health Care Professionals are really helping for a magic answer to this . John the Technology Behind Rapid Testing has been around for quite a while. Over the last few months, diagnostic companies have been haveng rapidly to coronavirus antibody chemistry test onto the platform. They are going through emergency use approvals and evaluations. I think we will start to see them come to market quite quickly. Number ofship with a International Companies to bring some tests to market and in a matter of weeks, not months. Taylor how do these work . How quickly are we talking about in terms of getting rapid test results back . Test the antibody rapid typically delivers results within 10 to 15 minutes. A very quick care test. Certainly it avoids the need for a return visit to a facility or a long wait. I think it is very important for edification and isolation. Taylor do you think we could get mass testing not only in australia but in my usa as well . John i believe that is very much our goal. I think Health Care Providers see the benefit for identification and followup. Professional use and self tests. Also, by the World Health Organization. That easily supports covid19 testing. We want to bring it to market in volume as quickly as we can. Subject to approvals and what supply chains do. Taylor what do you need in order to bring it to market to really scale up . Do you need additional funding . Who are some of the partners you are speaking with . John we have been approached by diagnostic companies in china, europe and the u. S. We are working with several. We are scaling up capacity. We have 300,000 devices in stock. We are looking to quadruple our capacity through the year. We are working very actively to scale it up. We are limited by scale and we will be looking to move as fast as we can with the rampup of availability so we could partner with several Different Companies and different regions to make sure our awardwinning device can be available locally, not just in australia. Testing is pretty accurate, incredibly accurate, but it is also very labor and resource intensive and takes time. Hence, we have seen the hold up in a number of different countries. This is really helping Health Care Professional saying we need to test more quickly and widely. The rapid cell testing, how does it fit in terms of accuracy . Bigave had obviously the Success Stories like using at using just finger prick, a tiny amount of tissue to get accurate results. John Rapid Testing improved dramatically in the last couple of years. Our device removes a lot of the user error. 99. 8 effective for detection of positives. The results i have seen for covid19 rapid tests and the sensitivity ranges from the high 80 s to high 90 s. They are accurate. They have a slightly higher window of protection, which means for the first week, there is the likelihood that more missed positives. After that week, the accuracy is very robust. More importantly, the test can be deployed without the need for extensive equipment, without the need for Extensive Health care worker support. It is much more flexible solution to get into communitybased screening in clinic screenings. Interestings ontalso you are backed by the bill and Melinda Gates foundation. What have your conversations been like with their health initiative, with bill and Melinda Gates specifically . We know that bill has stepped down completely from microsofts board to focus on these philanthropic efforts. What have those conversations been like . Receivedhave grant support from our hiv selftest. Ongoing support from the Global Health investment fund. They are a managing partner. They have been very supportive of our efforts in Global Health and continue to be very supportive through this ipo process. With particular focus on our move into the deployment of our technology and covid19, to help the pandemic response. Haidi how close are we to being able to get a test for not just the infection, but immunity because that will be key Going Forward in terms of reopening the economy and getting people back to work safely. John one of the advantages of rapid ansi body tests is antibody response stays in the system long after the infection has been cleared. The problem with molecular tests is once the viral load in the body reduces, those tests become an effective. What antibody tests to is help screen for people who have been infected and possibly have immunity but were not symptomatically the time. I think it is very good for followup epidemiology and surveillance programs. How complex is the science at this point in terms of what we know about the coronavirus and what we dont know . Because it seems like it is a pretty moving target. Theres not a great deal of clarity on whether the 14 day isolation is necessarily sufficient given we have seen outlier cases where after 14 days, they are still infectious or have tested negative and ended up testing positive again. John i think the problem is peoples autoimmune response and antibody response varies greatly and some people are symptom that it much quicker and some people are not symptom medic at all. The 14 days, my understanding, as a point in the cycle to capture as many people as practical. There may be a few people that are beyond the 14 day window but i think 14 days is considered generally to be a workable number in terms of ensuring isolation. Haidi thank you so much for joining us. Best of luck. Atomo diagnostics founder and ceo john kelly. Coronavirus continue to sureg in australia, doubling to 2000 and that has been followed by Public Health measures to contain the spread. Paul allen the latest in sydney. How clear or unclear is the criticism has the messaging been around these new measures . Short of going to a full lockdown, it has been kind of incremental measures every couple of days. Paul yeah, it is like following a trail of breadcrumbs at the moment. The clarity has been unclear. For example, food courts are not limited to take out. People have been told to cancel family gatherings. Yet, inconsistencies continue to stand out. Scott, the Prime Minister, saying trips to the barber are ok but you need to practice social distancing. Not quite sure how social distancing is going to work while you are getting a haircut. Weddings have been to five people. For example, boot camp fitness classes up to 10 people are still ok. The Prime Minister was challenged on this at the press coverage last night and got quite defensive. He said he did not want to destroy peoples livelihoods and businesses. The lack of clarity around this. He went on to describe every job as being inessential worker. Thats there is confusion of who goes to work and who should stay home when we have the Prime Minister saying things like all jobs are essential. Urging australians to follow the advice, but the advice compared to a country like new zealand is very clear. New zealand, essential services are medical supplies, supermarkets, service stations, pharmacies and that is it. The message is if you are leaving your house, you go only to these places and you dont have anyone to your home. That is an example of clear messaging. Haidi in terms of guidelines on social distancing, that has come under criticism for being unclear as well. You can tell when you look out into the street, the parks, it is crowded with people. People standing next to each other when they are waiting for their takeaway meals and coffee. Is that the clarity that is required . Paul no, and i have a park across the street from me at the moment and i can see people gathered walking their dogs and so on. Carrying takeaway coffees. There is a lack of this sort of thing being put into practice. A couple of days ago when we were having this conversation, i saw a delivery to my neighbors house. To your point on a lack of clarity, people dont seem to be behaving in a way that the government would like because the way the government would like them to behave continues to be extremely unclear. Taylor at least in the u. S. , you are hearing a murmur into a little bit of a vomiting out within the equity indices. In the asx, near decade lows. What are some of the strategies and Research Reports have said to you about what it could be a time to start buying . Paul a very interesting comment from the founder of the Investment Firm Research Affiliates which advises pimco. He is based in miami. Talk to yes, it is star start meddling around buying. He likes australia because of the dividend yield here. The question is when do you start buying . Ron says when you start buying around peak fear. We have a chart on the terminal, if you have the terminal available to you. It shows the selling strength does continue to outweigh buying strength. So judging how long this moment of peak fear is going to last is really the trick. Likesms of buying, ron asx listed stocks mainly because the dividend yield which is compares at 5. 7 , that very favorably to a place like canada that is 4. 9 . 5. 7 dividend yield is almost double what you can get in the u. S. Of course, there are some pretty considerable risks involved, particularly as the situation continues to change. We have Companies Like applied center either dropping or rearranging their guidance on dividends. We have an airline like Virgin Australia announcing it is suspending 8000 staff, 80 of its workforce. The situation is very fluid. It is only for the bravest of investors to be buying right now. Taylor paul allen joining us from sydney. You can watch us live and see all of the past interviews on our interactive tv function. You can also dive into any of the securities were bloomberg functions we talk about. Plus, become part of the conversation by sending us instant messages during our shows. Only to me if you are nice. This is the bloomberg subscribers only. Check it out. This is bloomberg. Taylor lets get a quick check of some of the latest business flash headlines. Nike topped wall street estimates and the three months through february, raising optimism the brand can survive the coronavirus downturn. Sales roy fraction over 10 billion, 500 million more than analysts forecast. The results are encouraging, although they only run through february and they do miss the deeper global slump in march. Nike is one of the first Big Companies to report amid the virus. Fast food operator yum is suspending the Share Buyback program and helping franchises as the coronavirus erodes the sales. The owner have kfc, pizza hut and talk about say comparable sales are lucky to fall by mid to Single Digits in the Current Quarter with a three months it more significant. Food outlets suffered government imposed lockdowns around the world. Facebook says it is says its advertising business is taking a hit in some parts of the world as a result of a pandemic, even as demand for information and messaging drives what it calls an on present that it spike in usage. Of company has seen usage messaging jump by as much as 50 in some countries with people confined at home but says that is not translating into ad sales. Sticking with facebook, they are in talks to buy a multibilliondollar stock in an indian telco according to the financial times. The paper reports the social network is close to signing a preliminary deal for a 10 before negotiations stalled as the travel ban related to the coronavirus. Relianz has been trying to reduce debt and google also says it has been interested in the stake. Haidi . Haidi lets check in on these markets, given that we had the spectacular gains when it comes to wall street overnight. Lets take a look at how it is circulating. New zealand, where trading is underway, day one of the rbnz Bond Buying Program. Saying despite the size of the bond purchases, it should not distort the operations of the market. We are seeing gains close to 5 when it comes to trading in qb stocks. Cindy futures extending the gains. Setting up for opening gains of well over 6 after we saw the dow jumping to post its biggest gain since 1933. The best they can almost 12 years for u. S. Stocks. S p futures have been bouncing around but we are seeing outside of 9 10 of 1 . Lets switch it over to take a look at obviously the politics side of things. This is part of what was driving some of the optimism. President trump urging the reopening of the economy as soon as easter. We will be hearing from our atst to take a look when we can get the reopening and when that should happen. Lots more to come on Bloomberg Markets. This is bloomberg. Very good morning. I am haidi stroudwatts in sydney, where markets have just come online. Online. And south korea i am taylor riggs. Welcome to Bloomberg Markets asia. Asia set to extend the rally after a search on wall street. The dow jumped the most since 1933 as investors see Congress Closing in on a 2 trillion stimulus. Plus, the infection tightens its grip. Worst death toll. France and germany weigh how to keep the single markets afloat. Haidi President Trump wants to ease the shutdown. He wants the u. S. Up and running by easter despite warnings from his own health professionals. Australian markets have just opened. We are playing follow the leader in this very volatile time. Sophie kamaruddin taking a look at the open for us. Sophie we are seeing gains of nearly 2 for the asx 200 at the start of cash trade after rising 40 out the gate. We are seeing oil stocks gained ground along with some banks. A fed shares up nearly and z anz shares up. Point zero 5 billion australian dollars in added liquidity. Extendings tuesdays rally. Buying 200 50 million he read dollars worth of Government Bonds in its first kiwi auction. We have south korean policymakers pulling out vstoxx to find this ministry. Tweaking liquidity coverage to support dollar funding. Plusatio was at 80 Financial Companies will be exempt for the levy so more liquidity support coming through from policymakers in asia. Taylor Sophie Kamaruddin. President trump is pushing for the u. S. Economy to reopen by easter. It is a stark diversions from the warnings of some Public Health professionals and state governors. He outlined his timeline for easing the shutdown. Pres. Trump i hope we can do this by easter. I think that would be a great thing for our country and we are all working very hard to make that a reality. We will be meeting with a lot of people to see if it could be done. Easter is a very special day for many reasons. Our washington reporter, greg sullivan, is on the line. Easter is 2. 5 weeks away. Your take . Laying outdent trump a rather ambitious timeline for trying to reopen the nations economy and rollback some of those engine measures to counter the virus. He said he would like to see packed churches around easter. That statement is somewhat at odds with Public Health officials who have been urging people to socially isolate themselves and to try and avoid contact and stay hunkered down. It is also at odds with state and local leaders. More and more, we are seeing cities and states shutting down. Here, we have trump laying out an outline that is seemingly at odds with that. Thep a little bit later at White House Briefing did appear to walk it back a little bit, saying any decision on guidance from the federal government would be grounded in the health and wellbeing of americans. He reiterated he would be happy to see the u. S. Economy reopening by easter. Haidi where are we at with the spending bill . Greg right now, the chief negotiators are ironing out the final details as stephen mnuchin, the treasury secretary, top senate diplomat has been trying to hash out those points. We have been hearing from lawmakers and chief negotiators that they are very close all day long, very minor sticking points. We heard that one of those sticking points is access to aid for abortion providers but they seem to be telegraphing that they think they can get this across the finish line tonight. So much for you that. Greg sullivan in washington. Seet does get past, we will if the relief rally for the markets can continue. Lets take a look at how it is playing out. He joins us now. Have you. We expect to see explosive rallies and volatility during a bear market but was there a turning point in the previous session where it almost felt like the markets were thinking that theres got to be a bottom for this soon . Was it to do with President Trump hinting that he wanted things to reopen really quite soon . That was a factor along with the progress being made with senate bills so those two factors probably, with the senate bill being the leading factor, contributed to the rally today. Sustainable and do we start seeing pockets of opportunity or do you listen to the doctors . We heard from anthony fauci, they were insisting that we have not in the u. S. At least gotten to a point where we can say where the infection rate is that because theres still they are trying to get on top of the testing. Haag i dont think it is sustainable and slowly have visibility on when the economy can reopen, so if you look at i think that should be data driven and thats really one of the things the administration there has been a paucity of data that shows how we would track and ultimate reopening of the United States economy. That has been a shortfall on the part of this administration. Taylor curious is anything like todays rally changed anything for you if you want to see a leveling off, flattening of the curve. If you feel comfortable stepping into the markets again. Haag you want to see visibility on flattening of the curve before you start waiting heavily ding heavily into the markets. If you dont buy the bottom, there will be good buys in the future. Before you start putting fresh capital work in this market, i think you would want to see some visibility on flattening of the curve that its really underpinned with good, sound data. Taylor what would you like to see an estimate was built . 1000 see in that stimulus bill . What in there would catch your attention . Haag Small Businesses and the American Worker for Small Businesses have been under a lot of pressure for this. Employees across the United States work for Small Businesses. Support for Small Businesses like has been proposed will foride much needed relief these Small Businesses and their employees. If you take a look at some of the winners out of this, you say the sort of pandemic related trade, the social distancing trade, has already been played. What names would you be looking at at the moment that still has potential, particularly if they make it out of this period, however long it is, looking pretty intact . Haag if you look at some of the areas that have been under a lot of pressure, utilities have been under pressure, but also our Pipeline Companies that transport natural gas and other Energy Products throughout the country have been under tremendous pressure. Enterprise products, one of the Great Companies located here in houston, has a strong dividend with cash flow, moderate debt. It saw 62 from its previous high with the 12 yield when the tenure is yielding less than 1 . So there are pockets of opportunities you can take advantage of. Picking into easing picking and choosing with moderately Leveraged Companies that would continue to function regardless of what Economic Conditions are is a good way to put money to work. , thank youg sherman for joining us. We will hear more market voices throughout the day including an exclusive with bank of singapore ceo and guests from ubs Wealth Management and standard chartered. Coming up next, our interview with the imf chief economist about what tools they have to emerging market amid the virus. Europethe latest out of as the death toll continues to climb in italy and spain. Or details on the measures that e. U. Officials are now considering. This is bloomberg. Haidi you are watching Bloomberg Markets asia. I am ritika gupta with the first word headlines. Asiapacific nations are stepping up their response to the virus. India is imposing a 21 day nationwide law down and allocating almost 2 billion for health care. Andapores closing bars movie theaters and suspending religious services while indonesia is a step closer to widening the budget deficit to allow greater spending. Thailand has announced a state of emergency. Is chinese city, wuhan, where the coronavirus was first reported and it was ordered into lockdown in january. Authorities are looking to lift the restrictions, saying the city of 11 Million People can reopen again in two weeks time on april 8. Hubei province, of which wuhan is the capital, is reopening its borders to travel later today. The worlds worst kept secret is out. The olympics are off after weeks of debate and increasing calls for a delay, the ioc and tokyo organizers have agreed to postpone the games for a year, although they insist it is not a cancellation. The coronavirus has made it all but impossible for athletes to prepare and for tokyo to ensure the safety of competitors and spectators. Organizers hope to host the games in 2021. Manufacturing data from ihs market suggests the Global Economy is taking a battering not seen in decades. Instructions on business and households strangles demand. Falling at record pace with activity shrinking and confidence slumping. Governments have vowed to pause but the data say a deep global recession is almost inevitable. Global news, 24 hours a day, on air and on quicktake by bloomberg, powered by more than 2700 journalists and analysts in more than 120 countries. I am ritika gupta. This is bloomberg. Taylor, haidi. Taylor i want to get some breaking news. We are hearing that the Trump Administration is said to be weighing a 90 day deferral of tariffs. Tariffs with china were set to go into effect. This is according to people familiar with the talks that are deking to bloomberg news. The domestic industry pushing back against a plan to defer the payments. For now, given the coronavirus, the Trump Administration is set to be weighing the 90 day deferral. Speaking of the coronavirus, we are also getting some news around the g20. The virtual Leaders Summit will be held on thursday. It is tuesday evening here in new york, so having that meeting on thursday, that would of course be to advance a coordinated Global Response to covid19. Now, the coronavirus continues to tighten its grip on europe with deaths climbing again in italy and spain. On the economic front, finance ministers and the eurozone are inching towards a rescue package. Bloombergs international editor, rob matheson, is in london. I want to start on an update of what we know from italy and spain. What we are seeing is some pretty numbers out of spain. We had a brief slowdown in italy and a glimmer of hope, but again, today, some bad numbers. Another 743 deaths. Nearly 70,000 infections in italy. And governments are really scratching their head, saying what more do we need to do to start to see the containment measures take effect . Do we need to do more than we are . Do we need to penalize people for breaking the rules on lockdowns in italy and beyond . Or is it just a matter of the virus catching up to the fact that it is now trying to be boxed in in these countries . In the u. K. , Prime Minister Boris Johnson now saying that more lockdown measures could come if people do not start complying with what has really been announced. And again, particularly in italy and spain, those numbers continue to climb despite the large amounts of money and the containment measures. Governments are saying, is it a matter of just waiting another few weeks and seeing if, like wuhan in china, it naturally starts to slow down . Detailso we have more about the massive rescue package that finance chiefs have been hammering out . We have got more details about what these could outlines look like. Rosalind thats right. It is basically to allow any that wouldhe e. U. Be 410 billion euros. We saw finance ministers meeting today. They are generally in agreement that countries should be able to borrow around 2 of their gdp, but than the other conditions around that are still under discussion. In the end, they decided it was too difficult to get agreement today. May put that ahead to the leaders meeting coming on thursday. They have them meeting on thursday, and then, some point in the same day, the g20 leaders are also meeting. The question is italy, which is the most indebted euro nation, the one that has been hit the worst by the virus. Nearly as wary about being singled out for aid on its own even though it is a state that needs it the most, if any, and at the same time, germany and other countries are cautious about handing rome a blank check , so basically, they need to get to the point where they can decide this is a euro wide tapram for any country to that warchest rather than saying, in essence, just italy. That is probably where that leaders want to get to on thursday. Haidi thank you for joining us, our Bloomberg International executive government editor, rosalind mathieson. The imf says it is all hands on the pandemic. The chief economist spoke to bloomberg earlier about what tools the fund has to help emerging market economies and the challenges they face. There are many countries, especially if you look at low income countries, that have an immediate need for debt relief. They have immediate need for financing just to provide the appropriate Health Care Services that they should be. The imf has many tools. You have funds for providing that relief for payments owed to the imf. Graphinginancial facilities and a lending capacity that our membership can have access to. We have many tools in place. I think there will be even more needed in terms of a Global Response and we are working with our membership and with others to come up with the best response. We talk about the mechanics of what we have been seeing across Financial Markets worldwide and really, the outflows that we are seeing out of emerging markets as well as the funding stresses we have seen with regards to the dollar and how that matches up with all of those foreign currencies out there. We have gotten a little bit of reprieves today from that in the markets. Is there anything that the imf can do to arrest this imbalance we are seeing between the strength of the dollar and what emerging markets are going to need to sort of stay stable if not solvent . Gita the dollar liquidity has been a big challenge. The u. S. Said provided the swap lines for nine countries. That helps tremendously. There are going to be more countries that need access to dollar liquidity. At the imf, we are thinking about who will what will be the best way of providing this kind of liquidity. We have to keep in mind that we dont want countries to have solvency problems. Have positive news on the medical front and containment fund, these countries can recover very quickly. We took a very long time for that is the kind of situation we want to avoid. We are working very hard on that. Breaking news crossing the bloomberg. A drum thatith President Trump had erroneously said President Trump approved for covid19. We are hearing that india has banned export of hydrochloric with the drug, which is spare mentally being used along with other medications as being part of a potential treatment plan for covid19. India banning the export of that drug. Lots more to come. This is bloomberg. Haidi we are seeing Airline Stocks in australia seeing a rebound along with the rest of the market, tracking those gains we saw on wall street. Comesle news out when it to version australia and qantas, furloughing 80 of his 10,000 strong workforce, saying it will only keep flying for essential services due to the restrictions coming from the coronavirus shutdown within australia and all International Flights have been suspended until june 14. , capacityft grounded domestically cut by 70 , and a jump in qantas shares after it got over one billion aussie dollars in debt funding to strengthen its financial position. This comes as Airlines Worldwide could be set to lose 252 billion in revenue this year from the coronavirus pandemic alone. It is a threat to the sectors very survival according to the International Air trans transportn which association which has doubled its previous forecast. We spoke to the director general. We are facing an unprecedented crisis. Expandedrus has outside the borders of asia and everywhere in the world, we have seen very quick and severe measures of banning flights, closing borders so that traffic has dropped by something like, in europe, 80 , 85 . In the americas, 60 . In asia, 70 . The figures are enormous. Obliged to change our estimates and to increase significantly the amount of losses the industry will face in terms of revenue, so we moved 113 loss of revenues two weeks ago, to now, 252 billion u. S. Dollars in terms of loss of revenues for the industry. Significant increase, but it is driven by the rapidity and the speed of the virus, and the measures taken by governments. Is that your worstCase Scenario . If not, what is the worst Case Scenario . We have seen most aircraft now being shut down. We have seen some tsa figures earlier on from the united its showing air travel down by 80 year on year. On a single day. Can it get much worse from here given the level of groundings we are seeing . Alexandre it is difficult to say that. 252 is a big number already. It is big on the certain, first of all, magnitude of the drop. Crisis, ifth of the with moretends, amplitude, it could be below that. Recovery. Ge slow the 1252 is still a big number. Iata directoras general alexandre de juniac. A quick check of the latest business flash headlines, fast food operator is suspending the Share Buyback program and is working to help franchises as the coronavirus erodes sales. The owner of kfc, pizza hut, and taco bell, says sales are likely to fall by mid to high Single Digits in the Current Quarter with the next three months hit more significantly. Food outlets have suffered as governments impose lockdowns around the world. Facebook says its advertising business is taking a hit in some parts of the world as a result of the covid19 pandemic even as demand for information and messaging drives what it calls an unprecedented spike in usage. The company is seeing the use of messenger and whatsapp jumped by 50 in some countries with people confined at home but says it is not translating into ad sales. Nike topped wall street estimates and the three months through february, raising optimism the brand can survive the coronavirus downturn. Sales were a fraction over 10 billion at 500 million more than analysts forecast. The results are encouraging although they only run through february and they do miss the deeper global slump in march. Nike is one of the first Big Companies to report amid the virus. And there is plenty more to come still here on Bloomberg Markets asia. Future is, after a very good day on tuesday. Trading had been fluctuating between gains and losses, as you see and await the rest of the world to come online. This is bloomberg. Bloomberg. Ritika this is Bloomberg Markets asia. I am ritika gupta with the first word headlines. U. S. Lawmakers are said to be edging closer to a bill to tackle the coronavirus although the republicans have criticized their opponents for blocking two earlier proposals. The original 1. 2 trillion dollar plan has doubled while the democrats have introduced their own proposal which adds up to 2. 5 trillion. Sources on capitol hill say a deal could be announced in the coming hours. The coronavirus is tightening its grip on europe as italy reports a new rise in deaths and spain ceded its highest number of fatalities in a single day. 743 people died in italy on tuesday after two days of decline prompted hope the outbreak was coming under control. However, active cases rose the least in a week, indicating that the severe curve on movement are slowing down the spread. The Aviation Industry is one of the most deeply of active actors hit by the virus and is more than doubling its forecast of potential losses. It now says airlines could lose at least 250 billion dollars in revenue this year, which would threaten their very survival. Earlier this month, they said only 30 carriers are healthy enough to ride out the storm of higher costs and plummeting travel demand. New images from the European Space agency show a significant reduction in pollution across northern italy has the region began shutting down for the coronavirus. The lockdown began more than two weeks ago with 2 Million People ordered to stayathome apart from essential travel. Those cars are now off the roads and factories are shut with a leak the hardest hit italy the hardest hit by the crisis so far. Global news, 24 hours a day, on air and on quicktake by bloomberg, powered by more than 2700 journalists and analysts in more than 120 countries. I am ritika gupta. This is bloomberg. Taylor. Taylor thank you. I want to go on over to Sophie Kamaruddin. A big increase here and i premarket on tuesday. What are you seeing on your side of the world big increase here in equity markets on tuesday. What are you seeing on your side of the world . Sophie the benchmark up nearly 6 . Higher by banks and minors. Virgin adding as much as 16 . Check out kiwi stocks in wellington. The best two days on record, bouncing back from mondays steep selloff and nikkei futures in singapore opening higher as well, but s p eminis paring the earlier bets. Holding steady right now. Lets flip the board to check the dollar, remaining under pressure at the after the blumberg gage ended a 10 day rally. Arkets with ac money tsunami of liquidity. Policymakers wrap up the fort. The rbnz holding its first q. Week auction. South korea easing liquidity rules to boost dollar funding. Bloomberg intelligence cautions ongoing demand of dollars may suffocate asian currencies with the worst of the regions macro data yet to surface. Haidi Sophie Kamaruddin in hong kong. Lets get more on what we should be watching with the markets. Assetshe rally in risk continuing to a second day but it is really hard to see how sustainable this is before we get more assertive data on the Health Containment front. We can see the market a little bit confused or disappointed that the tariffs, which were deferred and not removed entirely. Adam people very reticent to take any real longterm view on the markets, even though we have had such a huge decline across across rateand assets. It is difficult to take that one view without seeing it peaking some of the most serious places like the u. S. , in places like europe, but of course, we are continuing to see the lockdown. The lockdown in india is only just starting and that will become more and more severe. We are also only just starting to see the response from the Central Banks actually kicking in, so the reserve bank of australia, for example, is only a few days into its Bond Buying Program. The rbnz has only just started its Bond Buying Program in earnest so markets are still having to recalibrate to what Central Banks and the fiscal policy response has been for this crisis and yet the Health Care Issue and the continuing surge in cases and also the fatality rate in many countries makes it still a very, very uncertain environment. We have seen these large swings continuing to play out. And one are seeing, notable really important move yesterday was that kind of halt in the big dollar rally that we have seen. That did give some people a little bit of pause talk, that so much money had been rushing in liquidating out of positions, looking for a haven in the dollar and wanting to own that cash. You did see that ebb somewhat and it looks like it is following through into the early part of this session so far in asia but that is was one that we will have to watch closely over the coming days. Is when myic grandmother calls me and desperately wants to go to cash. What are some examples you are hearing from the street about peak panic at this moment . Adam of course, it is an easy way in a sense to characterize the fact that when you reach these peak panic moments and markets, that is when you want to be buying. You dont want to wait too late until all the good news starts to go out because you missed the substantial degree to the upside. So what some people are doing, and this is both wall street strategists and also investors, they are saying, look, you have to go back to some of the fundamentals. Markets have given them a favorable outlook in the first place paid australia, the folks at research, affiliates are saying go back to the dividend yield argument. This is still a very attractive market relative to others. Australia still stands out with its dividend yield relative to the likes of canada, hong kong, and the u. S. You have that dividend yield. If you are comparable, after we have gone through some of the Capital Raising and dividend cuts, you can make a better judgment about being able and wanting to pay out those dividends that you can find some after the huge halls we have seen. It is that idea of trying to use Little Pockets of value that are starting to emerge and those kind of areas given the fundamentals are very difficult in a broader view. Marketins a very tricky to get back into in a substantial way but it is clear that people are looking for Little Pockets of opportunity just to tilt back into some of the risk budgets and some of their portfolios, just to give them a little bit more of a risk weighting. Haigh. Adam we are getting some breaking news onstar entertainment. Australian casino operator. They will have temporarily standing down 90 of their workers. This comes after the government extended the lockdown of nonessential businesses. Factple of days ago and announcing the casinos will have to close along with pubs and restaurants as we have seen a soaring in coronavirus cases, and now, we are seeing 90 of their staff would be down. Taylor transition to another company, apple. Some of the Retail Stores may reopen on a staggered basis next month and it has extended remote work abilities for many of its employees through april 5. I want to see how the virus disruption may affect apples outlook. Before we get into apple specifically, how are you even modeling fair value for all of the stocks in your coverage given we do not know what the revenue hit will be, we are not quite sure what the cut in expenses will be, and we have no clue what earnings might be. How do we even start to think about what fair value can be for many of these companies . Thanks, taylor, for having me. It is a great question, especially in these trying times. It is difficult to have a good forecast, especially given the fact that Companies Like apple land research, all of them withdrawing their guidance, and if the company is struggling, it is very obvious that a lot of things are what we do, one of the things we did when we did the analysis is the virus started impacting the numbers for app probably sometime in the month of february. I. E. , they were one third into the quarter so they had a little bit of a baseline and then tried to have forecasts from there onwards. Striking and what is to try to get a sense, but the bottom line is you are absolutely right. It is extremely difficult to put any kind of forecast, and in fact, when we update our model for some of the semiconductor companies, when we went through the guidance, the question from investors is what are the thought processes behind this . Your guess is as good as mine. Dothe same time, we tried to our best fundamental analysis as much as possible. Taylor i can pretty much guarantee your guests will be better than mine but lets save that discussion for another day. Theyn your universe, posted an almost 12 gain. One of the best days since 2001. Are you optimistic that china is coming back online . How do you think about the demand perspective as the u. S. Is shutting down . Look at calendar q1, the march quarter, a lot of the issues were supply related. I think now, with china coming back online and some of the thely chains ramping up, supply is improving marginally compared to a month ago. I think demand is where people are struggling, trying to figure out how the consumer demand will be, the environment a lot of consumers are losing their job and how other things are going to look like. Pockets ofertain green shoots, especially the semiconductor environment. They are spending. There are certain pockets. The data center and spending is pretty strong even if things like smart phones are pretty weak. It is all over the map at this point but one thing i can tell you is that when you talk to people in the industry, one of the functions at this point is the virus peaks in q2 and things start returning back to normal in the second half of this year, i. E. Demand starts coming back in the second half. If that gets pushed out, obviously, theres more risk to numbers. Even how much the stocks are down in the last month, the last couple of weeks, you know, any company that withdraws guidance or anyone who will miss numbers, it does not matter at this point. Taylor haidi do we get to the point where any kind of surprise is an upside prize in terms of some positive numbers coming out of china when it comes to retail sales, for example, really being taken well by the market . You take at look at the shutdown in china, and people were still buying. They were not buying cars or furniture, for example. How does a return to work change the Consumer Behavior in terms of do you expect consumers to still be buying smartphones even when there is this global rush toward cash . Rush to horde cash . Krish hard to say. What i would say is if you look at what has happened, what started as a supply issue in a potentialne into logistical issue given the fact that there are places that have shelterinplace. Things like that where people are not allowed to go outside. Expected to work from home. Eventually, the market is looking forward, and it will translate into a demand question, and a demand issue, and i think, at this point, you know, if you look at it and they if you are looking at it purely from a Consumer Spending measure, there are some risks to that. Looking at it from enterprise spending, it might not be as bad given some of the Tech Companies are still cash rich and scaling back buybacks in terms of cash, but at the same time, like i said earlier, if the demand does snap back in the second half, the virus is a shortlived issue and the duration and over the next several weeks, i think we are ok as we exit this year. Haidi what are the strongest and most vulnerable names out of the Semiconductor Space in terms of those that will be able to maintain debt payments and wont have to curtail Dividend Payments . Krish we had a report where we left at the whole conflict and given, in our coverage, you know, we feel pretty good about most of the companies in our coverage. In other words, these are companies which have tremendous value for the Global Economy. Many of them have good cash flow. Many of them have good some of them have a net debt position. We dont see a lot of liquidity risk, definitely not any issues, and i feel like what they would do is probably scale back to not cut the dividend at this point. Anything tremendous or horrific happening in the ecosystem. Many of the companies we cover five to six years from now versus the most consumer centric countries, people are looking at many of their capex and liquidity issues. We dont see anything in our complex. Haidi thank you so much for joining us. Krish sankar. We will have more on the supply Chain Disruption from the virus pandemic with an analyst at 8 40 a. M. In hong kong, 11 40 a. M. In sydney. Coming up next, tokyos 2020 olympics are still on. We take a look at the applications for politics, economics, and global stability in japan. This is bloomberg. This is Bloomberg Markets asia. Want to get a quick check on how the markets are. Very strong rally in the tuesday trading session p what that means is we are seeing losses within the future of the market. We have never seen back to back gains in the u. S. Markets after a big rally so futures here weaker. You are seeing some of the australian and new zealand stocks continue on the strong momentum from the u. S. Session on tuesday and push that forward over further into asia as some of the other nikkei futures, for example, rising almost 2 to 3 as some of the continued optimism as we await the stimulus bill and continues to falter through. Haidi of course, and we have got to talk about we were expecting this. It has finally been confirmed, the postponement of the 2020 Tokyo Olympic games. That will have farreaching effects for japan. Medical, logistical political, logistical among them. Is a ceo of japans society. It fosters u. S. Japan openness. Great to have you. This is going to be a hit for Prime Minister shinzo abe. This is a man who came out of the closing ceremony in rio dressed as super mario. The does this mean for global standing of japan, the economic benefit that we are expecting to get, as well as this leaders legacy . This is about shinzo abes legacy. This was supposed to be the cherry on top, having gone as super mario. He is the longest serving Prime Minister of japan. The question is what happens if you kick this for another year, not just for the athletes they have disappointed, but to the japanese economy and shinzo abes legacy in general. A lot of people in japan are ready for change but it seems like this year will not end. It will continue in 2021 even though we are calling it the 2020 on the vix. Haidi the deflation mindset which was so hard to claw out of, even with extraordinary monetary and fiscal policy, is that the biggest risk that public sentiment, market sentiment, economic sentiment, now just takes a real hit . Actually, while this is bad news in the shortterm, it is disappointing for all of us to not see the olympics this year. It is understandable given the pandemic. I think the biggest risk we are thinking of here is what happens with japan moving forward. I but onyx came out of the gates pretty strong. A lot of optimism. It is the bank of japan and Central Banks which are firing as many arrows as we can. If the coronavirus gets worse and there is on lockdown, there is no economic trade. Japan right now seems to be doing fairly well with covid virus compared to other places. It could get much worse because of the global recession we seem to be in. Taylor i know here within the United States, a lot of cities protest the games because we do not want the cost to outweigh the benefit and it really is a big burden from a cost perspective. What does this now mean for tokyo and the cost they have put into trying to hold the gains . A postponement has whose costs, as you said. Tokyo is different. The last time the olympics were in japan, 19 six 24, the bullet train, all these great innovations. This was meant to future japan sustainability and do a lot more working from home. Anybody who lives in tokyo knows that july and august is the hottest, most humid time of the year. Many people in tokyo stay at home. They wanted to showcase that japan was back in a big way and kind of on the global scene. This puts a damper on things for sure but i think the japanese are really excited about this and the world is going to need some type of celebration, next year after all this is over. Taylor can you talk about what this means for shinzo abe, some of his relationships with trump, with some of the other g7 leaders . It is the right time to be talking about a given that the beens also virtualized. I would argue the way this was handled actually plays into shinzo abes hands because this could have been a long, drawnout process, where the ioc makes a decision months from now. He talked to the ioc president and said this is what will happen. It is clear that rather than having an olympics with no spectators like they have been doing, this is going to be a very different type of olympics. It will have a high cost to japan but hopefully it is worth it in the long run. To thei want to switch handling of covid19 in japan because it has been really interesting and a little bit perplexing because we talk about italy being hardhit with an aging population. That is japan as well get it has managed at this point to escape with a fairly low level of fatalities. If you dont count the diamond princess, the new infections have been wellmanaged as well, so in that sense, is there some kind of hope that domestically, japan could at least escape the very nature coney in an economically damaging lockdowns that we have seen in most other parts of the world . Joshua that is the billiondollar dollar question in some ways. When you look at the responses from the very draconian chinese quarantine to now, the lockdowns in europe and the u. S. , the outlier is japan. The number of fatalities has been astronomically lower. You cannot hide fatalities. The testing may not have been as robust as south korea but after the diamond princess crisis, the kind of shook the japanese establishment and shinzo abes cabinet. They seem to be taking a lot more humble approach and the real question Going Forward is how is this going to affect the rest of the world and are there lessons we can learn from japan . Japan is about to become a fairly normal country by next week when the schools get back in session. People are still going to cafes, restaurants. There is social distancing happening but that seems to be a uniquely japanese phenomenon unlike here in new york and other places where life has come to an end and all of us are sort of hunkering in place. Haidi joshua walker, Japan Society ceo with the latest on the postponement of the tokyo 2020 on the games. We are just getting the bank of japan summary of opinions. This is from the march emergency policy meeting. This is what we are getting in terms of these lines. Ample liquidity is a priority for the time being. One business saying the bank of japan must move the corporate financing as a priority as well as talking about getting the right to add easing to ensure stability in the market as well as talking about the need to contain the rise of risk premiums with etf buying. This as the bank of japan really stretched its limits in terms of the already extraordinary policy we have seen when it comes to the Monetary Policy front. Rightly of the economy saying japans Economic Activity has been weak recently and that special attention needs to be ofd to the outbreak covid19. That constraint really being worsened by the outbreak and also talking about the lack of stability in financial and Capital Markets as well. Taking a look for the future conduct of Monetary Policy, the boj saying it is possible to purchase the jgbs at that annual pace to increase up to ¥80 trillion. And other timely actions as well. Clearly saying that there is more ammunition despite some of the extraordinary moves we have seen from the bank of japan, not just in the wake of coronavirus, but in the past few years. Markets open at the top of the hour. Lets get it over to sophie in hong kong to take a look at what she is watching. Sophie. Sophie we are watching asean airlines. The carrier will start for all staff in april and headset that moodys is placing four korean regional banks on review for a downgrade including deteriorating credit quality for vendors. Amsung on the radar macron earnings may come in weaker given the supply chain challenges. Kia motors on watch as it will stop at its west point, georgia factory in the u. S. For two weeks from march 30, and flipping the board, japanese autos on watch as they are halting some operations. Toyota to shut its miata factory after a virus case was detected there. Mazda suzuki is helping plants in india. Taylor coming up in the next hour of Bloomberg Markets asia , we will be speaking to Oxford Economics senior asian economist. The rateus to preview decision out of thailand today. The central bank is expected to make a second cut in less than a week. That this is all part of coordinated global monetary and fiscal action as we have been hearing in the market. It opens up in tokyo and seoul next. We want to take a quick look at how futures have settled down here. We had a stellar day on tuesday with the dow posting the best gains since 1993. Russell 2000, best gain since 2009, but it looks like all of that is deteriorating as we are getting a little bit of a drop in the u. S. Futures market as we await this stimulus bill. This is bloomberg. Haidi good morning. Asias major markets open for trade. Taylor good from bloombergs Global Headquarters in new york. Welcome to Bloomberg Markets asia. Asia stocks set to extend the surge on wall street. The dow jumped the most since 1933 as investors see Congress Closing on a 2 trillion stimulus bill. President trump wants to ease this account to ease the shut down and be back in business by easter. Delayedhe olympics are for at least a year. A lengthy recession. We are just getting these latest numbers out of china in terms of the latest coronavirus infections. We see this issue when it comes to a second wave of imported infections. Additional seeing coronavirus cases, and all 47 are imported cases. Despite the stricter lockdowns, the mandatory quarantine period, the really stringent and true coney and measures taken in china draconian measures taken in china, they are still struggling. Gains for are seeing the nikkei and topics. The yen study, trading s teady, trading 111. One highlight that the central bank could buy jgbs. That has since been boosted. Lets check in on the open in seoul. Up 4 higher. Ospi againstan won gaining the dollar. The finance ministry saying they will ease liquidity rules. Aussie shares rising with miners leading the charge. Kiwi stocks on track for the best two days later. Day had its best two auction. Fluctuating in the asia session. The dollar is altering, halting a tenday day rally in the move to risk assets. D steady after the first brent adding 2 . Oil extends recovery. More analysis on the markets, i want to bring in bloomberg strategist Mark Cranfield from singapore. We talked all about this peak panic. It temporaryr is until we get a flattening of the health curve . Mark it is very high volatility. It is not easy for people to put a good read on what is going on. If we compare with 2008, 2009, we saw big bear market rallies. The squeezes can be in normas. Be. It can go on for a while. The bottoming process for equity markets took several weeks. If you took from the time Lehman Brothers failed until the s p 500 officially bottomed, it was three to four months. We may be in the early stages of a bottoming process. It is way too early to tell people it is safe to go back in the water. We still havent had the u. S. Stimulus bill signed. It may not be the only one. With the lehman crisis they had to come back more than one time. Although this looks to be a large fiscal stimulus, it may not be the only one. Things york mayor said could get worse in april and may. We outlook for america is will be dealing with this virus for a long time yet. We may only be at the early stages of america in terms of how they cope with the economic fallout from the virus. Swapped showbasis any easing . Mark one of the closely watched his the japanese yen is the japanese yen basis against the dollar. Has been shopping around. It is still very skewed toward people wanting dollars. If you look across the curve to the one year, even five years, there is little change in that sector. Until we see the longer duration asus swaps coming basis swaps coming for nobility, it will be hard for normality. There are still a lot of people trying to get dollar liquidity. We need to see more stability in the long period basis swaps before people are what happy wi th the Central Banks fixing the system. Haidi you can follow more on this story in our markets live blog. Lets get to one of the other factors moving markets in asia. More potential fallout from the coronavirus outbreak. The Trump Administration debating whether to defer payments on dutie around the worlds for three months. You can see markets were disappointed. A potential deferral. What have we learned . It is not just markets disappointed. It is the companies as well that have for weeks been banging on the door of the white house, asking for tariff relief. The president saying there is no reason to do that. What we have learned is there are discussions in the early stages in the Trump Administration to debate whether to walk this delicate line between cutting tariffs and giving other relief to companies in desperate need of it. What is being discussed is the tariffs would remain in place, but companies importing goods would have to defer payment by three months. That means a lot of that cash is staying in the companys pockets at a time they need it. If the president decides to go for this, it gives him a way to say i have stayed tough on china but i know my Companies Need it. We heard the president say he anxiously wants to reopen the economy by easter. That may be a way to get there. What types of companies are we talking about . Can you give us industries, sectors . What stands out about these Domestic Industries . Jenny as with everything we have learned with the Trump Administration that has to do withis and with tariffs and trade, you can imagine Companies Across the board would like to see tariffs removed, they are inputs intoorting the finished goods. The people opposed to this move are the domestic producers, the steel, aluminum, all the domestic manufacturers that see these imports as their competition, cheap imports they are competing with. They would like these tariffs to stay in place and not deferred so they can get the protection from the government. Now want to get an update on the rest of the world. Set to bewmakers are edging closer to a bill to tackle the coronavirus after the democrats blocked two earlier proposals. The original 1. 2 trillion plan doubled, while the democrats introduced their own proposal which adds up to 2. 5 trillion. Sources on capitol hill say a deal could be imminent. Trump i hope we can do this by easter. That would be a great thing for our country. We are all working hard to make that a reality. We will be meeting with a lot of people to see if it can be done. Easter is a special day for many reasons. The coronavirus is tightening its grip on europe as italy reports a new rise in deaths. Italy on tuesday after two days of decline in hopes the outbreak was coming under control. However active cases rose the least in a week, indicating the curb on movement is slowing the spread. Suggests the data Global Economy is taking a battering not seen in decades as restrictions on business and households strangle demand. The first major numbers for march indicate autos falling at record pace, activity shrinking and confidence slumping. The data say a deep global recession is almost inevitable. The worlds worst kept secret is out. The olympics are off. After weeks of debate and calls for delay, the ioc and tokyo organizers agreed to postpone the games for year, although they insist it is not a cancellation. The coronavirus made it all but impossible for athletes to prepare and for tokyo to ensure safety. Organizers hope to host the games in 2021. Global news 24 hours a day on air and on tictoc on twitter, powered by more than 2700 journalists and analysts in more than 120 countries. This is bloomberg. Haidi we are getting breaking news when it comes to new zealands coronavirus handling. The country is going into a state of national emergency. New zealand declaring that state of national emergency. A Day New Zealand is prepared to go into level four lucked out. Every four lockdown. Every household will be ordered to go into selfisolation. Schools will be shut. The Prime Minister announced those measures on monday in wellington. They will stay in place for at atst four weeks, aimed breaking the chain of Community Transmission. New zealand cases have been creeping up. As of tuesday, there were over 150 cases. Say without them, Health Services would be inundated. Still ahead, we will get more on the fallout from the coronavirus as lockdowns fan out across asia. We will get the latest. Taylor thailands central bank is expected to make its second rate cut in less than a week. We discuss all the policy moves in Southeast Asia with oxford economic senior asia economist. This is bloomberg. Taylor we want to get a quick check on the Airline Stocks who have increasingly been getting news korea air announcing their executive will take pay cuts from april. You can see the Airlines Getting a big boost today after a Strong Performance from the airlines we saw in tuesdays session in the u. S. You have a series of measures taken. American air creating more space between customers and cutting back on the food and Beverage Service in attempts to keep things as clean as possible as we await the coronavirus pandemic to die down. China reported 47 additional cases, all of which were imported. The nation looks at a gradual post virus recovery, more nations taking restrictions to curb the spread of the virus. I want to go to selina wang in beijing. Now they are facing more imported infections. Reporting 47 24 additional new cases, all of them from abroad. That is lower than the 78 cases china reported earlier, including four locally transmitted patients. China has more than 81,000 confirmed cases with more than 70,000 discharged patients. China has been increasing screening at these International Hubs to reduce the number of imported cases. At the same time, they are starting to loosen restrictions domestically. As more countries around the world are locking down, china will lift the lockdown. It had the original epicenter of hubeitbreak on april province has been locked down since january 23. Even though this quarantine that has been in effect for months in china did avert hundreds of thousands of cases in the country, it did put patients in Hubei Province at much higher risk with a higher mortality rate. Of newmore details zealand declaring a state of national emergency. That will stay in place for and will give authorities more powers to enforce social distancing. New zealand going into this period of mandatory selfisolation for at least the next four weeks. We have seen other measures around the region. India announcing a lucked out. Singapore a lockdown. Singapore inching toward stricter measures on public activities and businesses. What are we seeing, particularly when it comes to places dealing with the second wave of infection . Selina more restrictive lockdowns across asia as global cases top 400000 and 18,000 deaths. India is including a three week kedown,out loc essential Services Remaining open. While the outbreak has so far remained limited in india with only 500 confirmed cases, Health Experts say it could be on the same trajectory as italy if aggressive actions are not taken. Prime minister Narendra Modi said that according to Health Experts, 21 days are crucial to break the cycle of transmission and that for a few days Everyone Needs to forget what it means to go out. Thailand is declaring a state of emergency as confirmed cases jumped to 800 from 40 at the start of the month. Singapore as well. They so far resisted a total lockdown, but are putting in more restrictive measures. They are shutting bars, movie theaters, limiting gatherings outside of work and school to a maximum of 10 people, but it will allow malls, museums, and some attractions to remain open. Haidi selina wang with the latest as we look at the fallout when it comes to the coronavirus outbreak. We are getting breaking news, extraordinary stuff when it comes to reportedly boeing is planning to restart production of its grounded 737 max plane by may, according to a report from reuters, saying they are thinking about restarting production of the 737 plane after those two fatal accidents. That plane has been grounded amidst a number of regulatory issues. Now we are hearing boeing is planning to restart the 737 max production by may, ending this monthlong halt. The 737 max is the bestselling plane for boeing. We havehe ground, we the overlay of groundings of flights because of the virus. The bank of thailand could lower rates yet again today according to Bloomberg Economics after an unscheduled cut last friday. Thai central bank has been putting in extra precautionary measures to shore up liquidity. This as thailand is set to enter a state of emergency from thursday. Sian fenner joined us from singapore. Great to have you. Tell me about the efficacy of what Central Banks can do, particularly in Southeast Asia. Already seen policymakers across Southeast Asia lower Interest Rates and provide liquidity. Forward, we think the fact that we have global trade is good for the second half of the year. Expect there will be more policy cuts across most of Southeast Asia. Faith is there for the bank of thailand and across the region we have heard from a number of Central Banks saying they have plenty of ammunition still left, but realistically who has the most buffers . Sian bank of thailand has less space. Paid has already cut by 25 basis points, putting it 0. 5 . We dont think it will be that effective at boosting demand. We think they are only going to cut rates by a further 25 basis points. We do know they have been working with other authorities. The ministry of finance, to improve liquidity and make sure the Government Bond markets will continue to fix rates. Haidi wondering how you think about the zero lower bounds, which is no longer a lower bound anymore. Have we learned about the effects of negative rates, if it works, what the efficacy of negative rates could be. Sian still pretty dismal at this stage. Athink they had more room in more advanced economy. There is space for cuts across the region. They do have some room to move, not just on traditional policy. Haidi what have we learned outside of traditional policy rates . Some other funding liquidities fed set up. The boj targeting along the yield curve. What are the other perhaps nontraditional measures that could be looked at as well . Rates for is cutting those affected by the virus, and for small venture enterprises. There is a lot of coordination. I dont think at this stage that emerging asianr economies. Haidi there is a lot of people saying this is the perfect opportunity to give ubi a go. Do you think that is an answer, particularly in asia . Sian not at this point. We think they will take other options at this stage. I think one thing we would like to stress is things are looking drastic at the moment. It is very fluid. We have seen lockdowns in the region. This is going to hit asia significantly in the first half. The fact that we expect potential growth noticeably for china we expect bounceback in the second half and a strong rebound in 2021. Economics lead asia economist sian fenner. Dont miss our exclusive interview with the philippines finance secretary later 10 30 a. M. In hong kong, 10 30 p. M. Here in new york. This is bloomberg. Haidi lets get a check of markets trading across asia this midweek session. Playingan markets follow the leader. The dow jumping the most since 1933. Wall street overall having their best day in almost 12 years as investors rediscover their appetite for risk. The nikkei 225 seeing gains of 5. 5 the spite despite the delay for the Tokyo Olympics fouryear. Kospi seeing robust gains. S p in sydney jumping the most since 1922. New zealand hanging onto gains despite the state of emergency. This is bloomberg. Taylor u. S. Markets day on tuesday. Time for a market check with sophie cameroon. Sophie asian stocks gaining ground while the dollar stays under pressure. Markets assess moves by policymakers while more countries are going on lockdown mode. India on a three week nationwide shut down. Thailand, a mom one state of emergency one month state of emergency imposed. The kiwi dollar is weaker. 50 pared gains. Back aboveadding 5 , the 19,000 level. The yen holding a six day decline. Benchmark jgb yields staying above zero. Watching boj measures. Check out korean stocks and the won extending tuesdays gains. More liquidity support coming in from south korea as rules have been relaxed further to ease the credit crunch and stabilize foreign markets. Haidi thank you so much, soph in hong kong. The olympics are off after weeks of debate. The ioc and tokyo organizers agreed to postpone the games for year, although they are insisting it is not a cancellation. Lets discuss with chelsea szendi schieder, an associate professor. It is a decision nobody wanted to go ahead with, regardless of whether you are in organizer or athlete or spectator at home, but it had to be done for Public Health reasons. Was it done in a timely and clear enough way . Chelsea there were a lot of mixed messages, but once the decision was made, it was made quickly, although word had been leaked on postponement. And japanord in tokyo that it is postponement rather than total cancellation. Haidi is that meaningful though for the myriad parts of the economy impacted by this . A delay of a year. If it happens when the winter games are on, there will be a big celebration of the olympic year, but does that come as any soothing effect for those affected by the delight now delay now . Chelsea already tokyo had sunk in much more money than was proposed with the original bid. The original bid was spending 7 billion. The government said it now spent 12 billion u. S. Dollars in preparation. Is government audit says it closer to 26 billion. The coast of cost of postponing a year, estimates of 5. 7 billion u. S. Dollars. There are authors of things to renegotiate from ticket sales to corporate bonds. This 2020 Tokyo Olympics has had a recordsetting amount of domestic sponsorships. Even the Olympic Village where the athletes were supposed to be housed are already apartments that have been sold to private citizens. Predict. Ts are hard to what makes it very difficult to predict is the larger, more thettling context, that japanese economy is not independent from the rest of the world. The tourism boom japan has seen in the lead up to the olympics has been sustained with many visitors from china and other Asian Countries that began to dwindle in february. A lot of the voices i have been reading are trying to make the best of what is a bad situation, not just for japan and the olympics, but for the world. Taylor how do negotiations of those contracts go . I am thinking you are a business and you have insurance against an event like this, an how dotion us shock you look at businesses that need to get repaid . Chelsea this is a huge open question. We know the ioc and tokyo have taken out a certain amount of insurance surrounding the games. I am not sure what kind of contracts there are for so many the investors in terms of corporate sponsors, but also in terms of smaller businesses. I think this will be a huge logistic issue moving forward. Taylor how much hope is there that instead of a 2020 story, this could be a positive 2021 story, assuming we all get through the next six months . What does this mean for any potential good news tokyo is looking for in 2021 . Symbolicthis is a huge centerpiece for shinzo abes Prime Minister 10year mini ster tenure. A lot of the postponement strategies coming out of japan were to preserve this event. Nobody wanted to see this postponed, but when news came in that the australian team, the Canadian Team were going to boycott the games, this could turn into a huge Public Relations disaster. It is being repackaged to the public as a recovery event. I am notelpful, but sure we are at a moment where we can necessarily say 2021 is when we will be ready for a recovery event like this. We will see. Haidi with japan in particular, we know spirits are fragile. We know how hard it was to claw out of the deflation mindset and the of the three arrows, two that were most effectively dispatched. What is the impact of the delay event liketional this on public sentiment . Fear in there is a real what i have been reading that this will freeze Consumer Spending. There have been calls to get rid of the consumption tax increase implemented in the fall, then of contributed tor the shrinkage of the economy from october to december in 2019. There is a real fear that people will stop spending. I think it is important to remember that it will be hard because ofngle the uncertainty of the olympics what has toics and do with this Global Pandemic challenge. In japan, the numbers are quite low. Testing however is also quite low, so we dont know where this will go from here. Taylor that is chelsea szendi schieder. Thank you for joining us. With the restte of the world with first word headlines. Asiapacific nations stepping up to the response to the virus. Almost 2 billion allocated for health care. Singapore is closing bars and suspending religious services. Indonesia is a step closer to widening the budget facet. Budget deficit. Thailand announced a state of emergency. The Aviation Industry is one of the most deeply affected sectors hit by the virus. One is more than doubling its forecast. Airlines could lose 250 billion. Only 30 carriers are healthy enough to ride out the storm with higher costs and plummeting travel demand. As there facing a crisis virus expands past of the world. We are seeing quick restrictive measures of banning flights, closing borders. We have been obliged to change our estimates and to increase significantly the amount the industry will face. New images from the European Space agency show reduction in pollution across northern natalie as the region italy down withgion shutters the virus. Most cars are off the roads and factories are shut. Italy the hardest hit country by the virus so far. Global news 24 hours a day on air and on tictoc on twitter, powered by more than 2700 journalists and analysts in more than 120 countries. Is bloomberg. Next, chineseup factories are open again, but the goods cant get out. An analyst joins us to take a look at the block when it comes to smartphone supply Chain Disruptions ongoing. This is bloomberg. Says theur next guest supply chain situation in china is improving with factories restarting work and production close to previrus levels. But exports will continue to suffer as demand starts to fall in the west. Joining us from singapore is analyst sharon hiu. Very curious about the longterm impacts of the supply chain. We already had a president who did not like globalization and the reliance on manufacturing in china. I know it would cost more to manufacture goods in the u. S. , but it would avoid the shutdowns we have seen from wuhan province. Do you agree we could see significant longterm impacts from this . Sharon in terms of the supply chain, yes we can see longterm impacts, but for right now, because of these disruptions, people are coming to realize how dependent they are on the chinese many fracturing industry. Chinese manufacturing industry. We are seeing companies diversifying into other countries. Foxconn manufacturing, we are seeing them opening up a new facility in india. Because of the virus, they are seeing a lot of disruptions to their manufacturing. They are looking to extend into vietnam, but for now that is a placeholder. Yes, i think we will see longterm impacts as companies diversify into more locations. At this stage, there are a lot of things to be discussed. Say peoplei would are looking into where they can go, but nothing yet is really fixed at the moment. There are a lot of unknowns. Taylor companies have been talking about this when President Trump was elected and looked at tariffs. You have suppliers like apple already shifting to vietnam, for example. How much of this solidified that transition, where companies are now saying ok, we have to do it. Sharon for sure last year, but this year the u. S. And china are starting to come to some sort of ease the urgency and continue with it. They are really looking into this. Everything is under discussion at the moment. Haidi as we get the complications play out in an unprecedented way, how much would it be a trend to diversify supply chains away from china . Sharon i think it is hard to say. I spoke with Somebody Just last week. This person has seen firsthand how efficient chinese many factors are, the way they have streamlined processes. They know they are differentiating themselves by fromost, and also inexpensive labor. Other countries are starting to build up their own manufacturing chains as well. To the extent they can reach the level of efficiency of China Remains to be seen. For the shortterm, i think china will be a major supply manufacturing for the rest of the world. But slowly you can see more diversification. I think china will still be one of the Major Players around. Play how interesting is a home,cos, from work from remote, ai, tech related names . I suppose that would be a point of opportunity as we see lo ckdowns around the world. Yes, they play an Important Role in our lives. With all the Remote Working going on in all the different countries, they are working to increase bandwidth for daytime usage. Net usage, they see it in the evening when everyone is at home, but now we have increased videoconferencing and teleconferencing, there is a surge in this usage. I think they have been doing pretty well in increasing the bandwidth. Course we are seeing some talk withs as you your colleagues in different regions. Serioussnt been any disruptions to the way we work in my company, and i believe for many others as well. I. T. G on, we will see players and telcos play a bigger ,art in society as a whole integral in our daytoday lives especially. Telcos will be a crucial player in the Digital Economy into the future. Taylor do you assume further strength for these cloud providers as well . Sharon yes. Well, cloud in general. Trend for people who are more wellversed in technology, really hybrid technology, which means you are placing some workloads on the cloud, but there are some workloads you are placing on your own workers. Right now the understanding is workloads,ncritical whereas for the really important ones, you will store it on your own data centers. If you are looking at Remote Working, definitely they are benefiting from this trend with increased software. Yes, definitely they will play an important part. They will see increased adoption in cloud moving forward, but that is not the full picture. Thank you so much for joining us. Sharon hiu joining us on the supply Chain Disruption. We are getting a Trading Update in tokyo, rising again, jumping by as much as 11 . This is the dominant player when it comes to media buying an advertising contracts in japan. Quite clearly impacted by advertising contracts with relation to sponsorships and the olympics, after the International Olympic committee 0greed not to cancel the 202 Tokyo Olympics, but to delay them for a year. Dentsu shares, almost half of their value on the olympic cancellation worries. Much more to come. This is bloomberg. Taylor a check on where we are in the markets. Monster rally in the u. S. Tuesday with the dow having its best day since 1933, i fmy if my math goes back that far. We are fluctuating between gains and losses. We see the optimism carryover. Up nikkei leading the gains, 5 . We will get the rest of asias markets in the next two hours. I want to bring in Bloomberg Markets anchor david ingles. David in a couple minutes, we will get indian futures running in singapore. The government announced it was hadnding this lockdown that to been in place in several cities, including mumbai. If you look at how markets react to news of this sort, we will get pressure. Watch as well. As far as the indian bond markets, Something Interesting happened yesterday. Of yield, not a single trade. You have restrictions where traders working from home there are things they can and cannot do. Here were jokes on the story indian bondthe markets also social distancing themselves as well. Haidi we will leave it there. The australian Prime Minister Scott Morrison is speaking at parliament house. Staff will no longer be able to turn up to work and have employment. These are difficult changes we are asking australians to amema. Australianssure these decisions are not being made lightly. We are mindful of the impact. We are mindful you are receiving a lot of information and we are moving as quickly as we can, but also seeking to be understanding of the need for australians to be able to absorb this information and make changes in their daily lives and talk to their employers and others about that. This is a time of significant change. I want to thank all australians for the spirit in which they are receiving this information and working hard to adapt to their daily routines. I have said throughout this that there will be many months ahead of this and we want to do things sustainable so we can keep doing it now, that we keep doing them month after month to ensure that we can all get through this together. Again, i want to thank the premiers and chief ministers who have been providing further explanation to the announcements i made last night. We are very conscious of the great cost of these measures and the impact on the daily lives of australians. We are there with you and will continue to be to explain as best we can. The states and territories will do what they can to follow. We do these things, we save lives. We do these things, we can save more livelihoods. We do these things, and it sets up the bridge to recovery and makes sure it is as strong as it possibly can be. The National Cabinet is meeting this evening to pick up on the items we were unable to get to last night. I am not planning at this point to be holding any Media Conference this evening after that meeting,as it is meeting, as it is largely dealing with matters in process. It is not our intention tonight to make any further announcements about those issues we addressed last night. It was a very lengthy discussion and we thought it was important we break the meeting so i could convey the decisions on the important behavioral changes, particularly the closure of premises in all the categories i announced. There are many challenges we are facing now. Haidi the australian Prime Minister Scott Morrison speaking. Calling for difficult decisions to be made. We will continue to monitor and bring you the latest on the state of the restrictions taking place in australia, and of course the broader impact of the coronavirus pandemic around the world. Rld. These days you need faster internet that does all you expect and way more. Thats xfinity xfi. Get powerful wifi coverage that leaves no room behind with xfi pods. And now xfi advanced security is free with the xfi gateway, giving you an added layer of network protection, so every device thats connected is protected. Thats a 72 a year value. No one else offers this. Faster speed, coverage, and free advanced security at an unbeatable value with xfinity xfi. Can your internet do that . It is not 00 a. M. In singapore, beijing and shanghai. We are counting down to the open of trade on the chinese mainland as well as hong kong. I am haslinda amin. Since dow jumped the most 1933 as investors see Congress Closing in on a 2 trillion stimulus. President trump wants to ease the shutdown. He would