Aviation. He said the coronavirus has changed the Airline Industry forever. We are getting breaking news across the bloomberg. We have westpac earnings and details with regard to the dividend policy. The first half including special, 2. 2 billion australian, net margin with regard to that decision on the interim dividend, differing a decision to be made deferr ing a decision to be made, looking at the impact of the coronavirus slowdown and the credit loss provisions as well. They will move smaller scale businesses into divisions so it looks like restructuring effort. The cash profit, 933 million. The decision to defer the policy. Looking at u. S. Futures dropping in the asian trade. Shery adding to declines we saw friday, on the back of abysmal economic data, not to mention profits earnings from u. S. Companies. Futures are falling more than 1 . Sincet saw the best month 1987. When it came to world stocks, it was a rally of 10 for the month of april. Oil declines, probably more than 3 falling more than 3 . This after the first weekly gain in about a month. We had started to see production cuts lifting physical markets. Oil Companies Like chevron, exxon talking about major closures, not to mention opecs pledge to cut 10 Million Barrels a day has gone into effect. Lets take a look at our top story, the Trump Administration ramping up rhetoric against china. Mike pompeo has been mentioned again linking the outbreak to a lab in wuhan. The Intelligence Community should do its work and verify so we are certain. There is significant amount of evidence this came from that laboratory in wuhan. Haidi ros krasny is in washington. Endpoint weogical can see with regard to the antagonism pompeo and the others towards china . We see retaliation from beijing as well. Down anothereading rabbit hole of possible retaliation similar to the trade war we only ended a couple of months ago. It is interesting how this theory about wuhan labs has moved from the fringes of republican circles to the centerright with the president and pompeo. I dont know what the endpoint is. We have seen trump in the past week escalate efforts to pin the blame on china. I think as the u. S. Death toll rises, that will ramp up. There were rumors or talks about what trump might do including ,topping u. S. Mutual funds government mutual funds from investing in chinese stocks, very serious things. It is really unclear. I think it is going to be a line of rhetoric for weeks to come. Shery we know the reopening is well underway, President Trump will be speaking tonight. What are we expecting . Ros tonight is a big extravaganza of patriotic extravaganza, a adriatic event patriotic event. Will be trump, mike pence, the treasury secretary, they will be on featuring hard states that are reopening, the extent of the economy they hope to get back, so expect a raucous Campaign Rally type event. Drip, continue to get the drip, drip from other states, which are opening very slowly there there are some states that have tried to open quickly, then started to backtrack because the number of states are seeing rising coronavirus cases. There is no clear path on a national basis. That is one element. One thing we saw today is conservative groups will start monitoring and grading governors on how well or how quickly they open economies. It is a tactic they have used for tax cuts and guns legislation, so opening the economy is the next litmus test. Haidi is new york area pointing the way for the rest of the country . There is even, from andrew cuomo, the idea people will be lulled into a false sense of security. Ros exactly. In new york there have been more people on the streets, coming out to see the thunderbirds fly over and taking in the weather. That is an issue. I national basis, new york and the tristate statistics have a big sort of overcompensating impact. Illinois, michigan, North Carolina are still seeing cases and hospitalizations rise. That is something that the founder of the fda said. He said the u. S. Could be entering a new normal where there is 20,000 to 30,000 cases a day. New york and new jersey might be on the downslope, but other states are moving up. Shery Senior News Editor ros krasny in washington. We will have more on the pandemic when we are joined by peter doherty. Lets get a look at first word headlines. Japan will announce plans to restart the economy while extending the state of emergency until the end of the month. Prefectures can shut businesses and ask people to stay at home it was to end on wednesday. India is extending its lockdown, but some places can remove regain activity. Europeon rates in continue to decline with the worst affected countries reporting fewer casualties. France will extend until july 24, saying any premature relaxation could trigger a second wave of cases. Italy reported the fewest virus deaths since the lockdown started two months ago. Fatalities in spain for the lowest in six weeks and in germany since the end of march. The virus could trigger hong kongs worst economic slump even as the government prepares to ease health measures. The secretary reported repeated his view of 7 contraction, the worst since records began in the 1960s. There is a expected decline of 6. 4 . New pictures of kim jongun did little to halt fears. There was pictures of him at a fertilizer factory, but made no comment on the fact he has been out of the public for three weeks. The images showed him accommodate accompanied by his sister who has been remote it to his inner circle. Promoted to his inner circle. Haidi the former australian ambassador to china said relations have followed to the lowest point in 46 years amid the virus pandemic. He joins us later this hour. Should investors sell in may and go away . The Market Outlook as the new month gets off to a bumpy start. This is bloomberg. Shery u. S. Equities futures are pointing lower after spending the first trading day of may in the red. People are concerned about what lies ahead, a second wave of infections, fresh tensions between the u. S. And china. Michael jones is ceo and chairman of terrible concepts. Aravel concepts. Will you be trying to do more in may or ride it through . We will ride it through, but investors need to fasten their seatbelts and realize after an awesome april, we need to prepare for a volatile may. When i was on bloomberg month ago, i was confident with the billion ining 3. 5 liquidity, financial prices were going higher. I am confident with washingtons determination to spend what it takes and the feds determination to print what it takes to get the economy on its feet, we will be ok in the long run. We will recover from covid19. My concern is the market has priced in that optimism before we have confronted the worst of the bad news on the economy and on industries and earnings. There is challenges and setbacks that are going to be hitting us in the face for the next four weeks. We are not priced cheaply enough to look past all of that. That suggests we will have pullbacks, more volatility and we will have to have more result than was resolve. Shery it seems there is a group of stocks that continues to be resilient. We are talking about the tech giants. What we saw from earnings last week, the Big Companies seem to be getting bigger. In a post pandemic world, are these the stocks you want to focus on, especially after the results from alphabet, amazon and facebook . It is a consensus trade, but i have to agree in this instance. The only sector of the market is technology. He only major index is nasdaq everyone can say with good confidence has had their earnings prospects improved by the whole covid19 crisis. You cant say that about any other sector of the economy. These stocks are still trading below february prices. If we can agree the earnings prospects have actually improved because of the transition that will happen in the Global Economy because of covid19 and prospect of future pandemics and prices are lower, common sense says that is a good place to put your money. Worry big tech, do you about valuations, or are you more concerned if you are a longerterm investor to be looking at safety . Nasdaq the overall index, depending on your earnings estimates, it is 20 times earnings. In a world of zero Interest Rates and with the kind of Earnings Growth we are already seeing these companies able to produce in this kind of environment, i think that is not a bad valuation given the growth prospects. And they happen to also combine the good Earnings Growth with the best earnings visibility in the marketplace. Expensive inrly that environment. Haidi we may have seen it recovery withor a oil and the Energy Sector with the curbs taking place friday and watching the recovery in china and the rest of the world, as we start to reopen. Is that a good time to sell out and close out your positions when it comes to Anything Energy related . Michael i believe energy was the best performing sector in the marketplace in the month of april. I dont see a rationale for that frankly. Sawlieve that even if we Energy Prices and oil prices return back to 40 a barrel, im not sure that will save the Energy Sector longterm. I will explain why. Elon musk taught us over the last five years electric car ownership we got to experience and we liked it. What covid19 and the quarantine has showed us is what the world would be like about the smog and pollution caused by internal combustion automobiles. We like that. From tokyo you can see fuji for the first time in how long . You can see the hills in beverly hills. The dramaticeing impact the daily commute and internal combustion automobile has met to quality of life. This is a complete production on my part. Prediction in my part. Notably starting in california, there will be increasing restrictions on interval internal combustion automobiles. Preservell fight to what they have seen in terms of the Environmental Impact of not having internal combustion engines. That is a huge source of energy demand. This is a huge trend. This is something that will have almost no impact on demand for oil. When investors see the writing on the wall, they run for the exits. After a 30 rally, i would hit this. Trump what about the administration seems determined to back oil . How much support will all of those measures really supply this industry . Michael the fed can prevent the default cycle you would otherwise see in the energy patch. President trump has got to get any kind of bailout for the Energy Sector through the house of representatives. The Democratic Party has not proven to be friendly to the energy space. Theres going to be particularly on the blue coasts, east and west coast, they are seeing what life without a daily commute would be like, and they like it. There will be a tremendous fight to oppose any kind of may kind of massive bailout of the energy space. Im worried about volatility in the coming month. The Energy Sector is important to american any fracturing. Any contraction in that sector will hurt. It is going to hurt economic prospects and there will be no replacement. Shery what about volatility going into november . We have seen President Trump up the ante against china. Are we going to see more of those measures and factors that could be at play during the election cycle . Perhaps we could see antitrust measures in place . Risks arehe political high. China is doing itself no favors. They are refilling their strategic portfolio reserves with saudi arabia and oil arabian oil and russian oil. They are not filling the deal the trump not fulfilling deal with trump. There will be willingness to take them on and make them the poster child for covid19. Ultimately these kind of Political Risks, the market can get through them but they are another reason for the market to be volatile over the next five, six weeks than it was in the past. A Political Risk and environmental risk is states are going to be open up opening up in different times. They could be disappointed at the response they see from the public. Americans will be reluctant to leave their homes. There needs to be confidence some people will go back to bars and restaurants, and that is not in place. There is a couple of elements of risk that can keep volatility high for the foreseeable future. Haidi great to have you and thank you for joining us. Chairman and ceo of caravel concepts. Airlineuffett bails on stocks and tells his owners and stockholders to bet on america. This is bloomberg. You a quick check get you a quick check of flash headlines. A Board Meeting in seoul to discuss the worth of the cashstrapped carrier will consider asset sales to navigate away from the virus that collapse of air travel. The government is prepared to offer help if the carrier restrictors its business in light of the virus. Lufthansa expects to finalize talks with the government soon, which would mean it is unlikely it would need court protection. It is having a Constructive Exchange with religion and hopes to berlin and hopes to resume flights. The tonsil is in multistate talks lufthansa is in multistate talks with germany and belgium. K wrote that shares our elon musk wrote that the shares are overvalued. Ansent a stream of tweets in hour, reminiscent of the messages he posted two years ago that saw him sued by regulators. It will be extended by another week. Shery some of Warren Buffetts biggest deals were started by swooping in while others panicked. He is more cautious this time around with reversing course on u. S. Airlines. Lets get more from catherine. In 2008, Warren Buffett was a lender of last resort. What did he do this time around . Really has not done that much. That has drawn a lot of questions from shareholders as we geared up for the annual meeting yesterday. He was like we have not done anything because we have not seen anything that attractive. In the first few months through april, berkshire was a net seller of stock split exited airline, but they were kind of wrapping up stocks while the prices were depressed. That speak speaks to the fact buffett is careful. He wants to make sure that the deal he is willing to put berkshires money on the line for is a good one for the Company Overall and he is not finding those. Haidi in the meantime he has had decades long relationships with dynamic aviation. He has had a tumultuous time with the Airline Industry. He made the bet on u. S. Air, and it was troubled investment. Four years ago he filed back in, taking stakes in the four major u. S. Airlines. But then he was out again yesterday. He thinks the future is more uncertain. He said if anything it is a hard time to be an airline ceo, but he is not sticking around to figure out how it ends. Haidi [laughter] Bloomberg Finance reporter Katherine Chiglinsky with the results of that virtual annual meeting for berkshire hathaway. Kim jongun is back in the public eye, but speculation about his whereabouts has not gone away. This is bloomberg. W . W . Uhiono shery the Trump Administration is stepping up its attack on china, saying there is enormous evidence it emerged from a lab in wuhan but beijing covered it up. Mike pompeo said this is not the first time the world has been exposed to a virus as the result of failures in chinese research. Communityelligence should continue to do its work and verify we are certain. There is evidence this came from that laboratory in wuhan. Shery singapore wants people to work remotely as it prepares to ease its lockdown on june 1. The government said manufacturing and other sector should prepare for the gradual reopening but measures must ensure no flareups. The philippines have halted flights in and out of the country saying quarantine facilities are overwhelmed. The coronavirus is adding to the pressure on saudi arabia, struggling with the collapse in oil prices. Of 7 sundaylump after the painful measures after after the government said painful measures were needed. Potential deep spending cuts across the economy. House is to restart open auctions and Property Inspections next week as the government uses front of the eases coronavirus restrictions. Volumes have collapsed and social distancing measures forced the suspension of selling practices. Australia has seen a dozen new cases each day of coronavirus for the past week. Leader kimh korean jongun has resurfaced after three weeks of being absent. The mystery of his disappearance and state of his health remains. Wasd Stephen Engle tracking this very we saw the pictures at the fertilizer this. We saw the pictures of the fertilizer factory. Stephen his reappearance atbat factory to commemorate at that factory to commemorate mayday there are questions, but he appears to be alive. It didnt solve the mystery why he is out on the public eye for three weeks. Did he have Cardiovascular Surgery . Did it go wrong . Was he isolating because of coronavirus . We have heard reports and speculation. But one group is reporting he did not go through surgery and they identified the blue house officials that is the president ial office in south korea. The official did not elaborate other than to say that can also kim is unlikely to have gone through a simple operation. All we have are the photos released by the propaganda house in north korea. There is the appearance of kim, didnt show who civil weight loss. Officials are saying if he had undergone major surgery or was loseave health, he might some weight. He appeared to be the same robust selfie had prior to self she had prior to the going hading robust self he prior to going missing. His sister was among the pictures, and such proximity is used by north korean propaganda agents to indicate kims favor. One of the photos showed one official weari