Assessment of Global Energy demand. Saudi arabia is cutting output to the lowest level since 2002. As mentioned, we are looking at the start of the trading session. Thats get over to Sophie Kamaruddin in hong kong. We are expecting moves to the downside. U. S. Futures holding onto a three day decline in kiwi stocks. The index is off by about. 33 and markets are priced in new zealand to join the negative rate club. Amid calls for more stimulus around the world, we are waiting to see if china will cut the rate for the third time this year as the country grapples with a week start and millions of unemployed. Emerging from lockdown, the global stock rallies are sputtering. Risk is wave infection being weighed alongside the threat of business failures and job losses becoming permanent. Beyond that, the aussie dollar is bearish and ahead of the april jobs report. It is seen with a deeper impact. President trump says fed chairman jay powell is doing a good job but disagrees with him on negative rates. President trump in many ways i call him the mip. You know what an mip is . Most improved player. I think hes done a very good job. I disagree with him on negative rates. Haidi chairman powell says hes not even considering it. This negative rate question became pretty big. Officials have consistently said this is not in the cards. Its true. Jay powell himself said that he will do whatever is needed. Markets, he cut the key rate to almost zero. Openended quantitative easing. Can push af we little bit harder and get jay powell to move to where negative rates. That is what some people are looking at. Here is what jay powell said. His view specifically of going to negative rates. I know that there are fans of the policy. But for now, it is not something that we are considering. I think we have a good toolkit. Kathleen as i said, quite a toolkit. Economy, 3. 5t the million jobless claims from march to present. We know gdp, the consensus is 10 . A doubledigit decline in the second quarter. Take a look at the bloomberg chart. Jay powells words did have an impact on the futures market. The january 2021 contract had been looking for a couple of for a negative rate. Is still contract slightly inclined to the negative despite what jay powell said today. Farfetched after all. Look at the economists from harvard saying that Central Banks around the world should take their key rate and help companies that need to achieve Financing Deal with deficits. Bankercted central opened the door even whiter to negative rates in the meeting. When donald trump chimes in, i guess it is to be effective. We will see if jay powell changes his mind at all. But it is clear that either his mind is changing or someone else at the fed. He is also pushing for more government spending, right . Why would he think that the efforts that have been taken so far is the final chapter . From the very beginning, the fed has said that we are trying to take a Health Crisis and economic crisis and try to prevent it from becoming a financial crisis. Everything they have done so far has been successful. It was about millions of unemployed workers. It can turn into a bigger problem. Listen to what he said. We can turn some problems into solvency problems. It can be costly but worth it if it helps avoid longterm damage and leads us to a stronger recovery. I think he summed that up so well. Another one of the things he said really hit listeners hard. I think the stock market, for one thing, they are really not worried about the economy. Havederscores what they been saying. It look at the Economic Data from the u. S. Is the aspect of this concern about selling all of the bonds. Option, thebond final leg. With the 20 much with the fed, if not the main concern. There are going to do what they are going to do. I think theyre going to go ahead and do it as needed. Haidi still ahead, the bloomberg dollar index has seen gains in most months this year. Strengthachs says the will continue. He will be with us next. A promisingping virus treatment. But the ceo is calling for more plasma donors. That interview is next. This is bloomberg. You are watching daybreak asia. The United Nations is warning the coronavirus could erase four years of growth from the Global Economy and push more than 100 Million People into extreme poverty. Worldwide infections are now above 4. 3 million with deaths approaching 300,000. The rates are declining. To find a vaccine will only be the first step in the long road ahead. The sentiment among merchants has fallen to a record low. Felt 7. 9 in the first singledigit reading and data going back to 2002. The survey offers an early indication to how people are reacting to the pandemic and the government possible. Meanwhile, india has details of the rescue package aimed at Small Business and utilities. The government is making more than 60 billion available with more funds in the pipeline. 255measures are part of the billion dollar plan that the Prime Minister announced this week which is 10 of gdp. Malaysia surprised economists with an unprecedented expansion in the First Quarter. The outlook is less optimistic. Dp grew. 7 compared to a year earlier gdp grew. 7 compared to a year earlier. He coronavirus has crippled exports from vietnam with capital orders triggering a trade deficit of 940 million last month. Global news, 24 hours a day, on air and on quicktake by thanberg, powered by more 2700 journalists and analysts in more than 120 countries. Im Karina Mitchell. This is bloomberg. As countries around the world start to reopen economies, attention is turned to infection rates and the possibility of a second wave. For fx markets, the dollar should remain supported over the near term. Joining us is global effects and emergingmarket handle zach. Hearing from secretary mnuchin speaking in an interview saying that next year, we will be back to having a great economy. But for how long . Zach i think that is the key question. The dollar is very expensive. We think maybe 20 overvalued. The key reason the dollar has been strong for a number of years, mainly u. S. Interest rates being high relative to the rest of the world has changed. The dollar is also correlated to how Global Markets are doing. If we are in a recovering economy, even the u. S. Economy is doing quite well. It is the Dollar Strength in bad times like in march of this year. As the Global Economy begins to pick up, there is dollar weakness in the back of that as long as it is reasonably balanced to pick up across the Major Regions of the world. Shery ahn we do have geopolitical tensions on the other hand as well. The u. S. And chinese trade negotiators are not seeing eye to eye at the moment. We are seeing more pressure anddollar appreciation there was a straight trade dispute between the nations during that time. There is a challenging direction over the next few months as some of these issues have become political. Remain hear the rhetoric. We are not forecasting a sharp move higher in sharp depreciation just yet, but i think that most in vector investors should be considering portfolio hedges for the potential risk that we we return to some of the volatility in asia throughout 2019. Shery ahn will there be frustrations between the next round of tensions between washington and beijing . They are criticizing any kind of role for global liquidity throughout the process. Zach that is something that could change. How i would put that is the following. What most countries want to see is a Weaker Exchange rate. It helps foster economic recovery. The reason some countries dont is that they have a lot of debt denominated in foreign currency or they are worried about inflation. There is a lot of debt in the foreign currencies. Helpeaker Exchange Rate to foster the economic recovery. The policymakers dont seem to be looking at things in that way, referring general stability in the yuan. It would not be terribly to see the yuan we can do bit in order to help the domestic economy recover. The yuan hasnt really been behaving that way. A couple of percent year to date. We will see some further weakness and it extends further if the Chinese Authority supports domestic growth. Shery ahn what will the remedy for the weakness mean for the taiwan dollar because it has been grinding stronger recently . Yuan if we see the depreciate in the context of rising u. S. China tensions, then we would expect the taiwan dollar to weaken as well. Similar to how it behaved throughout last year. Expect thismarkets as well. Although the taiwan dollar has been very strong with trade tensions picking up, you can see the Options Markets now discounting a change in those correlations. We would expect it to weaken alongside the rmb. We have heard from the pboc that they will resort to more powerful policies. What does that mean for the currency . Zach it depends exactly what they aim for. The policymakers and china have a number of tools that they can use to support the economy. They can cut Interest Rates and encourage banks to lend credit and do fiscal type stimulus. The currency is relatively controlled. The Exchange Rate is not a freefloating Exchange Rate. It will have to be a policy pboc recommends that policy change. We think that the dollar moves up to 715, a little higher than where we are today. I think that is a choice that pboc is going to have to make. I think it still means a rate cut for credit expansion and other traditional tools. We saw them expanding the program and we saw the kiwi dollar shrinking after that. I am see in your notes that your long aussie against the kiwi. Zach thats right. New zealand is one of the places where monetary easing is still very much on the table. You heard the governor talk about that in the last couple of days that further cuts are possible, including into negative territory. Most other developed markets and Central Banks have essentially exhausted traditional Monetary Policy easing. In this way, new zealand really stands out. And the heavy reliance on tourism. Tourism and the possibility of further rate cuts, we think the new Zealand Dollar will continue to be another performer, particularly with australia and the other Exchange Rates as well. We would put that currency toward the bottom of our ranking in g10 fx. Shery ahn another economy very exposed to tourism is thailand. I see that you are along the korean won against the thai baht. Thailand is a similar story to new zealand in some ways. It is a tourism sensitive economy. And i think that we will all agree that it will take a while for that sector to rebound after the coronavirus recession. Plus, the currency is somewhat expensive. Korea is an interesting example. One for a challenging the korean won. It is a trade exposed economy with relatively weak domestic growth. A persistent underperforming currency is widespread short among investors. This year, we have a whole new set of issues. We are not dealing with trade issues but the coronavirus. It really shows off koreas strength. You have a wellmanaged economy. You have a lot of fiscal capacity and the experience of sars seems to have prepared the country for the Virus Outbreak. It is an interesting change where last years conflict was quite negative for korea. Showinges are really the strength. We have changed issues on the korean won and we are shown on the long side with asian fx. That is a very interesting call. And we have the third budget coming out of korea soon. Thank you very much for that. The Goldman Sachs cohead global emerging market strategy. Has citiesext, china near the north korean border where they will look to prevent a second wave of infections. This is bloomberg. Offy ahn china is sealing cities in the Northeastern Province of the borders of north growingglowing cluster of cases threatening to undermine the containment of the coronavirus. Our Bloomberg Markets anchor has more. China is on high alert. There will be pressure leading up to the annual political gathering after it was already pushed back because of the outbreak. And now, another headache with at least 22 infections that spread across three cities and two provinces. We are talking about the province. The schools have just reopened. These six people came into these of the clusters that have emerged in months in china. The military suspect that there could be some cases there. The Prime Minister called it on a focus of land, labor, liquidity, and loss. The cash injection with some of the power distributional companies and the 6 billion partial Credit Guarantee for the shadow banks as well. They are also lowering the tax ,ate for Service Providers there is cash in hand. Is part of the 200 62 5 Million Dollar rescue package. The new measures account for roughly a quarter of the total. So we did see markets sore on on the news ofr the budget gap widening and actually reversing losses. Bloomberg economics saying that these are mostly Credit Guarantees. There are these Credit Guarantee. Tructures shery ahn amazon business is returning to normal in the coronavirus era with one day and two day recovery delivery recovering. Say the situation is improving. And they are exporting products online. American carriers punch to the lowest. The global air travel industry wont revive. Traffic will remain at least 10 below the regional estimates for the next five years. This is well before the coronavirus crippled demand. Korean air is planning to raise more than 800 million as it looks to stay afloat after the coronavirus wiped out 90 of its flights. The carrier is looking to sell new shares to existing investors and the price is initially estimated at a 30 discount to wednesdays close. Shares have slumped 35 since the start of the year as the virus ravages travel demand. We are looking at a bearish start to the trading session in asia as we are heading since midmarch. It is really accelerating with uninspiring comments with the fed chair saying no to negative rates, putting that to rest. Not much to inspire when it comes to the data in asia as well. We are expecting the labor market data from australia to show the highest unemployment in about a quartercentury. We are looking at downsides when it comes to australian futures, japan futures, and futures in hong kong. Up next, planning to start trials ahead of a plasma derived virus therapy. We have the details, next. Staying connected your way is easier than ever. Youre just a tap away from personalized support on xfinity. Com. Get faster internet speeds with a click. Order xfi pods to your home in a snap. Or change your Xfinity Services with just a touch. All in one place. Youre only seconds away from all of that on xfinity. Com. Faster than a call. Easy as a tap. Now thats simple, easy, awesome. So were working 24 7 toected maintain a reliable network, to meet your growing internet needs. Were helping customers who are experiencing Financial Difficulties stay connected. Were increasing internet speeds for low income families in our internet essentials program. And delivering selfinstall kits to your door. Nos comprometemos a mantenerte conectado. Were committed to keeping you connected. For more information on how you can stay connected, visit xfinity. Com prepare. This is daybreak asia. Im Karina Mitchell. The Federal Reserve says the u. S. Economy faces unprecedented threats from the coronavirus and monetary and fiscal policy makers must rise to the challenge. Jay powell pushed back at negative rates, but said liquidity problems could turn into solvency issues. He added Additional Support would be worth it to afford longterm economic damage. The u. K. Is facing deep recession with the government admitting the worst is yet to come. The economy contracted by almost 6 in march. The treasury expects following data to underline the slump. The readings underline an already weak economy with the bank of england warning of a 25 contraction in the current quarter, which would be the deepest slump in three centuries. Global oil is offering an even more bleak assessment this quarter as the pandemic drags on demand. Opec is cutting for past cutting forecasts for supply cuts. Saudi arabia, the uae, and kuwait will cut according to an accord last month. President trump has widened the ss. Effort to curb Huawei Access to tech suppliers. He renewed an emergency order that restricts huawei and zte for selling products in the u. S. The administration has described huawei as a Security Risk and is present allies to extend restrictions. Global news 24 hours a day on air and on quicktake on twitter, powered by more than 2700 journalists and analysts in more than 120 countries. Im Karina Mitchell. This is bloomberg. U. S. Security agencies are warning that hackers working for the Chinese Government are trying to steal research on coronavirus vaccines. Lets get more from our reporter greg sullivan. What are the allegations or warnings as we see this ratcheting up of tensions and distrust . Greg today we had a warning from the sbi and department of Homeland Security essentially saying hackers working for the Chinese Government are trying to steal research on vacci