Crude posting its longest winning streak in a year. Opec cuts may be draining the blood. And top fed officials weigh in on negative rates, saying such a move is not on the agenda for the foreseeable future. Shery lets get to a quick check of the markets. We are seeing u. S. Futures holding steady, after we saw the s p 500 fall on rising u. S. China tensions that we saw in the regular session. The s p 500 fell eight tense of 1 . Technology and utility also leading the losses. We have heard from china responding to act as asians from President Trump warning that responding to comments from President Trump warning that nasdaq sides biggest composite fall in more than a week. We also have some abysmal Economic Data. Millions of americans claiming jobless benefits. We are seeing wti under pressure, but still above the 33 a barrel level. This after sessions of gains. We are talking about the longest winning streak in more than a year. Haidi and really that crude story may be a bright spot as we get into trading in asia. Onan stocks are set to flip escalating geopolitical concerns, not just trade relations between china and beijing, but also the situation in australia with concerns that china is finding ways to make it difficult for iron ore and coal exporters. Futureseeing japanese lower, same with korea. Sit the futures looking to extend on thursdays losses sidney futures looking to extend on thursdays losses. Watching out for retail sales when it comes to that market, but we are really feeling like we set up for a risk off start to the end of the week. Haidi lets get started with our top stories. Chinas National PeoplesCongress Begins in a few hours to lay out the centerpiece Economic Policy blueprint. One late addition to the agenda, plans to impose a National Security law on hong kong. Tom is at the forbidden city in beijing. Is this even technically possible . They are talking about implementing this new National Security law. We have seen protests in hong kong the past year. But would this mean . Can they bypass the local parliament . Tom that is a key question. It looks like a way to write this law into hong kongs chart. We will have to wait to see if that is indeed the plan. Certainly that would be the concern in hong kong. We heard that expressed as well from prodemocratic lawmakers in the city. One even came out and said this would be the end of hong kong if this law was passed. Previous governments have tried unsuccessfully to get this law enshrined into hong kongs charter. Were03, attempts to do so met by process, and they failed to do it. It seems beijing is trying to work around the Hong Kong Legislature to make this into law, and the concern is it what he wrote hong kongs autonomy further. This would prevent things like secession. There are concerns it will trigger more protests on the streets of hong kong. And we have to see what the u. S. Reaction could be, because in the u. S. They passed the hong kong human rights bill into law last year. That gives them the power to review hong kong status, and that could see hong kong lose some of its trading privileges with the United States. We are looking for u. S. Reaction. President trump saying he will respond. He needs to get the details, but hes saying he will respond to this. Haidi we do see that outrage from congress. In reaction to this news, we are hearing there are two senators proposing fresh sanctions against china as a result of this. What measures could we be looking at from the Trump Administration to respond beijings latest attempt to rein in hong kong . Of as well as that review the status of hong kong potentially removing trading privileges, you do have senators , and it is another bipartisan effort from the democrats and republicans, looking now at a bill that would publish entities involved in enforcing this security law and any banks that deal with those entities. These senators are saying that they are trying to protect the economy of hong kong. House is likely to support this as well. It is in its early stages. In terms of other bills that may be presented to congress as well, youve got suggestions from some lawmakers in the u. S. That they may want to try and punish china over the coronavirus by looking for compensation. We heard from National PeoplesCongress Officials last night saying that it no circumstances would china ever payout International Compensation for the virus, pushing back strongly on that. It follows what we saw in terms of 24 hours ago, President Trump for the first time really escalating this, suggesting xi jinping himself was responsible for what President Trump was saying was a Disinformation Campaign against europe and the u. S. Prompt escalating this as well as lawmakers in the United States. Trump escalating this as well as lawmakers in the United States. Shery so what should we expect in the economic blueprint for 2020z . Tom the focus is on the gdp target. Deficitbined with the target will give us a clear as to how much stimulus we should expect from policymakers hear from the National Peoples congress, as they try to put a flaw under an economy that shrink 6. 8 of the First Quarter. The deficit target of 2019 was 3 . It is suggested that if you get ,nything below 3. 5 this year it will be a disappointment. The other area we should look at is extremely important for china, the job situation. B. N. P. Paribas saying as many as 100 30 Million People may have lost their jobs or been furloughed as a 130 Million People may have lost their jobs or been furloughed as a result of the coronavirus. The Unemployment Rate is at 6 . Most economists think it is double that. The legitimacy of the commonest party will be front and center as well. Anything else we hear about trade relationships with the United States and the Defense Budget as well. There is a since the pla will be pushing for more money this year. There is a lot to look for when delivers thatague work report at some point in the next few hours here in beijing. Lot on the agenda. Tom mackenzie continues to bring us the latest. As we get that news, we will for getting plenty more perspective, and we will be joined by our guests, including daniel rosen in half an hours time. Krach at 7 00 a. M. Hong kong. And joining us later will be the u. S. China Business Council as well as views from eurasia. Next, we hear from one stock picker and get their view on where investors should be looking as the world struggles with the coronavirus crisis. Nancy pelosi says the house will review the senate bill that would impose restrictions on Chinese Companies listed new york, though she stopped short of promising a vote. She admitted the legislation has twoparty support in the senate, but says the house will give it consideration. The bill foots further pressure on china ties. Ofan declared a state emergency in tokyo as soon as monday if the downward trend in Coronavirus Infections continues. Restrictions have been eased in osaka and surrounding regions, but the capital and nearby areas must wait longer. Says minister shinzo abe the government will always put peoples safety first amid fears of a second wave of infections. For twobiggest storm decades has cut power to millions in the northeastern city of kolkata. To ayclone is weakening tropical depression as it moves into bangladesh. Aliens have been moved over concerns that coronavirus cases caseslions millions have been moved over concerns that coronavirus cases may surgeon storm shelters. India is already facing its full first fullyear contraction for growthcades, while forecast have been cut from negligence. Isjoining us to discuss fail. Great to have you with us. It is difficult to know what the next steps are in this rally we are seeing, in particular when it comes to cyclical rotation. What is your feel on expectations of how the market will go from here . Phil i see there is a threephase event. Phase one is the shock and. Phase two is the rally we get into as we look for a reason to grind above alltime highs. We are squarely into phase two and trying to get to phase three, where we get significantly higher, and the reason we havent is we are dealing with two poles on the market. We are dealing with draconian data, 38 million unemployed and what that is going to do to decimate the economy. But on the other site, the possibility of this being temporary because of what the Federal Reserve has done could they build a bridge for a vaccine or antivirus to come to the forefront that restarts the economic engine into the United States . Thats where we are, straight in the middle of that. I want to throw up a charge which we have been using a lot, because i think it speaks to the tensions in the rebound rally we have been seeing. If we look historically, bear markets really do not produce a spectacular rally. If you look at this chart, it is unclear whether we are looking at the same trend we have seen in the 1930s. Does this feel like a great rally within a bear market, or a bull market rally . Phil thats a great question. Two things to remember. Seven of the best days of the stock market ever were right before the worst stockmarket days ever. There are significant rallies off bear markets. To me, this is a bear market in the middle of a bull market. This is an eventdriven recession, not a structural one, not a cyclical one. This was a forced upon event. If the narrative plays out that we are able to fund the economy enough to get us to the other side of this situation, in the event it is taken away by a number of different factors, whether it is heat or social distancing or a medical front, it has become somewhat temporary , and that is where we rally going into the fall. Event we have an never seen before. The world has not gone into lockdown the way we have seen it play out during the pandemic. When we see retail sales take a hit, and perhaps even for longer after the pandemic, until at least we get a vaccine, how do you make Investment Decisions when the future is so unclear and we have really no visibility when it comes to Company Earnings . Phil great question. Thats why i think the stock market is offensive, and you have to be tactical where you allocate your money. 72 of the s p 500 is still operating well. 28 is not. Lets avoid the 28 , tourism, travel. There are certain areas that are functioning well. It is in the technology sector,. He Health Care Sector there are aspects of the economy that are still functioning and growing. There is your opportunity. Shery one of your stock picks is marriott international. We have talked about how much travel is going to hit. Why marriott . Phil there is always one name i want to be provocative on. I mention colgate and microsoft and cosco, great names, but there are always folks looking to spend money on a risky name. This is the largest wholesale chain in the world. Its also got one of the strongest Balance Sheets of any wholesale chain in the marketplace, and it is selling at a rate you probably will never see in your lifetime. We do turn the economy back on. It is a volatile position, but i would not expect bankruptcy out of marriott. They are too strong for that. For that reason, you can take a gamble on a stock that is a great name. Point, a lotrys of commentators say this is similar to that impact you would see if an asteroid hit the earth, in terms of the unprecedented, unexpected nature of the crisis. What is the impact for the consumer . It feels like where the markets will go depends on a rebound in consumer demand. Phil lets remember in the United States that we have a demographic issue, like the rest of the world, but in the u. S. Are older population is very wealthy. They are less worried about being unemployed and more worried about, can they go out and safely spend their money . There are two drivers that will hold back spending but not eliminate it. One, we will see a movement to places online, like amazon and so on. Once we get the economy opened up again, i think we will slowly improve but not be nearly as draconian as expected. We will not see a complete fall in spending, because wealthier folks are less worried about being unemployed. They are more inclined to spend when they can do it safely. By july and august, they should be able to safely spend again, and that will drive consumer spending. Haidi the chinau. S. Relationship continues to unravel. We have a bill looking to potentially delist Chinese Companies in the u. S. Chinasa challenge to proposed security law being forced upon hong kong. What kind of stocks would you look at as being particularly vulnerable to this next round of diplomatic and trade tensions . Phil that is interesting to me. When you look at the industrial sector, you have to be concerned about everything that is industrial. Those are areas that are going to be hardhit. I dont expect this to play out. There will be a backing off. Either economy can handle another severe blow to potential growth. Neither economy can handle another severe blow to potential growth. I dont think this turns into a trade war. If it does happen, you have to be careful in the industrial, material, and energy sectors. Thank you very much for your time, phil blancato. The bank of japan is set for an emergency meeting just hours from now. We will tell you whats on the agenda and the urgency behind it. Shery more fed officials are rejecting negative rates to ward off the impact of the coronavirus. Kathleen hays has the story. We heard from top officials at including rich clarida. What did they have to say . Kathleen he said something jay powell probably agrees with wholeheartedly. He talked about the coronavirus creating a situation that is uncharted. It is hard to know where you are going. He does not think the fed will be in a position to give guidance until at least the fall. One thing is for sure he is against negative rates. He noted back at the fomc meeting that every one of the members were against negative rates. The number three man at the fed, john williams, spoke today. He made it clear that he is not positive on negative rates. Lets listen. In my view, we have the tools without going to negative Interest Rates. We are going to use those tools as powerfully as we can to support the economy. I dont see negative Interest Rates as something we need. Kathleen of course, all of this against the backdrop of u. S. Jobless claims they rose 2. 4 million in the late jobless claims. They rose 2. 4 million in the ofest week, with a total 38. 6 Million People losing their jobs since midmarch. That no wonder, then, traders are saying, what are they going to do . The economy is still falling apart. Thats why they are still betting the fed is going to have to inevitably face this. But clearly no move should go there yet. The boj, weve got another emergency meeting today. Will a week inflation rating really force them to do anything different . Kathleen it is interesting because it is going to be negative. Been negative, the cpi, for three years. However, our Bloomberg Team in tokyo saying what they are trying to do is show a couple of things. They want to show a nimble stance on recovery. Maybe the boj is trying to say, look, we are doing whatever it takes, in terms of concrete things, maybe not just optics. They want to finalize the details of their Small Business lending plan. The team in tokyo is saying, dont expect any showstopping policy moves. They are going to be looking at what they can do the main concern now is keeping Small Businesses afloat. They have a direct lending plan that they hope to finalize and probably announced to the world. This is different from the Federal Reserve, like that main Street Lending facility where the Federal Reserve is setting up a Lending Program to go out to Small Businesses. This will funnel money directly to the people who need it. The cpi is down 0. 1 on a yearoveryear basis. It was up 0. 4 yearoveryear in march. I think it is all about the direct Lending Program. They have caught negative rates already. They are already doing the negative yield curve control. They are going to talk about it and the economy, potentially, but mostly its about what they can do for Small Businesses. Haidi we look ahead to that. Economics and policy editor Kathleen Hays with a preview. We do have more on what to expect from the bojs emergency meeting. We are joined in the next hour by a former Monetary Policy board member with her reaction to those numbers. We are also getting breaking news on the bloomberg regarding one of the largest pharmacists in australia. A noncash impairment in kmart group. They are also set to significantly reduce their target store network. Seeing that the majority of proposed closures in target stores will occur in 2021, another indication of the pressure on the Retail Sector here in australia amidst the lockdown. Lets get a quick c