t i would say is depreciating versus the dollar. going into this situation, if a narrow dollar depreciation you had asked me in january what versus the other safe haven currencies. our forecast was for the year, i shery: what does it mean long-term because you were thought the u.s. economy could talking about some of those policymakers that don't have grow at 2.25% or more. room? and a lot of emerging market countries can cut. zach: longer-term how currencies mainly because we thought global growth would stabilize, will behave will depend on the manufacturing would stabilize virus fallout. welcome to "bloomberg from last year and business we just don't know at this stage investment would not be great, which country is better equipped to deal with his major but would stabilize and the challenge. consumer would be strong. so, what i would say is we are fiscal policy, monetary policy, where public health now going to have an systems will be most affected in interruption where we are going dealing with economic challenge. to have a severe deterioration. it is difficult to look beyond i think it's likely and it may markets." ♪ up, stocks tumble as the next two weeks, next month last a quarter, it may last a and currency markets. to your question, we expect a quarter and a half. we don't know the magnitude and the duration. lot of other central banks to be but, i also know the u.s. cutting rates. we saw the bank of canada, volatility grips markets. economy has the potential to grow at around 2% as we come out reserve bank of australia this week. of this. so, i think for most companies, we should see other emerging cases klein in. markets, develop markets fed cases climb. reducing rates over the course it is not the downturn that they of march. we will see quite a lot of that. haidi: we have seen the aussie are focused on. they are looking over the testing the 2009 lows. horizon, how quickly do we come out of it and can we get back to would you see the most growing at 2%, 2.25%? destruction and some of these we hear from the dallas fed

president, robert kaplan. why one person sees i think we can but it was one of commodity exposed risk currencies? zach: not necessarily. the main reasons why it was that is what we saw the first appropriate we take action this time around when the virus was week and why we are very opportunities. treated by investors as a china let's check today on the carefully monitoring the shock. situation. monetary policy is not the lead something that was concentrated policy option in this situation. in china and therefore negative for commodity demand. we need good health care now the virus shock has gone global. street, down today, arresting western europe, north america, yesterday's gains. policies, containment policies. both dealing not only with the transportation index is it is possible fiscal policy spillovers from china but direct will play a role. enough fair market. there may be forbearance effects from the coronavirus outbreak itself. policies from a supervisory that makes the currency outlook a bit more mixed. the financials getting hit the point of view which i think will be appropriate, but that is not it could mean the dollar weakens hardest as bonds rally. the say monetary policy is not the piece of the puzzle it is versus some of those commodity 40, ax closing in on and it has a role to play. producers. if the domestic economic effects i think it can help mitigate and are more severe. it is going to depend on how the moderate are coming out of this coronavirus outbreak is evolving level we have not seen since after we get through this around the world, how the early 2018. downturn. kathleen: you are still going to credit, nowat bound currency markets are going to react to it. put them out? robert: we well. kathleen: they may look a little haidi: we have had a really bit different. robert: they may look different. unintuitive reaction. down 14 basis points on the 10 kathleen: what does the year. it has not been the shock at 91.ed coronavirus mean for inflation? absorber you would expect for a currency that is from an economy the three-month 10 year up 29 that will be dealing with there is supply-side shock and a shortage of input. economic fallout of the basis points. so, we are going to see more is inll yield curve inflation. coronavirus.

or does it mean that people are prices, do you expect this ability to remain? going to stay home and not shopping? negative territory, the we have even lower inflation, it is almost behaving a bit of it i haven as the other chinese assets, to be fair. zach: i think that is a good farther than the 2% target. five-year at -60 basis points. robert: it will be conflicting point. it has been a bit surprising to us. effects. one of the effects, for certain stability broadly speaking is gold coming off a little bit, generally what we should expect items where there supply chains from the chinese yuan. but mostly unchanged. it is clear the government likes for whereurprises are disrupted and they are not good substitutes, you could see stability in the currency in a time of other market volatility markets are heading friday. place -- price inflation but it new zealand off its lows. is likely to be transitory. or national crisis debility in on the other hand, if there is the currency. it was worse than that. less demand and more slack in i think that is one reason it the economy, you could see that in sydney pointing to a has been generally stable. having a downward effect on prices. the other reason has been the fed rate cut. weaker open. for me, looking over the just like the euro and the yen we are waiting for retail sales for january, expected to be depreciating because they don't horizon, there were still the big trend in the economy, have room to cut. the yuan may be appreciating flat. technology and technology enabled disruption, and overall because the people's bank of businesses are limited in their china does not seem interested in following the fed all the way some interesting currency moves pricing power because of the down close to zero with interest rates. as well, the aussie dollar i think the interest rate ability for consumers to use differential may be one reason opening on to the 66 handle, but why the yuan has traded technology to push back. relatively well over the last week. the yen continues to strengthen i think whatever happens for a i don't expect that to continue. at 106.14. quarter, quarter and a half, i i don't think you will see a lot of yuan appreciation. think probably monetary policy should be careful about reacting the doj may be considering a new china is dealing with a fairly

to. significant shock here and they lending program. i'm looking for more sustainable will not want a lot of currency we are also watching out for affects and over the horizon appreciation either. broad stability will be my best jobs number for january. what is the more structural drivers? guess. kathleen: similarly, recession. right around the seven level, the australian 10 year to other backing up closer to seven. yields. if you believe and hope that depending on how challenging the this is a one or two quarter next month is for the outbreak. that's check-in on first word news. phenomenon, the health >> thanks. authorities will step up, it could be closer to seven. shery: you are staying long on everyone around the world will get their arms around this, the offshore yuan and short with recommending further curbs maybe it goes away. but is there a risk? the philippines. why? zach: the yuan benefiting from amid the coronavirus outbreak recessions are often caused by a shock and this is a shock without the support of russia. the fact that policy is potentially. it is already shocking to us. they are trying to push moscow relatively stable around the currency in china. in the philippines, it is into a corner, warning if it is it possible we get a recession out of this? is that a concern? robert: it should always be a somewhat weaker monetary policy, does not agree, opec will not concern. whenever you have a severe tougher domestic picture. back it off, something that slowing. what i worry about is the knock that is really a differentiator . could trigger a price crash. on effects. yuan is going to be relatively there's a virus, the if russia is not on board, they containment, the slowing as a stable. many of these things are going say there is no deal. result of that and then third bernie sanders has canceled a to be highly variable depending and second order effects. tightening financial conditions on how the virus continues to campaign trip to mississippi and roll through the region. haidi: zach, let's talk about is one of the second and third said he will focus on michigan. order effects. that is one of the reasons why i was an advocate, let's move this the yen because that is clearly his decision follows joe biden week, because i want to mitigate behaving like the safe haven strong performance across the those second and third order effects. south on super tuesday. i think we could get through it is.

this year and into the future jpy overnight. elizabeth warren ended her without a recession, but i think it is important that broadly presidential campaign after a poor showing and said she will do you expect further upside when it comes to yen and where likely endorse joe sanders -- policy work to mitigate those does that leave the bank of japan? zach: i think the yen has financial, tightening financial bernie sanders or joe biden but has yet to decide. substantial further upside. final results in israel show in conditions as we come out of this. kathleen: how bad does china's i think it is one of the few german netanyahu falling short economy look to you? a lot of people were talking to form a new government, classic safe haven assets where about first quarter with you can still say it is negative growth. reports of layoffs, relatively undervalued. i'll long-term fair value manufacturing and services political gridlock ripping the estimate for dollar-yen will be indexes were terrible. country for a year and netanyahu 95. auto sales down year-over-year. i don't think that is going there tomorrow but i think it is tries to avoid a corruption trial. initial results showed his are they in recession territory? a realistic target if we have a very disorderly period for coalition winning half. robert: they had a severe shock global markets over the next couple of months. i do think the yen has for the first quarter. the international criminal court substantial further upside. has improved an investigation they implemented broad stimulus. the bank of japan may step in to try to protect that at some into war crimes and afghanistan point but there's relatively committed by the afghan army, they are right now working to little they can do. see if they can get people back monetary policy will be u.s. forces, and the taliban. difficult to ease and direct to work. it puts the court on a collision intervention in the currency is course with washington, which get back online and see the a bit controversial in this environment where we are still number of cases moderate. does not recognize its we will see how that unfolds, talking about trade policy, jurisdiction. currency policy with the u.s. allies. and its but i believe -- i used to live i think there is some in asia -- they are very appreciation from the yen determined to get back to a following 2011 attacks. relatively likely, unless we strong level of growth. and, i think they are going to trump wants to bring him home. get lucky and the virus shock is

global news 24 hours a day on do everything they can to do not as bad. that. my guess is what we look back a otherwise, think the air and on quicktake by appreciation trend continues. bloomberg powered by more than now, there may be somey be 2700 journalists and analysts haidi: zach, stay with us. and more than 120 countries. much more to talk about. zach pandl of goldman sachs stay this is bloomberg. in paul: thanks. with us. let's get the first word news breaking news, the saudi economy starts and recovering but i think they will work in a very unified way to try to build back with jessica summers. to some strong level of gdp jessica: airlines are being growth. spilloverstime, the warned the virus could cost them minister has been relieved of more than $100 billion in lost a source according to revenue due to falling travel to countries around the world -- demand. iata says the sector needs europe -- it will have a real in saudi arabia, saying the urgent government support, finance minister will also take effect on europe. it will have spillover effects here. including waving some taxes and on the economic portfolio after it is having strong spillover fees. 90%warning is based on a effects of the energy business, he was relieved from his post. so we are having to deal with those. kathleen: another driver for fed we have no details as to why. loss in global passenger revenue. nations with 10 or more case of policy? we will watch that story for virus account for china second largest economy, is you. in the meantime, the coronavirus that another force that would 80% of airline income. continues to spread in the united states with more cases push you towards more rate cuts? arnie sanders has canceled robert: we have been assuming confirmed in seattle in new york friday camping trip to mississippi, effectively ceding state. when china turned down in the this is as the trump first quarter, i have been votes in the south to joe biden. instead, he will focus on administration says it won't assuming that we were going to have very weak global growth and meet its goal to have one michigan which will hold the primary on tuesday. spillovers to the united states. his decision follows biden's million tests available by the it had stopped there. end of the week. covers this is my own judgment is it would have performance across the south.

elizabeth warren her here now. been manageable. presidential campaign after how did the night stays get to i think it's what goes on now in report showing. she says she will likely endorse the place where the government the u.s. economy and what failed to hit an ambitious happens with diagnosed cases, sanders or biden, but is yet to testing target? sin if you want decide. the progress of the virus, the reaction to it, and then how saudi arabia has announced a quickly we can come out of it major shakeup in government. that is the thing, for me, that to go back a month ago now, the the economy minister is being will be primarily driving monetary policy. who created its own tests, and the cds that developed its own removed from his post and will be replaced by the finance but obvious leak on the slower minister. tests instead, and that slowed global growth does not help. the change was released in a kathleen: you touched on another royal decree and he will be down the rate at which the important issue which is oil. organization got us toes up and appointed as an advisor to the running and then there turned nowto be pro that, so only morgan stanley is looking for royal court. riyaad has given no reason to near zero growth in oil demand in china this year. do you think it's going to be the move so far. that bad? byc is taking a gamble are private labs and companies will it recover faster than that make us darting to make that? robert: i wrote an essay about tests of their own, starting to build capacity and move testing three weeks ago where we recommending further oil production curves amid the actually said we think global coronavirus outbreak about gaining support from russia outside the cdc to public state demand growth for oil will be first. labs. the cartel seems to be trying to negative in the first quarter. push moscow into a corner, overestimating how quickly those this is the first decline in warning if it does not agree, private tests would get up and global growth for oil since the running was behind that rapid opec will not act at all. forecast, and taking that away great recession. thosek, if anything, something analysts say could trigger a price crash. rapidly. iran says if russia is not on board with new restrictions, hopefully we will start to see an uptick in testing, but it's projections may be a little there will be no deal. not like you can start optimistic, they may be weaker. global news 24 hours a day on immediately running test this air and on quicktake by we will have at least a couple

second thicket comes in the mail. you have to train people and quarters where demand for oil is bloomberg, powered by more than going to be much weaker. 2700 journalists and analysts. validate, so there is still a lag time. you see it in the price. i'm jessica summers. this is bloomberg. we were already going to have a very challenging time in the energy business before this. we are getting some lines taylor: the mortality rate has we had said for the coronavirus been question. that we thought energy capex in from the international monetary cases total number of the u.s. would be down as much as 10 to 15%, correct that we are questioning this always slim makes it fund, again addressing this global crisis that is the that 3.4% mortality rate? coronavirus impact on economies. the imf saying the budget issues move is probably the right more challenging. i think you will see a number of for specific countries should some defaults, restructurings, not prevent countries spending. the imf is urging transfers, tax to estimate it is a little bit cutbacks and reduced drilling lower than that. activity in the energy sector in releases, as well as tax relief for businesses. many people don't present with the united states. we are taking a look at symptoms. in that case, the right thing to we are already seeing that in process right now in talking to something that is on the imf blog, saying the key role of do is to stay home. our contacts. kathleen: another we can enforce if you're not one of the people government is to protect the world being -- the well-being of the economy? who is at risk of developing its people during emergencies. certainly not the whole economy. the imf has $50 billion pneumonia, you probably don't need to be tested immediately. robert: that element is weaker. available in rapper dispersion the offset is lower. oil prices at the pump, we've emergency financing and says the real rate is probably quite governments should be spending a bit lower. had a pretty big drop in gas that is not to say it is not prices in the pump which gives regardless of the domestic budget issues, urging such moves concerning. more money to consumers. outstrips the mortality effects willhese as tax relief for businesses and to some extent balance people, in addition to what we

60's, 70's, to themselves out but for the have seen. energy business, certainly it really gordon aided central-bank will be negative. action. for the consumer in the u.s., most economists are saying much they will pay less for oil and of the heavy lifting needs to be 80's, you are likely to get done on the fiscal side in pneumonia and a more serious for gasoline products. government spending. kathleen: do you have a ballpark the imf is really just outcome. taylor: thank you for joining figure for how low crude oil gets? reiterating that. shery: we have seen in the u.s., robert: i'm not going to try to us. as corunna vases climb, the congress trying to pass $1 forecast a price, but you billion of fiscal stimulus market saw some wild swings. noticed today opec announced -- measures in order to help in the s&p 500 had the most there's news reports they are in handling the virus outbreak. volatile week since 2011. still ahead, we will have more on that opec meeting and the discussions to cut productions by as much as 1.5 million push to make russia to do stocks arelatility barrels a day. production cuts. there some question whether it not living up to their name. how that plays out for the oil market. for more on the fallout, i want will be that or one million barrels a day. this is bloomberg. i think you will see a supply ♪ to turn to our guests and look response to demand weakness and at a chart i'm showing inside my you already seeing it. that will help mitigate and balance the impact on the price. kathleen: you mentioned watching terminal. credit spread. you have written about, you have put a lot of focus on corporate bond borrowing. his volatility here to stay? what kind of quality of bonds, the leverage, the risks there to >> it is in the short term. companies.

is there any linkage between that and being concerned about motion thanronger that and the virus? robert: so, what i have said going into this situation, and i wrote about it and talked about hope. when you have a lot of fear, people react that and sell it it extensively late last year -- since the great recession, without asking questions and the triple b debt has tripled. selling gifts can discriminate and affects areas of the market corporate, nonfinancial corporate debt, i mean away from that may be seen as more stable over time. the banks, is to gdp is the what is fair value of record high. my own view has been that will the s&p 500? >> that is a difficult question. itself be a systemic reason but in a downturn, like the one we it depends on where we end up. are about to go through, it will be an amplifier of the downturn. say we it is fair to what do i mean? if you are going into this with could end up with flat earnings on the year, then it depends a good balance sheet, you can manage through it. if you go into it highly leveraged, there's a higher risk what multiple you put on those earnings. you get a good chance of downgrades and you will need to allocate more of your cash flow to debt service and away from capex and your business. little increase in multiples that will amplify the downturn. from where we are today if this kathleen: final question, about virus stabilizes quickly, but if

30 seconds. it does not stabilize quickly should the fed do more targeted lending to help people hurt phi and it eats into the economy in the virus to get through it itore vigorous way, then rather than rate cuts? robert: we really don't have the tools to do targeted lending. will be here to stay and we i think that's other agencies of might see more of it, so a the government. what we can do is encourage banks to exercise forbearance difficult question for answer, our teams are looking at with small borrowers we didn't in the aftermath of hurricane harvey. we could take steps with names they want to be invested financial conditions to help in for the long-term, and that moderate them so we have the is the right thing to do, stay best chance possible to come out of whatever the next phases are focused on your investment process. of the virus and the reaction to it. have diverse processes across kathleen: you are confident we our platform. are going to get through with our teams are looking forward to the help of the fed? taking advantage of robert: i am quite hopeful. haidi: we are counting down to i'm confident and determined the opportunities in the market on a the market open this friday select basis. fed will do its part to help session in tokyo. mind, is theat in at this point, we can expect with this effort. kathleen: thank you for joining me. some pretty heavy losses across we are going to continue the conversation with the chicago the rest of asia. we're looking at the nikkei to be a passive council of global affairs. streaming live, starting at potentially trading at six to investor and get long and ride seven month lows, going by what we see in the future session at the moment.

5:30 central time which is 6:30 after-yen holding at 106 it out? >> our active teams are doing p.m. eastern. a root jump overnight. we hope people will continue to the best job they can to select stay with us. ofll with us is zach handlee names they want to own over a we want to thank our bloomberg goldman sachs. longer time, so there are very television and radio audience for joining us as i sat down let's dig into your favorite active decisions being made. with robert kaplan. asse are the times that you taylor: wow, thank you to comments, given how much we don't know about how much this virus will play out. an active manager really can kathleen hays. individual government responses , andhow important it is let's get a quick check of some and the such. of the latest business flash what are your interesting headlines. a potential $22 billion deal has trading ideas at the moment? zach: number one is long the you're starting to see collapsed with the parent 711 outperformance by active planning tostores, canadian dollar. managers, even last year, when we think this is the best expression among the fx market. the yen because it is one of the you see volatility increased and buy speedway gas station in the u.s. concerned about the price and active decisions by portfolio managers, these are the times also about the economic effect undervalued safe haven assets where you can see the break away of the coronavirus. that could perform as markets it would have been one of the remain rep -- relatively from passive investors. biggest deals in the world so far this year. volatile over the next month as we expect. unsolicitedting an paul: a lot of uncertainty in and the canadian dollar, the but we seemnknowns, takeover approach from xerox. bank of canada until a couple of saying the offer is to love. days ago have the highest hp says the bid undervalues the interest rate among to developed market economies and shopping 50 to see a lot of selling on a company and this reportedly benefits xerox shareholders. basis points this week. friday, just before the markets hp also says xerox's urgency in we think they could go further closed for the weekend. next month. launching the bid shows in its the canadian dollar, i think, what is your observation on this

trend? underperforms with the u.s. fridays are always unknown. words a desperation to address dollar versus japanese yen. its continued business decline. values hp at $24 that has been a good performing trade and we think it continues to run over the next month the mollison data is coming out billion and it expires on april alongside the virus related that will play into it. 21. uncertainty we are expecting. we have election cycle news, india's embattled yes bank after haidi: dollar q. week? coronavirus news, all of those the r.b.i. stepped in and aussie dollar kiwi? things have been playing into pledged a rescue plan within 30 zach: yeah, aussie dollar and days. the rbi tapped withdrawals to the news flow of the day. it is less about the end of the the equivalent of $880 million. kiwi, we think both of them have week and more so about what kind of news we might see tonight in taken the brunt of the virus shock initially. it removed the board. have deeply underperformed and early tomorrow morning and how the state bank of india, the probably underperformed a bit investors feel about going into nation's largest lender, will versus usd looking ahead. the weekend. lead a consortium which will we think the rba has another cut inject new capital into the bank. i would hesitate focusing on the short-term. yes needs around $1 billion to to go, bringing interest rates i would focus on the longer-term remain viable. close to zero in australia. i want to get a check on u.s. the reserve bank of new zealand , and being very forward thinking. it is easy to get caught up in markets. up and down day. will provide us with a little less detail, they are likely day.thes a down the emotion right now, but if cutting rates. look for both central banks to be easing over the next couple you think long-term about s&p 500 off about 3.4%. equities, these are the times transportation hit the hardest. of months. there, we think probably what when there might be opportunities presented, and a airlines with a lobbying group investors will be doing is year from now you could look at looking for long in the interest seeing a few hundred billion dollars of revenue. rates market rather than in the with the bond rally, the taking select advantage of these fx. financial index off about 4%. look for central-bank easing moments in looking back and the vix closing near 40 gets my rather than performance versus

saying i am glad we acted. attention. usd. shery: does that mean we will those are levels previously not seen. i do want to talk about the big see the aussie dollar weakening taylor: taking a look at tech bond rally because it is all against the u.s. dollar? about that 10 year falling down zach: i think we could see it a and health care, that seems to 14 basis points getting little further down. be a play in growth and value, over the very near term, probably not. below 90 today. the broad u.s. dollar is weak to so are they not mutually exclusive? >> our managers are looking you just heard from robert a degree, but if rba is cutting kaplan, the fed doing their job in the u.s. looks ok, it is across all industries, but if steepening the yield curve to possible we get that. about 28.5 basis points. you look at it being the largest that curve still remains in it is important to recognize the part of the s&p 500, it has gone aussie dollar is relatively weak. fully negative territory. down about -62 basis points on it underperformed over the last six weeks so i would not think down the most, so it has taken it is a big swing. the five-year tip. we want to focus more on the the biggest hit of the selloff. gold, we were approaching a yen, canadian dollar. seven-year high almost at $1700 ifyou think about the future aussie has appreciated now, but today coming off its highs a little bit. substantially. we have flat earnings in the s&p coming up, we will be joined by some reaction to the japanese yen. , where are you most likely to a a lot of weakness despite the goldman sachs head of fx research. get some growth. there is plenty more still ahead uncertainty with the coronavirus it is probably within technology. spreading. what is going on? zach: this was a huge debate and in the next hour of bloomberg we think about how companies are markets so stay with us. this is bloomberg. preparing, you have to work from ♪ fx markets over the last couple home, there are technology of weeks. japan has a lot of portfolio outlook. companies that would benefit japanese investors have a lot of from that as companies are money to invest in global markets and sometimes they do it focused on security outside of

the virus, certainly software in a lumpy fashion. companies, alert systems, tech but we think was going on was a lot of bond buying by japanese investors during february that companies, they would all be caused yen appreciation. involved in that. on the health care side, that's is just a one-off thing. companies are helping to solve real problems, and even touch a fundamental within technology, and health issue with the safe haven care has obviously been very status? zach: that is right. we don't buy the idea that the volatile, not just related to the virus, but also the election safe haven behavior has changed. it has performed as expected as cycle, and so health care equity markets have weakened. haidi: what is a contrarian call companies are very interesting in certain areas, so our you have got at the moment? managers are paying attention to possibly not right now, but in both sectors, and other sectors the two to four months after as well. this settles down? zach: i think the main placesth represent good contrarian call is don't count the u.s. dollar out just yet. to find opportunity. up, thecoming there is an increasing view that fed rate cuts are going to sink coronavirus striking markets the u.s. dollar, but i think it across the globe. is not this, one person is too soon to be looking for that. the dollar retains a safe haven bid and this is environment of worried about china. this is bloomberg. ♪ global volatility. it is possible the u.s. economy performs better than other

peers. i am nervous about the euro area, for example and how it deals with the virus shock given weak growth and limited ability for policy to respond. it's possible that by the end of the year the dollar is weak. that is the consensus view at this point but i am not ready to pound the table about that. we are looking for opportunities, but i don't think broad dollar weakness is the right trade. shery: thank you very much. always great having you with us. goldman sachs cohead of equity assets. you can get a roundup of the stories need to go to get your day going in today's edition of daybreak. go to your terminals, also available on mobile on the bloomberg anywhere app. you can customize your settings so you only get the news of the industries and assets you care about. this is bloomberg. ♪ haidi: good morning.

i am haidi stroud-watts in sydney where markets have come online. shery: japan and south korea open in one hour. i'm shery ahn in new york. markets:o "bloomeberg asia." ♪ top stories -- rising virus fears strike again in the market. asia and particularly japan looking set to snap a four-day sweep. the business world is under pressure. starbucks sales collapse in china, while aviation faces a $100 billion hit. the dallas fed president tells bloomberg, central bank officials are watching closely. robert kaplan says fiscal policy may have a role to play in the virus response. a look at howake asian markets are poised to end out what has been such a turbulent trading week.

volatility set to continue and ♪ .aul: welcome back most asian stocks are poised for heavy losses. we have those losses again on wall street. the s&p losing more than 3%. despite the spread of coronavirus, not all investors investor confidence again being shaken as these virus cases are pessimistic. continue to pileup in the u.s. next guest sees considerable despite containment and testing opportunity in the markets. measures taking place. we are seeing downside of four our correspondent is with that investor. china,t of companies in 4/10 of 1% in australia. even after this target open in sydney, new zealand extending james, let's start with an losses, 7/10 of 1%. interesting point, 2 trillion the aussie kiwi dollar trade dollar company comes get from betting on the next train dollar gaining momentum now. when it comes to the open in company, correct alibaba, how seoul and tokyo, mixed ?id it get there questio picture. pattern ofent nikkei futures looking positive and u.s. futures rising. gaining 3/10 of 1%. capitalization is wrong. shery: of course, the to 2 billion, coronavirus headlines playing into the market. as the outbreak continues to spread into the u.s. with new haidi: a quick check of the extreme profitability, dominance of the retail business, the cases spiking in washington, california, new york, that as latest business flash headlines. president trump has been urged

whole area of enterprise and the trump administration says it to block nvidia's proposed bid corporate software in the cloud and china. won't meet its goal to have one of semiconductors for reasons of alibaba is positioned and a million test kits available by the end of the week. national security. let's bring in robert. strong premise of the growth $7.8 billion deal poses a risk let's start with the outbreak in drivers for the future are profound. but it is unclear why. the u.s. because we have seen the german company has been trying to persuade the the west coast as the new government to ok the takeover hotspot, but also here in new but has failed to reach an agreement. >> what are some of the york, more cases. robert: definitely more cases challenges? maker. semiconductor being reported in the new york a lot of your bets are based in china. area. there were cases in new jersey boeing 737 is a step what are the challenges? overnight and today. one of them appears to be a is thatirst thing health care worker. more cases connected to closer to returning. westchester and, in seattle a certification flight could be just a few weeks away. the regulators said the last few people that run these companies today, 20 new cases. it is definitely spreading, like are the long-term to employers software reviews are almost complete and testers will be viruses do unfortunately. of capital, so there is that towns are started to take more done soon. it was granted a year ago aggressive action. shery: president trump coming up following two fatal crashes. haidi: coming up, we will be similarity with the west coast american model on that front. this week and talk about this mortality rate out of the checking on oil as opec tries to that innovative w.h.o. it is his hunch that the numbers force russia into joining them given out by world leaders may on output cuts. eighs.s the coronavirus w companies, those the government not be completely true. feel are driving things forward what do we know in terms of the u.s. response? ♪ tv just keeps getting better. are allowed to have dominance,

because now they are saying we won't have those testing kits but they occasionally have their that were promised. robert: the testing kits are wings clipped and regulation still a problem. the reason that is a problem is china's probably more effective than europe or america. there has been a lack of state have much heavier capacity to test all the patients that need to be tested. only the severest cases have been tested. involvement in these companies, they need to take this faster. particular the ones viewed as in terms of the death rate, the driving the economy. >> yes and no. other question, that is still one of the biggest mysteries. one of the reasons why the death i am quite interested in the rate may be lower that we have degree to which these chinese , think about the big been testing countries moderately severe to severe cases. only a few countries have had enough testing capacity. american technology companies. that may exaggerate the death anythingt really seen rate. haidi: the thing is with the continued testing issues, anthony fauci says he believes in america in recent years, so more people should be tested, this environment is probably particularly in a hospital settings and the like. is there a gaping window of more dynamic in china than opportunity for community elsewhere. transition if there is not more looking beyond the broad, widespread testing? how you watch it does too. robert: community transmission this is xfinity x1. featuring the emmy award-winning voice remote. fluctuations in the market, how much of your bet on china is already here in the u.s. that is absolutely happening streaming services without changing passwords and input.

especially in the west coast. depends on political stability? any serious level of seattle, the bay area, and it is live sports - with real-time stats and scores. happening in the new york city access to the most 4k content. area, so it is here. the question is we need to try and your movies and shows to go. to slow it down as much as political unease would possible. the cat is out of the bag. the best tv experience is the best tv value. interrupted. it is spreading. we need to wash her hands a lot i am very sure what is the best xfinity x1. method, but we have always felt towns hadns nds a lot and simple. easy. awesome. you will get prior indication. xfinity. the future of awesome. ultimately legitimacy of the urging people to stay home, work communist party delivers those from home if they can't. steps like that, social steps , you see thatce that towns are taking to slow breaking down first. the spread of the virus. haidi: thank you so much for joining us. spoke about the damage robert with the latest on the conflict. coronavirus situation in the u.s. the big news of the week, the softbank is the heart of that. fed surprising on tuesday with the emergency half-point interest rate cut. voting members agreed the do you think they are to blame coronavirus outbreak will impact for breaking the model? economic activity for some time. our global economics and policy i think they have a share editor kathleen hays spoke with the dallas fed president robert of responsibility. kaplan moments ago in this exclusive interview. robert: the situation has the model is broken from the haidi: we are getting some

process itself. changed meaningfully over the breaking news on the japanese last couple of weeks. you are right. if you asked me two weeks ago, i economy. , i don't think household spending coming in for was saying publicly let's see the month of january. that is a contraction of 3.9%. companies need to go public how this unfolds and i will make until later, and that is a steep straight month -- four a judgment at the meeting. it is too early to comment. what happened once the virus got structural. straight months of contraction in january. slightly less than expected. to south korea and then to i think you can pursue longer-term goals. 3.9% contraction versus a italy, and it was clear they think being owned by benchmark decline of 4% that was expected. were going to be diagnosed cases we are expecting weaker in the united states, for me at and sequoia is good for a least, the probability of a sentiment particularly when it comes to nonessential purchasing always, where it is not material deterioration in the as the economy continues to slow u.s. economic outlook, the probability of that increased to with the coronavirus impact as clear the market is supportive. well. we are also getting cash you have a lot of gains the point where i think we are earnings coming in year on year. going to need to take action at that is a gain of 1.5%, much being contained in a private the fomc meeting. better than the survey market, it concentrates those then, i felt the situation is expectation of 2/10 of 1%. gains in the hands of the few, changing so rapidly that i the rich. >> i am very sympathetic to really seeing that pickup in thought it would be wiser, and i january, but the concern is with that. will explain why, to act now and the coronavirus weakening we are trying. act boldly where it could make business activity that momentum an impact. will not be able to be sustained here's what i mean by that. we are trying to give people as the coronavirus impact access at a much lower cost. it is not going to help with i know we are not directly really gets reflected in the obviously the number of diagnosed cases. numbers. investmentut our it is not also going to get a gain of 7/10 of 1% versus

people to want to go out. it is not going to do anything expectations for a contraction about the containment reaction of 6/10 of 1%. trust charges less than 0.5%. we have often spoke about if the diagnosed cases spike. shery? shery: let's get a quick check what it will do, if we enter a of the markets right now because tesla, often when it is a lower we are seeing australian stocks price. period as a result of at its lowest level since may of last year, falling 1.6%. containment when we have a severe slowing of the economy that last for some time, a are you selling at that level every sector right now is in the today? >> no. company that is likely to be tightening financial conditions. red.financials and tech firms i want to be completely honest. and, what monetary policy can do are leading the decline . kiwi stocks under pressure. we have some clients with is if we go into this with new zealand central bank is in the minority of asia-pacific .olding restrictions somewhat easier conditions, i central banks that have really thought and i still believe it will help to moderate or refrained from interest rate cuts. although we have another meeting mitigate some of that inevitable at the end of the month. we think the company is stronger tightening of financial nikkei futures higher by 6/10 of conditions that will happen as a 1%. and more competitively advantage result of this spike in cases this despite the fact that , so we are buyers of weakness and the containment. japanese yen is stronger at the so, the judgment about the moment. we have seen the best stretch of more than anything else. wisdom of this is more looking gain since february of 2016. u.s. futures gaining ground ahead to what's going to happen the pattern these days is much in the next six to eight weeks, after a really risk off day that not what's going on right now. we saw on wall street with those and in that regard, i feel as stocks plunging and havens increases in soaring. let's bring in mark cranfield. confident today that we did the shareprice price and company right thing as i did on tuesday. starting to win. i will say one other thing. asian markets with a bit of a tesla hasunity for the number of people had a

mixed picture, although i do wonder what happened in the , so i don't think reaction because the market on u.s.? the day we did it sold off and i we have such strong gains and will tell you if the market have then a truly risk off day. gone up that day, that would i don't see anything specific in i can give you a figure. have given me no comfort the markets other than more coronavirus cases and deaths. whatsoever that we made the right decision and buy it when i think things like selling off, it did not make me >> five promise is that if it feel like it was not the right decision. new york is advising people to this is not about conditions now. stay at home, to take hits 5000 i will have you back on. it is not about the current paul: thank you. stock market. it is about mitigating a precautionary measures and self quarantine, those kinds of tightening of financial issues are a bit of a shock to plenty more still to come. conditions that will likely the people in the u.s. happen some number of weeks from this is bloomberg. ♪ now, and increasing the thinking it is more of an asian likelihood that as we come out problem. it is coming home now. of this situation, we can come this kind of erratic trading out more strongly. this week to something we are that was robert kaplan going to have to get used to for a while. it is beginning to become speaking to our global economics and policy editor kathleen hays. reminiscent of what we saw in shery: we have breaking news out 2008-2009, where you can have of the bank of america. they are informing staff of a markets rally one day and then plant virus precautions beginning on monday. completely reverse the following they will be sending more than day as people digest what is going on. it is still early stages in the 100 bond equities staff to a backup site to connecticut. economic impact and trying to they will be sending more than get a handle on where things are going is very difficult for traders, investors, strategists, 100 bond and equities staff to a

backup site in connecticut. everybody. we hardly had any economic data this is according to the bank of get which validates what is the america. that will be implementing some real effect of the coronavirus. precautionary measures because of the coronavirus outbreak we've had china pmi but not much starting monday. for major countries yet. more analysis on the fallout from the coronavirus on the may not get a good handle until , emergingth zach we see march data. we are a little bit in the dark. we are fumbling around to see what does it really mean. we see lots of lofty headlines market strategist. about coronavirus developing when there is always market more quickly around the world uncertainty, they will know what but what does that mean on the will happen. ground? there is some panicking, you turn to safe havens, the u.s. for the effectan dollar. now with the fed's, emergency on major events? rate cut where does that leave these things we are still it? grappling with. zach: a bit lower is the answer. with the market positioned at the start of the year, people were bullish on markets in general. investors are fleeing to other there is still potentially quite safe havens that have a limited ability to reduce interest a bit of a unwinding to do. rates. the euro, the yen, the swiss these big shocks are some the we franc are also swiss havens -- are going to have to get used to for a while. shery: in the meantime, we are also safe havens. the fed had room to cutnd they continue to see more measures to have taken advantage of that. actually deal with this have beenwiss nationalan outbreak, especially on the business side. vice president mike pence holding the daily briefing, saying he will be meeting with

cruise line leaders in florida. he has been trying to meet this week with airline ceos as they are trying to reduce the fallout of the coronavirus that you were mentioning earlier. but, given all the uncertainty, does it make sense we are seeing the swiss franc surging? mark: yeah, it is finally coming into its own. we saw the yen getting stronger for a few days but the swiss is the other major haven currency now beginning to catch up. we had a very big move on thursday across the globe. it has been used as a funding currency for some of the traits .aylor: breaking news going on. this will be pretty painful if people have to unwind swiss bank a deal is being reviewed by a against asian currencies or latin american currencies, wherever they have been using national security panel. it. this can have a very big effect on currency markets across the world because it has been the the trump administration has cheapest currency to short among blocked a lot of tech deals over the measures. the positioning could be heavily ties to china. skewed in one direction. cypress semiconductor is a $7.2 when you get a big move like billion company. yesterday, it could threaten a lot of positions and the knock

, about $2echnologies on effects can be pretty substantial. we've seen a huge jump in volatility as well. this is something that is billion. this merger being reviewed by probably in the early stages. we mail see -- may well see the the trump administration. euro drive towards parity level check of get a quick as well. the central bank will certainly the latest business flash headlines. be watching it closely. we've seen in the past they can reports business heard by coronavirus, sales in china be quite aggressive when they are trying to change direction fell by 70% compared to the but it would be surprising if there is not more swiss franc seven time year ago. positions to be taken out in the hit at 400uts the short term. haidi: in terms of central million dollars to china revenue and said the sharpest or client ordinate action, we have a chart was the second week of february that shows the high level of and also saw it saves no signs expectations of more central banks around the world. of a virus-related impact on u.s. operations. the ecb tries to do something. the boe likely to do something. pulling outes are the markets are now fully of sxsw because of the coronavirus. pricing in another 50 basis apple and netflix are the latest point cuts from the fed on march threatening an 18. the question is, are they going to be disappointed and will it help given we saw equities event that is one of the industries most influential selloff this week? gatherings. mark: yes, certainly there is a apple was set to debut three new projects. major risk that it will not be

long before investors think netflix has canceled five movie screenings on a panel. others have also pulled out. central banks have done all they can. it is already down to 1% on the fallingt airlines said interest rates. even they have got limited bookings will hit first quarter amounts of room without avenue. considering the possibility of negative rates. the coronavirus is still there are other people like ecb affecting u.s. air travel. the carrier has seen a and the bank of japan with the significant drop in demand and a negative rates already. how much more that can they rising number of cancellations. do? southwest expects a $300 million certainly, people will be starting to think the monetary impact on first quarter abouting revenue, pulling policy is not the only way to address this. this is not just a demand problem. it is also a supply shock. 2% from a year ago. a bit unusual for the global those are the business flash headlines. paul: thanks. economy to be hit both ways at the same time. a lot of people have not had to deal with this before. let's check how markets are monetary policy helps trading. psychologically. it does certainly improve new zealand is off conditions if people want to almost 2%, but that is an borrow money but it might not be the only solution yet. improvement from earlier in the day. shery: mark in singapore. sydni futures lower also by 2%, the market opening in about 30 haidi: oil is under pressure minutes time. just to give you some context, after the first day of the opec nikkei futures weaker. plus meetings.

uncertainty whether russia will take a look at currencies. agree to propose new production cuts. the yen the big mover. we are seeing new york crude up by 6/10 of 1%. 100 6.07 against the greenback. brent holding onto those losses. still to come, conversation with brent futures closing at a three robert kaplan. year low. stay with us. this is bloomberg. let's bring james thornhill. ♪ this is bloomberg. ♪ we are seeing a pretty strong reaction to these lack of developments which we hear again when it comes to saudi arabia and russia. : characterizing these meetings in vienna. i would say the market has stabilized a little bit in asia. the u.s. benchmark is a little bit firmer. after quite a big drop in the previous day. that came on the back of uncertainty, as you mentioned, whether russia would play ball with the 1.5 million barrel cut that the saudi's and the rest of opec are sort of asking for. with brent trading back below $50, if they cannot reach a

compromise, we could be looking at further shock losses in the oil price. haidi: the issue is the structure of opec and the plus part, right? do we expect this dilemma to be resolved? james: very much so. we are talking to parties, the saudi's on one side and russia. the conventional wisdom is that russia can withstand a lower oil price than saudi arabia in budgetary terms. that is why they are reluctant to agree to more aggressive cuts. i think what i will say is in a different world and environment from previous meetings, nobody knows how the coronavirus is going to play out you have the likes of goldman sachs and morgan stanley saying the men may contract this year for oil. first time in nearly 40 years that has happened. a very different world now. ultimately, there has to be good chance that russia does compromise and that will ultimately end up offering some support to the market down here.

shery: what do we know about chinese oil demand specifically? we have seen chinese buyers implementing. james: we have. it is hard to say, simple answer. still a very unclear picture in terms of shipments coming in and paul: welcome back to bloomberg out of china. announcement or markets. i'm paul allen, with taylor riggs in san francisco. speculation yesterday. want to get you across a breaking news on the bloomberg that is replicated across a terminal from costco, saying we number of china and it will have are doing our best to stay in impact. stock. costco says it is getting daily we have seen signs hta shipments but it is still not enough. coronavirus -- that coronavirus at production levels factories. cases are stabilizing in china and that activity is starting to return to some sort of this all of coronavirus. normality. there will be hopes that that costco saying coronavirus demand level will pick up in the transferred back -- trepidation coming weeks, but very uncertain picture at the moment and hard transportation impact. to predict. shery: james thornhill, thank

you for the latest on oil prices inspired by weak and opec. we have breaking news. we are hearing from j.p. morgan coming up and saying their ceo jamie dimon had an emergency heart surgery. we are hearing he is awake and well after the heart surgery. saying- j.p. morgan dimon is awake, alert and recovering well. ceoourse, we have seen -- before the break. jamie dimon speculating about his retirement. over the course of the weak, asx his default answer has been in the next five years. early 60's and is off 7/10 of 1%. now we are hearing he had an emergency heart surgery. he's awake and well after the surgery. governments around the world are opening fiscal tabs to fight the coronavirus with more than $54 billion in budget support already pledged or under consideration globally. dan moss says there is no better 7.2% the7.2% the aussie holding onto the 66 time than now to spend a big wad cents handle.

of money for issues like south korea. he joins us from singapore. the fed with an emergency we have seen a very strong parts half-point cut with economic -- response from south korea on the government fiscal side of things with a $9.8 billion activity for some time. stimulus measure, but no real we will get to chicago with rate cut as of yet. kathleen hays. kathleen: hello. shery, no bok rate cut as welcoming on bloomberg television and radio audiences to a very special conversation of yet. with robert kaplan, president of that could change, for sure. the federal reserve bank of dallas. the thing about president we are at the chicago council of moon's fiscal response is not global affairs. robert, speaking to an audience just the package you just named, and we are glad you can take but the rapidity with which time with us. with an issue that has become stimulus is coming. the regular budget in the year, global, the coronavirus. an issue that has been so hard which was announced before coronavirus arrived on the on the markets. tuesday, twort scene, was already a record. there was a supplementary spending package last week. days ago, the fed surprise the then this week, the announced an world with a rate cut that was controversial. extra budget. it was between meetings and it the taps in korea are flowing came at a time when the fun fast, and that is fine. faces and economy being hit with they've got the room to do it

supply shock that cannot be relative to some of their peers. affected by rate cuts. debt levels are quite low. you were noncommittal about this before. why did you support this as a right, but that cannot be voting member? robert: so, the situation has said of all the countries, particular where we have seen changed over the last couple of the economy taking the hardest weeks. you are right. if you asked me two weeks ago, i hit from the coronavirus. sense to analysts are would say publicly let's see how this unfolds and i will make a saying, regardless of budget judgment. it is too early to comment. considerations, fiscal spending what happened once the virus got should still be the way forward? dan: i think that is basically to south korea and then to italy and it was clear there were correct. an interesting sideline to this diagnosed cases in the united states, for me, the probability is that is a radically different formula that what was proposed of a material deterioration in in this region two decades ago. the u.s. economic outlook, the probability of that increased to then it was all about fiscal the point where i think we will restraint, get rid of debt, keep have to take action at the fomc interest rates hybrid there has meeting. been a revolution at the imf. and then i felt this situation one constant fixture of is changing so rapidly that i financial markets in the past couple of years has been the thought it would be wiser -- i

relentless march lower in government bond yields. will look slain why -- to act a second,o korea for now and act boldly where it could make an impact. with not going to help korea can borrow at 10 years that 1.3%. why not do it? this is the time to do it. it is supposed to be obviously the number of diagnosed cases. countercyclical. it is not also going to get bring it on. people to want to go out. it is not going to do anything problem, but up about the containment reaction. it is the diagnosed cases spike. much of developed asia, the what it will do if we enter a demographics going to play well, period as a result of right? dan: they don't. containment where we have severe swelling in the economy that like last year, i spent -- late asts for some period of time, last year, i spent some time in provincial korea in a province that shery can help me with the company could face tightening conditions. what monetary policy can do is pronunciation. was theg that struck me if we go into this with somewhat easier conditions, i thought and i still believe it will help to moderate or mitigate some of aging of the population and the that inevitable tightening of plight of anyone who is young so the major cities. financial conditions that will elderly aret that happen as a result of this spike in cases and the containment. vulnerable to the coronavirus, so, the judgment about the that is not great for provincial wisdom of this is more looking

korea. ahead to what's going to happen about half ofand, in the next six to eight weeks, not what's going on right now. korea 61 million people live in in that regard, i feel as the seoul metropolitan area. confident today that we did the that makes it a great city to right thing is i did on tuesday. i will say one other thing. visit, i'm sure it is fantastic to live in, but such close the number of people had a proximity is not great either in times of epidemics. reaction because the market on the day we did it sold off. haidi: dan moss in singapore, i will tell you if the market had gone up that day, that would thank you. have given me no comfort let's get the first word headlines now with jessica summers. whatsoever that we made the jess? jessica: thanks. right decision and buy it selling off, it did not make me governments around the world are opening the fiscal tap to tackle feel like it was the right decision. this is not about conditions now. the spreading coronavirus operate. more than $54 billion has it is not about the current stock market. already been set aside. that is a mix of tax breaks and it is about mitigating a tightening of financial conditions that will likely happen some number of weeks from transfers. most asian nations have allotted now and increasing the funds, while europe spending is likelihood that as we come out of this situation, we could come almost entirely in italy. the u.s. earmarked $8 billion. out more strongly. kathleen: speaking of the stock the world health organization has warned of complacency. rallied,t sold off, it >> we are concerned in some and today it sold off sharply countries the level of

again. so, if you are looking at financial conditions and you are political commitment and the looking at maintaining actions that demonstrate that financial stability, does this commitment do not match the up the ante again for more rate face.of the threat we all cuts? does it say you did not do quite enough so maybe it is time to do this is not a dream. a little more? robert: let me put this in this is not the time to give up. context. we started this whole situation in january with a u.s. equity for is not a time market that was historically excuses. elevated. enterprise value, stock market jessica: the european central bank is asking single market cap, gdp at 50 year highs. lenders about their ability to keep operating if they are it was probably inevitable there might be some retracement and directly affected by the coronavirus operate. it has written to banks under selloff. its staffing plans and the then, the virus hit and obviously you've got a selloff resilience of their ip infrastructure. focuses onists it down to the level we are now. even at, the level we close that today we are still at the operational impact of the disease and not the potential economic fallout. relatively elevated levels by in israel results historical standards but we have a lot more variation in expectations for corporate shows prime minister benjamin earnings. netanyahu again falling short of when you have that kind of the seat he needs to form a new uncertainty, you are going to

have a lot of volatility. government. i will say i am expecting the that extends the political gridlock that has gripped the volatility to continue. country for a year and weekends we are going to have up days, down days. and that yahoo! has he tries to that's not what i'm referring to avoid a corruption trial. when i am talking about initial results show his coalition winning about half, as financial conditions and i don't think monetary policy is going to take away that stock market volatility. netanyahu declared victory. i think we should expect it. what i'm looking at is cost and the international criminal court has approved an investigation availability of credit, and into war crimes in afghanistan potential widening of credit allegedly committed by the spreads and availability of afghan army, u.s. forces and the capital as businesses have less taliban. business and demand. the ruling puts the court on that's what i'm watching. collision course with washington kathleen: six time since 1998 -- which does not recognize its jurisdiction. the u.s. and its allies invaded i am reading this because i want afghanistan in 2001 following to cut it right -- the fed cut the 9/11 attacks. rates between its regular meetings and each time it cut president trump has criticized its key rate at the next the move and wants to bring meeting. we know markets are troops home. global news 24 hours a day on pricing a move. air and on quicktake by why didn't they wait? is it possible -- what will you bloomberg, powered by more than have to see to say but the stock 2700 journalists and analysts in more than 120 countries. market to one side, we are going i'm jessica summers. this is bloomberg. to cut again on march 18? haidi: coming up next, a chat robert: at this point, it is too with australia's most valuable

startup and what they are doing to support women in the soon to judge and i will not workplace. this is bloomberg. presume what we will do. ♪ i will be watching very carefully the path of diagnosed cases. that is going to be influencing my views on what the likely path is of containment response and the u.s. economy. i will be factoring that in as we go into the march meeting. as i sit here now, i will make a judgment of that meeting. i do not want to speculate but i will not presume what we are going to do. kathleen: if the number of diagnosed cases accelerate, that will be a factor that you and your fellow colleagues will look at and say, well, it is accelerating. people will be more worried so maybe we better go ahead and do another dose of insurance or looking at financial conditions or trying to keep things in a position where they are stable. robert: even before this, i was expecting that once we get a cluster of cases that it's likely to increase. so, we are going to have to see

what the actual developments are over the next 10 days, two weeks. so, that will be a key factor, yes, i will be using to judge what is appropriate and whether we can wait longer and get more information or whether we should do more. i will be making that judgment. the reason i am commenting, i think this is not the time to be making longform prognostications. a week is an attorney to in this situation and the daily events are happening so rapidly. i am going to avoid explicitly making prognostications about what we might or might not do because events are unfolding so rapidly. kathleen: think about, you make monetary policy, but you looked on the road, and now you are seeing a week is an eternity. we understand that because people's emotions and plans change very quickly. there are different angles on this but that is a new important fed metric. robert: it tells you that data,

normal economic data we are used to relying on, i will say for me is not very useful. because you are going to see a jobs report come out -- the economic data will look pretty good, but monetary policy has to be forward-looking. haidi: the country's most what we did this tuesday, for me, was looking out ahead over valuable startup in australia the next few months and further and online graphic design out through the year. and, conversations with context platform valued at more than $3 and companies which i am doing billion. it is celebrating with a number of new issues to support women extensively right now. in the workplace. i always do it extensively but i representativea have rented out more. they are critical. and monitoring events as they who joins us on the line. unfold from here and understand great to have you. what is key out of these how companies are reacting to those and how consumers might react. measures you are rolling out in that's what i am spending my time on. kathleen: that is anticipating time for women's international day? >> thanks for having me. one of my next questions because i am thrilled to be here to talk you have this very large network about the things canva is doing of contacts. not just because you are a to support employees. dallas fed president for so many years now but you are the former we are focused on how do we really increase gender diversity vice chair of goldman, you and gender equality in the taught at the harvard business school, so you have links and workplace. we think that is key to creating conversations with many people. a self and welcoming environment for all of our employees.

if you things we have been doing that are really unique and looking forward to really turning commitment into action links and conversations with many people. what are you hearing? robert: here is what companies is around three things. one, we are providing parental are saying to me. it depends on the industry but i speak to a wide range of ceos. first of all, what they are leave, which is only only half saying is they have already come to grips with some extent with the supply aspect of this, of australian companies meaning the number of companies currently do. we also provide fully subsidized childcare. that are exposed to getting supply from china. australian schoolchildren, which interestingly, it is not as covers around 11 weeks off of school per year. extensive as for mexico. it is more individualistic by as a mother, have two young children, one and three, that is industry. but what they are telling me is very important to me. third, we have proudly partnered with a company called project f a number of them were anticipating a danger of to help us create a more gender escalation in the trade dispute creatingorganization, with china. so a number of them took steps in the fall to maybe get more greater gender equityi in c supply, thinking we might be in a more severe trade war. anva overall. that may help a number of these those are couple of things we are doing. we think it is really important companies to have a little we have this diversity with longer time before they have gender representation. severe supply disruptions. if it was just supply, for most for innovation, for a young hungry startup like us, of these companies, i think they could get their arms around the creativity, better impact. what they are doing now is problem-solving are all things we need to see within the organizati trying to determine the demand a gender diverse workforce

impact. allows us to meet the needs of how will it likely impact their customers? an increasingly diverse customer base and create a more inclusive which businesses are likely to be affected? product. that's what they and their teams people,s the head of are intensively going through right now. the number of companies, and maybe moderate. when you're recruiting talent for canva, how often does this for others, it will be more topic come up in terms of the significant but that is what attractiveness of a company that companies are trying to come to grips with. provides flexibility for working it is the demand, it is that second demand effect and the families, for women who have families, and just encouraging local supply affects. the company cannot have people or putting in place policies that their business or factory. that are supportive and it obviously will affect but indicative of the importance of gender diversity? they are trying to come to grips with domestic affects, crystal: we hear that all the particularly the demand effect. time. it is very important and a huge that is what they are working run right now part of canva culturally and a . the truth is, they are not sure. value-based organization. they are taking steps to prepare it is near and dear to our hearts. for it. when i joined canva, one of the and i think they are handling biggest thing as a young working this in a very appropriate way. mother, i have the flex ability kathleen: there is so much and i knew i had the support coming into the organization written about supply chain. that cared about the things that matter to women in the workplace. they are broken in china or not even just women, we are maybe broken or there seems to focusing on gender diversity across the board, supporting all of our employees. it is something we are looking be one of the things people are

definitely worried about. robert: a number of companies at and looking at ways of how we can improve gender diversity and that do have supply chains in china, what they are trying to women representation in the tech determine -- the chinese had a space especially at canva. spike in cases. shery: when it comes to it reached a level, it appears increasing female representation in engineering, how do you if you believe the data to be moderating somewhat. overcome the challenge of not and, what they are telling me, having a large enough pool of female engineers as you would the chinese are trying to make a judgment. do we send people back into with male engineers? talent: yeah, we have to factories, go back to work? they are trying to judge that because they don't want to create another spike in cases. competition across australia and globally is a challenge. one of the things we are doing so, we will have pretty good information on that over the next number of weeks. a number of companies are is really working on training and development. hopeful that some of the supply we have a huge emphasis on how outages with china can be do we grow and develop internal addressed. leaders to move them into engineering and other roles, there i would emphasize management roles? we cannot ignore that 50% of the is supply chains with china that are far more significant, as potential workforce is women. we need to be targeting them. you heard before, with mexico. that is why we are bringing in organizations such as project f with most companies i talk to, while this is a challenge, they to help us get under the hood and see what we need to tell me it is manageable. theleen: you mentioned how be doing different in order to increase women representation, especially in groups like traditional macro indicators we

engineering that are predominantly male focused. watch so closely, the fed shery: at a time where we are watches, they don't serve us right now. seeing tougher economic things could change quickly. i have to ask you, have you challenges ahead with the coronavirus outbreak on this revised down your forecast? bloomberg growing economy -- and on march 18, who provides the do youwer economy, how ensure these initiatives survive? crystal: we think it is the only way to survive. it is about our culture, values and it is about the people. the people are going to be the competitive difference in this market. we have to invest in our people and our culture in order to thrive. diversity and inclusion is incredibly important to employees today. that, i think, having that diversity helps us attract and retain our best employees. employees especially want, especially women want to join a labor force where they have diversity. users around the world use our products so it is important to us that we are able to mirror the customer base internally with a diverse workforce. we think this is the only way to be successful, to really focus on our culture. shery: crystal boysen joining us

by phone in sydney. thank you. plenty more ahead. this is bloomberg. ♪ ♪

shery: let's get a quick check of the latest business flash headlines. exxon mobil is cutting back on its flagship shale project in the permian basin. another sign of the effect of falling auto prices. it will cut production of 10% over the next two years but sticking with his long-term plan to triple output by 2024. investors were not impressed. 5%, makingmore than it one of the worst performers on the s&p 500 energy index. haidi: a potential $22 billion deal has collapsed with the parent of the 7-eleven convenience stores, dropping plans to buy speedway gas station stores in the u.s. also the economic effect of the coronavirus. it would have been one of the

biggest deals in the world so far this year. hp is rejecting a solicited takeover approach from xerox, saying the bid is too low. it says it undervalues the company and disproportionally benefits xerox shareholders. hp says the urgency in launching a bid shows, in its words, desperation to address its continued business decline. xerox offer values hp at $24 billion and expires unable 21. haidi: let's take a look at asian markets, which are primed to see some pretty heavy losses in this final trading session of the week. this as we have the s&p seeing losses of 3% overnight. new zealand and australia both extending those declines, under pressure as chicago and nikkei futures going into the tokyo open. this is bloomberg. ♪

haidi: the markets have just opened the trade. yousef: -- shery: welcome to bloomberg markets: asia. haidi: our top stories, striking again in the market. depends that for a dramatic plunge, back to six month lows. and starbucks sales collapsed in china, facing a $100 billion hit. shery: central bank officials are watching the virus. the immediate future remains unclear. ? going to have an interruption where we have severe deterioration --

>> we are going to have an interruption where we have severe deterioration. shery: japan and korea coming online. let's get straight to the action. ; shares were on track for the best week in over a year, but now that looks to be in jeopardy. depend comes online. we have seen that state haven handle.ser to a 105 yielding -14 at the moment, but up a couple of days ago, we saw -- fall towards -18. south korea coming online as well. -- kospi had been

outperforming. no such physical move was really made. the asx 200 trading. kiwi stocks are under pressure as well. their futures finding footing. last twoen a wild weeks. in the last nine trading sessions, we have seen six days, where it moved up or down more than 3%. volatility, 10 day the highest level since 2011. that is when the u.s. lost their aaa rating. says we do not know what is going on. back to you. coronavirus situation

topping 97,000 globally. reports thatetting three of the first cases in maryland as well. u.s. and spread in the under testing is causing concern. tom: it is, certainly. globally, we are looking at 900,000proaching that -- 100,000 mark. seattle and also new york state. in california, you have a cruise ship and there is a certain of a outbreak. that is another problem that they are wrestling with.

at least 100 26 confirmed cases in the u.s. the target at the trump administration had of rolling out one million testing kits -- they are way off that target. thathighlights the problem some governments are dealing with, trying to get the testing kits out to the places that need them. france and germany are looking at confirmed cases in both of those countries around 400. in the u.k., the first death in that country as a result of the coronavirus. focusing back on iran, that remain -- remains a concern. .n asia, south korea there is the sense that the infection rate is starting to

moderate. trying to ensure that they are getting as many people as possible covered by this, so that they can contain the virus. korea,ines out of south from decision to ban traveling to that country. they will be quarantining others from china as well for 14 days. looking at their own quarantine measures. it is still an area where you are seeing more restrictions. shery: that comes on the back of china and xi xiping canceling his visit to japan. tom: absolutely. this would have been the first official visit to japan in about a decade. the chinese are saying they will

find a suitable date in the future to rearrange this visit. both countries have seen warming ties. what we are seeing on the ground , there is another indicator that people are looking at. how much activity is resuming in the country. havef the investment banks -- have an index activity index. to 70% is up from the previous week. mapping using their function to see how many workers are getting back. economics, about 57 billion dollars pledged by governments around the world to fight the economic impact of the coronavirus. shery: the fed surprised with

interest rate cuts to cushion the impact of the coronavirus. one of those who voted was robert kaplan, who spoke exclusively to bloomberg, earlier. >> the situation changed pretty meaningfully. if you had asked me two weeks ago, i was saying publicly, let's see how this unfolds and i will make a judgment at the meeting. it is too early to comment. got happened when the virus to south korea and italy -- it was clear there were going to be diagnosed cases in the u.s.. the probability of a deterioration in the u.s. economic outlook -- the probability of that increased to the point where i came to the view that we needed to take action. then i felt the situation is changing so rapidly that i

thought it would be wiser to act , where itt boldly could make an impact. help with theg to number of diagnosed cases. it will not get people to want to go out or do anything about the containment reaction. we enter al do, if period, as a result of containment, where we have severe slowing in the economy, a topany that is likely tighten financial conditions. what monetary policy can do -- if we go into this with easier conditions, i thought and i still believe that it will help to moderate or mitigate some of that inevitable tightening of financial conditions that will happen as a result of this spike in cases.

the judgment about the wisdom of this is more looking ahead to what will happen in the next six to eight weeks. i feel as confident today that we did the right thing as i did on tuesday. had aer of people reaction because the market on the day that we did it sold off. if the market had gone up that day, that would have been no comfort whatsoever that we made the right decision. by selling off, it may be feel that it was not the right decision. this is not about conditions or the current stock market. it is about mitigating a tightening of financial conditions that will happen some number of weeks from now, increasing the likelihood that has become out of the situation, we can come out or strongly. kaplanthat was robert speaking with kathleen hays.

let's get to first word news jessica. jessica: opec is taking a little without gang -- gamble gaining the support of russia first. the cartel seems to be pushing moscow into a corner, warning that if it does not agree, opec will not ask at all, which could trigger a price crash. if russia is not on board, there will be no deal. bernie sanders has canceled a friday campaign trip to mississippi. instead, he will focus on michigan. biden'ssion follows strong performance across the south on super tuesday. elizabeth moran ended her campaign after a poor showing. endorse she will likely sanders or biotin, but has not yet decided.

sortmin netanyahu falling of what he needed -- short of what he needed to form a new government. he is trying to avoid a corruption trial. he has declared victory. stocks with jamie dimon undergoing emergency heart surgery. he is awake and alert after the procedure. 2018.o and chairman since guard told the operation was a success and that he is recovering well. global news, 24 hours a day, on air and on quicktake by bloomberg, powered by more than 2700 journalists and analysts in over 120 countries. i'm jessica summers. this is bloomberg. haidi: gaining the most ground

in about three years. it is set to scrap that deal. deal that they were planning to acquire marathon gas stations. this deal has been scrapped and this was supposed to be the biggest this year. one of the reasons it was scrapped was because of the coronavirus outbreak. negotiationsg the in the exclusive phase, according to one of those people who talked to bloomberg. gaining about 6%, the most in three years. still ahead, assessing the outlook for markets. and an exclusive interview with the oriental hotel group.

that is at the bottom of the hour. this is bloomberg. ♪

>> the coronavirus could be more serious than what we were previously thinking. uncertainty.al of provide someve to form of supply chain finance and the not very distant future now, to ensure that the effects of virus,he shock from the are not damaging. a drought this be below the level of last year. >> we will get through this, but the question is how severe it will be and how long it will last. haidi: central bankers and the

ims highlighting their concerns. joining us from sydney, head of dynamic markets. great to have you with us. what is the volatility that we have seen? what does it tell you at the moment? >> it is incredible. it reflects the volatility. the response of people -- in theeflected volatility that we are seeing in the market. to 1930's, that kind of volatility has been rare. your conviction

calls? how are you structure your portfolio to get through the next week, the next month and the next quarter? >> markets are pricing in uncertainty. -- first oflueprint -- ato not do too much the same time, we are looking for areas. . lot of work from home they are benefiting from this volume we have been seeing. pushing that portfolio more

towards the tellico areas. the industrial sector -- recession is a possibility. it is already an extreme. we are using strengthening bonds. markets, moreity emerging-market equities. they had turned cheaper because of the selloff, but compared to its relative strength, they are not that cheap. is it worth going in right now when there is so much uncertainty there? >> yes. look at the relative valuation from the history. .magine market currency something.u

it is usually the currency market that we asked terribly. you look at it from a short-term, macro point of view markets have collapsed. it is a lot better. look at it from another point of view and it is very attractive given the collapse. zach was telling us that the weakness of the u.s. dollar will not last for long because emerging markets and central banks have the room to cut. you have this competition of who

can cut more. >> yes. u.s. dollar has been strong over the past few years. it is very quickly diminishing. pricing. more cut from a relative point of view and from evaluation point of view, it is cheaper. are ahead ofets the u.s.. we have seen that in recent times out of korea and hong kong. correlation in emerging markets than there is in the u.s. shery: thank you. head of dynamic markets. we will have plenty more ahead. this is bloomberg. ♪

shery: let's get a quick check of the latest headlines. a potential $22 billion deal has collapsed for the parent of the 711 convenience stores by marathon gas station chain in the u.s. concerned about the price and the economic effect of the coronavirus. it would have been one of the biggest deals in america this year. haidi: compounding evidence that the coronavirus is affecting u.s. air tribal -- air travel. a rising number of cancellations. a 200 millioncts dollar impact on operating revenue. falling about 2% from a year ago. soaring after the r.b.i. pledged a rescue plan within 30

days. ofhdrawals of the equivalent $680. a halt on home loans. consortiumld lead a to inject new capital into the bank. it needs $1 billion to remain viable. jp morgan ceo has undergone emergency heart surgery. he is awake, alert and recovering well. su: we do know that they immediately named the copresident to be leading the bank during his recovery. we did see some immediate action. shares were down over 1%. you can go to the after hours trading chart. we know that the bank has confirmed that is coming off the low. it is confirming that he

earlyence heart problems thursday. he underwent successful immune -- emergency heart surgery. he continues his recovery. time for very critical any ceo. tied so closely to the success of this bank. terms --at we know in what we know? su: banks have been hit hard by this coronavirus situation. that important to remember dimon had thee's

most profitable year last year, but this year has been rough, particularly in the last two weeks. you are looking at a one year chart. that a lott the way of their rivals performed in the most recent session and it is very hard. one of the several banks that today announced they are dividing sales and sending some employees to remote and backup locations to deal with the potential impact u.s., of the expansion of the virus, illnesses at work and how to keep the company working. if we look at the importance of jamie dimon to j.p. morgan chase , the board recently raised his pay package to $31.5 million. that is after having that very profitable year. he is a major spokesperson for the bank.

what is important to note is that he has done well and it was an immediate response to a heart issue he had been experiencing. bank.ns to run the thank you. the latest on jamie dimon and jp morgan. this is what we are tracking. really following that volatility overnight. up bykkei 225 is still .4%. half an hour into the trading session. kospi as well. seeing stocks under pressure. this is bloomberg. ♪

haidi: we are getting the latest retail sales numbers out of australia. we see a contraction in aussie retail sales. a worse than expectations of flat meeting and another slump that we saw in january, following that slump of .5%, which was disappointing. january, we started to see the impact of the bushfires. goingvented people from outside and a deterioration in sentiment as well. is before the coronavirus impacting tourism. let's take a look at the market. sarah: worries about containment of the coronavirus are weighing on the market.

we continue to see it spread around the globe. the brutal overnight session has been seeping over into the region. we see japanese shares under pressure. the cost be as of yesterday was kospi as of yesterday was under pressure. moves on thejor currency side. it has been in favor of risk. week in for its best six months. the offshore yuan has made all of its coronavirus losses. more liquidity injections and stimulus in china at the same time. we see to year treasury yields yielding 58 basis points.

extremely oversold. lowest ever.he 10 year treasury yields at 90 basis points after slipping below overnight. it has been an unbelievable year so far. 100 basis points have been lost in the 10 years since the start of the year. breaking through that 1% level overnight. the question is, where to next? the largest quarter when it comes to basis point decline since 2011. once more. they are pricing in 50 basis points more by the end of the year. resultshe latest showing underlying profit, overng more than 87% with

$41 million. short-term outlook will continue. the group has been significantly affected by the coronavirus in hong kong. joining us is ceo james riley. great to have you with us. talk about the coronavirus impact. you are in some of the most that the hit regions like italy, china and japan. what kind of fallout are you seeing there? >> the fallout has been quite significant in february, in asia. the rest of our portfolio is limited, but with the developments we have seen in the last two days, we will see a spread of the impact, affecting our european hotels and those in other regions as well. shery: how much are you factoring in, in terms of your

profit outlook? question it will be significant, but the key question is the length and duration of the impact of the virus and measures taken to restrict movements of people globally. tell me about occupancy rates when it comes to hong kong and china. our hotels in china back to operations? >> they never stopped operations. we made sure that they stayed open and we continue to provide the service to our guests, but occupancy in the mainland of china, during the month of february was in the single digit . the same was true in territories of hong kong and macau. properties were seeing low occupancy numbers.

what is the impact that you see going forward? it is about 40% of your total revenue. this is not just the coronavirus impact that will pass in the coming months, but you assume it will pass. we have had a year that has been incredibly disruptive for the hong kong economy. , but thes true performance of our hotel in hong kong was encouragingly good in terms of a relative performance. riskng at 2020, there is a that it will impact for a number of months. and see the opportunity for a sharp correction and a revival of markets, when issues pass. difficult period of trading, i am optimistic that

when the timing and issues around the virus past, as they surely well, we will see a strong bounceback in trading, in most of the markets where we operate. shery: what changes to the --der of the limited olympics independent? >> we have put in process the appropriate procedures to ensure that we put as a priority the health of our colleagues and our guests. appropriate measures such as temperature checking and other procedures are in place, as well as travel restrictions in terms of entering into restricted areas. in japan and tokyo, the same would be the case. not takingnt, we are anticipatory action in terms of

what might happen later in the year and we are hopeful that business can continue as normal. shery: what projects do you have in the pipeline? >> that is a good question. we have about 20 projects under development, spread across the world. last year we had four new properties. we took over the management of the palace in abu dhabi this we ared looking forward, looking to be opening six or seven new hotels in the next 18 months, spread across the world in asia, europe and the americas. we announced seven new projects, , telding ones in abu dhabi aviv and switzerland. diverse locations around the world.

haidi: we continue to get coronavirus headlines crossing clue -- crossing the bloomberg. it could cost up to one million aussie dollars. looking at the destruction in revenue, etc.sm an approach to the pipeline, in the sense that you will focus on management in >> although weip # own a significant number of existing hotels, all of the 20 hotels are management contracts and asset light. while we have the balance sheet to acquire an occasional new property, our primary focus is on management properties.

that is what will enable us to bring our services and experience to a wider range of guests around the world. haidi: in terms of the share price, volumes are pretty low. is there anything you can do to boost the situation? >> the point that i would emphasize is our value was up. fordividend that we held 2019 the long-term perspective remains extremely encouraging. lecturing travel is a rapidly growing area of business. the virus is clearly having an , but i continue to be very optimistic about the potential for luxury travel, globally for all markets and i feel it is a strong area of business to be in. haidi: thank you for your time.

to's get you straight jessica summers for the first word headlines. jessica: governments around the -- more thanning 54 billion dollars has already been set aside. most asian nations have allotted just while spending is year of spending is almost entirely on italy. the world health organization warned about complacency. airlines are being warned that the virus could cost more than $100 billion in lost revenue, due to falling travel demand. the warning is based on an estimated 19% loss in global passenger revenue. nations with 10 or more cases of the coronavirus account for 80%

of airline income. saudi arabia has announced a major shakeup in government. economy minister is being removed from his post and will be replaced by the finance minister. ae change was announced in decree. they have given no reason for the move. the international criminal court has improved -- approved an investigation into war crimes in afghanistan committed by the afghan army, u.s. forces and the taliban. the u.s. and its allies invaded afghanistan in 2001, following the 9/11 attacks. president trump has criticized the move and is wanting to bring the troops home. global news, 24 hours a day, on air and on quicktake by bloomberg, powered by more than 2700 journalists and analysts in over 120 countries.

i'm jessica summers. this is bloomberg. daniel wash rose joins us to discuss diversity. this is bloomberg.

haidi: investors around the world demanding socially and environmentally conscious options. joining us here is the investment director for asia-pacific. so great to have you with us. how has this taken on a new momentum? the bushfires have certainly questions withre the types of investments we should be facing at the moment.

the last few months with the bushfire emergency in australia hasother natural disasters really kept the focus for us. .0% of australia's forest the scale is unprecedented. impact.seen an almost 80% of people in australia have been impacted by the bushfires this year. you can see why we are starting to see a lot more pressure on policymakers to show that we are doing our part.

we are starting to see that play out now, and i think that would be a continuing theme in the future. what kind of questions do you ask when you are looking to make investment? is a misconception that if you -- that this comes at the expense of performance. >> that is absolutely not the case. need to give up returns. it is about understanding more broadly the different strategies and the different impacts that they are taking two different aspects, that climate change is one of those.

-- the potential -- that more broadly reflects that they may not be doing as well as they should be. we are now seeing the treasury valley continue with a 30 year yield, falling below for the first time. this coming at a time when the 10 year yield is at a record low. treasury yields also reaching new record. falling below that 1.5% level. given the concerns about recession, we are seeing these market moves. the global economy seems to be slowing down and there is a risk

sentiment. how much will this impact the mentality on investment? think it would directly impact it at all. different.uite climate change risks -- it is happening regardless of what is happening in the economy. the bushfires do not care about interest rate. haidi: on those fronts, given everything else -- shery: on those fronts, given everything else they are facing? >> we have talked to companies about making them long-term issues. australia has plunged its way above and beyond, but we have a government that has been

very reluctant to commit to a comprehensive energy policy that way -- a shift away from fossil fuels. is that problematic when it comes to be an investor, when being any -- to investor, when the policy does not back you up? >> yes. that does not change the impact of climate change, regardless of that. we believe that the policy response is inventive inevitable. we expect more to happen in the future. we are speaking to companies about climate change and climate change policy. we would still expect those companies to keep and i on policy changes in the future. haidi: if you are in offshore

investor and assessing australian investment to carbon exposure, does australia become a geographical risk? >> that is a difficult question. yes. i think our economy is reliant on resources. that is a factor, definitely. think more broadly, it does not matter where a company -- it is still important for the duration and that is something to focus on, regardless of geography. asia-pacificor for , thank you for joining us. comes up, a cut from opec too little too late. dropping to $45 a barrel. we will hear from commodities research, next. this is bloomberg.

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opec cutsx says any will not be enough to counter a slump in prices. jeff curry spoke to bloomberg about cutting production to 1.5 billion barrels a day. >> it is too little too late. the reason for demand fell off sharply, going back three to

four weeks ago. curveok at the forward and it is already pricing in inventory build. how did they mitigate build in inventories? still there risk is and we are comfortable with our april target. the global demand for this year is negative. we saw thatrst time since the financial crisis. if opec cannot stabilize the market, what is your bearish case? below $45 ao drop barrel, you have two blowout storage. the inventories grow so much that you get a dislocation of the spot price relative to the forward price. barring breaching storage

capacity, somewhere in the low 40's is a reasonable downside scenario, consistent with a moderate recession environment. to stand foring that? can they handle that? >> the damage is done. ,y the time they cut production you are talking a reduction in april supplies. the damage is happening right now. china is somewhere between 3 million to 4 million barrels a day. could be down upwards of 5 million barrels per day, maybe even six. orting production in april may is not really going to save you in the current environment. it is too little too late. ? entering the spring season, which is when you see some turnaround. what will be the effect on other products in the market?

>> china was a big importer of crude and x order of product. they begin to tighten in the pacific, the reduction refinery in china. now we see recovery in china and it is likely to put more pressure down in the pacific. going through the data this morning, the rebound in china is significant. it came down sharper than we thought in early february. the rebound shows that it is coming back with a vengeance. haidi: that was the head of recessions, jeff curry speaking with us. a quick check of the headlines. .xxon mobile is cutting back it is another sign of the effect of falling oil prices. they will cut production by about 10% but sticking with the long-term plan to triple output

by 2024. exxon fell more than 5%, making it one of the worst performance is on the energy index. 737 makes a step towards reinstatement saying the certification fight could be a few weeks away. the regulators said the last software reviews are almost complete and pilots will test the new system soon. haidi: before we get over to the china open, let's get a quick look at how markets are trading at the moment. catch up orplaying catch down to those hefty losses in the wall street session overnight. we are looking at six and seven month lows. japan is tightening border restrictions with south

korea. we are seeing further downside. we have seen,hat a mixed bag of retail sales continuing to see weakness. new zealand also coming under pressure. have the china open in the next hour. this is bloomberg. ♪

>> 9:00 a.m. in beijing, on

neway, 8:00 p.m. here in york. >> we are continued on to the chinese open. our top stories. stocks slump across asia on rising virus fears, japanese market-leading those declines as we await the china open. the dallas fed president tells bloomberg fed officials are watching the virus. kaplan says the immediate future remains unclear. we are i would say is going to have an interruption where we will have a severe deterioration. i think it is likely and it may last a