>> welcome to daybreak australia. i am heidi stress more -- heidi strathmore in sydney. >> we are counting down to asia's major market opens. >> here are the top stories we are covering in the next hour. wall street suffers it's worth -- worst recession since black friday. meltdown as the stimulus disappoints there.

investors say there is little chance of warding off a recession. the bank of japan is next. governor kuroda may be more aggressive as the virus further weakens the economy. >> u.s. futures start trading in the negative right now. under pressure right now. .3 percent. even after we saw the worst day since 1987. forident trump's travel ban europe not today well with investors. take a look at what we saw throughout the session. it was an incredible day on the s&p 500. the five-minute trading. if you can switch up the board, you can see what happened throughout the session. we were down 7%. we did see a little bit of a bounceback around 130 when the fed came in with surprise market operations. we have the fed ramping up measures to help the markets and liquidity with more than $5

trillion being promised. -- 1:30, that center markets a little higher. that did not last long. you can see how the 10 year yield did manage to pervak some lower,e but it was still around .8%. the same thing for the u.s. dollar. we have those gains being reversed a little bit with the fed market operations. that after surging to a three-month high. we did see the hit in the commodities market. we had oil continuing to fall toward that $30 per barrel level. we are on track to see the worst weekly decline since 2008. gold is unchanged. tohave some investors trying sell a haven in order to get liquidity. they have to get liquidity somewhere.

gold suffered, we have seen that trend throughout the week. we were just getting started in asia. >> we are looking at deep declines across asia. we are seeing losses of nearly 8%. this is the worst week since october of 2008. you have the original benchmark trading. we have worst case scenarios being mapped out. the asx 200 losing 50% for the record by the end of the year. there is extreme pessimism building across the board. global stocks are building into bear market territory. we are seeing a big surge back above 70 for the first time since december of 2008.

the questions are about how we will see support being provided for the most vulnerable in the economy. , we willk to the fed show you what happened right here. a steep drop in that space. expect that to continue. let's bring in our chief market strategist here, brett ewing. great to have you with us. we have seen really aggressive action. we are talking about a pledged $5 trillion for the markets. why haven't we seen a stronger bounceback? believe you did not see a bounceback because those moves, the 50 basis points have been priced in already. i believe you will continue to see a market selloff until we

resolve a lot of uncertainty. markets don't like uncertainty. we are facing uncertainty on three fronts. first, uncertainty in the united states on the virus. we don't have enough tests for anyone to put a true model together on how this will impact our economy. i think we will have a little light on that in the coming weeks but we don't have a lot of clarity right now on the federal reserve. they have done some action and that is great but they have already been priced in. what is important is that they get ahead of this issue next week. give the marketplace some clarity and confidence that they will stay ahead of this issue going forward. or it will eventually get to the credit market. already we have had the biggest a in credit spread in the past two days. that is a larger blowout than we had in 2008 in any given two days. i want to point that out. thirdly, it comes down to uncertainty with the fiscal policy. i think congress probably has

the lowest vote of confidence right here. partisan politics have no place when we are dealing with the economy and with people's health. i think the market has every reason to sell off like it is doing. what we need on the fiscal front is partisan politics to go to zero and to come together and focus on economic benefits. we also need them to focus on health benefits and allow our citizens of the united states to deal with this. >> given what we have seen so far. toitical partisanship going zero seems very unlikely at this moment. i don't see any catalyst coming forward in the next two days other than the fed potentially doing something big that could help the markets. you are saying in your note that you're actually buying. why buy now?

believe thatt anyone walking this earth can measure a market perfectly. i think we are close to around 25% selloff year. equities lookk more attractive than bonds. we may not bottom tick it. if you're buying equities, you should have a 10 year time horizon. that is the focus we have to stay on with our clients. yes, we could go a little lower. 15% even. that is ok because if you look out 36 months, i think a lot of this will be washed behind us. >> we are just getting breaking news. victorian premier talking about the speculation as to what happens with the grand prix. that begins today and goes into the weekend. they say there will be no spectators at the melbourne f1. there has been heavy criticism

for letting these go on. 180,000 people expected to congregate over the weekend for the melbourne f1 event. this goes to my thinking but you see the market time and time again underwhelmed by what central banks can do, what fiscal packages are being unveiled. has it gotten to a point where the physical monetary policy side is no longer what is needed and they are really looking for leadership when it comes to the health care crisis and the management of the virus itself? not just supporting the markets with another pboc push. think there are three fronts to the level of uncertainty. it has to do with the virus. over the coming weeks we will get some clarity about where we stand in the united states and around the world. we are doing more tests every day around the world as we move forward.

the markets like transparency. i think that no matter what the tests come out, the market has priced to that in. what the market does not like is not knowing and having no way to deal with what is to come. on thead some clarity real statistics about this coronavirus, i think there is a lot of modeling we could do on the economy as economists. >> i want to throw up a shot, taking a look at what we expect from bear rallies after market aftermarket falls into fair territory. greatarkets can produce rallies because you have this extraordinary level of volatility. is there a risk of complacency when we get these dead cat bounce or slight recovery rallies? what would you be comfortable with buying at this point if these see further downside price action?

brett: i would say the last two days have been cute. everything has been sold off completely. at some point, no markets go straight down and know markets go straight up. yes, a relief rally into next week. i think we get a lot of clarity on the federal reserve. i do believe we are going to get some framework on some fiscal policy dealing with the economy out of congress. have seen the carnage in the travel industry, not surprising given the travel restrictions. are those sectors cheap for you? are they dangerous to go into right now? >> we are looking at those areas.

of the bought some stocks in that area, i will go into specific names right here. you have a lot of selling pressure across the board. i think there is a lot of etf selling. that does not distinguish the good stocks from the bad stocks in this arena. i think it commoditize is all of the travel and leisure stocks. i think it presents a great opportunity for stock pickers like our firm to go and cherry pick a few that we think will come out looking really strong in 6-12 months. >> why do you like small caps? we are seeing the biggest names going after credit lines, maxing out credit lines, wooden small businesses suffer the most? >> throughout this crisis, we to higher credit worthy large-cap stocks but we do like small caps stocks. they have retraced around 40%.

i think they could have another 5-10% ago. .- to go i think the opportunities are cherry picking through the carnage and picking individual stocks within the small-cap and mid-cap arena. >> thank you for joining us. that was brett ewing. jessica: the bank of japan seems likely to extend its stimulus campaign next week to limit damage from the coronavirus pandemic and reassure nervous markets. governor kuroda may take a more aggressive stance in buying etf's. whether the boj will raise its $58 billion in purchasing target is unclear. it could depend on the state of the market. made a task reserves

to help alleviate the crisis if virus cases spike. they are preparing a second support package. it already allocated almost 5 billion u.s. dollars last month for medical care and business. the last time the government tapped reserves was in january of 2009 when the financial crisis threatened recession. the government used funds to help property and ease tax burdens. and i vance has the virus outbreak could be part of a biological attack. says the virus outbreak could be part of a biological attack. the virus has already claimed more than 400 lives in iran. there is evidence that race is a possibility. virus has hit theater land with broadway dimming it's lives -- lights indefinitely.

banning people. broadway is a revenue earner for new york. it generated $1.8 billion last year but the venues will be closed until at least april 12. global news, 24 hours a day on air and on quick take by bloomberg, powered by more than 2700 journalists and analysts in more than 120 countries. i am jessica summers. this is bloomberg. >> coming, emmanuel macron because the coronavirus the wrist epidemic of the century and that the french government will do all that is necessary to save lives. we will be getting an update out of europe. >> new york city declares a state of emergency. we will discuss all of the latest development in the u.s.. look at how the markets are trading right now. we are seeing u.s. futures continuing to fall, accelerating those losses.

worst day since black monday, 1987. this is the sixth consecutive session of losses with kiwi stocks falling the most. we continue to see dollar strength while w ti is down 1.8% and headed toward $30 a barrel. this is bloomberg. ♪

>> you are watching bloomberg. it is a cloudy night in new york city. the city declared that state of emergency. we have over 300 confirmed cases of coronavirus. the new york authorities have that have over 500 people. rules will apply to broadway theaters as well. the city is coming to a standstill. the infectious diseases expert trump'spresident

european travel ban. max also said that the testing system around the united states is failing. how could it be failing after the weeks of time we had to get ready for this? ofis a failure communication, urgency, a failure by the cdc to use a version of a test that was already working across the world, under developing its code. for the trump administration to not push for broad testing to identify cases. all of that is combined to create a situation where we are still playing catch up with cases that have existed for a while or people who need a test can get them. where we are just unable to track and break the chain of

transmission for cases all over the country. it seems like we are finally starting to get some capacity boosts to get to a point where we are at least close in areas of most concern to getting the number of tests we need but there is still much more that needs to be done. developing point-of-care tests, more rapid swabs get into labs. a lot of still to come. some progress, a lot of it too late. >> is it fair to say we have moved past in terms of flattening the curb? we have moved beyond the window for containment? the focus is now on mitigation. -- brett partnership

said political partisanship has no place. a lot to ask for. max: i would hope that is the case but we are already seeing a spat between president trump and house democrats. later mitchey mcconnell having a problem with this demos package. it is about providing paid sick leave for people who don't otherwise get it, working to make sure the tests and care are covered for people. beyond thet will get point where everyone is trying to cross things off their wish list or win a political fight and just focus on doing everything we can. even that bill is missing some things that need to be done. it is time to think about building temporary hospitals, measures that help combat the

too sensiblere not in bringing the number of cases and hotspots below the level of capacity. >> president trump now banning or restricting trouble from europe. does this make sense when we are already saying community transmission so widespread? beenw that it has endorsed, it makes me feel a little bit more positive about the move. it can really only have a limited effect when we are seeing such widespread community transition -- transmission. the issue is no longer travelers. it really is the people that we just don't know are spreading it. ,hile it may have some impact what will need to make the difference are the social measures, canceling school, canceling events to get

the spread though enough that hospitals will get overwhelmed. >> thank you for joining us. nisen.s max nathan -- this is where criticism of the central bank coming hours after the booster that kept rates on hold. matheson joins us now. we continue to see expectations that it will be central banks that do the heavy lifting to try to combat the damage that we continue to see globally from the virus. s: france and italy are pressing for really coordinated action from the ecb and the unusual criticism is christine lagarde saying that it is not enough. she says it is not -- they are

not in the business of hounding the bond market. governmentselling to do more. the main theory behind what some of the central bank is saying is that spending needs to go to companies and for ordinary people in the fiscal cents to tide them over because this is not a structural shock. it is an external one for economies. the priority needs to be to keep the doors open and companies afloat. they arerobably why reluctant to do more at this time. >> when it comes to germany, it seems to be coming around their balanced-budget policies they had in place for a long time. >> that is right. that is very important. germany is the economic engine of europe. angela merkel holds a lot of sway. thiss the one that held idea of a balanced-budget policy. what we are hearing from

officials is that it is increasing talk in the circles. that would enable other nations bus thosesuit and to rules that are essential in brussels in a physical way. likecularly for countries southern italy. the germans have not formally said they are going to do that. much they'reow how willing to go beyond their budget policy but now the doors are open from germany to say they will do that. >> what kind of reaction have we seen on president trump's travel ban in europe? >> there has been loads of anger. in part of what it would do to the airline and travel sector but also that the u.s. president couched the travel ban. he was quite critical of europe, saying that they are not doing enough to stop the virus. it came from asia to europe to

the u.s.. he believes the u.k. is doing fine even though the number of cases in the u.k. is higher than in some european union states. this also caused a lot of anger. it comes against that florida backdrop of the transatlantic tensions that are going on with everything from trade to nato. this contributes to the overall feeling that trust is really rising across the atlantic. risingistrust is really across the atlantic. >> plenty more to come on daybreak australia. this is bloomberg. ♪

>> you're watching daybreak australia. we continue to see dollar strength. aussiee picture for the and the kiwi dollars gaining ground. we have the aussie selling off after disappointment about the

$11.4 billion fiscal stimulus plan that was announced by the government. the kiwi dollar fell for four consecutive sessions. we are seeing strength on the japanese yen. this is bloomberg. ♪

>> the market opens for friday. front of the 13th. are pointing very firmly to the downside. aussie stocks slumped deeper. we could end at the year 50% lower for israeli stocks. this is after u.s. stocks plummeted yet again. haidi: i am haidi stroud-watts. >> what an ominous day. you're watching daybreak

australia. let's get the first word news. the coronavirus handed wall street is worth session since black monday in 1987. stocks 27 percent below where they were three weeks ago. new york state declared a state of emergency after president trump's action plan fell flat. reports passengers are paying enormous sums just to change flights. meanwhile, the united states is admitting efforts to contain the virus are failing. the trump administration paschi health officials tell congress that the u.s. is lagging behind and ensuring people will be tested. the system is not set up to carry out tests and the way that other countries have been doing. he said public health experts don't have a clear understanding of how wide the virus is writing. european markets went into

meltdown after the virus stimulus plan proved underwhelming. investors dumped stocks and bonds and shares of following the most on record. policy makers held off cutting rates. so its worst drop since 2016. global sports are pulling back in the face of the virus as well. the mens tennis circuit is being suspended indefinitely. hasr league baseball stopped spring-training and the nhl has joined the nba in suspending play. soccer in spain and italy is also suspended. global news, 24 hours a day on air and on quick take by bloomberg. powered by more than 2700 journalists and analysts in more

than 120 countries. i am jessica summers. this is bloomberg. >> asian stocks set to tumble after heavy losses in the u.s.. let's turn to sophie for a check of the markets. sophie: commodities have taken a hit with gold holding onto overnight losses. we had that rush of investors. losses in tokyo could be as much as 8% at the open. the yen is just holding below. geopolitics are also in view. the boj will add to stimulus next week, especially after governor kuroda indicated readiness on thursday. markets are in the spotlight. we have futures edging higher in the asian sessions after u.s. yields failed to hold their move

higher. we are seeing the aussie and kiwi dollars move higher, leading a rebound against the greenback here to prepare for more volatility ahead. geopolitics backing play as well. airstrikesnducting after iran hit u.s. airbase. we had heard from the defense secretary overnight saying that they were considering a full range of potential retaliatory measures after that strike on the airbase in iraq that killed two americans and a british servicemember. this coming just months after a similar attack almost started military confrontation with iran. let's get more analysis on the markets. we are seeing s&p futures now

sessions. it is hard to see how this ends. especially if we have that layer of geopolitical tension coming in. >> any flareup we would get wood clad -- add to the frayed nerves. the problem is you don't really have a circuit breaker that you can point to except for a real containment of the health crisis that would otherwise set investor nerves at ease. what you are seeing as the think rental policy response comes out , we have had the bank of canada continuing to try to respond to what they are seeing in the behavior of their economies and people within them. argot dynamics as well. it really is that the focus has to be on the can -- market

dynamics as well. it really is that the focus has markets.the the u.k. will leave their schools open. there is still a very big debate about how you control this. from a markets perspective, we have that circuit breaker. investorsde is where are skewed. it looks like a pretty ugly open to start us off in asia. big falls on wall street. elevatedeing the models in effect volatility as well. you're seeing it across a multitude -- a multitude of asset classes. >> the bank of japan offers some respites for the market next week? >> the bank of japan has already been offering some kind of language to suggest that they are monitoring things very ampley and providing

liquidity. corona has told the markets that over the last 10 days or so. whether they have emergency measures that can go above what people are expecting is what is at stake. there stimulus program is clearly already vast. this chart shows it. expectations are running pretty high. fun purchases remain one possibility. they could batch of that up fairly significantly. not that many people expect into lower that negative interest the and go further with yield curve control and policies we have seen over the past few years but clearly, now, the markets will be left feeling pretty disappointed unless the bank of japan comes out with something pretty far and above

what they are expecting to happen next week. >> our bloomberg global markets editor. thank you for that. guest says that president trump's travel ban is unlikely to stop the spread of the virus. great to have you with us. how much of this travel ban against europe has to do with actual containment? president, ie cannot say i understood how he decided that it did. i think that in reality, the health benefits are negligible. he may believe that they are important but i have yet to see any experts who say that. we still have a lot of confusion about how this is going to be implemented.

in asian business executive who has been in europe over the past week and a half, 10 days, two weeks, that is the cutoff point who flew back to asia and is contemplating a trip to the united states could be banned. we don't know what will happen to people who are coming from elsewhere in the world and flying to places like frankfurt and munich. there are rumors that people who have arrived to the united states over the last two weeks -- the horses is out of the barn already. we have 43 states of the 50 affected. growing --0 cases and growing. the distinction is between some u.s. states and others. legally, these are the countries

that are outside this zone. those inl ban affects that zone in europe. the u.k. has about 450 cases already and growing. it is not clear why they would be exempt when some countries who have fewer countries would be banned. >> we are hearing that president trump and prime minister abe will hold a phone call on friday morning. japan and other countries are suffering from the virus outbreak. they are seeking global cooperation given that this pandemic has no borders. what sort of message did we get from the president last night? >> etiquette was a confused message or a message that was one of the united states closing down, building walls. one of my big concerns is the economic consequences in europe.

the economic consequences were already going to be very severe. with the travel ban, you have something like 700 travelers from europe to the 700,000 travelers from europe to the united states every month. this is the largest economic relationship in the world. it is a globally important economic relationship. we will already see a recession in europe and now this will only make it worse. impact on the travel industry, the transatlantic route is very lucrative for many airlines. we have the economic consequences coming forward. they will be more severe than they would have been anyway. we also have some significant political consequences. that the european governments were not consulted

before this happened. the reaction in europe today has been very strong, strongly opposed to this. we have negligible if any health impacts for very severe economic and political consequences. haidi: i was going to say that it felt like a very political race for president trump. some will question whether it needed to be that political with all the references of a foreign virus. the president seemed to go out of his way to say that the white house had to issue a correction. how damaging is this going forward for bilateral relations? very damaging. damage -- the relationship under the trump administration has been under a great deal of challenge. this will stick in the minds of

the european public as well as european leaders. it was not overlooked that the for many blamed europe of the outbreaks in the united states. takesaid the eu failed to serious measures. i have to say that the number of shutdowns with the travel ban's within europe that have already been instigated, europe has actually been taking this pretty seriously. very seriously. sacrificing a lot, economically. returns iny in the the tourism industry to try to contain the spread of the virus. this is a time for the u.s., europe and other partners to be working together and talking about how to contain the virus and have constructive conversations about what works and what does not in containing such a pandemic. i am afraid that the president speech introduced a lot of

confusion into what the united states was actually going to do. it also created a lot of very bad feelings. that will make it harder to have those kinds of important and constructive conversations that we need to have. haidi: thank you for joining us. that was frances, distinguished fellow and a senior advisor joining us. stay with us on bloomberg markets for more on the virus related travel ban. andrew will be on with us to the about the impact on aviation industry. up next, we will have more analysis on the slump in the energy sector with daniel hein. this is bloomberg. ♪

>> let's turn to oil with prices prices seen the

biggest drop since 2008. great deal of cover to be found in response to the coronavirus with global downturn. space, evendity gold was not immune. investors sold to meet liquidity needs. let's bring in daniel heinz. ast spread may fall further the global benchmarks are expected to deteriorate as we get these accelerated market sharing's. we have these latest tensions between iraq and iran as well. about howthat tell us bad things will be in the year ahead? daniel: it tells us a lot.

that supply plug -- supply stock is expected to be seen almost immediately. we are expecting to see the floodgates open. that is weighing on spot prices. the markets are still hopeful of some sort of stimulus later in the year. there is so much uncertainty in the market. it is hard to make a judgment call. you assuming that the standoff with opec plus is more than just a game of chicken? yes, i believe the parties went into that meeting with a plan in place. that was to switch that strategy they didhat volume earlier in the decade. that has played out.

the parties really have to see how long and how deep they will make this market price go. haidi: they just mentioned gold is slumping as well. nothing will move. given all of the uncertainty out there, is it just a matter of time before another boost? daniel: i completely agree. i believe there has been some existential issues in play that have resulted in gold getting whacked in the shoulder. when i look at all of the things that tend to drive gold prices, they still look like they will report significantly higher prices, bond yields are falling. dollarct to see the u.s. relatively weak. from our perspective, i think

gold looks good over the medium term. we would expect to see significant upside from here. even pull a 10 or 15% rally, that is a pretty good possibility in the short term. >> we saw the dollar continued to strengthen. what does that mean for metals? we saw copper and nickel both slumping today. daniel: that is another thing. this will be a significant issue for commodity markets. certainly when you are a global investor at the moment and you're looking at these broad cross a lot of the asset classes, the consequence of selling becomes indiscriminate. ist wave of liquidation going to be an ongoing factor. haidi: i want to go back on your gold call. at what point does this market

-- when it becomes sell everything, havens don't behave like havens anymore. you see them bouncing around when it comes to u.s. treasuries. in the financial crisis, golden very poorly. >> gold tends to not benefit as much as you would expect during stress. i would be looking for periods of stabilization. this initial panic selling that --are seeing at the moment once this starts to stabilize, this will come relatively weak. that is when we see gold tent to consolidate. appreciate -- we see gold tend to consolidate. haidi: we always appreciate your time.

john driscoll will be on bloomberg markets at 11:30 a.m. if you're watching in hong kong. this is bloomberg. ♪

haidi: let's get a quick check of the latest business flash headlines. j.p. morgan and goldman sachs are fighting the coronavirus by staggering status. j.p. morgan is splitting new york staffers into two groups, one group working at home and one in the office. goldman is using a similar scheme with two teams of blue and white in nonspecific colors. broadcom is the latest country to withdraw its annual sales forecast. they say that the coronavirus pandemic is going to hurt demand. the ceo says he pulled the arecast because he predicted

week near-term guidance. stocks fell by as much as 10%. the market open in australia is just minutes away and it will almost certainly be an ugly end to the week. bright spots at all? paul: they are. if you're looking for bright spots, there were two of them. positives are in territory. heavybile did some selling. remember all of those 2019 gains? a shadow to everyone we had on the show at the end of 2019 who it will be unsinkable in 2020. this was your titanic iceberg moment. jet, the worst performer is of 28%. flight center is off 15%. .ravel ban's expanding

especially -- particularly the one that the u.s. put on europe. energy stocks have been hammered pretty hard. if you're looking for the not so bad, consumer staples, they did pretty well. the government announced its stimulus package. asx could be off 50% by year end. haidi: there is a hot demand for stock parlors, toilet paper. we're looking at demand when it comes to large gatherings and even as people are turning up in melbourne, there is still uncertainty about whether it will go ahead. >> you better question some of the management there.

spectators arriving as the decision is being made. mclaren already had a team member test positive. they will not be raising. he confirms that he tested positive with the coronavirus. in sydney, we have further arcing analysis with sherry next. >> we will have principal global investors and plenty more on daybreak asia. first, get a quick check of how the markets are trading at the moment. we continue to see kiwi stocks falling. this is the sixth consecutive session of falling for kiwi stocks. probably the most on record. we are seeing asian stocks under pressure. the asia open,o japan and south korea coming online. we do have australia coming online as well. this after that $11 billion fiscal stimulus and australia

underwhelmed investors. we will have plenty more to come on daybreak asia. this is bloomberg. ♪ when you move homes, you move more than just yourself.

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every day, comcast business is helping businesses go beyond the expected. to do the extraordinary. take your business beyond. haidi: in sydney, markets have just come online. shery: japan and south korea open in an hour. sophie: i'm sophie kamaruddin in new york. welcome to "bloomberg daybreak: asia." >> asian markets facing more declines as global stocks. raised atvirus has least $15 trillion in value -- razed at least $15 trillion in value since january. investors say there is little chance of warding off recession.

>> the bank of japan is next up. the virusuroda -- as further weakens the economy. >> australian markets have just opened. let's get straight to the market action with soph. sophie: after tumbling the most since thursday, ozzie shares opening to the downside -- aussie shares opening to the downside. benchmark trades at a three year low. kiwi stocks are falling the most on record. recession fears driving the rout we are seeing in sydney. fiscal and monetary policy budgets are seemingly doing little to lift market's confidence. more virus containment efforts are being put in place. big events being canceled. wynn resorts saying they are canceling all large entertainment gatherings, yet another casualty when it comes to virus containment efforts. given the global rout, there are

more shortselling curves being imposed in italy. i want to mention the rise we are seeing in short bets for two companies working on coronavirus vaccines amid the rally in biotech names. you are seeing u.s. treasuries under pressure. in the wake of u.s. repo operations, we are keeping an eye in that space. a down day with volatility surging. in manager of portfolio strategies. we are seeing the fiscal and monetary side around the world, the ecb boosting qe, th ebo -- the boe cutting rates. why aren't we seeing more confidence in the markets? >> that is probably due to the

fact that prevention measures are picking up. prevention measures imply weaker growth because when you do quarantine, you stop going out. the market is assessing the fact of this magnitude of slow down upon us for the next quarter. exit is this rush for from investors. a move in the market. >> what could put a floor to this meltdown? we believe the floor creation process starts with public control of the coronavirus, which will make governments withdraw from the pressures. by this time, we hope there has been enough incentives provided rate cuts,ketplace to to qe, and fiscal measures.

equally important as monetary measures. at that stage, you will see the markets discount completely what is behind us, which is a quarter or two of a fairly noticeable slowdown. then they start looking at more fundamental issues and start trading on that >> is it possible to say it will be a quarter or two? they probably will be for china in terms of the domestic factors , but not every country will be able to do what china managed to do in terms of containment and mitigation . binay: that is why the markets are not coming up despite the support provided by policymakers over the past week. the market is currently thinking over two quarters, potentially three quarters of potential slowdown and impact from the virus side. just as the virus spread without ning,orning -- any war

suddenly the session starts going down. there are negatives where they will be quarantined. you saw big success in china from the quarantined efforts. you look at efforts in places like hong kong and singapore, it is fairly contained. the statement comes with a fair bit of economic slowdown. as soon as the markets start sensing that, the work is behind us, you will see action on the market side of things. >> we are really starting to see the deepening of the cracks in the debt market, this cash grab starting to feel the desperation and panic this week from u.s. corporate. how bad will this get? will it be worse than the financial crisis and will we start seeing soon bankruptcies and defaults? binay: we don't think we are at the financial crisis stage yet. financial crisis was a phenomenon where the banking sector froze up.

today the banks are in decent health. you look at the metrics -- they are far more capitalized. think it is at that stage. having said that, the significant spread, including in high-yield sectors, means the market is pricing in higher stress. some corporate's will refinance themselves -- corporates will refinance themselves given the fact that at the time markets seem to be frozen. are are -- how are we determining if this is a transitory shock or something more to it? binay: liquidity can lead to stress on the real balance sheet. it is important for regulators and policymakers to send a strong message on the quiddity and prevent -- on liquidity.

prevent solvency issues for companies. that message is important. provided -- enabled banks to provide credit to sectors under impact. we have seen similar efforts in china as well. it is the right way to address the problem at hand. it seems that with the announcement of expanded leave extending into maturities, they are trying to do that as well to ensure finances remain liquid enough so they can extend credit to the sectors that need it the most at this time. >> are there any positives out there? binay: one positive is valuations are significantly cheaper. incurred byf risk

investors, that has gone down a lot. allaul metrics, it -- by a periodit leverages where investors realizing they are carrying less then they should be given the portfolio mandate and may be more open to risk at that time. >> in terms of the rallies we inevitably expect to see throughout this bear market, given the heightened levels of volatility, i am wondering which stocks or assets you would be looking at today and think it is not catching a falling knife. if we saw further downside price action, you would be comfortable at buying at today's levels. binay: you see a correlated move down in equities.

therefore the first point of protocol would be to allocate away from defenses into some of these asset classes. we particularly think the countries which have the ability to manage the situation better, for example, china -- they are in a better place to manage it given they are ahead of the cycle. we will see a stronger recovery out of china than the rest of the world. we think the u.s. is a good market. we are not so sure about europe at this point in time. the valuations are cheaper. ecb is doing its best, but we need a bigger fiscal thrust before we see more public funds. at this point, our bet would be to buy high yields selectively when it is the right time to do so. at the same time, look at equities in china and the u.s. >> binay chandgothia, portfolio manager for principal portfolios

strategies. we have more on the developing story. the primitive defense confirming hezbollahe in iraq on facilities across iraq. we have heard the u.s. airstrikes were underway against that iran backed militia group. they were targeting locations in baghdad, this after the u.s. claimed iran backed groups blamed rocket attacks that killed two u.s. troops and a british soldier. let's get a quick check of the markets with sophie. sophie: a snapshot of aussie shares trading at the lowest level since april 2016 with more than 150 stocks on the benchmark lower. goldman with a note saying australia's fiscal monetary moves will not avert a recession. in new zealand the we are seeing stocks up more than 7%, following a record by the nzx 50. futures for nikkei indicating a

lower open by 50% in tokyo. an earlier drop we saw of 1.6%. geopolitics in focus as well given the u.s. led strike in iraq. we are not seeing too much moves when it comes to the yen. trading still below 1.05 against the dollar. 0.25%.by about oil prices not seeing too much of a steep move. new york crude just above $30 a barrel. squeeze,s liquidity treasury futures hedging higher. amid the liquidity squeeze, the aussie and kiwi dollars rising. we are also seeing stress pick up in aussie funding markets. haidi: sophie kamaruddin in hong kong.

let's get you the first word news with jessica summers. jessica: singapore made top reserves to alleviate the prices due to the coronavirus spike. the city prepares a second support package. it already allocated 5 billion u.s. dollars last month for medical care and business. the last time the government passed reserves was in january 2009 when the financial crisis spread in recession. the government then used funds to help property and these tax burdens -- ease tax burdens. iran says the virus outbreak could be part of a biological attack. ayatollah khomeini is calling on the armed forces to lead the fight the disease, saying the military must work closely with the health ministry. the virus claimed more than 400 lives in iran, and khomeini said there is evidence that raises the possibility of the outbreak being a deliberate biological exercise. theater land,hit

with broadway dimming its lights indefinitely. new york governor andrew cuomo is making a bid to slow down the infection. the theater district is a revenue earner for new york. now venues will be closed until at least april 12. global sports are also pulling back in the face of the virus. the mens tennis circuit is being suspended indefinitely. golf tournaments will be played on empty fairways. major league baseball has stopped spring-training. the national hockey league joined the nba and halting play. soccer in spain and italy is also suspended. the formula one grand prix in melbourne now has also been canceled this weekend. global news 24 hours a day on air and on tictoc on twitter, powered by more than 2700 journalists and analysts in more than 120 countries. i'm jessica summers. this is bloomberg.

haidi: we get more on the outlook for the sports sector ahead. an economist from smith college will be joining us at the bottom of the hour. >> plus a state of emergency in new york, while the u.k. says as many as 10,000 brits may be infected. more on coronavirus coverage next. this is bloomberg. ♪

>> breaking news crossing the bloomberg. there has been a great deal of confusion as to the face of the formula one grand prix, which starts today and

will be canceled. all activity for the australian formula one grand prix will be canceled. that is the statement. it is casting into the spotlight the difficult decision that will have to be made not just by governments, but individual event managers going into this crisis. you have seen that as well. i heard individual broadway shows have been canceled. large gatherings have been prohibited with the state of emergency where you are. >> not surprising given the grand prix was counseled. we had basketball baseball -- was canceled. we had basketball, baseball, hockey canceled.

new york city declined the state of emergency because the coronavirus continues to spread. congress house and haggling over virus relief deals. let's get the latest from bloomberg's greg sullivan. that house proposal seems to be going nowhere. what does president trump not like? he had to been hiding a vote -- had been eyeing a vote for today. president trump said he did not like the democrat bill, calling it full of goodies. that bill aimed to help workers with the coronavirus in terms of emergency paid leave and coronavirus testing and enhanced unemployment insurance. democrats are holding out hope for a vote tonight, but it is unclear if it will happen. the senate will not act on it this week, but announced they

will be in session next week to work on the bill. president trump has pushed for a payroll tax holiday, but lawmakers in of parties have been cool to that idea. haidi: in the meantime, president trump's address was not at all well-received. what came out of the white house to mitigate that? he said a number of things in the speech the white house had to issue corrections for. greg: it has been quite a day for the white house. not only did they have to correct certain essar tatian's in president trump's speech -- assertations in president trump's speech, the white house saying despite was in trump being at an event in mar-a-lago with someone testing positive, that president trump did not need to be tested. there is a photograph of him sitting next to the person, but they are not planning on testing him, saying patients who do not show symptoms don't need to.

we heard trump is continuing to double down, saying the plunge in oil prices could be good for the consumer, somewhat like a tax cut. kind of a wild day out of the white house on those fronts. haidi: providing plenty of fodder for the democratic presidential hopefuls. greg: that is correct. haidi: what are we hearing? greg: quite a bit. both democratic president of candidates gave speeches to contrast themselves with president trump and lay out a vision for the coronavirus. biden played up his experience. he was heavily critical of the administer asian response to the virus. response,so gave a calling it on the scale of a major war, saying the u.s. had to respond like it was a major war. both campaigns have canceled rallies. both have told their staff to

work from home. all of this amid the democratic party itself moving sunday's debate scheduled in phoenix here to washington with no audience. it does appear the coronavirus is influencing the 2020 presidential campaign as well. usdi: greg sullivan joining with the latest on the u.s. response. in europe, angela merkel says germany will do whatever is necessary to support the economy. the chancellor said she is convinced eu cooperation is possible. earlier french president emmanuel macron and the italian prime minister criticized the ecb, saying its stimulus package was not good enough. our international executive editor joins us now from london on the line. it is really interesting. we are seeing the blame hit on this central bank, expected to

do the heavy lifting. when you look at the markets, it seems like investors are looking for better governmental management of the virus itself and not just fiscal or central-bank stimulus to try and help. >> that is right. right now there are certain limits to what central banks can do. sidecb today on the rate -- aside from cutting money toward banks, they need to be supported by governments. governments have a faster way to get money out to their people. given this is not a structural shock, but external shock to many economies, they have to get money to businesses or restaurants that need to close, all the places where tourists are no longer traveling, to ensure money in pocket for the weeks and months to come so businesses do not fall apart,

particularly small and medium-sized businesses. what you are seeing is the pressure put back on governments to act. angela merkel saying they will do whatever it takes. that special circumstances require special measures. germany is cautious about unlocking the spigots, because they believe that can lead to a slippery slope. germany coming up somewhere behind. haidi: how bad has the coronavirus outbreak gotten in europe? rosalind: we are seeing a case is spike in italy. the number of deaths has gone past 1000. we are seeing outbreaks escalate all over, including your many and beyond. belgium for example closing its bars and restaurants. schools be enclosed across many parts of europe, although not yet in germany. that is happening in france.

you are seeing semi-lockdowns darting to take place outside of italy -- starting to take place outside of italy. italy is the first country on the planet to attempt a nationwide lockdown. that is having mixed results. cases are rising in the u.k., at least 590 confirmed cases. the u.k. government says the peak of the outbreak could be 10 to 14 weeks away. that said, the government of boris johnson is not going to shut down schools for now. they say they cannot stop the infection. what they simply need to do is slow it. that doesn't require the closure of schools. haidi: thank you very much. we will have plenty more to come. this is bloomberg. ♪

haidi: let's get a quick check of the latest business flash headlines. caterpillar is showing further signs of stress in the mining and construction section by reporting its biggest decline in global machine sales since the end of 2015. the result indicates how the coronavirus is dragging on vital industries. concern about the infection has sent the bellwether caterpillar down most 40% this year, its worst start since 2009. broadcom is the latest company to withdraw its annual sales forecast. the chipmaker supplies apple and other large electronic companies and says the coronavirus pandemic is poised to hurt demand. the ceo says he pulled the forecast because visibility is poor and he expects week

near-term guidance -- weak near-term guidance. >> oracle sales beat orderly estimates, signaling demand for its cloud services is holding up. the company announced a share buyback program worth $15 billion. revenue rose almost 2%.

♪ the fed and monetary policy. >> the ecb. >> is not going to be able to offset those disruptions. >> it's not going to make people go on a cruise. >> this is both a potential supply and demand chart. >> now and oil price shock. >> it's very difficult for monetary policy alone to reassure markets. >> the policy has to go to zero. >> monetary policy is at its limits. >> waiting. valuable ammunition. we have seen the temporary sugar highs cutting interest rates is ineffective. >> we still have much further to go for it to be truly effective. >> you need massive, not kind

of, massive monetary fiscal stimulus. >> it has been there. anti-fiscal stimulus now. -- onto fiscal stimulus now. haidi: some of our earlier guests, and the key question, what. the slump? the debate rages on, whether monetary policy is reaching limits. markets are still betting on aggressive easing from the fed, pressing for a cut, moving closer to 100 basis points for the fomc. we could see more market operations as the fed seeks to relieve markets, boost eco-buying, reminiscent of the reserve emergency purchases we saw during the financial crisis. on the other hand, looking at the ecb, it is criticized for not acting enough, yet profitability for easing of central banks still remains elevated, as you can see by the blue line on this chart. further central bankers, the rba

expected to deliver a 25 basis point cut and announcing a target ban for yields over at the irby and, coming by closer to 50 basis points. haidi? haidi: thank you. expecting --are we [no audio] --, in particular, u.s. debt market? joanna: right, well the fed did say they would provide liquidity in the funding markets so it looks like that has alleviated some things. they're slated to provide more than $1 trillion. that looks fairly smooth so far. but there are a lot of cracks in things like etf's and other trading vehicles, where the moves are so quick that things are -- people are trying to get

in. they might not be able to do the trades they want to do. but one thing that's really critical today, is that you're in front of the weekend. the virus is to when he 47, not not 24/5.r -- 24/7, it's a really historic drop in the u.s. markets. we're sandwiched between all that. fewi: anything in the next days that could put a floor on this meltdown? what are investors watching? they're definitely watching to see if the government is able to contain the coronavirus. people are still watching fiscal stimulus. announcements of the fiscal stimulus haven't really been helping. in fact, markets have gone down after the announcement,

including with us rather yesterday and the trump speech when the markets tanked after he started talking about things that they might do. a sense of, can we get any amount of certainty on your? can we see where any of this works? people are saying will there be a rally in the later part of the year? you don't want to miss that, necessarily, but there's going to be so much turbulence in the meantime. haidi: joanna r singer, thank you for that. we will have more throughout the day. we will be joined by a few guests. let's go to jessica for the first word headlines. jess: markets went into meltdown after the stimulus plan proved underwhelming. bondtors dumped stocks and , shares falling the most on

record after policymakers held off cutting rates. the euro saw its worst drop since 2015, and the stoxx 600 tumbled 10%, 30% off last month's all-time high. the bank of japan is likely to expand its stimulus campaign next week to limit the damage from the coronavirus pandemic and reassure nervous markets. we're told governor kuroda may take a more aggressive stance on buying assets, such as etf's. but whether the boj will raise its purchasing target remains unclear right now, and could depend on the state of the market on meeting day. and the faltering returned to work on the china's power -- shows thet and gas economy is only slowly getting on track after the coronavirus. early signs of a pickup in energy use raised hope china could revive global growth. -- however, new

data warned it has already begun. it's operating at 80%. and the coronavirus is also disrupting plans for mars. the european space agency and its russian counterpart or postponing a transmission planned mission, in part -- postponing a planned mission. scientists hope it will be able to find signs the red planet once hosted life and provide information about water in the past. global news, 24 hours a day on air and on quicktake by bloomberg, powered by more than 2,700 journalists and analysts in more than 120 countries. i'm jessica summers. this is bloomberg. haidi: coming up next, the second woman ever to run this company. we speak to the most influential females in the industry.

she joins us next. this is bloomberg. ♪

haidi: let's get started with a quick check on the markets. the asx falling more than 4%, this as stocks remain the lowest level since 2015 and are accelerating losses, thinking -- sinking deeper into bear markets. stocks already seeing the biggest losses, as we have u.s. futures also falling at the moment after u.s. major sinces solved the worst 1987. fans all overts the world have been sidelined,

in the u.s., all the major sports leagues have their games, with baseball delaying their opening day. the atp and idf of global tennis events also suspended. and the australian formula one grand prix in melbourne canceled just hours before it was set to begin. joining us to discuss the implications of the cancellations, a college professor of economics, sports economist. thank you very much for joining us today. can we, at this point in time, try to quantify the economic impact on the industry? >> well the impact, on the sports industry is major. what's going to happen in the short run, for one month to five months, however long it takes to get the vaccine in place and stop the spread of the virus, nobody knows how long, but the impact while they're playing is they lose all their revenue.

in the case of major league baseball, you're talking for a whole year, it would be about $9 billion. now, there's also revisions in the collective bargaining agreements with the players in each of the leagues, which establishes a principal under the idea of force majeure, which says there's acts of god or other outside forces that prevent you from playing force you to cancel the games, that would nullify the obligations that the league owners have from the players. players get about 50% of the revenue. unfortunately, there's nothing explicit in the collective bargaining agreements about pandemics. and so this is an area where there's some ambiguity, and if the owners cancel the sine's desk season -- season and they attempt not to plate -- pay the players, you might see some litigation from the players to rectify that. so there a lot of uncertainty on that and. but the straightout story is,

they're not playing. they're not going to get gate revenue, concessions memorabilia, of the revenue that you derive at the sports facilities. some of the television revenue will also be curtailed, but that's subject to have a special contract with the broadcasters that usually allow some payments to be made. usually part of that is insured. so, this will vary a lot from league to league. at as i say, we're looking $8 billion, $10 billion of revenue that doesn't get generated. most of the leagues, the major leagues in the united states, soccer leagues in europe, are strong enough where they can withstand this. none of the owners are going to like it. it is not going to hurt them. but it's not going to mean the end of the leak. we're talking about a short-term

impact. haidi: could we see some of these going out of business? not the major ones, but the smaller ones that are forced to cancel their events? andrew: sure. in the american football league, the xfl, that was kind of skating on thin ice anyway. i think we can expect to see that league disappear. and there will be other smaller leaks throughout the united states and europe and asia that simply won't make it. there are a lot of new leagues that have come around. you can get coverage for your league game practically in any niche sport, but it won't be easy to sustain because they are already working on borrowed capital. they don't have the fan base, television contracts. so i think we'll see some league failures around the world. haidi: andrew, as we continue to see events overtake the ability

for some of these management teams to be able to make decisions, is there an opportunity for better ways to manage this? for example, the formula one grand prix, which starts today with hundreds, if not thousands of spectators already queuing up to get in this morning. we only just heard an announcement that it will be canceled over the weekend. that really seems only because the teams themselves have called up. they awfully can't go ahead. -- they obviously can't go ahead. is there mismanagement going on? and is there a better way for leaders to go about this? andrew: same thing happened with the ncaa cancellation. the only reason they finally decided to cancel it is because some of the major teams decided they can't go forward anymore. it's simply too perilous in terms of public health. so there's bad management. one of the interesting things, bad management for sports league, at a time when things are operating normally, you can get away with it.

whether you're talking about rugby in australia or baseball or football or basketball in the united states, or soccer in europe, these sports are enormously popular and fans are very willing to put up with some inconveniences and inefficiencies. but when you have a situation like this, which pushes you up against the wall and says basically, you better make the right decision and make it quickly or a lot of bad things are going to happen to you, now bad management exposes itself. and i haven't touch if i haven't -- i haven't studied it. some of that is going to be exposed. some of it has to be held responsible for the difficulties that fans and players and others will be expensing. the real bad management is coming from washington, coming from the president in the white house, which didn't provide testing kits, and was claiming

and hoping it was a hoax for several weeks before it really started to explode. so there's bad management all over the place. haidi: andrew, we are getting breaking news, and i think a confirmation because we heard from within the decline in the tourism industry that mount everest will be closed. china has shut down climbers on the count of the coronavirus. and we've also heard -- we know that may is the optimal climbing season in terms of conditions for climbing to the summit. clearly this is something affecting not just professional and mainstream sports, but also amateurs and enthusiasts. i'm wondering, you spoke earlier about the force majeure, the gray area when it comes to infectious diseases, that is also the case when it comes to the insurance side. if -- is there going to be a big gap in these events? south by southwest saying they

weren't covered by insurance for their cancellation because insurance premiums tend not to account for infectious diseases and pandemics. andrew: exactly right. i think some parts of the revenue stream will be insured. there will be minor parts on the side of the television networks or on the side of the regional sports networks, on the side of the teams in the leagues, there will be some insurance coverage, but it's not going to cover the vast bulk of the losses. talking 10% of losses will be covered. the other thing we haven't talked about is the liv-ex in tokyo, which is subtest olympics in tokyo, which is supposed to start in july. they're twiddling their thumbs. they're unwilling to say we're going to project forward and say this can't be done. i think there is an obvious solution, and that's to postpone it for a year.

it doesn't work to postpone it for a few months or cancel it because the japanese have put $30 billion into infrastructure to make it happen, but there too, you have to question the efficiency and effectiveness of management of the international golubic committee. -- olympic committee. haidi: andrew, thank you so much for your time today. we continue to check the markets right now. we are seeing osaka, japan futures sliding more than 8%, this as we hear more from officials out of japan. right now, a ministry finance official talking about a potential boj services agency and the finance industry needing, if necessary, because they are watching the markets closely and their cooperating with the g7. of course, we have seen a little bit of weakness in the japanese yen, but that weakness has paired back. we are seeing the japanese yen stable at the 104 level, this

after we saw the fed movement and fed action, and we have the strength of the dollar counteracting the strength of the japanese yen. but at the moment, after the close of the lowest level since april of 2017 for the japanese nikkei, with more than 4% of losses in the previous sessions, we are seeing futures falling as much as a percent. -- 8%. >> we see markets around the world trying to manage the volatility spike we have been seeing. we're getting breaking news that none of the indonesian stocks will be available friday, so the exchange will be moving stocks from the pre-open session. that market yesterday also just introduced their circuit breaker, so if it falls more than 5%, that will be halted from trading for 30 minutes, and then if it falls more than 10%, you see another whole for 10 minutes. we're just hearing the exchange

is moving all stocks from the premarket session, as well, and you saw how that market and it down about 18% for the year. haidi: well, let's take a look at tech and women in tech. flamingo is only the second women's business to list on the stock exchange, providing artificial intelligence solutions to australian and international communities. i'm pleased to have catriona wallace here. what is it like being only the second woman to hold up the company and do it in the stanfield, as well? catriona: i think it's something that is greatly needed, not just here but internationally. there is less than one in 10 jobs held by women in high-tech companies like my own, and obviously less than 2% in leadership. one of the things i believe must happen is we must tell stories of women who are leading companies like i'm doing with

flamingo on the are strolling stock exchange, and start create paths for other women to make their way into stem fields. >> because we seen some success with the 30% clubs and australia, being able to maintain that target for female representation on boards, is that much more difficult in your field, particularly anecdotally, the stories that we've heard about the boys club in silicon valley? what sort of policies can be put in place to encourage a new era for young girls wanting to enter your field? catriona: definitely, i believe the stock market is still a boys club. it's a masculine environment. i have a story where i started raising money through the capital markets, i was offered $1 million on condition. i asked if that condition was revenue or customer acquisitions, but it was that

the female ceo take her nose ring out with the ink addition and investment fund wanted to invest. there are still experiences like this. as far as policy is concerned, there needs to be a lot more work down around recognizing bias on unconscious bias, particularly in the investment community, investing into the women's businesses, as well as our test on board. i think there's a lot of work to do and policies put in place around women representation on board. it's absolutely needed. haidi: tell us a little bit about your work because you have worked extensively on ethical ai. when it comes to technology, how in-line are the current laws in place? believe, having worked very closely with minister karen andrews on the framework and the human rights

industryner that the and the technology is about five years ahead of where the laws are up to. essentially, there's very few laws or regulations that determine how a software vendor or company deploying ai actually uses the technology. huge faced with technologies around the data and the potential ai can go very badly. haidi: and how is your business position at this time when we're seeing a global pandemic of the coronavirus? catriona: so, very interesting trend has emerged for us as an ai player. matteride subject experts, the smart. it's a knowledge system that can replace subject matter experts. we have seen organizations, particularly in asia and the

u.s., we've got people working on premisesessing systems and information. we've had a request from a number of large organizations to set up our products in order for people who are working at home to access information through the cloud and through ai rather than through traditional systems. there,l have to leave it but thank you so much for joining us. lots more head on daybreak asia. this is bloomberg. ♪

haidi: electing daybreak it asia. sophie: you're watching daybreak asia. we get deeper into a bear market

and stocks taking a hit in sydney. rich and australia plunging as much as, falling to a record low as it announces capacity cuts and suspending proper guidance. ditto for flight center, sinking. we're also seeing financial stocks under pressure, deeper rate cuts hitting bank profits. the ubs raised outlook for the aussie banking space for the majors, trading below book value for the first time since 1993. let's check in on futures, at of the open in tokyo, nikkei futures in osaka sinking as much as 8% this morning while yen volatility is staying elevated. clocking losses of more than 1%, as you can see right here. looks like there's no end to the turmoil, as we see those losses continue in asia. shery: renew that next -- bring

you that next. we have more at the top of the next hour, plus signs the virus may intensify ideological differences between china and the u.s. we'll discuss. this is bloomberg. ♪

market haves major just opened for trade. shery: good evening. sophie: welcome to daybreak asia. haidi: our top stories this friday, asian markets sector slump again, entering a bear market. investors are not impressed with the strategy so far. the philippine capital

put a lot down as the infections read. it will affect 12 million people and last until the middle of next month. declaring it a special disasters a. the city where we have seen the hotspot. an ugly week for asian stocks continues. losses of more than 2% in tokyo while the yen is just holding with volatility remaining elevated for the japanese currency. kospi.heck in on the steep declines.

to the lowestex levels since october 2011 and impact the most as the is strongly considered. we are seeing declines in sydney with qb stocks falling the most. we are seeing aviation stocks under pressure and a majority of stocks on the decline this morning.

up. using the earlier drop under pressure. 10 year yields moving about 81 basis points given this location of treasuries with liquidity injections overnight. a move among investors to cover their margin call. given some of the geopolitical concerns we are seeing, oil markets are under pressure. friday the 13th. shery: we are watching one stock in japan in particular as we are getting breaking news that the group is considering retiring the shares that they buyback. up to 7% shares for ¥5 billion. they are considering canceling. through march 15, 2021. aboute heard many times how undervalued the shares have been. softbank is not trading as of yet, but they will be buying back shares.

retired and canceled. joining us now to discuss the market move the chief market strategist. what a day. this comes on the back of central-bank action. floor toe yet to see a the meltdown? >> lowering interest rates and increasing liquidity is not the answer. many governments have been slow to catch on to the severity of the situation. they are diametrically opposed. supporting economies. containment measures, the most effective measures we have seen used. and central banks have to step away from the idea that they can support the

economy. the focus has to be the health of the populations. as infection rates start to decline, confidence will return. putting fiscal stimulus into an economy will not have much of an effect. 8%, downs much as 7.6%. ,his would be the worst date the lowest since october 2011. continue, we have a triggering of a circuit breaker, plunging and triggering. we have seen it in the u.s. as well. we had a 15 minute trading halt. buy into this market as

you continue to see these plunging markets? is it just catching a falling knife? >> a quarter of the people i am talking to says there is good value in the market. biggest run ine history. we are likely to see the most ferocious. until we see wholesale capitulation, it is not time to buy. u.k., german, u.s. and canadian bonds held ground, but other bonds were absolutely flat. they are going to cash. sizened with the speed and of the falls that we are seeing.

this is a frightening indicator. you take a look at the underperformance we have seen, bobbing around when it comes to pricing of u.s. treasuries overnight. golda look at 2008 when underperformed. are you getting the feeling that is a celebrity market? >> absolutely. 44%.in is down that speaks directly to what you are talking about. investors are not looking at the quality. once received this , they alsoted market come under pressure. movee seeing a wholesale to cash. how -- you whenw worried are

it comes to u.s. debt? i think this scenario we were working on for a long time is that the virus represents an interruption. it is still valid. we will see a stabilization of markets. it would be the price action that would be a best by -- guide. thee is a clear sign that crowd that drives the market is still concerned. until we see lower volumes and , there is no reason to be jumping in at all. selling at 75% seems like absolutely outstanding trade. giving --ot willing given the uncertainty. shery: it continues to fall more

than 5% at the moment. promising ample liquidity. is there anything that they can do next week to halt the move? >> i think there is very little. the boj has gone beyond the clause with the 10 year bond policy. lower rates and more liquidity is very unlikely to stop this stampede that we are seeing at the moment. a lot of investors would be hard placed. haidi: we are getting more breaking markets. 10 year bond futures dropping by at least 2011.

a complete lack of certainty as to where this threat will go. we had markets saying that potentially you could see a downside of 50% of the end of this year. down 30%, that implies that we have a long way to go. the market has done a lot of work around current levels. that is where we are right now. we first reached 4900 this morning. billion.0 i agree that in the current 4000onment, targets like are not unreasonable. thank you so much for joining us as always.

as michael mccarthy pointed out, there is a huge shift in cash. equities are certainly under pressure. being led lower. 2016 lows. falling by the most on record. nikkei 225 plunging as well. doing so in south korea. looking to stabilize markets given the moves that we are seeing. the korean won is off. lou quitted a squeeze that we are seeing, gaining ground this morning. we are seeing volatility picked up. seeing them move lower across the board when it comes to the kiwi space.

a close eye on the markets. to strategists moving their outlooks for indices, you have cities turning target,rish, it's 2020 going back to the drawing board. steamrolling support levels across the board. we had hearing that walt disney will be closing theme parks. you are looking at the disneyland park in california being closed through the end of the month. walt disney closing the resorts. the disney cruise lines will also be suspended.

we have seen already market reaction, downgrading the outlook to negative, earlier today. the theme parks in florida and paris will also be closed. comell have plenty more to , but first, let's get to the first word headlines. admittinghe u.s. is efforts to contain the virus are failing. the trump administration officials told congress that the u.s. is lagging behind and ensuring that people can be tested. set up to is not carry out tests the way that other countries have been doing. they do not had a clear understanding of how widely the virus is spreading. helping to alleviate the crisis.

preparing a second support package and already allocating 5 billion u.s. dollars for medical care and business. the last time they tapped reserves was 2009 when the crisis threatened recession. iran says the virus outbreak would be part of a biological attack. calling on the armed forces to lead the fight against the disease saying the military must work closely with the industry. that theevidence outbreak could be a deliberate biological exercise. 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. this is bloomberg.

how the virus may intensify differences. haidi: investors selling off on anything risk asset. this is bloomberg. ♪

>> the coronavirus adds a new and substantial source of risk to growth. matters is the risk to the economy. we saw avis to the outlook of the economy. we decided on a comprehensive package of monetary policy measures. >> in terms of forward-looking, i would note that the statement

that the bank would take necessary further actions. embedded in the framework of the asset purchase program. >> it is a global problem. it is so much more. but theynks are doing need to do, but we are talking to each other. coordinated and fiscal policy response. required to support businesses and workers at risk. the bank of japan highlighting decisions next week. this comes amid a wave in response to the virus.

we talk about central banks that do not have a lot of these. what more could they do? will it pay off given that we have seen markets shrugging off any attempt when it comes to monetary policy and fiscal action? >> the bank of japan does not have a lot of room. the response from the bank of japan in the recent period, amid the market selloff, it reminds me of how it behaved after march 2011 earthquake and tsunami crisis. at that time, the governor was very worried that the boj had maxed out conventional and unconventional policy and was focused on maintaining liquidity to make sure there was no sort of dysfunction. that is pretty much what we are

seeing from the boj now. liquidityjections of and active in the market. kind ofot seeing the expansion of qe or interest rate cut necessarily on the agenda. hearing from now some media reporting potential more moves from the boj. what form would that take? etft seems to be on the front. that is the area that they feel most comfortable in terms of interest rate cut that could hurt the financial system. baromists have set a high for that kind of move. they are worried about the potential negative side effects

of deeper interest rate cuts and are focused on the asset purchase side of the equation. earlier,rategist said we have to get a handle on the virus before anything else. joining us from tokyo. thank you very much. battering.as taken a david is in melbourne. gold is rebounding a little bit, but what a day it was for gold. we saw a major selloff across markets. even gold was not spared, so where do we go from here? >> that is right. that traditional haven status as everything was sold off on thursday. part of that could be ascribed to investors selling out of

positions. higher,ing a little bit though not recuperating those losses. tvheard earlier on bloomberg at there is potential upside for gold. weak dollar. it suggests that gold does have some upside, so it could once again proved to be an outlier. haidi: gold stocks are the cheapest since 2008. let's take a look at oil. tell me about the level of concern that investors have about a new flood of supply next month.

potentially setting up for another confrontation between iran and u.s. and futures inin new york are on track to decline this week. unprecedented levels of liquidity and it is not just about the demand shocks. what investors are really focused on is that supply battle that we are seeing. opec.chism in the we heard from oil producers that they plan to ramp up production for the first of april. they say that they can withstand some of that pain. that could provide some kind of breakthrough there and ease the situation.

it is an issue that is front of mind. thank you so much for joining us. let's take a look at the trading to the downside in japan. sinking.apanese stocks in the red. the biggest drag on the benchmark following losing points this morning. it is the real estate space that is the deepest loss on the nikkei 225. the topics earlier losing as much as 6%. pointsg about four basis amid the liquidity speed and futures falling as much as 87. a check on softbank, plunging as much as 9.2 percent despite the buyback announcement.

haidi: sophie kamaruddin in hong kong. let's get more on those plans. this is what elliot said that they should do. >> it is exactly the case. i am not sure they wanted to do , but marketight now sentiment around the world is terrible. it is a proxy for optimism. nobody has optimism left. it has fallen by another 9.2%. has been very bullish about the company. softbank group itself will see its shares as a bargain at this point. shery: softbank will see its

shares -- >> both. , the value that the shares should trade at. side, the softbank rank has fallen. so, there is value within how much in the market, i am not really sure. shery: thank you very much. let's get a quick check of the latest headlines. chrysler is having staff work from home. one person tested positive for the coronavirus. to workl being told remotely.

plants forut down deep cleaning. likely forced to cut it dividend. capital markets says the infection is threatening the auto industry with sales plummeting in china. they have repeatedly ensured investors that it will maintain it dividend. air shuttle isn suspending supplies and flashings path amid the coronavirus. unprecedentedis and it is calling on governments to support aviation. restrictions on travel are adding more pressure on an already difficult time for the industry. coming up next, the philippine president has put the nation's

capital region on lockdown. the latest on the quarantine measures. this is bloomberg. ♪

>> the declines are extending into the asian session, set for the worst week since 2008. take a look at the d declines. the nikkei 225 dropping this friday with almost all stocks in the red. kospi plunging. atare seeing steve declines 2016 levels. in.s check south korean officials saying they will seek to intervene to stabilize the market. we are seeing a pickup in the dollar strength. this is ahead of the onshore trade.

take a look at what is going on in that space. the treasury space is moving to the downside, back below 80 basis points. markets are pricing in for aggressive easing. futures moving as much as 80 lower. the yen holding fairly steady. we are seeing volatility surge. look. we are taking a according to a bank of korea official. are we going to see increasing amounts of intervention and management of these markets? >> i think certainly central banks will try to intervene.

long-term. work it only works short-term. saythere is one thing. .ou do not want it taking it is quite hard in this market. it is not coordinated. shery: did the be ok make a mistake not to move earlier this month? they will have to cut three times before july. >> it is a catch-22. the coronavirus is evolving, continually. the marketthe fed,

is priced in for an additional 75 basis points at the upcoming meetings. is evolving so quickly that is tough for banks to stay ahead of the curve. they are always cutting maids because it too low. is, how muchtion does it help the scenario? we seem to beat, doing something with the central bank. the next question is, how much do they cut, if they do? much. thank you so joining us in singapore. for more, we are watching these market. mark joins us from singapore. we are getting lines from the bank of japan.

how much of this is going to the heart of what we are seeing in the asian section? a serious concern over a liquidity crunch. >> he saw the federal reserve program for repo huge amounts of liquidity. this is what it did. averting a crisis. is money do not want markets to freeze up. they do not want commercial banks to have any issue with short-term liquidity. is the point at which the economy is could easily dip into recession.

you turn a bad situation into a crisis. they are trying to make sure there is no problem with cash turng around and they in can take a better approach to the corporate's they serve. you are seeing the bank of japan today and other banks making sure that there are huge amounts of money available to keep it moving. shery: after weeks of relative strength for the chinese yuan, perave seen the seven dollar level. how concerning is this? >> nothing much to worry about. haveuan shows yesterday to a little bit of a move. look at the implied basket of the yuan and is very stable. it is quite reassuring.

the dollar yuan rate is fluctuating in line with the other moves you are seeing among major currencies. that may help to reassure other markets. nothing too much going on. it may look like quite a big the but within the terms of broader index, it is not very much at all. line with the euro and other currency. nothing alarming currently. thank you so much for that. we are getting some breaking news from the philippine central bank. that is according to the central bank governor on their website. they and other departments have been self-quarantined as infections rise in that country.

we have heard that the philippine president will be tested for the coronavirus as the philippines comes under essential law down, as they continue to contend with death and confirmed cases of the coronavirus. going into quarantine after meeting with an infected person. infeels like we are unprecedented, uncharted waters. more: we continue to hear from the korean central bank saying that they want to hold a press briefing. not surprising. we have seen a few central banks abstain. have seen the stockmarkets in the philippines under turmoil. they halted stock trading.

it has pushed -- it has put the capital region on lockdown for a month. the situation seems to be getting more and more serious around the world. to the headlines with jessica summers. jessica: apple is opening all 42 of it stores in china. they were operating as of last week. one of the reasons apple cited for pulling and revenue service. walt disney is closing the resort in anaheim through the end of this month. comes after gavin

banned public gatherings. park employees will continue to be paid. the faltering return to work of oil refineries and gas shows the economies slowly getting back on track after the coronavirus. new data warned that the road to recovery had barely begun. 80%, but operating at the return is patchy at best. the coronavirus is disrupting mars.rom postponing a planned mission.

launch this year, but it has been pushed back. 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. haidi: i want to bring some clarification. the central bank of the philippines will be moving ahead. it will not be holding a press briefing march 19. instead they will be posting that rate decision on the central bank website. they will not hold a press briefing. the finance minister and transportation secretary going

into self-quarantine after coming into contact with an infected person. a lot more to come. this is bloomberg. ♪

haidi: the bank of korea closely monitoring bond markets. [operations and south korea saying that orders will be halted. this is via a text message from the bank of korea. the central bank holding a meeting held by the deputy governor and coming through with

these announcements closely monitoring. pretty much in freefall across asia. given one of the reasons is that we have not seen aggressive measures. the house speaker, nancy pelosi saying that there will be no vote tonight. they will have an announcement on friday. the proposal is the only viable bill that has been introduced in congress. we heard president trump not liking the proposal. steve mnuchin has been talking about the changes. haidi: there are signs that the virus may be accelerating seeing anddecoupling between china the u.s.

now, taking a look at the recent report about factory working conditions for the population and how global companies are involved. let's look at how it is affecting u.s. china relations. they trickle almost to a halt within china within two months of being under virtual lockdown. in china, the narrative is very much, we gave the rest of the world time to get your house in order and you are wasting the opportunity. on the other hand, you have president trump and his speech referring to this as a foreign virus. what does this do for bilateral relationships #but given the , thetion and hong kong bilateral relationship has

already been very tense. coronavirus provides new challenges. the two countries are finger-pointing at each other havead of promoting to real cooperation on the ground. intohave not really gone china and china is blaming the origin of the coronavirus on america. it is very messy. they are not working with each other to solve the problem. it has been -- haidi: it has been interesting. it was a virus that originated in wuhan, but we saw an acceleration taking on the management of the crisis. a lot of people were critical about that in terms of what we were seeing on the ground in china. sendingthe likes of

teams of doctors and medical samples and plasma to italy to help out with the crisis there. is there a sense that china is trying to manage the narrative and uptick of how it has handled the virus? >> absolutely. the chinese government has them tobegun asking show gratitude to the party, which the people have been refusing to do. they are so furious when the chinese communist party leader visited wuhan city and you have media staging this show of gratitude, you can hear yelling from their windows, this is fake. trying toina has been plant itself as a pioneer of dealing with the virus. everyone knows the reality of the first few weeks of the doctors, china silenced

, journalists and suppressed information, which led to where we are today. dory: what will the outbreak to china's global standing? think is not will be deepening the distrust between the u.s. and china, it deepens distrust between china and australia and china and a lot of countries. on the other hand, when we think about the global economy, when we think about china's status as the rising superpower, when china is not doing as much as it can to really work with who and admit its flaws, to take criticism, it will only worsen its image on the world stage. economically, we see factories in china shutting down, workers not able to go back to where,

and that will only lead to further decoupling. a little bits about your findings of workers to factories during the outbreak. found that inwe the last three years, large workers have been transported outside of their hometown to factories across china to work for well-known global brands like nike, adidas, year, ind in the new 2020, we have seen that the workers continue to be taken out -- outinces like who die to provinces. they continue to be transported to work at a time when there is a shortage of workers.

a diseasee seeing is like coronavirus exposes the deepest problems in a society. in china, that is the lack of transparency and openness. it is also the mistreatment of minority citizens. we are seeing the government disregarding the house -- health and well-being of minority citizens. cultural genocide already happening, sending them to the center of the epidemic to work. haidi: it is incredible, in terms of the supply chain, where the end product ends up. nike, dell, victoria's secret, pretty much- it is household names. how much accountability is there for these companies and brands, given that the initial response

from some of them was -- our understanding is that we do not direct workers that are involved in this. is there a shrugging off of accountability? >> absolutely. just this week, we have seen an announcement from nike. in the statement, they said -- they admitted that there are workers at the shoe factory in the eastern province, which is one of the largest shoe manufacturers bernanke. they admitted that there are weaker workers there. for nike. they admitted that there are weaker workers there. the factory said it will deal with the situation and the appointment of the workers properly. on thee relying

,ssurances of a chinese factory that hired these workers under forced labor conditions in the first place. personally, i do not know how much i can trust the chinese without accountability, without oversight from nike and other enforcement. thank you very much. we will have to leave it there. we do have breaking news at the moment. --are hearing from the be ok bok. they are considering a special meeting. we know that the next bank of korea meeting would be on april 9. volatile situation brought on by the coronavirus outbreak, we have heard from the likes of goldman sachs, saying

that we could see bait cuts, three rate cuts by july. the bank of korea board members discussing a need for a special meeting. let's look at assets buckling under pressure. nowhere to hide with bonds taking a hit across the region. four basisbout points and we could see pricing easing. in australia, we are seeing the aussie benchmark yielding. we saw the korean futures dropping, the biggest since 2011. a choppy session edging higher. let's pull up this chart and show you what has been going on. as 2.8%.s much

breaking through the moving average. a jump ining volatility for korean stocks and we will be waiting to see what lines come out of the emergency meeting. speculation is high, but how much more can they do? stocks are on the cusp of a second air market, joining a growing list. let's cross over to hong kong. jenny, what is the outcome? any market that remains in asia and taiwan. has not joined the bear market seems like a matter of when, and not is. if.ot >> if it is another 1%, it would entered the bear market. -- there isfrom the

a slowing down of 5%. very likely for us to see the hong kong market entered the bear zone as early as today. there was massive buying from chinese investors. virus, so they remain more optimistic. from a valuation perspective, the lowest in more than 16 years. it made it more attractive. i think we should be cautious because the chinese investors turnover only account for about 10%. it is still relatively a small portion, compared to the rest of

the market. shery: thank you very much. we will have more market analysis through the day. morgan be joined by j.p. welyst and all of this as continue to see the asian markets plunging. we will have a china open, next. stick around. this is bloomberg. ♪ good morning!

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>> welcome. we are counting down. the opening of trade on the mainland of china. this is a market meltdown. futures are down. fallout sweeps the globe. david: jp morgan says there is now a chance of a recession.