haidi: welcome to bloomberg. i'm haidi stroud-watts in sydney. shery: i am shery ahn and new york. sophie: i'm sophie kamaruddin in hong kong. we are counting down to the market open. haidi: here are the top stories we are covering. the imf is calling for global cooperation to fight the coronavirus. it is ready to tap its trillion dollar lending capacity to find a solution. president trump changes his tune on the outbreak. he has repeatedly downplayed the danger but is now telling

americans, it's bad. the infection adds to the oil slump. shery: let's get you started with a quick check of the markets. we were seeing earlier losses gaining three tents of 1%, but it's still early in trading coming off the worst day again since 1987 and losses accelerating and falling to session lows. president trump talked about economic disruption lasting well into the summer. the dow now falling to the lowest level in two years. losse talking about a 30% since the peak in february. we are seeing the downside pressure with the s&p 500 index. every sector on the s&p in the red with losses of at least 7%. financials and real estate leading the declines. , fallingave small caps

more than 12%. u.s. futures at the moment, a little upside. up 6/10 of 1%. we will see how things shape up as the asia session gets underway. amid thesia wide-ranging meltdown with more central bank rates, moving to boost liquidity we had on monday. the bank of korea delivering a 50 basis point cuts in emerging meetings. we had the boj government keeping things open for easing. we had the philippine central bank governor indicating there will be a rate cut of 50 basis point. this is a country grappling with the outbreak. the philippines malaysia on lockdown as well, awaiting details of a fiscal stimulus plan from the new zealand finance minister later today. bear market territory. the aussie kiwi crossing closer to parity for the close -- first time since the 1970's.

brace for more losses in sydney with asx 200 futures closing at the lowest level since 2010. this after the worst day for the benchmark since -- for the first time ever. this is a spike in volatility. boost in market turbulence across the board. you have international stocks tracking and the fear gauge for u.s. shares. vix closing at record highs. still --es curb choppiness in the near-term. we are seeing a spike for now. quickly running out of impact. impactful describe -- superlatives to describe this market. reporter: oil's collapse continues as the spreading

coronavirus looks to trigger the most severe price contraction on record. brent crude more than 12% after top producers saudi aramco seth it is comfortable -- said it is comfortable $30 a barrel. airlines are falling off a cliff. ticket prices are soaring as oil companies pay skyhigh prices for storage. the fallout from the virus is prompting lower forecasts on china. shrink 6% this quarter, the first such on record. data mother showed across the board slump in manufacturing, retails sales, and investment in months.t two they say they would require an unprecedented rebound for china to achieve this year's growth target. the philippines has extended the virus lockdown to the whole of the main island with about 60 million people now confined to their homes. the measure will last at least until april 12 with police and soldiers and forcing the restrictions.

the manila stock exchange is suspending trading from tuesday morning until further notice, with the board saying government curves have forced a closure. malaysia is imposing sweeping curves to restrict the spread of the virus. religious institutions, schools, businesses, and offices will be closed for two weeks until the end of the month. the prime minister says all mass gatherings are banned and only essential services are allowed to continue. malaysians are banned from traveling aboard. global news 24 hours a day on air and on quicktake by bloomberg, powered by more than 2700 journalists and analysts in over 120 countries. i'm karina mitchell. this is bloomberg. shery: thank you. let us turn to the virus outbreak. president trump warning americans against gathering in groups of more than 10 people. san francisco has gone even further, requiring people to stay home except for essential needs.

trump, after weeks of downplaying the cost of the virus, giving an announcement. >> if we do a really good job, we will not only hold the death down to a level that is much lower than the other way had we not done a good job, but people are talking about july, august, something like that. shery: former bloomberg opinion columnist max neeson joins us on the line. has president trump finally acknowledged the seriousness of the outbreak? the more important question is how will that be reflected on u.s. measures against this outbreak? i think this is much needed, if perhaps a little bit belated shift in tone and policy from president trump. previously, he tended to focus more on actions he took in the past as opposed to what needed to happen in the future,

emphasizing the low risk for now finallyns, but letting even young people know that it is necessary for them to take measures as well because it's not just about whether it serious for you. it's about preventing the spread from becoming high enough in a broad enough set of the populations if hospitals become overwhelmed. that is a legitimate concern and something that needs to be averted with action now. you see that reflected in the enormous step up in guidelines from what we have seen previously even from yesterday, where the guideline was to avoid gatherings of 50 or more. it emphasizes the seriousness of the situation. and the fact that one of the members of the task force mentioned the shift over the past few days from 50 to 10 reflects them looking at models of how lively the disease can spread and the measures might be needed to contain it. it reflects the amount of spread that's out there in the states

that we have not caught because testing has lagged. haidi: in terms of the severity or longevity of the outbreak, that is something that sent markets spiraling one president trump said it could potentially go into. the summer what the latest assessments -- go into the summer. what are the latest assessments? some say half of the population could be infected, 20% critical. these numbers seem much more than what u.s. hospitals could handle. is a legitimate concern. that is basically the point of the israeli -- what might seem like extreme actions. a longer outbreak, stretching this out, putting the peak further into the future is actually a good thing. you want to basically have the transmission be as long as possible so you don't have people rushing to the emergency room. if there's anything, we would

going forward, in addition to encouraging people to abide by guidelines about avoiding large gatherings, it is also to emphasize the importance that most people should not be going to the hospital unless they are really in severe distress. it is not the place where stable people should go to get tested. it's where you should go as a last resort if you are legitimately having trouble breathing. going and when you have mild symptoms puts further strain on the people in the hospital who are seeing a dramatic uptick in cases. hopefully, in time, that will bring the time between infections and transmission low enough that we can prevent the worst case scenario like in italy at the hospital system being overwhelmed. shery: we are hearing right now from secretary mnuchin meeting with senators at capitol hill. he is saying they will update the senate on that virus relief bill.

of course, we know one bill has been passed by the house. it's a targeted fiscal measure. have you seen what it contains and whether this would be enough to give relief across the united states for people who are suffering? so far just have the details of the house bill, but an indication from the president that there might be room to go bigger, it would be something that the house democrats initially wanted but there was some resistance from republican members of the senate , hopefully giving this change of heart and change of tone. that will lead to a more aggressive stimulus. the thing he mentioned specifically was expanding mandatory paid sick leave to a broader section of the population. therein -- then there are further measures, you think about something gaining currency in congress, just sending money

to people as a potential target of reaction. people who work in hospitals, paying for child care, people who work in closed down restaurants, people needing to make rent. it is that broad fiscal stimulus that will be necessary to ameliorate the economic impact and make sure people can abide by these restrictive social distancing measures. hopefully, we will see that from and a bill from the house as well. haidi: great client in terms of where we are and a left people saying we don't need economic need cash.e our bloomberg opinion: this max neeson. seven -- g7 says they will do whatever's necessary. our executive editor is in london. this joint statement coming after that emergency conference call. what did we learn?

reporter: there was not much that was specific, but the language was strong, echoing central banks by saying they will do whatever it takes to support the global economy. they are trying to assure there's enough money to keep businesses going and keep people spending, but the reality of the it's about medication, not prevention. we have the potential for a u.s. recession. a global recession even. theyas governments say will pump more money in, whole sectors of the economy are going into shutdown. people are also staying in their homes. they are not traveling or spending. they are avoiding restaurants and shops. the real concern in the market is how long it will be. the word from the group of seven is they have not changed the thinking. there's also a sense the world is not as unified as it could be

or used to be. donald trump, u.s. president, had to be cajoled event to hold this g7 call today. he has pushed on america first agenda which includes picking trade fights with allies in the group and warning they can't continue to rely on the u.s.. in that environment, trust in leadership has to come under doubt and that's probably why you are seeing the market reaction today. shery: and of course, this is on the back of drastic measures coming from european nationalts, from lockdown of not only france, but also italy. businesses shut and germany. what is the latest of how they are trying to contain the outbreak? reporter: we are seeing europe basically shutting down. borders are closing. we are seeing long waits at the borders up to 10 or more hours. trucks that he read goods through. extensively moving

back and forth, but very slowly, and the movement of people has stopped within aviation sent -- sector in disarray. a 15 day lockdown which is kind of an long -- in line with spain and italy but also germany, people are voided public spaces and advised to stay home. the eu is expected to meet tomorrow via conference call to sign off on a travel ban for nonessential travel and that will bring europe as an entity to a halt. thank you, international -- shery: thank you, joining us with an update on the latest virus outbreak in europe. still ahead, the outlook for the oil sector after saudi aramco's first ever earnings call as a public company. this is bloomberg. ♪

haidi: let's get a quick check of how markets are faring at the moment after yet another historically tumultuous time on wall street overnight. we have a look at u.s. futures. moment.ositive at the of course, we had that huge slump in the u.s. after president trump spoke about the latest on the coronavirus saying this is the outbreak that could last well into summer, saying the u.s. could slip into a recession. of course, we saw other measures such as san francisco going into lockdown and the united states banning gatherings of more than 10 people. new york crude staging a bit of a bounce back after we saw that faltered the most in four years. just 1% there. of course, the perennial story is of destruction demand as well as the price war being ongoing. gold futures are seeing a bounce up to 6/10 of 1%.

really extending declines we saw in previous sessions. that gives an indication of how much volatility and uncertainty and perhaps questions over liquidity in the market at the moment. terman,ing in nadine ceo of solstein capital, . we talk about the fear gauge x acrosscomes to the vi a number of international markets. it doesn't matter if you are looking at volatility indexes or other gauges. liquidity?peak to >> what we found interesting is friday and today, a lot of the options that are deep in the money started to become more liquid. i think you are seeing liquidity issues in the marketplace popping up in different places.

money market today, options on etf. cautious.ng very powell and his press conference was very firm about what the fed mandate is which is to restore normal functioning of financial markets as part of the mandate. is what they have done enough? convinced?estors not >> i>> think part of the problem is you get a certain number of bullets and if you use them too early, people know you don't have many left or none at all. when the stock market is going up and you are cutting by 50 basis points, 100 basis points, but it's making people think and investors are seeing this is a little out of their control. unless they get some kind of fiscal stimulus, we will not be able to really -- [inaudible] need tod comfort, they

know they can go to their jobs or stay home and make it through the next weeks or months. shery: so where did they invest environment? really we have never seen a scenario where we could actually see the whole u.s. economy being shut down. how do you even try to call a bottom in this market and where would you go? >> right. itn it was at 531, we called not investable. that is not a technical term, but the issue is things like safe havens like gold or treasuries can go down like anything else. will you have to do is be very cautious. you have to be quite tactical that when things get oversold on a temporary basis, there are different ways to say these are the temporary markets, so we have -- we think that is the trajectory.

shery: nadine terman, thank you. solstein capital ceo and founder. plenty more to come on "bloomberg markets: australia." this is bloomberg. ♪

shery: this is bloomberg technology global link. i'm shery ahn. emily chang is in san francisco. let's look at the top tech stories of the way. google's website to screen people for the colonna virus reached capacity and stopped accepting new appointing's. the health care unit verily is working with the u.s. government. it was put together at speed after president trump promised a nationwide digital virus testing platform. ubs is to allow staff to use china's popular messaging

service we chat to advise clients with a new channel as the coronavirus shuts down global travel. ubs will be the first global bank to reach out to we chat. those are the top global tech stories we are watching. emily: thank you. big tex is uniting to help fight misinformation on the coronavirus. 's facebookspoke with coo sheryl sandberg about how they are handling this unprecedented situation and what impact they are seeing from the outbreak. >> we are responding to this with all hands on deck. we are taking down any harmful misinformation. we are working with who closely, taking down things they think are harmful, working with local health ministries. we are trying to get good information out to people. my fiance and i, we were asked to direct airector

video on handwashing. . we are asking anyone with a good following to share good information. it's about taking down the bad and getting out the good. we are also partnering with the u.n. foundation on who, a response program for them. we have a $10 million match. we already you may cash raised $3 million on facebook. we will match whether or not, but we hope people will jump in and we will do the same for the cdc. this is about taking down bad information but also getting good information and support out to people and to these incredible organizations like the who and the cdc that will need everyone to be doing what they can do to reduce the spread of this virus. emily: what about misinformation and private groups where sometimes some of the most critical misinformation resides? a lot of that is medical. its facebook hand off when comes to misinformation and private, but on facebook? we are not.d-19,

as soon as we can find it, if it is harmful misinformation, particularly information that who worries about, we are getting it down as quickly as we can. but we are also seeing a lot of facebook groups doing amazing things. there are groups in italy, which has been particularly hard-hit. getting together online to provide support, there is a theor and lombardi, italy, hard-hit area, providing services to patients, not even her own patients, people in the area who are suffering from depression, isolation, suffering from anxiety online. we are seeing churches and synagogues put services online and facebook groups to reach their community. this is a time we have seen this through other disasters, even though i don't think we have seen anything like this where people come together to support each other in any way they can and we will do all we can to keep facilitating that. emily: facebook is down almost

14% with the rest of the market. how big an economic downturn are you preparing for, and how well-positioned is facebook's ad business to whether this? >> this is not want to be business as usual. the marketing industry is going to see a real big impact. we are going to watch. again, we know we can keep paying our employees, paying contractors. we know we can keep the lights on whereas so many small businesses around the country and the world do not have that luxury. people are working paycheck-to-paycheck. that's where we are focused on our efforts because that is much more important than anything we can do. we have announced a business have we put out last week. and we will have much more coming including this week and bib efforts to help small businesses around the world.

emily: facebook coo sheryl sandberg signaling perhaps a big shift in strategy toward misinformation. they have historically been very hands-off, but not so when it comes to covid-19. haidi: such a big moment and big challenge for big tech. this is bloomberg. ♪

haidi: 9:30 a.m. here on tuesday morning in sydney. the market open, bracing for away.30 minutes this is how the futures session is pointing. up by just over 4%. the lowest close since march 2010. we are expecting and indicating decline of over 3% when sydney stocks come online. biggest decline in yesterday's session since 1992. it does not look like a better tuesday given that the u.s. situation had u.s. stocks plunging 12%, the most since 1987. i'm haidi stroud-watts in sydney. shery:shery: i'm shery ahn in new york. you are watching "bloomberg markets: australia."

let's get the first word news with karina mitchell. reporter: the imf is ready to tap the trillion dollar lending capacity to help nations tackle the coronavirus. the fund says the 29 -- 2009 financial crisis saw the fiscal stimulus of $900 billion in today's money, adding that there is much more to do. here in the u.s., president trump has markedly changed his tone, warning the disaffection -- disruption could last at least a month and drive the u.s. into a recession. this is a dramatic u-turn from previous statements when he downplayed the impact. he is advising against gathering in groups of more than 10 people, saying the country could be fighting the virus until august or even later. europe remains a focus of the infection with the eu desperately trying to maintain a unified approach as individual nations react differently. french president emmanuel macron

has closed schools, colleges, bars, and cafes and says he will work with other leaders to tackle the virus. he condemned unilateral measures like germany's decision to close borders with austria and switzerland. hong kong's response is being hailed as a lesson to other nations. in cities control controlling the outbreak has been helped by expensing the sars outbreak in 2003. the government imposed so-called social distancing, closing schools and canceling large-scale events and ordering officials to work from home. many people wore masks from the very beginning. 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. haidi: let's look at what's looking like another ugly open here in sydney. sophie: word from the central bank, little to soothe investor anxiety as we saw that terrible

monday for asian stocks, bringing a drop of the asx 200 to 30% from the peak we saw in february. as amp capital points out, aussie markets are in panic mode again with a tug-of-war between stimulus and economic impact of increasing lockdowns. i am pulling up the board. stocks have suffered heavy losses this year. there is speculation that qantas and virgin australia may get bailouts as airlines could face more capacity cuts. this morning, we are learning from air new zealand cutting capacity by 80% to march 30 through june 30. we are also keeping an eye on version because the credit by s&phas a b minus global and it has been on negative watch by the agency. gaming space, the stocks hit hard as well. alongng social distancing

with sky city. a quick word on the aussie dollar. saying bet on the aussie strengthening against the greenback based on the fast fx model. nearly five standard deviations below fair volatile according to the model. shery: thank you. despite the negative market of the federal reserve, the second reaction in as many week, the bank is doing the right thing alording to j albro does -- broadus. i guess given the extreme volatility, it would not be fair to grade the action purely on the reaction of the market, but given how this is a public health crisis, i guess the concern is perhaps monetary policy alone or fiscal policy

alone will not be enough. i think that is generally correct. this is a pandemic. it is a public health crisis. i think ultimately the path of the negative effects will follow the path of the pandemic, so anything that can be done from any direction to bend the curve of the pandemic down will be beneficial to the economy. let me just quickly comment on the fed, which is where i have my background and experience. i think it's important to understand the tools that the fed has are not ideally suited to dealing with this. with respect to standard monetary policy, the fed has

acted aggressively. they have dropped the policy rates to zero. round of begun a new what we in the past called quantitative easing. the impact has not been noticeable at all. be, but't expect it to it is not the kind of thing that will help in this crisis. however, the fed has done other things. i think those are the things that i would great it favorably on, specifically with respect to providing liquidity. that's a central function of a central bank and the fed has done a number of things so far in this direction that i think had been beneficial to some extent. hopefully it will be more beneficial going forward. ofy have increased purchases short-term treasuries. they have increased the security repo offerings. they have reduced bank reserve

requirements and encouraged banks to borrow from the fed discount window. taken some actions to increase dollarilability of u.s. and foreign exchange markets. there are a number of proposals. i have the fed taking action to make it possible for the banks to provide additional liquidity not only through financial markets and institutions per se but through the banking system to ordinary businesses, soecially small businesses liquidity begins to fall through the broader economy. . think that is much needed shery: is this to your point

that we will need a range of other quiddity tools to be put in action such as what we have seen during the financial crisis like a more targeted liquidity tool, or is it just a matter of time and waiting for the measures to work for us? >> i think it could be both. we have to give it some time to work and hopefully we will have more benefits that are visible in the not-too-distant future. but i think also more is needed. significantly more. and a number of proposals, the former fed governor kevin walsh, which i'm not in a position to endorse every detail, but i think the general direction of what he was proposing, providing more liquidity to ordinary businesses through the banking system underwritten by the fed

and endorsed and supported ultimately by the treasury and the congress. that would be a good step in the right direction. haidi: we are getting breaking news from the u.k. the finance ministry is to set up plans for extra support for businesses to cope with the coronavirus outbreak. that's according to u.k. officials. we are expecting to get details later today. there is a growing group of people saying that the extraordinary action they have done, they are reaching the limits of what they can do. a lot of people are saying what we need is not broad economic stimulus, but just cash for families to go into lockdown, casual workers to quarantined themselves without having to be worrying about paying the bills. do you agree that model would given the unprecedented times? >> i do.

i think it needs to be considered. that is an extreme and aggressive action in ordinary times, but i don't think these are ordinary times. admitted was talking ago about providing liquidity that would take the form of cash through the financial banking system, but this would be, i think some of the proposals for congress to pass laws that would make cash available. some of this could be targeted towards companies in the airline industry, for example, that will need cash, but also to ordinary individuals. i think some of that ought to be considered. . guess the short answer is yes i think that kind of proposal needs to be considered. haidi: we have to leave it there, but great for you to join us. the former richmond fed president, al broaddus.

airlines.tions to we are hearing from qantas. the flexion australian -- flagship australian carrier slashing with a fourth round of capacity cuts. they will cut international capacity by 90% until at least the end of may. qantas will also reduce the capacity around 60% for the same period amid a sharp decline for travel demand. the impact of severe quarantined requirements, there is a 14 day mandatory isolation for international arrivals. that is playing into that well.on as we will see how that opens, but we are down just about 60% year to date. lots more to come here on "bloomberg daybreak: australia." this is bloomberg. ♪

haidi: let's take a look at how things are on the oil patch as this war of attrition when it comes to the price war between

russia and saudi arabia continues. we saw another dip in crude session. the u.s. the u.s. benchmark tumbling to a four-year low overnight. gasoline futures in new york plummeting by over 20%. we are starting to see lighter signs of a bit of a bounce here but certainly back up to the levels -- not up to the levels in 2005 but aramco saying it's comfortable with oil at $30 a barrel. saudi arabia says it will keep flooding the oil market with historic levels of crude as part of the ongoing price war. that was part of the story that lent brent below $30 for the first time since 2016. let's get some perspective from nasdaq corporate solutions, tamar essner. look at continued demand destruction, how long do we expect this political situation will remain unresolved? >> there's really no incentive right now for either saudi or

russia to come to the table. they are both using oil as a political weapon. this is more than just a price war. we think pressure really wants to harm u.s. shale industry. they don't want to see encrypt see but they want to make u.s. shale less globally significant in terms of the supply demand imbalances and they want to punish russia for basically being a free rider on this opec agreement that has been in place since 2016. russia has had production flat what they have not cut back the way they said they would and have not followed through on their planned investments within saudi arabia. i think the main collateral damage is going to come to u.s. shale because they cannot hold out for as long as saudi and russia can. even though they are both feeling the pain of lower prices, they can withstand this for quite some time. so if that's the assumption we are making, i want to dig deeper into how much pain

and how much quickly we will see it play out for u.s. shale because we are already seeing the cracks when it comes to energy high-yield. how quickly do we start seeing unraveling in the u.s. shale? cushingnk there is some -- cushion for 2020 because companies are well hedged through the end of the year at higher prices at where we are right now on the strip. the problem starts to come into 2022,nto 2021 and into because that's when the bulk of the debt maturities will come due. there's also the issue of the reserve based lending market, but really energy is a capital-intensive business and a lot of it is in the high-yield market. the amount of money that banks lend directly to the energy companies in the form of reserve based lending is double or triple the size. to the extent that those banks toll have requirements

receive a minimum payment, these energy companies will continue to pump even at these low prices , even though it is still unprofitable for them to do so just so they can take that minimal cash flow and direct it to the banks so they don't go into default. shery: given all these challenges, we have seen the markets already pricing this in. on theviewers can see bloomberg, earnings forecasts for those asian energy stocks have already been resized -- revised down. what would be the market impact for the companies that have to keep operating in this situation? there will be more defaults, eventually more encrypt sees, more comes -- bankruptcies, more consolidation. i think multiples can continue to stay at the press -- depressed levels and even go lower because perhaps even though valuations are so cheap compared to historical average, you don't have anyone that wants

to step in and buy at these levels. a lot of concern about the long-term use of fossil fuels has been leaving a lot of traditional value investors saying it is a no touch industry. it is a very difficult time for the industry. i think the stronger players now will become stronger, but a lot of the weaker ones will no longer exist in their current form. overall, i think that is a good thing for the industry. it does need to be rationalized. we are historically oversupplied in the market at record high levels and i think a lot of the u.s. shale has not been profitable. it needs to be rationalized so it can be more sustainable in the long term. shery: let's talk about the biggest player, saudi aramco. we are hearing that they will be slashing planned spending for this year, but at the same time want to boost output capacity by a million barrels a day. is this feasible? this is unprecedented, so we

will have to see how it plays out. i think that's one of the things plaguing the oil markets, that oil is a physical asset, not a financial asset. even though the market has to some extent priced in more production coming from saudi arabia, the big uptick isn't going to really happen until april and then it takes 30 to 40 days until those shipments get to asia or the u.s.. in potential ramifications terms of the physical supply chain have yet to be felt, which is why we are not necessarily out of the woods yet. even though we know that over time u.s. shale production will come down as a result of these prices and we know saudi arabia and production will go up, it sometimes takes a while until you actually see that in the physical market. tamera asner, director of energy and utilities for nasdaq, thank you. not to a big bloomberg

exclusive, the former malaysia prime minister gave his first interview with foreign media since his step down. he talked about efforts the government is making to reach a settlement with goldman sachs over the 1mdb scandal. giveldman has offered to one billion. me thatate -- they told goldman has about $6.5 billion u.s. persuadeto out-of-court, but goldman sachs demanded that there would not be any more than what they have suggested. reporter: and also central to 1mdb is the financial year -- ho.ancier jho l

what is the difficulty in locating him? >> i think he is hiding givingre and the people him asylum are not forthcoming and not helping us to arrest him. expect no choice but to that he is able to hide from police. interpol has not been able to do anything. reporter: do you know where he is hiding? >> i don't know. you don't know whether a couple of countries are providing him asylum? haidi: the former malaysian prime minister with haslinda amin. watch us live and see past interviews like that one on the

interactive tv function at tv . you can dive into any of the securities on the bloomberg function and become part of the conversation. this is the best for bloomberg subscribers only. this is bloomberg. ♪

shery: jp morgan and citigroup have become the latest to tell employees if they can work from home, to begin doing so this week. let's bring in the slack head of into growth for insight how to make this new normal a success. slack is a messaging platform. us.t to have you with tell us about how your business is being impacted, how much more traffic you are seeing given this new age of remote working. >> right. it's a pleasure to be on the program. thank you very much. first and foremost, our concern

is the health and well-being of individuals and families impacted by the coronavirus. we are seeing a surge in interest for tools like slack. this is what we are built to do. a number ofed organizations just recently hand -- here in australia implement working from home. some organizations are looking at perhaps putting half of the workforce in a work through home program at the moment, looking across entire organizations. fundamentally, this is something that was happening prior to the coronavirus breaking out. we had a number of organizations looking for new ways of working and shuttle-based communications, and this has expedited the need to get out there and help be productive. shery: now the united states is starting to implement this following some of the examples we have seen from asia. is there any advice that you

could give out to u.s. viewers given the experience? think fundamentally, humans react to crisis and look for ways to make things productive and make it work. in order for them to do that, you need to give them the right tools and the tools that will be secure and that will be enterprise grade. organizations, what we've done at slack is create support and we have a remote page where organizations can go to find information and self-service or register for a webinar on how they can help their organization implement a work from home model. havehose organizations, we had a customer success team to work hand in hand and help them change.trained --

we know uncertainty is difficult and we want to make it as easy as possible for these organizations. if i had to give one piece of advice, over communicate. be transparent. , lot of people, they ask there's a lot of uncertainty. the more information you can provide for the organization to stay aligned, it is better. haidi: what lessons do you think governments can learn about preparedness and unseen situations like this? >> it is difficult. i don't think we ever expected this to occur at the scope it has occurred. but what we have seen our progressive organizations here in the u.s. and across the globe moved to a channel based communication model. we've been around for over 30 years and we have said it is the most effective way of communicating. my advice would be just to be on the front foot and look at

technologies to help them be more imaginative. haidi: thank you for joining us, slack head of growth with us. that's it for "bloomberg daybreak: australia." we have all the action next. this is bloomberg.

haidi: very good morning. i am haidi stroud-watts in sydney. shery: japan and south korea open in an hour. i am shery ahn in new york. sophie: i am sophie kamaruddin in hong kong. welcome to "bloomberg markets: asia." "daybreak haidi: our top stories this thursday, the imf is calling for global corporations to fight the coronavirus. it is ready to tap its $1 trillion lending capacity to find a solution. president trump changes his tune on the outbreak. he had repeatedly downplayed the danger but is now telling

americans it is bad. shery: sanctions added to oil slumps. gasoline futures at the weakest since 2005. the markettraight to action after u.s. stocks plunged the most since 1987. sophie has the latest. sophie: markets coming online. the asx 200 under pressure, just holding in the red. we have the worst day on record on monday so we are expecting declines although we are seeing a slight pickup around the 5000 level for the benchmark. airlines in focus. capacity cuts. he restocks extending a bear run as they are waiting on fiscal stimulus details later today. we have new zealand's finance minister saying the country is facing the worst case scenario. didres for the nikkei settle lower by more than 9%, holding steady.

we could anticipate losses at the open in tokyo as well as in seoul. let's switch out the board to check in on u.s. futures. they are trading marginally higher this morning after the volatile session we saw overnight on wall street and it is a choppy start for treasury futures early in the asian session after cash bonds soared on monday. it's jgb futures hinting at losses in the cash session with focus on boj's unscheduled bond buying for this tuesday. let's switch it out to check in on commodities. higher wti just nudging but still trading near four year lows, hovering around 20 nine after tumbling 10% on monday and spot gold steady after falling as much as 1.1% earlier in the session. of losses asth day investors are seeking to raise cash. the mexican peso coming off the

record low on ahead on monday and we will keep an eye on airline stocks in particular so we will be watching for any moves in qantas and sydney. bring in our asia cross-asset editor. how is this selloff going to play out? we have run out of superlatives to talk about the various ways it's been record-breaking. >> we have run out of superlatives and that is everyone's question. we come in every morning and we think where is the bottom? is this going to be at? --it? i don't think we are at the point where people can call it. goldman sachs said they see the 2000 level for the s&p 500 but we are not there yet. questioneally the big and then what investors are starting to focus on. are looking at the health implications of these. now, investors are starting to

look and count the economic .mpact of what we are seeing airlines being on the front line . there's all sorts of other businesses out there that are likely to be impacted it and i think this is becoming the focus of investors, but it is really difficult. you come in every morning and you wonder how much further can it go? the australian market tumbled almost 10% yesterday. you saw the huge selloff in the u.s. it is hard. stability butsome it is really anyone's guess how much further this has to go. shery: our guest was telling us we actually need more in terms of liquidity injections. andreea: that's right. liquidity is becoming one of the major concerns of investors in this type of market.

jp morgan came out and pointed are seeing a record low liquidity in u.s. equity futures. it is a startling number but it is seven times worse than some of the lowest levels we saw during the global financial crisis and that is partly responsible for the magnitude and volatility of these moves that we have seen in the markets. the attempt to hit the u.s. dollar funding markets for liquidity has fallen short. investors want to see more in terms of fiscal packages. there's all sorts of other measures of funding that are showing funding stress that is coming under pressure. in the lebo market, the gap between -- also showing signs of stress. you are seeing the price of credit default swap. matt has also blown out as well as spread. there's all sorts of indicators

out there that are concerning to investors as they try to toughte is really very and very volatile market. , thank you,ea papuc our asia cross-asset editor. we are getting breaking news at the moment. we are hearing that american airlines is in talks to take on billions of dollars in new debt as we see this mad rush for cash by airlines, casinos, and other companies hit by the pandemic. we are hearing that american airlines is in discussions with banks on a multibillion-dollar loan facilityd according to people familiar with the matter. we have seen its rivals including delta, united, all shoring up their balance sheet. this as we see the airline industry very badly hit. american airlines stocks tumbling about 40% this year already. now, we are seeing more pressure for airlines to seek bailout

funds from the government. congressng in our editor, joe sobczyk, for a check of what some of the u.s. measures to shore up the economy could be. joe, we have heard from president trump today, talking about backing the airline industry. are we seeing any details on these plans? joe: the industry itself has asked for $58 billion in aid from the government, and from, as you say, said today that he would back it one hundred percent. he reiterated that in a tweet just before word of the american loans came about. they are still in talks with the white house and with congress, what shape that it will take. among other things, the industry also wants to get a rebate of excise taxes paid by passengers, and so far this year, there will

be undoubtedly some other measures that congress and the white house will be willing to throw in as this package proceeds. is there an indication that the white house and state governments perhaps are considering this idea that what the government -- what the economy needs now is basically cash handout to get people and small businesses and medium-sized businesses through the worst of this crisis? >> -- andreea: that is definitely -- joe: that is definitely a growing sentiment in congress. mnuchin suggested the administration would back that, some sort of tax credit. mitt romney today suggested that every household in the country whileget $1000 a month this crisis goes on. there are similar packages and

it really runs the ideological spectrum, from liberal democrats to conservative republicans, who are getting behind this. it is probably going to be a central piece of what the lawmakers are describing as a third round of legislation to respond to the economic crunch that is going on now. haidi: joe, thank you so much for that. the very latest from joe sobczyk, our congress editor, about some of these measures that are being pondered in the u.s. at the moment. she seven leaders say they will do whatever is necessary to ensure a globally coordinated response to the coronavirus pandemic and its economic fallout. nowlind mathieson joins us in london. we are getting the newest lines out of the u.k., where lawmakers are saying they will be suspending visitors to parliament over the concerns over viral transmission. u.k. parliament is closed to all

visitors and the public over viral spheres. lawmakers in the u.k. will continue to do their work in parliament. of course, the u.k. had chosen, to an extent, to take a different approach. some say a more relaxed approach following what they have said is a scientific expert advice they have received. how is that playing out in terms of where you want? --you are? rosalind: the u.k. government has decided that rather than trying to stop the spread of the virus, they need to manage the flow of it and slow it down. you get perhaps a longer period of infection but a more manageable one where you do not get the kind of peaks you are seeing in places like italy, for example, where cases are now just under 30,000. boris johnson, the prime minister, saying people should avoid social contact. they should avoid going to their neighborhood pub, to restaurants, and avoid social gatherings, but at the same time, british schools are still

open, and the government has yet to say whether there will be a petition on closing them. even though parliament is closed to visitors, lawmakers are still there and the parliament will continue. what we are seeing is some criticism of the u.k. government , perhaps reacting slower or with greater caution than other countries, and right now, the challenge of boris johnson is to walk that back without avoiding the perception that he perhaps miscalculated in just how serious this threat was going to be to the u.k., because that could create some political risk for him, but certainly some questions now coming into the u.k. and criticism at home of him here in london and his handling of things so far. we seeing inre terms of multilateral action? theave seen the g7 talking, imf also pledging some lending capacity. rosalind: that's right. they are sending a message, you

are ino say that they this together and they will do whatever it takes together to get the -- let's get economic impact on this. we saw that the u.s. president had to be pushed into having a call today with his fellow leaders from the g7 and coming off the back of some tension with europe over the initial move to put a travel ban on travelers from europe. and then in the u.k., we can see it going its own way. there is a sense that perhaps the u.s. and the u.k. have underplayed the risk from this and the extent of this and are now turning around and telling the public, actually, you do need to worry, and that creates the sense that perhaps -- together globally on all of this and taking different paths in some cases. they are trying to send a message to the market and to investors and to companies that

they are serious about working together to get the economic impact. there is doubt coming into that and that is perhaps also why you are seeing some of that extreme market reaction overnight in response. shery: rosalind mathieson in london, thank you. our international government executive editor and all of these new putting pressure on the airline industry. sophie is tracking qantas shares this morning. sophie: qantas shares are trading at 3.11 aussie dollars. a slight rise above more than 3% but we did see a pop of 6.2%. the open has a four day decline. year whennearly 60% you take a look at the magnitude of the drop for the carrier as it has announced a fourth round of capacity reductions. international capacity will be cut by 90% until at least the end of may and domestic capacity it hasgiven the drop off seen in international demand as well as domestic man with a rebound not seen for weeks or months.

this as qantas and bridge and australia are in talks with the government for financial assistance which airlines in the u.k., germany, and the u.s. have been doing. american airlines, the latest to get a bailout package. expect earnings downgrades to come in the industry given the earnings prospects look bleak for airlines around the world. so far in asia, eps forecast for airlines, 50% on this chart right here. haidi. haidi: sophie kamaruddin with the latest on the fallout for airlines. let's get you the first word news now with karina mitchell. has extendedpines its virus locked onto the entire island with about 60 million people now confined to their homes. the pressure will last until -- with police and soldiers enforcing the restriction. the stock exchange is extending trading from tuesday morning until further notice. government groups have forced the closure. malaysia is imposing sweeping curbs to restrict the spread of

the virus. religious institutions, schools, businesses, and government office will be closed from wednesday for two weeks until the end of the month. said all massster gatherings are banned and only essential services are allowed to continue. malaysians are also banned from traveling overseas. the fallout from the virus is prompting lower forecasts for china. 6% thisomy may shrink quarter, the first such contraction on record. across the in manufacturing, retail sales, and investment in the first few months of the year. it would require "an unprecedented rebound for china to achieve this year's growth target." global news, 24 hours a day, on air and on quicktake by bloomberg, powered by more than 2700 journalists and analysts in more than 120 countries. i am karina mitchell. this is bloomberg. haidi. haidi: thank you. still ahead, taking a look at the impact of the virus on the automakers of the world.

and guest will be joining us. market thinkse about the fed's emergency actions. we will talk to the man who oversaw market during his two decade tenure at the new york fed. this is bloomberg. ♪

shery: breaking news out of the philippines. asset anduspending fixed income trading through march 17 after they already halted stock trading until further notice. tradinge said these activities would be suspended starting march 17 for stocks in order to ensure the safety of employees and traders. they have suspended fx and fixed income trading from march 17. haidi. stock -- haidi: from markets to airlines to the

commodities sector, some of these big energy names will be the hardest hit in terms of the construction demand and decrease in commodity prices. breaking news from exxon mobil. they are evaluating steps to significantly cut capital as well as taking a look at reducing spending as a result of market conditions caused by the covid-19 pandemic. exxon mobil saying this unprecedented environment means they are evaluating all appropriate steps to significantly cut capital and operating expenses in the near term. we will get more details as those plans are finalized. in the meantime, the federal reserve just carried out its second emergency action in as many weeks but the market really did not receive those moves too well. monetary and fiscal policies, fiscal help, will not solve the

main problem. the chief regulatory officer at cls bank spent 20 years at the new york fed. great to have you with us. chair powell throwing in the kitchen sink, if you will. markets not to satisfied about this -- too satisfied about this. what else can the bank actually do? >> good morning. but the what they could problem is that the issue needs a response from other places, so whether the health authorities, whether it is the public authorities who need to come in, that is where the primary help and response needs to come from. in a sense, to look for the fed to solve what is fundamentally something that is not solvable with interest rates is may be expecting the fed to do more than it is capable of doing in a

situation like this. viewers, this gtv chart on the bloomberg showing how financial conditions have dried up. it seems to be in this aspect that the fed wanted to provide some sort of help. do they need to do more in terms of providing liquidity to the markets? they probably can and they probably should and they probably will. they have done a number of things already. they have probably -- when they did them, they thought they were doing enough. the circumstances, whatever you , probably initially, it needs to be followed up with more. liquidity is going to be something that they are more than capable of doing. that will help the banks with managing their own liquidity. it will help managing liquidity to their clients, but it cannot solve the demand destruction that is happening. a prettying to have

severe recession and there's really not that much that the fed can do about it. if you think about it, interest rates are already very low in the developed world. zero in japan and europe. 1.5% and thereabouts in the united states at -- -- now they are closed and now, -- and now, they are close to zero. it will not send people back to restaurants because they are not allowed to in many cities. demand.the pure the demand has been destroyed. you have problems with the supply chain that preceded that because the initial problems in china and other countries, and that is something we have to work through the system, so the fed can help alleviate some of that pain. but you still have to deal with the public health problem, with

the confidence problem that results not from the fed doing or not doing anything but from what the public authorities do. thecan you help solve increase in these cases? curve as thend the authorities keep on saying? that is much more important than what the fed funds rate is. the public health situation and the risks associated is really intertwined with the fiscal side as well, which is in terms of what do you need to do to make sure people stay at home, don't go into the office, don't show up for their shift if they are unwell, for example? does it make sense to you that it has been central banks on the front line and fiscal has been lagging? dino: central banks have instruments that can be used very quickly. central bankers can get into a announcee a decision,

it immediately. the fiscal authorities need to go through legislatures, parliaments, they need to draft bills, do things that take longer. what the central banks have done here is to create a bridge. bridge, icreate a should say more accurately. they give terms of the fiscal authorities can step up and use their tools, lower taxes, where they can. they can spend effectively. you hit the nail on the head in terms of how do you get cash to the people who cannot work so that you don't have consumption contracting that has already been happening? haidi: potentially a labor crisis as well. dino kos, thank you for joining us.

plenty more to come on "daybreak asia." this is bloomberg. ♪

haidi: let's get you a quick check of the latest business flash headlines. global aviation is among the worst hit by the virus with airlines around the world pleading for government support. warnings of imminent collapse. u.s. carriers asked for about $60 billion in government support while virgin atlantic makes some airlines will go bust. shery: boeing is adding its voice to aviation's calls for help, asking congress for short-term aid for -- the travel industry weakens by the day. boeing is trying to avoid layoffs and collateral damage to its supply chain as the coronavirus adds to its 737 max woes. haidi: the coronavirus is yet another blow for cathay pacific,

already under pressure after months of protest in hong kong. it lost more than 250 million u.s. dollars in february alone and virus disruption -- passenger numbers slumped last month on year and that moss is more than their net income for the whole of last year. ♪

>> it is critically important that the markets stay open during this time as opposed to trying to take breaks in the middle. >> the stock market, i am a little more concerned about. i have a real bear scenario. >> the steep decline in demand that we are seeing with the double whammy in oil prices falling is really unprecedented. >> what you see on the screen is only a fraction of the story, right? this market is more or less seized up according to participants in this space. >> we have to act fast. that is what is scaring the market right now with the bankruptcy risk. it is no longer potentially a

transient shock but it could be a permanent shock. of our guest views. we are seeing fears arising across asset classes. gauges, volatility are spiking. the vix topped 82 to close at a record high. peak fear amid these global recession risks about the futures curve on the vix remaining in backwardation, hinting at the choppiness in the near term. let's check in on the board for our view on aussie stocks this morning. we are seeing the asx 200 just gaining ground, up 1.2%. 5000 points here. this after the worst bum for the benchmark clocked on monday. miners and banks among the biggest boost. the aussie dollar just holding a six-day drop, trading at november 2008 lows and yields gaining grounds with a 10 year edging towards the 1% level after sinking 10 basis points on

monday and kiwi benchmark yields as well.n 10 bips stocks and wellington deeper into their territory. those lines we are getting around -- fair territory -- bear territory. the carmaker is to see a 97% year on your drop in chinese sales for the month of bribery. the stock has been under pressure over the course of the year, down 30% so far in 2020. this as surging virus infections around the world are wreaking havoc on the auto industry around the globe. haidi. shery: we are going to get -- haidi: we are going to get more on that because we have seen automakers shuttering plants across the world in response to the coronavirus. let's measure out the impact with the senior vice president for mobility. great to see you. at the start of the coronavirus outbreak, this was a supply chain dislocation story.

as china is getting back online, how much of this is much more a demand story? over theit balance out next three to six months? >> i think it is still not over from the supply side because china is not the only country that produces cars. coronavirusu have in korea, you have coronavirus in europe. supply chain disruptions can still happen. as you know, automotive industry the stocksy on -- are available in the supply chain and not really high. you are still not out of the supply chain disruptions. demand is a different story altogether. appeals to shut down the country, shut down the cities, it's going to have a massive impact on the demand.

it had a drop year on year. the numbers are likely to be low. haidi: how quickly do you expect a recovery? be a longs going to road. it's not like suddenly people will buy cars. square to go back to one. people are going to start buying the daily necessities. they are going to first buy things that are really top of the chart, top of the hierarchy. and then, you are going to see a pickup. we are in this for the long haul. how much will government support including tax rebates, across asia help with burring demand? of anyi have not heard tax rebates on cars because i they will havet

the same priority as airlines and financial institutions. sure which government will have a tax break for automotive's. even if it does, the timing matters. only then, any kind of incentive, -- challengingese times for carmakers and suppliers, is the possibility of touching some of the capacity or cost cuts, belt-tightening measures, is that something they can do? if you go through those measures, it will be really hard to again boost capacity after the outbreak is over. vivek: we are going to see this time as the merger time. megamergers.

surenies will let you make that they cut their costs and at the same time, protect the capacities. where there is a merger. nobody wants to close down the plant and then lose out. this is the time for making sure that you align your competencies six months later. i want to switch and take a look at other aspects of mobility. how much does the lower oil price situation that we are expecting now to pieces pain impact the take up when it comes to electric? vivek: when the oil price is high, the investments, the key

for indicators, goes out. that is where it makes sense. the oil price was $30 a barrel. back.companies will push this is not a great deal. is not a greatng news for companies either. we are going to see the impact on new mobility services. thank you so much for joining us. , frost & sullivan, talking about the implant across the mobility sector. let's get to karina mitchell for the first word headlines. -- lending capacity to

help nations tackle the coronavirus. the fund is calling for global coordination through monetary, fiscal, and regulatory support. as markets and the world economy we can further. -- weaken further. shery: let's turn to hong kong's response to the coronavirus being hailed as a lesson to other nations. the city's apparent success in controlling the outbreak has been helped by x experience -- it's experience, responding to the sars outbreak in 2003. the country quickly imposed social distancing, closing schools, and ordering officials to work from home. wore masksople from the very beginning. regulationshealth

approved a new coronavirus test that claims to examine patients 10 times faster. the ceo of roche spoke to bloomberg about the deal with plans to ship 400,000 kits a week across the united states. >> proud of what we have achieved not only as a company but also in an excellent elaboration with the fda. we started to develop this test for platforms in january. we developed a test in record very gooddue to cooperation with the fda, we got emergency approval already on friday. we have shipped products over the weekend and the tests are available across the u.s. >> you are saying it could not have happened any faster. the -- isas

concerned, we started right away and developed this test in record time. otherl, there are also tests available in the market. demand for enormous tests. we cannot yet meet supply, but i am very glad that we could make a big difference with this new test which was proved in record time. >> when you take a look out in april, what should we be doing today and not two weeks from now to get ahead of things? >> the most important matter at this time is the individual us tosibility of all of stop infections and flatten the curve. it's about social distancing. not joining any gatherings. it's about washing our hands. that is the most effective way to stop the spread of the virus. >> are we doing a good job of that right now?

>> certainly have not done a good enough job so far, so i think it is now high time for all of us to take this very seriously and make our individual contributions, all of us. >> that have been some who suggested the older tests that we used in a show could have been available earlier in the united states and in europe. it is not the case? in thes also a balance installed platforms which are out there in the system. you need an installed base. as part of the challenge at the moment, we have to ramp up the -- of machines so we can actually do the testing. that is also reason this automation is so important. you also need a lot of people. you need human resources to make it work. this new offering, i am very glad that we can bring important relief to the system.

the roche ceo speaking to bloomberg and basil and we have the latest figures of coronavirus cases and deaths out of china. we are seeing 13 new deaths have been reported across china. 21 additional cases, 16 coming from the previous day. two has only one additional current -- hubei has only one additional coronavirus case. it now accounts for only one of the new cases. in fact, most of the new cases in china have been imported. we are now hearing that 20 out of 21 of china's new confirmed have comemarch 16 from overseas. recently, all those numbers, the majority has been from imported coronavirus cases in china. only one more case arising in hubei although we have

13 deaths. coming up next, japan's tourism sector taking a hit from coronavirus. a closer look at the challenges just ahead. this is bloomberg. ♪

haidi: almost every major sport has been shut down globally because of the coronavirus. still, postponing or canceling the olympic games reportedly won't be on the agenda when the executive board meets later today. such a move would spell severe hardship for businesses in japan, banking on summer tourism. stephen engle traveled to hokkaido in the countries north to assess the economic impact. stephen: this was what a northern japanese ski resort looks and sounds like under a state of emergency. islandhere on hokkaido

and this is usually teeming with late-season skiers and no borders. today, blue sky day. completely empty. great for practicing wide turns on fluffy powder or snowboard flips down the band and cat tracks but devastating for local businesses, which get the bulk of their annual sales. jessica: the corona -- >> the coronavirus hitting japan, down more than 50%. >> with the announcement of the state of emergency in hokkaido, cancellations really started flying in and we expect to be down in march by at least 60%. stephen: it is usually a tough table to get. with the outbreak concerns, quarantine threats, and flight cancellations, the outlook at this point looks bleak. >> the fear is palpable. i am concerned about next season as well. i think people will be reluctant to travel to spend.

>> generally, we are getting bookings now. spot where it a stopped. no bookings coming in. stephen: it is one of the toughest business environments he has seen in his 22 years running an outdoor adventure company. not only has it meant generally end to winter backcountry touring, but it is also threatening the white water rafting season, especially as the tokyo olympic games are ax ed. >> that was a lot of my main income. i was hoping for a big season but it is looking quite the opposite. >> we are going to get a big hit. spell a that could slowdown in what has been japan's hottest property market over the past decade as ancient as wealthy carve a slice of asia. aspen of asia.

stephen engle hokkaido, japan. , the: joining us now infinity capital group executive director. great to have you with us. give us the gist of how this coronavirus outbreak is affecting the outlook for the property market. >> good morning. thank you for having me. i think it has been a strong growth area in japan. virus has beenhe felt. then again, in the property market, it is all about the long game. we believe that they will remain strong and the impact will be limited, because as you may or may not be aware, a lot of properties are fully paid so there's very long -- also feel the virus situation

will improve. that is a very relevant consideration as well, the view on the japanese yen against their home currency which could translate into additional gains depending on their entry into the market and what positions they might have. the yen is traditionally a safe haven currency. a push into buying japanese real estate generally. they: could we see prompting of some value propositions or bargains given what's going on with the uncertainty in the markets? yc: definitely. that will happen across the board. particular, as i mentioned, it is a strong growth market for the past decade and it will continue to be. we have seen a lot of actions for a few big names including the season recently.

the opening in 2023. tourism numbers have been increasing steadily in recent years. in fact, it has tripled in the past six years. 4 million in 2018 alone. from our perspective, indicators point north. as mentioned in the earlier it has been called the aspen of asia. comparing it to other parts of the world, these properties are less than half the price. historians just began. >> how quick would you see a recovery if the olympic games is canceled or postponed? yc: that remains to be seen. it will continue.

it would not be -- especially in the property market. it is about the long game. that it will be a ,ood recovery, as we have seen since last time. in terms of opportunities, would you then be taking this downturn we are seeing to add to your portfolio? yc: definitely. we believe that, in turbulent times, and in markets like this, that we will be value proposition, there will be bargain hunts. as long as companies have sufficient liquidity to see it through. there is a saying that, you know, one should be greedy when others are -- we think it is a good time to pop up positions. we think this is a good time to be looking at --

investors should not be afraid to dip their toes in. , thank you very much for joining us for the latest on japan's property markets. we have some developing stories. secretary mnuchin now saying the fixes, the technical fixes, have been put forth to that virus bill that was passed in the house earlier last week. we have seen this targeted fiscal package which also provides free virus testing as well as paid sick leave for some workers now. we are hearing from secretary minasian that leaders have signed off on technical fixes that the gop will work on other stimulus bills asap. we have seen congress pass an $8 billion spending bill here in the u.s. by lawmakers asking for more funds to deal with this outbreak. this needs to be passed in the senate and also signed into law

by the president. this is bloomberg. ♪

haidi: a quick check of the latest business flash headlines this hour. qantas announced sweeping cuts to capacity as the coronavirus continues to hammer demand for tickets. services are being slashed through may with a domestic capacity down 60% in the same period. the airlines says further cuts may follow. qantas says the move may be the grounding of its planes. shery: the coronavirus is yet another problem for rio tinto's much delayed mega mine in mongolia. work is continuing that progress is slowing as the government imposes curbs on movement to tackle the outbreak. rio says it is still too early to determine the impact of the restrictions last july. that delay could cost almost $2

billion. haidi:haidi: the infection handed tencent millions although the surge may slow and china heads back to work. with --cted new users who are confined indoors, helping tencent gain market value. tencent is expected to report its fastest pace of growth for revenues since 2018. let's take a look at how we are faring when it comes to the asian market session. e-minis gain 1.5 percent. marginal gains continuing the slump we saw overnight on wall street. the s&p 500 wiped out 2019's advance and nikkei futures in osaka coming under pressure , falling more than 2%. bargain hunters coming out of the woodwork for sydney stocks, getting 1% an hour into cash trade.

this capacity again with valuations looking very much cheaper, jumping the terminal, and now, we have the asx 200 trading at 1.5 times book value, the lowest number since 2012. spreadsorporate bond .2 increasing risks when it comes to cyclical risks, adding to the financing pressure on earnings. downgraded ating s&p global. caution to be had for aussie stocks given the volatility and as we learn more about the economic impact of the virus, they are spending the earnings guidance and qantas slashing capacity once again, shery. shery: coming up on the next hour of "daybreak asia," market snalysis with bnp paribas' representative from hong kong. plus, reports that consumer sentiment is dropping at the fastest in korea among oecd countries.

a guest joins us. 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: asia's major markets have just opened for trade. shery: i am shery ahn. sophie in hongm kong. welcome to daybreak asia. our top stories, the global cooperation against the coronavirus. europe must stick together. president trump does a u-turn on the outbreak, now telling

americans it is bad. saudi the slump among the russia. gasoline futures at their weakest. japan and south korea coming online. let's get straight to the action. sophie: doing little to provide relief for tokyo investors. than 1%ei losing more of cash trade while the yen just holding above. expecting delight -- declines. keeping an eye on what is going on with the stocks. over in sydney, we are seeing gains after the worst round for the benchmark. hovering around 61. losses are deepening, going deeper into bear market

territory. let's check in on what is going on with south korea. sliding more than 4% at the start of trade while the korean won now at the lowest level since june 2010. saying hehe governors needed a rate cut as they did not have much room. sophie kamaruddin with the latest. our next guest for means positive on china, india and the markets. let's bring in the head of equity research. joining us now from hong kong. talk me through your reasons for being optimistic.

>> first, i would like to mention that at this point in you do notthing -- know what is likely to happen. investors do not have a sense of where the earnings are likely to be. most basice variables in making decisions. we are living in an environment of peak uncertainty. , whenieve that eventually we have the virus under control, korea offers some opportunity because we have seen demand from the data centers, as far as ai applications are concerned and from five g infrastructure that is being laid out. china seems to be intent on that. , the market is

doing well and will continue to do well after we have some degree of control over the virus. formarket would be looking that signal. right now, in the short-term, almost nothing is predictable. what is interesting is the lack of predictability in the way that they are trading. thedo not quite know what meeting is, but i want to get to your call on china. figures,wful economic it was even more horrible than economists had been bracing for. we are seeing them outperform

compared to the rest of asia by quite a margin. is it going to be sustained, performing almost like a safe haven? >> there are two reasons for that. i would say more the domestic investor has some degree of andh and stimulus, monetary it would be able to stave off the severe economic downturn that you are seeing right now. perhaps more importantly, within , there are micro sectors which tend to be beneficiaries of lockdown measures. e-commerce, some of the game designers, social media.

the 5g infrastructure companies. does offer market some of those opportunities to investors. china has been relatively shielded. korea and china, we are continuing to the those outflows falling to the lowest levels. eventuallylk about these markets being resilient, whether it is korea or china, when will that eventually happen? is it ok to buy in right now when you look at what might -- what some might consider bargain?

>> we have not really advising investors to try to catch them. the kind of uncertainty that we are seeing is categorically the methodecause that is being adopted to control responsible. there is no escaping from that. it is something that we will have to do in the medium-term. , the variables, the basic corporate earnings, related variables are uncertain right now. .onestly, one does not know the same time, i would point arethat many of the markets

significantly lower than the long-term average. fall.ould lower than the long-term average. time, thatnt in confidence could emerge. , we need some visibility about the virus. getting -- shery: getting a sense for when the public health crisis will end. will eca survival of the fittest when it comes to the companies with weaker balance sheets -- of the see a survival fittest when it comes to the companies with weaker balance sheets?

>> in a sense, that could be true. difference in valuation between quality and relatively bad quality. we are already there. it is possibly more pronounced. kind of that differentiation could get accentuated, going forward. this is an opportunity for the that theyrealize could potentially face debt result risk. it is not really worth it. thank you very much for your time today. we will have more on how the virus outbreak is affecting market. we will be joined by the president of the ties talk exchange. the international monetary

fund is ready to cap it lending capabilities. it is calling for global coordination. the imf says the 2009 financial billion, adding there is still more to do. president trump has changed his tone on the infection saying disruption could last for months. his comments are a dramatic u-turn from previous statements when he downplayed the impact. he says the country could be fighting the virus until august or later. europe remains the focus of the infection as individual nations react differently. -- they will mccrone

french president said he would work with other leaders to tackle the virus. the philippines has extended the lockdown to the entire main island with about 60 million people now confined to their homes. it will last until at least april 12. the manila stock exchange is suspending trade until further notice. 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. still ahead, the outlook for korean retail in the wake of the virus. getting hit hardest among the countries. shery: taking on the virus. what is and is not in the

toolbox. this is bloomberg. ♪

>> primary responsible come from health care providers. we must do what we can to ease hardship.- the economic effects that materialized and get extended onwards. the damage done to the economy, that is something that we want to minimize. action and dc comics you will see prompt action again

. the public can be assured of that. >> rapidly increasing decided it waswe needed. this was taken within a framework of cooperation, overreaching impact on the global economy. i am not ruling out any possibility. yes, but ii did say do not rule out anything. central bank governors bowing to support the economy amid the virus out big. they have sprung into action to confront the coronavirus. the head of policy research and

the former fed officials was on the front line and joins us from washington. great to have you with us. beinge seen markets underwhelmed, but we have heard economists saying that this was a much-needed boost. what is your take on what the fed can do and what it should do . what is something that the fed cannot mitigate in regards to impact? the fed is doing what it can. what can do is try to mitigate the impact of financial disruptions on the economy. they cannot cure the problem.

hoping to prevent the economy from sliding into a recession or a sharp low down. it would be worse if the fed had not done what they have done. there are a number of other tools that they can use, should things get worse. in particular, one thing that is is that the commercial market is strained. one thing the fed can do easily the abilities to extend credit directly. that is a little more complicated today. think. we have heard people go as far as corporate debt buying.

>> the fed is governed by the federal reserve act. limited to buying government securities. that is it. the fed is allowed to buy short-term securities. beyond that, unless the law changes, there is nothing the fed can do. i do not think the fed is interested in having the law changed. who knows what could get thrown in? for the foreseeable future, the fed is limited. there are increasingly loud voices saying this is not a

problem that can be fixed by economic stimulus or unconventional monetary policy measures. would cash handouts to people, individual companies badly affected be the next part of the puzzle? >> i think that there will be some fiscal response. doubtk there is little that we are going through matt -- massive demand shock. do onng that congress can the fiscal side, it has the best chance. that could really mitigate the impact today to prevent us from going to a sharp recession. fiscal policy is political in nature. it takes time.

the first line of defense. that has not changed. fiscal policy will be implemented and it will be useful and helpful to get out of this predicament. the rba is expected to announce more details on what it can do when it comes to quantitative easing. what are the options available to the fed. could it change? thinkcould, but i do not the fed has an interest in reopening the federal reserve. from buying other assets, there are other things

the fed can do. credit to money market funds, to security issuers. there have been a lot of things that the fed can do. the question that we have to ask ourselves is, if the fed lends funds, will it mitigate a economic impact? it will prevent things from getting worse, but it will not make things better. it could prevent things from getting worse but it could not make things better. it has to be on the fiscal court. that is what can address the

situation. policy can make the recovery better by keeping the rates low and facilitating the credit flow once things get better, but fiscal policy is the right policy. itdi: we will have to leave there, but thank you for joining us. let's turn to energy now. holding out here a four year low as demand collapses. from sydney.s this is what the saudi's have said they are comfortable with. >> it dropped 10% in trading. the market needed a little bit but it is purely

technical at this point. , it is fairly small scale. what we are faced with is an unprecedented demand shock. will beands, they ramping up production in the next couple of months. aramco talking about upping production despite plunging crude prices. >> exactly. we had common from the aramco cfo saying he is comfortable with prices around $30 per barrel. introducing a lot more supply into the market where the

outcome is so uncertain and we do not know how long it will take for the epidemic to pan out the loop. it is playing with fire. forecast suggesting -- all bets are off. shery: thank you very much that with the latest on the oil markets. we will have more when we are joined by head of regional oil and gas research. this is bloomberg. ♪

shery: we are hearing from abc and nbc, the washington primary for joe biden. among the six states that were contested, we saw bernie sanders

taking north dakota but joe biden won mississippi, michigan, idaho and washington state as well. we have breaking news on boeing. they are commenting on talks with government and industry leaders, saying they are seeing from the viruses outbreak. we have more in this. another blow. under pressure after months of protests in hong kong. disruption hampers traveled. losses more than the net income. now offering nearly a skeleton flight services.

continuing demand for tickets. down about 60%. this is bloomberg. ♪ good morning!

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shery: we are getting breaking numbers out of singapore. export numbers contracting in the month of february by 4.8% month on month. this would be the first and those numbers for singapore, after three months of expansion. an expansion of 3% after contraction of almost 7% in the month of january. february year on year is a gain

of 3%. exports is a positive. a gain of 2.5%. electronics seems to be the bright spot in this very open economy during the outbreak. those electronic numbers, the weakness of siding. into thewe have turned green with an expansion of 2.5%. this would be the first expansion in more than 14 months or so. haidi: better-than-expected news for singapore. they are pretty traditionally volatile. we are getting the reserve bank of australia minutes coming through. 3is is from the march

meeting. agreeing to stay in contact. giving extra support to the economy and the coronavirus impact. pretty think that is a growth isomment there significant -- comment there. growth is significantly lower. james mcintyre is here with me. are these still relevant? >> we did have the quarterly out for the december quarter. it is clear in the minutes that they are putting that behind them. that is really what we are going to see. we have seen central banks doing that and we will be seeing the rba doing that when they had their announcement on friday. looking at what is coming and

what they need to do. moved onsay everyone on monday, that they made that announcement on monday. to behind the curve, we are used to talking having toral-bank chase it up. whattion targeting is not it is about anymore. inflation targeting, we can deal with that in a year or two's time. we have to pursue financial stability. that is the sort of policy measures weeks act to see. shery: i we going to see qe? see qe?e going to >> it is something along the lines of yield curve control.

potentially, as low as .3 and all the way out to the 10 year yield curve. they are prepared to buy unlimited quantities to get those yields. yields do result in some easing financial conditions across the economy. seeing them talking about it. if we get concerns about financial stability, we will need to see the rba and other banks stepping up. potentially long-term funding of banks if we get some of these major shutdowns.

impact thegin to ability of households. that is a real concern. haidi: the cabinet meets today. thesaid this was just first. are they scaling up already? >> they are already working on the second package. half,a week or a week and potentially needing to pursue those shutdown measures. people need a pretty big response in there. we had a $43 billion package with the second shot. and this is worse. it is a much bigger disruption and it will last quite some time. is going to need to be big

and different. we need to understand that it will not be the last. that is where central banks are coming in support the government to support this current injection into economies, but what might be needed as we get into the second half of the year to help economies recover. shery: thank you very much for that. the australian stock market is gaining ground across asia. let's get the market check with sophie. 1%,ie: consider is up about but not recovering those big losses that we saw on monday when it dropped by nearly 10%. of recessione risk rising. trading at lows.

elsewhere, at losses risk off with stocks and bonds with policymakers. we are seeing been losing ground. the central bank is conducting options as part of the announcement on sunday. 1038 --deadlines is at 10:30. be -- falling as much as 4.5%, so the index heading to .0 year lows, as much as 2% really not adding to the confidence for investors. let's get more on what we

are watching today. what are you watching in terms of what we are seeing? it is really hard when you see balances like these. >> most of what we are hearing is still really uncertain. we arethe major things facing is this really is uncharted territory for a lot of them. with the fed and central banks cutting rates close to zero, investors are trying to value stocks. them tory difficult for model anything, given that the virus is an unknown. crises, theyus were quantifiable events to some

extent, but this is very much an unknown event. is difficult to say when this is going to end. you might see the occasional rally, but that does not mean to any extent that we are at the end. moment, it is very difficult to say that. the fedould we see doing more in terms of the quiddity? it could be put into action. right. is that is definitely something that investors will be looking out for. up is one ofrying the major concerns. we had j.p. morgan saying we had

87 times worse than what we saw during the financial crisis. partially responsible for the magnitude of the moves that we are seeing in the market. volatility is very high. increase some of that liquidity, investors are not satisfied yet. they are looking for more and ,ifferent measures, coming up under pressure. -- we have seen the price of credit default. looking for more from the fed and from other central

banks around the world, also to movekers as they try through and navigate these really unknown financial markets. thank you very much for that. we do have breaking news the moment. we are hearing from local media that the u.s. house of representatives has passed a bill. -- gop leaders in the house had signed off on the virus bill and we are hearing that the bill has been passed with the fix is by the u.s. house of representatives. it will be sent to the senate for consideration. it does not become law until the president signs it as well.

this is bloomberg. ♪

shery: the coronavirus outbreak affecting sales. retail hitting duty-free shops. tourism and consumer names have fallen year to date. great to have you with us. a key question is, once the outbreak passes, how much of a recovery could we see in the sector? will this be enough to make up for the losses that we have seen so far russian mark >> overall, there is a big check in consumption. is gettingreak

controlled, a lot of the consumption will come back because there is a lot of demand for consumers as well. months,first two consumption dropped by about 20%. with the comeback of the traffic and hopefully the normalization, consumption will gradually come back. isry: the outbreak reminiscent of the other outbreak. this has been much more devastating. can you make some comparisons with 2015? think this outbreak and the -- those are015 very serious outbreaks. periods, a lot of

impact on the industry, but this time, what we are seeing is an outbreak of the disease. about a month's time, it is largely within control. these will be impacted largely in a quarter with the -- we think that the timeframe would be largely impacted. it would be controlled. thank you so much for joining us. coming up next, much more on malaysia.

another location getting locked down. more from our exclusive conversation. that is just ahead. this is bloomberg. ♪

haidi: this is daybreak asia. shery: let's get a quick check of the business headlines.

screening people for the coronavirus. accepting -- they are working with the u.s. government to test. it was put together after president trump promised a testing platform. advising -- the coronavirus shut down global growth. be rolling out the service for employees by the end of the month. it has one billion users over the whole of china. shery: the infection has handed tencent millions of new gamers. titles such as honor of kings and peacekeeper elite attracted

new users with people confined indoors. tencent is still expected to record its fastest pace of revenue growth. haidi: coronavirus kisses continue to rise with malaysia the last nation to take extreme measures. they have surged to the most in asia. what i we seeing in terms of the latest containment measures? >> most are going to be shut down. they are similar to the measures

put in place in italy. ande are still questions there are no answers as of yet. there are a lot of questions around that. what about the power struggle? is it having any impact on how the outbreak is being dealt with? >> their ability to put it in place, the current government was mainly brought about by the previous government. there is a lot of unhappiness around that. they have signaled a lack of hope in the current government.

he does not think the government will be able to handle it. what is the economic impact expected to be with the virus? >> it is going to be very difficult for malaysia. very unclear. on friday, the prime minister the impact for 2020 -- economists are saying it might be bigger in the coming months. shery: could we see more action

coming from the central bank? >> what we have seen is ensuring that the market is orderly. they have not taken any drastic measures. shery: thank you very much. course, we have been talking about malaysia's turmoil. it led to the alliance losing power. he spoke to bloomberg in this exclusive interview. reducedumbers are being . they are offering goodies tower members.

we may not have the majority. >> you have been reluctant. why is that? >> he has lost his popularity. some of them are quite violent. >> the new finance minister, a longtime banker. >> thanks managed by lending

through spending money. totally different -- i hope that we can do something about the recovery. >> how are you feeling now that you are no longer in power? up youryou feeling days? able to hoped to be retire. retire because now i can get up late. it is an inability to move around freely. happy as ii am as am.

i thought i might enjoy life a little bit. shery: clarification on the guest that we spoke to a moment ago. let's get to a quick check on the markets. getting 2% but not recovering from losses that we saw on monday. falling towards a 10 year low. the nikkei 225, we did have the topix back into negative territory.

restricting travel in the country right there. haidi: that is it for daybreak asia. a month of coverage does continue. coming online in just a half hour's time. stay tuned for china open. we are still seeing extended downside. i do have the china open just upon us. this is bloomberg. ♪

yvonne: welcome to "bloomberg markets: china open." david: were counting down to open of trade. our top story this morning, markets across the region stall for a sixth straight day as we await the open in hong kong and mainland china. the hang seng index trading below book value for on record. readies itsimf trillion dollar capacity and calls for global cooperation against the virus. president micron says europe much stick together. plungingergy demand is with gasoline