>> welcome to "bloomberg daybreak: asia." i'm shery ahn in new york. haidi: we are counting down to asia's major market open. our top stories this hour -- the coronavirus marches on with the u.k. in new york reporting the deadliest days yet. however the plans are underway to open -- reopen the u.s. economy in a few weeks. automakers are reeling from the pandemic as demand plummets. we will be hearing from nissan

this hour. but the city where it all began is getting back on track. china lifts travel terms in wuhan, ending 11 weeks of lockdown that disrupted the lives of millions. shery: we are seeing kiwi stocks gaining ground. we had seen u.s. stocks under a lot of pressure today. there was a lot of volatility. u.s. futures continue to fall 3/10 of 1%. we have surged as much as 3.5% in the u.s. session, but that really wasn't supported through the end of the trading day. bk futures also down -- nikkei futures down after japan unveiled the 108 trillion yen stimulus package. we have seven prefectures that declared a state of emergency. current account balance and trade balance this hour. we have crude at the moment rebounding after falling to the weakest level since the start of

the month. trump hassident threatened to withhold funding from the world health organization. he has been telling reporters at the latest coronavirus white house briefing that he is considering doing just that. bealso said the nation may getting on top of the virus curve. let's get more from our senior editor in d.c. what prompted this stance on what the president wants to do in regards to w.h.o. funding? >> this is a complaint that has been rising with the president for the last couple days. he was asked about comments he made previously. he said the u.s. would hold up funding to the w.h.o., then later backtracked and said they are just looking at it, saying they did not sound the alarm

,ooner about the coronavirus allegedly being china centric to closesing his call down travel to china early on. this is sort of a hold. the u.s. allocates $123 million to the w.h.o. -- to the world health organization. this would be a substantial chunk of their budget. it is not clear that trump plans to followthrough. >> congress is asking for 250ther 250 by william -- $ billion for relief, this coming on a $2 trillion relief package in the u.s. could we see this new aid being passed anytime soon? >> at this time, the senate has agreed they will do it quickly by the end of this week.

are eager to keep this pot of money, which is directed to small businesses with those of fewer than 500 keep them from laying off or furloughing employees. the house speaker is in favor of -- meetingsat, but to get additional funding past by the end of the week. they could do this without bringing everybody back to washington by unanimous consent. any single lawmaker could hold all of that up, requiring senators and house members to come back to d.c. from their home districts, because they are on break at the moment and doing social separation and avoiding

travel. we have a few steps to go. it seems very likely that one way or the other congress will do that. haidi: we heard from larry kudlow on tuesday saying they were looking at a potential timeframe of four to eight weeks econrms of reopening the -- the country. joe: there was talk about designating areas as red or green. they could open up certain areas, allow essential personnel and more workers to go back to work in areas where the infection is subsiding, but that would require quite a bit more testing than what we have right now in order to accomplish. it would be a piecemeal reopen of the economy as the virus continues to hit certain cities perhaps later, and depending on

what the statistics show about the rate of retention, the caution is they don't want to have another flare up. the administration is very eager to get the economy moving again. right now pretty much everything has been choked off. unemployment could be as high as 30% at some points as we go al ong here. they are working to see what they can do to make this happen. haidi: joe sobczyk in d.c. let's get the first word headlines. the u.k. has suffered its worst virus day so far, with the highest rise in deaths. prime minister boris johnson training in intensive care -- remaining in intensive care. rose, takinglities the overall total above 6000. the government says johnson is in a stable condition, does not have pneumonia and is not on a ventilator. he was taken to the hospital

sunday after spending 10 days in self-isolation. shery: italy reported the fewest new virus infections since march 13 as the government considers easing some movement restrictions in the coming weeks. just over 3000 new cases were recorded in the last 24 hours compared with 3500 a day earlier. food and health care business may reopen by the middle of the month. social restrictions could be eased in the number -- if the number of cases continues to slow. haidi: the japanese economy entering lockdown amid a state of emergency and rising fears of recession. the government shutdown seven prefectures as warnings output may fall by as much as 20% in the current quarter. prime minister shinzo abe launched a stimulus package close to $1 trillion. critics say he is being too slow to respond to the pandemic. shery: china is lifting travel restrictions in wuhan, the city where the virus initially emerged.

the city has been in lockdown for 11 weeks, with millions kept at home. cities already resumed services to wuhan. the move comes as china announced no new virus deaths for the first time. wuhan willavel to be formally lifted wednesday. ahead, an exclusive interview with nissan coo. ashwani gupta shares his plan for dealing with the virus and recovering sales and profitability. this is bloomberg. ♪

shery: global automakers are reeling in production plans as coronavirus stalls new cars.

japanese brands are no exception. let's head to yokohama for an interview with nissan coo ashwani gupta. how do you plan to deal with the ongoing impact of the coronavirus, first in terms of factory disruptions, and secondly, in terms of the demand-side, given nissan was already struggling with profitability and maintaining sales even before the pandemic. what is your strategy? ashwani: nissan is approaching a turning point for sustainable growth. this is execution of the business transformation plan. the business transformation plan is based on prioritization and focus in terms of our products, in terms of our market. we are going ahead with this business transformation plan. on the other side, we have the new challenge of covid-19. time,r us, during this

most important is people. as nissan, we are making sure our employees, our stakeholders are safe. during this time, we are not calculating the profit and sales numbers because we believe once the confidence of our employees and customers will be back, the profits will follow. what about factory closures and disruptions? you are closing your indonesia plant. can you explain why that decision was made and could we expect further factory closures to come? ashwani: in our principle of abouttization and focus indonesia, the closure is not the end of the business, it is

part of the rebuild of nissan's brand in indonesia. we are getting into indonesia uv.h our original dna of s the new suv. we need to serve the 300,000 customers which are driving the nissan cars in indonesia. wefor the plant, yes, stopped the plant for the time being. back hope we will come with an operation facility in indonesia. haidi: when it comes to your u.s. business, we have seen nissan putting 10,000 u.s. workers on furlough. you have called this a temporary layoff. does that mean you will be rehiring all of them after the pandemic is over? ashwani: absolutely.

closed because we want the safety of the people first. this is what we did in europe. this is what we did in u.s. we are following the regulations and the practices in each country, and in u.s., we have this provision of furlough, which means the workers can be at home and are able to apply for government support. on the other, for having the people first, we are continuing our health care support to these employees while they also received government support. this is what in the u.s. we call a furlough. shery: when it comes to government support, is nissan looking at ways of obtaining loans from governments, whether in the u.s. or in japan? uswani: i think, today, for

what is important is people first, and number two is cash. when we close the plant, our dealerships are closed, we don't have revenue. in that sense, we have to manage our cash. the banks are- supporting us in running operations during this difficult time. haidi: what does the current environment mean for the introduction of new models? new models -- we are continuing our new model development. people'sieve the confidence, the customer confidence and market confidence comes back, we will be

delivering new products and technologies to gain momentum once again in the business. >> with all of the pandemic concerns, what are you doing to prepare for briggs it -- for brexit? england? ahead in would you be looking at a closure of that side? ashwani: one month before i had switzerlandty -- has a great history for nissan. than 10produced more million cars in switzerland. out of this plant, we created a new segment in europe, a crossover suv. we recently lost europe -- launched europe, which is doing great. as far as nissan is concerned,

we are continuing with our regular business in europe using the plant. alwaysr, we as nissan follow the local business practices. the impact on brexit could change the landscape between the business in europe. however, we believe anticipating history,t can have knowing nissan is the biggest auto manufacturer in united kingdom. i do believe the talks between europe and the united kingdom will be business friendly conditions for the auto market. >> when it comes to managing cash for nissan, we have seen you struggling when it comes to issuing paper since september. we have seen downgrades, raising the cost of capital for you. how will your balance sheet look if this pandemic goes for much

longer than this summer or the fall? obviously these circumstances are putting challenge on our financial situation. however, with the support of our banks and the government support, we are continuing with our operational cash management. we do believe with what is happening today, it is challenges, but it is not impossible. we are continuing with our regular operations under the circumstances. >> good luck on that front. thank you for joining us, ashwani gupta, nissan coo. m&ang up next, a ceo says fears could clear up over the next quarter. more from our exclusive interview ahead. this is bloomberg. ♪

haidi: the volatility index is now trading around its lowest level in a month amid optimism the global downs are working to slow the virus spread. ceo iseo -- cowen's among those saying the worst is behind us. jeff solomon told us technology is the sector to watch. jeff: we have probably seen the most exacerbated moves in equity markets we are going to see in terms of a stream volatility, in part -- of extreme volatility, in part because the virus was an unknown unknown. we did not know what the impact would be on march 1 of this year. it felt like there was no bottom. frankly, people did not know what the policy responses would be, they did not know what liquidity was going to look like. lookmes like that, people

for the most liquid assets to sell so they can have cash in their pocket. that happened to be equities in march. the bounce we saw at the end of march is a function that stocks had fallen so far so fast that there was technical rebalancing. now we are following the arc of the virus as a primary indicator. that is the news we have gotten -- the news we have gotten over the past few days is upbeat as it relates to hard-hit areas like new york city. as a result, the market is saying maybe this will not be as bad as we thought it was going to be. we will see how that plays out. all kinds of reasons why equities move. if you are trying to plan out a portfolio or any kind of valuation plays, how do you model that in this type of

environment where, even if you have a company that looks good on the surface, you don't have the certainty and clarity as to the economic fallout or what the longevity of this followed is going to be, how do you model -- fallout is going to be, how do you model that? jeff: people are having the time to react to where the fundamental long-term value will be. when there is significant panic selling, it is hard to do the fundamental work because there are so many unknowns. now we can get an idea as to how upbeat the economic recession is likely to be. people can start to model that out as a worst case scenario, median case scenario, or not quite as bad. i refer to those as the l recovery, v recovery. there will be a recovery. the question is how far that

recovery will be from where people modeled out the end of 2019. once you start to do that, you can begin to discount the immediate impact of the virus and begin to look beyond into what those22 of businesses will look like from a cash flow standpoint. once you start to do that, you can ascertain where floor values will be in some of the more obvious areas. we are seeing that in places like health care, technology, anything that benefits from staying at home more. those will be the areas that i think obviously have rallied first and will continue to show resilience in this. >> when the market bottomed, at least temporarily in march -- march 23 i believe -- there was a desperate need for cash among companies. we know parts of the fed, different programs they launched, will take a while to

get going. has it calmed nerves to the point where your corporate client can access the cash they need in a timely manner on manageable terms? do you see this separate rush for cash like we did at the end of march two or three weeks ago? jeff: two different things there. mores immediate cash poses immediate challenges like making payroll versus long-term finance to withstand a prolonged topomic turn down, where my line might be significantly lower than i budgeted. as a relates to the first, a lot of companies drew on their revolvers -- they know the first thing you do in a time of uncertainty is you hit your revolver and try to get as much cash in your hands as you possibly can. in the early days, the first or second week of march, there was

a lot of drain of liquidity in markets. the fed acted very quickly to pulling out a lot of the programs that we saw post the global financial crisis to get liquidity back into functioning markets, which i think was a huge relief. people do not have to worry whether they would have cash tomorrow. that was a huge relief across the entire platform. i think that is what drove the rallies toward the back half of the month, that people felt like there wasn't going to be an immediate cash crunch. now, as we progress beyond this, people are modeling out how they will access these programs. chairman andowen ceo jeff solomon. let's get a quick check of the latest this is headlines. the family that pioneered bargain shopping in the u.s. has

reached fortune new heights. the combined wealth of the walmart siblings has risen to $165 billion in a recession where consumers stock up on staples. hong kong's richest man increased its stake in the family business for the third time in two weeks. tumbling upen holdings. whenio begin in mid-march both companies took hits from the antiaging protests in hong kong -- anti-beijing protest in hong kong and the coronavirus. says the money will go to health and universal basic income once the pandemic is under control. dorsey's pledge represents one quarter of his fortune. coming up next, japan enters a state of emergency. what it means for companies and

the economy, next. ♪

>> this is "bloomberg daybreak: asia." on, evenavirus marches as some nations report and apparent slowing of cases. new york state reported its deadliest day yet as global cases topped 1.4 million with 81,000 deaths. white house economic and visor larry kudlow is -- advisor is writing an -- is striking an optimistic note. he says plans are already underway for the post virus world. attacks theump world health organization's stance on travel bans and says it failed to sound the alarm soon enough on coronavirus.

congress allocated $123 million to the agency this year. the president slammed it for being what he called "sign it -- china-centric." the international labor organization says the coronavirus is having "a deep, far-reaching and unprecedented impact on unemployment" with potentially one billion workers at risk of losing their jobs. it says lockdowns and shuttered businesses are affecting almost 2.7 billion workers with hotels retail, and manufacturing worst hit. u.k. brexit negotiators want to resume talks with the european union this month. full meetings were halted last month after just one round of chief negotiators on both side showed symptoms. the u.k. continues to insist on a final deal by the end of the year despite calls from the business lobby to distal -- to delay the split because of the

pandemic. global news 24 hours a day on air and on tictoc on twitter, powered by more than 2700 journalists and analysts in more than 120 countries. i'm karina mitchell. this is bloomberg. shery: let's now get a quick check of the markets. kiwi stocks gaining ground for a second session. we get business confidence numbers later this morning. kiwi stocks up 910 someone percent. u.s. futures -- 9/10 of 1%. u.s. futures reversing gains. s&p 500 surging as much as 3.5% at one point, just to end the day in the red. nikkei futures down 1% despite that japan unveiled a record $108 -- 108 trillion yen stimulus package. tokyo, osaka, and five other prefectures in japan entering a state of emergency as prime minister shinzo abe announces that record stimulus package. our japan government reporter isabel reynolds joins us now.

what is this state of emergency really mean? it doesn't necessarily seem to be enforceable in a legal way. isbael: that is correct. there are things we know about the emergency situation and there are things we are to find out. there are no legal teeth to this state of emergency in japan. prime minister abe made an emotional appeal last night to save lives by staying at home. allaid he basically wanted office workers to be working from home. that is something small companies in japan have little experience with and may not be set up to do. that remains to be seen whether they will comply. the other part is this state of emergency -- powers to local governments.

the leader of tokyo on friday said she will announce which businesses are to close down. that is another element. biggestaguest -- the stimulus package seems impressive in scale. what is abe hoping to achieve with it? isbael: the headline figure is amazing and enormous. that isn't necessarily all new cash. that includes things like government loan facilities and also some private sector participation. nonetheless, it is a big stimulus package. it is dividing into -- divided into two phases. what abe wants to do in the initial stages is risky people who lost their jobs and small businesses going under during the virus. there will be cash handouts for households, handouts also for

small businesses, and interest-free loan facilities. he is also going to allow a year's grace period for taxes for some businesses. -- tax payments for some businesses. he wants to achieve a recovery. that is something economists are casting doubt on whether that will be possible. he wants to apply stimulus to areas like tourism to get the economy back on track. thank you so much for joining us, our japan government reporter isabel reynolds in tokyo, taking a look at the state of emergency as well as what we had in terms of that declaration of the emergency, the state of emergency there. we are getting a note coming through on the u.s. set to block a $5 billion imf loan request to china to fight the coronavirus. u.s. planning to block iran's

requested emergency loan from the imf funding. taiwan says it needs that money to fight the coronavirus crisis, trump officials citing the government and iran has one billion-dollar accounts still at its disposal if allowed to access imf financing. divertwould be able to other funds to the economy, which has been under sanctions. much more to come. this is bloomberg. ♪

>> we are seeing those live pictures out of wuah, the original -- wuhan, the original epicenter of the coronavirus. four months ago we had news of this novel coronavirus coming from the city of wuhan. that was quickly placed under strict lockdown. we are seeing the reopening some four months on as the number of deaths in china from coronavirus yesterday was recorded at zero for the first time. there have been handfuls of new infections over the past weeks, but most had been imported infections from outside the country. -- wuhan oneing most severely

impacted city when it comes to its citizens. we are seeing the airport reopened. economic the street, activity only at 30% for uwha -- for wuhan. months under lockdown, we are starting to see the city of wuhan going back to normal. let's talk about this resumption to normal. the cofounder and scientific director of the global virus network and one of the co-discoverers of the hiv virus. it is a pleasure to have the doctor on with us. thank you for joining us. as we see these pictures of the city of wuhan slowly getting back to life, the travel restrictions being lifted, airports being reopened, we have to remind ourselves of the extreme level of lockdown chinese cities place themselves

under to get through to the other side. what does a reopening in the west of the world -- rest of the world look like in the absence of a widespread immunity test? dr. gallo: what does it look like? it will be variable, of course. it depends on the peak of the virus spread and what you can rationally do in response. if it is still climbing up, there has to be extreme caution. if it starts coming down, some let up can occur. i think we are some weeks away where i live in the washington dc-baltimore, maryland area. this will vary country by country. the great fear is if it hits the southern hemisphere hard, where there is less infrastructure to handle this. that is what the big concern is about, and also whether or not

there will be another so-called wave of this while we -- it cannot be -- you cannot be 100% sure. we have no choice. as it looks like the infection is going down, we have to start thinking about people coming back to function. said today atrump couple hours ago that because of the elevated level of testing being done in the u.s., that is why so many infections are being discovered. we heard from larry kudlow looking at a potential targeted reopening in some parts of the country in four to eight week's time. would you want to see antibody tests to take place before that happens? is that the next step? how otherwise do you avoid the risk of introducing people back into public spaces and then risking the second and third wave of infections we have seen

in other places around the world that have been particularly successful at controlling the first wave? dr. gallo: there is no easy way of predicting. you can see that yourself. any layperson can see that. we have to come back at some point. we have to try. we don't know if the antibodies are really active or not. as long as there are people who are infected going about, then presumably, if you have antibodies, you might be protected and are in good shape. but that is not absolutely certain. it is, in my mind, critical to have antibody testing, but it has to be developed and a high level. there will be cross reactions with pre-existing coronaviruses that cause things like the common cold. you will get some cross reactivity until we find those

antibody tests that can happen. what can i say? what can anybody say? there will be a period when we come back when we see the fall in infection. antibody testing is going to be critical to that, yes. >> can you hold on for a second? we have breaking news. more central banks reacting to this coronavirus outbreak. the rbnz in new zealand is open to increasing qw in -- qe in this rapidly evolving situation. an interview saying they are very open to changing the signs of the qe program. there is a limit to how much of rbnz canrket move the actually buy, but they are urging banks to step up in corporate bond markets. they are open to increasing their qe. thankback to dr. gallo,

you so much for hanging around. we have heard president trump tout game changer drugs, including hydroxychloroquine. based on your expertise, have you seen any hope we could get some sort of treatment out there fast and effectively? aregallo: the drugs that available right now are not easy to predict to be so-called game changers. i don't think it is a bad idea for testing of hydroxychloroquine. i think it is reasonable on the basis of what studies have been done in france and china. but to think of it as a game changer -- no, we don't have any proper trials near enough to make an assertion that this will be a major impact. other drugs that are coming along are interesting. they are taking time to develop. you can predict that there will be other candidates that perhaps make a bit more sense.

we have something coming up very soon as a concept. we think it will have a real impact on the epidemic. it is just a few days earlier for me to talk about that. it is related to a vaccine concept that could work very fast. if you were talking to me next week, i would be able to talk about it more fully. in summary, to answer your question, this is not going to be necessarily a game changer. it is something that may help and is worth a fixed trial, but not something we can be sure of yet. i think there will be better drugs coming. there are several possibilities coming, particularly for the bad late stage when someone is being intubated, when someone is short of breath. there are ideas that are being applied now.

these are important to watch. they will beat one after another developed -- be one after another developed in the coming weeks. >> are you talking about an adaptation of the existing vaccine/ -- vaccine? does that mean you can circumvent some of the efficacy trials that take so long? dr. gallo: you pinned me down. it is in that vein, yes. i would like to go further, but until another few days go by and we have proposals properly submitted, i think it is premature to go into more detail. >> dr. gallo, what seems interesting to me is there continues to be this gap in research with these viruses. we had sars, we had mers. why is it we don't have more vaccines and treatments for these illnesses? dr. gallo: first, it is not that

easy. [laughter] >> but why aren't we better prepared? dr. gallo: it is a reason. pandemic, an idea that i had and developed with two european colleagues, one from ,reland and one from germany forming a global virus network. we established it. it is now consisting of 53 centers of excellence in virology, covering every kind of virus that can cause disease in humans in 32 different countries. we recruited a few s.ars ago for thi i think this is the kind of thing that is necessary. we have w.h.o., but w.h.o. does

not have laboratories. they know who to call upon. i think a global virus network has been long overdue, and needs, by the way, the support of people. it has been sitting there since we created it in 2011. by 2013, it was getting into more full of element. that -- full development. that organization right now, we can press a button and talk to virus experts all over the world. every eight days, the president will have a conference call. we will have maybe 25 directors of centers of excellence on the phone. we get international, global information. a pandemic is pan, it is everything, everyone. inputd wider thinking and

from different countries, not so much preoccupied with ourselves. i can tell you i have learned so much by the interactions with this very pandemic from others, from people in china. we are not under any government deliberately, so that makes it harder financially fo rus -- for us, but it allows russia to be involved, china to be involved. we can talk with each other and really exchange information by top experts. this is something that needs to be furthered. i am glad you asked me this question. i hope the answer helps people have some knowledge and appreciation of what this is about. >> thank you for joining us and thank you for your insight. cofounder and director of the institute of human virology dr. robert gallo. plenty more to come on

"bloomberg daybreak: asia." this is bloomberg. ♪

>> we are getting breaking lines when it comes to standard & poor's rating on the australian outlook to negative. australians long-term currency long-term the

currency debt rating at triple a. we are getting more details on the back of the rba conducting really extraordinary monetary policy as we see three packages of increasingly substantial economic stimulus to combat the impact of the coronavirus. we are getting the australian outlook cut to negative by s&p when it comes to the currency debt. stable.tive from aaa >> we have breaking news out of japan as well. core machine orders month to month gaining 2.3% for february instead of a contraction. the year on year a contraction of 2.4%. the expectation was for these machine orders to drop because of the coronavirus outbreak and having corporations cut investments.

they did cut investments year on year, but the cut was smaller than expected. when it comes to the current account surplus at 3.168 trillion yen. this is a much bigger surplus than expected for the month of february. the boost to surplus coming because of weak consumer spending in japan. we have seen exports, imports from china almost cut in half. this really leading to the surplus given the fact that we have weak domestic demand. asia turn to our bloomberg cross asset editor. what do you think of the numbers? it seems the trade balance is also a surplus and much bigger than expected. same with the current account surplus. better machine orders, but not all of these numbers for

positive reasons. orderscore machine picking up a little bit is perhaps a retroactive sign that the u.s.-china trade war being put on pause in january had some lagging effect. the core machine orders is a key leading indicator for global manufacturing. that number had come way down from 2018 until recently because of the trade war. really got walloped. in fact, the level of orders shrank to the lowest since 2013. we are seeing a little bit of a pickup, thanks perhaps to a lagged effect of the u.s.-china trade war. going forward, it is hard to see those being a big boost to japan

given the impact of the coronavirus. and as you point out, shrinking thend in japan has led to trade surplus and current account surplus to widen a bit. that underscores why the yen has done pretty well recently. japanin -- leaves japan in a pretty good position from a funding standpoint. fairlynese stocks seemed calm and sanguine about the emergency declaration. how are investors approaching this? is there a sense the impact may be measured because japanese stocks hit a bottom already? chris: there are a couple things going with japanese stocks. -- going on with japanese stocks. first you had the valuation

argument relative to others. they came into this crisis without the kind of high valuations that u.s. stocks in -- had.r had second second of all, we see numbers in japan for the coronavirus are lower than elsewhere. cutting against the emergency declaration, you've also got this unusual dynamic in japan where the government can't actually order businesses and individuals to stay home and shut down, so it is not exactly emergencysevere the declaration will be and what impact on corporate revenues panda earnings will b -- and earnings will be. >> coming up on the next hour of weoomberg daybreak: asia,"

talk about the challenges and opportunities in distressed debt. the market open is next. this is bloomberg. ♪

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can your internet do that? xfinity xfi can because it's... ...simple, easy, awesome. [ barking ] >> good evening. i'm shery ahn. >> and i'm haidi in sydney. markets have just open for trade -- opens for trade. welcome to "bloomberg daybreak: asia." withoronavirus marches on, the u.k. and new york state reporting the deadliest days yet, but plans are on the way to reopen the u.s. economy in the coming weeks. slashes oil

production for the year. there are fears any opec decision may not be enough to loosen markets. and in the city where the virus first emerged, getting back on track. wuhan ends 11 weeks of lockdown that changed the lives of millions. >> we are seeing china reporting 62 additional confirmed cases of the virus. symptomaticg 137 run a virus cases. we have seen -- coronavirus cases. we have seen no new deaths in china, but still, 62 additional confirmed cases for april 7. this, as china is set to reopen week lockdown.11 let's see how markets are trading now. 2ina again, reporting coronavirus deaths april 7.

the nikkei, up 3/10 of 1%. a little bit of a mixed picture across asia. the topic, also a quarter of a percent. we have seen slightly than expected eco-data out of japan when it comes to machine orders and the trade balance earlier today. we did have the japanese prime minister announcing a record stimulus package of almost $1 trillion as well. the japanese yen, strengthening against the u.s. dollar. take a look at how korea is trading at the moment. we are seeing korea under pressure today, down half a percent. we had seen the korean won, one of the big gainers in the last session. there was a lot of risk appetite despite the fact that the u.s. closed a little bit lower for today's session. the bank of korea decides haverow, and they may in march.rate cuts

heidi? --are watching sydney stocks we're watching sydney stocks trickling under pressure. u.s.ng the rally after stocks fluctuated. also a downside when it comes to the trading in the aussie dollar, as well. we saw the lowering of the s&p.t rating outlook from let's get some perspective on the implications for investing in australian assets. craig is here with us. great to have you. there willtable that be more downgrades for some time to come, and how does this

affect appetite for us -- for investing in australian assets? >> think it looks like it is potentially only a matter of time before the aaa rating is downgraded. there is clearly a demand for australian bonds. into, ilargely playing think, once this virus crisis is cleared and we are through the worst of it, the recovery , we don't have an impending boom this time around, or a consumer highly overleveraged, which i think what's pressure on the resumption -- puts pressure on the outlook or years ahead on after thisy we have crisis. when it comes to the action we have seen in terms of increasing that debt load, it is really a the governor and the rba

acting quickly in order to alleviate this unprecedented supply and demand that we have ongoing globally, and i think in that sense, we sort of turn the crisis the response with economic rescue package is. >> one of the things to come out of the latest note, investors saying it is time to stop playing, you need to be stop playing defense, you need to be playing time to stop defense. you need to be offensive. if we consider we might get economic recovery, and with the recovery based on what happens in china? >> we want to maybe take the other side of that for now. i think at the moment, the rapid bounceback we have seen across indices is a stark contrast to

the reality and the foundations of the rally are largely built on hope. the news has been less than anticipated. and so i think a lot of short covering has played into those weeks. tollsf course, death lowering is great for humanity, but the economic effects are not showing signs of leveling off. fiscal policy support has been quick off the mark and diminished to over six, but we would argue what we have seen to date in terms of stimulus is really stabilization. now at these levels, equity markets are no longer appropriately discounting earnings, dividends, of course, buybacks, as well. other impacts are yet to come down the line. specifically, when we look at the evaluation correction relative to previous crises and historical averages, as well,

the risk really is not favorable yet. it is improved, but we don't see the valuations outright cheap. the unprecedented nature of this crisis really means that uncertainty is ripe. i think perhaps the only certainty in this case is that volatility will remain. i think it is really a traders market.- trader's you want to be noble. if you are a long-term investor, you want a focus on capital preservation and not over treating. ding.t over tra >> we are just getting more details from the s&p'sdetails fs statement. after they change the outlook from negative to stable. saying there is substantial the duration when it comes to the fiscal headroom that australia has. the government debt burden will

weaken as well. the covid-19 situation has dealt australia and economic and physical shock. -- fiscal shock. annual growth fell to 1.3% in fiscal 2020. time, we do have china reopening, right? the economy is almost back to 100%. going back to work, as well, and travel restrictions being lifted. how soon do you anticipate china can recover, and we get that aboutf tailwind, talking economies like australia, like new zealand? >> suddenly it is an interesting point -- certainly it is an adjusting point, and there will be a tailwind to australia,

towards china. with any stimulus we see out of china in terms of promoting economic growth there. but i think again, relative to a previous crisis, you are not going to see the stimulus we saw ischina in april of 2009, that going to be the powerhouse that really propels australia through the relatively unscathed economies. i won't be taking too much optimism for australia out of that. wall street had this upgrade cycle within china with services exports like tourism, and education are seeing the conditions of this health crisis potentially meaning though sort s of sectors are going to take longer to recover. when it comes to china, china economy was in a

vulnerable period even prior to this global pandemic emerging. pressures were weighing on a give levels, they were somewhat precarious as well due to the hangover from the leveraging drive and the trade war. that really took a toll on economic activity within china. so when that sense, -- so in that sense, the chinese policymakers have a really hard bargain ahead of themselves and turned -- in terms of stabilizing growth. not to mention the added health crisis, as well. >> of course in china, we have seen a very state directed economy, but with the fiscal added alleing across the world, how do you trade in a market where the government is so involved in what sectors to boost and what sectors not to help out? >> in maine, it is again, -- i mean, it is again, a really

interesting point. it is a market where we do have these pockets of policy support, and in that sense, if we were to look at china and their focus prior to this crisis, avoiding a middle east contract, upgrading productivity by technology investment, artificial intelligence, and the like. it will still receive policy support. those are the barriers where you want to be focusing on, for sure. >> eleanor, what regions are you focusing on when you are trying to gauge the earnings impact of this virus outbreak? does it all depends on how broadly the economy is affected in each different region? >> yes, certainly. i think one of the problems at the moment is we still do not

know the scale of the problem. we do not know how long these lockdowns are going to be enac ted, and we don't know what this stage whether we are going to see a second infection wave, how it is going to play out in the southern hemisphere, and whether the northern hemisphere getting into fall, if we see a resurgence in virus cases again. it makes it difficult to know if enough has been done on the stimulus front and in terms of appropriately gauging the hit to earnings. but i think you have to go from i guess the underlying function, because at this stage, we do not say that equity market fully discounted those negatives. -- equity markets fully discounted those negatives. eleanor, what would you have to see in terms of the level of

infections and the amount of government action being taken on the health site. do you feel more comfortable with the valuations right now? >> in terms of the sort of conditions for a true bottom within equity markets, you certainly want to look at a flattening out of the infection curve. and i think in that sense, that will give investors a way -- also more clarity to gauge whether the measures that have been taken on the stimulus front are enough to support global economies. i think you want to as well see a peak an investor sentiment in terms of a peak panic. i don't actually think we are quite there yet. we have seen panic leveraging but i don't think we have seen the retail capitulation that would be needed that would typically indicate the bottom of the bear market.

we would also like to see a weaker dollar coming through into the picture and the fed really succeed on bringing that dollar weakness down. i think you need to see volatility resetting meaningfully lower. volatility remains elevated at the moment. that means alarm bells are still ringing in terms of stability in the market. in terms of other sort of various indicators, we would like to see the financial ratios picking up, as well, in terms of adding risk. >> eleanor, thank you so much for joining us, as always. let's take a look at some of the movers when it comes to banking and financials. we're seeing west bank down by 4.6% in this early part of the trading. saying no decision has been made it on the first half of 2020 dividend.

it will be announcing the decision along with results. where also looking at other major banks, all down over 3%. the bank of greenland became the first aussie lender to delay its dividend. they told lenders to reduce payouts during the coronavirus crisis. itk of queensland, saying will wait until the economic outlook would be clearer. anstill ahead, unprecedented loss of demand. we assess the outlook for oil. and, gauges of the full risk retreating from the highest levels seen in a decade. more on that. this is bloomberg. ♪

>> you are watching "bloomberg daybreak: asia." may pause u.s.

spending for the who, attacking it stands on travel bans and saying it failed to sound the alarm soon enough about the coronavirus. congress allocated $123 million to the agency this year. the president slammed it for being what he calls "china-centric." saying they have historically been an effective. the u.k. has suffered its worst day so far with its highest and british prime still inboris johnson intensive care. the government said johnson is in a stable condition, does not stillneumonia, and is on a ventilator -- and is not on a ventilator. travel restrictions have been lifted in 100 the city has been in lockdown for 11 weeks with millions of people kept at home. -- in wuhan.

the city has been locked in for 11 weeks with millions of people kept at home. china announce no new daily virus deaths for the first time. travel restrictions will be announced later wednesday. 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. >> thank you very much for that. we do have the latest out of hong kong. breaking on the broom blood. -- on the bloomberg. hong kong, extending social aprilcing measures until 30. stephen, you're in hong kong, you have seen those virus cases surging early during the pandemic during the global pandemic. -- during the pandemic, during the global pandemic.

things are stabilizing. what do you have for us? >> they are stabilizing, but reported deaths were recent travel histories. hong kong international airport has been pretty much locked down. no foreigners for transit passengers allowed in. that is taking steps to curb imported cases. the government is being cautious and probably rightfully so. closing beauty parlors and massage parlors. i'm surprised they had not been closed already. i am also hearing this morning that hong kong will keep its schools closed much longer than expected. we were expecting schools to be back up and running late april, late this month. that schools,ring much to the chagrin of parents citywide, will remain closed until at least the end of may, which is already getting towards the end of the calendars

-- the calendar school year anyway. moves, the of these emergency declaration in japan, what can the government actually do under the declaration? >> under japanese law, the civil liberties laws that are quite liberal, they cannot confine people to their homes. but under this national state of emergency, declared by the national government for areas including tokyo, the surrounding osaka, itluding would be a one-month state of emergency starting yesterday. so today is pretty much the first full day under the state of emergency. it is not a lock down it is more of a diverging -- giving powers to the local government to make suggestions to the people to stay at home. japanese etiquette, a

lot of people are staying at home, and people are not necessarily going to work. this, as the number of cases nationwide has risen to nearly 4000. 3906. the number of deaths has risen to 92. this is quite a sharp increase from just a month ago, when there was very little testing and very few numbers. the numbers have actually surged. especially in tokyo in recent days. shinzo abe says infections could reach 80,000 a month. people are taking heed of this advice. engle with the latest on the measures in hong kong as well as japan. coming up next, crude on the rebound. concerns, of course, remain. will cuts be enough? they and for social

distancing -- enforce social distancing this is bloomberg. ♪ enforce social distancing? this is bloomberg. ♪

crude oil futures are rebounding. concernsplunging under any deal by oil producers will not be enough. where watching all the volatility. this decision -- we are watching all the volatility. this decision from opec is already being seen by the markets as too little too late. >> the concern is that it may not make a difference. it is important that we are seeing intermediates steady income in right about 25. and electronic trading, let's go right to the west sectors intermediate 30 day chart. tuesday,ild day because it began almost the same

way with oil prices rising, then falling 9%. a 14 point5% -- session su had a 14.5% point wing in just one day. you see the same pattern with crude, oil. what we are seeing hitting the market right now, we are really weighing on -- right now, really weighing on traders, to determine the specifically of an output curve deal, the u.s. needs to report the slash in 2020 oil production forecasts. collapsing story, crude prices and plummeting demand, threatening to shut down u.s. production. president trump has gotten involved, he has tried to broker a deal between the saudis and russia.

many think it will not make a difference here. >> many think 40% of oil drillers could go bankrupt. what is the story day? >> the federal reserve bank of kansas city put out a survey, the response was visceral. almost 40% of oil and gas producers being wiped out within the year if oil remains below $30 a barrel. a lot of the response has pointed out why. the oilfield is generally leveraged until a lot of players just can't last without what -- with what is going on right now. we can't continue to put oil below the cost to produce it. one thing that is interesting to point out, the data wednesday is suspected to confirm the huge glut in oil supply. >> think very much for that. , the chinese city where the coronavirus first emerged, comes out of lockdown. this is bloomberg. ♪

>> this is "bloomberg daybreak: asia." marches on, even a some nations report an apparent slowing of cases. new york state reported its deadliest day yet, as casas top 1.4 million with 81,000 deaths. larry kudlow a striking an optimistic note, telling political the u.s. economy may be able to reopen in the next month or so. he says plans are already underway for the post virus world. the international labor organization says the coronavirus is having "a deep, far-reaching, and in person -- unprecedented impact on unemployment."

ilo says shuttered bigness is are affecting 2.7 billion food and retail many fractures being the worst hit. they are warning against burdening carriers with red tape to guard against any square up in coronavirus cases, they say they accept any for -- except the need. the japanese economy is entering lockdown amid a state of emergency. surge warningses in april by as much as 20% in the current quarter. the prime minister launched a stimulus package close to $1 trillion as critics say he has been too slow to respond to the pandemic. 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. lockdown of the city where the coronavirus first emerged, today after 10 weeks, wuhan now starts the long road to recovery, with economic wellity lacking behind other parts of the country. sharon joins us now. at the height of the lockdown, there was a sentiment from people in wuhan that this is a province that was sacrificed to save the rest of the city. how quickly are we going to see a recovery? on the what we have seen street talking to people, talking to business owners, it

is going to be a long journey back to recovery. even though the quarantine is lifted, a lot of restrictions remain. they basically govern all movement. you need coats to get into malls, stores, anywhere. worried is not only about a second wave of infection, but also worried about being quarantined again. everyone is being extremely cautious. >> we have seen a lot of skepticism about coronavirus comingnd death numbers out of wuhan. we have a clearer picture of where we stand now that the city is gradually reopening?

>> i think it will be a very long time, if ever, that we get a true accuracy -- accurate picture of how many deaths happened in one. wuhan.ened in at the height of the outbreak, a lot of people didn't even make it into hospitals or get tested. some people may have displayed symptoms, but did not seek medical attention and recovered, or they were asymptomatic. lt is very difficult to tel what the scope of the outbreak was. >> sharon, we worry about complacency. you see the pictures of masses of people now returning a sense -- as some key tourism sites are reopening, and retailers. being allowed of

back into the world is really interesting. are you getting a sense that there are changes to consumer behavior, in the way that people behave, a reluctance or fear that this is not over and they could get reinfected if they went out in public? >> yes. there has definitely been a change in consumers. some car dealerships said demand has been better than they expected in just a weeks they have reopened. they have gone back to the sales they were having an 2019. driving theirfer own car and not taking public transport, so they might buy a second cheaper car for their family member or kids. restaurant owners, even with the see anybody hardly gathering. even in the malls, those have

reopened, and there are almost no customers. there are very few people saying they still are only going to go out for essentials. there has been a permanent change. people are going to stay at home more, just be more cautious of other people. at least for the months to come. is not going to be the flick of soon as the lockdown is lifted. of people were affected. they could not go to work for two months. a lot of people worry about their jobs, their financial situation, as well. >> sharon, our beijing bureau chief, thank you for that. the impact of this pandemic not , but also pushing other markets to the brink of economic crisis. a johns hopkins professor telling us the extent of the

damages unprecedented. -- damage is unprecedented. >> we are very close. emerging markets have been very hard-hit. emerging markets repatriating in the u.s. as we now, at last for about four months -- it lasts for about four months. the peak is about two months. the markets are unable to absorb the health dimension of the crisis. would expect to see unprecedented -- i would expect to see unprecedented decline and widespread financial damages. professor, you are a world authority in real estate. something maybe diffused out

there, something we can't touch. how was the leverage in the real estate system? re they exposed as others were expos in 1998? >> in the global level in real estate, it is not that diffused as the united states. typically, in emerging markets, real estate takes place on a cash basis. the leverage is in the real estate -- the leverage in the real estate is not the most important problem. but impact to individual communities affected by pandemics is extremely long lasting. emerging markets may be particularly damaged by the health dimension of the crisis itself. can i talk a little bit about

what is happening here in europe? italy finds itself in a very difficult situation. the economy, already sort of burdened with huge amounts of debt. significantly more. what is your perception of the economic trajectory of italy and whether or not its debt is suspendable? particularlyn a difficult situation because it was already experiencing difficulty recovering from the financial crisis. effectively, they never recovered from the global financial crisis. the growth was permanently dipped by that shock. it will be extremely damaging -- help is desperately needed. ideally from the rest of the international community. there is a lot of talk about options for financial rescue.

i think it is the time to p fromer emergency heal financial -- help from international financial institutions to help european economies during the financial crisis. that was the johns hopkins bloomberg school of public -- johns hopkins university professor, alessandro rebucci. a number of markets around the world will be closed to read it is a long weekend. the nikkei am a firmly below 19,000 -- the nikkei, firmly below 19,000. fair to say, the muted reaction is suggesting some investors are equities havee

already hit a bottom. financials are weighing in particular. the be ok decision, profitability concerns -- the bok decision, profitability concerns rising. here, the s&p, really lowering the outlook when it comes to australia changing from negative to stable. we also are watching those banks , as well. a lot of uncertainty over what happens to dividends with the bank of queensland. seeing futures, we are

the dollar edging higher after the cut to the us of the australian outlook weighing on that. yen andeing the japanese bond market holding pretty steady. much more to come on "bloomberg daybreak: asia." this is bloomberg. ♪

>> signs of credit stress are easing in asia.

cost of insuring have fallen as investors turned more bullish on credit amid policy support and virus civilization. for more on the opportunities, we are joined by our guest. great to have you with us. is this a sign of stabilization? >> yes. there is a stabilization, of course, but the way we think about the market is in three ways. first of all, the market was very expensive to begin with going into the new year. place, theirus took and now thestarted next question is, downgrades coming, default traits, we are

-- out of the woods. >> where are the opportunities in this environment? >> to figure out companies that have enough liquidity to sustain activity for a long time. the ability to tap into the market when they need to. and those industries that will be less affected. obviously, there is a massive amount of uncertainty. the market might be cheaper, but it is not cheap necessarily. >> it is a challenge, because we don't really know how long the return to normal will take. even if we get there, what the new normal looks like. geography wise, what are you looking at in terms of these companies that can survive an uncertain period with little to no revenue? >> the first thing one has to

look at is the liquidity position to begin with. capacity tolarge put more into your banks, you are in good shape. the next question is, what are businesses that are essential and are likely to come back faster to operation? being in hong kong, where we have come back to some normalization is a good place to try to understand which businesses will come back to being active sooner. is it too soon to talk about value being found? given the levels we came off of work pretty lofty. we will have the answer in 12 to 18 months. it is not too soon to try to make the assessment, but it is

anybody's -- there is a lot of uncertainty. we have gone through multiple crises. thetarted investing in 1990's. the level of uncertainty today is far greater than in the previous two crises. when can we perhaps see a gradual easing of the lockdown that these could actually backfire? >> absolutely. that is a very good point. you take the easing of the lockdown is a good sign, but as we all know, we have seen in hong kong to a certain extent, second went. more importantly, once we start to see corporate earnings for q2 and q3 and q4 and start to see the problem for many corporate will we start to really

understand the whole that has been built -- hole that has been built in the market. more importantly, which one can survive. >> in terms of liquidity, given how much fiscal and central-bank action we have seen, where do we stand? >> that is another important question for the high-yield market. downthat liquidity trickle to the high-yield market or not? as far as i can tell, certainly in europe, the high-yield bond market issuers are not eligible to have any access to that liquidity. not buying that those months. are we going to see a two level market where the hybrid market benefits greatly from that

liquidity from the regulators come about where the high-yield market does not? and that is the way it is looking currently. risks you flag his social instability taking place. expand ontablish or what you mean on that -- mean by that? >> what i mean by that is we are seeing massive plans globally for bailouts and for sustaining the economy. obviously, somebody is going to have to pay for that, and that means that governments will need to either increase revenue or cut spending. the concern is that you don't have a lot of room to maneuver in terms of revenue, and that

cutting on spending, which could create social stability as we have witnessed in europe or in certain parts of asia in the last couple of years once we start to consequences of this. i'm afraid we are going to see the same this time around. >> thank you so much for joining us. micehl -- michel lowy there. alexander woeful be along with us. -- alexander wolfe will be along with us. much more to come.

this is bloomberg. ♪

>> let's get a quick check of the latest. boeing says it has identified two new software flaws on the 737 max. boeing says they do not affect the plane in the coming months. fault init possible the processor, which could cause it to dive on its own.

nissan says it is switching strategy amid the coronavirus, focusing on preserving cash and pledging to put u.s. employees back to work when the price of sense. the pandemic has hammered demands for new cars. after halting nonunion operations in america last month, and he some covers about 80% of regular pay. the company told bloomberg the virus fallout is challenging, but not impossible. 2 independent directors are struggling. softbank forng abandoning a bailout deal. saying certain conditions had not been met. the closing deadline for the sale passed last week. >> securities are identified

in a series of margin loans to the founder of -- financeoined by our china senior. -- senior editor. what do we know when this quickly unraveling drama? >> this is another sort of black eye to everyone involved here. are reports show -- our reports show over time now, international securities have been making a series of loans. also, a part of this was barclays, goldman sachs, and china international capital group. the loan in question was $580 million outstanding. so the banks, the earlier they had ceased a whole bunch of

shares and were seeking to sell them, obviously those are less now. we will see whether they will be ecoup that loan. they could potentially seek other assets. if they still have the wealth needed to cover debt loan. most ofcandal as a race that she race most of the wealth. whatever new do banks have? -- what avenue do banks have? what is unclear right now type of wealth the founder and chairman still has. as goldman sachs said in a statement earlier this week, they will have full recourse. the shares that they ceased were about over $300 million, compared to the loan which was $500 million.

thess they are able to sell shares at a higher price, they are going to have to seek some sort of recourse with the founder on the remaining amount there. much for joining us with the latest on we work. -- on wework. marketske a look at how are trading at the moment. risk off when it comes to the situation in regime. korea, holding that four-day advance. we are seeing some trepidation centralto south korean bank decisions. there is concern over asset quality. year in australia, we are seeing some risk off sentiment. s&p especially after the downgrade when it comes to the credit rating. >> plenty more to come. the former indonesian finance

minister will join us to discuss the -- to discuss. the china open is next. this is bloomberg. ♪

>> welcome to "bloomberg markets: china open." i'm tom mackenzie. david: i'm david ingles. we are just coming down to the opening of trade. our top stories today, the city where the coronavirus first emerged is getting back on track . wuhan ending 11 weeks of lockdown