[ whines ] can your internet do that? xfinity xfi can because it's... ...simple, easy, awesome. [ barking ] shery ahn: good evening. we are counting down to the market open. welcome to "daybreak: australia." whether andontinues when nations can go back to work. the imf says the downturn will be worse than the great

depression. while big0 jumping, tech the nasdaq forward. , butwarnings about growth despite the doom and gloom, australia is back in the market. we are seeing futures look like this. u.s. futures unchanged. this is after some stocks climbing on signs of the outbreak easing. we had a cloudy picture when it came to corporate earnings. big gains from tech giants. aftergan and wells fargo profits hit by major provisions. the nasdaq gained almost 4%. take a look at oil, now

rebounding from a plunge of more than 10% in the u.s. session to the lowest in two weeks. this, as we had that historic production agreement, but still concern demand destruction will offset those 9.7 million barrels per day cut. holding about oil $20 a barrel. still waiting for president trump's press conference. aboutabout to speak how he is handling the coronavirus outbreak, as he clashes with governors, clashing with new york's governor cuomo, about who has the power to reopen the economy, cases now nearing 600,000. our editor is on the line. this feud ongoing

between president trump and state governors. how will this affect the handling of the outbreak and how soon we could be opened the economy? is in terms thing fromthority, it is clear constitutional experts, that trump would not be able to overrule state governors, who have pretty much sole authority over safety and issues in their state. now, certainly the president's decision or his recommendation to open up will have some influence and some states will follow along with that, but as we have seen with andrew cuomo are setn newsom, they to go their own way was the time wass on making a decision

to open up, whether schools open , whether mass transit runs, and under what conditions. oneswill ultimately be the who would be able to ignore essentially trump's directive regarding reopening the country. what details are we kidding about the potential reopening and what that could look like in california? is starting to set out some criteria that will be looking at for reopening things, including infection thes, hospitalizations, and continued spread. california was early on in the shutdown. san francisco was one of the

first places to do so. they managed to keep infections at a lower rate by comparison to other states, particularly like new york and those on the east coast, so they will have more data they can look at to decide whether they want to open things up, but the big thing remains testing, whether or not there will be enough tests to reliably give governors the information we areed to open up, and also still waiting for some sort of test that can determine whether someone has contracted covid 19 and might have some immunity, so there are a number of questions left on that. , right, joe,

specifically on airlines, we have seem a bit of respite for the airlines now. joe: right. a number of u.s. airlines have reached an agreement with the treasury department to get access to a available to them. the deal covers all major carriers, for instance, american airlines, it said it would be getting $5.8 billion, southwest airlines $3.2 billion, and that is all from a $25 billion plot of money for payroll assistance allocated towards airlines in the major stimulus bill, so it will be a temporary lifeline for the airlines, which has really been hit hard by travel restrictions and a drop-off in

daily passenger demand, and they will come a number of the major airlines are taking part in this, and they won't be able to get that money soon. all right, the latest they are. -- there. the imf is morning the greatbatch down recession be the deepest in a century, saying the subsequent recovery will be worst than forecast if coronavirus is not halted. gdpfund predicts global will shrink 3% this year, the steepest fall since the depression of the 1930's. things improve in the second half, continuing the way they are now, then were looking ,t severe downside scenarios

growth -6% in 2020, when financial conditions will be tighter than now. >> we are talking about the potential reopening. as long asmay reopen they are maintaining social distancing. the list includes bookstores, the government saying students need to stock up. fire, with under madrid saying it is being reckless with construction work. toia extended its lockdown may 3, saying some restrictions may be lifted soon. prime minister rutte narendra modi said it will only happen where there is no growth and infections put india has reported 9000 cases, 339 deaths. prime minister modi set they

have paid a heavy price for the lockdown. leaders plan a coordinated strategy, with economies battered by lockdowns and travel and work restrictions. withs hosted by vietnam, delicate saying the economic impact of the pandemic will be broad and deep. tourism and retail are particularly badly hit. when it came to loan provisions, analysts were not just pessimistic enough for the banks. we will find out whether chris wayman got it right. up next, this earnings season is said to add another round of fear to investors. we will have more, just ahead. this is bloomberg. ♪

shery ahn: u.s. stocks rallied on signs the coronavirus private break -- outbreak is leveling off. says the fear has not been flushed out yet, and there may be another bout of panic selling ahead. --on gives, great to have great to have you with us. slowly pushing back doesn't help. that isncerning concerning when i look at valuations. , almost 20 highs times forward earnings, where we were at the beginning of the year when we were very optimistic. have hadand we positive moves around

around theon, coronavirus, in the u.s., and obviously there has been a lot slowly.about plans to those headlines are getting into heads, but we haven't talked about the economic impact. headlines have been about the pb, thoses, death, things -- ppe, those things. so i think as we start to see some real numbers come out in the first quarter, even guidance for second and third, and see reopen theto economy, people will realize how

long it would take to get back to normal, six to nine months, that will be when investors get scared again, so for now, we are positive because it has been negative for so long, but there is no rationality in these valuations we see going forward. , willahn: and yet investors be more forgiving in the first quarter, given that we a historic environment unfolding? >> yes. shery ahn: i'm sorry we have to leave it there. trumpe president speaking. let's listen in. mnuchin, withteve the major airlines, all of our

great airlines, to participate in a payroll support program. this agreement will fully support airline industry workers and preserve and protect the airlines, taxpayers. the airlines are in good shape and will get over a tough time not caused by him. the united states continues to make substantial progress in our war against the virus. we grieve every precious life but to the invisible enemy, through the darkness, we see the rays of light, the tunnel, and at the end of the tunnel and a see light. we are starting to see it more than ever before. numbers, everything we have done, we have been very strong on it and very powerful on it. you look at what is happening in

other countries, spain, italy, the u.k., we are working with them and trying to help him, especially ventilators -- to help, especially with ventilators. 50% of counties in the u.s. have zero cases, and many counties within the u.s. have a very small number of cases, large sections of our country are really looking at other sections insane, that looks bad, but they don't have the problem. i salute the american people for following are guidelines on social distancing. it is so different looking out there when i look at you. their devotion, your devotion, is saving lives. i am instructing my administration to hold funding of the who, while the review is conducted to assess the world health organization's role in severely mismanaging and

covering up the spread of the coronavirus. everybody knows what is going on there. american taxpayers provide $400 billion to $500 billion a year -- the who.ho china contributes $40 billion or less. the united states has a duty to insist on full accountability. one of the most dangerous and costly decisions from the who was its disastrous decision to impose travel restrictions from china and other nations. they were very much opposed to what we did. fortunately i was not convinced and suspended travel from china, stating thousands and thousands, people would have died. had other nations likewise suspended travel from china, countless lives would have been saved.

instead, look at the rest of the world, parts of europe, other nations and regions who follow who guidelines and kept their borders open to china, accelerated the pandemic all around the world. many countries said we will listen to the who, and they have problems the likes of which they cannot believe, nobody can believe. the decision of other major countries to keep travel open was one of the great tragedies and missed opportunities of the early days. the who put political correctness above life-saving measures. travel ban's work for the same work. that quarantines pandemics depend on human to human transmission. border control is fundamental to virus control. since its establishment in 1948,

the american people have generously supported the who to provide better health outcomes for the world, and most importantly to prevent global health crises. with the outbreak of the have deepandemic we concerns whether america's generosity has been put to the best use possible. failed toy is the who adequately obtain, vet, and share information in a timely and transparent fashion. who told depends on the work with countries to ensure that accurate information about international health threats is shared in a timely manner, and if it is not, to independently tell the world the truth about what is happening. in its basic duty and must be held accountable. it is time after all of these decades.

failed to investigate credible reports from sources in wuhan that conflicted directly with the chinese government's official accounts. informationedible regarding human to human transmission in december 2019, which should have spurred the who to investigate immediately. through the middle of january, it parroted and publicly endorse the idea there was not human to human transmission happening, despite reports and clear evidence to the contrary. experiencedhe who in declaring a public health emergency caused valuable time, tremendous amounts of time, more time was lost in the delay it took to get a team of international experts into examine the outbreak and that which we wanted to do, which they should have done, the

inability of the who to obtain to this date has deprived the scientific community of essential data. new data that emerges across the world on a daily basis points to the unreliability of the initial reports, and the world received all sorts of false information about transmission and mortality . the silence of the who on the disappearance of scientific and newers and doctors restrictions on the sharing of research into the origins of covid-19, in the country of origin, is deeply concerning, we put up then largest amount of money. not even close. to get who done its job

medical experts to objectively assess the situation on the ground in china and call out china's lack of transparency, the outbreak could have been contained at the source with very little death, and certainly very little death by comparison. this would have saved thousands of lives in a world wide economic damage. china's the who took assurances that face value, and just at face value, and defended the actions of the chinese government, even praising china for its so-called transparency, i don't think so. the who pushed china's disinformation about the virus, saying it was not communicable and there was no need for travel bands. they told us when we put on our travel ban, a very strong travel ban, there was no need to do it, don't do it. they fought us.

china'ss reliance on disclosures likely caused a 20 fold increase in cases worldwide , and it may be much more than that. the who has not addressed a single one of these concerns, nor provided a serious explanation that acknowledges its own mistakes, of which there were many. america in the world have chosen to rely on the who for accurate, timely, and independent information to make important public health recommendations and decisions. if we cannot trust that, this is what we will receive from the who. our country will be forced to find other ways to work with other nations to achieve public health goals. we will have no choice but to do that. are nowtries experiencing -- you look all over the world -- tremendous death and economic devastation withse those tasked

protecting us, being transparent and truthful, failed to do so. it would have been so easy to be truthful, and so much death has been caused by their mistakes. will continue to engage with the who to see if it can make meaningful reforms. for the time being, we will redirect local health and work with others, all the aid we send at verydiscussed powerful letters and with very powerful and influential groups and smart groups, medically, politically, and every other way , and we will be discussing it with other countries and global health partners, what we do with all of that money. it goes to who. and maybe who will reform, and

maybe they won't, but we will be able to see. as you know in other countries hit hard by the virus, hospitals have been tragically forced to ration medical care in the use of ventilators, but due to our early and aggressive action the skill of our health care workers and the resilience of our health ine system, no hospital america has been forced to deny any patient access to a ventilator. with all the talk you have heard were some states wanted 40,000 ventilators, i said, that doesn't work is a 40,000, and they ended up with -- doesn't work, 40,000, and they ended up with 7000 or 8000 and no problem. 40,000 ventilators for one state, ridiculous. the scary day of my life was about a month ago, when after a long day of meetings, my team told me that we were going to be

ventilators,00 that we were short hundreds of thousands of ventilators, this is the system we inherited. i had governors requesting unreasonable sums that the federal government just did not and you look at the states, the states did not have, the states were not prepared. i knew that every person who needed a ventilator and did not get one would die, and that is what we were told, they would die. i saw in other countries doctors to make decisions on who got a ventilator and who didn't, and i knew this would be a defining challenge of the crisis. those who did not give ventilators were said to be in a position only that one alternative, and that was death

would. we be able to prevent americans from dying -- death. would we be able to prevent americans from dying because they didn't get the ventilators they needed immediately? i instructed my team to move heaven and earth to make sure this did not happen. rationing andrtly districting ventilators that we had and that others had, and i got daily updates on the supply scum in andwe quest people wanting to have updates. we had a great group of people working on it. i instructed my team to use the , and theroduction act defense production act very powerfully, more powerfully than anybody would know, in fact, so powerfully that, for the most part we did not officially have to take it out. it was a hammer -- shery ahn: you are listening to

president trump talking about halting funding for the who while the u.s. reviews how the who has conducted its handling of the coronavirus outbreak, saying it failed to obtain timely information, criticizing the institution. venting more to come. this is bloomberg. ♪

now the whiteht house, the president saying that walt funding to the who, blaming it -- saying it will help funding to the uso. president trump also blaming states for not being prepared, saying the u.s. may produce 200,000 ventilators this year. is our guest. thank you for staying on the line. we have heard from president

we have heard from president trump, and he continues this ongoing feud with state governors in the u.s., but now taking the fight to the who. given how we are seeing more uncertainty in terms of politics and how they are handling the coronavirus outbreak, how does it bode for risk sentiment in the markets? we will be hearing from her shortly, but we are taking this live press conference from president trump. afternoon, ithis met with the leaders, the top america's big, powerful, beautiful, and very, very important hospitals, and

hospital associations, who join us today come in a great meeting, learned a lot -- today, in a great meeting, learned a lot. they have been doing a fantastic job. announce my to administration is partnering with hospitals across the country to create a dynamic system called the ventilator reserve, so we will have a tremendous numbers of ventilators to help states at a later date if there is ever a problem like this, which we hope ,o god will never happen again 1917, 1918 -- that is a long time ago. we hope it never happens again. like to ask the ceo of the american hospital association come the ceo of american health care the largest in the united states, the ceo of -- another company

company. in another, are you here from the cleveland clinic -- and another, are you here from cleveland clinic? you are. thank you so much. come up here. >> thank you, mr. president. we appreciate the opportunity to work with you and your team on the dynamic ventilator reserve program. this will provide an important mechanism serving patients in communities by insuring this vital equipment will be available to critical areas that are in need. you know, in this battle against this disease, it has affected the country a little unevenly, the rates of infection, infection, nicu use varies from one to the other -- and i see you use varies from one to the other. some areas are stretched beyond the capacity. the database of available

ventilators we are creating will allow us to flecks, so we -- flex, so equipment can be shared. shery ahn: our guest's back with us. i want to ask you how this will affect risk sentiment in the market, president trump taken the fight to governors in the who? this making as big of an impact on markets. were not talking about a big change in the progression or economics. this is some sort of infighting between the state governors in i don't seet, so this as having a big impact like other press conferences. shery ahn: we were talking about earnings coming out.

we kicked off the season with jp morgan and wells fargo, but given the uncertain environment could investors be more forgiving about these companies missing estimates? >> yes, absolutely. that is a great question. i don't think anybody will punish any company for missing estimates in the first quarter. there is a dartboard affect trying to figure out what earnings will be for the first quarter, and even to a certain amount the second quarter. earnings have been revised down .y 21% for the year i think what we will really be our companies giving us an idea of when they think they will return to profitability? or are they talking about more layoffs, do they have enough cash to keep the lights on for

the next few months, even if there is not enough revenue? i think it will be more about reading between the lines. when people realize some of these very large companies may have to lay off almost all of their employees and are at risk going out of business, particularly some retailers, that may be a wake-up call to investors. so i don't think it will be about first quarter. i think it will be about 40 guidance and how much cash you have -- ford guidance, and how forward guidance and how much cash you have. information technology and health care over the next months, and information

technology, companies like microsoft, ibm, paypal, oracle, companies with access to large cash reserves, but access to orh, even if they have two three negative quarters. those companies come for me, have the best likelihood to recover and had the opportunity recover and be at full capacity into a fulllly go economic recovery. tech a teflon play at this point? you would imagine that growth tech stocks would be the most honorable, but they were the quickest to recover. still where you would be adding positions? >> i would like to be clear, i'm talking about software and

services, not facebook, not that are ofpanies the backbone of infrastructure and doing business, microsoft, ibm, so when you break those , those industrial-level technology companies, these did hit and arebig of a , and software is still expecting profitable growth for 2020, and there are only four sectors out of 11 with the what iy come so that is

am talking about, old-school technology companies, not the new ones. you need: what would to see to see a broader recovery in small caps? >> that is a big question. certainly they are some of the most vulnerable when it comes to an economic recession. they are too high risk earlys point, way too worth looking at, and some are vulnerable of having to file for , ikruptcy, so at this point am very much risk off and would capd them, not only large s, but some kind of economic recovery, either

unemployment going down, you indicatorstrial showing the u.s. economy is starting to re-grow and recover. johnson and johnson searching after stronger-than-expected results. this is one of your favorite stocks, right? yes -- >> yes. shery ahn: are there other stocks like it? arey two favorite sectors health care and software and services. ,ealth care in particular companies like johnson & johnson . these companies that have large cash reserves also have access to cash and can get those loans

to keep producing, even if they but johnsonevenue, & johnson is absolutely outstanding and has been one of my favorites. area, health care is one where they are expected profit growth this year, which at this point, isn't exceptional for the u.s.. u.s. exceptional for the i would avoid insurance companies, but providers, health care technology, pharmaceuticals , you want to look to see they have that cash, because that cash crunch could be the difference between a company can manage to get through a six month to nine month recovery, or shut their doors. shery ahn: cash is clearly stoking for the next few months. great to have you with us.

we have to leave it there. let's get you back to the white house, president trump is speaking to the press. we will soon be sharing details and new guidelines with everybody. i will be speaking to all 50 , and irs very shortly will then be authorizing each individual governor of each individual state to implement a reopening, and a very powerful reopening plan, that their state at a time and in a manner that is most appropriate. the day will be very close, because certain states, as you know, our in a much different condition and place than other states. it is going to be very, very close, maybe even before the 1, so that would be

for some states. actually, there are over 20 that are in really good shape, and we think we are going to get him open fairly quickly, and others will follow. the federal government will be watching them very closely, and we will be there to help. we will be there to help in many different ways, as we have been, when we build hospital beds at a number nobody has seen before, where we did the ventilators that we just discussed at a level we have never seen before, nobody can believe, even other foreign countries, even proper countries were not able to do what we were able to do with ventilators, big, powerful countries, big producing countries can't believe what we were able to do. we will hold the governors accountable, but again, we will be working with them to make sure it works really well.

list of people that i will be speaking to over the next very short period of time, and in many cases tomorrow. we will have elected officials, and we will be submitting that is to use in the next 24 hours, but we have a list of different industries that i will be telephone,meeting by because we don't want people traveling right now. the american farm bureau , archeron, tyson foods daniels, midland company, core companya tractor supply , and others in the agricultural business, and banking, bank of america -- brian moynihan has been great, j.p. morgan has been

great, jamie dimon, goldman sachs, citigroup, wells fargo, u.s. bancorp, morgan stanley, james gorman, grand rapids state , all southern bancorp great institutions with lots to say and lots of good ideas. if you look at how paycheck has been working out, the numbers are incredible, and i hope congress will be able to supplement the amount of money going to our workers. i hope they are able to get that done quickly, because it has been an incredible success, and many are already spending that money in the money has been distributed at numbers nobody believed possible for a short period of time, only a week ago, but a lot of money has been district it already and it will keep our small businesses open. the construction labor workforce , international union of engineers, jim callahan, north america building trades union,

john mcgarvey, a lot of friends of mine, labor international union of north america, terry o'sullivan, international brotherhood of teamsters, james hoffa, the national contractors ,ssociation, david long national association of homebuilders, association of builders and contractors, associated general contractors, afl-cio, so these are some of pretty much all of the ones that will be on the line. in defense, lockheed martin, honeywell, northrop grumman, off the top of each company, ceo's, raytheon,presidents, general dynamics. energy, we had a tremendous success. over the weekend, it finished

with tremendous credit going to itsia and saudi arabia, and could be as much as 20 million getels a day cut, so we can rid of some of the tremendous excess oil that has been produced because of the fact the virus knocked out almost 50% of the business. it has been an amazing achievement, people say one of the biggest oil deals made, some say the biggest ever made -- i did not know that. we were involved in getting that done. were going to save hundreds of thousands of jobs for the energy dakota,, texas, north oklahoma, all of our different energy states. it is great. we are happy about it. i want to thank everybody. it is called opec-plus, it is opec plus, meaning some nations outside of opec, and i also want to think the president of mexico, because he was terrific,

showed great dexterity, flexibility getting the deal done. we want to thank him very much. on the energy front, exxon mobil , continental resources, chevron, southern company, alabama power, conocophillips, , and a fewration others, big ones, great ones. financial services come , johntone, david fortson paulson, citadel, ken griffin, elliott management, paul singer, vista equity partners, robert smith, fidelity investments, abigail johnson, mastercard, sequoia, warren stevens, charles schwab, chuck schwab will be here by phone.

food and beverage, national restaurant association, mcdonald's, darden restaurants, coca-cola, pepsi-cola, , yum brands,subway papa john's, wendy's, waffle house, starbucks, wolfgang puck,, keller, john george, my friend john george, and daniel does you know him. -- you know him. ups, jbnited airlines, -- hunt, crowley, maritime. in telecommunications, the legendary john malone of liberty media, t-mobile, charter

, and brianons roberts of comcast. thank you very much. health care, new york presbyterian, jerry speier, hca health care, thank you, sam peered i just met with sam. , common spirith health, community health systems , thank youhealth, 3m for helping us with face masks. it worked out well for everybody. procter & gamble, abbott laboratories, johnson & johnson, merck, pfizer, eli lilly -- shery ahn: you have been listening to the president talking about reopening the economy and how he is speaking to many companies and banks about this potential reopening. in some states, it could happen before may 1. coming up next, what we learn

from the earnings reports from j.p. morgan and wells fargo. we will have the details. this is bloomberg. ♪

earnings, jp morgan the lowest profit since 2013, setting aside $8 billion for bad loans, setting the scene for

what we can expect from coronavirus. joining us now is our guest. thank you for standing by. the key take away from bank earnings, how much they are setting aside for loss provisions, was it remarkable to use the numbers we have seen so far? thought jamie dimon in particular decided to go big and just take the number up quickly, which is fine. it is really a presentation issue. you are taking cash and moving it to reserves, so you are not spending the money yet come but you say i have losses coming. i think the whole industry will do that. in my model, i had taken it up 100%, and i was going to double it again in the second quarter, which gets us to 2008 -- 2009 levels of reserve, but -2009 levels -- 2008

of reserve, but unemployment, you take those up as well, and you have small and midsize businesses disrupted. they tend to follow unemployment, but this will be .igger than 2008 i thought that industry is reacting as they should, putting aside money now, but banks are making a lot of money. they have 150 billion dollars in quarterly cash flow they can throw at this. i don't think we need to talk about dividends at this point. young share buybacks gives $110 billion in capital for the top 20 banks, so that funds your reserve in cash terms, and i think that is enough. by june, we will have a better idea what we are dealing with and can go from there. the good news is the banks have

a lot of cash and will be retaining more because of sheer repurchases. sense, this is backward looking, but if we look to the next quarter, inevitably we will see a deterioration of asset quality, nonperforming learns -- loans. there will be a hit in the next quarter. >> oh yeah. provisions in earnings are alter ego's, so when one goes up, the other goes down dollar for dollar, and use saw this in 2008, the industry's profits disappeared and they took provisions to $100 billion. they got some of that back later, but they have two put the cash up and say this is for reserves based on the estimate of future loss. they look forward 6, 12, 18 months and try to figure what the cost of credit will be, and they start thinking about with the recovery will be.

the good news is you will see a lot of defaults and housing, in commercial and multifamily this time, probably worse than residential, but the numbers could be quite big. fannie mae threaten and freddie mac, needing more cash. shery ahn: were running out of time. quickly, how much does trading revenue help given the volatility in the markets? >> it depends on how good you are at managing your business. j.p. morgan has been extremely adept. i salute him. the other banks make money on volatility, but new issue business is really gone, so we m things down and get the investment-grade corporate sector back, asset-backed securities, everything else. that is what we need to see. shery ahn: right. thank you very much. hour, nowin the next

is a once in a decade opportunity to buy high-yield credit. this is bloomberg. ♪

shery: welcome to "daybreak asia ." i am shery ahn in new york. haidi: i am haidi stroud-watts in sydney. we are counting you down to asia's major market open. halts u.s.rump funding to the world health organization, saying it has failed to share coronavirus at data. the imf warns a downturn will be worse than the great depression. u.s. bank earnings get off to a pretty abysmal start.