shery: welcome to "daybreak asia ." i am shery ahn in new york. haidi: i am haidi stroud-watts in sydney. we are counting down to asia's major market opens. these are your top stories this hour. stocks are rising as president trump sees america headed back to work in the next month. futures are also lifted by news that boeing is ready to resume production. we all may end a volatile week -- oil may end a volatile week.

top producers consider even deeper output curves. shinzo abe's state of emergency now covers the whole of japan after critics said his initial virus response offered to little, too late -- too little, too late. shery: breaking news out of south korea. we are getting the jobless rate coming in at 3.8%. as expected, a rebound from the previous month of february. february was a 3.3%. in the month of march coming in at 3.8%. in line with estimates but still a rebound. of course, we have seen weakness in retail and hospitality, employment, given this coronavirus pandemic. the government has tried to create jobs and that has helped the economy. they of course have already passed a $10 billion extra budget, but we are now seeing the jobless rate climbing to 3.8%. this as president moon jae-in has called for more aggressive measures on job creation.

of course, moons ruling democratic party of korea just won the implementer elections. take a look at how markets are trading at the moment. we are seeing big upsides for u.s. futures, gaining more than 3%. this of course as president from just announced his plans on reopening the u.s. economy, saying 29 states are in the ballgame for opening relatively soon. we are seeing also positive sentiment across nikkei futures which are gaining 2.5%. this of course after two sessions of weakness the japanese yen against the u.s. dollar. he restocks gaining ground for a fourth consecutive session, highest level in over a month and even a little bit of a rebound for oil prices. of course, oil closed under $20 a barrel for a second session. still, it's around the 18 year low, haidi. course are we of continuing to digest what we are

hearing from president trump and his really expansive news conference at the moment, saying the u.s. has passed the peak when it comes to new virus cases. he has unveiled guidelines to allow the economy to reopen. he says he expects fewer deaths in the nation then even the most optimistic projections. greg sullivan is our reporter in washington. he has been watching all of this. you heard the president said he expects some american workers to be able to return as conditions allow. he's most recently saying it will be up to the government to announce their respective reopening plans but that 29 states are in the ballgame for opening up relatively soon. at the same time, we are hearing from jay inslee, the washington governor, saying he is deeply frustrated at the availability or lack of availability of testing kits and testing remains a real issue for that date so i am wondering how big is the gap in understanding, you know, in where things are at between the individual states, the

governors, and at a federal level? greg: that is right. president trump is releasing his guidance today that shows some states may be able to return to work sooner than expected. what is interesting about this guidance is that it does put a lot of the onus on the governors to both provide testing -- they are seeing a downward trajectory in cases and it also gives them the power to make the decisions about whether they can start easing off on some of the social mitigation that was meant to stem the transmission of the coronavirus. some of the up criticism about the trump administration with testing, that has been pretty widespread. the administration has faced criticism about the testing capacity. even before these guidelines were released, we heard some state leaders and business leaders were actually saying they might not be able to open more robust much

testing capacity here in the united states. shery: where are we in terms of coordination among governors in order to reopen their economies? greg: you are seeing some governors actually working together in a regional way. some on the west coast and some on the east coast. trump is quick to point out there are some regions that have in seen high rates of growth cases from the coronavirus. these states he's referring to when he says they might be able to open up soon, possibly even by may 1, as we heard tonight, though states do not seem to be coordinating as much but they are talking to the federal government about what they might need or what they might expect. there is a lot of talking between the federal government and the states at this point, but you definitely see some regional coordination, especially when it comes to considering how to reopen or how to ease some of these. shery: this as president trump

at that press conference he says the u.s. is prepared for some virus cases to return later this year. greg sullivan in washington, thank you. let's now get to karina mitchell with the first word headlines. karina. karina: good morning. we will start with japan. it is expanding its initial state of emergency to cover the whole country amid criticism the original order was too late and too weak. thezo abe is widening declaration from tokyo and six other prefectures, which were initially deemed to be most at risk from the coronavirus. several local leaders warned his original order left them vulnerable and some launched their own initiatives. the european central bank has reiterated that they will do everything necessary to cope with the coronavirus, which it says is the worst crisis facing the singles market in decades. more international cooperation is needed. christine lagarde said policymakers are committed to helping the euro area and are ready to increase the at chess asasset purchase program for

long as required. the european union says it will reshape its next trillion euro budget to focus on the virus and final much of its spending in the immediate future. ursula von der leyen said the new seven-year plan in january will be "the mothership of recovery and must be different to what had originally been imagined. she said the budget must be frontloaded to power investment in the initial years. the world's top oil producers say they are open to either -- even further output cuts beyond what was agreed in the opec-plus deal. saudi arabia and russia issued a joint meant saying they are watching the market closely and will take measures deemed necessary. they pledged more than 10% since sunday's announcement. producers would slash global output by 10 million barrels per day. global news, 24 hours a day, on air and on quicktake by bloomberg, powered by more than 2700 journalists and analysts in more than 120 countries. i am karina mitchell. this is bloomberg.

>> still ahead, we will take a look at how markets are faring with portfolio manager jim. this is bloomberg. ♪

shery: the scale of the recovery facing china will be revealed later when first quarter gdp growth is expected to show an historic slump. data from march is also expected to reflect a deep contraction in retail sales, investment, and industrial production. tom mackenzie joins us from beijing. even predictions of double digit contraction for the chinese economy. what is the consensus right now? forecast, we are looking at a contraction of 6%. that is yarn year for the first quarter. of course, that will be by far the weakest we have had since

about the late 1970's. it could be much, much worse than that. bloomberg economics is saying contact as much as 11%. if we are talking about the period of time for the lockdown china imposed to hold the virus -- they close all the schools across the country but also most factories and shops as well. those restrictions were only used until the end of last month. some of those restrictions remained in place. we will get a more granular look in the month of march. retail sales are expected to contract about 10% year on year. if all of 6.2%. investment is expected to contract by 15%. the economy is getting back towards something looking like full speed. bloomberg economics points to a back to work rate of 95%. investment has picked up.

there has been a push to stimulate domestic demand. officials say we will need longer-term growth targets. for context, the imf expects china at 1.2% this year. how effective has the policy response been? should we expect any kind of change or approach in the messaging? tom: policymakers are being quite consistent in saying they are going for a targeted approach. they consistently say they want to avoid stimulus that could exacerbate financial risks. in terms of what has been done over the last few weeks, they cut the repo rate in march. they cut the mending facility rate by 20 basis points. they cut the reserve ratio for banks by 50 basis points. this week, another 50 basis points mind up. the pboc will cut the interest

rate it pays on excess reserves. in terms of the credit data for march, it is in record levels in terms of financing and new yuan loans. it has been having some effect. whether it is enough is of course the key question. loan prime rate is expected to fall on monday. bloomberg economics expects a total of 50 basis points in terms of cuts by the end of the year and also other measures on the fiscal front as well, but clearly, this is key, trying to get those targets, economic targets, whilst avoiding a massive buildup of debt. our bloomberg markets coanchor, tom mackenzie, in beijing, with a preview or briefing ahead of the chinese gdp numbers. the virus pandemic has taken a heavy toll on economies around the world. u.s.s fed president sees gdp shrinking by 4% to 5% this year. robert kaplan spoke exclusively

to bloomberg about his projections for the second quarter. view is basically the same as it was two weeks ago. i think we will have a substantial contraction in the second quarter. annualizedd publicly 20% to 30%, so annualized it by -- multiply it by four. we will continue to grow into the fourth quarter. i probably would say today that peak unemployment may be closer to the mid to high teens, so maybe higher than i said before. we still believe that we will end the year with an unemployment rate something like 8%, 9%, or 10%, but in that range, a challenge going into 2021 will be the work -- to work at unemployment rate rate down. -- on a planet rate down. -- unemployment rate down. >> if you take mr. bullard

saying it will be a sharp v and mary daly saying this could drag into next year, the recession, where do you put yourself on that spectrum? worry. here is the here is the challenge. going into this situation, we had sluggish manufacturing, sluggish business fixed investment. globalad to do with weak trade but the one thing going for us is we had a very strong u.s. consumer. a low unemployment rate, household balance sheets are in reasonably good shape, and that was 70% of the economy. the challenge is, as we come out and if, later this year, the unemployment rate really is 8% to 10%, you will have a weakened consumer who will save more, be more careful, be a little bit more reluctant to spend, and that is going to be a headwind for the economy, and it may take a while, and i mean

into 2021, for the consumer to get his or her footing back, and i think that will be dependent on how quickly we can run down this unemployment rate to lower levels, so do i think it is going to be a v? i think the consumers situation makes me think we will have a recovery and it will be a solid recovery in the second half of the year from the levels we are at. we will have a 4% to 5% contraction for the year, but then the question will be what is the pace of growth and what is the state of the u.s. consumer? those are the questions and that is the issue i am most worried about. >> the psychology of the u.s. consumer is not simply being more conservative because they got burned in a downturn but being concerned about their personal safety. how willing are people going to be to go back out even when they are allowed to do it, to go to restaurants, to go out and spend, we participate in the economy? robert: so there's three levels

of issue with the consumer. one is personal safety, as you mentioned. this is why testing, ubiquity of testing, is so critical. if you have widespread testing at scale, i think that would do a lot to give consumers confidence to go into the workplace, to go out to restaurants, to go into other public gatherings, but that is very much dependent on how available is rapid testing. the other two issues are job insecurity. you know, i saw a survey from the new york fed that said something like 70% of workers are worried about their jobs. about losing their jobs, so there is that insecurity, and then the last issue is just what has happened to the consumer financially. particularly, that segment of the population, which is sizable, that does not have much savings, and lives in paycheck-to-paycheck, and this is going to make it so they are even more cautious, so those are the three big issues that affect

the consumer. the dallas fed president, robert kaplan, speaking exclusively to bloomberg. amid one of the most uncertain earnings seasons ever, the barrage of profit downgrades has started to ease for now. citigroup upgrades nine, minus downgrades has edged higher in recent weeks after reaching its lowest level ever last month. let's see if our next guest is so optimistic. joining us now is portfolio manager jim paleo. great to see you. at acurious, isn't it, time where it global recession is all but certain, that you get all sorts of doom and gloom when it comes to forecasting, and obviously, the backward looking data is pretty horrible. markets are pretty much looking for a reason to rally and go back into bull territory. in terms of this earnings season, is it a matter of how far the earnings have to fall as opposed to whether they fall at all?

it seems like it would not take much for investors to feel positive. >> you are absolutely right. this reporting season is going to be horrendous so we are going to see some of the worst downgrades, you know, in recent corporate earnings history. do remember, the reason the equity market wants to rally is because, you know, this downgrade or this recession, the demand shock is a force to demand shock because of the virus outbreak. you know, consumers are not allowed to go out and spend and that is why everything else needs to be shut. we have caused this recession. on the other end of this, if we come through this variety's -- virus knocked down period, we have something to look forward to. there is a lot of stimulus that will be spent.

for investors really trying to grasp how bad is it and do we see the light at the end of the tunnel, and which in my opinion is actually how quickly this knock-down can be lifted, and how well we are containing the virus at this point. haidi: we see the likes of new zealand potentially as early as monday talking about an exit strategy for its knock-down. quite unusual in how strict and how early they went to lock the economy down but i am wondering, is it enough to see individual economies are covered? is it enough to see a robust recovery in china for markets to rally, or do we really need to see more of a global upturn given how intrinsically linked global trade and businesses are? >> look, absolutely. for the stock prices or equity markets that go back to the peaks we achieved 1.5 months ago, certainly, we need to see a

global recovery, which we don't expect for at least another 12 to 18 months or even longer. however, you know, based on the scale, theof the travel within china, once the sars outbreak was contained, domestic travel picked up considerably because after lockdown, people wanting to go out and spend. the exitct that once strategy starts taking place, once restaurants are allowed to open, the more consumer facing businesses will actually do reasonably well because it is human nature. the consumer wanting to go out and spend, and that could see more micro domestic economy doing better than any sectors that have more international exposure because i do think that internationally, things will be discretionaryhan

spend within the local environment. be a: can there sustainable market recovery without oil prices stabilizing? jun bei: that is a really good? i do not think so because oil creates distress if the oil price can remain as -- at such a low price. i do think the confidence in oil at this point, it is somewhat inated to the confidence containing the virus as well as a clear path to recovery. see, you know, the strength coming back to the oil market. the production cuts are in place, however, the demand shock has created a significant amount of demand, so you know, even with a short-term cut, that will not be upsetting. what is needed is for demand to pick up. it might take longer than the consumer recovery because you need a global demand to pick up. six to 12 months.

oil has come up a lot, and it will probably stay here until we see a sustained recovery. other how will oil and assets be affected by the strength we are seeing in the dollar? jun bei: look, i think the strengthen the dollar is often reflective of investors risk appetites. lack of risk appetite, when people are taking flights to save havens, you can see gold prices rally as well as u.s. dollar rally, and that creates a lot of pressure for other asset classes as well as different, you know, emerging economies and the like, so my view is if the equity market starts to recover, have a sustained recovery, we should see the dollar strength coming off as the capital starts moving into other higher return assets. when it comes to

opportunistic positioning at the moment, are you still mostly remaining defensive or are you starting to look at, you know, companies that have really been sold off but could see the start of a recovery, particularly as we see some sort of targeted reopening? jun bei: look, absolutely, because at the moment, you know, towards the end of last month and beginning this month, you are seeing a lot of value opportunity in companies that essentially had revenues evaporated pretty much from now until the next three months, until the reopening, and these companies share price has come up a lot. they are operating significant amounts of rewards for the rescue might take. the base case in that scenario is the virus will continue -- the reading from the virus will continue to look better, and then this reopening takes place, and we should see those businesses recover quite meaningfully compared to some of

the defensive sectors because they have performed well. it's just a relative valuation call. shery: always great having you with us. thank you. let's get a quick check of the latest business flash headlines. unitedrriers dived after said travel demand has essentially sunk to near zero. the dire comment underlines the depths of the climbers -- crisis facing airlines as it forces people to stay-at-home and cripples airlines despite billions of dollars from federal resources. united warns it expects to fly fewer people for the whole of next month. australia's top airlines have been given more than 100 million u.s. dollars to subsidize internal flights as the coronavirus affects their schedules. virgin australia's network now consists of a single daily service between sydney and melbourne while qantas has cut capacity 60%.

virgin faces collapse with dent at $5 billion with the government resisting calls for a bailout. took off in late trade on news it aims to resume playmaking in the seattle area next week. 27,000 people will return to work on between aisle jets. restartlso hopes to production of the grounded 737 max. the coronavirus means the company will institute a phased shift pattern with face masks and physical distancing mandatory. tough says it is facing a call on job cuts amid the biggest threat to global aviation in history. the group is not immediately seeking financial aid, but says he may need to act depending on how the virus disruption unfolds as airlines delay or cancel orders. airbus already announced cuts in outflows and asked staff to take extended holidays, saying the

pandemic is an unprecedented situation. here is how markets are trading at the moment. we are seeing upsides for stocks across asia with kiwi stocks gaining ground for a fourth session at the highest level in more than a month. we are seeing nikkei futures also gaining ground to .7%. this after we saw some weakness in the japanese yen the past two sessions. u.s. futures really around session highs right now as we heard from president trump that he is planning to reopen the ,conomy in different phases gaining ground .1%, although still below that $20 a barrel level around an 18 year low. we have some top guests coming up ahead of the central retail corporation to talk about the impacts of the pandemic on their businesses. do not miss those interviews, coming up. this is bloomberg. ♪ nowadays you do more from home than ever before.

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karina: this is "daybreak asia. "i am karina mitchell with first word headlines. the people's bank of china says -- despite the impact of the coronavirus. the governor told our video conference that they are still resilient and the economy shows positive trends. he added that manufacturing and consumer demand are being restored at a fast pace after the nationwide lockdown stalled the mainland economy. they are cutting their benchmark rate in an unscheduled move as the coronavirus upends the economy. the governor lowered the rate 50 basis points to 2.75 percent more than a month ahead of the

banks next meeting. with the philippines main island in lockdown, the key rate is at an lowest since it adopted interest-rate car door system. argentina is asking foreign bondholders to accept a sharp haircut as the government tries to move its finances to a sustainable path. investors are being urged to take a three year moratorium on payments and a 62% cut on the interest they are owed. almost $70structure billion is part of efforts to support the economy amid the virus disruption. china's global trade exhibition will go ahead this year in virtual form. open its doors for the 127th time for 10 days starting june 15. the fair is going online and made restriction imposed by the virus to bolster china's foreign trade and investment. performnd imports better than expected in march although economists say the full virus impact is yet to be felt. global news, 24 hours a day, on

air and on quicktake by bloomberg, powered by more than 2700 journalists and analysts in more than 120 countries. i am karina mitchell. this is bloomberg. haidi. [no audio] right. let's turn to japan because prime minister shinzo abe is preparing to rush through more stringent measures to counter the coronavirus outbreak. we have our chief north asia correspondent, stephen engle, joining us on the line from hong kong. tell us a little bit about what the prime minister is doing now, because it seems he is expanding his declaration of emergency. what does that mean? there is anphen: existing state of emergency abe declared on seven prefectures and that will be expanded

nationwide to be extended to may 6. that is designed to limit the travel period during the upcoming golden week holiday at the end of this month and the early part of next month. basically, these regulations have been decried as toothless because national law does not allow for fines and penalties necessarily, but it has shown some signs of success. we are getting reports that new cases in tokyo, for example, the biggest epicenter so far in japan of the cases, have gone lower over the next -- last five days. casesave seen fewer new from the record we saw on april the 11th. yesterday saw 149 new cases in tokyo, but japan has seen overall a surge in cases over the past week. now, 8620 six cases, 100 78 deaths, so they are going to expand that national declaration of emergency nationwide. shinzo abe is ordering changes to a planned extra budget to allow more cash handouts to

individuals rather than households whose incomes have fallen sharply because of the virus outbreak. are also seeing singapore, a record jump in your cases there. what is happening? stephen: many of these new cases, nine out of 10 of these new infections, records 728 new cases were reported yesterday and this city of 3.5 million people, but nine in 10 of those new infections came from the 20, tore his from migrant workers where thousands lived tightly packed together so singapore now has 4427 cases. just attend deaths, but still, quite large number of cases in the last week. the number of cases have doubled in the past week. while imported cases have fallen to zero last week is of course entry rules for foreigners have been tightened at the airport.

stephen engle with the latest out of hong kong. coming up on daybreak asia, we will be discussing the outlook for health care and the coronavirus pandemic with a global research analyst. this is bloomberg. ♪

>> a quick check of the latest

business flash headlines this hour. rio tinto has released first quarter production results, calling the performance robust with all assets continuing to operate despite the coronavirus. the world's second-largest metals and mining company reported an increase in shipments and iron ore with a slight decline in the production of aluminum and copper. rio tinto says commodity demand in china is continuing to recover. outflows fromat its long-term investment products for the first time in five years, this as investors look to avoid the virus due to the market turmoil. institutional investors withdrew around $30 billion from mutual and exchange traded funds. blackrock says total net outflows for products hit 19 billion for the first quarter. planning to gradually reopen some stores in the u.s. but will not give out firm timelines. ceo kevin johnson says the plan will be similar to china restarting operations on a store

by store basis as the impact of the coronavirus decreases in various locations. starbucks says guidance from health officials and the willingness of staff to return will also be considered. health care shares have remained resilience through the pandemic. many analysts are positive about the long-term outlook for the sector but some born of margin pressure as patients put off elective procedures. joining us now is senior research analyst nina. great to have you with us. can you give us the immediate impact of this covid-19 out break worldwide for the health care sector? of immediates impact, there has definitely been, as we are all aware, delays or cancellations of elective procedures, and so, that has caused a negative impact for a lot of companies involved with things like orthopedic surgery, cardiac surgery, even cancer therapy has

been delayed in some cases. however, it's also -- the pandemic has essentially cast a floodlight on other areas in the near term such as medicine and remote monitoring, which has seen an escalation in utilization over the last quarter. shery: how important is diversification for these companies in the health-care industry when it comes to being able to weather this pandemic? nina: you definitely want to see some diversification. first of all, a lot of the health care market is oversold. health care has remained fairly resilient throughout this pandemic. quarter, the health care technology innovation index was down only 11% versus the global equities market, which was down 21%, so we have seen some stability here but we have also in recent weeks seen a comeback as some of the news coming out about recovery with the pandemic has been

thanps a faster rate originally expected, so now, they might be starting to open up some allete of procedures around the world. intuitive surgical just reported that although in their elective procedure -- their surgical procedure volume was down in china 90% in the wake of the outbreak, it has already been recovering slowly, and that is up to 70% of what it was before, a fairly optimistic lights on the rest of the health-care industry in terms of recovery rates and the reason why you want to be diversified is because it is really difficult to take single stock ideas right now. our recommendation is you want to look at an index that includes a lot of different health care stocks ranging from telemedicine, precision medicine, robotics, and that way, you have got a lot of coverage and you are investing in a long-term growth opportunity in innovation. intrigued inyou be

terms of taking a position in any of the therapeutics or vaccine related coronavirus related plays at all? nina: absolutely. also, these companies have been innovating at record pace to try to put together a vaccine. this company has within 45 days got in its vaccine into human -- gotten its vaccine into human trials. it usually takes years before that can happen. they are using a brand-new technology called mrna which is essentially like if you think of a computer and you want to download antivirus software, madera technology is giving technologies to a human on how to combat a virus, so if this works for coronavirus, it makes the case for other mrna

technology across the board. his company has another clinical trial that is ongoing and they are expected to have data come out in q3. there is a lot of new innovation the news of the coronavirus is overshadowing. haidi: how do you pick the names you like in that space? it is very crowded. nina: it is definitely crowded. what we do is fundamental we use a and proprietary group of segmentation. innovatione happening over the next five to 10 years in health care? robotics, precision medicine to enomics, this is where disruption is happening. of all the companies in those various areas, we have looked at

the technology leaders and the market leaders across the board and we basically picked the number one or the number two from all of these spaces, and through this fundamental research, we compiled a list of about 85 companies that all trade under this health care technology and innovation index in it is available on etf's the new york and london stock exchanges. thank you so much for , seniorus, nina deka research analyst. coming up next, the coronavirus is taking a huge toll on the restaurant industry. with services shut across most countries, we take a look at what they can do to survive. our guest joins us. this is bloomberg. ♪

shery: morgan stanley's ceo james gorman says the bank is focusing on servicing its clients and keeping itself financially stable as it weathers the coronavirus crisis. he also told bloomberg television about his own experience with covid-19. james: i am doing great, thank you. i am completely recovered, and to be perfectly clear, i had the virus, but i was one of the lucky ones. i was not hospitalized. my lungs did not get infected,

which was a real blessing, and you know, while it is unpleasant, it is certainly in those conditions, it is manageable. my heart goes out to the folks that are not that fortunate or who had underlying health issues in the very elderly who have really struggled and tragically passed away. i mean, it is a curse and i just wish everybody well who gets it and wish them to stay hydrated, stay rested, and wish them the best. >> i second those wishes. ray dalio told me yesterday that this is much worse than the 2008 financial crisis. what kinds of base case assumptions are you making at for the recession and the recovery? james: you know, i am trying to think. impact of the gdp decline is much worse, but it is so specific, and it is built around the virus.

what kind of world will we have when we have immunity from it, when we have the right testing? there's so many unknowns now. back in 2008, it was a fundamental collapse of the whole financial system, and had it not been for, you know, had the system not been rescued, who knows what long-term damage multi-decade might have been to the economy? are truly tragic situations. from our perspective and running a company, there's a few things you have to focus on. number one, we have millions of clients trading trillions of dollars all over the world. our plant has to work. we have to be able to facilitate doing that so that they can manage their businesses. they have to have the ability to manage their own liquidity and funding and capital needs, and we play a critical role in that. the number one equities player in the world, one of the largest wealth managers in the world, one of the largest capital market businesses, etc.. 90% of ourwith

employees at home, we have had almost no issues from our plant, and that is just a remarkable testament to the teams. the second thing is we voluntarily cut back on our buyback to zero. we thought it was best to preserve our capital to support our clients in need who are obviously doing everything for our communities for organizations that are large and who have resources should be doing. the third thing is to make sure our teams are properly coordinated given the remote isolation everybody is going, and we have spent an enormous amount of time communicating with them, setting up plans. what would it be like to bring people back to work? starting to think about what the future might look like. as -- youot as bad clearly do not think it will be as bad for the banking industry as the 2008 financial crisis was.

what about the broader economy? 5 million people filed for first benefits inyment excess of 22 million since this began. how do you found them or even model the kinds of dislocation unemployment on that scale is going to produce? james: the shock to the global economic system is something we have not seen since the great depression. as you point out, it is far more dramatic than what occurred during the financial crisis, and in addition, we had this massive health crisis, which is working at way around the world with times devastating consequences. you cannot model this. i mean, what you have got to do is preserve your capital, make sure you are well positioned to deal with the risks, understand the risks you are taking on as a business, and manage your way through that in a way where the whole team is working together. we have daily operating committee calls, risk committee calls constantly. the whole team is organized around how do we ensure that we are doing our job for our client and that morgan stanley remains

stable during a period of incredible dislocation? haidi: that was morgan stanley's ceo, james gorman, speaking to erik schatzker. the food and beverage industry has been one of the hardest hit by the coronavirus with restaurants and cafes all over the world limited to take-out or delivery. the national restaurant association recently estimated, $225 billion in terms of declines during the next three months, prompting the loss of between 5 million to 7 million jobs. with us now to discuss what can be done is the ceo of the global franchising company with restaurants around the world. thank you so much for joining us. i don't know if you were listening to that previous interview with james gorman, but just going through some of the extraordinary and seriously -- extraordinarily grim numbers when it comes to jobless claims in the u.s., we know it is the same picture around the world. what has been the impact that you have seen across your

brands, and how have you tried to manage your way or i suppose just tread water until the other side of this pandemic is seen? >> thanks for having me. know, it affects everyone in the restaurant industry around the world. it is different by category of restaurant. fast casual restaurants have one type of effect and it is a different effect on a sit down or casual dining restaurant or fine dining restaurant. we franchise restaurants around the world with eight different brands. we see different things going on in those restaurants. for example, our burger restaurants and chicken restaurants, you know, reduction in sales. a huge uplift in delivery him to go orders. they may the off by 49% here casual dining may be a 50% or six percent but our steakhouses are getting killed. 95% of them are closed because people are not able to go to them. differentu see

consequences, and the reality is we have to get the world opened ourgain and we have to -- franchise partners here. our job is to coach them and help them get through this. a second.t hold on talking about job cuts, we are now getting breaking lines. itsgerald shrinking workforce, breaking away from firms in wall street that have vowed not to lay off employees, and now, bloomberg has learned that the private financial services firm plans to cut hundreds of jobs across divisions. this according to people with knowledge of the matter. this would make the reduction the deepest to emerge among wall street's major firms since the ofbreak in the u.s. coronavirus. again, they are about to cut hundreds of jobs, breaking from other wall street banks that have said they will not be laying off employees.

the headve heard about of the company saying he is worried about the hit from the extended economic downturn. right, let's turn back to the ceo. tell us a little bit about your industry. of course, restaurants, we have seen this coronavirus outbreak really hit all sectors of the u.s. economy, including supply chains. are you worried at all about the food supply chains as we see these infections now spreading? andy: it is not about safety in the supply chain. it is just about actual supply being available. viruses travel in food so even when you order to grow food, it is not that the virus is in the food. the problem is that the hospitality industry has to plan for how much food they need in their restaurants on a regular basis so it does not spoil, because not all of it is frozen and things that, so you end up

today with a lot of restaurants that have excess capacity from orders they placed some time ago and they are having to adjust for that and then it is very hard for them to plan going forward because it is not like you can call up and get everything the next day. it takes a wild to run through the supply chain to get to the restaurant yet you do not know when you are going to open. andy, how much has the rounding up so many slights -- grounding of so many slights and plans around the world affected logistics as well? in australia, we have the situation where sue food demand from china is picking up again with the economy reopening and restaurants reopening, but the australian government is having to help charter flights to get lobster into china because the logistics chain has been that disrupted by the grounding of transport. is -- wehink that that see that everywhere. we are going to see more limited menus. the nearvailable in

term. i think you will see restaurants and hotels and airlines, might go out on others for certain categories of foods that might not be accessible and that is just going to be the new -- it will be the new culture that we experience, and you know, look, consumer trends are going to change a little bit here. people will be more cautious. they are going to want to see some sort of protective equipment that is in place, whether it is masks or gloves or other things, more often. we are going to see all those things and that is going to affect everything for a wild area it will not go back to 100% overnight. shery: finally, just tell us how much support are you getting from different governments implementing different fiscal packages? company --public where we are based in los angeles, it has offered certain loan programs and things to us on the we have not seen anything actually come through but we advise all of our franchisees

around the world to take advantage of the programs in their country, city, or county that might be available to them to help them right now with payroll or rent and also to negotiate with our food suppliers and the landlords to timethe franchisees more to pay their rent and for the have anpliers to extended term for franchisees to pay their food supply bills. , thankandy wiederhorn you very much. forre seeing broad upside u.s. futures as well as nikkei futures. we are seeing key restocks gaining for a fourth consecutive session, highest level in over a month. sydney futures pointing to a higher open, 1.4%. nappanee futures are also higher for japanese yen, which has been losing ground against the u.s. dollar this week. kospi futures marginally higher by .2%, and this of course as we

continue to see more efforts here in the u.s. to reopen the economy. plenty more on daybreak asia ahead. this is bloomberg. ♪ you doing okay?

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faster speed, coverage, and free advanced security at an unbeatable value with xfinity xfi. can your internet do that? >> good evening from global g's headquarters in new york. justmajor markets have opened for trade. asia."e to "day break our top story, president trump sees america headed back to work in the next month. futures are being lifted by the news as well. he boeing is ready to resume production. oil had a volatile week to

nd at its lowest for two decades, increasingly weak demand. considering even deeper cuts. the imf plans to open unding to the world's poorest nations but the u.s. treasury isn't happy saying special drawing rights is way to go. >> let's get a quick check on the markets. marks eeing japanese coming online. the japanese yen holding at about 107 level. of course, we've seen the in the yen weaken last two sessions against the u.s. dollar, but the yen could actually climb towards a hundred against the dollar in the next few months. f course, we have the safe haven bids as we continue to see the coronavirus outbreak around the world. japan expanding its state of emergency. look. south korea coming online. we've seen march numbers ent rebounding at 3.8%.

drop for the a month of february, as we continue to see the negative retail and hospitality employment because of the coronavirus outbreak. now, we're seeing the 2% and korean in ing, after declines the market yesterday on risk hiding.iment >> yeah. in fact, looking at what we're seeing in this part of terms of in buoyancy across other major markets that we're seeing on the back of the u.s. rally, the o expectations that perhaps we'll see a gradual reopening in that economy. have seen a bit more upside than earlier expected y futures when it comes to trading. stopping those two days with losses just about .3 of 1%, in particular, rio, ince production numbers certainly citing some

uncertainty and weakness across the es rest of the world and also that continuing recover in well. as the dollar falling to that one-week low. brought demand for the overnight with a surprising increase when it comes to plopped numbers out quick ralia and a check on new zealand where e're continuing to see an upside. as of kiwi stocks just we expected. they will be making a potential reopening of the economy as soon as monday. for more markets let's go to our asian editor. gottfried, it's good to see you. asia following the lead when u.s. bounce he overnight. risk-assets-futures chillinging high. the question is how is this move given that we've seen this president trump versus right?vernors, >> yes, but there is -- to

some extent, in fact, i investors are taking that t in the idea potential -- the potential is still there but the move towards l is offering the chance for a reopening. i think it's fascinating, that even with new york staying shut until may extended, we still have this strong risk on move. think there is a general feeling that there is good virus.verall on the whether that's accurate or not, the perception that things are slowing down. there was also the strong on the back of the partial pitch for gilead's showing supposedly strong results. o investors are very quick to believe a better future than they believed, say, a month ago, when markets were completely collapsing. >> but of course, we're

of ing for eco-data out china and it could be really bad. to be very ly bad. t's also questionable whether or not investors will pay too much attention to bad numbers. the chineseter, numbers recently have been surprisingly on the upside. upside by on the theg not as dreadful as immediate expectations have been, and those median xpectations, it's also harder to trust those than it usually is because the range of forecasts is so huge. i think the chinese gdp plus from sort of five to minus 20 percent or something like that. then means it's very easy to get quite a large it were, either up or down. >> the biggest thing is,

again, investors realize hat the hit from the coronavirus is extreme, and, is, know, question now what's going to come in the future? at the moment, that's very are ar, so people tending to focus on the things that can offer some like, y potentially, if you want to believe that good drug trials are a sign, or if you want to believe that trump and the are agreeing on plans to open up means there will be a more rapid return normal hing like than had been expected. > governor reynolds, our asia editor. thank you very much for that. you can follow more on this and all the day's trading on markets live blog on bloomberg. you can get a market rundown in one click and there is commentary and analysis from bloomberg's experts. you can find out what's affecting your investments now.

let's get to the headlines. president trump has outlined the u.s. estart economy with some states and employers being able to restrictions within the next four weeks he white house has been eager to lift curbs and return to work as five for on people register unemployment aid. the u.s. currently has more han 650,000 virus infections and at least 31,000 deaths. president trump: the approach outlines three our s in restoring economic life. we're not opening all at one careful step at a time. >> expanding its initial of emergency to cover the whole country amid criticism. too riginal order was late and too weak. the prime minister is idening the declaration if most and six others

deemed to be at risk from the coronavirus. it left people vulnerable and some launched their own initiative. the european central bank reiterated the well foreign phrase we'll do everything necessary to cope with the coronavirus which says is the worst crisis facing the single market in decades. more nk also said international cooperation is needed. makersne said policy committed to helping the uro area and are ready to increase the asset purchase and for as long as required. >> let's take a look at how of the major -- companies that we're atching in the australian session, seeing a surge outperforming the broader market. 2.3%. seeing a jump of the biggest gain in over two weeks. this as the production numbers are more or less in line with estimates. still seeing weakness when comes to demand from the chinese recovery and demand

across the rest of the world as well. also, reporting a cut, an issue of a stronger dollar as well. it e is some certainty, seems, as well as some copper, on the creating a bit of buoyancy in the stocks there. ahead, china could see double digit declines in its gdp.t first quarter we preview those numbers next. central retail corporation closed 90% ily of its stores. speaking to the company's president as to whether we'll see a to consumerange behavior after the pandemic. this is bloomberg.

>> we've seen signs of recovery but it's not back

as usual.s it was also what's happening in the rest of the world. > the second quarter is trying to stabilize but out of the woods yet. >> china will be the first out of the woods. a double whammy. can't expect the same china.out of >> china's first quarter gdp numbers are expected to slow historic slump, 6% year-over-year. it's great to have you with us. so we've been seeing of double digit contractions for the chinese in the first quarter. your prediction is a bit less. to 4%.3% only year-on-year.

why? you.hank so i think china will show year-on-year contraction based on what they had in january and sudden halt of most economic activity. with the ks outbreak in wuhan. relatively are more optimistic, at 3% to 4% contraction. i see a cause mashed improvement in march activity compared to the and february period. pmi that acturing we've seen did surprise us. he manufacturing sector might have come back to work at a faster pace than we had anticipated. >> i think a second wave of infection has been worse expected and china is facing a lot of pressure as evolvedth shock has from just a temporary supply

more broad base supply base shock. he slowing demand is a bigger threat right now with rising risks for us entering into a global recession. exactly, because we see pressure on the global economy. it do china s if it has its production and manufacturing running if no global demand. how big of a risk is this? >> you're right. so global demand slowing is major risk that china is facing. i think that's why they have also acknowledged that we're facing a more prolonged impact. i think our hope is that step up with more aggressive stimulus especially on the fiscal side. so with a combination of easing poll six and pent up emand when it comes to the recovery phase we think that china's domestic demand will with the , infrastructure sector,

manufacturing sector, and the consumer sector. short term i think the manufacturing sector -- moremanaged to recover swiftly with production recovery even though some like labor em shortage or sectors slowing i think recovery in production is helpful to have a help us stronger work force later in phase.overy >> does it matter for the obustness or the pattern, ex-dogenous? > given the combination of eso and in shock, they will probably respond with a on ination of policies the demand supply and the

supply side. >> in terms of the structural reform side of hings, does this present opportunities or challenges for policymakers, because clearly some of the policy like de s leveraging are now put on back burner? >> yes. i would think this is a good opportunity for china to more orward aggressively. i think china did because they continue to open up the financial sector with more up essive opening policies and easing on the front as well. trades but with the opening up policies it presents more opportunity firms or firms which previously did not have rapid access to credit easing eferential policies. so i think with this shock, china ably see accelerating its pace in terms of structural reform. inside, we do

think there might be more accumulation coming hrough and i think they acknowledge that so it's necessary to -- the economy get back up and but i think -- [inaudible] and lated sectors higher rate sectors. >> we still don't have a ate for the national people's of congress. will we get a gdp growth year?t this >> yes. i do think that we do have a or we will have one but it might be a little it more flexible compared to the previous years given what we have right now. think national people's congress might be held when stabilized. i think the authorities might be lowering its gdp orecast to a realistic target of around 3% for this

year. so that they could achieve targets like employment such as nd targets aviation.d >> all right. thank you so much for us.ing china economist, going into, day when it big comes to the china gdp numbers. we're expecting a pretty there but going into that. when it comes to trading on this final trading day of particularly taking a look at new ealand, we've seen four straight days of gains for optimism s, amid that one of the strictest lockdowns around the world coming to an end. expected minister to make that decision as soon as monday. here in recalls always we're upside as some well. out its putting output production numbers

and taking a look around the rest of the region, not so uch when it comes to in ctations of a drop japan. >> extendings gains of almost 2%. watching tech stocks after another strong session for tech in the u.s. guidelines, new president trump's says america's reopening will happen in stages. president trump: our approach outlines three phases in restoring our life.ic we're not opening all at once. one careful step at a time. time. >> steven engel joins us now. we see thisual, kind of potential disparity or tension between what the wants, what governors of individual states want. what is the president it seen asand is being too soon given the

levels that we're seeing despite the president saying peakwe're now past the of new infections in the u.s.? > one thing that was interesting was that deborah irx actually said the states will have the leeway to decide how quickly to proceed. it should be done perhaps in a republic, right? trump, of course, earlier that he claimed had total authority to order states to reopen the u.s. as omy but it looks though, he said they are going to go step by step, onald trump was more measured in his comments today. here's basically their plan. outinted that 29 states of, of course, the 50 that are in the u.s. are in the for opening relatively soon. the states would need to document a downward cases as in new well as illnesses for two weeks before beginning that to e phase process, return to well, near normal work and social life. then another couple of weeks have to pass, and see

ontinuing decline in cases before moving from phase-to-phase. a rebound in cases obviously reimposing of some of all restrictions. again, it's going to be up states. schools, daycares, and bars shouldn't reopen before phase two but restaurants, theaters and sports venues could reopen in the first phase. donald trump is saying sporting events, they are going to have to be roduced for television audiences. no spectators. >> at least the u.s. is talking about reopening the economy, right? because japan is actually regions. down more >> yeah, that's right. japan has seen a surge in cases, and also the president there has been highly criticized for perhaps going a little too in some of the measures. granted, he was either trying to save the olympics, been have now postponed for a year, or honestly felt that the contained d been to various hot spots, but

we've seen tokyo and other in es have a surge cases, and japan has 8,600 new cases. now 178 death. he's been under pressure and his poll numbers have so they are going to extend the state of emergency that's currently to a nationwide state of emergency that will extend through the golden holiday until may 6. our chief ngel, north asia correspondent there. airbus says the pandemic may force a tough call on permanent job cuts. the c.e.o. spoke exclusively to bloomberg. >> we have to face an nprecedented situation and we're facing that reality now. the situation of the airlines, our customers, is one.y difficult have planes on the ground. unprecedented on a global adapt.nd we have to challenges as well on the

supply chain but combining points to data basically move forward, and last week was to define a new prediction ate, planning by plane to give the right direction to our partners to our to the s, and adapt change in demands. our customers are in a new situation. to that newdapt situation, too. >> what are you hearing from your customers? over in the united states, a little bit earlier n, saying that demand for travel is essentially zero. from re you hearing other carriers? well, there is a very large diversity of the situation in the world. the situation is not the country, ry by region by region and airline by airline so what we're speak ctually is to proactively to our customers individually, who find to tions one by one,

their concerns, and actually, situation today is, you mentioned the situation of united. situation imilar with other airlines. but it's a very -- it's a very complex situation. of work for all find the dapt and road forward. there is still a lot of uncertainty on when airlines ill be back to service and when we'll be back to normal and what will be the shape. working on we're at the moment. >> what do you think of the tate's aid that's been given to certain carriers? think and i think the priority is rescuing the airlines. first hit by this pandemic. no passengers, as you say, very little passengers flying, and the priority, in y perspective, is to support the airlines going for this very difficult situation. supporting the airline is best way to support the world's supply complain

so we're looking very much t our customers, the airlines, but as well, rest to keep pply chain it alive during a period of hallenges so we can keep moving forward and recovering when times will be better. >> it looks like boeing, competitor, is going to ask washington at some point state aid.rm of you have similar plans? airbus to ask for assistance? >> we're asking for support, as we said before, to the and suppliers. e're asking for support in different forms but not in governments. >> that's good to hear. see in terms of how you the story developing how much visibility do you have at the moment? i would imagine very little. bank, it estment was out with a report over

the last couple of days that delivery rcraft down 40% to 50% over the next three to four years, years. five is that what the future looks like to you or do you think that the shock will be shorter and sharper? > well, i don't have a crystal ball and we're all trying to assess, as i said, debt and the duration of the crisis. we think there will be a between ference ide bodies and the narrow bodies. the later will probably start up much faster. year issee for this probably something like minus 40%. dynamic.l very in e seen the recovery terms of passengers flying. in china already. so china is very interesting it's a place where

we can try to assess what will happen for the rest of i think the figure of 40% to 50%, over four to five years, pessimistic. >> that was the airbus there. let's get a quick check on the latest business headlines. boeing shares took off that resume plane making near seattle next week. boeing also hopes to restart production of its 737 max. the coronavirus means the company will institute a with shift patent face masks and physical distancing mandatory. australia's top airlines given more than a hundred million u.s. dollars to subsidize internal coronavirus e sav advantages their schedules. single day a

service. 60%.ta has cut by virgin facing a debt of $5 billion but the government till resisting calls for bail-out. lots more to come. this is bloomberg. because you can't get to the theater, we're bringing

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>> breaking news out of singapore. we're getting nonoil for tic export numbers singapore. a surprising growth of 12.8% for the month of march, when the expectation was for double digit contraction. of course, as we continue to see the export ressure easing on singapore, and even the growth of 12.8% month over month, growth of 17.6% year-on-year for the month of march. despite the fact that we have seen the whole asian egion for the month of march reel from the coronavirus pandemic.

when it comes to electronic year-on-year also improving, seeing a gain of for the month of march. the expectation looked for 15%, well, of it's been a surge of 5.8% growth from the previous as well. again, very surprising umbers out of singapore showing the resilience of he singaporean export industry. growth of almost 13% month on month. year-on-year, when the expectation was for contraction. continue to see the region reeling from the coronavirus outbreak. ingapore, in fact, reporting its highest daily for a e of cases second day. >> let's take a look at how trading.re we're seeing plenty of positive sentiment across asia.ard in

jumping.i this with up employment numbers out of south korea this morning showing a jump rate at 3.8%. the weakness in retail, hospitality and employment. being led higher by real estate industrials. we've seen australian unexpectedlyso adding jobs in australia. jumping res also 2.9% as we heard from president trump about his reopen the u.s. economy. haidi? >> driving the optimism that we're seeing. up to et you caught date with the first headlines for this hour. >> the fundamentals of the economy remain sound and aven't changed despite the impact of the coronavirus.

the governor held a video growth is that still resilient and the economy shows positive trends. he added that manufacturing consumer demand is being estored at a fast pace after the lockdown. the european union says it to reshape its budget focus on the virus and funnel much of its spending immediate future. said sion president the seven-year plan in january will be the mother recovery, immensely different than what was only imagined. needs tothe budget e front loaded to empower growth. >> asking -- the government ries to reach to a sustainable path. investors are being urged to take a drear moratorium on 52% cut on the interest they ever. they plan to restructure $70 billion in

overseas debt to support the economy amid the coronavirus disruption. the world's top oil producers say they are open cuts n further output beyond what was agreed in this week's opec plus deal. and russia issued a joint statement saying they are watching the market closely and will take deemed necessary. crude has plunged more than 0% since sunday's announcement that producers slash production by almost 10 million barrels per day. the imf still doesn't have consensus on how to allocate its special drawings rights. owever, it says it's looking at moving existing rights from developing economies to advanced ones. we spoke to bloomberg about ow to help the world's poorest nations. >> emergency financing. very decisive actions on expanding what we have, like the creation of a

liquidity line, and in that we're mobilizing financing for our low income members. and what impressed me tremendously today is that, making a call for $17 illion to increase concessional financing. i made this call yesterday. oday we got 70% of this funding secured. to when it comes to -- the consensus, he's not there. we heard from the membership and encouragement, again in the of do what you can more t's too look sdr's,y into existing advanced economies have them, don't need them. developing countries need how and the question is to create the bridge so we an move resources, more liquidity, as support to

emerging markets. we accept up our work, we that the cognize problem is gigantic. the resources we have to are significant, and we need to move with what we very, very rapidly. >> so far, at least by the have april you will helped 50 countriesk. more than 100 have asked for assistance. there is a hierarchy. what do you need from private creditors, for in order to do more for those countries that you able to et been help? >> what we achieved during week is quite incredible. bilateral cial to agree on -- we have -- china, india, all

to provide her, breathing space to our members. and in that call, we also turned to the private and we're asking and, in step up terms of the official bilateral creditors, to also ease that burden on low income countries. we need to recognize this is a highly uncertain environment. e need to carefully watch how the crisis evolves. as projections are dire, they are, but epidemiologists are telling s it may get even worse, and therefore, as we look picture, we have to bring everybody on-board. we need to make sure that in this together, ecause liquidity problems certainly come to solvency

problems, is a much bigger problem. prevent that from happening. >> what if you could wave a wand, what would you wish for in terms of the expanddo you need to the amount of money that you have at your disposal, and can you count on for that? that i have ull confidence, for the next month when we're stabilize the emerging market developing economies that are hit by we do have financial strength that is sufficient to do our job. me remind everybody, before the global financial $250 , the imf had billion lending capacity. more.e have four times i'm also convinced that the come ship would

through should the onditions become more adverse, and we've seen that we can find solutions to common problems effectively. we did it in the past. we had done some of it concessional financing. if the needs are there, we'll do it again. >> that was the director. ell what the imf sees is straightforward way for wealthier countries to help deal come countries with the coronavirus. the u.s. e on why treasury secretary is really pushing back against the use sdr's to help out the poorest countries. mnuchin says this is the wrong way to go. it pretty clear even before kristina spoke,

he spoke about the same imfe back in the spring eetings, physically, in washington, d.c., how do you view the special drawing rights. they are like a currency. it's something about the imp puts hat the together, poorer countries could use it to help them through the crisis that's hit them in so many what mnuchin says, if it's done that way, 70% of the sdr's from nations, they are the ones who would actually get them under this imf program. just 3% would go to the nations. director george -- has said, well, you know, it's a good dea for the wealthier nations, to transfer them over to the poor, but nuchin says why don't they give their sdr's to a couple f institutions set up, run by the imf. one of them would be the

relief trust. another is the property growth trust. reuters saying today that would get ran billions of dollars of sdr's with no strings attached. not an particular, is country at the top of the u.s. list. imf has made it clear that emerging market countries should do everything they can to help aggressive ith monetary policy moves, so is the philippine central bank just that? >> i think so i would an a ly give them plus, a great move overnight a hough i have to give great shout out to the reporter in our bureau on 12, after she spoke. the head of the bsp saying to do re ready something, cut their rate, cut ate that they did, the key rate by 50 basis

points. we have a chart to show you never ou can see how been cutting their key rate. they also cut their rate.ight lending their deposit rate by 50 basis points. you can see, on the top the reserve requirement ratio does perhaps have room to come down. that's what people will now but that key rate is down to its lowest since 2016. fighting the coronavirus. the philippines have been in lockdown since the middle of march. they are taking steps and moving aggressively and they are joining other emerging arket countries doing the thing.ind of >> well, coming up next, take a look at future. ow the president of thailand -- speaks exclusively to daybreak asia and the strategy outlook with the majority of their stores now closed. ahead for the

asian consumer. this is bloomberg.

♪ > this is a shopping unit of the group. with the coronavirus outbreak, the company has 90% of its stores amid the country's state of emergency.

bangkok now and bring in the president now.nte who joins us great to have you on the show. first, give us an indication of how badly the closures have affected your business outlook? being business -- is we have theause lockdown. food. in thailand and in italy, he stores continue to be open and do very well. the super markets in markets and other in vietnam. flows down the lin line. >> continue, talk to me the online business and how successful that's e-commerce.

> let me say despite the closures, we continue to in underluxury. it would be the year with the highest number it ew openings when comes to vietnam or and, another 74, about -- [inaudible] this part of the business is dramaticing a real acceleration, thailand. moved from hahn percent growth year-on-year until a month ago. a hundred percent growth onth-to-month, in the last 340, and continue in the weeks, pretty much. >> so does the outbreak

affects your investment whether locally or abroad? >> they are unchanged. comes to the highest beyond that, virus, after the here will be more conditions -- [inaudible] asia and we look forward to this. >> what about your business of the for the rest year, will you be revising that? outlook, it ess lot for -- d a how long things will be closed. f you look a little bit weeks, the next few we'll look at business options in the shopping

behavior. shopping behavior has become than ysfunctional ever. -- the distance, for first time in history -- [inaudible] it's the first time. t's -- it's the first time online, for shopping. big news for online is delays in been delivery. they face a challenge of ecreating the emotional component of shopping and of

at ining -- to provide the same time the convenience of online and mediacy, and the beautification of the stores. , so much toough cope with. challenge of a is the permanent effects of consumer behavior and how hat's changed after the pandemic, because with the gradual reopening with china of people ot still socially distancing, still isolating, being too to go out even after the lockdown is lifted. is that going to be a ways n that in some we'll see permanent shifts in consumer behavior away bricks and mortar stores even more so than before already saw the outbreak? -- i think ay it's going to be less

eople, for many, many months, if not years. which doesn't mean that the are gone or are going to be losing even more in because, as i said, now customers are a little bit regretting the and the mediacy and participation in the because they have to wait a week, even after they order online. going to be long. i don't think it will be permanent. nd now, combining the stores, now he -- [inaudible] future, because of end insis, this will the long term. very much for joining us. asiae lockdowns around

have also stopped the movement -- relocations are at a standstill. be talking to chairman and founder. this is bloomberg.

♪ >> a quick check on the business headlines. uber has put its official guidance for the year with ended by the coronavirus virus.

it will write down more than $2 billion in investments. it plans to give us another pdate on may 7 and it's been caused by the effect of the outbreak on the value of minor investments. >> it reviewed contract revenue up to a hundred to assist lars drivers. plans to let huawei help uk 5-g's network is under threat from opposition. had hoped to win over rebels over a vote in parliament on huawei's nvolvement but we're now being told that positions are hardening on the tory benches making it more difficult to have passed.ion the u.s. is pressing its allies to stop huawei being 5-g rollout.ny louie baton says a luxury may burned way in china after the coronavirus trigger add plunge in the quarter. comfortable sales fell 17%, pandemic closed --

areas around the world. numbers are up around 50% in three weeks. year ago. sales are positive in china. ahead to the open of the rest of asia. we're watching chinese very closely. david joining us now. david, we're seeing positive entiment across the board in asia so far. for we have to brace what we can expect in terms of chinese numbers, eco-data out today? it's happening today. happening, right? >> >> let me get it out there. rare times we can look at the chart. it shows you the stock market and the sxle actually up together since the late 1990s. that brings you to the uestion, now that we're probably going to see much growth way below -- does the stock market will come down.

it takes me to the point i want to make. it you get gdp number will make the headlines, it will be dmraumt particular can china ere is actually achieve its full assuming h target it's the same if they don't embark on a massive plan?ate us will that's the gdp figure. apart from that, it's about activity indicators. have circumstances improved? retail and car sales, births way, actually showing for the first time since the outbreak began. of them at ne least, the data gives stop s a reason to tilting too defensive in the stock market which has been the case for the past eight weeks. >> that could be signaling some good times ahead when it comes to equities, so that the correlation you're looking at?

>> the usual one that we u.s., for the example, there is so much liquidity in the market, i'll make this quick, that end rates in china are so low that yield directive deeper which obviously bodes well for the economic outlook and hopefully that translates in the t we see stock market. anyway, a big day coming up and we'll see what happens. it.e bracing for back to you guys. >> david in hong kong, thank you very much for that. awaiting china's first quarter gdp figures. stay with us for an analysis, morgan stanley and ing bank. it from "day break asia." ahead to the trade.of bloomberg markets china open is almost upon us. we're counting down to the

e-- f of the chinaeck china eco-data. this is bloomberg.

>> it is 9:00 envisioning very will come to -- in beijing. welcome to bloomberg markets. rishaad: we are counting you down to the open of trading, the chinese mainland as well as in hong kong. the asia-pacific stocks are rising, president trump seeing americans heading back to work next month. there are signs of progress in the fight against the coronavirus. jonathan: oil may