>> good evening we are counting down to asia's major market open. >> welcome to daybreak australia. these are your top stories. u.s. stocks close lower after report that the leading corner virus drug performed -- coronavirus drug performed poorly in tests.

oil maintains a slow recovery after a wild week. traders are still concerned about the swelling global glut. new zealand plans to lift its lockdown. we are joined by the finance minister. let's take a look at how markets are trading at the moment. we are seeing u.s. futures kicking of trading to the downside. lowertocks closed mostly after report that a leading antiviral drug by gilead performed poorly in its first clinical test. the dow did gain to tense of 1%. we have -- 2/10 of 1%. this is how oil prices are looking right now. we are seeing a rebound for wti at the moment, 1.4% for june futures. oil already plummeted about 70% so far this year.

haidi: a press conference by president trump happening right now as u.s. lawmakers are voting on a $484 billion virus rescue plan which would add new funds to help small businesses. the house adopted a proposal to create a special panel to oversee spending on the coronavirus. you are listening to vice president mike pence as he lays out some of the latest on testing. 4.9 3 million tests have already been performed. let's get the latest from our congressional government reporter. emily, let's start with stimulus plan. ,nother virus relief package 480 $4 billion and now we are hearing the house has the votes to pass this plan.

what will this mean? were two votesre that were taken today. the first vote was to start a group that will oversee the coronavirus funds. lawmakers are voting on this package. shifts.e to go in in they are going in alphabetically to make sure they do not endanger themselves by all being at the chamber at the same time. haidi: there was a bit of a hurdle when it came to this drug trial we found out overnight. we did hear from president trump that he is sounding fairly optimistic about the different types of therapeutics in the pipeline. emily: you heard president trump

sounding very optimistic about being able to use the antibodies in people who have already had coronavirus and recovered from that and being able to use that to develop something that would not necessarily be a vaccine but could people to make sure the risks involved with coronavirus are lessened. people could get cured a little faster. at this point, you are hearing -- wehe administration are not going to be out of the woods with this until we get a vaccine and that is potentially 12-18 months away. the 35,000 national guard have been deployed across the country in order to help handle pandemic. how overwhelmed our hospitals across the country and are we

pandemic. seeing some stabilization finally? emily: it depends on where in the country you are looking at. overall, you are right. the u.s. is starting to see a slow down the number of cases. that does not mean that hospital workers are off the hook. we are still seeing high death rates in some states. california had one of its highest death rates today. governor andrew cuomo from new york saying even though hospitalizations have flattened out, that is not great news. they're looking for a decline, not necessarily a plateau. we are at a stage in some states. thank you. joining us from washington. let's get to the first word headlines. global virus cases continue to rise.

world leaders are being president sohe ecb the governments have done too little to stem the virus. what they have introduced has been too late. u.s. cases rose at the slowest rate in three weeks. asthe public must understand to address our respective economies. this is not an exit. shery: japan has a bleak view of its economy saying the prospects are the worst since the financial crisis. japan says the situation is extreme is severe and worsening rapidly. factory production, corporate earnings, and jobs.

the boj will discuss unlimited government bond purchases. thisu economy slumped month as coronavirus restrictions hammered companies and jobs. an estimate of private sector in march, fared sharper than forecast and the lowest pmi reading since records began two decades ago. -- may pay for the virus lockdown. current and former by giving went policymakers say the outlook for jobs is both paren does with a quarter of the labor market -- horrendous, with a quarter of the labor market already out of work. haidi: still ahead, we have an

exclusive interview with the new zealand finance minister and we will be discussing the imminent reopening of the economy. we will be speaking to the australian agriculture minister a little bit later this hour to talk about the countries dependency on china, on food security, and the impacts of the virus on recent droughts and bushfires. let's take a look at our markets. as we head into the start of this friday session. this is what we are seeing when it comes to new zealand. stocks did relatively ok, a volatile session we saw overnight with jobless claims continuing to mount. the greatest labor market crisis we have seen since the great depression. we have seen stocks hold up

relatively well. a pretty flat session in new zealand this morning as we go into the three-day weekend. futures,omes to u.s. lower by a 10th of 1%. a bit of a rise in oil so far. just about 1.5%. much more to come, this is bloomberg. ♪

shery: u.s. stocks ended mixed after an up-and-down session. opportunity,ade according to our next guest. equity strategist at wells fargo securities and she joins us from washington. we have seen plenty of action coming from the federal reserve, the u.s. government in order to support the economy and the market.

given all of this, where are you seeing the opportunities? >> if you are looking to put some risk on, we are recommending value stocks. they trade below book value and they tend to be higher risk, lower momentum. when they don't have access to capital, they are cheap for a reason. currently, we think it is an opportunity. the stage is set for this performance similar to what we saw during the financial crisis because like you said, fed action is providing massive credit liquidity and helping compress credits weds. -- credit spreads. it helps multiple expansion and especially as thecompress credis decay, we should see volatility decay, a further boost for the valuing. shery: when you have the fed backstopping high-yield credit,

what factors would you look at? anna: we were overweight the biotech space and pharma space. year to date, biotech has outperformed the market by 20%. .harma has outperformed by 13% specifically with pharma, it behaved much like a low volatility product. versus on the other hand, utilities, a traditionally more defensive low volatility product, trouble because of its higher credit risk and higher leverage. with biotech and pharma, these were value opportunities that we thought -- traded at a discount and were a hard-sell. we are looking for more.

haidi: we are getting breaking news. the u.s. house has clear that $484 billion package for business, hospitals, and testing measures. the virus relief package now goes to the president for his signature. that $484 billion package -- given that it does address extraordinary health precautions, as well as assisting hospitals with ppe and the like. let me get back to how markets -- is there a sense that we are support withtisan the management of this crisis? is that something that is positive for markets? to support the health care measures will go through without the political bickering that we have seen.

support, atisan united effort to fight the coronavirus is very much positive news for the market. addition tollion the stemless package is part of a comprehensive monetary and fiscal effort to cushion the economic recession we are going through. with that, we are in earnings season right now and you should see as companies are reporting, with q1, this was before much of the coronavirus escalated. in q1ll see the impact but morris to come in the next couple of quarters -- more is to come in the next couple of quarters. haidi: do you think pricing reflects the economic

fundamentals? we have seen a sharp decoupling and yet you have lofty valuations in a number of markets creeping back into bull territory. anna: we think about valuations, what do we think earnings will be for this year? that has been a difficult thing. companies and investors are trying to navigate through this coronavirus uncertainty and that has made the outlook less reliable. we have seen at of the s&p 500 companies, a chunk of them, 108 companies withdraw guidance. 62 companies suspending buybacks. what we have gleaned from earnings reaction so far is that the market is favoring stocks that have been working, that have been positive reactions to earning. for high risk stocks, there has

been high reward. investors are willing to put on some risk. while it is a little murky on what exactly we will see for this year, we think the equity market is trending the way it is because of the improved outlook for equities. now towe take you president trump's press conference. he may be extending social distancing guidelines until the summer. this as anribed emerging result. is there more work to do? side, we areosol looking at higher humidity levels. we are looking at other types of disinfectants. this is -- as the scientific community, we will continue to study the virus to understand its characteristics. >> can you explain why some

hospitals -- haidi: the ecb warrants eu -- warrants eu leaders. this is bloomberg. ♪

haidi: eu leaders have agreed on what most people agreed with obvious. they still cannot decide on who pays for it and how. our policy editor has the story. eu leaders left the meeting without a plan. did they come away with anything that was constructive? kathleen: we know they just had a meeting and they met two days.

they have to come up with something constructive. angela merkel was part of this. -- backing huge stimulus. -- to fight the damage of the coronavirus. ministers must expect to pay for, you have to make the investment. gdp inne lagarde said the euro area could shrink by 15% and the risk is they did too little too late. you have the european union but it is comprised of 27 countries and you are seeing italy and spain, two of the hardest hit by the virus.

against wealthier nations in a better position, like the austria, who are not so keen to pay for the virus that hit others. the european commission going to the drawing board to look at the seven year budget. can i do something with that? -- can they do something without? shery: the boj are said to launch their own monetary -- kathleen: i spoke to one of my favorite per folio managers in tokyo today -- portfolio managers in tokyo today. about unlimited government bond buying. the problem with this, look at the balance sheet. it is 110% of japan's gdp.

you already own so many japanese government bonds. out a not gotten them very low inflation environment. the economy is expected to get worse. they are also talking about raising limits they have on temporary purchases of corporate bonds. what i think people are saying, the boj is out of ammo. it is up to the government to come up with more aggressive fiscal stimulus. that is what a lot of people in the markets and consumers are waiting to see. hays. kathleen the pandemic has upended demand for retailers across the globe. the convenience jane received three quarters of the revenue from fuel, a financial challenge when fewer people are driving. i asked the ceo how the company

is offsetting that demand. >> depending on the state, we see demands down from 30% up to 60% depending on the severity. significant impact. thankfully, the stores are a key part of our business and a key part of our community so we are seeing fairly decent tracking in our stores. >> you have walked away from australia, what factors could lead you to reconsider that? >> it is a great chain, great fit. it is not the right time. so much uncertainty in their business and our priority is to take care of our customers, to take care of our employees and

communities here in north america. shery: how are you positioning for what happens after the pandemic? the concern is that consumption patterns will fundamentally change with the ongoing social distancing measures. in goodter this period position financially speaking. we are looking at every aspect. there is a heightened need to do that, whether that be home delivery, curbside, how you can paid our stores. -- how you can pay at our stores. we think we are well-positioned to stay relevant with the customer and this reinforces our focus on making that journey with us a bit easier. away for now.ked are there other acquisitions that might make sense for you?

think the m&a market has been frothy the last couple of years. it has been part of our growth story the last several decades. we are well-positioned when opportunities do arise. we are looking in asia and europe, where we have footprints. we have breaking news at the moment. bloomberg learning from sources close to the matter saying boeing is poised to cut n787 dreamliner output by half and announced workforce reductions when it reports first-quarter earnings. the details are still being finalized. they will determine the jobs to be eliminated through layoffs and buyouts. the playmaker -- the playmaker tends to lower the outfit to a single digit rate.

let's get a check of the latest business headlines. mace is set to be selling computers powered by its own processor in the coming year. the plan is said to see apple lessen its reliance on longtime supplier intel. alibaba is tightening sales of protective equipment on its platform. only invited members will be allowed to sell ppe on alibaba.com and anyone who tries to dodge the rules will be penalties. amazon has been accused of letting people gouge prices. we are speaking to the new zealand finance minister ahead

of the country easing its lockdown. this is bloomberg. ♪

shery: kiwi stocks seeing another session of games. -- gains. stocks onseeing asia course to set a two-week gain with the asx 200 the laggard this week. the futures under pressure after the house cleared the virus relief package for trump to sign. we are seeing wti gaining ground. the spread to july has tightened on slowing oil production output. let's switch out the board to focus on new zealand, stocks and wellington edging higher but set

for the first weekly drop while the 10-year yield is lower. the benchmark would slip low 1% by quarter's end. the kiwi dollar holding above the 60 mark. we have seen it coming off of highs we saw in march. that could continue to decline as new zealand virus cases near zero and the government prepares to open the economy with more stimulus to avert a recession. of the rbnz protects the bond market but buying not ruled out, that is offsetting buys by foreigners. the trading volumes could signal more kiwi stability ahead. haidi: we are going to get thoughts on the direct monetization of new zealand debt in a moment. the country has been in one of the strictest lockdowns of the

world since march 26. there is a light at the end of the tunnel. we will partially relax on monday and allow parts of the economy to restart. we are joined by the new zealand wonderful toter, have you with us. we have been talking about how a loan and how unprecedented the approach new zealand has chosen to take in attempting to eliminate the virus, not just suppress or mitigate. i wonder if you looked at modeling and forecasting that suggested this may enable a quicker, more robust rebound, or is there the risk even if new zealand eliminates the virus, the rest of the world is still shut down, so the economic woes will continue? >> thank you for having me. the approach we have taken is with the economic response is a strong public health response.

the sooner we can get it under control, the sooner the economy can come back to some sense of normality. we have had our treasury do a range of scenario cleaning around different lengths of time that the virus would be slowing economic activity. we have an alert level system in new zealand. the strictest is level four and three. we are looking at different levels. there is a variable of what is happening in the global economy and how much that will impact -- the third variable is stimulus support the government would put in. on the basis of those scenarios, it is clear if we do this job once and we do it right and get on top of the virus, we get the best chance of the economy returning to some form of growth. clearly we are dependent on the

rest of the world. there is certainly the scope of domestic activity when we do this. the biggest danger for economies around the world is the yo-yo effect of coming out of restrictions and having to put them back on again and the uncertainty and disruption they will cause the economy. we are keeping that apart, reopening parts of the economy. we will have several hundred thousand workers more back to work. we hope it will continue to keep some normality. could one option, which is being talked about a lot, opening trans-tasman trade and travel? , both australia and new zealand have done well in terms of getting on top of the virus. we still have work to do.

the two countries looking at the world have done better than most. we are some distance off of that . most of the cases we have had have come in from outside area we have had strong border restrictions in place and we expect those to stay in place. clearly we would like to work towards a time when we were -- we do reopen the borders and we have got fairly easy flow of people in any case. that is something we would like to keep working on. to make sure we have got on top of the virus, the border restrictions are going to be in place for a significant time. shery: what would that do for the rest of the economy and tourism industry? bethe tourism industry will severely affected. it is a lot of gdp in new

zealand and it has been growing strongly the last few years. so over the next few months it will look different. we are seeing some dismisses -- some businesses either freezing operations or scaling them down. it is one of the sectors we are very focused on, working with and developing our recovery. there will be a plan of involved redeployment for people who work in those sectors and support the businesses to change their focus as well. it is an example of where new zealand will need to be looking to others to pick up the slack. foode a great supplier of to the world and people still need that. we have got to look at how we might fill the gap with other areas of work around better processing and advanced manufacturing that can pick up some of the slack from tourism. but that sector will be significantly affected for the

next year or so. when it comes to helping sectors of your economy, the prime minister has been talking about all options to stimulate the economy. will direct aim is to households be included in the budget? asthe way we are seeing that a recovery budget. it will be one where we make sure our public services can remain strong. in the health sector we need to ensure our response is as robust as it can be. we are looking at different sectors of the economy for the kind of recovery packages but they need. when it comes to stimulus, timing is everything. while there are significant restrictions on the new zealand economy while there is a need to support households and businesses to get through, we need to think about when

consumers and -- perhaps are restricted shy and in what they can do it by. it is not the best time. we will look at our options for that. obviously a budget in a couple of weeks' time needs to be focused on our recovery and immediate response. haidi: government that the gdp was under 20% precrisis levels. what is the appetite to push that up? things newone of the zealand is well-positioned in terms of the recovery, the debt to gdp ratio. it is very low relative to the rest of the world. it puts us in a position. we can extend that out. the exact level we reach will be

one that will become clear when we get to the budget on the 14th of may. it would be at the very low end of the national comparisons on this. new zealand has a robust economy. higher.end this debt one of the reasons we have kept it lower is because we needed to be available for the impacts of global shorts and disasters which have been unfortunate to have. as we say in new zealand, we do it for a rainy day, and it is pouring outside. we are now in a position to use it. we will be careful but as most countries around the world have done, we have put in substantial support package is already and there will be more to come -- packages already and there will be more to come. haidi: we have crunched the numbers here. earning is on track to

by of new zealand's debt next year. i am wondering whether this is , thetable at this stage governor seems to be open to talking about it, but what are your positions on that and your assumptions as for what that means for government spending, inflation, kiwi asset prices? >> i think at the moment the bond markets are continuing to function and operate well in new zealand. clearly the reserve bank is involved in the secondary market. debt is continuing to operate. liquidity levels are good. for now the approach we are .aking is correct and right around the world we have seen the more direct involvement of central banks and bond

purchasing and it is suitable at the time. what is unclear is what people used to call monetary policy is no front and center in most countries. with a dangerous game approaches -- these approaches but we are comfortable where we are. where it leads in terms of inflation and overall asset predict at this time. we have a good working relationship with our central clearly monetary policy needs to be aligned and we are talking everyday. they have undertaken a number of initiatives to continue to bolster financial markets here and to ensure there is plenty of liquidity. for now it is moving. size ofhat could the the extra government report be?

your industry has released a different estimates. could we assume it would be at least $20 billion? >> those were just scenarios the treasury developed as indicative examples of what could happen. the final details of that will be in our budget. we are in a strong position going into this in terms of new zealand's debt levels. we are able to facilitate the kind of fiscal policy that is needed and the fiscal responses that are needed. we will make sure they are packaged towards what needs our assistance, that they continue to support businesses and households to respond. the amounts of money are eye watering compared to what people are used to spending, but we are committed to supporting our firms and people. the sums of money will be

substantial but the final details will be put out in three weeks' time. shery: thank you for your time. new zealand finance minister joining us from wellington. breakingeen -- we have news, secretary mnuchin saying he is waiting lending facility -- weighing lending facilities. the government thought of a lending program for u.s. oil companies as we continue to see the price of oil under pressure. and we will look at the resilience of global food supply chains. australia's agricultural minister will join us live. this is bloomberg. ♪

used aaustralia has virtual g20 agricultural ministers to look for scrutiny of wildlife markers. this describes them as a risk device for security and human health. joining us now for -- from warwick is australia's agricultural minister. great to have you with us. let's start off on the touchy issue of the wet markets. in china, china said there is no

such thing as a defined what market in china. they are food markets, vegetable markets, where people do shopping. in that sense, are they trying to redefine what was the start of the public health crisis? are they trying to escape the issue by saying these markets that have wildlife elements don't exist? >> it might be lost in the translation but the facts remain the chinese authorities reported to the world health organization for health that they believe the origins of covid-19 came from what we call a wildlife wet market. a wet market in australia and many parts of the world is safe. you have seafood, fresh vegetables. but a wildlife wet market is where you are including natural

wildlife and you are mixing them with domestic animals and humans. that is where you create a situation where they intersect and where infection can be passed from wildlife to domestic animals and humans. in the world history there has pandemics traced back like this. it has proved it has proved to the globe we have become a lot smaller. our lives are intertwined. because we are a smaller community, we have to act as a global community and understand and see if we can mitigate those risks. if we can't, we have to isolate them from a traditional wet market that is very important in developing nations in providing food security. we are not trying to remove them

but looking at one element that needs to be looked at and asking the world organization for animal health to use international experts to understand that. these nations around the world, it is important to understand this will help them as well, equip them and give them the tools to understand the risks to be mitigated. that is the responsible thing to do. we have got to look after one another and keep each other safe but also protect agricultural production systems that protect its security -- protect food security around the world. the narrative out of china has turned from crisis management to painting this in a master class of how well they have handled and overcome the pandemic while the rest of the world continues to struggle. this idea of holding china to account for what happened in the earliest days and weeks of the

outbreak, as you say the wet markets and lack of regulation to cover up we have talked about at length as well and how uneasily does that fit with china being our biggest trading partner and a key component of both countries economic covering? respect china plays an important part in export markets, but we are trying to initiate a mature conversation after a serious crisis. it is only right someone should initiate the conversation about what we can learn from this. not necessarily just china but in a national organization that are there to coordinate our response and the world response, i think rightly australian taxpayers and a lot around the world contribute into the world health organization. we want to make sure the processes are the very best.

this type of event is where you understand and reflect on actions and what you think would be done better. that is not being unrealistic or unreasonable. that is a proper thing to do and it is not a bad time to do it now. we are working through this and there are a lot of things to be gleaned out of this that might save people's lives around the world. it is important that we work collaboratively as a global community. i understand cultural sensitivities but this is beyond that. we have to work as a global community. australia should not have to apologize for leading the world in initiating the conversation when the actions of the world -- or whether it be around looking at wildlife wet markets. that is the responsible thing to do as a global citizen. shery: are you concerned about

backlash from beijing given china is your largest trading partner? >> we hope to have a mature conversation. these are extraordinary circumstances the world has had to face area china understood that. they did exactly the right thing by notifying the world health organization and the world health organization for animal health for the origination of the virus. they have been active for disappearance the last decade. we are working with them and want to continue to have the dialogue in a constructive manner. we understand cultural sensitivities but we are trying to initiate a conversation to make the world safer and secure world food security into the future. shery: we have seen some countries resisting exports of agricultural goods given we see disruptions in the food supply chain. could australia take such measures if we come to a point

where we see more infections around the world? in the u.s. u.s. meat factories are closing down. >> we are a nation of 25 million people. we support -- we produce food for 75 million people. the government moved quickly to ensure the supply chains. that is not just the farm but the services, the mechanics, the vets, and we have major the process sector had protocols of social distancing that meant if a worker was infected, there would only be a small portion of the workforce that would be taken out and we could keep the processing plants going. food security was one of the primary services australia identified and took steps to protect that. not only is our food security one of the most secure in the world, we are keeping supply chains out and sending stuff out

on boats and working with exporters. some product was going out underneath the feet of passenger planes. we are working to get export product out around the world. australia don't intend to stop. we intend to contribute to beating the rest of the world along with australia as best as we can. -- feeding the rest of the world as long as we can. haidi: you have the prime minister talking about the importance of economic resilience, australia heightening its sovereignty on the other side of this crisis. governmentn more ownership, more stockpiling given what we have seen in terms of the run on supermarket products, more localization of manufacturing or supply chains? what would you putting in place? >> the prime minister has been

careful to not rise expectations australia will be subsidizing the manufacturing sector. there are competitive advantages we have now, but there are necessities we need and there is a challenge around money medical medical that -- many supplies. they are limited in scope. what we will do is look at i think the first thing is to understand what the new world looks like. i'm taking steps with respect to agriculture. irony together 15 of the best and brightest in agriculture to understand what the new marketplace looks like, what role we can play, what are the risks we need to mitigate. that will be an opportunity for us to reflect on whether we can go further through the supply manner. a competitive

we are part of a global community. we can't run away from that. we don't understand our place in the world -- we still need to trade. it is important we create wealth . we do it in a cost-effective way that it gives efficiencies and also protects our national security without underpinning our food security. agriculture has been the bedrock of our nation's security because it is underscored our food security which has kept national security in check. haidi: farmers in australia are bushfires.m the how has that been compounded by this latest crisis, the shutdown we have seen across services industries, and how quickly are you seeing a recovery from the likes of china as it begins to

reopen? is there demand for australia products? >> there is. we had floods 12 months ago. unprecedented floods in north queensland, drought, fire and then covid-19. our farmers have just kept on going. there is an air of optimism. we have had some rain. the psychology of farmers changes on a dime. you get rain in the psychology changes overnight. no matter what federal governments do, the one thing that beats this is rain. going toore but we are have a reasonable season but more work to do. for your timeou today. australian agricultural minister david little proud joining us. we have an alert on the bloomberg, president trump saying he has heard the report on kim jong-un's health and

thinks they are incorrect. we have heard that kim jong-un has undergone a serious medical procedure. this is bloomberg. ♪ you doing okay?

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transfer your service online in a few easy steps. now that's simple, easy, awesome. transfer your service in minutes, making moving with xfinity a breeze. visit xfinity.com/moving today. 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 open. our top stories this hour, asian markets face an uncertain action leadingports that a coronavirus drug has tested poorly. oil maintains it's a slow recovery after a wild week. traders are concern