tv Bloomberg Markets Asia Bloomberg April 2, 2020 10:00pm-12:00am EDT
full extent of the damage. 113 straight months of gains. >> it is a most 1:00 in sydney. you are watching bloomberg markets asia. i am tom mackenzie. >> i am yvonne man. pretty muted session as we wrap up the trading week. oil u.s. futures lower, also giving up gains that we saw yesterday. it seems like it's not boding well for this part of the world. you have the likes of indonesia coming back online here. up 1%. we are watching the rupiah very closely here. it seems like the world's worst-performing currency might be testing those types of record lows as we have seen since 1998. given the dollar strength we have seen in the last couple sessions. we are watching the likes of crude. back around $24 after we saw the
biggest gain ever when it comes to wti in terms of percentage. we are losing steam there. we are not seeing a whole lot of movement here today. the offshore is slightly weaker. it does not seem like there's a whole lot of patterns you can actually string together here now that we are excluding japan. ending the week back to where we started. tom: we've had another downgrade, another cut to forecast growth. malaysia cutting its 2020 gdp growth estimates to -2%. a contraction of 2%. they are cutting their estimate to -2% on the coronavirus pandemic. morgan stanley have upgraded malaysian equities. we will speak to jonathan gardner later in the show.
we can has kim about the applications of that. another grant outlook for malaysia. worldwide cases of the coronavirus have reached more than one million infections and counting. our chief north asia correspondent joins us on the line from hong kong. this is indeed a bleak milestone. stephen: that's right. total673 is the latest we're getting from the johns hopkins coronavirus resource center website. states, 244,678. that is nearly a quarter of all the global cases now in the united states. 23.6%. that is three times the numbers that china has recorded. globally, 52,973 with more than 5000 in the united states. new york steak still is the
epicenter of the -- in the united states. they are reporting 9000 new infections in the last 24 hours. the new york city mayor is recommending people cover their faces. that is a recommendation that we could be seeing shortly from the white house. they may consider the recommendation. at this rate, the governor of new york saying they have six days from exhausting their stockpile of ventilators. that's another reason why donald trump issued an order under the defense production act to speed up production of ventilators. yvonne: we've seen china lashing back about that u.s. intelligence report claiming beijing falsely reported its outbreak numbers. what exactly do they say? stephen: the foreign ministry spokesperson rejecting that u.s. intelligence community conclusion that a concealed the extent of the epidemic in china. the spokeswoman in beijing
saying they have been open and transparent. some u.s. officials just want to shift the blame. we got that report yesterday from bloomberg. two u.s. officials basically calling the data from china fake. china has changed its methodology several times waiting to skepticism on whether those numbers are actually true or not. little moreported a than 82,000 confirmed cases, more than 3000 deaths. we are also getting a report as a journal citing china's national health commission that there is more evidence that there is a higher number of asymptomatic cases in china, nearly four out of the five people recently tested in china around april 1 had no signs of the infections. that is stoking concern that the
number of simon carriers may be greater than previously thought. china has urged better handling of its cases. publishing that information daily. that is our chief north asia correspondent on the phone from hong kong. first word news. script byemain contagion with 950 new victims, taking the number of contempt deaths above 10,000. thursday was the nation's deadliest day. the army is facing its biggest ever peacetime operation. italy leveled off again. germany expects its numbers to rise and sees the economy shrinking by 9%. shutdowns in supply-chain disruptions from the virus have pushed u.s. jobless claims to an unwanted record. more than 6.6 million people apply from employment benefits in the last week, more than double the total from the week before.
the numbers come a day before the official u.s. payroll report which is expected to show a monthly decline for the first time since 2010. there are new warnings that the u.s. is entering a sharp recession with some economists saying that gdp is headed for its worth decline going back to 1947. shutdowns and restrictions on movement have forced the economy to stall with projections varying but i'll expecting a severe gdp fall in the second quarter. forecasts see a rebound in the latter six months of the year. a cruise liner carrying suspected coronavirus patients has stopped in florida after being turned away at ports in south and central america. it entered for everglades after days of negotiations with local officials. it had sailed from when a series but was denied entry by a series of ports when it announced it was carrying the suspected virus. 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. this is bloomberg. great interviews ahead including morgan stanley's chief asia and em equity strategist. we can ask him about that downgrade for the malaysian growth forecast. we will discuss whether oil's price crass -- crash will renew interest in renewable energy. we will also hear from one of india's biggest i.t. companies. this is bloomberg. ♪
according to officials at the briefing. china vowing to stabilize foreign investment amid the virus. china needs that as the economy slows. that's a key focus for officials here as well. a couple of lines from this ministry of commerce briefing that continues. they will support foreign investment. the chairman saying that they are getting some help from the government but there is more desk they are not at full capacity. that is also the focus with american companies with footprints in china. yvonne: just some lines coming through here. the china morning post reporting that cathay pacific will further reduce long-haul flights. we've seen them cut their capacity to 96% or so. questions on how much more they could actually cut in the moment. not much reaction to the stock here. low oil prices aren't helping airlines either these days. that tweet we got.
that woke up these oil markets. was that one tweet that send crude shooting up as much as 35% at one point. perhaps that was the type of deal that was brokered between president trump, cutting output by 10 million barrels between saudi arabia and russia. saudi arabia came out and said, hold on. we need to have an emergency meeting with opec-plus before we discuss any their agreement. a little bit of doubt in these markets are today when it comes to oil. we saw the likes of oil currencies gain. around 2436 per barrel. for more on what is happening, we are joined by the founder of than insights. great to have you. what's the deal here? how close are we to an actual deal? >> good morning.
let's run a very quick probability test. that is what i believe the oil market is doing. need jerk reaction yesterday to trumps tweet. has he been lobbying russia and saudi arabia to come back to the table? yes. are the two countries leaving the door open to perhaps coming back to the table? probably yes. however, are the two countries close to talking about a deal? afraid a lot of confusion and skepticism on that which is the most important piece of information the oil market needs right now. >> -- yvonne: right. that's the number trump is throwing out there. does that have any impact on fundamentals and price? if that's the way they are
,oing, if that does take place i believe that would be a sufficient enough number to prop , possibly toly above 40 as well. however, the big question right now is, is that a number that they are even talk about -- talking about,? day just,000 barrels a within the current opec alliance defies credulity. can you imagine saudi arabia and russia agreeing to drop their output from 12 to eight million barrels per day? a lot of skepticism over that. will they be able to put together a broader alliance with non-opec producers? question, are they
going to come back to the table? if not, what are they talking about? saudi arabia and russia are making a huge sacrifice. a lot of very important questions. unfortunately at this point, no answers. tom: does the u.s. have to come to the table because the shale industry is under so much pressure now? what is the timeframe for how long the u.s. shale industry can hold up under prices at this level? >> yeah. that is a key point. the shale industry is crumbling very quickly come away faster, way more severely than what we saw in 2015. the argument can be that this , at leastencouraging the silver lining for saudi arabia and russia, that they are suffering all the same. the whole world is suffering all the same. ashaps this will end shale
we have known it. that's going to be a major stumbling block in them agreeing , especiallyagain without any contribution from the u.s.. tom: we have a question from from -- one of our viewers. do you see the wti brent surging if opec-plus supply issues are resolved? >> yes. we have seen quite a contraction in the spread of late. wti alsohe supports to coming from the host that u.s. -- perhaps embargoing or putting tariffs on imports and so on. deal, we will definitely support brent at the global benchmark far more than it supports wti. we could see the spread widening again. even before this tweet
from president trump, we saw oil rebound a bit on a bloomberg scoop that china was planning to crude foruy cheap reserves. there's always a mystery behind tiles oil hoard. how supportive is that for the oil price? >> that piece of news was quite believable. price, we saw the starting to creep up within the asian afternoon yesterday, before trump tweeted. it's entirely believable that china will want to stock up when oil is pretty -- t. we know there is very little about storage capacity. going tohat they were bring on new storage capacity in 2020. entirely likely that they will
swoop in to pick up some oil. given the numbers that we are seeing, they could buy 82 billion barrels. at current overcapacity, that is perhaps four or five days of global supply. i don't think that will give much of a prop to crude. yvonne: we are asking all of our bloomberg clients here about the oil price. perhaps it is too optimistic. how long before oil can actually hit $50 again? >> the opec non-opec production materialize, the ultimate force is going to be the dissipation of the coronavirus itself. i think the optimistic scenarios are that q2 is the worst in terms of the pandemic as well as oil demand restriction and the
world will emerge out of this into three. -- in q3. i would expect a gradual recovery in oil prices, gradual is the operative word here. you have to be very careful about lifting lockdowns and restrictions. tom: i will bring it back to china. what is your timeframe for seeing demand recovery here? >> recovery and chinese economic activity has been far slower than expected. again, no surprises. is able reports that there great amount of doubt within the local government as well is within the public as to whether the pandemic is entirely under control. the country is probably going to be very cautious and how it allows people to mingle again. let's face it.
export markets are going to be completely gone for the time being for the for siebel -- for siebel quarter. i believe it has gone back to 70% of normal levels. it will languish there for the next two months. great to get your thoughts on what is a compelling story. thank you very much. just recapping some lines we are seeing crossing across the terminal. cathay pacific, the executives there are looking at a pay cut for themselves. further restricting the number of flights for that airline that has artie been buffeted by everything that is happening in hong kong prior to the coronavirus. this one is an eye popper. cafes flights twice a week to london, l.a., vancouver, and
sydney. they operate to weekly flights for long-haul destinations. crawling back and cutting back their flights even further. coming up on the show coming u.s. jobless claims have hit a record is america's days home. we will survey the data and preview the payroll numbers due later. this is bloomberg. ♪
now, claims for new unemployment benefits in the u.s. underscore how swiftly massive drop cuts are permeating the labor market. investors bracing for the first drop in payrolls since lehman went under in 2008 and kicked off the great recession. kathleen hays is here with the numbers. is the coronavirus at the point now where it is greater -- cratering the u.s. economy despite the stimulus? kathleen: we know the labor market is the hardest in any economy. we are seeing that it is pretty damaged, already wreaking on the u.s. economy. in beijing, you know what happens when a government fight it pandemic. we have businesses shut down, having people stay home. what happens? people lose their jobs. in the united states, 10 million americans have filed their
claims from employment benefits as more and more states across the country do exactly that. let's jump into bloomberg now and see how this looks on a chart. you can see that if you go back to 2008, the last time we saw a jobless claims going up was in the great recession. nothing like this. at 6.6 million in the latest week, you are already at more than 10 times a single week. you are nearly at 10 million. 10 million in two weeks is the equivalent to the first 6.5 months of the great recession. in terms of how this is breaking down, of the four highest layoffs, california with 879,000. they are having their virus still spiking. new york is number three. job benefits are going out to people getting laid off from
hotels and restaurants, manufacturing, retail, construction and more. it is spread across the entire economy. yvonne: seems like tomorrow's jobs report might not be as important now given what we are seeing a jobless claims. what are we expecting? kathleen: u.s. payroll down 100,000. this will break a string of 113 consecutive monthly declines. extending the longest expansion in u.s. history. you can see what this is like. 100,000 is nothing like the great recession. one thing that is important to remember, the u.s. labor department conducted survey in the week that contains the second tuesday of the march. that was the first part of march. it does not capture the last half of march. knowm line, people will
this march jobs report is not going to begin to capture how bad the pandemic is hitting the economy because of the mid-march survey date. bloomberg economics looking for a decline of 100,000. that is our survey consensus. hitting 15% in april. april is the month that will look so damaging. after a string of all these strong jobs reports and expansion, this report that comes out hours from now is certainly going to show investors that the worst for the economy, the worst for the virus itself in the united states has not yet been seen. tom: -- yvonne: thanks. kathleen hays joining us on the line from new york. willg up, morgan stanley join us to talk about where this is leading in the second quarter. they are focused on china,
>> you are watching "bloomberg markets: asia." the pboc in china saying the deposit rate needs to be balanced. the pboc also saying they need to consider further before changing the deposit rate. officials from the pboc also saying the benchmark for the rate is the benchmark of the pboc toolbox. it seems they are pushing back somewhat on these reports. officials arethe pushing back on that. some investors are disappointed
the pboc has not done more in terms of stimulus. liquidityuggesting into the market in half steps. they are saying they need to consider further before changing the deposit rate. let's get the first word headlines with karina mitchell. hitna: the coronavirus has an unwanted milestone. global infections topped one million four months after it was reported in china. 50,000 people have fallen to covid-19, which has rapidly eclipsed all recent outbreaks in scale, with fewer than 20 nations in the world remaining free. johns hopkins says the u.s. has the most reported cases. china is rejecting u.s. claims that it deliberately downplayed the coronavirus, accusing washington of seeking to shift the blame for its own handling of the crisis. beijing insists it has been open and transparent in response to
the infection, denying any attempt to underreport total cases and deaths. the foreign ministry asked what the u.s. has done apart from barring arrivals from china. oil markets jolted after president trump suggested he has the key to resolving the standoff between saudi arabia and russia. the president spoke to leaders in riyadh and moscow, saying he expects a solution can be found and supply can be cut by 10 to 15 million barrels per day. the fed response to the coronavirus fallout has seen its balance sheet expand as policymakers consider purchases of mortgages and securities. a scale already dwarfing the program the fed took in the wake of the financial crisis a decade ago. the captain of one of america's top warships has been relieved of command after he appealed for help as coronavirus swept
through his ship. the uss roosevelt docked in guam. he asked suspected patients to be quarantined immediately. the pentagon criticizing his actions and saying he "overwhelmed his leadership." global news 24 hours a day on air and on tictoc on twitter, powered by more than 2700 journalists and analysts in more than 120 countries. i'm karina mitchell. this is bloomberg. yvonne: we are taking a look at markets. price action uneventful today. we are running sideways when it comes to asian stocks. a mixed picture to end the trading week. em continues to see pressure. msci china lower by one third of 1%. this pboc news about how they need a full evaluation before they consider cutting the deposit rate will be at this appointment for markets. -- be a disappointment for markets. they thought this deposit rate
could follow. seems they are hesitant on that front. the shanghai composite pretty much flat. the nikkei seeing some gains. we talk about manila in particular. outflows from foreign investors continue for two straight weeks. still seeing green in jakarta, gains of 1%. malaysia with -- a slashing of growth from 0.5% t 2%.possible contraction of shares under a little bit of pressure. tom: what a great time to be speaking to a morgan stanley chief asia and em equities strategist. thank you for your time. line.start with this pboc it seems they are pushing back on the idea of cutting the deposit rate. does that change your view about the equity space in china? >> in brief, it doesn't.
today we increased our china overweight materially. it is our preferred market in emerging markets right now. i don't think things like deposit rate changes are as aborted as analyzing -- as important as overall balance sheet strength and aggressive fiscal policy without think countering -- without encountering significant currency weakness. in that regard, china is stronger than the average em. tom: can you run us through some of your forecast for china's main indexes? jonathan: we are cautious overall. in terms of absolute return upside, we see limited upside to our base cases. weterms of risk-reward, think china is more favorably skewed than the average em. our csi 300 target at the moment is 38.70, which gives modest upside from current levels. we are 23,500 as a target for
hang seng. again, modest upside. for broad em, we have a base case target of 300, which has a low single-digit downside. all of those are base case targets for year end. in terms of risk reward skew, favor theear would broad china indices. that is not because of the balance sheet point i made to you, it is also about the sector skew, and the ability to control covid-19. yvonne: we have seen about 200 companies in china report earnings season is ramping up in hong kong. did a name stood out to you? are you getting much visibility now? jonathan: visibility is very low. earnings estimates are starting to come down, but our aggregates earnings estimate for em is
around 25 percentage points below bottom-up consensus. that is a material difference in view. the last time i remember being that much more bearish than consensus was at the end of 2008 when we had a similar dislocation in the economy. i think consensus estimates will have material further downside as we go through the earnings season. that said, markets have moved a long way to the down salt -- the downside already. valuations are low. that is why on the base cases we get an upside and downside which isn't that large to where we are trading now. certainly this is not environment where investors should be getting aggressive and buying these markets. it seems like you are upgrading malaysia and hong kong equities as well.
talk more about the rationale. in terms of malaysia, have you priced in this potential growth shock given that we saw the government slash its forecast to a possible contraction now? jonathan: those upgrades in msci ang kong -- that is obviously different universe than the hang seng. is singapore, which comes back to the point around sovereign balance sheet strength. in that case, sustainable yield and the ability to control covid-19. singapore is are conferred -- is our preferred market. tom: can you run us through your sector preferences and the rationale? jonathan: we published a piece asia, stocks to own in
japan and emerging markets, also in china. when we look at the sector skew, it is skewed toward information-technology, communications services, and materials. that is what makes up the majority of the stocks we hold. tom: is it about looking for quality versus value or growth stocks? this is a time where you want to be stress testing company's balance sheets. it comes backn, to the sustainability of yield. dividends are very much in focus. one of the drivers of performance right now. something my european colleagues have been writing about. what we are looking at are the business models robust in the shape of the global economy in front of us right now? we have names like china mobile, alibaba, tencent among those stocks that we hold. outside of china, samsung
electronics. those are stocks where we are arguing the stocks were reasonably priced going into this, and now significantly cheap versus the base case views. the material sector is worth a quick comment on. we are recommending gold exposure. the inner minas -- the enormous stimulus from global central banks will expand global money supply. coming out of the 2009 and 2010 event, the gold price did very well. one name weina is are recommending here. elsewhere in materials, it is important to understand infrastructure spending -- not just in china, but more general infrastructure spending, including the health care sector, will be an important driver for a name like bhp group in australia. a portfolio
constructed around information-technology, communication services and materials, that will serve you better than having positions in industrials, capital goods, traditional consumer discretionary areas like automobiles. yvonne: we have seen volatility for most stocks and currencies in the region showing signs of moderation now. do you think that is a sign of stability, or do we need to see more capitulation before we see bottoms for equity markets? jonathan: certainly if you look at a metric -- a crude metric, that has probably made its peak. core investment grade markets and senior debt markets are much more stable than before. the dollar is more stable versus yen fx. when one talks about capitulation, i think it is important to recognize that if
you look at flows, we have essentially had inflows in the first six week of this year into asia and em equities that are counterbalanced with outflows thus far. that leaves the flows position broadly neutral. u.s. dollarsillion from the middle of 2016 up until the end of last year. none of that has come out as of now. in terms of the price adjustment, it is one of the most, if not the most rapid in the of financial markets. that was involving liquidation from investors, algorithmic and quantitative traders. but retail investor flows have not had any chance to adjust thus far. i would personally say we have not seen any significant form of capitulation at this point, in that sense. yvonne: how are you looking at
dividends now? jonathan: we are paying close attention to it in terms of some of the names i just mentioned. there are others we include that have high yields. that is important. a point i often make two people is that -- to people is that ultimately a stock is worth the future value of dividends that the stock is going to pay, even for a growth stock when it enters its terminal phase. dividend is extremely important. it is ultimately what you are buying when you are entering into an equity contract. when you see the price reaction in some of the names that have cut dividends recently, including in the hong kong market, the sustainability of dividends is important. yvonne: jonathan, thank you and have a great weekend, morgan stanley em and asia equity strategist. coming up, $15 billion less in
in mumbai. the worst start to the fiscal year since 2007 on april 1. what does the next quarter bring for investors in india? markets, people look at going forward. they arey now that seeing coronavirus cases starting to surge in india in large quantities. investors think the first quarter is gone. they don't expect a lot of normalization. even if the current lockdown in place right now in india is lifted, you won't see people getting onto the planes and going out into the markets and going to the movies. they will be a while before the hold normalization process -- whole normalization process takes place. another important thing right -- the prime minister speaks
to the country once again. his third message to the people of the country. people are waiting to hear what he has to say. tom: tell us about what is happening in the bond market. you had a trading gap of a couple days. where does that leave us? nupur: we had two holidays. markets are trading for the first time in two days. the bonds announced on the 31st of march was because the market was extremely concerned. fearing the government would be borrowing a lot from the market. as of now, they have capped what they plan to borrow in the first financial year. $5 billion is what they plan to raise. ride forolatile, bumpy the bond markets given the weekly auctions would be a larger amount than usual.
you see the uncertainty around the world. home, soe working from there is a limited flux ability how trade happens. -- flexibility how trade happens. a bumpy ride on bond markets. yvonne: tell us more about the financials. moody's cut india's rates to negative as well. how are investors viewing it now? -- viewing the financial sector now? nupur: the financial sector are probably the first one to take the hit because they have loans. if companies are under lockdown, you would face problems. i have been reading a lot of reports. there is a sense that if the lockdown continues until the end of april, they are still in an ok place, but if it goes beyond that, then you are looking at a
lot of stress. the financials are the first ones to get hit. we are just about to come out of the woods from a bank loan crisis. india is still dealing with a shadow bank lending crisis. this is a third one to hit them again. tom: and hopefully the last. lines fromome latest the pboc, the central bank in beijing saying they won't allow the credit crunch, or allow a flood of credit. is slightly growth faster than gdp. also saying the virus stock to china's economy is temporary. that china's economic performance in march better than february. how large theg effect will be on the global economy, but say it will be temporary.
the central bank saying they will not allow credit crunch or a flood of credit, so trying to strike that balance. that is what we have seen in the past few months, no major cuts to the benchmark rates. we see that reiterated again by the pboc, hesitant to pull the trigger on the positive right, suggest -- despite some reports suggesting they would do that. plenty more ahead on the show. stay with us. this is bloomberg. ♪
tom: welcome back. you are watching "bloomberg daybreak: asia." standard chartered's ceo spoke exclusively to bloomberg about when the firm suspended dividends might be back, and when he sees a recovery from this crisis. >> the bank of england took the view that, given the uncertainty around this crisis in terms of financing requirements and the losses banks will take, it is
appropriate to be extraordinarily prudent, despite that we are sitting with strong capital ratios and liquidity position today. the regulators have taken the view that prudence should rule the day, and i understand that perfectly. when can we get back to something like a more normal capital type strategy? banksl see the role of and helping the world recover from this tremendous shock has largely flown through. we can all speculate how long that is going to be. ability to the return to normal by the end of this year, but the economic challenge will carry on for years. i don't think that means we wait years before we manage our capital. we need to let the dust settle a little bit, understand what the demands are on bank balance sheets and understand what the
cost of this crisis has been, which i hope we get clarity towards the end of this year or next year. given the way this pandemic is rolling out, it doesn't offer much by the way of forecast. >> is there something western governments could understand by the response in certain asian countries? i don't know how you think our western governments are doing or what they could do better. bill: i think there will be looks written and one trillion -- books written and one trillion hours spent analyzing things we could have done differently or things bank could have forecasted and obviously things governments could have done differently. i find it interesting to listen to the debate now, we in the u.s. or u.k. couldn't have done what the chinese did because we don't have that kind of society. but we are doing what the chinese did, we are just doing it too late. we are depriving people of what
would have been considered basic civil liberties only weeks ago because it is the right thing to do for society. yvonne: that was standard chartered ceo bill winters. let's do a quick check of business headlines. an alibaba group suspended new grocery orders in singapore after strict social distancing measures amid the coronavirus triggered surge in orders. the state has been urging residents to buy online. its grocery unit will suspend orders until april 4 while it makes changes to the range of items on offer. morence industries has won approval to raise $3 billion in nonconvertible adventures. the company will seek cash on a .rivate placement basis, its agreement to sell a stake in its refining and chemicals unit two saudi aramco would have helped -- to saudi aramco would
have helped, but was halted as markets collapsed. the trading week not looking too good. going nowhere when it comes to the asia benchmark. flat now. -- flat now. seeing decent gains out of jakarta. we are watching malaysia given the growth was slashed the government to 0.5% to a contraction of 2%. csi 300 factory, lower now. the pboc saying they have to do a complete evaluation before they move the deposit rate. that is disappointing investors. u.s. futures continuing to head lower. nifty heading lower after the holiday. we watch crude. seems like those gains are petering as we speak. a lot of doubt about the broker-deal between russia and
yvonne: a grim milestone in the coronavirus pandemic. one million people have now been infected worldwide. 50,000 have died. >> china rejects u.s. claims that it deliberately hid early data on the infections. beijing says washington is trying to shift the blame for its own inadequate response. yvonne: president trump jolts the oil market by saying he has
the key to resolving the saudi-russia price war. he may even intervene. this is "bloomberg daybreak: asia." it is a must 11:00 in hong kong, 8:30 a.m. in mumbai. i'm yvonne man. haslinda: let's do a check on the market action. asia looking pretty mixed after the volatile session on wall street. investor taking some conflict -- some comfort in the oil market after trump said saudi arabia and russia will cut output by 10 million and 15 million barrels. nikkei up at the moment. energy company's impact and riveting to gains. -- contributing to gains. one country will resume making a key component in a drug that could treat coronavirus. csi down by 1/10 of 1%, swinging
between gains and losses. financial troubles ahead despite interbank liquidity suggesting stimulus so far is not enough. byking at the kospi, up 0.5%. lg electronics among some companies being bought. investors, pumping money at a record pace. authorities say they should not be buying stock record -- stock recklessly. singapore, the lion city down today. disappointing, coming at a record low seven tons of 1%. we had malaysia cutting its gdp for the year to 0.5%. index downlaysia by two tens of 1%. down.
philippine stocks have rebounded 16% from the lows in march. looking at crude oil right now, oil pretty much paring gains after its biggest one-day jump ever. oil got a lift after president trump said you could expect a cut. still elevated, although there is some disappointment on what has been achieved. take a look at nifty futures. we are heading lower. we are on track for seven weeks of losses for indian stocks, the longest streak we have seen in 12 years. we are looking ahead to the prime minister set to be delivering a video message earlier today. the rbi will be conducting a long-term repo operation. a lot of focus has been on the banks after we saw moody's cut 12ks outlook to negative for apac region. the
worldwide cases of the coronavirus reached a grim total. more than one million infections and counting. stephen engle is joining us on the line from hong kong. this is a bleak milestone. milestone inim terms of the human toll and economic toll. a projection came out that this epidemic could globally cost upwards of $4.1 trillion. it is hard to predict since we have not seen the apex in the number of cases or deaths has the curve continues to go higher. when million and counting -- one million and counting according to the johns hopkins coronavirus resource website. 24% of global cases are in the
united states, of those cases that have been reported. 245,000 of those one million plus in the united states. the epicenter there, new york state. 9000 new infections in the last two to four hours, 400 -- last 24 hours, 400 increased deaths. new york has more cases than germany, more than china reported during its epidemic. it is having a problem with supplies. at the current rate, the state is six days away from exhausting its supply of ventilators. 150 patients per day need ventilation. the state says it has about 2200 ventilators stockpiled. it is one reason why president trump issued an order to speed up production of ventilators to ensure ventilator makers like ge and others get them supplies. donald trump also tapped 3m.
they make those n95 respirator masks. problemst specify the the white house is having with 3m. he signed an order under the defense production act for fema to obtain as many n95 respirator masks as it needs. thisally donald trump says is to ensure domestic manufacturers of ventilators are needed to save american lives. lashingchina is also back at washington, a report that beijing falsely reported numbers. we are seeing the back-and-forth, pointing blame at each other. stephen: the foreign ministry response is not surprising. she said beijing has been open and transparent throughout the entire outbreak in its reporting
of cases and deaths. she said some u.s. officials just want to shift the blame. it is without question that china has changed its methodology several times in its accounting of the outbreak, whether that was deliberately to fake, as the u.s. intelligence report said, or not, is to be debated by others. china is continuing to test. they do still have some infections. we are finding through china's national health commission that four out of five recently tested in china have no signs of infection, so-called asymptomatic infections. china said it needs to have a better handling of asymptomatic cases, and those cases need to be published on a daily basis. it sows concern around the world that the number of silent carriers might be greater than previously thought. haslinda: thank you so much for
that, chief north asian correspondent stephen engle. new victims taking the number of confirmed deaths to up to 1000. eadliest day.the da deaths in italy leveled off again, but germany expects its numbers to rise and sees the economy stringing by at least 5%. shutdowns in supply chain disruption have pushed u.s. jobless claims to a record. more than 6.6 milli-people applied for jobless -- million people applied for jobless benefits. the bleak numbers, a day before the official u.s. payroll report, which is expected to show a monthly decline for the first time since 2010. the fed's response to the coronavirus fallout has seen its balance sheet expand to $5.8
trillion as policymakers continue jesus of -- continue purchases of mortgage-backed securities. the scale already dwarfing the program the fed took in the wake of the financial crisis a decade ago. the captain of one of america's top warships has been relieved of command after he appealed for help as coronavirus swept ship.h his shift -- his the captain asked his superiors to allow passengers to be quarantined immediately. he has been sacked, saying he "overwhelmed leadership." global news 24 hours a day on air and on tictoc on twitter, powered by more than 2700 journalists and analysts in more than 120 countries. i'm karina mitchell. this is bloomberg. in a moment we will look at turmoil on the oil markets.
talk about this. certainly this is disappointed. da -- is disappointing. david: it was. certainly expectations on the market were pointed in that direction. losing bond futures gains. you had strength in the currency as well. one message you can take away is policy will not be dictated by sentiment and market expectations. evaluation will be needed before they move on the deposit rate. the other line that other people might have missed is the pboc also said they will not allow the credit crunch or injecting liquidity credit. in terms of their reaction on anz had an economist at
this to say -- without interest rate reduction, government bonds will likely face intense liquidity pressures because of an increase in debt issuance in the coming months. if you read between the lines, one other possible into rotation is that -- interpretation is that the current setting has yet to hinder the execution of policy action. we are getting more lines. you remember late last year they did eight a stressed -- did a stress test. they will be releasing the results of the stress test in a timely way. they are carrying out what they mean in what that might terms of the virus. the results of the stress test
is we are there or worse in terms of the reality. oil.nda: let's stay with yesterday we had this story about how china is picking up emergency supplies in the oil market to take advantage of cheap oil. david: yes. this is a mystery to a lot of people watching the oil markets on how much china holds in its reserves. the initial target is for china to hold government stockpiles to the equivalent of 90 days. that is 900 million barrels in our calculations. eventually, if you move the state reserves, that could be expanded by as much as 180 days. this taking advantage of massive crash in oil prices, several weeks now, that they may
use commercial storage to restock their oil reserves. that according to people we have spoken to. we will see whether or not it comes to fruition. back to you guys. yvonne: david ingles, our coanchor joining us from hong kong. lines coming through from apple. the company telling its employees that all u.s. retail stores will be closed into -- until may, i should say. this according to the senior v.p. of retail, telling u.s. workers that virus procedures will continue until may. they have reopened in china, but there are still many markets where retail stores will remain closed for apple. another sign it will take a while for things return to normal for the company, as well as affecting the global supply chain as well for apple.
newsinly this could be bad for some of the asian suppliers of apple. let's take a look at what is coming up. one of the world's leading renewable energy companies joins us to talk about record oil prices and its move into mask making. envision group founder and -- group's founder and ceo is coming up next. this is bloomberg. ♪
haslinda: global coronavirus infections have topped one million, a milestone reached for months after the first cases in wuhan. chinese renewable energy from envision group has set up a facemask production center and donated money to tackle the pandemic. envision plans to deliver millions of masks with production capacity at 100,000 a
day. let's bring in founder and ceo lei zhang. who do you have with us? a lot of companies across china, including in the manufacturing sector, have joined and become mask producers. for you, the company is the only wind turbine producer to be making masks right now. what is the thinking behind it? gap initially we see a huge between supply and demand. i am a strong believer that early protection is very essential. calculate the middle of february. the production supply is only 50 million. but there are 1.4 billion chinese people. i also predict there is going to be an outbreak globally, so we we have the technology
and equipment automation, so we are able to deal with high standards. we decided to fill the gap. strong company have a sense of urgency because we are dealing with a global crisis every day. we know urgent action is very important. the crisis is a global health crisis. we need to take action immediately. that is the motivation we set in the factory. haslinda: you did all of that in 15 days. how did you take your experience in wind turbine manufacturing to then produce masks? lei: we have a very strong supply chain base. we have all kinds of suppliers. we are also producing battery
cells in japan. we convinced some top-quality separate production into fabrics essential four masked production. -- for mask production. yvonne: tell us about some of the lessons you are learning from building facemask production center. does it make you rethink some of the opportunity and risk when it comes to global supply chains? lei: yes. we have already shipped a few million masks globally -- to japan, to europe, to italy, germany, to its hospital and to our customers and some whom we have never known, but they need
our support. compassion and unity should go beyond the board as well. yvonne: envision has a very large domestic wind market. china is recovering. how has the impact -- the outbreak impacted the wind business, given that we see this pandemic impacting countries globally still? think there are short-term impacts on the supply chain of wind turbines. also, a short-term impact on the demand, but we think this global crisis not only on health, but climate -- this trend is still continuing. on ourct 50% growth
global wind turbine production this year. i think the future of renewables is still very good. givenda: why the optimism oil prices have crashed? are oil and gas commodities. their price is driven by the imbalance of supply and demand. a lot of the short-term volatility. but if you look at wind, solar, and battery, they are new oils. they are technology events. they are going down the cost curve around 10% to 15% per year. wind and solar have already been than oil andve gas. we think this kind of long-term technology leadership is continuing to show the stress,
and especially when you look at the oil cost. the cost of carbon and the environment is essential. an investor who invests in wind and solar, they look not only at the short-term, but also at the midterm and long-term environment issues, also on the cost volatility perspective as well. lei, how are you positioning envision for the end of wind turbine subsidies in china? is: envision well-positioned, not only in china, but also for the world. year, china takes away the subsidy for wind. that is probably next year for solar. we see envision has a strong cost of leadership because we
have the leading technology in the domain, but also in ai and iot. we make smart turbines which are more efficient to capture wind energy, also to save material cost for wind turbines. awaykind of subsidy going which makes technology companies like envision -- gives us more advantage to consolidate the market. , thank you soang much for your insight and efforts to help in this pandemic. that was envision group founder and ceo lei zhang speaking from singapore. let's do a check on your markets before chinese markets head to a break. we have seen hesitation in the markets. oil saw a huge spike. u.s. futures still lower. you are seeing muted losses when
it comes to the mainland market. csi 300 down by one third of 1%. chinext the only last quarter to end in green. -- . crude hovering around the big line from the pboc was they will have to do a complete evaluation before they consider moving that deposit rate. that is a potential disappointment on what we could see from policymakers to try to stem the financial strains of the market and economy, extending credit to small and medium businesses. that is what we are focusing on. we are looking ahead to the indian open coming back from the holiday. we are seeing pressure when it comes to features in singapore. a moody's downgrade on some of the big apac banking systems, including the likes of india.
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haslinda: a wet and stormy friday. we are in the middle of the trading day in singapore. the benchmark coming down by 9/10 of 1%, putting pressure on the regional benchmark. we are watching property developers inciden -- in particular. because of the pandemic, sales of new units dampened by new social distancing regulations. some say whether the property market is kept afloat or not because of people unable to pay
their mortgages. singapore downgraded its forecast to -1% gdp for 2020. sti down almost 1% today. let's get the first word headlines with karina mitchell in new york. karina: the coronavirus has hit an unwanted milestone. global infections have topped one million four months after it was first reported in wuhan. the latest figures say 50,000 people have died because of covid-19, which has rapidly eclipsed all recent outbreaks in scale, fewer than 20 nations in the world remaining free. johns hopkins says the u.s. has the most reported cases at more than 230,000. china is rejecting u.s. claims that it deliberately downplayed the coronavirus, accusing washington of deking to shift the blame for its own handling -- of seeking to shift the blame for his own handling of the crisis. beijing denies any attempt to
underreport cases and deaths. the foreign ministry asked what the u.s. has done apart from barring arrivals from china on february 2. there are new warnings the u.s. is entering a sharp recession, with some economists saying gdp is headed for its worst decline backarterly records dating to 1996. projections variant, but -- va rying, but all expecting a severe gdp fall, but see a rebound in the latter six months of the year. oil markets were jolted after president trump suggested he has the key to resolving the standoff between saudi arabia and russia. the president spoke to leaders in riyadh and moscow in the last two days, saying he expects a solution can be found and supply could be cut by 10 million to 15 million barrels per day. global news 24 hours a day on air and on tictoc on twitter, powered by more than 2700 journalists and analysts in more than 120 countries.
i am karina mitchell. this is bloomberg. yvonne: we are pretty much in a holding pattern when it comes to risk assets. you are not seeing a lot of direction when it comes to equities. we are looking mixed. japan poised in asia and to be flat for the week. u.s. futures flow are -- futures lower. you are seeing green in some markets the likes of jakarta. india still looking like we could be under pressure given the rebound in oil. they are also coming back from that holiday as well, so there is a catch up. trading,e that started we are seeing some strength. we are expecting to hear a video message from prime minister narendra modi. also the rbi conducting a repo operation. india 10-year gilts up -- 10 year yields up.to crude price at
24.20 for wti. .aslinda: let's stay with india the coronavirus pandemic and lockdown is taking a toll on india's i.t. service providers. most critical services will be managed by employees from home. however one company says critical services have to be present at the office. itss discuss with ceo -- ceo. give us a sense of how tech mahindra is gripping with the lockdown nationwide. what is most challenging for the company? can you hear us?
we are waiting to be in touch of tech. gurnani, ceo mahindra to give us a sense of how the company is coping with the nationwide lockdown. tech mahindra is among the top tech companies in india. vice president mike pence meanwhile has told bloomberg that more than 100,000 americans are now being tested daily for coronavirus as the government tries to ramp up its lighting response to the outbreak. -- lagging response to the outbreak. v.p. pence: what i can tell you is because of the private-public partnership we forged with these orp, commercial labs, labc we are testing over 100,000 americans per day.
a significant breakthrough happened this weekend. again, moving with record speed, the fda approved abbott laboratories point-of-care test. it is literally a 15 minute test that people can have administered at their local doctor's office. we are in the process of identifying the thousands of abbott laboratories machines around the country. we are making sure that we are distributing those not just to. his seeing an impact -- to areas seeing an impact today. abbott laboratories is making 150,000 tests a day now. we want to distribute those to areas to do what you implied, to do the surveillance testing that allow states that currently don't have a significant outbreak to be forewarned and to do the contract -- the contact
tracing that would limit spread of coronavirus. the answer to the other part of your question, we literally are tracking every single day the number of cases that are coming out, where they are coming out. i already received a briefing this morning, a county by county, state by state analysis. that is informing our coordination not only with the strategic stockpile, fema, but health care distributors around the country, anything from personal protective equipment to all the supplies our health care workers need. we are focusing it where the outbreaks are. we are working closely with governors to support their request, whether it be for personal protective equipment or field hospitals. we will continue to do that around-the-clock. >> vice president pence, let's talk about personal protective
equipment and ventilators. you are coordinating, monitoring, encouraging. we have heard from some governors such as governor cuomo that states are having to bid on ventilators. is there a central location that will decide where the n95's go, where the ventilators go? pence: when the president signed the national disaster declaration, he had fema as the lead coordinator of our nation's response. fema has been working with governors to process requests not just from the national stockpile, but we are working with distributors around the country. we are directing them in many cases where we need that personal protective equipment to go. we established what the
president called an air bridge. they will be 51 flights from the world bringing in supplies for health care workers. we were already wheels down sunday at jfk, monday in chicago. we were landing in miami last night. those flights will come in around-the-clock. what we are doing is taking 90% of those resources and deploying them through distributors to go directly to the point of the need where hospital workers are requestingand personal protective equipment. it is a way we can use the strength of the private sector's distribution system and the direction of our logistics team at fema to meet this moment. as we track the initial outbreak, the seattle area,
washington state, then california. now the epicenter is the greater new york city area. we are working with distributors to bring supplies in, to increase production at home, then directing them to where they are needed most. was vice that president mike pence. let's bring back tech mahindra's ceo. are you with us? mr. gurnani: i am right here. i am right here. how are you? haslinda: good to have you with us. just wondering, how is tech mahindra coping with the national lockdown? what has been most challenging, putting in place your work from home, or asking clients to ease clauses with sensitive information? mr. gurnani: a couple of things. number 1 -- the way we did it
challenge into 17 taskforces. the first five taskforces were only dealing with communication of employees, employee safety, employee health, and making sure that employees and their families are looked after. the average age of my company is 27. when you have operations in 90 countries, you know there are many who are staying all alone. many countries in europe and parts of asia and india had a lockdown. that was the first priority. businessiority was utility for the clients. ourt 10% to 15% of employees didn't report to work because of the issues like data or not being able to put all the
siebel security norms -- the cybersecurity norms that were required. about 90% of my i.t. team is now working from home. services which take into account running service tests, 55% of those employees are working from home. i know it is a challenging situation, but we have been able customersur irrespective of the geography and location. my employees have shown tremendous grit and determination. haslinda: is it impacting productivity in any way? can you quantify that, an whatd -- and what impact do you expect on your revenues for 2020? mr. gurnani: i think it is too
early to talk about the 2020 impact. some industries are practically in a shut down, like hospitality or physical retail, but the majority of our revenue comes from telecom, health care, rom mediaring, and f and entertainment. that part of the revenue, we don't see any impact. but it is early to say. we are counting each and every employee. -- accounting each and every employee. we had a few cases of covid-19 positive, but everyone recovered. 00 covides out of 125,0 positive. they have recovered and their families are doing well. haslinda: any insight on your
vendors? is tech mahindra cutting contracts to any of its vendors? mr. gurnani: we put a abc category for vendors. the a category we put people in small-scale and medium scale businesses. sure we will pay them at once. category, we are treating them as our extended family and looking after them. the b category, which are reasonably large, we are having a dialogue with them. cash flowly want also. we are having a dialogue with them. i would say 90% there is a mutual agreement. we will give them the
benefit of doubt or an advantage to our vendors. , where wet contracts think we would like to not necessarily negotiate, we are waiting 15 days. we will work with them to figure out what we need to do differently. the contractss, like a microsoft or hp which give us the infrastructure for supporting our businesses. we are going to sit down with what needsderstand to be readopted to the new normal. infrastructure was not geared
for work from home. infrastructure was geared for cloud software and hardware. i think that is the sort of discussion we need to have. i will definitely have a constructive dialogue with my partners. haslinda: there is a lot of talk about a share buyback. can you comment on that? mr. gurnani: we definitely will not be doing a share buyback at this stage. the stockeason is market has taken a beating. our share prices are low. if i recommend i want to do a i am notback, i think being fair to my shareholders. we will definitely not be doing a share buyback. c.p. gurnani, tech mahindra ceo. thank you for your insight.
the markets in india are open. gains: we are seeing some as we kick off the session, actually we reversed those from what we saw. 76.07. look at the rupee, still seeing some strength. take a look at the bond markets. we are seeing a selloff in bonds, up 15 basis points. we are looking ahead to the r.b.i. repo operation as well. we heard from the prime minister asking india touche with soft -- amid this off lights lockdown. we will get more from the prime minister in the video message ahead. this is bloomberg. ♪
yvonne: rocketing claims for unemployment benefits in the u.s. underscores how quickly job cuts are permeating the market. editorring in our kathleen hays. that 6.6 million is hard to wrap your head around. kathleen: twice as much previous record, 3.28 million. put it together, nearly 10 million americans claiming jobless benefits in two weeks.
why? because more around the country are shutting down businesses. this is how we fight the pandemic. businesses don't have revenue, they lay them off. look at this chart with me. 10 million in two weeks -- look at this chart -- the equivalent of the first 6.5 months of the great recession. the next nearest number was 680, 000 in change. one week nearly twice as much as the great recession. twohe top four states, the at the epicenter are california and new york on the list, also pennsylvania and michigan. it has moved to health care workers getting laid off, factory, construction. this is a broad swath. haslinda: no surprise then that payrolls are expected to decline in tomorrow's u.s. jobs report
for the first time since the great depression. kathleen: probably since the great recession. those words are being interchanged a lot as we see the fight against the virus taking its toll. right now the consensus number is down 100,000. it is a string of 113 consecutive months of gains. the expansion was most 11 years. let's look at a chart. why only 100,000? it is the way the numbers are collected. the survey contains the second tuesday date of the month, march 12. we were not in the full swing of the layoffs then. that is why this march report will be negative, but not as negative as what bloomberg markets expects to see next month. the pain will get worse. haslinda: kathleen, thank you.
high as $4 trillion, almost 5% of global gdp, that according to the latest report from the asian development bank. joining us is adb chief economist yasuyuki sawada. good to have you with us. your analysis does not include supply disruptions or the financial crisis. how much more could that add to the cost? yasuyuki: that is a good question. irst wasost estimate, f the immediate impact on tourist and movement of people, that is number one. number two is shrinkage of consumption. number three is sharp drop in investment. although we don't especially incorporate the supply side should be inhat
line with the supply-side cuts. to preciselyult give you a number if we incorporated this damage. can be in our vision. of $4 trillion is a lower range. how ready are regional economies in cushioning the blow from this outbreak fallout, and are there certain economies you think are more vulnerable and can help with this? yasuyuki: that is an important core question. first we should note this is fundamentally a health crisis, not driven by a fundamental program of economy. if the country can deal with it
swiftly, economic recovery will be swift. although because of the three miles to six miles containment this year, we should inevitably see a slowdown. thebest assumption is recovery we observe if containment is quick. no countriesthis, are unaffected by this pandemic. countries, especially tourism and commodity dependent economies like cambodia will suffer most. i think we are fully aware, governments and international are aware of, adb the short-term consequent is of the pandemic.
medium and micro health care industry, governments are already putting possible measures to substance. adb a couple weeks ago announced $6.5 billion u.s. dollars in resources for the adoption of economic policy interventions. yvonne: thank you for joining us. yasuyuki sawada, adb economist joining us on the line. that is it for "bloomberg markets: asia." markets are a bit hesitant to continue on these gains. we are trading in a sideways way as we wrap up the trading week, but we are on course for a flat performance. oil prices continue to head