Skip to main content

tv   Bloomberg Markets  Bloomberg  February 26, 2020 5:00pm-8:00pm EST

5:00 pm
to "bloomberg markets." i have emily chang in san francisco with paul allen in sydney. more coronavirus infections outside china. pakistan, brazil, germany, the canary islands, more countries are reporting the beginnings of fresh outbreaks. and, artificial intelligence. the innovator binder system which scans online news and
5:01 pm
social media reports to track spreading disease. money toward a self driving startup. the race to bring self driving cars to the masses. spotty recoveries but still a down day in the u.s. what are you looking at before the markets open up over there? paul: the virus inspired selloff does seem to be abating. new zealand is up, a reasonable balance after days of sustained selling. futures in australia pointed toward another down day in the open. keep rio tinto at the open. the world's second-largest minor. the guidance is unchanged. in see nikkei futures positive territory. big day for korea as well.
5:02 pm
think of korea decision day. most economists see easing. quick check of the currencies. the aussie dollar has a 65 handle. the yen continuing to show some strength. the aussie 10 year coming off those record lows. emily: as you mentioned, volatility, volatility, volatility. u.s. equities traded near the close of the day. reports on the widening coronavirus out rake as major indices and losses. tell us a little bit more about where we ended up? story abouthe volatility. upone point, the s&p 500 1.7%. this of course after a four-day selloff. and felt like there could be
5:03 pm
some sort of a rebound rally. the question was, was it a dead cat bounce? declines for the dow, the s&p in intraday swings volatility for the s&p 500. the nasdaq managed to eke out a gain. the russell, not so much. all of this of course on all sorts of coronavirus headlines and fears that it could come here to the u.s. we take a look at a chart of the dow transports. can see the whipsaw. getting hit harder the volatility fan the s&p 500. at one point today, up. this terminal on the bloomberg is very telling. at the top, the s&p 500. above that 200 day moving average in yellow, one reason to
5:04 pm
more moves&p 500 has to the downside. bearish the below the moving average. each time this has happened in the past, this hasn't leached -- in the past, the s&p 500 has at least fund after the 200 day average. the totality of the selloff for the s&p 500, the worst since february of 2018, the longest since august of last year. newsurse, some making after the close, they have cut their forecast citing the virus impact on the pc unit in china and asia. almost in ae shares bull market. they have closed their theme parks in shanghai along with
5:05 pm
hong kong. in china,ie theaters disney cruises. if something happens here, that could be a real negative for investors. coronavirus really wreaking havoc for the financial markets. at the end of the day, it comes down to that corporate outlook. microsoft having to cut their outlook because of the coronavirus and the unknown impact. emily: president trump is set to hold a briefing on the spread of an coronavirus in just over hour. a case was reported in the united states and new infections emerged in countries from pakistan to brazil. the world health organization notices more cases were reported in regions other than china for the first time.
5:06 pm
what should we be looking for out of the president's briefing? everthink it is whether we finally get a consistent message? president trump has consistently sort of minimized the impact of the virus or the potential that it might spread. with the cdc taking more of a warning approach, letting people know that it might be time to start taking some personal measures to prepare to prevent the spread. this is a real risk to the united states given how many countries it has spread to and how little testing has been done in the united states so far. beenr, cdc efforts have focused pretty explicitly on people traveling to and from china. it is not certain that there is capacity to really expand to the
5:07 pm
level that we might need to catch the change of transmission emily: happening otherwise. emily:emily: ominous warning from the food and drug administration, an official right there saying, we are on the cusp of a pandemic. are we at a turning point? statistic from the world health organization makes it clear that we are, more cases outside of china than in china. when you have sustained transmission in multiple parts of the world, travel to and from so many countries, the conversation turns to containment wherever the virus rears its head. i think we will have less focus on china and a little more focus on how far they will go toward the quarantines which, while
5:08 pm
effective, were insufficient. how about in the u.s.? would the structure and costs of the health system in america make it particularly difficult to contain the virus? people pay high out-of-pocket costs in the united states and that is especially the case when it comes to testing. that actually when you are hospitalized, even people with good employer insurance have coinsurance when they have a hospital stay and could rack up out-of-pocket costs. there is a concern that people might avoid care and that will lead to a greater spread over time. if you are ill, stay home from work and seeking care. thanks so much for joining us.
5:09 pm
'su can catch president trump news conference on the up-fake at 6:30 p.m. new york time, live on bloomberg television. that is 7:30 a.m. if you are watching in hong kong. latin america's first confirmed case has emerged in brazil. let's get the details from bloomberg's latin american managing editor in sao paulo. what do we know so far? male whoa 61-year-old traveled to northern italy a few weeks ago. he traveled back through france. the last night, we heard of case for the first time. authorities confirmed the positive test. they said he is at home and he is rather well, not that sick. there are 20 other suspected cases in brazil.
5:10 pm
they have already discarded 59 cases which were suspicious. authorities are not taking any more drastic pressure at the time and we are waiting to see if there is more confirmation. what sort of confidence 'sn people have in brazil ?esponse to this daniel: it is not clear. cut some, they have education and health expenses. that is one cause of concern. mark is theestion weather. authorities talked about being in summer months here in brazil. they are curious to see how it reacts's here in brazil versus other places. emily: there is the question of
5:11 pm
how the virus will potentially spread in that climate. what do authorities know based on how it has reacted in other warmer weather places? daniel: that sounds like they don't have a lot of evidence yet in tropical countries. versus fall or winter. we will just have to see. we are coming off the end of the carnival holiday where people are mixing and partying. we lose have to hope that none of these cases got spread that way. paul: still to come, former vice president joe biden picks up a key endorsement in south carolina. we look at the key state in the u.s. presidential race. this is bloomberg. ♪ ♪
5:12 pm
5:13 pm
5:14 pm
welcome back to "bloomberg markets." let's get the first word news. >> the bank of japan has been asking its major banks about their preparedness should the corona outbreak worsen. they are said to be well placed with contingency plans including different office locations to prevent market related disruptions. japan's biggest banks have been staggering shift, urging people to work from home, and having staff take holidays. at least 20 people were killed in three days in clashes against rival groups over india's new religion based citizenship law. they call on narendra modi to send in an army. the controversial law fast tracks citizenship for religious
5:15 pm
minorities from three countries but excludes muslims. the ballast -- the palestinian foreign minister has hit out against president trump's plan for the region, calling it a sanction plan. he called for sanctions on israel if they go through with a plan to build new settlements on the west bank. the reactionalso by the international community regarding the release. , of course, he calls it a peace plan, it has nothing to do with peace. it is really a surrender plan. >> global news 24 hours a day on air and on quicktake by bloomberg, powered by more than 2700 journalists and analysts in over 120 countries. this is bloomberg.
5:16 pm
toly: welcome back "bloomberg markets." months, former u.s. vice president joe biden has been staking his claim to south carolina in the presidential primaries. while he is no longer the front runner, he still has the lead in south carolina polls. he picked up a key endorsement today, hausman are -- house majority whip jim clyburn. >> i have known for a long time hope i was going to vote for. i amt the public to know voting for joe biden. i know joe. we know joe. us. importantly, joe knows joining us to discuss, and political science professor at iona college.
5:17 pm
another feisty debate. what does this mean heading into south carolina? has anything changed? >> i think this endorsement traditionally by jim clyburn is important. in 2008, it was instrumental in his support for barack obama over hillary clinton. , joe biden, is not been doing so well in the early states. is that reason, this critically important. clyburn is really well respected. stateden is looking at a in south carolina where 60% of the voters on the democratic side are african-american. that said, it is 2020. i think all of us are sort of
5:18 pm
holding our breath to see, do these types of traditional endorsements even matter anymore? in nevada, we saw the culinary union very critical of bernie sanders, and yet some of their members broke ranks and voted frame anyways. we are not sure if these traditional endorsements matter anymore, but it sure mattered a decade ago. senator bernie sanders still the front runner nationwide. meanwhile, michael bloomberg, the founder of bloomberg lp, not on the ballot in south carolina. he had a disastrous first debate, somewhat say he improved in the second debate but not enough. what are his chances of regaining some of the momentum he had before the first debate performance?
5:19 pm
>> he had a tough first debate, as you mentioned. wegot that the second debate really don't know because he is running a campaign like we have never seen before. that just the amount of money is spending, but the fact that he is not competing in these first four states. super tuesday, one third of the delegates will be up next tuesday. uphill uphill battle him. he is at 45 delegates right now to buttigieg in second at 25. it depends on what happens with biden in south carolina. that could put biden over sanders if he got all of them. unlikely.
5:20 pm
we will have to see what happens with these other candidates, whether it is mike bloomberg, amy klobuchar, elizabeth warren, pete buttigieg, or in this moderate lane, so to speak, but there is pressure on them, you either have to perform or get out of the race and let the two top front runners, bernie sanders and joe biden or whoever is in that moderate lane. >> joe biden has long been building up to the vote. how resounding does his victory need to be? a i think joe biden needs strong first-place finish. i do believe south carolina is it. if he does not come in first, i think he will sustain through does super tuesday.
5:21 pm
win in a state where he has been leading, he has this strong endorsement, support on the ground, then people will say, can a beat donald trump? this is critical for joe biden and for tom steyer, who has spent so much money and so much time in south carolina, organizing. of appliede zaino techonoics, thanks. this is bloomberg. ♪
5:22 pm
5:23 pm
u.s. equities swung between gains and losses wednesday as investors continue to work out the impact the coronavirus well have on markets.
5:24 pm
our next guest has built a brian terry alternative data dashboard anfelt an -- has built alternative data dashboard. tell us a little bit more about some of those alternative indicators that you watch. data is nothina's that transparent and because there is a delay in the data, we have been developing alternative high-frequency data to check the pulse of the chinese economy. there are two categories. the first one is activity data. the second one will be the sentiment data. in terms of activity data, we are looking at consumption, isause china's energy source mostly driven by coal. then we look at the passenger
5:25 pm
trips, the traffic delay and traffic congestion. like the major search engine, they publish the migrant index. we can track the return of the migrant workers. anotherming revenue is critical data. we also look at the metal price aluminum, ander, zinc. the data, we also look at sentiment data the search engine, baidu, also has the job search frequency data and unemployment data. you can see, in terms of the consumer sentiment going forward.
5:26 pm
so, -- at youren you look data, your convinced that this is not a depth worth buying. you're not alone, and economist has warned about the same thing. are you exiting any positions or getting short anything? >> analyzing those data, we feel there is a v-shaped recovery that investors had been looking for which is not there yet. consumption rate, all kinds of output, it is still very low right now. just still -- we are starting to look at the leveling out of the new cases. we look at the corporate spread,
5:27 pm
which is still very tight, although it gaps out by about 50 basis points. is way tooink there much room to go. defensively, we want to seek safe haven protection. we like the safe haven durations. atthe same time, if you look the lower mortgage rate. lower mortgage rate is very, very helpful for the u.s. housing markets. we still like residential and commercial mortgage-backed securities. manager, portfolio thanks so much for sharing your perspective with us. with love more on the coronavirus next. if you want to get more, you can
5:28 pm
go on the terminal, maps virus if you like bloomberg news, check us out on the radio, the bloomberg app, bloomberg.com, and in the u.s., on sirius xm. -- maps virus . this is bloomberg. ♪
5:29 pm
5:30 pm
>> welcome back to bloomberg market. i'm paul allen in sydney. emily chang at the difference that. check in on first word news. >> the debbie ajo says in the last 24 hours, more new coronavirus cases have been reported. is accelerating outside the original epicenter of china. -- the world health organization says there were 450 nine new cases reported
5:31 pm
outside of china compared to 412 cases inside china. top u.s. officials are joined to ease concerns over the coronavirus after the country confirms an infection. president trump and cdc officials plan to speak about america's coronavirus response in about one hour from now. philippine president says his country's forces can fight insurgents and extremists without any help from the american military. he was defending his recent decision to terminate the u.s. security at and also that he would stick to his pledge to not travel to the united states. it he made the decision early in his presidency in response to barack obama's criticism of his antidrug crackdown.
5:32 pm
global news 24 hours a day on air and it quicktake by bloomberg powered by more than 2700 journalists and analysts in more than 120 countries. this is bloomberg. paul: thank you. let's get back to the coronavirus trade confirmed and south over 1000 korea and authorities are testing more than 9000 more people. kong.porter is in hong it is putting more pressure on korea's central bank. what are we expecting? ask most economists are saying we expect cuts today but it is interesting you mentioned more than 1000 affected cases now. health officials say they expect a jump in more cases now that 9000 members of the religious sect are going to be tested. a manhunt has been launched to find 200,000 of the members. this has been the epicenter, this religious sect of the
5:33 pm
outbreak and south korea. we also learned of a u.s. soldier who was infected. the first servicemember from the u.s. who tested positive for the disease. now the number of cases is expected to peak at 10,000. a 25 point basis cut is expected from them today. banksre asking the major now prepare they are if there is an outbreak in japan. large financial institutions are well-placed in the situation. a developer says an infected person has visited one of their buildings. from thend, we heard health minister saying there is a risk that the outbreak could
5:34 pm
be more wet -- widespread up to a level rate which is the highest level in the country. a total of 40 cases in thailand. kong unveiled a $15 billion budget for relief measures. >> after careful consideration, i have decided to disperse $10,000 to each resident aged 18 goal of with the boosting global consumption and relieving people's financial burden. helicopter money more than $1000 for each adult. how will that help? >> that was the main feature, the highlight of the budget. economists were quick to criticize the $10,000 quick and , it isch they say unlikely hong kong residents will go out and spend it.
5:35 pm
it's like a drop in the ocean for many. this has been the most challenging politically charged -- it was a massive fiscal dose of $120 billion of relief measures. it the deficit could reach a record of $139 billion in the coming fiscal year. it was packed with giveaways as well. tax rebates, loans,. they are still thinking it is not enough juice for a turnaround in the economy. perhaps the government echoes that. they have downgraded the forecast from 0.5% to a contraction of 1.5% for hong kong this year. the budget could be an offset but not so much and the slump. emily: thank you so much for the update. as we mentioned, the who says more coronavirus cases were
5:36 pm
reported in places other than china for the very first time. get to our correspondent tom mackenzie. is this a turning point inside of china? certainly over the last week and a half, you have continued to see a moderation in the numbers of confirmed cases of the coronavirus. if you take the government data at face value. the debbie ajo is underscoring that the shift in focus is moving away from china to other countries. then of course the concerns in europe and the middle east. they are saying the outside of china, you have 459 cases within 459 outside of china and 412 inside china. that is the first time we have seen more cases new outside of china that inside china. globally, we have 81,000
5:37 pm
confirmed cases. hearing,of what we are xi jinping had another meeting and he talked about the fact that the prevention and control measures he said were continuing to be effective. economic development was rebounding rapidly but he also warned that the situation remained grim and complex into provinces. also that the risk of infection rate could rebound in other provinces. it seems like officials are relatively confident that the measures they are putting in place have proven effective but they are not ruling out a spike of infections again as people return to work. emily: what is happening in europe? italy and germany are on the list now. >> italy is now confirming 378 cases. they have reported 12 deaths.
5:38 pm
large parts of places around milan are effectively locked down. that's a population of 50,000. spain still has 700 people effectively quarantined in a hotel. announced to confirmed infections there. hasorities in spain, greece reported case -- cases. germany is now saying they could be looking at the start of an epidemic in the country. overall, european health officials are saying we are still at the stage of trying to contain this. member states of the eu should be looking at their pandemic plan. that is a warning for the eu. >> tom mackenzie in beijing. been covering a story.
5:39 pm
seven people are dead including a gunman at the molson coors campus in milwaukee. this is according to the local paper. we're monitoring the situation, monitoring local media and we will bring you more details as we have them. coming up, how artificial with thence can help next virus outbreak. at someone has created an early warning system. this is bloomberg. ♪
5:40 pm
5:41 pm
emily: the number of global coronavirus infections now stands at 80,000 would be the pho saying there are more new cases outside china that inside. this raises the question of what could have happened if governors
5:42 pm
-- governments had more warnings. a team at boston's children's hospital was the first team outside of china to fight the disease. on december 30, health map sent an alert about unidentified pneumonia cases in wuhan, china but it was only ranked eight three out of five in seriousness. now i want to bring in the chief innovation officer at boston children's hospital. how does this ai mapping system work question mark? aboutt is challenging public health issues is getting enough detail in real about what is happening on the ground. there is only so much public health agencies can do and for health systems to be able to track these cases. if you think about the digital exhaust, our interactions with
5:43 pm
social media, searches online, all of that information is incredibly valuable but it is a huge messy set of data. if we start tapping into that digital exhaust and get insights through machine learning and ai, you can pinpoint early events before they bubble up to officials. with coronavirus, the earliest insights came out of social media. they were talking about the outbreak that was only a dozen people out of eight season market that ultimately became the major event we are seeing today. what we are able to see is the small signals, they would be challenging to look at from any government entities. >> what is that tell you about the coronavirus now? >> we have been using our tool not just to identify the outbreak but to track it as it spread. if we construct a mad cow cases as they are identified across the globe, we can quickly see the information models, make
5:44 pm
projections and understand fatalities are it we are seeing a huge amount of cases that are emerging that may be have not interacted with health systems. we know there are a lot of cases that are asymptomatic. we are trying to understand the spread in real-time to prepare governments for the inevitable arrival of the virus. in terms of usefulness, emily pointed out that the virus was only rated 83 out of five and seriousness. are there still some imitations to this? >> absolutely. ai is just a series of tools that the public health has. it is really about the frontline workers. they need to process the information. we were communicating early on with the debbie ajo about these ultimatelyted they
5:45 pm
make the decisions about what kind of response to take on. you have to understand there are many outbreaks that happen on a daily basis that are identified. the challenge of looking at this event and deciding if they could turn into a global pandemic, it it shows challenge but that these tools are identifying signals getting communicated and we are seeing this in china and the world stage. paul: to your point, before we started today, i was playing with health not -- health net and i saw that there was an outbreak of avian flu. >> within the u.s., we are dealing with influenza. we know that it leads to credible mortality. there is still a push to get people to vaccinate. there is a major ability for us to handle a new virus plus the seasonal viruses that have
5:46 pm
sometimes a greater impact. the point of these tools is to provide transparency, hopefully encourage people to take the right precautions regardless of if it's coronavirus created the idea of hand washing, proper hygiene, all of these things are based on public health. you should be practicing regardless of what kind of virus is around the corner. >> at the same time this technology holds promise, what about the limitations of artificial intelligence? a rapidly evolving disease on the ground. >> ai can only do so much to uncover signals, understand the relative severity. what we really need us humans in the loop. we are working not just with machine learning technology but with national and international experts. they are looking at this information, processing and contextualizing and helping to make their decisions. we can uncover massive amounts
5:47 pm
of data through these social networks and process it and put it in the hands of experts but it is ultimately does experts taking the situational awareness and making this -- these critical decisions. it is not about ai replacing a public health agency but augmenting with the best possible data in real-time. >> when you look at the data, do you see potential hotspots that we might not be aware of? that governments need to know about. >> ultimately, what we are seeing is bubbling up cases across the middle east and now starting in europe. it is not too dissimilar from what we are seeing through judicial sources. what we are interested in is picking up the earlier insights of what might happen in the u.s.. that's why we are tapping into new data streams read crowdsourcing, search queries, the idea that we are now looking detail data to
5:48 pm
see if we are going to miss the clusters of cases that will pop up within the u.s.. that is the focus right now. are we going to be able to see the increase in cases that will likely hit the u.s. at the caniest outset so we prepare the population? we know the public health and health systems are going to be incredibly overwhelmed and possibly cases will be missed. we know the travel history concept is really not a solid because we have seen cases pop up around the globe. you can't think about travel history as a way to understand. we are surveying the population through a tool we have developed and others that hopefully will give us the early insight for when the inevitable event happens. paul: thank you so much for joining us. still to come, grubhub rolls out a fix to ensure its dominance in
5:49 pm
the food delivery market. we will hear from the ceo about the new lunch next. this is bloomberg. ♪
5:50 pm
5:51 pm
paul: the food delivery marketplace is highly crowded and while many companies are slashing budgets, grubhub just launched a membership program full of rewards. emily chang spoke with their founder and ceo about the plants to grow market share with rachel plus. -- grubhub plus. magnituden order of more exciting than anything else out there. we are doing 10% cash back. that is incredible. that is a huge amount of money that we are giving for ordering on our platform. it is an accumulation of a strategy that we outlined six months ago in our shareholder letter.
5:52 pm
we doubled the restaurants, we have the largest restaurant network in the country and it is about unparalleled rewards. we have hundreds of millions of dollars currently available for redemption on our platforms. program, ourerks rewards program and grubhub plus where we are giving cash back. we're leaning into profits to steal share from everyone else in the industry created >> your position in the food delivery market has been challenged by upstarts with big pockets. door --, postmates, uber eats. or you worried about the competition when they have a lot of cash? >> it's not as much cash as they used to have. the private funding market has dried up. it is hard to find equity $100 millionwrite
5:53 pm
plus check. we are profitable. we can sustain us for as long as possible. we are cutting back on our profitability to be more competitive and do things like grubhub plus were we are giving users 10% cash back. we're attacking from a position of strength. while everyone else is slashing budgets to find profitability, we have profitability and we are giving away unparalleled rewards to consumers created. emily: as you say, grubhub has been profitable. you are also willing to sacrifice profits. we going to see zero profits? losses? >> for 2020, we are going to make $100 million net profit. that is arbitrary. we just said we want to prove to everyone we can still make a substantial a lot of money while
5:54 pm
being as competitive as we can. we pushed in the non-partner delivery. we doubled our restaurants. we have the largest restaurant network in the country and we are doing these programs like grubhub plus where it is free delivery, 10% cash back, access to elite care teams, doubling the donations for members. it is an incredible experience rated we are throwing everything against the wall pulling out all the stops for consumers because we know we have the best platform. >> but talk about the competition. many have said that all of these players cannot survive. do you see consolidation in this business and if so, what makes sense? >> there are too many players losing too much money. something is bound to happen. acquired 10 companies in the last 10 years.
5:55 pm
acquisition is part of our growth strategy. asng as competitive possible, pushing the envelope and stealing share, i think we are creating opportunity to buy companies in 2020. >> is the grubhub ceo and founder. competition in the self-driving car space is also heating up after toyota made an extra investment of $400 million. bloomberg spoke to the cofounder and ceo. >> in general, in this field, there remains to be quite competitive. in terms of the current race, , in terms of commercialization efforts it is probably seen as a front runner but the race is very open.
5:56 pm
>> this is a debate among all the companies that are chasing full autonomy about how they are judged and measuring progress. you test in china and the united states different environments. where are you getting the best quality of testing miles? place has its uniqueness. in terms of traffic patterns. in terms of the interesting, the density of hard cases, china will probably get more happening during the daily routine of our testing. in general, the traffic pattern everywhere is different. everyone's driving behavior is different and that's how we use this extensive traffic patterns to train our ai models to make it more comfortable for the writers. a major milk tribute or
5:57 pm
says sales in the first two months of the year were ahead of expectations resulting in it positive impact on the company from the coronavirus. sales of baby formula surged in china. supply remains good and it is not expecting any impact in consumption in australia and the united states. >> is difficult at this stage to have a view as to how that will fully play out. it could be positive for our business. it could be negative. our we can say is that sales are responding positively at this time. >> much more on number television ahead including president trump's news conference on the coronavirus outbreak. it 30 p.m. and we will have right here. stay with us.
5:58 pm
i'm al -- emily chang this is bloomberg. ♪
5:59 pm
6:00 pm
>> in sydney, markets have just come online. >> i'm shery ahn in new york. welcome to bloomberg markets: asia. our top stories this hour, president trump is set to speak on the coronavirus outbreak as the who reports new cases outside of china that insight. we will hear from the president in 30 minutes. the bank of korea is expected to cut rates.
6:01 pm
south korea has the most cases outside the chinese mainland. apple and microsoft issue andings over the virus supply chains that will affect the bottom line. >> macro concerns are again weighing on markets. a had u.s. stocks providing another decline for the s&p. we're keeping a very watchful eye on the presidential press conference with the cdc later on this hour. here's how we are seeing things shape up. the aussie section is -- session is pretty flat. treasury yields, continuing to push lower. up for 10th ofs 1%. a milk company is saying they
6:02 pm
are seeing positive demand for their is this in light of stockpiling measures in china. up.okyo, nikkei futures are a downside when it comes to u.s. futures. the bank of korea decision, seeing what kind of monetary policy impact it could have given that is now the center of the infections outside of china for the coronavirus. let's get the first word news. >> new delhi has seen its worst violence in almost 30 years. did you people killed in three days of crashes -- clashes between rival groups. the city's chief minister called on the prime minister to send in the army to calm the situation. the controversial law fast tracks citizenship for religious minorities from three neighboring countries that excludes muslims created the palestinian foreign minister has
6:03 pm
called donald trump these plan a surrender plan. he urged the eu to impose sanctions on israel if it goes ahead with plans to build 3500 new units on the west bank. he told the press association in geneva it would destroy any hope of peace. >> we discussed also the reaction by the international community regarding the release of the deal of the century. trump's plan. course, he called it a peace plan but it has nothing to do with peace. it is a surrender plan. >> the bank of japan has been asking major banks about their preparedness should the outbreak worsen. it is said to be well-placed with contingency plans including different office locations to prevent market related disruption. japan's biggest banks have been
6:04 pm
staggering shifts alone people to work from home. 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. >> thank you. the who says more new coronaviruses are being reported outside of china that insight for the first time. let's get straight to our china correspondent in beijing. pointhis signal a turning in china? the containment efforts are working but it could also be the natural progression of the epidemic. >> what we have seen over the last one to two weeks in china is a continued moderation of the infection rate. that has been seen as a positive
6:05 pm
by officials. the who is underscoring that point. the focus is shifting beyond china which remains the epicenter or this virus create the shift is focusing to other areas. is, 459y are saying cases reported outside of china and 412 within china. you still have globally more than 81,000 confirmed cases of the coronavirus. tragically, more than 2700 deaths. that focus is in europe as well. we saw yesterday in terms of increased numbers of it actions atitaly where we are looking three had 78 confirmed cases and 12 deaths in italy. in spain, we have people in lockdown at a hotel over concerns about a number of guests having the virus trade france, three more cases and one death create greece has reported its first case. germany says it could be the
6:06 pm
beginning of a coronavirus epidemic there. health officials are saying they are still trying to contain it in europe but they are warning european states they need to be dusting off their pandemic plans. >> we have seen south korea become a hot spot in asia. will they pull the trigger? >> it seems like this virus could prompt the ok to pull the trigger. a 25 basis point cut is possible later on today as the virus now threatens to undercut what was already a fragile recovery in south korea. the number of cases topping more than 1000 now. the death toll standing at 12 in the country. the number is expected to jump according to health officials. now they are testing the 9000 members of a religious group at the epicenter of the outbreak in the country. toanhunt has been issued
6:07 pm
find more than 200,000 of their members. a u.s. soldier also tested positive at the base there. the first u.s. service member to be infected with the coronavirus. jpmorgan is now saying when it comes to south korea, the number of infected cases could peek at 10,000. they are sending their -- citing their insurance teams model. we may suggest that the doj in japan also asking the major banks have prepared they are. as for any kind of outbreak, the intensified after mitsubishi said and into -- infected person visited one of their plant. in thailand, they say there is a chance a could be more widespread in the country and could arrive to the level three which is the highest in the country. the total number of cases in thailand is confirmed at 40.
6:08 pm
>> we have breaking news. budweiser is now reporting fourth-quarter net income of $45 million. the wrote off from asia-pacific unit. they are now estimating $285 billion in organic growth. when it comes to the final dividend per share, to dollar $.63. $2.63. >> just one of the companies coming under pressure with the coronavirus spread. it has been trading at a record low since the ipo. we are hearing that president xi jinping and other leaders have made personal contributions to the virus fund. unfortunately, they have not told us how much senior leaders have donated. that would be fascinating.
6:09 pm
this is another meeting that xi jinping has overseen and what he the attempt tof control the virus, it is still pretty positive in terms of the trends when it comes to keeping the virus and check. in terms of economic development, there is a lot of focus on getting this is his back into action. he says the economic development is picking up, we don't. he also said that the situation the provinces remains grim and complex. after they tried to wrap up production, there is a risk of a tick up again in infection rates and the epidemic. cautiouske he is being after he is singing the praises of their containment efforts. five out of eight early indicators are falling
6:10 pm
dramatically in february suggesting again the production has been crushed along with consumption as well because factories are still well below the capacity and transport links and the ability for people to move has been hindered. officials hope that will change over the next few weeks. that poses a question over whether we will see a tick up. that is the focus here in china. >> what about hong kong's budget handout? we saw the record deficit for the government there. >> the record they are forecasting for this coming fiscal year, this was a massive fiscal dose of 120 billion hong kong dollars of relief measures. you had a lot of giveaways. the low interest loans. tax rebates and perhaps the main feature that we were surprised about was a $10,000 cash handout for permanent residence above the age of 18. economists were quick to criticize this saying it is not likely it will spur growth
6:11 pm
created it is unlikely hong kong residents will go out and spend it. they're saying it's like a drop in the ocean for many while you could have used that amount to cure the injuries of a few it is just not targeted enough. this has been one of the most challenging and politically charged budgets. while it did give some perks for the hard-hit industries, bloomberg economics does not see prospects of a turnaround in the economy. perhaps the government think of that as well. they have downgraded the growth forecast in 2020 two a contraction of 1.5% red this could be an offset. >> thank you. our thanks to tom mackenzie in beijing. when it comes to the budweiser numbers, just for clarification that would be $285 million of organic revenue decline in january to february in china.
6:12 pm
this is also the time when we have seen the coronavirus hit the chinese economy. also saying they are cautious in south korea on the coronavirus outbreak. let's turn to more news. here in the u.s., president trump is expected to speak on the virus later this hour. officials look to ease concerns. but spring in our white house editor. we have seen a difference in tone like into classic concerns about the virus outbreak. president trump and his officials, more optimistic that this could be contained outside the u.s.. not so much when it comes to the cdc officials. is this a show of unity from both sides? >> they will try to do the messages straight. yesterday, the president and larry kudlow assured us that the virus is contained in the u.s.. while the cdc health official told us to expect the virus to
6:13 pm
spread in the u.s. and warned that americans daily lives could be dramatically impacted with school closings, day care closings, business meetings canceled her it tonight, i think the will try to can't down disparity between the science agencies and the political leaders created. to reassure that the virus poses little threat even if you catch it and walk us through the preparations the government is making. >> what are the main issues that would potentially create a problem in the u.s.? we heard there were issues with the testing kits for example. >> the cdc has publicly said there were problems with the test kits created there is apparently one reagent that is not working properly so the tests are producing bad results. they are try to sort that out. surveillance is a real issue.
6:14 pm
the disease is hard to detect unless you are severely ill. there are a number of people who can contract the virus and show no symptoms at all or maybe up to 14 days until the most severe symptoms start to appear. that causes trouble in the cdc surveillance system nationwide. they can also resemble other illnesses. it can look like the flu or a cold. they have a lot of trouble distinguishing between other illnesses and making sure that what they are dealing with is coronavirus. >> thank you so much. ahead of the presidential press conference with the cdc. you can catch president trump comments within the hour right here on the bloomberg. we're getting developing news constantly on the coronavirus outbreak outside of china. , an employee in japan confirming that a person
6:15 pm
has coronavirus. that's outside the diamond princess. we will get more on the rising number of cases in japan as well as in south korea which is now the center of new infections outside of china. we will be joined by a college of medicine professor. >> up next, how the virus concerns are playing out on the markets. this is bloomberg. ♪
6:16 pm
6:17 pm
no idea as to how that will fully play out for the half your time. a could be positive or negative for our business. our we can say is that sales are responding positively. what we can see on one side
6:18 pm
is of course an impact on the demand for services. at the same time, our services -- we do not see material impact so far in our operations. for the second half of this year, we know that the chinese government will -- you could argue they are already taking steps. therefore, we know from past history that -- that was some business executives speaking to bloomberg about the global coronavirus outbreak. -- we are joined by the great to have you with us. just happening, we are hearing
6:19 pm
from janet yellen speaking in michigan saying there are some risks but a sickly, the u.s. outlook remains good. you can see the live event happening in michigan. she also says there could be significant impact in europe and it is conceivable that the virus outbreak could throw the u.s. into recession. given the uncertainty surrounding the outbreak, doesn't make sense that we are now seeing paul back in the u.s. market that looked pretty complacent so far? >> we had the time when the virus first out. we had a pullback that we deficits it was being contained and markets took off again and got heated over the last two weeks or it than over the weekend, we have four things happen rate the g20 meeting were the policymakers did not pay any attention to the virus. then the spread of the virus. then the cdc alert. then we had the markets driven
6:20 pm
by systematic trading. things in today's markets get adjusted quickly and discounted quickly. we have seen that the market came down hard and fast. two days and a lot of things sold off and now we're trying to decide which way should we should go. >> i wonder what is happening to the tech sector. this is already crowded sector and they are so exposed to supply chains and asia. >> you saw in the semiconductor space the exposure pull it down by 10%. the broader growth particularly software has benefited from two factors which i don't think people have captured. the first is their exposure to the sg. if you look at the indices and etf, software is the single biggest sector are it they are getting a lot from the flows into that which is huge. secondly, they benefit from a collapse in long industry.
6:21 pm
you have had a couple of factors which have hidden a little bit which support the growth sector. what we are seeing over the last couple days is not the stoxx have pullback which is healthy red overall, the pullback has been healthy and now you are being presented again with a laundry list of rings to buy you believe we are going to get through this virus and its want to have a limited impact on q1 growth and going forward it will not. the opportunity to rebuild the growth positions in things like emerging markets, values and cyclical sectors of the market are back again. >> we need to see more of a pullback before we start talking about bargain-hunting. let's take a look at the massive outperformance of u.s. markets compared to the rest of the world. ever since the coronavirus story began, we have been talking that 2020 is another year for american exceptionalism. where do investors go when the dollar remains pretty strong and
6:22 pm
potentially if we get another trump victory in the white u.s. riskit still assets above everything else? >> it certainly was for the first six weeks of the year. over the last week or so, the u.s. has underperformed. china has been the best market in the world or one of the best in the past month which suggests that as things calm in the epicenter is china gets back to work, people are getting more constructive with china. that could be a template for your question about how we move and whether we get to the u.s. markets and they start to outperform. i think we need to see for that to happen is they v shaped recovery. we had a solid growth recovery starting in late q4 early this year. the virus has allowed people who doubted that recovery to sell those types of assets quite hard. now, most of the segments are oversold.
6:23 pm
cyclical,k at transports, emerging markets, financials they are all oversold in safety assets, gold and treasuries are way overbought. if we do get a v and i think it is likely because of what you are talking about, the easing cycle from last are kicking in, tremendous months of liquidity available around the world. iswe do get a v and it concentrated outside the u.s., as people get concerned by u.s. politics in q2 and q3, i think you could have actually quite a surprising move into the non-us markets. the newe hearing from zealand finance minister saying that new zealand economy is in a strong position to response to the virus but it will have a serious short-term impact on the economy. in terms of planning for how to hedge against the potential worst-case scenario of the
6:24 pm
coronavirus outcome, what are the markets you look at and think we can seek shelter there? like new zealand and australia are so reliant on china for future growth they are places where you want to be. >> i think it's tricky to find hedges in part because the systematic trading the dominates markets on a day-to-day basis in the current environment moves very fast. today, i think bonds, long-duration u.s. treasuries are one of the most risky assets out there. very overbought. negative yieldless we haven't seen since the 70's. that market is the most expensive market in the world, everybody owns it because it has been the place to be for a decade worried.
6:25 pm
i think one should look at the things that have been sold off aggressively and that's where i think you can start your shopping list. >> thank you so much for joining us. we will get lots more on the coronavirus starting -- story and the action on the markets coming up next read this is bloomberg. ♪
6:26 pm
6:27 pm
another terrible hand over from the u.s. overnight. ultimately, the s&p 500 giving up gains and making a five day declined to 8%. a bit of a bounce back when it comes to trading in this part of the world. often markets are up by it a quarter of a percent. we're also seeing a bit of positivity when it comes to trading in tokyo and u.s. futures.
6:28 pm
awaitingad, we are president trump and the cdc joint conference on the cdc out -- coronavirus outbreak. stay with us. ♪ good morning!
6:29 pm
oh no, here comes the neighbor probably to brag about how amazing his xfinity customer service is. i'm mike, i'm so busy. good thing xfinity has two-hour appointment windows. they have night and weekend appointments too. he's here. bill? karolyn? nope! no, just a couple of rocks. download the my account app to manage your appointments making today's xfinity customer service simple, easy, awesome. i'll pass.
6:30 pm
>> let's go live to the white house where president trump is holding a press conference on the coronavirus. we are awaiting the press conference with president trump expected to appear cdc officials as well as secretary of health. the secretary has been heading the task force at the white house to deal with the coronavirus outbreak here in the u.s.. we have at least 27 confirmed cases in the united states. who has said we have seen more new cases outside of china than inside of china.
6:31 pm
we are seeing officials coming out to brief the press about the coronavirus outbreak and how the u.s. has been dealing with the infections. we have seen some different cdc healthom officials and the trump administration officials react with president trump himself saying that this outbreak was largely contained outside of the united states although health officials at the cdc have warned that the united states should prepare for the possibility of a coronavirus outbreak saying this could be very bad. testing has become crucial for these cases. we have seen those tests have resulted in inconclusive results. it has been quite the challenge for authorities around the world to test for this virus.
6:32 pm
same issues here in the u.s.. >> questions about messaging also. whether it is risky and dangerous to say we have it under control when we are seeing an escalation of cases and places like south korea where we know the test is very high in terms of number of people who have tested versus number of people tested in japan. we know that in china, it is the health care system that has been stretched to the max in terms of dealing with the coronavirus cases on top of just ordinary and sometimes very serious health cases as well. areof these questions facing health care officials and authorities in the u.s.. they are preparing given the world health organization has given the escalation of cases we are seeing more now outside of china than within china. it will be very difficult to keep the disease contained and away from the united states.
6:33 pm
it i suppose part of today's joint conference is really to get the idea of a joint messaging that officials and president trump are on the same page. let's get more on the cases we have seen in south korea while we await the presidential joint press conference with the cdc. we know that the numbers swelled this week to over a thousand. warning that outbreak could go on for years. we are joined by a professor of medicine. great to have you. we were talking about the issue of testing and how problematic it has been. you have to wonder about whether countries like indonesia, cambodia, is it that they don't have any cases or no capacity for testing? south korea, we know that they have tested comparitively a lot more patience than other parts of the world, is that one reason why we are seeing more cases confirmed? >> undoubtedly so.
6:34 pm
south koreans have approached this very aggressively and the criteria for testing is not just travel abroad but even cold symptoms are being tested. it is very aggressive. that hashurch group been primarily responsible for the largest cluster. anybody having to do with the church group is being tested. anybody taking part of their meeting. the containment measures that have not been taken in terms of quarantine and cordoning off parts of where we are seeing the infection, and a going to be effective or is there a sense that more could have been done question mark there is criticism that perhaps the south korean government should have been putting a ban on the mass gatherings of more than 1000 people before this happened. >> before the gatherings, we
6:35 pm
should talk about or at least go back and look at the border with china. besides coming in from china were not canceled. the medical experts in korea, the infectious diseases society and korean medical association and the cdc recommended this early on. but for other reasons not just medical reasons. the flights coming in from china were not canceled. later, the cluster was a major screw that has a church in wuhan, china and had members visiting there and coming here. greatroup caused a cluster outbreak in take you. hadlocal city has not adequate medical resources to deal with this. but people are not admitted quarantined at home.
6:36 pm
this is very regrettable. very quickly, we haven't seen the peak of this outbreak. it is still going up. i do have confidence that the cdc for korea has done a wonderful job. the korean people, there is a lot of grumbling and unhappiness that there is tremendous cooperation if the government says don't do something, they do it. if the government says wear a mask, they wear masks. next is the government doing enough? we had an outbreak in 2015 that killed 38 people. why is south korea becoming another hot spot? >> i think it has to do with the decision made because china is a very important trade partner. i am a medical doctor so i am not free to comment on that but -- >> let me interrupt you. president trump is now approaching the podium and have to listen and.
6:37 pm
my deepesto extend condolences to the victims and families in milwaukee, wisconsin. earlier today, a wicked murderer opened fire at a molson coors brewing company plant taking the lives of five people. a number of people were wounded. some ugly would. our hearts break for them and their loved ones. we send our condolences, we will be with them. it is a terrible thing. our hearts go out to the people of wisconsin. and to the families. thank you very much. i have just received another briefing from a great group of virused people on the that is going around to various parts of the world. we have through some very good early decisions, decisions that
6:38 pm
were ridiculed at the beginning, we closed up our borders to flights coming in from certain areas. areas that were hit by the coronavirus and hit pretty hard. we did it very early. colette of people thought we should not do it that early and it turned out to be a good thing. the number one priority from our standpoint is the health and safety of the american people. that is how i viewed it when i made the decision. because of all we have done, the risk to the american people remains very low. we have the greatest experts in the world right here read people who are called upon to other countries when things like this happen. we are ready to adapt and we are ready to do will ever we have to -- whatever we have to if the disease spreads. know, the level
6:39 pm
that we have had in our country is very low and those people are getting better or we think that almost in all cases, we have a total of 15. we took in some from japan. you heard about that because they are american citizens. they are in quarantine. they are getting better also. we thought we have an obligation to do that. it could have been as many as 42. we thought that it was just an obligation that we had. we could have left them at it would have been very bad. recovering. of the 15 people, the original 15 as i call them, eight of them have returned to their homes to stay in their homes until they are fully recovered. one is in the hospital and five have full of recovered.
6:40 pm
one is we think in pretty good shape. in between hospital and going home. andave a total of 15 people they are in the process of recovering with some already having fully recovered. we started out by looking at certain things. we have been working with the hill very carefully for a strongly rooted i think we have very good bipartisan spirit for money. we asked for $2.5 billion and that's a lot. schumercrats senator wants us to have much more than that. normally i would say we will take it. to give more, we will do more. we will spend whatever is appropriate. hopefully, we will not have to spend so much because you think we have done a great job to keeping it down to a minimum.
6:41 pm
again, we have had tremendous success beyond what people would have thought. at the same time, you have outbreaks in some countries. italy and various countries are having some difficulties. china, you know about where it started. i started -- i spoke with president xi jinping and he is working very hard. if you can count on the reports coming out of china, that spread has gone down quite a bit. the interaction seems to have gone down for the last two days. as opposed to getting larger, it has gotten smaller. with respect to the money that is being negotiated, they can do whatever they want. a half.equesting to
6:42 pm
some republicans would like to get for an democrats would like a .5 and we will set aside whatever. we are bringing in a highly regarded specialist tomorrow who works in the state department. a tremendously talented in doing this. i want you to understand something that shocked me when i saw it. i spoke with a doctor on this amazed and illy think most people are amazed to hear it. the flu in our country kills between 29,000 people and 69,000 people per year. that was shocking to me. so far if you look at what we have with the 15 people and their recovery, one is pretty sick. hopefully, will recover. the others are in great shape. think of that.
6:43 pm
69,000 over the last 10 years we have lost 360,000 people create these are people who have died from the flu. what we call the flu. did you get your flu shot? that is something. citizenstopped non-us coming into the united states from china. that was done early on. we are screening people and we screening them from infected arias bank -- areas. we have quarantined those infected and those at risk. we have great quarantine facilities. we're rapidly developing vaccine and the professionals can speak to you about that. the vaccine is coming along well. speaking to the doctors, we think this is something we can develop fairly rapidly a vaccine for the future. with ourinate
6:44 pm
partners. we have great relationships with all of the countries that we are talking about. a fairly large number of countries. some it is one person and many countries have no problem whatsoever. we will see what happens. we are very very ready for this or anything whether it is going to be a breakout of larger proportions or whether or not we are at the very low level. we want to keep it that way. we are at the low level, as we get better we take them off the list. we are going to be pretty soon at only five people and we could be a just one or two people over a short time. we have had very good luck. is a highlyi guess respected great place. they did a study a conference of, the countries best and worst prepared for an epidemic. united states, we are rated
6:45 pm
number one. we are number one for being prepared. this is a list of different countries. that's a good job. this is a list of the different countries. the united states is rated number one. most prepared. kingdom, netherlands, australia, canada, thailand, sweden, denmark, finland. this is a list of the best rated countries in the world. by jon hopkins. we are doing something else that is important. he is very good on health care and we really followed him very closely a lot of states do when mike was governor mike pence of indiana. they have established great health care. they have a great system there. a system that a lot of the other states have looked to. and changed their systems they
6:46 pm
wanted to base it on the indiana system. it's very good. he is really very expert at the field. i'm going to be announcing exactly right now that i'm going to be putting our vice president, mike pence in charge and mike will be working with the professionals, doctors and everybody else who is working. the team's brilliant i spent a lot of time with the team over the last couple of weeks but they are totally brilliant and we are doing really well and mike is going to be in charge and he will report back to me. he has a certain talent for this and i'm budget ask mike pence to say a few words read. >> thank you, mr. president. president trump has made clear from the first days of this administration we have no higher priority than a safety, security, health and well-being of the american people. from the first word of the outbreak of the coronavirus, the
6:47 pm
president took unprecedented steps to protect the american people from the spread of this disease worried. the establishment of travel restrictions, aggressive quarantine effort of americans returning, declaration of a public health emergency and establishing the white house corona task force are all reflective of the urgency that the president has brought to a whole of government approach. as a former governor from the case where the first mers emerged in 2014, i know full well the importance of presidential leadership. the importance of administration leadership, and the vital role of partnership of state and local government and health authorities in responding to potential threat and dangerous infectious diseases. president tod mr.
6:48 pm
serving in this role of bringing together all of the members of the corona task force that you have established. the hhs, cdc, department of transportation and state. this team has been at your direction mr. president meeting everyday since it was established. my role will be to continue to bring that team together to bring to the president the best options for action to see to the safety and well-being of the american people. i will also continue to reach out to governors, state and local officials. in recent days, the white house met with over 40 state, county and health responds about how to to the potential threat of the coronavirus. we will be working with them to make sure they have the
6:49 pm
resources to be able to respond and as the president said, we will be adding additional personnel here at the white house to support our efforts on the president's behalf. we will also be working with members of congress to ensure the resources are available for the whole of government response and we will be working very closely with secretaries are in his team that have done an outstanding job communicating to the public to ensure the american people have the best information on ways to protect themselves and their families and also that the public has the most timely information on the potential threat to the american people. stir president, -- mr. president, as we have been briefed, while the threat to the american public remains low, the spread of the coronavirus, you have directed this team to take all steps necessary to continue to ensure the health and well-being of the american people. and the people of this country
6:50 pm
can be confident that under your leadership, we will continue to bring full resources of the ineral government coordination with our state and local partners to see to the health and well-being and the effective response of the coronavirus here in the united states of america. with that, the president has asked me to recognize the secretary of health and human services alex azar and also the director of the cdc for remarks. thank you, mr. vice president. thank you mr. president for gathering your health experts here today. i want to say, i could not be more delighted that you have asked the vice president, my friend and colleague to lead this whole of government theoach with us under emergent support function number eight. as of today, we have 15 cases of
6:51 pm
covid-19 detected in the united states. with only one new case detected in the last two weeks for it we have three cases among americans repatriated from wuhan, china and 42 cases among americans repatriated stuck on the diamond princess in japan. the president's early and decisive actions included travel restrictions have succeeded in buying is incredibly valuable time. this is helped us contain the spread of the virus, handle the cases we have and prepare for the possibility that we will need to mitigate a broader spread of infections in the united states. the president's actions taken with the strong support of his scientific advisors have proven to be appropriate, wise and well calibrated to the situation. we are grateful for the hard workers, health-care first responders, communities, state and local leaders have put into the response so far. because of this hard work and
6:52 pm
the president's leadership, the immediate risk to the american public has been and continues to be low. our containment strategy has been working. what everyoneme, of our experts and leaders have been saying for more than a month now remains true. the degree of risk has the potential to change quickly and we can expect to see more cases in the united states. this is why we have been reminding the american public and our state, local and private sector partners that they should be aware of what a broader response look like. thecdc has recommended that american public and especially state and local governments, businesses and or -- other organizations should refresh themselves on how they would respond in the event that the situation worsens. we are encouraging americans to learn what future steps might be necessary to keep themselves and their communities safe. knowing these steps now can help the risk to you and your community low. americans can find useful
6:53 pm
cdc.gov/code 19. -- covid-19. we're working with partners to educate them about preparedness. finally, we have begun working with congress to secure the funding that we need. there are five major priorities in the white house request to congress that was made on monday. these priorities are. first, expanding our surveillance network. second, support for state and local governments work. third and fourth, development of therapeutics and vaccines. purchase ofture and personal protective equipment like downs unmasks. coordinatingd to updates. we have had our top public health leaders like those joining me here today speaking to the media many times per day to inform the american public. the trump administration is
6:54 pm
going to continue to be aggressively transparent keeping the american people and the media present situation and what everyone can do. with that, i'm going to hand things over. the doctor is the senior career official at the cdc. the principal deputy director and over 30 year career at the cdc in public health and is a member of the u.s. public health service commissioned corps. >> thank you so much. know, this has been a difficult and challenging time. our hearts go out to the individuals who have been directly affected by the virus. and to all of those who have been working tirelessly in responding to it or it our aggressive containment strategy here in the united states has been working. is responsible for the low levels of cases that we have so far. however, we do expect more cases.
6:55 pm
this is a good time to prepare. as you heard, this is the perfect time for businesses, health care systems, universities and schools to look at their pandemic preparedness plans. dust them off and make sure they are ready. we have lots more information on the cdc website on how to do that. it is also a really good time for the american public to prepare and for you to know what this means for you. the coronavirus that we are talking about is a respiratory virus. it is spread in a similar way to the common cold or to influenza. it is spread through coughs and sneezes. everyday measures that we tell people to do the flu are important here. covering your cough, staying home when you are sick, washing her hands. tried and true, not very
6:56 pm
exciting measures but really important ways that you can prevent the spread of respiratory viruses. the trajectory of what we are looking at over the weeks and months ahead is very uncertain. many of the steps that we have taken over the past 15 years to prepare for pandemic influenza and our experience going through the 2009 h1n1 pandemic of influenza remind us of the kinds of steps that our health-care system, our businesses, our communities and schools need to take. we are in this together all of government, the public and private sector and the cdc wants to make sure you have the best information available every day. thank you. i want to give you a very quick take -- update.
6:57 pm
-- athe director of the the nih. about the countermeasures developed in terms of vaccines and therapeutics. i have told this audience that we had a number of vaccine candidates and one prototype to give you a feel for the timeframe of the vaccine and what the impact might be now and in subsequent years. i told you we would have a vaccine that we would be putting into trials to see if it is safe. and if it induces the response that you would predict would be protected in about three months. i think it will be less than that. probably closer to two months creating that would then take three months to determine if it is safe. then that gives us six months. then you graduate from a trial which is phase 145 people to a trial that involves hundreds if not low thousands of people to determine efficacy.
6:58 pm
at the earliest, and efficacy trial would take an additional six to eight months. although this is the fastest we have ever gone, from a sequence of a virus to a trial, it still would not be any applicable to the epidemic unless we wait about one year to one year and a half. that means two things. number one, the answer to containing is public health measures three and we cannot rely on a vaccine. virus which wes have every reason to believe it is quite conceivable that it will happen will go beyond just a season and come back and recycle next year, if that is the case, we hope to have a vaccine. finally and briefly, therapeutics. there are a number of antiviral drugs that are being tested. a few days ago, we initiated a randomized controlled trial of a drug which has antiviral
6:59 pm
activity in vitro in an animal model. the good news is that it is a trial that is randomized to either placebo or standard of care and drug and standard of care which means that we will reasonably soon, whether it works and if it does, we will then have an effective therapy to distribute. thank you. much, mr.ou very president. we have just come from india. you to be medical team behind you for keeping america safe. here as u.s.o from relations are concerned? . the prime minister, what is the
7:00 pm
future? just got trump: i back. it was a long flight. in some incredible country. we were treated very well. it.eally enjoyed a lot of tremendous progress in terms of our relationship with india. we will be doing a lot of business. they are sending millions of dollars to the united states. i would rather talk about this right now. the cdc believes it is in evitable the virus will spread to the united states. do you agree with that assessment? president trump: i don't think it is inevitable. probably will. it could be at a small or larger level. whatever happens, we are prepared. we have the best people in the world. we have the best prepared
7:01 pm
people, the best in the world. congress is willing to give us much more than we are asking for. nice for a change. we are totally ready and able. that is the term we use. we have, it's going to be well under control. it may get a little bigger. it may not get bigger at all. we will see. regardless we are totally prepared. traveltalked about restrictions. the virusint as spreads, are you planning on -- president trump: i am the president of the united states. not other countries. other countries are very respected in terms of what we are talking about. i want to be responsible for this country. if it means placing strong situation on the border so people can't come in from a country that is infected, we are
7:02 pm
doing that. we have done it with numerous countries. we have to focus on this country. care ors are not taking are doing it incorrectly, we are doing -- dealing with world health. the cdc does help other countries and give them recommendations. they are working on their countries. we are working on our country. it has worked out very well. >> just to follow up. are you considering restricting travel to and from south korea, italy, and other countries? president trump: we may do that. it is not the right time. we are checking people as they come through for the problem. the problem we are dealing with. we are checking a lot of people. south korea has been hit hard. china, it is obvious. the numbers seem to be leveling off in china, which is good news.
7:03 pm
theye white house denied are going to appoint a czar about the coronavirus. they did not think one was necessary. you've been downplaying this. why are you selecting the vice president? president trump: he's in the administration. i'm having everybody report to mike. mike has been very good and adapt. they look at the indiana model and it has been a great success. a tremendous model in terms of health care. this is an offshoot of that. i don't view mike as a czar. he is part of the administration. mike will report to me. they will be reporting in some cases to both. going to goading -- both meetings quite a bit. we have done an extraordinary job when you look at a country the size with so many people, we are number one for people coming into a country by far.
7:04 pm
we have a total of 15 cases. many of which, within a day, most of them are fully recovered. it's really an impressive mark. we did take in 40 people that were americans and they are recovering. we brought them in. we felt we had an obligation to american citizens outside of the country trying to get back in. >> the stock market has taken a big hit. what can you do about that and is the cdc right that the spread is inevitable? will you be dealing with stockmarket issues for some time to come? president trump:president trump: the stock market is something i know quite a lot about. they look at the people you watched debating and say if there is a possibility that can happen, it takes a hit because of that. it took a hit because of this. i understand that because of supply chains and people coming
7:05 pm
in. .he stock market will recover the economy is very strong. the consumer is the strongest it has ever been. consumers are incredible. that is why we are doing well and other countries are not. very strong. are very powerful economically. presentedu been quarantined cities like we signed china? what would have to happen? we have plansp: on a large-scale should we need that. we are working with every state and we do have plans on a larger scale. we don't think we will need it. you have to be prepared. again congress is talking about funding. we are getting far more than what we asked for. the best thing to do is to take it. >> how much are you willing to give congress? president trump: we will see.
7:06 pm
we will take care of states. thatve hospitals in stakes make rooms available. they have quarantined areas where you can keep people safe. we are working really well with states. my attitude, if congress wants to give us the money, it was not easy for the wall. if they want to give us the money, we will take some money and do a good job with it. be gettingmericans masks and other protective equipment? what is the u.s. doing to produced -- to boost production? president trump: we have ordered a lot of it. we may not need it. we are looking at worst case scenario, we are going to be set. i don't think we will be near that. i really don't believe that. our borders are very controlled. the flights from certain areas are very controlled. i don't think we will be near
7:07 pm
that. >> back to the stock market. travel related stocks have been hammered. what would you say to americans who are looking forward to the summer saying to themselves, should i make myself a summer plan? president trump: hopefully they will be able to do that. we hope it will be in good shape by that time. they have to remain flexible. i would say travel related companies, they would be hurt. at the same time, this is going to end. hopefully sooner rather than later. the business they lost will be picked up at a letter day. right now they are not going to be going to china. they aren't going to be going to certain countries where the problem is greater than it is in the united states. it's going to keep people home. they are going to travel to places we have. we have the greatest, the
7:08 pm
greatest tourism country in the world. instead of leaving, they will stay here. when you have 15 people and the 15, it's going to be close to zero in a couple of days. that is a pretty good job we have done. what is your response to speaker pelosi who said euro don't know what you're talking about on the coronavirus? president trump: i think speaker pelosi is incompetent. she lost the congress once. she lifted my poll numbers up 10 points. i never thought i would see that so quickly and easily. i'm leaving everybody. we are doing great. it's almost unfair if you think about it. she is incompetent. she's not thinking about the country. instead of a statement like that, where i have been beating her routinely, in studying --
7:09 pm
instead of a statement like that, we should work together. we have a problem. i hope it will be a little problem. we have to work together. instead she wants to do this. schumer goes after me and says the president only asked $2.5 billion. he should have $8.5 billion. usually we have to take less. we should be working together. he should not make statements like that. it is bad for the country. nancy pelosi should go back to her district. if you look at the percentage, it was one of the finest in the world. i'm just saying, we should be working together. she's trying to create a panic. there's no reason to panic. these professionals behind me and over here and over there, back here, some conference rooms, i left a group of 45 people, the most talented in the world.
7:10 pm
parts of the world are asking us can they partake. nancy pelosi -- she knows it's not true. all they are trying to do is get a political advantage. this is not about political advantage. they should not say this is terrible. president trump is not asking for enough money. how stupid. we will take more money. some republicans think we should have more money. that's ok. they should not demean the people on the stage who are the finest in the world. they are demeaning the greatest health care professionals. people that do exactly what we are talking about. campaign today sued the new york times for an opinion. is it your contention if people have an opinion contrary to yours they should be sued? president trump: when they get the opinion wrong.
7:11 pm
they've got a lot wrong. we will see. let that work its way through the courts. it is beyond an opinion. that is not an opinion. they did a bad thing. there will be more coming. >> do you expect -- president trump: i hope so. shinzo abe is a friend of mine. i hope it's going to be in good shape. you have a number of people in japan who have been infected. i hear they are doing a professional job, which does not surprise me. i know japan very well. they are going to handle it well. it is a little tight. billions of dollars building a beautiful venue. your prime minister is very proud of it. i hope it will be fine. we hope it will. the doctor of the cdc talked
7:12 pm
about dusting off repaired and his plans. do you feel u.s. schools should be preparing for a coronavirus spread? president trump: i would think so, yes. every aspect of our society should be prepared. i don't think it is going to come to that with the fact we are going down, not up. i think schools should be preparing and getting ready just in case. the words are just in case. we don't think we are going to be close. if you look at some countries, they are starting to go in the other direction. this will and. you look at flu season. i said 26,000 people. never heard of a number like that. people die every year
7:13 pm
from the flu. think of that. it's incredible. so far the results of all of this that everybody is reading about. part of it is you want to keep it the way it is. you don't want panic. there is no reason to panic. when i mentioned the flu, i asked of the doctors, is this like the flu? people die from the flu. this is unusual. it is a little bit different. in some ways it is easier. some ways it is tougher. we have it so well under control. we have done a good job. you mentioned the stock market. the dow jones dropped more than 2000 points. are you suggesting that was overblown? the financialp: markets are upset when they look
7:14 pm
at the democrats standing on the stage making. of themselves. a possibility. who knows what will happen. i think we are going to win by a lot. when they look at the statements made by the people stand behind those podiums, i think it does have an effect. i think it did have to do with the coronavirus, you can add a selloff to what they are saying. they are seeing the potential -- i think we are going to win. i feel confident. we've done everything and much more and what we have done is incredible. regulation cuts, rebuilding the military, choice and accountability. all of the things we have done. protecting the second amendment. the second amendment, they are going to destroy the second amendment. people say, this is not good. i really believe that is a factor.
7:15 pm
this is what we are talking about, the virus. that is what we are talking about. ofo believe in terms foxbusiness, i believe that is a factor. after i win the election, the stock market is going to boom like it never has before. up like ater it went rocket ship. >> at what point would you consider lifting travel restrictions? president trump:president trump: when we don't have a problem. a decision very early not to take people from a certain area. we would be talking about many more people infected. i took a lot of heat. some people called me racist because i made the decision. we had never done that as a country. it was a bold decision.
7:16 pm
it turned out to be a good decision. i was criticized by the democrats because i made that decision. we have to work together. we can't see bad things, especially when we have the best team in the world. we really gave it an early start. we gave it an early start. >> you talked about how these professionals are necessary. we can getrump: money. we know all the good people. it was a question i asked before. some of the people have not been used for many years. if we need them, we can get them quickly. rather than spend the money. i don't like having thousands of people around when you don't need them. we can get them back weekly. we are bringing people in tomorrow that are already in
7:17 pm
this great government behalf. and very specifically for this. we can build up very quickly. we have done that. staff, usingat mike, i'm doing that because he is in the administration. he's very good at doing what he does as it relates to this -- far youresident, so testingration is only less than 500 people. health officials are questioning whether that is enough. planning to test more people? president trump. are finding very little problem. very little problem. you treat this like the flu. i might ask one of the doctors to explain it. you want to wash your hands a lot. if you are not feeling well, stay inside.
7:18 pm
quarantine yourself. don't go outside. there are certain steps you can take we won't even be necessary. in many cases when you catch this, you don't even know there is a problem. sometimes they get the sniffles or something where they are not feeling right. sometimes they feel really bad. that's like the flu. like the regular flu that we have flu shots for. we will have a flu shot for this in a quick manner. your acting ago director was in this room this coming year. he said it was 3%. we talked about the effects of the coronavirus on the supply chain and they have financial market. are you confident you can see that kind of economic growth? president trump: we will have low unemployment.
7:19 pm
theadministration is at lowest average unemployment of any administration in history. the numbers are very low. see what this does in terms of gdp. that could affect it. that is irrelevant compared to what we are talking about. safety number one. this will have an impact on gdp. we are still doing great. can't tell you what has an impact, boeing. how did that happen? i think that took away a half a point, it's a massive company. we have the general motors strike. that was a big impact on gdp. of course we are paying interest rates. i disagree with the head of the fed. i am not happy with what that is . president obama did not have near the numbers. he was paying zero. we are paying interest. it's more conservative.
7:20 pm
people that put their money away are getting a return as opposed to not getting anything. we are the greatest of them all. we should pay the lowest interest rates. when other countries are paying negative rates, i mean, they borrow money, they get paid. who heard of this? we don't do that. i disagree with the fed. the fed has made a terrible mistake. it would have made a difference. done, we willhave be at 28,000. we are going to crack 30,000. we've had increases like nobody has seen before. we are doing well. we have to watch, even despite the 2000 points. it is very little compared to what we've gotten up. we will be watching it closely. we have been hurt by general badly and boeing and very
7:21 pm
by our own federal reserve, who has created a very strong dollar. it makes it harder to do business outside of this country. >> thank you. a number of your supporters have embraced these theories that the cdc may be exaggerating the threat to her too politically. rush limbaugh said this has been advanced to weaponize the virus against you. president trump: i would like it to stop. people know when chuck schumer is upset, he did the same thing with a couple of trade deals that are phenomenal. he did not even know we were going to make a deal. what did you think of the deal with china? i don't like it. he talked about tariffs.
7:22 pm
he took the tariffs off. he did not know the deal. that is a natural thing to say. when you are talking about something like this, we have to be on the same team. this is important. the evidenceeen the cdc is trying to hurt you? no.ident trump: they've been working well together. they really are. they are professional. they want us to go away. they want to do it with little disruption. i see the way they are working. theys in the other room, are incredible people. i don't see that at all. >> thank you, mr. president. thank you, mr. president. you are minimizing the danger of the virus. are you telling the americans
7:23 pm
not to change behavior? president trump: i do it a lot anyway. wash your hands. stay clean. you don't have to grab every handrail unless you have to. certain things you do when you have the flu. viewed this as the flu. when somebody sneezes, i bailout as much as possible. i had a man come up to me a week ago. i've not seen him in a long time. i said, how are you doing. he hugs me. i said, are you well. he said no. [laughter] i have the worst fever. he's hugging and kissing me. i said excuse me and i started washing my hands. you have to do that. you treat this like you treat the flu. so nice of you to say thank you. give me a nice question. don't ruin it.
7:24 pm
don't ruin it with a bad question. i want to talk 2014. you said you wanted a full travel ban. you said obama was a stubborn dope not for doing it. you said it was a total joke to appoint somebody to lead with zero experience in the medical field. with whathat square you are doing now? president trump: this is a different problem than ebola. they made a lot of progress on that one. with ebola we were talking about it, you disintegrated. that was it. this one is different. much different. this is the flu. this is like the flu. this is a different situation. we are working on a bowler right now. we are working on certain areas of the congo. it is caused by the fact they have war and people can't get
7:25 pm
there. we can treat it. at that time it was infectious and you could not treat it. nobody had heard of anything like this. much different situation. >> in the last couple of minutes you have disputed some of what the officials have said about the risk of coronavirus. do you trust your health officials? president trump: they've said it could be worse. i don't think it is inevitable. i think we are doing a really good job in terms of maintaining borders and letting people in and checking people and also it is one reason i am here today getting the word out so people now. i don't think it is inevitable. there's a chance it could get worse. it could get substantially worse.
7:26 pm
nothing is inevitable. >> brazil has its first case. you have many americans in brazil for carnival. what are the procedures and practices you plan to implement? president trump: we've gotten strong from people coming in from brazil. only one case. we deal with brazil very well. the president is a good friend of mine. make brazil great again. that is what he ran on. i know you're thrilled to hear that. we are working with brazil. we have much worse instances than brazil. you have bitterly and other countries where they have more than one person. one person in brazil. italy is a deeper problem.
7:27 pm
we are checking people coming in very strongly. we may cut that off. cut certaint we may additional countries off like we've had to do with china. we hope we can open it up to china and we hope the numbers onve been getting are true china where it has leveled off and started to go down. sometime that is going to happen. >> you said repeatedly you think the government is prepared. you are ready for this. do you think the secretary's doing such a great job, why did you make a change and put mike pence in charge of the response? issident trump: i think he doing a fantastic job. he has many other things. we are working on many things together. if you look at his schedule, drug prices, i think it is the most complicated job we have in government. i want him to focus on that.
7:28 pm
mike is really good at it. they are going to work together. they are both in the administration. it really works. this is not going out and getting somebody that has never been in the administration. something ifo good about. i don't want to scare the horses. i have talented people. i want to get to china. at the beginning of this outbreak, the communist party covered it up. consensus ofeneral everyone. how can you legitimately trust regime to communist be forthcoming and forthright? himident trump: i speak to
7:29 pm
and he's working so hard on this problem. he is working so hard. they are very tough and smart. it is a significant group, very talented people. people. calling up our we are dealing with them. we are giving them advice. we have them over there also. we have people making up that group. he's working very hard. it would be easy to say it doesn't matter. i can tell you he's working. i had a long talk with him. he's working really hard. he wanted to go away from china. he wants to get back to business as usual. flu, theg about the flu has a fatality rate of .1%.
7:30 pm
we don't knowp: what it is. the flu is higher than that. it is going to spread. does that worry you? president trump: we are ready for it. it is what it is. we are prepared. we have the greatest people in the world who are ready. we hope it doesn't spread. there is a chance it won't. at what a question of level. we've done a great job. when you have the whole world coming in and the 15 people are better, that is pretty good. we will do one more. go ahead. there have been many cases of price gouging on the sales of medical equipment, masks. should the government investigate that? president trump: if you tell me
7:31 pm
that is happening, we will investigate. we don't want that. go ahead. >> are you working with china right now? yes.dent trump: we just did the biggest trade deal in history. them. two of the biggest in history. ae relationship with china is good one. i can tell you again president xi is working hard. he wants the problem solved. thank you. i'm going to leave you behind to answer questions. >> are you going to do this more often? >> you've been watching president trump giving a conference on the coronavirus outbreak and efforts to contain the spread. interesting he keeps downplaying the outbreak, comparing it to the common flu. at the same time he says he has plans to set up quarantines on a
7:32 pm
larger scale if needed. he also said he won't loosen travel restrictions on china. deniedinistration had those reports that he would be naming a czar when it comes to this response on the outbreak. you have it now, mike pence will be in charge of the virus response. and the secretary of health said the degree of the virus risk has potential to change quickly and i believe one of the key points made came from dr. anthony found she sang you can to ally on a vaccine over the next several months. clearly contradicting president trump's optimistic tone. conflicting of tones coming from these different officials.
7:33 pm
investors not liking what they heard. like, we're seems just getting started in the asian session, you see the reaction when it comes to futures and the treasury and bond markets that may be this is the point where investors don't feel great about risk assets in the u.s. it ended up being a wide-ranging press conference. the president taking questions. he said they were three months away from safety and efficacy trials and as we know he said it will not be ready in time for this season if there is another season of coronavirus. certainly that is not something we should expect. we also had more details on congress. one aspect was the development
7:34 pm
ofvaccines, the purchases masks, and working with states. let's take a look at the market reaction. u.s. futures.n across financial markets, we did see fluctuation throughout the entirety of the press conference and japanese equities are falling for fourth day. the nikkei 225 is testing its 200 day moving average. bouncing around throughout the press conference. currently the dollar is weaker versus the japanese yen. we do see a very slight haven pushing yields down to -10 basis points. korea is trading and of course we are waiting on the decision.
7:35 pm
investors are on edge. is seeing a bit of a rebound now. this after the kospi did fall to the lowest level since december yesterday. looking ahead to that decision, australian stocks lower. falling for a fifth day. kiwi stocks are moving to the upside. really a roller coaster ride. s&p 500 futures were down 1%. now .2%. this after five days of losses in the united states, the longest streak since august. let's get you a look at the markets because we have seen the major movement in the area. particularly what comes to mind is the 10 year, following below 1.3%. now trading above 133. the u.s. ten-year unchanged.
7:36 pm
the aussie dollar is rebounding after falling overnight to a 11 year low. and once again the yuan trading on the weaker side. back to you. >> joining us now to discuss the a ins conference is an washington. we heard president trump trying to downplay this outbreak. at the same time we had health officials saying the months ahead were uncertain. today managed to get their messaging right? a clear picture of what we have seen piecing together all week where the president says one thing. we are prepared and then you have the cdc officials and other officials, not sounding the alarm, but making sure people realize the gravity of the threat.
7:37 pm
we definitely saw those messages on display. even things like vaccine development. you had the actual scientist saying it's going to be a year before we have a vaccine ready and the president says it will be ready quickly. you saw that in terms of how quickly the virus could spread to the united states. the president said it's not inevitable. we will be prepared for the worst. right now it is not clear how it is going to progress. experts he hashe at his disposal, interesting he picked the vice president to head up this response strategy. is that controversial given we ofw his history in terms handling the hiv crisis? >> we will see the repercussions of this over the next few days. mike pence is part of the administration.
7:38 pm
say he isy clear to not a czar. people have pointed out mike pence does not have the strongest track record in believing in science. he has advocated for gay conversion therapy and question climate change. he's not a physician. he doesn't really have a lot of medical experience. it looks like his role will be to coordinate the different agencies to make sure they are talking to each other and sharing information and communicating with the member can people. >> thank you for that. president trump's comments failed to boost investors. futures are dropping, treasuries are rallying yet again. let's get more with our editor. this reaction to what was a wide-ranging press conference from president trump, is very
7:39 pm
sense this is a turning point in terms of how investors feel about u.s. risk assets as something of a haven? >> definitely. before this you could say it might not affect the u.s. the u.s. is the largest economy in the world. even if things are uncertain in china, maybe we are ok. now if it might need to take measures, people are reassessing that. as you saw, things were bouncing around. people are not sure how to take it. of coronavirusot in the u.s. 15 cases. definitely people are skittish as you saw from the futures going down 1% and then back. earlyne is really in information seeking mode. >> is that why there is a mixed picture?
7:40 pm
>> that would make sense. that haveave things sold off, people saying some of the worst is passed china. where things are spreading and where there will be a fact, you do have some things in china coming back online and if people feel like governments are taking action to the extent they need to, maybe that will sooth things. definitely a lot of uncertainty, which is what markets tend not to like. that.nk you very much for of course we are awaiting the be ok rate decision. 18 cv bank of korea cutting rates in under one hour and our next guest is among them. .oining us now is tuuli mccully it seems that the be ok
7:41 pm
officials are reluctant given some of the financial side effects. are they back against the wall right now because properties are rising, record level of household debt, they have no other option. the virus situation in south korea has gotten worse the past week or so. the alert level has been raised sayingsident has been all possible measures need to be used to support the economy. i do think there will be a cut today. it's interesting the bank of there is spaceg to ease monetary policy if needed. toe time and data are needed assess the impact on the economy. i think that time has passed. we have enough evidence that the
7:42 pm
economic impact on south korea will be significant. i think the bank will step in and cut the rate by 25 basis points. wille president said they be announcing a stimulus package by the end of the month. how much do we need to see in order to support the south korean economy and help out the bok? impact is going to be significant. the korean exporters were having difficult times before the virus outbreak because of weak local demand and trade uncertainty. and now the supply chain interruptions are making things difficult. and then there is the domestic demand issue given south korea is fighting the virus at home.
7:43 pm
there will be weaker domestic demand. the economy needs support. easing may noty be the best way to stimulate the economy and therefore fiscal stimulus that can be more targeted can be effective given it can really hit the sectors that have been the most adversely affected. >> we have seen business sentiment falling. we have seen consumer sentiment falling. economy that seem sensitive to major events like we saw with the fery disaster. is very sense it would take much forer even after the crisis consumer confidence to return? i think the impact will be
7:44 pm
the biggest in the first quarter of this year. i would not be surprised if south korea's gdp contracted in the first quarter. assuming that the outbreak stabilizes from the second quarter quarter onward, we should see a fairly robust rebound. at least first in the industrial sector, given that as soon as factories are in production, that sector would rebound. confidence will take longer. you can't just turn on confidence by pushing a button. that will take longer. limitationseing the of the bank of korea and other banks in terms of how much space they have to cut? and if we see the fed easing april, theyarly as are pushed up against a wall. they can't not follow in the
7:45 pm
footsteps of the fed if that happens. i think there will be further reductions across the region in china. indonesia, the philippines, taiwan, and of course we have seen significant efforts to stimulate the economy by fiscal action. that is going to be the key measure to get the economy back on track. >> appreciate you coming on with us. joining us out of singapore. the hong kong financial secretary has a cash handout of more than $1000 per adult. deficit oforecast a
7:46 pm
$18 billion next year. specializing insurance joins us now. great to have you. let me start in terms of your reaction to the budget. we knew they had to come out adjustbumper budget to some of the economic issues facing hong kong. say whether itto is enough. it is good to see the government to help theing economy. the government can't do everything by itself. are youuch pressure feeling on your business? not just from the economic slowdown taking place in hong kong before this. we had six months of civil unrest, the trade war affecting trade sentiment, and now with the coronavirus, what is the
7:47 pm
impact on your business? businesses affected are the ones that cater to be local economy. they arety, retail, impacted. we are in the supply chain business. even though we are export driven, things are getting disrupted. factories are not coming back on stream as quickly as we like. even raw materials, upstream in the supply chain, those things are not happening. even my own office in china, the government is not allowing people to come back to work. there is quite a bit of disruption happening. you expect the manufacturing sector to bounce back after the virus peaks? >> it is tough to say at this stage. to buyve the people need things and the manufacturing sector is there to support it.
7:48 pm
buyers may think twice about in one all of their eggs basket. the supply chain is going to evolve and change and shift. it will not be what it was before. >> when it comes to the hong kong budget, including cash handouts, do you expect this to help? they areeople say worried about the protests? >> some people need the money. there's a lot more people getting fired nowadays. maybe that will help those people. , a thousand u.s. dollars goes straight to the bank and will not be used. it is a very blunt tool to give every adult some cash. i am sure some people will find it useful.
7:49 pm
>> just to interrupt for a moment. a have breaking news on policy decision, keeping the key interest rate on hold. we had expected a cut to a record low given how badly the country has been suffering from the coronavirus outbreak. there are over 1000 cases in korea. the economy is being affected by the virus and of course slowdown in china. the dislocation in supply chain and pressure on the tech sector. the bank of korea leaving its interest rates unchanged. we are going to get more analysis on that. that is a surprise to markets. thatey, you are on a group represents textile manufacturers. what are you hearing among your membership in terms of plans to overcome this current downtrend? are there plans to redirect investment?
7:50 pm
do you think we will get to a situation where the smaller players will see more consolidation? stanley: most people are having that plan right now. a lot of people are worried about survival. this kind of changing times, it the stronga shift in companies coming out ahead. acquisition, consolidation and the weaker ones may not survive. >> so in terms of actual investment decisions we are likely to see, is there an existential question as to whether businesses like yours need to diversify beyond the china growth story? stanley: in the manufacturing sector, people were diversifying
7:51 pm
a year ago when the trade war started. this is not something that is totally new. it goes back further by a decade. chinese costs have been increasing so much. is no longer financially feasible to produce in china. things have been shipping to south asia, bangladesh, and we are seeing an acceleration of that following the trade war and now the coronavirus. >> this was szeto chi yan. us.k you for speaking with later we will get reaction to the hong kong budget. don't forget go to tv . you can catch up on past interviews and dive into any of the bloomberg functions that we talk about and become part of the conversation by sending us instant messages on the show. before we let you go, the latest
7:52 pm
out of the cdc again, saying they have their first u.s. coronavirus case of unknown origin. this means that it is the first case of a person who did not return from china or have contact with existing cases. the cd says this is the 15th in the u.s. and was picked up by doctors. more coming up. this is bloomberg. ♪
7:53 pm
7:54 pm
>> this is bloomberg markets asia. has leftnk of korea rates unchanged. let's bring in our chief asia correspondent. we were talking about they had no choice but to cut, but they haven't. >> it is a surprise when you consider what has happened with consumer confidence, the biggest slump in 2015. tourism is about 3% of gdp. it is not just chinese travelers, but the rest of the world. it requires an emergency response. they aret suggests going to rely more on the government's planned measures to support growth and perhaps an admission lower interest rates aren't necessarily going to fix this.
7:55 pm
would rather a vaccine then an interest rate cut. >> especially when property prices are surging. this is why the bank of korea is saying they will support those small companies through their loan facility. they will provide support for the small companies. how helpful will this be? these facilities won't do anything to fix the supply chain. a consistent line from the start. going into the demand side as those companies that need it most, it will grease the wheels. it is a question if they avail themselves of them. you can only put so much money into the system. whether companies need it is another story. it will be important to see what
7:56 pm
the government does on the budget in the coming weeks. >> what is the argument to saving that firepower? >> what will you achieve, remember the household debt? one of the highest rates. perhaps there are concerns around financial stability and the view what would another rate cut do to these problems sparked by the coronavirus? it may just be they are storing it up for next month for the next after when things interior rate. they have space to go. it is a question of how much they can achieve. >> do you think they will move if they don't get the fiscal support they are expecting? i think there will be a lot move.ssure on banks to the government is talking about spending more.
7:57 pm
are expected. this is not just going to be south korea. we are going to see this around this part of the world. finance ministry is due more to prop things out. they are not putting so much focus on that anymore. there is a lot of emphasis on the fiscal side of it. thank you so much. we will glean more details from the bok's statement in a half-hour. coming up, the ubs head of strategy joins us to discuss the impact of the hong kong stimulus package. this is bloomberg. ♪
7:58 pm
7:59 pm
8:00 pm
>> welcome to "bloomberg markets: china open." >> we are counting down to the open of trading on the chinese mainland as well as markets in hong kong. fear returning to markets after the trump administration's assurance on the coronavirus failed to ease investor concerns. >> because of all we've done, the risk to the american people remains low. we are ready to adapt and do whatever we have to as the disease spreads. >> some relief expected for '

48 Views

info Stream Only

Uploaded by TV Archive on