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tv   Bloomberg Markets Asia  Bloomberg  March 19, 2020 10:00pm-12:00am EDT

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hotspot. the government urging 1.3 billion people to stay at home and avoid the spread. >> welcome to the second hour of the program friday session. >> have a look at where you are market wise. 4%an is closed, up to the here. recovered touite 5000 level. the philippines is seeing a nice rebound. >> pretty aggressive 50 basis points. ball,rd is not playing 2.5% lower for indonesia stocks. they did cut rates by 25 basis points.
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singapore and malaysia doing pretty decent. aligned coming from apple daily. hong kong has found a third a gym.irus links to if my memory serves me correct, this is the paris gym. it is slowly making its way into the second week. this,'s talk more about italy has had more people died than any other nation including china. stephen.bring in he is doing his best to keep abreast of all that is going on.
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we heard a lot of headlines. what has been announced in california? has basicallyr ordered everyone to stay home. they want to control the outbreak and the governor actually saying that the outbreak and infections could of thepwards of 56% population of california. last year they had nearly 40 million residents, 20 million infections is what the governor is saying. we had a separate order with the mayor telling people to stay home. heels of san the francisco and the bay area being on lockdown, so it looks like a lot of the local governments and federal governments are taking this much more seriously than they were. the white house, donald trump
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did have meetings with the state governors by videoconference and journalists were in the room and it kind of her field there is a fight going on between the state and the fed as far as securing much-needed supplies. it seems many states have been conflating -- complaining that they had orders and then the feds come in and then their orders get canceled. hill,e while on capitol congress is trying to see if they can get this third stimulus package out. mitch mcconnell has pitched at packagellion dollar that at the centerpiece would be $1200 per person tax rebate, but only for those making $99,000 a year for yes. we have to talk about europe as well. mentioned about
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italy, the number of deaths surpassing even the likes of china. we are getting close to the end of this lockdown. it is it -- is it likely they will have to extend it #-- extended? >> the curve is still going up on the number of infections and .he death rate is shocking italy has more deaths in a shorter time frame than china so 3405 confirmed deaths in italy. that is quite significant. we are seeing in spain, the number of deaths up, france, the the cons dead up 41%, from festival, that is the ,atest event to be postponed
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the hallmark of the calendar in may. among other things, the nationwide lockdown in italy, the governor -- government saying it will extend and schools will stay close to be on april 3 and in the u.k., we are seeing a doubling in the last two days of deaths, schools also after boorse johnson said they would not necessarily close the schools. lockdown onily london, he says the tube will stay open and others sank it needs to be closed down. over 200,000 cases of .his outbreak 140,000 comingat into this week.
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>> may actually cap the benchmark rate for a new study in a surprise move that happened and really define what the analysts were predicting. beijing, theom banks did not do anything, how significant is that? >> it is clear that china is not following in the footsteps of the bank and they are using a monetary policy, this one quite unexpected. the central banks did not cut the one-year benchmark for the primary. the average rate, 10 basis points, some traders thought it would be one basis point, however we did see the pboc cut week,nchmark and last
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they did cut the reserve ratio of long-term capital into the financial system and we were expecting the size to be steady avoidall so the banks can the sharp margins which have artie been under pressure because it becomes increasingly left profitable -- less profitable. avoid anyrying to and they arelus trying to maintain this cautious approach. caution is obviously still quite warranted across the world. let's talk about the economy. move from have to caution to slightly more aggressive. help me understand why china has to keep a more aggressive stance
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in terms of sheltering its economy from the fallout as we talk about the second wave coming in? the positive side, you have china reporting zero cases, but you are seeing a continued import of cases from international travel must so you are seeing china stepping up coming into major hubs, but on the other hand, but there were these are getting more confident that they will resume to normal life and most of china is considered low risk and they are asking officials to help companies deal with labor capital and bloomberg economics estimates that as much as china's economy was going back to work last week. demand is not rebounding as quickly and consumers are still ,esitant to leave their homes
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so there should be more support on the fiscal side. coverrants unable to rental costs and other illnesses analysts estimate will go bankrupt. just interviewed a store and their store manager said demand was up three or four times and it was still increasing. >> china correspondent joining us for the latest. wilders -- let's get over -- let's get it over to karina. crude dramatic collapse and the price war. they are bracing for a flood of oil as they ocean taps and fight
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for customers. southeast asia central banks have taken decisive steps to counter the coronavirus and bolstered the counties financial markets. saying it will continue to intervene for confidence. buyerss delivering testing kits across europe in an to challenge power of the united states. it comes after months of .ressure from washington >> global news 24 hours a day, powered by more than 2700
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journalists and analysts in over 120 countries. >> the coronavirus outbreak strangling.e -- this is bloomberg. ♪
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welcome back to the program. you are watching bloomberg markets. reverse on the dollar strength we had ever so slightly. flat and will get you the graphic of live tv.
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in terms of the oil prices, there we go. up.our crude, --might step in and >> find the middle ground. dollar-yenl see coming back into the currency, 2%.one of 2% -- the juan up there was disappointment from the no change in the lp are today and the aussie dollar continuing. gordon. bring in wayne he joins us now.
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you?re >> good, thank you. first question, what are you itching to buy right now but you can't because things are still a bit abnormal? >> when i think about the here and now, i would be buying gold. it is clear that the u.s. dollar continuing and may continue in the next few weeks. although we can't draw parallels between this situation, what we can say is credit does seem to be squeezing and that pushes broad demand for the dollar. what that has done has seen people liquidate any position they can get u.s. dollar cash from. gold is one of them and the real
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interest rates in the u.s. have shifted from being -.5 to about plus .6 over the last week or two. that has a negative impact in the u.s. dollar which has traditional negative correlation has also been pressuring the middle, so how i would look to continue overay the next week or two as the fed continues to do their work we willhe scenes, but get some online of the dollar strength and additional qe, you should see a weaker dollar over the next 12 months and also on the back of that, you see real rates go back into negative territory. that will be a potent power for gold, so you can see it again approaching the mid-1600s over thenext 36 months, so on
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commodity side, that is what i that can workhaul even in a recovery situation. rushu mentioned about the for dollars. it seems like the fed has thrown everything but the kitchen sink. what ultimately still needs to happen to bring down the dollar? >> i think a lot of the squeeze has come from the corporate side on a global basis as well as major banks. we can see the big corporate, so -- such as the airlines, not only that, but while we had a household allen she crisis and banking crisis energy of see, this time around over the last few years, corporate have done a
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lot of buybacks and have wanted to hold cash on the balance sheet and now they are returning to carry over on what has been very weak demand and is not true -- transmitting in europe and the u.s., so we need to start to see the lines of credit start to work in people get more confident that people can hold on until we get through this crisis and then when we see the dollar turn, indian people will thiso seek yield after all has happened. you start to see that rotation back in asia. that will be a powerful force to weaken the dollar.
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>> what happens in the next weeks when you have spread quite wide. what do i do over the next couple of days? >> i think at least in the short-term, holding dollar is probably where you would put yourself, so as we talked about prior to the show, we have seen quite a shift tire in the aussie dollar. i'm not confident to be allocating cyclical currencies, but what we have seen is yield spreads deeply negative and now they are actually positive and so you are starting to see a yield any them build up, but for my next two weeks, i would continue to sit in the dollar, with for the liquidity that the
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fed is providing and then you at start to look opportunities to be working the way out. also, when we start to look at some of the volatility options, some of these really big corporate's what some of the oil corporate's who have been battered down by this sharp decline, some of these things are starting to look attractive were you would be gathering some of this equity at a much discounted price than where we are at today so those are some of the things we would do here and now until we start to see the dollar squeeze on its way out. mentioned the oil players. what level are you watching out? what can president trump achieve? person.a skeptical
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i am skeptical -- prime minister the full person -- i may skeptical person -- [inaudible] >> enough pain to bring themselves back together. what i would say is that one of the biggest issues on the supply side, yes we have ample supply supplyse levels of relative to demand, but the real is the factssue that demand is incredibly weak. many airlines have canceled 80%, 90% of their flights. once you take all of that out, he begins to see it built quickly and yes, additional saudi crude on the market,
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indian, it is the demand side which is adding significant crude. bounce that we have seen, but also some comments starting to limit production. short-term. quite surplus come on to the market in april and may, it will be a significant increase can we don't expect the demand side because of social distancing going on on a global basis, we don't expect the demand side to come back yet. >> thank you. >> plenty more ahead. this is bloomberg. ♪
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welcome back to the program. inmally we would the heading . still a live picture here. a torch relay modified. you upse, we will keep to breast. for thees arriving olympics, do we get the olympics at some point? >> that is the big question. happen,ntain july will but this is a different type of torch relay we have seen in the past because they are telling spectators to limit being in the sidewalks and watching that
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torch relay go on. the japanese leg should begin around march 26. no spectators will be allowed all 147.will travel to at equitylook markets, they 4% gain. given the rise limit and certainly seeing gains across the board. metabolix at the rest of the region. departed is the only one not playing ball. head oftalk to the indonesia and what they're doing in the event they need money.
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will leaveuickly, we thewith a snapshot of how assets are trading. this is bloomberg. ♪ good morning!
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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. it's more than just fast. it keeps all your devices running smoothly. with built-in security that protects your kids... ...no matter what they're up to. it protects your info... ...and gives you 24/7 peace of mind... ...that if it's connected, it's protected.
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even that that pet-camera thingy. [ whines ] can your internet do that? xfinity xfi can because it's... ...simple, easy, awesome. [ barking ] david: there we go, a live in: 30 in the morning in tokyo. finally in torch is the land of the rising sun. the question is if we actually get the games. they are not allowing spectators for this torch relay as they go through the prefectures in the country. there is back and forth if they should go ahead in july. thelocal news media saying japanese committee members is saying the olympics should be delayed because the athletes are not able to practice enough.
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of course the health and safety of the fans as well. david: windy day. york fort's go to new your first word news. remains theurope focus of the coronavirus with italy overtaking china in reported deaths. fatalities have reached 3400 with 41,000 infected. president trump rebuffed the idea of backing off on tariffs. the biggest factory shutdowns since world war ii. the wide economic fallout is shifting from service driven onustries to manufacturing both sides of the atlantic. adding toare idle,
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the pressure on global supply the specteraising of recession. the coronavirus threatens to disrupt trade talks. michael barnier has tested positive and put himself in isolation. the u.k. negotiator is also isolated. they have not met since two talksago, and this week's have already been postponed. japan is preparing a second massive stimulus package as the virus threatens to push the economy into deep recession. prime minister shinzo abe is asking business leaders to help come up with a rescue plan. they are fearful of the tokyo olympics being delayed. it can result in the longest contraction since the global financial crisis. 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.
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this is bloomberg. let's look at the market action now, it is looking to be a better friday than what we have seen all week. breakers -- we did see one in the cost be futures. futures. japan is closed. we are seeing emerging markets up close to 3%. msci china up 3%. withtle disappointment what did not happen with the banks. market thatis the is hammered substantially. we are getting more rhetoric out of regulators. keep in mind there is the element to consider, tencent is
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, but jakarta is not playing ball. down 4% on that market. on the indonesian benchmark, down for a fifth straight session. every single day monday through friday we are seeing red. we are going to indonesia right carriere the indonesian is no exception to what is happening to the industry. garuda a lot of challenges for the company. let's bring in the ceo. irfan setiaputra, president & ceo, garuda indonesia. good morning. irfan: good morning.
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time: thank you for making . we want to understand how the situation right now is affecting your business. what assumptions are you working with on what the financial impact will be for 2020? , we ares you may know but it is aosition tool of the government. the outbreak has an impact heavily. as you may know, we are not flying anymore to the china mainland. us isst heavy impact for the closing of saudi arabia where we are flying.
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we also have been hit with flights to saudi arabia. these are heavily impacting us. the other thing impacting us is our flight to singapore, normally 10 flights a day. now it is only three. domestic, jakarta has shown some downturn. david: if you were to make an estimate of what impact would be on your profits, what would that number be? irfan: it is going to be heavy. we are not yet calculating because the most important thing for us is looking at how long the situation will be. revenue camerket from the domestic market. , which is nottain
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we are this moment, still in low numbers. the situation -- the other problem we are facing is [indiscernible] if it is prolonged, that will be an issue. you mentioned domestically you have seen a bit of a drop, can you tell us more about that? how are you getting squeezed now? compared to a year on
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year basis we are seeing a drop of up to 40% on the domestic market. what we are doing now on the market that is normally high [indiscernible] let's talk about the boeing jets. you have not canceled your orders yet. what is your strategy for your fleet? they are getting old. what rejuvenation plan are you looking into? most of our fleet is six years old. max 747 at our
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location that is grounded since the day it was delivered. theill be discussing options here. definitely we can shift the order. we cannot do anything on this product. as it pertains to that question, as a follow-up to your fleet management, most of your aircraft is least, that will have an impact as far as your cash is concerned, and your expenses. have you made progress with renegotiating the leases on your aircraft with your partners? yes, we have several discussions, and most of them on the current situation.
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they have a strong belief in the indonesian market. we are in discussions at this moment. some are about extending our lease agreement. basically it is ongoing, and we expect [indiscernible] yvonne: this virus could not come at a worse time for you. we saw notes tumbling to recent lows. tell me about your debt restructuring. are you going to be able to refinance? irfan: we are in discussions indonesia.l banks in
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finalizing with them, and
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domestic market. we are in a better position here, and our branding is very good in indonesia. we expect we will increase in the future. we are in the market for every segment. safety and secure flying is one of our top priorities. we may have to develop a fleet in the long position of a buyout at the beginning. it is not our current situation
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in indonesia. [indiscernible] , weareas we are focused on will open a new route to indonesia. india planning to open to and australia, and also thailand. another 10 new destinations will be our focus. are the lower oil prices helping you? how are you hedged right now? irfan: at this moment 50% will continue.
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we are waiting for the discussion internally. the low price has an effect on the bottom line because fuel is 30% of our costs. the oil price will help us a lot. in theot have benchmarks normal situation. our expectation is the oil price will remain the same as today. thank you so much. that was irfan setiaputra, president & ceo, garuda indonesia joining us exclusively from jakarta. up, we are looking at india where everyone is told to stay home as infections rise across the country. we will have the details next on
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the india story. this is bloomberg. ♪
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yvonne: india is urging its 1.3 billion people to stay indoors to prevent the spread of the coronavirus. is enforcing work from home measures and prime minister modi made this appeal to employers. >> i would like to request businessman and people with higher incomes to take care of the economic outlook of those who work for them if possible. in the next few days, it is possible these people might not show up for work. please do not deduct their salary are paid because of this. yvonne: let's join our southeast
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asian government editor out of new delhi. when will these measures go into effect, and what are you seeing on the ground? >> modi has asked everybody to stay indoors on sunday, but is in general asking people to self isolate as much as possible. country withlt for a population density like india. people are still going about their daily business. we were expecting a package last night possibly involving stimulus including for autos, and tourism. as well as direct cash transfers to the poor. there is still no word on the timing of this, and he did not mention anything in his address
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to the nation. david: the number of confirmed cases is still at 173, four of 1.3in a country billion people. i am not trying to allude to something, my question is when it comes to an order, advice from the government to stay home and work from home, there are a lot of jobs you cannot do from home. in india it is one of those countries were you cannot do you stuff from your house. can we expect people to follow, and what will happen to the economy? >> the economy is already slowing significantly. has already been a lot of stimulus. drivers, theyle, cannot work from home, their job is on the street.
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difficult for those people to continue to survive. much. thank you so stay safe. let's stay in the country, we have the markets coming online in what looks to be a favorable session for the first time in eight days. we are seeing green across the screen with the exception of indonesia. we are going to get gains? looking atsession what the rest of the globe is doing, the nifty moved into the green. we have seen this happen where it opens positive but closes in
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the opposite. etf money is flowing out of india. india has been a liquid market. about $7 billion of money has moved out of the equity markets. this point, we will be watching. yvonne: thank you. futures might not point to how it closes. we will see how they play out. david: it is so hard to look at the price and extrapolate what it means. thailand is coming up. you are watching bloomberg. ♪
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david: we are talking china mobile, they are moving toward more online services amid the coronavirus crisis. it provides an opportunity for them. they are boosting spending to help overcome the pandemic effect on business. yvonne: for more on this, let's bring in our telecom reporter. obviously something like china mobile might benefit. is this a short-term boost, or permanent?
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>> china mobile's outlook for this year looks positive. investors are confident about china mobile's outlook as well. their shares bounced back 9.7% this morning from a 26% drop this year. 5gis coming from the leadership in china, a steady outlook, and capital expenditure outlook. in terms of 5g, china mobile plans to spend 100 billion yuan this year, a huge increase from last year. to have 100 million .g subscribers this year averageary the 5g
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revenue from user was 6% more than 4g revenue, and they expect 5g to grow this year. right now the outlook for this year is pretty good. know they are looking at the epidemic and using that as a reason to say there is a move toward online, but this shift was happening already. i am curious if there was an additional or incremental investment they plan to make because of what they think the shift will be. far the coronavirus outbreak has not impacted china mobile. it is affecting their 5g schedule this year. management said it will catch up on the delay for the rest of the year, and it probably will not
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affect their planned 5g development. it is affecting mobile subscribers. in february their mobile subscribers decreased, as compared with one million gained in february, 2019. with the travel bans around the world, china mobile's revenue increased by half the coronavirus has had an impact, but their view is there is an opportunity. thank you. thailand opens up and india as well. you are watching bloomberg. ♪
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yvonne: it is almost 11:00 in singapore. i am yvonne man. we are entering the last hour of the morning session in hong kong. the coronavirus weeks more havoc around the world, california orders everyone to stay at home. italy passes china and the number of reported deaths. asian policymakers take steps to bolster the economy against the fallout. we hear from the finance
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minister from indonesia. india may be the next virus hotspot. the government is urging 1.3 billion people to stay home. this is "bloomberg markets: asia ." a quick check on the markets, a pretty decent session, and we are breaking out of eight days of losses it comes to asian stocks. part of it is that dollar strength. a rally for the greenback is stabilizing markets. more than 730 points on the board. jakarta is the one that is the big loser, not joining in the club, lower by 3% despite the fact there was a central bank cut with the boe. let's see how india will play out as well, it looks to be a good session. fx wise, the dollar is that
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12.81. 1.10 asen, back above well. still dealing with weakness. about 2% overnight for the japanese currency. still seeing strength in asia. a higher opening in mumbai, but the close could be a different story. we do have that bounce back in oil prices overnight that could be a headwind. year at 641. and the rupee barely hitting 75. still a reprieve for the
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mulling thestors trillions in stimulus. most of the country is considered low risk when it comes to the virus, and he is calling for a return to normal. let's bring in selina wang from beijing. what is the situation like across china at the moment? selina: china reported zero domestic coronavirus cases. you are seeing more cases abroad, so china is putting tighter restrictions, authorities remain on high alert that another wave of infections is possible. they are urging people to go back to work. most of china is considered low risk and people should return to their normal work and life, and he called on officials to help with labor capital and raw material shortages. china'sst week, 85% of
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economy was back to work. we are seeing supply-side constraints the address, but demand is not back to normal or rebounding quickly. people are hesitant to leave their homes after weeks of social distancing. almost half of china's listed companies do not have enough cash to survive for another six months. 60% are unable to cover labor and rental costs. there are bright spots, delivery, grocery sectors. the store manager of one of alibaba was grocery stores says j three to four times. in anticipation of increasing demand in the coming months. haslinda: surprise, the
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define what wed are expecting an markets, and brushing that off. selina: after chinese authorities seemed to be hinting toward more easing, the central bank did not cut the one-year benchmark or five-year loan prime rate. our analysts were expecting a 10 basis point cut. we have seen the central bank use other methods to lower funding costs. we saw the central bank reserve release long-term capital into the financial system. bloomberg economics expects the pboc to maintain ample liquidity and make further cuts, cutting the interest rate on the one-year medium lending in the near term. also, it is not a surprise we are seeing the slow pace of reduction since banks have already been squeezed with lower
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margins as lending becomes less profitable. some economists do not think these moves are enough. they continue to downgrade their outlook, the average estimate for growth is just 3.4%, the slowest pace since 1976, the final year of the cultural revolution. yvonne: thank you to selina wang. the banks did not do anything in china. central banks across the world release unprecedented measures as they attempt to stabilize financial markets and maintain growth. let's start with the central banking side, it seems like southeast asia was guns blazing with easing overnight. >> that is right, and year to date looking at the totals, for 625banks combined
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basis points in cuts compared to 710 in all of last year. you can see the acceleration as they try to address the virus outbreak. five emergency meetings this week. a lot of action we are tracking. interest rate cuts will not be everything. we have talked about a diminishing firepower they can use via the interest rate cut. many economies not wanting to go to negative rates, especially in japan, governor kuroda saying there is not much appetite to go deeper into the negative. instead we are seeing a letter bond buying especially from japan and korea. swap facility to
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boost the region, south korea, new zealand. term loans to banks from new zealand. asset purchases, especially australia doing that for the first time. malaysia, another tool on the table for several economies. territoryuncharted and making a comparison to wartime situations. central banks are struggling to keep up to shore up confidence and keep the markets from destabilizing further. what about fiscal measures, is that catching up to the monetary side? >> it is hard to compare who is doing it more. there is spirit of coordination. we are tracking globally $2 trillion worldwide governments have pledged for stimulus. are onf governments
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their second and third round of stimulus. especially this week talking about a second package that will be significantly bigger than the first, already $10 billion. that concerns are being thrown out. economies are talking about revising deficit targets. statutoryhas a requirement of 3% of gdp. people are calling for a shelving of that as they ramp up spending to counter the outbreak. in the days ahead singapore working on a second stimulus package. malaysia also on a second stimulus package. we are seeing detail unveiling in the days ahead. finally japan, a big one, two different stimulus packages, and they call for a third or an emergency budget, especially as they look at the olympics which
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could affect the economy greatly. dumpeda: assets getting in indonesia. thank you so much for that. let's go to first word headlines. europe remains the focus of the coronavirus with italy overtaking china and reported deaths. 05talities have reached 34 with 41,000 infected. in the u.s. increasing calls for relief from tariffs, but president trump rebuffed the idea saying there is no reason, and china will not pay. china is delivering testing kits and medical equipment across europe. a new challenge to the u.n., claims of equipment delivered picking up most of the bill.
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japan is preparing a second massive stimulus package as the virus threatens to push the economy into deep recession. primus or shinzo abe is meeting with business leaders to come up with a business plan. they are also fearful of the tokyo olympics being delayed. it could result in the longest contraction since the global crisis. the oil and gas industry has slashed $30 billion off of a price war. producers are bracing for a flood of oil on the market as saudi arabia and russia open the tax in a fight for customers. in a fight fors customers. 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.
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up, taking aing look at the rupee crossing 1600. , askingbeing said policymakers to ensure stabilization of the currency. still ahead, a conversation with the indonesian finance minister. this is bloomberg. ♪
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haslinda: the market is showing signs of recovery. ospi higher by about 4%.
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the worst may not be over and markets could see more downside. in vasu menon, executive director of investment strategy, oversea chinese banking corp.. you said the likes of warren buffett is buying already. vasu: they have deep pockets. --ould be more comfortable for normal investors, we know this is still playing out. to me the key things are the infection numbers. u.s., it isd the that the policymakers are trying their best. several other central banks including goldman's are using aggressive measures. containment and
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making sure infection numbers come down, it is a health crisis. monetary and fiscal policies help, but it is about containment, bringing numbers down. economies take a hit, earnings take a hit, and all of that is being priced in. there are too moving parts to feel comfortable that this is the time to jump in and by. uy. violent gyrations in the markets is leading to miss pricing, surely there are opportunities. vasu: without a doubt, look at global equities on bloomberg. equities areglobal on a basis trading close to a seven-year low. it is a seven-year basis, three standard deviations below the
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average of the last seven years. that, the problem is earnings. i would rather measure valuations. that is still playing out in sentiment is strained. the u.s. is the biggest consumer market in the world, that is my worry. that is driving markets further south. the markets are spooked and not designed for lax numbers. it is going to scare investors. need a way fort the infection curve to flatten first, but in the meantime you mentioned what the fed has done. the extent of these currency
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swaps with other central banks has brought some steam out of the dollar. seeing some we are alleviation that could calm or andilize financial markets fix the financial plumbing that has been clogged? vasu: i certainly hope so. now up 8% in 9 and 11 days, a sharp rally for the dollar. i would think it needs a bit of a breather. liquidity concerns have eased a little bit. policymakers have to deal with the health issue. he'll with the health issue and reduce risk aversion, reduce hogging of the dollar, that
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helps. investors see risk on the horizon, that will lead to greater demand for the dollar. we could see the dollar going higher. central banks are trying. about the it is health issues and infections, and investors get comfortable that things are looking better on that front. yvonne: you highlighted well that this is a health crisis, a economy shock to the versus something structural like a financial crisis. there is word there could be a financial crisis, but the monetary and fiscal measures are unprecedented. hasn't it gone into overdrive? are they taking it too far and this could fuel bubbles? vasu: it could. bubbles, but what can policymakers do?
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they are tried to do all they can. you have health policy, monetary policy, fiscal policy. the central banks are doing what they can to calm nerves. they are going into overdrive. maker, you would probably do the same. we are living in unprecedented times. the banks have to do whatever they can. haslinda: hang tight, we are looking at live pictures and australia. let's listen in. >> for those most directly impacted by the economic downturn caused by the coronavirus. i want to welcome the decision which the treasurer will go into in more detail made the banks today. pulling together with everyone
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else to ensure we can get australians through this. these are important decisions that will provide relief. it is a great start and we will work closely with the banks and others to ensure we work together to provide the most support to australians to get us over the next six months at least. further work will be done to identify how relief can be .rovided for tenants to ensure in hardship conditions there will be relief available and ensuring the tenancy legislation to protect those tenants over the next six months at least. work will be done as it is a state and territory matter, and that will be led by western australia with new south wales and all territories to bring
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back rules that can be applied in hardship cases. understanding what the trigger might be and those circumstances tenants can maintain their tenancy. that will mean something for landlords, as the decision means something for banks, just like the decisions we have taken means things for our balance sheets, and as the commonwealth government as the states. it mean something for those who might be stood down from employment and have to look at their arrangements. all australians will make sacrifices in the months ahead. does have that role to play, and that will include landlords for people enduring real hardship. it was also agreed to that putting budgets together at this time with the great uncertainty
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that exists is not something any commonwealth or state government should be doing. we have decided we will not be handing out a budget until the first tuesday in october. the treasurer will have more to say about that. other states and territories will work on similar timetables. the idea you can put together any forecast around the economy at this time is not sensible. as a result, we will put in place the necessary measures with support of the parliament on supply and other continuances to ensure the continuation of vital programs. on sunday i will meet with the leader of the opposition. i spoke to him earlier today, and we will work through those practical issues around the functioning of the parliament
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now and over the next six months. of thethe leader opposition for his efforts. haslinda: he says the states have agreed to work to provide relief for tenants, and australia would delay its budget schedule until october 6. he says they will not hand down that budget. we will give you details as they come in. he also said the government is working on a package to cushion the impact over six months. looking at the markets now, the 1.9%.lian dollar up by the aussie dropped the most since 2016 yesterday. guest,et back to our vasu menon, executive director of investment strategy, oversea chinese banking corp. immediate reaction from what scott morrison has been saying. will the measures the enough to
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cushion the drop in the economy? australia, just like other companies -- other countries have done the same to come up with fiscal measures. this, there iss a lot of uncertainty, a bit of a blackhole. how long will this last? the global financial crisis, we had trouble with banks. bank, in thisal it is somewhat of guerrilla warfare. you do not know how long the enemy will be around. how long this crisis will be is important. out,is prolongs and drags it will test the finances of governments, it will test central banks which are running
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out of options, and that is quite worrying. yvonne: what do you do in this environment? it does not seem like you are sticking your neck out on any conviction calls, but where do you go and how do you hedge? who: there are investors see value starting to emerge. three equities, almost standard deviations below the mean. it could overshoot on the downside because of sentiment. if you need to buy, dollar cost average. not too aggressively. nobody knows where the bottom is. probably when infection numbers plateau is a time to be more aggressive. bit into the markets, but not too much. thank you. vasu menon, executive director
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of investment strategy, oversea chinese banking corp. joining us i'm singapore. scott morrison of australia with the big news that they are delaying the budget from may until october 6. it is difficult for any government to come up with any forecast. that will be delayed. also announcing in this package they will be helping when it comes to commercial and residential tenants, also small and medium businesses affected by the virus. that is what we are hearing. when it comes to nonessential gatherings, scott morrison saying they will be announcing restrictions on indoor nonessential gatherings. that is what we are hearing from australia. we were thinking we would get clues on more fiscal measures. enough toe if this is ,void recession in australia which they did avoid during the
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global financial crisis. we are checking on markets, it seems like things are looking better on this friday. we will count you down to the india open just moments away. this is bloomberg. ♪
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>> you are looking at live pictures. almost 11:30 a.m. e-cig or. -- in singapore. pretty much in line with the rest of the region. some investors are looking for bargains and they are picking up those bargains right now. record low valuations. investors searching for those stocks to be buying. representing good value for good investors. they reprieved to end the week,
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rising u.s. futures. investors mulling fiscal stimulus and rate cuts somewhat returning. now, let's get the first word headlines in new york. >> southeast asian central banks have taken decisive tips to both of their economies and financial markets. the philippines cut rates by 50 basis points and eased some regulations on banks. bank of indonesia cut by a quarter-point saying it will continue to intervene to ensure confidence. bank malaysia lowered the requirement to 2%. europe and the u.s. beginning to see the biggest factory shutdown since world war ii. the economic fallout of the virus is shifting from service driven industries such as travel and hospitality to manufacturing on both sides of the atlantic. companies are idling plants as china did at the start of the crisis, adding to the stress on
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the global supply chain. is premier says china returning to normal after the virus disruption. he says most of the country is now considered low risk and any barriers should be removed. satellite animation shows how the chinese economy cut back during the virus. computer images show falling emissions as factories shut down. emission starting to increase again. saudi arabia is the latest nation to take drastic action in the face of this spreading virus. local news media reporting the kingdom is suspending domestic flights in an attempt to stem the spread of the infection. saudi had banned international flights earlier this week. riyaad has suspended prayers and gatherings in mecca and medina. the coronavirus threatens to delay brexit talks as michael burns e.aier has tested positiv. sinceo men had not met
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the first round of talks two weeks ago and news of their test is likely to dash the hopes of any immediate progress. this week's talks at already been postponed. global news 24 hours a day on air and on quick take by bloomberg powered by more than 2700 journalists and analysts. this is bloomberg. yvonne: thank you. the latest lines out of india. the number of confirmed coronavirus cases has risen to 195. yesterday, we were still talking about 169, so we have seen additional 26 cases in the last 24 hours. and, this is at the time where we heard from the prime minister 1.3 urging the country's billion people to stay indoors. still a lot of questions on how they could implement this given a lot of people have jobs in india that are outside and cannot really do it indoors, work from home. checking indian markets, we are
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moment away from the open. futures are pointing slightly higher by .5%. at onshore rupee last traded 74.82. we are still seeing some strength coming through after the dollar finally snapped out of eight days of gains and the india 10 year yield at 6.35. uber surged after telling investors it will have billions of dollars in cash at the end of as bleakestn estimates are prospected. the ceo spoke exclusively to bloomberg about their ability to withstand potential losses posed by the coronavirus. outlinedge area we assumed that essentially the world would be down 80% for the rest of the year. thank what we are seeing with hong kong is there is a big hit authorities health
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get control of the situation, life does return. when life returns, uber returns. in hong kong, we have had people going to work. computers are starting to use their services as they always have. i think if we assume that the health authorities, the cities, the governors, the presidents all over the world are making the hard decision and the necessary moves to control the virus, then eventually life will come back. when life comes back, when people start going back to work, they are going to start using uber. just like in hong kong, we saw a deep trough and then a deep recovery. there is no reason we will not see that, even in a circumstance where you are down 80% of the rest of the year. we will still have $4 billion of cash. we will have assets to a $2 billion. it is highly unlikely, but we wanted to make sure that our investors knew we are
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planning for the worst-case, calculating with the worst case is and we are operationalizing to make sure we are ready for anything. >> we have tamed a memo you sent to your employees that said it is scary, but it is not a full financial meltdown. saying you are incredibly solid asset footing. you can manage your business city by city, day by day in a way unlike any other company in the world. that said, the coronavirus is new and a lot is not understood. based on what you have seen, is ridesharing safe? is food delivery safe? dara: i think that assuming that taken,ht steps are being absolutely i think it is safe. it is an asset like model and we are seeing in hong kong, china, ridesharing is coming back. if people get back to work, then
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ridesharing is absolutely safe havehe cost nature that we makes our business quite resilient. on the other side, on food, we are actually seeing food especially in many countries where restaurants are not shut down and you have delivery services going, actually food is holding in and at some cases very strong. we have this incredible logistical -- logistics network taking people places or bringing things to people's homes. and more than ever, it is going to be more important to bring food and things to people's home. we think of food business is a great stream diversifier, so to speak. we think rides are safe and they are especially safe when we have the best balance sheet in the business. emily: what about the public health issue? what about the customers that are scared to get in the car and
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scared of getting the virus? drivers are scared of driving passengers. would you put your kid in an uber? dara: i think these are deeply personal decisions and it depends on the circumstance. i think you cannot have a global answer for that. i live in san francisco and, t oday, i wouldn't put my kids in an uber because the governor has specifically asked for us to lock down. if you look at the uber app now, when you will bee open up the up in san francisco, we ask the person is this a trip you really need to take? not too many businesses would say are you sure you want to use this? we think first responsibility is for everybody to step up to bend the curve and we are doing the same. ceoinda: that was the uber
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speaking exclusively to bloomberg technology's emily chang. plenty more to come, including our conversation with the finance minister of indonesia and the founder of the world's biggest -- is joining the show to tell us how his business is being impacted by the coronavirus. and, it's good news. this is bloomberg. ♪
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yvonne: quick check of the latest business flash headlines. car rental companies asking to be included to have plans of travel ravaged by the coronavirus. they will be gravely damaged, they say, as airlines cut services. the three companies are asking steven mnuchin to consider zero interest loans and tax referrals. tesla has succumbed to coronavirus pressure and has
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logistic cost to close its plant in fremont. it will idle the facility is the quarter comes to an end. follows called by police and city managers about work continuing despite a shelter-in-place order. tesla slumped almost 10% in late trade. shares have plunged more than 40% over the past six days. haslinda: top glove reported a 9% annual jump in fiscal second quarter net profit thanks to volume. the malaysian company sees even better performance in the months ahead as demand for its products soar amid the coronavirus outbreak. now, let's cross to kuala lumpuir and lim wee chai. you talk about how you are see exceptional large orders from europe, u.s. and other countries. can you give us a sense of the outlook for sales at least in
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the next three to six months? lim: good morning, good to hear from you. results for 2020. for the next three to six months, we can see a much better sales revenue. it is more than double. coming inf revenue the next three to six months, it will be at least 16%, 20% increase compared to the previous year. outlook very good. go ahead. companies are talking about supply chain disruption. are you seeing that all?
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dr. lim: supply chains are at the moment still ok. control malaysia has orders. -- packaging material has been so far, so good because we need to deliver these essential goods to medical care. withe are cooperating well the major governments so that the supply chain will be smooth. thank you. yvonne: dr. lim, you mentioned the revenue could be up 15% to 20%, i believe you said. is this all purely due to the increase for the need from the coronavirus outbreak? dr. lim: sorry, can you repeat again? yvonne: is this increase you are
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expecting in terms of your outlook for sales this year, is it purely from the coronavirus outbreak? dr. lim: yeah, of course, this outbreak, covid-19 outbreak will impact on ourcant sales revenue and profit. it is definitely a positive impact. so, we can see a much better result for the coming quarters. generallye the demand in february -- january and february was coming from china and asia. now this month, march, april, may, the orders come from europe and usa. deployment of the our gloves increase significant.
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this as a you see short-term lift for your business? subsides,is outbreak do you see a fundamental change in demand? dr. lim: demand increased over the past 20 years. it was above 10% per year. glove, the sales revenue increase about 20%. and demand fore the glove will continue to improve. past 50 years, it has happened five or six times, this epidemic or pandemic. every five or six years, it has happened one time. so the demand will continue. though covid-19 may be
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better in the next six months or , the standard of health will increase so the deployment of medical glove will continue. for the past 50 years, it has been growing consistently, about 10% a year. top glove grows about 10% -- 20% a year. gloves growsre of more than the market growth. the demand will continue to grow. ok. dr. lim, more and more countries are imposing lockdowns, including malaysia and some say we are seeing an increase in certain products on demand, including condoms. are you seeing that?
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are you seeing a rise in sales for that? course. of demand particularly should as better, but not as good medical gloves, ok? so, we are more in the glove business. condom is small business for us. of course, the demand will increase. ok. haslinda: what kind of increase are you seeing? just give us some perspective. have much don't thend on condom but demand load increased much more.
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it increase from normal demand of 10% one year and then they increase other, the demand of this for one year. wondering, ijust know you mentioned about the supply chain issues. are there any disruptions when it comes to shipping gloves to customers because of government lockdowns? we have seen lockdowns in europe, the u.s. is starting right now. does that change how you can export now? do you see any kind of challenges on that front? dr. lim: so far, so good. an supply chain system is essential service. china,in malaysia, in ,nd even in the u.s. or europe it is still working well. they are working fine. so far, no problems on the supply chain for rubber glove.
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because sixnths, months, the production capacity is much smaller than rubber glove. the capacity is big. the percentage sixeased and will not be as months. the supply of rubber glove or medical glove is still ok. it's still able to deliver to the hospital or health care center. not a problem. yvonne: sure. what about the lockdown in malaysia, right? i know there has been exception to sectors that produce ppe, or like, basically gloves. has the government order affected your production in any way or labor shortages for your
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staff? the locked out, in malaysia is a good time for that. so far, so good. we are still ok. labor,s of labor, yes, there will be shortage. order --e lockdown this one, because of demand more.se, labor becomes we hope we can work together with the government to include especiallys, malaysian workers and foreign workers. manageableare still because we invested a lot in operations. especially in production.
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automation,ian -- digitization will help us to reduce the workers. in terms of engineers, scientists, we have increased because these are more value stuff. invest direction is to on highly valued or highly skilled employees. so, of course -- haslinda: top glove acquired espion. &a plans? mn dr. lim: yes, we are always looking out for m&a. years inor the past 19 our listing.
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growth rate was about 21%. m&a. look out for more i think we should be able to have some this year again. to createing forward more value and good jobs. willusiness direction continue to expand the company. the revenue and profit. yvonne: thank you so much for your time. top glove founder and executive chairman joining us on the line. i want to break some lines coming through from hong kong express. the carrier is owned by cathay pacific. perhaps more troubles for them. they are temporarily suspending all flight operations from march 23 to april 30. just a little bit more than a month. also, they are bringing forward staff second-half leave plans to april and june.
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hong kong express for now are suspending all flight aberrations as they try to fight the spread of the coronavirus. we will take a look at indian markets as well that have just open. let's get straight to mumbai with ivan standing by. we have really with a pretty good day in asia today. it seems like india is joining in the club. >> the real question is can this be the day that we snap the losing streak today? for now, the indices are advancing by 1.5%. but, what we have seen, what has been typical of late is every time we see some strength of the indices and openings, it is eventually followed by some filling. that is something we have to watch out for today. it is a little less strength as far as the banking index is concerned. that has always been the problem. we will watch for that. as far as broader index goes,
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the strength is a little more than that. i reckon a lot of investors and traders will have their fingers crossed. accenture has cut his revenue growth guidance for the year. what are the implications for india's ip sector? agam: well, there are certainly some concerns. accenture has cut its full-year growth guidance to 3% to 6% from 5% to 8%. that has some implications as far as the india ip is concerned. a string of indian companies will operate in the same market as accenture. we're looking at at recovery in the i.t. sector, which is up as much as 2.5% with gains. even though there is some concern with respect to growth, but we have to keep an eye on how things pan out for these companies when it comes to market, especially north america
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and capital markets. mumbai.: agam in let's stay with india. india is urging its 1.3 billion people to stay indoors to stem the spread of the coronavirus. as the government asks the state to enforce work from home primees, promises -- minister modi made this appeal. >> i would like to request businessmen and people with higher incomes to take care of the economic outlook of those who work for them as possible. in the next few days, it is possible that these people might not show up for work. please don't deduct their salary or pay because of this. haslinda: for more on the
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measures in india, we are joined by south and southeast asia government editor in new delhi. what do you make of the measures? obviously, it will be incredibly difficult for 1.3 billion people living in a very densely populated country to self-isolate as modi is asking us to do. but really, we were also expecting him to announced some kind of package last night, possibly involving fiscal stimulus, including auto, tourism and pharmaceuticals as well as direct cash transfers to the poor and aid for farmers. now, he did none of that. it was more of a pep talk for the nation. but it was also an indication that i think india's government is very worried where the coronavirus outbreak is going in this country. yvonne: do you think in terms of the government responsible far in india, that they are pretty
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much behind the curve? ruth: well, we now have 195 confirmed cases and there is widespread concern that india's low number of cases does not reflect the true number of infected people. the health ministry is still insisting there is no evidence that the virus has moved to a community transition stage. but india has one of the lowest testing rates in the world, so i think it is impossible for us to know that for sure. now, the theory of india is two weeks behind the pace we are seeing now in italy. we have to understand health concerns that is very bad news. yvonne: ruth, thank you and stay safe. ruth, joining us with the latest out of india. a quick check of the markets before we go. what i turn around when it comes to risk assets. we are seeing the first game when it comes to asian stocks in the last eight days. the dollar coming off, helping
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this part of the region. we are still off the highs of the session. japan still in a holiday so they are not taking part. the hang seng up 650 points. we believe it there. have a great weekend. stay safe. be home as soon as you can. this is bloomberg. ♪
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