haidi: a very good morning. markets have just come online. shery:shery: japan and south korea open in an hour. sophie: i am sophie kamaruddin in hong kong. welcome to daybreak asia. haidi: our top story this thursday, china bans travel from the coronavirus epicenter with 17 dead and hundreds infected. the outbreak has been hurting the already slowing economy. the virus continues to stretch investor nerves. markets are watching for any

development which could derail recent momentum. davos day two. attacking his opponents and calling impeachment a hoax. shery: markets have just open for trade. let's get straight to the action. sophie: we are seeing a little changed at the start of cash trading in sydney but we could see moves to the downside, retreating from wednesday's record close. 1%.off a 10th of nikkei futures under pressure as well. we are seeing bonds gain ground. aussie 10 year yield sliding for a seventh straight session. with the impact of the coronavirus up rick. checking the aussie dollar ahead of the australian jobs report due later this morning. aussie trading near a six-week low, hovering around its 100 day moving average. it was the biggest decline or overnight after the

bank of canada adopted a dovish tone. before where it was dovish remarks on january 9. below 110. let's check on the offshore yen, trading above 6.91. hong kong and chinese stock futures are under pressure on the final trading day for mainland markets ahead of the lunar new year break. wti trading lower by 1% early in trade in asia after sliding nearly 3% in the newark session amid concerns energy demands will be dented by the viral and. -- viral outbreak. details ons get more that coronavirus spreading in china and across the world. we have our china correspondent selena wang. china raising the death toll in wuhan province. walk us through the development. suspendthey will

outbound flights and travel from wuhan city, and travel from bus and ferry in that city. the death toll rising to 17, double the official number from yesterday. and hundreds are infected. estimated the number of infected people could be as high as 4000. all the deaths are concentrated in wuhan province but it has been expanding across china. japan, south korea, macau, cases in hong kong and washington. they are trying to understand the pathogen. there are fears it could mutate and become more deadly over time. you have the world health organization delaying decision on whether to label this as an international public health emergency, saying the need to gather more information and analyze the upcoming developments. haidi: we heard from the vice chairman the chinese security

regulator in davos strike a pretty confident tone in seeing a limited negative impact so far. let's take a listen. >> obviously it is a challenge. but if there is any country in the world that can deal with this kind of challenge well, it must be china. so, i have no doubt that our government and the people will be able to deal with it in a timely and effective manner. and whatever damage it may have to the economy, it will be very limited. no doubt lessons have been learned from 17 years ago. what will have -- what have we heard in the tone from other officials? selena: at the national health commission press briefing we heard a tone of confidence in trying to assure the international and domestic community the chinese government has it handled. they are moving swiftly and decisively.

we have seen the government learn a significant number of lessons from sars, when they were criticized from trying to deny the problem, being slow to respond. that triggered a number of reforms in china. they set up a center for disease and prevention. they have invested ¥12 billion into upgrading that disease prevention system. so you did see china's share of the genetic sequencing of the disease early on. they are setting up a daily reporting system showing more information will be shared to the international community as well. we also have the government stepping up quarantines, health .creenings that look at animals this transparency is a big deal. it has not been perfect. people have been complaining for weeks that they have been waiting for this reporting. but from where they were in the early 2000, it is miles away. haidi: selina wang in beijing.

we continue to really watch the developments of this story, because the spread of the virus is one of the global risks on deutsche bank's radar. is joining us now from hong kong. and market investors have been fairly sanguine about the risk, and it is very much a wait and see if this develops into something that is rs,parably serious to sa and whether it is something that can be contained at a smaller scale. what is your treatment of the scenario at the moment in terms of assigning how much risk there is to economic growth and economic sentiment? sean: good morning. the bottom line is it is really too early to really be able to assess the impact. we have had a selloff in the

markets due t -- markets. two observations. one, the overall market come down. identify markets and credits affected by this already. at the moment it is very early. it may be fortunate it is in the winter period, so that might slow things down. and the government seems to be really on the ball, be really timely getting on top of the situation. but still too early to tell. you see the recovery in u.s. stocks overnight. is there a sense that maybe people are not taking this disease with as much seriousness as should be assigned to the situation? sean: we did have quite a sharp selloff for a few days. the bounceback yesterday was probably a reaction to the over-sold markets. markets have had an incredibly

good run, and they have got through the iranian situation at the beginning of the year, and now coming into the chinese new year, i think people in asia and china are beginning to take -- i think this will exaggerate it. shery: the problem with this hidden sentiment when it comes to any news out of china is that, is the question of what will happen to the chinese economy. we sector is a bigger part of the chinese economy. this chart showing what happened in sars when we saw commodity prices plunging. when you consider the broader ramifications of what a pandemic of this coronavirus could bring, what do you look at to see where the biggest hit could come from? sean: i think initially the biggest hit comes from travel

and tourism stocks. that is not just china, it is asia-wide. then we will have to see what the impact is on the wider consumer. weis probably likely, given have had quite a lot of stimulus already at the beginning of the year and the government is pursuing injecting more money into the money markets, and changing the way the loan system is done and the banking system on top of reform that will get that continuation. so maybe the overall gdp mom or -- number might be sort of fairly resilient. the currency will be asleep come off in a few days, and that will not be good for equity markets, then equity markets will have to be selective. but it is too early. we just have to monitor it over the chinese new year. it is just unfortunate it is the one time of year where the maximum number of people are traveling. that will be a bit more of a challenge.

so you really have to watch it day by day. shery: if it was not for the coronavirus, what would you usually be watching as a chinese lunar new year get started? -- gets started? sean: we were all expecting a little bit of a consolidation in the markets. we have had a tremendously good two months in asia and chinese equities. partly that has been the confidence that the global economy is not going into recession. the market was not buying in august. we have had pmi and manufacturing stabilize, and the consumer continues to be robust. and we had good news on the phase one trade deal. i think people are being pleasantly surprised by the pboc's action and the rhetoric coming out of china, and looking forward to the party conference ofmarch to see more details what is going to be happening going forward with the chinese economy. i think we are beginning to get a bit of confidence back in the

consumer in china and in the corporate sector in china. so that is one thing we are going to really watch. recent conferences and visits to china. chinese companies are more optimistic. they have been cutting costs. revenues have been falling more showing chinese companies are really addressing the cost situation. we will be in a very good situation if growth stabilizes. but confidence is definitely something we will be watching. shery: sean taylor, always great talking to you. checkturn to sophie for a of some of the stock movers in sydney. sophie: we are seeing down or falling as much as 26% in sydney, the biggest decline since june 2010 after the company cut its fiscal 2020 profit targets due to underperformance of its construction business, which is also hampered by rising costs. droppingck in here, over 11% after flagging charges.

the engineering and construction services player is to recognize an impact of one point trillion dollars in a financial statement and will not declare a final dividend for the year. if we have the qantas share price, the carrier sliding for the fourth straight session. risks on it may face the coronavirus outbreak. two way traffic for hong kong and china accounts for 12% to 40% -- 14%. haidi: we are seeing all sorts of airline and tourism stocks under pressure these days. sophie kamaruddin in hong kong. let's get you the first word news with jessica summers in new york. jessica: a united nations panel is accusing the crown prince of saudi arabia possible links to the hacking of jeff bezos. an iphone belonging to bezos was infiltrated via a video file sent from a whatsapp file sent the prince.

the report says the hacked aimed at to quote come influence if not silence reporting on the newspaper, theos' washington post. he says the allegation is absurd. >> the embassy in washington issued a statement last night, arabia this morning, saying clearly this is absurd. they called for an investigation so they will know it happened. jessica: president trump's impeachment trial entered its second day. house managers presented their case to the senate. the president has dismissed the proceedings as a hoax. but a new research survey says almost two thirds of americans believe he is definitely or probably done things that are illegal either in office or during the campaign. volcano south of manila continues to vent smoke and ash. authorities are getting local residents a thursday morning

deadline to leave the area or expect no more help. activity at the site is weakening, but seismologists still say an explosion could be imminent. almost a quarter million people have been moved to safety, but police say some are refusing to leave. global news 24 hours a day on air and on quicktake by bloomberg, powered by more than 2700 journalists and analysts in more than 120 countries. i'm jessica summers. this is bloomberg. shery: still had, -- haidi: still ahead, more highlights from davos. with: and our interview asia's largest pharmaceutical company. discussing plans to bring 50 new drugs to china in the coming years. this is bloomberg. ♪ s is bloomberg. ♪

the fed not quite there. let's focus on the central bank here. morgan stanley ceo james gorman speaking with bloomberg at davos, discussing why the fed's balance sheet expansion could be compared to qe. reale fed only has two tools they are working with at the moment and they have exhausted the rate. that is the reality. they only have the balance sheet they are working with. it is a form of qw. -- qe. it has been helping the markets along and they have done it for good reason. they raise rates 12 months ago, the markets took it. the fed is bringing things back in line. >> everybody in this valley wants to be james gorman. everybody i know wants to get new management, they want to catch up with what you saw x numbers of years ago. do you worry that we will compete away the profits in the business? if everybody gets in, like wheat

farmers in kansas, a state in the middle of the nation. 2004. are a citizen since [laughter] everybody wants to get into wealth management, is there a risk you compete away the margins and the margins come down? >> there is a difference between wanting to do it and being able to do it cost-effectively. scale matters and wealth management. and thank you. we made that call 10 years ago. there are some monster players and wealth management, whether the direct side with ameritrade, what for merit -- what fidelity has done. it is very hard to replicate that. >> you made that call. 10 years later, do you need a new play? does there need to be a change in strategy after you have done that for 10 years?

or do you see the step as a standard having some real durability for another decade? >> that is a good question. you constantly have to challenge yourself. just because you have done something and it worked does not mean it will work in the future. someone asked me a couple years ago, i said what about we make money as a strategy. now the firm is operating 11%. these are good numbers. very solid numbers. record earnings. but no, i am constantly looking at ways to grow without shrinking the investment bank. our investment bank is phenomenal. number one business in the world. phenomenal businesses. there are not obvious ways in which you would grow in that space. haidi: the morgan stanley ceo speaking to us at davos. coming up, u.s. secretary of state pompeo denies president trump's personal lawyer oversaw a shadow foreign policy be

ukraine as the impeachment trial continues in washington. our exclusive interviews coming up next. this is bloomberg. ♪ this is bloomberg. ♪

you're watching daybreak asia. mike pompeo says the u.s. is committed to supporting the ukraine and stamping out corruption in the country. speaking on a trip to the caribbean, pompeo also denied president trump's personal lawyer rudy giuliani oversaw a shadow foreign policy towards kiev. the has said consistently, lot required me to testify, i would do so -- if the law required me to testify i would do so. it also never comes up with meetings with mike counterparts

-- mike counterparts. -- with my counterparts. they care about so much. they see the noise in washington it is not something they would think in the time we have between us. >> house democrats say rudy giuliani orchestrated a shadow foreign policy. can you assure diplomats serving all around the world, in dangerous places, that is not the case? >> the foreign we were executing then is the same we are executing today with respect to ukraine. an important country. it is under enormous pressure from russia. president trump was taken -- taking action. systemsded defensive for the ukrainian people. we have supported this new leader, president zelensky, and his efforts to stamp out corruption and build his democracy. we are continuing to do that. our policy with respect to

ukraine has been on the fundamental principles of reducing the footprint of corruption and helping the ukrainian people build up a democracy while under threat from the russians. >> you said you look forward to going there, that you have other issues you want to discuss with them. is that still the case? >> i will get there before too long. i had a trip planned we had an issue arise in the middle east i had to attend to. while that issue is not behind us, i will get to ukraine. >> why should americans care about what happens in the ukraine? what is the broader theme here? who is explaining to the american people why u.s. ukraine policy matters to the average american? edgee ukraine sits at the between democracy and tyranny in the easternmost parts of europe. it is a nation that gave up its nuclear weapons at the end of the cold war, and america made a commitment that said we would

assist them with a number of things so that they could still be a secure, sovereign nation. we care about democracy everywhere. they are a huge trading partner for the united states of america. america has a number of interests with respect to ukraine. i think the number of resources we have committed there reflects that level of interest. haidi: mike pompeo speaking exclusively to bloomberg in jamaica. motors says it expects to report a $2.2 billion pension related loss, driven by lower borrowing rates. it will probably reduce their net income by about 1.7 billion dollars. it will not reflect adjusted earnings per share because it is considered a special item. tesla pushed its market value above volkswagen for the first time with more than $100

billion. only toyota is bigger indycar world now. -- in the car world now. it will be a huge payout for elon musk. almost $350 million. their best monthly performance since going public two years ago. morgan stanley analysts say the bank is having more conversation about richard branson's operation than any other u.s. stock with the possible exception of tesla. initiallyactic struggled to convince investors following its move to the nearest stock exchange. coming up, china holds travel for wuhan as the coronavirus spreads. we talk to the national institute of allergies and infectious disease in the u.s. this is bloomberg. ♪

gasquet: your first word headlines. president trump dominated proceedings and apples, lauding his economic achievements, attacking his political opponents and calling the impeachment trial of hoax. he says he wants a trade deal with the european union before the election in november but were new to his threats to impose auto tariffs if the block quote compromise in negotiations. prime minister boris johnson's brexit bill has cleared its last hurdle in parliament. it ends years of deadlock that has paralyzed u.k. politics since the 2016 referendum. the passage vindicates his last

-- snap election last month. the bill now goes to the queen who will then sign it into law. that puts brexit on track in nine days time. malaysia unexpectedly cut its benchmark rate, becoming the latest emerging market to ease amid global economic uncertainty. they lowered the rate by 25 basis points to 2.75%. only two of the 26 economists we surveyed the move. the ecb is planning a two-part policy approach that separates inflation targeting from its other aims. global news, 24 hours a day, on air and on quicktake by bloomberg, powered by more than 2700 journalists and analysts in more than 120 countries. i'm jessica summers. this is bloomberg. risk off sentiment spreading across asia early in the session. we turn to sophie for what to

watch. sophie: pulling back from wednesday's record close. energies and industrials are the biggest drag. among the stock laggards, engineering companies leading the drag. stock futures under pressure this morning as well. there should be more slow and steady gains. tech is providing a list -- lift. let's check in on this -- australian bonds. the 10 year yield prepping for a seventh straight session. off by two paces points this morning. the aussie dollar is trading near a six week low. hovering around its 108,000 average. that may provide a queue as to what the impact could look like. offshore yuan trading at 691,

headed for the first week lower in nine. let's check in on oil this morning. new york crude extending losses below 57. this as goldman warns that three dollars could be shaved off oil prices if energy demand is dented by potential travel disruptions from the coronavirus. haidi: we are staying on the coronavirus. weigh the impacts on the markets. health officials are figuring out how to track and contain it. the director of the national institute of allergy and infectious disease at the national institute of health joins us now from bethesda, maryland. so great to have you with us. in your experience, i'm curious as to what you think the who should be doing. they have not declared this a public health emergency. it must be an extraordinary event and the risk of international splitting on a --

and a corrugated response is required. has this criteria been met? >> i don't want to outguess the who. they deliberated with experts. they will come up with an opinion. it is not appropriate for me to give my opinion as an official outside of the realm of the discussion that's going on. they will return to that. they discussed it today. they will get back to that with more discussion. i'm sorry. completely understand. in terms of the seriousness of this disease, you had immense experience in terms of the early development and contagion towards hiv. you are still working on various programs at the moment. does this response strike you as being appropriate? are you concerned about how widespread this could be?

i know it is very early and we are meeting -- waiting for more information. is this something similar like sars? anthony: we need to take it seriously. certainly. i don't think people in the united states should be worried about it or fearful. we must take it seriously. this is something that is evolving. day by day, it changes. if you look at the number of cases and where now, given the volume of travel, within china and outside of china, we are starting to see it now in other countries. japan, south korea, thailand. we see it in different cities now in china. we even had a single case here in the united states. fortunately, the case was picked up. the prison was diagnosed and was put into isolation. the person is doing quite well, relatively well. it's the kind of vigilance you need, this is an evolving

situation. you need to take it very seriously. it is the coronavirus. it jumped species from an animal reservoir to human and is causing disease that is making --ple ill with a mortality it is tough to establish the precise mortality. it seems to be less than what we saw with sars. it is still climbing. hasher it more efficiently continual transmission from one person to the other to the other still remains to be unclear. there's no doubt that it is transmitted from one person to another. will we havely sustained transmission? it is still an open question. we know a lot but there's a lot of unknowns. haidi: one -- what lessons can we take from dealing with past coronaviruses like sars? anthony: we were able to put down and stop the sars outbreak

by classical identification, isolation, and appropriate quarantine. it was good standard, basic public health practices that put an end to the sars outbreak. i think that's a lesson we need to have learned from sars. and apply those same principles right here with this new coronavirus that is causing this disease. haidi: you talk about the situation evolving. what about the virus itself mutating during the course of the pandemic? what is the risk of that happening? anthony: viruses mutate all the time. the idea of being concerned that it will mutate -- i think we need to realize that viruses evolve and mutate. hopefully it will not mutate to be more. let that it is. generally, viruses don't mutate so dramatically once they establish themselves in humans.

that is something you need to keep an eye out on. that's the reason why i say this is something that is an evolving situation. you can expect viruses to change. hopefully they don't change in such a dramatic way to make matters worse. of -- haidi: you talk about standard operating procedures for containment. we see the city not letting planes and fairies and trains coming out of the epicenter of the disease. how much more complex is the situation given that we are at the cusp of chinese new year? it is the biggest human migration honors. we are expecting 3 billion trips to be taken. is this a nightmare scenario? it certainly makes things more problematic than if it were a different type of -- time of the year. you have lunar new year on

january 25. , there are millions of people traveling in and out of china to areas in asia and other places to celebrate the new year. that is something that is going to create conditions that might make matters worse. we don't know right now. hopefully we won't see that. we have to be aware that when you are traveling in crowded places, that is always something that could be problematic for a respiratory board disease. is there a problem in the sense of the environment where these diseases are allowed to derive from? does there need to be greater global coordination or national grid nation as to whether these wet markets are better maintained? anthony: i don't want to be

speaking for the chinese. i think they realize that. that's why they closed the market. that's after the fact. the situation is that they need to pay attention. when you are dealing with the interface between human beings and wet markets that have animals that could possibly have diseases that could jump species, you need to be very careful about that. ,hen again, you have many years centuries of customs of people, it is difficult to get them out of that kind of interaction with chickens and fish and all the types of interactions between animal world and the humans who interact with them. infections in new humans are what we call the not. meaning they jump species from an animal and adapt themselves to the human. given that there is a lag

between infection and detection, right now we have seen only a few hundred confirmed cases. could this number be exponentially higher once time evolves and we see more detection taking place? anthony: it could be that there are some people who got infected who don't have obvious clinical disease. as we develop more rapid and sensitive diagnostic tests, we will know more about that. that's the reason why i said, this is an evolving situation. by the day and week, we learn more and more. they're still a lot we don't know about it. we are learning an awful lot about it as time goes by. hearing that a potential vaccine could be three months away. how useful is this given that we know how long the regulatory process for new drugs is? anthony: the vaccine that we are will notn at the nih

be available for distribution in a couple of months. what we said is that we have the sequence of the virus. we put it into the appropriate vaccine platform. we will be able to test the canada -- a candidate for safety in about three months. there's a big difference between testing a candidate to see if it is safe and the full development of a vaccine that you could have available for distribution. for the latter, you are talking years. emergency, at the earliest, a year or two. that's the difference between getting something early tested for safety -- once you show that, there's a process that takes time to get it to be utilized in a broader sense for people. haidi: great to have your insight. thank you so much. we will have more on the .racking of the disease

hong kong university school of public health professor joins us. take a look at some of the trading taking place right now. we are seeing risk off sentiment taking off. naked futures under pressure. u.s. features also under pressure. gaining groundn against the u.s. dollar. we saw a bullish start to the u.s. trading session. risk appetite waning on the news of this developing coronavirus. we will keep you updated on what happened to the market. this is bloomberg. ♪

haidi: it's not just the global elite being drawn to switzerland this week. againuntry has once clenched the top spot in a global survey on fostering and attracting talent. it edged out the u.s. and singapore in the rankings. joining us from devils is the

academic director behind the global talent competitiveness index, philippe a montero. great to have you with us. give us a little bit of insight on the criteria to get this list and why switzerland topped it. felipe: good morning. have a verys try to complete set of talent. whole countries attacked -- attract talent. number one.is that is because it fares very well. about how we grow it and retain it. haidi: tell us why the united states is in second place. and whether or not this could see further impact, given some of the migration policies we have seen from the trump administration that includes restrictions on drifted --

different work visas. felipe: over time, we have seen the country at the top, u.s., singapore, a lot of stability there. we have not seen a lot of move at the top of our ranking. as you said, talent is an important criteria. increasing restrictions to mobility, that affects the future. so far, the top countries in the ranking are the high income countries. they have been pretty stable on top of the rankings. haidi: what is really interesting is that you say geopolitics affects many of the countries in these lists. brexit with london. the european union clearly in a state of existential flux as a result of that as well. you have u.s. politics being very volatile and the situation in hong kong.

all the cities are still on your list right out of -- up top. felipe: the reason of our theings not capturing volatility is because of what i mentioned before. we have 70 variables. year a drophave one in one of them, it's unlikely to change the whole ranking. on the one hand, what we see is a more holistic approach to talent. on the other hand, we may not be .ble to see those valuations haidi: what came out of this ranking that was surprising to you, what was different other years? felipe: that's an interesting question. we looked not only at the 2020 rankings but also what happened over the past six years. what did we see their?

countries are the talent champions. we see how some of the emerging markets, how they are moving from being a talent liver to become a talent champion. china is right there between talent movers and talent champions. we see india moving there. lagging in terms of talent competitiveness. haidi: when it comes to talent gains and losses, depending on data and artificial intelligence, what industries are you seeing the changes and the effect of these the most? report and our study, we don't look specifically at industries. we look more at the valuation across the countries. in that regard, querrey, think about ai, you see the u.s. and in ai.eading

the big question for us is, to what extent is the role of europe? will there be a third wave in this ai world? felipe montero, thank you so much for joining us today. we will have more from davos drop the day including our interviews with the heads of to mastech. we have breaking news out of japan. we are getting the december exports numbers now, contracting 6.3% year on year. it was a bigger contraction than was initially estimated. year also a on bigger contraction than expected. 4.9% for the month of december. still, it's an easing of the declines we saw in the previous month of november. when it comes to the trade balance, still a trade deficit

102.49 billion yen. the trade balance is up 11.6% from november. we have seen the trade deficit now widening, actually narrowing toghtly, seasonally adjusted 102.5 billion yen. really interesting. exports continue to fall. we also saw imports falling more than expected. of course, there is pressure on external demand in japan. we continue to see the trade balance in the deficit, seasonally adjusted, ¥102.5 billion. we have plenty more coming up. this is bloomberg. ♪

haidi: breaking news. pg&e has now reached a

settlement with creditors led by pimco and elliott. that bankrupt pg&e california utility having reached a settlement with creditors led by pimco and elliott. this leaves new some as the last major block to the recovery plan that they are pursuing. this is also settling the bond dispute that threatened to derail their bankruptcy proceedings. the bankrupt california utility pg&e and creditors have reached a settlement. we know that the california governor has filed an objection to that financing to aid the bankruptcy, saying that organization plan does not make state requirements. we are trying to work out what happens from here. and breaking news that pg&e creditors have reached a settlement. lefty -- get you a quick check

of the latest business flash headlines. the world's biggest banks are cutting bonuses in asia with senior employees taking the biggest hits. fell about 14% last year. morgan stanley's payout is said to be cut by 9% with citigroup scaling back payouts by 6%. it is focusing on additional cost cuts. westpac has named former barclays chief as his new chairman as it begins the task insiderring reputations. it is accused of the biggest ever violation of the money laundering laws with 23 million breaches. chairman stepped down after four years in the role. fancy becoming one of the world's fastest becoming tech names? the chinese internet giant is seeking a new head of its tictoc business.

app is hugely popular but has been targeted by american lawmakers as being a potential to debt security threat. it has artie interviewed some potential candidates for the role which would be based in the u.s.. markets open in tokyo and seoul. let's turn to sophie for what to watch. sophie: we had data from japan just minutes ago. we had a bigger than expected drop in japanese exports, down 6.3% to mark the 13th year on year decline. that was an improvement from the 8% drop we saw in november. japanese exports to china rose 0.8%. we are seeing nikkei futures off by 1%. ground,is gaining drifting further after recovering from its eight-month low that was it was friday. u.s. stock futures are under pressure, exacerbating this decline. benchmarks closed little changed on wednesday with energy losing ground in the u.s. while tech shares rose.

we are keeping a close eye on asian semiconductor names today. this after two major industry names offered guidance that would be asml and texas instruments. that was after that. a look at what we are watching in the next hour. coming up, we will be discussing the impact of the coronavirus as well as central-bank decisions in the region with priyanka sure. the market open in seoul and tokyo is upon us. this is bloomberg. ♪

haidi: very good morning. asia's major markets are just opening for trade. welcome to daybreak asia. ♪ haidi: our top stories this thursday. china bans travel from the coronavirus epicenter. hurtingreak is already the slowing economy. the virus continues to stretch investor nerves. markets are watching for any

developments that could derail recent momentum. shery: we will look at central-bank policy after a surprise cut in malaysia and an upcoming decision in indonesia. haidi: japan and south korea have come online. let's get straight to the market action. sophie: downside moves for tokyo. the nikkei losing 7/10 of 1%. we are digesting japanese trade data as well. exports fell more than forecast in december. dragging for a 13th month down. it wasn't improvement from the 8% drop that we saw in the previous month. this morning, the yen building on a two day event, falling below 110. in korea, the kospi is losing ground by 0.5%. aussie shares pulling back from that record close we saw on wednesday with energy and industrials dragging the most on

the benchmark. the aussie dollar is trading near a six-week dell ahead of december job stater. -- data. yuan atthe offshore 691. on saying closing lower -- hans saying closing the hour. let's check in on oil. we saw wti extend losses below 57. brenton tarrant pressure. we will keep an eye in the space. golden anticipates we could see oil prices trayvon three dollars if energy demand is dented by the coronavirus outbreak. shery: thank you so much for that. for more on how virus fears could play out, joining us now is mark cranfield. great to have you back. we have seen this developing story of how the coronavirus is spreading, affecting the u.s..

risk appetite faded. is this something similar to what we can see in asia today? jessica: we will see it -- mark: we will see a nervous holding pattern. we are seeing knee-jerk reactions. we had the selloff earlier in the week. a lot of that has been recovered but not fully in asia. now people are trying to digest all theseans having people on the move during the lunar new year brexit -- break. we will have a clearer view of what -- after the holiday. people have adjusted some of their positions. they are edgy about what will happen. we are likely to see a sideways pattern until more pattern -- information comes through. have moved quickly to restrict people movement. a does not mean that the virus will be completely contained.

if it is anything like 2003 with the sars virus, the incubation period is long. people. no they are carrying the virus until 14 days later. people can be spreading it without knowing it. plus, there will be thousands of chinese tourists traveling outside the country to singapore , japan, hong kong, various places in asia. but the risk as well. the information will come through immediately. people are probably thinking that the economy in asia was on a decent footing for the year ahead. this could -- could certainly be an outbred -- setback. we will only know in a few days time. time.l be a very nervous markets will be edgy. we could see more knee-jerk reactions if there is more information coming out in the meantime. haidi: i suppose we would expect to see further pressure on some of the specters that would typically be doing pretty well.

tourism, retail, airline related stocks. mark: you would certainly expect to see some fall back in those. there could be some winners as well. if people are contained by their movements, and may mean that online services do better than usual. anybody providing gaming service, video service, they might get more widely used than normally. anywhere where people meet in large numbers, shopping malls, restaurants, people on travel schedules, all of those things could be affected. there will be some winners and some losers depending on how long it takes to really take down this virus. that will determine how long equity markets are under this cloud. it will not be good for investors in the short-term. the lesson from 2003 is, this could go on for several weeks before we get a clear break in the direction one way or the other. our bloomberg mliv

strategist in singapore. you can follow more on this story on our markets live blog on the bloomberg at mliv . the impact of on the coronavirus on the economies around the region. let's bring in preoperative sure. great to have you. latency inis is terms of information that has yet to come to hand on how this is developing. on the information we have so far, this is a virus that has low mortality compared to sars, and there are containment measures put in place including the lockdown for the city of lujan. are you encouraged about the potential limits that we could see to economic activity? that's a fairink command. the authorities within china and other parts of asia have been much more proactive.

there are strategies in place. the 2003 sars epidemic are well learned. the biggest challenge is the timing of this virus picking up mortality, it coincides with the chinese new year holiday. there's going to be a big pickup and travel from china. we need to monitor how the after the new year holiday to get a better sense of the economic impact. shery: what about the potential impact outside of china? how much impact on growth in the chinese economy across the rest of the world? this time of year, you would see tourism and money flowing into a variety of different countries from thailand to australia. priyanka: that's right.

although you are not the most obvious candidate, not only is resume big part of their gdp, but also chinese tourism accounts for a large part of tourism. other places like philippines, vietnam have seen a huge influx in terms of chinese tourists coming to vietnam. , not to forgetf hong kong which is already grappling with other sorts of issues at this point in time. tourism and related sectors leading to lower service sector growth in all these economies, broadly in that. it needs to be watched out. having said that, i would add in that the eventual gdp impact depends on how the other sectors are behaving. in 2003, we saw that while the dip, -- tech are to a haidi: we are seeing gdp growth

stabilizing in china. given the difference in the structure of the chinese economy compared to 2002 during the sars outbreak, now the chinese economy services sector is a bigger part of the economy. contained, viruses could this threatened to derail the stabilization of the economy there? aiyanka: definitely poses downside risk to our view there that growth will stay at 6%, especially in the first half of the year, it's important to see how momentum stays given that we have done more optimistic following the phase one deal. i also need to take into account that there is policy easing. in our current forecast, we do not see policy easing happening given improvement on the external backup. policymakers have amended to ease. they have the space of needed.

-- if needed. shery: even if the viruses contained about china, i want to ask about the global growth intact -- impact. 2003 in the sars outbreak, china's gdp as a percentage of the world was really tiny compared to the 1/5 of the world economy that it takes up now. there be broader repercussions for the rest of the world, given the magnitude of the chinese economy now? rate, if the mortality it shot up to levels such as sars, 10%, they are currently only at 3%, we need to monitor how the behaves. even if it picks up from 3%, it does not shoot up to those kinds of levels, i think that even the broader global up -- impact could be more contained.

short-lived in terms of the first order of the year which would give more scale for policymakers to step in with their policies and provide a better backdrop of growth as the progresses. now, we have not lowered our global growth forecast. i will be monitoring the situation. >> thank you so much. you are staying with us. some ofto talk about the policy tools that the central bank has available around the world. let's get the first word news with jessica summers. jessica: china securities raising theill be cap on foreign ownership in the nations listed companies. china currently halts by orders from firms when they are holding domestic stocks. last year, the index compiler msci urged china to consider easing those restrictions. the vice chairman of the securities regular told us that that may now be possible. >> i think there's the potential

to raise that cap to more than 30%. there were a few other countries who have a capea of 50%. why should china not do similar things? this has to go through a long process in our decision-making system. think that it's possible. jessica: president trump dominated proceedings and davos, lauding his economic achievements and attacking his political opponents, deriding his impeachment trial as a coach -- hoax. he says he wants a trade deal with the european union before the election in november by renewed his threats to impose auto tariffs if the block won't compromise negotiations. prime minister boris johnson's brexit bill has cleared its last hurdle in parliament. it ends years of deadlock that

paralyzed u.k. politics since the 2016 referendum. the passage vindicates his snap election last month where he asked voters to back his plan to leave the eu on january 31. the bill now goes to the queen who will sign it into law. --t puts brexit on track in in nine days time. the volcano south of melinda -- manila continues to vent smoke and ash. -- local residents have a thursday morning deadline leave the area. activity at the site is weakening but seismologists say an explosion may be imminent. almost a quarter of a million local people have been moved to safety but police say some are refusing to leave. global news, 24 hours a day, on air and on quicktake by bloomberg, powered by more than 2700 journalists and analysts in more than 120 countries.

i'm jessica summers. this is bloomberg. up, we look at the balancing act for asian central banks. the phase one trade deal is done but there are still uncertainties to contend with. we will talk about the southeast asian economic outlook. the ceo of malaysia's petronas explains about his future proofing the energy company. this is bloomberg. ♪

>> we have seen the end of the boom bust cycle. >> you would have to kill greed for that to be true. >> cycles and growth are caused by the boom in boston credit. >> there's a reason we have had cycles going back thousands of years. >> that is driven by changes in monetary policy. the fed is in a box. they have exhausted the roads. >> it can't tighten or ease. >> it is a form of qe. >> it has been helping the

markets along. >> it will not look like it has. >> we are at a sweet spot. >> relatively strong economic growth around the world. >> we never leave the boom bust cycle. >> all of our guests on the future of fed policy and whether we are seeing the end of the boom bust cycle. over in malaysia, the central bank unexpectedly cut interest rates following emerging market peers turkey and south africa in kicking off the year with easing. next up is bank indonesia and economists expected to keep rates on hold later thursday. of's bring back oxford head india and southeast asia economics. let me start with the bank of malaysia. how bad was it? they actually needed this cut. is it more of a preemptive move? been puttingy have

in insurance rate cuts. this seemed more of the same. they want to ensure that growth remains on trajectory. seeng said that, we do malaysia's growth slowing down this year as opposed to other places like singapore where we are forecasting a pickup. the slowdown is domestically driven from household spending coming off. to that extent, the bank has been proactive. we were expecting a cut in q1. it has come a little earlier than what we were looking for. >> how is the transmission mechanism looking so far, especially in companies like indonesia? they are expected to hold after several rate cuts already in 2019. priyanka: they cut by 100 basis points. they hiked by 175 basis point before that. growth was not going anywhere in

indonesia. it was not uncalled for. you are right about the transmission challenge. feeding tots are not the economy fully. in central bank did signal december that it would focus more on prevention measures and efforts to increase transmission. pressuresimportant are for rupiah, it is appropriate to keep rates on hold. we are expecting more of the same today. we see the rally in the rupiah. that gives them more scope to move again potentially. priyanka: it does. given what happened with the bank yesterday, the growing concerns around the coronavirus, possibly leading to some diminished growth in china, could force their hand.

the risks on that have gone up. the base case the fed has turned more neutral. the b.i. will keep a close eye on what the fed is doing. it has not changed. we do not expect the fed to move later in the year. regard, we might just choose to be cautious about the rupiah and not read too much into the current rally but sustain the current rally. >> always great having you with us. coming up next, we are heading back to davos to your from the u.s. transportation secretary on the boeing scandal. that's next. this is bloomberg. ♪

>> the u.s. secretary of transport has confirmed the boeing 737 max is grounded until further notice. bloomberg inook to devils and discussed what boeing needs to do next. >> this needs to be a collaborative effort. we're working with international aviation authorities. they need work with us. if other aviation authorities don't have the confidence and allow the boeing 737 to fly, we cannot fly. boeing cannot fly. >> did boeing misjudge the american public? it's always, always important to understand your customer.

again, i'm just going to say, from our point of view, safety is number one. there is no timetable. we want this plane to be safe. the issue here is safety. >> we have this bizarre situation where we have the faa saying that the plane will be ready to fly. >> the faa has never said that. the faa has never said that. we have a new faa administrator. he has just come on board in august of this year. he's a very experienced pilot. operations for major airlines. >> let me rephrase. there are companies that say, even if the faa let's this plane five -- fly, they may follow suit. the faa has lost credibility. >> i hope not. the faa works very very hard to still remain the gold standard of aviation safety. andfaa has tradition

through its practices, it has lifted up the record and standard for aviation safety throughout the world. they are very cognizant of their leadership role. we want to work, the u.s. department of transportation and the faa, want to work with our international partners. their trust and confidence is very critical. >> has the faa become too deferential? >> i don't think so. if you look at the raft of emails that have come out which are actually quite disturbing, quite uncomplimentary -- >> the boeing emails. >> they show a derisive factor, a disdain for regulators that i think is a problem. >> elaine chao there with francine lacqua and tom keene at the world economic forum. >> you will hear from plenty of other guests from devils later today including the trip.com ceo .

don't miss those conversations. let's get you a quick check of the latest business flash headlines. virgin galactic has scored its sinceonthly performance going public two years ago. the bank is having more conversations about the space operation than with any other u.s. stock. bridget galactic has soared in the past nine days, having initially struggled to convince investors following its move on the new york stock exchange in december. >> tesla surged in new york, pushing its market value above that of volkswagen for the first time to more than $100 billion. only toyota is bigger in the carmaking world. the jump in value may trigger a huge payout for elon musk if shares can sustain that level for the coming months. he would be eligible to receive the first award to be estimated worth $350 million. >> ford expects to report a $2.2 billion pension related loss, driven by lower borrowing rates.

reduce ford'sly net income by 1.7 billion. the loss won't affect adjusted earnings per share because it is -- it is considered a special item. coming up next on daybreak asia, australia's job numbers are due out in a few moments. it is always a volatile series. we will see if the robust labor market has stood up during the brush fires. this is bloomberg. ♪ good morning!

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numbers just job ,rossing, employment rising more than the 10,000 expected. of a volatile series of data coming from the national bureau of statistics. the december job percent -- participation rate holding steady at 66 percent. unemployment rate dropped to 5.1%. the survey was for 5.2%, where it has been for the previous month as well. we are also having a look at part-time employment changes, 29 thousand, just over 29,000 jobs added in terms of part-time

employment. no revisions have come through yet, but certainly it is a beat on both fronts, in terms of the jobs added to the economy in december as well as unemployment taking down to -- taking down to 5.1% when we were -- ticking down to 5.1% when we were expecting it to hold steady. data on theting brush fires, macro impact expected to be seen in coming months, but it could be a few months yet, given the fire season continues. let's look at market reaction to the better-than-expected market data out of australia. >> we are seeing a pop in the australian dollar, the 58 moving average for the currency with the aussie up .3%. is steady, holding on a two day advance below 110, and

we are seeing stock under pressure across the region, the nikkei 225 and cost be losing nearly 1% in asian trade so far this morning, while we are see the age of 200 pullback from the record close wednesday. checking on some movers in tokyo, chip stocks moving after results from two companies, rising to the highest level of -- level since january 2007. suvs in south for korea and overseas. biologic rising after fourth-quarter came in a beat, and national storage jumping in sydney after confirming it has been approached to buy capital partners. down to theydney lowest since june 2010 due to underperforming consumption unit

, and this stark losing -- and this stock losing its most in six months, qantas clipping for a fourth straight session, cautioning the carrier may see earnings risks from the coronavirus outbreak, with hong kong and china making of 12% to 14% of australian flights. we will keep our eyes on asian tourism and stocks that are losing ground in seoul, as we head to the lunar break that may be marked by falling tourist numbers. shery: and also the coronavirus weighing on oil prices. wti down for the third consecutive day, a seven-week low at $66 a barrel. let's bring in stephen oilczynski for a look at prices, at a time when the market is already struggling with massive supplies out there. what can we expect in terms of this coronavirus and demand risk weighing on prices?

stephen: this is something that is definitely going to be more of a demand-side situation. when you look at what happened during the ours epidemic, air travel dropped 8% in asia, that had a knock on effect and lowered aviation crudes in the region. you are going to see the same thing, according to goldman sachs, as a long -- as long as it continues and there isn't a strong response from the chinese government. you are going to potentially see a three dollar drop in the price of crude oil in the short-term, until there is a better response. that equates to basically 260,000 barrels a day of oil being removed from the market because less people are traveling, less people taking flights, especially during the busy 90's new year holiday. you will see less travel and less of a demand boost. because of that, that is going to stop prices globally -- going globally, but also

focused in asia when you look at jet fuel price indexes. much willingness would there be to opec to adjust their supply in reaction to something like this? is always quick to want to adjust what is happening in the market and adjust to the new scenario or emergency, if there is one. but at this moment if you talk at analysts -- talk to analysts, it is just too early. we don't know where the situation is. it is still unclear how far it has spread, what it looks like in china, and also how the chinese government is going to respond on a larger scale. you know, they have stopped travel from the region. but what will the chinese government do to hold it together? potentially the who rule if it is going to be an international emergency or not? they are a number of factors opec cast a look at. at the moment it is too early to tell if they will be having any kind of response.

haslinda: there is so much we don't know -- haidi: there is so much we don't know yet. our asian energy reporter talking out the impact -- talking on the impact on bond markets. hour,s open in the next lucille joins us from beijing. sessione last trading before the chinese new year and we are seeing liquidity thin outage as well -- then out as well, with markets closing ahead of the holiday. and we are also seeing the number of people affected worse than what we expected before the briefing from china yesterday. what do we expect and this lasted trading session today? lucille: yesterday was a wild swings in the market as people tried to digest the latest with the coronavirus outbreak. this comes after one of the

worst days and months for the markets. so in terms of what we are expecting today, there is still a lot of decisions that haven't been made. the who putback one day whether this is a health emergency. that designation will be important for investors. in terms of the latest chinese regulators have done, they issued a travel ban for wu hand uhan, which is seen as a heavy-handed measure. whether investors react positively to that, we will see also. yesterday what we saw at the start of the day, 80% of stocks trading in shanghai and shenzhen were down, including drugmakers. but that largely recovered by the end of the day, especially with the briefing work authorities gave the latest numbers of fatalities and said they would -- pre-thing where authorities gave the latest numbers of for tallies and said

they would start nationwide screening. investors are happy to see the transparency. we will see if that is the case again today. shery: how much are these market moves we have seen, especially the pressure we have seen in markets across asia? is it just sentiment, the fear this could get worse, and how much is this on earnings concerns that some of these companies will really take a hit? a lot of this has to do with profit-taking for the lunar new year holiday. so even before the worsening news on the coronavirus, we already had heard from investors that they were closing things up for the holidays. and with this, there is just that level of uncertainty, where you don't know where things are headed. sense to close some of those positions write ahead of the holidays. liu, thank you,

china regulations reporter there. speaking of davos, the chinese regulatory vice chairman told us what impact the outbreak may have on the markets. challenge,y it is a but if there is any country in the world that can deal with this kind of challenge, it must be china. i have no doubt our government and the people will be able to deal with it in a timely and effective manner, and whatever damage it may have to the economy is going to be very limited. it comes ahead of the lunar new year celebrations in china? unfortunate,ttle the timing, but you cannot control the breakout of a virus. the net effect is it imposes an inconvenience on travelers. but the rest of the country should be ok. face-oneget to the

agreement between china and the united states and focus on the market side. i want to go through things point by point and get your sense of where this is headed. one of the agreements is that by april 1 two thousand 20, china will eliminate the foreign equity cap for securities companies. is that right, april 1, 2020 that gets done? >> yes. >> china will eliminate the foreign equity cap for foreign-exchange companies by april 1, 2020? >> no problem. >> one concern was that the rule of caps listing holding companies in china around 28%. i know the index providers would like that change as well. >> they limited it to 25%. i think there is a potential to raise that cap more than 30%, because there are are a few other countries, like japan, korea, there cap is about 50%, so i shouldn't china do similar things?

of course this has to go through a quite long process in our but ion-making system, think that is possible. >> how quickly? manyat depends on how companies in the 30% limit are hit, because right now we only have two or three companies that but we haveit, about 800 companies listed. we will see. the good thing about china, our decision making is that we are very responsive to the demands, requirements, the needs of international investors, and we take their needs into account. that was janice regulatory a third -- chinese regulatory authority vice chairman. jessica: a united nations panel is accusing the crown prince of

saudi arabia of possible links to the jeff bezos hacking. to bezos belonging was infiltrated via a video file sent by the whatsapp account used by the prince, according to independent u.n. experts. the report says that hacking could influence if not silence reporting on the kingdom by bezos's newspaper, the washington post. saudi arabia says the allegation is absurd. washington embassy issued a statement last night and early this morning saying clearly that this is absurd. they called for an open investigation so that we will know what happened. ♪ jessica: president trump's impeachment trial entered its second day. house impeachment managers presented the case to the senate. resident trump called the proceedings a hoax but a new survey says almost two thirds of americans believe he is hasnitely or probably --

definitely or probably done things illegal, either in officer during the campaign. ♪ and the pentagon continues to rack up big numbers, making 35 trillion dollars of accounting adjustments late last year alone. the total is larger than the entire u.s. economy and highlights continuing difficulty in balancing the books. $730 billion worth of defense funding in the u.s. budget is dwarfed by the adjustment, which includes the most expensive weapons systems in the world. ♪ jet engine maker rolls-royce said the aerospace industry must step up its response to carbon emissions or risk a backlash. the ceo said targets for cutting co2 a decade ago are no longer enough and aviation must go further. he told a great -- told a trade group public perception is 10 times worse and the industry needs to act fast to avoid being

demonized. global news, 24 hours a day, on air and on quicktake by bloomberg, powered by more than 2700 journalists and analysts in more than 120 countries. i'm jessica summers. this is bloomberg. ♪ next, ouring up interview with the boss of asia's largest pharmaceutical company, discussing plans to bring 50 new drugs to china in coming years to read this is bloomberg. ♪

♪ markets under pressure as we head towards the open in china. asia-pacific index down .25%, shanghai, shenzhen and hong kong coming online for the last trading day ahead of the start of lunar new year holidays, as the coronavirus spreads from .uhan read at least -- wuhan at least 17 people have died, rattling markets around the world. pharmaceutical ceo says

china is a big focus. weber spoke to bloomberg at the world economic forum in davos. christoph: for research company, it is a fantastic opportunity, you can get a new drug approved faster and be reimbursed faster. so it is really exciting. >> you are introducing 10 drugs in china over the next few years. what are these drugs and what is the potential for growth? launch 50 we plan to new medicines in the next three to five years in china. and these are medicines we are developing for the u.s., europe, japan, so there is no differentiation anymore and you will find many things in the oncology space. which drug has the

biggest potential? example, we just launched a drug to treat myeloma in china, and after one year of launch in china, we have more patients treated with this medicine then in europe after five years. this is the type of potential you have. haslinda: in terms of company strategy, are we likely to see more asset disposal for m&a's to grow the business? christoph: we just did a significant acquisition read we are very pleased with it. we just finalized our integration and our now operating as one team, so that's great. but we still need now to run efficiently, this new organization, so we don't have line, we have a significant pipeline, e-cig

difficult portfolio that we want to drive. we have a few things still to do when we are working on it. add upa: what would that to come the asset disposals? : our target is $10 billion over two years and so far we have achieved part of that. dengue is a new issue and with climate change is expanding. so you have it expanding, dengue . we have vaccines which earlier research is showing it is a good vaccine, very high level of is not a but it perfect vaccine. on one type, the efficacy is lower than the other spirits are we are still analyzing the data, but it appears that has the potential to really help other issues with dengue. haslinda: what areas are you targeting, latin america?

asia, latinast america, south of china, wherever dengue appears. >> coming up, the future of malaysia's energy company p this is bloomberg. ♪

♪ is esg.er big wave that is real. another example of how this factor lies with people. every company has to do something, i have children and a grandson and they are going to look at me and say, what did you do? a strong commitment out to the year 2025 to make all our packaging reusable or recyclable. >> we have seen that if we have a carbon price or carbon tax all over the world, this could help us in this transition. >> we have to set up policies around the world to chase the demand patterns of the market, because it isn't supply that creates economics, it is supply and demand and you can just do it with supply, you have to actually change demand profiles. >> in terms of the next generation, clearly they are very focused on the ethical signature. >> probably because of

technologies, new industries, it is a win-win. haidi: davos guests discussing the role esg will play for investors in 2020. the ceo of the state-run malaysian energy company says the company is capping renewables. he spoke in davos. consumption is growing on my view is that we should develop all forms of energy, oil and gas and other energies as well, including renewable energy. only last year we announced our new statement of purpose. be a progressive energy and solutions partner and reaching for a sustainable future. this is our new statement of purpose.

we are really looking at our and this year we have allocated about 5% of our capex for renewable energy, for new energy, which is solar and wind. this energy transition is to me, just an additional energy requirement instead of a transition. i still believe oil and gas will still play a major role, but it will be complement it by other forms of energy. haslinda: you talk about rising demand. where do you see the rise in demand? , gas demand for the next five years we think it will be around 3.5% to 4% every year. china is a big contributor to the demand in the far east.

haslinda: we are seeing tensions between the u.s. and iran. is that impacting your operations in iran? >> we are in iraq and today it has not affected our operations, but we are closely monitoring in the event there is any escalation of risk. the safety of our staff is a priority. haslinda: what safeguards are you putting in place and at what point would you make an exit? >> of course there are signposts that we watch out for. we are also in communication with other operators in the area, so we are always up to date on what is happening on a daily basis. i get daily reports from there. haslinda: oil prices have slumped. what is a sustainable oil price in 2020? >> this year our planning basis would be in the high 50's. shery: that was petronas ceo

in davos.nda amin bloomberg has launched a bloomberg green using data and in-depth reporting to illustrate the scale of the challenge. find it all on the terminal online and radio. we have breaking news. bloomberg learned wells fargo's main regulator is preparing civil charges against former managers related to their roles in the retail banking scandal. that is according to sources familiar with the matter. they say the office of comptroller of the currency has been readying notices of charges against as many as 10 individuals. the people say they could reach settlements with one of them. they include carrie tol stan and the former chief administrative officer and the one time chief auditor david julian. let's get a preview of what to watch and markets as we had to the china open. >> health care are among the

best performers on the index, we are watching chinese antibiotic makers for a third straight session. given the outbound travel locked down on wu hand, jumping into the terminal, chinese 20%anies with at least exposure, and a store operator group. a lot to watch for the open and the chinese markets in their last trade day ahead of the lunar new year. coming up, more on the developing story of the coronavirus outbreak with the university of hong kong school of public health. ♪ hi! we're glad you came in, what's on your mind?

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♪ beijing,.m. in singapore, i'm tom mackenzie. "bloomberg markets: china open." welcome to"bloomberg markets: china open." -- welcome to "bloomberg markets: china open." david: china bands travel for the coronavirus outbreak. david: china bands travel for thethe locked down ahead of the lunar new year. yvonne: the virus continues to stress investors and they are watching any development. the saudiexperts link crown prince with the jeff bezos iphone hack. the kingdom