in an hour. day break asia. >> our top stories this friday, chatter expands, travel curbs as the virus reaches singapore and japan. lockdown ahead of the lunar new year. concern about the threat to

growth sparks a rush to havens. oil at its lowest level on of weak demand >> singapore says the world must together to defeat the virus. we hear from the world economic davos n >> several markets offline for holidays.new year australia, though, opening for trade. what are you seeing? well, shery, we are seeing down side. the asx200 is set to he wanted points, andve 7,000 it's headed for a second weekly gain. s&p minis are just slightly igher early in the asia session, and the kiwi dollar topping 66 after jumping on that beat from new zealand with fourth quarter cpi coming in at 1.9% on a yearly basis, yen just holding steady after touching a two-week high against the greenback, which is bond yields ever lower with caution abounding over that viral outbreak.

we saw chinese stocks on thursday ahead of that lunar new year holiday, and with that let's get a quick look at the that are closed along this morning. heidi? hong kong with a pretty truncated session this asia friday. jessica you now to summers. jess. jessica: thanks, heidi. president trump said i would like to have witnesses testify at the impreachment hearing. high-profile figures can't be questioned because of national security concerns. he is reported to be ready to by former pearance security advisor john bolton and other potential witnesses. end of his davos trip, the president lashed out at his democrat critics in the and praised his own defense team. ever used dent has foreign e to compel a ation to help him cheat in our

elections. prior presidents wob shocked to conduct.by such heidi: bank indonesia left its a chmark rate unchanged for third straight month, but left the door open saying the economic outlook is improving. kept the seven-day reverse repurchase rate at 5%. predicted by the majority of those we surveyed. the governor later said there is but bank indonesia it for the moment. they voted heavily in favor of he deal, agreed with the u.k. in october. it had earlier become british law after being signed by the queen. eu parliament technically does have a veto over the deal, but is not exercise it next week. climate activist greta has

triggered a split at the world conomic forum in davos after, again, criticizing business and political leaders for inaction. chancellor angela merkel called on her peers to work of ther and take the views young people seriously. however, treasury secretary mnuchin questioned their take on economics and told her study the subject in college. global news 24 hours a day on quick take by bloomberg powered by more than 2700 journalists and analysts in more than 120 countries. summers.ica this is bloomberg? >> thank you. let's get back to you are on top story. the world health organization calling theshort of ew corona virus from central china a global health emergency. it's killed at least 18 people spread to several countries.

japan concerned. the numbers that we're seeing, and also, any sort of domestic to the who refraining declare ond meeting to this health emergency? >> the number of cases continues to rise. second case in japan. the first case in singapore. this has spread from china the country as well as to southeast asia. united states the as well. in south korea, two on top of that. so in terms of the response, the world health organization has refrained from calling this a health emergency. no response from the chinese government yet, but we know they're interacting very closely with the world health organization, and they've sent experts to china to help monitor the situation. the w.h.o. has been criticized in the past for sounding the alarm too early, late,unding the alarm too especially in terms of the ebola crisis in 2014, so they've been careful to say that this could quickly go from a local crisis into a global one, and continuing to

monitor the situation, and they could reconvene at a moment's their decisionge should the situation worsen. now, the death toll has increased to 18. there are hundreds of people infected, though. researchers say that number thousands.n the now, though most of the cases ave been mild in terms of the response to contracting the virus, they say that about one-fourth, this is according to the health authorities, of the people that have contracted the some serious had health issues as a result and that a significant portion of those who died, however, did health -existing conditions? >> and perhaps more concerning is that the latest death that now eported overnight is from a different province than original province. given that we are now seeing this coronavirus spreading china, how are we expecting people to react during year festivities? >> well, this is normally called

the largest migration in the world's history where chinese citizens, hundreds of millions them, rack up some 3 billion trips across the country, across the world. many of them ies, are being canceled, officially canceled, in beijing, hong kong, macao. the efforts to limit public atherings, there is a travel lockdown in nearby cities. that's a city of 1 1 million eople just there alone, so you have millions of people whose travel plans are being halted, one he sentiment is really of fear and concern right now. have mafshgs and hand sanitizer being stripped from malls and stores. you have office buildings and and stores monitoring for temperature and passing out hand sanitizer before you can even in. you have some airlines and travel destinations, including resort, s disney offering refunds, and in that, there is obviously a concern that chinese's economy, which has just started to stabilize, could at risk again given how

mportant the services economy ? to the economy. >> let's take a look at how this will affect markets. markets do intend to react at the beginning of a global health crisis falling of the e month in five last eight large outbreaks. oining us now is rooen advisor solution cio russy. great to have you with us. >> good to be here? >> we know that you're a long-term investor. i do wonder, though, if you consider changing your portfolio if this health crisis the e as large as perhaps outbreak back in 2002. at this point we're still going treat it as something that is on year-term volatility. we are putting cash into the each and every day. it could impact some of our term, g decisions shorter

but longer term it has not hanged our thesis as of yet >> we have seen this rising trend of value stocks gaining last part of last year. that's really been a 2020.w-through in is there a reason to take another look at this sector as rest of the the year? > so we do like value stocks, and that is primarily driven by the fact that if you look at evaluations, it's the most attractive it's been in several decades. that we k the rotation did see last year had a lot to do with the u.s. dollar, and the .s. dollar did break down late last year. the dollar obviously has generated some strength so far his year, but looking at the charts from a technical standpoint, it seems like or aybe we're just hoping that that trend is actually going lower for the u.s. dollar, which would benefit not only value non-u.s. stocks as well? say, you say g to

that the weaker u.s. dollar is going to prevail as a theme this year. would you really need to see that before you find some value in, say, emerging markets that also been on a run-up? >> it would definitely help. markets have a couple of things working in their favor right now. relateta evaluations are incredibly valuable. earning growth is starting to bottom, and that would be a nice wind for emerging markets, but really the dollar would help the probabilities of emerging outperforming. there are a lot of things in place for the dollar to get weaker. gain, it is overvalued on a long-term basis. technicals we talked about, entiment, the deficits in the u.s. would also suggest that the dollar would get weaker as well. we think the odds suggest dollar does, the oddsit uggest that emerging markets will outperform? >> if consumers are -- and, also underpricing

the potential for more movement year?the fed this >> yes. it's something we're watching. long-term economic growth and for real gdp it's 3% plus. we've been dealing with 2% plus while. obviously, that's a function of productivity, and labor growth, probably not going to change. we do have already a lot of stimulus already in the system, monetary.'s i would expect yoefl fiscal stimulus as well. expect on the margin, however, while we may not see gdp, and we dles on may not get incredible earnings growth, it does seem like all those numbers should improve in again, that , and, should be a tail wind for the market? > in what sectors because we continue to see the pressure on manufacturing, on business yet, thet, cap-ex, and consumer seems resilient >> yeah. well, in terms of the sector like, i mean, we i've talked about value versus growth, but you really need to drill down and look at different

sectors. again, it goes back to the relative valuations of sectors versus the market, and going several decades as well. value-based sector that is we really like are, of course, financials. energy stocks, natural resources, but, actually, one more growth oriented sector that we do like, which doesn't fit the value theme, but it does fit of health care. when it comes to the consumer, consumer discretionary stocks do us. very expensive to we've actually been underweight portfolios of late. e also are in technology as well >> we have day three of the impeachment trial here in the sugs. ow will this impact your assessment of the markets in 2020? to bear something watching. in terms of the greatest risk hat i'm looking at both short-term, intermediate and longer term. intermediate term, it's looking doing in terms of his chances for re-election. at this point it still seems reasonably good bet that he will get re-elected again looks like ut if it

that's going to start to deteriorate and the narrative starts to change as well, that could actually put a lot of mpact on the market and could, in fact, create a lot more volatility as well. we're not seeing it as of yet, something we're watching? >> appreciate your time. orion advisor sloogss chief investment officer. more coming up on day break australia. intel jumped in late trading after posting bullish revenue forecasts and breaking down the earnings >> up next, our exclusive primeiew with singaporean minister in davos. his thoughts on the virus outbreak, the trade war, and more. this is bloomberg.

> the coronavirus has spread faster than expected. collaborationonal

is needed. >> it's an xwampl of why countries need to work together. you may wish to be deglobalized, virus is not going to be deglobalized. it's going to come to you, and when it's time, it seems to have in china, but next time it could be another place unless share st one another and data and share the genome public and share the are dying., people system oping, or is the breaking down? it's a big problem for mankind? >> not as people will be as rationale, and a lot of people will say this is a reason to put immigration and travel >> unless you are going to build -- ll down walls are in fashion for a special summit

in march, and that is going ahead at the moment is.yes, it i expect to be there. inare supposed to be meeting las vegas on march 14th >> and the purpose being? to meet the u.s. president, and i'm sure we will where we can areas cooperate and do more together, that mr. trump and unless his many domestic preoccupations will send a asia is important to him and southeast asia has its part in the american scheme things? >> do you have a prediction of 0.5% to 2.5% growth, which i numbers, but that's a pretty wide -- pretty wide -- >> you really don't know. >> exactly? really don't know. that's the range. that's the range of what our of, but s capable whether we realize that that potential, depends on international conditions >> you say at the moment -- >> some of those are not issues. i mean, if there's a blow-out

etween china and america or if there's something happening in the middle east, i don't know, iran, or because of syria, well then all bets are off do you think phase two of the u.s.-china talks will affect singapore? they've had this for the first phase, which deals with a few -- everyone is relieved that you at least stabilize a now ion for a while, and you've got to go further, and there are serious issues that on both e discussed sides. both sides have to make quite basic adjustments. one side, on the americans, psychologically, you mind.o make up your are you doing this because you a level playing field and make sure the chinese are playing by the rules of the man win, ay the best or are we doing this -- are you doing this because you want to winning and whatever rules of the game are necessary,

rules?l create those >> what is your instinct on that? any people would look at the trump administration and say if onald trump stands for anything, it is america first, and that by definition means america must finish first? >> it means you do the best for the united states. o do you do the best by prospering in a world where there are other countries who you do g well, or do your best by being a big country world, and i'm not sure that the second is a very good answer. the chinese side, i think they have to make up their minds hat they are going to be constructive players in the global economy, and in the community of nations >> prime minister loong in davos. now, let's head back to sophie for a check of what's markets in the early session >> well, turning to sydney, eye on l & g an related stocks which are trading

mixed and mostly lower this morning. australia's resourced inister saying that the government is considering a policy. gas reservation that could trim electricity bills for consumers and businesses who have had to tripling of gas prices since 2014. now, i want to quickly check in australia as well, which is falling this morning by as much as 5.7%. that's the biggest drop since 2018.t flipping then to a february low four-year guidance by 150 basis points due actually consumption sed towards natural disaster of 750 million australian dollars, and reaffirming low single digit growth for gross premium 2020, heidi. coming up, intel jumping in posting ing after bullish revenue forecasts. we'll be breaking down the results next. this is bloomberg.

>> intel is giving bullish forecasts for the next quarter, and the year i was powered by evival in demand for personal computers and servers. look closer at this with bloomberg deck nolg ian king. givenpress i have is this we have seen other firms giving out down beat guidances? >> yeah. i think it's called the market analystsalled a lot of and investors that have been broadly pessimistic on intel's prospects, and they're coming in that they've blown it out. surprising and, obviously, it's eflected in after-hours trading? >> what about i guess looking forward. how sustainable are the numbers that we're seeing?

>> intel executives are saying, of spending that we've seen, particularly, from amazons, enter, the the tencents, the badus spending chips to right now on build out their data centers. very difficult to predict how sustainable that kind of level of spending is, when they'll go digestion called a phase. that's sort of second half is ikely to see, you know, growth abating somewhat, but even so, that's a long way ahead of where was for theonsensus whole of the year? >> still, how positive was from cloud service providers that they can actually go ahead and show these numbers?ve >> yeah. i mean, that was the whole upside came from that, you -- from that small group. as anow, the chip division whole is up 19%, but the cloud service provider revenue is more double that in terms of the

increase, so it doesn't get any better than that, and, you know, intel, as i said, pointed out to very high this is a level we're seeing. two, three quarters in a row of this extremely elevated spending. not reasonable to expect that will continue forever? and does this calm some of the criticism that intel has fallen behind when it comes to up with competitors? >> yeah. i mean, it doesn't hurt, obviously. tips were so ir bad, then why are people buying their chips at the rate that they have? clearly, this doesn't hurt their argument. about they did talk what's going on with their production in general on the say, look, y did to be facing more competition. to market from a they're doing for themselves. they're finding no problems with

urrent market, you know, for chips based upon whatever production they've made. it helps a lot? >> yeah. very, very bullish forecast in e for revenue from intel s ian king with the details. apple leading things on tuesday. the rest of the pack following shortly after. health so be getting a check on boeing on wednesday. it's continuing, of course, to truggle with the grounding of the 737 max with reports of it getting back to the skies and and out again.t also have a pretty -- in asia as well including samsung's final numbers amid the rebound that we're seeing. let's get a quick at the latest business headlines. morgan's record 2019 has been a good year for jamie dimon. $31 million in work.comp for his they posted record profits for the second year in a row.

performance and annual base salary of $100 million, and a cash bonus of $5 million. jp morgan was more than $36 billion executivesells fargo are facing almost $59 million in fines and being banned from u.s. banking for their roles in a string of scandals. the penalty of $17.5 million and a ban as the egulator showed a rising appetite to go after individuals. wells fargo sparked widespread after employees opened millions of fake accounts to goals s sales >> chemical giant bayern is said in talks that its round-up weed killer causes cancer. they're discussing a resolution top $10 billion. they will set aside $8 billion current claims and an additional $3 billion for future cases. the $10 billion

firm isn't final and could change. oming up, we are counting down to the latest inflation rate out of japan. bloomberg economic predicting a december those numbers. we'll be breaking those numbers as they come in across. this is bloomberg.

sdmrimplts we are getting numbers price inflation out of japan. headline inflation growing 0.8%, expectations.ng the expectation was for a rise of 0.7% year-on-year for the of december, and now we seen headline inflation being food y rising fresh prices, but excluding fresh ood, year-on-year cpi rising 0.7% meeting expectations. his is also an acceleration from the previous month. core inflation we're talking food and uding fresh energy prices as well. that's meeting expectations.

of 0.9%.ear growth meeting expectations. a slide acceleration from the month.us core inflation has been helped prices, but l bloomberg economics now warning that there could be some underlying pressure slackening output gap, rowing so something to keep an eye on as we get headline inflation 0.8%. in at growth and core inflation expectations arrive at 0.7%, but, of course, well far d.o.j. target of 2% like a broken record, right? we keep talking about the 2 % gettingreal prospect of there any time soon. let's get some reaction to that tokyo. we're joined now the securities head of japan economics. to have you with us. the numbers aren't bad, as shery out.ed they're nowhere near the 2%, but

at least they're not going into reverse. to look at this chart to take a look at where we've been when it comes to bank of japan policy. we've had 20 years now of ultra low interest rates gone into rates, of course. what more can they do, and have we reached the point where it's returns for ing monetary policy now? >> yes, i think in terms of what the bank of japan can do, the can do is to be patient. you know, monetary conditions re already very, very accommodative and loose, so it's up to, you know, the economy to heal, and for that we need do better. it would be nice if we had some tail winds for fiscal, but i think there's not much more that japan can do on its own to stoke growth and point? on at this >> what are the potential head winds to growth, because at economics we're seeing a potential trending lull when it comes to gdp. shery mentioned the issue with the output gap there, and we're

also seeing going into the lunar year holiday, which is learly a peak for tourism and consumption in japan that the travel bans potentially affect the number of chinese tourists that can head to japan. it's the top destination for chinese travellers. do you see that playing out in data coming out soon? >> yeah. terms of where we stand on growth, there's two big issues right now. exports are now, still very sluggish. that's a problem that we've been xperiencing for the past two years. in terms of impact of potential know, visitors u to the country, that could make in january or february. it's just going to add to those situation does get worse. the other issue is domestic demand, and specifically consumption. we have the tax hike last october. you know, the pay-back has been igger than i think anyone expected, and it's been

exacerbated by an unseasonably depressed r, which is spending on apparel and things like that. both consumption and exports are sluggish at ery ? is point. >> that would affect services and exports and things like by tourists.ng then the secondary impact is a ittle bit harder to gauge because that would purely be the pill-over effects of weaker conomic activity in the region as a whole. it's something we need to monitor. >> when we look at the japan still in prices, can we see the lingering effects of that october sales tax hike? there?till what does this mean for

consumption going forward if get priceyer?o > well, i guess the good news for consumption is that that this tax hike did not lead to you know, f big, headline spike and sticker prices that we had in 2014. back then food inflation, for example, went up in t four percentage points a short span of time. we're not seeing that this time around because the government has implemented the redugsed tax coupled with the fact that they've made, you charge ucation free of for some segments, but the increase -- the mechanical boost to inflation from the tax hike very small, which is very helpful for real disposable income. the problem is there's been a hit on sentiment, and, you know, obviously, the payback to activity. i think the issue is consumption is weak, and that's going to on inflation? >> we're also talking about reports from the u.k. media that to seek that wants first post-breaks it trade deal

with japan with the focus on services and digital products as well. how much of a boost could a on trade be be japanese economy this year? >> yeah, i mean, unrelated to whether these trade deals go know, , i think, you we've been seeing the exports important the most variable that drives the japanese economy, so the extent of the turnaround is going to be important. what we're seeing reason for xports is that ic related exports are looking better, but the problem is it's been offset in auto now, slowdown exports, capital goods overall is not yet strong, so i think is that we are looking for an export recovery, but it could be a pretty mediocre one. case, you know, japan's growth is not going to get a boost? >> always great having you with us. thank you. head f america securities of japan economics >> australia markets have been

trading now for half hour. sophie for what to watch in the market itself >> we are seeing sydney stocks drop we saw after a on thursday. we have financials helping provide a list, but we do have ore minors amid concerns that the travel ban may dent into construction activity and for iron ore.mand that steel-making ingredient. seeing australian bonds continue to gain ground for an eighth straight session, pushing the ten-year yield closer to 1%. well, the aussie dollar is edging lower this morning. we are seeing it headed for a declines.k of we have this morning's release for january moving ever lower to 49.1. the weakest reading. just holding steady here after he jump on the back of that inflation beat, a surprise move there for inflation. at one point on a yearly basis which brings nd,

cpi closer to the target midpoint. eidi >> all right. let's get you to jessica summers in new york >> japan has confirmed its ownaviruse of the car in a patient who travelled there epicenter.inese singapore has also reported a case. travel curbs nded beyond in an attempt to rein in an infection that's killed at and sickened e hundreds more. the world health organization thestopped short of calling outbreak a global health emergency. france is to step up its investigation into former boss carlos gohn. it's asking a senior judge to look into the money he spent. on whether he improperly used the renault to host his eal wedding party at versailles. suspicion he may have helped transfer money into

company in olled lebanon. >> myanmar is being ordered to implement emergency measures to praekt its minority muslim from attack. the international court of justice accuses myanmar of genocide the 1948 convention by clearing people out of the state resulting in death, rape, and the flight of thousands of people to bangladesh. saysar denies genocide and it is already trying to restore peace. and iran says the american top general ined baghdad took off from a military base in kuwait. he revolutionary guard says it did detect the drone and fighter jets near baghdad airport, but was the ow the general target. the semi-official news agency in the least four bases gulf were involved in the killing of the official. a day on s 24 hours air and on quick take by

bloomberg powered by more than and analysts sts in more than 120 countries. i'm jessica summers. this is bloomberg. coming up in our latest equality.f bloomberg we examine the world of bess strategy and ask why some of the firms arep consulting struggling to retain women. this is bloomberg.

day break asia. let's get a quick check of the latest business flash headlines. intel is increasingly bullish on 2020. trade jumped in late after it issued strong quarterly nd full year revenue forecasts that both beat analyst estimates. they say they expect positive demand for pcs and increased of data g by owners centers. it's aiming for full year sales $70 billion. luxury brands

also took on european trading about growing concern about the ales impact of china's coronavirus. lvma dropped in paris. swauch slipped in zurich. europe's bigger airline stocks ep.e also shake carriers ledz those declines, luftsana air france, >> apple stemmed iphone sales last year as dia shipments rose 6% compared with fall in 2018. discountsing the 10r model made selling phone in the country while the later introduction of the iphone 11 a lower opening price helped gain share through the festive season. tough s facing a challenge from android rivals than prices average less $200. $276 king a loss of

million in the process. the ambitious development includes offices, condos, and a to l and had been set include the city's second tallest office tower, but it has for months amid construction and cost challenges. bloomberg equality features foreign looking conversation with influential business find out how they're aving the way for more equal future. china correspondent has a special guest. selena >> i'm here with the partner at wyman office.liver she's worked at strategy consulting for over a decade having spent time in china, asia, and europe. the world's top consulting firms have struggled retain woman, and the portion of women that make it to partner level is extremely small. the drivers of this discrepancy? hello, selena. i believe there are three key reasons.

the first one is the challenging long hours, of the the amount of travel, and also, the lack of control over your calendar. secondly, when you move, you also become more senior. internally with senior partners as well as externally with clients. important. more and because interminally and externally, those are mainly men, it's a bit harder for think and certainly, i because of the lack of senior role models, a lot of young consultants think it is not possible while i personally have love my work, i love being a mom, how can i make it work? if you have that mindset there's lot more possible, and open, and are really they really want to help you to succeed and find solutions that work for you? consulting like many other industries as you rise up that incredibly iece is important. in terms of networking better ith the opposite zen e gender or vice versa >> i think be yourself and focus

content. you can be as good as networking can be >> why is it so challenging, though, do you think for women o be networking with primarily the opposite gender in these top ranks?ive >> he think because it's very to be closer ople to the people that are more like them and because they're just more men, it becomes harder for but i think what we see of hat it's bias that a lot men are more aware of it, and, putting more effort in supporting women, and i see a big change. you have more and more consulting firms like deloitte and mckenzie setting these female partners with oliver wyman targeting 20% 20 years.tners in what are the benefits and drawbacks for quotas. effective? >> i think they are effective. a few years ago i thought it was

now just looking over the past five years that think it has i actually really had a rising change. i definitely see the effect of it. ago it was years more about talking, the importance of women, but in the quotasw years with those in place, i see it as much more executive support behind it, much more are michigan tiffs and more confidence to women that the tuck y wants you to succeed. as a result -- > what are the concrete actions -- ankz actions.e i think as a result just taking example, we as an have more female partners in the past few years, and we see that new talent is growing we a much higher share managers, and that's for the future projects around the world

in this industry. i'm wondering if you have differences between the proportion of women and the in ption of this industry asia for women versus other parts of the world >> yes. difference. if i compare europe with china because those are the markets that i have worked most in, i there are some differences. i think, first, the full in hina, i think the working culture is very different. students, they're very ambitious and willing to don't seehours, and i any difference between men and women. if you condly, i think recall more senior start having a family, in china it's very normal that your parents help care of your kids, so having a full-time support at you makes a difference if have a career that's requiring flexibility. an important meeting that you need to tend to, if you have support at home, even if in europe where

you have to be there at a fixed to pick them up wyman hong at oliver kong office. thanks for joining us. heidi so much for that. don't forget, if you are away always creen, you can find in-depth analysis on the day's big news makers over on bloomberg radio. from now broadcasting life our studio in hong kong. you can listen in by the app. plus or oomberg radio bloomberg radio.com. this is bloomberg.

u.s. commerce secretary new limits are to be placed on american to.panies that supply oss said additional restrictions will be announced oon

> waiwai has been encouraging american companies to flaunt the u.s. laws, to flaunt the regulations that we have. a very dangerous practice, and it's not a very good practice. term, it's not going to be good for them. all e executiving always the mechanisms of export they've heightened our sensitivity on the one that encouraging americans to flaunt. diminimus role about moving things off shore >> objectives are important. i just wonder if the objective it off from u.s. exports. is that the ultimate objective here? ultimate objective is to protect national security interest? > how do you look at the national security interest on the one hand and phase two talks on the other hand? reconcile the two things? here's for me what it's been difficult following the administration. the one hand that huaweii story is on a separate

track >> it is president will tell you otherwise >> i mean, you're quoting from he president your version of things. i can tell you -- specifically the president has said about this same story. enforcement an action. it was not negotiated during and as we stand right here there's no particular intent to negotiate it in phase two? quite truly that you could cut off huaweii and still progress with trade two? >> you are building in assumptions? >> i'm exploring that with you now but we haven't cut off >> the first round of expedition hearings for huaweii has wrapped vancouver. let's have an update from bureau chief natalie.

so the issue of double and if we is here, got a judgment on this regard right.t's so this week of hearings has been only on this double criminality principle. it's a core principle of canada's extradition law, and it asks the question, an munk's alleged conduct be considered a crime in canada. defense has her been no and that's because they say that the conduct is sanctions a u.s. violation. and that canada doesn't have therefore, it so, would never have been considered a crime in canada. rebutted cution has and said no. at its essence, munk conducted a fraud. and ied to hsbc bank tricked it into conducting transactions it otherwise wouldn't have. a decision served today as was -- as was expected.

t's an extremely complex case egally that is likely to set a precedent here in canada. it could be weeks. months for a decision >> of course, in the meantime, case really becomes a national cause in china. it's become a real source of terms of china's canadians f >> dhooin from the beginning has called this a politically case and an arbitrary detention by canada. bviously, it's taken actions that show to what extent mong cause for a national the chinese government. among case to canadiens days of mong's arrest, and they aven't seen a laureate, and billions of dollars in canadian imports have been halted over 13 months since her arrest. >> vancouver bureau chief

natalie, thank you so much for update. now, south korea closed for the lunar new year holidays, but opened in tokyo at the top of the hour. let's turn to sophie. session in a thin asia? >> several markets are offline. pointinging s higher and there's an event. ou have the yen trading at 109 spot 55, and it's higher by one-tenth of 1%. ome returning to markets after the w.h.o. did not declare the corona virus a global health emergency. take a look at the chart right here. asian stocks, yeah -- tech stocks have been largely weeks ted throughout the trade.'s choppy trading near record highs. you can see right here. more support could come through after intel's bullish guidance, levels could lock in for the semiconductor space. we're going to be watching chip equipment makers after they mark first year-on-year ride since january of last year.

on the radar on its earnings. third quarter operating profit. intelligence berg does see up side on improved chips, heidi g >> plenty more to come on day break asia. of course,ing ahead, to the month open in tokyo as a as we have aession number of markets already closed for the lunar new year holiday. shot you are looking at a of tokyo. the inflation numbers this morning, pretty muted still, but futures looking like we'll see a little bit of positivity at the market open. lots more to come. this is bloomberg.

haidi: very good morning. i am haidi stroud-watts in sydney. asia's major markets have just opened for trade. shery: good evening. i am shery ahn. sophie: i am sophie kamaruddin in hong kong. welcome to "daybreak asia." haidi: our top stories this friday, china expands travel curbs as the coronavirus reaches singapore and japan reports a second case. wuhan remains in lockdown. concern about the threat to global growth sparks a rush to havens.

oil is at its lowest level on speculation of weak demand. shery: singapore says the world must work together to defeat the virus. we will hear exclusively from the world economic forum. >> it is an example of why countries need to work together. you may wish we would de- globalize, but the virus is not going to. shery: south korea away on lunar new year holidays but japan is seeing some action. sophie, what are we seeing? sophie: we are seeing green shoots come through in tokyo. the nikkei 225 adding .3% with chip stocks among the gainers early in the session. tokyo electron gaining ground after we saw billings rise for the first time in 11 months on a yearly basis. also keeping an eye on -- following its earnings updates. we are seeing the yen retreat somewhat. what a -- set for a weekly gain.

latest inflation data from japan. consumer prices rising on that tax hikes along with increased gas prices. as take a look at what's going on this morning in sydney. we are seeing the asx 200 at point percent with financials providing a boost. we have resource names under pressure. bhp sliding on the restriction looking toavel derail construction activity which would hurt demand for the ore.making -- iron holding steady. set for a fourth weekly loss and the kiwi dollar holding steady above 66 after a jump early in the session on that inflation beat we got from new zealand. cpi coming in at 1.9% on a yearly basis. stocks in wellington holding steady to the downside this morning. let's check in on the offshore yuan with onshore markets offline for the lunar new year.

for -- looking to snap an eight week gain given that concerns around the coronavirus, which could have an impact on the currency. haidi. haidi: first word news with jessica summers. jessica: thanks. president trump says he will release his promised middle east plan before israeli leaders visit washington next week. prime minister benjamin netanyahu and his rival, benny gantz, will go to the white house with israel gripped by political gridlock. whether palestinians would have right of return and whether east jerusalem could serve as a palestinian capital. president trump also says he would like to have witnesses testify at his impeachment hearing but says some high-profile figures cannot be questioned because of national security concerns. he is reported to be ready to block an appearance by former security advisor john bolton and other potential witnesses.

trip,ng at the end of his he lashed out at heads democrat -- his democrat critics. >> no president has ever used his office to compel a foreign nation to help him cheat in our elections. prior presidents would be shocked to the core by such conduct. jessica: the u.k.'s departure from the e.u. next week is all but certain. that is after boris johnson's brexit bill was approved by the e.u. parliament's most influential body. the constitutional affairs committee voted heavily in favor of the deal, agreeing with the u.k. in october. it had become british law after being signed by the e.u. queen. the full e.u. parliament technically -- signed by the queen. they are not expected to exercise their veto. a key measure of inflation in japan rose at the fastest rate since may with a higher sales tax boosting prices for a third

month along with a less pronounced drop in gas prices. cpi excluding fresh food rose .7% in december, picking up pace from .5% a month earlier and matching the median forecast. inflation is still far below the bank of japan's target. 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 am jessica summers. this is bloomberg. to our top story, china's coronavirus has killed an 18th person with a second confirmed case in japan and also spreading to singapore. selina wang is watching developments. we have seen the who refrain from calling this a global health emergency and yet we are seeing more cases and deaths around the world. what is the latest? selina: the number of cases continues to rise. you have that case in japan. first one in singapore, in the

united states, spreading across china, from the north of china to the south, into parts of southeast asia. the death toll has increased to 18 with hundreds infected, although some researchers say that number could be in the thousands. about a quarter of the people infected actually end up developing serious disease. majority of people have had a mild response and a significant portion of those who have died did have pre-existing health issues. the world health organization was split on whether were not to currently qualify this as a public international health emergency. had they deemed this an emergency, they could have recommended some global travel bands, restriction of goods, but they were careful to say they are moderating the situation closely and could change their decision at a moments notice and reconvene. they are being careful in the way they are praising this given that they have been criticized for either sounding the alarm to early or too late as was the case in the 2014 ebola crisis.

haidi: at this time of year, you would typically start seeing railway stations, airports, packed with people looking to travel home or to holiday destinations for the lunar new year. this year will be different. selina: it's normally called the world's largest human migration with hundreds of millions of chinese racking up 3 billion trips to participate in these festivities with families, but here in beijing, festivities have been canceled as well as in hong kong, as well as in macau. others are trying to mimic public gatherings, limiting festivities that could increase the spread of this disease. of course, wuhan is also in essentially a lockdown, as are some of the neighboring cities. there has been a lot of criticism from health experts as well as chinese citizens online complaining that this lockdown may not be effective given there was a rush of people to try to leave before it went into effect, and there's also been statements that perhaps this man

has already put -- ban has passed the golden period of trying to prevent the spread. locals are posting photos of grocery stores having empty shelves, masks being out, people getting turned away from being able to see doctors because hospitals are overflowing, and the situation in china is one of heightened anxiety and fear, with plans being canceled, and places monitoring for temperature, and everybody wearing face masks on the streets. so the sentiment is not the one of typical lunar new year festivities at all. haidi:haidi: it's a very different mood no doubt. thank you so much for that. selina wang with the latest on the coronavirus. let's take a look at the potential impact for financial markets. mike mccarthy joins us now. i want to start off with this chart. the last comparable outbreak we had obviously was sars, in the same part of the world, and we

did see a bounceback in hong kong and chinese stocks at around that time after it was seen that the governments and authorities were taking firm action. is this something you would expect? so far, the selloff has been fairly limited to this part of the world and also to sectors that would be affected directly by a clamp down on travel at this time of year. there has been a remarkable divergence in markets around this issue. we have seen crude oil markets falling in tandem with the big hits we have seen. stocks in china. on the other hand, the s&p 500 is up 1% since last friday's close, so there has been a real the vergence in responses. the yuan has weakened slightly. gold is unchanged, too. given the potential risk here, i would have expected to see a more coordinated move. a 10 points have rally in u.s. ten-year bonds. perhaps indiversions

opinion or perhaps in impact, expected impact, across those markets, and those differences will have to be resolved. it looks like we need about two weeks because one of the key factors here is the incubation period. it looks like the incubation period of nine days to 14 days means it will be a couple of weeks after this new year holiday that we will really start to understand how quickly this virus could spread, so it is fair, i believe, that the risk assets are pricing summers. at the moment, no cause for panic. there is every chance given the swift and transparent action from chinese authorities that this will be contained and we will not see a pandemic. there is a slight possibility of it still and that is why we are still seeing caution. whichever way it is resolved, if there is a pandemic or if there is an all clear, that differences in performance of markets will need to be resolved and we could see some sharp adjustments as markets come back into line once we have a clearer picture of the economic impact of the coronavirus. there's been surprisingly

little dislocation, but at the same time, it seems market participants are very split. we have priced so richly that this is right for a pullback or consolidation, and then the other half, which is saying by dips you have at the moment. mike: one of the factors in the markets -- strength we have seen in the first three weeks of the trading year. that lift we saw in the local market in australia of around 7% over three weeks meant the markets were ripe for a corrective pullback. the coronavirus gave the trigger. forer than an actual cause lower prices. it has something to do with the positioning in the lead up but despite the fact that valuations remain very stressed, momentum is clear. for that reason, i think a lot d investors -- once the depth

of any as muchip -- depth of any is much clearer. shery: really impressive guidance. are we going to see, finally, this industry catching up with the prices we have seen in semiconductor stocks? the philadelphia semiconductor's index has had a phenomenal 2019. mike: absolutely. i parallel that with the re-raising of apple and its huge rise from 200 u.s. dollars to well over 300. now, it was a push back into the industry as they delivered, as we saw numbers hitting the bottom line, and the valuations look skinny in the light of the profits. that can be an ongoing thing. shery: in this part of the world, we have seen this ongoing debate as to whether it is value versus growth, and value was a big winner in 2019. not so much in 2020. what are we seeing in asia? argument has not

really taken hold, and the evidence from that can be seen at the index level. at the moment, in hong kong, we are looking at a forward pe for the hang seng of 11 tons. that is one of the cheapest major markets in the world. compare that to the s&p 500, around 19 times. even the dax at 15 times to 16 times. the issue is, it has looked cheap for a long time. certainly would think we have a valuation argument. we also have potential for a weakening u.s. dollar to make local currencies look stronger and more attractive to international investors. i believe whether or not investors will choose 2020 as the year to move on that argument is still an open question. need: how much would you to see a weak u.s. dollar to inform a bullish stance on emerging-market equities? mike: i think it would be great news. fall below 95ex

and 90. that is a significant move but not when i would rule out. we have indications that markets are ready to move on that one so we have a clear picture. that might not be until after the election in the u.s. in november of this year so this is a longer-term call. below 90 for the dollar index would be a very positive sign for asia-pacific indices. haidi: always appreciate your time. michael mccarthy with us. let's take a look at what we are seeing in this holiday session in asia. sophie: we are keeping an eye on stock movers in tokyo. mccarty falling 5.8 percent after the operator said its units will acquire mobile payments at origami to make it a wholly-owned unit on fiber 25th. the impact is still under review. let's check in on a generic drug maker which is falling by as much as 5.2% to an october low

after city because the stock to sell. citi cuts the stocks to sell. in an acquisition deal with 630 million dollars. let's get a quick check on australian bonds. the 10 year yield slipping closer to 1% over the course of a week. more rba rates repricing. westpac and its latest note expecting the central bank will delay the next round of easing to april with a final 25 basis point cut seen in august, share. shery: -- shery. shery: australia's bushfires are posing new questions for scientists. we will be joined by one of the world's leading climatologists to discuss this. haidi: coming up next, our exclusive interview with the singaporean prime minister in davos. his thoughts on the outbreak, the trade war, and more. this is bloomberg. ♪

haidi: this is "daybreak asia." i am haidi stroud-watts in sydney. shery: i am shery ahn in new york. the coronavirus outbreak has spread faster than chinese authorities first expected and has now reached singapore. the prime minister spoke exclusively to bloomberg at the world economic forum in davos. he says the world needs more collaboration. >> it is an example of why countries need to work together. you may wish to the globe rise -- de-globalize but the virus will not. it seems to have emerged somewhere in wuhan in china. next time, it could be another place, unless we trust one another and share data and share the genome sequences and share public health. our people dying? it -- are people dying? is it infectious? unless we can share that, we will have a big problem for

mankind. >> many people will look at this as an opportunity to say this is a reason for breaks on immigration, breaks on travel. >> unless they are going to build a wall -- >> walls are in fashion. walls.ses can leap over i think it is difficult. >> donald trump asked the asean leaders for a special summit. that is going ahead at the moment. >> yes, it is it i expect to be there. we will be meeting for a serious purpose. >> the purpose being? >> to meet the u.s. president. i am sure we will be discussing areas where we can cooperate and do more together, and i hope , amidst his many domestic preoccupations, will send a message not asia is important to him and southeast asia has its part in the american scheme of things.

ofdo you have a prediction 0.5% to 2.5% of growth? that is a pretty wide -- you really don't know. >> exactly. we really don't know. that is the range of what our economy is capable of. but whether we realize that capability, that potential, depends on international conditions. and some of those are not economic. if there is a blow up between china and america or if there is something happening in the middle east, either with iran or because of syria, then all bets are off. >> how do you think phase two of the u.s.-china talks will affect singapore? they had this first phase, which deals with a few -- >> everyone is relieved that you have at least stabilized the positions for a wild. now, you have got to go further. there are serious issues which have to be discussed on both

sides, and both sides have to make quite basic adjustments. on the one side, on the americans, psychologically, you have to make up your mind. are you doing this because you want to keep a level playing field and make sure they follow the rules of the game, and may the best man win? you doing this because you want to keep on winning and whatever rules of the game are necessary, you will create those rules? >> what is your instinct on that? many people will say if donald trump stands for anything, it is america first, which by definition means america must finish first. >> do the best for the united states. do you do the best by prospering in the world while there are other countries doing well or do you do your best by being a big country in troubled world -- a troubled world? i am not sure it is a very good

answer. on the chinese side, i think they have to make up their minds that they are going to be constructive pairs in the global economy and in a global community of nations. haidi: that was the singaporean prime minister with john micklethwait, talking about the impact of the coronavirus and efforts to maintain it. -- contain it. the china health commission confirming the death toll has risen to 25. 20 four of those cases derived from -- province. the epicenter is in wuhan. one of those cases notably outside of the province which is where the capital, beijing, is. you're getting a rise in the number of confirmed cases. 800 30 confirmed cases of the coronavirus being announced now including 117 severe cases. a total of 1000 72 suspected cases across 20 providences. the national health commission confirming that we have five

confirmed cases in hong kong, macau, and taiwan, nine confirmed cases including three in thailand. we have had two cases confirmed in japan, one in south korea, one in the u.s., two in vietnam, and one in singapore as well. we will get a lot more expert analysis on the coronavirus upcoming on bloomberg television. our guest includes the specialist as well as the cohead of the school of public health. this is bloomberg. ♪

haidi: you are watching daybreak asia. breaking news. an update on the death toll from china's coronavirus now rising to 25 from the 18 previously reported. this we are hearing from the china national health commission, saying the death toll is at 25. we are getting an update on the number of confirmed cases now at

830. it was over 1000 suspected cases, according to the china national health commission. out of those 25 deaths, notable is one outside the providence, the epicenter of the disease. it is in the province where the chinese capital beijing is. we know this is happening on the eve of chinese new year where typically we see a mass human migrationf people -- of people going outside of china's borders. we are also seeing confirmed cases of the disease. the latest numbers out of japan. a secondeing confirmed case of coronavirus there. this does create a situation where we wonder whether the 10ld health organization -- day stay specified earlier when they did not declare this as an international public health emergency. shery: that was quite interesting. we had the director general

placing china for being transparent and cooperative. right now, we are seeing the last update has been a huge jump from the 580 four that they reported earlier and 18 deaths. perhaps something to consider as we are seeing the who refraining from that declaration of the global public health emergency. of course, the last time they actually declared that emergency 2019 during the outbreak of ebola, but of course, the bigger concern right now is the impact on the markets. also on the economy. this gtv chart on the bloomberg showing how even if you contain this outbreak within china, the chinese economy, its weight in the global economy has exponentially increased since the sars outbreak in 2002, 2003. coming up next, we will speak to an infectious disease expert. he says the next three weeks are

crucial on dealing with this outbreak of coronavirus in china. this is bloomberg. ♪

haidi: we are getting the japan pmi numbers coming through. at 51 pointe number one, picking up substantially from the december number of 48 point six, so dragging itself out of contraction. the manufacturing pmi remaining in contractionary territory although that number is much improved. 49.3 from 48 point four the previous month. in addition to that services number, much stronger than the previous month. that in addition to inflation numbers that came in today that ng onpretty much ba expectations, seeing a gradual recovery of green shoots across the japanese economy in particular. sharing. shery: in the u.s., that's --

shery. shery: in the u.s., they have declared no president has abused power the way president trump did in his ukraine dealings as they open their second day of arguments in the historic impeachment trial in the u.s. senate. as get the latest with our senior international editor, jodi schneider. what was the court case that house prosecutors made in this second day of his impeachment trial? the second day warehouse managers are presenting their case to the senate? -- where house managers are presenting their case to the senate? jodi: house managers who are senior members of the democratic leadership in the house of representatives, they act as the prosecutors bringing this case and the senate is now sitting as the jury. the senate being 53 to 47 controlled by republicans, will most certainly vote to acquit the president. in the meantime, they want to make the strongest case they

can. they are making it to the voters as well. case they are making is that the president basically went outside the bounds of his power, abused his power in attempting to get the ukrainian leadership, the unit craney and president and -- ukrainian president and his leadership to investigate joe biden and joe biden's son and threatened to withhold u.s. aid in doing so. that is the first thing they are doing and the second point they are making on that second set of charges is that he then, tosident trump then sought obstruct congress from being able to investigate this, that he tried to cover up this and would not cooperate with congress's investigation of this, so those are the two points they are strongly trying to make as they prosecute this. there are some broader constitutional a issues at

stake here? the: jerrold nadler, one of impeachment managers, basically said he alleged that president trump's actions put richard from watergate fan, of course, in this matter. they are saying that the president basically sought to really make the executive branch of government out of control, that he was not being -- he did not want to exercise the various levers of government, the balance of powers, that he was acting on his own, and that is where the constitutional arguments come. the democrats are saying they have a constitutional right to bring this case, that high crimes and misdemeanors reflects the actions that the president took here. of course, republicans who control the senate are trying to arecally, through how they

presenting this, and whether they are going to allow witnesses or not, are trying to undermine not only the case the democrats are making, but the very process of it. aey are saying that this is sham and president trump has been making that case as well. we will see in the coming days whether they are about to have witnesses. the republicans have blocked that so far. the democrats, led by chuck schumer, minority leader in the senate for the democrats, has made it clear that he will continue to push for there to be witnesses. there are some -- there is some talk that there may some kind of exchange. if hunter biden wants to testify , that may be then, they would allow the republicans would allow john bolton, the former national security advisor, to testify. we will have to see whether we are going to see witnesses in this impeachment inquiry. >> our senior international editor, jodi schneider, with the latest on the impeachment.

let's get a chart of -- check of the markets with sophie. sophie: asian stocks trading mix this friday morning with a regional benchmark set for the first weekly drop. several markets post for the lunar new year holiday including south korea and china. in japan, we are seeing stocks gain ground by point 2% on the nikkei 225 as we are seeing chip related players being lifted on intel's bullish guidance. when it comes to the bond picture, we are seeing a broad gain with aussie 10 year yields moving towards 1%. callas we see the rate cut being replaced further. westpac pushing back its call for easing to april, and we do have treasuries just holding steady this morning while we are seeing smpte minis rise -- s&p e minis rise higher. we are getting more development on the coronavirus which will threaten consumption on the mainland. s&p calculates that if spending of things including

discretionary, transport, and entertainment drop by 10%, overall gdp growth could fall by 1.2%. chinese consumer stocks have been the worst performers on the csi 300 heading into the lunar new year. let's discuss the implications around the spread of the coronavirus with diseasesus expert -- local crisis. a human to human transmission has remained contained china, but prime minister abe of japan coming out and saying he will strengthen the measures to deal with the new coronavirus. how crucial will the next few weeks be in containing this outbreak? bethe next few weeks will very important, not just for containing the outbreak, but also to help us understand how

this virus behaves because we are only less than four weeks into being informed about this outbreak and even a week ago, if you had asked me, i would have said it probably does not or rarely transmits from human to human, but now we know that is not the case. it is really important for countries around the world to make sure that they are prepared for this. >> the numbers announced by china, cases or deaths, has jumped from the previous announcement. now, we are seeing confirmed deaths, 20 five confirmed cases in china, rising to more than 800. given the delay between the infection and detection, how much bigger could this crisis get in the next few weeks? i think this definitely could increase. although the chinese government has done this extraordinary, amazing thing i don't think a western democracy could do, which is checked down three cities with a total population

of 20 million, to some extent, the horse has vaulted in the sense that we have all these cases found in 29 provinces in china and we have already had transmission to six or seven countries overseas. it could definitely spread around the world. because itt to sars, is a coronavirus like sars, one aspect seems that it is less infectious them sars and also less deadly. haidi: the who has refrained from declaring this as an international public emergency for a second meeting now although the panel was very clearly split on whether this is the right thing to do. i thought this was interesting. one of the things they said as a reason for not declaring it is they have not seen human to human transmission outside of wuhan yet. is this just a matter of time? be, and i certainly would not be critical of them if they had declared a public

health emergency of international concern, because as everyone keeps saying, this is very much like sars. the same family. it is structurally like sars. even if it is not spreading like sars, it could mutate. it may be worth erring on the side of caution to start off with. haidi: we are getting these lines out of japan, where today we had the second confirmed case of the coronavirus. shinzo abeing from now saying japan will strengthen measures to deal with the coronavirus and people should not worry too much but should take precautions that the country will do everything possible to prevent the spread of the virus in japan. how much of a challenge is this, particularly at a time like lunar new year where you know transit,e is just mass that the biggest migration of the year, not just within

china's borders, but also going to various holiday destinations across the world is an unenviable challenge for policymakers and for health officials to deal with this at this time. >> absolutely. even if it was not the lunar new year, we know that at least one billion people traverse international borders every year because global travel is so easy now. i think now, we have annexed a 400 million people doing so with the lunar new year. having said all that, one thing that sars, swine fluke, and prepared us for as an international community, is to be ready for the next new infection. i think we are prepared as well as we can be, as a global international community, at identifying and isolating people with these cases if they come onto our shores. so it is not perfect, of course, but we are much better prepared. shery: when the who was asked by

reporters today about what can people do to prevent infection, the answers were pretty basic, hand sanitizing, or basic cold etiquette? is there anything else he would advise for the people watching this show to prevent or to take precautions from this infection? certainly, inll, china, where there are cases and there is some transmission from person-to-person, i think that advice is very salient even though it is basic, and there are other measures that the government has imposed such as staying indoors as much as possible, wearing masks when going to public places, so all of those are very good. there are other medical interventions we can put in like vaccines, and we know that vaccine production -- sorry, production of a vaccine has just begun, but it might be many months, definitely the second half of the year, before we see a vaccine that can be used.

this continue to see spread from some viruses from animals to humans. is there a fundamental problem here in china's farming practices, the wet markets, the food safety measures that are being taken? since the> yes, luck, 1970's, we have seen over 40 new infections appear. that is almost one year, and many of them are infections that go from animals to humans. they not uncommonly arise from china and it is thought that the to animalon of humans environments and populations facilitates that and of course, the markets where viruses from -- can jump from animals to humans and back to the animals again. having exotic animals that are not regulated. all that would facilitate the transmission of viruses between

animals and humans until we get something that can transmit between humans. extraordinary, looking at the types of animals that are available for consumption. i am wondering, if you are not elderly, immunocompromised, and not a baby, do you need to be worried about this coronavirus strain? >> in terms of the people who have died from it, we know that the average -- when they publish the first 17 cases, the average age was 73, and most of them had underlying health problems, so if you are not elderly, with health problems, you are unlikely to die from this, but it does not mean that you cannot be hospitalized with a pneumonia type illness. at the same time, it is possible you might have a mild cold like illness with a fever. haidi: we will be watching this

closely. thank you so much. australian national university infectious diseases physician. we will have more expert analysis on the corona virus, coming up on bloomberg television, including the cohead of the school of public health. this is bloomberg. ♪

haidi: global perceptions of australia's climate action or inaction are false. he added australia was ahead of those countries when it comes to addressing the crisis. >> we are committed to policies that are environmentally effective and economically responsible. we do have commitments to effective action on climate change. we are one of a handful of countries around the world that will beat emissions reduction targets in kyoto by more than 400 million tons of co2.

we are on track to meet and beat the targets agree to in paris. that's commitments to reduction for emissions by half. the intensity in our economy is on track to reduce by two thirds, so that is more ambitious than the european union, canada, new zealand, and many other countries around the world. haidi: in sydney, we are joined by one of the world's leading climatologists, a distinguished professor who we are lucky enough to have on part of your sabbatical. you heard what he had to say about that. is this a true depiction of australia's role and response to the climate crisis? >> unfortunately not. he is really misstating what australia is doing right now under the current government. they are using some accounting tricks to try to claim that their emissions reductions in response to the kyoto accord 20 years ago somehow have relevance

to what australia is doing now. right now, the current government is actually supporting policies that are increasing that mining of coal and carbon emissions from coal. the coal mine will double australia's coal-based carbon emissions and australia remains the largest exporter of coal to the rest of the world. at a time when we need to bring carbon emissions down by a factor of two within the next few years, the current australian governmental policies are taking us in the wrong direction. haidi: the other thing he said during the interview is that if australia was not supplying these markets, then it would be replaced by dirtier coal. is that how it works? michael: no. it does not matter how clean or dirty it is paired when you burn it, you put co2 into the atmosphere. that is a misstatement of the call that australia actually is producing. some of it is cleaner. some of it is pretty dirty. but in the end, it's a fossil fuel, the most carbon intensive

fossil fuel. when you burn it, you warm up the planet, dry out the continents, get the sort of mass bushfires we are seeing here in australia. you seeing links are between the bushfires and these extreme weather events? michael: you know, you do not need a professor to understand the relationship. it is not rocket science, as we say in the states. it's really basic. you take unprecedented heat, combine it with unprecedented drought like we have seen in southeastern australia and new south wales, and you get these sorts of bushfires. you get more intense, more widespread, and faster spreading bushfires, like the ones that have engulfed the entire continent over the last month or so. shery: can we arrive at a time in australia when the country simply becomes too hot or dry for humans? will we see more of these

climate refugees that we are seeing around the world? michael: unfortunately, we are seeing the beginning stages of that. here in australia, a lot of folks who have lost their homes to these bushfires are being told by the insurers that you know, their home was built in these areas that are no longer insurable so they are not going to ensure additional homes -- insure additional homes built in these fire prone areas. so the lack of insurability is really the first step in the lack of habitability. we are seeing the beginning stages of monumental, changes --c time climate changes that will drive people away from large inhabited regions of this continent and australia. haidi: one of -- in australia. phenomena of the rare are these para peerless nimbus yro-cumulus nimbus

events. we keep saying this could be the new normal, that sydney, shrouded in smoke, like we have seen behind us, bushfires raging for months before summer has even started, a new normal. have we peaked? michael: no, new normal is the best case scenario. if we bring our carbon emissions down dramatically as we need to, we can prevent a worsening of the problem. we can prevent worst droughts, more widespread bushfires, but we are sort of stuck with what we have now, and we are going to need to contend with and adapt to this new normal, as it were, if we are to mitigate the problem, if we are able to prevent further warming and exacerbation of drought and wildfire by bringing down our carbon emissions. if we continue on the course we are on, if you do not bring down our carbon emissions, if we continue with business as usual, burning of fossil

fuels, including the exporting and burning of coal as is happening in australia, then the drought gets worse. in scaleires expand and intensity, and they spread even faster one of the real problems with these bushfires is they are so fast spreading that it is difficult for people to get out of harm's way and much of the tragedy we have seen is a result of that. shery: if the australian government was so inclined to listen to you, what would you say they need to do right now? michael: they need to put a price on carbon. we have that here in australia. unfortunately, the liberal government got rid of it. in the first nine months after the price on carbon, the emissions trading scheme was imposed. we saw a nearly 10% reduction in carbon emissions, so this works. it worked. they revoked it. we saw carbon emissions spike as soon they revoked the emissions trading scheme. we need to put a price on carbon. we need to provide incentives for renewable energy.

it has a lot of wind and son. -- sun. australia needs to take advantage of the amazing renewable energy options. get off fossil fuels. haidi: how do we progress the discussion around climate change from being a generational issue or a political issue? is that possible? michael: it is a generational issue in a sense, but in another sense, it is not. yes, our children are the ones who are going to bear the brunt, the worst impacts of climate change if we do not act now. but we all care about our children and grandchildren. we should want to leave behind a habitable planet for them in future generations so it is really about all of us. the kids have been out there demonstrating, striking, trying to raise awareness. we need to have their backs. we need to make sure they are not out there alone, that we are all working to make the changes we need to make. haidi: professor, a pleasure having you here. enjoy the rest of your time in

australia. hopefully the air quality improves. pennsylvania state university distinguished professor of atmospheric science, michael mann. bloomberg has issued and uses in-depthich reporting to illustrate the scale of the climate challenge. you can find that on the terminal, online, and right here on bloomberg television and radio. this is bloomberg. ♪

shery: we continue to see the outbreak of the coronavirus in china spread. we continue to see japanese leaders trying to fend off questions from journalists. shinzo abe saying he will be strengthening measures to deal with the new coronavirus. this coming after china raised the death toll to 25. the confirmed cases to 830. haidi: it was such a jump. the previous number of 18 confirmed fatalities, 500 confirmed cases, and they are saying it is well over 1000 in terms of the suspected cases and across multiple, many different provinces across china. it's also worth mentioning, and i think you pointed this out earlier, that we saw one of those fatalities outside of the province where the epicenter of the disease, wuhan, is close to where it's going to spread to from here. shery: despite the fact that

china has put a locked down on wuhan city, we have seen them restrict transportation, canceling flights, trains. this is a city of 11 million. there are 8 million people in new york, but you are talking about corentin around the city larger than new york, and that could be very challenging. let's get a quick check of how markets are trading in the asia-pacific region. as we see concerns over coronavirus rising, we are seeing the nikkei unchanged, but of course, it's been trading given the lunar new year holidays. the asx 200 up .3%. a bit of a mixed picture with kiwi stocks under pressure. that is it from "daybreak asia." our markets coverage continues. china closed for lunar new year. this is bloomberg. ♪ and they lived happily ever after. the end.

the end might not be as happy as you think. after all, 4 out of 5 people who have a stroke, their first symptom is a stroke! but the good news is you can rewrite your ending and get screened for stroke and cardiovascular disease. life line screening is the easy and affordable way to make you aware of undetected health problems before they hurt you. we use ultrasound technology to literally look inside your arteries for plaque that builds up as you age- and increases your risk for stroke and heart disease. so if you're over 40, call to schedule an appointment for five painless screenings that go beyond annual checkups. and if you call us today, you'll only pay $149-an over 50% savings. read it again, papa?

sure. i've got plenty of time. life line screening. the power of prevention. call now to learn more. >> welcome to bloomberg markets china open. i am tom mackenzie. yvonne: i am yvonne man. here is the top story. china expands travel curbs as the coronavirus death toll reaches 25. wuhan remains in lockdown. about the threat to global growth sparks a rush to havens. oil at the lowest since november on speculation of weak demand. qe? e: qe or not we have david sullivan at the world economic forum in davos.