paul: i am paul allen in sydney were markets have just come online. taylor: welcome to "bloomberg the coronavirus acquired a global health emergency as cases continue to rise. the world health organization praises china's aggressive response to the outbreak in sharp contrast to the criticism back in 2003.

amazon delivers above expectations in the holiday quarter. surgingr hours stocks and enhanced jeff bezos and extra tool, $13 million. have us trillion markets opening for trade and right now, we have the asx looking higher. opening in alphabetical order, said keep an eye on this as things hold. we take a look at new zealand markets, it is continuing to lose ground today. nikkei futures are weaker by 31%. and fory in japan december, jobs numbers, retail numbers, industrial production as well. we will break that down for you. keeping an eye on the japanese unchanged. much there was concern over the coronavirus.

in 2019the past week lows. taylor: more on that coronavirus. the world health organization has declared the outbreak a global health emergency as the death toll continues to climb. let's get over to our china correspondent. what are the latest developments? >> in terms of that world health organization declaration of this as a public health emergency, that allows them to court and the international responses. they made the decision based on this virus could spread into a much more widespread disease. the death toll has reached 212 at least and there are more than a thousand cases around the world. the center of the outbreak has been reported, just over 24 hours, more than 1002 hundred new confirmed cases. the who camefrom just hours after the united

states reported its first case of human to human transmission. and asia,iddle east philippines reporting their first cases. general isector praising china's aggressive efforts, especially citing china's attempts to build a new hospital in a matter of just 10 days. he says the organization continues to have confidence in china's ability to contain the outbreak and not recommend travel or trade restrictions. you are seeing governments, companies trying to take their own drastic measures. we have british airways halting flights to china, russia closing its land quarter. paul: we going to have pmi's for china for the month of january later. what is it likely to be from the outbreak and are we going to see

support from the government? isbloomberg economics predicting more than consensus expects. there is always a seasonal retreating factor, but on top of that, we have virus impacts that should be enough to push back to contractionary territory and a bigger dent in the pmi numbers more than the market is expecting. sectors like transportation will be the first to feel the impact. that led to travel restrictions and then they had to travel a celebration because of the sharp weight of the service economy in china. compared to back when sars broke out in the early 2000. we will see a bigger impact on the overall economy. a lot hinges going forward on

whether this turns into rapid containment or escalating moment,n but at this bloomberg is bridging that first quarter gdp could fall. efforts,me stimulus china stepped up monetary stimulus in the form of rate cuts. paul: selina wang in beijing. thank you. let's take a look at how viruses are affecting the local market. and chief is fh economist. did hear selena outlying some of the more dire predictions. what are your expectations for how this virus might impact the economy? >> i think actually the bloomberg economics numbers are probably close to what we should expect.

we are all watching this pmi data very closely, because it is the first hard economic data we have. made the point selena about the response in china, the praise from the who, the fact that behavioral changes we have seen in china, people making a real effort to avoid crowded spaces, all of these things are going to magnify the economic , but probably shorten the duration of the economic hit. we are thinking that gdp growth in the first quarter in china is going to be hit pretty hard. 4.5 percent, sounds reasonable to me. i do think we are going to see the number of cases holding off in the next couple of weeks and

then things will subside. impact, that is going to depend on how this spreads beyond china. so far, almost all cases outside of china are people who have traveled from inside. very littleen contamination between people, although as you mentioned earlier, we do have the first case of contamination in the u.s. riskr: what is the biggest to economic growth? are you thinking consumer confidence, business confidence? >> it is going to be consumer spending. when we look at the numbers from china today, manufacturing obviously going to be weaker, because of the lunar new year holiday extended and plants that were closed remain closed. it is also because companies have made the decision not to

reopen some of those factories. i think the more interesting thing is going to be the effect on the services pmi. what is the impact of people avoiding restaurants, malls, shopping, flying? the chinese government reported that travel within the china comported -- reported to last year is down 30%. chain -- trainnd is down 41%. ande are huge declines imply that the changing consumer behavior is not so much a confidence change, but just people hunkering down, causing a pretty significant hit to the service side. we will be watching closely. those pmi numbers are going to be due out on sunday. it will be very interesting to watch. what can we expect in terms of policy response?

>> i think we will see ample liquidity. the thing is, it doesn't necessarily accomplish much in response to something like this. you can't get people to spend money if they are not leaving their house and i think in terms of the economic hit in china, it is going to be dramatic. for the rest of the world, for example in the u.s., the auto supply chain is dependent on parts that come from factories there. andre watching that closely luckily, there was quite a bit relatedpiling reasons to threatened tariffs in december. we have very high inventories, but if production is curtailed for a couple of months, it is going to affect among other things production of even gm and

ford cars here in the united states. the initial impact from things like lost tourism in the u.s. is going to be quite small. maybe .1%. what i am worried about in the united states is the possibility if there are more cases and we start to see consumers hunkering down the way they have in china, then obviously the impact would be bigger. taylor: financial chief economist chris low. thank you. you are sticking with us. i want to get a check on the first word news with jessica summers. jessica: the bank of england stood in what was mark carney's final meeting in governor. officials voted in favor of keeping the key rate at three quarters of 1% but signaled that easing may be needed, cutting gdp forecasting and predicting inflation will only return to target by the end of next year. that prompted investors to predict a rate cut later this year. >> prospect farther out, which

is the way we asked -- described it. that is how it all ties together. jessica: hong kong exports rose in december, snapping a 13 month streak of declines, the longest since 2016. it expanded $45 billion u.s., up from a year ago and beating economist forecast. imports fell just under 2%, widening the trade deficit to $4 billion u.s.. kongs the year, hong exports other biggest decline since 2009. u.s. air force's latest warplane is struggling with yet another issue. the pentagon says a 25 millimeter gun on the joint strike fighters can't shoot straight and has unacceptable accuracy. it is also mounted in a housing that is cracking. it is intended to be the most

advanced aerial platform ever but the program has been plagued by mounting cost overruns and delays. trump's impeachment defense has undergone a dramatic transformation on capitol hill. it has gone from saying is the call with the leader of ukraine was perfect to saying it was not criminal to claiming it was permissible if inspired by mixed motives, to finally asserting seeking foreign help to win reelection is not impeachable. former national security advisor john bolton is waiting to hear from the white house. on reports the administration wants to block his upcoming book. global news 24 hours a day over the air and at quicktake on bloomberg powered by more than 2700 journalists and analysts in more than 120 countries. i am jessica summers. this is bloomberg. taylor: i want to bring some other breaking news. up 1.5%.ing a rebound,

now looking up 1.25%. this after the world health organization is stepping up efforts to combat the virus. they declared an international health emergency. up now 1.25%. this is bloomberg. ♪

taylor: this is "bloomberg markets." i am taylor riggs in san francisco. paul: i am paul allen in sydney. gdpor: the latest u.s. numbers show in economy that grew in the fourth quarter, 2.3% for the full year. that is the slowest of donald trump's presidency and low his promise to target of 3%. financial chief economist chris low. our bloomberg economics team receiving to see that gdp growth

was masking consumer weakness. what is your take? chris: consumer spending numbers were weaker than expected. i think that was masked by the fact that topline growth came in right on the consensus. under 1.5%.was that is about half the growth rate in the third quarter. that was slower still than the growth rate in the second quarter. on top of that, business investment was negative. there were declines and equipment spending, spending on structures like pipelines and buildings. if not for an intellectual property rise, spending on things like films and research and development, then gdp investment would have looked weaker still. the fastest growth in the domestic economy was in government spending.

we never would have seen the private sector slowing to that extent. we heard jay powell earlier this week talk about letting inflation run higher than 2% to make up for structurally low averages. why do we even have a 2% inflation target if we can't get there? chris: that is great question. frustrationaw that of the difficulty of getting to the target in the numbers today. the biggest surprise was the core pce deflator, excluding food and energy, this is for personal consumption. the increase in the quarter was 1.3%. it really flips the chairman's assertion that if they let the economy run, if they keep policy where it is, they are going to get back to two in no time, as

some of the easier comparisons fall out. inl, not if we are coming with numbers like 1.3. we are nowhere close. thankfully, the fed is in the middle of this ongoing policy review. powell hinted that they are going to make changes and if they make effective changes, they will have an easier time hitting that target. for now, they are stuck in this awkward trap of knowing they are not doing enough to boost but also not enough to make changes that would get them there. that is the week inflation picture, but against that backdrop, gdp numbers papering over a few uncomfortable trends as we discussed. the virus as well. i want to bring up this chart on the bloomberg terminal. the bond market telling us about chances of the fed easing in

2020. chris: that is fascinating, too. two weeks ago, the story on the fed was really simple. on hold all year, it is an election year. that is the dominant concern. they don't want to look like they are interfering in an election. now, i think the story has completely changed. we already have and in more mis-hit to growth. we know it is coming any first quarter from boeing curtailing some aircraft production. that is enough to take gdp growth down by 8/10 of 1%. starting from a relatively weak days, you add the risk of fallout from the coronavirus, and i think the balance of risks is tilted not just to downside growth, but also week inflation. mind, i think there

is a possibility the fed could ease as soon as the march or may meeting. in the meantime, the market shows one rate cut fully priced in by the end of this year and almost a 50% possibility of a second rate cut. go,: just before he let you january 31 is going to be a historic day. britain is leaving the store -- the european union. hard work is still to come in terms of the trade deal. does that make you a bowl or a or a bear?l chris: i think getting out is absolutely necessary. we just couldn't deal with the uncertainty of one foot out the door. i think iseal beneficial to both sides and i am confident they can work , not just with europe, but once that is complete, with the u.s. as well.

fhm financial chief economist chris low, thanks for joining us. still to come, a question and president trump's impeachment trial, lawmakers prepare a vote on whether to call witnesses. this is bloomberg. ♪

paul: this is "bloomberg markets". i am paul allen in sydney. taylor: i am taylor riggs in san francisco. i want to move to washington, because senate democrats are making a final plea to republicans to call witnesses in president trump's impeachment trial. joining us is chief washington correspondent kevin cirilli. the latest, top republicans are seeing momentum for an acquittal on friday. it is an acquittal versus a conviction, all but certain on friday. >> i think that is a good way to

sum it up. senate majority leader mitch mcconnell has successfully been able to keep republicans in lockstep with republican leadership and democrats have not been able to peel off enough votes that they would need to inject witnesses into this trial. the second point that i will make is that, should this happen, it all but insurers in acquittal bite friday night or over the weekend, which would be good news for some of those democrats who are eager to get back on the campaign trail, like senators bernie sanders and elizabeth warren. the final point is, should there be a last-minute trend in this impeachment saga, if there were to be witnesses, and we are trying to figure out what that would mean for other policy issues hitting accomplished, it means the trial would go on for several weeks and that is really what we are watching here in

washington. if there are no witnesses, expect this trial to end over the weekend. if there are witnesses, expected to drag on for a week or two. taylor: how popular was this decision to impeach the president? is this going to be politically a good idea or a waste of time? kevin: it is polarizing. i have been watching the polls and they have not moved independent voters. democrats and republicans alike are dug in. to strategist connected with the democratic presidential candidates as well as my sources on the president's reelection sources, they unanimously say that no one is talking about impeachment in independent states. wisconsin, pennsylvania, they are not talking about it. of course the intention of democrats all along was to try to land a few blows on the president. have they successfully done

this? kevin: the comparison is one that would make both sides a grimace about hillary clinton and benghazi. many times, there has been a situation where the president or the occupant of the white house has been completely drowned out in terms of messaging. it is not something they would like. in contrast, the republicans i talk with say they double down with fundraising efforts and they tried to rally their base. this is a week where the president unveiled a middle east peace plan. any other administration, this would be to dominant story lines coming out of 1600 pennsylvania avenue, but with the backdrop of the impeachment, it has been very different all around. push us forward to sunday, monday. we will be seeing you in iowa. what is the highlight? kevin: the iowa caucus becomes a

game of expectations, of momentum. who can see his momentum as they head to the other caucus? tuesday's state of the union, the president could deliver his address being fully acquitted, in which case he will try to move forward. he will also push trade accomplishments in his state of the union address as well as what he will say is the victim of the killing of general solemani in terms of foreign policy. a big political week. i'm not sure it does enough to move the markets. i am more struck to cd1 volatile mark in the global economy, which we have all been following, and that is the coronavirus. briggs kevin cirilli, we are all watching the coronavirus. thanks for joining us today. still to come, amazon sword in late trade, beat expectations across the board. we will have more details on that just ahead and a round up of the day's top news.

stay with us. this is bloomberg. ♪

paul: we are waiting on breaking news out of japan crossing the terminal. we have tokyo cpi for the month .6% on therising year. that is less than expected in its fresh food and less than expected coming in at .7%. hitting the jobless rate as well, that is a beat, very modest, 2.4% for december. the market was expecting 2.3% job to applicant ratio holding steady at 1.57% three we will have retail sales numbers and industrial numbers later.

tokyo cpi and the jobs numbers, in line with expectations, not a lot of reaction from the yen. we will have more real -- or analysis with the retail sales and that. martin schulz will be joining us out of tokyo in a bit. let's get to first word headlines with jessica summers. organizationhealth has officially declared the coronavirush -- the a public health concern. to coordinate government responses. this as the cases past 1000 worldwide including the first person-to-person case in the u.s. more than 200 people are known to have died as cases have been reported in india and the philippines. >> i am declaring the public

health emergency of international concern over the global outbreak of novel coronavirus. the main reason for this declaration is not because of what is happening in china but because of what is happening in other countries. our greatest concern is the potential for the virus to spread the countries with weaker health systems. >> bloomberg economics says the outbreak could cut china's gdp growth to 4.5% this quarter down from 6% in the previous period. it may have impacted output. hong kong is estimated to face a 1.7% drop in gdp growth with the u.s. and the euro area losing .1%. the world leading oil producers are debating whether to bring forward their next meeting as

signs indicate the fibrous -- the virus will outpace demand. ascould move to next month scientists assess the demand for energy. at anrson said this is informal stage but others were unaware of plans to bring towards the meeting. in the u.s. economy is holding steady despite drops in major confidence indicators. the economy grew an annualized 2.1% in the fourth quarter, outpacing estimates that is the same as the previous timeframe. there were stalls in consumer spending and business investment deteriorated. larry kudlow said the u.s. hasn't seen any major economic impact from the corona virus. global news 24 hours a day on air and at quicktake by bloomberg, powered by more than 2700 journalists and analysts in more than 120 countries. i am jessica summers.

this is bloomberg. i want to go back to one of the big stories in tech all about amazon surging in extended trading. the recorded first quarter results smashed concerns about the cost of next day delivery. sales on the all-important holiday season came in at 87.4 billion dollars. that is up 21% year-over-year. here to break it down is a principal in marketer. -- e-marketer. we were talking a lot about the cloud. we were wondering if they left the cool factor relative to microsoft. are we confident amazon web services is a major, bigger player? in the space.ing it is growing at a strong rate, but it is facing increased headwinds and more competition. we have seen it had to ratchet

up spending. they did a good job on the top line. what was importance was -- important was the bottom line performance of the business. some of thelook at competitors and thinking microsoft, growing azure, the other intelligent cloud products growing 40% or so, how big of a threat is azure to amazon's business? microsoft is a very formidable player and they are becoming a much bigger one in the retail space. there is a lot of retail players who don't want to use amazon. they will look for an alternative like microsoft. i think microsoft is a formidable force and then you have google starting to get momentum in their cloud business. there are a lot of swirling headwinds. it will be a factor going forward. it is a large and fast growing market. amazon is positioned to grow

well. paul: how is amazon positioning itself in terms of the ad market ? andrew: i think the ad business is a sleeping giant of their business. high-margin, and that is growing in conjunction with the growth and acceleration in the commerce business. even though the ad business is over 5% of revenue, it has a bigger impact on their operating margin. i think as we go forward, it is growing very quickly. they haven't even started to crack into the video space. i think that is where that market breaks open for amazon, the start to chip away at $70 billion in the tv ad market. paul: how about the spending side for amazon? we have seen headcount rising and spending rising to look after the promise of one day shipping.

how long could that continue? andrew: we saw the next day prime costs starting to normalize. it has stabilized in that business. we expected more in q4 and it would have made a lot of sense for their investment. proof point ast they finished out the availability. so it is clearly paid off. they announced 150 million prime members not only a huge headline number but they only announced 100 million about two years ago. that is a crazy rate of growth. i think it would be sort of thought investment would pay off long-term. the fact we are seeing it pay off quickly sets the company up for a strong 2020 when it comes to the commerce side of the business. >> talk to me more about the investment and one day shipping. analysts worried about the cost. looks like it is paying off.

as amazon finally found the right balance -- has amazon finally found the right balance between investment and profitability? andrew: this was an investment year for amazon and you almost could not script it better to finish as they did. amazon has a lot more freedom than most companies to make these sorts of investments because they tend to pay off. the fact it has happened so quickly and they are going to have variable costs over time but the fixed costs are getting spread out, a lot more of that effort starts to drop to the bottom line. as that commerce business grows, it fuels the ad business. it is bolstering the high-margin businesses alongside it. coanchor was talking to me earlier about the international e-commerce business of amazon. we look at big countries like india. amazon tries to go over there,

jeff bezos is greeted with news -- booming. -- boos. how do they make an investment into emerging markets where they need retail growth? >> it will not be easy. india is a tough market to crack. there is a lot of infrastructure that needs to develop. amazon seems to be making headway but then you have these political issues. amazon -- india is growing at 30% year-over-year in the e-commerce space. it is one of the two fastest growing markets. it is under penetrated. there is an enormous opportunity on the order of china over time. not anytime soon. that is what amazon is playing for. it is going to take some time. they are going to need to invest here. like many of their investments, they have to incur those costs

in the short-term to pay off in the long run. i don't think india will pay off in terms of profits for a few years, but it is a worthwhile investment. paul: a number of analystspaul: we talked to say this is a stock to buy for your rent children. get superlong, upside for miles. the $2000 a share, are we reaching the limit? andrew: amazon is well-positioned for the long-term. it is going to move here and there depending on different news, but i see from a long-term strategy perspective they are laying down the right strategies and more importantly executing. oftentimes executing faster than you would have expected area that bodes well for the future of amazon's business. we haven't even seen the full impact like next day, how that will change consumer behavior. that provides a roadmap for these other markets. >> thank you for joining us.

-- next, japan's rescinded december industrial production is due out shortly. we will break down the numbers ahead. this is bloomberg. ♪ rg. ♪

this is bloomberg markets. i am paul allen. >> i am taylor riggs. let's get into this data we have had from japan. we have quite a bit of a lull between it. we had cpi and jobless numbers coming in in line with the expectations. in a little while we will have industrial production numbers and retail sales data for december. here to discuss all of this, let's get over to tokyo. the senior economist is standing

by. i want to start off with these cpi numbers which can be exhausting to discuss when it comes to japan. a little bit of a miss. growth year on year. do you think we will find life on mars before we will find inflation in japan? >> we are talking about deflation again. the economy is recovering and you have to read between the lines to find the positive signs. dzumhur sentiment is crawling back. exports to china have been a little bit that are but anything like the virus talk right now is a big problem for sentiment. don't expect much to come from the demand side. it is public spending that is coming in that will be helpful but it will not push prices or anything to the upside. paul: nothing the boj has managed to do has spurred

inflation yet. but we have this policy response from the abe government. nothing detectable yet. is more going to be needed? >> well just a major supplementary budget. a package has been passing through parliament. 1% of gdp. that is tangible but a lot of it is slowing in public spending. that should be helpful but the construct and -- construction sector is busy. little early -- very little will phase in early. the olympics are coming. a lot of demand, it is positive. it will be helpful for the later part of the year. overall growth is here which will be good. but we don't see anything that is cyclically pushing the economy forward in the current situation. demand remains low on the target side. taylor: is smartly pointed out

-- positive upside news will you smartly pointed out the positive upside news will be the olympics. we have been talking about the coronavirus, the downside. what i'd of impacts to you see, although it is early days? impacts do you see although it is early days. >> there will be an impact. it is spreading fast and we are lucky because the new year holiday is bad for spreading the virus in terms of health. it is good for companies because they have shut down reduction and will extend it further. the japanese government remains very supportive towards china. there were is -- there is a major visit coming up. they want to stay as open as possible so the reaction is not panic or anything, which is helpful. it will spread. and the japanese economy has mystically underperformed.

anything can push it into recession during the first half of the year easily. dolor: what does mr. kuroda about core inflation that seems to be structurally consistent? .6%.e headline cpi at how worried are you? >> the bank of japan has unofficially changed its target to 1%. this is what they are talking about. inflation. companies have been after the best been able to increase prices. there is a little bit of life in the economy. wages are not going up and this is where mr. kuroda can do little. it depends on productivity. companies are investing in digital technology. the economy is not in a bad shape. with the bank of japan is doing is financing the government. the government is spending. he economies are rather busy.

the -- the economies are rather busy. -- yen could drop below paul: in two or three minutes time we will have retail sales for the month of january. i want to bring up this chart that shows the impact of sales for 2014 and the more recent one last year. servicese that normal resuming for retail sales in the wake of that increase now? yet, service sector remains strong. that depends on many factors. tourism will be hit with the virus be out. global warming isn't coming in because we have too little snow and skiing has been important with asian tourists coming in. overall services are focusing on digital lies -- digitalization.

it depends on what is happening in china. this is the picture. had the jobs number is out. it was a slight beat and enviable on appointment rate when you compare it to the rest of the developed world. to what degree is it really an expression of japan's demographic problems? >> that is the demography of course. 2.2% labor market is empty. now the point is to employ people more efficiently. companies have been soaking in employment because they see the difficulties ahead and they need to train people and integrate them. this is the digital lies in -- digitalization story. japan needs to be a lot more attractive for foreigners to have a significant impact on

that side. taylor: i'm looking at a dollar-yen charge. we have seen a lot in the last six months dollar strength, yen weakness. and now you are seeing dollar weakness and again strength at 108, 109. what is your call on that? betweentory plays out china and the u.s. and perhaps another virus added into the picture, the bank of japan will do anything to keep the yen as weak as possible. exploits -- exports are key to the economy. so far it is working well. i wouldn't expect the yen to be stronger than 105 anytime soon. the yen,the subject of currently 108, as we get these numbers out, industrial production beat for the month of december, rising 1.3%, declining

3% on the year. that was better than expected. retail sales a bit of a miss in december. .2% growth. .he market was expecting 1% that means a contraction of 2.6%. i know you haven't had long to digest that but what is your initial reaction? that is very helpful. retail is a major problem. people are buying, doing it in a diverse way. they are doing a lot on light. there is not so much in the data but overall it is ok. production has to stabilize these numbers -- stabilize. these numbers are comparatively positive. let's look at the overall trend of demand in asia. i want to bring up more

breaking news. china said they confirmed the 9000avirus cases rising to 692. 9692 cases.ming in the midst of all of that breaking news, -- thank you to our guest. we really appreciate your insight. we will have much more next. this is bloomberg. ♪ . ♪

this is bloomberg markets. i am paul allen in sydney. taylor: i am taylor riggs in san francisco. let's get a quick check of the business flash headlines. carnival recovering from some of the heavy losses after one of its passengers was cleared of suffering from the coronavirus. a 54-year-old woman from macau have been held in isolation on

board a ship and port at italy and other passengers were told they could not disembark. italian health officials said they only had the flu and the crew can proceed as planned. swatch fell to the lowest in a decade as switzerland's largest what -- watchmaker deals with a triple whammy. hong kong, the viral outbreak in china and others. halting production for the first time in three years, dropping 11%. last year switzerland exported fewer watches from any year since 1984 as demand collapsed in the lower end of the market. sk hynix is scaling back. it is planning what it calls more prudent output after fourth-quarter profit missed even the lowest analyst estimates and pushed a chipmaker into a net loss for the time.

they hope for a recovery in semi conductor demand from the arrival of faster 5g wireless technology and higher speed computing. deutsche bank has reported a 31% surge in fixed income trading as the ceo's restructuring plan starts to pay off. he also saw inflows at his asset management unit, giving comfort to investors after a bigger than expected loss last quarter. they are forced to lean more on traders again when hopes for higher interest rates did not materialize. inl: all right let's check on how asian markets are shaping up. it is a mixed bag at the moment. we have had new zealand trading for three hours. in australia the asx is back in positive territory, rising about half of 1%.

we have information technology and health care stocks leading the way. looking at nikkei futures off .3%. plenty for markets to ingest. weakerbers coming in than expected. the jobless rate in line with expectations. retail sales, a disappointment for japan, declining more than expected. and when the kospi gets underway, we have got the futures looking flat at the moment. we will keep a close eye on s k hynek's -- sk hynix. still to come in the next hour of -- off you go. taylor: i want to say china was saying they confirmed 1500 coronavirus cases that are severe. 213 deaths.orting 9632,tal number of cases

1500 severe, 213 dead. we will have more ahead. markets are having a good day. this is bloomberg. ♪

>> from bloomberg's world headquarters in new york, i am shery ahn. asia's major markets have just opened for trade. this is "bloomberg markets: asia ." our top stories this hour, the coronavirus is declared a global health emergency as cases continue to rise. the u.s. reports its first human to human transmission. the world health organizion -- a sharp contrast to the sars crisis in 2003.

for the chip industry, sk hynix sales slump, pushing the company to a fourth-quarter loss and casting doubt over sector recovery. the who announcement -- what are we seeing in asia? >> we are seeing the tone start to filter through over to japanese markets after the world health organization had announced a global health emergency. they said that travel and trade restrictions would not be necessary. we really saw u.s. markets take a leg higher. we can see it filtering over the nikkei, the topix, however, we do still see a modest bid for safe havens. the yen modestly higher. for the eighth day in nine, not really seeing much in the area of jgb's. let's take a look at other areas in the region as well. the kospi actually higher. hynix, theh sk semiconductor company hosting operating profits far below

estimates, the second highest weighted stock in the region, so make sure you keep an eye. at the same time, australian stocks higher. in new zealand, we are seeing some weight. stocks down 16 basis point or so. take a look at u.s. futures, not doing much of anything at the moment after the strong comeback we had seen during the trading day. futures in the u.s. pretty much flat. take a look at the rate space. as you can see here, aussie dollar a bit lower. at the same time, you are seeing a moderation in the pound. a strong jump after the boe meeting. they did keep rates on hold even though there was an expectation for a rate cut at mark carney's last meeting. seeing some moderation today. at the same time, you look at the offshore yuan, still very close to that line in the sand. if you look at 10 year yields in the u.s., not doing much of anything, shery. shery: thank you so much for that. that's get more on the coronavirus now.

say as.o. had this to they declare the outbreak a global health emergency. a publiceclaring health emergency of international concern over the global outbreak of novel coronavirus. the main reason for this declaration is not because of what is happening in china but because of what is happening in other countries. our greatest concern is the potential for the virus to spread to countries with weaker systems. shery: let's cross to selina beijing and david ingles in hong kong. a goodems to come out time. we continue to see the death toll and the confirmed cases rising in china. selina: that's right. the death toll has reached at

least 212 and the number of confirmed cases has risen to more than 8000 and it is escalating very quickly with just over a 24 hour period to report more than 1200 new cases. this declaration by the world health organization can call this an international public health emergency and does allow it to better coordinate government responses. as you heard from the director general, the greatest concern is that this could spread more widely and really hit those countries with weaker public health systems that are ill-equipped to deal with a massive outbreak like the spirit also, hours before that declaration, the u.s. did report its first case of human to human transmission. you also had the first cases reported in india and in the philippines. you also heard the director general really praise china for its efforts to aggressively try to contain this thing, that this declaration is not saying china is not doing enough. he mentioned china trying to build a hospital in 10 days.

interestingly, the world health organization did not issue -- on bands, but you are already seeing government business is trying to take their own aggressive actions in the form of -- halting airline flights, restaurants closing down, as well as pressure closing at land border with china. shery: only the sixth time the who has ever declared this an emergency. will this get reflected in the pmi numbers we are getting out of china tonight? david: probably not in full. i think what is important to keep in mind is that the survey of the pmi numbers due 60 minutes from now was taken midmonth, so yes, there were confirmed cases, but the full sentiment and markets reaction perhaps not fully part of the number coming out. obviously, there are two things. the estimate is for 50 on manufacturing. 53 on services.

that obviously does not and will not capture what people are feeling at business ours -- businesses are feeling right now. when you extrapolate that into the first two weeks of february, the numbers, to really sort of give you an idea of how businesses are affected, but you know, you look at some of the things selina was pointing out, suspending across a whole list of industries, it is not very difficult to understand what the impact or activity is going to be. china's province will be extending the holidays beyond february 9 due to the virus. we are expecting the markets to return on february 3. that would be monday. we will see what happens because we saw the extension being much longer during sars. saying thets are economic impact of this coronavirus could actually exceed that of sars back in

2003. what is our bloomberg economics team saying? david: bloomberg economics have run the numbers. let me bring that up here. just so i can be very accurate in what i say here. in a contained scenario, so high-impact, but not very long, growth will fall to 4.5% or may fall to 4.5% this quarter. you make a very good point that it is a lot different from 2003. china now is a much bigger economy, more integrated with the world, so the fallout will obviously be more widespread. it's also a more services oriented economy, more than manufacturing, which is why it takes you back to the pmi numbers coming out as well. things like business expectations, things like new orders for services as well, because that might give you a better idea. 4.5%, to answer your initial question for the bloomberg

economics estimates for now, talking about the policy offsets that china might and will put in place. shery: china correspondent selina wang in beijing and also our vi ingles, bloomberg markets coanchor in hong kong, thank you to you both, and be sure to keep up-to-date on this developing coronavirus story by running the function map virus go, as well as how specific companies may be affected. check it out. we will have plenty more on the coronavirus later at this hour with global virus met with director -- with the global virus director. do not miss it. for more on today's market action, bloomberg mliv strategist mark cranfield joins us from singapore. you have been watching the offshore yuan. we have seen it weaken at one point past the seven level. right now, it seems to be

stabilizing, especially after the who declaration. indeed, there's been a lot of action and the offshore yuan this weekend it's a good reminder of just how important that will be once chinese markets reopened next week. a lot of people are trying to guess where the offshore yuan will resume trading. we briefly went above seven for the dollar yuan, as you said, back to the 698 kind of area. there is a lot to digest even before monday. we have pmi data. the key thing is that the china authorities have said they will provide plenty of liquidity, as you would expect. they will try to calm the market reaction next week and they probably had a good indicator from taiwan's collapse yesterday of just how bad it could be if they are not really on top of the situation, so that is certainly a good reminder of the kind of volatility they could expect in the equity market so coming back to the yuan, this really could push the pboc into the big move, which they really

avoided last year. they did not cut the official interest rate last year. levers,ed lots of other the mls, the repo rate, the rrr, all of those things were reduced, but not the official rates. all of this activity related to the virus, the fact that it really is a risk to china's economy, that could be the one that tips them over the edge, so it is possible we will see the in february, early actually move a big believer. that is an official rate cut. the yuan may take that pretty well, the fact that china is willing to use its big tools may actually work to the benefit of the yuan, so all that we have seen the yuan we can this week going into early february, if the pboc takes the big measures to try and boost the economy, that might start to play out in a stronger yuan, so one way or the other, we will see a lot of activity, a lot more volatility,

but the yuan is very much on the mind of the chinese authorities, and the pboc will probably do something to help support the currency. shery: this could not have come at a worse time because we were just starting to see economic numbers out of asia recovering, including the hong kong trade numbers yesterday and just now, korea posting a huge beat on industrial production. of this stuff is very interesting because we have seen rebounds in several places. japan, korea, hong kong, and a lot of that is a response to people being more confident that the trade war between the u.s. and china was coming to an end and of course, we have seen the phase i deal come into play. now, we will be hit by the weakness from the coronavirus. it does tell you that the underlying trend for the global economy was to rebound. people were getting back to work, business was resuming, so now, we have got to try to look ahead beyond this period of

where we have the subdued situation because of the virus, and people have been trying to see how long do they have to wait for another rebound in industrial production for sales, for various business factors. february will probably be pretty difficult because there will still be the virus containment going on, but people may be thinking that march or april will be the next rebound. data will be extremely difficult to read in the very short-term term, but people will be really encouraged by what they had in december and thinking maybe the second quarter of this year will be a big rebound. that is certainly what we saw in 2003, once the sars was fully contained, we saw a big rebound in all the economic data. it is just a question of economists trying to decide when will that rebound happen?

shery: you have to play catch up to the economic activity that was lost. thank you so much for that, joining us from bloomberg mliv, and you can follow his commentary on the markets live blog on the bloomberg at mliv . you can get a market run down and when clicked, and there is commentary and analysis from bloomberg's expert editors so you can find out what is affecting your investments right now. first word news with jessica summers. jessica: the bank of england stood pact in what was mark carney's final meeting as governor. officials voted overwhelmingly in favor of keeping the key rate at .3%, but they signaled that easing may be needed soon. they cut gdp forecasts and predicted inflation will only return to target by the end of next year. that did prompt investors to predict a rate cut later this year. somee prospect of tightening farther out, which is the way we described it, is modest. that is how it all ties together.

jessica: president trump's impeachment defense has undergone a dramatic transformation on capitol hill. it has gone from saying his call with the leader of ukraine was to saying it was not criminal, to claiming it was permissible if inspired by mixed motives to finally asserting that seeking foreign help to win reelection's is not impeachable. former national security advisor john bolton is still waiting to hear from the white house. that is amid reports the administration wants to block his upcoming book. 's latestair force warplane is struggling with yet another issue. the 25 millimeter gone on at 35 joint strike fighters cannot shoot straight and has unacceptable accuracy and hitting targets. it's also mounted in a housing that's cracking. it is intended to be the most advanced aerial platform ever, but the program has been plagued by massive cost overruns and delays. rose in kong's exports

december, snapping a 13 month streak of declines. the longest since 20 16. shipments expanded 45 billion u.s. dollars, up 3.3% from a year ago, and beating economist forecasts. to $4ng the trade deficit billion u.s. hong kong's exports saw their biggest annual declines since 2009. 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. still ahead, timeless coronavirus is threatening to hammer the economy. more on the outlook ahead with pmi data due. cpi anda will release private sector data. those numbers, ahead. this is bloomberg. ♪

shery: this is "bloomberg markets: asia." i am shery ahn in new york. china's january pmi's are set to drop likely by more than expected. the manufacturing gauge might pull back a little, reflecting the holiday loss. our intention will be on the nonmanufacturing reading for any early signs of the effects of the services set from the new respiratory virus. joining us now from hong kong is serena joe, mizuho security at vice president. expectingicant are we the impact of the coronavirus to be, especially in the month of january, when we only saw the new cases and the news around the middle of the month? think it has a significant downside risk to china's growth outlook. i have been compelled to start -- the impact is going to be larger.

the virus is more contagious. back in 2003.rs it is a well transportation hub. it also contributes a much higher slice of china's gdp. almost 50% compared to around 45% in 2003. outbreak this disease is also posting headwinds to china's manufacturing sector. they have ordered factory suspension for another week. usually, only small factories in china would take a break of more than two weeks. shery: we are seeing more and more heads coming from these

asian governments, including vietnam, saying they are suspending visas to chinese tourists. we had already heard from shinzo abe that they are ramping up preventive measures, no longer accepting any more of these startingus patients, february 1. if you look at the impact the coronavirus is having on china or the rest of the asian economies, at least could we find some solace in the fact that after the initial crisis is over, we could see economic activity playing catch-up in a very significant rebound perhaps in the second half? --ena: yes, that is what because we think if the inuation gets compounded february, it will gradually resume -- starting to resume in

march. there will be catch-up in q2 and q3 and we couldn't keep full year gdp forecast of 5.9% growth. is the positive scenario for this situation. shery: what will be the impact to the other economies around asian that heavily depend on china such as south korea and japan? now, the think right damage to china's economy may be comes from the service sector related --not quite other than outgoing tourists, it's not that related to all the asian economies, but if the situation gets worse, if there are more outbreaks in all the provinces in china, this will

significantly impact china's domestic demand, including manufacturing demand, and then i a morehere will be significant impact on the asian countries. shery: thank you so much for your time today, serena zhou. the figures break with societe generale. not miss an exclusive interview with federal reserve vice chairman richard on friday at 12:00 p.m. in new york, 1:00 a.m. on saturday. for early birds watching in hong kong. this is bloomberg. ♪

shery: this is "bloomberg markets: asia." i am shery ahn in new york. sk hynix posted operating profit that missed even the lowest analyst estimates for the fourth quarter. bloomberg's asia technology executive editor peter elstrom

joins us from tokyo. we know about sk hynix as the world's second-largest maker of the ram and they seem a little bit more optimistic when it comes to dram prices, saying they will see dram demand growth to be 20% this year, a mild first half, and a better second half. we have been expecting the market to recover for quite some time. what happened? what you see in the quarterly financial results that they just put out are some pretty disappointing members. operating profit fell 95%. that was lower than any of the analyst estimates out there. the company reported a net loss, which nobody had forecast. the numbers were pretty rough. this comes as we talked about yesterday, after samsung reported numbers that were also pretty soft in their memory chip is this, so the major players in this market are seeing weakness in the market. they have been anticipating something of a rebound in

demand, particularly driven by data center customers that need your servers, more capable servers, and this rollout of new wireless technology including 5g. that has been slower than people had anticipated. what you are hearing from high makes now, they are having a conference call. they are saying, yes, they are optimistic for later on in the year. they hope this rebound will actually take hold, but the company has been saying this for a while. shery: to your point on server demand, they are saying demand of server to keep recovering this year -- it sharply increased this year as well. will this new technology have a significant and material impact for the business is going forward? businesses going forward? the memory market is a tricky one. prices tend to fall over time, but demand tends to pick up. in these key areas, as we see

the switch to cloud computing, more companies are setting up these data centers where they need bigger servers, more capable servers, and then at the same time, we have wireless operators around the world rolling out advanced technologies, pushing ahead with 5g in many markets. that is going to take more capacity from these memory chip makers, too. what remains to be seen, and samsung called this out, and high makes called it out today, there are pretty big uncertainties. there is the trade war we have been talking about, the coronavirus in china, which may have an impact on demand, too. both companies are signaling that there are some pretty big unknowns out there that they are trying to sort their way through and that will affect demand going forward. shery: peter elstrom, thank you so much, joining us from tokyo with the latest on south korea's second-largest chipmaker and their results. coming up next, more on the coronavirus with the global virus network director.

he will tell us about his efforts to develop a new diagnostics tool for the outbreak. this is bloomberg. ♪

shery: we have breaking news out of australia. we are getting the latest ppi numbers quarter on quarter growing 3%, which is a deceleration for the fourth quarter, preliminary numbers. private sector credit month on month, accelerating more than expected, 0.2%. in fact, coming in line with estimates, accelerating more than expected on the year on year numbers, growing 2.4%. also in acceleration from the month of november. we have seen credit growth being pretty anemic in australia with the rba governor, philip lowe, recently commenting on this, saying private sector credit has hardly lifted at all despite the

central banks effort. we are seeing it to rise slightly year on year, 2.4 percent. ppi year on year, one point 4% growth. this is a deceleration from the previous quarter. that's turn to jessica summers for the first word headlines. u.s. economy is holding steady. that is despite drops in major confidence indicators. the economy grew an annualized 2.1% in the fourth quarter, marginally outpacing estimates. that is the same as the previous period, but there were falls in consumer spending and business investment did deteriorate. the white house economic advisor, larry kudlow, says the u.s. has not seen any major economic impacts from the coronavirus. japanrial producer in recovered in december after falling for the two previous months. factory output climbed 1.3% from november, almost twice what economists had expected. production slipped 4% over the december quarter.

data shows tokyo consumer prices rose by 7/10 this month, fractionally below forecast. exports rose in december, snapping a 13 month streak of declines. it was the longest since 2016. shipments expanded 45 billion u.s. dollars, up 3.3% from a year ago and beating economist forecasts. imports fell just under 2%, widening the trade deficit to 4 billion u.s.. across the area, exports saw biggest annual declines since 2009. the world's leading oil producers are debating whether to bring forward their next meeting as the signs indicated virus outbreak will hit demand. opec is next to do to meet in march but reports from algeria say the gathering may move up to next month as producers assess the likely impact on demand for energy. is inlegate said the idea

its formal stage but several others said they were unaware of plans to bring forward the meeting. 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. asian stocks gaining ground for the first time in seven days. let's get the market action from sarah. >> we remain in the green after better than expected industrial production numbers out of both south korea and japan at the same time that positive sentiment from the u.s. trading session really rolling over after the world health organization said that they will not be recommending any travel or trade restrictions. as you can see, the nikkei higher. the topic expire. strongly at that. the nikkei was on pace for its worst week since may so pairing some of the losses. at the same time, you see the korean kospi not up nearly as much but still in the green.

however, being weighed down by sk hynix. it makes up 5% of the index. let's take a look at a longer term view of sk hynix. as you can see here, this early december still up 20%. we have really seen a nice run for the company. however, we are now seeing shares surging after operating profit came in much lower than expected. there was a lot of positive outlook over the semiconductor space, but this could put a pallor over the space. i do also want to broaden it out. take a look at the asia-pacific region as a whole. as the coronavirus has spread, we really have seen sentiment take a turn to the downside until the rebound that we are seeing today. still, as you can see, if you look at the msci asia-pacific index, down 3.5% or so, that's one of the worst weeks since all the way back in q4 of 2013. that was right before the q4

bloodbath, shery. shery: thank you so much for that. let's get you the latest on the death toll from the coronavirus, 200 and overove 9600 cases in china just as the who declares the outbreak of global health emergency. one new case of coronavirus bringing the total number of confirmed cases in south korea to seven. here to discuss the latest developments is the director of the emerging infectious diseases program at the duke national university of singapore medical school. professor, great to have you with us. thank you for being with us. explain to us a little bit the difference between this coronavirus and the sars epidemic. of course, you have been working to find a solution to all of these outbreaks. how much more serious could this one turn out to be? you asked the

difference between sars and this new coronavirus. like itly, this looks spread faster. into thely two months outbreak and we have over 9000 people infected. last 7.5was the months. the total is 8000 infections. definitely, this one has spread faster. the deaths of people infected, that one seems to be lower by 2% or 3%. shery: given how infectious the coronavirus is turning out to be, should the who have called this an emergency last week? >> i am not on the committee. i am one of the sitting experts so we are not allowed to discuss a closed door debate. shery: you have said in the past that it would be better to overreact to infectious diseases

than underreacted. how is the global response at this point? peter: the shutting down of the city an evacuation of citizens from infected countries, these are all very draconian measures. it is actually quite controversial because a lot of our for it and a lot of people against. different regions are doing different things. i think that in terms of being cautious, i think the whole committee is doing their best. shery: the who has praised china for its cooperation and you have been collaborating with china in developing diagnostics for this new disease. how cooperative, transparent, has china been so far? linfa: compared with sars, it is improved. with international

organizations, who, the global health. the wild animal in all this kind of forum, we always get chinese scientists and their opinions, and so far, i think on the ground at the government level, it is much more transparent. but there is room for improvement i think, especially during the early outbreak time. the first three weeks. shery: we have already passed that. what else can be done at this point? linfa: from now on, it's really collaboration. at the who meeting, it's clear to say we will declare a global emergency but we recognize the great effort that china has done. from now on, it's really the whole international community. is vaccines need and therapeutics. international collaboration is even more important. virus, justars

because the response was a sort of delayed, that took a long time to peak. what are we expecting for the coronavirus? agrees withbody that because the chinese new year holiday within china will be finished by the end of this weekend. if the government does not further delay the holiday, then people will start to go back to their original working place or living place, and then i think this will be a real test. have we peaked? is there another peak in two weeks to three weeks time? shery: you were in wuhan just recently. were you there during the outbreak? what did you see? linfa: i was there during a very important week, just before the chinese government declared there was a human to human transmission. that was a prearranged -- have long-standing

collaboration with the people in wuhan. i already looked going there. the decisions before the outbreak. on the ground, at that time, i the population was knowledgeable about infectious diseases after sars. of course, it's the number one thing people are talking about. underground, only maybe 1% of people were wearing masks. i think people are alert but not panicked because at that time, the government said there is no evidence of significant human to human transmission, so i left on the 18th. the whole country in china, the into highd, just went gear of response because the

evidence of human to human transmission was reported in the basically -- the whole city. yes. shery: when we talk about the coronavirus, we tend to compare it not only to sars but just the common influenza virus, and we have already seen thousands of deaths this season, so why are people more and more worried about the coronavirus than they are about the usual yearly flu? linfa: i have used this quote, but i will use it again. minister,st offense donald rumsfeld, used this terminology when fighting terrorists. you have the known unknown's, the known unknown's, and the unknowns. we are dealing with them. that is why there is a scare factor. for people like myself, we cannot predict it. have been dealing with it for centuries.

much more transmissible, much more dangerous than the coronavirus. every time we get any virus, we just don't know, so that is why scientists and the international community just need to be cautious. is better than under reaction in these kind of circumstances. shery: we will start to see more reaction from the global community. thank you so much for joining us. director at the duke national university of singapore medical school. next week on bloomberg, we will bring you special coverage of the iowa caucus, starting on monday at 10:00 p.m. in new york , 11:00 a.m. in hong kong, and tuesday will carry president trump state of the union address followed by the democratic response. that kicks off at 9:00 p.m. in new york, 10:00 a.m. in hong kong. this is bloomberg. ♪

shery: this is "bloomberg markets: asia." i am shery ahn in new york. the ceo of wonder technology says that less than 10% of mental disorders in china are properly diagnosed. when they told us what kind of companies she is working with. with all theking high-pressure factory companies like tencent, chamois, the biggest online learning platform in china. because wel love it are helping them to solve a solvem that they cannot in classrooms. this is something superlight. we divided into the mental health issue, it is three stages. you cannot focus. if you continue that state for a long time, you might start to lose sleep. you cannot sleep well.

people are losing their hair. people cannot get pregnant. phase three, clinically depressed or anxious. started to have anxiety attacks. we are focused on stage i and stage two, the majority of the population. >> when you're talking to these big companies about this mental health acpp, how interested are they given the social stigma around mental health and china -- in china? wendy: we do not position it as a mental health solution. we position it as an anxiety killer. right now, you probably don't know, in china, for age 14 -- it is the number one death rate and there are 90 million people who are depressed. shery: suicide has the number one death rate in china. wendy: yes, 815 to 34.

90 million people are depressed and 2 million people are trying to kill themselves in a year. among 93.4% of people, they believe their anxiety and depression comes from work. this is the perfect timing. they can play a big role to deal with this. shery: your research shows that there are more than 50 million people who have anxious disorders in china but less than 3% of people have actually been properly diagnosed and some 10 million or so who have mental health issues. than 10% are diagnosed and go to hospitals. syndromes like anxiety and depression are easy to be misdiagnosed as you are going through menopause, you have heart problems, cardio problems. is thedamental root

mental status. social you seen the stigma around mental health improve in china? the government has tried to rule out several policy changes including a mental health law to improve the situation. wendy: it has been approved but still not fast enough is the way i see it. most people feel very shameful, if you think about -- nobody will tell you i am going to see it. it was very common in new york when i was there. nobody would talk about it here. that is why only 3% of people go to see the psychiatrist or the psychologist and that is a later stage. >> what about the different ways that men and women handle stress according to the data? wendy: women and men have different strengths. women are better at understanding it and talk about it. men are better at navigating it. something inlso is

china. china, notople in only the millennial age, even after its in 30 or 40, still feel very wrong. people do not have confidence of the path for themselves, will bring them ultimate happiness. a third come from loneliness. timeu also spent a lot of observing the landscape for female entrepreneurs in china. in your opinion, how has that landscape changed? the crisis moving up. now, it's 30 to 35. it is a crisis when it comes, but it is a positive crisis because it helps you to push you to think about what i am doing, what i want. yes. >> a lot of the companies he

worked within the past, you were helping these managers increase their emotional intelligence to become better leaders, better ceo's. what was the main enhancement that you would give them? how did you improve it? wendy: we provide tools and ai is one of the tools. the way theyg them are emotion may because where you are emotionally reflects where you are physically, mentally, emotionally. the beauty of the voice and emotion is very honest. and we are so good at brainwashing ourselves that we are ok, but actually, we are not. we lose that ability to understand how we really feel. we lose the most important message and data about this. there is also how we can use that information in decision-making to make better decisions. if you feel really sad about something, disappointed, and you

do not understand it, come you improve it. third is how to enjoy it. most of us are trained to onlyess bad emotions and encourage positive emotions, but that's really a bad way to deal with this because the emotion you don't like actually helps you more to be successful than the emotion you enjoy. , founder and ceo of wonder technology was selina wang. coming up next, we look ahead to the market opens and taiwan and hong kong and to china's pmi. this is bloomberg. ♪

shery: this is "bloomberg markets: asia." i am shery ahn in new york. ibm is searching after hours named acloud veteran -- veteran as ceo. lasturchase was completed year. he replaces longtime leader virginia rometty. she will continue as executive chairman and serve through the end of the year when she will there after 40 years with company. amazon surged in late trade after reporting earnings from the holiday period that beat wall street forecasts. fourth quarter sales were more

than 87 billion dollars, $1 billion above estimates, but profit was six dollars, $.47 a share. the results show amazon is able to invest in next-day delivery without damaging the bottom line. thantocks rise added more $13 billion to jeff's fortune. mark zuckerberg's -- facebook slumped more than 5%, have been posted its lowest ever quarterly sales growth. the decline left this year with an $81 billion fortune. that makes the 35-year-old the world's fifth richest person according to the bloomberg billionaires index. china's pmi data for january is due in a few minutes. the numbers will come as stocks in taiwan, online, which reported one of its biggest drops ever on thursday. david ingles joins us again. pmi numbersart the out of china.

coronavirus really could not have come at a worse time. this gtv chart on the bloomberg showing the manufacturing pmi into a were barely standing territory while the nonmanufacturing pmi has been pretty strong. what are we expecting today? >> the estimate for manufacturing is at 59. i want to make two caveats. the survey for this set of members was conducted mid month so arguably, it does not actually encapsulate the worst of the health scares as well because a lot of the market reaction, a lot of the business disruptions, actually took place late last week, which arguably was not really part of the whole survey. that being said, i am having a look right now at the sort of different estimates and when those estimates from those individual economists actually put them out. what is interesting -- i will not name names here. those estimates that were submitted to us in the early --

tended to be higher. the latest ones over the past few days are actually 49 .5, 49.7. these are changing expectations for this as well and you do understand that because this is a developing story, a moving target, and we now have a whole list of cities and provinces in china that have basically said extend your holidays in some cases beyond next month. shery: which really messes up with the supply chain. that story is big in taiwan, which saw a big chart. what are we expecting for today? david: yesterday was quite ugly. note, we areat just getting these lines right now. fund,iwan stabilization they will be holding a meeting if needed, and they will be closely monitoring the financial markets. in terms of the economy,

momentum is ample. shery: david ingles, we will be back with you soon. thank you very much for that. coming up, we are minutes away from the release of chinese pmi data. we will break down the numbers with michelle lam, next. plus, we speak to ceo michael dunn about the impact of the coronavirus outbreak on the auto industry. this is bloomberg. ♪ good morning!

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rishaad: 8:00 thursday in new york. welcome to bloomberg markets asia. i am shery ahn. the coronavirus is declared a global health emergency as cases and deaths continue to rise. the u.s. reports its first human to human transmission. the virus is another blow to china's slowing economy. data in the next few moments will give an insight into the impact. hong kong exports snapped a 13 month losing streak in december as the phase one trade deal eased tensions but for your shipments show a decline. -- four -