to "bloomberge markets." coming up in the next hour, coronavirus fears. potentialof the deadly virus crop up. investor insights on how to deal with uncertainty. how companies are dealing with the virus. apple temporarily shutting down some stores.

many first for alphabet. it is the first earnings report since sundar pichai took over. the first time google has reported youtube and cloud results. it's look at how u.s. markets fared today. the gains being led by the s&p 500 rebounding. tech leading the way. yieldy, the 10 year getting a left. price lower, yield higher, really holding it under the crucial 150 level. crude look at this, falling under $50 a barrel. crude of course really getting hurt hereby concerns over demand. globally, the big tex story we are watching, all about shares of alphabet now falling about 5%

or so. increased disclosure, good news from the investor standpoint, but a lot of concerns. mike: -- paul: we do have new zealand trading and it is looking kind of flat right now. also flat after we saw the selloff of 1.3% yesterday. dk futures appeared to be back in the green. quick check on currencies. stability appears to be the name of the game. we will be keeping a close watch on the aussie dollar. atected to remain on hold 0.75%. let's get the first word news. >> sterling faced its biggest

loss in several weeks as the u.k. and eu clashed. they led losses among g10 currencies. the eu says a highly ambitious trade deal is on offer but only if the u.k. agrees to its rules. prime minister boris johnson said the u.k. will thrive. china with lower growth targets for this year. economic goals are typically -- 6%ced at the annual down from 2019. the government is debating a range of measures to support the economy. thecoronavirus is hitting chinese economy after a tumultuous 2018. annual retraction for the first time in a decade. further shrinkage in the december quarter left the hong

kong economy in recession. citi is lowering its estimate for revenue in macau. they nasty revenue down 8% on the year. revenue to fall 31% in the first half of this year before rebounding about half that much in the month. --citibrin remain remains confident in overall macau growth. global news 24 hours a day on air and on quicktake by bloomberg, powered by more than 2700 journalists and analysts in over 120 countries. this is bloomberg. taylor: i want to refocus back on china. they are said to be seeking flexibility in trade pledges with the u.s.. with the latest, i want to go to wang ing's selina

beijing. what kind of flexibility are they seeking? selina: this is beginning to come -- beginning to complicate the phase one trade deal. u.s. officials have said they asks not received any such from china thus far. stocks reopened, following the most since 2015. -- the pboc big money into the system. they are considering some measures including increasing the debt to gdp ratio and selling more of those special government bonds. you have seen them start to pull back on consumption. the number of trips made in china over the lunar new year

plunged. or refrainedanned from traveling. from, 25,000 flights to, or in china were canceled. in addition to potential complications to that phase one trade deal, the coronavirus is also bringing tensions between the two countries back into focus. they have overreacted to the virus and u.s. officials are saying they had offered their butpublic health experts had not received any response from beijing yet. for more on china's market rout, let's get straight to our next guest. the cio for state street

advisors. thank you for joining us today. i want to get straight into this chart on the bloomberg terminal. a number of stocks hitting limits. what do you expect for the day? >> the reality is that you have had businesses shut down and freeze. but veryurther falls often, you get a rebound the next day. rebound for the u.s. stocks. are we perhaps looking through the noise here? virus,real issue, the pretty serious to those involved. but it is the shutdown of the economy that is the real issue. bigaction will have a

short-term impact. learnedthe lesson we from last time around. it is hard to keep focus when the headlines are about more cases and perhaps spreading outside of china. taylor: scouring through your 2020 outlook, your base case is that the global economy continues to grow. has anything in the past few weeks but that growth perspective off the rails? has this coronavirus impacted global growth? >> yes. it is very hard to have a forecasting presence that is one year or three years out and keep tweaking it based on the data. but it mayact 2020, not be a very large revision.

it may be a sequence in question when you have a sharp fall in a rise later. were you happy with the liquidity that the pboc provided yesterday? >> i think they are probably thinking in terms of this being a down payment. bait is very -- g is very tempting gauge where they are. is of course a lot more important to china now. back in 2003 during the sars virus. -- in china and

the u.s.? >> again, sequencing issue. yearusly, the lunar new celebrations will be a disappointment in terms of sales. we do see this as a sequencing 2020 growth issue. i think we are going to see an unusual sequencing of events. retail has been one of the success stories. the chinese economy have moved toy from a smokestack model a more consumption model. resilient inore the longer term. we have seen a flight to

safety in recent days. i want to return to one of my favorite charts of 2019, the great pile of negative yielding, climbing that. blackrock is calling that a powder cake. -- a powder keg. backyard,ight in my london has a lot of negatively yielding territory. spreadot just chasing willy-nilly, but it is encompassing a lot of other asset classes. if it was lined spread chasing, you could be stirring up problems for the future. negative yield is really a function of a negative outlook of the global economy in the out

years. i think that may be too pessimistic. yield, 1.53.0 year his lower for longer too pessimistic? had lower for longer for a long time. low for 1.50 is too nominal yield? i think it is too low. i think it is too pessimistic. i think it has been swayed by the short term factors. there are limits to that argument. taylor: i want to pull in your thoughts as we fold in both the u.s. and china. china using this as an opportunity to revisit phase one of the trade deal, looking for

more flexibility. thatthink it is important they look for any degree of flexibility they can use to get through this very difficult period. i am sure there would be some kind of force majeure clause. i don't think it is in the re-write it, i think you want to move on to phase two. it deals with higher value activities. if there was any sign of going think we willon't get there. paul: thanks so much for joining us today. coming up, alphabet shares, doing the best since july. the company's operating profits

missed wall street estimates. this is bloomberg. ♪

taylor: some more breaking news on the coronavirus. ei profit -- providence is saying there are 2345 new coronavirus cases. we will continue to bring you those headlines as they come across. it looks like the death toll rising to 425. another big story we are reportingalphabet fourth-quarter earnings. revenue missed wall street estimates. company's the advertising business is struggling to maintain growth.

my first have to start with this disclosure. finally getting numbers on cloud, on youtube. how much of a game changer is this for you? >> i think everybody is happy because of the transparency. gives us a better idea. $15 billiong a business. in the grand scheme of things, you get a little bit more it willinto how much grow with search going forward. that has been a concern with investors, maybe why google and alphabet not doing so well after the earnings report. concern about how much they can continue to grow the ad business. search stillng growing but i think there is a concern about how much that can

really grow. we got a good insight into youtube being a good growth area for them. taylor: are you surprised at how small youtube is? only $2 billion. are you surprised? billion to me is still massive. think about $15 billion for any other company. $300 million. is not doing that badly at all. i would not be sad upset if i were google. think they are seeing, i it is something that will only increase. we are projecting that between video viewingu.s. hours on a weekly basis will increase 8%.

atertisers will follow with dollars. dollars.d . paul: you mentioned it is good to see the transparency. clicks,missing, paid cost for clicks are missing. >> i don't know how useful it was. of costorical trends per click and aggregate clicks, they were following the same trajectory. cost per click going down and aggregate clicks going up. the transition to mobile. there are more people searching on mobile. it is a smaller screen. people will click on the paid search ads more often. are you going to scroll further down the page on google search

results like you do on a desktop? probably not. now that mobile is such a big part of the way people search. paul: the cloud, sales growth 53%, still lagging amazon and microsoft. is more spending needed to make alphabet more competitive? >> spending is needed. with new resources heading the cloud business. i think it is something that they want to be its next cash cow. but it is a very edited business. -- very competitive business. i think it is a requirement of more investment and for google, i think it will be a really big part of their growth story going

forward in terms of how they can jockey for the two or number one spot. >> the cloud business is something analysts were thinking, top of mind. talking about headcount and saying the most sizable increases in headcount are coming from the google cloud, includes -- including a bigger ookrction from the l application. are you ok with the rising expenses because you think it will pay off in the future? >> that is something you have to be thinking. if they will be increasing investment, google will use its innovation as shown in advertising and the cloud business to hopefully outinnovate. seen, but a lot to be

i think that is there hope. this was the first quarter where we clearly had sundar pichai in charge, taking over both alphabet and google. what else do you want to see from them? >> we have not talked about anti-regulation tech makes. -- antiregulation tactics. it will be interesting to see how they talk about that over the next three, four quarters. about theinterested recent announcement they made of cookies on chrome where they will be phasing out third-party cookies over the next two years. that has huge implications in the ecosystem and huge implications for google as well. i think there will be a lot of

looking from regulators into anticompetitive behavior depending on how google freezes it and positions it in the marketplace. taylor: want to bring you some breaking news. just to recap some of the headlines. province reporting now 2345 new coronavirus cases. toll hasonavirus death risen to 435. we will continue to bring you more news as we get it. in the meantime, coming up, we will be counting down to the caucus. -- democratic residential presidential hopefuls make their final pitches. this is bloomberg. ♪

monday brings the first vote counts in the u.s. presidential primaries at the iowa caucuses get underway. bloombergquint take broke down out the process works. >> the iowa caucuses are the first presidential contests on the calendar. they are much different than a dumb -- then a regular primary. democrats offer them like this. caucuses will take place in all of the precinct plus 99 satellite locations. caucus-goers will select their choice of president by splitting into groups. a candidate needs 50% of the room to remain violent -- 15% of the room to remain viable. otherwise, their supporters can choose another candidate. from there, the second count is

taken and they calculate how many state delegate equivalents each candidate has won. for the first time, the iowa democratic party will report the results from all rounds of voting but the key numbers are the state delegates equivalents. taylor: we will bring you special coverage at 10:00 p.m. eastern live from des moines. in our next hour of coverage, we will speak with donald trump, jr.. a quick check of the business flash headlines. microsoft search putting cash in the ceos pockets. thanindfall worth more $150 million. microsoft's market value topped a trillion dollars last year with views that it is the safer bet of other large tech terms --

large tech firms. and, coming up, we will bring you the latest on the coronavirus and how businesses are responding to the outbreak. this is bloomberg. ♪

>> welcome to bloomberg markets. now of firstheck word news. >> we are told officials in china are hoping the u.s. will agree to flexibility to the phase one as they struggle with the coronavirus. they are conference consultation and an unforeseeable event. more than 425 people have died from the virus with total confirmed surpassing 17,000. hong kong closing more

checkpoints to contain the spread of the virus it will shut point of entry tuesday at midnight. chinaief executive says has stopped issuing visas to hong kong. it will leave three border crossings open. the virus is having an increasing economic effect abroad. stores in japan slumped over the lunar new year, indicating the retail sector is being hit. fellal operators say sales double digits compared to last year over the holiday season. chinese tourists up one third of arrivals. a bribery investigation triggeredairbus has the stepping down of the ceo along with the chairman while the malaysian government probes they accepted prides -- bribes.

they reach a $4 billion settlement with prosecutors surrounding claims it tried to illegally swayed decision-makers. global news 24 hours a day, online and at quicktake on twitter, powered by more than 2700 journalists and analysts in over 120 countries. i am karina mitchell. this is bloomberg. ♪ paul: chinese markets had one of the most brutal days when trade resumed.ng good morning. im going to look at the brighter side and more optimistic side of the coin. a massive adjustment. shareswas enough to take back in line with dislocation that they had. that is one thing that is done

valuations overnight back to levels last seen 12 months ago. year'sapest levels in a time. either you don't normally get a deal like that and perhaps if you missed the rally now is the time to book. taylor: with the bond yields down to the lowest since 2016, how are they rethinking growth expectations. -- expectations? david: that is an interesting question. in about a month's time, the top brass are supposed together in beijing for meetings where they essentially announce with their

growth target is for the year. toording to sources we spoke , they think it needs to be visited because of the unexpected events. the other thing i want to mention is we just signed a phase one trade deal. if you look within the 90 plus pages of the trade deal and there is that because i want to read, in the event of a natural disaster or other event, you could get the two nations consulting. some of the sources told us that china also may be looking to ask the u.s. for some more flexibility in terms of what the commitments are. it is unclear whether they formally lodged that request. haven't received anything from the chinese side yet.

thank you so much for joining us. as the coronavirus death toll rises pass for 25, total confirmed cases surpassing 19,000. apple closes stores and corporate offices in china. ninth of thisthe month. they have a heavy chinese footprint. mac covers bloomberg for apple. how serious could this get? serious.s is extremely there was an escalation over the weekend. initially they didn't sing the thing but then they commented during results and tim cook said they were shutting one store and limiting traveling to critical. now all of the china operations coming to a halt.

you have workers working from home after the lunar holiday that ended before the expansion. cut off forvel apple employees to china. you have offices closed and 42 stores in mainland china. this alone could cost them a couple billion dollars. for the bottom line, it is very serious. : how about the supply chain ? can they handle a prolonged disruption? mark: the supply chain is diversified at this point. they dual source components not only in terms of who provides them but geographically. so if the entire region goes down, they could have a backup supply but that takes time. a taxed going to have first half of calendar 2020, new

ipads, a cheaper iphone, caesarea is that some are calling -- test series that some are calling -- assesso ries. they typically launch the blockbuster releases in the second half of the year. this is not coming at a great time for apple. apple wasn't planning to ramp up mass production of those products until the end of this month. if this will calm down by the end of february, they should be ok with a couple weeks delay likely to be the worst case scenario for the company. taylor: analysts are saying they are hoping purchases in services revenue could offset any klein we see in the hardware. -- any decline in the hardware. is that realistic? mark: it is true that this will somewhat be offset, but i don't

see the correlation between the coronavirus and the hardware sales and services. i think they are two separate issues. and the services uptick was going to happen anyway. people aren't going to buy more services because there is less hardware available because of the coronavirus because there will be delays. apple fell butof analyst from deutsche bank and others trying to defend the stock in saying that we know the shares are slipping, but the coronavirus will have limited impact. do you have a dollar estimate to the hit of the bottom line, given that they are trying to temper some of the hit at this point? mark: some estimates i saw were a few billion dollars. then that is interesting is the guidance range that apple gave came right before the escalation . it is going to be interesting to

see if apple will head that 62.5 number. we will keep an eye on that if they have to readjust the forecast because of the virus. it is very interesting because the range was given before they shuttled operations and at a point where they estimated they could get on track by february 3 or fourth. now we are talking february 9. we will be keeping an eye out for that. paul: thank you so much for joining us. sure to keep up to date on the developing coronavirus by going to the bloomberg terminal. you can see latest global figures from the cdc and the bloomberg news room and how specific companies may be exposed. ahead, or from alphabet earnings. they report cloud and youtube result for the first time. we will bring you that. this is bloomberg. ♪

taylor: shares of alphabet falling in after hours training. it had jumped 16% in three months hitting a record. that set a high bar for monday's results. revenue from the key holiday quarter missed estimates. i want to bring in the coparent. -- i want to bring in nicole paren. a lot of people were excited to get cloud and youtube numbers. they thought it would represent higher stock. it does not seem to be happening. what is going on? nicole: i was one of the analysts that was excited to see the breakouts, especially youtube we have long been curious about. depending on what we expected, looking at the nine youtube which is the core search is in is, it came in softer than we

expected for q4, after it outperformed expectations in q3. they were on target for the air but had a softer holiday season for search and some were expecting. it a lot smaller than the thought? we have been breaking up estimates of youtube ad revenues for several years despite limited disclosures and we were conservative, about $1 billion under for 2019 in terms of revenues. using -- we seeing are seeing capex easing. is spending an issue for alphabet? nicole: it is a bit of an issue, but they have so many lines of business with potential profitability into the future that it is hard to me to speak to much for that side. i look at the advertising business.

outside of the business that is mature is performing strongly. that core nine youtube ad side was up 15% or 16% last year. that is pretty robust growth. paul: ourexpressing concern ovee express that cookies in chrome getting phased out. do you share that concern? nicole: it is a concern across the digital advertising and media industry. google has given itself a good amount of time. this want to be in effect for two years, to figure out how they are going to work on alternate systems. they have a footprint to be the one to determine potentially a new standard post third-party cookies. taylor: we are in the middle of the analysts call. they are saying cloud sale backlog is worth $11.4 billion, at a distant third place, is

google doing enough in the car business? nicole: they are doing a lot and they are in third place but they have the resources to spend a lot to gain a lot of potential new business. it doesn't surprise me they are focused on that potential new revenue down the line. revenue has gone up fast in the past three years based on what they reported. it seems that has potential. outor: the cfo is coming and saying hardware revenue declined during the quarter. do you like the shift from hardware to cloud, hardware to services or does the hardware revenue decline worry you? nicole: it is not worrying me and we do not think hardware sales are important to google's business. andcore focus unadvertised other services has high profitability potential. we are not worried there. seen google shares

or alphabet shares easing after hours, but if you look at this as a slap, would you consider it a buying opportunity, because the ceo market for digital ads is very big. is there an upside for of the bet? nicole: i think there is a ton of upside for alphabet. the core search business is growing robustly in double digits, despite having been around for decades. they experience significant competition from amazon in the past couple years on that side. amazon has doubled the search add size of their business. it is not taking that share from google but from other sites and the long tail. it seems like there is a lot of upside left. with we were discussing facebook issues around regulatory concerns. we have a story about google potentially forcing advertising -- advertisers to use their own

tools. d.c. antitrust problems on the horizon? nicole: we know the state ag's investigating google for antitrust violations are specifically interested in their position in the ad business and what i would call the display ad. google has a lot of control because of the assets it holds, including youtube and the search business but far beyond that. it does have the ability to convince advertisers to adopt new standards and initiatives. we have seen that in the past. regulators are watching and they may be interested in that. pelor: thank you to nicole rrin. to launch theled second headquarters in new york city. we will look at specifically what happened. this is bloomberg. ♪

taylor: now to a bloomberg exclusive. we were first to report details surrounding the fallout of amazon's plan second headquarters. we learned why jeff bezos got billions of dollars for government incentive for the project and how it left the company exposed to accusations of corporate greed. let's go over to our reporter who has been covering amazon. jeff bezos take a line out of the playbook of tesla ceo elon musk? >> that is what we are hearing in the run-up to the hq to process was that jeff bezos frequently mentioned elon musk's accomplishments and the size of the incentive he was able to get for his factory which he accomplished by pitting five states against one another. what is the fallout of

this for jeff bezos? think we have already seen it so this was reconstructing a fallout. there is damage there. there are a lot of accusations of corporate greed and don't you have enough, that sort of thing, which led to -- contribute it to the downfall in new york, some of these missteps when they got overzealous and try to secure a big payday from taxpayers. islor: spencer, how much it the relationship with government officials that may elon musk was able to massage than jeff bezos? spencer: that is a good question . people you talk to go back and look at the missteps. a big one was how broad the search was. they invited the entire continent to pitch this project, whereas elon musk edit five states.

it started with a smaller list of prospective sites and in all likelihood, there were only a handful that were possible anyway. had they done that, they could have saved themselves time and potentially forged better relationships with the smaller list of places, rather than 238 communities that were interested in hq two. curiousspencer, i am with this being a smaller startup versus amazons image which is big tech coming in and taking over and putting mainstream shops out of business. does that reputation carry weight when you investigated the story? spencer: less of that and more of just the process. two, teslaare the was bringing manufacturing jobs, highly coveted, and amazon was bringing corporate jobs, also

highly coveted. it was a process. when we talk to some of the new york officials who fight in this project and where it escalated was they felt shut out and they had no voice in it. that was a big misstep. amazon prioritized maintaining secrecy until the big reveal. some city council members felt blindsided. when they learned the deal had been negotiated to exclude them from overseeing the project or influencing the project, they decided to stop it. taylor: you have been covering amazon for decades. has amazon learned its lesson? has he learned his lessons from what happened with hq to on how he deals with local regulators and deals with the image going forward? spencer: i don't know. time will tell. it has to be a humbling lesson for amazon. the thing we learned in hindsight was there was an internal arrogance.

they said, the u.s. and canada, send us proposals and they got overwhelmed with the volume of proposals and that fueled internal arrogance and made them lazy when it came to actually executing an agreement when it was time. they took for granted and thought anybody would feel lucky to have this project, and so there was no real work for them to do in terms of firming up the relationship. that is a big lesson for them is that they can't take good government relationships for granted, regardless of how much they are investing. they still need to try to win people over on the ground. -- thank yous for to our own spencer soper. an over driver carried a person with coronavirus. a uber driver carried a person with coronavirus. story now what do we

know with the suspended accounts? >> the mexican health ministry sent out a notice indicating that this passenger was infected the virus, and that this individual could have come into contact with two uber drivers. as a result of that, uber took the result of suspending the user accounts of 240 users there in mexico to try to further maintain and isolate what is a very deadly and troubling virus. so that is what we know. has given no updates since we reported the story. there have been no other plans to suspend other accounts as there is no other indication from health authorities in mexico or any of the other countries that this has spread.

want to seek clarification on one point. the story says the driver picked up 70 from los angeles. does this infer they were a los angeles native or was that one of the longest uber rights in history? lizette: that is a good question. that was not shared with us. as an addendum, we reached out to lyft before coming on air and lyft, which is the second largest ride-hailing company in not had, said they have to do anything along these lines because they only operate in the u.s. and canada. they are monitoring the situation closely, but have not had to what is uber saying on how they are working with mexico's ministry to contain the spread, as we all try to work

with government officials on who is on lockdown. lizette: constant communication and in contact with health officials there. they are following the lead with u.s. authorities as more information becomes available. taylor: thank you for joining us . keep up-to-date on the byeloping coronavirus story looking at the latest global figures from the cdc and bloomberg news room to how specific companies may be exposed. earlier this hour, we were informed the coronavirus death toll has risen to east -- to at least 400. plenty more in the next hour, including the interview with the executive vice president of the trump administration, donald trump, jr., live from iowa. this is bloomberg. ♪ amazon prime video is on xfinity x1.

so when you say words like, "show me best of prime video" into this, you'll see awesome stuff like this. discover prime originals like, the emmy award winning the marvelous mrs. maisel, tom clancy's jack ryan, and the man in the high castle. all in the same place as your live tv. it's all included with your amazon prime membership. that's how xfinity makes tv... simple. easy. awesome. ♪ i'm feeing good right now [ fast-paced drumming ]

paul: welcome to bloomberg markets asia. i am paul allen in sydney. taylor: and i am taylor riggs in san francisco. ♪ taylor: our top stories we are following this hour, china struggles to contain the coronavirus as deaths rise and infection spreads. thousands of flights to china are set to be canceled this week. beijing may ask for a trade deal flexibility is the outbreak worsens. the phase i accord allows for natural disasters or

unforeseeable events. hong kong is closing more border crossings in the bid to restrict the virus. the airports remain open. let's get you some breaking news on the bloomberg terminal. south korean cpi numbers for the month of january. quite an impressive beat by coming in at .6%. an annual figure of 1.5%. higher energy costs likely to be the factor behind this inflation. also supporting inflation in south korea. with the impact of the coronavirus, there will be? 's of or whether that can persist into february. core inflation was mentioned as well. by .9%. beat higher overall, headline inflation 1.5%

year on year below the bank of korea's 2% target range. australia just beginning trading now. staggered open. it is looking kind of slant at the moment, just off by a few points. new zealand pretty flat as well. nikkei futures have slipped into negative territory, now off by .3%. taylor: in the meantime, let's get a check on the first word news with karana mitchell. faces itserling biggest slump in a few weeks over fears that talk on a deal will be difficult. the eu says a highly ambitious trade deal is on offer, but only if the u.k. agrees to its role. ina could lower growth targets for this year as part of a review of how plans may be

affected by the coronavirus outbreak. the economic goals are typically announced at the annual legislative session in march. the expectation has been for growth of about 6%, down slightly from 2019. sources tell us the government is debating a range of measures to support the economy. the coronavirus is heading hong kong's economy after an already tumultuous 2019 dominated by protest unrest. an annual contraction for the first time in a decade with a slump of 2.1%. a further shrinkage left the economy in a continued recession, almost 3% smaller than in the last few months of 2019. the virus weighs on january results. the bank now sees revenue down 8% on the year having previously forecasted a drop of 2%. fall 31%cts revenue to in the first half of this year before rebounding by half of that amount in the next six

months. citi remains confident in overall macau growth. i'm karina mitchell. this is bloomberg. taylor: we want to stick on some of that news. at the current -- coronavirus in china is now at least 425. beijing is said to be seeking flexibility in its trade pledges to the u.s.. for the very latest, let's go to selina wang in beijing. what flexibility is china looking for? want someey flexibility when it comes to the purchase commitment. remember, in the first year of the trade deal, china committed to buying more than $76 billion of american goods, beyond what it bought in 2016. our sources say they are seeking

some flexibility on that. at this moment, u.s. officials say they have not received any request in china from china. if you look at the impacts on trade and demand, sources say that state owned liquefied natural gas importers are declaring themselves unable to fulfill some obligations in terms of their cargo deliveries. sources also say there are some logistical constraints at some chinese ports due to the virus outbreaks that is holding up deliveries of agricultural goods even though chinese authorities say they do have enough food disruptionsemand, here to highlight vulnerability for the economy. in addition to that, the coronavirus outbreak really brings u.s.-china trade tensions back into focus after that years long bitter dispute between the two countries with china saying the u.s. has an appropriately overreacted to the virus outbreak without providing any substantial help, also pointing

out that the u.s. was the first to evacuate personnel from the consulate in wuhan. the u.s. has said it offered top public health experts to help china, but they have not received any help from beijing. paul: how about on the domestic front? what is the chinese government doing to shore up the economy. china is nowes say evaluating whether to soft and -- soften the economic growth targets for 2020 even before the outbreak, china's economy was slowing. this crackdown on debt and the trade war with united states. bloomberg economics is now forecasting that that first quarter gdp growth could drop to 4.5%. the government is now considering measures including increasing planned caps on budget deficits and selling more special government bonds. we have already seen china take several concrete steps to try to shore the economy as well as the

markets, even though we did see them drop. when the markets reopened, we did see china pump some 1.2 trillion yen into the banking system as well as lower borrowing costs. the pressure on china's consumption and production are already extremely evident. i want to point out a couple of statistics. two thirds of the chinese economy still remain close as several provinces have continued to further extend the lunar new year holiday. in addition to that, the number of trips made in china over the lunar new year period plunged 73%. that is as more people stayed at home for fears of the further spreading virus. chinese citizens have to deal with restrictions. taylor: selina wang in beijing, thank you for joining. be sure to keep up-to-date on this developing coronavirus story, spit it out taylor.

you will see the loatest numbers as well as how specific companies may be exposed. theor the potential damage, coronavirus can bring about economically, words were not minced on bloomberg earlier today. >> china is a quarter of the world's manufacturing sector. it is part integrated with all of these supply chains. it can be highly disruptive. we don't know that yet, but it certainly looks like it could be. one of the things to worry about is if it is a significant negative shock. and, we don't know if this is the one, we don't have a whole lot of cushion. the fed doesn't have much room to cut interest rates. the ecb, bank of japan has zero room to cut interest rate. taylor: let's check in now on how the market reverberations are reacting with victoria fernandez from houston, chief market strategist.

in your world of market strategy, what changed for you in these last few weeks? victoria: we didn't do a lot of changes to our strategy, per se. i think what we have to look at is the uncertainties we thought were diminished because of the phase i trade deal that we had with china, a lot of those uncertainties have now come back in the form of the coronavirus. i know many people were waiting for something to give the market an excuse to give back. the virus is doing that. because there is so much unknown about it and we are in a very different situation then we have been before. a lot of people want to compare it to sars back in 2003. if you look at that time period versus now, we are in a very different economic environment, you have china with a much larger role in global gdp than it did back then. gdp. about 1/5 of global the resolutions to the virus are very different with all of the factory shutdowns, airlines canceling flights, people

staying home. all of these uncertainties are really going to infect investors behavior, affect the consumer and consumption that we see along with business investment. it is the uncertainty that is going to be pulling the market back. taylor: markets reacted back in the sars era in 2003 perhaps differently than they are now because we are more connected, as you say. that downside till risk it could be bigger this time around given how much more connected we are. victoria: it really could be. if we look domestically, the numbers that we are seeing are -point. 5% gdp due to the coronavirus we are listening to all of the earnings calls coming out. you have a lot of companies that are saying there is going to be some downside but they just don't know how much. it is, that uncertainty that is there but we have to look at the level of shutdown that we are seeing in china and how that is going to affect everyone. selina are seeing now,

was talking about 85% of the factory shut down, that is 80% of china's gdp and 90% of their exports. people are going to be affected, their partners are going to be affected. some of the main ones are going to be cambodia, hong kong and thailand. be affect with supply chains to the u.s., but probably not as much as what we are going to see to some of their near partners. paul: in terms of the supply chain impact, i know you recently bought apple, which prior to the earnings announcement would have looked present, but since the virus, we are seeing just how exposed apple is to the supply and demand issue. what is the strategy there? victoria: we are holding on at this point. us. was a recent buy for we heard tim cook come out and

talk about how they are setting their stores. they are looking for alternative places for their supply chain. they do have other avenues available to them that they are trying to bring up to speed. we are seeing that, but i also think we have to take a longer term view. we know that the virus, at some point will come under control and things will start to get back to normal. met. we also think a longer-term perspective is going to be positive. i think this is actually a way, if you look for a pullback, you might find an entry point where as before, the stock continue to write higher and you were waiting for that entry. paul: you see it being contained within the quarter, but i guess the question is, how much value is going to be torched in the interim? victoria: we don't know the answer to that. when we listen to starbucks calls.the earnings they didn't even want to give guidance for the first quarter

because they didn't know what the extent of this was going to be. i don't think we can say for certain what the cost is going to be or what the effect is going to be. i think we have to be aware that there are going to be growing uncertainties. this will last probably over the quarters.g a lot of people are actually saying it is similar to 2011 when we had the japanese earthquake and a lot of factories were shut down. it took a couple of quarters for things to come back, but eventually, it did. i think that is the longer-term outlook we have to take at this point in time to ride through some of the volatility and take that longer-term perspective. taylor: i want to fold over some of the china concerns we are getting. it was shocking to me, growth continue to outperform value. growth backe from into value? do think we really looking forward that that secular growth stories going to continue. if you look at all of the factors that we are playing into being tailwinds at the end of last year, that didn't change

overnight. a lot of those continue into the first quarter of this year. the consumer is still strong. we have actually see manufacturing come back. today was a really strong manufacturing number and it is getting closer to that market number. prior to, the two were further apart. services continues to do well. i think we have some strong tailwinds coming. we obviously have to watch the consumer and relation to the virus and how that is going to affect them, but they should remain somewhat steady and continue to be a foundation for this market going forward. if so, your secular growth story can continue. taylor: we are wrapping up earnings this week. earningsa big week for this was a big week for earnings. two consecutive quarters of decline in growth. earnings recession perhaps back in the picture given these global macro headwinds? victoria: i think there is some

concern for what next quarter's earnings are going to look like, but if we look at where we sat right now, like you said, we have had two really busy weeks of earnings. we have about 65% of the s&p market cap that is reporting so far. look back a month, even six weeks ago and we saw year-over-year eps growth. expectations were -2%. we have moved quite a bit higher from that just because we have haad some really strong earnings surprises. that number, that eps growth number is closer to being flat or even slightly positive. chart suisse has a great that they show where they track the transfer the fourth quarter over the last 10 years or so. if we follow that trend, we are actually going to get close to a 1% eps growth year-over-year if things continue along that pattern. i think there is the opportunity for things to do better. first quarter of next year will be affected by the coronavirus.

we have to be prepared for that, but i think we will be stronger for the fourth quarter than originally anticipated. taylor: victoria fernandez, thanks for joining us. just want to get you across some breaking news on the bloomberg terminal, some comments here from south korea. south korea vowing to take various steps to stabilize financial markets, also saying they will be all out if it is minimized the impact of the coronavirus on the economy. futures currently pointing a little higher. still to come, since the bushfires were not enough concern, the reserve bank's needs to factor in the coronavirus. our guest will be joining as with a preview of the central bank's policy meeting of 2020. taylor: we will be speaking to the executive vice president of the trump organization, donald trump, jr., live from iowa.

all this hour. this is bloomberg. ♪

kevin: i'm kevin cirilli for bloomberg television and radio. audiences.elcome our we are here with donald trump, jr., the senior advisor to the reelection campaign. donald: i guess they don't really give me a title, that way they can disassociate at any point in time. i am here and seeing you, i am having flashbacks to the last cycle where you played such a crucial role on the reelection campaign. how important is i went to the reelection campaign? donald: it's where it all starts. obviously, it is a dry run for the general. we want to show the people here that took a chance on us in 2016. it was a lot different than.

my father was making promises, like every other politician. most of those people probably got used to not expecting anyone to actually deliver on those promises. now, it's different. the big thing with being here is thinking the people who took a chance on us. kevin: usmca, a huge one of those policies. big here in iowa, michigan, pennsylvania. in terms of the economic message from that perspective, how important is trade policy on that front? donald: it has been huge. four years ago, you can't renegotiate nafta. every economist in the world, every democrat, frankly republican, there was no way you are going to be able to do anything about it. he did. he did that as the democrats are pushing the russia hoax. he signs an unprecedented deal with china. we will use economic tactics like our might, our credit to be able to force them to the table

and he gets another thing done as the democrats are pushing the articles of impeachment. that is the difference between the democrats, who are doing nothing, and trump, who is getting things done despite zero assistance andan unprecedented incoming. kevin: there was a democratic presidential candidate that voted against it saying he -- it was not donald: i don't know how you can run as a populist are not go for trade deals that are a huge leap forward, that are a huge -- in all fairness, bernie, for years ago was probably very in line with my father on trade. the difference is, the american people have seen my father deliver. bernie sanders has been in office 30 years and can't name a bill that he has actually done. talk is cheap.

action is a different story. we now have a track record of success. the populism thing, i get and that is why i probably never want to discount him, and that is probably why people like nancy pelosi are doing whatever they can to really screw bernie out of this thing. it's obvious, but as i said earlier today, the last time the democrats rigged a primary, it worked out perfectly for us. kevin: there are other candidates like joe biden, pete buttigieg who are running -- drawing a rhetorical contrast. donald: the soul of the country, joe biden can probably look a little deeper into his own background. the guy doesn't remember what state he is in 50% of the time. do yourselves a favor, look at joe biden 30 years ago. listen to a video, a recording, an interview and listen to him today. if you are telling me it is the same day and there hasn't been a major slip, you have something

wrong with you. it is so obvious, and then you can see the democrat machine doing whatever they can to push them. he has been running around iowa for three weeks with virtually unfettered competition because they have all been dealing with the impeachment hoax. they have been stuck in d.c. joe has had iowa to himself. if he doesn't win big tonight, i think it is very indicative of his campaign. i think he has to win big. kevin: not even second-place? donald:

that time, we didn't even know what a caucus was. kevin: you and i would like the first interview doing this. donald: we didn't understand the process and still came in second. he has had the state to himself for three weeks. kevin: we talked about populist, the rhetorical approach, also some folks represented themselves as outsiders, former new york city mayor michael bloomberg as well as andrew yang. they say they are businessmen. donald: and they are. i don't know what they have done to merit this. i think they want to get in the game -- i don't see them as real competition. i don't because they are like trump did it, they follow that lead. i think it is an ego play more than anything. asin: you see the democrats stealing some of the playbook. donald: i think they are just trying to copy trump a leftist strategy. you have a mainstream media that has decided to be the marketing wing of the left. that is fine. the reality is, the results speak for themselves. people see it. they see the results in their paychecks. all of these things trump has done, and they are not necessarily pure, conservative talking points.

prison reform wasn't a conservative checklist item, neither was attacking trade, but he did them because they are the right thing to do. he gets it. he has an unprecedented understanding of people. it is a little different than my wennberg -- mike bloomberg. if you say so, i guess i might be the right guy. you have to understand people, and donald trump as that. he wants to help people. are ant like, people inconvenience, you don't have to mention that. kevin: you mentioned prison reform. i was talking with jared kushner it just about how that was really a bipartisan -- donald: it was a bipartisan type of policy, but the reality was, no democrat brought it forward. it took donald trump to be the guy to get the wheels going. now, i see lots of democrats saying they put it on the desk -- no, donald trump time lobbying republicans -- again,

it wasn't necessarily up party platform point. they then got democrats on board, who put it on his desk for him to sign. i wish they would do the same thing for infrastructure. i wish they would try to tackle drug pricing the same way. i wish they would try to do anything, but they have spent the last three years doing whatever they can to resist donald trump, but donald trump has delivered for the american people and they get it. kevin: you know everyone in iowa, are you going to run for president next cycle? donald: i enjoy doing this. i'm not an overly emotional guy, but when you see a grown man and woman thank you with tears in their eyes because they see the difference, they are getting to live the american dream that they wanted for so long, that was our only net export. sendsly thing america out of this country is an export is the american dream. i can't help but be incredibly proud of that. is 2020.ocus

what happens after that, we will worry about it then. i'm never going to shut it down because i have experienced incredible things. 2020.y focus is i want to keep this going and further those things.i want a guy in charge who has actually gotten things done in government. no one has a better record. kevin: we are going to leave it there. back to you, taylor. taylor: thank you to our chief washington correspondent, kevin cirilli. a quick note that michael bloomberg is also seeking the democratic nomination for president. bloomberg is the founder and majority owner of bloomberg lp, the parent company of bloomberg news. don't miss our special coverage of the iowa caucus starting at 11:00 a.m. in hong kong,. that is 10:00 p.m. in new york. carrying donald

trump's estate of the union address followed by response. this is bloomberg. ♪

a prettyhis is exciting opportunity for investors. >> opportunities for investors. >> you can get into the market. >> moving assets from developed markets into asian markets. >> it's time to go shopping. >> we don't know quite how cheap they are. early, i think to make any big decisions to buy. >> there is just too much uncertainty at this point in time. >> it is not time to go back in time yet. >> it really depends on whether you think of the debt longer or

shorter view. >> it is very important to look at the fundamentals. >> some resolution. some of our guests reacting to the market selloff trying to return from the extended lunar new year break. let's stay on mainland stocks. look at the prospects for trading today. david joining us. a pretty nasty open yesterday. what are we expecting this time around? david: if they didn't have the 10% limit down, or the daily limit, you could argue that things might have actually been worse. to that point, you might actually get a followthrough and selling today. looking at the silver lining, it has opened up a lot of opportunities. you look at valuations in china, overnight, suddenly back to the lowest levels in about 10 months when you look at things like forward pe. a whole bunch of stocks on the

shanghai composite. i just had a look at wia be. guessing over 60% of the stocks of that group are actually now oversold. it is a dislocation of yesterday. it does open up opportunity, but buyer beware. paul: there is going to be an impact on the macro picture as well. we are hearing china is rethinking the growth outlook. david: this time next month, policymakers, beijing's top business political brass are scheduled to meet in beijing. we are not sure whether or not that will be affected by what is going on. typically, every march they gather around and make targets for the country. we understand with some of our bloomberg sources, officials may be rethinking some of those targets. that is not an easy task to go ahead and change that growth

target. it has to go through a whole list of approvals all the way to the top people in the communist party. that is what we know as far as that is concerned. the other thing i want to bring up in just talking about adjusting to the fluidity of the situation. we had a phase one trade deal recently. we also understand that china might be looking to use one of the clauses in that agreement to for somesk the u.s. flexibility when it comes to those commitments and purchase agreements. keep in mind, two thirds of the chinese economy remained shut. thet of those provinces are industrial heartland of china. you don't understand why the commodities -- demands of the commodities are suddenly being -- taylor: how are markets pricing in a drop in growth? i wouldhere is that,

also bring up that copper is at a five month low. it is at a 2016 low. great expectations when you look a five-year swaps in china actually fell last week into yesterday to the lowest level since 2016. the longer-term growth, the beyond this economic shot is starting to be adjusted to buy markets. whether or not we have overshot again, we -- then haven't seen this sort of economic shock in china in recent history, frankly. we don't understand why race markets are penciling in a lot more easing coming from chinese authorities. paul: bloomberg anger david in glace, thank you for -- anchor, david ingles joining us. declines of 3.1% on monday. it is the heavyweights financials and materials

weighing on the market. the other 10 year yield still hovering near that low. we will be watching that later on when the reserve bank of australia holds its first policy meeting of 2020. taylor: i want to get a check on the first word headlines with karina mitchell. karina: hong kong is closing more checkpoints with china. the government will shut points of entry from midnight tuesday. chief executive says china has already stopped issuing visas to hong kong. the measures will leave three border crossings open, shenzhen, the jew hybrids in the airport. the viruses having an increasing economic impact abroad. duty-free sales in japan slumped over new year. several leading operators say sales fell in the double digits compared to the holiday period last year as chinese visitors .tayed away

chinese tourist make up one third of arrivals on more than that in consumer spending. a bribery investigation involving airbus and airasia has triggered the follow the airline groups founder and ceo. tony fernandez is stepping down for two months along with the airline's chairman while the malaysian government accepted bribes. both men deny any wrongdoing. -- airbus reached a settlement. global news, 24 hours a day, on air and on quicktake by bloomberg, powered by more than 2700 journalists and analysts in over 120 countries. mitchell.a this is bloomberg. for that reporting fourth-quarter earnings and revenue from that key holiday quarter missed a holiday estimates suggesting the company's google advertising business is struggling to maintain growth in the face of rising competition. let's bring in mark bergen.

you just got off the earnings call. what are they saying about finally getting that increased disclosure transparency around youtube and the cloud that frankly analysts had been waiting for? was sayingan sachs it was the best call ever. these are monumental disclosures for the company, the fact that they are opening up this new transparency into the cloud business. we saw a lot from the ceo about cloud business. 50% it grew over 50%. the cloud storage. you saw a little enthusiasm for youtube, but they talked a lot more about both the potential market that youtube has a digital advertising as well as new ways to make monetization, whether paid subscriptions or commerce because some of the youtube ad numbers fell below some of the estimates out there. taylor: and we got some comments

from the ceo on youtube's growth. take a listen. >> you may have seen a blog post today about our work to promote targeted content and remove misleading information for the upcoming 2020 elections. for example, we are applying our policies to reduce misleading information about voting locations or the senses passes. as i mentioned, we are pleased with youtube's growth in advertising and subscriptions. taylor: is youtube as big as we thought it was? mark: it depends on who we were. there were some estimates that had revenue estimates at $20 billion. the numbers they just disclosed were for advertising. they talked about a run rate for subscription around $3 billion. that was for 2019. earlier estimates had it much optimistic. some estimates that this was worth $300 billion. clearly, these numbers are not there. there is an impressive growth

rate. they talk a lot about how they have this big addressable market with this advertising. i think they still have something to figure out on both regulation and brand safety to make appetizers comfortable to continue to have that growth. paul: you mentioned the improved transparency around the youtube and cloud business. on the other hand, paid clicks, cost per click is missing from the report. is that a big deal? does anybody care about those metrics anymore? mark: they were sort of outdated. into theore visibility search business. in sum, they disclosed a search on everything else in their display advertising. there is a lot bigger sense that search is clearly profitable, roughly 70%-70 5% of their overall revenues there. i think with the numbers, they are going to keep looking more closely at, traffic acquisition

cost. going to continue to invest in cloud business and youtube, both of which are very expensive and margins aren't as heavy as on search. those are theca about a lot mor. thank you to bloomberg technology's. paul: mark bregman there. come. more to we are going to talk about how bushfires and maybe the coronavirus as well may influence the reserve bank of australia is the first policy meeting of 2020. julia joins us for that. this is bloomberg. ♪

taylor: this is bloomberg markets. i am taylor riggs in san francisco. sydney.am paul allen in

the bank of australia is going to have to balance the economic hit from the bushfires and coronavirus. prices.in house most forecast easing in february. let's bring in julia. for them to consider. on the other hand, the jobs numbers were quite good. what do they do? iba to holdpect the the cash rate today but keep the door open in the near-term. the region is that cpi in australia has been shorting the rba for 16 quarters. of course, we have employment reports that are better than expected. the employment rate is still way above rba estimates. they still plan to spare

capacity in the labor market. it is hard to see pressure holding up anytime soon. paul: do you have a sense that if the cash rate wasn't already , perhaps they would move today? 7 it is a good question. increasing downside risk to the late once torabba of see the deterioration and the dollar before acting. with 50 basis points of ammunition left, you want to be careful how to use them. taylor: we were talking about our own fed chairman here in the u.s., highlighting how the risks from the coronavirus are still too early to tell. over in australia with the rba, is it still too early to tell any sort of headwinds from the

coronavirus? course.of the arts trillion economy has been hit by the bushfire and then the outbreak of the coronavirus. it is really early stages to see the impact it could have on the economy. of course, they are going to have a retraining. we can argue that the sector that will be more impacted is tourism sector and education because we have a large inflow of chinese students coming to australia. what i think is an important factor is that these headwinds are coming out a point in time where the us trillion economy is already quite weak. it is not prepared to face the challenges coming from these additional headwinds. the balance of risk and growth outlook remains even more punitive outside. taylor: the rba was cutting rates last year to help support the consumer. how is the health of the consumer? guilia: the outlook for the

consumer remains quite uncertain. problem they have been having with rates is the tourism sector for the rba. when housing prices go up, consumers tend to be more confident about their finances. this hasn't happened the last few years despite 70 basis points. people have been cautious in spending their money. they have used up extra money to pay down debt. the rba will be hoping that this will change in 2020. i think the risk here is that it's confidence remains low. consumers remain still unwilling to spend money. paul: looking more long-term, although we expect the rba to have a dovish hold today, we have been talking over the past couple of days of trying with a potential growth handle of one third of australia's experts to go there, how much longer can

the rba realistically hold on and when does the conversation turned to qe? guilia: we expected to take out twice more this year. that would bring the cash rate to 25 basis points. we don't expect the rba to engage in qe because the rba has said they will do qe they will deviate from their monday, which means higher unemployment rate. at this stage, it is very hard the bushfirefect and coronavirus will have on this trillion economy. paul: how about the aussie dollar? that has surely got to buy the rba a bit of time. guilia: the rba -- aussie dollar is cheap on a number of metrics. it is in a sweet spot for the rba. the aussie dollar, because australia is a small open economy, it is an automatic stabilizer for the economy. when the economy is weak, the aussie dollar is weak and that

gives an extra boost to the economy. rba, we want it to be where it is now and will do whatever it takes to keep it there over the coming months. you know that the rba is well aware of how important is the australian dollar. andor: with the weakening the aussie dollar, what is where forecast for aussie dollar week, u.s. dollar strength? the aussieexpect dollar to remain and arrange over the coming months. from yen.coming the reason is that we are seeing that the rba will do whatever it takes to keep the aussie dollar week. if you think about a november, the rba introduced a model where for every 5% decline in the us trillion dollar, there was a 50% basis point increase in gdp. the rba knows how important it is. that was a way to tell the markets if there is a risk on a vent and the aussie dollar

strengthens from here, we are going to step in and eventually cut if we have to, but we want the aussie dollar to remain deep. taylor: i'm curious to get your perspective. i am in san francisco, often criticized for the expensive home prices. paul is over in sydney, also seen as a really expensive, lack of affordability. with sydney, melbourne leading the home prices, where are we in home price affordability and the strength that you have seen in that housing market? surea: i'm not entirely why melbourne is in the international city ranking. higher housing prices are one of the fx the rba will want to create with rate cuts. effect,of the wealth the fact that if housing prices go up, consumers are more willing to spend. issue, but what the rba wants, they want to make

consumers more confident about their finances. increasing housing prices is one of the ways they can achieve that. paul: one of the potential season,of the bushfire the worst in history in australia is perhaps this is going to force the government to do something, to spend some money, something the bank of us to you has been wanting to see for many years. how much is that going to help? guilia: we do not expect the government to deliver a big year. tax pending in this rba, the governor has been calling for debt for quite some time. thinking fiscal spending could be a big help and would advise the rba to take further steps into a conventional policy measure. paul: we haven't had a recession in australia for like a generation now. are we getting close? guilia: we don't forecast a recession and australia. the downside risk to the outlook

has increased because of the bushfires and coronavirus. from an economic perspective, they tend to have a temporary impact on the economy. we do not think we are going to have a recession or see a recession this year. paul: ubs micro strategist, julia, thank you for joining us. don't forget our interactive tv .on, tv you can watch us live and also catch up on past interviews as well as dive into any of the bloomberg functions we talk about.you can also become part of the conversation by sending us instant messages during our shows. this is for bloomberg subscribers only. check it out at tv . this is bloomberg. ♪

paul: we are just getting some breaking news. japan's health minister saying there was a quarantine in progress for the 3700 passengers on a cruise ship. that is a significant number of people. that ship quarantined in yokohama. we also have fresh numbers on the coronavirus for you from china. china saying the number of cases 20-438.0,000, 438 -- 3000s an additional cases with 400 fatalities. howard marks says the executive rise in distressed debt and china presents an

opportunity. oaktree is one of the largest distressed debt investors with $20 billion committed to credits from faltering companies. mark spoke to bloomberg in london. rd: we are feeling our way and getting used to a new market. there is a good amount -- not for them, but there was a good amount of distressed debt in china. more than a trickle. virus,ly, clearly, the if it goes on for any period of time, it will wreak havoc in the country and sectors of the economy. china is talking about having 4.5% growth in the first quarter, which is extremely low.

for a long time, they said we need 6% and we will get 6%. to say they will have 4.5%, that, for us would be the equivalent for us would be a very low number or negative number. keep the wheels turning over there. would have a substantial increase in distressed debt unless the bank injected liquidity offsets it. >> would you see that as my opportunity? howard: yes, i think so. >> you would be investing it if there was to be an increase in the amount of debts and available. u would be up in your waiting potentially in that area? howard: i would expect so, yes. paul: that was howard marks of oaktree capital there. speaking exclusively to bloombergs, guy johnson. let's get you a check of how we are trading on markets right now. australia has been trading for

just a shade under an hour. a quieter day after we saw the market here declined by 1.3%. trading the of flat right now. nikkei futures also looking flat. we have futures pointing higher by half of 1%. a bit of a reversal after the heavy selling we saw across the region yesterday. we did have a bit of an expected cpi numbers for south korea a short time ago. keep an ion all things australian as well because and time, we arers going to have the first rba policy decision of 2020, the expectation for a hold at .75%. paul.: thank you, i want to get a quick check on the. u.s. futures i really good day at least in the u.s. on monday. we had that 10 year yield holding and above that key 150 level. finally getting a little bit of a break here.

much more, next. this is bloomberg. ♪

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