>> welcome to bloomberg markets. >> coming up in the next hour, restricted travel, many largest cities remain on lockdown. plus, business interrupted. how it was delivery, affected by the coronavirus, we will hear from the president.

mored tesla stock become as steve eisman suggests? look at markets here, shrugging all of the fears that we continue to see without the coronavirus. the stock index currently leading the big game. sales and take a look at the 10 year, up five basis points. really for the first time, getting a little bit of that risk on in the market. we have got futures pointing

higher and nikkei futures higher as well. well andeen a rally as that is climbing back into positive territory. climbing off, getting pretty close to a record low. we got a large new testing lab and that is the center of the coronavirus outbreak. -- the death toll increases everyday and let's bring in salina for the latest. >> scenes of chaos and despair

emerging everyday. more than 60 million people are quarantined. impact has been felt and seen a staggering 97% of all deaths. potentially leads to underreporting and you do have efforts to alleviate that situation. day.0 samples a chinese researchers are applying hasxperimental drug that not been license or approved anywhere else in the world, but early signs after of being highly effective and

then they go into trial as early as next week. even though investors are bullish on this, it takes years to research and many believe it presents significant challenges and the world health organization has cautioned that there are no proven or effective therapies. disruption to major manufacturers and supply chains continue. be resuming production after the holiday, but will be imposing strict quarantined at its main manufacturing site and intohas led to cuts revenue. selina wang in beijing,

thanks very much for that. >> let's take a look at how the coronavirus is affecting market sentiment. david joins us from hong kong. session.one likely, the virus over? no. do we have intensively good idea of what the economic impact totals will look like? absolutely not. we have seen parts of this market retrace completely. the dollar-yen, i think we have a graphic, but certain parts of the market, things like a 10 year yield, chinese stocks we traced back shows you the

potential for markets to reposition. the other thing, certainly the question of when do things returned back to normal? farsituation in china is from normal. we don't have any idea when the economy will slowly come back online. there is a potential for at and the lastioning few days, we have seen policymakers come out with a willingness to do a little bit and certainly that is helping probably and still, knows question mark >> david there on the ground as we await the chinese

opening bell. -- or knows? >> david there on the ground as we await the chinese opening bell -- who knows? david on the ground as we await the chinese opening bell. [no audio] >> what we love to do is look at a couple quarters and say where is gdp headed, where his inflation headed and we are not seeing such a rosy picture in the u.s.. we loved today's like today because we can take the opposite stance. andgs are more bond like higher beta position. on a day like last friday at what markets declining, that is utilities, getting

so it has been a pretty active trading session. >> you talk about your estimate pre-virus, what are the estimates that the viruses hit? >> you have seen some companies come out and seen nike come out and say our supply chain is affected. you have to go back and say the companies don't know themselves, but they are already saying there's problems, but to say we will see some turnaround were all the supply chains come back to normal, i think that is a little bit aggressive. >> if we use earnings seasons, is the outlook really that negative? >> i think you have to look at things like utilities. if you look at -- grills, as of

yesterday, the eps has been down, so there are some have's and have-nots going on. rebounding,ad oil copper outperforming gold. view not to see this -- do you not see this as a rally? >> hope builds up into potential solutions, but we heard experts to caution whether it is china that can help some of these people, it would be effective across the board, so again, unless there is data, we don't like to trade on just hopes, we look at where the data is heading. we see a lot in the u.s., but spike,in europe, it is a so we prefer other countries where we don't have that issue. season should be a

gold mine for you. are you able to dig into earnings us for -- earnings report? >> that is a really good question. most of last year was multiple expansion, so we are saying let's get the high-quality companies that are non-consensus so -- we believe are undervalued because the market is positioned opposite. it is about seeing non-consensus. >> going through your research, you are looking at hoodies with bond like characteristics. broad-basedg utilities or having to go stock-based? >> we have rates in japan, i can give some of the names.

the one to japan, i cannot give out and they continue to improve and other areas as well as even in the u.s.. that is up, pretty good for boring security. the looky you prefer of europe to the u.s., how about emerging markets? favorable andtty once the fed got more dovish what the dollar decelerating, but with the coronavirus we are pushing it out a little bit, there will be selected markets that we see that were some green shoots earlier in the year. a lot of em spaced on china, we think there was a delay, but eventually it will be the place have and recently, you

south korea favorable as well as taiwan. turning southrt -- >> digit catch that? -- did you catch that? >> i did not. >> calls mike is having some problems. talk to me about how you are looking at u.s. versus the rest of the world. is that trade over? >> we are still heavily involved in the u.s., but there is going to be a turning point. ad has decelerated and profits have gone down .ecause costs have increased that is another late cycle phenomenon. , buthas been a huge winner then look towards other areas that might be left consensus.

we are not saying no u.s., but we are heading towards positioning greater outside the u.s. -- thank you. coming up, president trump is acquitted by the senate, bringing the impeachment trial to an end. we are live in washington. this is bloomberg. ♪

>> breaking news out of china, the latest on the coronavirus. fororonavirus deaths february 5. that takes the total death toll to 560.

over 2000 new cases, 17 deaths on february 5 and the total toll rising to at least 560. more details as we receive them. impeachmentump's trial has ended. the president says he will make us each -- a statement tomorrow on the white house tomorrow. goingtes in the senate very much as expected with perhaps one exception. mitt romney, tell us more. >> the white house was looking conference on this acquittal vote. they were hoping to even pick up some democrats. theyice president saying

expected the vote to the bipartisan. quite aney getting dramatic speech the cleaning why he wanted to vote to convict the power.nt of abusing his >> mitt romney as he did that, but it is not in the end make any difference and now we await the response from president trump. what are we expecting to hear? >> i think we are going to expect a triumphant victory lap posteda prior tweet, he some means suggesting he would remain president for decades to come despite the constitution's term limits. beenis a president who has on moved. he feels he did nothing wrong and this is quite a contrast to president bill clinton.

he expressed remorse, apologized to the country for how his actions deepened political divisions. i would not expect the president's message to go the same way. >> who are the independent voters here? do they view this as a waste of time or are they swayed to vote democrat? howt is hard to say independents are responding to impeachment, but there is a new gallup poll that showed his highest improvement -- approval record. whether that is attributed to the strong economy or the backlash against impeachment is not clear, but this battle now shifting to the election.

the president is going to plant his way, try to have -- saying .emocrats overreached >> it has been a big week for president trump with the i will by ises and a floundering was cymer credit party and then you have the acquittal on the impeachment side. how long does president trump -- present trump right detail wave? >> right now, the white house is feeling pretty good, but as you have seen in the past, they have had it -- good cycles and they have been short-lived. relate controversy will to go and stunned the white house momentum. i think what the white house is depending on in the -- is the

economy's performance. well,continues to perform his campaign believes he has a great shot at reelection. >> thank you to bloomberg's jordan fabian. coming up come up with a look at .he latest deals our conversation with neil vogel next. this is bloomberg. ♪

acquired two new digital publishers this week. for more on this, let's get over to bed -- ed. >> i am joined by the ceo of dot

vogel.eil i kind of get the thesis you are rolling up a lot of these is is is your word you go with the sustainability? they are very related. we are not news, not sports. greatnk it is a opportunity in that space and that you see organizations like .our own around sustainability we are very excited about this space. >> with cindy care company said that you guys going out to

require more content from your competitors, isn't that say we will buy more uses? >> we don't look at it that way. most of the things fairly small. it is hard to be a small publisher because we have tons of data and hundred 20 engineers that can really help grow the it is a bet that this is something that we can grow and this is an area that we want to be in. >> big media has failed to consistently. how will you guys do it differently? >> somehow a broken business that doesn't work to read i think there are a number of businesses that haven't had a lot of discipline. we do service contact which is cooking something, diagnose

something, so we have brands and health and brands in finance and food. when we see service brands, brands that help people, those are the brands that help people. we are not trying to launch something on tictoc, we are trying to make content that helps people. ,n the case of sustainability we think we are at the very beginning of what is a really growing interest among consumers, businesses, advertisers, it is really going mainstream. nothe brands himself are one that everyone is familiar with. say, the information they provide, how do you get them better known so you can grow that? >> we are very different than most publishers. we make the fastest sites we can

make on the internet. we try to have the best content and do significantly less advertising per page than other people do. you go to our site, there will never be a pre-roll or a pop-up, so when you have great content and have respectful content you can build brands and there are some really well-known brands. we have a consumer finance is this. nature, we are building brands based on this experience. >> i see a very successful company. whereerror -- in an era conglomerates are [inaudible] how are you different? is it is somesay

of the smartest people in the world. there is pattern recognition, very little they have not seen which is incredibly helpful. access to capital, we can buy things, compensate people and more poorly, we have been at this a long time. there is an incredible patience and patience to invest, get behind a model, they have been a patient and it has been effective. >> thank you so much for joining me. back to you. >> that is bloomberg said hammond. , business in southeast asia building a super apps and an exclusive interview next. as we go to break, qualcomm reporting earnings, predicting

sales will top earnings. more on that story later. this is bloomberg. ♪

>> welcome to bloomberg markets. allen in ill and -- sydney. let's check in on the first word news. not a who says there is proven treatment for the coronavirus that has killed more than 568 people. disinfection efforts are taking place at the absent of the outbreak in wuhan. state-run media said trials of a new drug may start later thursday. hong kong will start to quarantine all those on the mainland from midnight, saturday. , the senateump

cleared him of abuse of power and obstructing congress. that was widely expected given the republican control of the chamber. convict trump on the abuse of power charge. becoming the lone republican to break rank and vote with the democrats. one person has died and more than 150 people were injured slida passenger airplane off the runway in istanbul. fireear of the jet caught while the nose came to rest upside down. global news, 24 hours a day on on quick take by bloomberg. powered by more than 2700 journalists in more than 120

countries. this is bloomberg. >> travelers from mainland china will be quarantined. what is the latest? >> expect to hear more details on how these new measures will be enforced. particularly where people will stay during this quarantine. it will be a 14 day mandatory quarantine. anybody flying into the city from china, the new measures will be implemented on saturday to allow for travelers to adjust their plan. carrie lam once again rejected claims from the government asking to slow government metalworkers. they are calling for a .oreclosure that was not practical due to the close ties between hong kong and china. this is after we saw three new

cases in the city. amount to 21the infected cases. from there will be quarantined for two weeks. this is after we heard from a nationals. foreign businesses continue to get hit. cruiseare stranded on lines off of japan and hong kong. at least three on the world positive fortested coronavirus. they will be quarantined for the next two weeks. cathay pacific is asking that all 27,000 of its employees take voluntary unpaid leave. the situation is as dire as the global financial crisis back in 2009. modi is chiming in and saying

that this could affect the cities stock and credit profile. >> thank you for joining us. becoming a south asian super --, that is businessired uber's there in 2018. it raised $4.8 billion from fission fund and toyota. the president is here, thank you. >> thank you for having me. >> what economic impacts have you seen on your business from the coronavirus? >> we are very closely monitoring the situation. it is a situation that is evolving hour-by-hour.

unlike china and greater china that has seen the brunt of the outbreak, cathay has been untouched by the outbreak. having said that, safety is the primary concern to us. we are preparing contingency plans just in case we need to take action. we will be able to notify the government of interactions between drivers and passengers facemasks forough our population. -- of drivers. > you're trying become -- to become a superapp. what opportunities do you see in the market? >> thank you for the question. 2019 has been an amazing year for us. we are now the region's largest superapp. fromunched services

on-demand video to online health care services. today we are the largest ridesharing platform. was the firstices micro-serviceed products. 2019 was a very busy year for us. focused on are very two priorities, the first is continuing the profitable growth that we see in our businesses. secondly, we want to continue to broaden the portfolio of services we offer. as a business, we are already profitable. the key for us is to continue to push on profitability. that is in our b2b platform.

we think of our restaurant partners as not just a delivery provider, now we are providing payment solutions, procurement solutions. we are helping to provide financing, advertising to help you reach your customers in a more effective way. that is how we drive greater loyalty and greater in -- engagement. >> i just want to get details on your plans for financial services. you are applying for one of singapore's digital banking licenses. >> first of all, it is important to understand the context. the first seven years of our company was about solving the gap in transportation. when you speak to our customers, there is a very large gap in wealth management and the ability to retire. our customers work very hard.

our acquisition was all about how you reinvent wealth management, how you democratize the process of personal savings to the point where excess ability and affordability is no longer restricted to just of the very wealthy. it is available to the mass market. ingthink it is a large market opportunity. they hold over $2 trillion of investable assets. the challenge is that over 60% of that sits in cash accounts that loses value over time because of inflation. we see the wealth management opportunity as an opportunity to create new services and products that is better than just keeping cash. the digital thank opportunity is a very similar opportunity. when you talk to our customers, over 40% of them are unhappy

with their current banking partners. very expensive fees, hidden fees, you go to banks and wait very long times for service. we want to make banking as simple as ordering a ride. we are very proud to be partnered. we cover and touch nearly every consumer, every media enterprise in the nation. with our footprint, we think we can develop the lowest-cost platform. -- the questions always turn to when you are going to go public. is your hand being forced? under your agreement with uber, you have to go public by 2023 or exercise cash redemption options. how are you progressing down this path? >> we are not saying anything today about an ipo.

the key focus is on what is doing right for the business. -- doing what is right for the business. toare going to continue develop our b2b platform and portfolio. we are blessed to have very strong support around the world and a very healthy balance sheet. to keep onllow us our business for now. >> you talked about profitable growth a few times now. how much of that is pressure from softbank? ming: we have been on this path for over two years now. it is continuing the path we have been on for the last two years. we are glad that the overall market have recognized the need for profitability. us,hank you for joining ming.

up, tesla's incredible six-day rally has come to an end with shares tumbling more than 20%. details next. this is bloomberg. ♪

> 60% rally -- the incredible six-day 60% rally of tesla has stopped. they fell as much as 20%. that erased most of the gains from the past few days. what are we seeing here? profit-taking? are there more declines to come? >> there could be a number of factors today. could be worried about coronavirus. that is a really short-term

focus. we brought out our latest research on tesla. a respected value for the stock is 7000. that is because they are the leader in electric autonomous vehicles. that is the future of the market. traditional auto has struggled to produce ev's that are on par with tesla's cars. it is running away from the competition. is a veryhat impressive prediction and a long way from where we are now. does tesla really have that much of a head start? ships far fewer cars than traditional automakers. >> tesla is the leader and they are writing down the battery cost decline curve. we have done a lot of work to protect the future decline of batteries. corresponding

reduction in cost. gola's gross margins could to 20% today. the have not lost share in electric vehicle market. we think they are at least three years ahead of auto -- other automakers. that is the dollar pervades you get out of the car. they are the only automaker that is collecting data from their vehicles. besides the advantage, how do you get to a fair value of $7,000 in the next few years? how do you get that fair value number? we devised that probability matrix. this is all on our website, this matrix. we looked at the past year and we saw what tesla did in

shanghai. they built a factory in less than a year. tesla has shown that they can efficient capital manner. we look at capital efficiency, gross margins. we set probability is to each of those that helped us to arrive at that $7,000 mark. autonomous driving could be a huge opportunity for tesla. they could totally transform the business model if they pull it off. they will get software like margins. short told the big us that the stock is no longer trading on valuation. he had to walk away from his short position. what do you do with a stock like tesla when it no longer trades on valuation? tasha: tesla has been misinterpreted for a long time. on the autonomous driving front and only hearing of this story

being a more common theme of what people are talking about with tesla. you can't evaluate like a traditional automaker. this will make it a more consolidated market. a lot of automakers will go that of business. look at autonomous driving, that means software like multiples. that means that we will get software like margins out of that business. >> what are some of the risks for tesla? we are seeing the risks that can inposed to the supply chains china. what are we watching? >> we are assuming that autonomous driving does not happen at all. we think the stock could go to 1500 in the next five years. we do have some takes on that front. for our electric vehicle

forecast over, we think there ev's sold inillion the next five years. the rest of the auto market has lagged so far behind tesla. to gety not be able those production figures. the rest of automakers might not make that market assumption as large as we think it will be. three years ahead on autonomous data and autonomous hardware. if you look at the software -- vw, they are just getting into this for the first time. tesla sets the model. their lead is really incredible. we have been surprised that otter -- other automakers have not caught up. >> just a thought on your recent tweet about elon musk. do you believe that tesla might

be building a plant there? tasha: i think that is a possibility. we think that tesla is in a position where they should spend as much money as possible getting more vehicles on the road. for autonomous driving, that will be very good for collecting data for them. a writing --nch rideshare service before autonomous driving. scaredre uber, i'd be that tesla made this announcement. >> what is the ability of texas this -- tesla to make company. what is the rate that they can build those new factories? does that get shorter and shorter? >> they said that they learn from their experience moving from the u.s. to shanghai. if you look at per learn, i think china went up in record

time. berlin could take a little learned from the lessons they had scaling over the years. musk says this will be online in 2021. i think they could likely hit that target. we have been hearing management be more conservative than in the past. that is a really important perception of this company. aggressiveives very estimates but we have heard him be more measured on earnings calls. >> that is certainly a new development. ey.nk you, tasha keen qualcomm is coming out with first-quarter results. confident that 5g will expand quickly this year. we will have the numbers next. casper has announced the pricing of its ipo. the mattress company says it is pricing nearly 8.4 million

shares at $12 per share. that is on the low end of the range. we will keep you updated on the story. this is bloomberg.

♪ issued strongs forecasts that includes confidence in 5g networks. however, the ceo says the fiscal third quarter would be flat relative to the second quarter. shares are falling in after-hours trading. right off the earnings call, what is the key takeaway, mike? mike: it is how 5g will be beneficial to qualcomm's model. the revenue per msm or chipset going into these 5g phones.

stocks are a little of any aftermarket. the june quarter guidance was flat in march. if you look at the cadence of the smartphone market and the second-generation motive, that started shipping late, the indicated that they expect another function in their september quarter. that would be the first time they would be shipping back to apple. >> is this enough to take us out of what has been five straight years of negative sales growth? be --, you will start to start to see positive sales growth. of thes a large part sales growth. qualcomm needs to ship to them.

now that 5g is coming and apple moves back to qualcomm, that will help them return to growth. he should see very strong year-over-year -- we should see very strong year-over-year growth for qualcomm. very strongat a fiscal 21. as you go to the december quarter and yonder, you will see very strongly acceleration of qualcomm's year-over-year growth. >> the patents have been a number -- the subject of a number legal disputes. is there a safe way for qualcomm to continue to make money? ofe: they did a lot questioning on the call. as a key contributor to the standards for 5g and other

competitors combined, they are a big driver of wireless standards. they continue to get very good revenue on the qt l side. that was a strong quarter. the potential upside longer-term is one of the largest handsets in the world. huwe way is the huawe -- wei is the only one not paying. >> what about qualcomm's exposure in china due to the coronavirus? they gave up wired guidance. we saw that from apple and other suppliers to the smartphone market. important huge,

market for 5g. a lot of qualcomm's customers are oems. they give a wider than normal range because of the potential impact. more information on the demand side. they gave a somewhat more cautious guidance with the wider range because of this. that might have played into the june guidance just with not knowing the impact. canaccords mike of genuity. we will have numbers out of we will update you on those. -- out of south korea. we will update you on those. stay with us for that.

also, an update on coronavirus in china. this is bloomberg. ♪ sometimes your small screen is your big screen.

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>> welcome to bloomberg markets: asia. paul:paul: i am paul allen in sydney. -- paul: i am paul allen in sydney. >> i am taylor riggs in san francisco. taylor: the top stories we are following today, the coronavirus toll reaching 562. world health organization warns that there is no proven treatment. president trump is cleared on both charges of impeachment in the senate. the next judgment rests with the voters in november's election. tesla's winning streak it's the

brakes -- hits the brakes. shares tumble in china. paul: breaking out of south korea. a balance of payments current count for the month of december. there was a bit of a mess. we have the current count coming in at $4.3 billion. the expectation was closer to 6 billion. a good balance for december. the expectation was for more than 7 billion. it does look like it will be a risk on kind of day. to keep an eye on korean markets. those numbers are coming in weaker than expected. let's look at the markets that are open now. australia is just coming online.

higher by 2/10 of 1% in the early going. futures traded out of japan. now they are looking kind of flat. after we sawg flat another day of gains on the u.s. market. let's check on the first word news. facing --nt trump is faced impeachment day and won. the senate cleared him of abuse of power and obstructing congress. that was widely expected given the republican control of the chamber. mitt romney voted to convict poweron the abuse of charge. becoming the lone republican to break ranks and vote with the democrats. -- one personane died and 152 injured when a passenger plane skidded off of the runway in istanbul. it landed in wet weather. passengers scrambled. the rear of the jet caught fire

while the nose came to rest upside down. is uk's economy postelection proving more robust than thought. market pmi index jumped to a 16 month high ahead of expectations. sentiment also rose to its strongest in 2015. that was suggest growth of 2/10 of 1% this quarter. better than in late last year. central banks in south east asia are signaling strong action to counter any economic hit on the coronavirus. the bank of thailand cut its .enchmark rate policymakers indicated room for further -- policy easing. the philippines also indicated a willingness to ease, saying it is best to do so sooner rather than later. day,l news, 24 hours a

powered by quick take by bloomberg. powered by more than 2700 journalists and analysts in over 120 countries. this is bloomberg. ♪ taylor: the who is warning that there is not a proven treatment for the infection. this as the death toll climbs above 560. widespread disinfection efforts wuhan.ing place in selina wang has the very latest in beijing. how did beijing respond to 560 deaths? > you are seeing scenes of where the outbreak is concentrated. the virus impacts have been most severe there. new reports coming up from state media that two newborn babies have tested positive for the coronavirus in wuhan after their

mothers were infected. the health system has been overwhelmed by the virus. leading to significant under diagnosis in patients. you have seen efforts to alleviate that with chinese medical technology opening a lab in wuhan. that can track 10,000 samples a day to study coronavirus. drug isn't licensed or approved anywhere else in the world but it is being brushed to trial in china. -- rushed to trial in china. that could be a potential treatment. they will go into clinical trials in china in the next week. even though investors may be bullish on this, it takes years to research and develop something like this. viral diseases pose particular challenges. cautions against any

imminent breakthrough. they say there are no proven effective therapies yet. they are listing hundreds of manufacturers getting their supply chains get disrupted. this factory will be resuming the mainoduction at factory site after a 14 day quarantine. they are cutting their revenue for 2020. paul: that was selina wang in beijing. we are getting a little more news on the coronavirus out of south korea. it is confirming for more cases cases ofr more coronavirus. authorities are stepping up to spread the virus in hong kong. will be travelers quarantined until saturday. yvonne man joins us from hong kong. how much of an escalation is this measure? yvonne: we have seen people

fighting. medical workers are on strike to call for a complete closure of its borders with china. carrie lam did not go so far. saying those measures or drastic measures like that are just not practical given the close ties between hong kong and china. we expect to hear new measures and how they will be enforced later on today. particularly how they will quarantine people arriving from china. this 14 day quarantine that takes effect on saturday to allow people to adjust their travel plans. the rejected plans that government is acting to slow. cases bring the total to 21 in hong kong. taiwan is restricting travelers from hong kong. continuing to get stranger. we are hearing about more than seven thousand people stranded onto to's off of japan and hong

kong. at least 13 people tested positive for the coronavirus. and those two luxury liners are going to be quarantined for the next two week. kong,: yvonne man in hong thank you for joining. i want to continue to look at the impact the virus is having on the global economy. we are joined by blackstone .anager and investor, joe very interesting perspective that you have relative to one of our previous guests who seems to be a little bearish on the economy. walk us through some of the impacts you see from the coronavirus on u.s. and international markets. >> thank you for having me on the program. we do want to express our sin but the for everyone who has been affected by the coronavirus who hasthy for everyone

been affected by the coronavirus directly. it is hard to watch because of the humid toll it is taking. it is my doctor thing about the economic impact that the coronavirus could have on the chinese economy and global economy in general. critically important. week for chinese policymakers. the decision to reopen orchids when they did, the decision to cut rates and introduce stimulus into the economy gave global investors a degree of confidence that the chinese policymakers had taken at least the worst case scenario off the table. when you think about global health emergencies, one of the things you always look at from an economic perspective is they do tend to be pretty transient. they might last a couple of quarters or two. generally, the conditions going into a global health emergency

and up being more important than the crisis itself. in order to get that transient economic nature of things, policymakers have to be proactive. that is what we saw in china. we can see that all over the world. hopefully that can mitigate some of the worst economic impacts. companies will continue to struggle in the short term. things will likely work their way through. they will not generally drive global recessions. the markets have rebounded. is that because of what you mentioned? a sense that no matter how bad things will get, the central bank will step in and make things ok? >> not only do we have really strong policy action on the part

of the chinese, we saw rates all around the world moving lower. we have singapore and thailand taking preemptive steps. important to separate the macro from the micro. we will see supply chains backup. they are not necessarily -- we are not necessarily going to have to lattes. from a company perspective, we think there are companies that will struggle. when you think about the conditions going into a health it is up --ke this, ends up being a determination by chinese policymakers to open up their markets to further investment. over theeen that going

course of the past few years. i think that limits some of the worst case scenarios. at least from an economic perspective. >> there is a question about whether china will be able to meet the obligations of the phase one trade deal. maybe the u.s. will have to negotiate. there is potential that there is no phase 2. joe: it took two years for u.s. and chinese officials to agree on that. my best guess is that the u.s. will relax some of those milestones in order to give china the need -- time it needs to deal with the coronavirus. what we saw from the phase one trade deal itself was a little bit of relief. some of that worked into some of the chinese data. we have seen some of the european data improving.

the question of a phase two trade deal, that is something that i think could be a ways off. there are a lot of difficult issues that still need to be worked at. as we hit some of these milestones, generally speaking, what they do is relieve some of that tension and uncertainty. my best guess is the united states give china -- gives china the time it needs to work through the coronavirus. >> thank you so much for joining us. still to come, teslas screeching rally comes to a screeching halt. next, the president is acquitted. we are live from washington. this is bloomberg. ♪

this is bloomberg markets. i am taylor riggs in san francisco. paul: i am paul allen in sydney. donald trump's impeachment trial ended earlier wednesday with acquittal on both charges. where jordan fabian is standing by. no surprises here. very much among -- along party lines with one exception. >> mitt romney of utah. the former 2012 republican presidential nominee surprised many at the white house by voting to convict the president of abuse of power. the white house was hoping to have a bipartisan vote on acquittal but it turns out they put --ipartisan vote to to convict the president. --s surprised the president

cap the president of a talking point that he wanted to have. that the senate on a bipartisan basis acquitted him. he will have to make another argument about how this went down. taylor: has the impeachment process swayed independent voters? jordan: i think there are mixed messages on that. if you look at a gallup poll, it shows that the presidential approval rating is at the highest point it has been at 49%. independent voters have helped drive the president's numbers up. it is not clear if it is due to the strong economy or a backlash against impeachment. how this all plays out in the coming weeks with the president messaging is vote and the democratic candidates talking about it, it will have a lot to do with how independent voters view this saga. that the president waiting he will make some public comments about all of this in the very near future. what can we expect to hear?

a divinell hear victory lap from the president. he sent out a fundraising him after his supporters saying i did nothing wrong. this was a perfect call. i think you can expect this kind of message from him when he speaks to the american public tomorrow at the rose garden. he has not expressed any kind of remorse about what he did in his .ressure campaign he apologized to the american people for what he did and have his actions put them through that divisive impeachment process. taylor: when you look at the iowa caucus and the impeachment, a tough week for democrats. do -- what do to they need to do to get the winds back in their favor?

jordan: they want to focus on their message, an issue like health care where they have an advantage over president trump. if the not be surprised democratic candidates give some to the acquittal vote. taylor: that was bloomberg's jordan fabian. qualcomm sees a pickup in 5g demand, helping drive sales. we will bring you all of the details ahead. this is bloomberg. ♪

paul: this is bloomberg markets. i am paul allen in sydney. sanor: i am taylor riggs in francisco. qualcomm coming with a strong

sales forecast, beating estimates. that is due to its belief in a 5g network. ceos say the fiscal third quarter would be flat from the second quarter. the shares are fluctuating in after-hours trading. ian king is here. this looks mostly unchanged. the stock trying to figure out where it is. what was your take away from the call? ian: we had a nice report. everything was up, everything was positive. the cfo said we are not too sure about this. it is going to be flat. analystsok at what the were expecting, they wanted things to be linear. clearly, as soon as that expectation was compounded, the stock went down quite severely. inwe were speaking with mike the last hour. i asked him about that. the third quarter was flat compared to the second quarter. is this enough to reverse some

of the annual sales declined that we have seen? he seems to think it was enough. is there some concern about getting that type of growth? context,have the right they have had several years where we have not had any growth. they had several quarters without any growth. when is this going to finally pay off? when will we see the old qualcomm come back? anything that causes a little bit of concern about that is major. you're passing all of the buttons that people have been worried about for a while. are some new phones out there, expensive things. paul:paul: the equity price has had pretty good year -- a pretty good year. it is around 40%. when you consider that 5g will be a long-term growth driver for qualcomm, is this a time to get long as well? good point.e a very

tech companies in general have had a huge run-up in their stocks. have seen a lot of companies trading pretty high. something be saying that at least meets expectations or exceeds them. paul: i got that price wrong. of 77%. a pretty good climb for qualcomm. what about the near term? are there any supply chains good -- supply chain concerns in china? >> that is a good question. we asked them that. iny said they have factored the impact into their forecasting. it has been difficult to get a really close handle on it and predict precisely.

that cloud is still hanging over things a bit. consumers are set at home, people are going to work. they are not out and buying 5g phones. that has the potential to slow things down. this should be the next growth driver after 5g, ai. they talked about some of the areas outside of phones as being stronger. they talked a little bit about automotive. they see that as a future product. they are trying to get into laptop pcs. they talked around these topics. is 1.8 billion devices per year. to rival that, something really big has to happen and fast. qualcomm has also been battling a few legal battles if you will. settling the apple market which we think should be a tailwind.

what about some of the other battles with the ftc around their licensing practices? do we have any updates on when we could get a resolution? ian: the appeal is being taken. that is coming in the middle of this month. we will start to hear -- see the hearings there. qualcomm is going to the department and branches of government command and say we don't like what the fcc is doing here. we want this company to be successful. that looks positive. everything that is outstanding is a licensing agreement with huawei. thank you sog, much for joining us. let's get a quick check of the latest business flash headlines. is cutting its revenue after proposing strict quarantine rules that have gone on its iphone factory in china.

the factory is next to the virus hit region of hubei. this will start from inside of the province and they will be quarantined for a week. the 60% rally tesla has enjoyed has hit the brakes with shares tumbling more than 20% in new york. this erases most of the gains from the past two days. however, investors now seem concerned about the impact on car production in shanghai from the spreading coronavirus and -- retainwill remain output. >> everyone has a pain threshold. there are certain dynamic growth effects to it. you just have to walk away. >> coming up, will try be able to meet its trade commitments to the united states as it grapples

with coronavirus? will join us to discuss. that is up next. this is bloomberg. ♪

paul: an update on coronavirus numbers out of china. cases as ofl 3694 february 5. coronavirus death toll now 563.g to total number of cases in china, 28 thousand 18. -- 28,018. let's get a check on other headlines today with ritika gupta. raqqa: president trump has one impeachment day. the senate cleared him of abuse of power and obstructing congress. it was widely expected given the

republican control of the chamber. mitt romney voted to convict trump on the abuse of power charge, the lone republican to break ranks and vote with the democrats. forie madoff has asked early release from his 150 year prison sentence, claiming he has 18 months to live. the 81-year-old has served 10 ofrs after being convicted defrauding investors of more than $19 billion in the biggest ever ponzi scream. he says he suffers from terminal kidney failure and other ailments. canada can consider putting a price tag on the arrest of the quality ceo. she fought extradition from canada to the united states. the spat has seen arrests on both sides and billions of dollars in trade disrupted.

the credit wariness -- worthiness of companies in india is the worst in 80 years. there are signs things will only get worse. the quickening ratio of downgrades versus upgrades suggests that release from the credit crisis is hard to find. the credit scores of 188 companies were lowered in the nine months. make -- and in asia its weakest pace in four years, opening the doors for more rate cuts amid the follow from the coronavirus. gdp rose in line with the bloomberg survey. fourth quarter growth was the lowest since 2016. bank indonesia has cut rates four times since july but kept things on hold last month. global news, 24 hours a day, on air and on quicktake by bloomberg, powered by more than 2700 journalists and analysts in more than 120 countries.

i'm ritika gupta. this is bloomberg. paul: thanks. just to recap those latest headlines, china saying coronavirus death toll now at 553. 3694 additional coronavirus cases were reported on february 5. china saying the total number of cases is now 28,018. let's get your check on what is happening on the markets here. new zealand on holiday. the national day there. australia has been trading for about 30 minutes now. higher by 8/10 of 1%. the s&p 200 back to that 700 point barrier. nikkei futures have been looking flat today. s&p mini futures for the u.s. higher by just a couple points after we saw ready decent gains on u.s. equity market.

the rapidly spreading coronavirus is prompting some banks to flip their 2020 predictions just one month into the year. given ingles is in hong kong tracking the story. call was two months old. and then this happens. revisiting -- because this fire us came out of nowhere, the optimism surrounding you trying to price the tradeimism in deal, that has been put on the back burner for now. you look at the thai baht, they have flipped it. they go along dollar against the likes of the thai baht. a cut interest rates.

the chinese currency on the back of expectations that the pboc will come out with more stimulus to absorb, help the economy absorb the demand shock of the virus. that adds to the question, have markets bottomed out? maybe. we are a few days away. for some parts of the market, you can focus in on other things. is the virus story opera -- over? we are still getting 4000 new cases a day. it is certainly not over. from the economy perspective, it won't be for another six weeks. the initialerstand impact that this is having. said data out of china as well. let me shine a light on this. ile tohas asked to a -- ch delay copper shipments to china.

young was out with earnings. they are saying for business in china, they expect the virus to essentially come out with a more material impact on the company's earnings. paul: all right, david anglais's in hong kong. for watching that story for us. china needs to ramp up buying u.s. imports to the village side of the phase one trade deal. it's a commitment made more difficult with the coronavirus outbreak. joinstrade center founder us now from singapore. one suspects that the u.s. and china are going to have to talk some more about these phase one commitments. when would you expect those discussions to take place? deborah: at the moment, you could argue that the chinese government has their hands full. they are not interested in

talking about longer-term commitments at this moment. at a certain point, they will have to pick up the phone and call washington and say, just to confirm, we are not going to be meeting the targets we discussed . at least not meeting them in the near term. give us some time. we will see how this evolves. at the moment, we are unlikely to meet our commitments. paul: is there a recipe for political risk year? the elections are closing in. president trump has made some political mileage out of attacking china in the past. could you see a scenario where this disagreement about how ready china is to begin ramping up those imports? deborah: well, it was always going to be difficult for china -- impossible for them to meet these purchasing targets in the timeframe that was articulated. it was always going to be difficult. the virus makes it even more challenging.

there are two responses out of washington. one would be to say, you are not meeting the targets but we will give you some time. that solves the problem for both sides. china will not be able to meet the targets anyway even before the virus. alternatively, trump could say, you have not met the targets at all. anticipated.an we i come after you again with a new round of tariffs or other kinds of punitive measures. taylor: what targets do you think they won't meet? u.s., buying soybeans and supporting agricultural industry has been top of mind. are we talking about that or something else? deborah: i think it's a combination of things. 200 million dollars of which 40 million is supposed to be in agricultural purchases. even agricultural purchases are almost double anything the chinese have ever achieved in the past. aceare already looking at -- an extremely aspirational

target. now with this fire is, depending on how long it goes, it is harder to imagine that you will be able to double the amount of agricultural products, energy products, and other kinds of things at a time when demand is certainly falling off a cliff in the short run in china and may stay repressed for some time. taylor: not only do we look at the u.s. china trade relation, who else is at risk when you take a look at china and the surrounding asian countries and some of the other emerging markets that heavily rely on china? well, not that i wanted this, but we are about to have another demonstration of why trade matters. in particular, why the globally integrated trade situation that we had matters to every person. you are about to find disruptions in every kind of supply chain. not just coming out of china but

also people who are producing things to be fed into the chinese markets for domestic consumption or to be used as parts, components, services, whatever into chinese production to be sent globally. the could be significant. not just for china but all the countries that relate to china, most of the globe. taylor: what industries are most affected when you take a look at supply chain disruption? deborah: that is going to be difficult to say. it depends on how long this goes on, how many factories had to close. it's not just factories. remember, every day that people spend in their houses, they are not out shopping. they are not buying things, and restaurants. demand is going to soften across the board. many of those things have components, parts, services, suppliers who are outside of china. as the virus spreads to other

places, those other markets are slowing down. i'm sitting in singapore. the singapore market is likely to slow down even without worrying about supply chains. just people refusing to go out. the knock on implications could be very substantial. taylor: deborah elms in singapore, think you for joining us. be sure to keep up-to-date on the developing coronavirus story by running the function map by risk oh. you will see the lotus -- latest figures from the bloomberg newsroom as well as how specific companies are exposed. later this week, we will be joined by the philippine central bank governor on friday. don't miss that exclusive. this is bloomberg. ♪

taylor: this is bloomberg markets. i'm taylor reagan san francisco.

paul: i'm paul allen in sydney. general motors reported that beatrter profit estimates. the ceo spoke to was at the -- to us. >> 2019 was softer. it was in line with our guidance that we provided when we saw this happening in the overall markets. you see the industry maturing and going through its cycles. with that comes a price impact. we are experiencing that together with the industry. we are exposed to lower tier markets in china. are disproportionate impact reflects the fact that we have the brands that operate in the tier 3-5 cities. we are working on short-term business fixes as well as long-term localization.

we are greatly positioned with cadillac that is performing really well in china. >> that is china overall. we have to talk about the coronavirus. how is it affecting general motors? do you have manufacturing facilities in the area? >> we do have a presence in china. now is on our employees and making sure that they are ok. it is obviously a tough situation. thoughts are with everyone who is impacted. from a business standpoint, it has a demand impact in china as well as global supply chain implications that we are monitoring. too early to tell from a demand standpoint. we expect q1 to be weaker in china, the result of the situation. once we come out of it, we are expecting the operation to recover. the team is working around the clock to ensure we are mitigating what we can from the virus impact. >> we also have longer-term trends in your business.

electric vehicles. general motors has made a big investment in electric vehicles. give us a sense of what you are. can you catch up with tesla? >> we are all in on ev. we have a number of key vehicle launches coming. you saw the hummer av announcement recently. we have a number of strong products coming as well. we are taking this seriously. we have made meaningful investments in this area. we have our partnership with lg that was announced. we are excited about it. we are uniquely positioned. we have scale. we have multiple brands and segments where we are able to love -- leverage architecture and have very exciting products at a profitable position. in addition to the core business, we have an exciting growth opportunity. that positions us well. >> give us a sense of market share. road, --s down the

tesla has 18% of global tv markets. do you think you can take market share from them? can you maintain general motors and electric vehicles? >> the product will speak for themselves. we have strong products coming up. penetration takes time. people have different assumptions on how quickly that will go. we think this is a market of growth. we will take our rightful share of that. >> what is the biggest upside risk, downside risk for general motors? >> on the upside, the products that we have and the strength of them and how we are capitalizing on them, we are excited on that momentum. we will build every unit we can and maximize the opportunities. putting proof points on ev and av. we are excited about that. downside, it's a volatile business at the end of the day. everywhere we are facing challenges. the team does well.

we are very excited about our future. taylor: that was the gm cfo. speaking to bloomberg on the nyse trading floor. tesla's 60% rally has screeched to a halt. 21%, raising the gains from the past two days. ed ludlow has been following the story. take this chart i'm showing. massive run-up in the stock. what is going on this week? >> there are mixed theories. cutting twinkled on concerns about coronavirus in china. that is something that tesla addressed last week and earnings. they said they had halted production in shanghai. they expected a delay of 1.5 weeks on model three production. there would be a slight profit hit.

the other theory, this is the law of gravity. it's an incredible gain at the beginning of the year. we are firmly in overwrought territory. you have to knives come out and say, perhaps there was profit taking on technicals. the last thing is, investors not sure what was underpinning the rally in the first place. morgan stanley saying they weren't sure what the fundamental driver was. the two consecutive quarters of profit? model why? according to morgan stanley, that's big investors being more cautious. course, the big short author gave up, saying he had reached his pain threshold. with tesla at these levels, is now the time to short? ed: he was bullish on g.m. as well. there was big fighting talk from gm in terms of electrification. that is the big existential question.

how far ahead is tesla relative to global automakers? we spoke to ark investments earlier. something like three years of -- ahead of the rest of the field. i spoke to the ceo of lucid. he told me, it's more like five years. if you think about that, they have first move advantage. the word ev is synonymous with model three. you have to think about multiples. what are they basing the current valuation on? taylor: there has been speculation about who was buying. some retail investors getting from a -- fomo. our institutional investors finally taking a look seriously at this stock? ed: the first answer is, on the short interest side, 18%. that is near a five year low. it is not reflective that it is a short squeeze. i spoke to been callow last week. he made a point that there has

been a sentiment shift. tesla used to be a company that people wrote off. now he says you have big institutional growth investors who see it as a real company that can make money. that's the big thing. the other thing is, google has been brave this week. if you type should i, the first answer is, by tesla stocks. what role have retail investors played this week? taylor: no fomo with ed ludlow. thank you for joining us. paul: let's get you some breaking news. the carnival cruise, the diamond princess, and yokohama. japan thats now from the 10 people aboard the ship have tested positive for the coronavirus. the health ministry has quarantined and tested 200,000 passengers. over 1000 crew. one passenger tested positive on february 1.

we have word that 10 passengers on the ship have tested positive. chinese ambassador to the eu joins us at 11:00 p.m. tonight hong kong time. that's tomorrow morning 10:00 in new york. this is bloomberg. ♪

president asked grab in an exclusive interview how the company is handling the coronavirus outbreak. >> we are obviously closely monitoring the situation. it is a situation that is involving -- involving hour-by-hour. china and greater china which has seen the brunt of the outbreak, southeast asia has been largely untouched by the outbreak. having said that, safety is of

primary importance to us. we are working with the government and regulators to prepare contingency plans in the event that we need to take action. everything from contact tracing where we will be able to notify the government of interactions between drivers and passengers, to preparing enough facemasks for a population. to the i want to switch fundamentals of the business that were there. you are trying to become a super app going into insurance and lending. what opportunities do you see in that market? >> thank you for the question. 2019 has been an amazing year for us. a year of execution. we are now the region's largest super app. last year alone, we launched nine new services from on-demand video to online health care services. today, we are the largest ridesharing program and food delivery program. financial services, last year was a year of firsts.

we launched the first numberless credit card. we launched the first bid for a digital bank license in singapore with our partners. 2019 was a good year for us. 2020, we are very focused on two priorities. the first is continuing the profitable growth that we have seen in our core businesses. secondly, continuing to broaden out the portfolio of products that we offer in financial services. as a business, we are already matureble in our most verticals. we -- our platform, the way we think about our restaurant partners, is as an end to end partner. not just a delivery provider. we are providing payment solutions, procurement solutions. we are providing financing for them to grow their business. advertising to help you reach your customers.

that engagement model is how we drive greater loyalty and engagement on our platform. i want to get more detail on your plans and financial services. you are applying for one of singapore's digital banking licenses. what is next? applying for licenses in malaysia and indonesia as well? >> first of all, it's important to understand the context. the first seven years of our company was about solving a gap and transportation. when you speak to our customers, we realize that there is a large gap in wealth management and the ability to retire. our customers work very hard. many of our customers still struggle to save enough capital to have acceptable retirement. our acquisition of bento was all about, how do you reinvest -- reinvent the process of personal

savings to a point where accessibility and affordability is no longer restricted to just the very wealthy? it's available to the mass market. we think it's a very large market opportunity. ♪

>> asia's major markets just opened for trade. >> good evening. welcome to bloomberg markets: asia. ♪ the coronavirus death toll reaches 552. the world health organization warns they have no proven treatment yet. central banks ramp up their response.