>> 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. singapore and the philippines

signal action to come. shery: the infection is disrupting economies around the world. we will assess the impact on shipping hit by the global step -- slowdown. japan and south korea coming online. let's get straight to the market action. >> the risk rally does continue. have markets bottomed? topix bothand the have more than 1%. right now, the 50 day moving average for the topics is right around 7016. we have punched through to the upside. will we be able to hold above that level? that could have acted as resistance. the japanese yen, modestly higher versus the u.s. dollar. this comes after three straight days of losses for the yen. actually the worst three day streak for the yen against the u.s. dollar since july of 2018. also, very interesting. a selloff in bonds across the

globe. keep an eye there. let's take a look at korea. south korea comes online. the korea kospi moving higher. new zealand markets are closed today. as trillion stocks are higher as well. s&p 500 futures relatively flat. this comes after the s&p and nasdaq closed at record highs during the u.s. trading session. the s&p 500 on track for its best week since june. we got better than expected adp employment data. manufacturing data came in better than expected. let's take a look at the fx and rates picture. risk back in focus. the aussie dollar higher once again. this after a strong session yesterday in which the aussie dollar was the best-performing g10 currencies. you see the dollar higher against the yuan. weakening but still below that

seven level. the u.s. 10 year yield hanging near 165 where it ended the day yesterday. taking a look at the markets and set up. nation. the who is warning there is warning there's no proven treatment for the coronavirus. the death toll climbs above of thought -- 560. widespread containment efforts are taking place including a new quarantine requirement in hong kong. selina wang and yvonne man joins us now from beijing and hong kong. selena, i will start with you. we continue to watch for signs that this unprecedented lockdown tactic has worked. selena: chaos and despair emerging day look from the province that has taken the brunt of the outbreak. 67% of all patients. climbed pastl has

560. the number of cases, over 28,000. you have seen the health care system become overwhelmed by this fire us with potentially means there were a significant number of underreported, undiagnosed patients. you have efforts to try to alleviate this problem with chinese medical technology group dgi saying it has opened a lab that can test 10,000 samples a day to help diagnose the coronavirus. chinese researchers are applying drug.national it has not been licensed reproved any worlds in the world. it is being rushed into trials in china based on early signs of being effective. trialsgo into clinical as early as next week. you are seeing bullishness from investors here. it does take years to research and develop a novel medicine for any disease and viral illnesses it pose particular challenges. the who is tempering those

expectations, saying there should be no expectations of an imminent breakthrough. there have been no proven effective therapies yet. there to point out that are hundreds of major manufacturers that are having their supply chain disrupted. haidi: hong kong -- hong kong has its own plans to quarantine travelers from the mainland. what we know? restrictingrom just hubei province travelers that were traveling from their and being quarantined. now, wider mainland china. that is what we learned from the chief executive yesterday. medical workers have been

striking for the past five days. they want a complete shutdown of borders with china. carrie lam reiterating once again that the government is doing what they can despite the criticism, saying they are reacting to slow. she says a complete shutdown with china is not practical given the close ties between hong kong and china. this as we see more cases. three additional cases in the city, bringing the total amount to 21 infected cases. taiwan is the latest to restrict travelers from here and macau. --s is continuing to get hit business is continuing to get hit. united airlines, american airlines, now suspending flights to hong kong, citing weaker demand. cathay pacific asked 27,000 of its employees to go on voluntary unpaid leave for the next three weeks. the ceo saying the situation is as dire as the financial crisis.

when it comes to the cruise ships, we talking about more than 7000 people essentially stranded on to cruise ships off of japan and hong kong. the latest from local media in japan, the one cruise liner off of yokohama, the diamond princess, additional cases here this morning. at least 10 more from the 10 confirmed cases that tested positive for this coronavirus. liners are being quarantined for the next two weeks. shery: thank you to you both. be sure to keep up-to-date on this developing virus story by running the function the are u.s. go on your bloomberg. it's the latest global figures from the cdc, headlines from the bloomberg newsroom, and how specific companies may be exposed.

take a look at the korean won right now. strengthening against the u.s. dollar. this would be the most in about a month. it is paring back from gains against the u.s. dollar. this strength coming on the back of an fx selloff we saw in emerging markets in asia in the previous session. more concerns over the coronavirus. lookout fors on the any sort of intervention from the korean authorities. also, keeping in mind that the bank of korea may be more reluctant to act on this coronavirus outbreak than they did back in 2015. let's get more market analysis from bloomberg mliv strategist mark cranfield. we are seeing strength again across asian markets. this on the back of another record session in the u.s.. we are seeing the korean won jumping. when will investors pay closer attention to fundamentals? we could see more eco-data getting hurt because of this outbreak.

mark: indeed. the u.s. is a good example. yesterday, the american markets focused on some of the u.s. data , particularly the adp jobs report. it was a very strong one. people are of the view that the united states is a big enough economy, the size of the consumer base in the united states is so huge, it can see it through any damage which may come from the rest of the world. certainly, investors in the united states are betting on the fact that the u.s. is fairly isolated. street come on wall across a pretty markets and asia as well. asia is happy to go along with that. that is what you are seeing, the rebound today. there will come a time over the next couple months or we will start to see damaging data. it will probably take a little while before we actually see the real effects in the china data and the other asian countries

like singapore, malaysia, korea. we will start to see some to virgins in the data between the u.s. and asia. in be a harder decision for people. do they still want to be is bullish on asian markets in relation to u.s.? people aree being, happy to see that the u.s. economy is doing pretty well. moves we saw interesting in the thing dollar. that is typically seen as a regional haven. particularly at times like this. has the stance in terms of flexibility and perceived willingness to allow weakness in that fx band, has that affected this? mark: it has taken shine off of this thing dollar in the near term. the decline was one of the largest we have seen for a couple years. there was certainly a lot more interest to sell it against other asian currencies as well.

we saw decent moves against the indonesian rupiah as well. between now and the next meeting which will probably be in mid april for the singapore central bank, it would not be surprising if the singapore dollar underperforms against some of the regional peers and global peers as well. they have given traders leeway to keep it on the soft side by saying there is room for it to decline within its trading band. it is quite a wide trading band. depreciate into the weaker side of that band. that gives traders a lot of flexibility in how to play the currency. we saw yesterday a very active day in singapore. for singapore options to be as busy as they were. it was a big day.

a lot of activity centered now upon expiry's towards mid and late april when people are trying to guess where the thing dollar may be. certainly a lot more attention on singapore than usual. it will probably stay in focus for the next few weeks. shery: we have a surprise rate cut by the bank of thailand by 25 basis points. expecting this. has the coronavirus outbreak are ready started to change the outlook for central-bank easing across asia? yes, we will probably see more of similar situations. we heard a dovish tone from australia as well. they have not cut rates yet. they're watching it very closely. thailand made a move. it would not be surprising if we had dovish comments from other central bankers. probably further interest-rate cuts this year as well. they have room across asia to do more. the effects are going to be very

skewed towards countries which do a lot of business with china which accounts for most of asia. will be very surprising if we don't see pretty poor economic numbers in the first quarter this year, possibly into the second quarter as well. central banks will want to get ahead of that. they will want to let investors know that they are watching closely. they're ready to act. they have the to do something if needed. they will not stand back and let their economies fall apart just because there is deterioration because of this virus situation. they will want to be seen to be ahead of the game. if necessary, there could be very early rate cuts right across the region. haidi: thank you so much for that. our mliv strategist. follow all the trading action on our mliv blog on the bloomberg. you can get a market run down in just one click. there was commentary and analysis from our expert editors.

find out exactly what is affecting your investments at every get -- any given point. the us trillion prime minister is speaking, announcing his cabinet reshuffle. specifically mentioning the coronavirus, saying it will have a significant impact on the economy. whoeard from the treasurer refused to commit to whether in the upcoming budget he rejects that australia will say in a budget surplus. he has spoken about the coronavirus causing detriment to the australian economy, to the tune of $1 billion a month as a result of lost tourism and international student numbers, and the ongoing bushfires as well as drought impact on the us trillion economy. a bit of a reaction in the aussie dollar. it was one of the out performers in the g10 overnight. let's get you the first word news now with ritika gupta. ritika: president has faced impeachment day and one. the senate cleared him of abuse

of power and obstructing congress. in a result that wives -- was widely expected, former presidential candidate mitt romney voted to convict trump on the abuse of power charge, becoming the lone republican to break ranks and vote with the democrats. three people are now known to have died as 179 were injured as a passenger plane skidded off the run rate and is simple. the boeing 737 broke into three pieces as it landed in wet weather, forcing passengers to scramble to escape. we're rear of the jet caught fire while the nose came to rest upside down. at itsia expanded weakest pace in four years and 2019, opening the door for more rate cuts amid the fallout from the coronavirus. fourth-quarter growth was the slowest since late 2016.

bank indonesia has cut rates four times since july but kept things on hold last month. bernie madoff has asked for early release from his 150 year prison sentence, claiming he has 18 months to live. 81-year-old has served 10 years so far after being convicted of defrauding investors of more than $19 billion in the biggest ever ponzi scheme. terminale suffers from kidney failure and other ailments. 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 adecco group do. this is bloomberg. shery: still ahead, china's copper buyers are asking chilean miners to delay shipments. the outlook for commodities as the coronavirus continues to spread. southeast asian central bankers dealing with the outbreak.

we assess that ahead with human pericles. this is bloomberg. ♪

shery: mrs. bloomberg markets: asia. southeast asian central banks have signaled strong policy action to counter the coronavirus outbreak. there is further room for easing in the local dollar. we saw that in the downward price action. the philippines underscored its willingness to ease. thailand cut rates in a move that many economists didn't predict. our next guest didn't predict that move. euben paracuelles joins us now from singapore. is this the new frontline? we've been talking for a few weeks now as to whether policymakers are increasingly

looking to monetary policy in this part of the world to see what they can do to counter any kind of prolonged slowdown caused by the coronavirus, closing the borders, retail sentiment, etc. euben: good morning. i think this is a wave of central banks that are trying to counter and mitigate the risk from the virus outbreak. obviously, a lot of these countries are fairly vulnerable. indeed, the ones that we think are most exposed, thailand in particular, and singapore, have already started to sound like they are willing to step up and actually provide policy response. the rate cut by thailand yesterday, i think it was a relatively clear case. not just because of the impact from the virus but also the

starting point was already quite weak. they've had a lot of headwinds from budget delays to the drought and the export slowdown last year that have made the case for them to keep easing. shery: is there any more ammunition left for the bank of thailand? euben: i think so. they are not yet at the zero bound. 1% is the new record low. the statement yesterday was quite clear. they are willing to do more if necessary. they've effectively left the door open to do more easing. say, it's probably going to take them longer before they do that. maybe a severe deterioration of the economic numbers. and then take another rate cut. for now, our base case is they pause. shery: what about the monetary authority of singapore? given what they said about the exchange rate being able to

accommodate weakness. we are seeing the singapore dollar at a four-month low. where we headed? euben: that's right. they are increasingly accommodative as well in their stance. havex strategy team assigned now a 60% probability that in the april policy , mes will move ahead with some some of easing or baseline -- easing. our baseline is that they bring the slope to zero. not ruling out something more significant. again, between now and then, we get economic in -- activity indicators looking likely to intoiorate, mes take that account. shery: how exposed is singapore to china at the moment? they were hit hard. the exposure compared to 2003 has definitely increased,

be it from the shares of chinese arrivals into the tourism industry here, the linkages and supply chain, a percent of total exports. china accounts for 25%. that's a lot higher than we were maybe 10 years ago. definitely from that angle, the numbers look like whatever happens to china really gets reflected relatively quickly to the singapore economy. increased.re has so this is probably why the authorities are looking preemptively to try to provide some kind of response to mitigate the risk. throw we are seeing china the kitchen think -- think at measures to support the economy. we are expecting more in the backend. is there a risk across the region that we are going to see damage done to structural reform

plans as a result in spending to try to counteract the economic impact of the virus? euben: for southeast asia, yes, there is the case for that. at least some kind of a delay in what these countries are trying to do and pass legislation for structural reforms. ony need to focus right now trying to assess the economic impact, contain the virus and the spread within the borders, and also provide some support on the way up when we have a recovery. the structural reforms might be on hold. the focus will be on the short-term stuff. haidi: thank you so much for joining us. a big exclusive interview on friday. one of the central banks we are waiting to hear from is the philippines. we will be joined by the governor. don't miss that exclusive. this is bloomberg. ♪

haidi: a quick check of our latest business flash headlines. qualcomm rose in late trade. g networks are firing up demand for pricier smart devices. the projection is more evidence of their confidence that five g will expand rapidly this year. shery: tencent music enjoyed a boost on reports that china's authority has suspended a probe into the company's dealings with the world's three biggest record labels. the authority hasn't given a reason for dropping the investigation which began a year ago. the pro-have focused on tencent licensing deals with music groups and universal, warner, and sony. up next, australia will have its writ -- december trade and retail figures. we will find out how the bushfires are impacting already

week consumer spending. this is bloomberg. ♪

haidi: some breaking news on the australian economy. of -- sailors cannot rise of half alors, a rise percent. we are seeing the impact of bushfires venting people from going out. a contraction of half a percent theh on month, worse than expectation. we are getting a trade surplus for december, $5.22 billion less than the $5.5 billion we were expecting. next.h in the

-- so much in the mix. let's start with the retail sales number. is that what you expected? >> that is a little better than what i was expecting. we had a weak retail outcome in the previous quarter. that wasn't something that the tract the consumer outcome and saw us get a set -- get a soft gdp number. than expected. is it what we would like? not really. we have consumer sluggishness. outcome that is a solid . not out of the woods yet in terms of consumers and gdp, but it is better than what we have been factoring in it last quarter. it rubbing be seen, we are looking at this in the rearview mirror and in front of us is what the coronavirus impact might have on the economy at we will not know that until we get

march quarter figures and that will not come until april or may. shery: is the governor being too optimistic when he said the economy could grow 2.75% in 2020? i am reluctant to criticize, but in this case, we can see what they have done and they say what the soon to see coronavirus impact might have on the economy. when we look at those forecast unchanged, the governor is expecting your comment to grow 2.75 percent in 2020 at a lift to 3% in 2021. to get there, given what we know about gdp, we will need to see a consecutive run of growth as strong as we have seen since the last time we saw growth. australia was having massive investments coming through from 2011 through 2013. we do not have a major

investment boom hitting the economy right now. we have other headwinds, the bushfires, now we will see the coronavirus impact coming through on the economy. on china, our major trading partner. there are a couple reasons those forecasts are unlikely to be reached. that is one of the reasons we think they will be facing a disappointment and will be tracked into cutting rates later this year. we are seeing estimates like $1 billion of lost tourism .evenue we heard from the prime minister saying the coronavirus will have a significant impact. we heard that from the treasurer as well. is the surplus in doubt? >> i think so. the surplus is thin to begin with. we have seen able bull pull shocks on the economy. there will be the cost of

rebuilding, not only infrastructure, but payment going to bushfires and around the country, we are experiencing floods, more significantly in new zealand as well. has we think about what happened with the coronavirus, it is too soon to tell. what we know is what we can see. has fallen.ron ore export $840g to million of iron ore. do not know what the situation will be as the outbreak continues to unfold. we have things lingering like a rock rather -- rough weather around exports. before we think about the impacts of flights from my that china being suspended -- flights

from mainland china being suspended, it looks like he surplus will not be achieved this year. thank you very much for that breakdown. the are seeing equity markets across asia seeing gains. sarah: markets holding onto their thank you very much for that gains. near session highs early on in the trading session. in japan, the nikkei roughly 1.5%. that 50 day moving average was around 1717. we will see if by the end of the date that can turn into what would have been resistance. let's switch out the board and look at the commodity complex. we have seen a stock turnaround as there is much speculation about opec potentially announcing more production cuts and potentially holding an emergency meeting next week.

crude oil at wti higher. above $55 a barrel for brent and wti back above the $50 a barrel after we punched through the other day. copper futures higher for a 30 day. this is after that record 13 day losing streak. gold moderating after a gain we saw yesterday. with all of this in mind, look at the bloomberg commodity index. this is a composite that has a weight, 7% to copper, a variety to other commodities as well. ofterday, a multitude commodities climbing together. the index up 0.9%. now, we are giving some of that up. the lowest since 2016. ubs saying they see the possibility for oil and gold to .oth rally together

if that happens, it could be a boon for commodity complexes. we will take that given how much language in the past two days, let's take a look at the open in china. we continue to have news of cases and fatalities climbing inside china and outside. the latest from japan, 10 more confirmed cases of the coronavirus found from passengers or people that were .p board the cruise ship i believe that takes us to a -- 220 confirmed cases -- two 20 confirmed cases. open is still a long wait out, it feels like sentiment is pretty sanguine. >> some part of the market have started to put the story behind it. china, you also

mentioned some of the part of the market that have underperformed. room forn't leave repositioning. in china's case, it is a long way back. below levelswell week.s time last i think that does bring up an important point. while other parts of the market might be looking at -- there are parts of this that are exposed. we heard from china that they are asking to lay and minors there -- asking chile to delay weimports. yesterday, there was a run on toilet paper. these inventory , they are down the

toilet. what i'm trying to point out, until we see even the earliest signs of normalcy coming back into these areas, it perhaps would be too aggressive to call that the story is behind us. arey: no wonder some banks flipping their 2020 predictions and it is just february. >> nomura is a good example of that. the chinesevocating currency, they have enough letter that because policymakers have started to show their willingness to come out with new cards, incremental health. we heard that from thailand yesterday which cut interest rates. being, a lot of big flows across these markets will bondsermined by em asia

for the first time in eight years, now giving you a negative real yield because of that rally in bonds. back to what we might see today, we will probably see gains when the markets open up. let's get you the headlines with riddick a group to at the first word news. banks inentral southeast asia signaling strong action to counter and economic hits from the coronavirus. the bank of thailand cut its benchmark rate to a record low 1% while policymakers in singapore indicated room for further easing. also a willingness to ease, saying it is best to do so sooner rather than later. the u.k. economy postelection is proving more robust than thought . the bank of england decision to

hold rates last month. index jumped to a 16 month high in january ahead of expectations. tovice sector sentiment rose its strongest since 2015. i would suggest growth of 0.2% better than in late last year. the credit worthiness of companies in india slows. there are signs that it will get worse. the quickening ratio of downgrades versus upgrades suggests relief is hard to find. the credit scores of 188 companies were lowered, compared with 103 upgrades. a price tagputting on huawei's ceo. that is the first decline since 2014 and the largest drop

recorded going back to 1997. there have been rs on both sides and billions of dollars in trade in -- noise of dollars in trade disrupted. global news, 24 hours a day on air and on quicktake by bloomberg, powered by more than 2700 journalists and analysts in more than120 countries. shery: coming up next, a deep dive into how they coronavirus outbreak is affecting the global supply chain and the shipping industry. this is bloomberg. ♪

♪ on another day of gains for markets across asia. a third session of gains with the asia-pacific index leading with health care, the biggest gainer at the moment. we are seeing pharmaceutical companies being bought on more

speculation that there could be a treatment for the coronavirus. the who has pushed back on those expectations. the outbreak forcing countries to impose grunting checks and measures are starting to have an effect on the global shipping industry and supply chain. kapoor.us is rahul seeing more news of taking importers not into these commodity cargoes, including some talk about potential lng importers declaring force majeure. how big of an impact is it having at how does that compare to the stars outbreak -- the sars outbreak? rahul: first we look at what the shipping industry is doing in the crisis. the chinese economy remains around the shipping -- the

shipping industry remains on chinese growth. it could reduce is as much as 1%. that is negative for shipping demand. we expect in the short-term, it will face a crisis. shery: we are seeing that concern being reflected in the markets, whether the equity market and commodity markets seeing a rebound. what do you see in terms of demand and supply that the markets are not focusing on? sars. you talked about we do not expect -- this is not the right template for us. the chinese import are now 10.5 percent versus 4% in 2002. when we go into the pharmacy , the chinese have new

imports. all these factors, it is too early, but over the next few weeks, as factories a slowdown, this will start having an impact . it is being reflected in prices, which hash that which have clashed over the last few weeks. haidi: i am looking at the numbers and container vessel since january 20. how quickly can the industry respond to that in terms of cutting capacity? the container lines have lost ceilings over the next few months. what would happen is if you have a prolonged shutdown and there is a restriction for the --rantine, that can start you are hearing some of the conditions building up. the container lines are avoiding these boats.

it is something we watch out. it will be a long recovery from this for the next few months. haidi: the argument economists wayng that there is no china will be able to fulfill purchase requirements to the u.s. under the phase i deal. how much of that will be a detriment? an uptake where shipping cap -- worshiping companies expecting from that? look at the oil market, that is a good example. are downis assuming we 1.4 million barrels a day in terms of chinese oil demand. in a worst-case scenario, for the month ahead, this could ,ivert -- you look at our data the current oil heading to china is still $90 million. that is a significant amount of oil. if we have expectations of

demand a slowdown, a lot of these buyers asking for reselling of these cargoes and find a new markets for them. shery: which companies will take the biggest hits when it comes to shipping? is -- when youy talk about the global supply chain, they are china-dependent. they contribute in terms of exposure to china. it is all across the shipping supply chain. in our view, the oil tanker sector, that is the worst impacted. bearish.ok is that leads to the next few months of eta madison area. shery: we are seeing in vietnam

shipsti's -- quarantines coming from china. we see scrutiny on any vessel that passes through china. i wonder how much more difficult the situation has become given that we also have the implementation of the im of -- i 020o 2020 rules -- imo 2 rules. we have similar quarantine measures. that is the reason this has come at the worst time for the shipping industry. demand has ar, the low period. the first quarter is already a wipeout. recovery to the extent of demand recovery which we expect in q2, but there will be demand in the stimulus which we are expecting from the chinese government, a better recovery in the second half.

q1 seems like a wipeout for us for the shipping industry. haidi: thank you so much for joining us. let's get a quick check of the business flash headlines. cuttingple supplier is its revenue outlook for 2020 after imposing quarantine rules on its iphone factory in china. production resumes next week and the company says workers returning from outside the city will have to give notice for 14 days well staffed from inside will be quarantine for a week. shery: a rally has had the brakes with shares tumbling more than 20% in new york. most of the gains of the path today's. it ends a three-month run that has seen the stock ride a wave of good news. investors seem concerned about

the impact of car production in shanghai from the spreading coronavirus and how tesla will maintain output. an investor quit his position in starbucks saying the company is firing on all cylinders. he told investors pershing square's investment has returned 73% over 19 months. bet perspective return may more modest. starbucks fell despite the praise. he says sales have surpassed his expectations but that it is time to go. later, european close, we have an interview with china's ambassador to the european union. that conversation, this is bloomberg. ♪

♪ the coronavirus care is dominating the conversation. >> tremendous buying opportunity. >> stick with the game plan. >> we should not panic. >> a lot of money on the sidelines ready to invest. >> am i missing out? >> it does seem to be a winter phenomenon. tends to be short-lived.

>> you are still risk on. we had a lot of other things going in favor of a global economy anyway. >> i would stay with risk. haidi: optimism grows that the virus will be contained. hour, we get to the next the china open is almost upon us. let's look at how markets are trading at the moment. it does seem like receive the risk badly continuing -- risk rallying continuing. numbers continue to climb. we had a reasonable u.s. employment data adding to the optimism. we are also seeing a higher trading on the kospi. australia, retail sales number in december, the asx is up by 0.5%. shery: tech and health care

outperforming. health care outperforming throughout asia. there is optimism that perhaps there could be some sort of treatment for the coronavirus, although the who has pushed back on those expectations. you are seeing futures holding steady. rally to the s&p 500 an all-time high, gaining more than 3% in the past three sessions. taiwan futures gaining ground after two sessions of gains already. when they traded last, than zero point 7%. this after china injected fromdity after coming back holidays. yesterday, they withdrew funds. it will be crucial to see what they do in a few minutes. we are seeing the offshore yuan holding stronger throughout this week. below that seven level, but we got the fixing and pboc

operations in a few minutes. all of that coming up in the next hour. coronavirus may influence central bank decisions expected out of asia this week. these how much ammunition essential banks have, later, we a ceo, taking by a look at the impact of china's tech sector and the consumer sector. coverage does continue into the next hour. we look at the start of trading and hong kong, and shanghai. the china open is next. ♪

♪ in beijing,00 a.m. 8:00 p.m. in new york, welcome to "bloomberg markets: china open," i'm shery ahn. i'm haiti stroud-watts. the coronavirus death toll climbs again as the world health organization warns there is no proven treatment insight ♪ central banks ramp up their responses. haidi: and president trump is cleared on both charges of impeachment. the next decision rests with voters in november.