welcome to "bloomberg markets." riggs into different cisco with paul allen in sydney francisco with paul allen in sydney. ♪ taylor: coming up in the next hour, tariff cuts. while the coronavirus continues to spread, chinese markets rally. uber edges out wall street expectations. we will look at the growth and losses.

musk'scex spin up elon rocket company is planning on spinning off star link. we will have the details. but first, we take a look at how the u.s. market fared today. we are looking at another day of record highs in the u.s. at least on the s&p 500. another record high with a risk on tone. nasdaq leading the gains. another record there. strong earnings from twitter. the tesla ipo debuting in the market as well. the bond market telling is a different story. yields falling there as well. a 164. we are near the highest we have been since the quarantine in china was initiated, but there is a little more nervousness out there then the equity markets are telling us, and it is all about crude. up about 0.7%, rebounding for its second day. in those three days, up 3%.

closing in on $50 a barrel. paul: there was a positive tone in the world. trading after thursday's public holiday, playing a bit of catch-up. already higher by better than 1%. we are expecting another good day of trade in australia as well to be futures pointing higher by 0.5%. check out the futures for japan higher by almost 1.25% as well. you mentioned the bond market there. the trend for the aussie 10 year is still upwards, although the yield pulled back a little. the currency remains stable at around 67.5 cents u.s. a little lower than that in fact. we will keep an eye on the currency. the bank of australia governor will testifying before the house committee. we will have the reserve bank out a little later as well. china's decision to have tariffs

on some $75 billion of imports from the u.s. on valentine's day comes as the coronavirus is raising concerns that beijing may have to cancel orders if the situation gets worse. our china correspondent has more. satisfies part of the phase one trade deal with both coming in the green. ony will be having tariffs $75 billion of u.s. goods that take effect on fabric 14, the same time when u.s. will reduce tariffs as well, dropping to 5% from 10% on some goods and others to 2.5% from 5%. bloomberg reported chinese officials are hoping the u.s. will agree to some flexibility on the phase one trade deal given the disruptions the coronavirus has led to demand and trade in china. later todayting that economists are respecting the overall trait of january

contracted. while the ramifications of the outbreak will really be in the outlook for the coming months, especially february, where we will see a much weaker trade data. countriesing more clamp down on travel to and from china. u.s. to india to hong kong putting in place some sort of china-related restrictions. beijing is becoming increasingly angry at countries for putting these unprecedented bans, saying it is sewing panic. airlines is a large portion of plextor china. it is abrupt and chaotic. some countries have left thousands stranded around the world. this is despite the world health organization refraining from issuing any sort of recommendation to restrict travel and actually cautioning against actions that promote discrimination.

something that has been trending heavily on social media in china after a lot of confusion, bloomberg has confirmed the chinese doctor who was one of the first to warn about the coronavirus has died, according to the hospital where he worked. he became very well-known after posting on social media in early december before the outbreak really began to spread about a stars like illness. days after, he was reprimanded for rumormongering online and ended up becoming infected by the oldest. when hedia reports that died, he was in his 30's. speaking of the number of cases, they have now exceeded 28,000 with the deaths more than 560. ur china correspondent on the ground in beijing. despite fears over the coronavirus, u.s. stocks

continue their relentless push higher. boosted by china's decision to cut some tariffs. let's discuss all of that with the chief market strategist, matt. are you surprised to hear by the resilience of this u.s. equity market continuing here at more record highs? matt. wondering what you think of the equity market continuing the resilience to be pushing out more record highs. is it appropriately pricing in the risk from the coronavirus? >> one of the things we worry about is before this coronavirus breakout took place, the market was kind of already priced for perfection. we really needed -- everybody talked about how we needed a big increase in earnings growth this year. the earnings season has been fine. we beat expectations, but it was not anything spectacular. now with the markets back to

where we were, we are not pricing in any risk of the coronavirus, which i think is a bit difficult. also, it makes it tough for the stock market to rally significantly from here. does not mean it cannot move a little bit higher but we will have to see improvement in other areas rather than just the dying down of the coronavirus issue to tick the market significantly higher from these levels. taylor: china trying to respond this morning by cutting some of the tariffs from american goods being imported by half. not in new that was phase one, and how much of a tailwind is that? matt: well, from my understanding, it was part of phase one so i do not know how do this is. the market certainly reacted to that. it is certainly a positive reaction. it should have already been priced in an already in the marketplace. it is just something that people are so bold up right now, buying a missable dip, that any piece of news, they seem to want to take the market higher.

paul: most equity indexes have been moving higher, but if we take a look at the russell 2000 of small-caps, the rising tide is not floating that particular boat. what is the problem there? mean, one of the reasons is it is sensitive to the u.s. economy. we have had some good data, economic data points coming out ais week, but it is still concern when looking at what is going on in the russell that you talk about and what is going on in the bond market. yesterday, bounced back a little off recent lows but the yields were already coming down before the coronavirus came out, the outbreak took place. they have not bounce back much. there is concern that maybe the growth and as we move through the year of 2020, if we will be as strong as people hope we will. another reason to be cautious. does not mean the bull market will come to an end, but you had a huge rally last year based on zero earnings growth.

it is hard to see a big rally from here. paul: one of the sectors that has been really beaten up is energy. i know you consider that a buy but perhaps not yet. what signals are you waiting for there? matt: it has been did money for most of the last decade but has had periods of outperformance permitted for long-term investment, tougher play, but for people who like to trade the market more, not day traders, but people who like to move in and out time to time, it could be a good group. every time we see it, like in early 2016 and early 2019, the stocks got washed out in a major way and a lot of the group outperformed for four or five months. i am looking for one more washout moving the group and people can buy some of the stocks on weakness. taylor: as we have been

speaking, we are getting some other headlines coming out of china. a province is now reporting 2447 additional coronavirus cases through february 6. the province now reporting 69 coronavirus deaths as of february 6. now total coronavirus confirmed cases rising to 22,112. you get these headlines every day. more cases. more deaths. fold that into your reaction in the bond market. the bond market seems to be telling is a much more pessimistic story than the equity market. is the bond market right here folding and these headlines with the pessimism we are seeing? matt: i think it is. i hate to say it, but having somebody who spends most of his time on the stock market, although i always look very closely at the bond market and keep an eye on that, but the bond market is usually right more often than the stock market.

the euphoria takes place in that market. it is a concern. not only for the coronavirus but the fact that it was already starting to rally, which caused rates to come down before the coronavirus came out. it isa not a red -- not a red flag but a yellow flag. taylor: i am taking a tally of every strategist we are speaking to because i am getting a lot mixed opinions. u.s. versus rest of the world still in play for 2020? matt: one of the things i look course, i don't pretend to be a scientist or a doctor but at some point unless this really becomes something like the spanish flu of 100 years ago, it will die down. what is going to happen with the stock market? the u.s. stock market is at its all-time highs, a little overbought, somewhat overvalued.

even if you think the overvaluation levels are justified by the low interest rates, it is still somewhat overvalued. the chinese stock market is down almost 20% from its 2018 highs. once the coronavirus dies down, you will have more upside potential there, especially add ae we expect china to lot of the liquidity into the market and stimulus into the system throughout this year. the upside in china to any kind of easing in the coronavirus is more. paul: matt, thank you so much for joining us today. i think we may have just lost your line there. want to get some breaking news for you. the latest coronavirus numbers coming out of china right now. we have the death toll now rising to at least 632. hubeiovince of reporting 69 coronavirus deaths

on february 6. additional cases out of the province and now we have a total number of cases in that province rising to 22,112. just to reconfirm for you, the death toll now at least 632. more to come, including an effort to rein in spending at over has proven effective. earnings painting a more rosy picture. we will break down those numbers, next. this is bloomberg. ♪

♪ paul: companies are starting to feel the effects of much lower demand from china due to the coronavirus. in the commodity space, several chinese buyers have already been gone earlier purchase agreement. david has been tracking this. david, who is declaring it and what are the reasons?

biggest energyhe buyers in china has told its simply on the back of that their reasoning is when you look at some of these ports, they are closed and cannot take deliveries of the previous purchase agreement. said they are reneging on some of these things. not sure which contract but they have voiced the communication. it adds to this long list of chinese commodity buyers that have essentially either done the same thing or told other suppliers that their shipments are getting stuck at fort or there are some delays and you do not understand why. we have been talking about this all week. they forced the closure of industries and provinces. when you add up the annual output of the provinces, the

academy is -- the economy is shut for weeks. taylor: thank you to david ingalls. appreciate it. uber has edged out wall street's expectations last quarter with analyst better than estimates permit gross bookings for the quarter, 18.1 billion dollars commissioning the demand for transportation and food delivery orders continue to grow. but that is not all. the ceo talked profitability on the earnings call. ourur progress in 2019 and 2020 plans gives us the confidence to challenge our teams to accelerate the ebitda profitability target from full q4r 2021 two q4 2020 -- to 2020. taylor: joining us now is mike walsh. great to have you. you just jumped off the bloomberg earnings call. what is your key takeaway? >> thanks for having me. i am impressed by the fact that they are able to grow the numbers.

one thing that was great to see is that they are closing businesses or selling businesses rather that are not number one or two in the industry. so they are eliminating a bunch of expenses while maintaining some equity in those companies. taylor: they also have their profitability target, now looking at q4 of this year, full-year profitability by 2021. that is a little bit ahead of targets permit how much of that is the market demanding that? mike: i think he was under pressure. as he committed over the last couple earnings calls, he was planning to get to profit ability quickly. i think he has a great team behind him that has been able to meet those objectives. aboutyou were talking growth a minute ago. are there limits to growth? largerd on the call more numbers. does that suggest uber might be coming to the ceiling in terms of the right numbers?

mike: i think they still have a huge potential for market share. are still only 30% 's right the u.s. shareholder internet users. they have huge global potential. paul: also, you mentioned uber has been selling off some arts of the business. it sold the india delivery business. india wouldd that lean in an opportunity to take a bigger position in the market, so does that suggest to you they are looking for things to buy as well if the opportunity presents? mike: yes, it does. at least what i heard was the company is going to double down in markets where they can be number one and two and that may lead to acquisitions in some markets. taylor: i want to talk about how much of a headwind is ab5 that

is forcing uber and other companies to treat contract workers as full employees, providing full-time benefits. mike: i think for companies as large as uber with the global footprints, it is not a significant hit. they have the cash to work around those issues. dara did cover that. that question was asked during the earnings call and he answered that somewhat. there are smaller companies in the upper folio that were significantly impacted. they are getting hit with lawsuits. these are substantial for a small company that does not have the resources to fight or actually pay the lawsuit. taylor: i want to talk about the market environment right now. as an early investor, the end goal is to always see a company go public. we have in the last few minutes warner music group has come out. they are planning to file for an ipo. casper ipo'd today, doing

relatively well on the first day of trading. this marketeel in sentiment when is the right time to go public and when is the right time not to? how is that market environment like now? mike: i think the way i interpreted his comments when he said that was because he was able to acquire a $12 billion. when they needed it. but just more generally speaking, i think that companies are not going to perform well if they don't have a path to profitability. that is why dara has been so aggressive with that strategy, to get profitable. taylor: we have seen that a lot with softbank. really ever since wework collapsed last year, you have seen softbank take a bigger role in making sure some of the companies are profitable as well. you worked with soft big before. how were they like? as an investor as well. how are they structurally now

changing the market? mike: we also early in our investments. enters, we arenk not that involved. but i can't comment on one of our company's wag. they pulled back a little bit. they have a new relationship growwag that allows it to not quite as aggressively internationally as they can ands on things like that meet profitability at a slower pace where softbank can still have some upside but they don't have that pressure to grow as rapidly as they would have if softbank were in the same level. taylor: my colleague paul allen is in sydney. they have been destroyed by some of the wildfires going on there. what are some of your efforts in the start up companies? to help mike: thanks for asking, taylor.

i made a donation when we heard it was happening as a firm, structure capital decided to for fortime in 15 minute chunks any startups that might be interested in taking that time and contribute $1000 to the organization of their choice to help with that start of relief for the fire relief rather. we are encouraging other people who are smarter and more experienced than us to do the same and try to scale to get relief to those folks in australia. taylor: our thank you to mike walsh, an early uber investor. uber looking for a in q4 of 2020. much more ahead. stay with us. this is bloomberg. ♪

paul: let's get a quick check of

the latest business flash headlines. twitter sort after topping expectations for fourth-quarter revenue and adding more daily users than forecast. shares rose the most in almost a year as revenue climbed 11% to $1 billion, and that beat expectations. the big surprise was user growth, adding 7 million daily users around the world and now has more than 150 million people logging on every day. i didg early losses after real casio protest unveiled plans for a network of high-speed charges for vehicles. the bill would establish chargers along public highways within five years. however, the measure is seen as unlikely to pass in an election year with the republican party controlling the senate. the uk's largest supermarket thailandinviting tycoons for a second round of business. the deal was expected to fetch

more than $7 billion. the groups have been picked to proceed with offers. there is no certainty they will proceed. tesco shares climbed in london to their highest in almost a month. be sure to keep up-to-date on this developing coronavirus story. on yourrun the function bloomberg terminal to see the latest global figures from the cdc and the bloomberg news room as well as how specific companies may be exposed. this is bloomberg. ♪

beyond the routine checkups. beyond the not-so-routine cases. comcast business is helping doctors provide care in whole new ways. all working with a new generation of technologies powered by our gig-speed network. because beyond technology... there is human ingenuity. every day, comcast business is helping businesses go beyond the expected. to do the extraordinary. take your business beyond. and with the sxfinity stream app, screen is your big screen. which is free with your service, you can take a spin through on demand shows, or stream live tv. download your dvr'd shows and movies on the fly. even record from right where you are. whether you're travelling around the country or around the house,

keep what you watch with you. download the xfinity stream app and watch all the shows you love. ♪ >> welcome to bloomberg markets i'm paul allen. for more onow what's happening in the markets, we have a chief market strategist. have a decent run up over the past few days. over the coronavirus tutees. you have a sense that things are getting ahead of themselves? >> you had a good week for

president trump which the markets interpret positively. from an equity perspective, you have a potential vaccine against the coronavirus. these are all good things. you have good employment numbers coming out as expected. corporate earnings have been solid. expectingto the year a high single-digit return for u.s. equities. we maintain that today. let me give you this exhibit on the bloomberg terminal. ofthis an example perhaps the rational exuberance? ask if they could be. in the short-term, things can always correct. investors has as always been that when you see a sharp rally, you see a retracement. it is unlikely that it will keep going at 1% or 2% per day as we have seen in the last four days.

there are some kinks in the armor. you have earnings for the fourth quarter that are mixed. there's a long way to go. torall, you are not going see a recession in 2020 in the u.s.. we have decent earnings growth in part because the comparisons are easier than last year. that builds the base case. if you think the fed is likely to stand pat. within the earnings picture, where are you finding opportunities? the growth companies and compound her's. if you think about compound is, bank a company that is taking rocket share away from its competitors and growing margins and increasing its dividend or buying back shares or both her and that 3% to 5% earnings growth gets compounded as a

result of the other things that are happening. also, we like the window matter what. what.n the matter adobe has moved over to his instruction model. it is a one-stop shop for marketing. that is a great company. we are staying away or being careful with value. there are a lot of people pointing to the idea that this is under price or there is value here. typically, we think that right now in particular there is a reason for that. let's not forget that it is close to 40% of the s&p constituents are in bear market or correction territory. taylor: why is the bond market more pessimistic? it was inverting earlier this week. is correctlyarket looking at the economic data.

yes unemployment continues to be driven as alargely result of demographics. things are ok but we like to see a pickup in manufacturing and services. the bond market tends to take a more cautious view than equity investors in general. i am looking at your asset allocation for a growth portfolio. even cash and 10%. why is that? are you looking for buying opportunities? >> one of the things we are always focused on is volatility reduction without impacting returns. we have been fortunate that our hasytic team and our cio

been some great stocks. also, we sold some stuff in q3 q4 of last year and we have not found the right entry points yet rated paul: what is your biggest conviction for 2020? >> as a single stock, i don't know that i'm prepared to do that. technology growth starts -- stocks as a sector should do the best. a repeat of 2019 in that sense. paul: thank you very much, oliver. posted a loss in the fourth quarter with sales falling short of estimates. it is said to be a difficult 2020 with the coronavirus and a casino shut down in china. you said it, the surprise lost from wynn resorts. i saw lower revenue in las vegas

and macau which is one of their key markets. numbers were these before the macau casinos had to shut down for 15 days to deter the spread of the virus red a lot of questions about the first quarter is going to look like. how big of a dent is this going to have. some of the analysts we talked to say it's going to be in the low single digits given that the numbers we are looking for our bed in the first place. january was partly due to the plunge in tourist arrivals during the lunar new year. now that we have the hong kong side of things where they are closing the ferry terminals, that will certainly hit the mass market as well. that's what we're learning from wynn resorts in macau. we're also talking about the impact as a whole the first quarter looking to be half of

what we saw from one year ago. anotherking about resort reassessing their core investments. also bear looking into crown resorts in australia. they were supposed to buy the second bunch of shares. they were put on creditwatch negative yesterday given that macau is going to be negative in the first quarter. on the bad news again today, we just learned from our basil but they have canceled their event here in hong kong set to happen in march. this is an event that drew 88,000 people last year. they are now saying they are citing the health and safety concerns about international travel the could make logistics traveling. the movement of artwork and the building overall. it's no surprise, we already heard earlier of art dealers asking organizers to cancel this event. some already dropping before

this announcement. thank you. to howto pay that this the virus is continuing to affect the markets. david, we made it here. taking a look at what assets have recovered and which ones have not. u.s. markets look strong. how does that hold over to where you are? what retraces all the way back if not -- there are stocks. china stocks were behind what we had in the u.s.. relatively speaking, that was the group that has managed to claw back because of these bargain hunters coming back in. it is also worth noting, when you look at other assets things especially byncy

the way when you look at bond yields in china, i overheard an interview you had earlier. the bond markets tend to be -- in the sense of what does it for shadow it comes to the economy? we have been talking about these revised forecasts for growth. the fact that you have a chinese 10 year in the lower 2.8 tells how that hasn't actually convinced markets that the economy is going to be ok. we will probably get the first indication of that later on, the trade numbers for january coming out. we are expecting overall declines in exports and imports for the month of january. thank you, david. come, zynga surprise analysts with its latest results. more details in a moment. this is bloomberg.

♪

paul: breaking news for you here in australia. the reserve bank of australia governor is giving his semiannual testament. there you see him speaking. he said that easing is not on the agenda for australia right now. right now we are three quarters of 1% rated he has made that statement in the past. he says there are no changes in wages growth. has monitored the market closely. more broadly, he sees a moderate uplift in global growth. he is just starting his three hours of testimony. if you want to follow that, you can. let's check in on first word news. china is stepping up

monitoring residents in wuhan where the coronavirus outbreak began trade a must report their body temperatures daily. the local doctor who was initially criticized by peru has died.police now more than 30,000 confirmed cases in china. 632 people have died. the virus has halted china's path toward overtaking hollywood as the top movie market in the world. the infection virtually wiped out ticket sales during the lunar new year holiday which is historically the biggest at the box office. theaters have remained shut since january 24. losses from the collapse of sales topped $1 billion. the reserve bank of india has

resorted to unconventional policy again. in a bid to bring borrowing costs down and boost demand in the economy is facing the weakest expansion since 2009. a governor and his team are offering to inject $14 billion in cash refunding operations in a move that is similar to the long-term rate house -- we pose of the central bank. global news 24 hours a day on air and it quicktake by bloomberg. powered by more than 2700 journalists and analysts in 120 countries. zynga at with earnings with record fourth-quarter revenue and beating estimates. it said it would benefit from the rollout of 5g. zynga is the maker of farmville and "words with friends" one of my favorites. here to discuss all of that and more is the ceo of zynga. morgan stanley analyst said your growth one right -- runway is

only getting longer. >> mobile platform is vast. everyone has a mobile phone. they are all game enabled. if you look globally, there are huge markets in asia, south america in addition to north america and europe. this constantly new users coming into the gaming market. there are 2.5 billion people playing games on their phones right now and it increases every day. taylor: analysts have been giving you price target upgrades created the first quarter fell short. issues largely a timing related to our advertising business. thank you for we had ad deals that were quite favorable. they have now expired so we had a brief time in q1 as we spin those deals back up again where you will see a lag in our advertising.

for the full year, we are up double-digit's for the year. >> i want to talk about your active users. they were down 13%. daily active was also down. what's going on? >> yes daily users were down 2%. a function ofly the legacy games. we have older mobile games that are losing users. , thee of our core business user metrics are very robust and strong. that's where you see transition from new games and legacy games aria. paul: we have been talking about a number of stocks and companies that are exposed to supply chain problems because of the coronavirus. zynga my the virus proof. companies the our planet and overall reach, china does not represent a huge market for us yet.

perspective, we are in a good position to continue to grow the company without a lot of supply chain risk. taylor: on the call, you talked about the benefits of 5g. had he benefit? >> that's going to be a tail wind for growth in mobile trade it will enable higher performance gains. you can bring more people into a gaming experience and have games with zero download. an ad onooking at instagram, you will be able to touch the ad and play the game with no app store. ofwill also enable new forms innovation in terms of distribution, player mechanics, how to manage players will be more efficient and strong. as infrastructure rolls out globally over the next several years, it will be a huge boost for us reedit. coanchor paul is in sydney. you came out on the earnings call and set you have some exciting games you think can be

successful in asia. what gains and where in asia? >> we rolled out a game in korea and japan and it has just gone live in taiwan and others. it represents the best blend of the highly accessible game with fun mechanics related to player versus player. we've tested the game in the market and we self published it. excitingen an experience for us because we learned about our players we've also seen great commercial success. asia is a gigantic part of the mobile business. from our perspective, our portfolio lines up right there. taylor: thank you for joining us. up, more macs problems. boeing has another software issue. will have the details next. this is bloomberg. ♪

a spacex spinoff. rocket company will probably spin off its satellite-based internet service and a pursue and ivy -- ipo. spacex star link what do they do. >> star link is a new business unit within spacex. it is a division of high-speed internet from space. the past couple of spacex lunches, they are launching the satellites into orbit. once they have enough up there, they will offer broadband internet service to people in the u.s., canada and around the world.

paul: spacex has been tightly held. this is a rare opportunity for investors to grab a piece. what is the expectation for the popularity? it would be intensely popular. with tesla, there is a huge interest in the name. this is a consumer facing product. lunches rockets for the private sector but if they start offering internet to consumers, that will be a consumer facing company. taylor: why now? >> we don't know about the timing for the ipo. the president and coo announced they will pursue an ipo at a consumer conference in miami. the first thing is to get the satellites up and running. paul: what would the money be

used for? would it be used to expand starlike or elon musk's more ambitious projects? >> it would be a huge source of revenue for spacex overall but if they want to colonize mars, that's going to be incredibly expensive and they need to find other ways to do that. about: what do we know elon musk's involvement? where is he and all of this? >> he is very involved in spacex. his time the bulk of in los angeles where it is based. we are finally getting to the point where spacex says they should be able to begin offering coverage the summer. starlike will become a part of the overall revenue stream. from space to the skies, more problems for the boeing 737

max. to fixsays it is working another problem. a software issue that the company says will not delay the mid-2020 returned to the skies. let's bring in our aviation reporter in dallas. interesting that boeing shares were rising on the news. what do we know about this potential software problem? >> the reason the shares were rising is that there were two significant news developments. one is the new software problem. there is an indicator light in the cockpit that is turning on at the wrong time or it boeing says that that can be solved in a way that will not upend the estimate of a return of service in the middle of the year. it disclosed this problem to the faa last month. that is where we get to the second piece of news today which is that the head of the faa was in london and told reporters

that the certifications like for the aircraft which is key to getting it back to commercial service could occur in just a few weeks. that is a major milestone and a sign that the faa, despite the new software problem, is feeling like it is able to move ahead with the regulatory process. issuesome software related to an indicator light sounds less serious than issues that brought us to this point in the first place. is boeing being overzealous now? is the reason for comfort? that thesafe to say aircraft is coming under a microscope. todayad of the faa said that this is going to be one of the most scrutinized planes in the history of aviation.

lightnly, the indicator does not appear to be the same depth of potential problem as the software issues that were linked to both crashes. it is something that is not functioning as designed. it certainly needs to be fixed before the plane can fly again. so curious about the emotional aspect of all of this eerie and the faa talks about a certification flight. what is the emotional aspect when you have to get passengers on the 737 max for the first time since the crashes? >> that is the big question mark. the certification process will be a regulatory step by step of getting the plane back into service. once those obstacles are overcome, the question becomes who is going to get on the plane? , pilot see airlines

unions talking about why they have confidence in the plane. certainly based on opinion surveys, there is a large part of the population out there that is going to think very carefully about which aircraft type they are flying on in a way that most travelers have not done before. thank you for joining us. let's get a quick check as we await the open up markets and australia. we had to reset on the futures market. we are now pointing weaker. the u.s. markets closing in higher territory. it here in australia, we are higher by a 10th of 1%. nikkei futures easing back by 1.2%. new zealand playing catch-up off of the public holiday. we're keeping an year out on

what the reserve bank's governor is saying. he's giving testimony today. you can follow that online read plenty more in the next hour. stick with us. this is bloomberg. ♪

paul: i'm paul allen in sydney where markets are just opened for trade. in san i'm taylor riggs francisco. ♪ our top story today, scientists rushed divided find a vaccine for the coronavirus as new cases are reported. china slams other nations for imposing a travel ban. the first reports decline in deaths in 10 days. we speak exclusively to china's

ambassador to the eu. industry is already facing a slowdown. toyota it remains bullish. let's look at trading right now. austria is just coming online. open so we areed looking flat at the moment. are pointing to a modestly higher day. we have nikkei futures looking flat at the moment. let's check in on first word news. president christine lagarde says a decade fighting crises has left policymakers with little choice. the coronavirus presents another challenge. she says the eurozone economy

global resilient but threats could undermine that. her warning came as new data showed a huge wall in factory orders indicating the recession there is far from over. the reserve bank of india has resorted to unconventional policy again in a bid to bring borrowing costs down and boost demand and an economy facing its weakest expansion since 2009. a governor and his team are offering to inject $14 billion in cash through funding operations in a move that is similar to the long-term repose of the european central market. generally left when the president said he would raffle off the unused presidential plane. it seems he wasn't joking. that he willnce sell lottery tickets to when the plane. the aircraft cost $219 million

in 2012. on socialre trending media. that jeffxcitement bezos maybe slashing his cash. twoyer behind the high-profile purchases in november was the world's richest man. jeff bezos has $125 billion to play with. he kicked off the year with a $2 billion windfall. global news 24 hours a day on air take by bloomberg powered by more than 2700 journalists and analysts in over 120 countries. this is bloomberg. paul: thank you very much. at the impactook of the virus is having on global markets.

joining us is a senior portfolio manager. the virus risk is not over. are things getting ahead of themselves? >> we do not think things are getting ahead of themselves. in our view, it is too early to tell what the full impact will be from the virus. what we do know is that new highs typically lead to more new highs. something like a virus is a catalyst. in our opinion, it is still a great time to be an equity investor. i want to look at some of the projections for chinese growth. even if rapid containment is 3.2% under delayed

containment. growthook at the prospects for china, again the question is are we getting ahead of ourselves? there will be a demand shot. chinese the -- china sent back a handful of shipments due to the coronavirus. we're expecting the china will revise down the gdp numbers. in our view, there is benefit to investors from china or slow gdp in the u.s.. that leads to more sustainable equity. china slows down and we have slow growth in the u.s., that is one of those things that keeps investors from getting overly confident. it is not concerning to us at this moment that the revision down in growth from china will be sending the market lower. we are in the middle of

earnings season in the u.s.. markets are shrugging off concerns. ony are hanging their hat relatively strong earnings growth. from thisyou learned earnings season? is it a strong as you thought it would be? >> more than halfway through the earnings season has been constructive. guidance has been constructive as well. we take that as a good sign. not just a earnings but the economic data has been strong. we have adp this week. jobs number is tomorrow. if you look at the economic data in addition to the earnings, it is a good backdrop to the u.s.. is that because bad news? you were open from bad news

that the fed would come in and be more supportive. even though the market is pricing in cuts from the fed, we think the fed is probably on hold. headline risks bad news, it is good in the sense that it keeps investors from getting overly confident. one of the things i think most people are surprised at when they come in for a review from 2019 is how well markets did. we didn't have a ton of earnings growth last year. we had a bunch of headline with. the markets went up. growth is something again that keeps people from getting too confident and he keeps the fed in our corner. maybe not cutting more but certainly not being restrictive. optimism,idering your since we are looking to buy a gift in this market, have been missed their opportunity or is there still plenty of opportunity to get in?

>> we think there is still upside. after all the news that came out about the coronavirus and the risk they came in over the last week, that was very short-lived. we are back to new highs. that doesn't mean you need to wait for the dip. i's lead to more new highs. we expect earnings to continue to be strong. we don't expect a recession. reasons, we don't think investors should wait to buy the dip. we continue to like technology. within technology and service software companies, these are companies that have very stable earnings revenue that is recurring. we think that can continue to drive the market higher. thank you for joining us. i want to go back to the coronavirus outbreak created

china is reporting more fatalities as the death toll has risen to more than 632. it a continues to be concentrated in the central province of hubei. what do you know about the latest development? >> at the cases continue to worsen, they are telling residents to report their body temperature daily either through their phones or other methods. if the temperature is abnormal, 18 will be sent to their homes to investigate further. the number of deaths just in that province exceed 600. socialome confusion on media in china, bloomberg has confirmed that the chinese doctor who was one of the first to warn about the coronavirus has died after being infected by the virus himself. known becoming very well after warning on social media in

december. he was reprimanded by police for doing that. he has become a symbol of the chinese government's failures to crack down in the early days. increasinglyecome angry about the travel crackdowns from other countries. at least 14 countries have put in place some sort of china related restrictions. panic among the public while not preventing the spread. also been dealt the same criticism about its lockdown in hubei province. listen to what the ambassador to the eu had to say about the restrictions on chinese visitors. the epidemic will affect the economy in china and in the world.

the infection will be limited and for a short-term. that the view a joke has refrained from issuing any recommendations to restrict travel. it cautions against actions that caused stigma or termination. paul: what are the details around the tariff reduction from china on u.s. imports? >> that trade tariff reduction satisfies partly of the phase one trade deal. they had agreed to cut tariff rates on each other's goods. on $75d been happening billion worth of u.s. goods taken place on february 14 when the u.s. will be reducing its tariffs on chinese goods. we had reported earlier that chinese officials are hoping the u.s. would agree to -- on the

trade one phase deal. given that the coronavirus has had an impact on demand and trade in china. china has agreed to buy more than $76 billion of american goods beyond what it did in 2017. that is a difficult target to reach even before the coronavirus hurried we're looking ahead to the china trade data later today. we will get a first look on buying from the u.s. expecting the january trade to contract because of the holiday. then the data is seeming to worsen in the coronavirus. our china correspondent in beijing, thank you so much for joining us. taylor: still ahead, it's going to be all about central banks. we will speak to our economics economistand research

about women in central banks. first, a focus on the central banks and their outlook as the reserve bank of india borrows moves from the ecb. this is bloomberg. ♪

paul: british columbia reporting two new cases of the novel coronavirus. we also have australia's central bank governor giving his

semiannual testimony to parliament. he has made remarks on the coronavirus as well saying the risks to the australian economy are likely greater than sars but it is important not to catastrophe is the virus. i'm not even sure if that's a word. he is saying we should all remain calm around the coronavirus. he has also made remarks around easing. repeating that that will be on the agenda until the cash rate hits a quarter of 1%. right now we're at three quarters of 1%. he is seeing a modest upload it -- uplift in global growth. you can follow that on the bloomberg terminal. you can also follow that on a tliv blog. you'll also find big diary entries coming up today and later in the week if you might have missed them. threat is forcing more

central-bank action not just in consideration -- the philippines follow thailand in cutting rates. other policymakers continue to follow the situation as well. . let's bring in a correspondent. why are asian central banks cutting rates? the virus has been the trigger pull. we are seeing a preemptive move to get ahead of these developments. we are seeing trade channels being disrupted. tourism numbers are falling off a cliff. thailand, the philippines had a single -- similar -- it's all ahead of trying to get ahead of the curve knowing that there will be lingering damage from this grid ,ith thailand, what they did more cuts are expected in the

region. >> we had india following a different tack. can you tell us about that? >> india is a slightly different story. the economy is under a lot of pressure there but they don't feel the need to move at the moment because they are trying to watch the inflation story as well read the prices gone through the roof. they are looking at the money market for the economy. $14 billion going into the economy. they're looking at easing bad loan provisions. bank forward, the central has made clear it can do more innovative things. most people expected to get back on the rate cutting cycle once they get over the inflation hurdle because the coronavirus is going to have a severe dampening impact on asia even in the best case scenario. taylor: we pulled us over from the asian central banks. wondering if the coronavirus is an excuse to start more insurance cuts like the one we

saw from our own fed jay powell. >> we describe it as something as a wildcard. australia again making the point that it is too soon to say. right now in terms of the u.s. we would have to say that relative to the rest of the globe, it is in good order. we have seen employment remain strong. indicators on manufacturing sentiment are holding up ok also. then if you consider we have had the trade agreement with china you have to say that removes one of the key hurdles for confidence in the coming months. it comes back to the theme that we are flying blind in terms of the economic impact of the virus. how far it spreads and how it deep long-lasting it will be. it will go beyond china borders but the question is how destructive it will be to supply chains. then how destructive it will be to the u.s. economy. we are not there yet.

they have not signaled any kind of panic. it we can be sure they will all be watching it like hawks also. >> central bankers around the world adamantly say that they don't chase equity markets get the equity markets are telling us that we can shrug off some of the economic impact from this at least for now. if you were a fed banker, what is the data point that you want to look at to see if there has been economic damage? business confidence? consumer confidence? factories shutting down? certainlykets are telling a confident story. there is a disconnect between the markets and the real economy given the amount of liquidity going around the system. what it would take was one bad headline on the coronavirus to reset the market narrative. the obvious key metric to look at would be industrial production in china.

are the factories being allowed to switch the plants back on and get back to work and therefore by extension getting the supply chains back up and running and getting their order books up and running? then of course, what is happening on consumption on the retail side of things. are the planes taking off? are the stores reopening? these are all key metrics that everyone is looking at from a real economy side. the who said it's too soon to call. remainow that's where we . we don't have visibility it's still a negative story on the humanitarian side and on the economy side as well. it will take some weeks for we get clarity on the next stage. taylor: thank you for joining us. we will have an exclusive interview with the philippine central bank governor later. you consider times below. next, uber says it will reach

profit better -- earlier than expected. bookings growth might be a concern. that's all of ahead. this is bloomberg. ♪

paul: this is bloomberg markets i am paul allen in sydney. taylor: i'm taylor riggs in san francisco. loss slightlyat a better than analyst estimates. gross bookings $18.1 billion. ordersfor food delivery continues to grow. let me bring you breaking news headline. the associated press says it is unable to declare a winner in the iowa democratic caucus.

again, the associated press says it is unable to declare a winner in the i would democratic caucus. uber.talk about what are your key takeaways from the analyst call? >> the big news is they announced they will be earning a profit much earlier than expected. they said it would be by q4 of this year. previously they said it was fy and of next year. is that the stock bouncing around a bit because they did announce that bookings were slowing down and they expected to see a dip this quarter which is not great news. they are looking at improved numbers around uber eats as well as synergies which has been a big story that the ceo has been selling everyone.

it is hey we can leverage this technology to get your rights to all of these other services like finding a job and getting food delivered. other services like freight and over business. -- uber business. paul: how about cost? is there more work to be done in this aria -- area? >> they market that it was a they of price with lift have been cutting back on discounts and incentives and discounts to writers. impact are we hearing on the call about 85 for the audience? the law that treats contract workers as full-time employees? >> that is a great question.

they talked about that at the end of the call. they brushed off the question a bit and flipped around indicating prices would be higher for some california writers. indicating that they had done something that we reported on before like tweaking the here in .alifornia toy did it by allowing them sue the destination of passengers before they accept the ride. that is one way they are using engineering to buttress with they can't import. california all like you changes being rolled out. thank you for joining us. come, china's impactdor to the eu says from the coronavirus will only be short-term. more from our interview up ahead.

this is bloomberg. ♪

taylor: this is bloomberg markets: asia -- jessica: boeing has found a new flaw in the grounded 737 max. it says it won't delay its hopes for a return to service in the middle of this year. the issue was discovered during testing and the faa has been informed. the problem concerns an indicator light decide -- designed to war if anything is malfunctioning. a certification flight on the max is expected in weeks. union will decide on wednesday whether to impose sanctions on cambodia over alleged human rights violations.

the move would introduce tariffs on all cambodian exports to the eu. embody it is allowed to export .verything except weapons eu imports from cambodia are worth $6 billion in 2018. mostly through clothing and textiles. has orderedresident officials to step up efforts to prevent any repeat of the devastating forest fires that are opted last year. a cost the nation more than $5 billion in economic losses. fires are a perennial problem for indonesia. the risk remains high this year. the dry season will start earlier than usual. halted china's path toward overtaking hollywood as the world's top movie market this year. the infection wiped out ticket sales during the lunar new year holiday, a week that has been the busiest at the box office.

theaters across the country have remained shut since january 24. losses topped $1 billion. that's according to a cinema consultant. 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 jessica summers. this is bloomberg. paul: all right. thank you very much. let's take a look at the markets here in australia. we are trading for 32 minutes or so. we are currently looking at falling flat. we are off by one third of 1%. 1%s is after we saw gains of on thursday. the market was closed on thursday. when resorts posted a surprise loss in the fourth quarter. sales falling short of estimates. it is set to be a 122020 with

the impact of the coronavirus and the macau casino shut down. yvonne man joins us now from hong kong. what more can you tell us? yvonne: lower revenue in las wynneas well as macau for resorts. macau is their key market. they generate three quarters of their revenue there. these numbers were well before macau casinos shut down for 15 days as they try to deter the outbreak of the coronavirus from spreading. a lot of questions on what the first quarter is going to bring. our earnings going to be ugly given the impact of closures? some analysts say the impact could be in the low single digits because things were not looking good in the first place. saw revenue in macau in january following of an percent. that was partly due to the plunge and tourist arrivals during the lunar new year

holiday. were 80% ofrists arrivals during that time. we are hearing more from the virus impacting other container operators. -- casino operators. a lot of talk about capital preservation. they are now on the chopping block, withholding from this buying of a second tranche of shares for crown resorts in australia. today in termss of the art scene. have canceled their and that in hong kong that was set to take place in mid-march. this is an event that through 88,000 people last year. they are citing concerns with health and safety. international travel now impacted which would have made logistics pretty difficult. that evenurprise

before this announcement we heard of art steelers calling -- art dealers calling for them to cancel this event. another hit to the hotel and tourism industry here in hong kong. taylor: yvonne man joining us from hong kong. still on the coronavirus. commodities companies are starting to feel the effect of slower demand. several chinese buyers have her neck down earlier purchase agreements. david ingles is tracking this. what's going on? david: more bad news here. how muchhow much -- time we have for this. we are looking at commodities right now, simply on the back of this -- disruptions to logistics, ports, hubs, what have you. we have a company that is furthering the story, china's largest offshore oil producer, its biggest lng buyer.

suppliers, it will not take deliveries of cargo simply because of constraints brought about by these direct -- disruptions to the transport network. it's not the only company that does this. we've heard over the last 48 hours from everything from copper buyers have contacted their suppliers over in july. we are looking at soybeans. latest one, meat from brazil. soybeans from the u.s. are being held up on arrival in eastern china as well. , going back to the energy space, opec is likely to act. -- ask saudi arabia to reduce its crude supplies next month. it is all coming together when it comes to the industrial space simply because it's hard to get things around china.

economists have been revising their forecasts slower -- lower for this quarter. back to you. taylor: david ingles. for more on the impact of the virus outbreak, bloomberg spoke inclusively to the chinese ambassador to the eu. he helps government takes the who advice that a travel ban is unnecessary. who repeated-- several times that they do not against thestand travel and trade limitations. o is a professional organization. decades, theyt have dealt with several epidemics.

they have collected many experiences which are very helpful. one of them is no limitation on travel, no limitation on trade. ago, we fought sars. from regulations. government ofe the different countries respect advices andho's regulations which are professional. they are the advices from the real expert. >> you mentioned, there's no need to tame trade or do trade relationships differently. how much will this hurt the chinese economy, if any? affect an epidemic will

the economy in china and in the world. i'm sorry. the affection -- infection will be limited in the the epidemiccause would not change the fact that market of 1.4ge billion consumers. also, it would not change the , i mean the prospect of strong development. also would not change china's policy of openness and reform.

paul: that was the chinese ambassador to the eu. still to come, it's our bloomberg equality segment. we will speak to an economics professor about the state of women in central banking and how to elevate diversity in the field of economics. this is bloomberg. ♪

paul: this is bloomberg markets. i'm paul allen in sydney. taylor: i'm taylor riggs and san francisco. time now for our bloomberg equality segment. we feature conversations that focus on creating more equal and diverse workplaces, businesses, and economies. with central banks in focus, where are the women in that space? is a professor of economics. great to have you here.

i know that economics presents its own challenge of diversity within that space. what do the numbers show you about how unequal economics is relative to other sectors? >> economics has been stuck in neutral for the past decade. we have about 30% of women earning their phd's in the field. far fewer go on to be a professor. that's about 25%. you go up in rank, there are very few women in economics at the upper echelons. taylor: are there different challenges with the economics of getting into those upper echelons that you say that are different from other sectors? donna: i think that economics has a different culture. we have a pretty combative culture. there are a lot of unwritten rules to being an economist.

i've been involved in a mentoring program that was established in 2004 to help provide some of that tacit knowledge to young women economists to make them more successful. we just finished our research paper in january. we found that our mentoring program was successful in increasing the number of women's publications and federal grants and the likely death likelihood they get tenure. -- likelihood they get tenure. there is still more work to do. that there are few women who are trained as phd economists. does this problem began in the universities or even further back from that? donna: i've done a lot of work in women in science careers. we find that in math intense fields, girls get turned off mathematics as early as kindergarten and in the home.

anxious,nt is math they tend to pass that along to their children. girls confront discrimination against them in mathematics classes. if they confront this discrimination, they are likely to pursue math in high school and college. do you notice there's a geographical divide here as well? is the situation different in developed markets or emerging markets or asia? donna: i believe that a lot more asian women, at least in our phd they are just as mathematically capable as our male students. asia is much more progressive in teaching everybody math than we are in the u.s.. prescriptionis the to start to change some of these problems?

you can fix it as early as kindergarten when a lot of these problems begin. donna: i feel that everybody needs to know that math is the future. right? we are living in a world of data. being able to be -- have literacy and do mathematics necessary to have careers in computer science and mathematics and engineering, it is necessary for girls to increase representation in the field. and ultimately ascend to the upper ranks of central banking. you are a research analyst yourself at the atlanta fed. describe what the environment there was like. donna: i was part of the research department. i had male and female colleagues. things tend to be really collegial. atre are very few conditions

the highest ranks of central banking. i'm happy to say that a woman that i knew, we were both research economists at the fed, she's now the president of the federal reserve bank of san francisco. other people are ascending to the upper ranks within the federal reserve system. we have female federal reserve governors. we no longer have janet yellen in the top role. i was looking at some statistics and other countries. the bank of england has no whornors in economic policy are responsible for economic policy who are female. christine lagarde is head of the european central bank. she is not trained as an economist. looking at the us trillion central bank, there are women governors but not the head. like that you mentioned mary daly. i am in san francisco.

she's at the san francisco fed. janetlso graduated yellen. any key takeaways from what the san francisco fed is doing to help promote -- promote these women that you have rarely seen other central banking systems? that, when you are talking about getting women to the top of management, we just need to increase the number of women at all levels of central banking so that more women who choose to compete for the top job are available to do so. i think that is the first step. the federal reserve system is very cognizant of this. i was at a conference of years where they wanted to learn about diversity in the economic profession. doing tohop we are promote women in professions. i think the federal reserve system is taking this on directly.

i think that other central banks , i know that there's a joint conference between bank of england and the federal reserve system about these issues. i think it will be in its third year now. the central banking system around the world is starting to recognize and address this. right, university of kansas professor of economics. thanks for joining us. still to come, toyota boosts is for your outlook despite the coronavirus and the global slowdown. more on the upbeat forecast in a moment. this is bloomberg. ♪

taylor: this is bloomberg markets. another stock that rallied on earnings this week's twitter.

the company beat revenue and user growth estimates in the fourth quarter. i spoke with the ceo -- cfo. >> if you go back a few years, twitter wasn't as good at moving fast at testing, having the confidence to try new things. they were more sacred cows around the product experience. we are moving faster and trying things. whether it's allowing people to move quickly back and forth between a chronological and algorithmic timeline or changes we have made to allow people to follow topics. we are getting better at moving faster. >> you are not participating in political ads. do you want to see engagement from that? how much growth we can see? >> elections are great times for twitter. it's always an election year on twitter. 600 million people voted in india last year. there were nationwide elections in japan multiple times. we are able to test and learn and apply those learnings to

other parts of the world all the time. we label the candidates in the united states now so you know who's tweeting. we are removing more spam behavior proactively. bystander reports are down 27%. when you do these things and organize the information better, people can trust what they see. they feel safe being a part of the conversation. elections are a terrific opportunity to showcase the improvements we have. mahaney said they finally are getting the type of investment that they want to see out of you. some of those under investments last quarter that lead to personal data being used to target via ads. are you confident that that bug is fixed? does it have an impact on results going forward? ned: we had add settings that were not working as expected. we fixed it quickly and announced it to people so they knew what had happened. the remediation takes a few different forms. one is stuff that we shipped in

the fourth quarter to share aggregated anonymized data with measurement partners. there are two areas that are much more important. one is to continue our work on a new mobile application promotion at format which is important because it's an existing format but it's also important because it gives us a better path to more direct response advertising over time. the second is to help people understand the benefits of a more personalized experience on twitter. if we appropriately balance our own principles around data privacy and transparency with local regulation, with getting people a great experience over time, there is an opportunity for us to get more personalized experiences for people on twitter. taylor: it is your second straight year of turning a profit. are you planning acquisitions? ned: we did eight in 2019. they were about technology and talent. we do that as a core competency for us, to find great teams that can help us accelerate our objectives and to bring them to

the company. the retention has been incredibly high. we hope we can do more of those. we are always thoughtful about where we can acquire delp us accelerate our objectives as opposed to build organically. cfoor: that was the twitter netsuite go. a quick check of the latest business flash headlines. newsche bank on news of a investor. it steepest gain in four years. shares rose more than 10% after the struggling lender said it had attracted support from capital group. the la-based fund manager announced a 3% stake in it their third-largest shareholder. the uk's largest supermarket chain tesco is inviting tight tycoons to a second round of bids for its operations in malaysia and thailand. the deal is expected to fetch more than $7 billion. we are told that the billionaire have been picked to

proceed with offers. there's no certainty they will proceed. tesco shares climbed in london to their highest in almost a month. he is reported a smaller than expected quarterly profit that was dragged down by higher costs and falling u.s. sales. some pharma net income fell 26% in the december time. the leverage -- average estimate. they are trying to reposition themselves by focusing on high margin patent medicines. they are fighting antitrust lawsuits. let's take a look at how the u.s. markets fair today. it was mostly risk on today. record highs on the s&p and nasdaq. nasdaq up 7/10 of 1%. really stock earnings from twitter. huber debuting on the ipo.

the bond market is a different market. yields are falling. break for atching a second straight day to close above $51 a barrel. we are open and some of the us trillion markets as we are rate -- awake the china market open. new zealand futures higher and lower. the nikkei futures unchanged. next hour onthe daybreak asia, we will preview trade data due for china later this morning. david lee joins us. the market open is next. this is bloomberg. ♪

morning.ry good asia's major markets have just opened for trade. welcome to "bloomberg markets: asia." ♪ haidi: our top stories this toll fromthe death coronavirus continues to rise. china criticizes other countries for stoking panic.