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.

and empty streets means no box office for china's movie industry. virus ist how the hitting its hopes of overtaking hollywood. sarah: very modest gains but still moving to the upside and slightly in the green as to penn comes online. higher price fourth straight day, tacking on very small gains to what is already set to be the strongest week of the year. also take a look at the japanese yen, a little higher versus the u.s. dollar, but remember, this comes after four days of weakness for the safe haven currency. it was actually the worst four-day street for the japanese yen versus the dollar of the year, all the way back to 2018, actually. also keep an eye on the pair. we will be looking at the potential for fresh multi-month highs. moving everyield

slightly closer to positive territory, but also look at the board as south korea does come online as well. keepsrean currency falling but still on track for the best week since all the way back in 2012. australian stocks slightly lower. we see new zealand equity markets to the upside after coming back from holiday yesterday. u.s. futures extending gains after four straight days to the upside in the green. the s&p closing at a record high. the nasdaq, the dow closing afresh records as well and the u.s. trading session all on track for their best week of the year. look at the fx and rate markets. the aussie dollar slightly higher. the australian yuan does continue to trade at the strong and so stronger than seven 10-year treasury yields holding steady, right in the middle of the range. after a couple of very volatile sessions.

stocks we arethe watching in this early part of the tokyo session, untreated as yet. we are looking at numbers that look like it is outweighing after elliott was said to be building close to $3 billion in software incorporation according to people familiar, the hedge fund believing that is one of the most undervalued companies in the world and could easily finance a share buyback of as much as $20 billion, so we have seen that story about the buildup and we are waiting for softbank to begin trading in the tokyo session. will get back to markets shortly, but in the meantime, let's get to first word news with jessica summers. jessica: the democratic caucus in iowa is still not decided. the associated press news agency says it cannot declare a winner from monday's vote with 97% of

precincts now having reported. pete buttigieg leads bernie sanders by less than .2%. the democratic national convention is asking for the vote count to be rechecked to make sure it adds up correctly. boeing has found a new flaw in the back and wait -- the grounded 737 max but said it will not delay its hope for return to service in the middle of the year. the issue was discovered during testing and the faa has been informed. the problem concerns the indicator light designed to warn of any malfunction if the plane's so-called trim system is turning on and off without warning. certification is expected within weeks. the reserve bank of india has resorted to unconventional policy again in a bid to bring borrowing costs down and boost demand in an economy facing its weakest expansion since 2009. the governor and his team are offering to inject $14 billion in cash through funding operations and -- in a move

similar to the long-term repo of the european central bank under mario draghi christine lagarde policymakers are left with few options on stimulus. the coronavirus presents yet another challenge. she says the economy remains resilient, but global threats could undermine that. her warning came as a new data showed a huge fall in german factory orders, indicating the session is far from over. global news 24 hours a day, on air and on a quicktake by bloomberg, powered by more than 2700 journalists and analysts in more than 120 countries. i'm jessica summers. this is bloomberg. news out have breaking of china. they say the coronavirus death toll has risen to 600 36 and coronavirus confirmed cases climbing to 31,100 61.

again, breaking news, china reporting 630 six deaths from the coronavirus outbreak. china, of course, ramping up its containment efforts while at the same time voicing strong objections to the mounting travel restrictions from other regions. our correspondent selina wang joins us. beijing carrying out its own containment measures but not happy with other countries not following recommendations from the who. selina: as the number of cases continue to rise, we are seeing provinces further their containment efforts. residents' movements being restricted as the number of deaths exceeding 600 and the number of cases today surpassing 22,000. after some confusion on chinese social media, bloomberg has confirmed the chinese doctor who

was among the first to warn about the coronavirus in wuhan has died after being infected himself. he became well-known after posting a warning on social -- aftersocial media posting a warning on social media about a sars-like virus and was arrested by police for rumormongering. crystallize for some there fears here. beijing has simultaneously become increasingly angry at these travel crackdowns with at least 14 countries and territories from the u.s., india, and hong kong implementing some sort of china-related restriction. you heard the chinese foreign this so's public anxieties and fears while not preventing the spread of the epidemic. china itself had also been criticized in terms of their own lockdown on their own citizens. take a listen to what the chinese ambassador had to say.

>> these standard guests, the travel and trade limitations, so the governments of the different countries respect who's advice and regulations, which are professional. selina: the world health organization has refrained from issuing any travel restrictions. they have cautioned against promote stigma or discrimination. is this really part of the kitchen sink approach, throwing the china support growth? selina: this likely satisfies part of the phase one trade deal since both sides agreed to cut

tariffs on each other. we did hear the ministry of had on say the tariffs 175 billion dollars of u.s. onds, and this takes place february 14. we have reported before that the china side is hoping the u.s. will agree to some flexibility on the phase one trade deal, given the disruption the coronavirus has had on demand and trade in china and a reminder in the first year of the deal alone, china has committed to buying more than $76 billion of american goods beyond what it did in 2017. that is already a tough target to reach before this virus threatening china's already weakening economy. we were looking ahead to china's trade data that will give us a first glimpse into how much they are importing from the u.s. expectations are that in january, overall trade data will contract with factors related to

the lunar new year holiday, and in february, you will see the ramifications of the coronavirus, given the reduced working days as well as delays in transport and production. haidi: thank you for that. the latest from our china correspondent selina wang in beijing. keep up to the story. run the function on your bloomberg. you find our quicktake landing page with the latest global figures from the cdc, headlines from global news as well as how specific companies and stocks may be exposed. estimate china's overall trade in january likely contracted due to the new year holiday. coronavirus outbreak did cast an additional cloud over the outlook for the coming months.

economist eva lee joins us on the phone from hong kong. what are your expectations in thes of what we will see in data as a result of these factory shutdowns and large parts of the country being shut down, the travel restrictions, etc.? >> hi, good morning. we are seeing trade data out of january today, but as you've mentioned before, january's data is likely to be heavily distorted by the lunar new year. we are looking at -- even before the virus outbreak, we were looking at negative numbers for both export and import growth in january, but especially for imports. usually any kind of activity slowdown in china hits imports harder than exports. for january, we are looking at export at negative high

single digits and import growth at close to -10%. for february, previously, we will looking at a pretty strong rebound to correct for the seasonal factor in january, and now we will probably still see very weak export/import growth. even after the chinese new year, economic vital signs, power generation, travel members, domestic just makes in some ,rovinces still weaker indicating most of the factories are not back online yet. contractionably see again in both imports and exports, probably larger in imports than exports. the trade deficit might narrow versus last year at the same time. we obviously will see the

impact across the services sector as well will travel across the region, but going into the next month, we are hearing reports the main political powwow that happens in beijing every year this time of year could be delayed or canceled as well. what would policymakers be debating, and do you expect them to make a cut to the 2020 gdp target? i think it is likely to be delayed given our analysis of how the evolution of the virus virusak -- in every outbreak history, there is the escalation phase and we see some initial containment, and we are now probably in the moderation seeingecause we are daily new additions of confirmed cases starting to decline day on day, but that is only the second

derivative. usually, it takes a month or two after that for a lot of the containment measures to recede. from this perspective, it is unlikely for the national people's congress that was due in early march to happen on schedule on site this year. i think this kind of one-off equates to in some sense a natural disaster. it will definitely change the they frame or phrase the annual growth target, but i think what markets are looking for and also what the policymakers are looking for is if there is a one-off and if china can finish off the year relatively strong as in six or even above, but first quarter would definitely see a very

visible bent. we did not see this level of quarantine and percussion even with sars. i china's impact is much bigger than back in 2003. >> given all the implications you mention we have seen, the ,boc trying to inject liquidity this gtp chart on the bloomberg showing viewers how many tools the pboc has available out there, what is next? >> after the chinese new year injected $520boc billion, which is a strong, contrast toct -- usual. upinitely, they are stepping .

note thatresting to they opt for open-market indicates theyh are probably seeing this as more of a short-lived event, but also when they carried out the market operation on february 3, they reverse ruble rate by 14 and seven days, probably an , whichion they will cut is how new reference rates grow, and the pboc also promised to andide subsidized loans target affected industry and health care industry and logistics, so on, as low as 1.6% per annum to help them tie over

in this kind of volatility. shery: thank you very much. software started trading and is surging 7%. it rose as much as eight point 2%. we had news, bloomberg learning that singer elliott management to three point million dollars, so we are seeing the stock rallying the most since february of last year, also the highest level since august 2019 as sources told bloomberg that elliott has held discussions with softbank's and they havem built up close to $3 billion in the company. this is bloomberg. ♪

shery: this is "bloomberg markets: asia." oil is creeping up for a

second day. opec and its allies found a further curb production as the coronavirus affect demand. let's bring out our asia energy reporter. we are starting to see the selloff in crude. i suppose there is a lot of debate this week because it would be incredibly hard to make assessments not knowing how long this threat will continue. >> it is a good question. the cut would be significant for the market, but as you say, so much uncertainty around how this virus situation is going to play out. it could be that we get a situation where no amount of cut is going to affect the impact on global demand, so we are very much in a watch and wait mode. i want to say, this has not been

agreed yet. russia, as is its usual modus operandi, is playing hard to get in terms of getting additional cuts off the line. we will wait and see. the russian energy minister has gone back to moscow to discuss with his superiors if they want to sanction that cut, and it strikes me there is a certain amount of weight and see there as well. will this be the key driver in the short-term, what happens with the virus and those lng importers and oil importers? >> that was obviously a huge development. or thethat announcement confirmation that they tried to .eclare force majeure the ceo said he was resistant to that, so that is an evolving

situation, one that has got to play out, but lng prices have gone through the floor amid this growing story with coronavirus, very low prices, so it is a real dilemma for the producers. that obviously will have some impact on the oil market. oil prices have come down a long way as well and will probably continue to do so until we start getting more positive headlines out of china that they are numbers under control growing there are numbers under recovery. thank you very much with the latest on the oil markets. up next, softbank seeing its best day in a year after legendary activist investor paul singer takes one of his most yet.profile targets we will explain. this is bloomberg. ♪

this is "bloomberg markets." shery: activist investor paul singer has built a stake nearing $3 billion in softbank. his elliott management believes it can finance a share buyback for as much as $20 billion. they have thought for a long time that softbank was massively underpriced. why does elliott agree? >> there are not many underpriceds for investments. softbank has been part of that with a visual fund. it picked out all the startups that have the potential to grow, and it has invested in them.

the core of the softbank group value is its investment, so if you think that the tech industry still has room to grow, then you think that softbank group itself has value and room to grow itself. is this a good alignment of interest? >> i think so. sono sheets on -- masayoshi and softbank group feel the need to organize more internally. at last earnings call, must say what she sunsetted -- month zero son said -- masayoshi he would look to diversify.

of the company and most of the percentages go with him, so if he brings in more external board members, feels like a more democratically run company, may be convinced in the they thinkalue which is more than double its current valuation. haidi: how much of a bugbear is the discount that shares are trading at at the moment? huge chunk ofh a the company. he wants to see people who have .he same vision he does care. the $5.5 billion buyback he engineered, what actually happened was with the investment, that value yes, this share

price will be encouraging for him. >> coming up next, counting down to the r.b.i.'s monetary policy statement. this is bloomberg. ♪

we are just getting some lines now from the rba, talking about cutting the forecast for from 2.5% downr ,o two parts that -- down to 2% significantly affected by the threat from the coronavirus from china. we know that lower household consumption and sentiment is one of the frustrations for the governor domestically. the r.b.i. has cut their near term gdp forecast amid the ongoing bushfires in australia

and the new coronavirus threat which we know has disrupted the national rivals on tourism and educational rivals in australia. still see spare capacity in the labor market for a couple of years. time.g there for some forecasting is based on a 25 basis point cut by the middle of the year. the middle term outlook is and miningchanged investments expected to pick up noticeably in 2020 and 2021. we are still hearing from the lawmakerspeaking to in his semiannual testimony. let's get some news now.

you were just expressing some of your frustrations, still remaining quite pollyanna on the numbers yesterday despite the ongoing threat of fires, coronavirus, but also structural challenges within the australian economy, right? >> that's right. it does seem they have made some small adjustments to the near-term forecast, and that is inevitable given the gdp we had in the september quarter and what we know so far about the bushfire impact through the december quarter. we do not know what coronavirus is going to bring with us, but still, we are expecting quite a strong pickup and growth. as they told us in their forecast, they are assuming they incorporate one further rate cut, but that is still not enough to get the labor market to tighten up enough to bring their inflation -- to get underlying inflation up to that 2% target. this is one of the things the

rba is suggesting that the economy will grow and grow quite strongly, but it will not grow enough, even with rate cuts. interestingly, how -- there is that disconnect between the growth and the inflation. we did some analysis looking at what it would take in order to get the types of numbers the rba is looking for for their medium-term, in order to get that two point 75% at the end of 2020 or 3% for 2021. we are going to need the type of sustained growth we had from 2011 through 2013 when the australian economy was getting that massive boost of mining investment coming through, turbocharging that mining investment. the rba is banking on a similar degree of economic growth and that is where we think there is a high degree of optimism baked in. thei: lawsuits depend on labor market. what have we seen when it comes

to the jobless rates? far, the last reading we got on the unemployment rate was a slight decline in the jobless in the joblessness figure. the labor market has been you would argue outperforming when it comes to jobs growth, especially outperforming what we know is coming down the pipeline, so the unemployment rate is one of those lagging indicators and what we know from forward reads is we have that deterioration in job ads that has come through. the uncertainty is based on wildfires, but also now as companies are staring down the barrel of the uncertainty unfolding outbreak of coronavirus, we do think there is some softening ahead in the labor market. what has really helped the rba with strong jobs growth, and this is one of the other unknowns as to if they will get the unemployment rate down or they want it to and generate that inflation pressures that the rba has experienced -- or a

straily, i should say, has recorded a strong surge in labor force participation, which means the job growth we have seen has not brought the unemployment rate down as fast as the rba would have wanted. if we do see those high participation rates the same and that jobs growth fall, it's going to be very difficult for the rba to get the tightening they want or the tightening they need to have any chance of that inflation underlying in particular, starting to creep back up. shery: thank you, and we are seeing the aussie under a little bit of pressure as we get the latest statements. let's get a broader market check with sarah ponczek. sarah: markets have faded ever since the open. you have to remember that before today, we had seen the strongest week of the year. days of consecutive gains, so a cooling may have been expected. roughlyteepening, down

.8%, but same thing. before today, we had seen it up roughly 5% this week, the best since 2012, but let's take a look at the commodity complex as well. particularly as it pertains to oil, there has been much speculation over what opec will do if they act at all. people familiar with the matter have told bloomberg that supposedly opec officials have recommended an additional 600,000 barrels a day cut. you can see wti higher today. brent crude oil acting in the ,pposite direction, falling .6% as you can see. copper modestly higher. we are losing some of the gains we saw earlier in the session from copper as well, but we have seen much of a change around, a turnaround, i should say, for copper, representative of global economic growth, roughly flat on

the date as well. let's look at the msci world index because we have seen a from panic this week to complacency in record time. if you look at the msci world index, we have seen it higher every single day this week, the best week of the year and at the end of the u.s. session, closing at a fresh record high. back to you. shery: thank you. we are getting breaking news out of japan. they are finding another 41 cases of the coronavirus on that cruise ship that has docked. we are talking about the diamond princess which carries around 3700 crew and passengers. japan saying they have found an additional 41 cases of coronavirus on that cruise ship. co.'s starting to feel the effects of much lower demand from china due to this virus. in the commodities space, several chinese buyers have already reneged on earlier

purchase agreements. now declaring force majeure. what does this mean for the commodities space? >> it means prices are likely to continue to get depressed over the medium term. i would imagine not only commodity prices, shipping rates, which have been already slowing since september, are starting to show up when it comes to shipping rates as well. china's largest offshore oil producer is also the country's largest l&d producer. suppliers, it will not be able to take deliveries of these cargoes, and it is a similar story we have seen not just in lng but with the likes of copper, soybeans, meat getting stuck at a lot of these ports simply because of the transport disruptions that have been brought up by the virus outbreak there.

forecasts, we have ihf with their latest forecast for growth. what they are saying now is that number goes down by 2 million. goldman sachs sees nearly zero so it year on year, starts to really show up in a lot of these corporate examples. meantime, we are getting to the end of truly one of the most tumultuous weeks in years, certainly the most tumultuous start to trading in a lunar new year that i can remember. what are we seeing bounce back? >> equities have done much classes.an other asset

selloff so ifay you measure before the close, we .re still down the small caps, to answer your question, have recovered. we have seen a big rally. though, not recovered, and it takes us back to the macro story, is the bond market. the 10-year in china remains elevated with yields still remaining quite depressed, which kind of tells you the bond market seems to expect the economy to take a big hit. thank you so much, as always. let's get to jessica summers for first word headlines.

a burly gainsave after opec and allies discussed new output cuts but failed to reach a decision. a third day of talks recommend curbing production by 600,000 barrels a day to offset the impact from the coronavirus, but delegates did not set a date for a minister's meeting after russia asked for more time to consider the move. the virus has halted china's path toward overtaking hollywood as the top movie market this year. virtually wiped out ticket sales during the lunar new year .oliday theaters across the country have remained shut since january 24 and losses from the collapse of sales topped $1 billion. that is according to sinema consultants. the european union will decide on wednesday if they will impose sanctions on cambodia over alleged human rights violations. we are told the move would

introduce tariffs on all cambodian exports to the eu. currently, cambodia is allowed to export everything except weapons. eu imports from cambodia were ,orth only $6 billion in 2018 mostly through clothing and textiles. and there is excitement in the art world that jeff bezos might cash on a news collection. the buyer behind these high-profile art purchases in november was in fact the world richest man. jeff bezos has $125 million to play with and kicked off the year with a near to billion dollar windfall thanks to the share sale. 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. next, toyota up

reported higher than expected profits and is raising its full-year forecast despite a production showdown in china despite the impact the coronavirus could have on the auto market. this is bloomberg. ♪

>> this is "bloomberg markets: asia." saw a bounce back in the markets from previous sessions, but now we are seeing a little more caution out there. we are hearing japan has found 41 more coronavirus cases on that yokohama cruise ship. patients have been sent to hospitals in five different sectors. japan because toyota has reported i higher-than-expected quarterly profit and is raising its full-year forecast. market japanw, ihs and korea sales forecast manager. great to have you with us. of course, we have very strong

reports out of toyota, which really contrasted with some of those u.s. automakers. what was so positive about this company? >> i believe the u.s. markets obviously overall sort of down, but they've gotten new products and refreshments of the product. the rav4 and suv gaining traction. as well as lexus has been launched, as well as the first new small premium compact suv as y gain traction in the u.s. market. it is sort of the tailwind for .oyota in the u.s. market

i guess the question now is -- where does it go from here? we are getting the latest reports that japan has found more coronavirus cases on cruise ships. we are hearing those patients are being transported. markets really reacting to that and we know toyota has a big presence in china as well. what does the supply chain disruption that this virus could cause mean for the company? yes, more than 20 provinces and cities have been affected for the coronavirus already. some plants shutting down until next week. if they prolong the shutting down for the supply chain

network disruption continues, at least until the next week, that production.chinese the loss will be expected around ,00,000 units in total prolonged until the end of february. then chinese production overall to be aroundcted 800,000 units. if it continues to the middle of march next month, that could be boosting up for production, around 1.7 million units. when you look at the uber plant, area of china, the relatively higher japanese oleum market share rather than the internal region in mainland

china, so that may be affecting a little bit on that 1, 2, and , it could bet-wise mainly for electronic parts as well as interior parts as well as for the breaking parts, components, suppliers there. a severe impact could be coming down, not only for the chinese production market but also, therefore, supply for some of 's, and also for toyota and some of the japanese 's.um's -- oem that may be affected not only for production in china, but that could be exported to another region of the world.

long it takes.ow >> is one unintended effect we might see that this actually addresses some of the criticisms of capacity and chinese auto manufacturing? we have seen even as sales continue to fall, utilization rates continue to climb, so in a sense, does this consolidate or take away some of the capacity issues? but there is already room for the inventory, so the production recovery can be in delay, and if the coronavirus affects the economy as well for ,he latest economic forecast

that would be for the demand-side obviously coming market, so chinese down.ight be more slowing obviously, for the severe impact -- for the negative impact in quarter one as well, but gradually coming back after the second quarter for this year as well, so particularly for the chinese oem that has a huge inventory, so that might be some of the problem as well. >> thank you so much for joining us. checking in on the yen, we are seeing a move to the downside for the yen after we have japan saying they found 41 more coronavirus cases on the yokohama cruise ship. and 3700hat ship

people on board are currently under quarantine. 31 more cases confirmed today adding to the 20 cases it has had over the past two days, so 61 total positive texting for the virus and they have been transported to five different hospitals. lots more to come on the coronavirus. this is bloomberg. ♪

this is "bloomberg markets: asia." the impact of the coronavirus has hit a wide range of industries, even the movie business. beeners across china have shut for around two weeks. bloomberg -- our bloomberg media reporter joins us. can china still overtake hollywood at these rates? what happens to their global ambitions? global >> it is unlikely for china to surpass the u.s. to become the number one will be market now because the coronavirus outbreak happened during lunar new year, which is traditionally the most important moviegoing season in china. yearyear, the lunar new season accounted for almost 10% of the whole year's box office. cinemas across china have shut down and people avoided going to crowded places.

filmmakers delayed a lot of blockbusters that were scheduled to be released during this season, so box office looks pretty much nonexistent. analysts are estimating the cost over lunar new year box office would be about one billion u.s. dollars. if the closure of cinemas lasts longer, the loss will be deeper. china is hollywood's largest willeas market, so how this affect hollywood? >> potential hollywood blockbusters are scheduled to be released in march in china simultaneously as they will be released in the u.s., but now it is looking more uncertain if these films can really be released in march or if they need to be rescheduled, so this

will affect hollywood's film .elease schedule in china if the cinema closure last longer, there will not be enough time for hollywood to achieve what they want to. for companies like disney, this is not just about movie businesses. their theme park in shanghai has hong kongwell, and has already been hit by months of protests and declining numbers of tourists, so disney executives said earlier this week that the theme shutdown will cost about 175 million dollars on their revenue in the current quarter. our bloomberg media reporter in hong kong, looking at how extensive the impact and the economic impact of the coronavirus is becoming. ,efore we get to the china open

shanghai and hong kong opens in the next hour. down aseeing the nikkei 61 total confirmed cases of the detectedus have been on the diamond princess cruise ship. we are seeing upside, though, when it comes to kiwi stock. are seeing futures taking a hit on news of the coronavirus spreading on that cruise ship. the offshore yuan also weakening after stabilizing on more positive news on u.s.-china tariffs. next up, an exclusive interview with the philippines central bank governor. this is bloomberg. ♪ hi! we're glad you came in, what's on your mind?

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welcome to bloomberg markets china open. i'm shery ahn. haidi: we are counting down to the open of trade in the chinese mainland and in hong kong. shery: the coronavirus claims more victims as scientists rush to find a vaccine. china criticizes other countries for travel bans and stoking panic. haidi: commodities real from the latest blow. the virus has widespread implications for the global economy. shery: a death rate decline. we speak to china's ambassador to the european union. ♪