to bloombergme markets. riggs in san francisco with paul allen in sydney. coming up in the next hour, a morbid reminder of the death toll as the coronavirus outbreak surpasses that of sars. howill get a picture, plus it is all affecting markets. plus, remember the equifax breach that exposed the personal data of hundred 45 million americans. the department of justice has no

charged military members with the attack. up 88% thistock year with a resumption of china.ion in we will check valuations. marketso say, u.s. prepared to brush off fears over the coronavirus. --cks in the text markets chipmakers are leading, dropping about 1.5% today. sky works getting an update on the street. the bond market is telling us a very different story. you now have an inverted yield curve on the three-month 10 year as we await jay powell's message on the state of the economy.

crude as well, sort of in a bear market here, closing below $50 per barrel. those two days. andare well below the 100 200 day moving averages of crude. paul: the gains in the u.s., a fairly bright start in this part of the world higher by about 1/10 of 1%. the futures looking very positive, looking for again nikkei futures are kind of flat. the aussie dollar is really struggling to hold above the $.67 u.s. level. the yen, unchanged. on aussie 10-year holding 1%. let's get to the coronavirus. a new estimate from researchers in london is putting the

mortality rate at 1% meanwhile, president xi jinping made his first appearance after the death by the chinese doctor who first warned about the outbreak. let's get to selina wang in beijing for more. >> the death toll has reached 910 with more than 40,000 cases. you are starting to see some stabilization in terms of the reporting of cases. some scientists predicting it could peek in the coming weeks. mortality rate at 1%. they are making that estimate based on what will happen once all of the cases are accounted for. province, theei fatality rate may be 80% for patients with severe symptoms.

they are estimating that the typical time between the onset -- you are and death seeing more cases around the world with four more cases in england bringing the total to eight. allowing health -- health authorities to keep people in quarantine if they are considered a risk of infecting others. british airways is halting flights to mainland china until march 31. seen of manufacturers have their supply chain is disrupted. we have seen production halted you are starting to see some manufacturers, with ford resuming production at its supplier plant, some partners .ocated in hubei

tesla is reopening its plant near shanghai on monday. paul: through all of this, xi jinping has been rather conspicuous with his absence, but he has made a rare appearance. this is one of the rare appearance since last month. it is the first public appearance after the death of the doctor who became a hero after local authorities were warning about the virus from early on. you saw them released torrents of anger on social media and it crystallized frustration with response.ment's early they sent someone from the communist party's top body to

investigate the death. -- now, state media is treating this appearance as a demonstration that he has a central role in directing the government's response. you saw him wearing a mask, also trying to show signs of empathy. to chinahank you correspondent selina wang in beijing. i want to head over to hong kong. yvonne man is there. ground?the tone on the yvonne: we just had reports that hundreds of people had to leave this building, evacuated out of safety precaution. the most recent case came from the 62-year-old woman lives

there on the third floor tested positive for the disease. below the manctly had contracted it earlier. had contracted it earlier. they are investigating just how this virus was spread. pipe in discharge the bathroom was not properly sealed. that could allow the virus to be carried around the building, if a person turns on the exhaust fan, the air from the drainage system could have been filtered through. quarantined atbe camps and those with symptoms

will be sent to the hospital. but now, this brings the total to 42. bloomberg'sk you to yvonne man. coming up, the latest market developments and forecasts. this is bloomberg. ♪

paul: some breaking news out of china's hubei province. the death toll now top in 1000. 1000.ping reporting an additional 73 deaths. an additional 2097 coronavirus cases. the death toll now standing at 1011. let's check in on the first word news. budgetleased his latest

with a plan that has deep cuts to social programs but raises spending elsewhere, potentially pushing government that above $30 trillion in the next decade. it raises debt partly because of tax cuts and heavy expenditure on defense. the budget has no binding power as spending is determined by congress. the primary is taking on a new dynamic with bernie sanders winning with voters who have decided. buttigieg in second blaze and klobuchar in third. it is bad news for elizabeth warren and joe biden, in fourth and fifth. calls for iran to hand over the black box flight recorders the plane shot down any wrong last iran lasthut down in

month. state media say iran has no current intention of releasing the flight recorders. global news 24 hours a day on air and at quicktake by bloomberg, powered by more than 2700 journalists and analysts in over 120 countries. this is bloomberg. paul: thanks. as the global death toll the u.s.avirus tops 1000, equities still climb despite a decline in asian stocks. theng to figure out whether contagion is stabilizing. head of multi-asset strategy evan brown thinks the impact will be short-term. time.a critical question, how long does this last.

the market seems to think it is looking at a 2003 sars timeline but what if the markets are wrong. evan: i think you have it right. it is about time more than severity. the longer this goes on, the longer you have companies that remain shut, the more you worry about any knock on effects global supply chains. ands difficult to take this look at sars because china is a much bigger economy. there are clear risks. markets suggest a v-shaped recovery is already been priced in. you mention the supply chain. how long will it take for these supply trade issues -- supply chain issues to work its way through into the economy?

evan: today, we had some factories coming back online but it looks like it is going to be a progressive development rather than one discrete event. wille next few weeks, we hopefully see more and hopefully china is largely back online by march or so. i think you are seeing improvements in u.s. stocks. if you look around the rest of the world, you referenced chinese stocks earlier. , commodities.ts i think the market in a broad sense showing more concern than just u.s. equities. paul: you have the stocks with each acres most exposure coming from china -- stocks, the chip chipmakers with

more exposure from china. mixed bag too be a me. evan: i think the market is pricing in that this will be a short-lived shock and you will growth rebound in global we all expected take effect. it is that underlying optimism that is keeping these stocks going despite the fundamental moorings. on, theer this does go longer it takes for china to get fully back online, then i think people will have to start marking down there estimates a little bit. when markets get fearful , we all scream, go to cash. outside of that, where do you

tactically position yourself to take advantage of this market disruption you see. evan: i think what u.s. treasuries have shown us is that they remain the key safe asset in the world. people don't want to be buying 10 year treasuries at 2%. when you need them, they are there to protect you. we are definitely very much of the view of diversifying your portfolio. but, tactically, we like to use a currency overlay. we have been short the australian dollar along the japanese yen that is a nice overlay to put across your portfolio to hedge against some further negative news coming out of china. paul: have got the dollar spot index up about 2% from the start

of the year. is this the time for emerging markets to shine? evan: i think it will be the time for emerging markets to shine once the dust settles a little bit. i think everyone is in the process of lowering their growth forecast for the rest of the world. growthu look at difference between the u.s. and the rest of the world, that will be moving in the dollar's favor. like this virus is kind of running its course, which i think will take a few weeks, i think confidence will return and you will start to see andle begin to seek value some of the emerging-market currencies. we are looking to pick up some value especially in latin america.

the colombian it chilean peso are quite oversold at this point. much for joining us. still to come, equifax. the u.s. has charged four hackers in the data breach. our conversation with the ceo is next. this is bloomberg. ♪

taylor: the u.s. justice department has charged four members of the military in china for breaking into computer networks of credit reporting from equifax. they are accused of stealing data have about 145 million americans. >> for years, we have witnessed china's voracious appetite for the personal information of americans. marriottsion into hotels and health insurance

companies, and now the wholesale theft of credit and other information from equifax. this data has economic value and china'sefts can feed development of intelligence tools and targeting packages. taylor: joining us now from atlanta, the ceo of equifax, mark begor. how do you respond? event in 2017r had a significant impact. the attackersat were the military of a foreign government really raises the stakes. it is not just equifax, it is multiple companies. defending against a foreign government is a lot different than defending yourself against a hacker or someone trying to

steal credit card numbers. taylor: what are you doing to make sure those 145 million americans are more protected now than they work in 2017? mark: after the cyber event, we could have spent a couple hundred dollars to enhance our security -- couple hundred million dollars to enhance our security but instead we made a bold move to enhance our technology. we launched a $1.25 billion investment in our security and technology. be anour commitment to industry leader and we protect that data entrusted to equifax. paul: i am sure that equifax did not expect the hack back in september. how confident can you be that the attacks this time will morent future maybe

sophisticated attacks? having this information come out, it really does raise the bar. we are focused on having the latest technology, the best protocolsd the best make sure we can defend ourselves against an adversary like a foreign government military arm. we are also working to be transparent with our competitors, our customers, the government about these attacks. collaborationires because of the kind of hackers we have today. hackedhe data that was is still unused. presumably, it is still out there. is there concern that this could be used maliciously? mark: we have watched that closely. there has been no evidence of

the data being used for identity theft purposes. the attorney general saying, at least the thinking is, the reasons why the data was taken by china, why they took the marriott data, is really to build up databases on americans to use for spying and other government type purchases. it is very different from a hacker stealing credit card or social security numbers to open up an account and someone else's name. a announced last summer settlement of a lawsuit in litigation with the attorney general of the united states. that included a very large consumer fund, fighting free consumer monitoring for up to 10 years so they can watch their credit file to make sure nothing is happening.

taylor: there is a lot of concern about the delay. the hack was in may, you found out in july, you notified the fbi in august and consumers did not know until september. mark: i was not there when it happened. i have been on the ground for about 22 months. thisng back, i think attack was the largest ever. what the team focused on at the time was making sure we were going to notify consumers who were impacted. going forward, we would want to move as clear as we can if it never happened again and make sure we are transparent about what is happening. taylor: knowing what we know now, where does china rank on risks with other countries in cyber state warfare? mark: if you talk to the experts

which, you can imagine, we spend a lot of time doing. all the countries you talked about. china, russia, iraq, north korea, iran, those are countries we all worry about. that is why this bar is so much higher now, what you see the military arm of the foreign government hacking a company, stealing consumer data. it is really an attack on consumers in the united states. that is why we are investing so much money and effort in technology security transformation to make sure we have the best technology. we set a bar that we are not going to have good security. we would have interest rate leading security. and: building up security technology is one challenge.

there is another challenge, restoring the faith and trust of customers. mark: that is one that we have been working hard on while doing this transformation. it had a significant impact on our company. historically, we grew 6-8 percent. slightlywe were negative, down about 1%. we have heard back the trust of ed backt -- we have earn the trust of our customers and it comes back to that investment in security. we reported third-quarter results thursday and you will see our continued process moving the company forward and back to where it was before. when i joined lynn 2018, i was consistent that it was not a matter of if we return to our historical growth rate, it is only a matter of when. ,aul: equifax ceo mark begor

thank you for joining us. still to come, we continue to cover the coronavirus in china. 1000.ath toll tops and, how this is affecting companies and the global supply chain. this is bloomberg. ♪

paul: welcome to "bloomberg markets." i am paul in sydney with taylor riggs in san francisco. europe finished down, that u.s. equities and treasuries have rallied. will that carry through to asia-pacific? david joins us in hong kong. what are you looking forward to today? david: it looks like the momentum will carry through. the equity markets, futures are pointing up. . note of caution -- ahead of jay

powell's testimony in front of congress, you are looking at a possible inversion of the three and 10 year yield curve. an -- back of the other thing i want to point out before i go is the last 10 ,ays or so, 10 trading days markets have been trying to --ure out how much the actually is that's about to come through. wille next 90 minutes, we get the first tangible measure of what that weakness might look like when south korea reports exports. china is their biggest customer and was virtually shut. that will give markets a benchmark whether we have overshot the target or not. taylor: thank you to bloomberg's david ingles.

great chart on the terminal. the impact of the coronavirus on the global supply chain is prompting some companies to accept changing demands and reconfigure production lines. for more on how companies could fight the fallout, we are joined leader.bal product as you analyze the impact of the coronavirus, what is the impact on the supply chain? we keep hearing it is going to be a big, but it is still early to tell. >> three components. the immediate impact is very large, impact directly on revenue. in the medium-term, folks are going to start reconfiguring how they think about their supply chain. we focus globally on strategic operations and how should people manage their supply chains. how do you get from being agile

and fast and ready to also being resilient? so when these events,, how do you react? that's where a lot of is being spent in supply chains today. taylor: how do you react to remain agile? >> two components. one is the ability to start sensing in terms of risk. the second is understanding the components of your products and where they come from. there is a lot of attention paid to tier one and tier two. for apple, that might be foxconn. beyond that, who are the suppliers' suppliers? that's where the risks are larger. you fromsher can stop rolling out a large washing machine. that's how we look at it. large amounts of data, applying artificial intelligence, and having the ability in manufacturing, distribution, and

transportation to react. paul: we did see a scramble to reorganize supply chains as the trade war neared its peak. now we have the coronavirus. is diversification of supply chain something you would expect to become more common after these shocks? >> fundamentally we think all supply chains are getting reconfigured. one of the approaches is a classic barbell strategy to borrow a term from your world of financial services. how do you have 80% of your core product running through your standard once? 15% cost between 5% to advantage on the basis of how they operate. on the outside, 20% of your product coming from other locations. it is dependent on the product you are manufacturing. we find that typically our clients ask us, where else can we go? in the area of clothing, it

might be vietnam. there are a wide variety of places. everybody is getting reconfigured and barbell is an interesting way to protect your supply chain from a dramatic downside. swans same time, the gray allow you to get a higher payoff from your supply chains. , holdingterms of costs inventory became unpopular due to the expense, but also due to these two shocks, trade war, now coronavirus. his holding inventory going to be fashionable again? >> absolutely, because the payoff is quite large. as these shocks continue to come through the global marketplace. cost, to 3% additional ability to serveity

your consumer better, your customer better, and be known as somebody who has the ability to react. during the times when we have weather emergencies, there were some great retailers who would reposition their stocks. that allowed them to better serve their consumers. that was an activity nobody would take on, but now they do. factorsdd environmental , the payoff is definitely factors , the payoff is definitely better in terms of expedience and bottom-line revenue, top line revenue and benefits. taylor: what are you seeing in terms of sectors able to be the most nimble in diversifying their supply chain and not be all concentrated in china? >> it is sector player, also a size play. ,he bigger players, the apples have the ability to diversify because they can open a plant in any country they want. the sectors that are more in consumer-products areas,

backpacks, you can manufacture in different places, clothing. areas like heavy manufacturing, washers and dryers, you still are stuck with one country because now you have the ability to get iron ore all the way to manufacturing a washer or drier. it is sector by sector. we work with a map that allows you to decompose this and understand the risk at every component level and apply techniques. tomorrow i am on my way to mexico to talk to folks about how they can bring more flexibility and resilience in the marketplace using these tactics. taylor: you talk a lot about using data and ai in your research to sense when a customer's behavior is shifting and a company is trying to increase the size of their basket. walk me through that more. >> let's take this classic

example of the flu virus. foundhered data on it and the flu virus in the u.s. starts out on the east coast, goes to the west coast, then back and forth. if you track that carefully through combinations of searches , medical trips, you have the ability to know where you should push the stock for flu related things. you also start packaging things like moisturizers. an unrelated product, but an important one. you start creating care packages that a retailer can provide. another element that is not related, gatorade would be an important element to mix with your moisturizers, because you have the ability to bring up these product bundles that you couldn't have worked on prior to ai having this influence on the

business of supply chain. tierney --u gandhi, kearney global product leader, thanks for joining us. seems to be no end in sight for teslas surge, despite concerns about the coronavirus. more details next. this is bloomberg. ♪

taylor: an update on the first word news. >> the coronavirus death toll has risen past 1000 in china. there are almost 41,000 cases worldwide, the most in the chinese province where the outbreak began. the who is monitoring 10 chinese provinces for signs they could become additional hotspots. xi jinping visited a hospital in beijing and said the impact on

china's economy will be short-term. the quarantined cruise liner has seen virus cases almost double, with 65 new cases confirmed in the past hours. princess cruises says most new cases are japanese passengers with others from the united states, australia, and the philippines. the liner has the most infections of people outside china. indonesia will boost spending of about $9 billion in villages and schools to spur growth and counter the impact of the virus. the finance ministers as the money will be given out in the coming months ahead of the original schedule. southeast asia's biggest economy expanded at its weakest pace in four years in 2019, in part because of the trade war. global news 24 hours a day, on air and @quicktake by bloomberg, powered by more than 2700 journalists and analysts in more than 120 countries. this is bloomberg.

paul: thanks. tesla shares are back on the rise after the electric vehicle maker resumed production at its china factory. the gains follow a big pullback last wednesday. 2020,up 88% so far in advancing at least 10% in each of the past three weeks. that adds $33 billion to its market cap. let's get to bloombergs david welsh -- bloomberg's david welsh. tesla has had parabolic rallies in the past. there was one in 2013 and it managed to hold on. to the fundamentals suggest it can hold onto this one? david: it could be hugely overpriced or could be valued the way it should be, like atac stock.- like a tech that is how investors have been

looking at it, or at least a growth stock. , withoutt is elon musk the distractions, like smoking camera, has focused on getting things running right. they have got the shanghai plant despite thepite the coronavirus. he has got the model y coming out earlier than everybody expected. those who think it is a growth stock see a lot of reason for growth in china with new vehicles and production, and in europe with production in berlin. there is still hope for the stock, even though profit-taking knocked shares down last week. paul: let's talk more about the production in shanghai, getting going as early as they were permitted. what does this say about tesla's supply chain? david: they must have pretty good storage of parts and really must have gotten this plant ready to roll. general motors, for example,

they are following government guidelines, but are not going to resume production for another two weeks and even that is rolling things up. they say they are going to gradually get their plans in china running. it maybe two weeks starting on the 15th where they will make that happen. tesla says they will get the shanghai plant going quickly. that is good news and did spark some of the rally today. taylor: some concern is the big rally in the stock is driven by china, both on the demand and production side. does this production lapse have any impact on the 500,000 deliveries that is the reason the stock has run up so much since the earnings? david: it shouldn't because it was not down that long and they should be able to make that production up. they were up -- fourth-quarter

up -- fourth-quarter earnings, they reported about 1000 cars a week. they were not fully there to begin with, so the loss production -- let's call it early ramp-up production -- they were not at full line speed. that will be some ways away. they have not given clear guidance. i think whatever they lose they can make up maybe with overtime or as they speed the lineup in the next few weeks. really should not hurt them that much. i think that's what the rally is about. people see her that with this virus, you could have shutdowns in tesla's and other company's -- companies' plants that go on for weeks and months. it does not look like that much production will be lost. taylor: people were trying to justify the market stock, a 1000 other cap. professor talk about to justify that, you need a tenfold increase in revenue,

which as of 2019 was still under $25 billion. what time is it realistic to get a tenfold increase from $25 billion in 2019? david: that's selling a lot of cars. even though they have new china will be a big one, they are facing tariffs and local production. europe, they will have real demand coming out of the plant in berlin. they will get a lot of growth. tesla's shares are being valued like a growth stock, atac stock, but there are differences chtween tesla and what a te company does. is this an auto company or really a tech stock? i would argue it is still a car company, but we will see. their growth margins are almost a third what apple's are. a long way to go before this is really big tech stock, but there

is a lot of growth ahead. i think tesla will see a boost in revenue that will continue to drive shares for quite a while. paul: it was not that long ago that people used to make sarcastic remarks about elon time. is that credible now? david: that's the main thing that has really pulled the shares up. it was not that long ago they were trading below 300. even though they made great products and have this terrific brand and a cultlike following, everything was delayed. even when they hit a deadline, they didn't get production up in quite the numbers they said. the model three rollout was a debacle, elon calling it production hell. that seems to be behind them. they got shanghai up and running on time. the suv ahead of schedule by six months.

forget about meeting a deadline, they actually beat it. that has investors enthusiastic, that they stopped with the silliness and focused on operating the company, doing a pretty good job so far. paul: bloomberg's -- taylor: bloomberg's david welch, thanks for joining. for more coverage on tesla, on wednesday we have adam jonas. plus, everything you need to know about electric vehicles. catch the premiere of our special program, ev's on the brink of change, this friday. coming up in one more day, democratic candidates crisscrossing new hampshire in a final push ahead of tuesday's primary. we will preview what could happen in the polls. this is bloomberg. ♪

taylor: let's get a check of the

business flash headlines. foxconn has resumed some production at its main iphone factory in the province that neighbors the virus had province. local officials inspected monday to assess the company's virus prevention measures. it is not clear how many workers returned to duty, with foxconn changing its previous plan to postpone operations and instead announcing a strategy to stagger the return of workers. alibaba is planning to waive some of the fees it charges for merchants to list products to offset the impact of the coronavirus. it says it will halt fees for the first half of the year. the company mainly earns revenue from ads. the stock has dropped on concerns about the long-term impact of the virus. burger king is temporarily -- has temporarily closed half of its 1300 restaurants in china. said most ofrator

the closures were driven by government regulations and cases where the mall where the restaurant was located was shutting down completely. the operator's ceo told bloomberg it is too early to predict the sides of the impact on earnings. italian lender unicredit is set to add 6000 more jobs and branches in its home market, part of a three-year efficiency project through 2023, part of a wider campaign that affects 9% of the workforce. the ceo says the job losses well, -- will come mainly through early retirement and in conjunction with unions. conglomerate fell the most in more than a decade after a surprise drop in earnings last quarter. net income through december was $43 million after the company

took a charge on some investments. analysts had been inspecting a profit of about $130 million. india's slowing economy is set to grow at the weakest pace in about 10 years. volvo's chinese owner is considering combining the company with its hong kong listed company. the merger would be listed in stockholm and hong kong and be driven by the owner's conviction that consolidation is the key to auto industry success. he bought volvo in 2010 and the company has doubled sales, growing rapidly in china. he is the largest shareholder in daimler. we are less than 24 hours from the new hampshire primary. the latest quinnipiac national paul has bernie sanders in first with 25%, followed by joe biden and michael bloomberg. for the latest, i want to head to manchester, new hampshire, and bloomberg's wendy benjamin z

is standing by -- wendy benjamin son is standing by. what do we know? wendy: polls open first thing tomorrow morning. it looks right now that bernie sanders has a sizable lead. pete buttigieg is in second place in most of the polls. after that it gets really murky. it is hard to tell who will come out on top. it does not look like a good day for joe biden, worrisome for his campaign. paul: what is it going to mean for joe biden if he does not get a top two finish? could be quite terminal for him. wendy: it could be, although his campaign has said they never counted on these two states. these states are 90%-plus white voters and tend to be a more liberal than many places in the rest of the country.

after this is nevada and south carolina, both this month. that is when nonwhite voters have their say. there is a heavy latino population in nevada and 60% of the democratic primary electorate in south carolina is black. biden had some strength there, although the quinnipiac poll also showed his support was dropping in favor of tom steyer and michael bloomberg. taylor: who else is dropping is elizabeth warren. what is she saying about the drop in the polls? wendy: she is saying she has the money to keep going, to survive through super tuesday, which is march 3, when 14 states and territories, including california and texas, all vote. she thinks she can hang on until then. wereshe and joe biden projected to do far better than they are in these two states, and she does not have a lot of

strength with nonwhite voters, so we will see what happens to her. paul: we have bernie sanders leading the polls. he did very well in iowa as well. the broader question, is he the man for the democrats to take on president trump? wendy: very good question. he thinks he is, and he has begun to -- we have a lot of noise in our newsroom. he thinks he can beat donald --mp, and he has also said today he had this line. if you don't agree for me on medicare for all, find. if you don't agree with me on foreign policy, fine. a if you agree i won't lie to you every day, he will be a better alternative than trump. that is a hard sell for a lot of voters. paul: bloomberg's wendy benjaminson, thanks for joining us. we should note michael bloomberg

is also seeking the democratic presidential nomination. he is the founder and majority owner of bloomberg lp, the parent company of bloomberg news. we will have special coverage of the new hampshire primary tuesday from 7:00 p.m. eastern. this is bloomberg. ♪ sometimes your small screen is your big screen.

and with the xfinity stream app, 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. 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. heidi: good morning. to bloomberge markets: asia. >> our top stories, the coronavirus death toll tops 1000 in china. hubei has almost 32,000 cases. the world health organization is monitoring the outbreak of workers' returns from the lunar new year break.

the cruise liner quarantined in yokohama has seen virus cases almost doubled to 135. the ship has the most infections of any place outside china. let's take a look at the start of trading. it is a holiday session today. japan is closed, public holiday there. trading in a has opened up. we are seeing an upside, .1% higher. alphabetically, companies are coming online for trading in australia. s&png a strong lead as the hit another record high in the u.s. session. the investors looking past rising fatalities and coronavirus infections. kiwi stocks also up by .4%. flat when it comes to u.s. futures trading. let's get you the first word news. >> president trump has released

his latest budget with a plan that proposes deep cuts to social programs but raises spending elsewhere, potentially pushing gross federal debt above $30 trillion over the next decade. raises trillion plan debt partly because of tax cuts and expenditure on defense. the budget has no binding power and federal spending is determined by congress. tuesday's new hampshire primary is taking on a new dynamic with bernie sanders winning over voters who have made up their minds, but about a third still to decide. polls put pete buttigieg in second blaze. buttigieg and sanders essentially tied in the iowa caucuses. bad news for joe biden and elizabeth warren, in fourth and fifth. ukraine is calling on iran to hand over the black box flight recorders from the boeing 737 ehran.own outside t

the islamic republic is under pressure to determine why the plane was targeted. iran has no intention of releasing the flight recorders. vote counting in new delhi starts late tuesday with the modi government hoping to reverse recent losses in other state elections. result docations of a about three hours after county begins. other testeen as in of the controversial religion based citizenship law that sparked by that protest across india. global news 24 hours a day, on air and @quicktake by bloomberg, powered by more than 2700 journalists and analysts in more than 120 countries. this is bloomberg. haidi: thank you. to the coronavirus latest. the death toll in china has climbed above 1000 with the providence of hubei reporting an

additional 103 fidelity's as a new report estimates the fertility rate to be about 1%. rate to be about 1%. >> even though we are seeing the death toll surpassed 1000 with cases continuing to rise, new research is expecting the fatality rate could fall to 1%, according to the imperial college of london. it is an estimate of what will happen once the undiagnosed cases are accounted for. they are estimating the typical time between the onset of symptoms and death has been 22 days. more countries are finding new cases, with former patients in england testing positive, bringing the number of cases to eight. the u.k. is imposing regulations allowing quarantine. british airways is extending its halt on flights to mainland

china until march 31, with all flights to beijing and shanghai canceled. shery: some factories are resuming operations. we saw tesla rising on news there shanghai plant would reopen. what do we know? >> we do have some factories reopening, but not a full resumption. the semi conductor citigroup is estimating just 70% of the workforce will start this week. many plants -- many auto plants still remain idle. tesla restarting, ford. other plants like honda and volkswagen are saying they are going to reopen later this month. foxconn, which makes the majority of the iphones, saying they are resuming some production monday, but not clear how many workers are returning. the company previously told workers to stay away from headquarters until further notice. you can imagine the logistical challenges involved here.

foxconn had earlier warned investors the challenging task of getting enough workers, despite the widespread transport blockages, putting thousands of people into quarantine, and also the potential nightmare scenario of an on-campus epidemic, could shut down production altogether. hasy: we know xi jinping taken criticism for his handling of the crisis. he appeared at a beijing hospital. is that the latest in his attempt to win back public opinion? >> that is one way to put it. prior to this, it appeared xi was retreating from these -- from the center stage. state media has portrayed this -- ifas a demonstration you take a look at the images, he is wearing a mask, getting his temperature taken, a rare

instance of mingling with the public. it also appears to be a show of empathy to ordinary people's lives who have been turned upside down. it is worth noting it is the first public appearance since the death of the doctor who became a local hero after being reprimanded by authorities for trying to warn of the virus early on and succumbing to the illness he was trying to expose. that unleashed a torrent of grief and anger, exposing frustrations to the government response. we have seen beijing trying to stem the outrage, sending in the communist party's top disciplinary body to investigate his death. xi mingling with the people really is a sign of the communist party taking this outrage seriously. haidi: a lot of the responsibility will fall on president xi jinping. thank you for that, our china correspondent in beijing.

the world health organization monitoring the spread of the virus across 10 provinces in china. one doctor says there is a need to balance economic advancement with containing the outbreak as people returned to work. >> when people are coming back to work, there is a possibility transmission. in deeplyh depends on how is the return to work. we are watching this carefully. therenot clear yet that has been a full return to work. majorample, a return to construction projects. beijing, there is a strong suggestion that companies that allow their workers to do teleworking, to use the telephone and internet, this is

still being encouraged. one realizes the controlled measures have to be a balance between maintaining some essential economic activity and economic development, because if it is constrained, that can lead to important health consequences . reduction in quality of life, even increased death. there has to be a balance between the economic activity and the containment measures. we are hoping this balance will be achieved and allow the decline to happen. shery: china still facing shortages of medical supplies. what are they doing to alleviate the problem? >> the shortages are very strong , and it is painful. not supply and logistic, it is more a technical

support agency. there has been an activation of the u.n. system. just a few minutes ago before we had this interview, we were talking with the rest of the u.n. system. our colleagues at unicef. i know other agencies are involved in procuring and helping to meet the shortage. the shortagegely is being met, or at least strongest efforts to meet the shortages, is through mobilization of resources in other provinces, as well as the ramping up of production. shery: that was the world health organization's china health representative. be sure to keep up-to-date on the latest developing coronavirus headlines. run the function on your bloomberg.

you will find our quicktake landing page with the latest global figures from the cbc, headlines from the -- from the cdc, headlines from the bloomberg newsroom. haidi: more on the coronavirus in a moment as dan hirsch joins us to look at the impact of factory shutdowns on global automakers. shery: next, looking for a rally in virus hit asian stocks. this is bloomberg. ♪

haidi: this is bloomberg "markets: asia." impactlet's look at the of the coronavirus on the markets. while the s&p 500 hit a fresh peak last week, concerned about

the virus has helped push asian stocks to their cheapest level ever relative to u.s. equities. the asia-pacific index is down 3% since its high in january. joining us now is louis lowe. we are talking about cheap asian stocks, but if you put it into perspective, it is trading higher and above its five-year average. it is cheap relative to other regions, but not against what it was before. would you still find value in asian stocks? >> thanks for having me. generally is not as cheap as the multiples would indicate. you do have to peel back the onion and look at things on a sectorial basis. continuing on the theme of auto stocks, i heard earlier on the

program that auto stocks are under pressure and we are seeing south korean auto stocks, because they derive a lot of auto stocks from china, they are seeing supply disruptions. this is against a backdrop of releasing a number of popular suv's. we are also seeing some chinese auto stocks, a few of them have production facilities in wuhan. those have seen disruptions as well. another area where we are finding value is in gaming stocks in general in asia. whether it is casino gaming companies in singapore, malaysia, and the most effective being macau, those have a large proportion of the visitation from mainland chinese. going back to what you said earlier, in a lot of areas like consumer and health care and technology, those have not seen much of a valuation correction.

shery: let me touch on the automakers you mentioned. we are seeing supply chain disruption, but the market does not seem strong, especially when it comes to the chinese market. the u.s. market, we are not seeing recovery, especially with the outbreak. is it time to jump into these stocks because they are cheap when the market does not look like it is recovering? >> i think when we are looking at auto demand in china, it is isa slowing trend and there gravitation toward electric vehicles. some manufacturers that have specific production facilities in wuhan, could be 20% to 30% of their production, some of the major automakers. it seems we are having some technical difficulties. brandeis investment partner

manager louis lau. we started talking about the evaluations that have come down when it comes to asian stocks. we are at the cheapest ever level. asian equities have never been this cheap compared to u.s. stocks. the s&p last night hitting another record high, even with the coronavirus and corporate impact playing out as the top story in asia. past thattors looking and focusing on what's expected to be a pretty robust earnings season. coming up, in other event impacted by the ongoing coronavirus threat. we will be live at the singapore air show. concerns about the virus causing some companies depaul out of the event. we will have the details live in singapore. ♪

>> critics said the bank of

england was politicized. >> the guide i have always used is, what is my job? and realizing it is political not to act. haidi: this is bloomberg "markets: asia. bardi says a vaccine for the coronavirus could take one to two years, despite the pharmaceutical giant taking just six months to create one for swine flu. the ceo told bloomberg the challenge will be coordinated a longer-term response to the epidemic. >> it has been remarkable to see the response of the chinese government, in terms of the longest quarantine we have seen in modern times to tackle this epidemic.

we have these moments, these pandemics or epidemics -- sars, rs, the middle east respiratory syndrome. in each case, we galvanize a massive response, but the pandemic fades, then the response goes down and the work stops or really diminishes. how do you maintain the effort in those gaps? how do you create the manufacturing capacity or scientific know-how to respond in the next moment? i am not sure we have tackled that. there have been many efforts, but this has been the repeating history. >> where should that leadership come from? government, the world health organization, private companies? >> there are very exciting efforts. there is a group looking to bridge these gaps. i think longer-term, we do need

government, whether it is the g20 or something along those have, to come together to some sort of sustained pandemic response over time. otherwise we will have these moments and will be scrambling to find a response after the outbreak starts. >> do you see it changing? >> we will see. this has been an interesting moment. mayscale and seriousness will motivate a bigger long-term response. >> you were in charge of vaccines for h1n1. it usually takes five or six years to develop a vaccine. you did it in six months. >> that's because influenza vaccines are an area we understand very well. with a very concerted effort, the company is currently working on it hopefully can do something within a year or two. we will do clinical trials, then get the vaccine. this epidemicood,

will have been controlled. what will we do after that, i think that's the question. novartis ceoas the speaking with francine lacqua in london. the timing could not be worse for asia's biggest air show. the outbreak has prompted scores of companies and executives depaul out of the singapore air show. haslinda amin is still there on the ground in singapore. what do we know about how much this event has been impacted? haslinda: you said it, the timing could not be worse. wen before the coronavirus, have seen a slowdown in passenger numbers. growth, we saw passenger at 4%, 7% the year before. given the coronavirus, you can only expect those numbers to be

even weaker. the coronavirus has impacted attendance at the air show. -- it is aly in 2018 biannual event -- we saw more than 50,000 partisan vents. this time around is expected to be much less. organizers have refrained from giving a number. when it comes to trade participants, we are seeing a pullout of international attendees, including the likes of raytheon. by my right, lockheed martin. traditionally you see the chalet being full of life, lunches, negotiations. this time, it is just a shell. lockheed martin, the maker of the f-35, has pulled out of this air show. to put it in perspective, it was ok initially until singapore raised its response level from yellow to orange, the second

highest level, and the same level as the sars outbreak. that spooked attentional attendees. the other potential concern that's impacting sentiment is and going -- also boeing airbus, playmakers under a lot of strain, given the corruption scandals and grounding of the max plane. we don't know yet when it will start flying again. a very cloudy backdrop, this air show is being held. shery: give us more on how much impact this outbreak is having on singapore. you mentioned the alert level being raised. we have heard from the central bank that they are willing to tolerate weakness in the currency trading. in terms of the confirmed cases, we have more than 40 in singapore, one of the

highest outside china. also i guess the alert level has ed, because some cases outside europe have been traced back to singapore. a conference was held at the grand hyatt in january and 90 of the participants were foreigners. some cases have been traced back to them. there has been a lot of apprehension. that thehere say organization of this air show has been a calculated risk. shery: haslinda amin with the latest from the air show, not to mention the impact of this outbreak on singapore. stay with us because we will have more from the singapore air show, including thoughts from the boeing vp of corporate marketing. unicredit isr

expected to cut 6000 jobs and close 450 branches in its home market as part of a three-year efficiency plan through 2023, part of a wider campaign that affects 9% of the workforce. the ceo says the job losses come mainly through early retirement and in conjunction with unions. haidi: the indian conglomerate fell the most in a decade after a surprise drop in earnings. net income through december was $43 million after the company took a charge from investors. analysts had been expecting a profit of about $130 million. india's economy set to grow at its weakest pace in 10 years. next, live in hong kong with the latest on the virus. this is bloomberg. ♪

shery: sprint rising after hours, surging 40% on a report a u.s. judge is expected to rule in favor of the sprint-t-mobile merger. this would be a $26.5 billion takeover. we have not seen the doj and fcc officially signing up -- we have seen the doj and fcc signing off, but we have not seen the judge's decision since they were sued on antitrust concerns. we have a report the judge is planning to rule in favor of the merger takeover. rallyingeing sprint

more than 45% while t-mobile is up 6.5%. let's get more headlines. tolle coronavirus death has risen past 1000 in china. there are almost 41,000 cases worldwide, the most in the province of hubei where the outbreak began. the w.h.o. is monitoring 10 chinese provinces for signs they could become additional hotspots. xi jinping visited a hospital in beijing and says the impact of the virus on china's economy will be short-term. the cruise liner quarantined in yokohama has seen virus cases almost doubled to 135 with 65 new infections confirmed in the past hours. princess cruises says most of the new cases are japanese passengers with others from the united states, australia, and the philippines.

the liner has the most infections of places outside china. indonesia will boost spending about $9 billion for villages and schools to spur growth and counter the impact of the finance -- the virus. the finance ministers as the money will be giving out ahead of the original schedule. southeast asia's biggest economy expanded at its weakest pace in four years in 2019. a dramatic escape from japan has long seemed ripe for a movie treatment. carlos ghosn has hired a top agent to handle any inquiries. we are told he will evaluate any proposals, nothing confirmed yet. he is the founder of creative artists agency and a former president of walt disney. global news 24 hours a day, on air and @quicktake by bloomberg, powered by more than 2700 journalists and analysts in more than 120 countries.

this is bloomberg. let's take a look at how markets are faring, given that we did have u.s. stocks ignoring concerns over coronavirus and hitting a record high. upside .6% in australia. aussie dollar holding steady, earlier trading at the lowest since 2009. new zealand, we are getting some positivity on the equities front going into the rbnz meeting on wednesday, expected to keep rates at the record low 1%. there is speculation the governor may signal he is ready to cut again later on this year because of the ongoing and expensive impact of the coronavirus affecting commodities trading in new zealand as well as services and tourism with growth forecasts expected to be cut. kiwi dollar pretty flat at the

moment at .6384 u.s. dollars. let's head over to hong kong. yvonne man joins us with more on the latest for our top story. coronavirus cases rose overnight. six new cases in the city. we seem to have lost yvonne man in hong kong. we were getting the latest on the virus impact in the city. we have seen the government quarantining more than 1000 people in hong kong, 90% being hong kong residents. let's get to the market impacts. we have seen europe finishing down, but u.s. equities rallied despite the coronavirus outbreak news. will we see that momentum carried through to the asia-pacific region? gles is with us in

hong kong. what are we expecting as we see more companies starting to reopen their factories in china? david: more of the same. futures in japan were likely going to get some gains across the region, but it is the same narrative if you look at bond markets. bond yields are continuing to push lower. what's important today is we will get the almost pure economic indicator that might give markets a better idea whether they have overshot the target. exports for the first 10 days out of south korea due out anytime now. have a to say, we don't forecast for that, but it is likely going to be a very bad itser, given the fact that

biggest export market, china, was closed. in -- if taiwan was any -7%,ator, january numbers, which already included a bump, if you will, from the phase one trade deal, this set of numbers may be much worse. euro is arguably starting to reflect a weaker outlook. for global story, particularly the implications for germany. david: especially since germany is a massive capital goods exporter to china as well. germanyomic ties from are very widespread. to autosg from trade and capital goods. it has started to show up in the euro. we are flirting at 1.09. last time we were at these

levels was the start of last year. certainly you understand why the positioning of the euro is near the 2017 hi -- short positioning. ares a global story and we starting to get a tangible idea how bad the economic hit is. -- davidvid inc. was in hong- david ingles kong. yvonne man is there as well. you were taking us through the changes in hong kong. city: six new cases in the , the total now 42. 100 residents in a public state near the international airport had to be evacuated after they found two residents that had contracted the disease, the latest a 62-year-old woman who

lived on the third floor, below a man who contracted the disease earlier. he was hong kong's 12th case. authorities looking at how the virus spread within this building, not ruling out any possibilities, even considering whether this virus is airborne. medical experts were saying that when it came to the ventilation pipe of this building connected to the discharge pipe in the bathroom, that was not properly sealed and could have carried this virus within the structure, so when a person turns on the exhaust fan in the toilet, the air from the drainage system could have filtered through. that's a big development. they are still investigating. residents have been quarantined and those who did show symptoms were sent to the hospital. shery: what you are telling us is quite concerning because many

workers who had been on holiday are going back to those factories in china, with some of those firms resuming operations. what can we expect? wendy: selena -- yvonne: selina mentioned the manufacturers reopening, tesla, foxconn. some businesses still temporarily closing their stores. one company that sells beauty and cosmetic problems -- products temporarily shutting 21 stores in hong kong and macau due to this virus and low consumption demand. lunar new year retail sales disappointing, drop 70%. ,ame goes for giordano suspending nearly 140 stories in china. there lunar new year sales fell around 60%.

retail very much taking a big hit. haidi: yvonne man in hong kong with the latest. automakers among the which have resumed production in china. we look at the impact of factory shutdowns. take a look at sprint and t-mobile. after hours shares in the u.s. surging as a judge is expected to rule in favor of the $26.5 billion merger. we will have more information when they data becomes available. this was a merger announced in 2018 and has gotten doj and fcc approval. now we are hearing a u.s. judge will also approve this merger despite a dozen state attorneys suing on antitrust concerns. ♪

shery: this is bloomberg "markets: asia."

and tesla are among the automakers restarting factories in china that had been halted as the nation tries to contain the coronavirus. hearsch joins us now. theyis a short-term blip can recover fairly easily from? >> i would not say they can recover easily. china has become one of the largest production centers, particularly for intermediate goods, in the world. the auto industry is core to that. if you think about the companies that have plants in hubei province, most of them -- i should not say most -- 38% of those affected are auto suppliers and auto manufacturers. that now we have companies

were planning for the lunar new year shut down, so there is a little lock in -- a little luck in the timing in that they had planned for additional shipments and inventory. the unexpected eight to 12 days could be a problem for anybody who does not have a lot of flexibility, is not able to get their workforce back to work, which seems to be the issue now that factories are back online outside of hubei and by the end of the week in hubei. thei: how does it play into story of a slowing year? the coronavirus story will result in more demand reduction. will it balance out or is there going to be a significant shortfall? >> i think it is going to hurt china significantly. china was on its way back to some growth this year after a couple of down years.

the u.s. is expected to be down 5%-ish, europe relatively flat. it probably does not balance out in the sense that china has represented all the growth of the global automotive industry, 60%-ish since 2012. andthem to begin to recover see growth in this area and now have this loss of production, loss of demand creation, so people are not working, that is across a number of industries, almost all industries. people are not likely to be buying cars as much in china as a result of this, probably through the remainder of this year. it is a bad story domestically within china. shery: if i were heading one of these automakers, i would ask myself, why stay in china? trade tensions giving uncertainty, now the outbreak.

it is not like labor is that cheap in china compared to vietnam or thailand. will we see a shift out of china, this momentum grow? >> i would say you should expect it to accelerate. companies that went through the tsunami in japan a number of years ago that learned that lesson, others that paid attention, have learned to add redundancy and security to the supply base. those that have not been around or had not learned those lessons are going to learned more painfully in this case. as you point out, china's labor rates have gone up. we have seen the u.s. and north america, a lot of near shoring, moving back to mexico, other countries in southeast asia for europe. a lot of movement into eastern and central europe, where it is lower-cost.

i would expect an acceleration of that. i would expect additional investment in that security and continuity. where possible, you will have additional flexibility in manufacturing, less hard to length, more 3d print doing or added manufacturing will aid that. absolutely you are going to see companies start to get more diversified in where they source their goods. haidi: -- shery: let's assume they resume operations, things are going fine. how easy is it to boost operations back to levels before the outbreak, if not more? you have to play catch up with everything you have lost in terms of production. >> it is going to be tough. i talked to some friends and colleagues that have operations over there. factories are starting up, but

the workforce is not reliably coming back. they did not pop up this morning and say, i am here for work. it is highly variable, depending on where they are, what their workforce is like, if it is very local or if they did travel across the country for the lunar new year. that is a difficulty that is hard to predict company by company. , rawupply of product materials, has been disrupted. some of it has been stuck in ports, on ships or in trucks. some of this material does not age well, particularly the high carbon steels that could rest and become useless. there are other products that could become useless from sitting around. there are a number of factors that if you don't have that type of redundancy or a good playbook for recovery, it is going to be difficult to get back up to

speed and could take a number of weeks, potentially months. shery: dan hearsch, thank you for your time. spreadwant to track the of the coronavirus, you can do that on bloomberg.com or the bloomberg terminal. this is bloomberg. ♪

haidi: out of south korea, we are getting the export numbers for the first 10 days of february, rising 64% year-on-year, a huge gain. south korea had to explain the trade data reflects the increasing working gains -- working days in the month of february. we are seeing 69.4% rise

year-on-year. we had seen south korea's export numbers decline for 14 straight months. that has been easing in the past two months with declines in the single digits. we know china is south korea's largest trading partner, so we will see what happens once we get the full month of february. let's turn to politics in the u.s. president trump releasing his annual budget, proposing deep cuts to social programs but increases in defense and entitlement spending that would push the gross federal debt above $30 trillion. polls show bernie sanders has the lead a day before the primary in new hampshire. joining us is bloomberg contributor add democratic strategist rick davis. let me get started with the annual budget. how much will this appeal to president trump's base?

rick: i think it is a good budget for his base. he increases defense spending. he had a huge package of defense spending last year. this updates the second year of that budget bill. it is informative more than directive. he has done the right thing as far as feeding his base with things he will do for military and defense. he has added border wall funding. the immigration issue will be alive and well this year. he has also gone after the democrats and cut some social spending in a way that, really, he is looking to pick a fight. shery: when it comes to the budget, we are seeing the federal debt above $30 trillion over the next decade if this budget goes according to plan. this chart showing the debt as a percentage of gdp, hitting record highs. does anybody care about the

fiscal deficit? are there any fiscal hawks left in washington? rick: a core element of the republican party was fiscal conservatism. even back to the bush administration when they increased medicare spending on part d, gave away tax cuts, and went from a surplus to a deficit , and subsequent presidents have increased that deficit. it has taken the wind out of republican fiscal conservatives. i don't think it is going to help trump with that wing of the party, but they have nowhere else to go because they are facing the democratic side promoting socialism. where are you going to go if you are looking to build a smaller government? haidi: how much does the economy motivate voters in new hampshire? it is economically doing quite well. if not, what is going to motivate the voters to come out? rick: we saw a relatively

depressed turnout in iowa for the democrats during their caucuses. that has become a big issue. what is the turnout going to be like? is it going to be record turnout? we have a lot of candidates vying for 100,000 supporters. augment independents the democratic party this year? they are going to have a lot of questions like that. the democratic party is under enormous pressure because of the failed caucus in iowa to show a big turnout tomorrow and hopefully have a decisive outcome. november, isinto the issue for the democrats finding an electable candidate who can take on president trump? should they be campaigning and debating around that, as opposed to the issues? do you think they are tackling head-on?-on --

david: a famous democratic consultant attacked the democratic candidates today with interviews that they are not talking about the issues voters care the most about. that is a pretty tough indictment of this field of candidates, where they have gone off in all kinds of directions that james carville believes is not going to take the fight to donald trump the way it should. it is too early to tell. we just had the iowa caucuses, new hampshire this week. two more the week after next in nevada and south carolina. then you get to super tuesday, when the campaign for the democratic party goes national. we can see if these candidates can fit issues that are more important to voters into their dialogue. shery: health care seems to be the most dominant issue when it comes to voters. will this help whoever becomes

the democratic nominee? rick: certainly trump's budget picks a fight on health care. he is looking for lower cost pharmaceuticals, but he cuts disability and some medicaid programs. that will be a big issue. won a8, democrats landslide victory to take over 40 seats in the house of representatives, a number of state legislatures and governors across the country, by focusing on health care and defending obamacare. that was an amazing lesson. why this group of democratic candidates for president seem to have gotten off of that, we are now on the table is medicaid for all, is what james carville is talking about as far as being off message. haidi: thank you for joining us. rick davis, bloomberg contributor, former campaign manager for john mccain.

michael bloomberg is also seeking the democratic presidential nomination. he is the founder of bloomberg lp. we will have special coverage of the new hampshire primary tomorrow from 7:00 p.m. eastern time. ♪ hi! we're glad you came in, what's on your mind?

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>> a very good morning. i am haidi stroud-watts in sydney. shery: good evening. i am shery ahn. welcome to "bloomberg markets: asia." haidi: our top stories this tuesday, the coronavirus death toll took 1000 in china. hubei province has 30 2000 cases. the world health organization is in china and monitoring the outbreak as workers returned from the extended lunar new year

break. shery: the coronavirus is affecting asia's biggest airshow in singapore. the event has seen no-shows among aviation's biggest names. japan away on holidays. korea is coming online. let's get straight to the market action. sarah: japanese equity markets are closed for holiday. let's take a look at what is moving in the region, the fx and rates markets. the yen holding steady but this after five days of losses in the last six for the safe haven currency as we did see the bid just a bit.derate we have seen a slight global bond rally. 10 year jgb yields down by two basis points, yielding negative six basis points. futures.a look at flat right now, holding steady after the u.s. trading session. the s&p 500 and the nasdaq 100, the tech heavy benchmark, did

close at record highs yet again, but switch up the board, because korea is not on holiday and those markets are coming online as we speak. the cost be higher today by .6% after two -- kospi higher today by .6%. new zealand stocks have been opened for quite some time. both higher as well, up by about .7% respectively. if we change up the board, you look at the aussie dollar still holding near those 10 year lows, but modestly higher, nudging upwards. yesterday, the aussie dollar was the best-performing g10 currencies. we do see sterling holding still right now but near the lowest level since november. when it comes to trade in the u.k. post-brexit, it is still very much an unknown picture. you look at the offshore yuan trading on the stronger side of seven, as we can see, and 10

year treasury yields holding at 157. 1.57.s -- back to you, haidi. haidi: sarah in new york with a look at the seoul open. let's get to the latest on the coronavirus story. the death toll in china has climbed above 1000 as a new report estimates mortality rate to be at around 1%. itshubei province reported lowest daily increase of confirmed cases since february first. the who china representative told us what that decline means. >> last week, we have seen a few days now in which the numbers have declined. the reported numbers of both confirmed and suspected cases has collectively declined for a few days with one-day exception. themselves, these numbers

mean nothing until enough time has passed well beyond the incubation period of the these -- of the disease. we are happy to see them go down rather than up. haidi: let's get over to beijing. selina wang is in the capital. so very cautious optimism that we might be seeing the stabilization in these numbers but lots of caveats as well. selina: that's right. as you heard from matt representative, the case numbers have started to stabilize, but he did add that it is too early -- from that representative, the case numbers have started to stabilize. the recent numbers surpassing 1000 in terms of the death toll. new research is expecting that mortality rate to decline to potentially 1% of put into the imperial college of london and that is an estimate of what will happen once all of the cases are accounted for. the cases will drive that death

rate down. meantime, you have countries around the world remaining on high alert for more patients -- on high alert. four more patients. the canadian finance minister warning the spread will have a significant effect on global growth that will spill into disruptions to tourism, supply chain, lower commodity prices. i want to touch on what is going around with the factories starting to reopen in china, but it is not a full resumption. in the semiconductor space, citigroup is estimating that just 30% of the workforce will return this week, and many auto plants still remain idle with honda and volkswagen extending their shutdowns into later this month, but you do have tesla and ford resuming production and that foxconn, which makes a majority of the world's iphones, they are resuming some production, but it is not clear

exactly how many workers are returning to the plant. as you can imagine, a lot of logistical challenges, trying to get thousands of workers through the transport block, monitoring quarantines, and obviously, the potential nightmare scenario of cases breaking out at these plants. these are risk factors that they are all trying to minimize. haidi: selina wang, thank you. our china correspondent in beijing. don't forget, bloomberg subscribers can get the latest headlines by running the on your terminals. asia's biggest airshow kicking off under the cloud of the spreading outbreak. industry leaders including boeing usually cancel such trade events to secure or pave the way for multibillion-dollar plane orders. let's cross to our correspondent, haslinda amin, with the latest. get-go, itrom the

feels pretty quiet compared to other airshows i have covered. the sense out there is that the virus could drive some struggling airlines out of business. in fact, the ceo of qantas did say it will be survival of the fittest. let's get some perspective. he joins me today. he started at boeing as a test pilot. great to have you with us, randy. is there a sense that this virus could be a black swan for the industry? >> as we came into 2020, we expected a year that looked a lot like 2019, and the virus has made changes. we have and will see changes in economic growth being pushed down. we have seen changes in traffic. the question is, we don't know how long the duration of this virus, how long will it take to run its course? only then will we really have a understanding of what the

financial impact will be to our customers. haslinda: you have gone through the ups and downs of the industry. do you expect to see casualties? survival of the fittest. randy: there's definitely going to be pressure on all of our customers. anyone who touches china and customers that fly to and from and within the asian pacific region. there is no question about that. oil prices will probably be a little bit lower, so it will help with some of those customers, but there will definitely be challenges from some -- for some of our customers. haslinda: boeing has not seen that in at least two years. do you expect this virus to impact sentiment even more? randy: we are coming on the heels of the stage i trade agreement, so that is a positive step forward. we are engaged with our customers. clearly, there are going to be challenges with the virus, but ultimately, china is a big market, 7700 airplanes. it is a market that is

underserved today. long-term, that demand will come back. haslinda: a market that is producing its first commercial aircraft. what do you make of the competition? well that impact boeing in the next five years? it is coming to market. randy: we have intense competition today with airbus. cormac will be successful. if but when.is not we are in a good place so we have to return a 737 max to service, get the airplanes up and flying, start our production again. for us to be successful. >> lots of questions and delays . when will the max start flying again? randy: we believe the airplane will return to service midyear. we are planning on that. frankly, that is a new schedule be developed. we are working with regulators around the world. we have cushion in that based on what we have seen in the past so that is our schedule.

frankly, returning the airplane to service is about working with the more than 40 regulators around the world, making sure all the testing is done on the software and airplane improvements we have made, making sure every question is answered. this is really a task by task exercise. it is not really about schedule. we have got to get it right. haslinda: china had said it is skeptical about the changes that are being made to the max. what is your response to that? randy: we are working with our customers, the regulars there and around the world. when this airplane returns to service, it will be scrutinized more than any airplane in aviation history. it will be the most tested airplane in aviation history. it is building from the legacy of the 737 that has flown more than 30 billion people around the world so i think we will be in a strong place, but we have to make sure changes to the airplane are completed, documentation is done, the simulator training is done, regain the confidence of our customers, and ultimately, we will regain customer confidence.

haslinda: how? randy: win the hearts and minds of the pilots, flight attendants, airlines, and work closely with customers to bring the flying public back. haslinda: regulators like those in india are requiring pilots to on theugh training simulator's first and there are lots of questions about who will foot the bill for the simulators, for the training. in my conversation, it did say that boeing would be footing the bill. randy: it's not just india that will go through this pilot training. we are recommending all pilots that return to the 737 max go through simulator training so we are working with our simulators, all the simulators out in the environment, to make sure we will be able to accommodate the training, and absolutely, as part of our compensation, we are working with our customers. training will be part of that. haslinda: there are some suggestions you are already looking to an alternative. any truth in that and what are

you looking at? randy: a lot of speculation. we have a new chairman. the chairman asked them to step back and take a look at the market around that and we are in the process of doing that. he also emphasized that as we went through this, we are in this business for the long-term and we will continue to invest in new products. haslinda: what do you deem as the biggest challenge? randy: the max. it is about getting the airplane back in service, working with our customers to take the airplanes back into service to more than 300 airplanes we have in our inventory and getting those back into service and slowly but consistently restarting our production line and making sure that that works well, so that is 100% what we have to focus on. haslinda: before we let you go, we understand that this will be the last air show representing boeing, a career spanning 40 years. can you confirm you are retiring? randy: there is some speculation on that. that is a conversation my wife

and i have had. whatever decisions i make, i made the right decision in 1981 when i came to work for boeing. 38 years working in this fabulous business. we talk about the challenges we see today. i can tell you, i have seen economic cycles. i have gone through sars, i have seen the asian financial crisis. one of the things that makes me proud about this industry is the resiliency we have seen in flying. we do make the world a little bit better. we have really ushered in mobilization, helped bring more than one billion people into the middle class. we are really proud of what we have been able to do and i am happy to be part of this industry. haslinda: thank you for your insights. there you have it. the vp of commercial marketing at boeing, coming to you live from the singapore air show here in the. back to you. show must go on. haslinda amin speaking with -- at the air show. we will have other big guests joining us.

they include david sale. let's get the first word news with ritika gupta. chargedthe u.s. has four members of the chinese army for the 2017 hack of equifax. attorney general william barr said the ruling as a reminder to china that the u.s. has the ability to track down hackers and prosecute them. the breach exposed personal information of almost 150 million americans. equifax told us that the charges are a significant step forward for the data industry. the u.k. government says it will break away from e.u. rules governing financial services but still wants a durable relationship. the chancellor said the u.k. may choose to do things the same way as the single market but there will be differences as the city of london must match international standards. the e.u. is wrapping up its demands ahead of the post-brexit

talks, seeking stricter conditions on a range of issues. president trump has released his latest budget with a plan that proposes deep cuts to social programs but raises spending elsewhere. potentially pushing gross federal debt up. his plan raises debt partly because of tax cuts and heavier expenditure on defense. the budget has no binding power as federal spending is determined by congress. the new hampshire primary is taking on a new dynamic with bernie sanders winning over voters who made up their mind, but about one third still to decide. pete buttigieg and second place with amy klobuchar in third. they are tied in the iowa caucuses. elizabeth warren in fourth. 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 am ritika gupta. this is bloomberg. shery: thank you. we have china now seeing a new death toll, this rising to 1016. the cases of coronavirus raising to 42,638. we have seen new studies putting the estimate of the mortality rate at around 1%. that compares to 9.6% for sars, but still, the death toll continues to rise, topping 1000 in confirmed cases at 42,638. right. and let's turn to live pictures of president trump right now at a keep america great again rally in manchester, new hampshire. this a day ahead of the democratic primaries there. bloomberg subscribers can watch it all by running the function live . this is bloomberg. ♪

haidi: this is "bloomberg markets: asia." i am haidi stroud-watts in sydney. shery: i am shery ahn in new york. confirmed coronavirus cases continue to rise outside mainland china with hong kong investigating six more overnight. bloomberg markets anchor yvonne man has the latest. thene, so get us through numbers and what is happening in hong kong. yvonne: that brings the total to 42 in the city, and early this morning, we learned that more than 100 residents in a public estate were evacuated out of the building after two people inside contracted the coronavirus disease, and the latest we heard woman whoear-old lived in the third floor and lived directly below a man who

had contracted the disease earlier. he was hong kong's 12th case. there is now a concern that perhaps this virus could be airborne. medical experts and authorities saying they are not ruling out any possibilities, but there is a consideration here that this was transmitted through a transmission via feces. they found out a ventilation pipe of this building that connected to the discharge pipe in the bathroom was not properly sealed so that could have carried the virus through this building. we have learned the residents have been put under quarantine. others who have shown symptoms were sent to the hospital at six more cases today. haidi: if that mode of transmission proved to be correct, certainly cause for greater concern in terms of the contagion aspect of this disease. yvonne, what are the latest developments on the business front, the economic front, given that we know that the city is

already battling to keep its retail sector, for example, alive? yvonne: continuing to see the retail and tourism sector get hit. after the months of protest and the virus, as we have been reporting, we learned some retailers, in particular, they are going to be shutting doors in macau as well as in hong kong. cities,tal in those two given the outbreak and lower consumption demand. lunar new year sales were already disappointing, plummeting 77%. same goes for the fashion retailer, closing 140 stores in china, 28 of which are in wuhan. there lunar new year sales fell around 60%, and we also saw a more restaurant -- restaurants like burger king will be shutting half of their locations in china. still too early to tell, they said, the impact it will have on earnings. dunkin' donuts, starbucks, and

mcdonald's, have shot some of their establishments in china. retail getting hit pretty badly. haidi: yvonne man in hong kong. next, sprint surging in late trade. a merger with t-mobile will get a green light. details, ahead. this is bloomberg. ♪

haidi: this is "bloomberg markets: asia." i am haidi stroud-watts in sydney. shery: i am shery ahn in new york. sprint sword in trading. bloomberg has learned the judge in a contentious suit that tried to block the merger is planning to rule in favor of the deal. su keenan has more on this. could this finally be happening after almost two years? su: it has been a long time

coming. this was the final piece of them trying to block the merger because they believed it harm consumers. bloomberg has learned the judge is planning to approve the merger. take a look at the way the stocks are reacting after hours. a huge reaction, particularly from sprint. it is now up better than 70%. the initial reaction was 50. it continues to climb. it is a smaller denominated stock. take a look at t-mobile. it has been up as much as 10%. a big winner, clearly, sprint. a $26.5 billion merger. and t-mobile also is a big one. softbank, sprint's parent, benefits as well, along with t-mobile. you have deutsche bank telecom, t-mobile's parent, but again, the states are said to have failed to be able to show that the combination of the third and

fourth largest u.s. wireless harmer would consumers by raising prices. this was the final piece. the combined companies had already won approval from the fcc and from the justice department antitrust division, and then this was the final roadblock, if you will, according to sources close to the matter. the decision should be announced later tuesday. we understand the companies, from the sources, have learned of the decision already. haidi: given that it has been almost two years since the deal was first announced, and this was seen as the final hurdle, what happens from here? su: there are two more steps and that would be a final signoff by a judge in washington, perhaps going to the california utility bill, but it does look like things could move pretty swiftly from here. we do know that t-mobile will be the name of the new combined company, that it will be much larger and a big rival to at&t and verizon.

it will have a subscriber base instantly of 80 million. at&t has 75 million. verizon, one hundred 14 million. it puts them right up against each other. further, after the merger, they will have much more spectrum. the range of frequencies that carry wireless signals. this will be an advantage as the industry moves towards 5g and it will definitely give them a bit of an edge. latest onan with the the sprint deal. let's get you the latest on the business flash headlines. cosco has remained -- local officials inspected the site on monday to assess the companies virus prevention measures. it's not clear how many workers returned. instead announcing a strategy to stagger the return of workers. shery: alibaba is planning to waive some of the fees they

charge to offset the impact of the coronavirus. it says it will halt these for the first half of the year. the company mainly earns revenue from ads and marketing. the stock has dropped in the past month. this is bloomberg. ♪

haidi: you are watching "bloomberg markets: asia." business confidence data coming out of australia, just crossing the bloomberg. the survey coming in slightly higher than the previous month. at minus one from minus two, so taking up -- ticking up. in atss conditions coming three, largely unchanged, broadly painting a picture that shows no significant deterioration in overall terms despite concerns over localized impact of the ongoing brush fires, but it does see no growth or a great job in a private

sector. we are also getting some home loans data out. month on month, december home loans gaining by 1.6% in value, 2.8% more than expected, and the value month on month of home loans, not investor home loans, up by 4.4%, so painting a picture of the recovery that we have seen in the properties sector here in australia. it's get a quick look at the markets today with sarah in new york. risk-on feeluch a for trading. at korean kospi up by .9% session highs. at the same time, australian stocks up by .8%, also at record highs for the day. japanese stock markets are closed for the holiday but we also see u.s. futures turning very modestly higher, but this after the s&p and the tech heavy nasdaq 100 closed at record highs in the u.s. trading session. i also want to point out that the kospi now only roughly 2%

off of the pre-coronavirus levels. we also take a look at the commodity complex, it has been a rough ride. this is where we have seen outside the weakness over the past couple of weeks. we do see wti crude staging a little bit of a comeback, up .5%, but still trading under $50 a barrel. it's really been rough for both brent and wti crude oil, both trading at year-long lows at the moment. it is looking like that emergency meeting from opec is not going to be taking place, meaning the next will be scheduled, not until march. there's prospects of more oil coming online from libya. we do see copper moving higher, up .4%. not reflective of the risk on feel and expectations for maybe a pick up, maybe a stabilization in the global economy. still, gold, modestly flat after four days of gains for the safe haven metals. switch of the board. take a look at this chart so you

get an idea of how assets have been trading since the coronavirus really started to dominate those headlines. your best-performing asset is still bonds. your 10 year benchmark treasury yield at the time was trading at 1.82%. now, it's down by more than 20 basis points. a bond rally, still below the white line. that is the s&p 500. we have seen u.s. exceptionalism. the s&p is putting in new record highs. the purple line, you see the dow transport. airlines, railroads, global shippers. mainland chinese stocks, only 5.5% off the pre-coronavirus levels. really where the pain has been has been in the commodity complex. both copper and oil really just taking a hit. back to you, shery. market,he commodities very dependent on what happens to those factories in china. some of them resuming operations now. that's get to ritika gupta for the first word headlines.

ritika: the coronavirus death toll has risen past 1000 in china. they're all almost 43,000 cases across the country. most in the province of hubei. the who is monitoring 10 chinese provinces. they could become hotspots. president xi jinping said the impact of the virus on china's economy will only be short term. aboutn easy i spending in -- indonesia will boost spending. says thece minister money will be given out in the coming months. southeast asia's biggest economy expanded at its weakest pace in four years and 2019 in part because of the trade war. the capital, in new delhi starts --

the tally begins at 10:30 hong kong time with early indications about three hours later. it is seen as a test of the prime minister's controversial religion based citizenship law that sparked violent protests across india. carlos ghosn's dramatic escape from japan has long seemed right for the movie treatment. he has hired a top agent to handle any inquiries. we have heard people evaluate any proposal although there is nothing confirmed yet. he is the founder of creative artists agency and is a former president of walt disney. 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 am ritika gupta. this is bloomberg. haidi. haidi: thank you. the coronavirus outbreak is making headlines about no-shows at this year's singapore air

show. let's head back to the event. haslinda amin is there. there is concern the virus may impact travel and enhanced demand for aircraft. that's get perspective. we have the rolls-royce president of the southeast, asia-pacific, and south korea. great to have you with us. potential impact of the virus? >> as you can see at the air show, it is a reduced scale attendance. we have seen participation from our customers who have not suggested they will attend the conference but we will have continued conversation over the next few weeks. we have taken precautionary measures in singapore as well. it is the short-term impact. but we need to just manage that and pull up the guidelines as provided locally. haslinda: you take care of several regions. when you take a look at the

regions you cover, which areas show the most potential? >> if you look at the last decade, year on year, it's been a 10% growth within southeast asia and aussie on been asean has been- phenomenal. we have gone from 2600 to 10,000 aircraft. they will come into asia-pacific and most of them into this part of the world, so trajectory wise , in the past, there's been a huge growth, and forward projection shows growth as well. haslinda: can you specify the double-digit you are looking at? bicky: the growth will be on a year-to-year growth so we know aircraft that1 are powered by rolls-royce within the region. 281 are already confirmed for us. this will bring many more so you can just see this is confirmed

commitment over the next five to 10 years of aircraft that will be powered by rolls-royce engines. it is a very positive growth. haslinda: rolls-royce celebrate and 25 euros for its family. these are difficult times. i mean, boeing has talked about possibly cutting the dreamliner. how may that impact the production? bicky: we have several engines in a portfolio. it is powering the streamlined or -- dreamliner. we have the world's most efficient engine. it is powering the a350. that is the spectrum of engines we are talking to our customers about that are suitable for the region. the right body market. we see something fairly similar looking forward as well. haslinda: it has been pretty

problematic. some say that you encounter yet another problem. have you seen the worst for it? bicky: our engineers have done a huge analysis on the issues we have and we do regrettably have -- on the ground with our customers. we are addressing them. we will get to single digit numbers by the early part of next year and that is a commitment we are making to our customers. we know what the solutions are. we need to increase our capacity so we can put the new design of the turbines into our product. haslinda: the city downgraded rolls-royce precisely because of that. thatn, is there a sense perhaps you have to make more provisions in the months and quarters ahead because of the 10,000 -- because of it? bicky: it is not an issue with reliability. it is durability. we have a timeline in place for how we can make sure that all of our customers are flying in the neary -- very near future.

haslinda: the engines were hit by safety orders. how are you dealing with that problem? bicky: we are in close conversation with our customers and the regulatory authorities. we want to make sure we give a reliable product for our customers. we are progressing with all of them. haslinda: will that delay going back to the market? bicky: hard for us to say. haslinda: what is the biggest challenge for rolls-royce in the next 12 to 24 months? challenges come with opportunities. the first is capacity. we have huge growth. we need to have the capacity to be able to service the engines in the very near future. last year, we increased our capacity in singapore in a joint venture by 10%. we are already looking at what the next strategy for us will look like, bringing together automation processes and smart manufacturing to really ramp up

the strategy, the way we do things in a much more productive and effective way. that is a challenge but it presents itself as an opportunity as well. haslinda: the industry is under a lot of pressure to cut carbon emissions. from a rolls-royce perspective, what are you exploring to ensure that? bicky: sustainability is a big part of our strategy and agenda. there are three themes we are looking at. the first is synthetic and sustainable aviation fields. really working with the likes of shell and bp on looking at what the synthetic blend to the mixture of the fuel would look like. we are looking very closely at that. this second part is technology. beyond the family of tensions, on the altarrking ultra fan.ill be -- that gives us 25% fuel saving

efficiency improvements compared to the first generation. this is disruptive innovation in the best sense. the next part is electrification, the fusion mechanical and electrical world. it is a gas turbine engine to generate power. you intelligently distributed to the airplane and add electric propulsion onto the wings. all three of those combinations of's us a huge benefit for attacking the carbon emissions and sustainable strategy of rolls-royce. haslinda: thank you. bicky bhangu, president of southeast asia and south korea at rolls-royce. we are coming to you from the singapore air show. it is pretty muted. we know that it is like a reduced air show. we have seen more than 70 foreign companies pulling out of this particular air show. shery: the fallout from the

coronavirus outbreak being felt everywhere. haslinda amin there. a programming reminder, we will have special coverage of the new hampshire primary here on bloomberg television. that starts tomorrow at 8:00 a.m. in hong kong, 7:00 p.m. for viewers in new york. cambodia's largest casino operator's nonrevenue search amid the slump in macau. we speak exclusively to the mega corp. chairman, timothy mcnally, next. this is bloomberg. ♪

>> and this is "bloomberg markets: asia." i am haidi stroud-watts in sydney. shery: i am shery ahn in new york. earnings from the largest -- mega corp. says revenue rose 20%, which compares to macau's over 10% drop. joining us now from hong kong is the chairman, timothy mcnally.

great to have you with us. you had a great 2019. what is your outlook for 2020 when we have this coronavirus outbreak disrupting travel and tourism? timothy: thank you very much for having me this morning. i am excited to be here. we are starting -- 2020 is the start of our 25th year of operations. as you noted, we had a very good 2018, tablesion to were up 35%. the ip, 31%. gross, 31 percent. net profit growth, 30 3%. electronic gaming machines, 22%. numbers like 1.7 billion in terms of jtr. first time for us, over the $.5 billion mark. 672 billion. those are numbers. we have come a long way. we were up $440 million market

cap when we listed in october of u.s. $7.6 billion today, $8 billion in november. it is the story about a long journey and you are talking about where we sit today and what we look towards in the existing environment, and you know, i think there is an old saying that if you are dealt lemons, then make the best of it. make some lemonade. that is a little bit of advice i would give most to other operators, whether they are in macau or other business entities around the region. our view is that hopefully this will be temporary. it is certainly disruptive to operations in macau. a wish our fellow operators quick return to normal business. for us, in cambodia, it has been

less impactful. i think you noted probably from public reporting, we have only had one case of the coronavirus so far. that does not mean that we do not underestimate the nature of the illness, and we have done a lot of preparation ourselves. we worked very closely with cambodian government in terms of screening visitors, both at the airport as they come in, as well as to our own property. areake sure our employees protected as well as our guests. we issue facemasks. and we monitor both temperatures as well as our daily environment in terms of a high degree of sanitation. all of those things are preventative in an environment of uncertainty but i want to say for us, looking forward, with the existing situation, we still have a very high degree of confidence. we still have a very high degree

of what we think our strength in terms of our competing environment where we are located. shery: how much of that is being boosted by the fact that perhaps you are getting the business that macau is not getting because their casinos have shut down? timothy: as i indicated, we always wish operators throughout the region their good fortune and good luck, so yes, it's true . we may. we did not -- so far, i cannot give you numbers. but at least during the chinese new year and where we sit right fairly steady in our operations. we are mindful that there might be less tourism from china at the moment, but yes, flights are still coming in. we still have 894 flights a week coming in. airline travel and accessibility

to the country have not been disrupted. those are very favorable things for us. and you know, how long this disruption goes on, we do not know, but we are quite confident for the impact will be less us right now than obviously some of those who are located closer to the heart of the problem right now. haidi: but are you seeing a drop-off in visitors given that we know that chinese visitors, tourists, especially over this time of year, love to visit cambodia? thingy: you know, one also, i think, favorable, and something that historically has always been the case at naga, our business -- i made mention that 35% up. a lot of that comes from southeast asia. in other words, we have heavy traffic coming in from malaysia, thailand, burma, the surrounding

area, so what i am saying is that unlike a place like macau that is solely dependent on tourism, china, we are in an area where we have 200 million plus in southeast asia, flights coming in from india -- indonesia. even close to 100%. 60% of our vip business comes from southeast asia. and i do anticipate we are still going to have some of the macau junkets coming our way simply because of the slowdown in macau. but having said that, no one knows. extent how long or the that this virus might last, but we are less impacted, is what i am saying, and i anticipate that , you know, during this period, we will continue to operate,

closely monitor, but we are also very well-positioned because of our southeast asia location. we are in the center of the gaming universe. we have got southeast asia, and obviously, when this recovery occurs and more chinese travel -- we are a low-cost destination. i mentioned right now that this millionr, we have 6.4 visitors to cambodia. four chinese. out of that, one .3 million were chinese business visitors so we have a very strong chinese business community, korean business community. that is extremely healthy. from a visual standpoint and what we see so far, our gaming activities are still quite active. our hotel occupancy is still high, so we have not been impacted to the extent that some of our colleagues have.

>> so great to have you with us. timothy mcnally, naga corp. chairman joining us out of hong kong. we preview the opens in hong kong and in shanghai, coming up next. this is bloomberg. ♪

shery: this isshery: "bloomberg markets: asia."

i am shery ahn in new york. haidi: i am haidi stroud-watts in sydney. we are just over 30 minutes away from the opens in hong kong and china. the s&p closing at another record high. david ingles joins us now with a preview. what are you watching today? a couple of stocks. benefit themally to pick up because of what is happening. earnings are coming out. casinos very much on the losing end of this. i am seeing what happens this year. a potential dividend cut. a couple of stocks -- yvonne was pointing this out. several of their stores are shut today. shery: you know one stock i am watching in south korea is the maker of parasite. it is a good day to be korean, isn't it? exports rising 70% today. --id: the market is trading

up 5% today. exports were up 70%. it really helps as well. that's the sort of negative effect, if you will, because it was a favorable basis up 70%. the bright side is that it does show china does come back online , that it could be a catalyst for exports to pick up in south korea as well. i am guessing it is the same as me saying i will feel better in a few hours just because i massively hung over right now. [laughter] dave, are you watching anything on the rates run in china? -- rates front in china? david: i am not hung over. that was a joke. 2.79% was the close on the chinese 10-year. it will be interesting to see whether the market continues to price lower.

levels ofded back to 2002. a lot to watch today. shery: david ingles, thank you for that update. our bloomberg markets anchor, david ingles pick coming up on "bloomberg markets china open," a guest tells us his winners and losers in the region for the spreading coronavirus outbreak. wealthubs global management cio joins us. she says stay invested in mainland equities and chinese high-yield credit. is it for us on this hour, for "bloomberg markets: asia." the start of trading in hong kong, shanghai, and shenzhen. this is bloomberg. ♪

shery: it is 9:00 a.m. in beijing, it :00 p.m. in new york. welcome to "bloomberg markets: china open." i'm shery ahn. haidi: i'm haidi stroud-watts. we are counting down to trade in hong kong. our top stories, the coronavirus death toll topped 1000 in china. the province has almost 32,000 cases. shery: the world health organization is in china monitoring the outbreak as workers return from the lunar new year break. big global players redo -- resume production in china. we will look at the likely impact on global supply chain.