sydney.taylor riggs in ♪ coming up in the next hour, or cancellations and fears of the spread of the coronavirus. cambodia permits a cruise shery: this is bloomberg markets ship stranded to enter certain asia. i am shery ahn and new york. haidi: and i am haidi stroud-watts in sydney. ports. we will have the latest and the

coronavirus and e-commerce, the u.s. stock market closed at a record high amid optimism that the global economy can recover from the coronavirus. we've all get an idea of how our next guest agrees. caring us now is the other alibaba is weathering the storm when alibaba reports on the -- is beata kirr. company's 2020 outlook or it but first, another day, more record the sorrows fire us was a highs. six-month-long drug and then we did see regional recovery -- the gains,traight days of sars virus had a six-month-long everyone and now, at least brushing off some of the drug and then we did see a regional recovery. economic impact of the virus and is this a pre-good reason to i wanted to take a look at the take a look at the polity of now, it looks like investors your portfolio -- quality of your portfolio? beata: we are really focused on shrugging off and wanted to take a look at the 10 year yield fundamentals and outcomes based getting a little bit of a lift. on those fundamentals come and you are right, the market rally we have seen in particular in you have a very solid five basis points and gold, you are 2019 was largely driven by ♪ sentiment and multiple expansion. falling, not much, just kind of earnings were negative in 2019. this is "bloomberg markets: hovering in there. they're much a risk on day. markets were up around 30%. asia." are being said, we

latest, a's get the >> the gold really struggling to focused on quality companies and we think the rally can continue. break through despite all the luxury cruise line being concerns. we are maintaining confidence in rejected by five countries and the markets today. stocks just keep on pushing territories due to coronavirus higher and a similar story in haidi: what is interesting is . you are not making any major changes through the 2020 growth this part of the world. forecast. what happens to china given that a great deal of anticipation and relief if they are accepted and had asx and quarterly economists everywhere are scrambling to revise downwards, allowed to disembark for the at least first and potentially well?-quarter growth as passengers and crew. >> certainly good news because trading. this luxury liner has been out beata: i think we are in the forzealand has been trading same boat in terms of assessing the impact of the virus. at sea for two weeks and they as you pointed out, the proxy is about an hour. finally find a place to dock. cambodia lending a hand. currenciesk look at sars, but it is quite different because of the composition of this is after they were denied the chinese economy and its impact on the global stage. from five ports. as well. real movement has been the so i think we will start to see a short-term impact. will be assisting you have already noted that the medically but standing by with company earnings not just in denied entry. any minute, we could be seeing china, but globally. kiwi dollar, stayed on hold new amsterdam arrive in the so we will likely see a yesterday. short-term impact. the feeling that it cut sometime we also think that china's port, they could be staying government is very focused on achieving their 6% gdp goal, and there for a couple days and in 2020 is probably inevitable. eventually passengers and crew the fallout from the members will be allowed to go to therefore, will put in place large stimulus packages.

so we have not changed our forecast for chinese gdp for the where they will be able to fly coronavirus, more than 1100 out. people globally. .ear, we are sticking with 6% carnival came out with a statement, they have been good in updating the situation. shery: how important will u.s. stocks be in the makeup of your they have a february 15 a liar -- liner, that has been portfolio, when we are already seeing such valuations. canceled. let's bring in our bloomberg they have yet to make plans on this chart on the bloomberg onwing we are 10% or more markets analyst and hong kong. cancellations after february 15. widen.lout, seeming to this is a fluid situation. the 200 day moving average of the s&p 500. last time that happened, we saw a plunge in stocks? plenty of been headaches. still dealing with that to cancel their beata: you pointed out the 200 day moving average. quarantine of the diamond we also point out the importance event in barcelona. of being a global investor. princess, 100 74 people contracted the disease. oversees a group that that is undergoing at the if you look back 20 years, we moment. carnival saying this virus could the showcasing. have not seen valuations at this global concerns and travel level in international markets have a material impact on its earnings. we are in the middle of the concerns made it difficult after compared to the u.s.. intel,d the likes of much longer than 200 days at waiver season, cruise liners we have seen next ordinary come out with best promotions from january to march. at&t, dropout and cancel their pricing. we also know that valuations do not a reversal make. plans. this could take a hit. the big question, the financial if there is a suspension of so we are remaining committed to the global equity portfolio, operations in asia, which they fallout. they spend tens of millions of with u.s. equities around have not planned as of yet, the dollars. this is going to be a big hit. 60%-70%, and international the impact on earnings in 2020 could 30% or 20%, around

cents a share. a big source of revenue for this event. then emerging markets at 10%. shipu contract that cruise meanwhile, the rugby seven here has been postponed. shery: how much of that and the latest on the virus allocation choice is due to the fact that we have in abundance cases on the bloomberg. just a few weeks ago, we heard from the hong kong rugby union, liquidities? they were confident the event would go on as planned because shery: china embracing for a job beata: certainly, the liquidity they had experienced back in has helped sentiment. in bad loans at the impact of 2003 during the sars epidemic. that is the largest explanation for the market last year. the coronavirus makes its way to pointed out earlier, the economy. it was not a market driven by bad loans could rise by $800 earnings. billion. usually market outcomes are let's get more from andrew correlated to earnings growth, and the expansion last year was collier in hong kong. great to have you with us. >> can you give us an update on this chart on the bloomberg showing the situation when it extraordinary. now, we don't think today's the cruise ship that has been valuations are stretched, is comes to those regional banks aware rates are. partment is an important around china. trailing the south china sea we have seen last year's stress looking for a home. tests putting the economic of market outcomes, and no doubt destination. has a markets have and supported by growth to as low as 1.45%, 30 really tremendous accommodation rising 54.ad loans not just in the u.s., but they are now sailing to cambodia where the country is willing to how big of a risk is this if the lend a hand. outbreak continues? andrew: is a serious risk

globally. haidi: and that doesn't really we are learning that this cruise end at this point, because going to 2020, the top concern by most people we spoke to was a because the regional banks have liquidity crunch. there is no sense that this will been quite weak. the real question is, to what ,iner heading to the port be the theme in 2020. degree are the banks going to beata: certainly after the last get help from the central two days of testimony from government in the form of some passenger members will be taken chairman powell, we wouldn't say backstop? and then able to find homes. that. we are expecting a fed that will expecting aare this has been a headache for be on hold and has some liquidity injection in the potential for easing if there is second half of the year because carnival which is already dealing with the diamond of the coronavirus. a softening in some economic at some point, they are going to indicators. consists -- diamond princess but what we have seen in january have to go back to the old game cruise line. the company coming out and in the u.s. is actually a of doing direct injections into strengthening of those economic the banks in order to help them. indicators. saying this will have a material impact on earnings. the phase one deal we think went in the mind, we are i spoke to one of my friends, forward in really providing more the president of a branch of the optimism and positive sentiment middle of promotion season and for the market, because the trade discussions were a large state bank in a province and he according to carnival, they are part of the overhang. i think that is right, i think told me they are concerned, they only have 10% of branches open. saying it is not their plan liquidity, from what we can see right now. right now, is here to stay. it is a serious problem. could have a hit on fiscal 2020 haidi: how do you trade the real risk is down the road, political volatility in an we will have more of the balance election year? earnings, so certainly a big reallywe at bernstein sheet risk placed upon the pboc. hit. >> bloomberg markets in hong try to focus on the fundamentals. as we see the coronavirus for the very most part, our kong, thanks a much for joining portfolios are bottom-up stock

us. portfolios. outbreak spreads, the cdc of theing its 14th case optimism.cord of the chairmanw is coronavirus in the united but of course, we do research on states. how big of a financial shock the macro impact of all kinds of events.ical could this be and what would it and ceo. mean for the banks in china? thanks for joining us. andrew: news from china about a spike in cases. the short answer is we are one of the worries was the really not going to trade the portfolio based on politics or based on want outcome last night levelp 500 at its highest in the u.s. in one state. but we are going to look back at history and say, what happens chinese did not have a handle on the problem. we knew there was bad testing at when policy gets enacted in in two years now, a popular which sectors benefit? for us, that is the outcome. a lot of underreporting. series abound by times like it is not who is in the white the are starting to report accurate figures. this. that is encouraging. you see a hand of algorithms. house, it is what congress looks like and what policy is likely epidemiologists have been to be enacted. so we think it is too early to tradingf all of the tell right now. predicting a peeking in late but there are sectors that you february, early march. want to focus on the could be at nobody knows where it is going. we are not seeing anything that today is algorithms. risk. but we are not making meaningful would disagree with those portfolio shifts today in those sectors. shery: thank you so much for your time, a b bernstein cohead assessments. the real question is the impact majority, 50% to 60% are on the economy. of investment strategy. china is in a different position coming up, we take a look at a algorithms that are programmed gas station deal that could be worth over $20 billion and is and out that it was 15 years ago. to trade for money. it is a larger part of the global economy. drawing the interest of the owner of 7-eleven. the service sector is 15% of gdp the algorithms are connected to this is bloomberg. ♪ growth. fundamentals or two news of the people are buying things. that will be a big impact on the

day, they have their own upside economy. government if the biases. increases the injections they if you're a provider of the have been starting to do not really going forward, we will this is a market like have a huge increase in bad loans and the popping of the property bubble. one where you are not half of 2020 could be constrained by fundamentals and the providers are very happy to risky. the banks, instead of having thethings like a feather in four or five banks that need to be propped up, you could have 15 or 20, which would be difficult. spring breeze and that is what is happening right now. there are some fundamental of >> how much leverage and buffer this, but it is the outside bias that is really moving the space does the pboc have? markets more than anything else. taking the inflation numbers a >> i'm wondering if we get a few days ago for example, they better sense of what is really sharp -- another are different depending on which item in a basket you look at. you can assume the coronavirus will have a different impact on another chart shows some of the some aspects. riskier assets still have a long how difficult is it for the pboc way to go before recovery, so when they are trying to maintain

what does this tell us? financial stability and address leverage as one of their key commoditieshe lagan mandates? can be how much debt is rooted in the skepticism of chinese economy sustained? the life of the global economic nobody has been able to answer recovery. that because everybody looks at u.s., thein the japan, which is a different situation, the mortgage crisis in the united states, these are recovery is 12 years long and that is awfully long for different cases. my assumption is there is going economic rebounding. to be significant deleveraging people think there will be a and paying default importance of the country. the second half of the year, the slowdown rather than -- in her government is putting in place rather than later and traders methods to handle that. there are a couple things they are skeptical of the length of are doing. they are allowing default to increase. they have gone up significantly. the economic recovery greatest they are creating recap also, high oil prices are linked companies or asset management some fashion or another to companies do out out companies higher prices. to default or recapitalize it. a lot of this capital is not coming from the central government, it is coming from local state firms or private >> back in november, you told us capital.

these systems are putting in that the days of the bull market were limited and they would soon place are a good idea to try to see a limited pullback. get it away from the central given the resilience of the bank balance sheet. the question is how much market, what is it going to take capacity is therefore handling to get a pullback of these these? markets? i think there will be a lot of unemployment. shery: this is "bloomberg we are seeing that, it is just think in the u.s. market, markets: asia," i am shery ahn not being reported. the bigger concern for investors in new york. the primary non-algorithmic investors is,e -- haidi: and i am haidi stroud-watts in sydney. determinate is going to be the nissan has launched a civil suit for damages against former will the economy go in a leader carlos ghosn. $90ng in yokohama tailspin? so far, we have not seen that. probability assessment of the political climate. they can hit economic target in other words, the markets million of "material damages if probably have to driven by it's been a company as a result of his fraudulent misconduct." and then some, what does this the belief that bernie sanders tell you about the messaging and the amount might rise depending thinking at the top? has a chance of being the jinping having his on any fines the company might have to pay. listen says carlos ghosn democratic nominee, but he is not electable, but a sanders false narrative about the underreported his salary and country is run. these targets are meaningless hampshire, many used company money for personal because nobody trusts the figures anyway. he is getting that information gain. shery: scaling back plans for a second tech vision fund, saying think that it improves the it could become a two-stage deal from the provincial level officials. i not pay much might do that. probability of trump. with a smaller initial phase. he says vision fund ii could be i am more concerned with

industrial profit growth and the on the other hand, it may also like petepeople led by softbank itself. rate of defaults and whatever the banks'profits that are they aftbank has been battered are buttigieg or michael bloomberg report. we can sometimes get information from banks on hong kong with himself are not series of missteps, including .he botched ipo by wework anti-capitalistic, having a defaulting loans in china that is pretty good. greater chance of being the haidi: great to have you. democratic nominee because then there is not the selectable and bloomberg was the first to report that potential buyers are looking at marathon petroleum speedway gas station chain. lots more to come. among those interested are i, which controls therefore, that since the market up. this is bloomberg. ♪ the political news that will come and go between now and the 7-eleven chain. november are the biggest risk and probably the strongest what is the scoop and how much factor determining the course of where we go in the next six to nine months. >> i'm going to put it back a sense would it make if 7-eleven tuly this? little bit. >> marathon petroleum announced last year that it would create a bernie sanders, if he were to be elected would be good for the standalone company for speedway. market because of the socialistic policies and in rumor was forced to report that speedway was actually looking to order to fund those programs, be sold. at that point, we didn't know the bidders. you reduce economic growth. now we know the operator of 7-eleven is looking.

but there is also competition from the european buyer, tdr- >> there is a phrase that it may be more popular in australia and controlled eg group. the u.s., but the phrase is rubbish. bernie sanders would not be good shery: which one makes more sense from marathon petroleum at for the stock market. this point? liana: there are a lot of synergies. sanders is a socialist, go how many convenience 7-eleven stores you are in the u.s., itialism is not good for -- and there are a ton of speedway locations. they could see a lot of savings would be good for the markets if they had a bigger footprint. group also controls i'm afraid is rubbish. convenience stores in the u.k.. >> thanks for joining. so it is really what makes more sense to shareholders. --ing up, it could come down to taxes, reh a deal? interesting angle. >> we are going to unite together and defeat the most liana: elliott management, one of the largest hedge was treasua dangerous president in the modern history of this country. lot last year to break up into >> we will see if the call for pieces. and the company agreed to this

unity will stick. this is bloomberg. breakup. elliott management has an ♪ them.ent with but if you can imagine them in your boardroom, they are obviously under tremendous pressure to create the most value for the shareholder, but there are probably also getting some decent advice on where to go. his is a complicated deal. we heard it could be up to 26 alien depending on who buys it, so this is a very large transaction. see which way it goes -- we heard it can be up to $26 million depending on who buys it. haidi: we heard of some tax ♪ >> this is "bloomberg markets: efficiencies that come into asia." singapore's biggest bank sees the coronavirus hitting play. revenue. liana: one thing analysts have been talking about is that if they posted a higher fourth the company were to spin off and not sell, that would be more tax quarter profit. efficient for the company and its shareholders. but if you sell for a lot of cash, it could be a faster again. so it depends on how the company is looking at it. we will try to figure out in the coming weeks how this goes. has the coronavirus, not just hitting the numbers, but hitting haidi: so what is the timeline here? when do they need to make the close to home for dbs? by?sion

>> that is right. let me go through the numbers. liana: marathon said they would numbers, 1.51 billion try to create the standalone speedway company by the end of this year, so there is still time. make transactions take a lot of time. so i would expect sometime this dollars, a 14% outside, the dbs year, we know which way it goes. there is certainly a lot of has given a positive outside in interest, very active right now seven out of 11 quarters. when you look at q4 numbers, a in terms of the sale. new high from an equity up 13%, pretty resilient, driven by haidi: how does the broader lending and wealth. those are not the numbers we are macro environment potentially change the conditions of how this plays out? liana: so in terms of retail, looking for. the are looking for 2020 numbers there has been a lot of weakness given the coronavirus and dbs globally in the retail sector. says it revenue could be impacted by 2%. but one place that people still shop his convenience stores and there is a caveat, if the virus is contained by summer, and gas stations. this has been a pretty viable business. it almost is a bit separate from there has been no clarity on that, dbs came out to say, it some of these global macro concerns affecting the global will support the community, it economy. is imposing a moratorium on loans for small and medium ondi: bloombergs liana baker enterprises. this has been quite a challenge for smes, which have impacted by

the-speedway sale. interesting story. let's look at markets we are the outbreak of coronavirus and dbs doing its part. tracking at the moment and what we expect other banks to do the we are setting up for in terms same. seen dbs being welcome back to bloomberg of the tokyo open. we are seeing an upside of .07% in sydney, we also have new hit by the coronavirus at their own headquarters. >> you are right. markets. zealand switching to positive earnings, they had 300 hashat chairman jay powell rbsitory, point 02%, as the come close to say policymakers said it was sanguine about the cos there monetary employees and that building, dbs policy decision yesterday nikkei make that the firepower of the futures looking pretty flat at is not the first financial next recession. the moment we are seeing trading the current level of interest institution to be hit by that. rates meet fiscal policy has to these three banks have been hit by that. in the future sessions at a positive as well. we heard from the ministry of manpower saying they have to the yen when it comes to fx is take precautions. that a three-week low. the kiwi's can tonight a on -- the economy. much for theyou so gains. much more to come. latest, during us from this is bloomberg. ♪ singapore. plenty more to come. >> low rates are not really a this is bloomberg. choice anymore then they are a ♪ fact of reality. everyone uses their phone differently. it is much more likely we have to return to the tools when we hit the lower around.

scale surfaces to drive longer term to support the economy, we will use those tools aggressively. >> the u.s. raising a plan to trigger renegotiation with the wto. president trump has often complain that some countries charge higher than the u.s. does. eu lawmakers have thrown their weight around brexit with u.k.ns decision parliamentarians, racing key proposals ahead of the meeting in brussels. that's why xfinity mobile lets you design your own data. amid a deepening you can share 1, 3, or 10 gigs of data between lines, mix in lines of unlimited, and switch it up at any time. divide.

all with millions of secure wifi hotspots >> global news 24 hours a day, and the best lte everywhere else. powered by more than 2700 journalists and analysts in over 120 countries. it's a different kind of wireless network, designed to save you money. switch and save up to $400 a year on your wireless bill. this is bloomberg. and save even more when you say "bring my own phone" into your voice remote. that's simple, easy, awesome. >> senator bernie sanders as click, call or visit a store today. doubt the judge last night. the top two senators were and i were in iowa, but this time unlikely caucasus, we got results rounding out the top five after that. discuss as well as look at to jordant contest is safety and. does i will give us any indication of how electable bernie sanders really is? >> i think bernie sanders has haidi: breaking news crossing emerged as the democratic ♪ front-runner. the bloomberg. open to taking kkr for his we are at a liquidity driven he basically tied pete buttigieg in iowa and had a clear victory

fiber deal said to be open to market. >> abundant liquidity. in new hampshire and some are buying a stake by kkr. saying he was expected to win by >> liquidity is tremendous. said to belia >> coronavirus. more new hampshire, but the fact >> coronavirus will not have a of the matter is he finished at or near the top and the planning this because it is open dramatic impact on the u.s. economy. to purchasing a minority stake in the landline network. >> it is starting out quickly democratic field is going to have to contend with that. looking ahead to nevada, you a combination of fiber and turnaround has been. >> it looked like we were headed copper assets at 7 billion euros will see some of those towards recession. candidates go after senator according to people familiar inflection the senators harder than they are with the matter. we know the larger goal is ready have. point. >> if the fed tries to remove yang -- somedrew building a single national italian network. that is an approach favored by the government. themselves. >> is that going to cause a by from nga -- soundbite from pullback in liquidity or ba risk listing the off environment? andrew yang. our risk off international funds in this refinancing with the potential take a listen. >> it is system 24 many of us, network deal with its open environment? >> it is critical here. rival. but it shouldn't be. every single day i have been we are hearing that telecom italia is close to picking kkr assome of our earlier guests campaigning and have had supporters say your campaign to acquire open fiber because markets shake off virus fears, help me out of a depression. telecom italia is open to thank you. go --re do yanks voters but perhaps not for that long. purchasing a stake in the landline le network. china restoring apelike and new yang's voters go? cases after they changed their methodology in counting those

>> some think it will be senator we will bring you more details as it becomes available. infections. let's see how this is affecting ritika has the first word the markets. long, maybe not for that headlines. ritika: taiwan is lowering its sanders, but right now it is unclear. forecast for growth this year we did see a change in the i think a lot of people are waiting to see how that all with the coronavirus outbreak markets mood after that headline set to weaken production and consumption. gdp is now seen expanding about drop. breaks out in the fact that there seems to be confusion over andrew yang has not publicly whether or not we are actually endorse any of the remaining 2.3%, down from a previous projection of 2.7%. seeing an improvement, a slowing in the spreading of the virus, candidates make it hard to the infection is also seen pushing tiling closer to decipher. or if cases have been recession. underreported and things are they will be using the same only going to get worse from growth could have been less than 1% when tourism plunged. here. the market movement is not technology in iowa as a did in has --ctronics industry exaggerated. not huge, at least see the nevada. the coronavirus parks and exit anotherup for nikkei and the topix. within the nikkei, it is some of is ahead of the rollout of 5g. [indiscernible] >> quite possible. it is the first time in the 33 the heavyweight companies that are helping keeprelatively mode. year history that it is being there are business concerns about the ipads, that the called off. the event normally draws more below 0.2%. than 100,000 participants across tablets they will be using. the world, new products and the bigger problem here is you whiching and softbank, innovations. make up 40% of the index, some have a contest in iowa that is ericsson, sony and nokia led the of the best-performing companies pullout. lawmakers have thrown their -- 14 percent of the index, some weight behind the brexit supposed to win know the field. of the best-performing companies. if there is another unclear negotiating positions ahead of upcoming talks with the u.k.

result in nevada, you might see parliamentarian, opal emily take a look at the commodity the continue heading into complex. adopting the head of the meeting this is where we have seen the in brussels later this month. steepest decline amid all of ae eu and u.k. have both -- south carolina primary because these fears surrounding the it is quite possible a lot of virus. we have seen wti crude oil take contests might not have a clear deepening divide over the trading relationship. a hit. result that these contests are democratic front runner bernie supposed to have. sanders the other presidential candidates move onto the next it was higher earlier today. still gaining for its third day. stage of the white house as copper falling after two days of gains. >> who appears to have the front we see that safe haven of gold running in nevada? amy klobuchar will be heading in iowa expected to announce starting to get a bid. official results in the coming with a fair bit of momentum. days. look at the one-year chart of >> i think it is too early to it will begin a limited recant copper. right,been quite the his this weekend, double checking tallies from -- tell who the centrist candidate requested by sanders and his down 7% over 12 months. will be because you still have current closes rival pete for the end of the chart, caused joe biden who has taken some buttigieg. real blows in iowa and new by fears of the coronavirus, president trump does not mind if the philippines eliminate its hampshire, and you have pete copper falling into a correction, down more than 10%. military agreement with the u.s. buttigieg who has done very well the defense secretary saying it it was after these headlines did and you have of course bernie draw. analysts saying investors should will be a move in the wrong direction. the president said it would save save the change for when it sanders who has won those two states and can reliably argue the u.s. a lot of money and he would be ok with it. comes to copper, if you look at that he is the front-runner in a manila washington split may prices, they are asymmetrically the field. the problem we are having in

nevada is there has not been a complicate u.s. efforts to priced to the upside because the contest beijing's growing decline was so immensely steep influence in the south china and quick. lot of polling recently, so it sea. global news 20 for hours a day will be hard to see how it shakes out and also the factor on air and on quicktake by haidi: we will stay on market of the: area union -- the: area bloomberg, powered by more than action, bring in a bloomberg 2700 journalists and analysts in anchor. -- culinaryry more than 120 countries. this is bloomberg. shery: here's how asian markets optimism for continuing rebound in china faded quickly. >> yes. union. are trading at the moment. we are seeing aussie and kiwi a lot of uncertainty going into stocks gaining ground. if you are tuning in an hour ago, we were 1% what recouping nevada, but you have to assume utilities and tech leading the gains from the asx 200. bernie having won the two previous contest heads into that when it comes to kiwi stocks, up losses. that will be challenging as we one is the front runner. speak, the market grapples with >> thank you so much for joining a quarter percent. this. a new reality. we have seen the rbnz hold us. steady, also indicating there is silicom, how has alibaba what matters moving forward, a no prospect of a rate cut this whether or not -- we were year. the kiwi dollar really talking about this online -- performed -- still to come, how whether or not this is the start strengthened and jumped the most of something incrementally new has alibaba performed in the in about two months. every day. era?corona -- coronavirus we are watching closely the fx markets as well. when it comes to nikkei futures, this is bloomberg ♪. the japanese yen holding steady. we get incrementally less over the coming days. this after the japanese yeln fet to numbers the markets had of the weakest in three weeks on adjust to when you look at growing risk appetite. dollar-yen, u.s. futures, what we have had risk on sentiment across the world. have you.

u.s. futures holding steady after u.s. stocks reached record i guess we have to wait and see what happens. highs again on this session. nearcouraging one, nowhere china stocks may also hit something of a milestone. david ingles joins us now. compared to 60 minutes back. growth expanding just we are really watching closely whether or not china manages to beyond -- beyond just china. what do we know? raise all of the losses >> deutsche bank was out with post-lunar new year break. one of its strongest warnings of how close are we? david: it depends which index a recession in germany and we do you are looking at. if it is the shanghai composite, not have to think that far we are within 2.5%, roughly between germany and china. speaking. about 1% away. we have a bloomberg chart that shows this. generally ahat is the global economy is in a 40 quarters oftive relatively good day, but it could come today, it could come growth going back to the global tomorrow if the rally continues. the other point i want to make, crisis. not even -- not even the it's in no way a reflection of european debt crisis, slowdown and china -- slowdown in china. the markets. reversing their pessimism over the economy. , $280 billioner even if you look at the stock market itself post holiday, we are close. keep in mind, before the

probably lost output, if that holiday, it was another 3%. happens, we put an end to the street. that's another level to talk about. when it comes to the bond -- the street. shery: you are watching iron ore markets, despite the rallies in the equity market and help from in particular. >> morgan stanley released a liquidity, bond markets, bond note. yields have barely retraced all the way up so we are still on outlook, base case track for one of the best rallies in chinese bonds since 13.7 million tons of iron ore 2015. rethinking of the demand, that is the impact. that would lead to a 1% impact economy impacts year. on steel production in china in ofdi: fairly different set 2020 from a 2.4% to 1.3% growth markets for bond investors. you are looking at more issuance target. but also potentially more they are revising that lower as well. default so what is the risk profile that bloomberg economists have mapped out for >> thank you. us? david: some very good research from our guys that bloomberg. raisedestions being let's get a quick check of they have literally and about the success of president trump's phase one trade deal. figuratively mapped out -- i think you have a graph -- the oil industry leaders have warned the administration of that big some of the latest business risk profiles per province in flash headlines. u.s. will struggle to produce

the energy products that china china. they are reason -- the reason filing six $91 billion for has committed to buying and the deal. let's bring in an energy they are doing this is the reporter. let's get started on the impact ministry of finance increased damages inflicted on the company the quota for special ed of the coronavirus. it is not just about the u.s. government debt, and being able to raise it as well. on it might rise depending struggling to sell this, it is, can a china by all of these as we take a look at the bond products when it is reeling from any fines that they have to pay. market, it's counterintuitive in the affects of the outbreak? the sense of the hubei province question everyone has one example. the epicenter of the health -- they are scaling back plans is asking. crisis, but it's not the most at when the trade deal came out, for a second fund and it could the idea of $50 billion of extra risk when you look at debt to purchases of u.s. commodities, become to smaller than the it seemed big at the time. gdp of certain provinces. initial phase. we were looking at weaker doable, but big. provinces and the west that rely on beijing funding. not with the coronavirus, you the big ones have relatively are seeing nature hits to the reputation has been a series china's oil demand. refiners are reducing bonds less risk exposure if it does of missteps including often because nobody is driving to work. because nobodys come to that. shares -- office sharing we something to keep in mind. work. david ingles in hong is driving to work. wall street expects it to be possible from now on and kong, taking a look at the open analysts say for several years they are filled to the brim with in the mainland.

oil has climbed up above $50 a gas they cannot use. the idea that china will be able they will need higher sales and barrel in new york amid easing important this extra services to keep boosting sales fears of the coronavirus and the prospect of an opec production outside the market. cut. it comes as the cartel smashes u.s. energy and goods is restrict spending on its estimates with growth by the starting to become questionable. there might -- there may need to first quarter by 448,000 barrels r&d and speaking of tech, be some waiver granted to them a day. send onexpected to we heard from the american because of this disease. haidi: what is interesting, with petroleum institute warning there would be difficulties in fulfilling chinese demand. the downward revisions as to the let's get more from our market detriment of the demand for editor adam hague. thursday. are these bigger than what the china's economy when it comes to andn carter is the founder market has been expecting? commodities at allergy, there can't quite catch a break when are concerns from the american focusing on e-commerce companies petroleum institute at the u.s. in emerging markets. it comes to all the demand. will not be able to export adam: absolutely. great to have you. enough to me to the deal. isn't this what everyone is going through? the epi has met with the what indication do you have they are trying to assess the despite what early it is on some of the e-commerce companies in demand of not just energy products in china but globally. they have cut their first president before this deal was announced. china? quarter estimates. the question now is whether this i think it depends on semantics. >> we are seeing a mixed bag of is just a one huge event or you results. these phase to meet there are some that are benefiting and obviously lots of have to downgrade the 2q numbers one deals would have to export as well. oil has had a decent bounce as one million barrels a day to parts that are hurting. china. well and that has been on the

broader risk on environment in import them. i think it is very clear that terms of willing to shrug this the coronavirus is going to affect china and i think it off. if china were -- if it were a lot of this is in the price as would be meaningful. well. the expectations were already there. the 440 figure was a little more about switching trade flows, that is easy. i think the b.i. wants china to howink we will have to see than some expected, but it is a -- ine million barrels confirmation of what we have been think the epi once china to buy it is affecting alibaba's core business. has been reporting through our one million barrels in addition >> given online shopping, it to what it is already buying. own sources for the past few weeks. the demand side of the equation the amount of export ports the would appear to be virus proof, is being tested very thoroughly and you still have a little of u.s. has does not meet in capacity yet. but is there significant supply that to come out in the updated to be phase one trade chain risk here for alibaba? forecast. >> there is no doubt that there forecast what are the deal to benefit the u.s. oil is supply chain risk. exporters on top of what they for the global growth picture? are already doing. if you are quarantined at home because this is what it is they do not have the capacity to telling you. do that. any time, to work for world stopss the thank you so much. growing because of this outbreak the odds are your expenditure is in china. adam: absolutely, but the sense let's go to first word headlines. hashe electronics industry on necessary items will go down. of whether this is a first my guess is it will have a net quarter event or something that scrapped its biggest annual is more long-lasting is really negative effect, but remember showcase as the coronavirus where the debate is at the outbreak sparked an exit is of moment. the energy market and oil delegates ahead of the rollout specifically in china is no of 5g. this is a sector that is growing it is the first time in the 30 , so even the material impact different. the recoveryake on year your -- 33 year history

that the event has been called will be the fastest growing in the world during >> here in the and a quick rebound still has off. its doubters. there are plenty of people who u.s., big tech companies really saw how. is that different over the think that is not indeed the case and this big rally we have jay powell says low rates, in seen in risk assets is overdoing emerging markets with companies like alibaba? it. you are still getting the e-commerce growth. the market is willing to tell you something different and make his second day of testimony, he told lawmakers the current level >> it is decidedly different. the assumption that this is just in of the world, people live a short-lived event and there of interest rates means fiscal policy has to support the will be a containment. emerging markets. economy if it weakens. there is already certainly a he set the impact of a slowing down of the growth rate, coronavirus will show up in most of the world, question economic data, but it is too china, india, africa, they are of the number infections both in early to tell if it will have getting their first ever any material change on the u.s. hubei but more broadly computer and their first ever economy's outlook. internet access, so they are >> low rates are not a choice the one consumers, so across china. if that is your base case anymore. they are a fact of reality. scenario, clearly with oil above subpart of the story that is we will have less room to cut. $51 a barrel in new york, this that means it is more likely we quite big is fintech and they potential for further upside if you don't believe the total will have to turn to the tools we use in the financial crisis. story. haidi: broadly looking at the forward guidance, really on that part of the markets, things seem pretty market, so i think it is sanguine, yet more record highs different for these companies. large-scale asset purchases of longer-term securities to drive side, what isl at the close of every u.s. session it seems. longer-term rates down and

is there is a sense that the key support the economy. we will use those tools, we will concern about a liquidity punch the outlook? is not going to happen because use them aggressively. >> the u.s. weighing a plan to central banks will rush in to how important is it for the save the day again? raise its ceilings on tariffs to future? adam: that has to be part of it. >> the cloud is the big deal trigger a renegotiation with the world trade organization. everywhere and alibaba business that is one key component of the equation this year. the fed has been very clear in that, or the market's take on complainedrump has is likely to grow and it has a the assumption that the fed will that some countries can charge provide the necessary backstop hier gt's on a certain good long way to go. than the u.s. does. if it needs to. , saying themples we have already had quite significant movements from the fintech, i think the last pboc on their side of things. rules are tilted against america. valuation was $150 billion and he you will makers have thrown of course, it will need to be their weight behind the brexit williating position -- eu courted if this outbreak doesn't they streamline their equity spread significant and becomes a business, so it is a big deal. significant demand story for ers have- eu rulemak global growth. we don't see how big a deal it of course, you will need to see coordinated central-bank action. is because our consumption thrown their weight behind the certainly markets at the moment taking the view that there is brexit negotiating position. infrastructure, our bank enough ammo in central banks' accounts, everyone has a card in their pocket, so i think it is portfolios to do what is needed to backstop economies if it getting bigger quite rapidly. global news, 24 hours a day on >> in the end -- thank you for air and on quicktake by bloomberg, powered by more than 2700 journalists and analysts in indeed gets worse. shery: adam, thank you. more than 120 countries. joining us. coming up next, softbank's

>> coming up, experts are waiting to hear whether china vision fund 2 is still alive but this is bloomberg. coming up next, our will allow them to go to the only just. front line of the coronavirus outbreak. we will be live next. masayoshi son says the ambitious interview with asx chief executive dominic stevens after this is bloomberg. target is now off the table. we will discuss the group's ♪ first-half results reflected a boost. latest earnings, next. this is bloomberg. this is bloomberg. ♪ ♪

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thousands of mattresses to those in need. experience the leesa hybrid mattress. right now, it's on sale. order today. go to leesa.com. >> this is bloomberg markets. haidi: this is bloomberg ♪ i'm in sydney with taylor riggs. markets: asia. i am haidi stroud-watts. shery: i am sherry ahn. haidi: the asx as is first-half let's check on the first word news. says it ishe imf softbank group returns to profitability but questions remain about masayoshi son's results, rising 1.8%. freewheeling bets. recovering quickly from the he says he is scaling back the the exchange said that size of the vision fund 2 and impacts of the coronavirus working the door to work with although there remains paul singer. instruments unchanged. joining us is -- great having uncertainty. factories returned to operate in over to the asx in you with us. i say they returned to the extended lunar new year sydney, we are joined by the ceo break. a full impact of the outbreak profitability but it was a big miss of analyst estimates. , dominic stevens. how difficult is it to really take us through these results. and expect to see the recovery. predict softbank group's what is your outlook given there are so many uncertainties facing

taiwan is lowering its forecast earnings when it has become a for growth this year with the vehicle now and to decide what the macro economy. just to take you krone outbreak set to weaken profits the book or not? through it, the great thing true.h, that's production. about the result, revenue up it is not very easy because it infection is also seen 7.1%, which is solid for asx. is no longer about the operation. pushing thailand closer to a you can predict about the recession. operations, but these are revenue was coming from our private equity market valuations which go up and down. the way amasa was explaining broad across the futures opec is slashing its forecast as , raised by double the coronavirus hits demand in yesterday, he's not involved in the valuation. china and reducing fuel use in it is difficult. digits, and our services the first quarter by 440,000 business, the equity market and nevertheless, the results still highlight something very important that we have been barrels per day or about a the technical and/or information highlighting as well, which is services we provide to the that whiele alibaba creates a market were up 10%. third. prices have sunk as the that has given us a solid infection and millions of people lot of value, it seems to be revenue result. are quarantined. getting lost and destroyed with saudi arabia wants to consider a lot of the other ventures, at the impact line, our result new production cuts. other things that softbank has been doing. was 1.8. haselectronics industry is because wethat that is what we saw yesterday in the results as well. all the profits generated by the scrapped its biggest annual operating units were wiped out showcase ahead of the rollout of sold an investment we had and did a special dividend last half by vision fund investments. 5g. it is the third time that it has and because of flights being this quarter, it was negative.

next quarter, it could jump. the real values being created lower, we had to support the been called off. through alibaba. haidi: what do you think of clearinghouses, across the board, a good result. softbank putting its own funding again to bring to life vision 100,000 people venture across fund 2, which investors seem to the environment is .he world be pretty skeptical about? atul: yeah, we have been writing questionable because while you have stocks trading close to vision fund 2 is a risk to record highs, liquidity no >> global news 24 hours a day, powered by more than 2700 softbank investors because the journalists and analysts in over 120 countries. problem here or globally, you listen to the comments on the faster you come out with that or more debt your take fate, yet dealmaking has been at >> we are sitting up another the slowest start in over 10 asset cells you do, that will years. that carries on from create leakage and value withdrawals. bullish day after a fresh record destruction for softbank and reticence explain the in new york. softbank shareholders. it is something that i want to bloomberg markets anchor joins see. value's being created in alibaba or caution you are seeing? , anotherth more i think these things go and you have leak a lot of that to vision fund which has created in cycles. milestone of sorts today. reputational damage, bad headlines. we just might see and it will if you do vision fund 2, especially in a hurry, it is capital raising as a total, it really risky because there's a take a relatively good day. lot of processes that needs to is a lumpy business, goes up and the main benchmarks are on track down. performance.d be included in these investments of post holiday losses right and the process. that is not there right now. in the middle of the range,

before long holiday reverses all hopefully as they have delayed, ipo's a bit soft, but they tend that is a good thing in my view. to go up and down. of the losses we have. haidi: because at one point does strongest month that is not to say markets are an investor just look at -- ok, for ipo's in about two years. completely reversed. jawe are hoping that takes up. softbank is essentially an investment holding vehicle that has a horrible run of luck or uncertainty, this is management, assets like wework. something we have talked about, that has not completely versed there is a lot of geopolitical -- completely reverse the back. and economic things going on in the world. what point do you think alibaba is taking the lion share of the good performance? top of thatw on . why wouldn't you just own baba so far -- instead? issues happening in china with atul: so, if you want to own the coronavirus, that leads to good long-term companies and you uncertainty. that leads to people needing to not as big, but still quite are a global investor, your do things. month,ook at the last 12 large. question is valid. why would you not just own alibaba? there are two other set of there has been a change in investors. people's expectation of u.s. interest rates, a change in we might get that today, maybe deep value guys are looking for evaluation arbitrage gaps, expectations of australian tomorrow. we will see by the weekend. of more is the prospect interest rates, changing views saying there is underlying value in this company but it is not of equity markets. self valued as highly, they came off a year ago, they from raising and more defaults in china. have come back. discounted 65%. that is one third of investors. , over the course not necessarily growth what can you tell us about investors. those? of the next 12 months, you have there's another set that cannot

invest in china, cannot invest a u.s. election and play out of >> our economists have taken a oft the fx up -- the effects in global stocks. the prospectively across if you are limited to japan only, you have few choices. you want to ride the alibaba provinces in china which are what is happening and china played out in the real economy. .ost reliant and the appended growth, really we can do that is through softbank. we think in the near-term, getting the latest continued volatility. numbers on coronavirus cases out that leads to the markets to of china now. hubei, the province where it is think it shows that as well. some degree. >> how does all of what you just the epicenter of the outbreak, reporting 14,840 new coronavirus mentioned affect your derivatives business when it cases as of today. again, 14,840 new coronavirus comes to demand for hedging solutions? one thing i point out, have the most confirmed cases of cases as of today. there seems to be significantly the virus, but there are too higher than the previous numbers it has been interesting and many factors. looking after these businesses, we got. there are some things that are stable through the cycle, some at the epicenter is among the we will get back to those numbers because this seems to be things when markets are a pretty high number compared to least risky in terms of volatile, we signal trading, when markets are uncertain, the the new cases we saw yesterday, despitent debt exposure which was 2015. ipo market and capital raising we have more than 44,000 being held problems. markets tend to slow down. the good thing is -- that is why infections all over the world. western look at the we continue to show strong but when it comes to the death toll, it is now at 1115. provinces, it might be more exposed. long story short, most important we will get you more on those stable earnings growth, because you have that diversified number

numbers later. we are talking to atul about the of businesses. with the government raising more latest and softbank. let me get back to you. debt. how that plays into the to started to keep in mind those let's talk about the elliott derivative markets, over the management involvement. course of the next year, we saw masayoshi son seems to be pretty options the next few weeks. some significant volumes in the >> thanks very much for that. optimistic about working with interest rates complex in the paul singer. what do you make of this futures business and clearing business. alliance? whether they hold at those just want to get some breaking atul: so, we have been news on the bloomberg terminal. levels remains to be seen. highlighting that they should be doing buybacks. in the first half, futures it is something in line with what we had expected. markets in the volume sense they had done it last year. almost up close to 10%. there's a very big discount of the clearing business was up the gap -- it's very large. $1.5 billion for the quarterly significant amounts from last year. it makes sense. estimate. they have done it before. continuing.trends income.net interest we are not even arguing they we talked to the markets, these should drastically cut their stake in alibaba. are a result of december, we put they own currently 26%. out results on a monthly basis. would givever time january has been a strong month, posting equity -- boasting the margin 1.68% of the previous them $5 billion to $6 billion that they can go and buy back their own shares at about 6% or equity and futures markets. >> that has been a huge growth quarter. 7% of their own shares. area for you when it comes to this is something that helps masa in multiple ways. derivatives. do you have anything special

the stock price goes up. planned for this industry? this part of your business? it is easier for him to attract the results appear to be on the and retain talent. he owns about 25% of the i think what we are company. .pside for the fourth quarter he also benefits himself. seeing is two things. there are many different ways in there are reasons for the market which this partnership could to be volatile. >> very interesting headlines work. joblast five years, a good coming out and the previous elliott also wants the same thing. they are looking for value growing our business and the investments. it works for everyone. amount of customers that can guidance, they are expecting the come. we make it easy for people all are you expecting some coronavirus to have 81% to 2% -- market,o trade on the sort of resolution to sprint-t-mobile to take some of . 1% to 2% the pressure off? not only providing access to the atul: that already did play out market, but providing services, certainly and not -- certainly earlier this week, with the putting their technology in our data center, providing judge enabling. not [no audio] information to make it easy for approving. those people to connect to our markets. what that means is, if you look earlier, we had fcc and doj already approved the merger. at the asx, there are probably we have been of the belief these 40% of market trades through the they say it is too early to know night session. market. global two organizations have approved if that will be too risky for a merger and then call to this fire's. disapprove it, but the market the fact that we reached out to was pricing differently. global traders and investors what else do we know from the $4.50.t down to cdc question mark -- cdc?

means that that has helped grow if the warm to say the business. if you look at the numbers over on tuesday, it bounced in a the last five years, you can see the growth. single day. >> thank you for your time. yesterday, closed $8.50. spring weather will slow the coronavirus. according to the cdc, that is a son the fact that other viruses it did take off a lot of pressure. like the flu have seasonal if that was not being approved, there would be concerns about still ahead, we will talk patterns, but there is no how masa and softbank would ceo.-half earnings with a specific data yet on the coronavirus and with -- if it fund going forward. will follow that as well. that definitely did help. thank you so much for joining us. next, alibaba set to report they have not yet an invited by earnings thursday in the u.s. the chinese government permit jeffries equity research managing director. japan producer which will show how safe or not the company is from biarritz based in china who have not been supply chains. inflation numbers just shortly. just taking a look at some of allowed at the epicenter of the the new lines that have dropped outbreak. what they arer that is next. in on coronavirus. this is bloomberg. ♪ 14,280 newting rg. ♪ expected to offer yet, but the because it is difficult cases. there having the distance of the the methodology for diagnosis has been changed again. coming inion and we know as of february 7 or earlier, they had change in recent days, they may be methodology to not include

patients that test working, but it is too early to say for sure. positive for the coronavirus but do not exhibit any symptoms. the organization has been perhaps like again allowed into china and they have shery: just yesterday, we were already arrived with more team members expected to come in the talking about how cases have coming days. fallen to 2015. >> growth revisions have been we had talked about the new cases in hubei province being revised down. the lowest is month. what are you hearing about the now we are getting this latest headline with a huge number. impact? >> there are some conflicting 14,840 new coronavirus cases. they are saying 13,332 new cases views. the imf sees the cover he of are clinical diagnoses. sharp decline followed by what does this actually mean? others recalibrating and we will have to give you more contacts as soon as we get more information. death moment, the hubei factors are showing a much more toll is coming in at 1310. pessimistic recovery. that is also a spike from the growth this year could be as low latest numbers which were just that 1115, haidi. in the 1990'skest haidi: yeah, methodology or not, based on evidence factories are you are seeing that market reaction.

the u.s. stock index futures reopen.ng to falling, s&p contracts falling . kiwi dollar also dropping as well. having said that, that has there losing $1.5 billion and gained quite a bit recently. we are getting japan inflation numbers out. still have ghost cities that 2/10 of 1%, that is quicker than ♪ >> this is "bloomberg markets: the flat rate we were expecting remain at home. asia." for the month of january and picking up from december's 1/10 alibaba set to report its of 1%. 80% of the stores in china, young china had almost 30% of year on year, that number is actually faster at 1.7% pace, latest earnings on thursday in their restaurants in china, you the u.s. let's take a look ahead with a had economists warning that if faster than the 1.5% we were expecting. bloomberg opinion columnist. a little bit of good news when it comes to the corporate and the virus passes, businesses how significant are these could be slow to return to producer inflation pulse in numbers for alibaba? is it more significant? normality and even worse demand. japan, but certainly you the lunar new year holiday question whether that is enough to move the needle for the bank of japan. we start every conversation with lots more to come. the coronavirus, but we are this is bloomberg. looking ahead to that impact. ♪ quarter, which is extended to try to contain the virus. the december quarter, fiscal what are we seeing? third quarter, is the quarter >> consumer impact is clear because it is sort of negative where they have a singles' day. the big shopping day for alibaba

as people are not returning to that comes up the quarter. work. you had that dampening on top of to be honest, no one really cares. that you still have concerning coronavirusirus -- fears about the spreading of the virus. and quarantine is all that some stringent that still remain anyone want to think about right now. for sometimes -- some towns out of shanghai. the quarter was probably good, solid earnings. is not business as but investors will want to know usual yet across china. their picture for the current in beijing, thanks so much quarter, what are they doing, what costs they are having to bear, how it is hurting. for joining us. ftc --o come, the that is all anyone really worried about. it is important in the fact that alibaba is one of the first major chinese internet companies facebook. this is bloomberg. to come out and talk post the ♪ virus outbreak. it will be important to see what is happening not only with alibaba but the broader market because there are other companies that will be coming out in coming weeks. seen some companies

benefit from the outbreak in the sense that consumers tend to stay home, they shop online or get food delivered. is there part of the business at alibaba that could benefit from this tragedy, if we can say so? >> in some ways, you can say so. we will see things like traffic and volumes rise. , ashe flipside, alibaba many as contemporaries, throwing a lot a projects out of their that are essentially free. free or almost free services to schools and businesses. on my education and work from home. a bout of going on. deliver struggling to products to home delivery. supply chain is an issue. there are places where you can shery: this is bloomberg say there will be higher traffic. markets: asia. i'm shery ahn. alibaba and most companies do haidi: i'm haidi stroud-watts. not want to leverage that, they do not want to be seen to be

let's recap some of these making money from it. extraordinary numbers we are i do not think they are looking hearing released from the to make money from it. national health commission in if they are doing the best to china. hubei province, the epicenter of come through for not only the companies and employees, but for the coronavirus, reporting 202 the country overall. caps on february 12. team companies are playing the total death toll at 1310. china. investors will have to accept it is really these new confirmed that. in many cases, they will be cases that are really causing spending money and forgoing revenue opportunities because the market reaction we are seeing. diagnosis standards there is a bigger picture at play. i think investors will understand that, they will look for coronavirus cases. we are seeing this spike of at other companies and see how 14,840 new cases. they react. shery: yeah, you have to really wonder about the market impact. we are already seeing the >> before we get to the china reaction with risk assets moving around, with safe havens gaining ground. as you said, it was the optimism open, which is almost upon us, let's take a look at how markets that perhaps the infection had are trading at the moment. been slowing down. just yesterday, we said hubei >> welcome back to bloomberg this is what we are seeing after that spike in the reporting of province reported the lowest number of virus cases this confirmed cases from china's month. markets. now we are seeing the province. take a look at a possible deal, methodology has been changed and nikkei off by 0.25%. and the dealers all of a sudden we have a higher

number of cases. just to put a positive spin amid all of the bad news when it comes to the virus infections, erasing earlier gains for the patientss the 3441 most part, but an upside of could fetch more than $20 billion. 0.2%. have been discharged. new zealand in line with the haidi: that is some good news. decline in the kiwi dollar. that is how it has been quite kiwi stocks trading lower. difficult to find any kind of leon a baker is here. trend, although stabilization shery: when it comes to the had really been the key. it is worth noting that in early market impact, it is all about planwant to announced a february, february 7, we know the coronavirus headlines. last year. not to mention central-bank the health commission did change commentary. their methodology back then as well. what they said is if a patient is it likely to result in tested positive on the test for if it was not for the biarritz, something concrete question mark the australian outlook would >> this could be one of the largest deals. coronavirus, they were not have been improving. symptomatically but didn't have virus,t were not for the at this point, we don't know. any symptoms, they were not counted in the total tally of the australian outlook would confirmed cases. we need more details and exactly have been improving. group, there could be risk assets losing ground. what this new methodology is. i'm wondering if they were to after weres going down other potential bettors, so counting the positive testing, then obviously you would see saw u.s. stocks closing at record highs. that spike in numbers. there is an active we believe that there. let's take a look at how the markets are reacting, we saw the behind-the-scenes that pushed we will see what the markets do kiwi dollar really stop in its for this marathon. >> as we mentioned, the when they come online.

tracks when it comes to its best the nextming up in estimated value may be around performance. it has been rallying pretty hard hour, we will take a look at the china open. we will speak to the head of the $20 billion, so what will they use the money for question mark since the rbnz came out sanguine about coronavirus. like the company will return a lot to shareholders, but they it let inflation overshoot. have to decide which creates mainland market open. value. we are seeing gains in sydney. get his view on how the virus is the company decides to pursue as futures in the u.s. reacting to marking strategy. will be joined by and the downside. creating and it is one concern we are seeing s&p contracts of by 4/10 of 1%. asia equity analyst. this is bloomberg. that shareholders start looking at. gold is now seen. ♪ i am wondering if we can bring up yen, because it has been a across the u.s., there are prevalent theme. thousands of these and it would shery: we are taking a look at really turn the corner for the japanese yen, bouncing back marathon which is under pressure after falling to the weakest level in three weeks. looking for new leadership. not to mention the offshore yuan >> does this satisfy the is losing ground as well. we will have plenty more to come. activist pressure? this is bloomberg. ♪ they are not allowed to say a hi! we're glad you came in, what's on your mind? whole lot, but they do have an agreement with the company, but they put pressure of the company to spend off, so this was set in

motion because of the pressure, but we don't know until we figure out what transaction marathon chooses to see what the reaction will be from shareholders. economy to scale synergies, what is the lie? >> imagine how many 7-eleven's there are in the u.s. and you put them together with all of the gas stations. you can imagine, there is a ton of synergies. could be a pretty compelling proposition. >> you mentioned a little earlier the marathon has been under pressure. for hiss satisfy them more coming down the line question mark >> we will have to can you help keep these guys protected online? [ fast-paced drumming ] see which transaction they easy, connect to the xfi gateway. choose. what about internet speeds that keep up with my gaming? shares have been up on the news that it could create quicker let's hook you up with the fastest internet from xfinity. value automatically in what about wireless data options for the family?

of course, you can customize and save. shareholders pockets, but as i senseefore, it might make can you save me from this conversation? [ fast-paced drumming ] that we can't do, but come in and see what we can do. we're here to make life simple. easy. awesome. so the activists have not ask. shop. discover. at your local xfinity store today. communicated. it is all happening behind the scenes. we will keep you closer when we know more. >> thank you for joining me. pressure as the ftc demands acquisition details since 2010. dealsok made most of its within that period. i spoke to michael levine yesterday and he said facebook is most at risk. do you agree? >> probably because facebook has artie been in trouble for a lot ♪ haidi: good morning. of practices. i think there's a lot of fear that the companies acquired over the years were aiding in that they just major markets have just opened for trade. rishaad: 9:00 a.m. thursday in

shery: good evening from beijing and 8:00 p.m. wednesday. ability to really come out and welcome to "bloomberg markets: china open." bloomberg's headquarters in new i'm shery ahn. collect information without them york. welcome to "bloomberg markets: haidi: i'm haidi stroud-watts. asia." we are counting down to the open fully grasping how intense that ♪ of trading and in the chinese was. mainland. as you look at and amazon and the coronavirus widens as the whole foods, it does not feel infection hits local events in the same level of overlapping hong kong. shery: opec is slashing that what that might has come a haidi: the coronavirus widens, forecasts for oil as the virus but they are looking at smaller hit demand and u.s. energy says hitting global events including acquisitions, but you get the sense that it is the same type. the mobile world congress. it may not be able to satisfy >> smaller acquisitions are china's needs. market seeing morning highs on actually harder than a whatsapp or instagram because they are so bid optimism. haidi: planes, trains, and combined with the company. although not all agree. automobiles will assess the is that a case as well? over 250x rising to >> most of the acquisitions, you would not even know they million aussie dollars. happened because the products have been shut down and the we have breaking news at the moment. employees have been integrated. nissan is considering lowering full-year forecasts. you are basically buying the company for the talent or the nissan is also considering lowering sales targets. we do note nissan has been product and you don't even bring all the employees with it.

i think things get blended and troubled recently with the ou of carlos ghosn. really quicker where you see a they reported three consecutive quarters of declines. we are seeing nissan saying it company like instagram operating is considering lowering on its own for years to come. full-year forecasts. >> why is everyone so terrified? they have also been affected by the corona boris -- coronavirus outbreak. are there a few cockroaches? >> they are describing this as a let's get a check of the broader markets with japan and south korea coming online. way to go out and gather >> it is a big day for earnings. information and see if there are any patterns of behavior. we have roughly 100 companies are we seeing that facebook is constantly buying up across the asia-pacific region that will be reporting alongside competitors, constantly acquiring companies and taking what we just heard from nissan. the data and not disclosing we will see what companies have that? to say about the coronavirus. it is being framed as how the deals come together in general a relatively muted start to the day. nikkei relatively flat, within and i think you brought up a good point which is what is there to hide question mark if 1% of pre-coronavirus levels. things have not been disclosed, is there a reason for it is they within its 50 day moving

average, staying near the were too small and no one was required to do it in which case no harm was done? technical level. you do see the yen moving higher need tonk th today. .his after seven days of losses understand what they have been missing all these years. ofperhaps the level we will see if that is safety bet it does return. we see a slight bond rally, sending yields lower by one regulatory scrutiny just comes with the territory now? basis point. >> the last couple years, the south korea does come online. thatem -- it has told us it is a bit more optimistic. the problem is going going to moving higher by roughly a third get bigger, not smaller. we have been talking about of a percent. in australia, stocks moving regulation since the end of the higher, getting closer to new 2016 election and a lot of that record highs. we see new zealand stocks lower. with the exception of gdpr in this after yesterday, the index europe, a lot has not happened yet, it has just been discussed, did touch a fresh record intraday. so if you are an apple or whichok at s&p futures, amazon, you are at a scale that are fading after touching a record high, but also the dow it will welcome all kinds of regulation, so this is a small and nasdaq didn't touch record step in what is probably a much larger journey over the next highs and close at record highs. .et's look at the fx picture five to 10 years.

>> we have antitrust you look at risk, the aussie dollar falling. the safety of the yen rising. conversations, where are those conversations? qe falling too. talk everas been this after its best day of the year yesterday. since gdpr there will be a that after the reserve bank of new zealand did hold their version coming to the u.s. and it hasn't. california has started to meeting, holding cash rates thatment more rules, but steady. they do not project any rate cons -- rate cuts this year. is statewide, not necessarily going to help people throughout the rest of the country. athink the biggest issue is political one and a lot of you look at 10 year treasury people cannot seem to come to an agreement over how the companies yields, very small intraday move, holding nearly 160 level. should be handled. even facebook is not broken up. very risk off after these is there a way to contain this by looking at the data? >> whatsapp has 2 billion users. new numbers from china's health commissions. almost 15,000 additional cases had we monetize that and make of coronavirus, as health experts from the cdc say they money question mark >> are waiting for an invitation considering there was am is no money coming in, it is almost from china to join an international group headed to

more shocking. rouen, the center -- headed to what the company is doing now is wuhan, the center of the virus. get businesses onto whatsapp and hope they can charge them to message users. we had a lot of criticism over the veracity of china's data reported every day and criticism over the idea that of a changed methodology to exclude people it would pay to have the that were asymptomatic. intersection -- the interaction are they going back to my guess with people. the old definition now at we are seeing this spike in a new confirmed cases? >> this is a massive turn of thank you for joining us. events. yesterday, we were talking about the stabilization, china the coronavirus affecting reporting the lowest number of cases and a month. health experts being encouraged by the number around 2000, much lower from the peak of more than world events including the mobile world congress. this is bloomberg. 3000 daily patients days before. ♪ now, reporting more than 14,000 cases, this is after a change in methodology. i looking through the press

release right now. not a lot of details. they had recently conducted investigations and revive diagnosis results, but still waiting for more details on how that new methodology has changed. but of the bar has been drastically changed, a massive jump in cases. they released -- more optimistic, 3000 patients have been discharged and the death toll has continued to climb, now to 1310. the cdc has been waiting to get into china. the fact we saw this massive drop in cases furthers their point that they do not feel confident that they understand the situation given that they have not been given access to study at the center of the outbreak. >> we recently saw the head of the health commission in hubei being sacked. what are we seeing from china to

increase transparency, bring everything into order, given how some of these regions have implemented gregorian restrictions -- draconian restrictions. >> we saw two high-ranking professionals -- officials get sacked. state media has placed blame on do notent officials recognize the severity of the situation and not being transparent. the debtexacerbated by of the doctor who had been reprimanded after giving warning signs about the coronavirus in those early days. at the central level, the government trying to increase transparency with international organizations collaborating with >> as we mentioned earlier, the the world health organization. they have a team that has thetronic industry scrapped arrived in china with more people arriving in the coming

days. china has been raised by the who mobile congress due to the coronavirus, saying global for the transparency, sharing genetic sequencing earlier. concern regarding the coronavirus outbreak and other that said, there is still a lot of missing pieces on how china circumstances make it impossible to hold the event. is calculating the number of on the companies deaths. there is skepticism that the real toll is being calculated with reports of people dying in involved as well as the rollout their homes not put into of 5g, we are joined by mark in los angeles. official numbers. give us a sense of the a lot of questions from the cdc which is pushing for access. significance of this. >> it is going to have a true something -- they key for impact on the city of barcelona that. the u.s. saying the cdc that does everything they can to confirmed a second case of support this conference. coronavirus in san diego. for the latest on this outbreak, bloomberg subscribers can run it is going to put a delay on a lot of is meetings and potential . suppliers,onents and but at the end of the day, the aerall impact, besides for more on how these fears are financial headwind is not going to be as significant. playing out on asian markets, we are joined by a strategist in

thankfully we are in the year 2020 and these things can be singapore. rescheduled. we have seen this rally globally >> what were we expecting from in risk assets. on optimism or hope that the that conference? >> we were expecting a lot of infections had been slowing down. now we are getting new numbers, who fly around 5g, but from a a spike in new cases. will it be risk off from here on consumer perspective, i know out? >> we have already seen an motorola set to announce a slew of new flagships, a few other initial move this morning, companies were going to announce phones, but none of the major 14,000 new cases, we immediately lower, s&p though giants, you would not see anything new from apple or samsung. futures decline, aussie dollar decline. we are not really missing out on all treasury futures rose. all usual risk suspects aiming those. we are at a time when a lot of tech companies like to make to action. these big slashes on their own that there could be rather than a major conference. an explanation as to why there a lot of -- is this going to are 14,000 new cases. there seems to be some underlying reason. it will need explaining. it seems assets have gotten used to the idea that there was some have any indications for lack of peeking up the virus and they 5g or other deals? .an look forward to the future

major importance they may need to rethink that are going to be rescheduled. story. we bought more details out of china. i feel like if there were any the initial reaction is critical meetings it would have narration. happened already. if i need to meet with something people are defensive -- the initial reaction is bearish. that needs to get something done, that will happen asap. people are defensive. the dollar had already been qualcommke verizon and performing well in this case partly because the your has its own problems. had a major meeting, they could europe is heading -- because the have done it over the phone. euro has its own problems. it is more fantasy than europe is heading towards a recession. reality. >> i'm thinking further down the the data is not good. supply chain, what are the ripple effects, the chipmakers, the ecb chief economist warned that europe will be badly hit by the coders, what you know about the spread of the coronavirus. it will be a day when people the ripple effects? will look closely at the haven assets, that is likely to play perspective,vel out through the asian session as we proceed. we also heard testimony from people are going to have to deal with getting those things jay powell said low rates are canceled, something i'm working

not a choice anymore. on myself and that will take a of reality.act few days. what does this mean for rick -- involved, calendar risk assets given that the prevailing concern at the start of that year, will we see a liquidity, now appointment and having to reschedule things. there is a little bit of a ripple effects, but it is not replaced by we may have the end of the world. coronavirus impact, the central banks would come to the rescue anyone who did not see this again. feelinge powell must be coming was not paying attention the last few days. lonely. he is the last man standing. everyone is looking to them to >> if you do not see this be the savior of global markets. coming, are there more coming down, other conferences that may thankfully, they have a little room to lower rates if be affected? necessary. the ecb is hampered, they have >> if you do not see this negative rates already and coming, you were not reading or pushing back. listening the last few days. bank of japan seeing that other conferences, they will negative rates have not worked well and do not want to do more. everything hinges on the fed. still go on, but it depends on how much longer the situation is if we get a big hit to global going. growth, people will expect lower >> thanks very much. rates on the federal reserve. we have seen large bets in the futures market that the fed may still plenty more ahead. need to go back to zero rates as

we saw during the financial crisis. a slew of earnings to check on in australia. there are traitors taking it shery ahn haidi lun will be here seriously, the fed would be to momentarily on the next hour of lower rates substantially to help out the global economy. jerome powell has indicated bloomberg markets. this is bloomberg. before that the global situation is up in his mind last year. ♪ one of the reasons the fed cut sometimes your small screen is your big screen. rates, they were worried about the risk of a bistro economy outside america into the domestic economy. it jerome powell is in a difficult situation. year.an election the fed does not want to be seen to be influencing that decision. they may have no choice. if this coronavirus spread is not contained and affect the global economy, the fed will have to do what it has to do to protect the u.s. economy. expect to hear more from the fed in coming weeks. you can follow along the

day's trading action on our live .at liv there is commentary and analysis. and with the xfinity stream app, which is free with your service, you can take a spin through on demand shows, let's get you some of the latest or stream live tv. headlines. download your dvr'd shows and movies on the fly. even record from right where you are. creatingethodology whether you're travelling around the country this huge jump in a new confirmed cases that spending or around the house, markets -- sent markets spiraling downwards. and watch all the shows you love. let's go to a short break. this is bloomberg. ♪

>> a very good morning. i am haidi start was, where markets have just come online. shery: japan and south korea opening in one hour. i am shery ahn. welcome to "bloomberg markets: asia." ♪ shery: here are our top stories. the coronavirus followed widens as it hits world events including the mobile world congress and the hong kong rugby 7. haidi: markets see more highs on

infection optimism. the imf sees a fast recovery in not., although others do among those more doubtful, opec is slashing its forecast for global oil. ♪ haidi: let's look at how markets are faring. as shery mentioned, yet more highs in the u.s. despite the growing concern on the coronavirus and its impact -- the impact it could have on global growth. equity markets are still hanging onto risk appetite. australian market hitting three-week highs. started. session gets we have a slew of earnings kicking off here in australia as well as around the region. new zealand is down about .1%. we heard from the assistant governor of the rba earlier saying that they would be

willing to shoot for inflation longer before they had for that 1% rate lowering. in theseeing futures u.s. looking pretty flat as well. certainly, the msci asia pacific is looking for a fourth day of gains come it looking pretty positive when it comes to the features session. let's take a quick look at oil, given that we've had news coming that opec chiefs have warned that the unrealistic goals in the china deal. we know the true impact when it comes to commodity demand out of china is yet we seen, but some estimates result in a 20% of the drop when it comes to accrued .rom china you are seeing reaction in new york crude at this point as well. we will continue to watch that commodity story throughout the day. let's get you the first word news with riddick a group to. >> the imf says it sees china's

economy recovering quickly from the coronavirus. the funds primary forecast is for a fast rebound and factories return to operation following an break.d lunar new year the imf continues to gather data to assess the full impact of it like but says it expects to see recovery. opec is slashing its forecast for global oil after the coronavirus hits demand in china and further afield. it is reducing projections for fuel use in the first quarter. but about one third. prices have sunk, as the infection these businesses idle and millions of people quarantined. saudi arabia wants an emergency meeting to consider new production cuts. crises are now a fact of life for the central bank. in his second day of testimony, jay powell told lawmakers that the current level of interest

rates news fiscal policy has to support the economy if it weakens. he says the impact of the coronavirus will soon show up in economic data, but it is still too early to see if it will have any change on the u.s. economy's outlook. >> lower rates are not a choice anymore, they are a factor reality. it is likely that we have to turn to the tools used in the financial crisis when we hit the lower bound. is?hich >> for gardens, large-scale asset purchases of longer-term securities to drive longer-term rates down and support the economy. we will use those tools. i believe we will use them aggressively? >> the u.s. is weighing a plan to raise its ceiling on tariffs and resume its assault on the global trading system. president trump has often complained that some renters can charge higher gdp on certain goods than the u.s. does.

saying that the rules are tilted against america. global news, 24 hours a day, on air and on @quicktake by bloomberg, powered by more than 2700 journalists and analysts in over 120 countries. i am ritika gupta, this is bloomberg. shery: thank you. coronavirus concerns, other viruses like influenza typically slow as the weather get warmer, but the cdc says it is too early to know if this will be true for the coronavirus. let's get more with bloomberg's selina wang in beijing. the cdc will get more information if they were allowed into china. what do we know about her efforts to get into the country. selina: u.s. officials say they have offered for weeks to be invited to china to study it, and it also have staff based in china who also have not been

able to study at the center of the outbreak. it is not clear why china has not accepted their offer yet, but health experts say that the chaotic nature of the outbreak combined with limited access by international experts to hubei province has made it hard to know the full extent of the epidemic. meanwhile, the world health organization has already arrived in china, with more members said to arrive in the coming days. you talked about the theory that this virus could slow down as the weather gets warmer. the cdc pours cold water on the theory, saying that other respiratory illnesses follow that pattern, but there is no specific date or yet on this virus. we are seeing growing optimism among international experts as we see stabilization in terms of the new york cases. the number of new cases is falling to 2000 or less a day, down from the peak of 3000 or

more cases last week, but it is still hard to know if the working.ed efforts are haidi: our china correspondent, selena wong, in beijing. we are seeing the corporate followed continue to widen come the latest to say the virus will impact major events. formula one grand prix in china and the mobile world congress, the premier mobile world industry conference has also been canceled. let's bring in ivanka from hong kong. before the official -- let's bring in yvonne from hong kong. executives were already dropping out ahead of the conference. yvonne: yes, that probably , who oversees the mobile world congress cometh to cancel the event, the first time in its 33-year history.

it was supposed to be a big one. they were expecting over 1000 people to head to barcelona. they say the global concerns regarding the coronavirus as well as travel concerns made it impossible for them to hold this event. the key question will be the financial fallout. who covers the costs? tens ofticipants spent thousands of dollars to attend the exhibit, and it is a huge source of revenue for the mobile world congress as well, so that could be a big hit to the organization. we are also hearing from hong kong media, that the hong kong event could be postponed. we are expected to hear a formal announcement later this week. a couple of weeks ago, we heard from them that they were confident the event would go on as planned. they had experience in 2003 during the sars epidemic. but it seems like things have quickly.uite shery: what is the latest on the

cruise ship that was in limbo after being turned away from several ports? yvonne: looks like it finally has a destination. we are learning that it is saving to cambodia, slated to arrive in the next couple of minutes -- sailing to cambodia. we are told it will stay there for a couple of days, then passengers and crew members will be able to fly out of phnom penh. this is after the cruise liner was denied out of five entry points in five different ports, the likes of thailand, that was the latest one. they are offering help but sticking by denying entry. i have also learned from carnival that the february 15 crews that was set to embark from yokohama has been canceled. with 20 of dealing headaches year. they are still dealing with the ,, said i'mliner

a princess cruise come at where over 100 people contracted this disease. they are saying that this could have a material impact, this earnings.their haidi: in the meantime, there is greater anxiety in singapore, with the evacuation of the business tower just as they are reporting earnings. yes, net income of $1.5 billion. earnings were a beat. but they also talked about the virus impact on their business. in terms of revenue, they could see a 1% or 2% impact if the virus is contained by summer. for now, they will be in preventing a six-month moratorium on mortgages in singapore. also a six-month moratorium on loans in hong kong. they will also be providing community support for customers. as a safety precaution, they are encouraging staff to work from home, after, as you mentioned, the 300 workers that had to be

evacuated from their headquarters at marina bay financial center tower 3. we are also looking after that 52-year-old man, an employee who had tested positive for the disease. he had no travel history in china. that is the latest from singapore's biggest bank. shery: yvonne man, thank you very much for that. you can keep track of this developing virus story by

and its ability to weather the coronavirus crisis? we will discuss that with our guest, next. this is bloomberg. ♪