"bloombergome to markets." i am emily chang in san francisco with paul allen in city. coming up in the next hour, u.s. stocks search the most in 14 months with finance chiefs set for a coordinated coronavirus response. the virus claims for more lives in the u.s., bringing the total to six. also, an update from mike pence.

the vice president is the government's point person. plus, is jack dorsey's job on the line? an activist investor with a sizable stake in twitter is pushing for changes. first, some ominous news in the u.s.. more deaths here stateside. despite that, the market is going green. cindy?es it look like it -- in sydney. paul: it going pretty well. markets reacting on promises of support from central banks. a strong rally, higher by 3.5%. futures pointing higher, better than 1% as well. alsoi futures and kospi stronger. the yen has weakened.

the boj will do what it can to support markets. the aussie dollar still has a 65 handle. it is reserve bank of australia decision day and the consensus now is that the rba is likely to cut the cash rate to half of 1%. let's take a closer look at what happened here. stocks surging. ending up over 4% with investors hoping that central banks will be coming to the rescue. for more, we are joined by abigail doolittle in new york. what is driving the optimism? abigail: huge declines for the s&p 500. over the weekend, not terrible news came out around the

coronavirus and what can be happening for the strategy. in some ways, investors may have liked getting that information out of china with the terrible pmi's. about, was just talking the idea that we will see coordinated central bank intervention. all of this led to the best day since december of 2018. take a look at that. lots of green on the screen. the dow leading the way. also, the nasdaq. relative to volatility, it does --d to we are likely to see more and more moves up and to the downside. ins chart shows us that back 2018, we did have in the summertime a period of small moves and the volatility to the

downside. in that stretch, lots of moonves to the upside. moves to the upside. last week, you can see those huge moves to the downside. now, today, up more than 4%. this could be the new norm as the bears and bulls work to figure out what is next. many are saying it is impossible to model or gauge what this will mean for the economy until we have more information. as for some of the big movers, cosco was the best stock for the s&p 500. it's best day since 2008. consumers here in the u.s. stock and what could happen here in the u.s. as the outbreak does presumably spread.

at the end of the day, bonds were about flat. over the last five days, we have stocks down, oil down, bonds higher. a risk offill situation around the coronavirus but, today, a rally. bounce or a dead cat the real deal? we will find out tomorrow. emily: officials in washington state say they are paring to isolate large numbers of patients in what they anticipate could be a significant coronavirus outbreak after six deaths were reported across washington. how quickly can they get the amount of tests that they need out there and how quickly will we have a real picture of what the outbreak actually looks like.

efforte started to be an to scale up the number of labs that are able to test. the government giving individual labs and hospitals permission, and state health departments, to come up with their own test. there were sort of two things that led to the slowdown, the fact that the cdc was handling everything itself, and the fact that they had a narrow definition of who qualified for testing. that narrow definition, there was not so much incentive to look to other people developing tests. now that we know the disease is spreading in the u.s., that narrow definition linked just to travel in china, clearly insufficient, which is why you have testing happening from a broader variety of sources. it will still be sometime before shows upst anybody who with symptoms. but there is beginning to be

progress finally on that front. of course expecting to hear from vice president mike pence in the next few minutes or so. he is leading the response. but what more can the administration do to slow the spread or mitigate the impact on americans? one thing that needs to be considered, this broader effort to have social distancing, took isolate people. not everyone is able to telecommute, not everyone has access to health insurance. how do you make sure these people are supported and are able to afford and seek care when they need to. i think those should be some of the priorities in washington and other states. periods where people are at home, you do need to have support from the government,

financial and otherwise, for people to comply with the recommendations that the government is going to make. paul: thank you for joining us. south korea has reported another surge in virus cases. let's get over to tom mackenzie invasion. what do we know about this? korea, beyond china, is the hotspot in asia. the vast majority of cases are in and around daegu city. that is where the u.s. has warned its citizens from traveling to. clearly, there is a lot of concern about what is happening in that country given that the rate of infection seems to be increasing at a pretty steady rate. we will get the next set of numbers and we will see if that confirms that unfortunate trend. we heard that hospitals are

short staffed, do not have enough workers, but also do not have enough equipment. this is very much a global disease as your previous reporter was pointing out. european officials have put together a special task force to monitor what is happening in places like spain and italy. cases reported for the first time in places like berlin. the number of cases of the u.k. around 40 or 50. the spread in europe is being focused on as well. in the middle east, iran is the hotspot. at least 1500 confirmed infections. of course, the health system is not adequate to deal with an outbreak of this size. the world health organization landedtheir way or shortly in iran with testing kits to test as many as 100,000 people. in the middle east, iran is a

concern. europe, the cases continue to increase. in the first cases in moscow, and russia, where you have already had a handful of cases. the world health organization not yet calling it a pandemic, but saying the window of opportunity to contain the virus is narrowing. emily: what are we hearing from the chinese government as the situation seems to be stabilizing as it is exploding everywhere else? the numbers out of china yesterday, the smallest increase since january 22. it does underscore this trend in terms of slowing momentum, which is a positive. withe from the premier, leading the fire -- leading the efforts. he said it is a pivotal moment controlling this disease where

they have made great strides, particularly in provinces hubei, they have not seen significant spikes. they are still cautious. people continue to return to work. they are trying to strike this balance, make sure the economy can get back into gear while they keep a check on this virus. president xi asian pain was seen on state tv visiting a research lab. he has called on more emphasis of trying to develop a vaccine. we will expect of course the latest numbers out of china and the next few hours, and the hope will be that the trend continues. paul: thanks so much for joining us. still to come, we will dig deeper into the economic impact of the coronavirus.

this is bloomberg. ♪

to "bloombergback markets." let's check in on the first word news. >> the world's top finance chiefs will lead a global conference call to discuss the threat posed by the coronavirus. we are told the call will happen at 1:00 paris time. the oecd says global growth may sink to levels not seen since the financial crisis. the trump administration has ordered four chinese estate midi operations to cut staff in the u.s. by 40%. the decision comes after beijing tightened curbs on american journalists and wall street reporters last month. among those affected, the chinese global tv network, and china daily distribution. about 60 staff may have to leave

the u.s. long-awaited trade talks are underway in brussels amid rising tensions over prime minister boris johnson's threat to walk out if there is not enough progress in the coming weeks. other major trade deals usually take seven years. 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. this is bloomberg. surged the stocks most in months, investors gaining confidence that the largest economies will be able to withstand fallout from the coronavirus. our next guest says it is nearly impossible to predict what the economic impact will be. know what iss they going to happen, are they wrong?

misguidede probably in trying to predict this. it is tough to model something when you do not know the full course of a disease or how far it goes in the globe. there are hopeful signs that it will not last long, that we will a year from now be looking at a lot of this in the review mirror. emily: the oecd saying global economic growth will be worse than over a decade. that certainly sounds like a cold -- a code red. carol: you look at all the things the markets dealt with last year. we started the year last year with the government shutdown. we had a gm strike, tariffs, all kinds of stuff going on. people were able to look through that because they were relatively short-term impact. hopefully they will be able to

take that same impact here and look through what will undoubtedly be some bad economic numbers. factories starting to come back online. we went into this with no major excesses in the economy and ,olid fundamental underpinnings particularly in the u.s.. paul: it is an importa day and australia. they are expected to cut the cash rate to 0.5%. that we a consideration will seek qe later this year. is money not in cheap enough the solution to the coronavirus problem, or is easing just a placebo? is psychologically a placebo just knowing that you will not have central bankers will make mistakes by being too

restrictive, that everyone is on the same page to do what it takes to support the global economy. bond prices priced in rate cuts all the way through. it lendsically, confidence to business, knowing that you have policymakers standing behind them, not in their way. paul: eventually, this crisis will end. will central banks be able to take those back again? carol: maybe bankers can at least hold the line, suspend the qe, and maybe raise rates. emily: given all of this uncertainty, where are you placing your bets? obviously, there are a lot of on owns. can you turn that into an opportunity? valuationsd income

in the last week. at the margins, to the extent we had raised cash, which we had encourage people to rebalance. who are trying to withstand continued volatility, putting some of that to work with equities makes sense at the margin. you have to be able to withstand the volatility. paul: we are seeing a lot of volatility. are we seeing a rerun of what we saw a few weeks ago? , or isbuying the dip there any chance this gets worse before it gets better? carol: you still had net flows out of equities despite the fact that the markets were at record

highs. you had a lot of people sitting on the sidelines. that had never had money in the equity market and had been looking for an opportunity to enter. people started picking away at stocks today i think on that fear of missing out in the long run. paul: we are seeing interesting behavior on some of the yield curves. some are inverting, some are steepening. carol: the bond market is telling us that there is some caution in there. it is more interesting to look at what sectors are performing in the stock market. last week, some interesting thing going on with growth oriented sectors coming down but not as much as some of the others. the market is doing a good job discerning who want to be key deadening a potential

, also on the backside of it, if we get a resumption of growth, markets seem to be betting that that is going to happen. paul: thanks so much for joining us today. still to come, the world economic forum says it will be another 257 years until men and women earn equal pay. we ask what we can do to speed that up.

for years, women have told to change themselves, to be more assertive, to succeed at their jobs. the director of inclusion on netflix thinks that is not going to close the gender gap anytime soon. king argues that it is time to stop the women fixing epidemic

and instead fix the workplace. before netflix, she was the head mission forglobal change. is this mean that sheryl sandberg was wrong when she told people to lean in? fundamentally is flawed, asking women to fit into workplaces that were not designed for them in the first place. emily: what should workplaces do? netflix has a fairly unique approach to company culture, putting power back in the hands of employees like unlimited vacation, a hands-off expense policy. the idea being, if you treat people like adults, they should act like adults. how much of that could be exported elsewhere? michelle: i just joined netflix

so i can't speak to that specifically, but it is really about ensuring you know what the barriers are that women and minorities face at work. to create a workplace culture where people are valued for their individual identities. there is a big focus on creating belonging, an environment where people feel they can contribute in a unique way. right now, we do not have that people have to conform to an ideal that does not really serve anybody. that i was intrigued by the 1850's ideal that you mentioned. men are expected to fit some certain gender stereotypes in the place as well, aren't they? of myle: it was part research that i was surprised. what ied the outdated,

call the don draper ideal. many as a result of this, things like mail silencing, male bullying, the inability to talk about difficulties in workplaces. equality say, gender in is one of the best things to happen to men. they just don't know it yet. emily: despite increased parental leave, workplaces are failing parents. what are some concrete things that managers and the rank-and-file can do if so much of what they are doing is not working out? we aree: the main thing asking leaders to do is lead. we need leaders to manage the day-to-day inequality moments when they happen. to be aware of how inequality is showing up in your work, you have to know what the barriers

are. so you can recognize them and intervene. speak up. advocate on behalf of women. use those moments as learning or teaching moments. -- mostat, we need leaders are in denial about inequality that men and women experience in workplaces. they believe that workplace is a meritocracy. up to this outdated ideal is what creates challenges and barriers. emily: should the endgame be to make more money? do you believe that all of this can lead to better business. michelle: a study shows that organizations that as a culture of equality, you are six times more likely to have an innovation mindset, you are more likely to problem solve better and create a workplace prepared for the technologies coming with

ai, robotics, nanotechnology. emily: michelle king, netflix director of inclusion. we will be back with more on the coronavirus, next. this is bloomberg. ♪ ♪

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♪ paul: welcome back to market." -- welcome back to "bloomberg markets." allen in city with emily chang in san francisco. index performing very strongly after we saw the finish on u.s. equity markets higher by 3.5% in new zealand. futuresaustralia, pointing higher by one percent. optimism due to the promise of coordinated response by coordinated banks around the world, and one of those, the

reserve bank of australia, which will hold a meeting in five hours. the consensus is building for more easing, down by three quarters 1% to half of 1%, approaching the rba threshold policyonventional measures. a number of analysts are expecting we will see that later in the year, particularly with the impact of the coronavirus. nikkei futures higher by almost 2%. let's get over to the white house now. vice president mike pence and ambassador deborah burke are conducting a briefing on the coronavirus. let's listen. pence: good afternoon. we just finished the monday meeting at the white house for their coronavirus task force. the president established the task force at the white house. it has literally met daily. we continue that, and we had the head of medicaid and medicare

services, as well as robert with the v.a. first, a few basic facts, and then we will hear from other members of the task force about ongoing efforts. at the present moment, we have 43 domestic cases of coronavirus. cases of individuals who returned to the united states. cases, 29 of 40 three are either in california or washington state. and we have communities that are what the experts tell us could potentially be a cluster in those communities. sadly, today, there were four additional fatalities, raising the number that's six americans have lost their life to coronavirus, and on behalf of the president and all of the american people, we extend our

deepest condolences and sympathies to the families of those that were lost. despite today's sad news, let's be clear. peoplek to the american of the coronavirus remains low, according to all of the experts that are working across the government. the president has said we are ready for anything, but this is an all hands on deck effort. today's activity really reflects the president effort to bring the best minds of private industry together, the best leadership from around the country at every level. we had a good meeting this morning with governors from 50 states and three territories. i was able to convey to them the gratitude that the president and our entire administration feels, or cheekily for governors who are dealing with the coronavirus in their states, those who have taken repatriated personnel.

i can say that what i hear from the nation's governors is that there has been a seamless relationship between all of the agencies and the federal government and the states thus far, and we are encouraged to hear that. but i have told them we are committed to a full partnership with state governments and to their health officials and to local health care providers going forward. somee also met today with of the leaders of the top pharmaceutical companies in the country. the president spoke to them not just about vaccines, which many of the companies are already beginning to work on, but just as importantly, the development of therapeutics, and it is remarkable to think that there may well be a vaccine going to clinical trials within the next six weeks. thenature of trials, as experts have explained to us, is that the vaccine might not be available until late this year

or next. the therapeutics giving relief to people that contract coronavirus could literally be available by this summer or early fall. the most encouraging news is that our pharmaceutical companies, which are recognized as the greatest in the world, have already formed a consortium to work together to share information on the development of therapeutics and vaccines. weuick update, yesterday, were fully implementing the new travel advisories for portions of italy and south korea and the implantation of screening of personnel from across those countries who are trying to take a direct flight. i was pleased in the white house task force meeting today to learn that within the next 12 hours, there will be 100% screening of all direct flights

at all airports across italy and across south korea. the president has directed us to bring the full resources of the federal government and to bring the very best minds of this country to bear on this country, and finally, today, i am pleased to welcome to our white house team a world renowned global health official and a physician. she will be my right arm through this effort, as the president has tasked me to lead the white house response to the coronavirus, and i am grateful that ambassador deborah birx, birx, will berah on our team, and already on her first day, she has already been contribute in. she serves as the leader today for combating hiv-aids globally and has developed an international reputation for

that. she is a scientist, a physician, someone with three decades of public health expertise, including with vaccines, and has vast experience with interagency and ination, and dr. birx have talked about bringing all of these various entities together to bring about president trump's vision for a tole of government response the coronavirus, so with that, i would like to recognize dr. deborah birx. thank you for stepping up one more time to serve our country. dr. birx: thank you, mr. vice president. it is a pleasure to be here. i just arrived from south africa last night. i had a computer and phone in rapid time, which shows the expertise to get moving quickly. it is clear that the early work of the president, both with travel restrictions and the ability to quarantine, has brought us the time and space

for this to be effective. i have never worked with such incredible scientists and thoughtful policy leaders, and i got to spend the day with them. i am trying to get up to speed as fast as possible, and i look forward to the days ahead of really working together to end this epidemic. : secretary?ence thank you, mr. vice president. i want to start out and say how delighted we are that dr. birx will be lead the effort. dr. birx and i go way back. we basically, all of the directors would -- with health and human services, go way back. we already have very established, productive working relationships. i think we will keep the interagency process working incredibly smoothly, and as the vice president said, dr. birx has already been asking the

right questions and challenging us on the right policy matters we need to focus on. i want to begin with recapping the situation we face with covid-19. as the vice president mention, as of this morning, we have 43 confirmed or presumptive cases of coronavirus in the united states, excluding our repatriated cases. 17 of those cases are travel related in one way or another. 20 are believed to be person-to-person spread. because of the president's strong leadership in all of the work that our public health officials have done at the local, federal, and state level, the immediate risk to any individual american has been and continues to be low. but the risk for people with possible exposure to identified cases can be high. what every one of our experts have been saying for more than a month now remains true. the degree of risk has the potential to change quickly, especially if we see sustained spread of the disease around the

world, which could qualify this disease as a pandemic. i said this morning, we will see more cases of community spread in the united states. as we have emphasized for some time now, we all need to prepare for the need, prepare for the worst, hope for the best. in some places, we will have to use the range of our mitigation efforts. in fact, we are already working closely with santa clara county and the state of washington, in particular one county, to assist them in thinking through some of the best practices from our pandemic action plan as well as learning from singapore and hong kong around the most effective community mitigation efforts, such as temporary school closures or even other responses another doctor has talk to you about, such as having school perhaps not having assemblies in school. that is why the president has taken an unprecedented hold of government approach to protect of american people, -- whole

government approach to protect the american people, including providing access to respirators needed by health-care workers. the vice president of the cdc and i spoke with basically almost every governor that we had this morning, and we greatly appreciate our close cooperation with us. wanted to now introduce an individual who i asked the vice president to have joined this task force, because the centers for medicare and medicaid services play such a vital role. $1.3 trillion of spending here in the united states, providing health care to 60 million american seniors, and as we have seen, this disease can have a disproportionate severity impact on the elderly as well as the medically frail, and so our administrator has a very important responsibility in

regards to funding care, whether it is therapeutics or vaccines or diagnostics for senior citizens, but also a vital role that you may not know of in regulating long-term care facilities, such as nursing homes and other health care facilities, very important functions, so i am happy. let me turn it over. >> thank you, secretary azar. for the trump administration and the people come first. let me start with what cms is, and the secretary said we are the nation's largest insurer, covering over 130 million americans between medicare, medicaid, and the individual insurance market, and some of these are our nation's most vulnerable populations, the elderly, children, and so forth.

critically, we do have a regulatory responsibility for pretty much every health care institution in america. this includes facilities such as hospitals, critical access hospitals, nursing homes, home health facilities, dialysis centers, nurseries, and the list goes on, and that gives us a very critical role in addressing the coronavirus. we are responsible for enforcing the quality guidelines based in part on information from partner agencies, like the cdc, and so let me stress that cms has long standing infectious disease policies already in place that we have used effectively for other outbreaks, such as influenza, and so health care facilities already have these procedures in place and should be prepared or what they may see, and we will continue to proactively regulate our regulations -- to update our regulations. we will be working with the cdc. as i said, they are already in place, and it is our job to make

sure they are implementing these guidelines, and we will work with the cdc to determine if we need to update or change those. also, we are looking at what we cover and clarifying the types of products and services that our programs will be able to pay for in terms of medicaid and medicare, and with that, i will turn it over. >> thank you, seema. thank you for stepping up. i want to also recognize a few others of our team. tony fauci. thank you, doc. uci: thank you. first, to underscore what the vice president and secretary azar said, we had a great meeting with leaders of the bio technical and pharmaceutical industries, and some were already actively coordinating, and they were enthusiastic and helping us along with the

development of products and the availability of products, vaccines, antibodies, and sector, and it was very gratifying. i am pleased that the president and vice president will be visiting the nih tomorrow. we will have the opportunity to show them in real-time the kinds of things we are doing, and finally, one comment about ambassador dr. birx. a couple of people up here said, "i go back a long time with dr. birx." nobody goes back as far as i do with dr. birx. she was a trainee. she was a star then, and she has become a superstar. together, we saw the first patients with hiv back in the early 1980's and were involved in the first successful trial with hiv, and i had the privilege and honor among others of putting together the program for president bush, and see what -- she was the ambassador in

charge of that program, so i cannot tell you how excited i am to finally, once again, get back to be a partner with debbie birx. pence: finally, bob. >> what i would like to do is just recognize that the cdc continues to work and provide support for really the backbone of our public health system of state,tion, which is the local, tribal, and territorial health departments, and these teams continue to work to identify new cases, isolate and contact and trace and to work together to try to limit the transmission of the coronavirus, and working with our public health partners, we continue to be able to identify new community cases, as the

secretary said. we always anticipated it. and use our public health assets too aggressively, again, confirm those cases, isolate, do contact tracing, and use our public health tools to limit the spread of this virus. i want to echo what was said by the vice president and the secretary that despite seeing these new community cases, that shows you we have a public health community across this country in action. the risk to the american people is low. i also want to add my looking forward to get i know my entire agency is looking forward to the president and the vice president and the secretary's visit to come to atlanta on friday and get to meet a lot of the wonderful people who formed the backbone of this great agency. thank you. questions.pence: steve with writers. -- reuters.

>> how quickly do expect it to spread? pence: let me leave that to the experts. >> this cluster in washington state. >> as the secretary said, we have anticipated these cases popping up, and we have a number of new community cases, which the health departments are aggressively evaluating to see if they can understand the linkage, who were the contacts, how is this virus spreading, and i think the american public should rest assured we have one of the best public health programs in the world when you look at the state and local and territorials, so we will continue to see these as a consequence of them doing their job, and we will use public health policy to limit the transmission, and i think we should focus on that right now. we are still working very hard to contain these community

outbreaks, but as the secretary said, we are blending it with a very strategic mitigation strategies. just want to underscore something i said the other day. there are cases coming in, controlling the spread of what is already in here, and there are other things going on. the restriction of travel, areas where there are hotspots in the rest of the world, just like the initial travel with china. i think it will mitigate against the question of the wider spread, and the contract tracing -- contact tracing is aggressively going on. you can never predict 100% of anything, but what is going on with the cdc and the state and local health authorities, it is really going to get us -- pence: steve, something i have learned, state and local officials are there,

but the cdc is on the ground immediately, finding out how it happened to the individual and other people they were exposed to. we know there will be more cases. the president initially took unprecedented action to do all that we could to prevent the coronavirus from coming into the country, and now, we are focused on mitigation of the spread as well as treatment of the people who are affected. kristin fisher. is christian fisher here? she walked out? let me go with hallie jackson. number one, president trump hinted today of new travel restrictions with italy and south korea, china, iran. can you elaborate on what countries you are looking at? pres. pence: the president is very clear. we are going to follow the facts

and listen to the experts every step of the way. the action the president authorized this weekend, raising the travel advisory, the american people should know that we are saying that you should not travel to certain sections of italy or south korea. those advisories may expand, but we will allow caseload in those countries to define that. in addition to that, by establishing a screening protocol, which will be in full force and effect within the next 12 hours in both countries, we will ensure that anyone traveling on a direct flight to the united states of america receives multiple screenings at all airports in italy and south korea, but to your point, the nature of the european union is one that doesn't require a passport to move around, so our task force spoke today about new cases, and there were some in several european countries. we are following that very

closely, and, again, we will listen to the experts. we will watch the cases, and i know the president will make decisions with regard to travel advisories or restrictions on the basis of those facts. >> the word "pandemic." -- do youperts consider this now a pandemic? e: we defer toc the experts. our view is that is for the world health organization to define. our task team was in touch with the world health organization today. let me let the secretary address that. this is not so much about semantics. , it is inng today was more than 60 countries at this point, so we are going to continue to focus on ensuring that we do all we can to prevent people coming into the country with the disease, mitigate any

spread of the disease, and, of course, to provide treatment. zar: i spoke with some doctors today, including the incident director with the world health organization, because i wanted to get a sense of their thinking of how they are assessing the pandemic status. i will let them speak for themselves, but at the moment, while we are seeing community spreading in multiple regions of the world, there are many definitions people use for pandemic, and one issue that the who is focused on is just sheer magnitude, and while we have had very large numbers of cases spreading in china, the actual absolute number of cases outside of china, while reflecting community spreading, are not of the magnitude comparable to any other pandemics declared before. for example, even the h1n1, where you had billions of individuals affected across the world. that is how they are thinking

about this, and we are just going to keep working with them. we do not have a view about whether they should designate it as a pandemic or not. we went to get a sense of how they are thinking about it and assessing it. but i will let them -- i asked them if they could put out how they are assessing this stuff. pence: hang on. how about ben?> -- ben? and italy,th korea what would that screening look like? temperatures for the passengers? would it be extended to other countries, and how many tests are conducted? was week, i believe, it 3600. what is the update on that? our pres. pence: interagency group has worked that out with both italy and south korea. aboutkorea, actually,

three hours ago fully implement of the screening on all direct flights at all airports, and as i mentioned, within the next 12 hours or so, italy will have implemented the same thing. multiple temperature checks in the airports for ,eople before they are boarding and we are working very closely to assist them in implementing that, but let me speak about -- you dr. han can speak to about the status of the tests, because one of the things i heard from governors last week was the availability of test kits, and i want to commend dr. swiftd the fda with very work at making more tests available, more kits that alsode multiple tests, and

emphasizing local testing, which will now make it more possible, as our experts told us, to identify additional cases. as we find more cases, it will mean our health officials are doing their job, and the availability of those tests. >> as you heard from the secretary and the vice president, we had the capacity at the public health labs to perform 1000 tests, and saturday, we issued new policy allowing us to have some flexibility, regulatory flexibility. emily: you are listening to an ongoing press conference from the white house press room where vice president pence and health experts have gathered for an update on the coronavirus, the vice president saying the risk to the american public remain slow, but we have got health and ruman services secretary aza saying that could change quickly. mario is standing by.

any real news? >> what we have been saying for the better part of the last week is that the administration is just trying to show control of the situation, trying to clam fears but being realistic about the coronavirus while again trying to reassure the public that it is in control and that the risk for contamination or catching it remains relatively low. emily: 43 cases in the united not countses that do repatriated americans. 20 six of those community spread. what do you make about the screening coming out of south korea and italy when there is a lack of testing kits? how does that work? >> right. vice president pence was speaking out to the confidence that the u.s. is on top of this -- he mentioned

three hours ago, south korea had tests fully implemented, within the next 12 hours or so. italy will have similar measures. will continuewe to monitor the press conference. stay with bloomberg television for more on the coronavirus. ♪

>> very good morning. i'm haidi stroud-watts in sydney. >> i'm shery ahn in new york. welcome to bloomberg markets: asia. haidi: our top stories this tuesday, virus cases and deaths rise as the oecd warns of a hit to growth. world finance chiefs discuss a global response. u.s. stocks surge on signs of global action. concerns, retail

sales collapse, but the property market may hold up. we hear from the finance secretary. shery: we have breaking news out of south korea. we are getting the final fourth quarter gdp numbers. growth of 2.3%. the final number is better than the estimate, which was expected to come in at 2.2%. when it comes to quarter on quarter growth, 1.3%, beating the advanced numbers. we have seen a pickup in exports. we have also seen strong government spending. fourth quarter, we are now talking about the economy after the coronavirus outbreak. take a look at the cpi numbers. inflation for february, flat. year on year, only growth of 1.1%. consumer prices accelerating only 1.1%, which is a slower

acceleration than was expected by economists. we have seen the negative impacts from the virus outbreak. this is depressing demand. not to mention, also seeing lower energy cost. brent oil has been down about 13% on year in the month of february, all to do with the coronavirus outbreak and the expectations of demand for oil. demand is going to be key. expecting ae are year where we see no growth in oil and demand at all. let's look at how the markets are tracking so far. we have seen this kind of global recovery spread through to asia. australia was one of the few markets that didn't close in the green yesterday. we are seeing it jumping to those gains of over 1% after the

asx traded at the lowest since june 2019. a lot of what is fueling the optimism are these new expectations. we are seeing economists throwing out their forecast and jumping on the bandwagon. are in new zealand, we seeing gains of over 3% after we saw new zealand dropping the most since october 2008. seeing that recovery rally really strong. and it is a pretty positive picture as we head into the start of trading in seoul and tokyo. u.s. futures to the upside as well as we mentioned at the top of the hour. expecting this g7 ministers meeting to talk about some kind of coordinated response. shery: officials in washington

state say they are preparing to isolate large numbers of patients for what they anticipate could be a significant coronavirus outbreak. now saying the virus has likely reached pandemic proportions. rob, great to have you back. we have just heard from vice president mike pence that there could be some therapeutics ready, but no vaccinations as of yet. how long could that take? testing now they are some off the shelf drugs. there's a drug from gilead, the most promising one. that could yield results by april. vaccines take much longer to test. we are talking a year or more for vaccines because you can't rush a vaccine. terms of what we've

learned about containment, did we learn anything new from that press conference as to what sort of measures are being put in place at airports, areas where we see large gatherings and things like that? >> in seattle they had a press takingnce, and they are some rather extraordinary measures. and are buying a motel buying temporary housing to isolate patients. in seattle, kind of the worst outbreak in the u.s., they are not yet talking about closing schools or canceling big gatherings. they are screening airline passengers in the u.s., but we are seeing signs of community spread in the u.s., which means it is already here and we have to work at mitigating it. haidi: robert, thank you for joining us. australia, we have had

the first community transmissions in new south wales. let's take a look at how all this is playing out for the investor community. lucy joins us now. she's an investment advisor. great to have you. it is really problematic at the moment in terms of just throwing out the growth forecast. as an investor, you look at a rally like we've seen on the basis of expectations of coordinated central-bank action. is there a risk that we see another -- >> with that rally overnight, we are starting to see that in the asian markets. however, it is probably too early to say there is any sort of meaningful recovery, and we expect further volatility to come. that the market

response has been based purely on sentiment. we just started to see those first hard data points that really give us some indication of the economic impact of the coronavirus. we saw the chinese pmi at record lows. these all point to that elongated u-shaped recovery rather than that snapback. so we do expect more volatility to come. but there will be that strong policy response. that was one of the reasons for the market rally overnight. the market is hoping to get that coordinated policy response. and that provides some positive reinforcement to market investors. for low has been very evenent to go there, though the market expectations are overwhelmingly that they

will have to. >> the risk is that he does disappoint those market expectations. we are seeing over 100%. haidi: they have said in the past they considered qe. >> if we do see two great cuts that will take us to that lower bound of 25 basis points, then we are at the end of conventional monetary policy. to the point where we are seeing a coordinated global policy response, i don't think the rba can afford to be kept out of sync. particularly the federal reserve. is,y: i guess the question how much what a rate cut actually do, other than boost the equity markets? we have seen the aussie dollar also falling. i take your point.

with interest rates already so how it is a question as to effective monetary policy can be. i don't think we can underestimate the impact of this coordinated monetary policy impact on psychology of the markets and that is going to have a strong impact on investor sentiment. it may not be considerable in terms of fighting off coronavirus. they will need to be complemented by fiscal policy measures. we are already seeing governments really coming to the table with those sort of things. talking about things like medical and financial support for citizens of those countries where governments do want to put in quarantine restrictions, they want citizens to comply with those restrictive organizations. shery: given everything that is happening on macro policy, this chart showing huge moves in

equity markets especially when it comes to the u.s. s&p 500, where we had seven down days and then a surge. what are we looking at in terms of volatility? if the coronavirus does not peak soon, would you still be willing to go into the u.s. market right now if it looks like a house in a really bad neighborhood? >> we are in a situation where we have raised significant amounts of cash. to reenter the market and the u.s. equity market is one that we are looking at. find these attractive. the u.s. economy is less dependent and more insulated. confident to slowly

start reentering there. value in theg real current environment. that is where you are seeing investors sell their portfolios. so we are seeing some great stocks coming up, and one that we like in particular is applied materials. one of the largest semi materials manufacturers in the world, we do expect some short-term impacts from the slowdown in manufacturing in china and supply train construction there. growthe real long-term is around five g technology. so things like that, we are looking for those opportunities. tech generally a story that you think is good to find coronavirus fears? >> the nasdaq has been more

resilient. whether that will uphold, valuations are slightly more attractive. the rally last night, tech was left behind. we saw utilities and property and consumer discretionary. that is another reason why we are not finding that rally overnight convincing. thank you very much. let's now get the first word news with karina mitchell. >> official data confirmed retail sales in hong kong slumped in january, entering a 12 month losing streak. the lunar new year holiday was disrupted by the coronavirus and protests. sales fell from a year earlier, extending the longest downward trajectory in three years. another democrat has abandoned the race for the presidency. amy klobuchar dropped out just ahead of super tuesday and is

endorsing joe biden. he is expected to gain the support of pete buttigieg, who quit the contest on sunday. 14 states vote on super tuesday, with bernie sanders favor to take california. the trump administration has ordered chinese state media operations to cut staff in the -- outletsbeijing affected are she and juan news, china global tv network, and china daily distribution. about 60 staff may have to leave the u.s. exit polls in israel suggest netanyahu is within striking distance of forming the next government. he gambled on repeat elections amid allegations of corruption. netanyahu's party and its allies leading the former military chief.

global news, 24 hours a day, on-air and at quicktake on twitter, powered by more than 2700 journalists and analysts in more than 120 countries. i am karina mitchell. this is bloomberg. still ahead, coronavirus rattles the global economy. and the latest changes rba calls. felicity joins us for that. haidi: hong kong's economy is taking a battering. the financial secretary says the world's most expensive property market is likely to remain resilient. this is bloomberg. ♪

shery: this is bloomberg markets: asia. i'm shery ahn in new york. haidi: and i'm haidi stroud-watts in sydney. hong kong retail sales dropped 23% in january, worse than

economists were expecting. the finance secretary says that despite the turmoil, he sees the property market holding up. >> there is a high chance of another contraction, but we remain hopeful because we still have several months to catch up. it really depends on the current situation. muchfter this is over, how will put into reviving our economy. >> you are encouraging residents to spend. this cash handout of $10,000 was one of the main features of your budget. playnuary, you seemed to down the idea of cash handouts. what changed your mind? >> exceptional measures and exceptional circumstances. people are suffering. businesses are suffering. still we have a pretty handsome

fiscal reserve. i think spending some of the reserve to help people is in line with the expectation of the people. >> will a cash handout of this size get people to go out and spend? what is going to stop them from saving it in the bank or going overseas? >> people spend money depending on their circumstances. spendld encourage them to and encourage the business sector to come up with different incentive programs. >> what do you say to the economists that say this cash handout is just not targeted enough, that this is just a drop in the ocean for many and you could have used the same amount of money to really help the people in need, what do you say to those people? >> people of hong kong like to have choice. situation, i think

the circumstance varies. andiving a cash handout appealing to the people to spend, to help business, encouraging the business sector to come up with incentive people,, i think depending on their personal circumstances, will support us. and support hong kong. >> the last time you gave out a cash handout, it was a bit of a chaotic process. can you ensure that this is going to be a smooth process and these handouts can be distributed by july or summer? >> the last one was very targeted. such, there are administrative procedures to safeguard against abuse. aging is basically people 15 years or above, holding hong

kong identity card. the interfacing with the banking sector has already been kick started. it is hopeful that we can start the registration in early july and start processing payment also in summer. that couldyou think start feeding into the economy? >> i think in summer. with that expectation, perhaps from now on people will be more willing to come and spend. that was hong kong financial secretary paul chan. don't miss another big interview later. the nissan ceo speaks to us from yokohama. this is bloomberg. ♪

this is bloomberg

markets: asia. i'm haidi stroud-watts in sydney. shery: and i'm shery ahn in new york. we are just hours away from super tuesday, when 14 states will hold democratic primaries. the shape of the field has changed, with joe biden winning in south carolina while amy klobuchar and pete buttigieg have pulled out of the race. we are joined by greg. we have seen this heavy win by the former vice president. up againsttacking senator sanders going into super tuesday? steyer and pete buttigieg and amy klobuchar getting out of the field helps the former vice president because it helps him consolidate some of the more moderate support in the democratic party. he was in danger of not being able to get delegates in some key places. head2head withgo bernie sanders. it is still sort of an uphill swim for joe biden because the

states that are voting tomorrow are still very much favorable to bernie sanders. for our non-u.s. viewers, can you explain briefly how it works tomorrow and what happens if it ends up being a really tight count and nobody comes out as being the obvious most supported candidate? way the presidential nomination process works is that the parties have this series of primary elections over several months. super tuesday is the term that we give to the date on the calendar with the most delegates at stake. that is tuesday. about a third of all the delegates available to all the candidates are going to be up for grabs. preliminaryur contests with early states. this is the first big block of

delegates. it can help to establish a narrative. what would be the most -- shery: go ahead, heidi. haidi: i was going to ask what would be the major issue tomorrow. defining issues of this race is medicare for all, which is what bernie sanders calls his plan to abolish private health insurance and replace it with a government run , government-funded health insurance program. that appeals to a lot of people who are part-time workers, underemployed people, who are looking for universal health care coverage. and in places like california, where you have a lot of service workers, that might be a defining issue there. in other parts of the country, in the deep south, they are a little more culturally conservative. they may tilt a little more

toward joe biden's direction. shery: going into super tuesday, how much pressure will there be for other candidates to drop out of the race to help boost biting? >> we will see after what happens tomorrow. we've got two other main candidates in the race, michael bloomberg and elizabeth warren. for of them may be playing what we call a brokered convention, which is nobody gets the majority of delegates in july and there's some wheeling and dealing to see who the nominee is. so there's incentive, if you think you can get a good chunk of delegates tomorrow, even if you don't think it can win, delegates could be a valuable commodity in the convention. haidi: gregory, thank you so much. gregory corti joining us there ahead of super tuesday. we will have special coverage of

super tuesday on bloomberg. we will have live analysis of the democratic contest. shery: michael bloomberg is founder and majority owner of bloomberg lp. let's get a check of the latest headlines. hyatt hotels is pulling its financial guidance for this year because of coronavirus. it says travel restrictions are hurting performance and making it hard to forecast the rest of the year. they say they have limited ability to assess the impact of the outbreak. haidi: the man who rebuilt general electric has died. jack welch turned the company into a global giant and influenced generations of business leaders with a cost-cutting style that earned him a nickname. he presided over a stock surge of almost 3000% over two decades although his legacy was tainted by questions over accounting methods.

,here is plenty more to come including a preview of what the rba will do. this is bloomberg. ♪

>> this is bloomberg markets: asia. the world's top finance chiefs will lead a global conference call tuesday to discuss response to the economic threat posed by coronavirus. we are told the call will happen at 1:00 paris time. growth mayys global sink to levels not seen since the financial crisis. central bankers are pledging to shore up economies and markets. a key gauge of u.s. manufacturing gets near stagnation amid mounting concerns the economy might not dodgy hit from coronavirus. the index slid in january.

three of five parts of the index fell, led by the biggest drop in production since 2018. and a market gauge fell to its lowest level since august. long-awaited trade talks are underway in brussels amid rising tensions surrounding prime minister boris johnson's threat to walk out if there's not enough progress. he wants agreement on commerce, fishing rights, and financial ties by the end of the year. other major trade deals usually takes seven days to conclude. germany is criticizing turkey for playing politics with asylum-seekers. chancellor angela merkel said president erdogan is putting lives at risk with his decision to let migrants try to enter the european union. turkey has told asylum-seekers they won't be stopped from trying to reach the e.u. global news, 24 hours a day, on-air and on quicktake by bloomberg, powered by more than 2700 journalists and analysts in more than 120 countries.

i am karina mitchell. this is bloomberg. shery: let's get back to our top global stories. this is the spread of coronavirus and the urgent quest for a vaccine. tom, president trump is telling drugmakers to just get it done. puttingthat he's been pressure on the domestic pharma industry for quite some time now. >> that is right. visited axi jinping research and diagnostics lab where he called for greater efforts to move forward on production of a vaccine. experts in the u.s. have said it is going to be at least 12 months before you get anywhere near a vaccine. experts globally trying to wrestle with the idea that maybe coronavirus becomes an annual disease, and there is this emphasis on longer-term planning.

that was president xi jinping's latest comments. they are now at a pivotal moment in china. what we haven't seen according to official data is any major spikes in provinces outside of hubei. there are concerns expressed by officials in china about the return to work of all these migrant workers in factories and the risk of additional outbreaks. certainly officials are monitoring that closely. yesterday, we got the latest data out of china suggesting 202 additional infections, a moderation in terms of infection rates in china. sinceas the lowest number january 22. we are going to get the latest data in a few hours or so. the hope will be that that trend continues. and other efforts underway in

the chinese capital. restrictions in terms of the movement of people and making a note of their data, that continues. it has been a priority of the government. 400 confirmedver cases in the chinese capital. we are waiting for those additional numbers out of china and south korea. shery: tom mackenzie, thank you. after a heavy losing streak, u.s. stocks surged on hopes that central banks will take measures to offset any impact of the coronavirus. we had emerging-market stocks gaining the most since mid february. joining us now is the portfolio manager for the global equity team. thank you for joining us today. rallye seen this massive on expectations that perhaps there will be some coordinated action by central banks. when it comes to developed markets, central banks don't

seem to have that much room. how do emerging markets compare? >> when you look at think reflation -- at inflation, there is real rates in several countries. i will admit up front that growth is anemic globally. you've got a fair bit of room in emerging markets to stimulate. there is a certain amount of fiscal as well. they are going to keep an eye on their currencies to make sure there is no slippage. but that is a fair point. if you look for stimulus, it is going to come from emerging markets. i think that is going to focus more on the domestic side of the economies and try to stimulate demand. shery: what does that mean for the markets? when you look at the coronavirus outbreak, that could have a significant impact on their earnings outlook. we were talking about 0% to 2% in e.m., but it

was the same in the u.s. this year, consensus was looking for 15. when we add up the numbers, it was probably closer to 10. which is pretty decent. that is going to get pushed up. even if it shows up in that 8% to 10% range, that looks pretty solid for e.m. part of the contribution, you have to look at china being a big market, also korea, which got impacted. shery: because we are expecting a rebound for the longest time. >> when you look at it from where they are, pricing has not gotten hit dramatically. growth is looking better. i think you've got some underpinnings. think there is that rebound that does help emerging markets.

that is where i feel optimistic. yes, it gets pushed out, but you are going to see better growth. haidi: to that point, i want to throw up this chart comparing the performance of e.m.'s. before this coronavirus event really happened, we had emerging-market playing catch-up to the rest of the rally. i'm wondering how you factor in performance of the u.s. dollar. we've had dollar strength proved rallymatic for the e.m. being able to find its legs. is this still a major risk given all that we don't know about the virus related developments to come? >> that is a fair question. i think the dollar strength takes over any of the fundamentals from a risk standpoint. the fundamentals do look better. you've seen this already with the dollar from 2016 being stronger. it would be great if you got some rest bite from the euro and that would direct some flows.

but it has been almost a binary and the dollar has been an indication in that respect. more recently, you've seen the dollar start to ease off a little bit. a littleiving e.m. outperformance to the downside. e.m. started the selloff earlier. it took a while for the coronavirus news flow to come through until ceo's in the u.s. said we are going to miss numbers. something we've already contended with. i think if you look at china, they dealt with it head on. you are going to see a recovery. it is going to be a big downfall into this quarter, but i think it bodes well that they are addressing it head on. haidi: does that trickle through to what you are seeing on chinese markets? they have proven strikingly resilient, particularly when you look at the chime act.

is it still really hard to talk about fundamentals when looking at chinese markets, given the amount of margin lending, of sheer volume from retail investors sitting at home, presumably not having much else to do other than trade stocks? >> that is a fair point. i think if i break of the chinese market, the adr, especially the internet related stocks, when you look at hong kong, i think there's a bit of a semblance of reality. to your point, on the shanghai exchange, the first day on march and nows a bounceback you've recovered above those levels already. so we are not sure if it is fundamentally driven because it still is fairly fluid. but there is a certain amount of buying that is driven

institutionally by local investors, may be traders as well, but also insurance companies and institutional money. we have to wait for the dust to settle, but the a share resilience definitely is something that stands out. especially since you are still early in the fundamental earnings cycle. we are expecting the malaysia rate decision later today. what are you watching their in terms of the political drama playing out and how that could impact the markets? atmalaysia is a market that one point was a developed market. we look at it, it is marginalized even in e.m. construct. what you get to is yield. that comes with a current account surplus. if there's a rate cut, it might give a little bit of a boost,

especially in the banks. but otherwise, the politics of it has kind of sidelined malaysia, but also southeast asia has gotten marginalized. especially when you look at liquidity. thank you so much for staying on with us. conrad, thank you for coming on with us. coming up next, discussing the rba's expected rate cut. this is bloomberg. ♪

shery: this is bloomberg markets: asia. a torrid few days for the global economy have firmed expectations for a reserve bank of australia rate cut. gpm andheard from

goldman sachs yesterday. seeing a quarter-point cut later on tuesday. let's bring in felicity. it is interesting. you think about how reluctant the governor has been to talk about cutting. is there a chance that he won't go today? >> i think there is a chance, but it does seem there has been a rethink about the outlook, given what happened in equity markets and how they responded to the threat to the global economy, what we are hearing from the oecd. it does seem there is going to be a coordinated response in addressinga the issues around the economy. haidi: i want to throw up this chart, looking at qe in australia. the inside cash rate has markets thinking we will get there by

april. will we talk about quantitative easing and what that would imply? >> i think we will. that conversation will come up quickly now. now that the market is pricing below 2.5, we are certainly expecting that to be the case in the next few months. most economists are. i think the conversation about qe will come up. low rates are, if australia was hit by some sort of global shock, qe would be the next step. given that you are seeing the aussie dollar weakening, not to mention that you had three rate cuts already last year, wouldn't it make more sense to wait and see what could be in store when it comes to government stimulus measures? >> it is possible that the rba might take that tack, but i don't think so.

i think the aussie dollar has fallen a lot, but the main stimulus we get is through the services side, so we get more people coming to australia, whether they are students or overseas tourists, and fewer people traveling offshore. so we are not going to get that stimulus from the aussie dollar because we are not getting those travelers arriving. that sort of channel is a little blunted. not as much as previously. it is a little bit blunted. the response needs to be much fromr and more coordinated the government and the rba and quite targeted as well. that they have moved past that idea that they've got a few months to wait to see how things pan out. outlookhe rba's

factored in a 0.2% impact on gdp growth. what is your forecast of the coronavirus impact? plus the bushfires as well. coronavirus will take about 0.5% off first quarter growth. the bushfires will probably take another 0.1%. that is enough to leave first quarter growth in negative territory. so we are setting ourselves up for the potential of a recession. it is difficult to be confident about what has happened in the second quarter, but because we are really not seeing any improvement in terms of the virus and how that is evolving, we are unlikely to see students very quickly. the second quarter gdp is also looking under pressure, raising the risk that we have our first recession in australia since the

1990's. haidi: how much risk is there in reigniting property prices? >> is a really strong risk. we already saw on the weekend, rates in sydney are above 80%. we are still seeing very strong price gains in sydney and melbourne. rba is something the conscious of. but it is very difficult. interest rates, monetary policy is a very blunt tool. haidi: do you see more macro measures? >> i think that is something they will be considering. there are problems with house prices taking off and potential for debt to increase. situationry strange where you have consumer confidence very low, people very worried about the outlook. haidi: is there any concern or warning signals from the market data? >> the leading indicators are

suggesting we will see an increase in the unemployment rate. at the moment, that looks relatively modest. know about howwe this virus is impacting the tourism sector in particular, but also universities, food potential forre's significant further job losses. the extent of the fiscal stimulus that we get and how targeted and how large that is will hopefully provide some mitigation to that. shery: and we have the g7 finance ministers speaking today. coming out and saying they want to coordinate with other nations on the outbreak. what would coordinated action globally look like? will looks as though we

have coordinated monetary policy easing. powell has said they are ready to take action. the ecb as well. coordinatednitely easing of interest rates and monetary policy. in terms of fiscal, it is a bit harder to judge. perspective,a's they are looking at targeted measures. but i think that coordination and synchronized easing will help to alleviate some of the fears in markets. evolves willirus still have an influence, but once we see governments and central banks stepping in, that will likely provide some comfort that there will be some offsetting impacts on the economy. haidi: felicity, thank you. if you missed any part of this conversation, tv is your function. you can watch live and catch up

on past interviews, as well as dive into the securities and bloomberg functions we talk about. send us instant messages during our shows. this is for bloomberg's subscribers only. this is bloomberg. ♪

shery: -- haidi: this is bloomberg markets: asia. thes get a quick check -- latest business flash headlines. compliant systems at deutsche bank have been placed under scrutiny, in a setback to efforts to bolster controls and improve relations with regulators. they must now update the boe on a monthly basis rather than quarterly. been several setbacks, including money laundering probes and having headquarters rated in 2018. haidi: tesla has endured a

tough couple of months. the car maker register just 83 new vehicles in norway last month compared with more than 1000 last year. the news was almost as bad when it came to the netherlands, with just 155 units. these are two of the four countries where tesla turns a profit in europe. in australia and new zealand, tracking gains on wall street. let's bring in david ingles. gains started here. abouta, the boj talking more operations and asset purchases. can the games continue? >> it looks like they will continue. centralnothing like bank support. there is almost nothing like coordinated central bank support.

we had -- we talk about australia. don't forget, indonesia as well. this.s are banking on which is precisely why you are seeing futures up, and at the same time, a steepening in the curve. these yields are continuing to drop. dave, what are you watching for the rest of the day? the question is how sustainable this rally is and how much investors are expecting to hear out of the conference. >> that is taking place today. g7 finance ministers. what was interesting, going into this week, one of the trading to still beas cautious, look for good

position, and also, for policy support. if you position for policy support, beer is on you. to your other question, is it sustainable, jp morgan was out with a note, fairly straightforward, basically andng the virus has to peak start coming down for the rally in stocks to actually become sustainable and start moving up. so it could be volatile. we could be a hairline -- a headline away from another drop or surge. biggeste had china's stock rally in months, and this coming at a time when the pboc refrain from any more action for

a 10th consecutive day. thethe rally continue on expectation that governments will implement more fiscal measures? >> it has worked before. you immediately saw a spike in turnover once we did get liquidity out of the pboc. i heard one of your earlier guests talk about this as well. we know what the economic impact is going to look like. we know pmi is going to be horrible. that the earnings story you want to watch. shery: david ingles there in hong kong. let's check on how the markets are faring. we are seeing this recovery, relief rally, whatever you want to call it. new zealand trading higher. that market had been lower by the most since 2008.

aussie stocks also staging a recovery. markets are expecting a cut and we are looking like a positive start to trading in seoul and tokyo. this is bloomberg. ♪

haidi: markets just open for trade. shery: good evening. welcome to bloomberg markets asia. ♪ haidi: top stories this tuesday, -- a global response. -- assaduffered

games and hong kong's retail sales collapsed. the government tells us the property markets may hold up. of --do not see the risk downfall. the circumstances very different compared to 2003 and before. shery: japan and south korea coming online. let's get to the market action. >> that central bank-induced rebound continues. we've heard from the likes of the fed, the ecb, the d.o.a., g7ance ministers from the set to discuss the coronavirus and all eyes on the rba decision. japanese equities extending yesterday's gains and the haven bid is coming in. yielding --

after better than expected, higher by more than 2%. but really where we are seeing major action is in australia and new zealand. the afx 200 having its best day of the year. kiwi stocks up more than 3% for the best day since 2008. all eyes on that rba decision. traders pricing in a cut of at least 25 basis points and s&p futures extending days after a surge of more than 4.5% in the regular u.s. trading session. let's put that in the context. just how large was that spike? moves do not happen in a vacuum. this qualifies. a surge of 4.6% for the s&p 500 brought the index back above its 200 day moving average from extremely oversold to no longer

technically oversold by way of 14 day rsi. the best day since december 2018, the post-christmas bounce. --s the second best that day the second best day since 2009. haidi: in the last hour or so we heard from u.s. vice president mike pence speaking at a press conference providing an update on the coronavirus containment measures in the u.s. saying there may be some cases of coronavirus in the u.s. .e tried to allay fears >> the risk to the american people of the coronavirus remains low according to all of the experts we are working with across the government. haidi: let's get to tom mackenzie who is monitoring the situation from beijing. did we learn anything new from what the vice president had to say?

tom: he's leading up the efforts of the u.s. side and they are unveiling additional efforts to curtail the virus. we know the problems around testing kits for example, on the economic front the trump administration is looking potentially pushing the fed into emergency rate cut and maybe they are considering cuts to taxes, additional tax cuts as well. in terms of the data coming out of the u.s., washington state is an area where there's concern. reported -- four reported and confirmed deaths after it was declared an emergency yesterday. u.s. health officials saying we are likely to get a pandemic. new york reported their first case yesterday. the governor saying he expects additional cases to be reported in that city as well. president trump, meeting with the heads of some of the top drugmakers in the u.s. including pfizer and gilead.

he says they think they will be very successful. they did not give many details on any work that's being done. the experts have said it could be at least 12 to 18 months before you get a vaccine for this. there's longer-term planning in place because there is a view that this could become an annual event we all have to deal with. the focus on the vaccine side. infectionsdditional most inevitably in the u.s.. shery: given all of that president trump in the u.s. has been telling drugmakers to get it done. president xi jinping has been saying something similar for some time. both presidents now -- president xi jinping urged officials at a research lab and members of the

medical community to work faster on a vaccine. it seems both leaders are focusing on long-term as well as short-term methods to curtail this virus. mike pence, vice president, he's leading efforts to try to thisil -- try to contain virus. chinese officials are concerned. you may see another spike in infection rates but so far that trend of moderate infection rates has continued. we are waiting for the latest data in terms of confirmed cases . yesterday the numbers reported 202 which is the lowest additional infection we've seen since january 22. that's a positive trend many will be hoping continues, if you believe that official data. the other hot spot is south korea more than 4300 confirmed cases.

the world health organization saying it's not too late for south korea to try to contain the virus but there is mounting concern in that country. in the middle east hotspot is iran where you have 1500 confirmed cases, at least 60 confirmed deaths. the world health organization has flown over with testing kits for as many as 100,000 tests. in europe you're seeing more cases in spain, italy, the u.k. has 40 cases. the european union setting up a task force to coordinate efforts. this is very much a global disease. we are waiting for the latest numbers as i stand here in beijing. shery: joining us from singapore to look at how the virus is asiating markets, head of research, mark matthews. we continued to see the bond markets showing these expectations of rate cuts from the federal reserve. showing this drop in the front end of the yield curve showing the net change, yields over the

past six months. what are you expecting in terms of what the fed will do next? we have more speculation that we could have an emergency rate cut ahead of the march meeting. >> it would not be the first time that asia provoked a large rate cut from the federal reserve. i'm thinking back to the crisis where that was the case. i think the fed would be reluctant to do an emergency cut for lack of a better way of putting it because they don't want to look like they are slaves of the market. a lot depends on the market itself, if it can regain confidence and continue this rebound, in a way it becomes a self fulfilling prophecy and they can wait until march and may be in march they won't need to cut. the market will answer that question for us. haidi: ann's interesting that something other than outright rate cuts like we've seen for

the boj trying to add liquidity into the market. >> for sure. one thing they did start doing at the beginning of this year was they no longer continued those repo operations they were doing late last year. the feds had a history of intervening in the repo market. 11. did it after september there was the global financial crisis, maybe i'm missing one time. they did it late last year and they scaled it back. i think there be an easy thing to provide liquidity for the ,arkets through the repo market open market operations. we are haidi: haidi: just getting the latest virus update numbers out of china. china reporting 31 new coronavirus deaths as of march 2. 100 25 additional coronavirus cases on march 2 and the death toll rising to 2943.

the global debt told topping 3000. total concern coronavirus cases province,erms of juve new coronavirus cases on march 2 and 31 new coronavirus deaths in hubei. we have seen a reassuring tojectory if you were believe that data. in terms of how the rest of the if wefairs, can we assume don't get anymore massive lockdown containment measures elsewhere, we know we've seen that in part in italy, all over china, that the resulting damage to the global economy can be measured to the same degree? that is a complicated question. i will try my best to answer. there's a fine line governments have to will between containment

and shutting the economy down to the extent it causes so much damage that it's not worth it. i think china realized they gone past that stage and thankfully they also managed to contain and so now they are bringing things back. if you walk down the middle line you end up making nobody happy because the economy is bad. i guess the economy is not as bad as it could have been if you shut the whole thing down and probably less people died that if you cap everything going as normal. i do think china is a lead indicator. is even if the numbers are not entirely correct i think the direction is correct. the who released the situation report from their visit and they believe the numbers are trending down and it's being contained

based on anecdotal evidence. now that china is starting back up getting back to work you can extrapolate a similar trend in the rest of the world. right now the rest of the world is in that lockdown phase china was in a month ago. phases ofrious acceptance of reality or truth and right now china is coming out of it and the rest of the world is going into it. shery: we are hearing from the u.s. health and human services head, saying they are planning for a variety of coronavirus scenarios we heard mike pence give an update. i'm wondering how much this has the potential to play into as an election issue going to super tuesday tomorrow as well. crises much so because can help a politician or they can hurt a politician depending

on how the response is perceived. i think people say fdr is considered one of the greatest residents of all time because he a depression and a war. if you come out shining you go down in history. the way this is handled will go down in history and will deeply impact the election. i think it's too early to say so far. there's been criticism of the thernment response in united states. it has not been a huge outbreak of cases either. it is too early to make any conclusions. shery:shery: is it normal that so far we have not seen any of the election risk being factored into the market? >> i think the election risk has already been factored into the market to the degree -- if you

look at the betting websites they are still giving a pretty decent chance of the democrats winning. if you aggregate all of the democrat candidates, i can't remember with the latest odds are but i think they are around 25%. i think the market is mulling all that over. as far as politics goes the big thing is biden versus bernie. biden clearly is more friendly to the markets that bernie so that will be important, the outcome super tuesday. haidi: thank you for joining us as always. you to first word news with karina mitchell. >> official data confirm retail sales and hong kong entering a 12 month losing streak. the lunar new year holiday was disrupted.

extending the longest downward trajectory in three years. to 23%. volume dropped another democrat has abandoned the race for presidency. amy klobuchar dropped out ahead of super tuesday and is endorsing joe biden. he's expected to also gain the support of pete buttigieg who quit the contest on sunday. 14 states and one territory vote on super tuesday with bernie sanders favorite to take the biggest delegate rise, california. the trump administration is ordered four chinese state media --rations to cut operations expo 3 wall st reporters last month. china radio international and china daily distribution. among 60 staff may have to leave the u.s. exit polls in israel suggest prime minister benjamin netanyahu is within striking distance of forming the next government. he gambled on repeat elections to win a majority amid

allegations of corruption. polls released by three tv stations shows netanyahu's party and allies leaving. i'm karina mitchell. this is bloomberg. , more still ahead uncoordinated easing from central banks. inviews of the decisions australia and malaysia. haidi: hong kong's finance chief highlights from that interview just ahead. ♪

haidi: we have seen diverging expectations for australia's central bank decision while economists are split on the outcome money markets are -- jamesll but certain mcintyre joins us. what a difference 24 hours makes when it comes to expectation. what has changed? james: a lot has shifted domestically. this morning we might have seen a few -- possibly unknown hold call you can to rethink that when we see consumer confidence has shifted domestically. what we've seen over the last that not onlys is is the chinese economy more affected, the rba's worst case scenario, we can see those export volumes have really started to get impacted. it's having a much more significant impact on australia. we've seen the outbreak

intensify and spread. have begun to price in expectation that the rba and global central banks will be moving. i think there's a lot of pressure for this decision. if they don't cut today that only will it disappoint domestic markets but that large rally we've seen overnight and the advance ahead of this g7 finance ministers and central-bank ministers meeting coming forward over the course of tonight, the rba allies will be on them to be one of the first if they don't cut, they are not dovish that is going to cast ruth out and might come. shery:shery: what are the risks of a cut today especially for the housing market where we see an uptrend? james: the housing market is one of the key things that the rba would be concerned of. we did get house data yesterday showing another solid rise,

anchored still by what we've seen in the strength in sydney so that's going to be one of the things that keeps the rba on the sidelines. that's -- there's more than a full cut priced in. money markets are very much put atng -- they did some stages over the last 48 hours put a good chance of the full 50 basis point cut it whether that is something that would read make those housing market risks remains to be seen. we do get the spread of the coronavirus and more cases emerging in australia and disruptions coming through domestically. that could be something that could circumvent whatever we might see or if we look out the rearview mirror have been experiencing. shery: james mcintyre, thank you.

there with an update on the economy. , malaysia,tral bank expected to deliver a rare back to back escalating coronavirus threat. our economics reporter joins us now. this cut inevitable given the political drama that we are seeing unfold and the growth number slumping? michelle: i would hardly say it was inevitable. we will see coronavirus take center stage. it has become a global story in recent days. the focus shifting more toward the u.s. and other global central bankers. malaysia still has to deal with the impact. we saw just yesterday the manufacturing pmi's continue to look very bad. oftraction territory for 16 the past 17 months. only slated to get a little bit worse in the immediate term as they deal with the coronavirus outbreak. china, as with many other southeast asian economies is

malaysia's top trading partners so there continuing to look at how this is affecting industries like tourism. that was the focus of a 4.8 billion dollars stimulus package last week. central bank has to do its job. they cut in january before these outbreak symptoms set in. looking for the cut in our bloomberg survey but also as you mentioned there is this whole sideshow. this power struggle that has played out over the past week. very dramatic change in government and malaysia. while central bankers never want to comment on the politics we see the discomfort on the u.s. side with the fed and the white house going at it. they will have to show there is a steady hand that they can reassure investors and businesses and consumers show must go on and they will be some sort of coordination in terms of the fiscal side as well as the monetary side working toward stabilizing this economy.

this haidi: haidi: is no time for political drama. thank you for joining us area you can get a roundup of stories you need to know to get your day going in today's edition of daybreak. right there on the mobile. you can customize the settings as well so you get the news of the industry and the avenu asses that matter to you. ♪

because of rapidly changing circumstances and uncertain

guest demand. haidi: lisa says second quarter revenue growth will be 3.5 percentage points lower than the forecast in january. in february do not yet fully reflect the impact the epidemic has had in asia and beyond. visa adds the trend has not had its bottoms. shery: china's number two online retailer saying it a preliminary estimate given the rise of coronavirus. jd.com reported fourth-quarter income of almost $25 billion topping highest estimates of robust user growth. 10% growth is less than half the rise analysts are expecting from the quarter. rally just started

yesterday in asia trickling through to the u.s. we are seeing the upside of over 2% when it comes to trading here in this part of the world. these stocks up by close to 2%. new zealand recovering from yesterday's lows, 3% higher. we have the --

we are getting some numbers crossing the bloomberg ahead of the rba rate decision. the central bank expected to cut rates. building approvals the contraction of the same points for the month of january month on month. exactly one billion aussie dollars. 0.1.ing to we are looking at all of this in the context of what the major drivers will be for the rba. we have seen that deterioration what it comes to trade expectations and conditions with demand falling out of china.

let's check in on the markets. sarah: global markets are putting fears of the coronavirus are putting -- fears of the coronavirus on the back burner. foreign stemming -- stimulus into the system. , japanese see equities extending yesterday's gains, back above that round number of 2000 after -- let'san-expected also get you a look at the fx and rate market area the aussie dollar holding steady but near the lowest level since 2009. this, right before the decision the rba will make in just a few hours. trade is expected at least 25 basic point -- basis points be alert for any potential talk of unconventional policy measures. we do see strengthening versus

the u.s. dollar for an eighth straight day. the longest streak since 2017. although moves have been smaller they been moderate. this after falling as low as 70 basis points in the 10 year yielding 115. a closer look at the edge mark 10 year treasury yields. just yesterday we saw 10 year yields fall as low as 103, putting this red dotted line at 1% in focus. we did see an immediate change after the boj came out issuing an emergency response. strategists do say it will be much more difficult for treasury yields to break this 1% line that it was for them to break 125 which we broke a few days ago. at current level treasury yields are off by 70 basis points, already this quarter. that would be the most for any quarter since 2011.

back to you. shery: to your point after that announcement we are now finally getting the latest boj lines. they are going to buy ¥500 billion of jgb in an unscheduled repo operation as they announced last night. this was in order to provide ample liquidity to ensure stability in the financial markets. they are saying the repo off our 16. run from today to march this as they are buying ¥500 billion in jgb's. this would be around 4.6 billion u.s. dollars. this would be an unscheduled operation coming from the back of the boj's announcement. theyve shinzo abe saying will introduce more economic measures if necessary. dealing with the impact of the coronavirus outbreak. they are saying they will make full use of budget reserves to tackle the virus. this also coming on the backs of

the finance ministers saying they are rolling -- we can see this support from the economy, for these firms that have suffered in full swing in support for the financial markets. primate asked her abe saying the market takes this unscheduled repo operation . that will go through to march 16. >> the world's top finance chiefs will lead a global conference call to discuss economic threats posed by the coronavirus. the call will happen at 1:00 paris time with ministers joined by central bank governors. the oecd says growth -- central bankers are pledging to shore up their economies and markets. a key gauge of u.s.

manufacturing declined to near stagnation amid concern that economy might not dodge hit from the coronavirus. to 50.9index but 50.1 -- the index felt led by the biggest drop in production since 2018. -- the long-awaited trade talks between the u.k. and european unions are underway in brussels amid tensions surrounding prime minister boris johnson's threat to walk out if there's not enough progress in the coming weeks. he wants agreement on commerce, fishing rights and financial ties by the end of the year. other trade deals usually take several years to conclude. this is bloomberg. shery: the hong kong government gave cash handouts to its adult citizens and permanent residents

to stimulate its economy under pressure from the protest last year not to mention the coronavirus outbreak. chan. man spoke to paul >> i think the rebound will be strong. to what extent is a rebound compared to the past -- >> what do you say to economists who say this cash handout is just not targeted enough? that this is a drop in the ocean for many and you could've used the same amount of money to really help the people in need? >> the people of hong kong like to have choice. situation iifficult think the circumstances varies. andiving cash out encouraging the business sector to come up with incentive programs to complement this initiative from the government.

> he said the current amount of spending is not sustainable in the government needs to look for other sources of revenue or review the tax rate. what are you considering now? >> number one consolidate of expenditure. high rate ofvery growth in terms of expenditure. this is necessary to improve services to catch up on different area of social services, but there is a point that we need to consolidate. we need to look at the revenue aspect in terms of whether it is possible to enter some of the tax rates. whether it is advisable to open new sources of revenue. but this is something we need to have a debate in the community. >> would you consider a vat tax? >> on and off there's discussions. i do think -- on the other hand

it isly understand regressive. it is something contentious. ande want -- discussion debate in the community is very important. going >> to be running large deficits for the next five years. there's some economists that are concerned that hong kong is going to be facing structural deficits. we have seen credit agencies like fitch cut the credit rating . is there anything hong kong can do to avoid or downgrades? >> i think about structural deficit it is too early to draw such a conclusion. > do you think home prices can remain resilient during an epidemic like this one? >> we have seen the private residential property market

downward adjustment since last august. the degree of adjustment has been pretty mild. even with the current epidemic. we do not see the risk of downfall. the circumstances very different when compared to 2003 and before. shery: that was the hong kong financial secretary speaking in hong kong. the portrait capital -- peter, ray to have you with us. looking at the damage that has been suffered by the sector in hong kong. we have seen this 12 month losing streak.

street corner in hong kong really suffering the most as we get a shrinkage of mainland visitors but also a collapse in consumer confidence as well. how does this and? this is pre-coronavirus stuff. six months of ongoing protests adding to the situation there. > that's exactly right. bad news usually comes in threes. the coronavirus is really following on six months of protests as you say. the china trade war, which actually hurts the hong kong economy substantially. i think the numbers in february will be devastating in terms of retail and tourism. we look at retail figures, sales figures, the later figures for january are down about 21%, which is consistent with the last six months. but in february i think we see

the numbers way down more than that. the recovery that we normally see after chinese new year this year has not happened. i think you will see many retailers looking at 80% downside in retail sales in the month of february. that's going to be pretty painful. for the tourism sector as you mentioned. haidi: alan deming has been in consultations with a lot of his tenants about offering supportive measures and some support to get them through these tough times. that is far from the norm and in general it's pretty well-known hong kong landlords, most of them would rather let their shopfront sit empty than give any sort of rent reduction. is that likely to change? >> this time round i think it's different. many of the hong kong landlords, particularly the bigger landlords who on the bigger

malls and shopping centers around hong kong city, many of them have been offering rent waivers and rent reductions on a , really starting up a back end of last year. that pressure is going to get even worse as we see at the moment with the downward spiral and retail sales in the last six weeks or so. i think the landlords are very accommodating or trying to be accommodating. it may not be enough. i'm expecting to see a lot of distress particularly in the smaller and medium-sized enterprises. anything attached to the tourist industry which is down bit -- down big time. shery: what would that do to the banking sector in hong kong? nonperforming loans have been steadily decreasing in the last few years. kong.'s will rise in hong

even if we go back and look at the last crisis, back in the global financial crisis and even back in the asian financial crisis, did not get much above 3% in hong kong. what you see here, most of the big property companies, the big listed companies whether they are in trading or whatever have very little debt. they have excellent balance sheets. and the to value ratio mortgage industry in hong kong is around 50 percent to 55%. a lot of equity cushion. the areas i'm concerned about, borrowers from china we tend to be more highly leveraged and i think that is a risk to the banking system. we do not expect to see a systemic problem for the banking system.

shery: thank you very much for joining us today. hong kong general chamber of committeeommunity -- chairman. coming up next, fitch ratings -- thereynolds joins us economic impact of the coronavirus. this is bloomberg. ♪

haidi: this is bloomberg markets: asia. shery: fitch ratings says the outside of china itself the economic fallout from the coronavirus will hit hardest in hong kong and mongolia. andrew fennell joins us now. great to have you with us. we have seen the huge budget hong kong announced recently but

the chart on the bloomberg shows the fiscal position pretty solid. having said that, giving the slump in economic growth, the prolonged recession, bigger spending, how much pressure will this put on their credit rating? andrew: good morning. thank you for having me. we put out a piece on hong kong's budget last week. the headline was we are overseeing a significant softening of hong kong's finances, not just for the coming fiscal year, on our own estimates we think the deficit will be 5.4% of gdp, basically a record. if you look into the medium-range projections the government reduces we are essentially seeing fiscal reserves dwindling to about

forecastgdp over the range. not just a softening of fiscal position this year but over the next five years. ist that means for ratings actually not all that meaningful because of hong kong's significant physical reserve. as we said in our note, we have hong kong at a negative rating outlook but that is at the the emergenceby of the antigovernment protests and what that means for the resilience of hong kong's business environment and perceptions of its government's effectiveness. shery:shery: given that they have so much fiscal room to do more, would it make sense to do more at this point to try to shore up their economies? how much further could they go before they get into trouble with ratings agencies such as yourself? andrew: hong kong does have a lot of fiscal room. fiscal reserves are about 40% gdp.

the government does on a baseline estimates have that going down to 26.5%. , if we bit of context look across the border to macau, we think macau has tremendous fiscal space. they have accumulated fiscal reserves of roughly 150% gdp. hong kong does have room but it does not have the most room out of all the sovereigns we look at at fitch ratings. hong kong does have an aging population. demographics are not that favorable. the government needs to think about the future. the future basically has recurring spend insurers with the cost of that population. that is the reason the government has been accumulating fiscal reserves over the five -- over the past five to 10 years. haidi: if we assume things in china are at a turning point or

things don't get much worse from here so you've got china essentially starting to restore capacity and industrial production of people going back get a similarn't lockdown in another part of the world has the damage been contained economically at this point? andrew: we produced three economic growth scenarios for china last month. the first rapid containment scenario, we have to discard at this stage. two more severe scenarios seem pretty relevant to us. that has growth of in china for the year between 5.2% to 5.5% for 2020. the q1 figures will be much lower. given the fact that the suspected cases peak in early february, and now if we look at the daily new confirmed cases in

china, they are basically in the low to mid hundreds at this stage. as you can see from the limited high-frequency data we have coming out of china these days, we see a gradual resumption of activity, albeit at low levels. in our base case, we expect activity of the economic ramifications of this virus should be contained to the first quarter of this year. there's a big question, now that the virus is spreading -- spreading internationally, that's going to have economic reverberations eventually around the rest of the world and that could feedback to china itself. that is something we continue to monitor at the moment. that is a really good point. a lot of this has thrown out the conversation as to -- even when you compare developed economies not all are equal in their capacity to fight the virus or

test and contain the virus. you look at the difference between japan and south korea, what does that mean for some of the periphery economies you cover like mongolia? andrew: mongolia has done very well in the last few years. part of it has been the benefit of an imf program that helps stabilize policy settings. the reality is as we wrote in this report, beyond hong kong, which obviously has high economic demand, mongolia really stands out in itself because it has very high linkages to mainland china. we estimate about 90% of its exports go to mainland china, much of which are in the form of coal or copper, due to public health concerns, mongolian authorities effectively closed the border, not just the people crossing the border but also to

coal shipments. coal is put on a truck and there are drivers, it's very intensive in terms of people to people contact. they shut the border until march 15 for coal. so this will have significant reverberation for mongolia and it's something we flag as an economic vulnerability at the moment. shery: how does taiwan stack up? andrew: taiwan has fared quite years,ring the last two even during the height of the u.s. china trade war. some of that had to do with a re-shoring of production capacity to taiwan. some of it has to do with a trade redirection. certainly facing a growth challenge. linkages not only to mainland china but to the rest of the world. i think from a sovereign ratings perspective, our main concern or main rating sensitivity for

taiwan continues to be, basically, this ambiguous international status and cross trade relations with the mainland which could introduce potential economic and political shocks. us.i: thank you for joining andrew fennell, taking a look at china and hong kong. potential impact of the coronavirus on mongolia as well. getting breaking news. the buttigieg recently dropped out of the democratic fight to become the democratic candidate for the november election is officially endorsing joe biden for the democratic nomination. you see joe biden speaking and the former mayor pete buttigieg is just behind him. we expect amy klobuchar to offer her endorsement after dropping out of the race. together, could be

seen as a rejection of bernie sanders going into super tuesday tomorrow. pete buttigieg announcing an end to his presidential campaign standing just behind joe biden as he speaks in dallas, offering his official endorsement for joe biden for the democratic nomination. we will get you more on that as the details,. ♪

haidi: let's take a look how markets are faring. a jump in oil in the asian session. over 3%. quite a recovery given we had crude languishing for most of those 2018 lows. jumping the most in five months, expending -- extending gains in asia. opec also meeting in vienna this week, expected to curb production. six straight losing sessions of oil so this is a welcomed rebound for new york traded crude. that is just about it for bloomberg markets: asia. our coverage continues into the start of trading in hong kong, shanghai and shenzhen. ♪

>> it's 9:00 a.m. tuesday in beijing. welcome to "bloomberg markets: china open." i'm shery ahn. haidi: i'm haidi stroud-watts in sydney. we are counting down to the open. our top stories. asia-pacific stocks rising. treaties are feeling -- traders are feeling optimistic about a coordinated coronavirus response. cut rates rba may in a few hours. haidi: hong kong's government tells us