ste. now that's simple, easy, awesome. transfer your service in minutes, making moving with xfinity a breeze. visit xfinity.com/moving today. shery: welcome to "daybreak asia ." i am shery ahn in new york. haidi: i am haidi stroud-watts in sydney. we are counting you down to the start of trading here in asia. let's get you our top stories this hour. asian markets aiming to follow u.s. stocks higher amid optimism about the reopening of the economy. stephen mnuchin sees a restart by the end of august. oil recovers from a 21 year low up to two days of frantic

selling but the glut looms over the market. the politics of the pandemic. the u.s. and china continue to trade barbs over their handling of the crisis. washington says the world has been let down. breaking news out of south korea. we are getting first quarter gdp numbers quarter on quarter, seeing the biggest drop since 2008. young talking about a contraction of 1.4%. it is still a little bit better than expected. the expectation was a contraction of 1.5% but it will still be the first quarter on quarter retraction since 2009. the year on year number rising 1.3%, is also bigger increase and was expected. it was expected it would only gain 1%. it is also growing -- this rise of 1.3% year on year coming after growing more than 2% in the past two quarters, so it is still a slowdown from the previous quarter. we are seeing manufacturing taking a big hit, a contraction

of 1.8% for the fourth quarter and also contraction from the previous quarter. we are seeing the hit on retail trade, accommodation, food services. we have the virus outbreak dragging on south korea's economy not to mention that external demand has been weakening with china's gdp also taking a hit from the coronavirus outbreak. thesediscuss all of latest numbers with barclays asia-pacific regional economist angela. great to have you with us. we are seeing a contraction quarter on quarter, the biggest drop since 2000 eight. at the same time, it is a smaller contraction than expected. bigger rise when it comes to the yarn your numbers. give us your take of where the south korean economy is at. angela: thanks for having me. today's number is broadly in line with expectations. we were focused on 1.5% year on year and we have not seen the details yet but previously, we

thought that the frontloading of fiscal policy as well as exports up until march may have helped offset some weakness coming from private consumption, so with today's numbers, we maintain our 2020 gdp growth forecast at minus zero point 1% year on year. we are-- shery: expecting another round of extra budget measures, fiscal measures, coming from the south korean government. we are also expecting the bank of korea to do as much as it can, especially when it comes to buying an unlimited amount of bonds. how much will all of this help for the later part of the year? angela: it is very encouraging to see active policy measures coming from both fiscal as well as monetary policy france, but we don't think this will be able to completely offset the bigger global recession risk. the house is forecasting global growth to contract 2.3% and you

will -- it will be difficult for korea. >> what more can policymakers do? ruling given that the party now has a super majority in the parliament, we think they still have room to do more expansionary fiscal policy. that is a reason that president moon also announced they are planning a budget yesterday and we are also expecting the bank of korea to cut rates once more, most likely 28th of may, so we are expecting also the policy from both fiscal as well as monetary policy. what about the impact on the labor market? itiously, we have a lag when comes to labor market data. is that the prolonged impact of the covid-19 shutdown? something., that is

we think the worst is yet to come for the job market, so for the march labor market report, we already saw close to 400,000 jobs were lost. sme's continue to suffer and their financial distress level will keep escalating, and this will mean more jobs will be at risk, so yes, the job market will definitely be something to watch in the coming months. earlier, i mentioned the bok announcing to buy an unlimited amount of bonds in the repo market. what does that mean when it comes to further rate cuts? does that ease the pressure on policymakers and the central bank to do more? they areo we think tapping into this uncharted territory because policy rate is at 0.7 point 5%, a record low, and given we are expecting them

to go to 0.5%, they are effectively close to reaching their effective lower policy bond, and this is the reason why they are tapping into some of the unconventional policy measures and announcing unlimited liquidity injection is one of the solutions. haidi: how useful is it when you have individual countries like taiwan which seem to have done an excellent job of handling or preventing the spread of the virus and therefore shielding impact on their domestic economies? how much of a boost is that when you have the global economy falling into a downturn? angela: yes, indeed. we think the good containment measures taken by the korean government will definitely help mitigate some of the economic fallout from the global recession risk, so that is why

we are expecting some sequential improvement. domestic demand will gradually recover. shery: asia pacific regional economist, thank you very much for joining us today and we have more lines coming from president trump as he speaks at that press conference on the coronavirus outbreak. he says the immigration order that he signed may be extended and modified. of course, we have seen president trump signed an executive order that would pause immigration into the united states for 60 days because of this coronavirus pandemic. now, the president saying this could be extended and modified. president trump also justifying some of his actions during the handling of the pandemic, saying he never heard of that vaccine director who left.

-- herse, we had heard believes he was removed from his role in his attempts to limit the use of some drugs touted by the president. let's turn to sophie kamaruddin for a check of the markets. for a: we are setting up modest are in asia with earnings in view from the likes of sk hynix. gdp data from south korea to digest as well. the finance ministry saying shocks to jobs and the real economy may widen in the second quarter. nikkei futures in chicago under pressure while s&p e-minis are edging lower as well. he restocks snapping a three-day drop while futures are extending gains, holding above a 21 year though showing u.s. stockpiles are at a three year high. checking in on currency, switching out the board, the dollar study and the yen staying stuck in a rage after a two day decline with options focusing on 107.40 ahead of key u.s. jobless

claims data and the euro holding on a three day decline, testing a key level ahead of the e.u. meeting this thursday. and the hong kong dollar marketing that staying near the strong end of its trading band as carrie traders have been taking advantage of that rate cap to the greenback which widened as we are seeing rates fall. haidi. kamaruddin in hong kong. still ahead, talk turns towards the reopening of the economy. we are going to take a look at what this means for companies coming back to work. officer willategy be with us to take a look at whether it will be business as usual. coming up next, nancy pelosi tells bloomberg a major package of aid will be next up for consideration by congress. this is bloomberg. ♪

karina: you are watching "daybreak asia." i am karina mitchell what the first word headlines. glut continues to loom over the market. brent futures for june post 5% higher after slumping as much as 17% earlier in the day. york,exas rose in new ending strongly higher despite falling into negative territory on monday. u.s. crude stockpiles are at a high. the u.s. and china continue to trade barbs about the coronavirus, each saying the other should have done better. washington initially said beijing covered up the extent of the infection in the early days, prompting them to say it was a u.s. attempt to shift attention. washington says china and the world health organization have left the rest -- let the rest of the world down. spain is extending its virus lockdown to may 9 as it

struggles with the second-biggest infection outbreak in the world. opposition lawmakers voted with the government to prolong curbs for a third time with more than 20,000 people now having died. italy registered its highest number of new infections in four days as the government prepares a new stimulus package for the paralyzed economy. fitch doubled its estimate of the slump in global gdp growth. it now sees worldwide output following by 3.9%, more than twice forecast at the start of april. that would be a decline of $3 trillion in global income levels and a loss of four .5 trillion relative to pre-virus expectations. we are facing "a recession of unprecedented deaths." 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. haidi. coronavirus cases in singapore have crossed the

10,000 mark as infections continue to surge. let's get to yvonne man with the very latest. doingore is singapore about this continue to rise we have seen in infections among migrant workers? yvonne: the government looking for new ways to house foreign workers that they feel, more than 200,000 of them are living in these tight quarters, often 10 people per room. they share a kitchen area and bathrooms as well, so it is contributing to the why things have progressed so quickly. the total number of cases has risen tenfold since start of the month and we saw for the third day in a row where new cases top 1000 in the cities. we did hear the government say they began halting the movements of migrant workers into and out of these dormitories. they converted military camps, making public housing into interim housing facilities, and

so far, 10,000 of these essential workers have been transferred out of the dorm. singapore now also considering using cruise ships to accommodate workers who have recovered and tested negative. cruise ships lay idle during this pandemic. in southeast asia, we are looking at indonesia. they have extended the partial lockdown in the capital until may 22. the social distancing measures so far have been on for a month now but have not done much to flatten the curve. the trip harder region has become the epicenter, now accounting for two thirds of the cases in the country. shery: right now, japan is going to add routine countries to their entry band. emergencya state of ongoing around different prefectures, but really, this is not only across asia, right? we are seeing the number of cases in the united states slowing, but still, topping

800,000. yvonne: the numbers are still quite alarming but we just heard from president trump in that press briefing saying the number of new virus cases in the u.s. keeps declining and if there is some type of second wave for covid-19, it comes back to the u.s., it will not be as bad. u.s. cases are rising just around 3%. to put that in perspective, that is still below around the 5% average over the past week. new york, the center of the outbreak in the u.s., reported an additional 500 -- 5526 cases but they also saw the fewest deaths in a day since early april. andrew cuomo saying downstate new york now on the curve. he is working with states like connecticut and new jersey to build a tracing to track the virus's spread. california also coming up with a similar strategy, with washington and oregon. we heard from the who as well. they have also warned against

people protesting across the country. these gatherings calling for states to lift their lockdowns. these types of gatherings will not help. it will only fuel the outbreak and he says governments need to win the trust from their citizens. he said he is hoping the u.s. will reconsider the freeze on its financing. shery: yvonne man, thank you. now, with the house poised to pass new stimulus on thursday, the speaker is looking ahead. nancy pelosi told bloomberg a major package of aid for state and local governments will be in the next round of legislation. now, we will be able to in a bipartisan way to pass the legislation in the senate. nothing extraordinary about how we will vote. pretty standard. but we will take a recorded vote. the senate, they had unanimous consent. to beds a few senators

there. 430 members now, and we will need to have a quorum and a majority to get it passed, but we well. >> does this take care of the rescue part? you talked about rescue versus recovery. talk specifically about state assistance. do you regard that as part of rescue or recovery, and what are the prospects of getting that done? speaker pelosi: first, emergency. that is what we did in rescue bills that we passed in march in a strong, bipartisan way. we started with testing, testing, testing on march 5. the administration has still not fully implemented it. after this bill, hopefully, they will. so that was part of recovery. and then we went into mitigation to mitigate the damage to the economy with these initiatives to protect our small businesses, to provide more assistance in terms of health care and the rest, and now, we have to go

further into mitigation to help state and local. it means the health care worker, the police and fire, the first responders, the emergency , the teachers in our schools, the transportation workers. who get essential workers to work. again, it is about the people, and these people are risking their lives to help save other lives, and now, they are losing their job. it is very essential that for our heroes, i call it our heroes act, that we have this assistance to state, county, local government, and to do so in a very significant way, to recognize the lost revenue they have from a stream of revenue because of the economy, and makedly, the outlays they to address the coronavirus. haidi: that was nancy pelosi

speaking to us a little bit earlier. forher big interview ahead us, singapore's minister for trade and industry joins us exclusively in the next hour. how they are tackling the virus after it had initial success in containing the spread, now battling the situation in dormitories, one of the topics that will be addressed. this is bloomberg. ♪

shery: the european commission is floating a $2 trillion recovery plan as leaders prepare to meet by conference call later thursday. the ecb has also taken steps, saying it will accept some junk rated debt as collateral for loans to banks. senior markets editor and bloomberg opinion columnists john authers joins us now. great to have you on the line. we saw the euro under continued

pressure after slipping to the weakest in about two weeks. why the pessimism over this package? think the more music we have heard, the more politicians have talked about it, the more it has become clear that it is not going to happen at least without things getting a lot worse first. normally, this is the way the european union generally works out things is it has a fairly loud difference in public and slowly worked its way towards some kind of a compromise that can work. there is no sign at the moment ,hat the countries of the north particularly germany and the netherlands, are going to be comfortable coming up with bonds that will help bailout to people in the south. become very has unpleasant and distasteful. there was a loss of a minor

diplomatic incident. saying any such money going into it would be snapped up by the mafia in italy. it feels very difficult at this point to feel how we are going to cross this bridge by tomorrow's teleconference. it just does not seem like it will happen. in that case, is the kind of roadmap to recovery broad and nonspecific as it is really setting up the region for a chaos and probably worse than expected downturn and slower than expected recovery if, you know, these natural chasms between the various nations continue to play out? to say this, particularly as i am saying it in a british accent, but i was

not in favor of my country leaving the e.u. i am afraid that it is probably a realistic prognosis to be that negative. basically, there are deep contradictions at the heart of the e.u., and it is very difficult indeed to get people to go along with others. that was obviously true when it came to the issue of death after the great financial crisis when there was the belief that, to some extent, this was a fault of the countries on the mediterranean, on the southern edge. this time around, it deemed possible a few weeks ago that this was a response to what you would call a natural disaster which might have changed things. it is not just a widening of

haveds, but you also weakening of bancshares, which shows a lack of confidence, and against all that, the market is not creating the pressure that would be needed to really make this happen because italy and spain are still able to get big bond issues away. that is what happened today to the surprise of many, that there is still enough excitement, enough flyers for bond issues from the most affected countries, that this helps get germany, get them off the hook. shery: you have the ecb saying they will accept some junk rated debt. what will this mean for countries like italy? john: it is helpful at the margin had i do not think that is the center of the issue for italy. is plainly thinking correctly that in the markets --

the fed is actually buying high-yield debt under certain circumstances and it will be necessary for the ecb to do so or otherwise there will be a fax that take capital flows further away from -- further away from europe. to the extentelps that it stops some perverse flow to the u.s., but italy's problem is that it has a particularly deep public deficit, and that it has just been particularly grievously affected by the coronavirus, and the businesses that have been most affected probably are not even big enough to have issued junk bonds, so i do not think it does any harm, but it is not the kind of -- what italy needs is a way to be able to borrow an awful lot more

at the national level than is currently feasible for it to do and it needs europe to help it. it looks unlikely that that will happen. thank you so much for joining us. john authers, our senior editor and bloomberg -- ♪

haidi: have that tentative rebound when it comes to u.s. stocks overnight. this selloff in oil starts to abate somewhat. let's take a look at the set up in asia. sophie kamaruddin in hong kong. what are you seeing? sophie: we are seeing oil continue to gain ground, recovering from the 21 year low we saw for wti for a month and we are seeing potentially cautious set up for asian markets today after asian stocks snapped a two day decline on wednesday. nikkei futures in singapore gaining ground, up about .9%, while the yen is holding steady. in wellington, kiwi stocks

adding nearly 2%, and of course, we will be waiting on more earnings today along with digesting korea's gdp data that came out earlier this hour. we had first quarter gdp at the most since 2008. keeping an eye on asian shipping stocks. they have benefited from the global hunt for crude storage, which has investors betting on an increased demand for takers and other marine fuel storage. jumping into the terminal, the capacity surging to a high, surging to a 2016 high. the market is anticipating what the industry called tank tops, when there is no more room to store oil, which could mean crude prices around the world could move towards zero or even go negative, and a research firm which uses satellite data, they expect storage will run out in late may or early june, shery. shery: historic collapse in oil we have seen has the iea

director dubbing this black april. he told us he sees more downward pressure on prices if urgent measures are not taken now. may well go in the history of oil industry as the black -- i think that is what we are seeing now. opportunitiesome that we can look into in order to address the problem. one of them is opec-plus countries. i think it may be a good idea that those countries who made the announcement that they are going to cut production may well reduce their production as soon as possible without waiting for the first of may, and they may even consider further cuts to what they have announced. this may be one option we have in front of us.

thater option could be some countries, we have suggested to buy oil to put in their reserves. u.s.,ioned to you, the for example, china, other countries, and this morning, i woke up with the good news that the australian government has decided to take advantage of the record low oil prices to build .p oil stock reserves and this may be another option to put it on the table, but the first one is those countries cut the production now, without waiting. has a certainnt style. heitically, domestically, has a huge representation and support from the states that make up energy america.

what, for you, is the most effective plan or program or policy that president can generate right now to help support the price of oil? a dialogueink between producer is is of critical importance. today, it is very, very important. all the the interest of producers, but also consumers and the global economy. the united states as well as other countries come together. to look at different options they have on the table. no country can solve this problem alone now when you look at the scale of the problem. saudi arabia, russia, and

oil-producing countries need to make efforts so that we are out wethe -- with the minimum have for our global economy. a -$40 forat we saw price of oil, is there no downward limit anymore? could we see -$100? could we see much more negative prices in the coming months? fatih: if no furniture measures or policies are put in place, such as some of the countries are cutting their production earlier than announced or the others have not joined them, if the other consuming countries do not follow the footsteps of australia, u.s. and others put oil in the reserves they have, we may well see further downward pressure on the prices. in the absence of policies,

until june, we may have difficult weeks and months to come, but hopefully, gradually, getting better. haidi: that was the international energy agency director speaking to us earlier. we have breaking news when it comes to earnings out of sk hynix, first quarter earnings out from the south korean chipmaker. it is a pretty ugly rent. sk hynix reporting operating profit of 800.3 billion won, a contraction of 41% year on year. although still better than expectations. the estimate was 487 billion won, and we are getting that first quarter net of about 450 41%.on won of about first-order sales coming in at 7.2 trillion won, up by 6.3% year on year and slightly better than expectations as well. we had been looking at

potentially a beat when it comes to consensus estimates, when it comes to operating profit. we are getting that first sales as well. we had that inference from the numbers reported out of samsung earlier as well. this of course comes on the back of the demise of the south korean economy, that contraction in gdp falling the most since 2008, but a little bit of a slight beat, albeit above low excitation threat sk hynix coming giving expectations that the chip recovery may continue. demand-side issues will be soft for some monster, according to our next guest. guy caruso is a former head of energy at ministration, a senior advisor at the center for strategic and international studies in washington. what would it take to see a real turnaround? you look at the market and price action overnight, and it feels like fatigue setting in after the wild levels of volatility that we had for the may contract

and going into the june contract. what kind of a sizable shift would you need to see on the demand-side for things to really turnaround for the oil market? guy: thank you. as your gdp numbers that were just announced are showing, economic activity is significantly off, beginning in the late first quarter, and certainly continuing into april, off 25 million barrels per day from global world demand of about 100. that will take a long time to recover, and by long time, i mean 30 days to 90 days, and therefore, the cuts that have already been announced and that are occurring in other countries like russia are not going to be enough. than cuts starting sooner may. it is an important point, but

unfortunately, much of that oil is already on the water for production in the first quarter. going into april. many countries now, it is filling up tankers. storage is nearly full, and therefore, the potential for further weakening of futures prices that are now for delivery in june is significant, and it is even possible we could see negative numbers again for june contract deliveries. it is going to take time. it is going to take recoveries of the economy, and that is directly related to success with respect to opening up the economy, so i am afraid i am impact onout both the price and how long it is going to take for the demand-side to it will need to be

restricted even further either through actions by governments market, russia, and also forces, which are driving u.s. capital expenditures significantly down, 40 percent, 50% already, and likely to go more. we are going to see a significant restructuring in the bankruptcies in smaller and medium-sized companies in the u.s. over the next 30 days to 60 days. and of course, oil is always -- political overlay. we are getting breaking lines from president trump, saying that he is watching iran very closely. this comes amidst the latest round of saber rattling, if you will. president trump telling the u.s. .avy any iranian gunboats

opec-plus may need to do more. needs tong u.s. shale do more on the supply side to make a dent on this market. do they have a point? it does not matter how much opec does, u.s. shale really needs to come in and cut production. is that now inevitable? a lot of people are saying what we are seeing now is the start of the end, and the end of the u.s. shale revolution. shale isink u.s. already starting to come down. a number of wells have been shut shot in u.s. wells will accelerate. one of the leading forecasters said yesterday that we could see as much as 2 million barrels per day cut in u.s. production by the end of the year, which would make it quite significant, nearly as much as the saudi's, and the russians have already

agreed to do so. capacity isu.s. already happening and will accelerate as long as the market stays weak, which i anticipate it will. anything in the under $25 is just untenable for many of the as i said,cers, and we are going to see, in addition to reductions in capital expenditures, we are going to see bankruptcies, because there is a large debt requirements for these smaller and medium-sized companies, and they do not have the cash flow to repay that debt. have: we still seem to saudi stockpiles heading for the u.s., shipped in the last month or so, and president trump now thinking perhaps of putting sanctions or tariffs on those supplies. does that make sense? guy: well, i think there has been a call for that by some

representatives of oil producers, but i think tariffs or quotas on incoming oil would be a policy mistake oil, it ist type of needed for u.s. companies, and buy crude andally effectively produce the types of products needed, so i think, a it is the wrong move, and it would be much better to do something to stimulate demand, and if needed, perhaps a tax credit of some type by the u.s. treasury for companies, but protecting these measures i think will not work, and they will harm u.s. refiners by causing their prices to cross to them to go up and they will not be able to get the amount of -- that they need. i think it is wrong on both

accounts. guy caruso, thank you so much. former head of the energy information administration. we will have more on the outlook for commodities ahead. we will speak exclusively to take line in the next -- jay k lein as some investors see gold hitting a record. this is bloomberg. ♪ rg. ♪

karina: this is "daybreak asia." i am karina mitchell with the first word headlines. the u.s. and china continue to trade barbs about the coronavirus, each saying the other should have done better. washington said beijing covered up the extent of the infections. now, washington says china and the world health organization have let the rest of the world down. has not sharedl the virus sample from inside of china with the outside world, making it impossible to track the disease's evolution. >> i am making a legal determination on china's adherence to the ihr, but the world health organizations regulatory arm clearly failed during this pandemic. karina: new york state reported under 500 new virus best, its lowest daily total since the start of the month.

that pushes the number of fatalities passed 15,000 amid reports people started dying in the u.s. weeks earlier than thought. in deaths in california february have now been connected with the virus. texas recorded an 18% jump in new virus cases and deaths even as it prepares to reopen next week. the virus cases in singapore have topped 10,000 as infections among migrant workers in dormitories continues to surge. government says their movement will now be curtailed. cruise ships are being considered as temporary accommodation for people who recovered from covid-19 and now test negative. 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. haidi. the u.s. treasury secretary says he expects most of the economy will restart by

the end of august, but after the disruption, to millions of lives, and the far-reaching economic damage, what will the new normal look like when it comes to business? from get some insights now our guest. great to have you. there's been a lot of conversation around what the return to normal looks like on the other side of this pandemic, and no doubt, a lot of businesses and managers are doing some soul-searching on what themes will carry through from our old life and what becomes the new normal. what are you hearing from your clients? to beit's going significant shifts. clearly, this is an opportunity to reset and rethink, and so, you know, there are going to be some very obvious things with look atrtunity to business models. doing some of the things that perhaps we should have been doing now, but how do we know more about business online, how

do we create much more direct channels to customers? -- through other retailers and other platforms. toy would see a desire to go -- much more direct to customer. we see things like supply chains. that play out. the quality and the resilience of the supply chains. we are not going to go back to what we were. we are going to see quite significant shifts and fundamental changes. haidi: we have already seen major market dislocations as well. what has happened to oil, the implications for climate change. it is ironic. a lot of people were saying prior to covid-19, governments

and policymakers saying it is just too disruptive to transition to a greener economy because of the job losses, because of the impact on these economic way of life that we have, and yet, here we are. what are the chances that businesses will be making these hard decisions and hard investments given that we are heading into most likely a period of a global downturn? headingthink we are towards a global downturn. how significant that is is the question. think you will see the fact that expectations in an environment around stakeholders i think will be heightened by this. people have seen this as, you know, partly a result of that not being considered to the extent that it should be. i do think people will start to reinvent the business model and take action on things like

theate change and some of greater societal expectations. i certainly believe that will be a key consideration going forward. shery: how much will it cost to do all of this rethinking, remodeling, and shifting of their business --of their way of doing business? will vary by different industries. high assets, high contact service, but some of them may be hotels, think, like airlines, they will be challenged here there are things they can do to give comfort and security to people. they will be challenged given the fact that there model is physical, high contact. you will see a number of organizations will be able to shift into, you know, much more

digital platforms. retail shifting. you start to see education becoming more online. largely a high touch, go to the office type organization. in the space of a week, we were able to shift almost 300,000 people to be online with very little impact on the way that business operated. so you are seeing that people can actually make that shift depending on the nature of their industry to be much more, you know, online, and for a lot of those, reducing travel, reducing office worker, reducing a range of the physical aspects. there will be impacts on things like climate and some of the other societal measures, so you know, the two can be done. depends on the nature of the industry. it can be done at a reasonable cost. john, on digitization,

how successful have companies bent on leveraging new technology so far? john: i think they have not been as successful as they should have been. i think this does create that massive impetus to say a lot of the things like, you know, creating alternative digital channels -- i like to use the term -- a lot of people have been doing digital. tinkering at the edges. neverk the old cliche of waste a crisis, i think a lot of organizations are saying, no, there is no reason why we should not be pushing forward unless we have cloud technologies, we have ai, and these allow us to create these alternative channels. i think you will see people push very strongly on that now. shery: john meacock, thank you very much, global head of strategy. this is bloomberg. ♪ ♪

shery: let's get a quick check of the latest business flash headlines. boeing is paring back its executive council and giving it cfo more control over manufacturing and supply chain. the shakeup is the first major move since dave calhoun took over as ceo in january. the changes at the top, as boeing plans to cut thousands of production jobs. e its dailyto halv

cash burn. it plans to reduce spending to $50 million a day by the end of june after first quarterly loss since 2012. delta has parked 650 planes, cut capacity by 85%, frozen hiring, and lowered executive pay. virgin australia's failure indicates the world's weakest carriers have little time to secure support as the coronavirus wrecks the aviation business. the airline is the biggest victim so far as a mere halt in revenue overwhelmed in less than two months. coming up on the next hour of "daybreak asia," we are joined by markets coanchor haslinda amin for an interview with singapore's minister. we also have the market open upon us, next. this is bloomberg. ♪

shery: good evening from new york, i'm shery ahn. haidi: and i'm haidi stroud-watts in sydney. asian major markets have just open for trade. welcome to "bloomberg daybreak: asia." follow u.s. stocks tech --treasury secretary steve mnuchin sees a restart happening by the end of august. oil recovers from a 21 year low after two days of tragic selling with the swelling global gut

continues to -- glut continues to loom over the market. topcases in singapore 10,000. were joined by the trade industry minister. shery: let's get you started with a quick check on how markets are trading as moment. the nikkei gaining ground along with the topics, up .5% -- topix . the japanese yen holding steady after strengthening for the first time in three days against the u.s. dollar. we have seen the boj saying they will shorten their two-day policy meeting to one day as they hold that meeting next week on april 27. that will in around noon. we have seen some media reports inside japan at the boj was calling for additional monetary easing. that meeting has been shortened to one day instead of two days on apple 27.

take a look at what the kospi is doing right now. they had seen a session of gains, now rising for a second consecutive day. when theng at a time first quarter gdp for south korea, quarter on quarter came at a contraction of 1.4%, the biggest drop since 2008. we are seeing gains for sk hynix, sales as well as operating profit. they said that despite the volatility they saw on the virus , we seen data center customers ask for more capacity as they cope with traffic -- growingglowing teleworking through the pandemic. they also beat estimates earlier this month. haidi: we're seeing that rebound extending to australia and new

zealand markets after we saw u.s. stocks recover from that two day slide in oil as well. snapping three days of losses when it comes to trading in australia and new zealand, staying outside of .5% in sydney with pretty much every sector trading in the green, led by utilities. materials also doing well, and watching all producers in particular, given that we had a recovery after the volatility we've seen in the oil price in the previous session. we are seeing some weakness when it comes to the aussie dollar. services and manufacturing weighing on the outlook as it looks like the shutdown will continue in this part of the world. evolution announcing its and watchingmbers, aluminum giant alcoa after it

cut cost on capacity. evolution in line with its third quarter update. we will get more details on that energy,and in terms of santos posting a drop in first-quarter sales and realized oil prices as well. shery: the u.s. and china continue to trade barbs about the coronavirus, each saying the other should done better. washington initially said beijing had covered up the extent of the infection, prompting china to say the u.s. attempts to shift attention from its own early reaction preview washington says china and the world health organization have let the rest of the world down. new york state reported almost 500 new virus debts, as low a study total since the start of the month, pushing the number of for talley past 50,000 amid

reports people started dying in the u.s. a week earlier than thought. in deaths in california february have now been connected to the virus. texas reported in 18% jump in deaths even as it appeared -- repairs to reopen next week. the european commission is floating an economic recorder -- covered plan ahead of the leader summit. the video call will discuss the coronavirus turmoil as the specter of the worst recession in living memory. to shield the euro zone's weakest economy. virus cases in singapore have topped 10,000 as infections among grunt workers continues to surge. most of the new nasa government says their movement will now be curtailed. temporary accommodations are

being considered for people who have recovered from covid-19. we will have that exclusive conversation with the evolution mining executive who will be with us. coming up next, haslinda amin has an exclusive interview with singapore's trade and industry minister. this is bloomberg. ♪

shery: welcome back. singapore may suffer a deeper recession after extending attempt -- a time delay of its partial government lockdown. the government is keeping so-called circuit brick measures until june 1.

let's bring in chun sing chan for an exclusive interview. good to have you with us, good morning. with the expanded lockdown and gdp contracting even more than the projected contraction of 1%-4%. sorry, i lost you. with the extended lockdown, do you see singapore's gdp contracting even more than the projected contraction of 1%-4%? likely.that is very for many reasons, first, i think has worldwide, the pandemic spread much further and wider than what many people had initially expected.

second, i think many of the domestic supply chains within the respected economics have been disrupted. third, i think that connectivity among the economies has also been disrupted, and that will capacity and the long-term capability of the respective countries. that it will be a more serious problem that many anticipated just a month ago. haslinda: can you quantify that for us? citigroup came out and said the contraction could be 8.5%. >> i'm sorry, i lost you again. can you repeat your question? haslinda: could the contraction be as bad as 8.5%, as projected by citi?

>> i think at this point in time, it's not so useful to look at a precise number, but i think we should focus on making sure the domestic capacities are maintained and we continue to develop long-term capabilities. in the short-term, i think we must make sure we can hold on to the jobs that are workers have and continue to have cash flow and credit lines. can protect our short-term capability and capacity and that will aid us in the subsequent recovery. haslinda: minister, as we have been reporting, most of the cases are found -- singapore has almost a million who are confined to their own spaces. what impact might that have on the various industries like the

shipyards, manufacturing, construction? how much impact will that have? at this point in time, cases in singapore can be divided into two groups. one for the domestic population, our numbers are holding steady at about 50 per day, but we are not complacent because we know how this virus can compromise us. at the same time we are doing aggressive testing for our migrant worker population. we know that for many of the young, healthy, male migrant workers, even if they're symptomatic, they might be carriers of the virus. we are being extremely careful to make sure we provide them the best health care possible, and we are offering free testing to even those who are not symptomatic. many of the -- many are in

construction or even offshore and at the current moment they are staying in dormitories to make sure they are healthy before we resume work. economy,est of the business continues to do what we need to do we hope that in a month's time we will be able to reopen the economy with much more testing for the entire population, and at the same time taking additional safety measures. haslinda: how bad will it be for construction and shipyards, minister? >> i think there will be some delays to the projects, but overall, once the crisis subsides, we hope to regain momentum. haslinda: do you expect government policy toward foreign

workers to change prominently as a result of what we are seeing in this pandemic? all this time we are constantly root -- reviewing our policy to make sure we take care of the migrant workers. over the last few years we have made many improvements. in the coming years i will expect even more improvements. we will do our best to make sure we take care of them. in terms of health and security and also salary, mental health and so forth. we owe them a debt of gratitude so we will make sure we take as good as we take care of our fellow singaporeans. haslinda: i want to take a look at the extended lockdown, now extended for eight weeks. what do you hope to achieve by june 1? are you looking at containment

or eradication? what is the goal at the end of this extended lockdown? >> there are a few indicators were looking at toward the end of the lockdown. first, our fertility rates continue to remain very low. is told the community spread brought down to the low teens. number three, the situation in the migrant workers dormitory are under control and the quality of care we should provide for them. haslinda: are you optimistic that the lockdown can be lifted by june 1? some say there has been a lot of flip-flopping in terms of government policies and there is a lack of consistent strategy. your thoughts on that? we are never complacent. we are always reminded when we are doing well that we should never be complacent, and when

the chips are down, we should never be discouraged, and highly focused on the issue at hand. we will make sure we take care of the migrant workers. and that our economy continues to function and are workers jobs are maintained. we are highly focused to make sure we do what is necessary and what is right or our workers and our businesses. haslinda: is it fair to say that will beconfident june 1 a go in terms of lifting the lockdown? >> i think it is too early to say. we will continue to take calibrated measures as we have done over the entire period. we will make sure we put in place the measures to take care of the situation hand and at this point in time, while the

numbers are coming down, we are also making sure that we have background checks to make sure we are not blindsided by other hidden pieces -- cases in the community. is not something that easy to handle, because the nature of the virus is still not fully understood and if we are complacent, we might call blindsided. economies that have overcome the first wave of infection may have a second or even third wave of infection if they are not careful. we want to give ourselves the assurance that our workers will be well taken care of regardless of their background. other than the pandemic we are also seeing a stunning slump in oil prices. important oilt

hubs in the world, we're seeing for instance some companies filing for protection. are you expecting more companies to do so, to be in distress? therehink the situation is quite unique to it. we are investigating what is happening behind the scenes. it would be premature for us to make any comment at this point, but i don't think what is happening will affect the water markets because it is just one of the players in the wider market in singapore. conceivable that the government but may step in and intervene and bailout companies that are in distress? >> we have a policy to continue to help companies in singapore,

not just for teaching companies but we have an overall package to make sure our companies big and small continue to have the cash flow necessary to sustain them. this is part of our overall plan to make sure we have the capacity and capability of our be one ofd we will the first recover if need be. there is an economy wide help package that we have put in place. concerned thatou the reputation may be affected because of this? how confident are you? we always have things we have to deal with. singapore as an oil and trading hub, it is all right at this point in time and

ifl continue to be all right we take the necessary measures to put in place a forward-looking plan to help our companies. haslinda: minister, i want to take a look at the global supply chain. we have economies in the region like korea increasingly opening up the economy at a time when singapore has extended its lockdown. not be the hindrance in the regional supply chain, given that it is unlikely to be able to play its role in the regional manufacturing sector? concerned with the connectivity of the supply chain and that's why over the , we wantor two weeks to make sure the regional supply chains continued to flow.

that our airports and seaports continue to function for the regional economy. i think many people will be able to see who they want to do business with going forward. in this crisis, there are both challenges and opportunities for all. haslinda: one final question, singapore was talking about possibly holding an election with korea successfully, holding an election amid the pandemic. possible that singapore will also hold its election this year? is now entirely focused on tackling the crisis. it will be the priority of the prime minister as to when we will hold the election. our focus is to make sure the health of our people, including our migrant worker community, is

take -- community is taken care of and that our economy will be able to recover. at the same time we are also focused on the long-term capabilities of our country. haslinda: minister, thank you so much for your insight today, minister chun sing chan. stay with us, plenty more to come. this is bloomberg. ♪

haidi: "bloomberg daybreak: asia." "bloomberg daybreak: asia." ins is shery: i'm shery ahn new york. u.s. secretary of state mike pompeo was calling for china to be more transparent about the coronavirus as the world continues to battle the pandemic. it comes amid mounting frustration in europe over beijing's handling of the outbreak. tom mackenzie has the story. is this just a further escalation?

latest withst the the trump administration taking china to task over what it calls a lack of transparency. >> the ccp still has not share the virus samples from inside of china with the outside world, making it impossible to track the disease's evolution. making illegal determination here today that the world health organizations regulatory arm clearly failed during this pandemic. tom: mike pompeo saying china covered up how dangerous the .isease is tos part of a continued push

shift the blame to china. the administration comes under fire for how it handled the outbreak in the u.s.. and warning of the damaging risk mounting anger over what many people refer to as hardline propaganda as well as price gouging by some chinese clients. and some investment screening in -- the foreign secretary brussels is also looking at curbing the supply chain, whether medical supplies or others. what steps is china taking to tackle any domestic

backlash from the virus? as were watching the turnaround between crisis management to now pitching this as almost a national success, right? tom: absolutely, you touch on it earlier. china setting up a new scheme to safeguard security. officials said they would crackdown on activities that endanger state security. as the economy contracts affecting people who are unemployed. shery: tom mackenzie in beijing, thank you very much for that privy coming up next, speak with one of australia's biggest coal , jake klein joins us exclusively. plus another big interview in

the next hour. we speak with the founder and ceo of auto x. this is bloomberg. ♪

shery: we have an alert on the bloomberg, were getting japan pmi numbers. the composite number company and a 27.8, this is again below that 50 mark, and after seeing the weakest levels since 2011. again, a further contraction below that 50 threshold for the composite number. when it comes to the manufacturing pmi, coming in at 43.7, which is also lower than 44.8 in the previous month of march. we have seen so many months for the manufacturing pmi below 50.

this would be the 15th consecutive month below that 50 level. 22.8, again of slowdown from the previous month, and the third month that were seeing it , that 50t 50 level threshold. let's turn to sophie cameroon for a check of the markets. sophie: stocks in tokyo in sydney snapping a three-day decline in the kospi gaining ground after its results and shipping stocks among the , swiss stocks are mixed, beating estimates with softer figures. the bank of career -- the bank of korea, falling south korea's

gdp report, the deepest contraction since 2008. jgb, little price action and traders not to enthusiastic over the prospect of more b of j easing. the yen stuck in a range ahead of jobless claims due thursday. soft pmi numbers, and the hong kong dollar still near the been, in of its trading the carry trade an attempt to narrow the gap. we're watching for u.s. rates to fall below 1%, given that were seeing a wider gap between markets. aent holding about $20 barrel, wti extending gains. bullion under pressure after the overnight events that pushed stock prices above $1700 an ounce, continuing to lag, those

gold futures which are softer this morning after the best in nearly two weeks. will keep the focus on precious -- precious metals. klein, great to have you on bloomberg. with risk were seeing appetite across the world as we continue to do with the pandemic issues, i'm wondering player outlook is for gold, hovering at record highs. where do you see this going and what do you plan to do with the inflows? >> good morning, i think you would have to say that the outlook for gold is positive. in periods ofwell uncertainty, and we certainly have uncertain times at the moment. if the fiscal programs that all

the governments are properly injecting into their economies and printing money, the one currency you cannot print is is 1700 u.s.t dollars today. we were pleased to hear that bank of america forecasting $3000 an ounce and there is a lot of positive sentiment around goal. that said, from an evolution company perspective, we continue to be focused on margins and profitability. shery: so what will you do with all? ? of that money flowing in we you pay down debts,? ? look at mna what are your plans >> jake: we will do everything through the lens we always have, which is how to create value for our shareholders. late last year we acquired a mine in canada that we see is a very deep value opportunity, a turnaround opportunity that will ultimately become a very

important part of the value-based evolution an important part of our portfolio. we are a strong dividend payer, we pay half of our cash flow to shareholders. our last dividend payment in march was over 100 million australian dollars to shareholders. flowe making lots of cash and we will husband this and make sure we take care of it. if it cannot invested appropriately to improve the quality of our portfolio, we will give it back to shareholders. on your operations in canada, has evolution faced any impact because of the pandemic? wee: we were fortunate that signed a deal on november 26, we've had access to the site for over three months until we acquired ownership. we have a couple of representatives from evolution on site at the moment.

we have put in a new management team in place and they have really stepped up to the challenge and started to already make changes that we see necessary for the transformation of this asset. couldis unusual that we not be at the site on the day we , without media or capacity to do virtual conferencing, technology is allowing us to be there virtually and the team on site is doing very well at the moment. shery: let's talk about that positive sentiment when it comes to gold. we're seeing demand for gold coins and bars. does that translate into gold miners and trying to ramp up production? that has been unfortunately a mistake of the past that the industry has made,

that as the gold price has gone volumehave mind for rather than value in the margins. evolution, right from when we were formed in late 2011 has consistently said that we will not be focused on volume, but we will focus on margin and profitability and quality of portfolio. operate in awe very cyclical sector. we are in a favorable phase, hopefully it will become even more favorable, but from a business perspective, we are running it so that we can be more profitable at good and make more money, but if the bad times to combat, we will still prosper through that cycle. shery: does that include hedging and trying to lock in these higher prices? jake: we have done a little bit of hedging, mainly to protect our capital investments. we have done a small amount of

hedging at the asset we recently acquired. think it is prudent just to ensure almost as insurance that each site is able to pay for its capital and not be cash and be cash generative. we use it as a protection mechanism, but we are largely unhedged and exposed to the outside. shery: always great having you with us, jake klein, evolution mining executive chairman. working at home spurs demands for cloud services and boost server chip prices. this is bloomberg. ♪

haidi: we just getting the latest coronavirus case numbers out of china, reporting 10 additional coronavirus cases on april 22. six of those team cases are imported cases. no coronavirus deaths reported for april 22 there, but 27 new asymptomatic coronavirus cases were reported for april 22. let's get the first word headlines with karina mitchell. world outlook

theing more than twice forecast at the start of april. that's a decline of three between dollars in global income . tensions are rising again between the u.s. and iran. -- hisnt trump said he's quote you down or destroyed warning came in a tweet. tehran responded by telling washington to get out of the middle east. and once again, asia's richest his conglomerate surging. his fortune swelled by $4.7 million on wednesday.

he is $3 million ahead of jack ma. afteris planning a patch weaknesses were found that may have let hackers exploit ipads and iphones. saying it found two areas of vulnerability that triggered a data update this month. could take place in north america, japan, and europe. 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. shery: sk hynix is writing the surge in traffic globally, boasting a bring profits far above estimates. revenue capacity to meet surging demand, and more people are staying home through the coronavirus and dimming. stephen engle is looking at the

numbers. really following the beat of rival samsung as well, what stands out today? stephen: allll -- giving stronger-than-expected numbers, beating the consensus estimates and giving a fairly good outlook. -- more about memory chip player than samsung. what is really happening, the trend is major cloud operators like amazon, microsoft and others are expanding their data center spot rapidly. invest 28id it will billion dollars in cloud services over the next three years. ast has fueled the rebound well as memory chip and stock prices over the last couple of months. first quarter operating profit handily beat estimates,

800,000,000,001 against 487 revenue rising 6%. the ram selling prices up 3% quarter over quarter. basically the slowdown of mobile as demand was offset by the server growth. it has sunk a little bit on weakening consumer demand. and despite the virus volatility sales did rise. what about guidance, is there much clarity in the memory isce, given how guidance lacking for most companies with regard to what expect from the pandemic? thing going for

sk hynix is that the chip cycle is on an upswing. but again, toward the end of the year, there is lots of uncertainty with sk hynix saying in its earning statement, unprecedented uncertainty will affect the market forecast with any prolonged pandemic to increase demand volatility. it expects output disruption if the virus situation globally continues. however, it will maintain its previously announced plan as of now. stephen engle they are with the latest on sk hynix. china's mobile carriers are jockeying for position in a post-virus future with plans for 5g rollout front and center. this is bloomberg. ♪

>> there is not going to be any return to the old normal, so this is really an opportunity for us to reimagine but the new normal is going to be.

haidi: a quick check of the latest business flash headlines for you. zoom, the company that has been making so many headlines reported a 50% surgeon daily use as lockdowns and work from home as seen its popularity soar. usersisen to 300 million from 200 million in the past week alone. shares have more than doubled. before the coronavirus, just 10 million people, mainly office workers, used the service. vodafone group is accelerating pace to shorten liquidity during the coronavirus crisis. the group's london headquarters agreed to pay the funds due in september but bringing the payment forward because of the pandemic. the government is demanding around $7 billion from vodafone in overdue fees.

-- arrested hong kong pleading for help to save his newspaper. advertising revenue has slumped to almost nothing is political retaliation and the coronavirus rise. among 15 prominent activist who were arrested over the weekend. shery: let's turn to telecom companies in china. china unified net profit fell in the first quarter. like china mobile come the wireless carrier solid subscriber numbers fall by more than 7 million. however, china unicom sees growth opportunities in 5g. nicole, great to have you with us. despite the pressure reselling china unicom, seeing overall

operators pretty resilient, especially during this covid-19 pandemic. [indiscernible] as well as 5g being front and , it's for the project going to bring in a lot of investment and government , especially after covid-19. mobilewe continue to see subscriber growth continuing to fall. that will continue to have a because some

are not think -- not able to continue the services. overallalso see subscriber numbers following because of the lockdown. and for recovery on the retail level. what do you see and quickeruicker to rebound? >> people are coming back to work, that's a very good sign, and the lockdowns will continue to have impact on the consumer spending. there are still gaps between consumer spending and people coming back to work.

there's other rebound as well with online channels. the infrastructure online is actually helping us sustain some of the growth. how much do you see the economic slowdown, rising unemployment, and overall path of restructuring of the economy, particularly on the trade front, how much does that potentially impact telecom? we worry about the rising and facing so many challenges. a lot of companies are going out of business.

and 30% of unemployment is in manufacturing. of them are facing sharp decreases in orders. business spending will be taken with future earnings. with the new technology uptick services, and 5g [indiscernible] to spend more .ather than less shery: how is beijing's commitment to 5g and new technology going to be affected after this pandemic? believe,ually

just defines they what will be included in the so fall -- so-called new infrastructure projects. including 5g be front and center and ai infrastructure. also a lot of other infrastructure projects will be like transportation and smart energy. especially after covid-19 in. showing ongoing support for the economy. do you see greater

collaboration to cut costs in the challenging operating environment? this will be an ongoing theme, especially between smaller operators like telecom and unicom. collaborations is to -- they're going to achieve more ,r less the same numbers similar to the big operators in china by the end of 2020. they can use it to prolong other

parts of the business. it's important to increase the ,perational efficiency especially since 5g hasn't seen a billable return this year. it will affect the revenue contribution. nicole, thank you so much for joining us. let's look at how markets are trading around this part of the world. reboundeeing that caring through after u.s. stocks saw some relief. we will be getting more insight over the next hour with a senior fund manager. also a founder and ceo will be

with us a little bit later on. shery: our markets coverage continues as well is the trade of hong kong and shanghai. china open is next. this is bloomberg. ♪

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a.m. in beijing and singapore. i'm selina wang. rishaad: another trading day right here in hong kong. asian markets following american stocks higher. stephen mnuchin seeing a restart by the end of august.