tv Bloomberg Daybreak Australia Bloomberg May 4, 2020 6:00pm-7:00pm EDT
6:00 pm
♪ haidi: good morning. i'm haidi stroud-watts in sitting alongside shery ahn in new york. the coronavirus playing game sees it go to an all-time low. president trump raises the stakes, threatening a fresh round of tariffs on china. u.s. stocks staged a late rally as california prepares to reopen. oil is also rising, getting 44th consecutive day. there's a bleak picture emerging in australia. the virus fallout is hitting gdp
6:01 pm
by 10%, wiping $32 billion from the economy. shery: let's get you started with a quick check of how the markets are trading at the moment. we are seeing more gains for u.s. futures, up 1/10 of 1%. this extending those gains after the regular session so i late rally in new york on monday. it is another big earnings week. we have more than 160 s&p 500 companies reporting this week. higher by0 was led energy, tech and utilities. we did see pressure from u.s. airlines, that fell after warren buffett set after the weekend they have sold out. wti that the moment, we are seeing more upside which is now above the $21 a barrel. we are seeing five sessions of gains. the highest in more than two weeks. oklahoma, the key u.s.
6:02 pm
storage hub closing last week. trump's push to reopen state economies is clouding efforts to predict the potential toll from the coronavirus. he's revised up his death projection to 100,000 across the country, a significant he number than previously thought. emily wilkins is in washington. what is the latest we are seeing in terms of what the president is saying, what individual states are doing and thinking about in terms of this journey towards potentially reopening? emily: yes, we are seeing president trump go ahead and he seems to continuing to revise the number of potential deaths and potential cases. even so, we might see more than what he is saying. there was an internal -- that came out from the cdc that showed u.s. coronavirus outbreak
6:03 pm
could be accelerating throughout the month of june. by the time we get there, we could be seeing 2500 deaths per day, more than we are currently facing. things could be getting a lot worse from the u.s. the white house has said those projections are not consistent with their internal documents. shery: congress starting to negotiate on another round of stimulus measures. how much could we expect and how soon? emily: that is a great question. right now, the senate has come back today. this is the first time they have met in about six weeks. the house still is not back and we are not sure when they will be back. the fact they are not back this week suggest we probably are not going to be seeing any legislation on that at least for the next week, maybe the week after that as well. as far as what we can expect to see, democrats are looking to make this another big bill to get a lot of priorities in. making sure there is potential infrastructure, help for family.
6:04 pm
broadbent when you thing about kids home from school. many do not have internet access. they are thinking big picture with this one. republicans we have seen come out and say, hey, we need to start paying attention to the debt and the deficit. make sure we are not adding too much to that. there is a bit of a collision course there that congress is on , but certainly everyone is looking towards the next corona stimulus package as the main legislative goal for next month. shery: we have more u.s. officials sharpening their criticism of beijing. any idea at this point when we could see what president trump calls a conclusive report on the origins of the virus? emily: we don't know about that yet but that is something we are starting to care about. president trump has long talked about china and shifted the blame towards them on what we are seeing, questioning the government. so, this is something where
6:05 pm
trump is very much trying to show the u.s. in contrast china at this point. isthe same point, china trying to use their current status with the coronavirus, trying to emphasize how they are trying to help out other countries. trying to emphasize they are showing numbers, that paces have plateaued and potentially dropped. there's a lot of politics coming in here on the international stage, to how the u.s. and china are both responding to the coronavirus and to how the other country is responding to the coronavirus. emily, thank you for joining us. emily wilkins there with the latest on the virus in the u.s. let's get a check of the first word headlines with karina mitchell. karina: the u.s. treasury expect to issue about $3 trillion of marketable debt through june as barring expense to fund government stimulus for the coronavirus outbreak.
6:06 pm
the estimate is $3 trillion higher than announced in february when the treasury was expecting to pay down $66 billion. it says the increase is driven by expenditures to help people and businesses hurt by the pandemic. malaysia is inching back to normal with traffic flowing and trains running again after seven weeks of restrictions. indonesia reports its fewest tourism numbers for a decade. down 96%.hong kong hong kong is aiming to reopen movie theaters this week as restrictions ease. australia expects the coronavirus hit to reduce gdp by quarter,e current wiping the equivalent of $32 billion u.s. from the economy. the treasurer says indicators are going to be considerably worse before improving. retail and hospitality will be the hardest hit. the treasury warning it is a
6:07 pm
further sign australia is heading for his first recession since 1991. europe's hardest hit nations are certain to ease restrictions with small shops. social distancing measures remain in effect with commuters told to wear face masks. italy is coming back to normal with trains and buses running again after almost nine weeks of lockdown. restaurants and cafes can work again, although only in takeaway mode. 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. this is bloomberg. haidi? ahead, australia's economy won't start recovering until the december quarter. we will take a look at the challenges ahead. coming up next, joe tells us where he thinks he sees the opportunities in these global markets. this is bloomberg. ♪
6:10 pm
shery: u.s. stocks eked out again despite the ups and downs. our next guest sees a historic buying opportunity. joseph runs the new america premier equity fund at tcw and joins us on the line. great to have you with us. where are you finding value? because u.s. stocks are not necessarily cheap. joseph: good to be with you. the new america fund had a great year in 2019. we were up 40%, the market was up 30%. we entered 2020 with a lot of momentum and we felt as though the market was overvalued. we increased our cash position, and fortunately, we got the over unity we were hoping for -- the opportunity we were hoping for. i forcefully, if pandemic
6:11 pm
occurred. massively declined which gave us an opportunity to buy some stocks in high quality businesses. vew a lot a very surprised we' rallied. we've rallied because the market is looking at this terrible pandemic as a hurricane, as a one-time event and is looking into 2021 and anticipating earnings will come back in 2021 and that companies will be performing better a year from now. so, that is why we have had this rally that has occurred. from my perspective, i do not see us reaching the lows we reached in march. there was tremendous fear and panic going into those days. i just don't see that occurring again. there's lots of opportunity. we continue to find opportunity and recurring revenue businesses
6:12 pm
and medical testing businesses. those are the types of businesses that will be solid through a very turbulent and difficult time where demand patterns have fallen tremendously. certain critical products and critical industries will continue to perform well and earnings will continue to grow in those businesses will prosper. that is where the focus needs to be viewed shery: are there any types of companies you are avoiding then? joseph: we are. we've avoiding the cyclicals. we are avoiding the airlines. we are avoiding those businesses that do not generate free cash flow which goes against our strategy. we focus predominantly on predictive growth that generate cash flow. we are staying away from the hotels. we are staying away from discretionary products, retail, energy. all of those low return businesses that are consistently unpredictable and create problems for investors and portfolio managers.
6:13 pm
we consistently stay away from. i continue to believe those areas will be at risk if the virus comes back in the second half of this year. good businesses will continue to perform well despite the challenges we face from this virus. are there any sectors you continue to be meaningfully risk-free or extremely low risk? or are we in such an unprecedented environment at the moment that there is just risk associated everywhere? joseph: i think there is always risk. in you really cannot invest maturities if you are not prepared for a significant market decline to occur at any time. anything can happen at any time, but the focus i think always has to be on very easy to understand, simple distances that will always be in demand. medical testing businesses always intimate.
6:14 pm
hospital product business is always in demand. critical software businesses that sell critical products to large corporations, those businesses will continue to grow through this time. that is why the portfolio is always focused in those types of predictable businesses. that is why the portfolio has weathered this difficult decline quite well and has weathered other difficult decline quite well. those are really where the opportunities are. it is not enough to begin benefits -- businesses that will benefit from the pandemic. that will just provide you with transitory earnings growth. you have to find businesses that are growing now, getting stronger and going to be better into were three years time -- int two or three years time. haidi: what about businesses that are affected or can ride the wave has potential mid to longer-term changes in the way that people and businesses behave after this? joseph: i think you have to look
6:15 pm
at those businesses. one of those businesses is microsoft. microsoft continues to benefit from what you might call the at-home economy. productivity occurring at home. it looks like that will be a secular change. more people will be working from home than they did prior to this pandemic. productivity software, cloud technology and storage. all of the areas that microsoft is focused, those of the types of businesses that will benefit secularly.d that is the type of business that in this quarter of difficulty, where some of these other businesses that are the hot faang stocks -- google did not grow this quarter. apple barely grew this quarter. facebook went down 10% in terms of earnings growth. those are not impressive results. microsoft's result is a stream impressive and they will be in a great place. shery: we have already seen for
6:16 pm
the past year that the justice department and other arms of the u.s. government are looking into antitrust issues with these tech giants. given that the big are already getting bigger, post pandemic, will be see more moves to regulate them? joseph: i think that is possible. i think the bigger issue for psychology businesses is what happens with china. it is clear that the united states and the western world's orientation towards the country is going to change dramatically. the question is what will happen to semiconductor businesses? what will happen to hardware businesses? what will happen to other businesses that do business in china? country andthat the world's orientation is going to change once we get through this pandemic. so from our perspective, as an investor in businesses, we have
6:17 pm
to be very cautious about companies that are doing business in china and have large exposure because the world really did change in the first quarter of this year, particularly with regarding international trade. we are still in the middle of determining how that is going to change so we favor businesses that are domestic in nature because those businesses are not going to be affected as much from the way our trade and orientation and relationship will change with china. i think that is the biggest issue we will be dealing with for the next two or three years, much less so than with the department of justice does with some of the large tech giants. shery: does it worry you we are almost halfway through the earnings season and guidance continues to disappear? it seems like these companies are offering very little commentary on the outlook. haidi: it does not worry me that much. joseph: i think one of the things that has helped the market and helped businesses is
6:18 pm
that commentary from companies that have come out so far has indicated that demand really bottomed at the end of march or in the first week of april and has really gotten better through the last 20 days or so. people are getting confidence that potentially demand has bottomed. from a guidance perspective, not a great deal. i go back to the first thing we talked about which is the market from my perspective is viewing earningsmic and 2020 as something that can be written off as a one-time event. this quarter come in next quarter and potentially the third quarter -- the market is willing to give companies a pass as long as it believes we are turning the corner on the pandemic. as long as it believes that infections are declining, the rate of change is getting better and that -- that change, that
6:19 pm
confidence is going to allow investors to look through bumpy q2 results, bumpy q2 results and hopefulness that in q4, it will begin to accelerate and 2021 will be a better year. haidi: very quickly. berkshire hathaway, one of your top holdings, were you disappointed that warren didn't deploy the cash file opportunity in this environment? that -- hel, i think is dealing with a lot of challenges that he didn't expect. he certainly did not expect the airlines -- he didn't expect the pick -- pandemic to wipe out airlines. he didn't expect the pandemic to wipe out other businesses he has acquired. i think he has taken a very conservative orientation with regard to his business which has become much more cyclical than he had expected. i am not surprised he didn't
6:20 pm
deploy cash on new acquisitions. take the other challenge that he faced. the stock market decline was incredibly quick relative to historical standards. he had a very difficult time finding targets who didn't have their stock prices locked up 30 days later but it is very difficult to do a deal in the course of 25 days, particularly if you want to deploy $50 billion of capital. i am not really surprised he didn't deploy a great deal of capital in the first quarter of the year. thank you for joining us, joseph, portfolio manager at tcw. coming up, we get more drama on weowwork. adam neumann suing w softbank. we have the latest. this is bloomberg. ♪
6:23 pm
shery: a quick check of the latest business flash headlines. for our he says super car sales are holding up despite the coronavirus. it says its order book remain strong even though italy's lockdown has shut down facilities. it may mean lost production for about 2000 cars. the first quarter rose about 5%. ferrari's decision to lower its full-year guidance shows even the most iconic brands are feeling the pressure. blackstone's potential investment in soho china as the coronavirus makes it difficult to assess the business outlook. we are told discussions halted amid concern about arranging financing. at ans tell us talks were early stage and could resume once the virus turmoil has eased. china slumped the most on record following the report.
6:24 pm
microsoft is delaying a new foldable dual screen surface laptop. it says it will now focus on the new windows 10 next operating system on single screen devices and will await the right moment to bring dual screen to the market. microsoft announced the device in october. it is offering no updates on the dual screen phone which was relaunched at the same time. wework co-founder adam neumann is suing softbank over its decision to end its 3 billion-dollar stock buying deal. n has been following the details. arye pretty extraordin accusations being made. ellen: if you have been following along for the last couple of months, there has been a lot of growing tension between softbank and wework over this 3 billion-dollar tender offer. this is a deal they agreed to
6:25 pm
last fall when softbank was bailing out wework. it was an agreement that was going to enrich adam neumann greatly, along with many other early investors and current and former employees of wework by giving them a chance to sell their stocks. adam neumann was going to have a chance to sell almost $1 billion in stocks. that was part of his exit package people talked about a lot last fall. as things sort of started to fall apart in the spring, you s aw that softbank started to let shareholders know they were planning to not go through with the tender offer. on the deal's deadline, april 1, they officially pulled out. they prompted a lot of anger from board directors at wework, from adam neumann, from employees that were hoping to sell. there have been two board directors at wework who sued softbank over this about-face with the deal and now we have, as expected, adam neumann filing
6:26 pm
suit against softbank as well. umann says softbank was secretly taking action to undermine the agreement so how did tensions go to that point and what did softbank say to justify them pulling out? ellen: softbank had listed originally several criteria that they said wework had to meet in order for the tender offer to go through. that included things like, you konow, doing this consolidation of two of wework's asian businesses into one. adam neumann intern alleges softbank was trying to undermine that rollup of the businesses in order to have a legal reason for getting out of the tender. adam neumann and his parties allege the actual motivation for softbank to pull out was softbank stock price is thinking and they didn't want to go through with a deal. they found other reasons to do so. it is interesting there is so much bad blood now given that
6:27 pm
six or nine months ago, softbank was the company that was coming in to bailout a floundering wework. they were wework's biggest ally and now things have really changed. days, we the last few have heard news of more job cuts at wework. company's veryis survival? ellen: it is really up in the air. i think wework remains optimistic that they will be a choice of many businesses in order to get more flexible office space in the near future, in which taking on a 15 year office may feel strange given we are not sure what it will look like. that being said, job cuts continue to happen. there will be more very soon. shery: ellen, thank you very much. coming up, the australian central bank confronts an economy that could suffer a 10% drop in gdp this quarter.
6:30 pm
>> you are watching daybreak australia. the blame game surrounding the coronavirus has the offshore yuan reaching a record low for months after the phase one trade deal was signed. dealers are watching washington and beijing hurl accusations with president trump raising the opportunity of fresh tariffs. it fell within 1% of an all-time low in monday trading. the philippines saying it will remain prudent in its support for the economy. it offersor says greater room for easing although the normal policy lag is waiting to see the effect of measures introduced.
6:31 pm
it lowered its benchmark rate by 50 basis points in an unscheduled move. malaysia's easing of its virus restrictions means the trial of former prime minister in his role in the scandal can resume. proceedings were halted in mid-march on concerns that some of the members of the defense team may have been exposed to the coronavirus. he denies any wrongdoing related to the company's missing money. lawmakers in iran have voted to dump the riyaal within five years with the country battered by the coronavirus. state news says that ruby replaced by a currency. it had been the official unit since the 1930's but most iranians do not use it for general transactions. a 10,000 banknote is worth about 1000, which is roughly $.25. global news 20 for hours a day on air and on quicktake by
6:32 pm
bloomberg, powered by more than 2700 journalists. i'm karina mitchell. this is bloomberg. shery: let's get you a check of the markets right now. we are seeing brought upsides for futures with u.s. futures gaining 3/10 of 1%, extending the gains we saw on the regular session when we saw u.s. stocks rallying late in the session. we have energy and tech leading the gains. wti again rising. we are now seeing it above the $21 a barrel. the highest level in more than two weeks. we are seeing the pace of u.s. stockpiles building at a slower pace last week. when it comes to sydney futures, higher by 3/10 of 1% as we await the rba rate decision. kiwi stocks are now at the highest level in quite a while with two sessions of gains, haidi. shery, australia's
6:33 pm
treasurer saying the nation's lockdown will have gdp plunged 10% in the june quarter, wiping around $50 billion aussie or $32 billion u.s. from the economy. let's get some insight from jenna chang. great to have you on again. we know that the impact is going to be devastating. i suppose the question will be how we can expect the recovery? janu: there's a lot of questions about how covid-19 is impacting us. .lso, the extent of the decline as you said, how quickly we can recover. -- there is so much uncertainty about that. yes, we are seeing some restrictions being lifted, but that there is that concern
6:34 pm
maybe we could get that lift in cases. do we need restrictions imposed again? australia, butn also around the world. a lot of question marks about that. we thinik that a recovery is likely to be slow as well because even if you do have restrictions lifted, we are still likely to see some form of social distancing limits in cafes and restaurants, how many people can be there. people, nobody is traveling. it will still be out of the question for some time. it might take a while before -- a long time before we get back to normal. is there a real concern, talk about the idea of a second
6:35 pm
wave, is there a real concern that the kind of stop-start, restart, reopening may be taking a couple of steps backwards if the infection rate rises again? is that a real concern in terms of not allowing the economy to be able to properly restart and momentum to be gained? think, in the back of their minds. it is surely in the back of investors' minds. we are not going to know until we do lift some of these restrictions. i mean, i'm not a health expert. hown't comment to much on well these restrictions, when they are lifted, will be able to restart the economy. this is first and foremost a health issue. downact we need to shut
6:36 pm
businesses,close this is what needs to be done to contain the virus. think that just adds to uncertainty, of even though we are seeing there is some hope we could see some activity restart. we might be in a better position than when we were when cases were still rising. markets have seen as a positive. k uncertainty is still on the outlook. shery: the labor markets are very important for the economy, for the rba as well. we have seen a hiring freeze across the board in australia.
6:37 pm
at what level are you expecting the unemployment rate to peak? 9%u: we have a forecast of at the peak. again, i like to highlight the uncertainty around that. the job payments from the government, the subsidy provided to businesses and that is an incentive to keep employees on the books. they will be counted as being employed even though the business may not have worked for all of them and they will be paid that subsidy by the government. that has really changed the where the employment situation could land. obviously have a large unemployment rate than
6:38 pm
otherwise would be the case. there is uncertainty around whether businesses actually are eligible for these payments and whether employees are eligible for the payment. i think that leads to that range of if the pay cut is not as much as expected, we could see the unemployment rate being higher than what we are anticipating. shery: thank you so much, janu chan, from sydney. coronavirusxt, the does an unprecedented form in china. how his members are faring. this is bloomberg. ♪
6:40 pm
shery: hong kong's economy shrank by the most on record in the first three months of this year as the impact of the virus pandemic added to an economy already pummeled by political unrest. stephen engle the details. the economy already contracted for two consecutive quarters last year and now a drop of almost 9%. stephen: yeah, that's right. the pandemic obviously getting worse than even the worst forecast and the threat of protest possibly returning to the streets of hong kong now that they are looking at using those social distancing restrictions makes the outlook for the full year even worse.
6:41 pm
bloomberg intelligence expects the recession to extend into the second half of the year, leading to an even bigger full-year contraction this year than earlier forecast. bad. quarter gdp, it was down -8.9 percent year-over-year, the biggest drop on record going back to 1974. deeper than the consensus of contraction of 6.5%. it is the third straight quarter of contraction. let's put it into historical context. we have to go back to the asian financial crisis which absolutely rocked hong kong in 1997 and 1998, and the global financial crisis in 2009. these numbers are worse than both of those crisis to hit hong kong. more policy support is expected. not necessarily to lift hong kong out of recession but to offer a lifeline and a floor for
6:42 pm
those vulnerable groups, especially small to medium-sized enterprises. private consumption fell more than 10% in the first quarter. services export dove 37.8%. stimulus notg at necessarily compensating for all these various sectors that plummeted, but basically offering some sort of relief to the most vulnerable businesses. the good news is the handling of the coronavirus outbreak in hong kong. the recent successes we have seen. that means we will see some restrictions lifted soon? stephen: that is what the local media like hong kong cable tv are reporting. give herm is going to regular weekly briefing later this morning. we could get some insight or even some directives coming from her but the speculation is now that we have had 15 straight days of no local infections,
6:43 pm
they might be easing some of the restrictions such as reopening movie theaters, gyms and possibly beauty parlors and other businesses. we are hearing that social distancing rules right now that allow just groups of four people in public, it could be doubled to eight people. again, it poses a big dilemma for carrie lam. the relaxation of these rules could facilitate a larger return of street protests and we have already started to see. kong for seven months last year. if that returns in addition to the lingering effects of the pandemic and the depression of global trade, it could really be very difficult going forward and make all productions for the full year pretty much useless. the financial secretary says our economic situation is very challenging. we are deep into recession. chief north asia correspondent stephen engle with
6:44 pm
us. looking at potentially some of these restrictions being lifted in hong kong. operating ins china are facing unprecedented damage as the virus outbreak is researching, geopolitical tensions take their toll. european chamber of commerce in china president joerg wuttke told us how his members are faring amid all the difficulties. from twoe situation years already of trade war and now venturing into tech war, and now the coronavirus is holding down the last pieces of any re-conciliation possible. it is really worrisome where these two massive economies are heading. do? can we european businesses trying to position themselves in the pendley from that. >> how do you see supply chains changing? will they be forever changed and will they be a lot more inward looking? is that because of covid-19 or
6:45 pm
does it start with the u.s.-china trade war 2019? joerg: it is labeled as mitigating. that says it all. we are struggling to understand where we are going to be next week, let alone if we can prepare for next year or the years to come. yes, we will look into other opportunities, multinationals primarily. at the same time, we cannot really leave china. 66% of global growth. i don't see european companies from the data and the surveys moving out. you will look into a new project differently. china will not be the only story in town but diversification will take a while. who has the money now to establish new plans anywhere in the world? >> do you see permanent damage from trade as a result? joerg: of course. this is the most grave situation since world war ii. manufacturing might bounce back
6:46 pm
faster. the sector will take a hit. the airlines might not recuperate for years. this is unprecedented. guessing what we are going to witness over the years to come. >> does that also signal a shift in globalization or will we get some kind of normal eventually? joerg: two things. one is the awareness you might not want to put all eggs in one basket. you have the political dimension. home, that isr to the european discussion going on. of course, because of covid-19, you have donald trump unleashing a tech war with china, trying to hold back high tech for the chinese industry. that's definitely going to have an impact. we don't know to what extent this will be but we all have to work these days. more: we will have plenty
6:47 pm
big guest throughout the day which includes the executive director and one championship chairman chairman and ceo. don't miss those exclusive interviews. shack sizzles and lay trade after its u.s. businesses show signs the appetite for burgers is coming back. a wrap of that and the other key u.s. earnings later this hour. this is bloomberg. ♪
6:49 pm
haidi: we are getting some breaking news in regard to trading of qantas. this is according to a statement from the company submitted to the australian stock exchange. anotherhey have secured $550 million in debt funding against three of their boeing 7 79 aircraft. the extension of flight cancellations will carry through from june and july. the abilityit has to restore some services shortly. travel restrictions and national guidelines change, expecting the cash burn rate at $40 million a week by the end of june. you balance that against the $550 million in funding they have announced against the three aircraft. qnatas saying total short-term liquidity stands at three point
6:50 pm
$5 billion australian as of may 4. we will be getting more details. the ceo alan joyce will be speaking at 10:30 a.m. sydney time and talking to us later for more details. let's take a look at the after the bell action in the u.s. we are seeing earnings weighing and bankruptcy when it comes to these companies. aig saying covid-19 is the largest catastrophe loss it ever experienced. taking a $272 million back down. su keenan has more. we are seeing companies like j.crew file for bankruptcy protection. more drama with neiman marcus. the retail sector continuing to be impacted. let's start off with what we are seeing with earnings. su: yeah, we can go right to the after hours movers. you can see the stocks in the green those reporting earnings. stocks in the rent are hurt. one of the companies seeking restructuring. it ended up in a vague deal that
6:51 pm
was announced. these are some massive $272 billion hits. that is a pretax law that comes from the business lines that were also hit. commercial property, trade credit and worker policies. it was volatile after hours with the earnings missed again is overshadowed by the fact they have a very cloudy outlook. a double whammy for aig. they took a loss from covid and they took a loss in their stock. let's take a look at shake shack which is a slightly different story. profits better than expected. you mentioned hamburgers are back in. shares were actually higher. they are saying a recovery could reopen and help the economy. they're considering doing drive-through. and then we've got tyson. the stock plunged as much as 8% on earnings. that has a lot to do with the virus pushing of costs, clouding outlook.
6:52 pm
they are saying we are going to continue to see disruptions in food service industry. they recorded 100 million loss that would impact beef and chicken. shery: what about those companies that are now struggling to restructure in their crushing debt? hertz as theok at poster child for that. look at their stock, your to date just fell off a cliff. the pandemic and shutdown down in the travel industry, they have been hit hard. they hired another bankruptcy advisor and the stock felt even more. down 20% in extended trading. if you look at the big news hours,headlines after retailers have been hit hard. neiman marcus reportedly closing in on lenders like pimco, j.crew which is a peppy -- preppie
6:53 pm
apparel maker, they filed bankruptcy monday. they will plan to hand control over to the lenders. we have an iconic california gym chain, gold's gym, this goes back to the days of the musselman in california. they closed all their gyms as they filed for bankruptcy. closed them and pushed them closer along the line. back to you. haidi: su keenan in new york. a quick check of the latest business flash headlines this hour. afterirlines stock tumble warren buffett dumped his stakes in the four biggest carriers. d, taking the s&p airlines industry index down by 12%. american airlines was the second worst performer on the s&p 500, closing. down by almost 8% united, delta and southwest were also significantly lower. general electric is cutting around 13,000 jobs from its jet
6:54 pm
engine operation as the coronavirus ravages global air travel. the losses go well beyond announced in march and will affect a quarter of ge's aviation staff worldwide. it includes previously announced plans to cut 2600 jobs in the u.s. cruise line operator carnival plans to resume sailing on august 1, becoming the first major operator in the americas to outline a return to the sea. carnival restart from texas and florida with fares as low as $28 a day to entice customers. the cruise industry shut down in mid-march when coronavirus operates trapped passengers on board, some who died. wework co-founder adam neumann is suing softbank for its decision to scuttle a pledge to buy $3 billion of stock. is relying on legally pretext to renege on the deal and its own financial position
6:55 pm
weakened. he claimed softbank was secretly undermining the purchase despite claiming to complete it. shery: a quick check of the markets. kiwi stocks gaining ground for a second session. sydney futures trading higher, 3/10 of 1%. we are going to be watching out for qantas how it is now extending international flight cancellations until the end of july, domestic until the end of june. freight has achieved strong revenues for march and april. u.s. futures now paring back some of those earlier gains. we have seen u.s. stocks rallying late in the session. another big earnings week in the u.s. more than 160 s&p 500 companies reporting earnings this week. wti continues to extend gains, above $21 a barrel. we have seen the pace of stockpile built in the u.s. slowing down last week. coming up in the next hour, head fromset allocations ben,
6:56 pm
7:00 pm
haidi: a very good morning. i am haidi stroud-watts in sydney alongside shery ahn in new york. we are counting you down to the market open in australia. welcome to "daybreak asia." the coronavirus blame game. the offshore yuan approaching an all-time low. president trump raising the stakes, threatening a fresh round of tariffs on china. asian stocks look set to rise after wall street stages a late rally. oil gains
51 Views
IN COLLECTIONS
Bloomberg TVUploaded by TV Archive on
![](http://athena.archive.org/0.gif?kind=track_js&track_js_case=control&cache_bust=363590919)