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 for a fourth day. the dollar strengthening against

major peers. co-founder sewing softbank for reneging on a $3 billion deal. shery: take a look at how markets are trading at the moment. we are seeing upside for u.s. futures, kind of flat right now, paring back some of those earlier gains that were already adding to the rally we saw late in the session in the u.s. but paring back some of those gains. kiwi stocks gaining for a second session. sydney futures higher by .3 percent. as we head towards the rba monetary policy decision, not much change expected there although we are hearing from the treasurer that we could see a deep contraction this quarter. we are seeing crude gaining ground, extending gains above $21 a barrel as we see u.s. build now slowing. the push to reopen state economies is clouding efforts to

predict the official told from the coronavirus p he has ramped up his death production. -- coronavirus. he has ramped up his death projections. greg sullivan joins us now. president trump still pushing for the reopening of some states. the are seeing a few states really accelerating those moves, and yet the projections for coronavirus cases and deaths, not anymore optimistic. greg: that's right. growingections are not anymore optimistic and president trump, as you said, did acknowledge that over the weekend, saying it would -- deaths would likely reach 100,000, which is higher than he has been saying recently. the focus for the president seems to be economic impact from the social distancing and stay-at-home orders. he is still pressing for state reopen, going so far as to say they are not reopening fast enough. cases continue to rise in the u.s. today, even though that rise was lower than the average

daily increase over the past week. but still, president trump focused on trying to get states to reopen. this is not really a new change. we have seen the president before focused on the economic impact, but it does not look like he is changing his course even admitted the projections saying likely that the impact will still be greater than he had hoped for. haidi: in the meantime, this sort of war of words is spilling over potentially into the next round of the trade war with china. greg: that's right. trump does also seem to be trying to shift blame to china for the pandemic. earlier, we heard him blame both the world health organization and china for not releasing data but lately we have heard rumors from within his administration saying that potentially this virus could have come from a lab that he has seen evidence

suggesting that, and just today, we have a member of the national security council advising the president, the deputy national security adviser, giving a speech in chinese which warned the chinese they could face a potential populist backlash over some of the ways they have handled the virus outbreak. that of course seriously risks stoking tensions with beijing. already, things are a bit more tense than they were before. half a year ago, we had this trade deal that president trump had negotiated, was sounding an optimistic note, and all of a sudden, we have a very tense relationship between washington and beijing, not least of which because of the virus and the way in which we handled this. shery: we heard democrats floating more than $1 trillion in additional spending. what are we seeing in congress in terms of negotiations and where that is going? greg: as of right now, negotiations are continuing. we do believe that the key players are still discussing

what could happen. democrats have obviously laid out their demands. republicans have drawn a line in the sand over a certain issue -- my betty protections -- liability protection for companies. the senate is expected to be in session this week but considering nominations, and nothing as far as the fiscal stimulus bill. negotiations continue. when that happens remains to be seen. greg sullivan they are the latest. let's get you caught up-to-date with the first word headlines. karina mitchell in new york. toina: nations are starting ease restrictions with small shops reopening in spain as virus cases declined there. social distancing measures remain in place with commuters told to wear face masks. italy is coming back to normal with trains running again. restaurants and cafes can work again although only in takeaway mode. will asia is edging back to inmal with traffic flowing

kuala lumpur and trains running again after seven weeks of restrictions. indonesia reports its newest tourist numbers for a decade. arrivals plunged two thirds in march with travelers and down 96%. hong kong is aiming to reopen movie theaters and jams this week as restrictions continued -- gyms as restrictions continued to ease. the philippines saying it will remain prudent in its support for the economy. the governor says benign inflation offers greater room for easing although the normal waiting.g means it is they lowered the benchmark rate in an unscheduled move. australia expects the coronavirus hit to drop gdp by 10% in the current quarter, wiping the equivalent of 32 billion u.s. dollars from the economy. the treasurer says indicators are going to be considerably worse before improving and

retail and hospitality will be hardest hit. the treasury warning it is a further sign that australia is heading to the first recession since 1991. 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. share a. -- shary. shery: malaysia highlights a busy economic docket. joins us toa discuss. renewed u.s.-china tensions may be another reason to sell emerging markets. he argues now is the time to buy. this is bloomberg. ♪

haidi: optimism slowly returns. investors are looking for the best bargains and they could

settle on ems. using some measurements, emerging market stocks are trading on historic lows. our next guest says now is the time to act and fill up on cheap equities. joining us now is ben inker. great to have you. history in terms of this time of year is firmly against emerging markets, but you look at the rest of global equities developed and valuations are not exactly cheap. is there opportunity here to selectively go into e.m.'s? ben: there really is. there's a lot of cheap stocks in emerging markets. there's kind of something for everybody who is willing to take a little bit of risk. if you are interested in cheap stocks, it is hard to go anywhere else. there's a couple of potential risk factors here. a potential revival of the trade war with president trump threatening potentially new tariffs on china as a result of what he sees as a mishandling or cover up of the virus situation.

that would translate into a weakening of the yuan which has been acting as an anchor for em assets. in addition to a slew of terrible pmi's we have had from recently, does that create greater volatility in that class? ben: it is always possible. you never know exactly what is andg to happen with e.m. there will be plenty of bad news to come in the emerging world. of the worst midst global economic circumstances since the great depression, and there would be plenty of bad news. in our view, the thing that is exciting about emerging is not that bad news is not going to happen. bad news will happen. stocks in e.m.

general are priced for absolutely horrendous news. bad news we think has every chance of coming out. shery: e.m.'s is such a wide and broad category. where within emerging markets do you find the best value? about whatf this is risks you are prepared to take, so if you look at a market like, say, russia right now, the russian market overall looks really cheap. russia is suffering from the collapse of the oil price, from the fact that their public health system is not well prepared to handle the coronavirus. there's plenty of things to be worried about but you have got really very cheap valuations. now, if you are looking for economies that are somewhat better protected against the coronavirus, because their health system and government kind of have a pretty good

playbook, look at east asia. you can find plenty of cheap stocks in taiwan, in korea, in china, and these are places where if you are really scared about the covid risk, these places have shown they have a pretty good playbook. on the others out of the world, again, there has been no windows bad news in brazil. the stock market is down 50%. and that pays for a lot of bad news. incan find cheap stocks almost every country in the emerging world and there are some overall countries that we think, even given the considerable risks there, are just pricing and utterly disastrous scenarios, which we think the world is probably going to turn out less disastrous than that. shery: other than value, do you

also take into account sectors? even within these emerging economies, what we keep hearing is the same narrative that demographics are very theortive, that in china, consumption story is still strong. [no audio] shery: hi, ben? it seems we have lost ben. ben: sorry. shery: did you get my last question, which was about potentially sectors that could look more attractive within emerging markets? uh, so, to our mind, there's plenty to do in most sectors of emerging. obviously, some of them are very cheap valuations. if you look at the energy or materials sector, there's a lot of cheap stuff there.

but as you point out, demographically, a lot of these countries are in a zone where domestic demand should be expected to grow reasonably rapidly over the next five to 10 years, and you can find quite decently priced consumer staples and consumer discretionary stocks really all over. you know, we are running diversified portfolios right now stocks there are so many worth owning and there's no need to take high amounts of stock specific risk. but we are finding stuff to do across the sector. if you want the very cheapest ,ectors, it's the more cyclical and in particular, energy and materials, as well as financials, but there's -- there are cheap stocks across just about everywhere. you veryn inker, thank much for joining us, gmo of

asset allocation. texas railroad commissioner -- says a proposal to limit oil output in the state will fail. the three-member agency was due to vote on curtailing supplies in a process known as pro rationing. he told bloomberg the organization is still not ready to act. >> at this point, it looks like the market is beginning -- the market is bottoming out. texas producers are shutting in. frankly, we have missed our opportunity to lead on this. at this point, we are not going to prorate >> tomorrow. are you going to -- prorate tomorrow. >> i know the commissioner -- i read his op-ed in the houston chronicle and he was firmly against the idea that this process should be managed. are you going to support this proposal or are you going to side with him? ryan: i don't even think we are going to take a vote tomorrow. we will see how the other two commissioners want to move. the political process has slowed this down. we have not done any

calculations about how it could positively affect economics. it has been a political discussion. at this point, we are still not is tooo act, so, it late. there is no proposal to make. i think proration is now dead. >> how much industry pressure was there? exxon said it should be less to market forces. pioneer not at all in agreement. it splintered off from the groups, the industry groups. how much did the large players impact your reworking of your position? ryan: my position has not changed any. if you go back in time for weeks to six weeks ago, we should have been taking action. we should have been proactive. we should have led. if so, you would see much less industry destruction in the united states, but at this point, the major players, the

political organizations, really slowed the process down so much that we missed our opportunity. it was not that my position has changed, it is just that we got too far along. we got to a point where we could no longer make a difference. >> so it has changed effectively then. if that is the case, if it is too late to do the right thing, which of course, it never is, how do you anticipate this will work itself out and what will happen to states like oklahoma who are taking up this question in a weeks time, and other states? ryan: most of them, they may pick some action, but it's probably not going to have a major market move at this point. and you say it is never too late to do the right thing. it is interesting. i think in this case, the right thing eight weeks ago is not the same thing as the right thing today. and so, look, if someone said we have a planter prorate proactively -- a plan to prorate proactively, i would support it, but since we cannot put that together because of the political forces around austin,

there is no way practically to take action. and so, that is the challenge. in other year or two when demand comes back to 95 million barrels a day, the country with the most loss of oil production will absolutely be the united states. we will have been the big loser in the global oil business. guy: in terms of taking that thought and working it forwards, do you think that therefore, going forward, given the lesson that will have been learned, if the matter works out in the way to, do youlikely think that texas, do you think the united states, needs to become utter at being organized and managing its output -- better at being organized and managing its output? ryan: it's about how to support our key industries, our most vital infrastructure in the middle of a crisis like this pandemic. the oil industry has been very successful in the united states for the last 15 years, and the government, from a management perspective, not a regulatory

perspective, but from a management perspective, has been fairly laissez-faire, that the industry take care of itself. in this complete meltdown of our global economy, you cannot take zero support for the oil business, otherwise, we are going to lose out. i think there needs to be much more thought given to how we use data, and understand impacts to market is to protect such a vital piece of our economy. haidi: that was the texas railroad commissioner, ryan sitton speaking to us. plenty more to come on "daybreak asia." this is bloomberg. ♪

haidi: researchers continue to debate just how fast the coronavirus vaccine may be available. japan's takeda says president trump's plan that one will be ready by year-end is extremely

ambitious, but the president of the global vaccine business is not ruling out the possibility. but it isossible, going to be extraordinarily ambitious and challenging. president trump is right that it typically takes many, many years to produce a vaccine. i would say that for many vaccines, it taken 10 to 15 years or longer, so to compress that to the stated 12 months to and of itself in extraordinary, but to set a target to having meaningful quantities of vaccine by the end of this calendar year is really, really, extremely ambitious. i don't think anybody can guarantee that this will happen, but what i can say is that the industry is doing its very best as well as the regulatory authorities and the scientific community, to make that happen. toi know takeda is looking try to develop some kind of vaccine, may be in partnership with others as well. you have a plasma business that

you are going to direct towards covid-19 treatment. so explain to us why you would do that given that there's so many different efforts at vaccines out there, and they are not at all guaranteed to make money for the company that does find one. rajeev: that's right. this is the reason that we decided not to start our own vaccine developing program. there are over 100 companies, as we understand it, and entities, that have announced vaccine development programs, so we felt that our role is best to partner with one of these companies that have shown that there vaccine is safe and works and that bring the manufacturing of that vaccine into our japan manufacturing facility, where we have a lot of experience in making vaccines for the japanese population, and so, we would like to do that both for japan as well as companies outside of japan. that is our vaccine effort. on plasma, it is a very different story because we are one of the largest plasma product manufacturers in the world, and what we decided to do

early on is to take this capability to produce a plasma formulation that has very high antibodies against the sars cov 2 virus. what we are effectively trying to do is give people who have covid illness access to the antibodies that their bodies will not develop for two weeks or longer, so it is essentially taking a loan on those antibodies so you can use them to treat the illness today in hopes that it will be less severe, not last as long, and ultimately, that he will go through it more quickly. this is still in development. we hope we will have the necessary data to show efficacy and supplies on an ambitious timeline by the end of this calendar year. how sustainable is that, given the fact that it relies on people with the antibody effectively to harvest those from them, then concentrate them in a sufficient dosage that you

can then give people that have it that are going to be affected? on what kind of scale can this be done? rajeev: great question, guy. this is critically dependent on having access to enough people that have recovered successfully from covid illness and are willing to donate plasma, so you need to have large numbers of people donating in order to treat large numbers of patients. the unfortunate circumstance with the pandemic is that every day, more and more people are getting infected, so the pool of potential donors is expanding. now, it is a matter of letting those people who have recovered know that they have an opportunity to help other people by donating their plasma to this process, and i think i would be remiss if i did not mention what tom hanks said just a few days ago after he donated his plasma to help others. he said it was as easy as taking a nap, and if you can take a nap and help save someone else's life, i think that's a great thing.

shery: president after kato global vaccine business, rajeev venkayya. let's now get a quick check of the latest business flash headlines. qantas has secured more than .5 billion aussie dollars against its dreamliner's. the carrier will extend domestic flight cancellations through to the end of june. international services will be curtailed through july. we will be joined by a qantas joyce, afteran that announcement. ferrari says supercar sales are holding up. it's order book remains strong even though italy's lockdown has shut facilities. it may mean lost production of about 2000 cars. deliveries in the first quarter rose 5% but ferrari's decision to lower its full-year guidance shows that even the most iconic brands are feeling the pressure. microsoft is delaying a new foldable surface laptop. it will focus on the new

operating system on single screen devices and will wait for the right moment to bring dual screens to the market. plenty more to come. this is bloomberg. ♪ save hundreds on your wireless bill

without even leaving your house. just keep your phone and switch to xfinity mobile. you can get it by ordering a free sim card online. once you activate, you'll only have to pay for the data you need- saving you up to $400 a year. there are no term contracts, no activation fees, and no credit check on the first two lines. get a $50 prepaid card when you switch. it's the most reliable wireless network. and it could save you hundreds. xfinity mobile.

karina: this is "daybreak asia." i am karina mitchell with the first word headlines. the u.s. treasury expects to issue about $3 trillion in marketable debt through june as borrowing expands to fund government stimulus for the coronavirus outbreak. the estimate is $3 trillion higher than announced in february, when the treasury was expecting to pay down $56 billion of debt. it says the increase is driven by expenditure to help people in business is hurt by the pandemic. the blame game surrounding the coronavirus sees the offshore yuan nearing a record low for months after the phase one trade deal was signed. currency traders are watching washington and beijing pearl hurlations -- huel exit --

accusations about the tariffs. it fell to 1% of an all-time low in monday trading. lawmakers in iran have voted to dump the real in five years with long-standing u.s. sanctions. state news says it will be replaced by a currency called the -- the real has been the official unit since the 1930's but most iranians use the centuries-old -- for general transaction. it is worth 1000, which is 25 u.s. cents. malaysia's easing of restrictions means the trial of the former prime minister and his role in the 1mdb scandal can resume. all parties have been told to attend court on may 13. proceedings were halted in mid-march on concerns that some numbers of his defense team they have been exposed to the coronavirus. wrongdoing.y global news, 24 hours a day, on air and on quicktake by

bloomberg, powered by more than 2700 journalists and analysts in more than 120 countries. i am karina mitchell. this is bloomberg. shery. shery: let's stay in malaysia because the central bank is expected to make a bigger than usual cut to its benchmark rate at its meeting today. elsewhere in the region, we are expecting gdp numbers from indonesia. charu chanana is the lead economist for asia. great to have you with us. we should start on malaysia because we have seen the environment dramatically change since our last meeting in early march. what are you inspecting there? charu: yes, absolutely. and the worst part for malaysia is it is not just the covid crisis that they are dealing with. the very low oil prices are also a big drag on the economy, and their revenue. -- the fiscal measures they can announce to deal with the threat of the covid crisis have been

impacted. malaysia has already announced largest fiscal package so far in asia, about 17% of gdp. with oil revenue coming under pressure, this is obviously going to hamper their finances. besides that, we are obviously dealing with a political crisis with a new prime minister at the helm. not ignitings confidence in the foreign investors, so you know, there are multiple problems there, and of course, the central bank has room to go for a bigger cut as is the consensus because it is very weak inflation right now. the last month, we saw a negative inflation trend. for 25 basisis points because these rate cuts really are not helping so much with driving the economy. what i am really looking at is

some of the unconventional monetary policy measures, given that malaysia's financial markets -- and the banking system is quite resilient. there is a lot of room for them to engage in balance sheet expansion and bond buying. >> you mentioned inflation trends. we are expecting cpi numbers out of the philippines and thailand as well, given this a disinflationary trend across asia. how helpful is that for central banks to be more? charu: i mean, ports, for thailand, it is hard to see deflation going away anytime soon. be one of theably last things to recover out of the crisis. similarly, with the philippines, we see inflation threatening the lower band of the central bank target range. all of this provides room for cuts. we do not rule out further cuts from the central bank, but like

i said, the currency pressures are there. and there are several other challenges. think even for thailand, they probably do not need to do a corporate bond buying. to explore the yield curve, control measures. for the philippines, they have already announced that they are buying about, you know, some of the government securities, and i think we could see more of that because so far, the philippines fiscal support has been pretty restrained. helpcan step in there and the government. i think that would be something which is more interesting. haidi: do you expect more action to be taken in indonesia? that is another economy that is badly hit by the lack of tourism arrivals as well as the threat

of a second wave of infections. policy support has been lacking in indonesia, both on the fiscal, and monetary, sides. i don't see any reason why they should stop here. of course, there is room for further rate cuts, given that, like you said, the response from indonesia and for the covid crisis has been subpar. it is not just the weakness in domestic demand and stuff like that, which all of the other countries are facing, but indonesia has a bigger problem, where even after this period of time will be over, there will be higher levels of poverty, rising unemployment, which could actually impact the demand for a very long time, and of course, the foreign investor sentiment -- tourism. we will not be as comfortable the next time around because we know indonesia is not prepared to fight a health crisis like this. thinken all this, i do

there more that they can do for the fiscal and monetary side, however, the problem with the rupiah -- dealing with the part of what happened at the time of the asian financial crisis. there was a lot of capital outflows. that is why i am cautious right now. i think they must do some cuts here and there while the rupiah volatility is under control, but deficits remain supporting true qe. a year ago, on the back of a promise of an expensive economic reform agenda, how much of that now takes a dent in terms of the limited capacity and ability to push through structural reforms in indonesia? mean, it is more specific for indonesia, but

generally for asia, the key structural reform efforts have been sidelined as economies have put in all their resources to deal with the covid crisis. for indonesia specifically, we know the bill was introduced in the parliament before this crisis happened, but has now been delayed indefinitely. this would be on the medium-term potential output. it will impact the growth of the country in the medium-term as well. shery: what are you expecting in terms of the chinese economic recovery? just because southeast asian economies are so dependent on china. one of the good things would probably be -- of course we know that china is quite focused on getting back their production. up to speed, even though i think they are still struggling with providing the consumption. how that helps asia in a more

generic way is the regional supply chain pressures remain limited. a similar trend of consumption recovery means delays further on. what i mean is that in show will supplyer able to manage chain disruptions because the regional supply chain is pretty chinese demand picking up. consumption will continue to lag. this brings me to the first point we discussed. for inflation, we continue to see a lot of demand weakness, domestic demand weakness for asian economies, but with the help of china, regional supply chain's are in place. overall, the deflationary pressures are going to be pretty prominent in asia for the next few months. shery: are you concerned about some fundamental changes arising from this pandemic, whether it is in china with ongoing social distancing, voluntary social distancing, people are going to

restaurants? or in southeast asia that is so tourist dependent, and nobody wants to travel, at least this year? yes,: in the medium-term, i think that there will be some changes on the consumption side. e-commerce and online deliveries are picking up, so that is going to stay. upnever these economies open , this month, in asia, i think malls, markets, movie theaters, and restaurants, these are some of the things which will be allowed to come back to life, and even when we restart, there will be a lot of -- still in place, so that is one thing from a government point of view, but also, like i said, people will avoid crowded spaces for a while. spending on leisure is likely to remain affected throughout this year.

iother fundamental change mentioned briefly when we were talking about indonesia is the rise in unemployment levels and higher levels of poverty in asia, which is a big concern, and that can kind of impact demand for even for the next few years until we can bring the economy back later on. ofry: charu chanana continuum economics, thank you for that. we have an alert on the bloomberg. we are getting the latest coronavirus case numbers out of china, reporting one additional case, not specified whether it is imported or a domestic case. we are seeing 15 symptomatic cases in china, no new coronavirus deaths. this of course as we have global cases topping 3.5 million, not to mention more than 250,000 deaths, haidi. getting some just

good news when it comes to apple fronts, in australia, news that apple will be reopening its australia retail stores on may 7. this as we have heard from a number of states around australia are relaxing some of these restrictions around non-essential retail stores and they are able to reopen again, so we had heard from tim cook in an interview last week saying that this would be likely to happen, however, we would likely see things like reduced operating hours, physical distancing, and a focus more on board as opposed to retail sales in terms of those guidelines for the reopening. we have seen essentially the same thing happen with the reopening of apple stores in china, for example. coming up next, hong kong's economy contracting by a record in the first quarter, and prospects of the current period look pretty bleak as well. we get the outlook. this is bloomberg. ♪

haidi: hong kong's economy shrank by the most on record in the first three months of the year. this as the impact of the virus pandemic added to an economy that was already being pummeled by political unrest. our chief north asia correspondent, stephen engle, has the details for us. the economy in hong kong contracting for two consecutive quarters last year, and now, a drop of 9%, and the future does

not exactly look like a positive rebound. stephen: that is exactly right. we knew the first quarter was going to be pretty bad given the covid-19 outbreak, of course. they have controlled it to a certain degree, obviously, and they are starting to talk about lifting the social restrictions, but again, the cumulative effects of the u.s.-china trade war over the last year as well as the seven plus months of protests and the prospects of protests returning once these social restrictions are used really give -- pains a bleak picture for hong kong's economy. the first quarter gdp contracted 8.9 percent year-over-year, the biggest drop on record, going back to 1974. and to put it into historical perspective, it is worse than what we saw during the peak of the asian financial crisis as well as the global financial crisis. so three straight quarters now of contraction, and we are seeing the bloomberg intelligence expects the recession to extend well into the second half, leading to a

bigger full-year contraction than bloomberg intelligence had earlier forecast. paul chan says the economic situation is very challenging. we are deep into recession, and looking at that full-year forecast, he is warning of basically the worst full-year gdp on record for 2020 with a contraction up to 7%. of course, last year contracted 1.2% in 2019. we thought that was bad. what would -7% look like in gdp? it's really, you know, hurting everybody. private consumption falling 10.2% in the first quarter. exports, diving 37.8%. yes, there is stimulus out there, but it cannot overcome all the big numbers we are seeing. domestic household spending down 10%. investment down 14%. exports down 9.7%. a whole litany of numbers do not look good. government spending was up 8.3% but that cannot counter.

it can put a floor on the most vulnerable parts of the economy. shery: what kind of easing of the virus-related restrictions are we expecting in hong kong? stephen: we have seen two localht weeks of no infections. we caught them at the airport because we are testing everybody. local infections for about 15 consecutive days. hong kong cable tv as well as the local tv stations here reporting hong kong may reopen yms, beautyers, g parlors, as well as restricting to gatherings of eight people instead of four people. carrie lam will be giving her regular weekly briefing later today. we could get some insights into what the government plans, but it is a dilemma for her because we have already seen a resurgence of small protests we saw last year as the social distancing restrictions are eased.

what if they are rolled back considerably? could we see bigger, larger return of those street protests? one month away from now is that you fourth anniversary of the 31st anniversary of the tiananmen square crackdown in 1989. we could see big protests then as well as the anniversary of the large protest we saw, the 2 million people last year. it is a difficult time for the government. do you use the restrictions to get the economy going? that will risk street protests. it really kind of goes to the crux of the more existential question for hong kong. if we see a return to the political unrest. this is not just a pandemic story. it is pretty hard to see a way out as to how we see the economy revised, visitor numbers returned even when travel restrictions are lifted. stephen: that's right. you are seeing the mainland chinese visitors drop off the cliff really, and the prospects,

you know, the government officials and the economists here are saying the prospects for that are very low. mainland chinese visitors really propped up the hong kong economy. in retail sales, we are going to get those numbers later today after the markets closed for march. the survey is for a drop of nearly 50%. 48%. february, down 44%. small toabout the medium-sized enterprises, the backbone of hong kong's economy. they have been hit the hardest. and basically, they are suffering. retail space is suffering for it hospitality, tourism, you name it, with very little relief in sight. keep in mind, the court that handled the claims, the creditors claims, for unpaid bills over the last three months, which have been arrested for small to medium-size enterprises, courts reopened yesterday, so we could see creditors seeking unpaid bills and that could be further pain for the back bone, especially in

retail. shery: stephen engle, thank you. coming up next, adam neumann sous softbank over the canceled work stocksollar we deal. we have the details. this is bloomberg. ♪ ♪

shery: let's get a quick check of the latest business flash headlines.

u.s. airline stocks tumbled after warren buffett dumped his mistakes in the four biggest carriers. they all plunged, taking the s&p airlines industry index down 12%. american airlines was the second worst performer on the s&p 500, closing down almost 8%. united, delta, and southwest were also significantly down. general electric is cutting its jet3,000 jobs from engine operation as the coronavirus ravages global air travel. the losses go well beyond those announced in march and will of ge'sround a quarter aviation staff. the move includes previously announced plans to cut 2600 jobs in the united dates. -- states. resume sailingto on august 1, becoming the first major operator in the americas to outline a return to the sea. carnival will restart initially

from texas and florida with fares as low as $28 a day to entice customers back. industry shut down in mid-march when coronavirus outbreaks trapped passengers on board, some of whom died. co-founder adam neumann is suing softbank over its decision to end a 3 billion-dollar stock buying deal. coveringtt has been that. give us some background as to how this latest development came about. >> this is a development we have been expecting because there's been this growing tension over the last couple of months between softbank and we work -- wework. last fact, when wework cut its ipo sale and needed money, softbank came in and gave them the bailout package. part of that involved in agreement to buy back $3 billion in shares from existing shareholders. that is early investors, former

employees, and the former ceo, adam neumann. now, several months later, as the economy has gone upside down, softbank, on april 1, said they no longer wanted to go through with this theo and that was actually quite upsetting in particular to adam neumann, who stood to sell as much as $970 million in this deal, so we had after that announcement, we had two softbank floor directors -- wework floor directors who sued softbank, saying they reneged on the contract unfairly and we are expecting a lawsuit from adam neumann, and that was filed today. shery: softbank already paid adam neumann billion's of dollars in consulting fees and we know that softbank already put so much money in the company as well. where does the relationship stand now between softbank and wework and also softbank and adam neumann? ellen: you are totally right. adam neumann did get between

$100 million and $200 million in a consulting fee back when he actually stepped down but this will be the bigger bulk of cash he is going to get access to, close to $1 billion. and it is also -- it is somewhat complicated. there was another $1.1 billion in financing that wework expected to get from softbank that was contingent on the closing of the tender offer. relations between the two organizations right now are fairly awkward. softbank is still majority owner and biggest investor in wework, but it just seems like their support, which used to be, you know, very staunch support of adam neumann end of the company, it seems like maybe they have had some second thoughts and it is certainly creating a tense atmosphere in the boardroom. shery: bloomberg's ellen huet, thank you very much with the latest on softbank and wework. here's a look at the markets. we are seeing brought upside with kiwi stocks gaining for a second session. sydney futures up .4%.

this of course as we head toward the rba monetary policy decision. not much change expected on that front, but the treasury in australia saying that the gdp numbers for australia could plunge as much as 10% in the june quarter. the japanese yen holding steady. it has strengthened last week. we are seeing it at around that 106 level for quite some time. japan has now extended its state of emergency through may. we are seeing wti gaining ground, extending those gains that we saw in the u.s. session. in fact, on the longest week of gains in 10 weeks, that would be a fifth session of gains for crude prices as we see the pace of stockpiles billed up in the u.s. slowing down. coming up, blackrock -- co-founder later today. this is bloomberg. ♪

shery: good evening. sydney, australia, has just opened for trade. welcome to "day break: asia." stocks set to rise after wall street stages a late rally. the dollar strengthening against major peers. the coronavirus blame game sees the offshore, president trump raises the stakes again, threatening a fresh round of tariffs on china. qantas acquire nuss funding,

suspending domestic flight through june and international perations even longer. haidi: we are taking a look at how we're faring going into the tart of trading in sydney. several markets closed today, liquidity looking thin. we are seeing asian stocks poised for modest gains following the leads we saw in wall street overnight this as crude continued to gain for a fourth consecutive day and in fact the best winning streak in about 0 weeks. we are talking -- taking a look when it comes to australia, given that we have the assessment, pretty dim, when it comes to the coronavirus and the associated lockdowns will make then eeconomy. we are getting that national cabinet meeting to be attended by the new zealand prime minister later today,

potentially talking about the travel bubble between us a trail&new zealand. and we have had a -- an update that travel restrictions will be extend through the june and july. we'll hear from him at the bottom of the hour and speaking to him in the next hour of bloomberg television as well. emerging markets have had a rough time since the coronavirus outbreak began. they're now trading at historic lows. our next guest says the levels could be a clear buy signal. oining us now from the head of nvestments from aipac. we look at another round in the china-u.s. trade war as we continue to look at a completely devastating p.m.i. across parts of asia. but are valuations so rock bottom cheap at the moment that

you have to look at these opportunities? >> yeah, hi, thanks for having me. you are right. valuations are bad but while volatility remains high, has been high, we expect it to continue. i think there are a number of reasons why we have concerns in the short term. when we think about what's happened with u.s.-china trade tensions coming back as well as what sing a lot of uncertainty with regard to the impact on companies and on economies across the region and in emerging markets. so what we are doing is we are keeping our momentum exposure and being more defensive. however looking for opportunities where we think there are stobblings or sectors countries that are sold off sig canly. those will be attractive entry oints over the next 12 months. haidi: what are those opportunities in the early stage

that you're seeing potential when it comes to sectors countries? >> yeah, i think when you look at some of the countries in the region, particularly countries like india and indonesia, but india first and foremost, its financial system has been under enormous pressure for the last one to two years an we recently seen a lot of casualty there is. this issue is a nonbank financials issue. so what we're trying to do is find entry points into the indian market which favor quality domestic franchises, avor financials. haidi: i think we have lost belinda for now. that was belinda, head of blackrock investments. we'll try get her back with us. in the mentime we'll take a look at how we're trading. we're continuing to watch qantas as one of the stocks to watch here in australia. we did get the trading update from qantas a little earlier on.

really they are saying he doesn't know when international travel and whether, i suppose, if, international travel will ever resume to the levels of prescrires. they extended travel restrictions when it comes to flight cancellation it is through to july. we'll hear more at the bottom of the hour. we are watching australia, given the assessment of the economy as well as looking ahead to that decision today. not a lot expected from the r.b.a. > haidi. -- o problems brbts problems] >> let's return to our blackrock head of investments for aipac, belinda, thank you for sticking around. we wrp talking about some of the

-- some of the opportunities hat we're seeing in india also indonesia. i want to ask about india because nonperforming loans have been very high. is there a risk of more defaults across the economy and how would that play out into your market strategy? >> yeah, i think we have seen some of these casualties in india. but the issue really is in the nonbank financials. we remape cautioused on credit fees but in equities we see this as an opportunity to credit the quality domestic franchises and we're slowly starting to see opportunities to move financials. we're going to see opportunities where i think we're going to see weakness over the coming weeks, that'll be good entry points here. shery: what about indonesia. you mentioned there is a very atractive entry point. we are expecting fourth quarter g.d.p. numbers and they don't look great. >> they don't.

i don't think any way of looking great in terms of any of the numbers. that's where the concern is around economies right now and the consequences of this demand and supply shock. however when you look at indonesia, the valuations, fundamentals look attractive. it has a healthy balance sheet. falling inflation, we have spoken about this before, and it has opotential to move on a policy in terms of interest rates as well as refwormse believe are happening in that economy. looking for good entry points. we also like selective consumer discretionary stocks in indonesia. shery: what about china many of the southeast asia economies depend heavily on china. we have seen a very resilient market. >> china has been extremely resilient in the selloff. i expect that will continue given that we see them opening up the economy first. but there are a number of risks that i think we're concerned about right now. first of all collecting external

demand from the rest of the world. i think there's also potential for a second or third wave of coronavirus. i think that's a lower risk than it was a couple of weeks ago. consumption from our data still looks very weak. we see production as sort of at 80% to 90% levels. con sums something to watch. and we've got renewed tensions between the u.s. and china. we see that laying on -- weighing on the currency and we'll see it weigh on sentiment not just for china but other asian markets. shery: we still remain -- well, we still remain in the growth state of consumer discretionary in china. we are looking to add value exposure as well. but i would say i caution over the next couple of weeks as i think these risks have re-emerges an given us resilience we could expect to see a selloff. shery: how much of a concern is yuan volatility between offshore

yuan trading, pretty steadily on the way down on account of these concerns that we are going to see more investment curbs, perhaps another round in the trade war between u.s. and china. given that is such an anchor currency is that cause for concern? >> that's something that changed more cre lenty. we have seen enormous liquidity injections by the fed to support the economy and financial markets. that's dwarfing all other central banks. the unintended consequence of this is we'll probably see in the medium term a decline in the u.s. dollar. we did favor some of the asian currencies but i think with renew tensions we are expecting to see a lot more volatility and otentially further weakness. haidi: in terms of selectively within the asian e.m. space, other than india, we talked about the opportunities that you see there, what doles you see as

being -- i suppose it's difficult to talk about being risk-free in this environment but comparatively lower risk investments in this part of the world? >> i think i would say really it's more stock-specific opportunities than some of the other countries. we've seen opportunities in korea but we're now concerned about housing and credit quality in korea. there we prefer the industrials and health care. obviously i think technology is a theme that's coming out globally as a preference going forward. but that's a crowded trade right now. it's expensive. soy think with precautions. for us it's more in the macrospace aidentifying the economy where we see opportunities given by the valuations and which i think are seeing an activity surge or will see an activity surge going forward. it's important for us to always remember that markets are forward-looking. while there remains a huge amount of uncertainty, markets will start seeing thru when

countries are peaking in terms of the coronavirus or when there is better data around the impact of what's happening. haidi: belinda, thank you so much for joining us. let's get a choveg qantas. -- a check of qantas. the broader market up .7%, qantas up a little more. allen joyce was saying he wasn't sure international travel would ever rush to the levels of precovid-19. we'll have the first interview

with him after that announcement. shery: coming up werg speak to the largest toy retailer and distributor in china. up next, japan extends its date state of emergency through the end of may. how asia is dealing with the virus pandemic. this is bloomberg. ♪

>> you're watching "day break: asia." the u.s. borrowing to cover stimulus, the estimate is $3 trillion higher than announced in february when the treasury was expecting to pay down $56 billion of debt. it says the increase is drive by expenditure to help businesses and individuals in the pandemic. the blame game surrounding the coronavirus has the offshore

yuan nearing a record low. currency traders are watching washington and beijing hurl accusations back and forth about the pandemic, president trump raising the possibility of tresh tariffs. the offshore yuan sells within 1% of an all-time low in monday trading. clints are starting to reopen, with small shops reopening in spain. commuters are told to wear facemasks. italy is coming back to normal with trains and buses running again after almost nine weeks of lockdown. restaurants and cafes can work again though only in takeaway mode. meanwhile australia expects the coronavirus hit to drop g.d.p. by 10% in the current quarter, wiping the equivalent of $32 billion u.s. off the economy. retail and hospitality will be the hardest hit. the treasury warning that

australia is heading to its first recession since 1991. global news 24rk hours a day on quick pick by bloomberg, powered andore than 270 journalists analysts in 120 countries. shery: japan extends the state of emergency until may 24 saying the coronavirus measures need more time. singapore is looking to ignificantly increase testing. our correspondent in beijing has more. tell us what the prime minister said in extending the state of emergency in japan and also some of the challenges that singapore faces in ramping up testing.

we will try to establish that connection with selena, our correspondent, back in a little bit. let's get a look at the latest headlines. the car rental business has been hammered tpwhi coronavirus disruption. they have been talking to creditor bus is now preparing to file for chapter 11 protection which would let hertz stay in business while it tries to turn itself around. ferrari says super car sales are holding up. the orders remain strong even though italy's lockdown has shut facilities and may mean lost production of 2,000 cars. but eries rose about 5%, even the most iconic brands are

feeling the pressure. the coronavirus makes it difficult to assess the business outlook. we're told discussions halted amid concern about a range in financing. sources tell us the talks were at an early stage and could resume once the virus turmoil has eased. let's bring back our correspondent selina wang who joins us out of beijing. let's get over to her now. what did we hear in terms of what we heard from the prime mir sten in singapore and what further challenges does the city state really face when it comes to branching out -- to ramping up testing? >> we heard prime minister abe saying they are starting to see result bus given the number of people infected at this point, the decline in infections is not suspicious, we are extending

more than measures. they said experts would rm e-examine the information. o audio] shery: i think we have lost her again. we'll get more on the coronavirus outbreak across the world but first we have a warning of a massive hit to the economy in the current quarter. can they do anything to help cushion the blow? we'll have that next. this is bloomberg. ♪

shery: let's get a quick check of the latest headlines. stocks tumbled after warren buffett dropped his shares in the four biggest carriers.

united, delta, southwest and american all fell. american airlines was the second worst performer on the s&p 500, close do you think almost 8%. delta, united and southwest also significantly down. general electric is cutting ,000 jobs as the coronavirus ravages global air travel. it will around a quart over g.e.'s aviation staff worldwide. the move includes previously announced plans to cut 2,600 jobs in the united states. cruise line operator carnival plans to resume sailing on august 1, becoming the first major operator in the united states to outline a return to the sea. they'll start initially from texas and florida with fare as low as $28 a day.

the cruiseline shut down in mid march when coronavirus outbreak trapped panels on board, some of whom died. bank of australia is not expected to make policy changes at today's meeting even with a -- it sounds like the they are on the same page as the r.b.a. >> he is. i guess it's not too much of a surprise. lockdowns, coronavirus, all of this has already take an toll and of course the government is taking big steps to offset this. josh friedenberg in his speech later today, report on by jason scott, saying it's going to cause a 10% drop in second quarter g.d.p. remember this is the same administration that, you know, a

year ago, six months ago, didn't think the economy would need any stimulus on the r.b.a. side it might but of course coronavirus changed thinking around the world. here's one of the things he will say in his speech. notwithstanding australia's success today on the health front and the unprecedented scale and scope of our economic response, our economic indicaters will get significantly worse in the period ahead before they get better. he said the hardest hit sectors like retail and hospitality are also among the biggest employers in australia. so this is a problem. let's look at something we received yesterday on australian job listings. bloomberg chart you can see the devastation that is happening to the labor market. to payrolls as they were actually halved in april. a dramatic shift. very, very rapid shift. now bloomberg economics in fact is saying australia is going to suffer its worst recession in 90

years. this is breaking that 20-year-long expansion that australian officials have been so proud to laud. it's a thing of the past along with the rest of the world. now of course between the federal government and the reserve from us a trail yarks it delivered a fiscal and monetary injection worth 16.4% of g.d.p. they are taking some big moves. on another front, scott morrison is expected to start easing the lockdown restrictions on friday. but even with some easing of restrictions, they have to go slowly, the impact doesn't come swiftly. dark deep this big, retraction in the economy, the question is what more steps can be taken on either front, monetary or physical side, ease this even more?

haidi: will some of those measures be taken today by the r.b.a.? >> you know, they have taken some big measures. of course they got that key rate down to 0.25%. they are expected to hold that steady. their curve control which was initiated in the last meeting is -- seems to be working pretty well. at the same time the curve control for the three-year bond, the target is 0.25%. and actually with the purchases by the reserve bank of australia, there's been -- they've been pretty successful so far. we can look at another bloomberg chart. you can see on this chart, the white line, i believe, i'm looking at my notes here. excuse me -- yes. that's the three-year deal, it's gotten pretty steadily down to around 0.25% and pretty quickly. the other line you see on the chart is the -- the yellow line is the five-year bond yield.

it's a little higher but still lower than it was. so there's nothing expected from the r.b.a. today. maybe they'll give us a weaker outlook on the economy aed of the mop tear policy report on thursday. so i think that's a thing investors will be most on the lookout for. no change in key rate no change in control. shery: kathleen hayes, our global economics and policy editor. let's look at how markets are trading. asx 200 gaining ground. almost every sector in the green with tech and energy leading the gains ahead of that r.b.a. monetary policy decision. we do have u.s. futures higher, .3%. it's sort of a risk day as well as we see crowding into safe havens with the yen gaining ground against the $, up for a third consecutive session. we do have u.s.-china trade tensions rising again. very close to the $28 at a

barrel level. up next we hear from the novet e.u. chamber of commerce in china. this is bloomberg. ♪

>> this is "day break asia." asia is edging toward normalcy with traffic picking up and training running again after weeks of closure. travel is down 96% in hong kong and china. hong kong is aiming to reopen movie theaters and gym this is week as restrictions start to ease. the philippines is saying it will remain in its support for the economy. they say the inflation offers great boom for easing though the

normal policy lag means it's waiting to see the effect of measures introduce sod far. the b.s.c. lowered its benchmark rate in an unscheduled move on april 16. ma lay shah's easing of the virus restrictions means the trial of the previous prime minister can resume. all parties are told to attend court on may. proceed wgs halting after members of the defense team were said to have been exposed to the virus. law mairs in iran voted to dump the rial. state news said it would be replaced by a currency called the toman. al has been the official currency for year bus most

ranians use the tomam. this is bloomberg. shery, over to you. shery: european firms in china facing unprecedented damage to their business as the pandemic takes a toll. one told us how his members are faring amidst the difficulties. >> the situation is rather grave. we came from two years, trade war, now entering into tech war and of course now the coronavirus is sort of knocking down the last pieces of any reconciliation possible. it's really worrisome where these two economies are head bug what can we do? european business is trying to position itself independently if hat.

shery: how do you see supply chains changing? will they be more inward looking, domestic looking? and is that because of covid-19 or did it start with the u.s. trade war? >> it's labeled as navigating in the dark. we are struggling to understand where we're going to be next week let alone to prepare for next year or the years to come. but i guess that yes, we'll look into other opportunities, multinationals primarily. at the same time we can't really leave china in many air dwhrearks 50% of tpwhrobal growth, so i don't see european companies, for example, from the day tark from the surveys, moving out. we will look into new projects differently. china will not be the only story in town. but diversify case will take a while. who has the money now to establish new plans anywhere in the world. >> do you see permanent damage to global trade as a result of coronavirus? >> of course.

this is -- chancellor her keal called it the biggest situation since world war ii. we may bounce back faster. airlines may not recuperate for 10 years. we'llas unprecedented and see what happens in the years to come. >> will we get some kind of normal eventually? >> two thins. one is the awareness that you may not want to pull all eggs in one basket. you want pharmaceutical, possibly closer to home, that's a european discussion going on. then of course with covid-19, you have donald trump who is unleashing a tech war with china, trying to hold back high tech for the chinese industry. and that definitely is going to have an impact on us. we don't know to what extent. but we have to work with the

arrative these days. >> that was e.u. chamber of commerce in china president speaking with us. very positive europe beginning to emerge from the coronavirus pandemic. the danger is that weak economy mace mean some will ease restrictions too quickly. let's get more. tell us how the market is easing before we get to the market situation? >> what we have at the moment is 120 deaths in europe and that would concentrate the minds of leaders and they're having very careful to avoid a new spike. restrictions are loosening across the continent as the spread of the pathogen slows down. the german spy museum in berlin opened for the first time in week. intrars begun offering takeaway and we've got unkempt austrians

flocking to barbers. italy, spain, portugal and greece all easing some restrigses. you're settling down to a new normal and return to public life. some restrictions will remain many place for weeks or months. perhaps you'll see that facemasks are a ubiquitous sight on high streets across the continent. without breaks vary big severity and the pace differing, the economic impact will be uneven. for instance, germany's g.d.p. is expected to fall by 5.5%. in italy, the shock may lead to a 13% contradiction. figures out of there haidi: all of this coming against some dreadful economic data. p.m.i. falling to record lows. we heard the thailand april manufacturing high falling to record lows, 36.8. >> absolutely. market economics coming out with a series of data in europe,

showing confidence dropping to a record low in april. we've got job cuts, they were he sharpest since 2009. the headline of most eur of course activity 33.4. that's the lowest since they began this series. that was in 1997. take a look at the measure of output, plunged to just 18. far below the level which represents the difference in contradiction and -- contradiction and of course growth here as well. record low readings in france and italy, spain and germany the lowest in about 11 years. these are grim figures. they say it falls on governments to move more quickly to lift restrictions. that's caused huge demand and huge demand which is in the background perhaps. never forget the huge damage done to businesses, perhaps most importantly livelihoods as well. these p.m.i.'s may have plunge aid cross europe to unprecedented lows but there's an argument that this is worse

than it looks. some say these figures understate the true scale of the crisis and point to the gauge that really at the moment looks at the breadth rather than the depth of the shock. the challenge for politicians to try to get the economy back to normal without risking a second wave of protections that would necessary kit another round of destructive shutdowns bark to you. haidi: coming up next we ask the largest toy retailer and distributor in greater china how the coronavirus is affecting their business, adding to the headaches in hong kong. ♪ >> hong kong is dealing with multiple pressure points, we've seen for 13 months now retail sales have been declining consistently. >> china toys will be probably half of what it used to be. >> we're going to continue to see social unrest which really hasn't been resolved.

>> after this, the rebound should be more forceful. on the other hand the environment has changed a lot. both externally and internally. >> it's a huge change. it'll be the same as the rest of the world. kind of a meltdown if this doesn't stop pretty soon. ♪

shery: the coronavirus has people avoiding brick and mortar tores, which has changed consumer behavor, potentially even after the coronavirus is over. joining us is the executive director of the chinese toy market. is this a case of online vest versus offline even after the pandemic? >> yes, of course. it is about highly integrated model. in my view, on the margin, you will see traditional business such as traditional retailers and distributors being trands formed more than new economy companies coming out of this crisis. for example, when the crisis hit us, we are actually forced to think more about what we can do to cope with the market the chaplain:s. especially as you pointed out

what happens after. it only takes two months for people and consumers to form new behavior. therefore after this crisis we'll see new behavior. therefore digitalization is a driving force. we need to think about how we can transform ourselves into a data driven, consumer centric platform and digitize the whole organization end-to-end and therefore we will connect to suppliers, consumers. therefore we need to reinvent and reorganize ourselves. to give you an example, after the covid-19 outbreak in hong kong, in february we started the online ordering with home delivery services. covid-19 is an accelerator in omoting us to evolve quickly

to cope with the market conditions and actually during the promotion, online sales represented 20% of all sales. shery: does that mean you'll be closing some of your brick and mortar physical stores once the pan democrat sick over and ship even -- shift even more toward online? >> as i mentioned at the beginning, it's more about integration of online and offline. on april 29 we opened our fifth store in hong kong. this gives the the ability to serve the local community better and addresses some digital agenda. having an extra sell point would mean you would be able to provide better logistics and services out of our shop and serving that community. in china of course we need to

optimize the store network to increase efficiency and also provide innovative online-offline service tour customers. nowadays we are using a lot of streaming. so asking to use wechat to sell to their own customers. this is a highly innovative approach. this is very important to also keep a physical presence because especially at a younger age, toys are being -- being promoted to younger age and you know customers through physical means more than the online media. and therefore we need to have a balance between on loin and offline presence. haidi: i'm wondering how much your logistics and supply chain have been impacted by the lockdowns we're seeing globally?

>> it has had an impact overall. however in certain product categories, customers and kids, customers, kids and adults alike, have had demand on certain products. this is actually also a pattern we have seen in europe and the u.s. and therefore it's also happening in mainland hong kong. therefore as a result of sales n hong kong has remained relatively good. shery: what kind of recovery do you see on the mainland? to it likely to be more of a u-shaped recovery? is there likely to be permanent loss in demand because of consumer behavior? >> there's consistent recovery in april and into may and as you probably describe it, we are

positing a u-shaped recovery rather than a v-shape. two reasons, one is that there is only a gradual reopening of the economic activities and second, we also still need to see a full recovery in consumer confident over tide. -- over time. haidi: how is your business in hong kong doing not just from the pandemic but with the protests dampening sentiments? >> yes. that's why we have strengthened our touch point in serving the local community. it's being represented by the local demand and therefore the opening of our store would help

the community. and we are also planning to open our online shop platform in hong kong to strengthen the reach to the local community and try to diversify the risk. shery: what product categories are seeing strong demand? because i understand you don't only work with toys but also more adult driven collectibles, specialized toys as well. >> yeah, i think -- as i mentioned earlier, toys such as lego have been in demand in hong kong, mainland and in general. in mainland china where we represent more brands. puzzles. board games. have been very resilient demand during the pandemic.

shery: thank you so much for that. we'll have more on retail in hong kong when we are joined by the co-founder and c.e.o. douglas young. ♪

>> let's get a quick check of the latest headlines.

founder newman is suing softbank for scuttling a pledge to buy stocks. newman said softintank requiring -- using equality provisions to renege on the deal. he said softbank was secretly undermining the purchase. microsoft is introducing a new laptop. it says it will focus on the new windows 10x operating system on single screen devices and will await the moment to bring dual screen to the moment. they announced the update in october. it has announce nod update on the date for the dual screen. haidi: am will reopen 21 of its 22 stores in australia this date. the target date is thursday though the flagship outlet will

remain closed temporaryry --ly for innovation work. it will reopen two stores in austin rerheea but would like customers to shop online while it focuses on tech support for the time being. qantas has raised more than $350 million in funding to help with stapped fallout from the coronavirus. paul allen as the story. where is this money come sfrgsfr and we are hearing from allen joyce about the possibility of making more cash. >> yeah, allen joyce giving a call right now about the market update. he's saying there's no need for the airlines to tap equity markets. this money has come from -- it's been borrowed against three ets. qantas is struggling as most airlines are at the moment, international flight

cancellations are extend through the the end of july. domestic flight cancellations extended through the end of june. qantas laid off 30,000 and joyce is take nothing paycheck for the rest of the year. he said he doesn't know how long restrictions will last or what demand will look like on the other side and it could take years to get back to where it was. qantas is faring better than its rival virgin which is in voluntary registration and ooking for new owners. shery: there could be a resumption of travel between australia and new zealand, what's the latest? >> new zealand prime minister ja sin da adern is joining the australian cabinet meeting to alk about a trans-tasman travel. both countries have had success

in curbing the coronavirus. but there are a few hurdles that need to go into effect, including a contact tracing program between the two countries. if they pull it off it would be some encouraging news. we're coming into winter, typically a time of year when australians like to go to new zealand to ski and freezing new zealanders visit australia to get a bit of heat on australia's beaches. it's not a huge market but better than nothing and would help airlines and tourism businesses survive these difficult times. haidi: it's particularly useful even incrementally. there will be tourism related industries that continue to suffer. latest estimate hit to australia's g.d.p. are certainly pretty grim. >> yes, the treasurer, josh friedenberg, softening up the country up for an ugly g.d.p.

read next time we get it. a contradiction of 10% forecast. i believe every week australia remains in lockdown it costs the economy the equivalent of $4 billion. we do have the r.b.a. meeting today. that's not expected to deliver any great change because they're already at the lower bound, we're just waiting on more news around bond buying. certainly the economic situation in australia is get manager dire by the day. these national cabinet meetings will be aimed at discussing, potentially opening up or reopening some parts of the conomy for business again. shery: we are expecting a monetary policy decision this week. not much expected to change. >> no. as i mentioned, the r.b.a. already at the lower bound a a quarter of one percent. the governor signaled many times that this is the limit as far as he's concerned. there's no point in cutting the cash rate anything below that. certainly negative rates are not

being entertained in australia at all. the focus has switched to qe and how much of the r.b.a. is prepared to engage in. there have been a few days where they have bought no bonds at all but the bond buying program continues to be a day-by-day, wait and see react as it happens kind of approach. but the statement that comes out today will be closely followed for any thoughts that the r.b.a. has about how the economy might rebound on the other side of his. haidi: paul allen in sydney. we'll be joined by allen joyce for his first interview after his announcement. that's coming up soon. before we hand it over to "bloomberg markets: china open," let's look at how markets are trading now. another holiday crun kated

session with japan, china and now korean markets closed. we are seeing modest upside when it comes to trading in markets that are open at the moment just following the lead on from wall street as well as that sustained gain we're seeing in oil prices. coming up, we have j.p. morgan chief's emerging markets joining us. hery: plenty more guest, including the c.e.o. of g.o.d. as well. >> do stay with us, this is bloomberg. ♪

>> it is 9:00 a.m. in bay jick, shanghai and singapore. welcome. i'm tom mackenzie. david: we are counting down to the open of trade here in hong kong. our top stories this tuesday morning, the coronavirus blame game sees the offshore chinese yuan approach an all-time low. president trump raises the stakes, threatening a fresh round of tariffs on china.