haidi: a very good morning. i am haidi stroud-watts in sydney alongside shery ahn in new york. u.s. stocks fall for the first time in three days amid mixed earnings and worsening and economic data. american companies cut a record 20 million jobs last month. oil snaps a five day rally. futures slipping after doubling in value from a week ago. coronavirus cases continue to

rise as the fallout cripples the global economy. avoid itsbe forced to growth targets for the year. shery: let's get a quick check of the markets. we are seeing u.s. futures rising a 10th of 1%. this after u.s. stocks fell for the first time in three days. we have a mixed corporate bag of earnings. not to mention worsening economic data. u.s. companies cutting a record 20.2 million jobs in april. tone comingsk off from increased coronavirus cases and deaths in italy and new york. 10 year yield at the highest level in three weeks. the u.s. has increased the amount of debt plans to issue in quarterly refunding options. we have the s&p 500 falling 7/10 of 1%. utilities and energy leading the decline. let's take a look at what oil is doing. it is rebounding. 2%.er than -- higher by

this after snapping a five day rally on supply glut. saw data showing u.s. gasoline demand is steadily recovery. let's turn to our top story, the war of words between china and the u.s. intensify yet again with washington ratcheting up its criticism of china's handling of the coronavirus pandemic. >> it is pretty clear that at the front end of this, the chinese communist party misled the world. they knew more. they had an obligation to share that under the international health regulation they are required to adhere to. the road health organization rose that -- the world health organization rose that. shery: mr. pompeo in the second press briefing seemed to walk back a little bit the claims about the virus originating from that lab -- from that will him lab. how is china reacting?

>> you had pompeo reiterating the allegations that china refuses to share virus samples were details about the start of the pandemic. he said, the intelligence community is still figuring out precisely where this virus began. response,f china's the u.s. is trying to shift blame and repeated denials from a wuhan lab official who said there is no way a could have come from the lab. attacksman says these on china are part of an election year strategy by trump shared quote, mr. pompeo cannot present evidence because he does not have any in this matter should be handled by scientists and professionals instead of politicians. china is facing growing pressure not just from the u.s. from europe, africa and australia over its earlier handling of the

virus. this is as tension grows over the source of the outbreak. the world health organization says it is discussing a new mission amid this growing concern. the organization says without knowing where the origin is, it is hard to prevent this from happening again. the nationalinto people's congress, has been increasing speculation the economic target will be dropped. what are we here? -- what are we hearing? selina: china was a target for economic growth. last year, the target was a range between six and 6.5%. this year, china is on track for its lowest growth in decades economists addicting full-year growth to slow to one point 8%. that puts leadership in a the awkward position of setting in a comfortably low growth target, and unrealistically high one or

sticking it altogether. china is considering not sending numerical target given all of the uncertainties caused by the pandemic. they may give some sort of prescription shared this saves china from having to unleash more stimulus. we are expecting trade data. in march, the restarted reduction in china helped boost exports as companies were helping catch up on shipments delayed by the pandemic. that positive effect is likely going to moderate in april as countries around the world were getting hit i the virus. we are likely to see that drop in external demand and likely to have a bigger demand -- bigger impact on exports in april. haidi: our china correspondent in beijing shared we will be getting plenty of analysis on china's trade numbers due out today.

we will be joined to break down those numbers throughout the course of the morning. >> covid-19 cases have risen once again in the u.s. with above above -- with debts 58,000. as the administration continues to push for the economy to reopen, california solid's largest one-day jump. new york city says it expects unemployment to triple to 12%. president trump is backtracking on plans to disband the virus task force after acknowledging the reopening could fall or people -- could cause more people to fall ill and die. european governments allowing more shops to reopen. the fallout from the pandemic is likely to see that you fall into deep recessions with the ecb pledging to do all it can to bolster the weakening economy. russell says it sees the worst

contraction in single market history. >> it is quite clear that you has entered -- the e.u. has entered the deepest economic recession in its history. the economy is expected to 7.4 percenta record this year. year ahead, more than in 2009. >> the lockdown in the u.k. may be eased on monday even as the nation becomes the first in europe to sever 30,000 deaths from the virus. prime minister boris johnson says he will announce a new strategy at the weekend. critics say his government was slow to respond to the crisis. crashedservice sector last month amid the nationwide virus log down signaling a dramatic contraction in the economy. services pmi plunged by almost 44 percentage points to 5.4 in

april, the lowest in the world and hitting single digits for the first time on record. the service sector accounts for more than half of india's global gross domestic product. global news, 24 hours a day, on air and on quicktake by bloomberg, powered by more than 2700 journalists and analysts in over 120 countries. this is bloomberg. still ahead, oil snaps a five day rally. . we will discuss where will prices are going with mark finley. up next, we could be seeing a selloff in emerging markets. we will discuss with the head of equities, giving us her outlook. this is bloomberg. ♪

shery: the emerging markets index is struggling to break through a key level from last

month. the index has not had much success in overcoming 900 line. 898y, cutting close at shade this could be a strong recovery is shape in peril. turning us is head of equities, fei-fei li. insaw a huge selloff emerging markets, which could lead to a strong rebound. why are we seeing this -- why haven't we see this come back yet? fei-fei: their eyes -- there are lots of and certainty in this place. we do see opportunities when the market is more fearful. after the coronavirus correction, i would say emerging-market equities are priced more attractive than before. down and march coming april rebalance, u.s. stocks not

as great. it is still 26 or 27, which means the price is 26 times more than average earnings. you expect recent earnings to evaporate. it is not cheap. emerging-market equities and the others of the spectrum -- equities are on the others of the spectrum. the focus when up relative to six month ago. shery: given what are you are saying about u.s. stocks being cheap and that they were overvalued for the end of 2019, how much more difficult does it make it that every time we see a rally in u.s. stocks, this can be sustained? cannot: i believe eight -- believe that cannot. the market looks more attractive then three month ago --

three month ago. there is already some adjustments. you think about the pandemic. the last time we had seen such a big pandemic was over 100 years ago during spanish flu. one third of the world's population was infected. the public health problem was much more severe back then. during the flu pandemic, the impact on the stock market was moderate. in the u.s., that only came down by 20 percentage points. this time, i think this pandemic is only a catalyst. the market was fragile to begin with. 2019 was close to a tech bubble in 2000. people felt 2019 was a good year. the reality is the popular earning was very weak.

disconnect between economic growth versus the stock market growth. over optimism. now i think this rebound will reflect another round of over optimism. comparisons to the spanish flu early useful to the extent that there are comparative indicators. right now, we have an unprecedented level of trade reliance, globalization, dislocation of supply chain's. are all of those factors good reason to be more bearish on the recovery, which is reliant on all of those connections staying afloat? you.ei: we do agree with the stock market over optimism

comes from people's sensitivity to the biological indicator improvement. the effect -- the affected treatment shade quick -- affected treatment. stabilize the economy. dividendarnings, the payout of the shareholder, it would take a long time to recover. investors, consumers making some long-term cause i permanent adjustments -- quasi-permanent adjustment to their expenditures. the stock market, there is a chance it may take a second dip in the new -- in the near future. haidi: is it a good indicator we are hearing increasing --elihood that ahead of the that poly make -- that policymakers are likely to drop the growth target?

is that a good thing? thelees up -- it frees up to stoke and economic growth. fei-fei: i do think so. economy is very gdp focused. is withiner hand, it the importance of other aspects of the economy. releases when you quantitative criteria, less people take a break and make sure they invest into something important for the long-term. shery: what about the market level in chinese assets so far? we have april being -- we have seen april being steady at undermining performance. fei-fei: china is special in this virus outbreak. it is leading the global market in chronological order.

domestic demand for services collapsed because of the covid-19 outbreak in late january and february. 90% back tos 80 to normal. fromn see their pmi jump record low of 40 in february to 50 in march. it is beating market expectations. the price level now looks reasonable. it is not -- it is not expensive. some: we are seeing weakness in the chinese renminbi. any idea of the direction of the chinese yuan for the next month? fei-fei: there is a big uncertainty about the currency. i think the chinese central bank still has room to move their policy rates.

they perhaps are seeking to u.s. andread between china for the potential pressure renminbiom the appreciation. policy willchinese be driven toward depreciation. haidi: i am wondering if you are a longer term investor, what would be your top opportunities at the moment in terms of looking at fundamentally strong companies that may take two to five years to recover but are still going to be resilient after that. fei-fei: thank you for asking that we mentioned. that -- for asking that. i want to talk about is more like value investing should very popular strategy. value has been beaten down over

the past few years. now, value stocks are traded one tends of growth stock price level, which was never seen during the tech bubble. the rebound can be very powerful given how wide the valuation spread is. value has been so surprisingly unloved through this. up on daybreak australia, salesne sales -- peloton jump. we will get the latest on those earnings and others after the bell. this is bloomberg. ♪

haidi: a quick check of the

latest business flash headlines. uber is cutting more jobs and cutting 180 driver centers. workforce cut. ride-hailing down significantly. 40% of driver centers will close down. -- green light sign teach them how to use the app and help passengers. top rental car companies are talking about canceling car orders as the pandemic hampers demand for travel. hyundai has confirmed it is redirecting vehicles that were planned for fleet customers. automakers are struggling to move new cars and can no longer rely on until companies to bolster sales. singapore airlines rose the most in three decades, surging by as much as 21% as investors bet fundraising and easing of restrictions will help the

carrier survived the pandemic. it was the biggest gain since 1987 before it pared back to 6% of the close. raisedh, singapore air $6 billion through a rights issue and convertible bond. of lyft ares soaring higher than 15% after a reported narrowing of laws. peloton also -- also rounding. so many companies have been reporting grim news. >> it seems a lot of investors are white knuckling these earnings reports. when they hear not so bad news, the stocks takeoff. take a look at the sea of green. you will see what we are talking about. off out of thek blue. there should be a panel where a lot of the stocks or we can get

to that. tullio is one of the software companies that was rising on communication software. there you go. that is the first chart. communication software. accounted for 7% of revenue. a short increase in revenue because education needs were part of what lifted it. lyft narrowed its loss. that took off. peloton struggled out of the box. it is a home exercise company. plugs into live bicycling classes. reported a 66% surge in sales. the shut in has been very good for peloton. paypal went through its earnings

forecast and reported sales in the first quarter also missed. that is suggesting the shutdown of business and job lessons is impacting spending. retailer,nd craft they had a 7% decline in post-market trading. they are one of the few companies that came out and said, this increase in demand we are seeing may not last. that may be something a lot of investors do not want to hear. it was mostly positive for these after-hours stocks. let's talk about some of the earnings in the regular session. gm was a rare bright spot among the autos. >> it was. general motors surged in early trading in the day. reported better than expected quarterly earnings. that is not what many expected coming from a big auto company. they had full-size pickup

deliveries soaring 27% in the first couple months. truck deliveries have been strong. in the regular session, it was up almost 3%. it has been a rough road for a lot of these auto companies. the latest earnings report particularly in a challenging time came in strong. york: su keenan in new with the latest on earnings season. institute'saker market family says we are seeing signs we have seen the worst of the destruction. let's take a look at how markets are setting up as we get towards the end of the week. we are seeing upside when it comes to trading in new zealand. this market has been so resilient. 1%. quarter of

extending on yesterday's a 10th of 1% gained. this despite global headwinds concern about stowing economies and the prolonged extension of economic dislocation from the pandemic shutdown causing the selloff on wall street. outlookeeing a bleaker and it comes to asian futures as well with australia, japan and hong kong all tracing lower. we are seeing a little bit of recovery when it comes to new york crude in the asian session. this after we had that rally's oil infter prices for the past five days alone. more to come on daybreak ghost really a. this is bloomberg. -- on daybreak australia. this is bloomberg. ♪

shery: you are watching daybreak australia. let's take a look at how markets are trading. we are seeing qe stocks gaining for a fourth consecutive session. the kiwi dollar under a little bit of pressure. he had seen a little bit of strengthening after most jobs data beating estimates. wti rebounding after snapping a five-day rally. u.s. futures and sydney futures under pressure. see oil snapping the five-day rally over supply concerns outweighing economies gradually reopening.

petroleum stockpiles hit their highest level ever. formerdiscuss that with -- let's discuss that with mark finley. we did see a little bit more of a recovery when it comes to new york traded crude. this givelly, does credibility to what we saw in the last five days, the doubling of prices after the historic collapse that was a dead cut balance because the fundamentals in the market are so skewed to the downside as a result of what is going on in the supply and demand? mark: i think the fundamentals are clearly getting better. we are not out of the woods yet. simple math is that while chinese demand is beginning to recover, u.s. demand has begun to recover, opec supply because have begun to take effect, but

there is still too much oil. as we saw in the u.s. inventory data, every day that supply is bigger than demand, and didn't -- inventory spills. somewhere out there is a capacity limitation. if we had that, there is nowhere for the surplus to go. you have to worry about that capacity limitation and that posing and other downside risk to prices. know a loto not about visibility over what the global economic recovery is going to look like. it seems fairly certain that a v shape recovery is mathematically impossible. it is going to be a staggered recovery and maybe stopped and started. what does that mean for how impactful that is for the oil price dynamics or do we need to see more curves? mark: that is a great question.

you are exactly right. the fundamental driver of the story is the demand one. that will determine the pathway going forward. as we saw in the u.s. data today, two steps forward, one step back. u.s. demand fell last week after rising a couple of weeks. shery: to your point on the supply side of things, we are fundamentally oversupplied. does it still mean the peak supply has been reached? that we sell the worst of the supply -- that we saw the worst of the supply glut already? mark: i think we have seen the worst of the supply gut. we are now seeing rapid declines in u.s. production. falling at the fastest rate we have seen outside of hurricane reductions. we have seen closures of production in places like canada and brazil. nursing coordinated opec

production cuts. all of that is happening. it will still take time. as long as the market remains in surplus, even if the surplus is smaller, inventories keep growing. that is the source of risk. shery: it is -- is it a problem the federal reserve in the u.s. has pledged to backstop high-yield corporate credit given a lot of them are energy companies and perhaps for a market balance to be reached, he would have needed some of these energy firms to go bust to see some consolidation in the market? tell.it is too soon to even expanded federal reserve credit is not help much when the cash flow is underwater everyday. what would -- we would have to wait and see. we are seeing companies now my cutting investment. the u.s. rate cut is down by

over 50%. wells.e closing existing the prices are less than their operating costs. expanded lines of credit, some of these companies were hedged already anyway. yes, it will make a difference, but it is small compared to the size of the challenge by the low oil price we have seen. this change the dynamic in terms of -- for a number of years, we were talking about u.s. shale as the swing producer. that i never really bought proposition. it evens, we have seen now. the first movers are opec. there the groups that can elect to dialogue reduction up and

down much more quickly than the u.s. system can react. that is with the u.s. system responding faster than it has before. ways au.s. is in some more elastic source of supply, but it can never play the role that opec does a terms of choosing to dial-up production and dow down production very quickly in -- and dial down production very quickly. the u.s. will always be reacting to the market. they then sabotage efforts by opec-plus daca we have heard from some shale drillers that they could get back in. they could ring a well online in a couple -- could bring a well online in a couple months. is that a risk in terms of a relapse to the market? mark: it is a risk, but some shale producers might be able to

do that. i think judging by the fact the industry as a whole has been failing to return cash to its investors for several years now, that would suggest on average, that is unlikely to be the case unless the industry can continue to drive down costs and drive greater productivity gains, which is how they survived the last downturn. in recent times, the avid -- the evidence of the industry's ability to drive the productivity gains seems to be slowing down. shery: we are hearing there is a fleet of oil tankers carrying saudi oil to the u.s. this would further pressure the price of oil. have heard president trump promising to rescue the oil industry about two weeks ago when we saw oil prices going to negative. a kind of action could we see on this? some have speculated we could see tariffs on saudi oil. mark: those are all great questions.

i think this is moving so fast, it is hard to know for sure. said, hepresident has made an unprecedented intervention to get the russians and saudi's talking again on the biggest production cuts we have seen. beyond that, he has said what we are going to do is let the market work. the reality is that in normal times, they knighted states does not import that much oil from saudi -- the united states does not import that much oil from saudi arabia. shery: unprecedented times. thank you very much for your time. up next, after enjoying success in curbing coronavirus, australia considers further easing. this is bloomberg. ♪

>> you are watching daybreak australia. u.s. has again rejected claims of a coronavirus cover-up, saying washington has no evidence to support the allegation. secretary of state mike pompeo says there was enormous evidence the virus escaped from a lab in wuhan and the communist party conspired to keep it a secret.

beijing says the criticism as part of president trump's reelection strategy. to bes leaders are said considering abandoning a numerical target for growth given the uncertainty of the virus disruption. the delay may alter anchorage talk of a general goal of expansion. worstis facing its economic performance since chairman mao's time. the treasurer is boosting the amount of debt it will issue to provide government funding amid a looming recession. it explains to unction the first 20 year bond on may 20. the administration sees a 40 percent contraction. says four more people were arrested after sunday's failed coup attempt.

showedesday, state tv video of a captured american. he was one of two u.s. former special forces soldiers. washington denies any involvement. global news, 24 hours a day, on air and on quicktake by bloomberg, powered by more than 2700 journalists and analysts in over 120 countries. i'm karina mitchell. this is bloomberg. australia's national cabinet meets again on friday with an easing of economic crippling restrictions on the agenda. paul allen joins us with more. what sort of changes might we see? paul: the details are unknown. we will find out on friday evening. the intention is to get people back to work. the expectation is we are going to see the restrictions on how many people are allowed together at any one time. in western australia, a two person gathering has been

extended to 10 person gatherings. it is expected we will see that rolled out nationwide. because of the way the national cabinet operates, will be up to each state to decide what it wants to do. in new south wales, we will see a staggered reopening of schools over the next few weeks. all of this is being done in line with health evidence. cases of 6875 coronavirus cases in australia. the country has enjoyed relative success in getting this under control. infectingted case is less than one new person, which is where the medical offices once things to be -- medical office wants things to be. they do not want to be in session -- in situation where the restrictions get put back on later on. they're going to be very careful

in the way they approach this. shery: we will get a read on the impact of the virus pandemic in australia with trade data for march. what can we expect? paul: these numbers are going to be quite interesting. the bloomberg survey is for the trade balance to improve to $6 billion for the month of march. that is a 25% increase from what we saw in february. this is going to be driven by a rise from china -- rise of iron order exports. we saw a significant lift in iron ore exports after steep declines in january and february. gold.-- coal, nonmonetary imports also increasing. this is mainly due to consumer-electronics. the trade balance is expected to improve when we get those numbers in a little over two hours. johns hopkins university

assistant professor of emergency nervous says she has but cautiously optimistic about the price tag -- about the prospect of easing restrictions. prospects about the for a potential vaccine. nursesprimary state of is exhausted. everyone is working incredibly hard to keep up with the patient load, keep up with the demands of using the ppe, keep up with working overtime to make sure units it turned into covid units and patients are safely cared for. grateful foribly the work of our nurses. . >> what i notice about emergency medicine as you try to learn every step of the way, what do you know now about the therapeutics of this virus verses where you were six weeks ago? lauren: we just conducted the

first phase of the act trial, which is the nih adaptive trial. we are starting to see some positive data, which is exciting. we're learning a lot about some of the other drugs that have been tried. hydroxychloroquine. we're learning about fronting of patients. there is a lot of studies underway throughout the hospital. >> talk to me about how first responders are feeling about the president and the administration saying they want to reopen the economy even if it means more rise in deaths and infections. much of the population do we think had covid? do we need more testing to understand in what phase we are exactly? lauren: absolutely.

the first word that comes to mind is scared. when you're in the hospital everyday and you are seeing these patients come in quite sick and knowing their ours -- knowing that so many of the population that are not infected yet and who may be as states and locations start to reopen, we get really nervous. we are starting to see a bit of an easing in the number of cases in maryland. we approach that easing with cautious optimism because as you know, as you start to reopen, you will see a spike in cases. in several of the states that are starting to see restrictions -- darting to ease restrictions, their cases are on rapid increase. they are to ease restrictions. their case counts are on the rise. in the health care setting nervous that the

restrictions will be eased to quickly and we want -- eased too quickly and we will see a massive spike in a the number of cases. >> do we have more drugs now and how close are we to a vaccine? lauren: we are still a ways away from a vaccine. onryone is working overtime the development of a vaccine. earlier lastummit racing tofically on get a vaccine up and running. ofis a true tour de force global efforts to develop a coronavirus vaccine. on the therapeutic side, we have remdesivir. we saw the positive data come out from the first phase of that clinical trial and several other clinical trials around remdesivir. it is definitely looking promising. the data are looking promising,

that is an iv infusion drug. people have to be given it in the hospital. there are a lot of people working on drugs that can be given or leave, drugs that can be given in the outpatient setting. we have a long ways to go. haidi: john hopkins university professor, lauren sauer. also to come, we will have more on the outlook for markets as we focus on teixeira -- on thailand exclusively. plenty more ahead. this is bloomberg. ♪

inry: japan's markets reopen over half an hour. take a look with adam haigh. are we going to see a fair amount of catch up with japanese equities coming back from holidays? we had seen the u.s.-china trade tensions escalate, not to mention the extension of covid-19 prevention measures. adam: i think it is fair to say it is not the best environment for the equity board to be coming back to. the overarching theme in markets over the last three days has been a sense of trepidation and

a sense of the escalation of the ongoing u.s.-china tensions that have ratcheted up. the equation for the japanese economy is very much continuing to be a very difficult one to assess. how does the pandemic play out in the local economy with the increase in restrictions going a step further? in appetite for taking risk japan is traditionally a high -- when people want to take a risk in asia, they do look to japan. people will be looking at the outset to sell off some positions. we are not expecting a big selloff when the tokyo market gets going. it is looking like it will be a bit of negativity. at the moment, that is where we are in terms of global markets. we have had this big rally off of march lows. there is the sense that while

many investors are trying to look through the earnings for the rest of this year and try to make an assumption about 2021 and 2022, the cost is so much uncertain about the economic outlook. it is not the time to be taking a risk. what about the earnings picture in japan? how is that stacking up and what are you looking ahead to? adam: there is still plenty of earnings to come of course. you have the likes of nintendo. some big firms still to come out. what we have been hearing across the board in many sectors, big tech may be the only one standout that has not been bad. the analyzing of two earnings prospects moving forward. are there structural components of some companies that will never recover back to levels we had prior to the pandemic or is

it still a sense of trying to understand what companies are going to do, whether they need to reduce staff levels further, whether they need to reposition for the world coming out of the pandemic on the other side. they should be more fodder for investors to get hold of from these learning reports that are due to come out. it is a tricky environment if you want to try to add risk at the moment. the other thing that is worth mentioning is we have had the strengthening in the local currency. the japanese yen has risen have a percent or so since the friday close when tokyo went into the holiday period. we are looking towards 105. we closed at 107 or so on friday. outlook forky the japanese market. bloomberg global

markets editor adam haigh. get you some business flash headlines. says it sees flights returning to have his network by the end of june. it hopes to have 80 destinations in service by then starting with connections from doha, london, chicago and hong kong. it warns it will have to cut an unspecified number of jobs because of the coronavirus follow. profitability to despite the coronavirus impact. over $85 in at just million in the first quarter. that is more than 60% improvement on last year. the pandemic is hurting demands. 's adjusted sales climbed 23%. they are accustomed to growth rates of at least 50%.

shared aurged generated or than $524 million in revenue through march with an thousand connected users. ,t is also raising its forecast seeing more than a million subscribers in 2020. shares were mixed in late trade. coming up, will be hearing more on the markets. marvin lowe will be with us. we will be joined by and equities managing director. he will be talking us through nintendo's early earnings. 20 more to come on daybreak asia. we are looking ahead to the start of training -- start of trading. tokyo returns to trading after three days of holidays for japanese markets. we do have australia futures as well as tokyo and hong kong futures pointed to the downside. new zealand is seeing some

positive trading for a fourth straight session of gains. lots more ahead on daybreak asia. this is bloomberg. ♪

shery: good evening. i am shery ahn in new york with haidi stroud-watts in sydney. we are counting down to market opens in australia, japan, and south korea. welcome to "daybreak asia." u.s. stocks fall for the first time in three days amid mixed earnings and worsening economic data. american companies cut a record 20 million jobs last month. oil edges back in asia after snapping a five day rally as the global glut balances signs of rising demand.