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. investors remain concerned about the lack of storage.

coronavirus cases continue to rise as the fallout cripples the global economy. china may be forced to abandon growth targets for the year. we are just getting some news crossing the bloomberg when it comes to expectations for summer earnings out of -- we are expecting a pretty down quarterly in terms of the impact for the asia-pacific. we will be bringing those to you shortly but in the meantime, we have data out of south korea. shery: we are getting the current account numbers for south korea for the month of march. current account surplus coming in at 6.2 $3,000,000,000 fine -- 6.23 billion dollars. the current account surplus narrowing a little bit from the previous month of february. also, the month of february being revised lower to $6.4

billion. the goods trade balance coming in at $7 billion. the surplus was a little larger than the previous month. given that we do have the coronavirus pandemic and april export numbers really taking a hit, the march current account numbers not looking too bad. we had seen the march exports and import numbers marginally dipping into the red, but still pretty resilient when it comes to that month. of course, the key question is what happens next given that the lockdown and the coronavirus impact has been more severe in april than in march. let's take a look at how markets are trading at the moment. we are seeing u.s. futures under pressure, down .2%. this as we saw u.s. stocks falling for the first time in three days. mixed corporate earnings, worsening economic data, not to mention president trump pushing for reopening but also acknowledging it could lead to more deaths. kiwi stocks gaining ground for a

fourth consecutive session. we did get jobs data beating estimates in new zealand. sydney futures under pressure. we do get the aussie trade numbers as well later today, and we are getting a bit of a mixed picture overall. japan back from holiday. the japanese yen, the strongest in seven weeks, haidi. just getting the lines crossing the bloomberg when it comes to budweiser reporting that first quarter loss of $41 million. the revenue for the first quarter coming in at $956 million. first quarter adjusted ebitda and $171 million. the change in dear volume -- volume isume -- beer a decline. $41 million for the first quarter. in the meantime, let's take a look at china. we have got rescheduled mpc

going on, and of course, the latest that we have heard when it comes to what beijing's expectations are of growth. the fact that we could potentially have this dropping of the numerical gdp target, which would really be a pretty historic decision. let's bring in selina wang, our china correspondent, who joins us out of beijing. this has to do with the coronavirus disruption. the economy is setting up for an historic collapse in growth so what more are we expecting in terms of potentially what this growth target could look like if they are not going to release a number target? selina: that's right. normally, the national people's congress will set a target for annual economic growth. last year, the target was arranged between 6% and 6.5%. this year, china is on track for its lowest growth in decades. economists predicting growth

will slow to 1.8%. positionin this awful of setting and uncomfortably low growth target, unrealistically high one, or all together. they are not sitting this numerical target. they may give some sort of description. this would be a big deal, the first time for chinese leaders not to issue a numerical target in at least two decades. this does free up china from having to release significantly more stimulus to meet a certain growth level. this is a big concern from chinese leadership because they do not want to feel another debt bubble. i want to point out chinese trade data we are expecting later today. we did see the restart of production boost exports. companies are catching up on shipments that were delayed by the pandemic. that positive effect is likely to moderate for april data. countries during the period were really suffering from the virus

so the drop in external demand is likely to have a bigger impact on exports in april. shery: washington maintaining its criticism of china's handling of the pandemic. let's hear what the secretary of state, mike pompeo, said earlier today. secretary pompeo: it is pretty clear that at the front end of this, the chinese communist party misled the world. that is, they knew more and they did not share it, and they had an obligation to do so under the international health regulations that they are required to adhere to underworld health obligations, organizations. shery: where are we when it comes to this war of words? selina: interestingly, at that press briefing, mike pompeo did back off on the theory that the virus came from a lab in wuhan. he only brought it up when asked and said "the intelligence community is still figuring out precisely where this virus began." we did for the first time get a response from china from their

foreign in terms of this lab theory and they have been sort of sticking to the line that the denial from top lab officials. there is no way the virus could have come from the lab. a spokeswoman said "mr. trump cannot resent any evidence because he does not have any. this matter should be handled by scientists and professionals instead of politicians out of needs."mestic political china is facing growing pressure not just from the u.s. but from countries around the world, europe, africa, australia, over its early handling of the virus and for the aggressive reaction by a chinese diplomats. are hearing some response from the world health organization, which says it is now -- the organization said the without knowing what animal origin is, it cannot prevent this happening again. shery: selina wang in beijing.

let's now turn to karina mitchell for the first word headlines. karina: thank you. covid-19 above 72,000 as the administration continues to push for the economy to reopen. california saw its largest one-day jump in new cases and new york city says it expects unemployment to triple this year to 12%. president trump is backtracking on plans to disband virus task force after acknowledging a reopening may cause people to fall ill and die. europe is edging towards using virus lockdowns with governments allowing more shops and businesses to reopen albeit with a continuing emphasis on social distancing. the fallout from the pandemic is likely to see the e.u. fall into a deep recession with the ecb pledging to do all it can to bolster the weakening economy. brussels says it sees the worst contractions in single market history. >> it is now quite clear that the e.u. has entered the deepest

economic recession in its history. the e.u. economy is expected to contract by a record 7.4% this year, 7.7% in the euro area. more than in 2009. karina: the locked down in the u.k. may be used on monday even as the nation becomes the first in europe to suffer 30,000 deaths from the virus. prime minister boris johnson said he will announce a new strategy at the weekend, having returned to parliament for the first time since falling ill to covid-19 in march. critics say his government was slow to respond to the crisis. russian president vladimir putin's approval rating hit a record low amid the coronavirus fallout and the collapse in oil prices. a poll says support dropped to 59% in april from 63% in march, the worst rating since he came

to power. the imf says the russian economy will contract by at least 5% this year with unemployment doubling to 10%. global news, 24 hours a day, on air and on quicktake by bloomberg, powered by more than 2700 journalists and analysts in more than 120 countries. i am karina mitchell. this is bloomberg. haidi. still ahead, the u.s. boosts debt sales to a record and plans to issue its first 20-year bonds in decades as it deals with the pandemic hit. treasuries are on the way down. coming up next, earnings continue -- continuing to be revised down, guidance continuing to be withdrawn in record numbers. our investors responding -- are investors responding to positively -- too positively? we discussed that with state street's marvin loh. this is bloomberg. ♪

>> despite the markets recent

rally, some investors are recommending more caution. our next guest says he sees warning signs in many asset classes. joining us now is state treat global macro strategist, marvin loh. great to have you with us. how concerning is it that we continue to see downward earnings revisions across the world in different markets? this gtv chart on the bloomberg showing how those revisions downward are accelerating. of the pushing out recovery of the earnings recovery concerning, to you, and what does it spell out -- is this pushing out of the earnings recovery concerning to you? marvin: it shows how difficult it is to come up with a number. you know, to a large degree, what companies are telling us is that, particularly with the amount of removal of guidance, that they just cannot predict how things are going to evolve. and when you see these big revisions and estimate -- in

estimates, it plays to that view ultimately that it is very, very hard to figure out what earnings are. the big concern for me is that the market really does not seem to be asking for a premium given all of that unknown that still seems to be out there. if we continue to get really bad economic data, as we have so far, it does not seem to move markets that much, but given how expensive the markets already are, if we do get good data, is that already priced in? think: you know what, i an outcomein degree, that starts to show growth returning to normal, if you will, near the end of this year into the beginning of next year is what you are seeing in equity valuations. when it comes to earnings estimates, we see growth returning in the first quarter of next year, and you know,

pretty big growth in the second quarter, given that quarter we are in right now is going to be the worst. kind of the crossed signals from the bond market in terms of where yields are from the commodity markets in terms of volatility and oil, and even things like old are saying you might be getting a little bit ahead of yourself. -- gold are saying you might be getting a little bit ahead of yourself. haidi: -- given the levels of said involvement, and how i guess does that preclude investors from being able to see the difference between, you know, solvency and liquidity from the fed? marvin: there's so many programs out there. and a lot of them have not really begun or have not really been utilized to a large degree because people are just ultimately trying to figure out what they owe mean. in terms of liquidity, the fed has done an incredible job ultimately getting the markets to work again. there were certainly periods in the middle of march where things

felt broken, so you know, ye oman's job on their part but implying they are going to effectively save every company with either corporate bonds or cp purchases or a litany of other markets they are going out there, it is a little bit of an aggressive thought process. i think their main goal was to make the markets function. they are functioning again at this point. and now, we need -- we are going to be dealing with the cash flow that companies either are going to have more not have, and really -- or not have and the amount of debt out there at the corporate level, which was really high before the virus hit. over the last two months, we have seen a record amount of additional issuance in terms of their balance sheet, but it still increases their debt load by large margins. the other thing is sort of how you are looking at how

richly price the market is compared to how much uncertainty there is in the outlook. if you are a longer term investor trying to look for value at this point, do you turn to value stocks that have been so unloved and this pandemic rally -- in this pandemic rally? marvin: i don't think so. i think the only thing that we know is that if you have got a good balance sheet, and you have got cash flow that is continuing to come in and or you have got you have enough cash on your balance sheet to go through some rocky periods, that gives you competitive advantage. whether it is reopening the u.s., reopening in europe, one of the big questions remains how society re-engages with one another. we have not had to deal with the sociology aspect that these kind of questions posed. so that -- pose. so that kind of feeds into the

unknown. i think it will be a rocky, up and down process, so i want companies that actually have the wherewithal from the balance sheet perspective to be able to deal with the. up and down's value stocks -- the up and downs. value stocks often do not have the cash flow and the balance sheets like some of the other sectors. shery: talking about those questions, how much of an issue could it be if the post pandemic world actually brings a world where there will be more focus on the minimum wage at the government level? because we are now continuing to see that these essential workers are really being paid minimum wage, but at the same time, you have got the federal and state unemployment benefits that pay out more. so even if you do have a reopening of the economy at least here in the u.s., many people may opt not to go back. will that put pressure on companies as well? marvin: absolutely.

absolutely. it kind of adds into one of the many unknowns that are ultimately out there. you know, right now, no one is arguing -- and they should not -- that we need to kind of support, really, the economy, buttry to limit the damage, once the gust settles, all of these larger, structural issues that have been -- dust settles, all of these larger, structural issues that have been here since the crisis are coming to a head. all that you mentioned is absolutely true. haidi: state street's marvin loh with us. appreciate your time. coming up next, budweiser posted a loss in asia as it feels the sting of the pandemic. volumes down by half. we get the results from the world's largest brewer, next. this is bloomberg. ♪

haidi: -- first-quarter earnings. sophie kamaruddin is in hong kong with all the details. what are the key takeaways in terms of how ugly this period was for the company? after: after a b and z -- their disappointing first quarter, it is a disappointing start to the year for the world's largest brewer. they reported a loss of 41 million dollars compared to the profit of 240 million seen in the corresponding period last year. revenue dropped by 40%. 10% drop inlagged a that metric given the significant impact it sought to china sales but that widened as the repercussions from the pandemic spread and the first quarter, weighing on the beverage sector, sporting erents, and nightlife w

reined in. the shift to cheaper brands, anding volumes, and bars restaurant closures have been a drag. they did say business has recovered since mid-march, driven by a recovery in china and south korea, which is a key market which is reopening. to emergingxposure markets could make it vulnerable to more pain after some countries imposed lockdown bans. headwinds remain on the supply beer does not necessarily fall under the essentials category. they had to close lands in mexico, south africa. it has gotten permits to resume operations at most india sites. bear in mind that those three markets account for 12% to 13% of ab inbev's sales. taking a look at how shares have performed year-to-date, it is the biggest lagarde on the stoxx 600 s&p index, with added

pressure coming from concerns over debt as well. shery: what about the company's credit outlook? sophie: cash flow is absolutely key given that ab inbev's leverage has risen back to elevated levels. it prompted s&p to place the company on downgrade watch in march. the brewer has taken steps to conserve cash, including cutting its dividend by 60%. in this recent report, saying it will continue cost reduction in the second quarter, but if leverage does stay about four times to 2020, it could follow through with a cut, aligning them with moody's, and it could triple peers. shery: sophie kamaruddin with the latest on ab inbev. let's get a quick check of the latest business flash headlines. lotonon surge -- pe surged.

it generated 524 million dollars in revenue through march with almost nine hundred thousand connected users. the company is also raising its forecast, see more than one million subscribers through 2020. shares were mixed in late trading. beach investors worst fears and is pushing closer to profitability despite the coronavirus impact. oveross came in at just $85 billion in the first quarter, but that is more than 60% improvement on last year. even so, the pandemic is hurting demand. climbed 23%d sales on the year. the company has been accustomed to growth rates of at least 50%. paypal is the latest in a long line to withdraw 2020 guidance after first-quarter sales missed estimates. total payment volumes rose 19% billion.arch to $191 however, adjusted earnings fell share to $.66.

paypal says figures for april are showing significant improvement as the world went digital during lockdowns and social distancing. working from home has become the new normal for millions of people around the world, and some jp morgan staff find it becomes more permanent. daniel pinto says some employees could work more remotely on a rotational basis. in one vision of the bank's post pharmas world, it would reduce demand for office space and support sustainability and would help save money. let's get you a quick check up on how markets are trading at the moment. we are seeing u.s. futures under pressure, down .2%, extending those losses that we saw in the u.s. regular session. we had a mixed bag of corporate earnings, not to mention worsening economic data. private payrolls merely showing that u.s. companies cut a record 20 million -- payrolls showing

that u.s. companies cut a record 20 million. we are seeing a little bit of pressure for the kiwi dollar, but this of course after strengthening this week. we had first quarter wage and jobs data beating estimates. sipping futures also down .9%. we do get the trade balance coming up later this morning. mckay futures unchanged -- nikkei futures unchanged although the japanese yen is at the strongest level in seven weeks against the u.s. dollar. coming up next, the u.s. budget deficit could quadruple this year to nearly $4 trillion. more on the upcoming refunding auction in a moment. this is bloomberg. ♪

karina: this is "daybreak asia." i am karina mitchell with the first word headlines. china's leaders are said to be considering abandoning a numerical target for growth this year given the uncertainty of the coronavirus disruption. the delayed national people's conference later this month may alter its language to talk of a general goal for expansion. last year's target was arranged from 6% -- was in a range from 6% to 6.5%. rejected u.s.n claims of a coronavirus cover-up, saying washington has no evidence to support its allegations. mike pompeo said there was "enormous evidence the virus escape from the lab in wuhan and

that the communist party conspired to keep it a secret." it's criticism is part of president trump's reelection strategy and has no basis in fact. india's service sector crashed last month amid the nationwide virus lockdown, signaling a dramatic contraction in the economy. services pmi plunged by almost andto 5.4% in april, that is the lowest in the world on record. the service sector accounts for more than half of india's gross domestic product. president trump has vetoed legislation that would require clearance from congress for any military action against iran. the senate passed the motion in february with some republicans voting with democrats. it was then approved by the house in march. describing the resolution as "insulting," the president said it is based on misunderstandings of the law. 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: the u.s. treasury is preparing to issue a record amount of debt as the deficit heads towards $4 trillion. our global economics and policy editor, kathleen hays, is here with a look at next week's quarterly refunding. how big is it going to be? kathleen: well, it is going to be the biggest we have ever had. as you just said, you have a $4 trillion deficit. you have to finance it somehow. in fact, let me write this down for you. quarterly refunding is selling of three-year notes, 10 year bonds, and then 30 year bonds, and the numbers are definitely higher. $42 billion of three-year notes, $32 billion in 10 years, $22 billion of the 30 year -- the

longest maturity. banks love that. that is the one that always gets snapped up. that is a total of $96 billion. $84 billion was the last quarter. that was held for about five quarters. they are going to increase nominal maturities of two, three, 5, 7 your notes, everything in the coming -- five, seven your notes, notes.ing -- seven-year they have a 20 year bond on may 20, $20 billion worth. the treasury is boosting often sizes as it gets ready for a 40% contraction in the economy. as it getssizes ready for a 40% contraction in the economy. if you are going to end up with a bigger budget deficit. let's take a look at a bloomberg chart here. -- can see that the deficit only about a third of the way left on the chart.

it got larger in the great financial crisis. coming out of it, the deficit was getting in better shape. the last 1, 7 hundred $44 billion, up to $4 trillion, -- the last one, $744 billion, up to $4 trillion. we have a lot of debt to sell, so they are going to sell longer-term debt to come and take advantage of the crazy rallies. it is going to make a financing cost just a little better. in terms of the market reaction, investors took over the sale. kathleen: i think it would be interesting to see if it continues, right, haidi? they respond to much longer term debt, a bit more than people thought. we did see them avail themselves. 0.26. the 10 year yield, 0.72%, the highest we have seen. the 30 year bond, 1.40%.

yes, there was definitely a reaction. what is interesting about the refunding is it has always been considered a gauge of investor appetite for u.s. debt, particularly the longer term debt, so this is considered a big deal. also, your auction sees selloffs in treasuries. dealers want to cheapen it up. they want to make it easier to sell to investors. so a lot going on, a lot of vols here. definitely, this is going to be an interesting quarterly refunding to watch. haidi: our global economics and policy editor, kathleen hays, there with the latest. let's get you some more across the dealmaking side of things. across industries, we are seeing deals coming to a standstill. businesses closing, workers staying at home. as more parts of the world reopen, investors are assessing the outlook for m&a.

with bloomberge about what he is calling the interim normal. >> the job has been incredibly busy during this period of time. there is no commuting. there is nothing that gets in the way, sitting around an airport. so we have had incredible client contact and connectivity right now, and the days are longer. there is no difference between a monday and a sunday at this point in time. they all blend together, as i am sure they do for you and your audience. >> i have spoken to a lot of folks in your industry who are quite enjoying not being on a plane every weekend, working from cape cod in the hamptons. you have 2000. some bankers, under your wing, are working on different types of deals. is this going to be more normal for them to just be working from home? leon: i think it will be normal in the interim, but to be honest, people missed the social

and business interaction of being in the office and being with their clients. and as you know, i travel a lot, and there were moments when i could have done less of that, but who would have thought that i would say right now, i am dying to get on a plane and do a business trip here right now? after eight weeks, people are tired of working at home, but on the other hand, it has been very efficient and the interaction amongst all of our partners has been fantastic, between zoom meetings and all the video interaction. people have really adjusted very well, and i think we will work our way through this interim normal and then there will be demand to get back into having human interaction, both flying to places and doing meetings, but it will take a while for it to get there, and in the interim, it is working very well. >> speaking of flying across the world, earlier this month, we spoke to your colleague over in europe, and one of the things he told my colleagues was that he believed there would be bigger national champions created in

europe after -- in light of this crisis. but if you look back here in the gotten bigger. there is some talk about the big tech companies looking to deploying more of their power into deals. at what point does -- start to kick in here? at what point does the big get too big in america? leon: hsr and antitrust is alive and vigilant here right now. is correctmanolo that you will see more european champions and there will be into europe consolidation and i think you will see a rising in m&a activity in the u.s. as some of the large companies consolidate potential weaker players and also, depending on the sector, take into account this crisis in order to broaden out their business and perhaps be less reliant on any one that they had.

i think that is coming and i think it is going to come in probably three or four months, not so early right now, but we do believe that you will start to get a return of effectivity, as you look to the.com crisis -- dot-com crisis. >> some of these smaller tech companies were waiting for a public exit with the ipo markets now frozen. take airbnb for example. we spoke about it earlier before. airbnb raised money, debt, and their ipo is now further down the line potentially. they also are reportedly considering cutting a lot of staff here. the dream that existed for some of these smaller tech companies to enter private markets, how much has that died? leon: i think it really depends company by company. i do not think the dream has died. i think just in some cases, the

dream has been put on hold. i do believe that the ipo market will start to come back with companies that are suited for this environment. you know, companies that have ore well in this environment or we can project them out. you will see the ipo market coming. we have seen a number of -- being issued, so people going public through that will increase over the next few months and going forward here right now, and i think in the cases of the dreams here, the people that have formed these companies and run them are absolutely fantastic entrepreneurs. they will manage their way through it, and the dream will be on hold for six months or a year, but it will come back. people like this are eternal optimists and that is what our society is built on. shery: ab inbev -- leon kalvaria speaking to bloomberg. coronavirus lockdowns could prove a risk and a reward for

nintendo. we will preview full-year earnings with a jefferies analyst, next. this is bloomberg. ♪

haidi: nintendo is feeling the double-edged sword of the coronavirus. demand for its switch consoles have surged with people stuck at home while supply has taken a

hit from production shutdowns. a jump in profit is still expected when nintendo reports full-year results later on thursday. atul goyal joins us now from singapore. great to have you with us. what are your expectations given that we have kind of seeing the story of demand but also the story of logistics and supply disruptions for nintendo? atul: thanks for having me. current rates have been very favorable, particularly nintendo has done a phenomenal job with its new game, animal crossing. from the demand side, there are many factors. from the supply side, there were issues early on. they boosted capacity and supply. members should be very good for numbers should be very good for their march quarter. they should be doing very well.

the guidance has been of little relevance in the past and they make a mockery of the word guidance in general. business wide, it is looking very good for now. haidi: right, so how big i suppose is the risk of under delivery both in the sense of the inventory crunch but also managing these expectations from investors? numbers, they of should not be much of an issue because what happened here, most of the profit -- in absence of too much competition right now, most of the nintendo games are doing extremely well. and secondly, there are two options. you can buy it -- and you can buy in digital downloads. when you buy it through retail channels, the retail channel of the asking

price. when you download it digitally, all of it goes to the platform, nintendo. because of that, the margins will be much higher. the sales are very strong. it is very difficult to disappoint. industrywide, -- disappoint. at least for me. the reason to be careful is that the company is not talking about monetizing outside of the -- cyclical platforms. it is a cycle. if they were to move out to mobile platforms or the clown, it opens up huge amounts of value -- cloud, it opens up huge amounts of value for shareholders. they need to talk about it, especially given that one of the long-term value activists has taken a -- rating. we need to see that. shery: how is involvement of value making it more interesting for the stock?

at theseyou look investors, very good. they did all the activism behind the scenes. they do not write angry letters to the ceo's. in the past, microsoft was taking them over the cloud. what nintendo needs to do is exactly in the long-term side. they need to start thinking about taking their ip on to mobile now and cloud in the long term. that could be a long-term partner for them. shery: give us a little bit more perspective when it comes to how nintendo is, you know, playing against some of its biggest rivals, whether it is xbox or playstation. customers being stuck at home switch, so will

they just change their providers and companies? and what would that mean for their online subscription service as well? issueyes, so this is an in the last couple of -- not for a very long time. the launch cycle of playstation and xbox is different. nintendo launched in 2017. it is just a three-year-old platform. it has had seven years. they have done a phenomenal job in terms of selling hardware, but hardware -- software, and the games are very attractive. they have done an overall good job on that front. going forward is very hard because playstation and xbox have a next iteration at the end of this calendar year. and this gets delayed -- continue for another three months. they are scheduled to launch nexgen consuls at the end of

this year. around that time, what typically happens is the focus starts to shift on the new council. even though the install base is very low, the investor focus starts to shift there, and nintendo's next council is years away. they might lose out some of the interest from spenders, consumers, towards the end of the year. they have a good window to start talking about their long-term future and how they are going to build it up, but currently, i mean, we have seen them doing a good job either in communicating or going in that direction where they would monetize their ip on mobile. i will give you an example. why do few companies in japan are booking revenue in mobile? nintendo is not even $.5 billion. for a company with one of the most known and popular franchises in gaming in the world, this is quite shameful. , all --atulbev

goyal, always great having you on. managing director for jeffries equity research. up next, a look at what to expect as markets in japan reopen after golden week. this is bloomberg. ♪

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

surging 21%rlines as investors bet fundraising and an easing of lockdown restrictions will help the carrier survived the pandemic. it was the stock's biggest gain since 1987 before paring back 6% at the close. in march, sing air -- convertible bonds. qatar airways is ramping up its return to the skies, saying it sees flights returning to have its network by the end of june. the state on carrier hopes to have 18 destinations in service by then, stating -- starting with connections from its doha hubs in london, chicago, dallas, and hong kong. they were and they will have to cut an unspecified number of jobs because of the coronavirus fallout. top rental car companies are talking to automakers about canceling car orders as the pandemic continues to hammer demand for travel. he is sending back the

general motors. hyundai is redirecting some orders. automakers are struggling to move new cars and they can no longer rely on rental companies to bolster those sales. shery: an alert on the bloomberg. we are getting the monetary base year on year for japan for the month of april rising 2.3%. when it comes to the monetary base, end of the period, we are yen.ng at 529.2 trillion the boj had this ¥80 trillion a year target of boosting the monetary base. they have recently given that up , saying there is no limit. even before that, they have not reached that ¥80 trillion ceiling. it was more a commitment to do as much as it takes to help the economy and try to boost inflation. let's talk more about the japanese markets because they are now reopening, and in just a few minutes time, after several days of holidays, let's take a

look at what to expect with bloomberg's global markets editor, adam haigh. how are japanese equities looking? they have a lot of catching up to do. adam: they do have a lot of catching up to do and it is really the overarching sense. the global markets have really come off in the last few days. that risk sentiment that has been gathering and building at the rally came up from those march lows and it has somewhat dulled in recent days while the japanese equity market has been closed. they will have to catch up with some of that sentiment but we are not expecting a wholesale move in japanese equities but you will see a meaningful move. really, a lot of that has to do with the uncertainty around the domestic front. of course, the measures that the authorities are taking within japan have ratcheted up somewhat over the last week or so, and indeed, the outlook on the relationship between the u.s. and china and some of the

rhetoric that we have been hearing coming from the trump administration around the blame game on where this pandemic aarted, that has been material shift in the last few days. local japanese investors need to still catch up with that trade. it has been a really big theme of late. of course, it is still a lot of uncertainty in the way that that plays out onto the earnings front. we are going to be hearing from a few more companies on that front as well. earnings terms of the picture stacking up in japan, what are the prospects looking like and what are you watching that could potentially add to this kind of fragile sentiment surrounding outlook? adam: i think the big thing, haidi, with the earnings picture, and in japan, it is very similar to many other places, how much information can investors glean from what they are able to tell

them at the moment? the view that you can look through the next couple of quarters -- or is there something more fundamental going on in their business, a sense of permanency, a more permanent structural change in some of the businesses that the corporate ceo's will be talking about on the earnings calls? and that is the tricky thing to gauge at the moment. there was a school of thought in one camp of the market that are prepared to look through the rest of this year. they will make some estimate on the 2020 one earnings picture and into 2022, but of course, so much of that hinges on how the global economy comes out of the pandemic on the others, how the easing of lockdowns is able to suggest a path forward. we have already seen indications of how that is starting to operate in places in europe and in some states in the u.s., but japan remains considerably behind that in terms of the timetable, so exactly what corporate chief investment officer's can tell us to give

ofestors to give a sense visibility on those earnings. that is still quite cloudy. haidi: bloomberg's global markets editor, adam haigh, there. we are kind of bracing ourselves for the reopen of tokyo markets after that three-day holiday. take a look at how things are. we are seeing gains in that market for the fourth time in four days, just up by .4% in the aussie futures are looking a whole lot less positive. we are set for declines, .5 percent, tracking the uncertainty on wall street. this after another shocking indicator of job losses. 20.2 million jobs cut by american companies in the last month. this is how we are shaping up when it comes to kospi and mckay futures. we are seeing downside when it comes to asian futures. butte you are talking about hong kong -- you are talking about hong kong. marketreak asia, we have

opens coming upon us and we will get analysis of china trade. with us,ist will be plus an exclusive chat with a bank ceo. ♪ save hundreds on your wireless bill

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>> there he good morning. australia, japan, south korea have just open for trade. welcome to daybreak asia. asian stocks are set to fall lower among midst corporate earnings and worsening economic data. dollar strengthens the most in three weeks. oil remains weak after snapping a five-day rally in new york as the global glut outweighs signs of rising demand.

investors remain concerned about the lack of storage. aina's leaders may abandon target for growth amid the coronavirus disruption. trade will show the extent of the damage. we are seeing japan coming back from holiday. the nikkei and topics falling around 7/10 of 1%. japanese markets have a lot of catching up to do. we had u.s. china trade tensions escalating. japan extending its nationwide state of emergency until the end of may. we have a lot of strength for the japanese yen. under pressure at the moment. this after seeing significant strength on all of these haven demands, the strongest level in about seven weeks. take a look at how the kospi is doing right now. it's down 3/10 of 1%. this after seeing its biggest jump in about a week. we've seen south korea further easing social distancing measures.

we already have some numbers out of south korea. the march current us out -- account surplus narrowing a little bit but not doing awful numbers given that march, we did not see the full impact of the coronavirus lockdown. the korean won under pressure against the u.s. dollar. a tepide are seeing start to trading here in sydney. the asx pretty flat as we continue to get into that staggered open of trading. we are expecting downside given that weekly from wall street overnight. the aussie dollar is holding steady at this point. we are looking to new zealand, given that is a market that is seeing a fourth day of gains. we are expecting to hear from the new zealand finance minister to deliver marks. could be getting good indications as to how that economy is handling gradual reopening as well as the weight of the extraordinary monetary stimulus coming through from the rbnz.

we continue to watch oil. a bit more of a recovery earlier on in the asian session after the rally that saw prices more than double, stalled the new york overnight on concerns that these staggered economic openings across the region is going to be overwhelmed by the glut of supply that we are seeing. the demand side simply won't rise quickly enough. we are continuing to watch the oil patch. shery: we continue to watch what happens in the coronavirus operate. the latest numbers out of china, reporting no new coronavirus deaths. when it comes to symptomatic coronavirus cases, six new asymptomatic cases. two additional coronavirus cases in china from a six. all of this playing into the markets. a little bit more stabilization in china. for more on the markets, let's bring in our mliv strategist on the phone.

let's start with japan. it is reopening, catching up to that selloff we saw worldwide. the japanese yen, a little bit of pressure. while japanength was on holiday. mark: as you mentioned earlier, since japan's went away, the negatives have been piling up. mostly external. they extended their own lockdown. look at the situation between the u.s. and china, that trade dispute got worse over the last few days. now donald trump is talking about issuing a report in the next few days about whether or not china has been complying with it side of the trade deal. markets are pretty edgy while they wait to see how the swings and up. that is overhanging markets. the yen is stronger from the time that japan went on holiday, close to 106 now.

that would be an issue for japanese equities as well. wall street starting to turn a little bit softer as well. impulses coming together, headwinds for the japanese equity market. we see a very good performance from china stocks today. it's likely to be a down day in japan. u.s. treasuries boosting the amount of debt it plans to billion asrecord $96 well as extending to that 20 year bond as well. what are the implications for asia? mark: it will really be a steepening of yield curves, the treasury curve already moved a bit last night. it could go further. it was a bit of a surprise to traders. as the treasury is looking to do. that would definitely have implications for emerging markets and asia especially.

i know that steepening will pay out. it's an increased cost of funding for asian countries. it will filter through to their own bond markets and the equity markets as well. u.s.e margin, when the curve goes deeper, it is not a good thing for the rest of the world. it does increase funding cost. people will be watching that and look at it as spinning into risk assets. it's a dampener in that respect. that is buying bonds in large quantities. the jump in yields will not be that much. they can absorb this. it means that the downside becomes much more difficult when you are issuing at the extent that the u.s. intends to. shery: what does this mean for asian currencies? we continue to see u.s. dollar strengthen. what does that mean for asian currencies? we've seen a lot of lucas against the u.s. dollar.

have we bottomed out yet? mark: probably not. particularly in the rest of the em world, we're seeing weakness. the brazilian riau had a bad day yesterday. it is trading at a very weak level. look at the worst-performing currency so far this year, the u.s. dollar. the em suspects are right up there. the mexican peso, turkish lira. when those currencies are in a downward trend, it's not good for asia. there might be one or two isolated cases. the u.s. dollar has been in its own bond -- bottle. other currencies like the rupiah , these currencies are going to get caught up in the weakness we are seeing in the wider emerging-market world. when you get this down move outside of asia, it it is bound to have some impact. asia won't move exactly in line. it is certainly a negative and

asia needs to be aware of it. it is going to hurt asia. shery: all right, you can follow along more on this story on our market live blog. that's on the bloomberg at mliv . in our market run down there -- from our bloomberg expert editors. you can see exactly what is affecting your investments right now. let's get the first word headlines with karina mitchell. karina: covid-19 cases have riven again in the u.s. with fatalities above 72,000. the administration continues to push for the economy to reopen. california saw its largest one-day jump in new cases. new york city says it expects unemployment to triple this year to 12%. president trump is backtracking on plans to disband the virus task force after acknowledging

the reopening may cause more people to fall ill and die. europe is edging towards easing virus lockdowns with governments allowing more shops and businesses to reopen, with a continuing emphasis on social distancing. the fallout will likely see the eu fall into deep recession with the ecb pledging to do all i can to bolster the weakening economy. brussels says the market is facing unprecedented challenges. >> it is now quite clear that the eu has entered the deepest economic recession in its history. the eu economy is expected to contract by a record 7.4% this year, 7.7 in the euro area. more than in 2009. karina: lockdown in the u.k. may be eased on monday come even as the nation becomes the first in europe to suffer 30,000 deaths from the virus. will johnson told --

announce a new strategy on the weekend. critics say his government was too slow to respond to the crisis. russian president vladimir putin's approval rating hit a record low among the coronavirus fallout. dropped to support 59% in april from 63 in march, the worst rating since he took office. economysays the russian will contract by at least 5% this year with unemployment doubling to 10%. 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'm karina mitchell. this is bloomberg. exclusivell ahead, an with thailand's biggest bank ceo , joining us later this hour to discuss the impact of the virus and strategy moving forward.

first, ing greater china to talkt iris paying about beijing's plan to drop a numerical growth target for this year. this is bloomberg. ♪

♪ haidi: china is considering chopping a numerical gdp growth target for this year in favor of a more general description. the latest trade numbers are expected today. that could be a big factor in that. let's bring in iris pang/ pang.ris how significant would it be? iris: it is not really unexpected. will not announce a fixed

target because this year is a very special year, covid-19 spreading globally, not just in china. it is indeed very difficult to gauge the growth rate. globalized with the rest of the world. haidi: right. is it symbolic in the sense that it would suggest that leadership is less focused on maintaining this idea of needing to hit a certain arbitrary growth number every year as a matter of maintaining face, maintaining these levels of employment that we have long talked about as being necessary for social stability in china? does it mean that they are opening up their perspective to more options in how the restructuring of the economy can plate -- take place? though-- iris: even

there is no fixed gdb target -- gdp target, it doesn't mean there aren't any other targets. for example, stimulus. i think they will announce a range of months that actually can let the markets make a profit on the gdp growth. be, i believe there will be targets announced on unemployment this year, just like every year, especially on fresh graduate. will ascertain the society that unemployment rates will be kept stable, even though it is high. the will be kept stable. i think that there will be some numerical targets there.

but not gdp this year. what sort of policies are we expecting to see out of the npc, given that we have seen easing policies? we have seen tax breaks, spending plans. it has not been to the magnitude of past economic crises for china. they have been more moderate. um, there is new infrastructure team. that is a team that pushed forward the digitalization of the economy. this, i can't say that this is fiscal stimulus. , it is a stimulus plan needs public and private partnerships for coordination. for example, five g infrastructure. seea will push forward and

the infrastructure building a five g. this is what they are doing. i think they will mention this in the two sessions and include this as a plan going forward. i also expect that they will also mention how they will use monetary policy to support fiscal spending. all of these together, we can actually make a proxy on the gdp growth. haidi: today, we are getting china's trade figures for the month of april. this chart on the bloomberg towing how chinese exports their biggest trading partners have been hit, especially to the u.s.. what are we expecting in terms of the apron -- april numbers? trade tensions are intensifying. will that white line exports to in u.s., continue to fall

the next few months? um, this is last month data. byexpect exports to contract nine point -- 9.5% year on year. import will increase 11% due to china's imports of oil and crude oil and agricultural produce. this is interesting. -- it is aat china benefit of signing the phase one deal with the u.s.. on exports, it is damaging. that overseas buyers withdraw orders for last month, but we expect over the coming

months, due to high and implement rates in u.s. and also the way below 50 export orders of manufacturing pmi index, not only in china but also in various asian economies, we believe that the western side of the world may not recover very quickly. growth orort contraction will continue for several months, if not for the whole of 2020. on china u.s. relationships, we already have seen the technology war has not stopped even though during covid. betweennot a good sign the two big economies. now we have additional risk on trade war. in long-term, technology war is

here to stay. , asa can become a threat as an advanced technology economy. haidi: great to have you with us. for more on china's trade balance, we will hear from societe generale and jpmorgan later. samsung isext, promising an end to family role. how likely this prompt -- public promise will be kept. this is bloomberg. ♪

♪ shery: a quick check of the latest business flash headlines. fearseat investors worst despite the coronavirus impact. $85 million in the first

quarter, the percent of an improvement on last year. the pandemic is hurting demand. adjusted sales climbed 23% on the year. the company has been growing accustomed to growth rates of 50%. paypal is the latest in a long line to withdrawal 2020 guidance after first quarter sales missed estimates. 19% to $191mes rose billion. adjusted earnings fell 77's -- $.70 per share. figures for april are showing significant improvement, since the world went digital during the lockdown and social distancing. homework out at pellet gun says -- surged as paid subscribers jumped during the lockdown. it generated more than $524 million in revenue through march with 900,000 connected users. forecast, raising its seeing more than one million subscribers through 2020. shares were mixed in late trade. haidi: big changes in how south

korea's largest conglomerate is running the future samsung air. he has been in and out of jail because of corruption scandals. they are valley to end the dynastic rule of the company. our chief north asia correspondent has been following the saga from the very beginning and is on the line for us. is this finally the breaking point for this dynasty after ongoing scandals, not to mention the government continuing to push for a reduction of power for these conglomerates? stephen: that's right. considerably different than the past when he and samsung insisted that they have done nothing wrong. as you know, this is a saga that has gripped south korea for four years now. it brought down the then-president in inflamed public anger over the power of korea's giant conglomerates.

influence.alleged they did spend about a year and year -- in jail. he was a -- released in 2018 by the appellate court. the same court that is expected in the next few months to decide his final sentence. i'll talk about that in a bit. the background here is important , to decide why he is saying now at a briefing at company headquarters, he was really contrite. he apologized personally for his company's role in the scandal that allegedly involved samsung paying bribes of money, items that included a show horse to win government approval of the consolidation of samsung businesses to allegedly smooth in the past a succession for himself. he admitted missteps in the past and is vowing not to break the law in the future. he signaled he will likely be

the last of his family to oversee south korea's most powerful conglomerate. that means his children will not take over. he's been free since 2018. he could still go back to jail. stephen: that's right. after being released in 2018, he returned to court last year when the scope of alleged wrongdoing was revised. --in, this could be a way i'm just speculating. it could be a way to earn more favorable litigation from the appellate court at sentencing, a show of contrition and the fact that there might be a sizable change at the table. the total amount of alleged bribery determined by the supreme court carried a minimum sentence of five years. that cannot be suspended in the same way his existing sentence has been. local media has been focusing on

this article 53 of the criminal act. it stipulates there could be discretionary mitigation of sentencing due to extenuating circumstances. this is always the case in south korea. it is rare for the head of a table to actually spend a sizable amount of time in prison. they always seem to get off like he did. case, if the court determines that there is damage to samsung by putting him in prison, because of its crucial cog in south korea's economy, he could possibly avoid jail. just: our chief north they -- asia correspondent with the latest on samsung. next, details on the outlook when it comes to the macau casino sector. this is bloomberg. ♪

♪ world's largest container line says it has yet to see any shift in supply chains as a result of the coronavirus. it took a hit to first-half revenue from higher fuel cost and a slower than expected recovery of freight rates. the ceo spoke exclusively to bloomberg about how quickly volumes have rebounded in china. >> our business has changed since the thing started in asia. initially, we were mainly impacted by reduced volumes out of china because the pandemic it there. that came back pretty fast. since the endsee of march and beginning of april,

the effect in other parts of the world, mainly in europe and increasingly in other places like india. in the end, a material impact on local flows. i believe the indications you get from global institutes like clark's, -10% on an annualized basis. >> what have you had to do in terms of changing routes? we're hearing a lot about companies and countries turning inwards. less globalization and more need sourcing internally during this time. have you had to change wrapped because of that? >> no. we have seen volumes come down, especially into the second quarter. one would expect that on the back of this pandemic, you don't see a lot of change in source just yet. some of it might come if you look a couple years ahead. now, wee screen right have your share price. it is up over the last year, 504%.

you just told me that your basic fiscal side when it comes to seaborne traffic, why is your share price up as much as it is? can you give us a degree of explanation? >> i don't think so. it's not on us to comment on that. to be honest, we are trying to understand that. there was no obvious reason for it. explain to us the cost-cutting program you are being proactive about trying to rein in costs come even though you say things are moving in asia and will likely improve in europe and u.s. as well. what will you have to do? lay off staff, decommission container strips -- ships? >> what we are doing, when something like this happens, you need to control cost and manage cash. that is why we are looking at every single category to see

where we can save money. in the end, with the business of our size, that amounts to big-money in terms of people. we are being cautious right now in filling oppositions. right now, we have no plans to do any significant layoffs. >> talk to us about liquidity. you did have an outlook change. are you concerned about your ability to access capital markets? how much do you need to access capital markets? >> we are not concerned about that. we have taken precautionary measures as everybody has done. right now, we don't and we will need that. >> do you see consolidation in this sector? interview,ed in the you talked about consolidation and what could happen and s going we will see other

out of business. is this an opportunity to roll up? in the post covid-19 world, will container volume demand be lower? businesses go out of business, that will help balance the market? >> it's difficult to say. we are just into this crisis. in the interview a couple days back, i said that i don't see anyone falling over anytime soon. if this crisis lasts a lot longer than everybody thinks right now, that might change. that's not in the cards right now. haidi: exclusively speaking to bloomberg. we have an alert on the bloomberg. korean airlines will operate 32 of 110 international routes in june. they are adding more international passenger flights in june as well. of course, there were lots of restrictions due to the coronavirus pandemic. korean air now saying that they will be operating more than 30 flights out of 110 international reach.

let's turn to karina mitchell for the first word headlines. china's leaders are considering abandoning a numerical target for growth this year given the uncertainty. a conference may alter its liquid should talk of a general go for -- goal for expansion. worstis facing its economic performance since chairman mao's time. president has vetoed legislation that would require clearance from congress for any military action against iran. the senate passed the most in in february with republicans voting with democrats. it was approved by the house in march. describing the resolution as insulting, the president said his is based on the misunderstandings of the facts and the law. u.s. debt sales are soaring with the deficit approaching $4 trillion. the treasury is boosting the amount of debt it will issue in the coming months to a record

$96 billion to provide government funding amid a looming recession. it expects to auction the first 20 year bond on may 20. they see a 40% to contraction in growth. venezuela says for more people have been arrested after sunday's failed coup attempt. the president blames the trump administration. on wednesday, state tv show video of a captured american. he was one former u.s. special forces. washington is denying any involvement. 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'm karina mitchell. this is bloomberg. we are taking a look at how trading is progressing this thursday. japan comes back online, catching down.

nikkei futures off by 3/10 of 1%. the topics expanding losses, down by 0.5%. asian stocks looking like we will keep trading lower throughout the course of thursday, after u.s. markets closed down mostly lower overnight. the worsening economic toll is adding to concerns about how stable and efficient these economic reopening's will be. we are seeing downtime -- downside extended. we have seen upside for a fourth day when it comes to trading in new zealand. shery: when trading kicks off in hong kong, we will be watching macau casinos. when resort shares fell during extended trading in the u.s. after a first-quarter loss of half $1 billion. much of that is down to the global lockdown. let's get details from rishaad salamat. pretty much expected, given the

lockdown from the pandemic. rishaad: absolutely. we have a situation with better-than-expected numbers overall. wynn shares down in late trading. falling sales. those revenue numbers are better .han analysts were thinking like so many other companies that are batting down the hatches, they are suspending their dividend. the financial impact resulted of the pandemic. the company planning to continue paying staff member salaries through the end of may. they produce a a plan in april to reopen casinos and resorts safely. let's take a look at the overall stock price. it is down 44% in the past year. the s&p 500 using that as a benchmark. down 2.2%. clear underperformance. wynn is not as exposed to macau

as many other gaming companies. it does have exposure to the lockdown globally. the numbers look pretty bad. pandemic, areal they that bad comparatively? rishaad: they are absolutely dreadful. april was the worst month macau casinos have ever endured. the world's biggest gambling hub still struggling with just a handful of players and a heavy daily burn of cashier. gross gaming revenue plummeting 97%, $95 million. the biggest drop on record. 80comes after a gargantuan -- 88% plunge in february. analysts were looking for a of 94%. the situation for can see no operators continues to get worth -- worse even when they reopened their doors.

operations may have restarted but try telling that to would be punters. roulette tables remain empty. casinos are losing more than a million dollars a day. the outbreak is largely contained in macau. even if you want to come to the territory to gamble, how do you get here? restrictions on travel make it impossible for tourists and high rollers to show up. last week, highlighting this unprecedented damage this pathogen is leaving on the territory. moment, it is a case of, how do you make any money? they say that they are cutting many senior roles while other executives are taking a pay cut. the chairman says he will not be taking his salary for the remainder of this year. an internal memo said that the number of cap -- customer since reopening has been virtually

zero. back to you guys. haidi: a pretty dire situation there. coming up next, thailand's largest bank whether the most recent quarter. challenges related to the coronavirus pandemic remain. we will speak to the ceo in an exclusive interview, up next. this is bloomberg. ♪

quick check get a of the latest business flash headlines. uber is cutting more jobs and closing 180 driver centers as the coronavirus stole demand for rights. 3700 cuts. 14% of the workforce. it will affect staff around the world. 40% of driver centers will close down. the green light hubs signs people up as drivers and teaches them how to use the app. working from home has become the new normal for millions of people around the world. some jpmorgan staff may find it becomes more permanent. the copresident says some employees could work remotely on a rotational basis in one vision of the banks pose fire his role. it would reduce demand for office space and promote sustainability and would help

save money. singapore airlines rose the most in three decades, surging by as siteas 21% as investors and easing of lockdown restrictions. it was the stock's gain since 1987, before paring back to 6% of the close. they unveiled plans to raise 6 billion u.s. dollars through convertible bonds. qatar airways is ramping up his return to the skies, saying it sees flights returning to half of its network by the end of june. they hope to have 80 destinations in service by then. starting with connections from it still ha ha up to london, chicago, dallas, and hong kong. qatar warns it will still have to cut in unspecified number of jobs because of the coronavirus fallout.

more on those earnings. quartermotors, strong on surging pickup sales has some speculating that the carmaker could pose positive earnings for the full year. the cfo told us whether the auto giant can keep up the pace. inventories are something we are watching. we are well-positioned on car lines. in the out of the strike later part of last year and we have had lower inventories. it is frankly helpful in a scenario where qatar ramps up slowly, looking at it. from a pickup perspective, we do find ourselves in a situation where we have lower into various -- inventories. the dealers have gotten experienced in managing through the constraints that they are seeing in the product and how to

dig deep into inventories and still maintain sales. that's the good news. towe think about the plans return to work, that should help us address the shortfall from an inventory standpoint. >> jim announced its first quarter earnings today and announced that it took down money from revolving credit lines. something like $3 billion in automotive. that is after already amassing something like $33 billion in automotive liquidity. as you look forward, what tells you you will need that extra money? >> if you think about our said, we, we've always want to run a very strong balance sheet. that has come in handy during these times. quarternd the first with a very strong liquidity position of $33.4 billion. it's difficult to anticipate what will happen. we are taking steps to protect

ourselves, whether that is suspending dividends and share repurchases. a precautionary measure, to make sure we have additional layer's of liquidity. we are comfortable with our liquidity position now. it will take as well into q4 even in a scenario with zero production. obviously, we talked about the restart. liquidity levels will recover from here. areuld say these actions precautionary and proactive actions to make sure we have additional liquidity buffers in place. what we're focused on now is to return the plans and get the protection up and running. along,his pandemic comes the auto industry was going through a transmission to a time to miss and electric vehicles. you've been investing quite a bit in both of those.

are you changing your investment plan on that? do you have to put that to the side while you deal with the aftereffects of the pandemic? >> absolutely not. we are marching ahead in our plans. we are committed to an all electric future. all the plans that we have outlined recently in our capital , with respect to the product that will be rolling out, we see little to no impact on any of these. the capital actions we are taking will not impact the programs that you just outlined. we are fully committed to that. the balance sheet we have been maintaining and the financial flexibility we have allows us to continue these investments as we go forward, even in these challenging times. >> let me raise the pace of the introduction of new vehicles. but aside tv's and a visa in general. it has been a hallmark of the

ceo washing has been there, having an increased pace of new vehicles. will that slow down? >> we are committed to putting products that customers are excited about -- you can see the success recently with our trucks. belmont change. we do put the customer at the center of everything we do. you will see that continue as this comes along. that was the cfo of general motors there. coming up next, thailand biggest bank seems to have weathered the most recent quarter. challenges related to the coronavirus pandemic remain. we speak with the ceo in an exclusive interview. this is bloomberg. ♪

shery: the need for greater loan-loss positions as the virus pandemic plays out. lower revenue growth and higher provisions going forward. joining us exclusively from bangkok is the ceo. thank you very much for your time today. we have seen your global peers really allocating billions of dollars for loan-loss provisions. how much are you planning to set up for this year and next? kattiya: [inaudible]

we continue -- [inaudible] [no audio] [inaudible] amid the economy downturn for covid-19. even the relief measures from government and bank of thailand, the pressure on the asset quality might be lower. that's our direction. haidi: what are you planning to do in terms of cost cutting measures? kattiya: ok.

year, we have been doing cost reduction and productivity improvement. we will continue to do so, forecasting on the branch policies. migration to new channels. formation in every operation process. we will continue also doing price negotiations. 2019, we reviewed the amount up to $7 billion. [inaudible]hat and to end credit process. also frontline effectiveness.

we -- we will be taking a look at the markets before we headed over to the china open. this is how we are seeing trading. tokyo coming back online after that three day holiday. downside when it comes to trading on the topics as well as the nikkei. weakness pretty much probably across the board. asian markets are following that weak leader. wall street is concerned about the economic fallout of the pandemic far outweighing any optimism with regards to the slow economic reopening that we could be seeing across parts of the world. we are seeing that lower drop when it comes to asian stocks. mixed corporate earnings are not helping sentiment either in this picture. shery: take a look at what u.s. futures are doing at the moment.

backe seeing them paring those earlier declines, now gaining 2/10 of 1%. this coming after u.s. stocks fell for the first time in three days in the regular session. you said it. mixed corporate earnings. also worsening economic data that we continue to see. offshore yuan holding at that 713 level. incredible weakness in the chinese want as we continue to see more u.s. china trade tensions. let's get a quick check of the latest business flash headlines. korean air lines is one of the first major carriers to see a recovery from the coronavirus. the pandemic have ravaged demand for travel, forcing airlines to cancel flights and ground planes. korea says it will increase passenger services and will operate flights on 32 out of 110 of its international routes. siteh, the online video where gamers watch gamers, is eyeing a slate of new programs

including game says -- game shows. -- wants tos will expand into reality and have the vintage of its stars having always felt themselves from home. the site is owned by amazon and recorded more than one billion hours of watching time last month. asia-pacific saw a drop in profit as coronavirus cap restaurants, bars, and sporting events closed. posted a loss of 41 million dollars for the quarter compared to a profit of 240 million for the same time last year. budweiser has been improving since mid-march. driven by the recovery in china and south korea. haidi: our markets coverage continues as we look ahead to the start of trading hong kong, shanghai, and centering. the china open is next. this is bloomberg.

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in beijing.0 a.m. welcome to "bloomberg markets: china open." i am tom mackenzie. david: i am david ingles. we are opening to trade in chinese mainland and hong kong. our top story today, the latest trade numbers out of mainland china due shortly. we will show the full extent of the coronavirus fallout. and abandoning gdp targets. tom: sungwoo: