>> welcome to "bloomberg daybreak: asia." down to theunting market open in australia, japan and south korea. trade tensions rise again and china may terminate the phase one deal. coronavirus cases continue to rise with new infections in the chinese city where it was first reported. new york state will reopen partially this week. russia sees cases surged.

as more nations and states move toward reopening, we ask what needs to be done to make it safe . we hear from johns hopkins university. . we hear from johns hopkins university. >> let's take a look at how we are setting up in these markets. we had mixed messages from wall street overnight as investors try to make their way through the global reopening. asianlook at how the session is shaping up. the globaler we saw cell overnight, there could be little and the way of conviction for asian markets this morning. futures fluctuating in the asian session. off by slightly here. we have kiwi stocks getting grounds by .2%. k futures in chicago holding on to three day ahead of a heavy earnings day in japan that will include names like toyota and honda due out later this afternoon. today we are washing for the

topics potentially push into a bull market with optimism for parts of the economy restarting. we could see wider headwinds weigh on the asia session. checking in on what is going on with bonds, australian bonds this morning continuing to depth, with supply looming. been plaguing bond markets from us tried to china to india. today we saw indian bonds drop by the most since 2017. we have inflation data due from india and china as well. check out oil this morning. deputy i rebounding as output cuts and easing storage pressure. old holding steady below $1700 per ounce. shery: chinese trade officials are considering the option of avoiding the phase one trade deal with the u.s., according to state media. the report comes amid questions over china's purchases of u.s. goods. president trump says he is not interested in restarting talks. bloomberg markets coanchor tom

mackenzie us from beijing. this from the global times, what are they reporting? [no audio] >> we do have inflation data. tom mackenzie in beijing, let's see if we can get you connected. we were asking about where the report is coming from and what it is thing about that phase one trade deal? we will try to reestablish that connection with tom mackenzie in beijing. it has been about that china-u.s. trade tensions.

haidi: yes, that's right. else thats something perhaps emerging markets does not need now, is this revival of the trade war between the u.s. and china. coming up, still ahead, s&p 500 dividends may fall short of last year and take until 2027 at best. we discussed the payout pessimism next. tesla is saying it is re-charting -- restarting production in fremont, defined county rules. we look at elon musk and his standoff of california officials. this is bloomberg. ♪

>> let's get back to china-u.s. trade tensions as we hear from state media in beijing that china may be weighing potentially avoiding the phase one trade dell. let's get to bloomberg markets coanchor tom mackenzie in beijing.

what is the globe times saying? a state backed tablet here in china. they are citing officials -- tabloid. they are citing official suggesting that maybe the chinese side is considering the possibility of avoiding the phase one deal the paper says chinese trade officials are angry about the u.s. accusations over china's handling of the pandemic. down everything in their options, essentially. another option they are apparently looking at come apart from avoiding the trade deal, as renegotiating the deal, to tilt the balance as they, more to the chinese side. the thinking, currently, is that they could use a force majeure measure baked into either we work it or pull out altogether. -- either to rework it or pull out altogether. this is from the nationalistic tabloid, backed by the state but this could just be gamesmanship. we have some in the states

considering -- saying they could consider pulling out themselves. this could just be a way of china trying to balance that pressure campaign we have seen around this. we know that last week lighthizer on the u.s. side, the thattrade had and his on chinese side did have a phone conversation. both sides to stick to their mittens and work toward the completion of the phase one deal. -- stick to their commitments. >> in the meantime china is contending with new virus, what we know? be athis is not going to smooth line back to full opening of the economy with no exceptions. the epicenterjan, for the outbreak, has reported its first cluster of infections since the lockdown was lifted in april. five new cases that all live in the same residential compound. it is a reminder that officials have to be on their toes, alert

if they want to get this going back up to full speed. we have seen other clusters on the china-russia border and on that china-north korea border as well. ofna has a system in place testing and quarantining people when needed and the hope that will allow them to ensure these clusters are contained, as they try to fully of the economy. but that will put it to the test. do get cpi numbers out of china. , and factory prices what are we expecting? >> on the financial get prices side we expect another deflationary number, a fall of 2.5% for april, compared to 1.5% in march. you have weaker commodity prices in that, and the demand picture here remains tepid. bloomberg intelligence thinks when it comes to these factory get prices you will see the deflationary picture continue in the months ahead because of the weak economy, the drag on demand.

that could weigh on company profits and make it harder for them to pay down debts. in terms of consumer prices, you're looking at rise of 3.7%, according to forecasts. that is below the number we saw back in march. weaker pork prices already factor as well. the data coming out at 9:30 a.m. local time. any changes in weather hampers the policy response. we heard from the pboc over the weekend suggesting they will take more aggressive measures to support the economy. that inflation data around 930 a.m. local time. >> our correspondent there in beijing. now let's get you caught up with first word headlines. >> global health services are warning of a second wave of coronavirus infections with new cases in south korea and a spike in infections in the city where the outbreak was first reported. -- wuhananto cases

todd's first new cases since the city ended its strict lucked out last month. italy reported its -- its strict lockdown. whilereported its fewest france and spain ease restrictions. russia is lifting is lockdown as a surge. president putin is ending the stay-at-home order while putting response build on regional leaders. russia's economy has contracted by one third since the lockdown began. oil has collapse adds more pressure. infections have topped 10,000 per day for the past eight days. germany says the ok is not taking brexit seriously and that a favor -- failure to agree with a deal with the eu threatens catastrophe. the latest talks via video link and germany's main business lobby says progress has been completely inadequate. the b.i. says coronavirus has cost billions of jobs and failure in brexit negotiations will turn a difficult situation into disaster. saudi arabia announced a

surprise cut in oil output to its lowest in 18 years, as it tries to counter the energy crisis that is crippling the economy. hours after releasing new austerity measures, the kingdom said it will cut production by an extra million barrels per day on top of what it agreed with opec plus allies. oil futures rose on the news, later followed by cuts from quite and uae. global news 24 hours a day on tv and @quicktake on twitter, powered by more than 2700 journalists and analysts in more than 120 countries. i am karina mitchell. this is bloomberg. you can get around up of storiesquite and uae. you need to know to get your day going in today's edition of daybreak. daybberg subscribers go to on your terminals and it is available on the mobile app. this is bloomberg. ♪

>> as investors continue to

assess the fallout from the coronavirus, coleman sachs says pessimism will have the upper hand and said the s&p 500 20% in the next three months. -- goldman sachs. our next guest is more optimistic saying we have likely seen the lows already. joining us is wells fargo asset management senior portfolio management marjorie patel. we continue to seek flareups in infections worldwide, really bad eco-data at rising u.s.-china trade tensions. what makes you so positive about the market outlook? , in particular, the federal reserve acted very proactively and flooded the system with liquidity. that is really what stops the market from going down. that is why we sire low point in march. and why we -- that is why we saw our low point in march and why we will not reach that point again. they provided liquidity so we do not have seizing up in the money

markets, which were getting seized up even before the crisis, because of the demand for dollars. and the un-a plummet checks people are getting is coming at a rate of around $1 trillion, annualized, per year. -- on a plummet checks. -- unemployment checks. it comes to leadership we have seen that restricted to the big tech giants and health care. will we continue to see that her could this be more widespread? out there or could this be more widespread? >> certain technology companies and certain health care companies and i think we will not see a turnaround in the value stocks, the smaller cap stocks. this is still a market where the strong will get stronger and the big will get bigger, for the foreseeable future. i'm not looking for any change in that. over exuberant now, because

it does seem like participants are pricing in a v-shaped recovery, when we know there's a slim chance of that happening in most economies around the world. >> as far as the u.s. goes, we should see our worst economic numbers in the second quarter, but by the time we get the numbers for june, i think we will start to see an improvement. you will have the opening of the economy and the benefit of liquidity the fed has spread around, and the benefit of higher incomes, thanks to those unemployment checks that have been passed around. from there i think we will see strength in the second half of the year. when you look at the market, it was at a 30% rebound from the low point at the end of march, which shows you the power of the fed and pumping in liquidity to the system. so i would not rule out a small correction on that but not near a 20% step back, thanks to the

liquidity and that the economy in a few months will be improving on a fundamental basis. >> so, at least in the medium-term, if this is a fed liquidity policy driven rally we are seeing, as a long-term investor, where would you be recommending you put your money, by the time we come to the date when that policy support is withdrawn? equities willnk be an attractive asset class, because i do not see any sign we will have an increase in interest rates. the fed brought interest rates down was no turnaround there. so the cash flow and dividend stream from equities i think will continue to be attractive compared to risk-free, and in the u.s. especially, the high-yield markets, the so called? market, will be pretty attractive because those bond prices and yields one up along with equities. so they are really at an attractive level where yields 5.75, four top-tier

names and a percent for middletown names and the prices of these bonds are now discounted at say 5% or 10% from their face value. so if the economy stabilizes and starts to improve even gradually, we could see equity-like returns from that part of the fixed income market, close to 10%, say. >> dress companies falling to junk at the fastest pace in and the fed seems to be backstopping corporate credit as well. >> i think that will help the price action in by good companies. i do not think anything is going to save that numerous companies we are starting to see file for bankruptcy is. that would be industries in the travel and leisure sector, retail, restaurants, and energy, i think we will continue to see sharply higher default. the fed is not going to be able to help those companies, but other companies will benefit. and you have seen record

issuance from investment grade companies and from high-yield companies so far in the last month or two, with a are proactively try to raise cash, not to spend it, but just to hold it on their books, so they can meet their liquidity needs case the banks tell them they will not lend them any money, so they can control their own destiny by raising cash. so it is incredible to see investors enthusiastically accepting these deals from good-quality junk companies or investment grade companies, that the idea they are not going to spend it and we'll just keep it on their books, in case of a rainy day, if the economy does not pick up, and the next couple of quarters. >> given your outlook, are you also heading for inflation? how would you do that? -- hedging for inflation? >> i thick inflation is dead for the foreseeable future, so nothing with inflation. we do not particular care for commodities for that reason. we think this trend of deflationary forces we have seen in asia, and europe, will continue to prevail in the u.s.. so we are not looking for any

inflationary action. >> how long does that outlook last for then, the other concern is that even you say there will be an increase in incomes, is that discretionary income? with the levels of unemployment we are seeing, is it reasonable to expect this will not be a consumer driven recovery? >> i think it will be a consumer driven recovery, because many consumers have kept their jobs through this time. and the money flow to small businesses and to those who lost their jobs, is designed to basically replace those incomes. yet, in some cases, people will be getting a higher unemployment pay than they were when they were employed. so, some people of criticized

the program for that reason. but i think anything that keeps the consumer a, even a few extra dollars here and there, is really to the good of the whole economy. great to have you with us, wells fargo asset management. let's get a quick check of the latest is this flash headlines. the billionaire behind the india carrier indigo is considering a bid for virgin australia, to capitalize on the first airline casualty from the coronavirus. he is one of 20 potential buyers ros: --. deloitte is seeking binding offers by june. version collapsed owing $4.5 billion and indigo itself says is not involved. elon musk is headed for a showdown with california, demanding that his fremont california factory stay shut because of the california -- because of the coronavirus.

musk says he will reopen and ask that if anyone gets arrested that it only be me. the plant has been closed since march 23. -- treasuryretary secretary steven mnuchin and weight in urging california to prioritize reopening. filing as thesee virus crash demand raises doubts on ability to repay debt. it says it may not have enough cash to repay bells amid the bleak outlook for car rentals. the first quarter loss per share at $1.92. autonation says the decline in auto sales during u.s. lockdowns has paired to 20% down from 50% at the end of april. this underscores pent-up demand, particularly for pickup truck's. half,iness was cut in with shelter-in-place, sales down 50%. protecto take action to

furloughed 7000 associates, almost 30% of the company. but we were deemed essential everywhere that we operated. and if you think about it, we are. all of the doctors and nurses, firemen, policemen, if they have diff cultic with their vehicle, they had to -- they had to be fixed. i think all of the autonation employees. customers said they want a safe environment within which to do business, and we have extensive protocols for that. but they said they want personal space and mobility. they want their own personal cars, where they decide who is in it when, and they control the safety of that environment. so, we see in automotive recovery that is underway. from 50%e developed down, to 20% down by the end of

april, going into may. have developed. so there's pent-up demand. expectation for personal safety. financing isabel and cheap, contrary to the great recession. -- financing is available and cheap. we need plans to restart. we are going to need more inventory. we fully support the reopening of the plant. even elon musk should be allowed to reopen the tesla plant in california. i do not understand how you can fly a plane packed like sardines but you cannot open up plants with fred percent -- with 30% of the workforce. plants need to reopen and the auto recovery is underway. >> based on that and i'm glad you brought up inventory. i wonder where the holes are? as economic activity restarts in your company sees better sales, where are your holes? >> on the new vehicle side, is pickup truck's in particular,

the general motors summer auto and gmc. if you think about it they had the strike, which reduced avella velti and then got hit -- reduced availability. in the most demand relative to supply, the silverado. pickup truck's performed the best through this disruptive. , only down 10%. if they can restart the pickup i will bet first, standing here in line saying send me all you can get. but the point is that america needs to gradually, safely reopen and resume economic activity. >> and you mentioned you will be the first in line saying give me all of your talks. how does that shortfall in supply and inventory affect pricing? -- all of your truck. expectation for

personal mobility and safety is the number one priority. if to be not have a new, we will offer preowned. at the moment they are very flexible and willing to change. -- trucks. the availability of the preowned overall is very good. but you cannot leave these plants closed, when you have an automotive recovery that is underway. there will be twist and turns and surprises, yet in 2020. by how it all develops, 2021, it should be a very good year for automotive. >> that was the autonation chairman and ceo speaking to us earlier. next, president trump says he is not interested in reopening these trade talks with china. we will discuss the latest rises in tensions amid reports that agent may void the deal altogether. this is bloomberg. ♪

>> we are getting breaking lines causing the bloomberg. the u.s. senate approved a bill to give taiwan observer status at the world health organization. this is a politically sensitive move. campaign tocked grant taiwan observer status at of its, because largely perceived early successes and containing the coronavirus outbreak there. of course a fairly difficult dispute when it comes to how beijing would feel about this. the u.s. senate approved the belt when it comes to granting taiwan observer status at the world health organization.

-- the bill. we will get more on that as the details come in. let's take a look at our markets in the early part of the session. we see modest moves this tuesday of u.s. futures under pressure, one off .2%. kiwi crowned -- kiwi stocks gaining ground for seventh straight day, the highest level since march 11. gains this morning indicating perhaps the worst case scenario imagined over the past month may be avoided. goldman sachs says the oil market is now on the path toward rebalancing. and global inventories are slowing while falling in china. the bond market remains sharply in focus as supplies loom large. the aussie tenure yelled edging closer to 100 basis points as we learn deal tells of the governments plan to issue a syndicated sell of 2030 treasury bonds with guidance indicating at spread of seven to 10 basis

with pricing expected on wednesday and settlement next thursday. in the terminal, several indian provinces will tap debt markets along with the government tuesday. head of the -- ahead of that, indian bond markets were shocked by buddy's plan to boost borrowing 54%, sending the 10 year yield higher by 20 basis points. this would increase the budget deficit to 5.5 certain debts percent of gdp. a snapshot of chinese bonds using this chart on the terminal. we saw the selloff worsening monday. the 10 year yield for chinese bonds surging to a march high amid concern investors may switch to local government debt. 2.8% z sees a rise to before stabilizing for the tenure yelled, making for a potentially -- 10 year yield making for a potential good entry point. shery: president trump responded to reports china is considering scrapping the phase one trade dealt amid the coronavirus pandemic by saying he has not

interested in restarting talks. >> we signed a deal and i had heard that they would like to reopen the trade talk to make it a better deal for them. china has been taking advantage of the united states for many that because we had people allow that to happen and i'm not interested. congressional government reporter emily wilkins joins us from washington. billthe senate approving a on giving taiwan it's observer status, on that world health organization. so it is not just the trade front but geopolitics, and the ongoing tech or between the two. we see tensions begin to escalate between beijing and washington. >> yes and this is something we have been seeing for a while.

back and forth between the u.s., trying to elevate itself and saying china has not done a good job, blaming them for the virus in the first place, and china turning around and blaming the u.s. for their response. you have seen these tensions built between the two of them, and you saw them today when trump was talking to reporters. last week it was clarified that u.s. and chinese officials are still set to talk about the current trade deal. the new reporting today that there have been some officials in beijing who have discussed straw joshua discussed scrapping it. -- you have discussed scrapping it. but we have not heard anything about the talks being called off. in the meantime, what are we seeing in terms of the virus response? president trump speaking earlier to reporters sounding confident or triumphant saying they have managed to overcome their desires -- the virus. but we are still seeing new

infections and the grim milestone when it comes to u.s. deaths. been with a consistent positive message throughout the coronavirus, throughout the last several months, always trying to talk about how great america's doing, even when he is not strictly speaking, being accurate. he did say the data the u.s. -- he said today that the u.s. had prevailed. he later clarified he was to hear about testing. farthat the u.s. has come in the last several months on its ability to test, it's number of tests. certainly, though, there are differing opinions out there, about how will the u.s. is doing on testing. but we are seeing more deaths. we are seeing more infections. this is certainly not something the u.s. has gotten over at this point. also, a lot of people are talking about the second wave. so even if we do start to see the number of infections and the number of deaths decline, there are individuals in the government and elsewhere, who

are concerned we are going to see another huge swell of cases, this fall. >> already we are seeing infections at the high strength of the government in washington, d.c.. >> yes. presspresident mike pence' secretary tested positive for the kona virus. -- for the coronavirus and he has been quarantined himself. they spoke on the phone but he has not tina present face-to-face. they're bent -- he has not spoken to the president face-to-face. the white house released a memo saying staffers and visitors need to wear masks. todayw president trump address reporters without wearing a mask himself. so they are not incredibly strict standards at this point. but we are starting to see the white house respond to this, within the white house itself. alright, a bit of confusion there still.

emily wilkins our congressional government reporter. for the effectiveness of world,ng, around the hinges on how governments, companies and the public oh about it. joshua bashar steen, the vice dean at johns hopkins bloomberg school of public health, gave us his views about proper execution. dependsbility to open on more than masks and gloves. measure andstopgap how will they work is not as well-known as you might think. the most important thing is the ability to stay away from each other physically and to have an area between people, particularly like cash registers, which will prevent droplets from spreading better than a mask would. it is possible in some areas to do that. as cases are coming down and as we have more public health

measures and as hospitals are doing better about it has to be done very carefully and it is not the just wear a mask in gloves and you are good to go. >> how does contact tracing work? is it the most effective tool we have? >> it is a critical tool. you want to stop the virus from spreading from person-to-person without having to tell everyone to go home and stand home. what you do is, you find someone who has the coronavirus,. they have a test in their positive. you call them right away and find out who they have been in contact with during their infectious. -- their infectious time a couple of days before symptoms. and then quickly you call them and tell them they may have been exposed and that they should quarantined themselves so that when they start getting infection there is no one for them to give it to. that is the basic idea. it requires a lot of people to do. in new york they are planning to

hire something like 10,000 people. but if you can do it, even if it is not perfect, you can really slow the spread of the virus. joshua shar steen -- sharfstein of the johns hopkins uber school of public health. dots was funded by bloomberg, owner of this company. -- of the johns hopkins bloomberg school of public health. that is also followed by michael bloomberg, the owner of bloomberg lp. musk isp, why elon prepared to defy the local lockdown opening his tesla plant in california. this is bloomberg. ♪

this is "bloomberg daybreak: asia." >> indonesia's warning about capital exodus. the domino effect may require extra steps. china is ready to lift part of the state of emergency. liftpan the government may restrictions in summer prefectures. company's are vital to

national security and the government has a list of firms to be protected sam farr and investors will be asked to say when they plan to buy a more than 1% stake. that is down from the current 10% holdings. the steps apply to more than half of japan's listed companies, although exemptions apply to registered investors. announced a has surprise cut in oil output to its lowest in 18 years as it tries to counter the energy crisis crippling the economy. hours after releasing new austerity measures, the kingdom said it will cut production by one million barrels per day on top of what has agreed with opec plus allies. oil futures rose on that news, which was followed by cuts from kuwait and uae. two aides working for a venezuelan opposition leader juan guaido resigned over last week's botched invasion. both were close advisers in the inner circle and one says, he had been in contact with former u.s. greenbrae jon hood wrote he said the raid was into been is

well up from club you. eight people were killed when the mission was intercepted with 40 arrested, including to u.s. soldiers. global news 24 hours a day on air and at quicktake by bloomberg. on air and on quicktake by bloomberg. powered by more than 2700 journalists and analysts in 120 countries. this is bloomberg. says tesla is restarting production at a plant in fremont, california, in defiance of local authorities. ask is asking only he be apprehended if there are any arrests. reporter joinso us now. why is he pushing so hard on this issue? >> if you put all the tweets to one side, at the center of the story is the fremont manufacturing plant. it is a stated annual capacity of 500,000 vehicles. it is the only site where they produce model s, model x and model why. -- model y.

they have the shanghai plant which is up and running but as one analyst put it, fremont is the heart and lungs of its level operation. elon has expressed he is frustrated the rest of the automotive industry around him in other states and jurisdictions, has been able to at least plan to restart manufacturing and production. if you look at gm, ford and chrysler, they have not restarted. they just have a more clear plan to do so. this is what it is all about. tesla has such a positive start to the year. they recorded a profit for the first quarter of the first time in their history they were ahead suvschedule on the model 'y' and they started manufacturing in january and delivering it in march. suddenly pandemic hit and it really hurt tesla. if you read between all the announcementsnd tesla is making an elon's tweets, it comes back to how important fremont is to tesla's global operation.

>> we have heard from alameda county as well, saying tesla will cement operation plans today. what are they saying? -- will submit plans. >> alameda county is a county that fremont is then within the state of california. on may 8, governor newsom of california omma started reopening the economy in the state. he said those local authorities and local counties could keep in place more restrictive measures if they want to. so alameda county has said today they found out tesla has restarted production and it is a surprise to them. and that those restrictive measures the county has kept in place, which prevent production, at tesla's facility, they remain. and while they are in talks with tesla, tesla is currently contravening, is going against those laws in place. so we are waiting to see what the end result is. basically, the focus in alameda

county, where there are 2 million people, and work tesla has 10,000 workers, the progress on the testing front, with the coronavirus. there is dialogue, according to multiple officials, between tesla and element a county. -- and alameda county. but right now the alameda county rules state tesla cannot manufacture at full capacity. according to tesla, that is exact the what they are doing. player whenhere a it comes to -- what is the play when it comes to other makers around the u.s.? >> elon musk cited in a blog post over the weekend and in his tweets is that tesla is not an outlier in their actions and that others are restarting. but that is not actually true. ford and general motors have set dates for reopening and restarting production, but those have been pushed back on more than one occasion. if you look at the automakers, they have been in on making -- ongoing talks with the unions and their workers about how to do that safely. the current restart date for

ford and gm, and i think right -- i think fiat chrysler, is eight may 18, one week from today. so it is not true, when elon says, some of their peers in the automotive industry are restarting. the big difference is general motors, ford, are very public and saying that they are working alongside authorities at all levels, federal, state and local authority, in the timing of it, and they have not plowed ahead or taken any action to contravene any role at any level of government. bloomberg autos reporter ed ludlow. crashes, we discussed the cryptocurrency outlook ahead. this is bloomberg. ♪

>> let's get a check of the latest business flash headlines. amsi soared on reports amazon is discussing a possible takeover. -- amc. another outlet cast doubt on the story. you can mail on sunday said it is not clear if talks are out -- active or will lead to a deal. neither amc nor amazon made a comment. amc has fallen this year with the wider entertainment industry battered by the coronavirus restrictions. the billionaire behind indian budget carrier indigo is considering a bid for virgin australia, looking to capitalize

on the first airline casualty from the coronavirus. he is one of at least 20 potential buyers. administrator delight is taking bets by friday, and binding offers by june. -- administrator deloitte. virgin collapsed showing $4.5 billion. indigo says it is not involved. virgin group says it is considering one half billion dollar sale of shares in its space travel company galactic, to save its airline and travel businesses here on earth. -- vergence has proceeds would go toward supporting its portfolio of leisure, travel and holiday businesses hit by covid-19. last october, burton galactic became the first space tourism cavities go public. -- virgin galactic. bitcoin faced a key technical event a few hours ago known as having, are for recurring every four years or so. the amount that coin miners receive has been cut in half to

keep a lid on inflation. analysts have debated what effect this would have on the market. bitcoin chairman joins us now. roger, great to have you. prices willh is fall. explain the significance of this event and whether the news around this is the way you would have anticipated? >> what they always say is true. you rock by on the river and sell on the news. today -- you buy on the rumor and sell on the news. today we see the happening happening. this is the third when i have been through and there will be another one for years from now. that will not be a surprise. is, they what happened miners get half the amount of money they got before. so, therefore there shuffling their trades around for whatever coins are most profitable for them to mind and we will see that continue to happen about every four years. -- to mine. dislocatione

between what economists are saying about economic prospects and the prospects for a global recovery and what we are seeing in more conventional risk assets and equity markets. how would these concerns about the pandemic and what the world looks like most coronavirus, impacted the bitcoin story? >> and impacts everything. i am very bullish on the world economy here. so many people are not allowed to go to their jobs. we see elon musk is saying come arrest me, for getting back to work and more power to him for taking a stand like that. if printing money could make everyone wealthy, why would anyone how to work ever? you could pray money and send everyone a check. but it does not work. people have to go to the factories into the farms and produce what people need. if people are not allowed to go to work and produce what people need, there will not be enough to go around. so printing money does not solve problems, it causes more. the same is true in cryptocurrency and that is what attracts people to it. there are these hard limits to

it, where you cannot have a central bank or central monetary a 40, -- authority, crate more out of thin air. that is why it is important to make cryptocurrency useful as currency, so people can opt out of curtsies and use cryptocurrency to pay employees are receive a paycheck. and people have an option if they do not want to be beholden to the dollar or the euro or the yen, there another option and cryptocurrencies provided. >> you said this was expected but is it problematic that even with tighter supply you are knotting a boost in prices? or is it just because it has already been priced in? >> i think it is already been priced in. remember, that tighter supply or lower issuance has only been going on for a couple of hours. if you expect to see anything happen, it would take weeks or months. but everyone has known this would be the case for years so i think it has already been priced into the market for a long time. post pandemic world,

people are cooped up in their homes, we are seeing more people getting on the internet. will this help expansion of cryptocurrency? that is, pokeris website, where people can play poker using cryptocurrency. when the lockdown started, the amount of volume and traffic of people playing just exploded. that was good for cryptocurrency, but that is assigned it is bad for the economy. if everyone is playing poker every day, cars and food are not getting produced. the amount of traffic going to bitcoin.com and other websites have not substantially since the lockdown began. -- have been up substantially. >> is there a role for coins going forward to bridge the gap you have between cryptocurrency and more conventional investment assets? >> there is clearly a role for the stable coins and the fact that tether is one of the top

cryptocurrencies in the world is a clear indication of that. it's important to room or that stable coins are not actually stable. you are mercy of whoever's assets are backing the coins the issue. but it is a convenient tool if you have to do a wire transfer and try setting a stable coin, the stable kind went in terms of speed and convenience and everything i think we will see more people around the world using steeple coins in addition to cryptocurrencies. -- stable coins. >> your views on whether the u.s. and global economy should reopen, on par with more of a libertarian view on the economy as well. have you seen through this lockdown and coronavirus covid-19 and induce chained to society, a shift -- induced change to society, shift and the type of people investing in cryptocurrency? >> yes i think the type of people investing in crypto traditionally have been the

contrary in and libertarian types and these people have been involved for years. now, maybe the people who are not necessarily of that mindset, they are home all day with nothing to do, surfing the internet, and say they will look into the cryptocurrency thing and maybe now is the time and we are seeing so many people. you can buy $10,000 of cryptocurrency day in the bitcoin.com wallet and our highest volumes ever, so is nice to see. apparently people have money when it comes to trying to buy crypto. withger, great to have you us, bitcoin.com executive chairman. we will have more later when we are joined by bt group director dave chapman. plenty more ahead. this is bloomberg. ♪ staying connected your way is easier than ever.

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from all of that on xfinity.com. faster than a call. easy as a tap. now that's simple, easy, awesome. welcome to daybreak asia. i'm haidi stroud-watts. australia, japan and south korea just opened. our top stories, trade tensions have been rising again. china may terminate the phase one deal or demand new terms. president trump says he is not interested. asia tradingned in as additional cuts from saudi arabia eased pressure on storage sites.

futures rising in new york, raising most of monday's declines. global shipping, the coronavirus devastates demand. theill outlook -- discuss outlook for japan's largest operator. straight to the markets, sophie is in hong kong. sophie: kicking it off in tokyo, the nikkei 225 gaining round by 0.1%, fluctuations over the topix after a two-day advance that pushed it towards a bull yet.t but not there the yen study after falling the most since march 5 ahead of it -- a heavyngs day earnings day. ahead of the sale of tenure bonds, gdp traders will be keeping watch after benchmark yields rose above zero for the first time in more than two weeks. let's check in on the mood in seoul. the cost be edging higher while the korean won is him -- on the back foot.

high-frequency indicators bloomberg bloomberg shows -- 50 day moving average on monday, and bonds continue to fall in australia ahead of the business confidence data. a new deal as a new syndicated sale opens. treasuries holding steady at the asia open ahead of a tenure sale of the u.s. with a record size of $32 billion plus. there are five speakers scheduled later tuesday. you can see the dollar extending gains after the fed downplayed the idea of negative rates. in the oil patch, w g.i. and brent gaining ground, erasing monday's drops after storage pressures partly relieved by saudi surprise move to cut output by another one million barrels per day. coming outking news of china, we are getting the

latest coronavirus case numbers, one additional case reported for may 11. we have seen a bit of a spike in chinese cases. china had locked down the northeastern city of shalott because of a surge in infections , not to mention wuhan reporting its first case. they have one additional case for may 11. let's turn to the markets. asia?s happening across the secondtioned wave of infections in china but also we do have the war of words escalating between washington and beijing. president trump says he is not willing to restart talks with china as china reports 15 new asymptomatic coronavirus cases on may 11. how are we expecting risk assets to do given this background?

mark: it is a mixed picture the way wall street finished yesterday. there was no clear indication of which way asia should be going. one of the good things that happened in terms of the china markets, after the equities finished yesterday, we have the money supply data which is boy and. nt after fouruoya years of money supply coming through at a slower pace. we are seeing a positive start to the year particularly for m2 money supply. there was good data from aggregate financing. this will be helpful to china's stocks in particular. a clear sign that the pboc is making sure there is ample money supply going around in china. it is beginning to show up in things like a rebound in car sales and other consumer items. at least there is something positive for china to feed off of. but the risk of a second wave of infections is something that is hanging over all countries, not

just asia but everywhere in the world there is a risk. if lockdowns are and it too quickly, we could have a second wave later in the year. that will be weighing on us for some time. it was a risk that with the presidential election, we make it tough talks on tariffs. those things are not an immediate concern but for the ate being, people will look things like money supply on -- to get a better handle on where things are going. expect to hear jay powell pushback against negative rates this week? mark: that has been the message from his federal -- fellow speakers. we had a couple more people speaking overnight and the prasm last week. there seems to be a consensus among the fed speakers that the idea of going negative is really a step they don't want to be forced into. it out 100% calling

but they are certainly suggesting the bar to negative rates is extremely high. there is a bit more urgency with jerome powell speaking because the fed futures market has started to price in slightly negative rates. it is a timely opportunity for him to say, we are not giving this serious consideration now. he may be able to take some of the steam out of the market before it gets carried away. he would like to avoid a situation where the market is pricing in deeply negative rates when he is not ready to discuss it seriously. a challenge to reinforce the message that that is not something the fed is contemplating. they will continue with liquidity and do all they can in buying bonds and helping loans to various sectors of the economy but the idea of going through to zero is not something you want to be trapped in until they put a better -- get a better handle on where the u.s. economy is going over the coming so.hs, possibly a year or

it is a discussion you would like to push back. shery: as a developing story in europe, how big of a threat is the dispute between the eu and germany over bond buying to the mark: potential he it is a serious issue but in the affecterm, it doesn't how ecb buys bonds on a day-to-day basis which is more important for the market, as their operations will continue for the time day -- being. the markets are taking it relatively calmly particularly italian bonds, which are one of the most affected by this if the ecb was forced to stop buying. it is an unusual situation. it could turn nasty if the two sides don't come together and settle this, because germany and the european union are in a situation where they are questioning the legality of buying bonds on a long-term basis.

that has serious repercussions not just for the bond market, but probably for the value of the euro. behind-the-scenes they are working hard to try to defuse the situation and try to prove hasecb is independent and the authority of the eu behind it and it can continue to do the operations it is scheduled to do. it is a dispute that people have to keep an eye on, because if we do see the italian bond market taking flight, that will have an effect across equities and other factors in european markets. something to keep an eye on come although it is not an immediate threat to markets. mark cranfield there. you can follow this story and today's trading action on our markets live blog on the bloomberg. still ahead on daybreak asia, we take a look at how the shipping industry helps to navigate the virus fallout. japan's largest container shipping operator, ocean network, the risk. credit growth

numbers out of china. is it a sign of policy support starting to work? this is bloomberg. ♪

>> you are watching daybreak asia. china says leadership may consider ending the phase one trade deal with the u.s.. the global's times says there is anger over accusations of the handling of the coronavirus outbreak. there is a growing call to renegotiate the deal to tilt the

agreement more to the chinese side. the global times says this move could be justified. >> we signed a deal. i heard that. they would like to reopen the trade talks and make it a better deal for them. china has been taking advantage of the united states for many years, for decades. because we had people at this position where i am standing, sitting in that office, the oval office, that allowed that to happen. i'm not interested in that. let's see if they live up to the deal they signed. is lifting its nationwide lockdown as daily new cases of coronavirus surge past most european countries. president putin's ending the stay-at-home order while putting the responsibility on regional leaders. russia's economy contracted by a third since the lockdown began. the oil collapse adds pressure. infections topped 10000 and a day for the past eight days.

japan may limit foreign investment in its companies that it's has are vital to national security. the government has a list of firms to be protected, saying foreign investors will be asked when they plan to buy more than 1% stake. that is down from the current 10% holding. the steps apply to more than half of japan's listed companies come although exemptions apply to registered investors. global news 24 hours per day, on-air and on quick take by bloomberg, powered by more than 2700 journalists and analysts in more than 120 countries. i'm karina mitchell. this is bloomberg. shery: china's aggregate financing almost doubled in april from what we saw last year as china continues to see an impact of the pandemic. this as we see another rise infections in the country. we are joined by becky liu to discuss the latest numbers and more data expected out this week. great to have you with us. what is the credit overshoot

telling us about what potential measures we are seeing across what can wemakers? expect in terms of the budget deficit as we are approaching the national people's congress? becky: for the stronger-than-expected credit data, it shows the recovery is on the way. the government's earlier stimulus policies, including easing monetary policy together and easier credit policy, lending has shown signs of working. it is likely leading to a faster recovery of the chinese economy in the coming quarters. at the same time, we are about to have the most important meeting of the year, the mpc in late may. -- we aree expected looking for the de facto budget deficit to rise beyond 9% of gdp, so we are looking for at

least a 9%. when it comes to the official budget deficit, we are likely to see that coming out at 3.5% of gdp, which is not as aggressive as the budget deficit. that is because the local government project bond together with the amount of special government bonds might not be included in part of the budget. haidi: how big is that part of the type of support the chinese are giving their local governments? becky: we have already seen local government bonds picking up aggressively. the government has already preapproved three phases of the local government project bonds this year and this is unprecedented. by the end of may, they have a very aggressive target. they will utilize the newly approved [indiscernible] we are looking for local nearlyents project doubling from last year's level

to 4.1 trillion this year and at the same time, looking for the government to announce 2 trillion of special government it would be the third one in the history of china. that in line with the credit overshoot alongside the change in language we have seen from the people's bank of china, is this a return to the old stimulus playbook or is it still a more nuanced approach this time? becky: it is slightly similar to the old approach by simulating by simulating economic growth. it is an extremely aggressive stimulus like what we have seen during the subprime crisis. at the same time, what they are doing on the back of the infrastructure investment is different. china has been using this term called new infrastructure or a

couple months, which includes new areas of development [indiscernible] industries. in short, because of the highly uncertain covid-19 situation abroad, external demand has already been weakening substantially so china's policy has been turning more inward. ,lso, because of the pandemic the unemployment rate has been rising and therefore, it is not easy to stimulate domestic consumption. domestic investment, especially infrastructure investment, becomes one of the key tools policymakers will be using to support the economy past recovery. -- the economy's recovery. shery: how robust is the recovery likely to be without it being a strongly driven consumer recovery aga we have seen some ad hoc measures where some places are giving out consumption vouchers to try to

stir up a little more demand, but is that likely to be the story? a consumption driven recovery in china? becky: it is more likely to be an investment driven recovery, at least in the initial parts. we already started to see a nice recovery of construction activities and on the other hand , consumption has also been showing signs of recovery. china already has about 60% of gdp driven by consumption prior to the outbreak of the virus, therefore at this time, the virus is going to hit the economy much harder compared to the last period. when it comes to consumption, we have also seen the government trying to stimulate consumption, which we started to see some small signs of recovery in car sales. willonsumption vouchers make some inroads but that is not enough to completely offset the damage because of the higher

unemployment rate. therefore, we are looking for a relatively modest recovery in the second quarter at about 2%-3%. we are looking for gdp to be 2%, sightly over 2%. shery: what will this do to our view onecky: the covid-19 impact on inflation , in theinitially aftermath of the outbreak, due to production disruption, overtime it will [indiscernible] that isof the supply going to normalize. production will normalize but demand will decline domestically and externally. thank you for joining us. becky liu.

coming up, we will be looking at china's cpl with an economist. let's take a look at the inflation related names. sophie: taking a look at auto stocks in japan, demand revival could have exposure to the u.s.. we have seen car sales in china improving, but there it -- is a long way to go. toyota and honda under pressure on -- after earnings reports after both stocks are among the x monday. for the topi bridgestone off 3% after reporting it to -- a 65% drop in first-quarter profits. maker borrowed ¥200 billion from local banks and is reportedly seeking to raise another ¥300 billion in fund sharing. shery: saudi arabia/is oil

output -- slashes oil output. that is next. this is bloomberg. ♪

shery: a quick check of the latest business flash headlines. boeing's ceo delivered more bad news for the airline industry, saying it is most likely a u.s. carrier -- the u.s. carrier will fold by september and air travel levels will still be at just 25% by then. the share price has fallen 70% since march. airlines are looking to cancel or return orders because of the coronavirus. airplane factories are being closed and boeings 737 max has been delayed again. an indiannaire behind budget carrier indigo is considering a bid for virginia australia, looking to capitalize casualtiest airline

of coronavirus. friday.eking bids by virgin collapsed last month, owing $4.5 billion. indigo says it is not involved. virgin group says it is considering a half $1 billion sale of shares in the space travel company galactic to save the airline and travel businesses. virgin says the proceeds would go towards supporting the -- and hitthat is it by covid-19. virgin galactic became the first space tourism company to go public. are reboundinges in early trading. they fell on monday after saudi arabia cut output in a move that was meant to support prices. james joins us on the line from sydney. what is behind the improvement in sentiment? while prices fell

there are concerns about what that says about the weakness in underlying demand. james: i think that is right. to a certain extent we need to look through the saudi output cuts. there are doubts, with how long it could take them to turn around these cuts. it speaks to the underlying weakness in the market. one analyst mentioned if they could find buyers for the oil they wouldn't be cutting production. that says everything. by this amount, it would is some of the pressure on the storage levels that would -- that are brimming to full capacity. that is why we saw this dramatic gyration in the market, when the previous contract expired we saw the negative prices. that will go some way to at least removing concerns that we might be facing full supply once

again. it has brought some stability to the markets. shery: we have to back out and sort of kind of get a sense of where oil prices have gone, and where these players have gone from two months ago when we had this price war, and suddenly we have voluntary cuts. what are we hearing from saudi arabia and russia? james: that is partly white i we we need to -- why i say need to look at the bigger picture. the supply response to the price collapse is coming. it will take a while to get through. theave had a strong bounce, last couple weeks the market has rebounded back into the 20's per barrel from levels below 10. that is a strong rally in the context of the structure we have

seen from covid. the price action we have seen this week is the market digesting the recovery, and taking stock of where we are at and the fact that demand is still low, but showing signs that we might be reviving. the saudis and russians are making noise and the market is getting closer to rebalancing. in the eye of the storm, saudi aramco. media not invited, but what are james: weng to learn? will get some insight into how much the demand has been destroyed by covid. i wouldn't expect it to be so weak, given the worst of the price drop came in april. that will be reflected in march numbers. there will be no analysts, so we might be limited in what we find out from these earnings. shery: jim thornhill, thank you.

we will have more on the u.s.-china trade deal next. this is bloomberg. ♪ save hundreds on your wireless bill

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>> we have breaking news at the moment. we are now hearing from the president that some areas will remain on lockdown this coming from the filipino president saying that some philippine areas will remain on lockdown following the global pap. we have seen some moves to reopen some economies around the world but others are tightening restrictions given there has been a second wave of restrictions in some parts and the latest from the phillipines

that some areas across the country that will remain on lockdown. >> and we have seen what looks like an aparent escalation between trade between australia and china, this is coming after talk of a tariff being imposed on bali exports. and there is an import ban on four. this is a black listing of red meat and south wales after they put the tariffs on bali. there are increasing concerns which is a meat work preparations being expanded this is just the beginning of escalated tensions and could create harm on the part nears.

>> and we continue to see trade tensions between china and the u.s. according to state media. china media avoiding the phase one trade deals and there are questions over china's purchases of u.s. goods and president trump is not re-interested in starting talks. tom, is a deal now in jeopardy? >> certainly under presenter. china hasn't bought much because the economy is under major pressure here and that's one area of concern. and you have heard president trump and others suggesting that they could walk back on the phase one deal. in january when they signed off, president trump said phase two and phase three in 2020. the focus is whether or not they

can maintain the phase one deal as it stands. we had this editorial and reporting in the "global times" looking there are officials that are now considering the possibility, the possibility of knicksing this trade deal and they are angry about the negotiations about the way china has handled this response. and the opening trade one deals trying to push it to the chinese side. that is highly unlikely. he idea from china is they could measure these measures or they do could just use that and rework it and it could be the rhetorical sparring and worth reminding that we haved the talks on the u.s. side.

and both sides on the back of that issue to communicate that they were communicate and reach these agreements around the phase one deal and work towards that goal. cases in wuhan. and despite those numbers coming down, where are the concerns at this point? >> it is all about whether or not we will see a second wave in china and testing and screening and temperature checks and scanning people's smartphones and make sure there isn't a second wave. they have been isolated out breaks. five people confirmed cases all of them living in the same

residential come pound but russia border and china-north korea border. according to officials it hasn't spread yet but first are making sure they are monitoring and tracing everyone and it is a stress test of the system as they are trying to get the economy back into full throttle. headlines at ur this hour. global health services are warning of a second wave with new cases seen in south korea and on the on the other hand italy has recorded e fewest since march 4 and spain and greece. germany, and failure to agree to

a deal. the latest and germany's main business says progress has been completely inadequate. the coronavirus has cost millions of jobs. and difficult situation into disaster. saudi arabia has announced a surprise cut in oil output as it tries to get the energy crisis. the kingdom said it will cut production on top of what it has already agreed with opec. il futures followed by cuts by u.a.e. carried it ian navy out. a ship was hit and major oil and gas terminal, months after the

revolutionary guard mistakenly shot down a ukranian airliner after it had taken off from iran. and we have an alert. the federal reserve the secondary market in a silt will buy e.t.f.'s on friday and announced they would do this through the second market lending through the fed's primary and secondary market. and purchases are corporate bonds. that will start soon thereafter. and included in the secondary facility. boost included to liquid witness in the markets. they haven't been set up and the fed will be buying e.t.f.'s on tuesday and up to $750 billion

in debt and e.t.f.'s under their emergency coronavirus action. how the shipping industry is navigating the coronavirus fallout with the c.e.o. of japan's largest network. this is bloomberg. ♪

>> strong demand. a major question is when the industry might rebound and global trade will be permanently affected by the pandemic. c.e.o. of ocean network express, japan's largest shipment container. and what is the scene you have seen in the economic downtown we have seen on your business? >> we saw this big supply shock going back to the chinese new year and after it evolved and markets tightening up where we were sourcing from kine and the health situation became more under control and we saw production coming back.

and march what was not too bad for the container ship industry nd it became a demand with north america and europe and latin america and africa backing up. we have seen a slowdown in bookings where the supply chain has impacted more by footfall jon ore impacted by non- line sales activity. in terms of asia exports out of asia about a 20% dropdown in terms of bookings during april and we expect that to continue into may and for a little bit too early to say in june but june will be around that ball park as well.

we are seeing the lockdown being lifted in certain localities in europe and north america and starting to see manufacturing production coming back again. we would expect july and august to see some further pickup in overall demand in container shipping. >> does the amount of debate had about what global supply chains will look at and people are saying we will see disruptions and becoming more localized. is that something there will be permanent structural alterations to shipping the way global trade is conducted? as we know in 2019 we faced the u.s.-china tariff dispute and that has many executives of supply chains looking at what

they wanted to do to mitigate risks in supply chains. we have been seeing it in any way of having your eggs in one basket. so china has been edging down in terms of its every overrule significant supply chain mix. and we are seeing it in terms of sourcing and one key part is the drive and increasing move towards online retail back in the north american-european and here in the asian markets. it is doing very well. nybody is very challenged. those two dynamics are probably sourcing from more futures in the and one particular location and secondly, problemly more

online sales and that is good because what it does it steadies out the flow rather than having these seasonal peaks built around these particular shopping activities at certain times of the year. steady s much more of a flow. rather than waiting for shop hours. >> if you think the trade will become more widespread around the world and not focused ol specific destinations is your location to counter that type of demand in shipping? we ocial network we call it are in 130 countries in the world. the covid-19 development has had an impact depending on the health situation and government

policies and that economic curve in terms of lagging effects. so we are well positioned to cover imports and exports out of those different locations and countries. hile i talk about export demands with asia being down 20% in may and june, what we are eeing, the actual imports into asia. latin america, ocean yeah are holding up because because they are generally grocery items and household effects and those are holding up pretty good because the consumer nation is doing very well in terms of purchasing. >> and the outlook is so uncertain. how are you staying anymoreble and taking any measures on costs? >> what we are doing, we are

flexing our capacity in line with that demand and booking forecasts going forward and our customers are making booksings four to six weeks out and that gives us lead time to flex our network. we have 10 services from asia to europe or 16 services a week from asia to north america and what we can do is flex down on those numbers of sailings. at the moment, instead of maybe having eight services a week from asia to the west coast, we flex it down from six to seven. the flex in that particular demand in situation and bring that capacity online in a smooth line as post-covid production picks up. >> we are just hearing in the last few minutes that china has

put a ban on a number of australian producers of beef and y estimates up to 35 to 40% of exports. is there a concern as we see a renew of tensions between beijing and washington and other trading partners that your industry will be impacted by another round of the trade war? >> first of all, we always like to see international markets as open as possible and move products for our customers but we are realistic and they are a facet of our industry in the last particular years. the product will still move. the origin may change but the final volume requirements will still continue. st year in 2019 due to the u.s.-china trade dispute, we saw a fall in u.s. exports to china,

for example, in those ag products and proteins being impacted in terms of australia, but saw a pickup in sourcing out oceania andrica and i suspect the product will still keep moving but we need to adapt r equipment of entry and capacity on the deep heef sea markets even if the origins still change. >> ocean network express c.e.o. we will look at the drive to find a covid-19 vaccine. up next, we are looking how the coronavirus pandemic has affected global auto makers.

this is bloomberg. ♪

>> quick check of the latest business flash headlines. elon musk is demanding his factory stayed shut because of the coronavirus. musk will restart his production tweeting if anyone gets arrested, i ask that it only be

me because the only u.s. plant has been closed since march 23. steve mnuchin weighed? . working casting doubts with leapeders to avoid bankruptcy and may not have enough to pay bills. fourth quarter loss was $1.92 and $1.11 seen. coronavirus stalls auto demands. states are warning it is worth nothing. and brokerage says it faces a rise zue due to the crisis and may be delayed up to six quarters. it has been thrown a lifeline needed.her aid may be

japanese car makers are due with their fiscal fourth quarter results that should reflect the steep dropoff. north asia correspondent. steve, what are we expecting? >> you can imagine their businesses have suffered an impact significantly sips the outbreak happened. if somebody is staying home and their job prospects are pretty weak, they aren't going to fork out money for a brand new car. this reporting season for toyota and honda anise aun later in the week and subaru it's about the virus impact not only in japan ut in united states and china.

toyota, bloomberg intelligence says fiscal year fourth quarter were likely significantly dragged lower on top of all those unrealized losses in the fiscal fourth quarter which is the calendar first quarter and plunging 18.5% in the first three months. jap knee retail sales u.s., china and japan were lower, especially in april. and vehicle sales in japan plummet 25.5% in april. and production suspensions. in japan to suspend and united states and china and weren't able to get the spare parts and had those assembly line disruptions. any indication from these car makers what it's going to look like is critical to investors.

fiscal profit drops year after year as the impact of the coronavirus and the pandemic deepens. one sign of recovery is in china, they recovered at least on the numbers and lockdown front, they are in recovery mode. the lines have been ramped up. march was down 15.9%. you is a different story. they are starting to resume production in hundredsville, alabama and people won't have spending money in their pockets. >> what is the picture for hobbedh honda? not as big a car maker a as toyota. honda has 13%. the sundayen demand drop.

honda had to suspend production at its plants. and they have only started to open. i saw a news story many of the plants in the united states and in north america including canada began operations as soon as monday in united states and canada. any kind of guideance from honda executives and the other auto makers is what they want to see. i come back to china, the independent car association was more upbeat about demand because of these government incentives to drive demans. early sales, a v-shape recovery may have been established already. >> i want to stick with china and chinese demand and seeing reaction that china has put a delisting ban on four major

australians by some estimates it accounts for 35% of australian beef exports. we are asking reaction pushing higher on demand following that report. s&p futures has slid down half a percent and the aussie dollar continuing to drop in terms of .7 of are seeing, down 1% to pan imports and comes on the back of these concerns that we see tariffs on australian and bali imports. >> we'll discuss that and reaction in the markets coming up in the next hour. drawing ef economist us with release of c.p.i.

that is it where market coverage continues. this is bloomberg. ♪

ex-slugger blue line market -- >> welcome to bloomberg markets china open. stories, tradep tension making headlines again. he is nottrump says impressed. >> oil edges