♪ haidi: good morning. i am haidi stroud-watts in sydney. shery: i am shery anh in new york. our top stories this hour, the white house steps up the pandemic blame game. sentg china deliberately people around the world to spread the coronavirus. u.s. cases are slowing while

asia braces for a second wave. this hour brings the latest check on the japanese economy, we await gdp growth numbers in a quarter dominated by the outbreak. let's take a look at markets as we set up the trading session. we are seeing this with u.s. futures. back-and-forth between washington and beijing really dominating our can sentiment at the moment. seeing new zealand trading on , as new zealand moves out of the restrictions. positive upside, .6% higher for australia futures going into the start of trading today. we are watching the yen, which has been seeing strength. looking at positioning by money positionsnet long yen

are being extended. there could be further upside with the japanese currency. seeing upside continue with wti. gains ineen the recent oil, shery. shery: we see more economies reopen and we are hearing from apple. they are saying nearly 100 stores globally have opened their doors again. -- are refining it doesn't mean stores will not be shot if needed. apple saying the stores are requiring face coverings for all teams and customers and they will have temperature checks at the door. u.s.-chinaeeper into trade tensions, the trump administration blaming china for the coronavirus pandemic with top white house aide peter

navarro suggesting covid-19 will spread deliberately. -- was spread deliberately. >> the chinese behind the world health organization for two months in the coronavirus from the world, then sent people around the world to seed that. at thethere will be more world health organization meeting. let's get more from ros krasny in washington. this is the first meeting of the governing council since the pandemic started worldwide. what are we expecting as we continue to see president trump back and forth whether or not to cut funding to the w.h.o.? ros: it is very interesting. president trump seems to blow hot and cold on whether the funding is good or whether to reinstate after some penalty. there were reports he is leaning

towards maintaining the funding cut versus restoring. we don't really know. it is not coming from him directly. he is giving mixed signals. the u.s. is very angry. trump sortstent with of defining policy credo that global bodies are not good for the u.s., whether it is the w.h.o., the wto, nato or the u.n. haidi: there is the lingering threat with all of that dissatisfaction from the u.s., that we could see the withdrawal of funding from the w.h.o. on a permanent basis. trump seems to be going back and forth on this on a daily basis. ros: he does.

it is tied in with his view about how he believes the w.h.o. takes china's side on most policy matters and has done over the whole coronavirus epidemic. he is not alone either within his administration or internationally because australia, australia's prime minister scott morrison saying they don't want the trail to go cold. they want to see how china handled the start of the coronavirus era. it is kind of a tough stance, australia. they face economic reprisals from china. the u.s. is going into the w.h.o. meeting wanting to punish w.h.o. d by proxy the there is a controversy whether to allow taiwan as an observer.

is pushing for this. it has been rejected by china. something like that is beyond the health organization and part of the whole reordering or shattering we are seeing at the moment. obviously china and taiwan, it is not something they want to let slide for the sake of the w.h.o. that is a real flashpoint we could see this week. one final thing, even a couple of weeks ago there was a g20 health meeting where ministers wanted to put out a statement in support of the unit -- the w.h.o. and the u.s. nixed that. shery: another flashpoint we are expected to see in washington, the stimulus bill, $3 trillion democrats passed, but we are not expecting much from the senate

ros:. it is a cliche to say the bill is dead on arrival but in this particular piece of house legislation, that is true, certainly in its current form. that doesn't mean the senate won't pick up some kind of phase legislation. certainly states and localities are clamoring for more federal aid. we heard it from governor cuomo and gavin newsom, the california governor that states have seen their budgets really decimated by the coronavirus pandemic and they need help. that was a key feature of the house bill. there will be senate -- even if there is little resemblance to the $3 trillion. they may take up that kind of

aid to help state and local governments. haidi: news editor ros krasny with the latest in washington. karina: the head of the world health organization -- wto will quit early. he will step down at the end of marked byer a tenure attacks from the trump administration about anti-u.s. bias. washington says they have allowed china to get away with unfair trade practices for years. recovery from the coronavirus could take years, say the world bank. the bank of england says it is urgently examining unconventional policy measures as -- the drive -- virus will trigger a global slump. the u.k. leader boris johnson

admits the country may not be free from the coronavirus for a long time to come as the death toll is the highest in europe. he says the -- he acknowledges the frustration of lockdowns but calls on the good sense of the british people to act responsibly. slash itsa is to forecast for the economy as a second wave of virus cases emerge. they will cut their projection of 2.4% growth this year after the economy contracted more than 1% in the first quarter this year. india is extending its locked up through the end of the month. it is asia's new virus hotspot. 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. mitchell.a softbank'seview of

annual earnings, investors pricing for a record loss after the starting's -- spending spree. and ever growing tensions, jane pauley joins us next. this is bloomberg. ♪

shery: china's most important political event of the year starts in beijing this friday after a two-month delay. this brings delegates from across the country to hear the leadership's plan for the of -- the next 12 months. here is a look at the challenges. the panel of advisory body

bring together 5000 party members over at least 10 days. this time onlookers expect a different format after the convention was postponed for march amid the coronavirus outbreak, the first date change in decades. both meetings could be shorter and the number of delegates could be reduced. we could see strict hygiene measures. the npc agenda may change including a shifting focus on the economy now going for its first performance since the days of chairman mao. numeric targets for gdp could be abandoned altogether. stimulus measures would be another focus. the pboc has pledged more powerful monetary policy and the government could help construction, health care and 5g. the ongoing unrest in hong kong

will be in the spotlight with beijing arguing for a greater role of politics. the u.s. is delaying its report assessing the hub. blame game andng calls for independent inquiry, this congress will be watched closely. haidi: as we count down, australia is waiting for a call back from its late -- largest trading partner. tensions between the two sides after calling for the origin of the coronavirus. fromext guest joins us canberra. there is no doubt anyone was arguing there should not be an independent investigation into the origins of the virus. and you see these states support

e.u. andgside the australia, but why did canberra take the lead? >> that is the question i am asking as well. it makes instant -- it makes that canberra led the charge, quietly wishing the u.s. had done it instead. haidi: has it been a bullish thing to do given the reliance on china more than ever in the aftermath of australia's own recovery? >> is thanks to the difficult -- it speaks to the difficult balancing act we are trying to make with china and relationship has changed for the worst in recent years. this comes on the back of a number of things we are

frustrated -- we frustrated beijing by doing. why were complex reasons might have chosen to push back serve in the domestic market. we did that first, communicated with the u.s. we would do it, but we also traveled through europe convincing our allies to do it. there is a long history of us frustrating the chinese. what we are experiencing is when you frustrate them for long enough, they find ways to punish you. you have to prepare for that or choose to pick your battles more carefully. shery: president xi jinping, will he be more vulnerable now? >> another big question. if you read the western press from the outside in, we have a thought that xi might be more

vulnerable. there is more criticism directed his way on how china handled the early stages of the pandemic. if you look at the number of developing countries, and internally, they see china has done a good job getting it under control and rebooting the economy. the have done a better job for the -- better job than the united states. there is vulnerability looking from the outside. of tools he sorts has two convince the population domestically that he is in charge. shery: of course helping the political systems case would be a strong economy. we are going to the national people's congress. is there any benefit to the growth target? it seems a risky proposition

whether it is too high or too low. >> it will be a good time for the party to let go of targets they had in the past. they have started talking more about targets in a range rather than a specific goal. at the start of the year it was 5.6% growth rate and now they will bring it down, but they would be better off to let go of it altogether and target something higher, one of the best case scenarios out of the imf is 2.3% growth rate. they are wanting to get it higher than that. ways to go number of about doing that. i think china will find a way to grow faster than any other economy in the world. that brings us back to the challenges we face in pushing back continuously against them and wanting for a large number

-- ommentators if they grow the fastest, they have a chance coming out of the pandemic -- is that relentless growth going to come at the expense of structural reform? do we see after the npc, it is resorting to the old playbook again of stoking growth? is on theral reform table and they talk about it on the time and then don't make huge progress. one example of state owned enterprise reform, if they chose to privatize or inject more capital, there are different ways they can stimulate state and enterprise growth. they could make gains with privatizing and boost the economy that way. it is not the playbook they

normally turn to but different -- desperate times mean desperate measures. it could be another source of potential growth in the years ahead. pauley, great to have you with us. linese a recap of some from the bloomberg now, chair powell had an interview over the weekend over local media. he is saying the fed is not out and they could see a 25% peak unemployment projections, that they sound about right, the u.s. jobless rate at the highest level since the 1930's, almost 15%. powell playing down the risk of the second great depression. the interview was conducted on

wednesday and it aired on sunday in cbs news. chair powell earlier said the u.s. recovery could stretch through the end of 2021. this is bloomberg. ♪

check let's get a quick of the latest business flash headlines. emirates could remove 30,000 positions as it tries to whether the coronavirus crisis. this would reduce the payroll of 105,000 by 30% with the travel downturn expected to last for years. the biggest long-haul carrier billionady raised $1.2 of new financing and is seeking more help from the dubai government. reports from australia say the bidding for virgin australia has

drawn big names. there is talk that indigo might have been rejected after failing to submit enough details. the australian financial review said the list includes cyrus capital and bgh capital. itsa has extended nationwide lockdown -- restrictors in some sectors to boost the economy has more countries plan to reopen further. let's get to yvonne man. there iser countries starting to lock down. lockdown has been expended to the end of the month restrictions.me sports complexes, studios can operate without the spectators, interstate travel allows if you have a -- allowed if you have a permit.

cinemas, infections continued surge. another posted 10,000 new cases over the weekend. if anything this infection curb is steepening, not flattening. now with a total of the infections across the country, including nearly 2900 deaths sunday. it has been a gradual process in terms of allowing some industries to reopen. factoriesring that are having trouble reopening and there has been a shortage of workers as well. there has been some countries weighing whether to ease border controls. what are we hearing? likee: in japan, countries

south korea and japan -- and china are asking japan to join them relaxing business travel. be weighing this option but they are reluctant to loosen some of the tightest border controls in the developed world. experts, other, ordinary travel will come later -- exports are being prioritized. other ordinary travel will come later. there could be virus testing from this. samsung electronics vice chairman jay y. lee will visit a plant in one city today which would mark his first overseas trip since the outbreak. there is agreement from both -- both countries.

countries are seeing details about how they plan to roll back -- even in hong kong the government may extend social distancing for another two weeks while relaxing some of the measures, large gatherings for religious purposes and karaoke lounges that could be open soon. haidi: all right. our markets anchor their in hong kong with the latest. coming up next, we take a look at the state of coronavirus testing. we will be joined by a guest who can tell us what the u.s. should be doing better. dr. baker will be with us. this is bloomberg. ♪

this is "bloomberg daybreak: asia." criticisms ramping up of china over the coronavirus with president trump suggesting beijing sent passengers around the world to spread the infection. peter navarro -- peter navarro told abc news china hibi had the world health organization while sending those -- people around the world echoing mike pompeo who accused china of a cover-up. europe easing restrictions with beaches around the mediterranean beginning to open in bars and restaurants welcoming customers.

at ellie's relaxing -- italy is reacting -- relaxing restrictions and spain is opening slowly. . the single market faces the deepest recession on record. ahead of the world organization confirming he will quit early, when you're before his term what expire. he said he will step down at the end of august after tenure marred by attacks by the trump administration of anti-u.s. buyers -- bias. washington says the wto has allowed china to get away with unfair trade practices for years. hong kong leader carrie lam says her government mishandled anti-china protest in recent months though the cities place watchdog insists officers have always use reasonable force. under reports as there is room for improvement in police action and carrie lam does says she does not expect protest to die down anytime soon. global news 24 hours a day on air and at quicktake by bloomberg.

powered by more than 2700 journalists and analysts in more than 120 countries. this is bloomberg. we are getting breaking news with regard to the softbank share buyback plan. they are announcing they are set to buyback up to ¥500 billion of shares.up to 6.7% of the buyback scheme will run from may 18 to march 31. softbank sang the buyback is part of an announcement that was made march 23 two buyback 6.7% of shares for ¥500 billion. no softbank has spent 2.3 billion u.s. dollars of the past two months buying back its own shares, giving support to the market. as softbank this week prepares to announce record losses. as the coronavirus continues trick havoc on the u.s. economy, most experts agree the key to a

successful reopening is making testing for the virus easy and accessible. how do we get to that point? joining us as pro-health care president and ceo. is the largest independent health care providers -- health care provider in the northeast. great to have you with us. likes of china's wuhan province saying they will test the entire population. we know china has the capacity to do that. is that something we can see replicated in the u.s. and around the world? and to what extent does that help gauge an idea of when it would save to fully reopen the economy? -- when it would be safe? >> i think that is the question. the answer is yes. i think that here in the states we are not far from having widely available testing. as you mentioned our organization has had the good fortune with foresight at having not only testing, but ppe and a

supply chain to be able to do testing at scale. we are not far away from that. when you consider the testing and how close we are, and also the numerous data points we have around what this means, we are probably not far from being able to continue this reopening strategy in a more thoughtful way. we now know what we did not know it weeks ago, that it does not hit everyone the same. we know it is far more fatal for those who are under 60 than we thought initially. information is power and the data points plus getting better at water testing process -- at wider spread testing puts us in a better position. than a few weeks ago. . haidi: it seems antibody testing, a few weeks ago every expert said this is the silver bullet to be able to meaningfully and confidently reopen economies, to get widespread antibody testing. since then we have learned are not as reliable.

they may tell us someone has antibodies but we do not know how long that antibody affects work. and we are a month or a year away from vaccine progress. so where do you stand when it comes to antibody testing? is it as useful as we might have thought one month ago? >> that is a great point. it, building on your point, right now when you try to expedite things and condense time frames, you mention vaccines but we can stand back -- testing, it should not be surprising if you think logically the first few test we roll out to a novelty deeds are not perfect -- a novel disease are not perfect. they were ok. the testing is getting better. accuracy wety and are proving dramatically. much positive antibody in

the serum and how long does it procure immunity? the answer to that as well as when we will have a vaccine cannot be what we hang our hat on, as much as some of the other data points in terms of reopening on a gradual basis in the immediate future. given that we know most of the population can withstand this in a safe manner, we know the elderly and those with chronic or comorbid disease need to stay safe and inside, we know the basics will work the best more than anything. , masks, and so on that are basic measures as long as we employ them. that has caused a plateau in cases. so when you those together we do not need to hold our breath for a vaccine. we can move with more confidence and safety just with the data points we do have. so, anyone who shows up

at your facility can get a covid-19 test? >> oh, yes. we have 30 urgent cares across new york and new jersey. haidi: but can they get a test without presenting symptoms? the problem now has been, he would need to have severe symptoms in order to get a test. so how available are they? >> what i would say is, you do not have to have severe symptoms to get the tests at our facilities. you need to have symptoms that are suggestive of it. even if you do not have severe symptoms we can test you. even if you do not have severe symptoms, you may take care of a grandmother or grandfather who, if they get any viral load it would be a problem. so that is justification to do the test if you have a fever or cough if you are not acutely ill. haidi: but you need to have symptoms. tict happens to the asymptoma

cases? the issue is that people without symptoms are spreading the disease. when you say we might spread around the united states, does not include people who are not showing symptoms but need the test to make sure they do not go around spreading the disease? >> ok. that is an excellent question. states havehe reopened, for instance, elective surgery. ambulatory surgery centers, new york has been conservative because we have so many cases, where than half the united states'. other places have allowed them so were patients and doctors who work at these places may have no symptoms because we are reopening, there there are policies across the country where they will just do testing today before a procedure on a patient with no symptoms. and staff is no symptoms. so your point is well taken. if you are sick and, how about doing this nationwide -- if you

are saying, how about doing this nationwide? then we have to partner with the government. there you will ramp up utilization adequate and testing. if you start testing at scale, everyone who does it test need to have ppe. you do not forget when this started that was as big an issue if not bigger on a supply chain basis, as was testing. we need to be in partnership with the government, that we have enough supplies across the nation, to perform that. >> right. >> that is less of an issue now than it was then and i think we are close to that. >> but what are you seeing, especially at the federal level, because the reopening's of all the states are happening whether we like it or not, individually, voluntarily, the states are opening up. but what a racing at the federal level that there's coordination with hospitals and ppe equipment is being provided? we keep hearing states are responsible for this as well. >> great, great points. i think that is why you are

seeing kind of this lumpy reopening, right? what the federal government has basically said is, it is on the states, to make the decision that they want to. ,o states are kind of having different decisions, which then pushes that decision-making down to the average citizen. citizens now that we have information can make that decision. if you come to the doctor's office, like our facility, and you're going to say that hey, i went back to work, and i'm starting to have symptoms, testing is readily available. in terms of i'm going back to work tomorrow and i do not have any symptoms, but i want to be would be at partnership between the doctor and patient that was not before [indiscernible] at least in new york and new jersey, the signaling is not to test everyone who does not have symptoms and we are still one step short of that. shery: thank you for joining us

thefor your insights with latest on testing around the united states. we have breaking news and we are hearing that jack ma will be [indiscernible] founder will be resigning from the softbank group a board on june 25. jack ma, the founder of alibaba was on the board of softbank group and he is expected to resign from the board on june 25. we expect softbank groups earnings, they are expected to report huge losses given that we have seen some of their technology investments sour, over the past year. we have seen softbank announcing changes in their board members. goto being nominated as a board member and other individuals resigning from the

board. as external directors as well. more, next. this is bloomberg. ♪

haidi: let's take a look at this monday morning in asia. sophie: this morning we are seeing a risk on tone come through in the minis climbing up friday's high and could hit 2900. ahead of japan's first quarter

gdp report to monday which may can firm a recession, nikkei futures in chicago edging higher as markets assess easing travel restrictions in north asia. by risk robert ozzie yen stalling below 70 with little conviction. we will gauge reaction to the u.s. cracking down on while way and its chip supply which china says may threaten the supply chain. the pound is falling against g10 p after the boe chief economist signaled in a telik graph report -- a telegraph report that negative rates are being examined alongside other measures. let's check in on oil. $30 per barrel for the first time in two months , as producers have been cutting back supply. with little open interest going into tuesday's ex pre-of june contracts we are unlikely to see a repeat of april selling pressure. shery: softbank saying it expects to book a record

operating loss for the past fiscal year when a financial results monday. aggressived been an investor in recent startups but is now marking down the value of stakes in companies such as we work, oil hotels and uber. hotels, and uber. we are getting news of a reshuffle at the top levels of softbank with jack ma resigning from softbank group board two 25th. >> that's right, jack ma one about longest tenured board members, their nearly 13 years since 2007. the chairman has been on that board for nearly five years in various capacities, running softbank. it is an interesting move and it has been a difficult year for the past 12 months for softbank. it made huge bets on that sharing economy.

we know the sharing economy is taking massive hits now in social isolation taking hold around the world. that is why we are likely to see that reflected in the latest results. we did get preliminary results and a big warning coming out on april 30. now we will likely get a confirmation for the fiscal year, a record loss, likely on its bets in wework, uber, oyo. we do not of the details of what jack ma is stepping down. ma have jointly invested in a number of companies across tokopedia, in india, softbank companies vision fund has invested in that jack ma has been a part of. in the announcement today from softbank, they are following through on the announcement they made march 23, that they will buy back up to 6.7% of shares 4.67 b us.illion, $

>> saudi arabia's wealth fund looking to tap a $10 billion margin loan to let's part of its stake in the vision fund? >> this is an interesting development. we know the public investment fund of saudi arabia is one of the largest investors in mat fund andon's vision was going to be a pillar in his second vision fund at $108 billion. fiascoer the wework spooked investors as well as the abu dhabi investment fund looks like that is on hold. it looks like pif had planned to

borrow $10 billion by pledging some of its stake in the vision fund, has it has been one of the more aggressive purchasers since the start of the pandemic. we heard from the pif governor in april same the fund's looking into any opportunity arising from the economic wreckage of this crisis, the pandemic sparked by coronavirus. this weekend we did get a statement from the pif refuting that report, saying it is not planning or even considering a margin loan, backed by its investment in the softbank vision fund. the pif, according to that statement has, 'ample liquidity'and is not engaged with anyone to raise argent loans against its stake. the trajectory or fall from grace over the past year for softbank. haidi: our chief north asia correspondent with the latest on softbank.

more on softbank when we are joined by -- joined by asymmetric advisors senior market strategist. the latest business flash headlines. taz let resuming production at its plant in fremont -- tesla, saying county officials have signed off on its safety measures. alameda county is now supportive of its plan to fire up car production, ending the threat by elon musk to sue local officials and move tesla to another state. alameda considered the plant to be a health risk while tesla says it is an essential u.s. business. fiat rysler in -- for anr for talks italian state loan. late alones set too facility which needs an ok from the italian finance ministry. the virus has shuttered car

plans around the world and triggered a slump in car demand. more to come on "bloomberg daybreak: asia." this is bloomberg. ♪

>> breaking news out of japan. first quarter gdp numbers. on anraction of 3.4% annualized basis, quarter on quarter.

this is a smaller contraction than estimated. also smaller contraction than the previous quarter. the fourth quarter we saw a contraction of 7%. nominalcomes to the quarter on quarter numbers, a contraction of 0.8%, a smaller contraction than expected. private consumption construction of 0.7%. business spending down .5% quarter on quarter. all in all it seems the numbers are better than was expected for japan. we have seen state of emergency measures and restrictions on coronavirus being implemented in april, so perhaps not completely reflected in the first quarter numbers. still, most economists expected the second quarter to be worse. this as the state of emergency were winding to the rest of the country.

let's get more on the gdp numbers from japan. jesse, great to have you with us. give us your reaction to the numbers? they seem better than what analysts expected. yes, the number does look slightly better than we expected. yearre expecting 4% per quarter on quarter contraction in course -- in the first quarter. we believe the second-quarter numbers may be worse as recent prospect of a shock in the first quarter. and as you mentioned the state of emergency came into a farce in mid april and that -- the state of emergency came into force in mid april. domestic demand is likely to suffer with emergency measures in place and business conditions may remain week. we have seen consumer and

business sentiment slump to a record low and manufacturing activities shrank further. worse seconda quarter following the first quarter numbers. the japanese government has started to lift some restrictions of the emergency. i think the buyer situation is crucial -- i think the virus situation remains crucial. and so we continue to be watchful in japan. shery: how much has this to do with the pandemic restrictions and how much because of sales-tax the japanese economy has been facing? previous slump in the fourth quarter of 2019 was due to the tax hike, the 2% tax hike in october last year. but i think japan faces started 2020. it

dampen consumer spending and the coronavirus affected the economy so there are multiple headwinds that faced japan at the start of the year. how concerned should we be about the levels of government debt to gdp, after the support of taken by the government to get to the other side of this crisis? the japanese government ,nnounced fiscal stimulus around 20% of gdp which includes some existing fiscal measures. actual spending is going to be lower than the headline figures. a decline in gdp expected, the government also plans to

issue government bonds to fund the stimulus and we think that will add pressure to the government debt level. and now a primary surplus is probably not expected this decade? that strength fiscal balance is likely to be delayed by three more years that originally planned. dan originally planned -- th an originally planned. haidi: coming up in the next hour of "bloomberg daybreak: asia." we look ahead to the open of trading on asian markets. we will take a look at growth prospects in japan with bank of america securities joining us on bloomberg markets. more ahead on "bloomberg daybreak: asia." this is bloomberg. ♪

shery: good evening from bloomberg's global headquarters in new york. asia's major markets have just opened for trade. welcome to "bloomberg daybreak: asia." . the white house stepping up the pandemic blame game. saysight peter navarro that china deliver at least 10 people around the world to seed the coronavirus. oil climbs above 30 bux for the in since several.

u.s. futures rising. the revolution may be coming to hong kong. investors say they cannot come soon enough. let's get you to the markets. tokyo first quarter gdp from japan confirming the economy fell into a recession that will likely be exacerbated in the second as households hold back on spending and businesses cut back on investment production and hiring. we see slight gains for the nikkei, up .3% this morning. the topix also gaining ground. the yen under pressure off .2%. the jgb space we will watch for japan's sale of a five-year auction after we saw strong demand last month. checking on the opening in seoul, the cost beginning ground this morning as the markets assess easing travel

restrictions in north asia. -- kospi. you have samsung visiting eight chip factory according to local reports. we have visiting eight chip factory. -- a factory. aussie bonds going into a 2020 option, the first sale since november. wti back above $30 per barrel ahead of the june expert a on tuesday. 2012 high trading at a on haven demand as fed chair art of a prolonged recovery in the u.s.. softbank shares after the group announced a five hunter billion yen buyback plan and changes to its board of directors, jack ma is set to resign g20 fifth. -- june 25. shery: the trumpet administration blaming china for coronavirus with a top aide saying beijing sent airline passengers to spread the infection worldwide.

bloomberg markets coanchor tom mackenzie joins us. said -- what was said? tom: incendiary accusations. peter navarro an advisor to the trump administration has built his career on bashing china. he wrote a book called death by china so that is the context. he said in an interview with abc that china had hit in the virus from the world with the world health organization and sent quote hundred's of thousands of chinese on aircrafts to iran, new york and around the world, to seed the virus, according to peter navarro. there is a lot of evidence to suggest china did indeed cover up the disease in its initial stages of the outbreak. but there's no public evidence we have seen to suggest that china deliberately that people around the world spreading the disease. but it seems to be part of this

almost daily drumbeat of pressure against china from the trump administration. it is not just chumming from the u.s., enter -- coming from the u.s.. we see international pressure as well and will likely see that in focus when the world health organization's governing body needs for the first time since the outbreak. example, to see, for the european union and australia, pushing for an investigation into the origins of the buyers. in the u.s. is expected to push for taiwan to attend the meeting as an observer, a demand that has riled china. -- into the origins of the virus. china is unlikely to buckle to the demands. it's financial muscle says i can rely on countries taking part in this assembly meeting. the state newspaper says they could accept an investigation into the virus origins but it has to be led by the world health organization to be fair and scientific.

in the meantime the u.s. has taken another shot at making huawei.e to for wally-- tom: right numeral from the commerce department say any chipmaker gets a license from the commerce department before they can sell to huawei. restrictionstrict on u.s. companies selling chips to huawei that a lot of companies found loopholes to work around supplying the company. so they're trying to close up that supply. it is not just u.s. companies. it impacts major chip companies around the world including the taiwanese chipmaker on which huawei has become reliant for many of its chips. at a a big blow to csmc, big blow to huawei. the u.s. says huawei is a national security threat.

ther disruptions to semiconductor supply chain globally as a result of this. in the last hour we have seen reports that huawei placed as $700 million order, rush order, with csmc, according to reports there. also that china may retaliate by thing back to u.s. companies with their unreliable entities list so that is something we are watching as well. and alsoblow to huawei a concern to the supply of chips globally. shery: the national congress gets underway this week, two months later than usual, what announcement should we expect? tom: stimulus, stemless, stemless, the focus for many investors and business leaders. how much stimulus and what kind of stimulus? so we expect an announcement and there is the expectation we will get details around support for 5g or infrastructure spending. an increase in special bond issuance may be something

flagged. health care support and support for retail sectors which remains under significant pressure here. we will look for the budget deficit target as well, an indicator of how much stimulus policymakers are prepared to put into play. the growth target as well, it is possible they may draw -- drop the growth target for the third time in decades. the question is the amount of stimulus and where they will direct it. tom mackenzie in beijing, a preview of the national people's congress this week. havens get a beard and they are where our next yes is putting his money to work. this is bloomberg. ♪ -- getting a bid.

>> you are watching "bloomberg daybreak: asia."

with the first word headlines, global banks warning recovery from coronavirus may take years. fed chair jay powell says he expects u.s. rebound to stress through the end of next year. is bank of england says it examining unconventional policy measures as the u.k. slump deepens. policymakers agreed virus will trigger a global slump but expect a rebound fueled by asked of stimulus. goldman sachs has a week forecast for india with the virus adding to the slowdown in the economy. the bank says india is facing its deepest recession as weak economic data compounds the impact of the nationwide lockdown. contract and the current quarter from the first, double the banks original estimate of 20%. europe continues to ease virus restrictions beaches around the mediterranean reopening and bars and restaurants allowed to welcome some customers. italy relaxing curbs on movement while spain reports daily virus

deaths below 100 for the first time since the pandemic emerged. pressure elting on national governments as the singer market faces the deepest recession on record -- pressure building. country may not be free from coronavirus for a long time to come as the death toll the highest in europe. in a sunday newspaper he acknowledges the frustration of lockdowns but called on the good sense of british people to act responsibly. the article comes as a new poll shows public support for johnson's handling of the virus is falling. global news 24 hours a day on air and at quicktake by bloomberg. powered by more than 2700 journalists and analysts in more than 120 countries. i am karina mitchell. this is bloomberg. haidi: the u.s. dollar and gold are hiring -- are higher at the start of trading in asia, part of a trend we have continued to see.

pepper stone head of research joins us on the line from melbourne. yen, theso seeing the best of the g10. the market positioning what suggest expectations are for further outperformance to come. what is it telling us when we are still seeing him and demand this fight the exuberance across rick -- risk assets? >> it is telling you there's a lack of alternatives. we find solace in the u.s. dollar. belief that the u.s. dollar will gravitate slowly but surely higher, that is my view. if you look elsewhere, the attractiveness of the pound is very, very low. we want to be short and the pound the moment. the euro, very little call to the euro at the moment. it has funding qualities. the swiss national bank trying to weaken their currency and you have seen that in deposits. you look around g10 and major

currencies, there is not of attractive places to be. in all times when markets trade higher and you have volatility which is being suppressed you would expect the yen to be underperforming but that is not the case. i think there's a negative carry that you get in japan is a lost it has been for a long time so that is a big consideration for japanese funds at the moment do not mind being long in their environment. >> when it comes to the nascent round two of the trade war, not just trading barbs between washington and beijing, but also canberra and beijing, how much of that is further to go when it comes to being elected in the aussie? >> is not just the aussie. the aussie picks and chooses what it wants to look at. some people have noticed the sizable move we have seen in iron ore. i do not really see that is a major driver. it has been us lock on with s&p

futures and to extent what is happening in dollars cnh. if dollars cnh is going to go higher that will start weighing more on the aussie dollar. i do not think fx traders, i think they're fairly sanguine and what is happened with the trade war's. the rhetoric has beefed up. but i think we are not really concerned at the moment, until we see a strong retaliation. at the moment i think the fx market is more a war of words and likely to increase as we going to the november elections but we are not too concerned. you have seen that reflected in volatilities. shorter longer-term, they are not particular the high -- short term or long term, they're not particularly high. i am pretty comfortable with the idea that rhetoric will be fob so what may be -- will beef up so what may be misplaced is the idea that it is going to affect asset prices. shery: does that mean we are going to see japanese yen

strength on typical tensions? we have to measure -- on geopolitical tensions? if you have a look at the forward curve, and forward rates, they are pretty compelling at the moment. as compelling as they have been for japanese funds outside of the end, and therefore you're not going to get that massive carry. the yen is still doing what it is doing. that has to be a bit of a worry, they have such low forward rates and yet dollar yen cannot materially push higher in this environment and that has to tell you something about what is going on. if you look at the differentials between one your ois, between japanese and the u.s., it has, right down. and you look at that and you say, how come dollar yen is not materially moving higher in that environment? it does suggest to me that if you get a big pickup in volatility and asset price rolling over as a result, or one of the two, then you are going

to see the yen really come back into its own. so the failure of the yen appearing weak in this environment is an interesting one. so the highlight of the week is that national people's know we in china, we will probably see a fiscal stimulus being ramped up. >> you have seen buying an equity today in the australian market. everyone is excited about some of the material stocks, the bhp and fortescue. looking at what is happening and iron ore and in brazil, the restocking of steel which have been falling. and you have the second wave, 5% ofwe are talking about gdp in terms of the fiscal hit so that could be an interesting one. anddevil is in the details

there are a lot of areas we need to get through. what are the exact areas in the market in the area they are tried to stimulate. from that perspective we can work out whether or not there is going to be a set adult she markets. i suspect there is not going to be a sudden jolt. i do not suspect that is going to happen. chris weston, cops and group research, great to have you with us. -- pepper stone. casesnow reporting your for may 17. we heard earlier two cases were reported in one province and another in shanghai, as china now has 82,000 coronavirus cases. coming up next, oil climbed above $30 per barrel in asia for the first time in two months. we will tell you what drove it,

next. this is bloomberg. ♪

.aidi: oil is rising after aswing signs of recovery makers cut production. on why the outlook may be getting brighter. focused one are now the full and timely and limitation of that timely implementation of that 9.7 signed off by participating countries. also importantly, is some of our ,ountries like saudi arabia kuwait and uae, have come

forward with additional voluntary supply adjustments in the region of 1.2 million rows per day. , on top ofper day the baseline, the effective baseline they were coming down from an april. ,n total these three countries they have effectively reduced 2.74 million about barrels per day. bringing in some total at the moment, accumulative 10.6 4 mllion euros a day -- 10.64 barrels per day for opec plus. if you take into account voluntary and involuntary shut ins globally the numbers we are monitoring, the moment our

numbers show there is an effective shut in of about 3.6 million barrels per day globally including in the united states, bringing the global milliono around 17.24 barrels per day. so far so good. we are monitoring this development. the conference in june will look at this data, and sonorous and options -- scenarios and options depending on the demand outlook going out the second half of the year, and the recovery plans of the global community, as we navigate ourselves out of this horrific pandemic. worldyou look around the at the demand picture, is it your contention that perhaps the worst of the demand destruction has now passed?

or are we still going to see more demand destruction? >> there is no question at the moment. here at opec we remain cautiously optimistic. the worst is behind us. we saw in april, was asked ordinary. -- was extraordinary. you saw how member countries with our allies in the declaration of cooperation rose under thatlenge leadership of the kingdom upside river and the russian federation and kingdom of saudi arabia the russian federation to combat this double lamp he -- double themy of a supply shock midst of a popular death of a pandemic one half the global publishing is in lockdown,

bringing the inter-global economy to a standstill. >> what is your base case for see, forn what you can the second half, in terms of cuts? will you be able to taper? will opec and opec plus countries begin to wrap up productions slightly or taper off those cuts? >> there is a growing consensus that the global economies will begin to rebound in the second half. it is the form and shape of the recovery that is in contention. we will look at all options when we meet in june. depending on the impacts of this virus, as well as the impact of the recovery plans, and the going into demand the second half of the year.

shery: for more on oil we are joined by su keenan. w ti and bread at $30 per about -- both wti and brent now at $30 per barrel. can this be sustained? we see west texas up at four and half percent year 31 and that is after again last week. the question is will be see oil prices go back to zero as the current contract rolls over? if we go to the bloomberg you can see there is a lot of support for the june contract and many believe the answer is no. but it was just one month ago, april 20, that we saw the benchmark west texas intermediate contract plunged to -$38 per barrel and there are many traders watching that closely. again, it is not look like we are shaping up for a repeat.

check out the big picture price charging and you will notice oil prices have recovered by 60% in the past three weeks. we had three straight weeks of gains and are kicking off monday with more gains. that has a lot to do with a pickup infield amount, coupled by -- i pick up in fuel demand coupled by steep and urgent cuts by opec which followed through with a 10 million barrel cost. anybody who has been -- cut. anyone who is a long-term observer of opec and their promises versus actions have been stunned. the cuts are deeper and more spectacular than anyone would have thought one week ago. you also have the u.s. shale oil production, which wes whitley cut back. all of that shaping back for a positive, bullish oil environment you have seen. -- oil shale production, which was cut back.

the worst may be over for the oil markets. the early start to the hurricane season in the x -- in the u.s. could throw volatility into the mix? could and we usually do not get the forecast for hurricane season until later in the week but we already have tropical storm author off the coast of north carolina. -- arthur. that is two weeks ahead of the hurricane season, june 1, and there are many saying the pattern of this tropical storm and those behind it, is close to 2005, and that was a record year for hurricanes. 28 hurricanes that year and many hope it does not repeat. su keenan in york with the latest on oil. next on "bloomberg daybreak: asia." forapore reports figures

april. we have nonoil domestic export numbers for you as a break. this is bloomberg. ♪ staying connected your way is easier than ever.

you're just a tap away from personalized support on xfinity.com. get faster internet speeds with a click. order xfi pods to your home in a snap. or change your xfinity services with just a touch. all in one place. you're only seconds away from all of that on xfinity.com. faster than a call. easy as a tap. now that's simple, easy, awesome.

haidi: we are just getting some bringing numbers when it comes to singapore exports. not only to acknowledge exports seasonally adjusted. contraction of almost 20%. a contraction of 19.8% was expected. what we are seeing is a contraction but a much better picture of 5.8%. reversing the gain of 12.8% we saw in march. the year on your number, we are seeing a gain of 9.7. better than was expected of 5.7%.

remember, during the pandemic, we have seen a surge in exports of gold and exports of pharmaceuticals, which is a volatile subsector of this data set. when it comes to electronic exports, we are seeing a contraction of six tents sub 1%. the expectedhan contraction of 17%. let's get a view on these numbers with our correspondent. seeing are we are not altogether terrible. >> not altogether terrible. it does suggest some upside for singapore. i see a huge increase in pharmaceutical exports. up 174%. maybe that reflects the pandemic we are in. even with the slightly better than expected read for singapore, the story does remain the external backdrop is wide open. it is very export oriented.

it is not have much going on domestically at the moment. when you look at the external story, it is hard to see where that is going to come from. there may be some bright spots on the electronic side of things. singapore is strong on the export production side. is a downwardory pressure on exports for any country including singapore. shery: more benign numbers for japan's gdp for the first quarter. a contraction. at the same time, not as big a contraction as expected. the japanese economy minister saying that perhaps april and may they have been more severe -- april and may may have been more severe. does this mean it will get worse from here? >> i think so. i think that is the story in japan. the national emergency came into effect over the period you mentioned.

analysts are talking about the worst contraction on record. one anecdote coming out of japan is that the consumers are very wary. they are keeping their purse shut. they are not doing as much shopping. when you have that combined with what is happening on the business side of things, tokyo and osaka -- of pretty softe domestic in japan. the external story is not there for them either. while the accounts, the second quarter is looking sluggish at best. we heard from fed chair powell in these interviews on sunday night, what was the key take away for you out of the things he said? >> i think the key take away is there is no circuit breaker. down beat forll

the economy. the recovery is a long way away. even if we do hit a bottom and not is a viewpoint, it does mean that things are going to get better as we come out of these lockdowns. we look to china. we know that they came out of a hardluck down in early april in wuhan and the rest of the country. we know the consumption remains weak. 6000 -- industrial production has rebounded. up.ntories are stacking that is going to be the story for the rest of the world. that is what fed chairman powell is talking about for the u.s. even if we get over the worst of this, the recovery is going to be a long road back. until we get the vaccine that may prove to be the ultimate circuit breaker. shery: our chief asia

correspondent. --look closely for the closely at the prospects for japan later today. let's get a quick check of the markets. we are seeing broad upsides for equity markets across asia. modules -- andnd modest gains. mpc on friday.s analysts are saying health care and tech are likely to top the policy agenda. gains of 1/10ht of 1%. check in on japanese banks. a combined profit of the lowest since 2010. credit costs doubling to an 11 year high to $10.3 billion. dividends are to be maintained. jp bank shares falling within 13%. a net view with a negative

surprise. let's check in on show at banko. the petrochemical products maker reported a 95% yearly drop in operating income. most since january 31 after posting a 52% drop. let's check in on softbank shares. climbing on the buyback expansion. a surprise given the low expectations go into earnings. the buyback announced in mid-march. it did not do much to lift the stock initially. haidi: all right. we are going to get more on softbank in a moment. this is bloomberg. ♪

>> this is daybreak: asia. toast/-- is to slash its forecast for the economy. the finance industry -- finance ministry will cut its projection of 2.4% growth. india is extending its nationwide lockdown through the end of the month as surging cases make it asia's new virus hotspot. four in 10 americans do not

trust china and will not buy its products due to the virus. most respondents also do not believe china can be trusted to carry through on its commitment in the phase one trade deal. the poll says more than three quarters asked would pay more thatoods made by companies move out of china. apple says nearly 100 of its stores have opened their doors locally. the new approach will include a greater focus on one-on-one service, social distancing measures will remain in place and all customers and staff will have to cover their faces. there will be temperature checks at the doors and a limited number of people allowed inside. pair of nike sneakers from michael jordan's glory days have gone for a record. reachg was expected to $150,000 seven days -- reach 150

thousand dollars. seven days in to the auction, those shoes went for a $560,000. jordan is in the headlines with a documentary on his stellar career in chicago. global news, 24 hours a day, on air and on quicktake by bloomberg, powered by more than 2700 journalists and analysts in over 120 countries. i'm karina mitchell. softbank.'s turn to it reports the final for your results later today having warned of its biggest ever operating loss at $12.5 billion. joining us from singapore is amir anvarzadeh. great to have you with us. what a difference a year makes for softbank. now, the company is saying they are still buying back their own for ¥5up to 6.7% billion. what happens when the by banks are over with all of these sour start of investments?

-- start up investments? amir: this time last year, we had a sell on it. we have a sell on it today. our view has not changed that much. the share buybacks have been a main source of support for share price. investorss that should be selling into this buyback. -- thek the sales buyback that will come from the proceeds of the sale of alibaba and softbank and the mobile unit shares, and we think that a partial sell or complete settle of one of these two were both is going to remove one or two major reasons to own the shares. sourcek corp. was a big

of cash flow for softbank group. alibaba has been a major pillar for its valuations. obviously, alibaba has been the most valuable stake that softbank corp. had appeared that is our view. -- softbank corp. had. that is our view. shery: jack ma is going to sign from the board effective june 26. what are the practical or symbolic implications of this? i do not think there is anything practical about it. ambolically, we have had number of other prominent leaders, corporate leaders who have resigned from the board. obviously, jack ma is another big name.

he is well respected. he is resigning. reputation has been hugely tainted because of its investments in these lossmaking units. there have been a lot of many scandals behind these units as well. it has not just been wework. there have been issues with the business model of uber. companies thatng softbank has invested in. there has been a lot of negative press that has really tainted the picture for softbank. obviously, we know now they have pulled away from the vision fund to financing. we have been saying that will not see the light of day since debacle came through

from october and november of last year. take -- it would it guess these are two sides of the same coin. what would it take to close the valuation gap as we continue to see the share buyback and what would it take to restore the credibility of softbank and vision fund? amir: the valuation gap was not closing at the best of times for softbank. this time last year -- [indiscernible] the valuation gap was not closing. it is certainly not going to backdrop,given the particularly the economic backdrop. gig economyg onto companies. ridesharing and other sharing economy companies that softbank has invested in. the one way you are going to see

the gap closes for the valuations of the businesses it has invested in collapse. way we are going to see the gap close. gap closing on the way down rather than on on the way up. for the likes of me, i cannot see why now in the middle of this pandemic we are going to see a situation where the gap will close. that is impossible to see. ma's is out and a is of people -- jack ma's out and a lot of people have pointed out it is good luck instead of good investing for softbank. are we going to see a situation where they're going to be forced to selloff the stake? amir: they need to sell the stake, at least partially, to

raise the money they say they needed to raise. $9 billion altogether the buyback the shares they have committed to as well as payback the debt through buying back the bonds they have committed to. iny do not have the cash order to execute on that. they would need to sell alibaba sell softbanko corporation shares. the alibaba shares could be tricky at the moment. been raisinghas -- u.s. listed companies under alert for their noncompliance with the sec being given special treatment until now.

we also hearing the american regulators pressure not just on the federal pension funds and trust not to invest in chinese companies but now they are going after the accounting rules where companies like alibaba had been given a green light until now. if there -- if the american companies are forced to lighten alibabae investments in and other chinese companies listed in the u.s., then the timing of the sale softbank needs to do is going to be somewhat awkward. certainly, it feels that way given the political implications of what trump is trying to do. that is another kind of negative scenario one has to keep in mind at the moment. always a pleasure to have

you on. the asymmetric advisory senior strategist. werethan 135 companies downgraded to triple c or below in april, putting pressure on the market. some investors find this triple c rated debt looking attractive. withberg spoke exclusively james of any for his thoughts on the situation. >> for participants like ourselves, it gives us a great opportunity to look at the large universe can only pursue those ouranies where we stress assumptions both for a business model and also ultimate liquidity. of us, it proposes a lot opportunities. we have been phasing in, looking at this universe for many months actually.

>> given that you have been a lot of calculus, can you explain your thoughts on what you think the riskiest parts of the market are now? are there certain industries you are looking at that are more concerning than others? james: we are. we have biases for sure. at thevery much looking issues with brick-and-mortar retail as an example. business is facing certainly going to have challenges. we are looking at companies that have sustainable business models even in this environment. if you had to wrap it up precisely, it is hospitality, ,otentially gaming, hotels travel related etc.

those industries are going to be challenged for a while. >> it is interesting. are there any systemic risks here? are there any corners of the market that might feel ripple effect? visited inand i january of last year. we touched on these issues. today, the issue is a confluence of three events. you have the largest market. the largest market with the most leverage on balance sheets. coming into the year, highest multiples for companies. senior debt for those companies is 6, 7 times, in some cases more. total debt is even more than that. then you have the events -- the unfortunate events of covid-19. completely impacts many of these businesses, most businesses. laste same time, over the

30 days -- really in the course of two weeks, you had every company that had a revolver was drawn down. so now, you have a much more levered credit then you did 60 an you did 60hen yo days ago. that is why the rating agencies have been quick to downgrade these loans, which wreak havoc for the clo structures. most structures can only deal with a limitation of seven and a half percent. clo's today as of the last reporting period, about 90% of clo structures had -- they are exceeding their triple c limit, which creates portfolio management issues. that also means potentially many

of these credits are going to be sold. obviously for folks like ourselves, we can take advantage of that. z capital ceo of group. the hong kong hang seng index set for its biggest overhaul in years. the details coming up. this is bloomberg. ♪

seng: hong kong's hang index is set for its biggest overhaul in years. we will learn which companies will join. among the names being considered are those with an equal voting rights. what is there to consider among them? >> good morning. the key issue here with this review is that it is the first time the hang seng index in hong kong could have the likes of alibaba. it is considering whether to voting shares of unequal rights. these are shares they give a disproportionate amount of control to founders or majority shareholders. you could be something minority shareholders couldn't -- it could be something minority shareholders enjoy. it is quite a common structure for tech giants like alibaba.

also, we will get a decision on secondary listings. this would involve alibaba and another u.s. listing company that is considering a listing in hong kong. we saw with hsbc earlier in the year, it has a dual listing in hong kong, but its primary listing is in the u.k. , the guidance was notut -- u.k. banks could distribute dividends and have to hold back. that was an issue in hong kong. dual listings and secondary thatngs -- there is a risk there will not be much control over what happens with their holdings. why are we seeing this overhaul happened now? sofia: there has been a

consultation going on for a few months. it started in january. alibaba listed in hong kong in november. jp.com and other u.s. listed companies are interested in raising funds in hong kong. now is especially prevalent because chinese companies in the u.s. -- there is a lot of tension. ofre is a consideration whether companies can raise funds there. hong kong would be a good place to raise funds for these chinese companies. timing.ery interesting our china markets reporter. before we handed over, let's take a look at the regional markets trading right now. we had the japan gdp coming through earlier. pretty soft but still not as bad. the nikkei 225 is down by a 10th

of 1%. the kospi in south korea trading lower marginally. that is it for daybreak asia. our markets coverages next. -- coverage is next.

>> it is 9:00 a.m. in beijing, shanghai and singapore. bloomberg markets china open. china warns that will retaliate as the u.s. steps up the virus blame game. a white house aide said beijing deliberately affected the world. as opecbs above $30 says the worst may be over it. futures rise