companies including qualcomm cisco apple and boeing boeing a huge target right now in china could suspend purchase a boeing plane the only another major blow to r.t. struggling company so all 4 names are down massively this morning because of that and really boeing can't take another hit as well after all the issues that they've had not only with the pandemic but obviously the 737 max crisis co-host kristie i thank you for breaking that all down for us. india. global markets are all down on the week as oil search 3 percent its highest level in more than a month still market sentiment is low after the latest flare up between the u.s. and china over the trump administration's move to block semiconductor shipments to while away technologies all right let's start in russia where the mo x. is in the red for the week a trend you will see in every market coronavirus cases are still rising in the ruble and russian treasury bonds hit record highs on friday as oil prices surged but it still wasn't enough to push markets into the green in russia for the week moving over to asian markets all 3 in the

arch apple qualcomm and boeing all saw declining prices this week and let's finish it out in canada the t.s.a. finished in the red despite seeing some gains in the energy sector which climbed 1.4 percent while u.s. crude prices jumped 4.2 percent a barrel as data continues to come in showing the economic impact of the pandemic we're going to keep an eye on the volatility within world markets which is what we are seeing and that is your global market walk. time now for a quick break here because when we return as the cove in 1000 pandemic continues to rage on investors are seeking a hedge and it's a conflict between old reliable and the new school we breakdown the fight between gold and big oil for safe haven supremacy as we go to break here the numbers at the close. seem wrong. just. to see. this day after. and in detroit because the trail. went something like themselves worlds apart we choose to look for common ground. the world is driven by a dream shaped by one person of those. who dares thinks. we dare to ask. that child care h a i r is the ticker symbol for hair it's a closed and f

retire using that list in the middle of last year, a paper pointing to his source saying that apple and qualcomm could be targeted. that is kind of where we are. it goes much deeper than this. the administration has been move,ing things over this but they have to balance cash penalties aimed at beijing being limited to doing harm to china itself and certainly not to harm the interests of the united states, and of those in hong kong. washington has to have a narrow approach. other states could also do new their come if you would, -- that requires the secretary of state to certify whether hong kong still continues to warrant special treatment. it is employed, and it says it does not need that she does indeed warrant special render it it could the same as any other chinese territory. the wealthext, globalist management cio. don't miss it. this is bloomberg. ♪ nejra: this is "bloomberg surveillance." journey is now is haefele.irly -- mark i was looking at your letter from may, title "second wave, second wind. this is what markets are grappling with in terms of the coronavirus risks. talk about that

companies that have been counted for that list include the likes of apple, qualcomm, even boeing. shery: the big question going into this npc was whether or not china would keep its growth target. they dropped that. what we -- what have we seen in terms of support measures for the economy? tom: premier li keqiang yesterday at his briefing really focused on the economy, the targeted approach, and said it was reasonable and rational that they dropped this numerical gdp target given the concerns about the global economy and the impacts of the pandemic. he really stressed the need to support jobs here in china. he said again that the action that china has taken would go a long way to supporting jobs and private businesses but said there was further action, further policies, essentially, they have in their back pocket, if the situation deteriorates. he said there reserve policy space that they can quickly introduce new measures if needed. take a listen to what he had to say particularly on jobs. we believe development still holds the key and is the foundation for resolving all the prob

they say that apple and qualcomm could be targeted here.han: you know how this works for a dictator. whenever there is economic pain, they start to hide behind nationalism. we heard this this morning. what does he mean when he says that the military should strengthen troop training and war preparations? rishaad: he's never going to say it is anything to do with the relationship with china. it could have more to do with what has been happening in taiwan. look at it from the prism of the taiwanese president, who was inaugurated last week. mike pompeo congratulated her. that is something that really fired the ire of beijing because they never recognized taiwan as an independent state. to taiwane a message rather than to washington. herehas made many pundits actually looking at it. tom: thank you so much. greatly appreciate it. i was amazed how it really didn't make the play this historic news for hong kong, but i thought it was really underplayed over the memorial day by the american press. jonathan: let's be clear, i think it is underplayed t

companies such as apple and qualcomm could be targeted. let's look at the other angle. australia.ina now defending that decision recently to place more tariffs on barley? selina: effective may 19, china is putting duties and an anti-subsidy duty. the china industry of commerce saying it is being prudent and restrained, arguing it is based on evidence because australia get subsidizing. andralia has rejected that, thebackdrop ms. iis independent investigation into the origins of the virus and relations with china's ambassador, saying it could even lead to a consumer boycott of australian goods. sorts ofs the restrictions they put out are directly related to a health and safety issue. there has been back and forth but china's foreign ministry is not mentioning any deterioration of bilateral relations and say it is purely based on evidence. they say there are investigations going on. david: i want to talk about the pboc now. there has been discussion and you can tell there are some details about the potential revising of legislation governing the central bank. what do we know? selina:

they've talked about an unreliables list and that's where we read names like apple, qualcomm and othersng, where if you're on the unreliable list you really get bad treatment and then your risk, your business is at risk in china the question is, will china do that because, you know, it's not to their interests to see all this decoupling. it will be fascinating to see if they react that way or if they wait what we know is that they're going to do a lot of forward buying so that after september 14th, they've got plenty of inventory to survive several months >> now, mr. gutierrez, here's the thing, everything you're outlining certainly seems to suggest that the phase one deal agreed upon not that long ago is probably in trouble, but yet, yesterday economic adviser kudlow and the administration and word from mr. lighthizer that phase one is still on track even though there may be some subtle delays to covid-19 and in the back of my mind i think part of that is thingsthey need, they need food, but do you think they will continue to honor the agreement? doesn't that speak volumes about how th

beijing threatening retaliation for restrictions on while way, that sent shares of boeing, apple and qualcomm down 5%. cisco up 1% on the day, oil a big winner again, second day in a row, it's up 19% this week as you can see from that chart, just about $30 a barrel the contract is expiring a week. we will watch that, the lockdowns are easing, were approaching memorial day, people are moving again, that means are using gasoline and oil, take a look at stocks on the week, it was a down week across the board, down, down 2.7%, nasdaq down about one point to percent on the week. connell: there you go, thank you, lauren simonetti on the markets. melissa: house lawmakers are currently debating the 3 trillion-dollar cove in 198 package proposed by house democrats, a push that the wall street journal editorial board is calling pelosi's presidential platform, here is steve forbes forbes media chairman, basically to some of their thesis, what they're talking about if we ended up with joe biden as president, he's not somebody who is known for radical or new policy, and be hard to say what a policy is tha

it was announced that china could resort to using this list if cap -- if companies such as apple and qualcomm could be targeted. thate: that was -- tom: was selina wang in beijing. on the up next, we will look at how the coronavirus has affected cross-border m&a appetite. citigroup's banking army is bullish on asian equities despite economic headwinds and the bleak picture, the earnings, market outlook next. this is bloomberg. ♪ asian stocks are trading higher despite as going tensions between the u.s. and china. its go straight to analysis with the asian pacific investment strategist, joining us right now on the line. thank you so much for joining us. it seems right -- it seems like right now, markets are focused on the reopening of economies, more so than these trade tensions. is it justified for you to buy on this rally and chase it? >> there are massive amounts of policies, the u.s. dollar is cheap. there is quite a lot of support for the markets at the moment. is initial recovery. initial recovery almost always looks like a v. as we go into the third quarter, then i think the market was

apple. intel and qualcomm are lower after the u.s. says they will restrict check supply, tightening rules around huawei in terms of how many chips they get to make some of their products so those chips are lower. insideto look at a chart my terminal because you are seeing a valuation between growth stocks and value stocks near a historic high. this is the forward p/e ratio here. that valuation is growing and growing. as the more expensive stocks get more expensive and the cheaper stocks are getting cheaper. the widening we are seeing in the bifurcation in this market. i wanted to touch on crude because it is friday at 1:00 p.m. crude is at 140% in the last 14 days. u.s. oil has come in at 258. u.s. gas count at 79. total red count now for the week, 339. you are seeing some of these oil great counts coming down by 34 on a week over week basis. there is a 29 handle on the front, second, and third month contracts of crude. vonnie: taylor riggs, with the market update. we want to return now to the white house. esperary of defense mark is

more curbs were based on huawei, that it could retaliate, putting companies like apple and qualcomm onn the meantime, china has been quite defensive in terms of responding to the decision to put tariffs on australian -- what are they saying? china converts ministry said it is being prudent and restrained, based on evidence they found that australia has been subsidizing -- causing damage to local producers. rejected its claims. the backdrop is australia has an independent investigation into the origins of the virus. fast worsening with relations. china's ambassador saying it could lead to a continued way caught of australian beef and wine. in addition to the tariffs, china had -- this month, which adds to the debate in australia over whether china is punishing the countries are asking for this indication that china has not ever said -- they said -- exports related to health and safety. we did not hear the comments minister mention any deterioration of bilateral relations between the two countries, sticking to the fact that they are doing an investigation into these imports. david: when

companies such as qualcomm, cisco, apple and suspend the purchase they say of boeing airplanes.n reaction you have all these stocks down and then don't forget that apple still gets about 17% of their sales from china, based on more than 50% of their iphones in the country. also we have boeing still getting about 12% of their planes sales from the country. qualcomm still does a lot of business there, over 50% of their revenue comes from china. and then amd advanced micro devices get about quarter of their sales as well. we have seen this play book before because we had the trump administration squeezing zte, which is the other big 5g network telecom equipment maker. they were brought to their knees without access to high technology, namely chips coming from the u.s., and that was reversed after chinese president xi jinping personally asked president trump to release and reverse this policy. but it will be interesting to see if we see this happen once again. we know this is a pressure point. by the way, charles, for china, since huawei is one of their most important technology com

the editor also threatening qualcomm, cisco, apple and boeing.na and specifically where the coronavirus originated. >> when it came from the lab or came from the bats or came -- it all came from china, and they should have stopped it. they could have stopped it at that source. i call it the source. right there -- maria: they made the decision to allow it to escape its borders. >> i don't know if they made the decision, but it got out of control. i think more likely it got out of control -- maria: senator cotton says that they didn't want the chinese economy to contract 20% and the rest of the world to contract 2%. >> so we were beating them very badly before this. we were beating them between the tariffs and other things we were doing, and we were going up, and they were having a very bad year, the worst year they've had in 56 years -- maria: had hong kong protesters on the street. >> and even beyond that. and we were really doing well. and that is a theory. but here's what i know for sure, they didn't allow this whole thing, or they didn't allow

qualcomm and apple might be investigated and end up on the unreliables list yeah that's right how unreliable is this yeah on the unreliable list same with boeing some think that but i don't, which needs every customer it can get. second, the timing is all wrong. it's one thing to start a trade war with china when you got 4% unemployment and booming economy. 30 maybe even 40 million people might be out of work thanks to the pandemic not us, the pandemic you know started a trade war going into a depression, don't you? herbert hoover rule of thumb. go google smoot hallie tariff. it was a disaster. you know, they gained cities after hoover they called them hoovervilles. no need to repeat that what we need is a deescalation president promising we'll have a vaccine and a huge year for the economy in 2021. i've heard him say this many times. right now, things are looking too much like the 1930s for my taste. i always felt if i got in any sort of position of influence, i would just shout it from the rooftops i am shouting it from the rooftops that said, if we get nothing ne in the china front, we ra

technology giant from global chipmakers china threatening retaliation against american companies qualcomm applevada 6.4-magnitude quake with hit western part salt-like city utah california central valley tweeted they feel that quick, controversy in michael flynn case president trump calling for fbi report that officials claim has vanished, and weekend almost here my little dusty ready for fun in sun check this out dusty on the beach, "mornings with maria" is live right now. . maria: global markets this morning mixed take a look at european indices fiment00 having given up much of earlier rally up 30 points cac quarante has given up all of earlier rally now negative, down 13 points dax in germany up 60 points as relations between. s and china impact across the world bank of england governor said negative interest rates are not being considered follows comments from jay powell germany meebl plunged into recession, economy there shrinking another 2.2%, in first quarter. . in asia overnight markets mixed take a look more signs of a slow don in china when retail sales april down 7 1/2% and investmen

extend this to is do you want to own more than apple if anyone were taking mount of apple and putting it into qualcomm and maybe spreading the bets on smart phone/5g industry, i'd be fine with that. >> don't you think a lot of that is in the stock? why does it have to be a sell and put money into something else why can't it be raise cash and sit? i think that's her point doesn't sound like she sold apple because she's deploying it in five other places she's waiting. >> that's fair enough. by the way, i did sell a little apple. i did sell a little apple only because i added a few. i increased my position about 20, 25% a few weeks ago. in terms of target, the stock is not far from where it was when everything was going great before covid that's been my rule in trimming and selling stocks i think target will be one of their survivors. their cost will continue to escalate right now it got a little rich for me >> you trimmed alibaba, lululemon, micron and qualcomm >> i did i was adding at lower levels and got to dial them back. the market is a defined trade range. i've got to take some profits and have som

companies such as qualcomm, cisco and apple, and suspend the purchase of boeing airplanes.ly people are getting concerned about the potential impact this could have on the trade deal since people are worried about trade tensions ending up in a scrapping of the relationship or ripping up of this deal and for the relationship to continue to get worse. one of the things though that we should know is that he is obviously very well connected with the government. you know, a lot of people respect what he has to say over here, but at the same time he's often used as a way or he often kind of talks about policy that's not official so he could get a message out but then that could just be posturing because when you look at the rest of what's happening in the state media, for the most part it's talking about how china is making good on its pledges, it's bag up soy beans, it's easing tariffs on blueberries from the united states and shipments of barley so you could see that from the chinese perspective there is a hope that the trade deal is going to continue and that the trade relatio

the chinese go after our companies like qualcomm, cisco, apple and boeing. think it can happen? fear is right now maybe it already is happening. dean chang joins us, heritage foundation senior research fellow. dean, we live in a world where it is tit-for-tat, i get that but how damaging could this be if the chinese start warning companies like qualcomm, cisco, you know what, we might just rein things in. >> well it certainly wouldn't be the first time that the chinese have issued this kind of warning. when the u.s. has conducted arms sales to taiwan for example, the chinese warned companies such as boeing, old united technologies, et cetera, that hey, if you participate in this we'll come after you. obviously not just in terms of military sales but back when it was all one company, carrier air conditioners and otis elevators. so the chinese are very aware that they have a huge market, they're willing to use that as leverage. neil: are they, are they already kind of letting it be known though, whatever we agreed to on the trade deal, that's off now? maybe dow

on what i know, if you block further, we can add you to the unreliable list, and he says qualcomm, cisco, apple as well as suspending the purchase of boeing planes. >> this is terrible. the china haters and china lovers should look at our retail sales and say, you know what maybe we have to shut up a little bit here. maybe we're not as strong as we'd like and we should hold out until we're stronger i've been the hardest line on china. everybody knows that i'm harder than peter navarro. but this is not the time to cause some sort of trade war that escalates to the point where we have tariffs like 1930s. are we crazy look, i don't like it. i still say the wuhan virus, whatever this is not the time we're not strong you don't want to replace -- i don't know i'm discouraged. david, i'm discouraged >> i don't blame you i wonder whether, jim, we're going down this road, all you need to do is look at the headlines, look at the rhetoric from many countries including our own that says, hey, corporations, what you make in this country or what you make period stays here. we don't let you sell it anywhere e

companies some apple for instance and we also saw on friday that the stock prices also because as semiconductor companies like qualcomm for example or intel they actually got to quite heavily if the united states will follow through on this threat remains to be seen but it clearly wouldn't be helpful but overall it was really fascinating to see once again here on friday so we had this news was a possible trade war or escalation of trade tensions between the u.s. and china we had those certain pretty terrible and historical slump in retail sales and what did the markets do well which are a bit to the upside but for the week down 2 percent. no one really knows anymore all right yes quarter there for us in new york thank you very much ivan as we can all right over to europe now where the contents largest economy is now formally in recession the german economy shrinking by 2.2 percent in the 1st quarter of this year that's its biggest quarterly fall since the 2009 financial crisis virus measures have shuttered shops and restaurants wiped out tourism and provide a setback for manufacturing and the numbers will only get wor

of them for the chinese government, again threatening retaliation and they say shares of qualcomm, cis cisco, apple, boeing, sources of possible targets for retaliation amid u.s. moves against huawei that took place in premarket trading session. we know this is one of the pressure points for china. for instance, huawei employs close to 100,000 people in the chinese economy and they are one of the most important, if not the most important technology company that still, by the way, has links to the chinese government so if you pressure and squeeze this company by limiting the access to u.s. supplies and namely chips, that's going to bring this company to its knees. huawei, by the way, is the second to third largest smartphone shipper in the world and we know they are the leader when it comes to 5g telecom components and network gear that they have been selling to governments around the world. stuart: tell me about this $12 billion factory that's being planned i think for arizona to make chips. bringing jobs back to america by the sound of it. susan: 1600 jobs, talking about a $12 billion investment o

apple. how about hyatt, disney, ford. how about boeing, qualcomm exxonmobil, royal caribbean, coca-cola, chevron, starbucks, ibm, you name them, they're all there. now, here's some perspective on just how many companies are doing this and why it matters. because take a look at these stats. now, over about $100 billion in corporate bonds were issued just last week alone. for some perspective on the broader market, over $600 billion in just investment-grade bond issuance happened just since march 23rd and for even more perspective, kelly, about $1.05 trillion in total investment grade issuance happened in all of last year so over half of last year's total amount happened in just the last two months. a lot of companies taking advantage of this almost-implied, now implicit fed backstop for the credit markets. kell, back over to you >> dom, thank you. my next guest says the fed could be propping up other companies that would collapse and its corporate bond buying could lead to a spike in the number of zombie companies going forward for more, let's welco

we heard qualcomm talk about the uptake in china for 5g was good, moreor us, apple is also of a secondostly because of 5g. i think this is an interesting .pportunity the near term is very solid, and i think what we expect to see is for them to be very good. alix: what do you make of amazon, then? it is twofold. they have to spend a lot to increase wages for workers, hiring workers, change warehouses to meet demand. at the same time, they are under a lot of heat for how they are treating their workers. how do you view amazon right now? mark: i think what amazon date is brilliant. i said this for a very long time, i think air is no ceo on the planet that thinks longer-term then jeff bezos. that being said, i think what he has done with this for billion-dollar commitment to investments is he's addressing some of the things where people have been critical of them, which is around workers, around infrastructure and those type of things. i think this commitment is deemed done at the right time. i think it is being done for the right reasons. there's a lot of pressure on their infrastructure

qualcomm but not the other companies in the u.s. this has not been active in china anymore. it doesn't really hurt much cisco. sensitive -- is interesting, because applebout 15% to 20% of revenue from china, so it might do some harm to apple, but the problem is that apple, their whole supply chain is in china. so many different components, assembly, modules in china, so any retaliation on china would their economy more, so i really doubt that china would make a powerful, effective attack on the technology companies in the u.s. somenda: sebastian, companies do not need a license to sell huawei. how much support could that provide? at least -- if you look at huawei, the business is separated into two parts. the smart phones, and the telecom business. suppliers, most of them can supply on the consumer end. business,rastructure they still have limited capability to support that, which means that yes, some of these guys may take a benefit, but that would not help huawei to restore everything, particularly those base stations , because they literally cannot outside the u.s. final question. do you think that the united states should have legitimate is it a o

apple 5g available? : it is not available. to be honest, i never talk about a customer's product plan, even if i am aware of them. haidi: that was the qualcomm the outlook of singapore bank, just ahead. this is bloomberg. ♪ ♪ prepares for mounting bad debt in the face of the virus-led recession. jeffrey's equities had krishna guha joins us now. give us your reaction on the numbers today? the mounting bad debt, overall loss from non-realized portions was not expected. that is the hit for the ocbc bottom line. shery: we have seen the three banks posting the first profit loss since 2017. how are singapore banks position to come out of the pandemic? our balance sheets ok? liquidity? in liquidity, i don't much overall liquidity is of an issue. banks are increasing prices to have a capital buffer. the question is how prolonged this sentiment will be. what do these, banks have to take? i don't think anybody in the industry is estimating an asian financial crisis. that is not our base case. so yes, it is an unprecedented banks are positioned with strength, having a buffer of liquidity. krisna, how much it -- krishna: how much is the oil rout an issu