we are seeing just a flat start when it comes to trading on the asx.lower and we had a pretty bad day on friday following on the back of some poor eco-data in the u.s. as well. u.s. futures have been under pressure so far this asian part of the session. we are also watching oil prices after that 17% rally. signs of may be a bottom as we get opec-plus starting those output curves on friday as well as watching the economic reopening in china and fuel demand there. but wti seeing some weakness and of course, shery, we are continuing to watch what will be a big week with 11 central-bank decisions and a slew of asian pmi's this hour. shery: we are looking ahead to all of that as investors have to digest all of those numbers. in the meantime, a lot of safe haven demand. the japanese yen gaining ground against the u.s. dollar as japan is away on holiday. the kospi also opening 2% lower. this will be the lowest level in more than a week. point 3%.k down one downside pressure for the korean won against the u.s. dollar. ofhave probably sort disappointing economi

the asx 200 up 3%.utes -- we have rba meeting minutes to look forward to coming up, and we are also looking at new zealand. when it comes to numbers out of new zealand, the first weekly gain since about february, this despite news from the new zealand treasury, publishing financial statements and saying the budget is slumping into deficit territory as a result of virus measures. of course, the country coming out of that stage-four lockdown. looking at oil, more volatility of the oil patch, paring the second weekly gain is the global glut overrides the high we are seeing in saudi prices. news out ofing singapore airlines right now, saying they expect a material operating loss for the final quarter of the year. they report a net loss for fiscal 2019-2020. they also say there operating cashless -- they also say theyir operating cash flows will remain negative. they are seeing reduced cargo flows, but cargo yields will sustain into the first quarter as well. they say they have seen no obligation to provide

this, ahead of the policy from the rbz asx 200 also losing.ss, after data showing business conditions have deteriorated. the unemployment rate at 3.8% today. the nikkei down, the japanese yen holding around 107. yeah, and persisting questions over whether it is underpricing risks in emerging markets. we will have a guest to talk about that. plus, one guest coming on tomorrow. smith,be joined by craig giving his outlook amid these troubled pandemic times. that is it. our market coverage does continue. this is bloomberg. ♪ selina: it is 9:00 a.m. in beijing. welcome to bloomberg markets china open. thisur top stories for hour. the white house pushes the u.s. to reopen, but stocks fall as a top disease official warns against moving too fast. anthony fauci fears a new spike in infections. infections continue to climb around the world, including the city where it was first

seeing sydney futures down .1% under pressure, continuing to extend declines we saw friday after the asx stocks under pressure, down .9%. we are seeing pressure from the aussie dollar and the kiwi dollar. these currencies have been supported against the u.s. dollar given that china is stabilizing and there is economic recovery in place. 1.3%, thiss down after the best april since 1987. wti losing more than 5%. plenty more to come. this is bloomberg. ♪ adam: haidi: initially the coronavirus was a health and economic story. economic slowdown, lockdown story, increasingly becoming a geopolitical one. australia has called for an international inquiry to the pandemic, fraying relations with beijing. we are seeing that play out when it comes to the chinese currencies. looking at offshore trading, it is pretty stable, 7.16. this follows on the biggest drop for offshore yuan in a month on the tariffs and investment ban talks and concern. we will be talking about this. over the weekend we heard from mike pompeo, the defense secretary in the u.s., and other policy officials there talking about thi

you have futures suddenly lower indicating losses after the asx 200 closed at a march 11 high. edging higher with a 10 year yield off two basis points while the aussie is gaining ground. a two-day qe holding drop. optimism may be fading -- a2 milk was among the worst more australian companies are being targeted by china. australia is working with its companies. more than one third are unaffected. haidi: we will get more on the escalating tensions. china could be considering further economic retaliation over canberra's calls for a call into the room virus outbreak. paul allen has been watching this. what else could this affect other than beef and tariffs on early? -- barley? paul: chinese officials have drawn up a longer list of goods. seafood,dairy, also oatmeal and fruit, all of those subject to tariffs or any other delay you care to imagine. this is according to people familiar with the matter who didn't want to be identified. -- trade minister saying china's foreign ministry says that hopes australia and china can meet in the middle and take measures to improve the lateral r

asx 200 is being led lower by real estate and utilities.ices out of australia that showed a contraction from expansion territory. that could be weighing a little on the stocks. u.s. futures down .3%. next, hong kong is caught in the middle as u.s. and china tensions ration higher. -- ratchet higher. we talk about the war of words. this is bloomberg. ♪ is bloomberg. ♪ the u.s. secretary of state mike pompeo says beijing -- means america now has no basis to treat it city anymore more favorably than it does mainland china. let's talk about the implications of that with asian trade center founder deborah elms. is there any meaningful implication what we heard from president trump and his a ministration so far -- his administration so far? michelle: there might be. it's very possible that you will have significant ramifications for hong kong and hong kong's economy. but there may also be a situation where there is a lot of sound and fury and nothing actually happens. fit withw does this the fact that just a few months ago we were getting to the

asx 500e are seeing the gain ground in financials and tack.nancials dock and technology. pointing lower with the u.s.-china tensions escalating. fromstrategist joins us singapore. the chinese yuan now at the lowest level since september, 2019 against the u.s. dollar. watch would be watching as the mpc is wrapping up today? -- npc. >> trader starting to get bearish on the wanted. overnight we got close to 720 four the dollar against the offshore yuan, which is the all-time high for that pair. this morning it is it touch slower but it has not gone down now far, and we are waiting for the pboc fixing. what we saw yesterday was the pboc fixed at you want on the strong side, but the market seemed to mostly ignore that. we saw during the day that dollar-yuan start to creep higher throughout the trading session, as people were concerned united states could respond with more sanctions. you have one set already, with that uighur bill and secretary of state talking about hong kong. there could be more in the works. traders are taking up very defensive p

the asx 200 up three tens of when percent.tinue to see australia outpacing their developed asian peers in it comes to earnings downgrades this year. there is broad optimism across markets in asia with qe stocks gaining four times of 1%. this after u.s. stocks climbed to a 10 week high in the regular session. the former u.s. trade representative tells us how she thinks nothing tensions between washington and beijing will play out. 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. >> it is 9:00 a.m. in beijing, shanghai and singapore. but come to bloomberg markets. up tensions.mps passing a bill that could see companies listed in the u.s. they waters weighs in on issue, warni

australian stocks, the futures when it comes to the asx 200 all in a little bit in the early part ofession, starting the day flat after the 1.3% gain we saw yesterday. also watching commodities and oil in particular with saudi arabia saying it will cut oil output, bringing the production down to the lowest in 18 years. coming up, double jeopardy. the u.s.-china trade deal is coming under increasing pressure from both sides, as anger mounts over the coronavirus blame game. we get the latest from beijing next. this is bloomberg. ♪ karina: you are watching daybreak australia. global health services are warning of a second wave of coronavirus cases with a second wave in south korea and a spike in infections in the city where it was first reported. wuhan saw its first new cases since the city ended the lockdown last month. italy reported its fewest new infection since march 4, while france, spain and greece continue to be's restrictions. germany says the u.k. is not taking brexit seriously and failure to agree with the deal is a catastrophe. the latest talks have resumed via video link an

we are taking a look at a bit of weakness when it comes to asx futures. trading flat at the moment.ng like will open at flat. maybe three times of 1% higher. let's get the karina mitchell with the first word headlines. >> china and the u.s. will resume trade talks next week after president trump hinted he may cancel january's phase one deal. the administration and did it is not happy with the pace of beijing's purchases. president said he will terminate the deal necessary. philippines is indicating a pause in monetary policy moves. saying that the reduction in rates and the reserve requirement provides significant buffers. a 200 basis point rrr cut is possible and that the bank remains ahead of its goal to take it below 10% by 2023. he thinks the banking system could absorb as much as 5%. u.s. cases of covid-19 surged most in two weeks, rising almost 2.5% with deaths topping 75,000. president trump and vice president mike pence say they will be tested early for the virus after a military staffer at the white house was concerned -- was confirmed positive. the person is in the navy an

japan, china and australia have already bounced back on that metric with the asx 200 eyeing february'secord and still looking pricey amid the earnings uncertainty. flipping the board, with the dollar turning weaker after the fed minutes and the e.c.b. dolling out funds under its new liquidity program, the yen looking steady, ahead of trade figures in japan. the offshore yuan holding a three-day gain. the kiwi-dollar trading at $61.46 after apple forming on the -- [indiscernible] -- suggesting the market may be getting ahead of itself, pricing in a negative cash rate next year. but subzero rates very much remain a live topic. the b.o.e.'s andrew bayley did not rule it out after the u.k. sold its first negative yielding bond. and the pound easing its overnight gain, that was sparked by bets on lower rates. the central bankers worldwide will consider unconventional policies, concerning are rising over monetary financing perhaps ecoming a reality. >> we're going to stay on that theme. the fed, the bank may not be looking at negative rates to combat the pandemic any time soon. over the past

gains of 1% for the nikkei 225 and the asx 200 this morning. the cosby extending gains.dai motor among the 80's boost. we have u.s. futures edging higher by .4% to let's check in on the dollar. a one-week low with headwinds gathering. negative rates speculation. the deepening of the usc yield curve going into a busy week for fed speakers. the 10-year yield adding seven basis points ahead of a new syndicated bond officer. the korean won on the front foot. we switch up the board to check in on some stock movers in tokyo. monster gaining ground by more than 4%. the carmaker says it expects annual earnings to be in line with what was forecasted. ended reports must at this among global autos rushing to secure bank funding as car sales get battered. ac climbing 6%. numerous shares falling after japan's biggest broker posted a surprise quarterly loss. the people of the bank of china says the country faces challenges arising from coronavirus. it is pledging to use powerful policies to counter growth. tom mackenzie joins us in beijing. concern over the continued hits keep coming

yesterday's almost 3% rally taking asx to the highest level it has seen since march 10.or -- maybe some consolidation seen. we are watching the aussie dollar which has been on a rally but could be tapped by increasing -- capped by increasing trade tensions. in new zealand, upside when it comes to trading in kiwi stocks. they are pondering lower rates and we are wondering if we could see a limit as to the resilience of the country's financial institution. hong kong is bracing for more protests against china's move to increase control of this city and we have learned the u.s. is now considering a range of sanctions to punish beijing for the crackdown. an avalanche of inquiries about , viktor, we were of the -- the scope national security law proposed will be limited. is it a problem? we know paging hat -- beijing has often crackdown on what it considers subversive activities and that affects the scheme of the markets. concern as we you ared is that what doing is removing one piece at a time. youessence of the tactic is never inflict enough pain for the opposite party to re

the asx in negative terrain. the hang seng also. the futures contracts have also turned down. pretty much flat. the time market getting a bit of a boost. 8/10 of 1% higher. that's after the bank of thailand cut interest rates 25 basis points and malaysia is up by 1%. manila story dominating is the philippine airlines restructuring taking place. equity markets in singapore, bangkok and co. while the lump -- kuala lumpur. haslinda: let's look at commodities. oil continues to rise. wti and brent up at the highest in two months. of 5.6 saw a drawdown million euros. kaplan weighing in saying u.s. oil shut ins may be at their peak. we also have china's economy back to pre-pandemic levels. the question is, how sustainable is that recovery? gold futures coming down 6/10 of 1%. gold on the rise recently. the nextget to 2000 in 12 months and could trade much higher over the next several years if there is an inflationary cycle or if we see unforeseen circumstances. the dollar index climbing up right now. this is how it is shaping up in india. of 1%. open, down 3/10 stocks have rallied 17

asx 200, we are seeing one of the first -- one of the worst laggards.s to be the outperform or. easinggns they could be the lockdown in the capital. they are also saying they could resume some air travel in the country. we are seeing some of the airlines really flying today. jakarta slightly higher. the fx market, a holding pattern as we await trump's conference to set actions against china. dollar yuan at 717. the pboc seems keen on showing it wants to limit declines. there is speculation of intervention in the fx market should hong kong dollar at 7.75. the u.s. saying it is no longer autonomous. protests expected over the weekend. theave seen wild swings in hk dollar. the yen trading higher. investors seeking safety. best-performing g10 currency up 1%. resistance level there. route, 14,000, 699. atare looking potentially 6.3%. take a look at where oil is right now. down about 1.3%. 33.29. new concerns of an oversupply. also concerns about a second wave of infections, which could derail recovery. gold futures trending upwards. retaliating china against

we see the asx recouping losses from friday.wn .9% and we are sitting .25% in the upside in the early minutes of trading. -- seeing and building on the gain of 1.7%. watching commodities, a ruling story in-depth medic trade playing out between china and its trading partners. a bit of weakness for the aussie dollar and a bit of weakness for as wefshore yuan as well as we watch the political tensions relating to trade. and the hong kong security bill measure as well. for new zealand we see trading underway for a couple of hours and upsides of .8%. we heard from the new zealand government on offering temporary payment support for those being made redundant as a result of the lockdown in new zealand. a lot of things to consider across the board here. we are done with earnings season and know about central-bank support. it is time to start talking about reopening economies. what that means for your equity investments. we talk with the socgen head of asia equity strategy. frank, early monday, what is top of mind for you this week? wee

this is led lower by australia with the asx retreating from a 10 week high.f gain as iron ore prices stalled midweek. shares are fluctuating with the nikkei 225 adding about 2.5%. the antiviral drug at again is not effective. jumping on sony's plans to take the unit private for up to $3.7 billion. as with that, japan exchange group is surging in tokyo. will -- jp xng gpx will overtake them. this is one of the biggest laggard on the benchmark, sharp is under pressure after posting an operating loss for the fourth quarter. to ¥18.se dividends getting the latest numbers when it comes to coronavirus cases. we are seeing china report five additional coronavirus cases for may 19. we are still watching those ace sin to medicaid numbers as well as some of the specific numbers we have seen recently. more than 100 million people in china's northeast remain under renewed lockdown because of coronavirus cases. our next guest expects the strained u.s. and china relationship to jerry further with the looming economic downturn. great to have you with us, susan. we are getti

the asx 200 which had a very good day yesterday. u.s. futures, 31 points. the one in focus topixnow with the index. starting with tokyo, a lot of good news on the reopening of the economy there. has it been priced in? there probably is some room here. i think people are getting comfortable with the idea that the japanese authorities are putting as many strings as they can at the same time. we expect another relief package to be signed off on this year and a pretty big one at that. emergency measures have been taken off the country. the country is effectively open now at least domestically. last week, the bank of japan announced a special program to help assets and companies and japan. there is a lot coming together at the same time and i think at last, investors are starting to see that japanese equities in particular have been underpriced compared to the rest of asia and the rest of the world and now the government and the boj are pushing together in the same direction. a good tailwind to get ahead of other countries and asia. things are looking brighter.

asx 200 up. the aussie dollar holding ahead of the jobs report.r flirting the 60 handle. edging as much as the pricing for negative rates in new zealand, which would reduce options for yield hunters. the strong demand we have seen saw australia syndicated bond notch another record wednesday as investors are lining up to get a piece of the surge. haidi: let's get more analysis. i want to bring in the director of equity asia research at morningstar. great to have you with us. you say when it comes to china, you are more optimistic on prospects of their economic recovery. we just heard from the chinese finance ministers saying he sees a significant hit to fiscal revenue for china when it comes to 2020. i'm curious about your reasons for expectations of may a quicker or more robust than expected recovery? clarify that we are actually more -- we are coming from a very low point in our china forecast, well below consensus. we had originally forecast for china gdp to decline 2.4% in 2020. now we are looking at a slightly lesser decline of 2.1%. it is a v

asx 200 leading the charge. sydney, andup in looking at the commodities side of things, brent crude is up over 4%. barrel,bing above $30 a as you just mentioned, -- we just mentioned, two months or thereabouts it also a bit of dollar strength but that has not really been reflected with some of the currencies doing better than what we see currently with the pound and indeed the euro, which have been falling back against the greenback. let's have a look at what has been really driving things here, haslinda. haslinda: the focus this week for markets will be that policy meeting in china. fed chair jerome powell says a new rebound in u.s. growth depends on the delivery of a vaccine, but he stressed that the economy will recover eventually. >> this economy will recover. it may take a while. it may take a period of time. it could stretch through the end of next year. we really do not know. powell's remarks follow a warning that -- and our chief asia correspondent, enda curran, joins us now. away?s the key take powell s

financials also leading the declines on the asx 200. almost every sector in the red right now.dismal data out of japan and south korea. the qe stocks holding steady at the moment. about the phone numbers out of japan. it was rising on employment, following on retail sales and weaker industrial production inflicting the damage coronavirus is causing. japan's economy, bloomberg economics policy editor kathleen is here with the latest. where do you want to start? kathleen: i think we have to start on the really bad numbers. yes we know there is coronavirus that caused the lockdown and have caused bad numbers as they have around the world. when you go into a deep pool, how deep is it and what will it take to get out of it? leaders in the two that department, industrial production and retail sales. they were weak in march, got weaker in april. retail fail in japan, down 13.7% year-over-year. the biggest drop in 22 years. that is nothing to sneeze at. to put it in perspective, if you shut things down, make it harder for people to go out, ask them to stay home, you will see less sales

asx 200 adding one third of 1% at the open of cash trade in sydney.ar slightly stronger but still under 65. yield lower by one basis point. kb stock holding steady. kiwi dollar -- kiwi stock holding steady. let's get more on the markets with mark who joins us in singapore. a lot of factors are affecting dollar end trading. trading. and yuan mark: we are beginning to see the option market taking more seriously that there could be downside risk so we are seeing a build up activity of people expecting it to be a higher rate during the year, particularly for the six months that goes into november. things like he does not want to talk to xi jinping, you see an increase in activity of hedging. we might see more in the coming days if tension increases between the u.s. and china. we could see more action in the option space, more people hedging themselves against the risk that the yuan could weaken later in the year. we have chinese activity data for april later today. how will it affect asian stocks? mark: people are hoping we see more evidence that china is

other energy shares are lifting the asx higher on rising oil prices.ing ways to outperform. we are awaiting the rba decision. as australia eases on its lockdown. flip the page. in terms of southeast asian stocks. among the gainers today. watch indonesia gdp. due out later at the top of the hour. sincetes of the slowest 2005. onestors pretty much focused the rate decision, likely to cut rates. plenty of data due by the end of the day. yvonne: we are expecting a bigger cut from bank of car later today. thailand is playing catch-up after markets were closed yesterday. the we are losing steam and the stock rally so far in the session. take a look at currencies. we are seeing a little bit of resumption of strength for the currency for the renminbi. 14 threshold.that 7 within 1% of the all-time low. the aussie dollar seeing some gains. we are seeing asia, modest gains. with the rupiah and the ringgit as well. ahead of the central bank meeting. indian markets. it was quite a selloff yesterday. the nifty falling 6%. we are seeing at least nifty futures in sing

the asx 200 under pressure, down rba holdwe had the rates steady.s, later this month. kiwi stocks gaining ground a third session. first quarter unemployment rate earlier today, coming in at 4.2%. after weres unchanged, sell u.s. stocks gaining for a second day in the new york session. we had sentiment boosted by some economies starting to ease lockdowns. hong kong and singapore pmi's, due in just moments, coming up. this is bloomberg. ♪ these days staying connected is more important than ever. so we're working 24/7 to maintain a reliable network, to meet your growing internet needs. we're helping customers who are experiencing financial difficulties stay connected. we're increasing internet speeds for low income families in our internet essentials program. and delivering self-install kits to your door. nos comprometemos a mantenerte conectado. we're committed to keeping you connected. for more information on how you can stay connected, visit xfinity.com/prepare. ♪ haidi: we are just getting breaking news. argentina and creditors are set to be negoti

the asx up by 0.1%. expecting gains across materials and energy.ve story prices we have seen. darkening that outlook is australia's outlook of being cut on the impact of the coronavirus. on not just its economy but the chinese economy on which australia is so heavily reliant. taking a look at the aussie dollar. holding pretty steady. erasing earlier gains after this report came out, the cutting of the sovereign rating outlook to negative from stable. the aussie 10 year yield holding steady at this point. shery: investors watching very closely china's national people's congress. hour to layin an out the centerpiece of economic policy. agendae addition to the is already causing a backlash. national security law on hong kong. tom mackenzie is live for us in beijing. this already is stirring anger. tom: it is. what beijing says is that this is a very standard security law that would help safeguard the territorial integrity of china. they say other countries have similar laws. the way it has been received in hong kong and internationally speaks to the l

asx 200 gaining ground.or in the green with tech and energy leading the gains ahead of that r.b.a. monetary policy decision. we do have u.s. futures higher, .3%. it's sort of a risk day as well as we see crowding into safe havens with the yen gaining ground against the $, up for a third consecutive session. we do have u.s.-china trade tensions rising again. very close to the $28 at a barrel level. up next we hear from the novet e.u. chamber of commerce in china. this is bloomberg. ♪ >> this is "day break asia." asia is edging toward normalcy with traffic picking up and training running again after weeks of closure. travel is down 96% in hong kong and china. hong kong is aiming to reopen movie theaters and gym this is week as restrictions start to ease. the philippines is saying it will remain in its support for the economy. they say the inflation offers great boom for easing though the normal policy lag means it's waiting to see the effect of measures introduce sod far. the b.s.c. lowered its benchmark rate

the asx pretty flat as we continue to get into that staggered open of trading.ing downside given that weekly from wall street overnight. the aussie dollar is holding steady at this point. we are looking to new zealand, given that is a market that is seeing a fourth day of gains. we are expecting to hear from the new zealand finance minister to deliver marks. could be getting good indications as to how that economy is handling gradual reopening as well as the weight of the extraordinary monetary stimulus coming through from the rbnz. we continue to watch oil. a bit more of a recovery earlier on in the asian session after the rally that saw prices more than double, stalled the new york overnight on concerns that these staggered economic openings across the region is going to be overwhelmed by the glut of supply that we are seeing. the demand side simply won't rise quickly enough. we are continuing to watch the oil patch. shery: we continue to watch what happens in the coronavirus operate. the latest numbers out of china, reporting no new coronavirus deaths. when i