let's get a choveg qantas. -- a check of qantas.arket up .7%, qantas up a little more. allen joyce was saying he wasn't sure international travel would ever rush to the levels of precovid-19. we'll have the first interview with him after that announcement. shery: coming up werg speak to the largest toy retailer and distributor in china. up next, japan extends its date state of emergency through the end of may. how asia is dealing with the virus pandemic. this is bloomberg. ♪ >> you're watching "day break: asia." the u.s. borrowing to cover stimulus, the estimate is $3 trillion higher than announced in february when the treasury was expecting to pay down $56 billion of debt. it says the increase is drive by expenditure to help businesses and individuals in the pandemic. the blame game surrounding the coronavirus has the offshore yuan nearing a record low. currency traders are watching washington and beijing hurl accusations back and forth about the pandemic, president trump raising the possibility of tresh tariffs. the offshore yuan

with qantas and jet star, the low-cost carrier is well-positioned.s the business comes back we will be so weng business for cash will be cash positive back in the air and that will lead to attractive airfares in the domestic market, stimulate the industry. we think there is a pent-up demand as people have been locked down for some time. they want to visit their families and go on a holiday. we think there will be a pent-up demand and we are well-positioned to take advantage. this opportunity for qantas given that strength, we are the strongest airline in the world with the best level of liquidity , the lowest level of cash burn, and we can take shares domestically and internationally. >> when would you expect consolidation in the sector and would you lay a role? alan: we are key on consolidation when there is a chance. asia-pacificn the where the governments on the airline, but qantas is well-positioned to take advantage and we will keep an eye out for those opportunities. >> what does qantas look like after this when we get through coronavirus, what

for 2020 1-2021 will be different from the qantas from 2019. will take some time to recover. we know we have to look market by market and work out -- what recovery looks like. we are in the process of doing that. we have not met -- made any calls on it. whether we bring back the 747s due to retire at the end of the year. that is unlikely. we are maintaining flexibility. a-380's it depends on how the united states and the u.k. cope with covid-19. markets there may be opportunities for australians to go overseas. the asian markets we have had in asia, and how they respond to this. at the moment we are keeping flexibility open, keeping everything on the table. we have made a decision to delay projects sunrise, which was our fleet we were looking at ordering to fly nonstop from australia to london and north america. in different circumstances, we do not think it is the right thing to do. yvonne: that was alan joyce. business flash headlines. k co-founder adam neumann is suing softbank. is the top investor and newman says softbank is relying on lega

so qantas is offering attractive things when things get going and hope to get the cash burn that is $26k down by the end of june. shery: if you are away from a screen, you can find in-depth analysis and the big news makers on bloomberg radio, now broadcasting live from our studio in hong kong. listen through the app or bloomberg.com. this is bloomberg. ♪ ♪ shery: sony plans to take his lucrative finance unit private for $3.7 billion to inject more stability into electronics and entertainment. it is warning profit would fall as much as 30% this fiscal year as the coronavirus bites into consumption. it has been hit with sales staff unable to pitch customers directly during a pandemic. apple is said to be shifting the production of its air pod headphones as it looks to lessen reliance on china. apple has already chosen manufacturers and hopes to have the first batch ready for shipment in july which means relief to consumers late summer. mass production will begin around the same time. walmart shares opened strongly but sank as virus stockpiling -- same-store results rose 10% in the u.s. an

andhe qantas of 20 2022 -- the qantas of 2021 and 2022 will be quite different from that of 2019. >> anybody stay in a hotel? >> it's going to take a while. i think what will come back first is domestic businesses. >> how soon will anybody go to a mall? >> we plan to reopen over 90% of our starbucks stores by early june. the fact that these spaces may be open does not necessarily mean that they will be doing business. nejra: that was investors and ceos discussing the challenges of reopening amidst the coronavirus pandemic. let's get the bloomberg first word news. >> the number of americans filing for unemployment benefits has topped 3 million for a seventh straight week. it is a sign there is little relief in sight for an economy reeling from the coronavirus pandemic. it brings the seven-week total of jobless claims to over 33 million among which also points to potentially unprecedented job losses in the payrolls report out later today. traders are now pricing in the possibility that the federal reserve will cut its policy rate below zero. feds fund futures extended their rally with

a contest says his country must accept some risk as it continues to ease its coronavirus lockdown qantas says italy can't afford to wait for a vaccine to reopen businesses travelers from within the e.u. will be able to visit again from early june without going into quarantine. the mayor of new york bill de blasio has been distributing face masks in a city park to raise awareness about slowing the spread of the virus over 20000 people have died in the city with lower income neighborhoods being hit especially hard. that the bundesliga became the 1st major european football league to resume play this weekend after a 2 month break juta the coronavirus pandemic all eyes were on the revered darby as for a sea of dortmund filmed shout at home without any funds in the stadium this doesn't look a sound like you usually been deceived again but what's your daughter been playing shaka in front of an empty stadium due to the corona virus pandemic players who didn't start had to wear masks and keep their distance. but what's not unusual is movie machine erling holland scoring goals in 1000 on the dead

. ♪ haidi: we are getting some breaking news in regard to trading of qantas.ording to a statement from the company submitted to the australian stock exchange. anotherhey have secured $550 million in debt funding against three of their boeing 7 79 aircraft. the extension of flight cancellations will carry through from june and july. the abilityit has to restore some services shortly. travel restrictions and national guidelines change, expecting the cash burn rate at $40 million a week by the end of june. you balance that against the $550 million in funding they have announced against the three aircraft. qnatas saying total short-term liquidity stands at three point $5 billion australian as of may 4. we will be getting more details. the ceo alan joyce will be speaking at 10:30 a.m. sydney time and talking to us later for more details. let's take a look at the after the bell action in the u.s. we are seeing earnings weighing and bankruptcy when it comes to these companies. aig saying covid-19 is the largest catastrophe loss it ever experienced. taking a $272 mill

qantas warns of a long road to recovery.ould take years to get back to normal, and is borrowing even more to help weather the crisis. it raised 350 million u.s. dollars, and says it now has enough liquidity to rise out the current collapse in demand until december 2021. that is your bloomberg business flash. anna: let's talk about the global economy now. goldman sachs, morgan stanley, economists at both banks say there is evidence the world economy is starting to recover from coronavirus and restrictions placed on businesses and the consumer, as governments increasingly ease virus restrictions and open up economies. we're starting to see some of that in europe and parts of the u.s. one,ing us, laurence bo chief economist at the oecd. thanks for having you with us. would you agree global economic activity has bottomed out? laurence: it is clear, we're entering into some sort of phase two of this economic episode. there was confinement pretty much across the globe, and now we're seeing many countries reopening. but i would war

early june chile has just over 41000 confirmed cases so far italy's prime minister just said that qantas and his country is taking a calculated risk by gradually lifting lockdown travel to and from italy will start again next month but only people traveling from shanghai in the e.u. countries will be allowed to enter previously banned trips within the country will also be permitted content says protecting lives is paramount but if we can't afford to wait until a vaccine is developed. our values remain the same and the 1st of those is the protection of life in of citizens health their non-negotiable values but we have to approach them differently in this phase 2 we are facing this risk and we have to accept it otherwise we'll have to wait until a vaccine is discovered and we can't afford to. restrictions are also easing in germany where the country's top football league resumed its matches on saturday the bundesliga held 6 games for the 1st time in over 2 months but fans were not allowed inside stadiums players are being regularly tested for cope with 19 is the 1st european football leagu

qantas says social distancing wll not be part of its strategy to resume flying once travel restrictionss it plans to introduce a range of safety measures which include masks on board, hand sanitizing stations, and enhanced aircraft cleaning. the airline is not including social distancing on planes saying its medical experts don't believe it's necessary. australia's transport union say these measures are not good enough. >>> the border between the u.s. and canada will remain closed a while longer for nonessential travel. prime minister justin trudeau announced another 30-day extension that will run through june 21st saying provinceal leaders and many canadians fear a reopening of the border. this is the third extension so far. president trump confirmed the extension, saying he is looking forward to its eventual end. >>> so the shelter-in-place order can hit teens especially hard. coming up, how to help your kids cope. >>> and the future of education. what some universities are planning to do to keep kids on campus theand we want to thank times, the extraordinary people in the healthcare

qantas told possession right after the restart and took advantage of some shocking money on defending at the civic center de luca baccy away on goal with a pinpoint true pole and the 20000000 euros signing make no mistake she nailed. the bosnian veteran is clearly revelling under the tutelage if not the dia who coached him before at stuttgart. was a top player i've always said that especially after my time in chicago he's one of the best strikers i've ever coached because he's better than many think. levity and hats could be a perfect match almost every player has improved under his short range. the 2 goal lead is well received back in the pop i'm out on the table shows the world that wants to fight it but if not it's football fans who are tissues this is an ancient story there's an old friendship between hatton on your own that's been going on for at least 404550 years still have to undergo an e.o. and have more than friendship in common they're both aiming to steer clear of the relegation battle but the way he had to tackle this match european qualification could be a possibility wa

glad that it would miss surrounded by 2 qantas unfortunately all during the course russia ball and the lithuania at the time if they knew and was still a part of the soviet union run open skies. so these people if they act. on something that is to know what to play by us with them and they completely it is we got history if forget what happened just 2 or 3 years ago you know when they say you know what business has russia during ukraine they discard * * 300 at least 300 actually or 100 years or so history this is the same story with open skies and kind of you know grab they just forget what what what was there just do it when you're there and you don't think yeah he meant they just simply don't know because they don't take any ever nuge on to me here is you know you have one minute left here one of the think that this is an opportunity ok that is being lost we have. well the west is ratcheting up tensions with china now it was an arms control regime was one thing that you know you would always the 2 sides adversaries would come together and because it was their mutual benefit this is t

you imagine that canadian graphics region would be an actual act that it would be surrounded by 2 qantas unfortunately all too the course though russia ball and the little ania at the time used to a new and was still a part of the soviet union ronald and skies were so these people of the day they act. well something that is to know what to play by yes with them and they completely it is really got history forget what happened just 2 or 3 years ago you know when they say you know what business has russia during ukraine they described * $300.00 at least $300.00. years or history the same story with that open skies and kind of you know grab they just forget what what what was there just do it when you're out there and you don't speak yet the man they just simply don't know because they don't take any effort in trying to make here is you know we have one minute left here one of the thing that this is an opportunity ok that is being lost we have. the west is ratcheting up tensions but china now it was an arms control regime was one thing that you know you would always the 2 sides adversaries

go with you because it's impossible that the same sad story would suddenly in separate independent qantas that you would count their statue or for marshall warner removed from prop and the check say it was just the local authority who decided to do it you know then you have. you know facebook removed the sport on the car right version of the sport facebook is based in the united states that it's not only against russia the name of franklin delano roosevelt was removed from everywhere in port unless people cared about. and there are every year rules about is still a national hero in the night you know and that's the medicine just you know did the thing is he right it seems to me and i think tim is on to something it is an ideological approach to all this but we can't deny it's simply ludicrous to didn't 9 the existence of historical figures now the difference is that glorify them ok i get that all right but you know it's almost like the the iconic picture of yalta where you have you know stalin churchill and roosevelt and you know in our early in the in this post cold war environment you k

transparency trust and peace between staci 5 countries has that wanted out to conduct a nod to the qantas its flight each of those territories so that the other case they can see this is a massive but trailed they see this as still a hugely beneficial course that must be kept alive at all costs it's probably on surprising that this decision was met by the international community with a great deal of concern and of course they had that it could well deal and major blow to the security we reiterate our concern regarding the erosion of the us russia arms control regime i think we can stress enough that this arms control regime has provided security benefits for the entire its entire international community by constraining strategic arms competition ending such agreements without anything to replace them could result in destabilizing activities such as a dangerous new arms race leading to a possible miscalculation. i very much regret the announcement by the u.s. government that it intends to withdraw from the open skies treaty the treaties an important part of the european arms control archit

during qantas it was a really big deal at the time so yeah there's very i don't want to jump in here and recommend something to you but i recently and maybe you've seen it as a former dancer there is a brilliant document documentary about a woman named 10 a kill look clear and she in the flick mid for middle late fifty's you have to see or know if it will blow your mind she was perfect she served as balanchine and jerome robbins as muse and in a 10 to 15 year period she was the most gorgeous live but at bloody young dancer and then something something happens i don't want to tell you but you have to watch this documentary called the afternoon of the flom you know absolutely break your heart and i think i'd watch it tonight if i were you because i think we are even know each other i think you probably say thank you for recommending that because honestly it's dad's fat and it absolutely stole my heart oh no james incidents thank you yeah you know it really i mean dance was was i was an athlete and you know against us are incredible athletes and artists of i made a movie years ago that

dominated by qantas and virgin, although it was still competing at least.rners can turn virgin , it is potentially going to be wiped out. it is possible you could make oasis thate australia is at the moment. sophie: given the way the australian domestic market has been going, what is the -- >> the australian domestic market is a lucrative market, dominated by qantas, which has north of 80% -- two thirds of the capacity market share, and close torly notches up one billion australian dollars of profit every year and that is really without a strong competitor. if you look at the years ahead, the airline industry is coming under pressure internationally and the australian market is an isolated pocket of income. -- domestic market. we see plans underway between australia and new zealand, perhaps to open up a unilateral -- a bilateral travel corridor, so it is in some degree isolated of thee broader pains international aviation industry to it has just two carriers tap net profit pool. that is the draw for all these potential buyers. you so much. breaking lines he

it actually has because qantas entire panamic especially if you look at countries like venezuela argentina trading volume has never been higher since that's and we've always said that in times of crisis this is where quite a currency really shines and you've seen o.t.c. entraining and just go off the charts and venezuela and argentina in those 2 countries predominantly boom bust co-host ben swan and christiane thank you for that expert analysis on this. thank you. for a quick break but hang here because when we return as small businesses continue to sizzle out in the midst of the copen 1000 pandemic how will small restaurants survive if the virus rages on we bring in a true better end of the sector when we come back as we go to break here the numbers at the close. seem wrong. to shape our. attic. and indeed. the trail. find themselves worlds apart. yeah. you see if you can achieve. your goal or do it if you keep. things so they. had to call someone an idealist and that is what you want. them to sure believe this is. just the q. you've said there's a long. long. history you clenched. give .

governor andrew cuomo says all staff will be tested for the coronavirus twice a week and hospitals qantas charge patients back to nursing homes until they test negative for the disease. or the nursing home staff must now be tested twice a week. that's not just a temperature check that is a diagnostic test we have the tests available we have brought them on line the state is more testing capacity been any state in the country they have to test their staff twice a week that is a rule it's not a i'd appreciate it if you did nearly 80000 people have died from the corona virus in the united states it's the highest death toll of any country president trump continues to describe his administration's handling of the crisis as a success but as mike hanna reports it's facing criticism for the lack of any pandemic response strategy in past decades the u.s. was the global leader in pandemic response the bush administration largely set the world agenda in combating the h 5 n one or bird flu virus if we wait for a pandemic to appear he warned it will be too late to prepare president obama demanded dail

qantas is flying at 5% capacity domestically and just 1% internationally. u.s.nes stocks reacted weakly to signs that demand for travel may be picking up. southwest says bookings are starting to outpace cancellations and reservations for june while united is reducing cancellation rates and sees moderate -- delta says it has seen a slight bounce in so-called leisure bookings. coming up next, our interview with the rbnz editor, adrian orr. find out what they are working on to deal with the covid-19 shock. this is bloomberg. ♪ shery: let's take a look at how markets are trading at the moment. we are seeing u.s. futures rebounding from earlier losses, up .2%. this of course, as we had u.s. stocks fall after a week. this as we saw optimism over moderna's vaccine starting to fade. we had chairman jerome powell also saying the fed is ready to use all the weapons in his arsenal to help the u.s. economy. the nikkei futures up .1% as japanese yen is now around the weakest in four weeks. down 1.5%.ures we do get australia's westpac leading index. as investors iqs from cent

of: within the complexity cathay pacific or qantas and the unique relationship with you by, -- dubai,ume there will be government bailout of your industry, or a private market consolidation? john: i think it will be a combination. it is good for consolidation, but there in mind that many of the airports who want to consolidate do not have the capital to do that if the wait 3, 4re having to months before passengers come back, that is manageable. if it is 12 to 18 months, most will be out of business by then. 180 million jobs in the sectors for aviation, that is why we have to solve all of these things, get people flying again as soon as it is safe to do so. francine: do you have any forecast on how many jobs will be permanently lost in your sector? john: it is hard to say. what we can see already is aviation businesses are having to make the call earlier than many others to make job cuts, and the reason is with no cost, wet all, a high are burning through cash very quick. heathrow alone is burning through 200 million pounds of cash every month and that is not sustainable. if we know th

day quarantine also previously banned trips within the country will be allowed prime minister just qantas says he's taking a calculated risk. what are they mostly bring should be the main goal is this our values remain the same and the 1st of those is the protection of life in of citizens health their non-negotiable values but we have to approach them differently in this face we are facing this risk and we have to accept it otherwise we'll have to wait until a vaccine is discovered and we can't afford to which it will travel is also now allowed across england but rules for the rest of the u.k. have not been eased in france and greece people can now go to the beach but there are rules on the number of people allowed and how close they can be sport is back in germany with the return of the bundesliga football league 6 games were played on saturday but fans were not allowed inside stadiums in italy the daily death toll has now fallen to its lowest in over 2 months but the tourism sector has taken a big hit this is usually peak season and as branka gupta explains hotel owners can't wait to ge

qantas in 2021 and 2022 will be very different from 2019.ord take two traffic to return. >> it will take a while. visibility, and what will come back first is domestic businesses. open and reopen over 90% of our starbucks stores by early june. >> the fact these places maybe "necessarily mean they will be doing this. -- be doing business. investors andere ceos discussing the challenges of reopening amid the pandemic. wouter sturkenboom, chief investment strategist emea & apac, norther trust asset management is still with us. i feel the salesforce ceo summed we arealking about figuring this out as we go. that seems to be one of the takeaways coming through in the earnings season we have had. in that environment, what is the mindset of investors you speak to? morgan stanley yesterday said the term cash on the sidelines has taken on new meaning at the moment. certainly has, especially when it comes to corporate balance sheets and the risk of running out of liquidity, therefore the liquidity crisis is turning into a solvency crisis. that is the p

a qantas the asher. offensively warm with a rod predicting it. react to his first homer this for other few words pronounced himself happy. >>his father's pitching and what he wants to be when he grows up. >>and can you. >>that would be ronald acuna junior star outfielder of the atlanta braves who applauded ashers home run with them oh geez but watch your back up to me a >>its bombs away all right. >>even if it's his dad who detonators she knows it. >>there was no crowd, so you know you gotta ear, i love you gave you the fan that's that's all right. >>plus i don't think he thought anybody would be watching like the world like we are 9.22 is a tie right now we'll be back with more in just a few minutes, let's take a live look outside here. >>at the approach to the bay thanks for sharing your diy haircuts. thanks for sharing your savage moves, and especially your awkward ones. thanks for sharing your cute kids. and your adorable pets. now it's our turn to share... with the geico giveback. a 15% credit on car and motorcycle policies for both current

qantas, 20,000 staff are on leave. the list just continues. do you think it's fair to say that the consequences of this pandemic for the airlines industry has not been fully realized? >> no. the consequences have not been fully realized. and that is especially true in the united states, where i sit. the only reason there haven't been mass layoffs in the united states is because the u.s. government is paying the salaries of airline workers through september 30th. as soon as october 1st comes around, tens of thousands of americans are going to lose their jobs, and that's on top of the job losses that you spoke about in other countries. i think we all wish that this wouldn't be the case, but look, 2019 was one of the high points in history of aviation. more people were flying than ever before. airlines needed to staff up to meet that dems. and that dems is gone. and it's not just gone now. it's gone for at least two or three years. i do think everything is going to bounce back. maybe in five or seven years we'll be talking about this was a long t

transparency trust and peace between staci 5 countries as that wanted out to conduct a nod to the qantas its flight to each of these territories so that the other case they can treat this is a massive trail they see this as still a hugely beneficial course that must be kept alive at all costs it's probably on supply think that this decision was met by the international community the great deal of concern and of course fat that it could well deal and major blow to global security we reiterate our concern regarding the erosion of the us russia arms control regime i think we can stress enough that this arms control regime has provided security benefits for the entire its entire international community by constraining strategic arms competition ending such agreements without anything to replace them could result in destabilizing activities such as a dangerous new arms race leading to possible miscalculation. a very much regret the announcement by the us government that it intends to withdraw from the open skies treaty the treaties an important part of the european arms control architecture b

we had allen of qantas say that he expects airfares to surge eight to nine times because airlines won'the planes, given the social distances and measures -- distancing measures that will be implemented, or expected to be implemented when airline start to fly. what is your take on that? always the airfares are a function of demand and supply. when demand is suppressed or down, it is only natural that airfare will also go down to try to attract more people to fly. airfaresment is that will be attractive to get people to fly again. thatnda: so you disagree fares will go up eight to nine times. you expect fares to be cheap still? subhas: that is the law of economics. it is the matter of demand and supply. that is what i think will be the most logical consequence of restarting aviation. restart is not going to quickly, or to the same volume as we saw in 2019. the international air traffic association estimates that domestic air travel will only ink up to the same levels 2023. international air level, probably a year later. it is probably going to be in baby steps. an extending framework and

the only competitor is qantas.no other viable options on that group like a high-speed train to cover a 1000 kilometer distance. australia is coming through the virus better than other countries. it will boil down to what the creditors have to say, because they are owed $1.4 billion. haslinda: paul allen with us. plenty more to come on the show. we speak to a senior economist about the bank's economic outlook amidst the covid-19 pandemic. keep it here with us. 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. haslinda: