the one down in shenzhen. if you like the tier one suppliers, mold -- the ones major multinationals and it with, the challenge will be in days and weeks where smaller companies that don't really register on these large companies, they have not been producing and inventory gets consumed and there is nothing left out there. we have started to see there is a big effort going on to try and actually source suppliers outside of china. paul: you make a good point it is difficult to get a handle on the state of inventories for the different companies impacted. i suppose it is equally difficult to get a sense of when things return to normal. have we not seen the worst of the impact? christopher: i don't think we have. we are talking about this idea of a perfect storm. the fact that we have had closures, we don't know what is going to reopen. i can't stress enough the challenge across the just ask. we are starting to hear about ships not being able to dock. they are on quarantine. reports are closed because they don't h

the shanghai and shenzhen markets have reopened and they are both down by about another 1%.hat is inspired the central bank of china cutting short—term interest rates and infusing a hefty 22 billion us dollars into the banking system. the central bank unexpectedly lowered short—term interest rates as part of his attempt to relieve pressure on the economy and also pumped millions of dollars into the banking system for lending. i spoke to an economist earlier who gave me his thoughts on the impact of the virus? it will be quite significant. i am looking at a 1-2% quite significant. i am looking at a 1—2% decline for the first quarter. the base scenarios that could be 4-596 the base scenarios that could be 4—5% so how could it impact the global economy because every point deducted could have a deep impact on the global economy? what we are seeing is an immediate impact on industries as well as the global consumption sector. what is next in terms of industry and price will depend on whether people come. we have the optimist and pessimistic scenarios. if the peak comes around mid

>> shenzhen is up almost 10% this year.y is markets have nothing to do with financials. joe: i thought you work in tell good news, green shoots. >> the best performing stock index is the shenzhen. isna traditionally completely divorced from fundamentals. we know that stock market performance is not related to gdp performance. we are talking about this quarter having probably -2% growth, something like that. scarlet: what will it be for the year? 5%, down from the 6% to 6.5% they are predicting. this is a huge supply and demand shock that will take time to recover. know if the virus will recur. there are many things we don't know. it is just crazy you have the best performing stock market in shenzhen. joe: i would not have guessed that. obviously investors are betting we will see some respite. now?ate cuts from the fed with that benefit emerging markets or is that the same because it is still so much risk pullback that rate cuts can have that effect? >>, would be a little skeptical. policy isll, monetary a very powerful tool

yvonne: we heard from airbus resuming production at its factory in shenzhen, but airlines continuingend china, to hong kong and american airlines suspending u.s. flights to shanghai and beijing in los angeles to hong kong until april 24, so a month longer than planned. the airline said it was due to decline in demand. dallas to hong kong will also resume around that same time, but that is two months longer than expected on that route. when it comes to the mobile world congress, that is hanging by a thread now after a list of tech companies are dropping out. the event was set to kick off board to any fort ash february 24 -- february 24, the likes of intel, sony, at&t all canceling plans now. organizers tell us there will be a video call friday to assess contingency plans and whether the event can go on. markets anchor yvonne man in hong kong. thanks so much for joining us. in the face off with coronavirus, china is redoubling efforts to shore up growth. on tuesday the finance ministry set out new quotas for fundraising. david ingles has details. david, how much are we talking about, a

for instance, the stock markets will open in shanghai shenzhen and shenzhen down south tomorrow, they the first time since the new year break. the central bank will inject up to $175 trillion, meant to send a message of stability. it will be interesting to see what investors do tomorrow as a gauge of their sentiment about how they think the chinese government has dealt with it and where they think this is going as well. robin brant with the latest from shanghai. the prime minister is expected to say that he will not accept alignment with eu rules when post—brexit trade negotiations get under way next month. borisjohnson and the eu's chief negotiator, michel barnier, are due to set out what they hope to achieve from talks tomorrow. the two sides have until the end of the year to agree to a deal. well, the prime minister is thought to be prepared to accept a ca nada—style arrangement. canada's free—trade deal with the eu is known as the comprehensive economic and trade agreement and it took seven years to negotiate. most, but not all, of the agreement is in force. but what does it do? t

what they're calling it, or even panicked triggered by the herd effect this was the closing picture shenzhen down by more than 8%. the hong kong market moving higher up by 0.2 of 1% the likes of japan down more than 1%. australia, down by 1.3%. singapore off by 1.2%. the kospi recovered some declines and closed flat it's all about china and the eye-watering moves we saw in markets, down by 7.75% at the close of trade back over to you. >> absolutely, matt. we're seeing knock-on effects in some of the european sectors that have exposure to china as well let me talk you through what we're seeing in europe starting with some of the miners and a lot of those are actually based in the uk and ftse 100 a bit of a mixed bag we see glencore down 1%. luxury names very much in focus. lvmh down 0.4% no surprise there that the luxury stocks are also getting hit on back of the moves, both in china and hang congreong kong today we're seeing a spot of green in the travel companies, lufthansa up worth bearing in mind, even though travel has been hit, oil prices are significantly lower that is a key component.

the selloff we saw yesterday, just a handful of stocks in shenzhen.s.major ise we properly corrected or there pent-up selling to go? >> the latter. you have daily limits in china as well. the previous point you just mentioned, the conversation is shifting toward what the fundamental story is. yes, we still might have an adjustment, but on top of that, we are talking things like growth might be resolved lower as well. if you look at some of these earnings, earnings deadlines being moved back as well. the fundamental story beneath alof ts is the shifting. i mentioned valuations are actually back to the lowest level since this time last year. aings are cheap, but cheap is fluid concept at the moment. markets?bout the rates what are they telling us? >> that is a more important gauge. if you look right now, you look at things like u.s. real rates, for example, the 10 year, that is below zero. almost the purest form of signaling of getting to the bottom. things were shaky coming into this. this is sort of the last thing the global economy needed. that is th

policymakers stressed they will stabilise markets amid the coronavirus outbreak, so both the shanghai and shenzheny territory. they pumped 22 billion us dollars into the banking system, provided banks with billions of dollars to lend to effective companies, and the government relaxed tariffs on goods imported for use in the virus fight including those from the united states. china's economic growth last year came in at 6.1%, the slowest in around three decades, and economists are saying that if the virus last for a long period of time, first—quarter growth could fall to between 4% -5% growth could fall to between 4% — 5% which could have a significant impact on global growth. china's economy now plays a much larger role compared to 70 years ago when sars hit the region, then. now let's brief you on some other business stories: the boss of air asia, tony fernandes, has agreed to step aside as allegations that the airline was paid $50m by airbus are investigated. asia's biggest budget airline says it vigorously rejects claims it was paid to buy 180 planes from the european manufacturer. shares in th

matt, we're going to you first because we see so much red, and shanghai shenzhen in the center of it.you're right. we saw red throughout the rest of asia as well as other markets fell in line with what the chinese market was doing you're right, back online since the lunar new year break, which was january 23, the last day we saw trade. it was the worst single day drop for the shanghai composite since august '13 let's run you through some numbers. it's this patch of red, the shanghai composite opening down by more than 8% and barely managed to recover any of those losses throughout the day. ending down by 7.7%. you can see 229 points on the shanghai composite about 400 billion wiped off market value 2,500 stocks trading limit down. that's the 10% limit down level. the chinese central bank moving to try to allay some concerns as well saying the impact of the virus would only have a temporary impact on the economy and that the stock market plunge we saw was driven by some irrational factors or even panic triggered by the herd effect i want to show you hong kong because it managed to e ke

that in turn, as you see, shoved the shanghai and shenzhen back into the green again. one of the best proxies for the state of china's economy is copper. after dropping 14 straight sessions, look at it today. yesterday it hit a five-month low. the metal used to build out everything from telecom to skyscrapers finally enjoying an up day, seeing gains of 1.6%. let's check copper miners, names like southern copper, tech resources, all of them, nice move for freeport up 5.33%. here's yet another box to check. back here in the u.s., december factory orders increased 1.8%. that's their largest jump in one and a half years thanks to strong demand for defense aircraft. sh rank a little bit. but to earnings, 30% of s&p 500 companies have reported results so far. of those names, 70% have beat profit estimates. to our floor show traders, as good news abounds, gentlemen, knowing this is a headline-driven market, do you believe today or last friday when the dow was hammered and dropped 600 points? john? >> this market is what have you done for me lately. every day, it's whatever he

products like the iphone and ipad are made in shenzhen and hengyang.area where the virus has broken out, but most are produced from wuhan and it could affect shipments. >>> meantime marijuana dispensaries in illinois sold nearly $40 million legal weed sold. illinois residents purchased more than $30 million worth of pot in january. visitors' sales totaled more than $8 million. recreational pot sales became legal in illinois on january 1st. >>> and a "hamilton" movie is coming to theaters with the original broadway cast. disney and the play's creator, lin-manuel miranda, announced the film will be released october 15th, 2021. it was shot at the richard rogers theater in new york city. it shows the hip-hop biography of founding father alexander hamilton. it opened on broadway in 2015 and has since earned 11 tony awards. laura? >> i'm sure people are excited for that. how are they ever going to top the broadway show? >> i know, right? a tough act to follow. i've seen the teaser -- looks fantastic. i cannot wait to see it. >> i'll have to check it out. dia

scuffles breakouts outside a courthouse in the northern chinese city of shenzhen stalin's former co-foundthe one true and jones trial gets underway and. he's been held without access to his family or lawyers for more than 3 years. the call. court hands him a 4 and a half year sentence for subversion he is one of the few people that have refused to make a 4 c.v. confession he would choose to be tortured to death before submitting to something that he know isn't wrong like making a forced to the confession admitting some kind of crime but he doesn't consider a crime. others swept up in the 709 crackdown appear to have buckled under pressure though. in august 2 10161 of china's most celebrated human rights lawyers appeared in at least 2 separate t.v. reports. wang you said she was rejecting an award conferred on her by the american bar association. as. long you has since made clear she agreed to the so-called interviews for the sake of her son. the teenager was attempting to flee china when he was stopped at a border town in myanmar his father long jones says chinese authorities used him as

the shenzhen looking flat right now. index offeavy price two thirds of 1%.e news on the tech front as well, alibaba said to be blocked from the hong kong stock linked to chana. -- to china. this is according to people familiar with the matter. we are seeing shares of alibaba declining a little at the moment. let's get over to david ingles in hong kong. in terms of that news on alibaba, what more do we know? we need to clarify and take a step back. before alibaba listed in hong arrangementt of the to connect the two stock exchanges to make it simple between hong kong on the mainland, there were certain exclusions stock in terms of access. listings,h secondary and the story we wrote a couple of minutes ago is that if you had hope that alibaba would get exempted from those rules, you are being told that at present , ore is no plan to include to exclude alibaba, if that makes sense, to the rules in place will look for the listing was taking place be looking at alibaba, if we get back to the session low, we are coming back a little bit. were at about one hong kon

the shenzhen composite with a pull back. shanghai co shangh shanghai composite down. in korea falling over 2,000 putting it at a six-month low as the number of cases in korea or outside of china jumping more than the number of cases confirmed in china that sending jitters through the asian market hong kong market, we are at correction territory, down about 2.5% on the day. 26,129 all in latest reaction to the coronavirus outbreak i got a chance to sit down with the secretary today and asked him whether or not the losses in the market is an overreaction. this is what he had to say >> the outbreak of the coronavirus caught everybody by surprise initially in china but now the situation in china seem to have been contained but somehow this spread, so going forward in terms of supply chain and consumer spending may be affected. in hong kong, we have been trying very hard to fight this disease. our economy has been hard hit. that's why there have been measures to stimulate and relief the burden on our people >> you released the budget it will take a few months for the appli

sight located only a couple hundred miles from the epicenter in wuhan another important plant in shenzhen is coming back on line to a key consumer for the company operating 42 stores there. those stores account for about 10% of greater china revenue beyond apple, what does this mean for semis analysts estimate that china is responsible for 30% of chip sales and perhaps 30% of semiconsumption. >>> let's bring in the vice president for mobility at the technology markets from canalys. thank you for being with us from hong kong. first, if you could outline what is happening right now in terms of tech related factory closures and then in the tier one cities? >> caller: the outbreak has forced government to put very strict restrictions. the businesses somehow seem to work they are putting a lot of different rules across different province insome province, the outbreak is more serious. we are working on much more and it makes it difficult to predict how fast the factories in different province will be able to get all their workers back to the factory and resume the production >> you have made so

you saw the second largest inflows since the inception of shanghai and shenzhen in 2016.did get some bargain hunters going back into the margaret. 2.6 -- into the market. the other thing i want to point out as well is perhaps the signal that we got out of pboc today with a stronger side of 7. so, perhaps both supportive of -- it could change, of course. haslinda: dave ingles in hong kong. a headline here. the back ofeo on the probe on air asia. this is bloomberg. ♪ in hong kong, i'm su keenan with the first word headlines. we are told officials in china are hoping the u.s. will agree to some flexibility on its phase one trade pledges as beijing struggles with the coronavirus. consultation if some unforeseen event delays deal terms. casestal number of surpassing 20,000. carrie lam meanwhile says the closure of some border points would not affect the flow of goods into the city and that the government will source applies .lobally hong kong is closing some points of entry from midnight tuesday but leaving three major border crossings open. an investigation involving airbus a

the european commission said it will not consider closures in the shenzhen zone. >> the italian minister said it may call for leeway from the eu. it has raised concerns that italy could end up with a technical recession. >> let's look at the italy 10-year spread early on in the session, we saw that the german 10-year tighten and widen out with a new high. investors clearly trying to weigh the risk profile that spread is going to keep an eye on as the day progresses >> claudia joins us on the line. what is this doing to italian stocks this morning? >> good morning. the towns in this called red zone continued to remain quarantined. it is hoped that the outbreak will be contained. it is 50,000 people, 10 kilometer radius the other regions account for about 15 million citizens within those areas. those measures that are put into place are requesting people to be aware schools have been canceled, universities, any public place must be closed from 6:00 in the evening to 6:00 in the morning people that need to go to work that can go to work are being pushed to avoid to go to places where they c

shenzhen is tech heavy is seeing an increase. hang seng up 2.6%. seeing recovery there too. stocks doing well are consumer stocks there has been reports of scramble in super markets. one of the reason those are rebounding nicely today. the theme is positive in asia and the handover has been positive >> reaction pours in look at yum china with shares slipping 2.9%. in its release, the company said it closed hmore than 30% of the stores in mainland china bringing down sales 40 to 50%. and states it may experience operating losses for 2020 as a result of the virus. >> ackman sold his last shares of starbucks two years after announcing his $900 million stake. they have closed 2,000 locations in china amid the coronavirus outbreak >> mattress maker casper reduced at $12 a share original range was $17 to $19 a share. the company plans to list on the stock exchange on cspr they have been facing scrutiny for its high costs >>> we'll get back to that back to the market, our guest, chief investment officer dan, thank you for being here. i wake up and wonder, are we going to worry abou

this is the apple supplier that started making surgical masks in shenzhen general motors as well along with chinese partners have set up 14 production lines with a goal of manufacturing 1.7 million masks a day. all of this as president xi jinping has been declaring this a people's war against the virus. a lot of manufacturers are under pressure to ease the shortage but also to make sure they have enough masks for their workers so they can continue to make what they always make. burberry said its demand in greater china has been affected. 24 out of 64 stores in mainland china is closed. foot traffic is looking really low in some stores that were open with stores with limited hours. the company said as of now, the spending looks as though it is holding up they expect that to change now that so many companies have put in restrictions from chinese nationals from spreading >> parent companies of names like coach, michael kors giving outnumbers too burberry doing the same there. thank you for continuing to follow this one for us >>> when we come back, can wall street make it five in a row th

stocks in shenzhen looking flat. ext index looking flat. the supply chain in china. haslinda: let's get more with david ingles in hong kong. any specific moves in the market today? we are looking at how china is on a roller coaster ride. david: really has been. i want to pick up where paul left off, sort of the tech play in chinese markets. it is twofold. you have a lot of the services that are seeing a spike in demand laying out across these markets. pushing 80 in hong kong, a lot of the retailers, department stores listed on the mainland offering online deliveries and seeing pressure. that is a positive sign. the other signs of the disruption taking place. a lot of heavy pressure today. [indiscernible] it is giving the market a reason to avoid the stoxx altogether. stockng up a lot of the s, the supply chain disruption. it will be interesting to see how the letter part manages, especially from a cash flow standpoint. paul: we have reports that macau casinos might be cutting dividends. david: it is a note out of jeffries, they are essentia

daryn there are plenty of people who live in hong kong but cross the border every day to the city of shenzhen where they work and then come back again in the evening on sunday up to 100000 people went backwards and forwards across this border most of them were hong kong chinese citizens we also have to remember of course but hong kong is is reliant on the mainland for things like vegetables and milk that has to be trucked in every day so there are practical reasons also says the chief executive for making sure that the front here in parts remains open and they join is day 2 of that medical workers strike with doctors and nurses expected to join tell us what's been happening. well there is a protest taking place at the moment outside the hospital authority which is responsible for more than 40 of hong kong's public hospitals the strike appears to be gaining momentum on monday around about 2 and a half 1000 doctors and nurses decided to stay home not to work that meant that a number of operations had to be cancelled including cancer patients now it seems that more doctors and nurses have joined

the shanghai and shenzhen. stand by for the china open. ♪ ♪ whether you're out here on lte or here on a wifi hotspot. xfinity mobile has more coverage to keep you connected to what matters most. that's because it's the only wireless network that automatically connects you to millions of secure wifi hotspots and the best lte everywhere else. save up to $400 a year when you switch. plus, save even more with $100 off galaxy a50. click, call or visit a store today. is 8:00 p.m. sunday here in new york. welcome to bloomberg markets china open. down tohere counting the reopen of trade in the chinese mainland. these are our top stories. investors are bracing for a selloff at the end of the extended break. the yuan will also be under extra pressure. shery: beijing pleasures -- pledges support. dozens more deaths and 2000 new cases in the past 24 hours. haidi: one other major story we are following, the u.s. election. the democrats prepared to face voters for the first time. we will have the latest live in des moin

shenzhen company -- a law was introduced in china three years ago that compels the company to assistednment with sabotage efforts. the european union -- of internaloner marketing services is expected to unveil similar guidelines as the decision in britain. taylor: that was alex webb. the new rival of tictoc has emerged and its predecessor is no stranger to fans of the video sharing apps. it was created by dan hoffman who cofounded vine in 2012 and sold it to twitter later that year. vine rocketed to the top -- bloombergo our opinion columnist in new york. >> that is the thing with the vine. it was only -- twitter took it over and try to run it but it never quite worked out. one of the reasons it is considered that vine was shut down was because they could not monetize it. the people running vine at that time were opposed to running branding ads, so it died a slow painful death, but is still really strong in people's hearts and minds. people have a certain amount of nostalgia for vine. dan hoffman originally called it v2 when it was in alpha mode last year. now it has hit the street so

producers of aircraft in shenzhen have stopped. producer of iphones, has said it is going to quarantine all of its returning workers for 14 days. the impacts are being felt. you've got the likes of economists at moody's, fitch, bloomberg economics throwing out their forecasts on the impact you, growth -- impact to economic growth. everyone weighing in on how significantly this is going to weigh on the growth. guy: we've already seen liquidity being injected. that is having an effect globally. what more can we expect from the pboc? rates are-day repo low in china already. further liquidity injections are likely, but it is the targeted measures we heard the bb of seat -- we heard the pboc stressing that will be continue to be ramped up. we've seen measures to cut taxes , to relieve the burdens on those companies. we can expect potentially more of those kinds of measures. it just makes it that much more difficult for policymakers here who have been determined to continue this deleveraging campaign amidst the trade war. the trade tensi

domestically, major cities like putting in shenzhen place restrictions on households in terms of theiras well. clearly, the economic damage continues to grind on as these closures continue. toyota is continuing to close their plant, extending that for a week. on the retail front, the damage continues. you saw that from burberry, and in refining of oil and chemicals, down by about 15%. the forecastaying for growth in china is going to be cut from 5.7% to 5%. as this virus continues and the numbers continue to take up, the economic impact continues to grind out here. guy: the doctor that rose the alarm on coronavirus has died, causing considerable alarm in china. how problematic is that for the regime in beijing? tom: i can't renumber the last time where a case like this galvanized the people of china with such anger. you're seeing it across social media. i only need to pick up my we chat app to see millions of people posting about this. you are right, he was the whistleblower. he flagged that there was a sars like virus back in december, and police responded by admonishing him and label

the shanghai down by 7% and shenzhen down by 8%. we'll start with matt taylor in singapore on this selloff. matt, good morning. >> good morning to you remember, it was january 23, the last day we saw mainland china markets and the shanghai composite having its biggest one-day decline since august 2015 the biggest one-day decline we've seen after a lunar new year holiday in 13 years it barely managed to recover any losses ending down 7.7%, wiping off about $420 billion of market value. around 2,500 stocks trading limit down of 10% as well. the chinese central bank moving to allay some concerns saying the selloff perhaps might have been a little overdone also saying the impact from th virus will only have a temporary impact on the economy. the stock market plunge, they say, was driven by some irrational factors or even panic triggered by the so-called herd effect, is what authorities were saying authorities moving to pump in a lot of liquidity to support the market and the pboc injecting around 174 billion into the financial markets a

we are seeing more measures being tightened around cities like shenzhen.itika: still ahead as we review week on "bloomberg best ," more on the global economic impact of coronavirus. -- the eu will have a fiscal response if the crisis drags out, plus, terra firma's strategy now that brexit is a reality. >> we are being careful when it comes to certain types of real estate assets. ritika: next, highlights from another whirlwind week of robert earnings reports. >> we are expecting strong cash flow in 2020 building up from 2019. ritika: this is bloomberg. ♪ ♪ ritika: this is "bloomberg best ." another busy week for corporate earnings reports. let's review the most interesting results. >> b.n.p. paribas kept pace with gains, even outpaced the gains of wall street rivals in the fourth quarter. the french bank posted in nearly -- posted a nearly 63% jump in fixed-income trading revenue after a rebound in rates and 4x activity. >> it too clocked in solid results, up 5% on the back of continued commercial drive but in the other two polls and delivery of the transfo

couple hundred miles from the center of the outbreak in wuhan, and another important foxconn plant in shenzhen is coming online, too china is a key consumer market for the company. beyond apple what does this virus mean for semis that's another question for investors, it depends on the length and breadth of the outbreak, but analysts expect china is responsible for 35% of chip sales and 30% of semicon sum shun kel kelly, back to you >> thanks, josh. josh lipton. >>> i'm joined now by dr. ian lipkin it's great to see you. i know you worked with the chinese government and the w.h.o. during the 2003 sars outbreak and you're under self quarantine now because you got back from china last week. what did you see on the ground you couldn't even get to the epicenter of this, could you >> no, if i had gone to wuhan, it would have been much more difficult to get out i was in guangzhou and beijing but in meetings with people from the national cdc, the guangzhou cdc, scientists from all over the country who i met in guangzhou and beijing. the cities are deserted. all the stores are closed. it's daunting ju

and industry following that that extended lunar new year holiday sources say foxconn's factory in shenzhenter chinese authorities rejected its request to resume operations foxconn, a key manufacturer in the supply chain for apple so, is the economic impact not just on china but the world perhaps being understated if the technology and industrial supply chain cannot get back up to speed in a short amount of time? >> right that's the question. what are we talking about? i think the status quo has a dramatic rebound by march. we know february was probably worse than expected and getting back to either estimates of the global economy, the supply chain we know we have significant disruption for february. the timeline i would say stocks have priced that in. in other words, they basically shrugged and said, we don't see a long-term impact if you look at the performance of semiconductors, if you look at the -- you can see it's been sympathetic on kind of the headline days. for the most part, we haven't seen the kind of correction that tells you people think this is anything more than a hiccup. if

easing curbs as well as policy hopes chinese government talking about infrastructure helping the shenzhen ended 2% higher hong kong up 2,890 for the hong kong markets we saw profit taking, 274,134 businesses started returning back to factories and offices after the lunar new year break was pushed out by ten days in a bid to control the coronavirus outbreak the epidemic has killed more than 900 people and the total number of confirmed cases in excess of 40,000 a large number of workplaces, though, still remain closed and many are working from home the state council says workers in key industries must be helped to return to work as soon as possible in order to resume the production ofvital food and medical supplies and adding workers should return in batches and not all at once in order to help control any spread of the coronavirus and infection risk extended closures of factories have raised concern about the global supply change at the world's largest manufacturer of electronics reportedly receiving government approval to resume production at one of its plants today. the company says it w

tell -- foxconn we know they told some of their employees not to return to their headquarters in shenzhen. thatt is not surprising they are struggling to get into the factories. in terms of those store closures, they did reopen apple stores. i went into one. that was the busiest store in that mall but the footprint was still lower than it would be on a normal day because people here are still concerned about going out. more broadly, we have seen a survey out of the american chambers of commerce in shanghai. they have been talking to members, manufacturers. they say 80% of them don't have enough workers to be back at full capacity. that dovetails with what bloomberg economics has been saying, saying the economy was capacitying at 40, 50% last week. the latest median survey that thesuggests , down fromwth number the previous survey of 5.9%. yvonne: in hong kong -- paul: it hong kong, not only the coronavirus but also months of clinical protest before that. we are bracing for some pretty grim employment numbers. yvonne: we have seen four straight months of increases, the longest stretch we h

we saw green on the screen for the shenzhen market.kong down by 1.8% dom, back to you. >> thank you for the latest on the asian trade. let's go to julianna tatelbaum for a look at how the early trading in europe is shaping up. that same red and negative theme is carrying out there as well. >> it certainly is, dom. european markets are firmly in risk-off mode this morning every major region, every sector trading below the flat line. the dax, the german benchmark down 3.6%. the underperformer this morning, italy, the ftse mib down more than half a percent. this spike in cases in northern italy has prompted a series of quarantine measures from the italian authorities. school closures, university closures, business closures and airlines taking a substantial hit this morning as flight cancellations come through for the italian region investors in europe very firmly reassessing their strategy when it comes to the coronavirus implications and taking risk off the table. i want to give you a look at the sector because it's interesting to see th

take a look at the shenzhen sta startup closing 4% higher at the end of the day the market is riding on whispers about further, you know, action of easing by the pboc. in fact, this thursday we're going to see what kind of decision they make in terms of the loan prime rate as well. i think that can be a further leg up before the greater china markets, at least until thursday we were talking about shanghai composite, for example, a higher by more than 2% or so for the day. all sectors are in the money led by all these cyclicals, including autos and technology, very much broad-based gains and this puts the index into pre-coronavirus outbreak levels. pretty meaningful, i would say i do want to talk about the hang seng index because pretty much a standout laggard in the china region today all sectors were higher on the day. we did see moderate gains of 0.5%, but not to the level that we saw in terms of the mainland chinese. this comes as the national secretary of hong kong was, you know, warning of a record level of budget deficits for the next fiscal year. in fact, a lot of, you know, h

shanghai, shenzhen opening down very, very sharply and still languishing around those levels.are seeing reaction one week of closures in these markets and they're playing catch up to that. but it's not just the equity markets that are responding like this. we've seen a sell-off across the board. take a look at commodities. iron ore, copper, crude oil all down very sharply in asian trading. and on top of that you're seeing a reaction in yields as well. i think the big litmus test is going to be how wall street opens because what's down already on friday, they've had all this time to digest it and see whether or not these new cases of the coronavirus are going to wreak havoc on that market again when it opens later on today. the central bank of china, in times like this, central banks are worried that rates are going to spike. they flood the money markets with cash. that's exactly what they did today to try and stem this flow. this injection, what they call of liquidity is the biggest we've seen by the people's bank of china since 2004. that's the market reaction. i think the lo

this is the first time trading is happening in shanghai and shenzhen since january 24th. shanghai market closed an hour ago. it is down 7.8%. that is a huge sell off. it opened down more than 9% with hundreds of shares going limit down. but it's not just the equity markets in china. we are seeing commodity prices, like oil, iron ore, steel, all of these things, excuse me, plummet as trade resumed after the lunar new year holiday. you're seeing ten year government bonds in china also move sharply lower. in response to this, the central bank of china pumped in a lot of liquidity into the short-term money markets to try and prevent a spike in interest rates. this is customary for all central banks in a time of crisis like this. the litmus test, excuse me, will be to see how wall street opens. it already had a really bad week last week. worst week in six weeks. so that reopen will be closely scrutinized. diplomacy aside, if the factories don't reopen on the 10th in some parts of these areas and the 14th in areas like wuhan, these are the two dates we have now, this is going t

operations in shenzhen will restart on tuesday. a fourth plant will start next week.o plans to renew china operations in coming days. >> has of las vegas plans for an electric car dashed has loved -- cara's transport electric went in berlin is under threat. there is a challenge by environmentalists. the decision is expected in coming days. >> coming up next, the man who wrote the book on china's government -- richard mcgivern -- richard mcgregor. this is bloomberg. ♪ [ fast-paced drumming ] [ fast-paced drumming ] this is bloomberg markets. the number of coronavirus cases has passed 70,000 people. this is the fourth death outside of -- this as the fourth death outside of mainland china was reported over the weekend. the number of coronavirusa taxiy had carried three passengers who were returning to the country from china, hong kong, and macau. among thosef cases on the diamond princess cruise liner has soared, with 40 americans on board confirmed infected. boardyear-old american on another cruise ship has tested positive for the coronavirus, fanning fears that thousan

was denying it was a mainland china problem, denying it had gone beyond the original outbreak in shenzhend covered up the existence of the virus in beijing where it was being handled secretly by the military. cases were being put in military hospitals. when they finally had to admit, yes, we had a problem, people fled, and i was there as an eyewitness. they fled by the tens of thousands from beijing by every means possible. overnight, it was an all nation epidemic. the only way to conontrol it was to say everybody get your fever chchecked at every highway poin, every entry. amy: 10 seconds. laurie: they are now replicating the same thing. building hospitals, barricading a blocking city sent transport. amy: and part two, democracynow.org, what can people do about it?

from the epicenter of the outbreak in wuhan, and reuters now says that another foxconn plant in shenzhen is coming back online, too. set to resume partial production but will apple be able to make enough phones given the challenges to meet demand. some analysts think the company abo will ship 10% fewer phones in q1 could this disrupt plans of that low-cost phone expected next month. >>> china is also a key consumer market for the company apple operates 42 stores there the company has extended store closures they say the online store remains open the situation is very fluid. that's why apple issued that wide and expected q2 guidance. back to you. >> i have a question for you, josh can you hear me? >> yep. >> so how much inventory do you think they have? how much cushion do they have for this production slowdown >> that's a great question that's probably going to depend vendor by vendor i think it sort of gets to the broader question though. it's hard to gauge for analysts and investors because you are trying to decide the length and breadth of this, therefore, how much of an impact it has

$100000.00 hong kong people who have been commuting every day across the border into the nearby city of shenzhen and of course that's raising fears over over jobs at a very difficult time for hong kong now carol lam has effectively now sealed the front here with the mainland because anyone coming into hong kong is not going to go into isolation for 14 days but she is going to enforce this new measure on saturday to give all those people time as i say to prepare adrian brown live in hong kong thank you very much indeed well al-jazeera scott. sideline has been speaking to one particular family from shanghai they're currently stuck in and because they're not able to leave let's hear what he found out. trying to make the best of the lockdown. and his family travel to hahn for them or new year even once the coronavirus locked down and they were face an additional 14 day quarantine when they get back home to shanghai like millions of other chinese across the country the children might be smiling but the adults are very concerned. how you feel what do what do you want to tell people out there how you f

it is interesting that the italians are not asking for any suspension of the shenzhen rules. -- schengencan fiscal stimulus do anything to affect the coronavirus? servicesot support the for the economy that much. is there a sense that fiscal policy cannot do enough in this situation? janet: i think people are going to be more concerned about their health and safety at the foremost. pushiscal stimulus could some things if the companies are really struggling. the government can help them which should help with sustaining the employment situation which is crucial to the services center. -- services sector. there is a limit to what the fiscal stimulus can do. be hits to confidence will too severe for people to spend comfortably. anna: we are already seeing that. janet, thank you so much for your thoughts so far. janet mui from casimir capital will stay with us. italy is the epicenter of the coronavirus in europe causing the cancellation of several events including carnival. we are live in rome up next. european futures are points lower. there is a particular focus in italy. -- in ftse nets f

the measures will leave three border crossings open, shenzhen, the jew hybrids in the airport. increasing economic impact abroad. duty-free sales in japan slumped over new year. several leading operators say sales fell in the double digits compared to the holiday period last year as chinese visitors .tayed away chinese tourist make up one third of arrivals on more than that in consumer spending. a bribery investigation involving airbus and airasia has triggered the follow the airline groups founder and ceo. tony fernandez is stepping down for two months along with the airline's chairman while the malaysian government accepted bribes. both men deny any wrongdoing. -- airbus reached a settlement. 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. mitchell.a this is bloomberg. for that reporting fourth-quarter earnings and revenue from that key holiday quarter missed a holiday estimates suggesting the company's google advertising business is struggling to maintain growth in the face of rising

shenzhen higher by two thirds of 1%. 1/5. the death toll from the coronavirus now at 1,115.sanders is leading the new hampshire primary. chief washington correspondent kevin cirilli joins us. going inton the lead the primary, but he is in fifth place now. kevin: senator bernie sanders maintaining his lead. pete buttigieg is cutting into that lead. it appears that those two are dominating the pack in early results. senator amy klobuchar picking up third-place consistently through the night, still nearly doubling the turnout of senator elizabeth warren and former vice president joe biden. biden trailing senator warren. both biden and warren have addressed supporters, but biden speaking from south carolina. his campaign saying he is going to be committed to rallying his ,upporters in south carolina and upcoming caucus primary state and that he has prepared to continue on through super tuesday. senator amy klobuchar talking to her supporters, saying she is confident with her showing tonight. she beat expectations in will take message to donors. she is expanding upcoming primarie

trading in shenzhen trending to the upside.hina trading higher by 1.25% as the coronavirus came down after yesterday's spike in numbers. this is bloomberg. ♪ su: i'm su keenan the first word headlines. we start with the trumpet ministration, raising doubts about the way china is handling the coronavirus outbreak, larry kudlow transport -- questioned the transparency and the account of new cases and deaths, both of which that changed after the way china diagnosed the virus. health officials have not been allowed to study the outbreak despite offering and experts for several weeks. alibaba's u.s. shares fell after it warmed the coronavirus will hurt revenue growth in the current quarter. alibaba says the outbreak is undermining production and changing consumer spending patterns. the chinese e-commerce giant made the comments after reporting strong financial results. 37%,ue surged better than $21 billion, while income rose 58%. the coronavirus is threatening the biggest hit on japan's economy since 2014. economists are protecting

reuters says another foxconn plant in shenzhen is coming back online remember apple operates 42 stores there the company has extended store closures, and apple says its online store does remain open. the situation remains fluid, which is exactly why apple issued wider than expected q2 guidance. >> josh, thank you. >>> farce it relates to the supply chain and stock performance on apple, is there anything that investors should be wary of or should you just assume it's going to make up for lost opportunity. >> i do think it will come back, but i think the near-term impact, i have to question, what investors, how they're going to react not just to apple, but when we hit the first and second month of weak data, then i think we might have an issue >> following up on sara's questions send kind of a throwaway quarter? >> yes, i think so by the way, analysts have been cutting earnings estimates for the first quarter pretty sharply, looking for just under 1% earnings growth so i think investors are planning to look past that the question is when the real numbers come in, how will they act? >> fo

we are talking about the shanghai composite, the shenzhen index seeing the biggest -- second biggest drop on record taking a hit after the biggest rally after the coronavirus outbreak. haidi: the commodities benchmark also take a huge hit, dropping by the day. is the biggesta consumer of raw material, not looking good at all for the markets. 3.5 trillion dollars have been wiped out from the global markets in just two weeks and the pain continues. shery: it seems to be that everyone we speak to talks about when this will end since we have no real expectation of when the outbreak could peak. this is really concerning all market participants. let's get straight to the action and david in hong kong. sarah.start with you, this is really a bad picture across equity markets in asia. it's interesting to see the contrast with u.s. futures. reporter: it's pretty unbelievable, and not even just u.s. futures. the hong kong hang seng as well. the china picture is very ugly, but i should add they were already paring much of the loss we had seen. 9% csi 300 down more than and down less than 7% stil

yeteu has not restricted shenzhen area travel. theirn and iraq reporting first infections. in china, the government has decided to post pone annual legislative meetings scheduled for march, not such a big surprise as they want to limit transmission risk. the wuhan province has walked back an earlier statement, now it is keeping warranty measures. beijing is pushing for more companies to restart operations, but that comes with the risk of higher transmission potentially. the national health commission in china confirming that more than 3000 medical staff have been infected on the mainland. ital word on south korea, has confirmed the most cases outside of china, topping 760, so the government has raised the threatened bubble to read -- the threat level to read, last used -- threat level two red, last used during the crisis of h1n1. economic recovery could be derailed by this outbreak. the central bank will cut rates at its annual meeting this thursday, and ahead of that, the cost be sliding -- the cost be ospi sliding. alix: thank you for that. president trump in injury a --