joining us is tom mackenzie. what does it actually mean? this is the u.s. going quite hard on china. tom: that's absolutely right. as tom was touching on earlier, a special trading status has been carved out for hong kong freedomsf the special that the city has had in the business freedoms they have had. the restrictions on exports of certain technologies, for example, none of those apply to hong kong. that now potentially will change because mike pompeo came out and said to congress we cannot certify that there is a high level of autonomy for hong kong. that was spurred by this move of beijing to circumvent the hong kong government that puts in place a security law that has been voted through. it is not enshrined in law yet, but it is a major step that will inevitably be enshrined in law. we are waiting to see if by the end of the week the u.s. will , or, and willns china respond in kind? targeting u.s.t companies here? we could be back into this tit-for-tat cycle. but the historical framing of this is important. francine: we were just listening to the prem

joining us from beijing is tom mackenzie. tom, how has china reacted to the u.s.ion to does it --s to dispute this resolute decision to dispute this resolution? tom: the chinese response to what we heard from mike pompeo, his address to congress, as you say, the trump administration now saying hong kong no longer has a high degree of autonomy from china, the response has , essentially, chinese officials saying this is an internal matter. they say the security law is necessary. the security law prompted this action from mike pompeo to downgrade the status of hong kong in terms of its trading relationship with the u.s., at least in terms of his views on it. the chinese have said this is security law is not going to affect the people's freedoms or the freedoms of foreign investors in the city, but that is unlikely to persuade the u.s. administration. they have made a fundamental shift. from 1992, they carved off a special place for hong kong in terms of trading rights. hong kong does not have the tariffs imposed on it that mainland china has, for example, or the exem

tom mackenzie, thank you for bringing us more detail. does not have a lot of market impact. we have seen the yuan fall to relatively low levels, but it is understandable if investors are selling risk assets on friday. maybe you do not want to go into the weekend owning risk assets with this hanging over your head. help. up, the eu vows to the vice president says businesses should not face unnecessary hurdles. we will discuss strategy in europe next. this is bloomberg. ♪ >> we had a pretty strong financial seat, balance sheet preparing for something like 9/11. we think this is worse. >> we think in june there will be more demand for flying than may. >> we will not be at 100%. ,> if travel demand is lower there could be consolidation. >> the priority is on rescuing the airlines. we have been hit by this pandemic. keep telling who everybody to obey the rules -- >> the worry here is the un-leveling of the playing field. >> overall it will take years for traffic to recover. anna: that was a taste of what we can hear over the weekend. a special

tom mackenzie joins us in beijing.inued hits keep coming with this news of another city coming under lockdown in china. proposing? pboc is always a balancing act between needing to shore up the economy admits this hit from the virus while ensuring they do not reinflate financial risks which remain a big concern to policymakers. the top takeaway seems to me we should be expecting the pboc to step up. we are talking about central banks and monetary policy. a report released on sunday. the pboc would pay more attention to economic growth and jobs. whenhas been a key focus it comes to the question of stability. they are saying they expect the global impact to continue to reverberate in china from the shutdown. even though things are gradually getting back to prudent monetary policy has to be more flexible. liquidity will be kept at a reasonable level. what they did not talk about was the drop in this report was the previous pledge to avoid excess liquidity flooding the system. to suggest the pboc is trying to give itself m

haslinda: tom mackenzie in beijing. let's get first word headlines. we have the united states is to join an international organization that advises on artificial intelligence, becoming the last of the g7 nations to sign on. provides recommendations on ai that respects i will see and civil liberties. -- privacy and civil liberties. washington said china has twisted values. 5.5 millionis cases. new york remains the worst hit state with the governor calling for federal funds to alleviate the economic fallout. new york city mayor bill de blasio says this is worst than -- overall goldman sachs is warning investors to sell for a bumpy ride as economy start to emerge. john bolton says there could be volatility as governments pullback and a potential new wave of infections. lendersrisk will market may mask out -- miss out. estate return to remand -- face flight has stalled out because of bad weather. nasa pulls the plug on the mission which would have been the first launch of astronauts from u.s. soil since the shuttle was retired a decade ago. spacex will tr

tom mackenzie in beijing with the latest.asia, hong kong's hang seng index given one of the biggest rebounds in its history, opening the door to alibaba and others. the secondary listing has been long awaited. we explore the implications. this is bloomberg. ♪ index willhang seng allow it to incorporate chinese internet giants such as alibaba. a move to shake up the index. one currently dominated by financial services and conglomerates. joining us is investment head of research banny lam. give us your initial reaction. how significant is this for the hong kong capital market? banny: it is quite positive for the hong kong capital market. economy stocks have a high valuations and growth. these companies entering the index will enhance growth momentum, the whole index. that will not only increase their market cap, it will increase investments. overall, everything is positive. in the future you will see more like ipo's in hong kong. going exactly, that was to be my next question. could that flood local share sales by u.s.-assisted

tom mackenzie is watching all of this. is a momentous decision that has already seen widespread reaction. tom: that is right. the secretary of state, mike pompeo, was compelled to review hong kong status under this hong kong human rights bill was passed by the congress last year and signed off by president trump. the conclusion is that no reasonable person, as he says, can content that hong kong enjoys autonomy from china. he says hong kong does not warrant treatment under u.s. laws in the same manner as before 1997, one hong kong was handed back to mainland china from the united kingdom. it now turns to what actions the u.s. may take to enforce this decision. some actions being weighed out include things like sanctions on chinese officials, particularly visa restrictions as well. other options include potential tariffs, maybe investment restrictions. those seem less likely because the balancing act for u.s. officials is trying to punish china rather than the people of hong kong. they could, of course, revoke the special t

rishaad: we're going to get straight over to beijing and join tom mackenzie who is on location. in --g vacant is china how significant is china in dropping the numerical gdp target? tom: of course, overshadowing the national people's congress has been the impact of the coronavirus on china's economy. a more toxic relationship between beijing and washington. the economic impact front and center. we saw first quarter gdp contract 6.8%. most economists think you are not going to get above 2% growth for 2020. no big surprise china dropped its gdp target. it is the first time they have done this since 1994. they have not wanted to straitjacket themselves into setting themselves in artificially high target. there is a question as to what extent policymakers will read into this. it has been that gdp target in the years previously, something of an anchor for china's policymaking. it ties into how much fiscal and monetary support we will see from china. we got some lines on that from the premier. you're looking at sovereign bonds issuance of about a trillion yuan. that is about 140 trilli

our bloomberg markets coanchor, tom mackenzie. china and their handling of the virus in the early period, are they fending off the criticism? tom: it is possible that commitment to make any progress on the vaccine global, public, and agree intensively to an investigation of sorts might go some way to dilute the criticism that china has faced. we have five vaccine candidates that are already in human trials here in china, so a lot of progress there. of course, there is some competition between china, u.k., and the u.s. as to who will be first with a vaccine, but again, president xi said it would be made globally available, any vaccine produced in china. he also committed to providing another $2 billion over two who, with the trump administration having cut off funding, and again the trump administration taking a very hard line at what happens at the who, pushing for reform of that organization. again, to what extent xi agrees to this investigation, we will see if china signs off on the investigation later today at the assembly, whic

tom mackenzie has been following the latest on the national people's congress. eat to have you with us, thanks for joining us. how has china reacted to the u.s. decision? tom: this is a potentially major moment because for the last couple of decades, since 1992, the u.s. has managed to carve out a special trading status for hong kong. that was contingent on that city autonomous, having a high degree of autonomy. as you mentioned, mike pompeo, the secretary of state in the u.s. saying that no longer exists. they say hong kong does not have the autonomy, so that changes the dynamic. china has responded, putting out a statement today saying this is an internal matter, saying the security law that prompted the reaction from the secretary of state from the u.s. is aimed at curtailing acts of terrorism in the city and will not impact the autonomy of hong kong and not impact the freedoms of the people of hong kong. also there's the potential to change the trade relationship with hong kong, but that would have broad economic consequences for both the u.s. and china and t

nejra: tom mackenzie joins us now. great to have you with us. talk to us about navarro's claims about china seating the virus. ding the virus, and we have an update on the restrictions of huawei. is a tradevarro advisor to the trump administration, a man who has built his career on bashing china. uber the number hock -- hawk in the administration. this is a pretty incendiary accusation for him, the china "seeded" the virus. there is evidence that in the early stages of the outbreak, china covered up the disease. what we don't have publicly is any evidence that this is correct, the china did seed this virus, as peter navarro said. contextd be seen in the of this daily drumbeat against china ahead of the number -- november election, and peter navarro himself said the election would be a referendum on china. nejra: speaking of pressure come how much international pressure is china likely to come under when the who's governing body meets today? are expecting the eu and australia to push china for an investigation. they want china to agree to an inve

tom mackenzie is live for us in beijing. this already is stirring anger. tom: it is.ys 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 level of anger and concern about what this law could be used for. it would punish things like secession, and foreign interference. it could be used to interfere in hong kong's relatively free media and free speech. to reassure raising -- beijing's control over hong kong. that's a concern we heard from one opposition lawmaker in hong kong saying this would effectively be the end of hong kong and -- if this law goes into force. we are waiting for the details. it looks like this is an attempt by beijing to bypass the hong kong legislature and government to get this law enshrined on the books. how they do that in terms of the details, we are still waiting for. this is something the hong kong and failedhas tried to get written into law over number of years. they tr

bloomberg markets coanchor tom mackenzie us from beijing. this from the global times, what are they reporting? [no audio] >> we do have inflation data. tom mackenzie in beijing, let's see if we can get you connected. we were asking about where the report is coming from and what it is thing about that phase one trade deal? we will try to reestablish that connection with tom mackenzie in beijing. it has been about that china-u.s. trade tensions. haidi: yes, that's right. else thats something perhaps emerging markets does not need now, is this revival of the trade war between the u.s. and china. coming up, still ahead, s&p 500 dividends may fall short of last year and take until 2027 at best. we discussed the payout pessimism next. tesla is saying it is re-charting -- restarting production in fremont, defined county rules. we look at elon musk and his standoff of california officials. this is bloomberg. ♪ >> let's get back to china-u.s. trade tensions as we hear from state media in beijing that china may be weighing potentially avoiding the pha

our bloomberg markets how anchor, tom mackenzie, in beijing. subscribers can join bloomberg economics chief asia economist for a special q&a blog on the economic recovery at 3:00 p.m. hong kong time. you can send your questions to top live at bloomberg.net. karina mitchell has the first word headlines. karina: global coronavirus cases are approaching 5 million with reported deaths your 325,000. the world health organization has recorded the highest number of daily infections since the pandemic emerged with more than 100,000 new cases. president trump says america's gradual reopening means he may make the upcoming g7 a face-to-face event rather than a virtual discussion. brazil has posted and daily record in the virus cases. infections rose by a fraction hundred 20,000 on wednesday, confirming a country of 210 million is the world's new covid-19 hotspot. president bolsonaro told the health ministry to loosen protocols for the use of the anti-malaria drug, chloroquine, favored by president trump even though it has an unproven track record. japan

tom mackenzie joins us from beijing. this coming from the global times. ctly are they reporting? tom: it is a state backed tabloid, a nationalistic newspaper that cites advisors close to the trade talks, suggesting officials revise the 50's one trade deal -- the phase one trade deal. this after talks about the handling of the pandemic triggered anger in some of china's trade officials. it also suggested negotiating a new deal to tilt the balance more towards the chinese side. the thinking apparently is they can use provision in the deal to rework it or potentially pull it out altogether. gamesmanship from the china side. president trump said he suggested pulling out of the deal if china does not stay with the commitments. now you are hearing the tabloid the same kind of conversations are being had with officials looking at trade here. we have a conversation between lighthizer last week and that seemed to be a positive conclusion with both sides reiterating sticking to the deal and working towards the completion of phase one. in the meantime, china is conte

shery: tom mackenzie has more from beijing.hether it is on the pledge to support the who or trying to consume -- secure vaccines for the entire world, it seems that president xi jinping age trying to dry contrast with president trump. tom: absolutely. from of global outreach president xi jinping. this is a speech at the governing body of the world health organization. xi, as you heard in that soundbite, calling for greater international cooperation in fighting the pandemic. any importantly, saying vaccine developed in china would become a global public good. china currently has five vaccine candidates already in human trials and they expect more candidates moving into the trial basis in the next few weeks and months. providesaid china would $2 billion over two years to support the fight against the virus. drawing a distinction to the trump administration which is choosing -- china has come under pressure not just from the u.s. but also the eu and australia over the initial handling of the outbreak. it's relatively aggressive re

tom mackenzie joins us now from beijing. tly is this going to work, this task of testing the entire population of wuhan? tom: it is an ambitious plan. they will get all districts, which of course was the center of the original outbreak, to draw up plans for how to conduct testing of all the residents within 10 days. the plan will prioritize groups. the firstfter we saw locally transmitted infections since the lockdown was lifted in wuhan on april 8. we had six cases from the same residential compound, and the size and scope of this plan reflects china's anxiety over the second wave of infections if the economy gets back to full speed. we have seen other clusters on the china and north korea border and also on the border with russia. it points to their efforts to try and avoid the second wave as fast as possible. shery: we are getting breaking news on the bloomberg. china's province reporting six additional coronavirus cases, for may 12. this is as they announce a partial shutdown. coronavirusouncing cases. it borders russia,

tom mackenzie in beijing. word headlines with karina mitchell. >> global health services are warning of a second wave of coronavirus infections with new cases in south karina -- korea and a spike in the city where it was first reported. hashe other hand, italy reported its fewest new infection since march 4, while france, spain and greece continue to these restrictions. parts of the philippines are to remain under virus lockdown as president deter day says the nation cannot afford a second or third wave of infection. they will maintain a stay at home order. the president did not identify which areas. the manila region has been lockdown since mid-march. meanwhile, indonesia's warning about fallout from the coronavirus amid a capital exodus. says thece minister domino effect may require extra steps. japan is said to be ready to lift part of its eight of emergency as the rate of infection falls. may liftovernment restrictions in 30 prefectures. saudi arabia has announced a surprise cut in oil our pit -- output as

tom mackenzie is watching this in beijing. we have more reaction coming from policymakers in china, especially when it comes to insisting that this would only affect a very narrow category of acts when it comes to the national security law. again, another attempt. this is of course from the chinese embassy in washington to try and clarify and reassure people in hong kong and internationally that this security offer hong kong would be narrowly defined, only focused on certain acts. concern among those in hong kong, the pair democrats, and the nt beijing forces, but also internationally, is that this is a broad security law that could be used to undermine the autonomy but also to curtail free speech, free press, ngos, and a number of other issues. in terms of what we are hearing from the secretary of state, mike pompeo, he made the determination that hong kong does not, as he says, enjoy a high degree of autonomy from china. he was compelled to review the status that hong kong has because of this bill that was passed at the end

tom mackenzie. anti-china protests return to the streets as tom was saying in hong kong.oke to the councilmember earlier. for thee vice-chairman progress in hong kong. take a listen. , we sawfirst of all those violent protests yesterday as you saw from the tv. just an ordinary man was beaten up by a group of protesters. it was very cruel. this is very violent behavior. 's daycond day is people opposed to this nationalistic law. one of the reasons is perhaps they do not understand the nature of this law. actually i believe the majority of the hong kong people do not to worry or be concerned because if you are not committing crimes like terrorism or if you are not engaged in something like sedition or engaging in these seditious acts come you need not worry. it is only those that engage in crimes -- they would be concerned. areoreign investors concerned that with the new law, mucs the pullback of so depend -- so much independence. what about the argument that beijing is willing to trade hong kong station to consolidate control? disagree with that point of view. first of all

for more, let's go to beijing now, where bloomberg markets: anchor tom mackenzie is standing by with e global coronavirus wrap. bring us up to speed. tom: i will give you a wrap of the crucial moves we have seen across the world in terms of the efforts to tackle this virus. global cases have passed 3.5 million so you are looking at nearly 250,000 deaths but we have also seen, importantly, at least one million recoveries. shifting focus to the u.s., in particular, you have seen an increase in terms of cases of about 2.3%. that is lower than daily increase, the average daily increase we saw last week, so that is seen as a positive. total cases in the u.s. now, by the way, 1.1 5 million. you talked about trump raising -- 1.15 million. talk about trump raising the total. current u.s. test stand at 67,000. france reporting 130 five new cases in the past 24 hours or so. 135 newthe fewest -- cases or so in the past 24 hours. in hong kong, 14 straight days with no new infections, and in fact, the government is looking at plans to relax some of the social distancing measures and they may allow

tom mackenzie is the markets coming to. watching this surprise non-move. rious news agencies were highlighting there was no news out of the pboc. tom: there was an expectation it would roll over its part of the medium lending facility and they would cut the rates as well. the consensus, they would look at a 20 asus point cut. we did not get either of those actions. it matured. they have -- the pboc also held off on injecting liquidity with the short-term, for a 30th straight day. there seems to be a view there was inadequate liquidity and is despite the fact the economy remains under significant pressure and you have this flood of government bond issuance as well. the pboc has reduced rates multiple times this year and has found a more powerful policy response going forward. there is the view they will need to cut further to support the economy and to give a boost to the bond market which has braced for the additional issuance at bond level. sent we chartered have could get a -- said we could get a cut. this group did not expect any movement. they thought t

tom mackenzie joins us from beijing. more threats from the president not looking good. ely. this was in interview with foxbusiness. a very goode had relationship with the chinese president, but he is not at this point ready to speak with him. he went on to throughout this idea that as he put it, the u.s. could cut off the whole relationship with china, which he says would save some 500 billion u.s. dollars. which by the way, that is not true. it does point to the escalation of rhetoric from the trump administration. trump himself. he also went and said he is examining and his administration is examining chinese companies that trade on u.s. exchanges. he rejected the idea of renegotiating the phase one deal, something being touted as a potential option by state media in china. an escalation in terms of the rhetorical attacks from the administration on china over its handling of the outbreak as they try to shift the blame. they are trying to shift the blame to china. we should probably expect more of this as we count down to those elections in november in the u.s. rishaad:

coanchor tom mackenzie is in beijing. what does this report actually say it? accusation. it outlines familiar criticisms of beijing around things like intellectual property theft, economic protectionism, but also lays into china for human rights abuses including the forced detention of more than one million ethnic uighurs, and takes aim at china's military activity, provocative moves in areas like the south china sea and the taiwan strait. it claims the decades long u.s. policy toward china, basically based on the assumption that if you engage with china, you will help the country become more open. essentially that that policy was wrong. it did say also that competition between the u.s. and china does not have to result in confrontation or conflict. it is the latest broadside from the trump administration. the president himself in the last few hours coming out with a tweet accusing train of what he describes as a disinformation campaign around the virus, saying it comes right at the top. the senate has also passed a bill aimed at delisting chinese companies. h

premier of china addressing in a press conference the national people's conference and we heard from tom mackenzie that this is not the forum for him to address what is happening in hong kong with the strong response from the u.s. tom: our conversation moments ago from lord patten, the 28th governor of hong kong for the united kingdom, his clear message is what is needed is a coordinated response, not every developed economy for itself. right now, our first word news. havea: lawmakers in china defied the threat by president trump and passed a proposal for national sweeping security legislation aimed at hong kong, curbing potential freedoms in the city, a day after the u.s. declared hong kong was no longer a tana miss. -- autonomous. u.s., milestone for the more than 100,000 deaths from the coronavirus, the world's highest death. the first fatality was february 29 in washington state. one quarter of the companies using the british government's furlough plan are taking on the costs to pay workers. the wagesays 80% of for 8.4 million jobs. the government wants to change back firms can bring workers o

bloomberg markets coanchor tom mackenzie joins us. said -- what was said? accusations. peter navarro an advisor to the trump administration has built his career on bashing china. he wrote a book called death by china so that is the context. he said in an interview with abc that china had hit in the virus from the world with the world health organization and sent quote hundred's of thousands of chinese on aircrafts to iran, new york and around the world, to seed the virus, according to peter navarro. there is a lot of evidence to suggest china did indeed cover up the disease in its initial stages of the outbreak. but there's no public evidence we have seen to suggest that china deliberately that people around the world spreading the disease. but it seems to be part of this almost daily drumbeat of pressure against china from the trump administration. it is not just chumming from the u.s., enter -- coming from the u.s.. we see international pressure as well and will likely see that in focus when the world health organization's governing body needs for the firs

tom mackenzie beijing.ou thought america's labor market was in 120 million people lost their jobs in india. that is due to the virus containment measures. we will hear from the leading private think tank on that. haslinda: up next, we talk market outlook and strategy with -- case for a v-shaped recovery in china and where he sees opportunities to profit. this is bloomberg. ♪ haslinda: we are looking at a broad rally and asia to marxist -- in asia. investors remain cautious as investors reopen. they are looking to see if there is a second or third wave of new infections. taking a look at where we are right now, the csi 300 index up by .6%. the pboc pledging stronger monetary policies. theays it will not flood market with liquidity. the csi 300 trading above its 100 day moving average. we member the last time it did that, the rally did not -- remember, the last time it did that, the rally did not. the nikkei 225 up by 1.5%. it plans to remove 30 four prefectures from a state of emergency. take a look at where

for more, let us go to beijing, where tom mackenzie is standing by with a global coronavirus wrap. really great to have you with us. catch us up with what has happened overnight. cases, wes of global are looking at confirmed cases of 3.5 million for coronavirus, nearly 250,000 deaths globally, but it should be noted we have seen one million recoveries as well. in terms of the u.s., cases increased by 2.3%. a total of 1.15 million total cases in the u.s.. a lower dailyas increase than last week's average, so that is seen as a positive. trump has revised up the expected u.s. death toll. deaths in the000 u.s. could get to as high as 100,000. in france, they have reported 135 new deaths in the past 24 hours, the fewest in the last six weeks. a positive trend in france. in hong kong, you have seen planned by the government to relax social distancing measures. they have seen zero cases confirmed for at least 14 straight days in hong kong. they are looking at opening cinemas and beauty parlors and gyms. sciences is in focus. they have had that antiretroviral drug approved by the fda. that

tom mackenzie is watching all of this in beijing. china have to move when it comes to policy rates? tom: the policy room is there for china's officials. rates have been moving lower over the years, whether it is the medium term lending facilities, the loan prime rate, or the seven-day reverse repose. even the deposit rate has been going low. they are still higher than other economies. that is why you are getting a view that the pboc will roll over, at least part of the 20 $18 billion in medium-term lending's. they are likely to lower the rates on that lending from the current two point 95%. some expect up to 20 basis points in the one-year medium-term lending facility. that's what we are looking around for at 9:30. moreboc did have a powerful policy response. it will be in line with the messaging. it will be needed. they need to support the economy. it remains under significant pressure. it would also boost sentiment in the bond market, which is great for a flood of local government debt sales trying to support infrastructure spending

tom mackenzie, eric china correspondent in beijing. we appreciate your time as always.let's get to the first word news's. the u.k. is opening a path to citizenship for 300,000 hong kong residents holding overseas passports. the foreign secretary says if china continues down the current path, they will change the legislation. it will lift the cap 212 months. in germany, angela merkel is planning a second phase of stimulus worth 50-100,000,000,000 euros. learned christian democrats are pushing back to avoid too much debt. the are set to discuss proposals next tuesday. in japan, factory output dropped the most since the tsunami. fell sharply. it comes as the government announced it was doubling the size of its virus response. a third night of violent protests in minneapolis. georgeows the death of floyd, and unarmed black man. if they do not get the protests under control, president trump says he will send in the national guard. coming up, slow and steady reopening to read the citigroup ceo committed to bringing chris beck into offices as soon as data shows it is safe. thi

tom mackenzie has more from beijing. she succeed in trying to persuade critics? tom: the u.s. will keep up its drumbeat of criticism for china. he did make some important points in the speech to the governing body at the world health organization, talking about the need to develop a vaccine and the fact that if it is developed here in china, that it would be available for the global public good. china has five vaccine candidates already in human trials there. also said that china will provide two years -- to booting dollars for support, drawing a line of distinction with the trump administration, and they have been under pressure to agree to an independent investigation. xi jinping said they would sign up for that at the right time. it would have to be led by the world health organization. on the same day that xi jinping was making these comments to assuage their critics, china was also slapping tariffs on australian barley and cultural goods, 18% tariffs. that is being seen by many as punishment for australian systems on a rigorous investigation. it seems they are playing two

let's get it over to beijing, where tom mackenzie is taking a look at what to expect. re expecting this to be an investment driven recovery at least to begin with. what are we looking for in the numbers today? tom: there will be a modest improvement across the board but also a reminder that we are unlikely to get this v-shaped recovery that some economists are touting at the early stages of this virus outbreak. in terms of how it breaks down, the survey expectations, industrial productions expect to increase 1.5% for the month of april after shrinking more than 1% in march. bloomberg economics, they actually think it will be stronger than that and they point to this back to work ratio of $.95 by mid april. they think that industrial production will look relatively healthy given all the pressure that it is under. in terms of retail sales, we are expecting contraction of 6%, so that compares to a drop of almost 16% back in march, so again, improving, but still at a much slower pace. fixed asset investment is expected to decline by 10%. not as severely as the march number

our bloomberg markets coanchor tom mackenzie.re doing as we head to the lunch break. the shanghai market, half a percent higher. we get them on lunch break. next, the return of tokyo to the fray after their break. 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: you are looking at live pictures of hong kong's legislative council house committee, meeting to elect a new chairman. this comes after the legislative council president suddenly announced friday that pro-democracy legislator dennis who had been running the committ

shery: tom mackenzie, our bloomberg markets co. anchoring beijing. let's get to karina mitchell with the first word headlines. karina: global coronavirus infections are approaching 6 million now with deaths near three hundred 50,000, although the rate of both is continuing roles. state jobless declined for the first time in the pandemic, a sign that people are starting to return to work. latestmerica is the global focus now, accounting for 40% of daily deaths in covid-19. japan says that economy is worsening sharply amid the fallout from the coronavirus even as the abe government is the nationwide date of emergency . the cabinet office says activity will gradually resume but the severe downturn is expected to continue for now. the labor market is weakening a business sentiment is falling. the government is revising down words it's outlook for exports. india continues to be a coronavirus hotspot in asia with fatalities now suppressing those of china -- surpassing those of china. it had the widest national lockdown in the world. the number of fatalitie

tom mackenzie coming to us from the forbidden city.s rally extended? that is the question -- rally extend? that is the question of the day. twitter,e answer from "unlimited." we will see what laura cooper has to say. this is bloomberg. ♪ ♪ anna: welcome back to "bloomberg markets: european open." 54 minutes into the trading day. weighted down by chill political concerns between china, -- geopolitical concerns between china, hong kong, the u.s. we see that spilling into the european session via some of those banks with heavy hong kong exposure, i guess. >> absolutely. i think what we are seeing out of the hong kong headlines is it is adding to these tensions in u.s.-china trade. we are just seeing them grasp onto the phase one trade deal. at this stage, markets are waiting to see the u.s. reaction to the headlines. that will be a potentially crucial market mover. i think the key event will be around the annual u.s. review around the hong kong human rights act. pompeo delayed this previously. ultimately, i think at this stage, these tens

shery: tom mackenzie, with the latest. we will have more on china's tense foreign relations.uests join us great we are also speaking to a cornell university associate professor later. with coronavirus cases at 4.7 million globally, pro-health care ceo baker tells us whether or not he thinks testing efforts have been enough. jay powell warns u.s. recovery could stretch through the end of 2021. how will that way on sentiment? this is bloomberg. ♪ karina: you are watching daybreak australia. a new survey shows four in 10 americans don't trust china animal not by its products because of coronavirus -- china and will not buy its products because of coronavirus. the poll says three quarters of those asked pay more for goods made by companies that move out of china. itsh korea will slash forecast for the economy as a second wave of coronavirus cases emerge. they will cut the projection of 2.4% growth after the economy contracted more than 1% in the first quarter. india is extending its nationwide lockdown through the end of the month as a surge in cases make it one of the hot spots.

emily: tom mackenzie there in beijing. of course, we are awaiting the slew of china numbers.ll get more analysis on the chinese economy from guests later on. let's get you a quick check of the latest business flash headlines. the ok tos has won enter china's credit rating market. says it will be allowed to conduct bond raising operations in the chinese market. the news comes as a record amount of bonds are offered with chinese companies and local governments raising funds. tesla is cutting car production in china for the second time this month as competition heats up again in the electric vehicle market. the move applies to the long-range version of the locally made model three, with the price coming down almost $3000. it offsets the rebate being moved by the government later this year and aims to keep tesla competitive. delta airlines is to retire all its biggest planes by the end of the year and is morning of huge over staffing when it comes to pilots. delta. using its 18 boeing 777's and says it will have seven more pilots than needed by the fourth quarter. it will now rel

ourinda: let's get to markets, anger -- markets coanchor tom mackenzie in the forbidden city. china dropped its gdp target for the first time since 1994. that is significant. tom: it is. our bloomberg sources expected they would do this, but the economists weren't entirely sure. they have dropped the gdp target completely, facing up to the economic reality. this was the result of the coronavirus. you saw first quarter gdp in china drop. surveys suggest you will get 1.8% growth for 2020. they are giving themselves space to react to this virus and put a floor under growth without tying themselves in knots over an artificially high gdp. -- high gdp target. stimulus was a focus for investors. you got that line about the special government bonds quoted at being raised to 3.7 5 trillion yuan. alsoeficit target as well -- when you think about stimulus, you want to think about the deficit target -- that was raised to 3.6% versus 2.8%. the deficit will likely come in much higher than 3.6% because special government bonds don't get included in that. you have support for small businesses.

tom mackenzie joins us. does this mean the pboc is moving away from the targeted moderate approach? re they saying they will do? tom: they are trying to give themselves more room to maneuver even if they are not ready to go down the route of quantitative easing. this is -- it was released on sunday. the central bank saying it will pay more attention to economic growth and jobs, the impact from the coronavirus shutdown weighing on the global economy. it reiterated the prudent monetary policy will be more flexible and appropriate and liquidity will be kept at a reasonably ample level. they have been injecting liquidity into the financial system. the report dropped the pledge to avoid excess liquidity flooding the economy, suggesting they are trying to give themselves more space to enact policies to support the economy as the pressures continue. china's economy has contracted 6.8% in the first quarter. domestic activity has resumed near pre-pandemic levels but it remains anemic. given the drop in certain parts of the language, how much does that show the number and -- and concern from t

tom mackenzie continues to bring us the latest. as we get that news, we will for getting plenty more perspective, and we will be joined by our guests, including daniel rosen in half an hour's time. krach at 7:00 a.m. hong kong. and joining us later will be the u.s.-china business council as well as views from eurasia. next, we hear from one stock picker and get their view on where investors should be looking as the world struggles with the coronavirus crisis. ♪ nancy pelosi says the house will review the senate bill that would impose restrictions on chinese companies listed new york, though she stopped short of promising a vote. she admitted the legislation has two-party support in the senate, but says the house will give it consideration. the bill foots further pressure on china ties. ofan declared a state emergency in tokyo as soon as monday if the downward trend in coronavirus infections continues. restrictions have been eased in osaka and surrounding regions, but the capital and nearby areas must wait longer. says minister shin

that was bloomberg markets co-anchor tom mackenzie from the forbidden city in beijing.ow to the first nude, india's central banks cut rates in an unexpected announce thment morning. it's ramping up support for an economy facing its first recession in four decades. the benchmark repurchase rate was lowered by 40 basis points to 4%. the reserve bank's next meeting wasn't scheduled until june 5. president donald trump decided to withdraw from the open skies treaty, an arms control act designed to promote transparency transparency between the u.s. and russia. the president is citing violations from moscow. aying. he move won't take the move won't take place for six months. there are just over 300 pandemic cases and no deaths. with many countries shrinking, the prime minister said his country could still grow as much as 5%. certain macroeconomic indices as overspending, therefore we have sed the -- set the g.d.p. growth of 2020 to be 5%. i believe this is the highest g.d.p. growth expectation in asia at the moment. nejra: global news powered by more than 240 journalists and

shery: tom mackenzie in beijing with the latest on china and hong kong. more analysis on china-u.s. tensions ahead. years asfman boasts 30 a resident analyst and business developer in china. he joins us later. plus, huawei caught in the crosshairs. we will ask its chief security officer in the u.s. how long the company is prepared to fight the order. still ahead, trump lance to punish social media companies for how they plan to please -- for how the police content. this is bloomberg. ♪ you are watching "daybreak australia." global coronavirus infections are approaching 6 million, with deaths approaching 360,000, although the rate of growth is continuing to slow. lls the cliento for the first time in the pandemic, a sign people are starting to return to work. for 40% ofaccounting daily debts from covid-19. worthsays the economy is reshuffling after the fallout from coronavirus, even as governor abe eases the nationwide emergency. the labor market is weakening and business sentiment following. the government also revising downward outlook for exports. india continues to be a coronavir

tom mackenzie joins us from beijing. competing approaches in the u.s. very different approaches. there is division between president trump and his health experts. the president wants to open the economy as soon as possible. dr. fauci and others, including the head of the cdc, they are warning opening to quickly could trigger new outbreaks and setback economic growth even further. in china, the economy is and has largely reopened but it has been at a gradual pace. they are relying, the chinese, on testing, tracing, and warranting to clamp down on new outbreaks. we are seeing the system put through its paces now. wuhan is drying up plans to conduct tests of all their residence at -- which is 11 million people, within 10 days. this comes after the first locally transmitted elect -- infection since the luck to him was lifted. you had six cases in want. -- in wuhan. the size of the testing program points to china's anxiety over a second wave. they are turning the sights towards what is happening in the northeast of the country, where a city has been partiall

i remember those days when tom mackenzie got to go visit the shanghai park.nks are focused as they take a hit. impairment prices are tripling. this is bloomberg. ♪ haslinda: asian bank earnings are back in focus as they posted its first quarterly drop since 2016. later we get the results from india's yes bank. let's bring in our senior asian financial analyst. let's start with uob. how did they perform versus your expectations? uob's profit is down almost 20% in the first quarter. the key defenses from what i anticipated was on margins. they have seen a five basis point compression. we may have a lot more room. they might actually drop below the 1.68% that they saw from the last time. they rose.isions, i think they are trying to figure out how much government stimulus is. i think there will be a lot more coming in from the provision side and into 2021. haslinda: what are the problem areas for uob and the other two banks, which have the most stressed to deal with? thata: the usual sectors have been hit are oil and gas, aviation, hotels, tourism, retail, food.

i am tom mackenzie. securing the independence of judges in hong kong.econd day. more economies we opening against rising u.s. china tensions.

welcome to "bloomberg markets: china open" , i am tom mackenzie. >> let's get your top stories.tacks on beijing saying the coronavirus emanated from a chinese lab. the secretary of state says there has been a cover-up. >>

i'm tom mackenzie. >> i'm david ingles. we are counting down to the open of trade.nd reopens. our top stories. coronavirus infections pass 3.6 million, with 255,000 dead. china hits back at u.s. criticism, saying the trump

i'm tom mackenzie. david: we are counting down to the open of trade here in hong kong.y morning, the coronavirus blame game sees the offshore chinese yuan approach an all-time low. president trump raises the stakes, threatening a fresh round of tariffs on china.

i am tom mackenzie. david: i am david ingles.ese mainland and hong kong. our top story today, the latest trade numbers out of mainland china due shortly. we will show the full extent of the coronavirus fallout. and abandoning gdp targets. tom: sungwoo: