tv Bloomberg Markets Asia Bloomberg February 3, 2020 9:00pm-10:00pm EST
shery: what a remarkable comeback for the chinese market. we're talking about the shanghai composite recouping 2% of losses at the open. this after policymakers set the yuan 6 at much stronger level than the 7 against the u.s. dollar. asia stocks gaining ground for the first time in nine days. the same not quite story for commodities. we know that there is a lot of concern out there the virus would cause harm to the economy. and that could impact them on for iron ore. we have seen how iron or is continue to weaken after that smackdown for the, the commodity
yesterday not looking good for the commodity space. as we speak we know that carrie lam, the chief executive of hong kong, is speaking at this point in time in a conference. she's saying that some headlines to tell you about. saying that the border closures don't affect good, transportation. lam, also says she's saying that in response to panic buying. additional pressure on the economy which is already reeling from a recession there. you are seeing live pictures from the press conference. carrie lam speaking to the media saying that the border closures not affecting good transportations. shery: we have seen a protest th workersth heal demanding that all the entry points from mainland china be close. only three of 13 checkpoints are open.
macau bridgeport in the airport. continued to receive a lot of pressure for those checkpoints to be closed. she's saying the impact of hospital services has been those healthen official striking. for now, we continue to see trading across asia. sarah: we can let out a sigh of relief because for now the csi 300 up about 1.7%. the shanghai composite off the close as well. immediately after the open we had seen it fall as much as 2.2%. but climbing its way back into the green, up .6%. and the hong kong hang seng higher as well the second straight day. switch up the board. i want to show you the sector price action. today we are seeing all sectors within csi 300 in the green.
energy has been wavering between gains and losses. some of your consumer sectors. consumer discretionary and consumer staples. technology really seeing a boost . up near 3% or more. as i mentioned, energy has been wavering between gains and losses. to the downside health care and financials. csi 300.some of the two to one to the upside. shery: more on our top story is china says confirmed coronavirus cases have topped 20000 and the death toll has risen about 425. that as beijing is preparing more steps to contain the economic and human damage. selina wang has the very latest. so, what do we know about the latest confirmed cases within china, and how widespread this is? selina: there now have been more than 400 deaths, 20,000
confirmed cases of infection. a key concern for investors is how this could impact the enforcement implementation of the phase one trade deal. china committed to buying $76 billion of american goods beyond what it did in 2017. and that's being challenged given the impact of the coronavirus has impacted trading demand. chinese officials are hoping the u.s. will agree to some flexibility on those commitments in the phase one trade deal. sharing that state loans liquefied natural gas importers are considering declaring themselves unable to fulfill some obligations of delivery. there have been logistical constraints at some chinese ports due to the cold of delivery of agricultural goods. this coronavirus is putting the highlights on u.s.-china tensions with china slamming the u.s. for overreacting to the
virus and not doing enough to help the situation while being the first to evacuate their personnel from wuhan. the u.s. centers for disease control and prevention is working to get emergency approval for a test of the virus. it is preparing for the disease to become a pandemic. haslinda: some new headlines from carrie lam there. shse says hong kong can prioritize demands and resources of hospital authority and hong kong will start -- supplies. in the other headlines, which we saw earlier, she did say the impact of hospital services are worrying. and some hospital services are affected by the strike. to bring you back in, what kind of steps is the chinese government taking to shore up the economy? it has given no signs of debating, the government is reevaluating its
economic growth targets, looking targets.en those there was already a crackdown on debt. they are considering measures including increasing the plan ned caps on the budget to gdp ratio and selling government bonds. to highlight how big the impact theor january, 2/3 of chinese economy remains closed. you also have the number of trips made in china over the lunar new year dropping by 73% big90 million trips, a shortfall from last year. even though there has been a lot of optimism over the former pharma rac-- the companies racing to develop a vaccine they should not hold their breath. it could take a few months to have a working candidate.
it takes 12 to 18 months to be tested to. make sure it is safe and humans it takes years for research and development of a novel let us and like this. haslinda: our china correspondent selina wang in beijing. now our first word news with su keenan in new york. su: we begin with the economic impact of the coronavirus. china could lower growth targets for this year as part of a review of how plans may be affected by the coronavirus outbreak. the economic goals are typically announced at the annual legislative session in march. and the expectation has been for growth of about 6%. that will be down slightly from 2019. sources tell bloomberg the government is debating a range of measures to support the economy. and on that front, united airlines says it is pushing back the suspension of flights from china by a day with the last plane leaving tuesday. hong kong flights to the u.s.
will be halted wednesday. united is the last american carriers still conducting services from china. moved up its suspension of flights to the weekend and ameran coronavirus is hitting hg kong's economy. after a tumultuous 2019 dominated by protests and violent unrest. figures confirm an annual contraction for the first time in a decade with a slump of 1.2%. further shrinkage in the december quarter left the hong kong economy in continued recession. almost 3% smaller than in the last three months of 2018. citi is lowering its full-year estimates for gaming revenue in macau. as the virus weighs on january self. -- results. they previously forecast a drop of just 2%. citi expects revenue to fall 31% in the first half of the year
before rebounding by about a half that amount in the next six months. however, they remain confident in overall growth. global news 24 hours a day on air and on quicktake by bloomberg powered by more than 2700 journalists and analysts in more than 120 countries. this is bloomberg. thank you so much for that. some headlines crossing the bloomberg terminal coming from a bank indonesia. bank indonesia saying that it is open to rate cuts amid the spread of the coronavirus. it sees the virus as a risk factor for monetary policy. it will take steps in shoring up financial stability. the indonesia rupiah has been under a lot of pressure. to continue triple market intervention to support the currency and it will boost coordination with the government to medicate virus impact. shery, we know that central banks have been watching the
coronavirus to see how it will impact growth for 2020. now, still ahead, more to come. ashinge citigroup sl price targets for commodities. it all comes down to the coronavirus. we'll speak to a strategist. shery: the iowa caucuses are underway, the first contest for democrats making a run for the white house. we will have a live report from des moines amid second results. this is bloomberg. ♪
here with more on virus reaction is jpmorgan asset management executive director and global market strategist justin yo. we to have you with us. what a turnaround. we're looking at markets -- today, how resilient are the markets at this point in time? a good example think markets ay to remain volatile inear term. a lot of people are looking to the sars 2003 prototype for market implications. caveats is that the coronavirus morefferent where it's infectious, less fatal. the market environment was different at the time and the 2003 sars is one data .16 years ago. -- data point 16 years ago. what is important to look out for is the number of new cases
and suspected new cases. so, i believe we kind of need to see the peak in the coronavirus pandemic before investors are confident we see the trough in markets. and based on what we see in terms of government, how ready they are in terms of coming into address the situation by imposing travel dance, b-- tr avel bans, by having quarantines and lockdowns, we believe the recovery could be stalled and will continue. for us, the recovery is still -- calm andkeeping carrying on. haslinda: it is too early to be bargain-hunting. >> bargain-hunting -- some people will want to come in. for us, we are still looking at valuations. very fundamentally based. when we see opportunities will
address them. but i think for now the thing there could still be volatility in the markets. so, it is good to be prudent. shery: we are now seeing the chinese government bond market pick up with yields rising after falling to the lowest level since 2016 or so. reits markets telling us about the economic growth effects -- prospects? we are seeing a slight rebound in the 10-year yield, but it is still a significant fall. >> if you think about it central banks have been cutting rates. that has been benefiting asian bond markets. and then there was this safe haven bid. again, that helps the duration for the asian bond markets. i wouldn't read too much into it, but i think the way we look at it there's still opportunities in the asian bond market.
again, out view -- our view is that because we do see a q2 recovery and therefore we want to engage in riskier assets. bonds, the high yields, the ones with the higher carry, that will still benefit this year. haslinda: we are also seeing other central banks coming into action. bank indonesia earlier said they were open to rate cuts, because of this coronavirus operate. they are going to take steps to ensure financial stability. we have seen in indonesia a rebound when it comes to economic growth and domestic demand. car and retail sales were all higher. we are expecting fourth-quarter numbers out later this week. what is this telling us about the willingness of central banks to step into action even when their economy is doing ok? macrohere is any other
economic uncertainty, what can we expect from central banks around asia this year? >> the asia central banks have been very preemptive, very progress. they are waiting to come in to ease policy to support the growth recovery we are seeing and that is very positive for markets. rate cuts are one of the key support for market -- and equity markets together with excessive liquidity that has been helping to support valuations. not just for bank indonesia and alonegion but this week we are going to see the bank of thailand, we are expecting a rate cut to support growth and to support tourism because tourism is one of the big industries in thailand. so, i think it is really good, like together with china, and all the other central banks in the region to be willing to support this growth recovery. which is what we have more confidence that 2q could be the
turning point for markets. and then the recovery. haslinda: but it is a world of rock-bottom rates. how much space is there? who has the capacity to move? moveina still has room to in terms of cutting rates. and bank indonesia will cut rates. thailand is closer. haslinda: a great pressure. >> i think thailand. what we have seen in terms of the action has been reflected in the thai baht, which has been selling off as an underperformer. it's important to realize that the bank of thailand covers the tied that because the excess -- n automatic a stabilizer to the tourism sector and boost exports. last year, they were fighting the thai baht strength by cutting rates and encouraging capital outflows. in a sense, they welcome the weaker thai baht --
the expected policy rate cut that we see. haslinda: china has the capacity to cut rates. how soon will the impact be felt? >> we've been seeing them injecting liquidity in the markets. we still see the cutting of the triple-r, the mlf. i think that it takes time for the rate cuts ink it's importane think about policy easing that the china government not just on monetary policy, but has to filter into the economy and to those that needed the most which is currently the sme's. so, they have to address the fact that sme's will now be struggling more, given that businesses are suffering. they need ready access to funding. i think government has to address that. that is probably more important than easing itself.
haslinda: thank you so much. jpmorgan asset management. we have breaking news out of hong kong. cable tv reporting the first coronavirus death in hong kong. we know there have been about 15 cases of infection inside the city. the first overseas death was already in the philippines. now cable tv reporting the first coronavirus death in hong kong. shery: of course, most of the the coronavirus infection of 20,000 people have been within china. 400 people have already died. carrie lam just had a press conference saying that they will prioritize demands and resources for hospitals and health care facilities. of course, people are demanding that checkpoints with mainland china to be closed. only three are open. this is bloomberg. ♪
just recapping the headline auto hong kong. hong kong reporting its first coronavirus death. the first death outside of china due to coronavirus is in the philippines. again, hong kong reporting its first coronavirus death. let's bring in our bloomberg markets co-anchor. we are seeing the hang seng index easing a little. >> right. comgi coming off, we were headed into the ad break , i was looking at the chart. we were trading above 600. we're now slightly below that. can we tie the headline to the market reaction? i wouldn't be surprised if some people do.
and you can argue both ways. what's clear is that this developing story -- still a developing story. when you get a headline that that that plays into the sentiment part of the market. course.ves, of as far as when you look at what is happening across markets. this bounce up today. your previous guest pointed out. you are getting institutional investors buying in. it is a fluid situation. which also points the fact that markets are clearly -- off the same narrative that this -- persists in the months ahead. shery: more information on that death in hong kong coming from a government statement now saying the patient is a 39-year-old man
with an underlying illness. that's according to this government statement. block one. i livedn he develop myalgia since january 29 and started having fever. this is the first death in hong kong. the second overseas after the philippines. southgetting laiines from korea. let's talk about the rebound in the markets. because the chart on the bloomberg showing that we were at the cheapest level in almost a year since a huge selloff we saw in china. could this be a sort of bargain-hunting going on? usually when you have instances like this, how long do they last? david: that is a good point that you brought up. i was listening to your interview earlier. the momentum traders starting to take advantage of these banks,
institutional investors. . what we got yesterday was a case of both if we have the chart, can we bring that up? ta the same -- at the same time we had a collapse we saw ebitda netn b inflows. you saw the second largest inflows since the inception of shanghai and shenzhen in 2016. we 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.
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 and air asia. tony fernandes is stepping down for two months along with the airlines chairman while the malaysian government probes claims that officials accepted bribes. both men deny wrongdoing. airbus reached a $4 billion and finally,iday, starting faced its biggest slump in seven weeks. the u.k. and the eu fuel fears that talks on the deal would be , and the eu says a
highly ambitious trade deal is it is onlyt they say of the u.k. agrees to the rules. prime minister boris johnson saying the u.k. will thrive. global news, 24 hours a day, on air and on quicktake by bloomberg, powered by more than 2700 journalists and analysts in more than 120 countries. i'm su keenan. this is bloomberg. some of theagain headlines across the bloomberg in the last few minutes. the fourth death in hong kong from the coronavirus, according to local media. this is the second death overseas outside of mainland china after that death in the philippines. this was a 39 rome and in hong kong with an underlying illness. we had heard from chief executive carrie lam who has
said hospital services have been strike, hotel officials have been striking demanding that those checkpoints be close. only three are open at the moment. the hang seng index will continue to rebound while president xi jinping is warning his powerful politburo standing committee that the instability of the coronavirus could lead to ,mpact on social stability telling those top leaders of that standing committee. let's get more on the market action as we continue to see the market rebound across the board. suit -- tooably soon to tell if this is sustainable. a lot of it may be bottom fishing, if you were to look at the valuation on chinese stocks after the declines we saw
>> the pbo see coming out and explaining their reasoning for the liquidity injections we have seen so far. they are saying the injection shows resolution to boost confidence. it is meant to steer interbank rates lower more than expected course weinjection of have seen the chinese markets recouping earlier losses in the shanghai composite and gaining back those 2% plus losses before
the morning at the open. we also saw pretty strong you on fixing compared to the rate at the moment where the onshore you one was still trading weaker than that seven level. now the pbo's coming out and explaining these liquidity injections saying it is showing resolution to boost confidence after they injected billions of you one through seven and 40 day reverse repose following four turn -- short-term funding to banks and cutting interest rates the dayesterday and after the lunar new year. googlee u.s., shares of parent alphabet took us humble and extended trading amidst wall street targets and add revenue for youtube missed analyst estimates. youtube was supposed to be a growth story.
that raises concern, is the growth of online search engine on the way? shares were down 4% and more as they reported revenue from key holiday missed wall street estimates while new sales number is on youtube also disappointed. >> take a look the big picture for alphabet, shares were up 50% for the past three months this is going to weigh heavily on the tuesday trade. as you sick of the youtube was a growth area. pleased with youtube. post toave seen a blog change content and remove misleading information about the upcoming 2020 elections. we are applying deceptive content policies to reduce slitting information about voting locations or census process. are mentioned earlier we
pleased with growth in advertising and subscriptions. >> he is pleased with growth but take a look they brought in $50.1 billion in revenue in 2019 up 36% year over year excluding subscription but that is well below what analysts were expecting, morgan stanley expecting 22 billion. overall revenue already 7.6 billion in the fourth quarter less than analyst projections of 38.4. or whether they are being affected by rivals, facebook and amazon is a big question that will play out in the tuesday open. the competition is heating up. su keenan, thanks for that. the markets will open in mumbai and about an hour. we are seeing a turnaround for
the asian markets. how are they shaping up in india? far we've got a positive trade on india. you could anticipate some bounce from these levels considering the selloff that took place on the index. foreign institutions continue at $150,000. that, there were gains coming in with the benchmark index. in the midst of the earnings seasons.
net sales expected to increase, but the big revenue segment is the jewelry business. that is expected to have growth of about 11%. hand isty on the other expected to grow by 3.3%. last time around on the back of provisioning for the agr in today's trade. shery: coming up, i will voters kickstart the primary season. is it anyone's game? we will bring you the latest, next.
one between dollars last year .hanks to cloud optimism shares have beaten almost all others in the s&p 500 for the past five years. blackberry is ending its partnership with the chinese company tcl in a move that may mark the end of the line for the iconic company. blackberry had been outsourcing all the main work on its phones since 2016. the chinese company said it will continue to offer support to existing models until august 2022. campaign.g up its mobile broadband providers have told the fcc that it would be expensive for them to replace if order to doi so.
shery: democrats and the i will caucus are taking the first step toward choosing the candidate who will run against president trump in november. taste -- a take of how important the i will caucus is in the broader context of the primary season. will try to get back to kevin moines,s there in des iowa. given that we are waiting for the iowa caucus and voting to take place. the context of iowa in a broader primary season.
and foremost, it's all about heading into the upcoming primary on an all-important super tuesday election. a lot of these candidates need to be able to wake up tomorrow and pick up the phone, called donors and say they still have a reason to continue onward with their campaigns. campaign staffers, for pete buttigieg they are bullish in terms of how they performed tonight. beyond that, look for senator , if he is able to carry this significantly and then perform well in new hampshire, that would project a lot better for him as he carries on. for joe biden, the stakes are somewhat high. should he falter third or fourth place, that would cause significant questions about his viability in the long term as well.
kevin, it's been a bruising primary season. the question is how it unifies the party. that is the huge question. kevin: it's interesting, given elizabeth warren, bernie sanders searches -- other candidate such as klobuchar and biden as well. there is no doubt their questions about party unification that have been raised each cycle. and there's no doubt the party is always unified, but beyond that, it will be quite telling to see if some of the poll numbers that were going to be getting out the results over the next couple of hours, specifically which demographics are going which way. aboutot hearing much peach when, for example here in i will. we're hearing a lot about health care and of course climate change.
that could also be a potential leaves for tea readings over the next couple of races. shery: great to have you with us, kevin. michael bloomberg is also seeking the democratic president.for be sure to stay with bloomberg for complete coverage of the i will caucus starting at 10:00 p.m. in new york, that's 11:00 in new york. tomorrow we'll carry president trump state of the union address, followed by the democratic response. that kicks off at 9:00 p.m. in new york. do have coverage of the i will caucus is next. this is bloomberg. ♪
des moines,town iowa, to our worldwide audiences, i'm david westin. this is special coverage of the iowa caucus results on bloomberg television and radio. the caucuses begin two hours ago in iowa and 1607 -- 678 ecincts. ofbetween, there is a lot discussion and persuasion going on. results will get reported and
our chief washington correspondent kevin cirilli has results, but i'll give you one. donald trump won the republican caucus already. ap has projected it. >> no surprises there. david: what going on at the polling center right now? of things that folks are watching for as we eagerly await the results of the early precincts to come in for democrats. three things i have my eye on. bernie sanders perform? a lot of expectation on the campaign to deliver a win at iowa caucuses. secondly, can joe biden wayne, come in second? anything else would be deemed a significant political risk for the future of his campaign and raise questions about his candidacy going forward. all of those o