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tv   Bloomberg Markets Asia  Bloomberg  February 10, 2020 9:00pm-11:00pm EST

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haidi: even as we have new cases being confirmed, outside of china, this is where most economists and analysts and medical personnel are looking to see how serious the contagion is. we just heard of the 15th case in vietnam. we are getting more numbers out of hong kong and doubling numbers on that cruise ship off the coast of japan. we are seeing quite a lot of positivity on the markets. as investors look beyond that, perhaps getting ready for earnings season and looking at the robust economy in the u.s. as well. we are seeing asian stocks pushing up higher. shery: we are seeing emerging-market currencies leading the gains. the taiwanese dollar is leading
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the japanese yen, seen as a safe haven is under a little pressure. we did get those positive numbers out of south korea. 70% year-over-year in the first 10 days of this month. let's get the latest on the market action with sarah. >> we continue to see green across the screen. is an extension of the risk rally. sang -- hans hen saying is up 20%. both of them are seeing higher than average volume. if you look at the korean coffee, it is up. making its way to the upside, the s&p 500 futures also extending those gains after both of the s&p 500 and the tech .eavy 500
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it is not just equities pointing and ansk rally optimistic tone. the commodities market is as well. the aussie dollar is higher by .2%. the japanese yen falling for a 50 day. we are seeing that -- fifth day. we are seeing that safety bid falling. we are seeing oil rebound. one pointp nearly five percentage points. we have seen an amounts -- immense amount of pain for bread. we are watching just a couple of events that are happening at the moment. the hong kong chief executive carrie lam is doing her weekly media briefing at the
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legislative council. early can see there, mask -- firmly in place. they are watching f -- we are watching out for headlines there. the hong kong government says they are continuing inspections at the buildings with virus cases. that is according to the hong kong leader, carrie lam. we are watching the news out of chinese state council. let's get the very latest from hong kong. we will have the latest on the coronavirus as we get this new reported case out of vietnam over the last few minutes or so. we have yvonne man in hong kong. we just heard from carrie lam, saying the hong kong government will continue inspection at the building that has provided the
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latest virus cases. what more do we know? ne: inspection workers have been working throughout the night. we have learned that more than 100 were evacuated as a safety precaution. that was after they found two cases in that building. the latest was a 62-year-old woman who contracted the disease. she lived directly below a man who tested positive earlier. of hong the 12 case kong. this brings the total number of cases to 42. authorities are not ruling out any possibilities of what led to this virus to spread. they said they are even considering if this virus is airborne. that is after they learned that the ventilation pipe that was connected to the discharge pipe in the bathroom was not properly sealed. that could have carried the virus. if you turn on the exhaust fan
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in the toilet, the air from the drainage system could go through that ventilation pipe. that is something they are watching out for today. also, it is good to hear more -- saw in hongee kong. based macs, toilet paper. we learned that the government -- facemasks, toilet paper. we learned that the government was trying to control by scouting, categorizing facemasks as a reserve commodity. it seems that carrie lam denied that. they said it was counterproductive. they are trying to manage increasing supply and demand here. >> from beijing, the state council is holding upper -- a press conference. we have seen more cases of coronavirus and the death toll rise in china. continues right, it
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to climb. 2000 with more than 42,000 cases. we are seeing a stabilization of new confirmed cases. they expected that mortality rate to come to down -- down to 1% after you take in diagnosed expected cases. so far, we have heard that hubei province has removed health commission and party chief. most senior officials will be removed from their post says this public health crisis began. this has been one of the big challenges to president xi jinping's rule. we have seen the blame being placed and focused on the local government level. now we are seeing xi jinping make a rare appearance in the
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public. his first since the appearance of a doctor. local authorities warned of the virus in the early stages prior thatis public appearance we saw from xi jinping on monday. it seemed that xi jinping was a retreating from the center stage. now we are seeing state media reporting that the central role -- you will see xi jinping wearing a mask. he is getting his temperature taken. he appears to be showing empathy to the ordinary people of china who have been dealing with stringent travel restrictions. earlier, we did speak to the world health organization china representative. even though case number's are stabilizing, they said it is too early to say whether china's worked.ent strategy has
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it is also too early to say whether containment has been reached or more broadly. -- in china or more broadly. >> we are hearing from carrie lam and also the hong kong secretary of food and health. they are saying that the government has stepped up disinfection. it has affected housing. we are hearing from the secretary of transport and housing. we are also back to hearing from carrie lam, the chief executive in hong kong, speaking before her executive council meeting. let's get to yvonne. we are seeing greater public health and hygiene. how is this playing out when it comes to economic activity? what do the streets look like when you get outside at the moment? outhere is a lot of anxiety there. most people are wearing a face
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mask. if you are pressured to do so. we are looking at the press briefing with carrie lam. she has taken off her mask. it has been an interesting communication effort with the chief executive. she fumbled weeks ago when it came to a fumigation of whether to wear a facemask or not. earlier, she talked about restricting access of masks to civil servants. she, herself did not wear one in previous press briefings. she had to turn and say it was not her intention. it was that she wanted to give priority of facemasks to medical workers working the front lines of hospitals. found atases have been that building after the hundred residents had been evacuated. a lot of questions about how this was transmitted. is it the typical droplets or contact?
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is it in airborne transmission that we have to worry about? >> yvonne man, in hong kong. thank you to selina wang in beijing. carrie lam is also saying that the implementation of the quarantine in hong kong has largely been orderly. let's get the first word news with su keenan. breach at equifax. the u.s. has charged for members --the chinese -- for members four members of the chinese army for that hack of equifax. william barr says the u.s. has the ability to track down hackers and find them. breached the information of almost 150 million americans. this is a significant step forward for the data injury.
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to the u.k., the government says they will break away from the eu rules of governing finances but they want a durable relationship. the chancellor says the u.k. may choose to do things the same way as the single market. tore will be differences international standards. the eu is ramping up its demands ahead of post-brexit talks. u.s., president trump has released his latest budget with a plan that proposes deep cuts to social programs but increases spending elsewhere. this potentially pushes gross federal debt about $30 trillion over the next decade. plan is$4.8 trillion because of tax cuts and heavier expenditure on military. the budget has no binding power as of yet because federal spending in the u.s. is determined by congress. ukraine is calling on iran to handle this black box -- head
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over its black box flight recorders from the bow exam 37 max that was shot down at of iran. they are under -- the iran government is under pressure to provide more information. note media says they have intention of releasing the flight recorders. global news, 24 hours a day, powered by more than 2700 journalists and analysts in more than 120 countries. i am su keenan, this is bloomberg. >> still ahead, we are live at the singapore air show. concerns about the coronavirus pulled -- made some big names pull out. we are seeing pressures on earnings. more on the virus all out. nextccafferty will join us to talk about it. this is bloomberg.
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you have the hong kong chief executive carrie lam giving her briefing inly media hong kong without a mask. she has been going through the details of this evacuation and the efforts. the hong kong effort is stepping up the disinfecting efforts of houses. the evacuation took place here where -- when for hong kong residents complained of symptoms. there have been to corona vices -- two coronavirus cases reported. interestingly, you know that the two cases were 12 floors apart from each other.
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a 42nd confirmed a case in the same building here. carrie lam is giving some numbers when it comes to the amp limitation of the quarantine. individuals have received mandatory quarantine. largelyantine has been orderly. -- 2196 question marks -- have received mandatory quarantine. the quarantine has been largely orderly. newey who has talked about infection. there is a need to balance economic advancement with containing the outbreak. more people returned to work -- this as more people returned to work. >> when people are coming back to work, there is a possibility
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of some uptick in transmission. how much of that will happen depends on how deeply they returned to work. we are watching this part carefully. we cannot say -- it is not clear yet that there has been a full return to work. to example, that is a return major construction projects. here in beijing, that is a stronger suggestion -- there is a stronger suggestion that companies that allow their workers to do teleworking and use the telephone and internet has been very much encouraged. the control measures have to be a balance between maintaining some essential economic activity and economic development because that in itself, if it is constrained can lead to important health consequences, reduction in quality of life,
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increased death even. there has to be a balance between the economic activity and the containment measures. we are hoping that this balance it willachieved and allow the decline to happen. surprisege of medical -- supplies. what is who doing to alleviate the problem? >> the shortages are very strong and painful. not supplying logistics, it is a technical support agency. there has been in activation of the u.n. system. just a few minutes ago, before we had this interview, we were talking with the rest of the u.n. system. our colleagues. other agencies are
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procuring and trying to help meet the shortage. in china, the shortage is being met. -- theave been strongest strongest efforts to meet the shortages has been through mobilization of resources in other provinces and the ramping up of production. >> that was world health organization rep sensitive dr. galea. the current virus is having a meaningful impact on chinese and global growth. line from now on the hong kong is jim mccafferty. he is the joint head of asia-pacific equity research. a pleasure to have you on. let's have this chart up. we are seeing asian equities have never been this cheap. as you compare them to u.s. stocks, u.s. stocks are pushing
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ever higher. bloomberg --nto my you can see this chart. comes toink when it this rally we are seeing in the chinese mainland market that is not reporting fundamental or economic fundamentals? world of in the immediate news, lots of emotional people, panic and hysteria. people investing in the stock markets see this virus and the downturn in economic bit -- activity is very visible. is lesssee that there people around, it is easier to get a taxi. the aviation business is struggling, trains are struggling, restaurants are struggling.
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what does that mean for shares of your portfolio? forecasts will have to come down. our earliest forecasts for the quarter have been cut. 10%.t from 12% to we advise that some estimates out there are looking for 15%. the market is expensive. the forecasts we have right now are probably too high. too early to assess what the forecast is likely to be given that we don't have a great deal of certainty as to the sense of the coronavirus impact and how long it will play out for? jim: there are certain things we can do. let's take industrial production for example. this virus occurred at a time where the impact was less than it could have been at other times of the year. -- we saw onam
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your screens that vw and tesla are opening production in china again. canstrial production, we tie that through to the companies that are participating in that supply chain. it tends to be the companies that go down the list that adjust earnings down. results from companies around the region which will be this month and next month, you will see earnings forecasts come down. the reasons is a correlation -- are a correlation between forecasts and share pricing. what we saw at the beginning of the year was -- is probably less than the beginning of january. > why are asian equities rebounding so soon? the sars, during outbreak in 2000 three, we did not see the index bottoming out until the case is happy. -- cases had peaked.
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jim: there are another couple of charts that ever strategists put strategist put together in singapore. of peak was on the fifth february. the data he gave me suggested that we are around 2.5 thousand cases as of yesterday. was 4000 on the fifth of february. the cases have come down. i think the boredom threshold of people is much lower than it was historically. we are seeing sars, the peak news coincided with the bottom of the market. with this virus has already happened. >> are there any markets across
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the region that are more insulated than others when it comes to this outbreak? jim: undoubtably. the first thing is to give it a little context. this virus has originated in theseand impacts geographies. what we can say about these markets in northeast asia is the companies in those markets have incredibly strong balance sheets. that means they can afford to withstand a fairly substantial decline in business activity for a prolonged. of time -- along to timeframe before they have to tell the shareholders. you could not say that in the u.s. or companies in the eu. the asian companies have been through so much over the last 30 years, the asian financial crisis, sars, they are quite cautious management teams. here, look at markets
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coronavirus and others, we point to india, perhaps. >> it is interesting that a month ago, we were talking about a liquidity crunch as one of the big risks for 2020. is that no longer the case? banku expect the central to cut preemptively to get ahead of the curve? that continues. there is 20 a liquidity and central-bank balance sheets -- plenty of liquidity and central-bank balance sheets. monetary and fiscal policy will play a much bigger part. if we look at the state of not just the company balance sheets, countrys -- but the balance sheets, countries like korea will increase tax. havingpeople see it as
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lots of borrowing but it is borrowing internally. fiscal policy will accompany any balance sheet of the central banks. china cares about the value of the stock market. that is a source of power. in terms of china's impact on the global economy, they are 70% of the global economy but only 4% of the world stockmarket. china will help the stock -- we think that china will do whatever it can to help the stock market return from this. now, carrieright lam is in hong kong, briefing is press, saying that she urging the public to reduce social contact. hong kong is prosecuting those who bridge quarantine. she said that more than 2000 had to receive mandatory quarantine in hong kong. they are showing the challenges
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of keeping this quarantine in place. she says only 62 mainland residents entered hong kong on february 9. border closure is no longer meaningful. this is bloomberg. ♪
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>> it is 10:29 a.m. in hong kong and shanghai. keenan with the first word headlines. the coronavirus death toll has risen past 1000 in china. 43,000 casesost across the country, most in the province where the outbreak began. the world health organization 10 chinesemonitoring provinces for signs they could become additional virus hotspots. xi visitedpresident a hospital on monday and said the impact on china's economy will only be short-term.
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in thailand, they are the latest country to reject a request for passengers to get off a cruise liner where there have been fears of a violence. beenessel has already denied december are in the philippines, and japan. holland america says it has no reason to believe there are any cases of the virus on board. vote counting in the indian capital of new delhi will begin later on tuesday with the modi government hoping to make up recent losses. the tally begins at 10:30 hong kong time with early results expected three hours later. this is a test of a controversial religion based law that has sparked violent protests across india. dramatic escape from japan has seemed ripe for the movie treatment and now the
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x nissan boss has handled -- has hired an agent to handle this. we are told that michael ovitz will handle any proposals but there's nothing confirmed yet. former president of the walt disney company. 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. >> we have breaking. the singapore tourism board chief speaking to bloomberg, saying singapore is seeing a 25%, 30% drop in tourist this year on the coronavirus outbreak and that it loses 18,000-20,000 tourists per day on virus fears. we have also heard from china's national development and reform commission, officials saying rules stopping firms from
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reopening are not good and they will work to reopen businesses smoothly. let's see how the coronavirus outbreak is impacting the markets and bring in sarah. we are seeing asian equities trading at the cheapest level against u.s. markets. to dust do investors see upside in bottom fishing? sarah: they do. atn you look at the spread the ratio on the s&p 500 at 18 .9, compared to the asia-pacific index, the spread is a record. today andking earlier asian stocks are super cheap compared to u.s. stocks, so much so an upside is predicted of at least 20% but the guest pointed out that investors need to be
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patient, this is not a quick trade, it might be worth adding asia stocks to hold onto for years to come. he is not alone, the last two podcast,have had on my both our china bowls and both and both haveulls said they would use this opportunity to add china stocks. >> what are they looking at this week? >> coronavirus is first and foremost, there could be a potential peak in the virus later this month, but there are other things going on. alibaba will report later in the week, a large heavy in asia stocks. in the u.s., we have jerome powell coming to capitol hill. the humphreyving hawkins testimony. that will be a big one in the
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next two days. we also get u.s. inflation data, and you can't for hit -- forget the new have your primary. investors might focus more on the u.s. election. isthat's why u.s. policy front and center again. we are getting some lines from intel, the company saying it won't be attending the mobile world congress in barcelona, citing concerns over transmission of coronavirus. this comes as other major companies, including amazon, sony and ericsson have pulled out of the event and barcelona over concerns about coronavirus. one event that has been somewhat impacted but still going ahead is asia's biggest airshow. kicking off in singapore today, no surprise that the coronavirus is the main topic of discussion and the main reason companies
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and guest have pulled out this year. >> the main cry i am hearing is held from the entire tourism industry. from the entire tourism industry. there is anecdotal evidence of business drying up and that is not surprising given how much china contributes. >> there will be pressure on all of our customers, chinese customers, anyone who touches china, and anyone who flies in the asia-pacific region. the good news is, oil prices will probably be a little lower, so that will help, but there will be challenges for our customers. >> we've taken precautionary measures in singapore as well. there is a short-term impact but we need to manage that and follow the guidelines. >> helicopter deliveries are expected to rise this year from 2019, supported by new models. the industry continues to
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rebound from a downturn that hit bottom four years ago. let's get to singapore. haslinda amin is there. haslinda: with me is bell helicopter asia managing director. it is his first singapore airshow you'd good to have you -- airshow. an increase ing helicopter sales, why is that? >> he comes down to the markets we are looking up you'd we don't expect a large increase but a positive outcome the next couple of years. we are looking at the bigger private-public market in the asian market. haslinda: is it driven by government spending? >> a challenge with quantifying is sometimes you have a big deal in one year and it might take a
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couple of years to get the government to purchase again. some of the governments around here, 2020 and 2021 will be big purchases. specifically we had a tender out of australia for 16-20 aircrafts, so we will be focused on that for the next few months. air --a: any anecdotal evidence that coronavirus could affect your growth in the next 12 months? david: we are all looking at that. it is still brand-new and were trying to figure out what will happen here. we have offices in china that have had to close. i think there's going to be some type of impact but it will depend on how these countries react to the virus. haslinda: how are you looking to mitigate the effect of the coronavirus should hit the company? david: we already have plans in place and singapore government has helped us provide the framework for those plans.
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of wholready got a plan will be in the office and who won't, and critical tasks that have to be done. we're working with the government in singapore and we are planning for the future to continue our business. haslinda: the oil and gas industries are proposing a drag on your business. how is that working, and is there clarity in the next couple of months? david: when we talk to our partners, it will probably remain flat as it is right now and has been viewed that's not a huge market for us in asia-pacific. on larger aircraft coming up -- coming out, that's something we will look at. we are really focused on government sales. haslinda: is the stronger dollar impacting sales in the region, because a lot of sales are done through the usd. david: we have a lot of international suppliers, so i
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stronger dollar can help us when we purchase parts. hopefully we have a balance. we haven't seen a big challenge in the asia-pacific yet, but it's always a challenge when we are selling outside the u.s. to international markets. haslinda: there's been a lot of talk about upward mobility as we look toward the new economy, the fourth industrial revolution. how are you positioned for that? right away, we changed our name. if you look at what our ceo is doing, alaka's -- a lot of focus on mobility. fullst came out with a electric is, and were also looking at the framework of the market. building the platform is one thing and we will all compete on the platform, but the infrastructure itself, how these smart cities are going to go down that path, we are putting a fair amount of work and innovation into that, how are you going to get on your air
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toi and fly from point a point b. haslinda: it is an increasingly competitive space. disadvantagess or do you have compared to your arrival? val?i >> we take off a vertically but transition to horizontal flight. example of anect aircraft performing wonderfully for the marine corps, and the ability to take off vertically and fly horizontal we -- horizontally quick, we think that will be an advantage. haslinda: there's also a lot of talk about air taxis. realistically where will the demand come from, and how soon do you think this will be a reality? david: there is already demand for air taxis today.
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in jakarta, we have a company that can pick you up to the airport and bring you anywhere in the city and 10-15 minutes. it willpent time there, take u.s. long to fly from singapore to jakarta as to take a taxi from the jakarta airport to hotel. so having the air taxi service, i can cut the time down to 15 minutes instead of an hour or sometimes two hours. if you look at the philippines, we are also doing air taxis around there. also new york city, places like that, they are using helicopters as air taxis. the ability of the new air taxis is reaching more masses of people who can have the funding or budgets to use them. haslinda: how do you scale it and make it more accessible to people like me? david: it comes to the infrastructure and design of the platform. one of the big costs and helicopter is the engine. you're spending a lot of money just to pay for the gas. if we can get to a hybrid or
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electric vehicle, we can reduce the cost of the operation. instead of $1000 per hour, we get a much lower number, and when we work together, as with car sharing, it gives you opportunities to get the price to a level we can afford. haslinda: what did you've u.s. the biggest challenge in the industry in the next 12-24 months? david: holistically right now, the coronavirus is a challenge. regulations in the asia-pacific. right now in the u.s., we have the faa, and we have europe. in asia-pacific, each country has its own regulatory and were trying to get them to be one of across the board. it makes it easier when we go in and fly. when we work on aircraft, we have an overhaul. having one regulatory would be a great start for us. right, david sale with us.
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if you take a look around, it looks like it has been a pretty muted morning. i've covered the airshow for many years and this must be the quietest. we are talking about the coronavirus and how it has impacted attendance. more than 70 international companies have pulled out including the likes of raytheon and lockheed martin. >> really a sign of the times. at thea amin there singapore air show. tech giants are pulling out of the mobile world congress, the next big event to be impacted by the coronavirus. also carbon markets. just a list of things being disrupted by the outbreak viewed we will -- outbreak. discuss how the
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coronavirus can put a spanner in that plan. spanner in that plan.
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>> you are looking at live pictures of a press conference by the national development and reform commission in china. they are saying there is a huge gap between mask supply and demand amid the coronavirus outbreak viewed only 76% of mask makers have reopened and they are working to further boost mask production. this as the death toll continues to climb past 1000 and infection cases in china top 40,000 viewed they are saying they are -- 40,000. they are saying they are working to further boost mask production. seeing -- let's head to india, where the counting of votes for the delhi assembly election has begun about 10 minutes ago.
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this is the first major ballot box test of the prime minister's religion based citizenship law that has caused nationwide protest. underway.nting is regional editor has more. what are we expecting to see as the day plays out and expectations for outcome? ruth: we are looking at getting an indication of how the vote counting is going within a couple of hours. at this point, exit polls are showing that the local party is theg to be victorious over prime minister's ruling national party, which has night -- has not held delhi since 1998. if the local party maintains the government here, it will be the third straight electoral setback for modi since he came back to
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power last may. >> we have seen protests against the citizenship law. what have we seen in terms of the types of campaign the party has put out? an extremelys been bitter election campaign. two key campaigners were banned from campaigning because of the tone of their speeches, essentially directing violence against protesters in delhi. party is saying these protesters are antinational and a threat to india. we will see in a few hours from the poll results if his party was successful in its portrayal of demonstrators. >> thank you very much. our southeast and south asia government editor. we are counting down to the open
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of the session in india. viewedorter is in dubai we saw some -- dubai. how is the trade setting up today? days have been pretty volatile. we've seen interest from foreign institutions. yesterday, domestic investors so $100,000 of shares in the domestic markets. finally at close, it closed higher viewed the nifty bank has pressure. yesterday's session was down 200 points, but finally ended the day up about half a percent. this will be crucial because we
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will not be able to montane -- maintain the momentum toward a record high. this is an area where there is constant selling and we've not managed -- since we've hit those record highs. the broader market is functioning in lower volume. it questions the quality of the moves you're seeing on some stocks. seey's session, you could an initial bounce opened but then we have to see how the rest of the day shapes up. >> thank you so much for that. ahead at the indian markets. we will get more on the delhi election. this is bloomberg. ♪
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>> breaking news, the latest guidance from honda on their factory operations in china, saying they are aiming to restart five chinese factories on february 17. that would be next week on monday at the earliest. we have seen guidance from different automakers including ford and tesla, already resuming
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operations. general motors restarting this week. honda is now saying they will restart five china factories on february 17 at the earliest. we have been talking about the coronavirus, it has wreaked havoc on the airline industry with increased travel restrictions, pared down schedules and decrease in passenger numbers. disrupting attempts for the airlines to go green. , talk to us about what could be an unfortunate effect of this scenario. dan: even before the coronavirus, airlines will -- were dealing with flight shaving, the environmental impact of flying around the world. delines are hard to
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carbonized. the united nations has a program ia that sets a baseline of omissions, and anythingwill offset over that baseline somewhere else in the world. to hem inhe plan t emissions from airlines. >> any particular airlines impacted? dan: the baseline was set last year and this year and because of the coronavirus were seeing a lot of cancellations and reductions in china, so the baseline will be lower in the carbon offsets will be higher. eventually, airlines will have to start paying for their own emissions above the baseline and they will impact any airline that has exposure to international china --
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international travel in china. global airlines will pay the brunt of this eventually. what about specifically in china? chinese airlines contributed about 13% of overall air they are part of the grounding effort. dan: that's one of the big things. tonese airlines are going see majorly reduced emissions this year, and this program from the yuan is for international -- the un is for international travel. might eventually include things like airlines for carbon reduction. these airlines will eventually have to be included in the
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counting scheme somewhere. joining us from singapore, our asian energy reporter. we will have plenty more on the coronavirus impact on airlines in the next hour. we will hear exclusively from the singapore tourism ceo viewed he sees a 25%-30% decline in tourist arrival. >> we continue to see major events being affected, the global air shy -- airshow quiet. still, the markets looking buoyant, hong kong up over 1%. a positive picture on the mainland. this is bloomberg. ♪
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and save even more when you say "bring my own phone" into your voice remote. that's simple, easy, awesome. click, call or visit a store today. >> we are coming to you live from the singapore air show, almost 11:00 and the lion city. i am haslinda amin. paul: and i am paul allen in sydney. the coronavirus death toll tops 1000 in china. the world health organization is in china and monitoring the outbreak as workers return from the lunar new year break. praise for his handling of the virus. the city has avoided the panic and hong kong and other places. this is "bloomberg markets:
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asia." ♪ haslinda: asia stock markets are advancing as investors look past the impact of the coronavirus. let's get the latest on the markets with sarah in new york. how is it looking? sarah: pretty green. a risk rally across asian markets at the moment. aboutt the csi 300, up 6/10 of a percentage point, a very broad-based rally in the hong kong hang seng, up 1.3%, only to stocks trading lower out of 50 in the benchmark it. spi nowean cost be -- ko less than 2% away from the pre-coronavirus levels. s&p 500 futures are extending
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gains after the index closed at a record high in the u.s. trading session. since we are seeing such a buoyancy in the market, were also seeing a lift for many of the macau gaming stocks. mgm, galaxy entertainment, all near 1% or more. they had been under a lot of pressure over the last couple of weeks but today we are seeing a nice rebound. all right, thank you. thedeath toll from coronavirus has climbed above 1000 as the chinese province at the epicenter of the outbreak reported the highest number of fatalities yet. health also removed two officials from their posts over criticism of their handlers him -- handling of the epidemic. selina wang, what is the latest of element? -- latest?
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the number of confirmed cases is now more than 42,000. the mortality rate is expected to come down. estimated that once all of those new pieces are accounted for. where the outbreak began, they fatality rate may be higher at 18% for the patients with severe symptoms. that is according to estimates. according to the world health organization, it is optimistic, it is a good sign the numbers are stabilizing but it is too early to say whether containment has worked. countries around the world are still on high alert. we have four more cases in the u.k., bringing the total to eight the government is tightening quarantine rules. have aead is likely to
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significant effect to global growth. there are supply-chain effects and lower commodity prices. we are seeing more cases outside mainline china as well. we heard about the swiss alps and paris. what is the situation in hong kong? yvonne: we just heard from carrie lam saying they will continue to inspect and disinfect a public housing estate were they found two confirmed cases of coronavirus. a 62-year-old woman contracted shedays -- the disease and lived above a man who had contracted the virus. they were talking about the
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plumbing situation and now there is a concern that they are also looking at whether the virus is airborne in any way. that's the latest. theie lam also talked about shortage of facemasks and speculation that they would be controlling price gouging. she says there are no plans to enact emergency legislation. when it came to the quarantine of people hear from china, they say there is no need for a full closure of the border checkpoints because they said only 52 people came into hong kong from china as of february 9, or on february 9, i should say. more than 100 people were evacuated in that building, and four people have developed symptoms after they were evacuated. we will continue to monitor the situation. carrie lam also speaking about ruling out any possibilities at this point, but the government
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is trying to alleviate concerns on the ground when it comes to the panic we have seen. ofl: we haven't seen a lot president xi since the virus began but he's made a public appearance now. what is the significance? hospital inisited a a rare appearance since the virus started to escalate a month ago. ,hortly after this appearance they removed some senior officials. this has become one of the biggest challenges to president xi's leadership, with questions about transparency and speed in the early days of the virus. blame has mostly been placed on the local level. xi might have been taking a step back.
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he had been in wuhan earlier, but now state media is saying xi is in the middle of the government response and you can see him in the street mingling with people, which is quite rare. he was wearing a mask and having his temperature taken, and it's a way to show empathy to the people of china who have had their lives upturned because of the virus, the travel restrictions, the new controls put on cities viewed this is a way to show that the government therying to respond to people's frustration. yvonne, some factories resumed operations but the business fallout continues to spread, right? yvonne: it seems like things are just beginning when it comes to the fallout. a handful of manufacturers have said they have resumed operations. tesla reopened its plant in
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shanghai and ford. caterpillar saying most of their manufacturing plants are back online. you still see some cautious automakers, honda just recently said they will not be reopening their plant earlier than february 17. that is following the likes of a volkswagen and toyota in the cautionary warning. it's not clear how many workers we are talking about that will be returning to work. not sure if they will be at full speed. foxconn as well resuming production of its iphone site. there was confusion because only , we reported,conn had told employees they could not determine a date to return to work. this goes to show the uncertainty that many in the global tech and auto supply chains, what they are dealing with right now. man --ll right, a von
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and selina wang. we are going to start with indonesia, which will boost spending of about $9 billion air max for villages and schools to spur growth and counter the impact of the coronavirus. the prime minister says the money will be given out in the coming months ahead of the original schedule. southeast asia's biggest economy expanded at its weakest pace in four years in 2019. that was in part because of the trade war. moving onto singapore, there could be a slump in tourist arrivals up to one third this year because of the virus outbreak. the tourism board ceo told us that while visitor numbers will bounce back eventually, the
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short-term impact is already proving significant. >> the main cry i am hearing is help from the entire tourism industry. there is a lot of anecdotal evidence of business drying up but that is not surprising given how much china contribute to our arrivals. u.s., the latest on the breach with equifax, the uss charged for members of the chinese army for the hacking of the credit agency. attorney general william barr says this is a reminder to china that the u.s. has the ability to track down hackers and prosecute them. the breach exposed to the personal information of almost 150 million americans. equifax told us the charges are a significant step forward for the data industry. attackerst that the were the military of a foreign
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government raises the stakes and the bar for all of us. as the attorney general out, is not just equifax, it was multiple companies. ukraine, calling on the lockbox over from the boeing 737 shot down last month. the islamic republic is under pressure to provide more information about why the plane was targeted and why all 176 people aboard were killed. state media says iran has no current intentions of releasing the flight recorder. 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. thank you so much. still ahead, we look at the implications of a possible new delhi election loss for modi's party and what it means for some
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of his controversial policies. this anxt, fetch if assessment of china's economy in the coronavirus outbreak, after warning that the third quarter growth could slow to just 3%. this is bloomberg. ♪
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haslinda: you are watching "bloomberg markets: asia," i am coming to you live from the singapore air show. paul: i am paul allen in sydney. we are tracking the global spread and economic impacts of the coronavirus. joining us, we have fitch director andrew fennell. you have various growth scenarios for china. i wonder if you can talk us through those. andrew: thank you for having me. earlynk it is frankly too
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to fully assess the economic impact of the coronavirus on china's economy this year, so what we are doing for the time being is running scenario analysis of what the various scenarios could be viewed our baseline scenario, which is shockively a sars-scale on china's economy, we estimate that could take quarter one gdp growth this year to about 4% and full-year economic growth to about 5.5%. that is versus our baseline, which was previously 5.9% for the full year of 2020. obviously if you assume smaller intensity or longer duration, that also has an impact on china's economy. different scenarios range from about 5% growth this year to 5.7%. on theseending different scenarios, take a
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worst-case one, what sort of impacts my two that have on credit ratings? ourew: i think from perspective, we continue to, and we have evidence to suggest otherwise, it is a temporary shock for china. under our most severe scenario, it would take growth this year to about 3%. quarter toowth this about 3% and full-year growth to 5%. if you view this as a temporary shock, it probably would not have a great deal of effect on our sovereign ratings. that's because our rating story for china this year was previously that the economy is slowing but the authorities greater use of fiscal easing measures in favor of more aggressive monetary easing measures was basically thetructed and made for sovereign easing profile.
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if it was more in favor of credit easing and fiscal policy haveaned, that could negative pressures on china. why compare it to sars when governments like singapore are already seeing the impact will be longer and deeper and just by the death numbers alone, it has exceeded sars? andrew: from an economic perspective, obviously there is the public health and epidemiology perspective that we would probably prefer to let experts opine on. from an economic perspective, we are talking about how economic behavior changes. right now we are just three weeks into the new coronavirus crisis. we've only basically seen economic behavior adjusting dramatically in china and also around asia for about a three
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week period. if we look at the data as of this morning, suspected cases are already showing as pointing down. if that continues, it took about two months for sars to peak and go down. i think there are some reasons to believe that the authorities can contain this more quickly than sars. since were talking about how economic behavior adjust, that perhaps means that the speed at which economic behavior adjust back to normality could be more quick. fromnda: given the support the government, given the what countries around the world are willing to do, will it be a v-shaped recovery when it comes? andrew: i think previous episodes we do have outbreaks of this nature, they do show there
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is quite a significant decline in economic activity for the period until the numbers stabilize. baseline, sars as a physically the evidence shows we had one quarter of basically two percentage points shaved off of economic growth, and by the third quarter of 2003, we basically had a recovery in china's economic growth. i think for the time being, we are assuming this sort of temporary shock. paul: i just want to interrupt you for a moment to give viewers the news coming across the bloomberg terminal. alibaba is said to be blocked from the hong kong stock linked to china, alibaba shares moving, easing about 2.5%. we will keep an ion that. we just got that news, alibaba blocked from the hong kong china stock linked. discussing, as you were
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out loaning -- outlining the virus as a transitory event, but i want to have a look at the bloomberg chart here, it shows chinese debt continue to rise. this is a question we've been asking for years. 275 percent of annual economic output. this?osely do you watch andrew: this is one of the most important figures we watch from a ratings perspective, and that's why going back to the point i made earlier, from a sovereign ratings perspective, we view the impact of the virus at the moment as temporary and not having material impact on our ratings view viewed our main ratings story for china this we have seenso far the authorities implement easing measures, and at the moment they are resisting more aggressive credit easing measures and we
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think they will continue to do so because they continue toward more fiscal easing. our measure of the fiscal and we have, reasons to believe that will continue to rise good as long as fiscal easing happens on budgets and it doesn't happen concurrently with the reversion to off-balance-sheet while the fiscal spending, i think we are ok from a sovereign ratings perspective to accommodate a period of elevated fiscal deficits for china. paul: all right, andrew finnell. -- fennell. keep up-to-date on the coronavirus by running the function on year bloomberg terminal. you will see the latest global figures from the cdc and the bloomberg news room as well as how specific companies may be exposed. this is bloomberg. ♪ loomberg. ♪
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paul: let's get a quick check on how chinese markets are doing. inhave to shanghai composite positive territory right now. there we have it. up 4/10 of 1%. the shenzhen looking flat right now. index offeavy price two thirds of 1%. we just had some 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
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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 kong dollar per share -- we are at
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about one hong kong dollar per share. david, alibaba aside, we have some data suggesting people being stuck at home in china has sparked renewed interest in stocks. how much truth is there in that? cool: there is a very chart from our china markets team, they tracked average turnover in shanghai and shenzhen, and they found that over the week where people were basically told to stay at home to avoid exacerbating the at thek, turnover was highest levels in 10 months. what that tells you may be is that to pass the time, it renewed interest in people trading in the markets as well, to deal with boredom and just to buying following the big
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drop last week. paul: what are we seeing in china's bond market? the equitynguine as markets? david: bond markets are giving us the same signals as the equity markets, which are doing well. it is reversing back up a little bit right now off of a high retraced all the way back. short-term growth expectations are being repriced and wreath rock -- rethought right now on the impact on the economy. at least today, yields are pushing back up, but forecasts are that they will become quite depressed into we get a better idea of what the impact really will be on the chinese economy. right, david
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ingles, thank you for that. , anl to come on the show exclusive interview with the ongapore tourism board ceo the virus outbreak. ♪
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haslinda: you are looking at live pictures of the lion city. we are in the middle of a trading day. show, an the sampler event that brought hundreds of thousands of years ago. this year, because of coronavirus, subdued participation. lockheed martin, the maker of the f-35. -- a lot ofe expect companies including raytheon are not around to make those deals.
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let's get the word headlines. thetart with the latest on coronavirus death toll. it has risen past 1000 and china. 43,000 casesost across the country and most are in the province of hubei where the outbreak began. 10 chinesenitoring provinces. president xi jinping visited a hospital in beijing on monday on thed the impact economy would only be short-term. in cruise liner quarantined yokohama has seen virus cases almost double with 65 new infections confirmed in the past hours.
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most of the new cases were japanese passengers with people from the united states, australia, and the philippines. people confined on board. countryand, the latest to reject a request to let passengers get off on cruise liners where there has been fear of a virus. they have been denied disembarkation in the philippines, guam, and japan. the ship operator says there is no reason to believe there are any cases of the virus on board. they have now hired a top agent to handle any inquiries that might come in. we are told that michael ovitz will evaluate any proposals.
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the founder of creative partners agency and is the former president of walt disney. global news 24 hours a day on air and at quicktake by bloomberg, powered by more than 2700 journalists and analysts in over 120 countries. i am su keenan. this is bloomberg. paul: asian equities on the rise even as coronavirus concerns linger. let's check in with cross as a reporter sarah ponczek. sarah: when you look at valuations, equities or climate across the asia region. whether you look at china mainland stocks. asian equities have been beaten up so much not only the past couple of weeks but over the past couple of years. when you look at valuations when
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it comes to the united states, weary that we are at a record discount. index, forcific example, they trade about 13.9 times forward earnings. at 18.9 timesades forward earnings. investors may be going bottom fishing. valuation gapis persists forever. thiserson said, looking at valuation gap, it implies an upside of 20% at least for asian equities. it tod it is well worth allocate part of your portfolio. haslinda: thank you so much. wegapore tourism in focus as
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kick off this airshow. spendingsm team says is likely to drop as much as 30% as the coronavirus spreads. decline inays the visitors from china will have a significant impact. keith: china accounts for about 1/5 of our total visitor arrivals. that will have a huge impact on hotels, restaurants, retail, inbound travel agents. wondering, can you quantify that for us? the kind ofify impact, will debt the tourism numbers? keith: the impact is not just
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confined to china. there is a larger impact rippling across the region and the world. travelers are deferring their visit to singapore and the region. we know, from when this crisis began to know, on average per day, we are losing about 18,000 to 19,000 visitors. lasts, we do not know. the longer this lasts, the figure could get worse. aboutt are you hearing tax hearing from players in the industry, and anecdotal stories you can share? keith: the main cry that i am hearing is help. there is lots of anecdotal
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evidence of business dried up givenat is not surprising how much china contributes. especially inbound travel agents china,ing in groups from over 1600truggling tourist guides and their livelihoods have also evaporated. >> could there be a crisis in the tourism industry? with some of the research, we have seen him plates contracted by 7% -- we have seen how prices contracted by 7%, 8%. keith: when we look at get past -azies, whether data past c -when we look back at past
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crises, people want to travel. i am quite confident that tourism will recover. the more important question is not so much how we are doing now, but how we are positioning ourselves for the recovery. positioningou yourself? keith: we are. for all eventualities. i would welcome a very rapid recovery but we must also be prepared for a slower recovery. clarity forany outlooks in terms of tourism receipts for 2020. >> this year, we might see a 30% of of 25% to incoming arrivals.
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alongd expect something the same magnitude in terms of percentage. paul: that was singapore tourism board ceo keith tan. as governments across asia work theeassure people about virus, singapore has been working to keep people informed. conspiracy theories have become almost daily occurrences in hong kong. what has singapore been getting right here? done the classic thing and got not ahead of the out ahead ofotten the outbreak. even before it was sweeping through other countries, singapore's prime minister said it was a matter of time before it would arrive in singapore.
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message onorded sunday, he reassured citizens that the virus was less deadly than the sars out rick 17 years ago. waslso said the city putting in measures and reassured everyone that there were supplies. calm is the kind of reassurance that has been lacking from elsewhere in the region. kong's response to the outbreak compare? >> with hong kong, it seemed to be one misstep or another. reeling from about eight months of antigovernment protest. the level of public trust in the government is already at all-time lows. add onto that a virus outbreak
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that originated in mainland china. thememories of sars and fact that so many people died in hong kong as a result of that. we have seen panic buying come along qs in pharmacies, shortages of and sanitizers, to avoid the virus. there is in general a sense of panic and mistrust in hong kong. think a lot of people look at singapore they see soldiers calmly delivering masks. herenk a lot of people wish they could see something similar from the administration here. haslinda: thank you so much for your insight. up ahead, we head to india.
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's party in delhi. could it be a sign of things to come for the rest of the country? this is bloomberg. ♪
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welcome back. we are coming to you live from the singapore air show. bitterlyts from contested state elections in delhi will be announced later today and things are not looking good for narendra modi's party. let's get our next guest. modi'sff, we know that narrative has been us versus them. mobile the results say about his power base, support base? >> we do not really hit the results. the results have been trickling
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in. that we shallnoon know the results. exit polls suggest it will be a sweep for the encumbered government. i think this election campaign was an extremely vicious one where the bjp campaigned on hindu-nationalist issues including the new amendment to the citizenship law. on other party campaigned their performance in the past five years, bread-and-butter education, health, electricity, water, etc.. it seems that the exit polls were right and it was the other narrative that seemed to have nationalistbjp's
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agenda. in that sense, it is a defeat for the reputation of the bjp and narendra modi's alliance. that modi isem pretty strong at the federal level. supporttate level, his seems to be fairly patchy. >> if you see all these state elections that have been held after the general election went the bjp swept to power under modi, all of them have been unfavorable. was unable to form a government even though it was the single largest party. it barely managed to come to power with the help an ally.
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now we have the daily result -- the delhi. if the exit polls are correct, likely to suffer a repeat. -- suffer a defeat. this has shown up before, that provincial elections are quite different from national elections. modi canthat narendra carry through the bjp i think has proven to be wrong. state elections are often fought on local issues. havedelhi, the results somewhat more symbolic significance than some of the other states. a fair sense, it is assessment to say that state elections are decided on different issues the national
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elections. and it is the case that the modi magic could not carry the bjp through indifferent eventually elections. paul: considering the campaign , health,e incumbents water, power, very bread-and-butter issues. any conclusions nationwide? ronojoy: that is interesting question. conductede surveys before the election show that, for instance, on the controversial new citizenship votersmost 60% of l.a. said they were actually in favor of citizenship law. the same voters, when asked about their choice of the daily chief minister, they said they would for -- they would prefer
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the other candidate to the bjp candidate. pragmatic being quite , voting for the party or candidate that seems better poised to deliver for the next five years. most voters have given their preference. but seems, when there is a national vote, general election, the electorate still seems for and narendra modi. so it seems to be split. paul: maybe if we can look at this in reverse, we will see the at's national government religious citizenship laws, or those in any way a turnoff for
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those in delhi? the election showed that the majority of delhi voters did not have anything against the new citizenship law. but i think, in these provincial election and those earlier -- and all issues, it seems to be backfiring. of nationalction thees in state election and by and large negative campaign they have been conducted. it has been a negative campaign where they have talked about shooting traders -- shooting traitors. off seems to be putting some voters and at least backfiring in state elections
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like this one. if the opposition party has a narrative constructed around local and bread and butter issue , it seems to show that this narrative can trump the bjp's ultranationalist agenda. hi wascumbent party in del careful not to engage on so-called national issues like the citizenship law. they steered away from that to the bread and butter issues. thanks so much for joining us. india's markets just opened. let's get over -- let's get over to mumbai. how is today's open looking? lastter a selloff seen in
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trading session, we have a gap opening, across the 20 and 50 today averages. over 100 points now. up about 1% and the nifty 500, the broader market index also seeing some gains. the buying is across the board, couple of results will be in focus today is what is this is the earnings season. >>: the monthly stocks you are watching. >> that is right. what a move. 8%, 8.5%. open and closed
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yesterday. yesterday, the board approved issue price at 2.049. the stock is trading at all-time high. debtyesterday's game, it yesterday's gain. beed numbers, expected to 9%. subdued demand. it is underperformed, down 14%. i think the shareholders basically lookout for the sort of diffidence. a good dividend yield of about 89%. thank you so much for that. from india to the u.s. coming up, bernie sanders the polls against the judge has democrats -- against pete buttigieg.
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this is bloomberg. ♪
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haslinda: we are less than 24 hours from the new hampshire primary and bernie sanders appears to be leading in polls, followed closely by pete buttigieg. the two in the lead with very different visions. >> they really are. bernie sanders is going to be think,sonal favorite, i of many in new hampshire. he is from nearby vermont. lastn the primary in the election cycle. i think you walking expecting bernie sanders to win. ise bgh -- pete buttigieg
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certainly a rising star on the democratic side. he has gone into a solid second place in a of new hampshire poland. ofn, other candidates sort vying for the third place pot it will be interesting to see no only who comes first but also comes second and third. if you are joe biden or elizabeth warren, this is not a state where you can afford to finish too low. perhaps the biggest stakes here from warren, from massachusetts. joe biden is looking at to south carolina, which is his firewall , . paul: what are the implications for joe biden if he does finish weakly?
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campaignhard to run a where your central message is i have the most delectable against donald trump if you keep -- i am the most electable against donald trump if you keep losing elections. the biden campaign has been waiting to get to a state that is a little bit more racially diverse. still eating in south carolina -- still leading in south carolina polls. if your central message is that electability, it really does start hurting that argument. you see people give other candidates a look. paul: senior editor derek wallbank, thank you for joining us. michael bloomberg is also seeking the democratic nomination.
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bloomberg is the founder and owner of bloomberg lp, the parent company of bloomberg news. we will have special coverage of the new hampshire primary here on bloomberg starting tomorrow, 7:00 p.m. in new york.
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>> this is bloomberg daybreak middle east. topsoronavirus death toll 1000 and china. beijing sex senior officials at the epicenter. sackshink -- beijing senior officials at the epicenter of the outbreak. >> the main crying i am hearing is, "help." there is a lot of anecdotal evidence of business trying up. -- business drying up. >> markets are looking past the virus. asian equities ext


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