tv Bloomberg Markets Asia Bloomberg February 17, 2020 9:00pm-11:00pm EST
>> it is all about the economic fallout from the coronavirus outbreak. we are hearing from carrie lam, saying hong kong will seek nearly 28 billion hong kong dollars in order to implement measures against of this virus outbreak, revising the funding actually needed for the funding outbreak -- virus outbreak. we got the latest outlines -- headlines coming from a research firm saying china will be cutting gasoline and diesel prices on wednesday. really all-out efforts to support the economy in hong kong and mainland china. haidi: yes, this after the waivers we saw on highway tolls. the logistics and some of these highway related stocks outperforming. we are hearing comments from
south korea, president moon calling the current economic situation as an emergency. the rhetoric is not positive even as what we see the beginning of a stabilization for some of these virus cases coming out of china. certainly, the attention is on what regional economies are going to be able to do to support economic growth. let's take a look at what we are seeing on the markets. a milestone for chinese markets in recruiting some of those losses since the lunar new year break, but we have seen very little positive price action since then. >> absolutely. a little bit of a tempering of the positive tone we had seen. after we made up the post lunar new year losses, it is notable that you look at stocks on the mainland and they are trading lower, but off by just 0.1%, so trying to hold in, trying to
higherd continue to move with the cautiously optimistic town. off slightly to the downside. where we do see losses leading the way, that is in hong kong and japan. both the hang seng and the andei 225 off by 1% or so reduce the s&p 500 futures moving to the downside after closing at a record high on friday. u.s. markets were closed for the presidents' day holiday on monday. let's take a look at some of those apple suppliers and competitors after apple did announce that it will not be meeting that q1 forecast when it comes to revenue. you look at samsung, a supplier and competitor, trading a bit now and south korea, off by 2%. of these stocks are
having their worst day in two two weeks. one is bucking the trend to the out -- upside, xiaomi. we are seeing them see a little bit of a gain side. thank you. we have a few more lines coming from chick executive carrie lam -- chief executive of hong kong carrie lam. they have revised the funding measures, now saying they will be seeking nearly $28 billion hong kong dollars in order to fight this coronavirus outbreak and prop up the economy. the hong kong economy under pressure and in a recession. we are expecting the january unemployment numbers out of hong kong as well, as we continue to watch the carrie lam press conference. we are also watching the state in china giving a briefing. we could be hearing more about measures coming from mainland china in order to support the economy. we have heard from an industry researcher that china would be cutting gasoline and diesel prices on wednesday.
the pboc has refrained from any action today, but we have seen them inject liquidity in the past few weeks. briefing happening right now as we continue to see the outbreak of the coronavirus in china. the world health organization saying it is too early to tell if coronavirus cases are truly declining, as china reported nearly 1900 cases this morning, bringing the total to more than 72,000. let's cross to our china correspondent in beijing. what do the latest case numbers tell us at this point? all of course, we are waiting to see when we can call this a peak and say we can spot the trends now. there is some optimism around the numbers we have seen out today because those additional cases have grown at the slowest pace since the change in methodology last week.
almost 73,000 now globally. china.or so in in terms of the death rate, tragically that continues to rise. it is going to close in on 2000 in the next couple days very unfortunately. it is currently at 1868. the spread of the virus they think, is starting to weaken. any major outbreaks have been kept in check by these control measures we have seen applied in different ways and to different strengths across towns and cities and provinces across china. but as you rightly point out, the world health organization is putting some caution on this and saying it is still too early to say that the virus is in check. those officials on the ground here in china will be going through the data themselves and they will be meeting with patients, as well. we should get a clear indication from the who, which of course is
part of the united nations, who know the spread of this virus in the next few days. today are somewhat encouraging in terms of potentially a trend in slowing infection rate. of the people we are speaking to, almost every analyst, central bank, company is saying the impact is going to depend on the severity of how long this goes for. , theis it looking like economic impact in china? look, it is still very murky, isn't it? you spoke to the american chamber of commerce head and they said they are getting assistance from the chinese government and the u.s. government. it is a very different picture depending on which companies you are speaking to. some are running at near full capacity, some hardly running at all, and others in the middle somewhere. we also heard from the american
chambers of commerce in shanghai and they have been speaking to manufacturers and they are saying that most of them have their doors open, but they are nowhere near full capacity. almost 80% say they don't have enough employees. that speaks to the travel restrictions in place in china, the difficulty for these companies to get the employees back in the factories and offices. toyota has restarted one of their units. airbus has a production facility in that city as well and they have started duction, but not at full capacity. volkswagen is expected to restart some of its factories this week as well. the doors are opening for these businesses, but it is a question of the supply chains that have been ruptured. getting the employees back, working out quarantine, and health and safety mechanisms. in terms of the economic damage, we did see a survey from bloomberg economics, they expect
potentially third-quarter growth could fall from a previous survey of five point 9%. bloomberg economics saying, last week, the overall economy was really operating in terms of capacity at 40% or 50%, so there is still a long way to go and we expect in the next few days to get additional measures out to try to support. shery: thank you very much for that update. despite the risk off tone, the outlook for commodities has been a boost from the wave of policy support across asia amid the virus. our next guest says the epidemic delays and expected rebound in base metals and oil. we are joined by dominic schnider, head of commodities and asia fx macro at ubs global wealth management. always great to have you with us. we are seeing a rebound in some commodity prices, including copper, ion or, and aluminum. we have seen this massive
decline in iron or imports and this is only the figure for early february. already seeing that plunge. even if we see a slight rebound in prices, how sustainable will this be if we are not seeing a rebound in the chinese economy and the outbreak continues? >> i think we really need to separate what happened in february and what is clearly a write off in terms of economic activity. looking at the second quarter of china growth, first quarter's going to be below 4% year on year. the second half of the year toward 6%. that acceleration, that support we get for monetary policy, which may be in the short term just alleviates bankrolls, but the fiscal tide which kicks in in the second quarter starts to see demand coming back quite firmly. a little bit of pent-up demand for a favorable dynamic.
things to look bleak in the short-term and that is the reason why commodity rises have come down, unlike equities. commodities do not have the luxury to live in expectations. what matters now is the situation. things do not look great, demand is weak in some cases. that obviously doesn't help. if you look forward looking, you think about this acceleration kicking in, the virus situation starting to peak somewhere in the first quarter, i think you do have a very positive return from here. shery: there seems to be a lot of hope in don the stimulus measures coming out of beijing, but what happens if the shape of the stimulus is not as investors expected? what if it is focused more on the consumption side of things men in infrastructure projects, as it has been in the past? dominic: i think what we need to understand, first of all the liquidity injection really bankrolls the situation. right now, it alleviates, gives
everybody room to breathe. what really starts to help us in terms of the acceleration, you can do some tax cuts. that might help a little bit. that would be a little bit disappointing particularly on the metal side. what we expect on the metal side is that kind of support for investment. that needs to be driven by greater fiscal deficits. you can't do it indirectly through the consumer. i think that will be a disappointing story. it is different if you look at it on the oil side. some are plus 0.4 million barrels over the coming quarter, that would be sufficient. oil can live with indirect measures. i would say the metals need a little bit more investment from the government in infrastructure. haidi: i want to throw up this
chart we have put together showing what does look like -- and i want to be cautious about it -- but it does look like something of a stabilization. cases, even taking into account the change in methodology in counting the cases. even if you look at this trend, is the comparison useful in this instance? 17 years in, has the nature of china's production and demand changed so significantly that it does not give us a good model to compare to? >dominic: i think sars is useful in terms of what the market is looking at. the market will look at second derivatives. if that really decelerates, that is enough of an example that the equity markets will rally. commodities back then were in a completely different situation. you had a structural runoff in chinese moderate he consumption.
commodities did not really drop during that time. you had some other effects from the iraqi war, which impacted commodity prices. it is a very different situation to compare what we have right now versus back then. what we can say is an acceleration in growth historically comes with the best returns in commodities. if you still have that view forward-looking that growth will start to accelerate at some point, particularly in the second half then i think the idea that commodity prices will recover, i think it is still pretty much alive. let's really look back. equities completely neglected the virus. short-term, there was a little bit of a hit. in the commodity space, basically oil is down quite a bit. also some of the metals have been hit very hard. you do have the risk premium priced in, which is likely to be 5000 over the next few months. haidi: let me ask you about
gold. at aon prices are seven-year high. etf's are at a high. do you see an upside in insurance investments of gold? dominic: absolutely. from our perspective, we still ounce. 1600 dollars an we also need to think about the fact that gold withstood the shock quite nicely, it was really quite stable. it added to the diversification benefits that gold offers as an equity investor in your portfolio. i think the key factor to watch out is if the coronavirus triggers a broader easing, but also the fed, then it would do more than $1600. that needs to be considered. i think for that, it is a little bit too early. the message from the fed was we are on hold for now.
real rates are going to go more negative. the dollar also on the weaker side, even though it benefited from the uncertainty. that kind of reversal will still see an uptrend. with gold in a portfolio context, particularly for equity investors, i think you should hold it and look for more upside. haidi: all right, lots more to talk about. staying in with us. let's get you the first word news now. >> we are going to start with the rba, which has highlighted the coronavirus as a new risk to the global economy and says it is ready to cut if necessary. minutes from the banks last meeting shows that it expects the outbreak to hit australian export growth in the first half of this year. cashso said it is to fill difficult to assess the impact from the devastating wildfires -- it also said it is difficult to assess the impact from this
summer's devastating wildfires. apple is the latest company to issue a virus related guidance, as the outbreak hits factory output and demand for its products. the company said its facilities have resumed operations in china, but they are ramping up production more slowly than expected. that will constrain global iphone supply. apple said demand for its products in china, where it has an extensive number of stores, will be affected by store closures and reduce customer traffic. the u.k. hasnow, launched an unprecedented attack on the european union over terms for a post-brexit trade deal. speaking in brussels, the chief negotiator dismissed the eu's view that britain would have to abide by its rules as part of any trade will go -- trade deal going forward. they said they must be able to set their own laws to suit their own country otherwise democracy
would be undermined. voter support for japanese prime minister shinzo abe has fallen in the wake of the coronavirus outbreak. two of three new poles show that a public is dissatisfied with the way the government has handled the crisis. japan has reported more than 499 cases, most of them on board that cruise ship, diamond princess. th epolls come as new data shows japan's economy contracted in the last quarter of 2019 by the most in more than five years. global news 24 hours per day on air and on quicktake by bloomberg. keenan, this is bloomberg. still ahead, hsbc facing its third major overhaul in a decade. we get more ahead as the bank prepares to release its full quarter earnings. shery: bhp earnings surged 29%
shery: china's state council holding a briefing on the coronavirus outbreak. --are hearing from they will keep the state owned enterprises operational targets despite the outbreak of the coronavirus in china. we are now seeing more cases of coronavirus fred across china -- spread across china, but the rate of infection has declined significantly. we are also seeing news from an industry researcher that china will be cutting gasoline and diesel prices on wednesday.
we have seen more and more efforts coming from policymakers across china in order to support the economy. the pboc today did refrain from anymore market operations. 200 of course after adding billion yuan of one year medium-term loans on monday. we are seeing that press conference happening from the state council, now holding a press briefing on the coronavirus outbreak, saying that they virus impact will be temporary. this is the state asset regulator and this is device had saying thatce head operational targets will be kept despite the virus outbreak. thei: yes, just determination to support economic growth and hit those economic targets very much in message in terms of what we have heard from the chinese leadership. let's take a look at the ramifications when it comes to demand for commodities.
bhp's first-ever earnings surging on iron ore prices. they acknowledge that the impact of the coronavirus is creating short-term uncertainty. let's get you straight to melbourne where the bhp ceo is standing by for us. thank you for joining us. it was a robust set of result and investors are clearly happy with the dividend payout, but in terms of lacking the uncertainty of the business going into the next period, in particular if this last beyond the first quarter, what kind of impact do you see and what kind of impact do you see on investor returns if the issue is not contain shortly? i will just start with the business and -- end. clearly tragic impacts in terms of people, but demand is holding up, prices have held up in part because of these other supply-side disruptions. . issuesnot seen any
with receiving payments as think things will hold up. revise we will have to our forecast. so far, we remain reasonably confident about the outlook for the half calendar year. haidi: i want to get to iron ore in particular given how key it is for your business. iron ore imports. a record low as far back as 2015, where this data set began. given that we are almost 60% of your revenue in the first half was thanks to iron ore, is there a concern for a deterioration in pricing, as well as output? mike: so, if we look at inventories in china, they are not at unreasonable or unhealthy levels. there is more inventory capacity. at the same time as we have seen a bit of weakness in demand in
china, we have bad other supply-side -- had other supply-side disruptions. we also have to always keep in mind that the coronavirus is also impacting domestic supply metallurgical co al. that has helped give some strength to the market during this period of disruption or uncertainty. you have said that bhp needs more copper and nickel, as well. do you believe you will have support for major, multibillion, and day in terms of the -- m&a in terms of these early-stage deals? my strong first preference is to be securing and knowing we have options within the existing portfolios.
we have had some past success in that regard. it has been an area of success for our petroleum business and i would like to see more of that in copper and nickel. shery: what about transitioning away from your dependence on china given not only the outbreak of the coronavirus now, but also the slowing economic growth we continue to see in china? what are the key markets you are looking at and how do you plan to deal with a slowing economy there? so, and we've been speaking for many years now about how we see the chinese economy unfolding over time. one of the great things about bhp's portfolio is we have exposure to different markets, different points on the economic development cycle that gives us a degree of resilience and creates new opportunities for us. we will certainly continue with that and i would like to strengthen that further through securing more of these options
in future facing commodities. that will allow us to continue benefiting form china's continued economic development, but of course we are seeing other parts of the world develop as well, and we have good exposure to early-stage economic development, as well as midcycle and late cycle economies. there seems to be a dwindling pool of interested buyers for more coal operations. do you feel like bhp might have missed the window to get the right price for its operations or is that something you see being completed in 2020? mike: so, we have been clear on it -- it is such a small part of the portfolio. weown and operate one mine, have a one third stake in another mine, and that is it. that coupled with our outlook al, and we run lots of different scenarios around our commodities, and we
think they are biased to the downside over the long run. offered us an opportunity to exit for value, we would entertain that, but it is not a big part of the bhp portfolio. isdi: climate and emissions really top of mind particularly after the summit in australia -- summer in australia. the $400 million climate investment program from bhp has been considered to be too little by some, would you set out new emissions reductions targets this year? mike: it is important that we keep the 400 million dollars climate investment program in perspective or in context. it is one small part of bhp's ,verall effort on climate related to climate change. we have had a clear policy and we have been a strong advocate for action on climate change and we have been putting our money and effort where our mouth set
been. -- mouths have been. we will move to fully renewable power in chile. that will reduce our chilean operations output 60% and reducing our overall emissions output by 15%. that includes many years of clear, tangible action and reduction in bhp's scope one and scope two emissions. million investment program is on top of those efforts -- the $400 million investment program is on top of those efforts and we will be doing more of that. we will come back later in the year with specific scope 3 goals and updated science-based targets. shery: investors are expecting you to refresh your executive team later this year. what are the guiding factors for you in recruiting that team and will they come from outside the company?
so, i have the luxury as the new ceo of starting with a baseness that is in good shape -- business that is in good shape and they team that is high-performing and coming together well. as to the extent of the changes that will be coming, they will be announced in due course. i have spoken about one new role that will be focused on driving or supporting the team in driving technical and operational excellence. an announcement on that individual will be made in due course and we will be looking at internal and external candidates. just an update on your oil unit. what value do you see as offering a mining company? in your revisions of that division? like the commodity. we have great assets.
i've worked on both sides of the business. there have been things that i've got across from the petroleum side and the mineral side of the business around understanding of geoscience, performance management, safety related practices, and likewise we have taken some practices from the minerals side of the business back into petroleum. this is one part of an overall strong portfolio. it is this portfolio that is allowing us to drive great value and great returns for shareholders, particularly when coupled with a strong operational performance in the first half. i think there were still plenty to go, plenty of gas in the tank, and i'm very focused on achieving exceptional performance in this business. like i said, more to go. on the portfolio front, we will be looking to create a portfolio that fits the future. haidi: as you settle into this new role, the investor
expectations that you will possibly refresh the executive team as well -- would you be open to bringing an outside perspective here? want exceptional talent for this team. we already have great people in place. to the extent that we are bringing new people into roles, like this senior role i spoke about that is going to help with technical and operational influence, we will look at both. we want the best talent in this team. that is what we are going to need to unlock the true potential of this company. shery: thank you very much for your time, ceo of bhp mike henry joining us from melbourne. let's get a quick check it -- check of where markets are trading. the hang seng index under pressure alongside the shanghai composite, this of course after recouping losses since the lunar new year holiday. the nikkei also down 1.2%. we have seen the japanese economy in the fourth quarter really take a hit, even before
the impact of the coronavirus outbreak. y, down comes to the cosb 1.3%. the south korean president talked about the economic situation being worse than expected. they are preparing strong steps to help companies during the coronavirus outbreak. taiwanese stocks down 0.5%. watch out to the stocks related to apple. in the meantime, let's get the first word news with su keenan. su: thank you. we are going to start with the latest on the coronavirus front. china is saying there were 1886 d 98 deaths on monday. those figures represent a slowing down in the rate of new cases from previous days and they are in line with a lower trend. the world health organization has cautioned that it is still
too early to tell if the overall number of cases is really declining. the death toll for the entire country now stands at 853 people with just over 72,000 confirmed cases. meanwhile, china may delay most high-profile any what political meetings for the first time in decades because of the coronavirus. the national people's congress was scheduled to start in may 1, but the country's top leaders will meet before the end of this month to decide if it is still going ahead. about 3000 communist party members were expected to convene for two weeks of meetings, attended by president xi jinping. casinos in macau will be able to resume operations on thursday, ending more than two weeks of closures, which were designed to curb the threat of the coronavirus. the city has reported 10 confirmed cases, but has not had any new infections for 12 straight days. the current crisis could wipe out up to $3.3 billion in cash
flow to the city six casino operators. who, it says that cruise ship travel remains a manageable risk and it does not recommend a ban, despite the number of confirmed coronavirus cases from to cruise ships raising serious questions about containing the outbreak at sea. japanese authorities say they expect to remove all passengers from the diamond princess cruise liner, which was able to dock in yokohama, and has 454 confirmed infections. global news 24 hours per day on air and on quicktake by bloomberg. i'm su keenan. this is bloomberg. are seeing a bit of a mixed picture across asia. let's bring in our cross assets reporter. the apple news was a big one.
does it change the picture for investors in asia today? sarah: we do see markets probably lower across the region, but in conversations with investors today, overwhelmingly, the sense has been this was expect it, we new supply chains would be under pressure, it was a most inevitable that we might do this happen to apple. we have heard people say that it is good apple is transparent. thater today, they said this is absolutely going to be a test for markets, but apple is one of these companies that is so beloved by investors, it does play a very important role because it does have a heavyweight across global indexes. 90% in the past year. every time we have seen a setback has been a reason to. buy, not to sell investors still seem cautiously optimistic. the first quarter could be an ugly one for apple, but once one
day this all does subside, we should see a comeback. haidi: where are we seeing the most fallout in the markets? sarah: as maybe would be expected, we are seeing much of the fallout contained to technology. if you look at the msci asia pacific index, tech is the worst sector five far, down by 1.8%. health care is down 0.8%. down 1% more. if you were to look at the suppliers, we have discussed it more today, that is where we are seeing a lot of the effects. tech the worst performing -- stocks, we see pressure for aac technology, samsung. these are all suppliers to apple and many having the worst day in two weeks now. haidi: sarah in new york. let's talk about the outlook for asian currencies. dom, thanks for
sticking around with us. i want to show up this chart looking at the surprising amount of stability when it comes to the chinese currency since the coronavirus outbreak began compared to various points like the devaluation in 2015, that was chaotic. as well as some of the other pain points for the yuan. does that mean as an anchor currency for broader em particularly in asia that that shows pretty positive signals? dominic: absolutely. i think the fact that this has been so stable is a very good signal. i think we also need to understand that given the challenges that china has domestically, de-evaluating the currency heavily doesn't really help that much. stir unnecessary tension. keeping this stable is really part of the strategy for the time being. if growth comes back, we are looking forward to regain some strength.
if you ask man terms of investment. haidi: what are the implications from the cut in the loan prime rate on thursday? dominic: i think the reduction in interest rates may be reduced as a little bit of the attractiveness, but we want to see china stimulating quite aggressively. this is the most important thing that we want to see for the time being to see an offsetting effect, particularly in the monetary policy side. in more of the fiscal side, which we always expect fiscal deficits, that has a little bit more time. you probably want to see a little bit of the data coming into see more clarity about what is going on. i think emily, this is good for asian currencies. if you look at asia growth or growth dynamics, this matters
quite a bit. it is good for the region. chasing some of the high-yield or's. let's talk about the korean won. theas the biggest hit in sars outbreak. why do you like it? dominic: there are two thoughts to it. the korean won underperformed quite a bit last year already, so it is a currency that has been affected quite negatively from all the trade concerns in the first place. as i said before, we still hold a view that you are going to see acceleration in growth at some stage and i think that is going to help the korean won. if you look at what is doing well, i know there are some supply challenges at the moment, but the recovery we have seen in the activity toward the end of last year was pretty much tech driven.
that is also an area we think will benefit to the korean currency. the rightt give you kerry versus the dollar, so i think you can actually combine it in the long position versus the dollar. it gives you that cyclical recovery potential in case the virus outbreaks and all of these fears start to ebb into the second quarter of this year. shery: we are expecting january hong kong unemployment numbers this afternoon. i wonder what your take is on the hong kong market. valuations seem to be pretty good. showingt with bloomberg how gloomy everything feels when it comes to investor sentiment, business outlook and so forth are not only affected by the virus outbreak, but also by the ongoing protests. dominic: clearly, if you think about the unemployment rate, that has room to shift higher.
we are looking at the unemployment rate there. it may be even a touch higher. that is where we can go through 2020. , -1.3%.th, last year clearly, hong kong had very hard. it will be a story of two halves. the first half would look quite uninspiring, quite negative. the second half within see positive growth development kicking in. when it comes to the equity market, there is a lot of negative news factored in. to theare trading closer forward-looking basis, you should not look for that much downside anymore. i think we have a neutral position on hong kong. what you can think about is it has a little bit spike. if you don't feel that raven terms of cuts seeping into the equity market, may be selling is a strategy with some of the local market indices. this may be a yield enhancement
shery: the hong kong government seeking over $3.5 billion in funding to counter the coronavirus outbreak. the latest from hong kong now. we have already seen a series of fiscal stimulus measures coming from hong kong dealing with the protests, now we have the coronavirus. how significant is this batch? >> they are going to need it now that we see the number of infected cases have risen to 60 here in hong kong. the government was already preparing for bold measures to offset this blow to the economy. we were already in this recession, and now the fresh
funding for the virus related issue is a development as well. carrie lam urging lawmakers to pass this funding. we also got an update on the diamond princess cruz. we had more than 300 hong kong residents that were in that cruise ship. the question a lot when it comes to these quarantine sites, some of the sites in question are considered right now has led to backlash from people in the neighborhood essentially saying, "not in my back yard." reiterating that it is essential they open up more of these quarantine sites. what the only have right now only houses 150 people. they have hundreds coming back from that diamond princess. they are essentially going to need more land and more beds for people because this 14-day mandatory quarantine cannot be at home.
the risk is too great. as for the remaining 10 that decided to not get on board those charter flights, she also voiced some concern because there will be difficulty, she said, for those to get on a commercial flight back to hong kong once people know that you are coming from that cruise ship. once you do land, you will also be stopped by immigration. you might end up with the same situation. all right, yvonne and hong kong with the latest. let's get the latest on hsbc, one of the banks in the spotlight today as it gets ready to report earnings. the focus will be on its business strategy. this will be the third overhaul in a decade. it could involve thousands of losing their jobs. david, what are you looking at? david: we will find out in the next 90 minutes or so. itking at the estimates, little bit lower for revenue and profits compared to the last three months.
in terms of the changes, we have three major areas potentially to watch and a combination of scenarios. the first's reshuffling in senior management, potentially a new deal. we understand that the bank is seriously looking outside the bank or that. for the business itself, they may pull back and give us enough date on how they are disposing of some of their assets out died. countries like oman, turkey for example, we might get an update on that. hsbc is progress in disposing of its retail business in france, as well. your point, job reductions, that could come, we don't have exact numbers right now. certainly, when you look at stocks, because of these changes sayingup, goldman sachs you have restructuring costs,
coming with that changing of a strategy, lots of things to watch for hsbc coming out, as we hour and in the next 10 minutes. shery: we will be watching closely. we will also be speaking with the hsbc cfo. for our viewers following the banks earnings release, don't miss that interview, that is after 2:00 p.m. if you are watching and hong kong, 5:00 p.m. in sydney. we are also counting down to the open of the session in india. our reporter is standing by in mumbai. up?are trades starting we are looking at a mixed picture across asia right now. [indiscernible] moderate to slightly lower in the session. down by about 0.2% right now.
a fair amount of weakness in across the board yesterday. space did well. what took the biggest hit -- [indiscernible] the oil and gas space -- one of the top two heavy weighted oil companies -- [indiscernible] today's session is going to be interesting. we will be watching for all of those factors. becific newsmakers will looking at specific reactions. haidi: we do have news of the consolidation at the network 18 group. how does that work out for the subsidiaries? we are talking about network 18, tv 18. consolidating the tv broadcasting, trying to make it
a more leaner company, making it more valuable to shareholders. arbitrage available for traders. you have 92 shares that shareholders will get for every 100 shares. 191 shares for every 100 shares. keeping this in mind, the biggest downside -- [indiscernible] to may actually see reaction all of these companies in the session today. haidi: all right, thank you so much for that. up, hong kong retail the session.ing home prices are resilient. how long will that last? more analysis next. this is bloomberg. ♪
look atet's take a asian markets. lost some momentum from the gains of previous days. ,hinese markets have regained recouped some of those losses since the lunar new year holiday. the hang seng traveling lower by 1.3 percent. over on the mainland, the shanghai composite up i about 0.4%. we have seen some gains in small caps. really painting a picture of
caution across the region, even as we see a little bit of a stabilization in the numbers of virus cases reported out of china. shery: let's turn to hong kong's retail sector. it could stage a walkout in a bid to press landlords for rent reductions. a report citing unidentified people saying that more than 200 retail shops and 50 brands plan to go on strike tuesday as the city begins to grapple with the impact of months of protests, and now the coronavirus outbreak. amid all the turmoil, hong kong's home prices appear to be bulletproof. so, really, home prices have proved to be super resilient even after the months and months of protests. that's right. if you look at it, between june and now, prices have come down just 6%, which is nothing, when
you think of hong kong as having the world's most expensive prices. hong kong home prices have been very resilient. what i've written is that there are several reasons for that, which i can go through. basically, there are four reasons why prices and hong kong have been resilient. interest rates are so low, as we all know. second, leverage is very low. says is some data that something like over 65% of homeowners and hong kong don't have a mortgage, so that tells you how most of the homes here are owned by the people who live in them or invest in them. third, unemployment is still low. even though we have seen the protests and now the outbreak has brought about the unemployment rates to 3.4%, they are still a lot lower than the
last time hong kong prices collapsed. fourth, supply. we have developers in the city that can control the pricing of houses and homes. year, theye, last thought the economy was going down with the protests, they and they only released around 14,000 apartments. in contrast during sars, they continued building even as the economy went downhill. for all those reasons, hong kong home prices are going to stay resilient. obviously, if the economy tanks even more, there will be declines, but at the moment, all we have seen is a 6% decline from record highs in june. haidi: very quickly, commercial properties track to the broader economy much more closely, doesn't it? >> exactly -- he app. commercial properties, offices and storage, you guys talked
earlier about retailers complaining about landlords not lowering the rent. at some point, they are going to have to because the stores are empty, offices are empty. this happened even before the protests and the virus outbreak, we were already seeing declines in office rentals and store prices. yes. thank you so much for joining us. our bloomberg opinion columnist in hong kong. more on "bloomberg markets: asia" next. this is bloomberg. ♪ ♪ sometimes your small screen is your big screen.
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reporter: it's almost 11:00 in singapore and 8:30 a.m. in mumbai. >> i am paul allen in sydney. we are entering the last hour in session. here are the top stories. apple warns that the coronavirus outbreak will lead to a revenue target miss. >> hsbc is set to announce earnings and another major overhaul of business. cuts down and management changes are expected. paul: singapore gets set to to the to counter risks
virus outbreak. this is "bloomberg markets: asia." get straight to the markets. sarah ponczek is in new york. look at the numbers. korea, hong kong, japan, all down more than 1%. it seems like apple is the catalyst. reporter: apple does seem to be the catalyst. it is one more reminder that the risk from the coronavirus at this point in time is not measurable or quantifiable and there could be unknowns going forward. markets right now are trading at lows at the session. csi 300 giving up gains after a strong comeback over the past week or so, down more than 1%. the hang seng and nikkei two to five on track for the worst 30.ion since january
both down more than 1.2% at the moment. even u.s. futures right now after markets were closed for the presidents' day holiday, lower, down by 4/10 of a percent after closing out a record high friday. across the view asia-pacific msci. asia-pacific index, down 1% at the moment. leading the declines as the technology sector, now down more than 2%, the worst by far. the next worst is health care, down half of 1% -- down 1% or so. every single sector is in the red. real estate is roughly flat on the day, but still modestly lower. thank you so much for the update. let's stay on the widening impact of the coronavirus. world health organization says it's too early to tell if cases are truly declining.
there is a report that nearly 1900 new cases this morning will bring the total to more than 72,000. let's get to our team on the ground. yvonne man is in hong kong. tom mackenzie, let's start with you. what do the numbers tell us? the overall number we got out of china now it's almost 72,500. . crucially, the numbers out of hubei province, the epicenter for the virus, they rose about 1800 additional inspections over hours.t 24 that rate of increase is actually the slowest we have seen since the methodology for counting these viral outbreaks was changed last week. that is a positive trend. the death rate unfortunately continues to rise. 1868. we heard from the premier, thing
that he thinks the spread of the virus is starting to weaken and they have managed to control any major outbreaks as a result of some restrictions and controls they put in place in hubei and other provinces as well. you point out, the world health organization says it is still too early to call a peak for this. they do have officials and experts from the world worth -- will world health organization on the ground. we may get more commentary from them to add more transparency to the situation. we also had a study out of china suggesting that the majority of infections are mild, 80%, and the mortality rate is around 2.3%. that is giving a little more detail. the numbers are taking up, but the trend, may be, is downwards from here with a big caveat, from the world health organization. paul: we've got hong kong chief urgingve carrie lam
lawmakers for more funding. reporter: right. she says the government will be seeking at least $3.5 billion of funding just for the virus measures. we've already seen the economy in a recession due to the protests. this virus is adding to the case that they do need more fresh spending here to try and stop the virus from spreading. what we have learned so far is carrie lam is urging them to process the number of infected cases. the government is speaking about quarantined cases, trying to look for more facilities to house people, which has sparked a lot of protests from people in the public basically saying, not. carrie lam reiterating that what they currently have the facility , it only houses 150 people. they still have 300 or so hong kong residents who were on that diamond princess cruise who were evacuated and will be essentially coming back to hong
kong and facing this mandatory quarantine in these facilities. they can't do it at home because the risk of contagion is too great. as for the remaining 10 people that decided not to get on the charter flights, carrie lam also said she was worried it would be difficult for some passengers to get on any commercial flights if they know that they came from the cruise liner, and once they do, they would be subject to quarantine anyway. the hong kong government dealing with the situation now when it comes to diamond princess. also they have asked hong kong disneyland who has allowed and agreed to free up some land for quarantine sites. but it may take some time before we can actually get some more housing or quarantine sites. couplerom the last minutes, bloomberg news published a story about how china's aviation industry has shrunk dramatically. it was the third biggest in the
world and now it is 25th as capacity.re slashing what are some other economic indicators? reporter: absolutely. not a surprise given the number of passengers plummeted as a result of restrictions around travel and because many in china remain concerned about stepping out of their front doors, let alone getting onto an airplane and traveling to another city or town in china. we are also hearing about other state owned enterprises. they will still apparently try and hit operational targets, according to the government body that regulates and oversees. how they do that will be a question going forward, but it follows the premier saying that china will aim to meet its social and economic goals and targets. we've seen other measures. officials are reaching deep into the toolbox to alleviate the economic pain. we have seen cuts to diesel and any measure to
reduce the pressure that is on the individual consumer, but also the wider bid -- business community is being reached. the pboc is pumping liquidity into the financial system. we have seen additional softening of the quotas around loans for the real estate sector. and the finance minister said he wanted to see more targeted cuts around taxes and fees. , a key objective for many businesses as they seem to be getting their doors open and employees back to work, we had shanghai saying most members are back in operation but running at about half capacity. they say 80% of manufacturers cannot get enough employees into their factories. that remains a challenge, the disruption to supply chains. overall, bloomberg economics has been surveying economists and the prediction know for first
quarter growth out of china is around 4%. that is down from the previous survey of 5.9%. clearly economic pressure remains as policymakers are reaching for additional tools to alleviate that pain. and unemployment is expected to be weak, and it could get weaker from here. reporter: yes, the estimate at 3.4%, that is the highest we have seen in four years. we have already seen these numbers gradually pick up for most of the second half of last year from the political protests. it seems at this point, this might show more of the protest related impact, not so much the coronavirus. the flight disruption, the outbreak of the virus did not quite happen until the end of january. we might not see the full impact from the outbreak just yet in the latest numbers. perhaps that's why we heard from the financial secretary in a
blog saying the unemployment rate could deteriorate rapidly. he sees the effects of the virus tourismyond just related and restaurants. seems at this point we could see more numbers take up as we go. china correspondent tom mackenzie in beijing and yvonne man in hong kong, thank you for joining us. let's bring in j.p. morgan private bank head of asia investment strategy, alexander wolf, joining us on the phone from philadelphia. one of the big impacts we are seeing today on markets is apple saying that it is going to struggle to meet revenue for the upcoming quarter due to supply chain problems inspired by the coronavirus. this isn't the first story we have heard along these lines, but it is the biggest. do you expect to hear more such problems from supply chains and revenues? >> there is certainly that risk.
i think the expectation was last week that we would see production beginning to pick back up with people getting back work. of course, it was very slow. this week as well, it is slow to get production back up and running. people back to work given the quarantine measures as well in transportation. productionestart to in china continues, there is the risk that we hear more issues over supply chains. the: the timing of announcement was interesting, coming on a public holiday in the u.s. markets open where you are in about 12 hours. what sort of reaction? are you expecting to see? >> certainly futures are trading lower. this is always the big wildcard. while most economists downgraded the growth expectations, equity markets were expecting a first quarter great -- hit to grow. the big wildcard is around the supply chain.
it is not really linear, more exponential if you have a reduced supply globally and components into other manufacturers, it creates a real knock on effect that can make growth impact last be on the first second quarter and would force a further downgrade of global growth. to spook some investors and create concern over the potential effect this could have. u.s. outputs looking pretty much overvalued versus foreign assets. rotation anytime soon into perhaps undervalued assets here in asia like china, like hong kong? happen,nk for that to first we would need to see the dollar likely weaken and not just slightly, but more materially to see a rotation.
you would also need to see the rest of the world grows pickup. at the moment, it is hard to see that happening. i am not really expecting that rotation imminently. if you were to see a quick resolution, the virus contained and stimulus measures announced out of china that would give more confidence in chinese and asian growth, yes, you can see classic re-freeze should -- reflation type trade, but at the moment it does not look like those are in place. haslinda: having said that, how should a hedge strategy look like? we still favor the u.s. favoringnto the year the u.s. because of protection and downside risk. there's no way to predict what we have seen with the virus, but even with trade war last year, the u.s. moors -- was more defensive.
if anything, after the trade war , the u.s. is probably somewhat less exposed to a slowdown in china. of course with yields as low as they has come down, it is hard to add fixed income. it is still equities versus but you still have to look through this and think about what sectors you will see continue grow and whether that is certain assets of tech or health care still make sense to hold, but from a hedging perspective, there are solutions and products you can add to hedge or for -- portfolio because there's so much uncertainty at the moment. paul: i know one of the assets you like is yen bonds. can you tell us more? environmentin this of low yields, that is attractive. we are not seeing emerging markets fx perspective that
carry looks attractive in this environment. from em fx currency, the currencies also don't go overvalued by any means. with a relatively stable dollar, thisyield attractive in environment, particularly those looking for income at the moment. we do like that in this context of cycle and as a component of a portfolio looking for yields. private: j.p. morgan bank head of asia investment strategy, alex wolf, joining us on the line from philadelphia. sure to keep up-to-date on this developing coronavirus story by running the function vr u.s. go on the bloomberg terminal. you can find our quick take with the latest global figures with cdc headlines as well as how specific companies may the exposed.
be exposed. now let's get first word headlines with su keenan. reporter: we will start with the rba that has highlighted the coronavirus as a new risk to the global economy. and it says it is ready to cut if necessary. minutes from the banks last meeting shows it expects the outbreak to hit australian export growth in the first half of this year. it also said it is difficult to assess the impact from this summer's devastating wildfires. the bank maintained and easing bias. expectations are for rates to stay low for an extended time. meanwhile, apple, one of the big stories of the morning, is the latest company to issue a virus theted guidance miss as outbreak hits factory output and demand for products. the company says its facilities have resumed operations in china, but they are ramping up production more slowly than expected and that is going to supply.n global iphone
. apple also says demand for its products in china would be affected by store closures and reduced customer traffic. to the u.k. now. the u.k. has launched an unprecedented attack on the european union over terms for a post-brexit trade deal. brussels, monday at chief negotiator david frost dismissed the use of that britain would have to abide by its rules as part of any trade deal going forward. frost said the u.k. must be able to set its own laws that suit its country. otherwise, he says democracy would be undermined. for japaneseort prime minister shinzo abe has fallen in the wake of the coronavirus outbreak. two out of three new polls out monday show a public dissatisfied with the way his government has handled the crisis. japan has reported more than 499 cases, most of them, 454, are on board that cruise ship, the diamond princess.
the polls, as new data shows japan's economy contracted in the last quarter of 2019 by the most in more than five years. global news 24 hours a day on air and on quicktake by bloomberg, powered by more than 2700 journalists and analysts in over 120 countries. i'm su keenan. this is bloomberg. paul: thank you. still to come this hour, singapore is promising a strong budget after trimming its 20 gdp growth estimates as a result of the coronavirus. we will look at what to expect. haslinda: next we are looking ahead to hsbc's earnings. the banks business strategy in the spotlight with its third major overhaul in a decade. this is bloomberg. ♪ is is bloomberg. ♪
haslinda: hsbc is in the spotlight today as the bank gets ready to report earnings, but the focus will be on its business strategy. a third overhaul in a decade. this time, it could involve thousands losing their jobs. david ingles joins us with more. analysts have been saying hsbc needs to take more risk and if it doesn't do so, it needs to shrink, and fast. first, what numbers are we expecting? david: we will get to those comments. very interesting, those comments coming from an asset manager. to answer your question first, expectingentially roughly on revenue increased profit compared to the fourth quarter of 2018. the last three months of 2019. a slight deceleration or reduction in revenue and pretax
profit. pretext half it, median estimate of 4.2 poor -- $4.24 billion u.s. that's going to come out in a few minutes. paul: three overhauls in 10 years. what sorts of changes are we going to hear about that those previous two managed to miss? david: yes. compared shalom asset management basically say the current strategy says more risk, you get more returns, or shrink quickly. to the latter point in terms of job reduction, the trading depth is probably flagging. we probably will see reduction, although we have to wait on what the number look like. in terms of changing the course of the ship, the footprint, where they are, the kinds of businesses they are in, the
retail business in france, we are expecting an update on that one. that is progressing. we are also expecting the bank to withdraw from some businesses. sources have told us those assets are ranging from places in turkey, greece, and oman. the most watched aspect to this the reshuffling in management, potentially even a new permanent ceo. we understand the bank is seriously looking at candidates outside the bank. we may or may not get an update on that. when you take a look at the stock, it does seem like investors are not buying into the hsbc strategy. what is the outlook going forward? goldman sachs is out with
an interesting comment that you can see. because of all the changes happening, i will make it simple. because of all the changes happening, there is a possibility of restructuring costs. change comes with costs. that might weigh on the ability to reinvest in the bank and perhaps even give up dividends. on the watch about 37 minutes from now. paul: david ingles in hong kong, thank you for that. if you are a bloomberg subscriber, catch up with all of our interviews by using our interactive function tv . join the concert -- conversation by sending instant messages to our team and guests during live shows. check it out at tv . this is bloomberg. ♪ k it out at tv . this is bloomberg.
paul: let's get a quick check of the latest business flash headlines. cathay pacific has warned first half results see a significant coronavirus.of the the airline has been hit hard in the past year with pro-democracy protests eating travel to hong kong before the virus outbreak cut it even further. sales from hong kong and china account for about half of their total revenue. the airline has reduced flights to the mainland by 90%. first earnings, 29% prices,n iron ore allowing the new ceo to raise the dividend even as the impact of the coronavirus still looks to short-term uncertainty. the company also warned that it will revise down expectations
almost 11:30 a.m. in singapore we are in the middle of the trading day. we are taking a look at the benchmark. down by 6/10 of 1%. -- stop we are watching is some reports that there abandoning the casino bid, leaving mgm resorts the last man standing. thene time said to be leading bid with $2 billion in cash. 1%.htly lower, about half let's get a first word headlines with su keenan in new york.
reporter: we are going to start with china which says that there were 1886 new coronavirus cases and 98 deaths on monday. those figures represent a slowdown in the rate of new cases being reported. lowerre in line with the trend. however, the world horror -- world health organization has cautioned it is still too early to tell if the overall number of cases is actually declining. the death toll for the entire country now stands at 1800 63 people with just over 72,000 confirmed cases. itsa meanwhile may delay most high-profile annual political meeting for the first time in decades because of the coronavirus. the national people's congress is scheduled to start on march 5. according to the top leaders, they will meet before the end of this month to decide if it is still going ahead. about 3000 communist party members were expected to convene for two weeks of meetings, and
it would have been attended by president xi jinping. casinos in macau will be able to resume operations on thursday, thus ending more than two weeks of closure that were designed to curb the spread of the virus. the city has reported 10 confirmed cases of the coronavirus, but has not had any new infections for 12 straight days. the trading is estimating that the current crisis could wipe billion in cash flow for the city's six casino operators. finally, billionaire jeff bezos has committed at least $10 billion to fight climate change. earthannouncing the bezos fund and a post on his instagram account. the amazon.com founder and the world to richest person says the fund will start issuing grants in the coming months. he's been under pressure to balance amazon's need for fast delivery with the environmental
consequences of the rapid growth of online shopping. global news 24 hours a day on air and on quicktake by bloomberg, powered by more than 2700 journalists and analysts in over 120 countries. i'm su keenan. this is bloomberg. ♪ much.thank you very we want to get you some breaking news. all nearing a deal through security business to the private stg for moresdg -- than $2 billion. 30,000 customers ranging from banks to consumer goods and makers that helps companies confirm user identities and manage other digital security risks. dell nearing the deal to sell that security business to private equity firm st g for about $2 billion. for a deeper look now at the cross assethave our
reporter sarah ponczek. the big news from apple today. will that change the picture for investors? reporter: really dominating the action today. markets are trading near lows of region.ion across the and conversations with investors, ahead of markets trading earlier this morning, overwhelmingly investors were saying that we knew this was going to happen. we know the coronavirus had affected supply chain. this was almost inevitable because apple is right in the middle of all of this. if anything, it is good that apple is coming out ahead and being transparent. we should expect more companies to be coming out and saying the same about having a very rough first quarter. i spoke with jason brown at lexington investment partners. he says this will absolutely test the market, but when it comes to apple and the market at large, whenever apple has had a setback, it has but you on a better side of the ledger to be a buyer at that point in time.
we will see if that continues, but he believes if you truly think this will be a temporary effect, something that will bounce back after the first quarter, then you should continue on with the same outlook. not surprising that technology is staying the most full out. reporter: no surprise at all. you think about a lot of these suppliers to apple, a lot of semiconductor companies. the mscilook at asia-pacific, technology is the worst by far, down more than 2%. you look at some of the worst performers and you are talking about taiwan semiconductor, samsung, tokyo electronics. also asc technologies. a lot of these companies that do business with apple and get a lot of their revenue because apple is a buyer of their components, so it is no surprise that we are seeing a hit. it's also been one of the areas that has seen extended
valuations. paul: we have the u.s. returning to trade in a few hours, coming back after the holiday weekend. what should we be looking out for? reporter: we have a good amount of economic data coming out this week. when the u.s. comes back online, we will have fed minutes. we will also get market pmi. you also get inflation data by way of ppi. in hong kong, we will get inflation data. when it comes to broad market your eyesatch, keep on technology stocks. apple plays a very large role in the indexes, but we have seen an unbelievable run. 500,ook at the snp tech -- the highest p/e ratio since 2004 and even the nasdaq 100 at the highest about -- valuation by way of its earnings in a decade so make sure you are focusing on these areas. haslinda: apple, 60% in six months, that's not. our cross assets reporter, sarah
ponczek, thank you. let's focus on singapore. gdp estimates as a result of the coronavirus and plans to deliver a strong budget because of the threat. bloomberg's michelle jamrisko. the biggest focus is how big is the budget? there's a lot of mystery around the number. certainly singapore is at the start of a trend for the region in terms of unrolling this big package. they said it will be a strong package. to get into the mystery behind the number, we are looking at numbers from sars in 2003, which of course is imperfect given how much china has changed. at the time, singapore rolled out a $230 million singapore budget. that will probably be dwarfed
because we may be in an election year. there is a danger of underselling instead of overselling what they are doing to mitigate the impacts. on the other hand, malaysia in 2003, the last time the prime minister was in power, they unrolled a budget that was almost $2 billion in u.s. dollar terms. we have seen different economies grapple with it differently and different factors that are at work here at this time, but certainly i think you will see singapore addressing this on all fronts. they are targeting certain sectors that are more vulnerable, but also the impacts from last year that they are still trying to deal with in terms of the trade war and others. are there any specific measures in the budget that we should be watching out for? any highlights? reporter: i think aside from the virus were related stuff, we were already looking out small
and medium-sized enterprises. smes are traditional winners in the budget. singapore really wants to get these businesses out into the exporting, which has been made more challenging amid the trade war as well as the coronavirus outbreak. smes around cybersecurity help. i know a lot of these organizations are asking for more support from governments to train officials in their business to deal with cybersecurity concerns, with digital transformations, with exporting, and big issues like behind and trying to get some of these fast-changing and longer-term innovations. the other thing we will be looking at is labor. a lot of discussions around upscaling both because of a rapid aging population here but also trying to get the domestic population to be more competitive on the higher skill and and attracting foreign workers. haslinda: michelle jamrisko here in the lion city. cut in indonesia, buying
interest rates four times last year to spur growth. it has been on hold for the past three policy meetings and economists are divided on whether the bank will act again. our next guest believes the meanst risk environment the bank of indonesia will hold off. krystal tan is with us. no urgency yet, you say? >> we do have economic activity. it has been in q4. january car sales look ready week. of course, the virus outbreak is on the downside there there is a risk. external stability is a consideration for central banks. while immediate financial assets have held up pretty well, the --tral bank laid the hero
you have the current account deficit. have the trade deficit widening. i think there's more caution given there is a constraint to .he quality about pr is it more stability rather than growth, or vice versa? to -- the growth --ry it for easing, but i think they will ease another 25 basis points but probably it
is march. paul: i want to talk about thailand if we can as well. we have a chart for the viewers here. it shows high economic growth slowing to a five-year low. pretty poor numbers out of there and it's not just the coronavirus thailand is dealing with. there is a drought as well. how challenging is the growth outlook looking over there? >> it is very challenging. , justinentioned, gdp five years, and unfortunately due to the outbreak of the virus this year, this quarter will probably be even worse. you will have the tourism sector losses,g significant down around 40% in february, and negative for trading given the destruction to chinese economics.
revenue levels are currently the crisisimilar to in 2016. it is a very challenging outlook and therehis year will probably not be much of an improvement from the year before. atl: the bank of thailand, 1% at the moment, not much ammunition left. . what is the threshold to ease at left?hey do have >> i>> think it is ultimately going to be dependent on the growth outlook. there are a few things i would watch. can be contained, how long it takes to normalize it. whether orhing is not fiscal support will come .nline through the budget
and finally, the drought. if the drought is still very fundamentals will put pressure on the bank. what assumptions are you making? it has gone from the best performer to the worst in the region and it's not great when thailand also needs to pay for imports. >> yes. -- balance has been net stronger terms to hurt the economy more. that's why the bank will be keen to have the exchange rate at equal levels. bank economist
haslinda: and he is markets have just opened. let's get to mumbai. how are things looking? start,r: not the best considering we are registering currently the third straight day of losses. there has been a lot of volatility. a lot of that is on a count of the global trends. for now, we are also seeing terms,s on domestic
which is why the nifty and send sensex are down. selling continues for the third straight day. eventually we expect a recovery at some point in time. paul: our reliance industries is consolidating the media business. what is the latest? reporter: that is correct. three companies it owns, it is merging into one. we have a cables company as well as the net worth, it will merge with its broadcasting unit, network 18. traders ande investors are looking favorably towards that which is why we do have advances around 5% for nate andetwork 18 halfway cable
den networks are up as well. thank you so much for joining us. indian unit says it will pay part of the fees to the government after the top court rejected its plea for an extension. however, the board has yet to determine how it will pay the billion.the $4 our conglomerates and telecom reporter joins us from mumbai. what does this mean for vodafone? idea,er: for vodafone they have few options left. one was filing for bankruptcy after the supreme court turned down the modification plea. instead of fighting for a bankruptcy, they have opted to pay 25 million rupees. they will pay another 10 billion rupees by the end of this week. this would mean they are hopeful
they are going to come to some kind of a solution. i the rise, they would have opted for the -- otherwise, they would have opted for the bankruptcy. the shares went up. we will have to wait and watch what next vodafone will pay in full and what will be the outcome on the 17th of march, which is the deadline. what is next in the them?e between reporter: it is a very interesting state because telcos are estimating the amount -- the department of telecom is saying they will have to pay and they can't. that's why the case goes to the supreme court. the supreme court says they have companies the full --
are sticking to their estimates and it will be crucial to see how the hearing goes on for the the mucharch and awaited 5g option. haslinda: a developing story. conglomerates and telecom you.ter pr sanjai, thank silk air will temporarily reduce services because of the coronavirus. they will reduce flights across the global network. we heard from singapore airlines saying that the 2020 passenger load factor is 82.1% year on year. we also heard from the singapore tourism board saying revenue in 22 --untry will shrink 20% to 30%.
bhp's first half earnings surged to 29% on higher iron ore prices. the world's top miner acknowledges the impact of the coronavirus outbreak is creating short-term uncertainty. bhp's ceo mike henry spoke to us earlier from melbourne. >> demands holding up were shipping all of our product, prices have held up because of other supply-side disruptions, and we have not seen issues with payments. as long as things are contained within this quarter, we think they will hold up through the remainder of the financial year. if not, we would have to revise our forecast.
reasonablyremain confident about the outlook for the remainder of the half calendar year. haslinda: i want to get to iron ore in particular, given how key it is for your business. we are putting up the chart for the benefit of the viewers looking at the collapse in chinese iron ore imports, at a record low, at least as far back as 2015 when the data began. given that we are almost 50% of your revenue in the first half was thanks to iron ore, is there a concern for deterioration in pricing as well as output? if we look at iron ore inventories in china, they are not at unreasonable or unhealthy levels and there is more inventory capacity. at the same time, as we have seen a bit of weakness in steel demand in china, we have had other supply-side disruptions. we had a cyclone come through western australia. there have been disruptions
elsewhere in the world. . of course, we also have to keep in mind the coronavirus is also impacting domestic supply of iron ore and metal and coal, helping to give some strength or resilience to the market through this period of disruption and a bit of uncertainty. ry: so you said bhp needs more couple and -- copper and nickel as well. do you have support from multibillion-dollar mma's as , not justgside smaller exploration or early stage deals? my strong first preference is to be securing some of these options and keeping in mind we have these options in the existing portfolio. my first preference is to secure these through exploration and early-stage entry. we have had past success in that regard. it has been a success for the petroleum business.
i would like to see more of that in copper and nickel as well. bhp's ceothat was mike henry speaking to us earlier. now a quick look of the latest business flash headlines. french train maker elstrom has agreed to buy bum barnier's rail unitrdier's rail following an expansion into aerospace. the acquisition is likely to generate as much as 400 million euros in savings for all-star years.ve there will also make them the number two rail equipment maker. paul: two groups of private equity firms are through to the next round in the heated cropver battle for treason -- the german company in the elevator business.
they say an ipo of the company remains an option if no sale agreement is reached. haslinda: let's get a quick check of the markets. it is risk up pretty much in asia. the nikkei and hang seng as well as the kospi all down by more than 1%. the shanghai comp lower by four terms of 1%. apple is the catalyst that the selloff that we are seeing in the region. apple says it doesn't expect to meet its revenue guidance for the march quarter and that is due to workflow down from the outbreak of the coronavirus in china. it says work has resumed but it is slower getting back to conditions as anticipated. apple has impacted suppliers amtech, the biggest loser this year in asia. .aking a look
yousef: this is bloomberg debris: middle east. the coronavirus shakes the tech world. apple warns of falling sales and says it will probably not meet its revenue target for this quarter. short-term of uncertainties saying it may cut its demand for growth outlook. we hear from the company ceo. htc is said to announced earnings at another major overhaul of its business. job cuts down to management changes are expected. we will have the details. what does the surprise delisting of the global port operator say about dubai's economy and its