Transcripts For BLOOMBERG Bloomberg Markets Asia 20240713

There have been 10 serious patients on that cruise ship. For now, lets get a check from the markets and see whats happening across asia. Heres our cross as it reporter. To, thes you did allude mood is optimistic, China Mainland and hong kong. The who said overnight despite we saw yesterday was not necessarily reflective of a larger surge in cases. Yes, we did today get 5000 new cases reported, but much less than the 15,000 yesterday. You can see the csi 300 climbing. S p futures have turned higher after closing lower in the United States. And the nikkei is falling down 6 10 of 1 . And really weighing on though he nikkei is nissan. Its a smaller weight, but its the worst performing stock, having the worst space, falling the lowest level since 2009. This came after an Earnings Report that cut its profit forecast for the second time and slashed its dividends. Back to you guys. Haidi we are getting some of the updates from japan. The Health Minister speaking to reporters, saying they are sending experts to the hospital. We know the medical worker was infected and 10 patients remain in serious condition across the Hospital System from that cruise and the potential for disembarkation will be shortly. Lets get to su keenan in new york. Su we start with the coronavirus, being blamed for the first level drop in oil demand in more than a decade. Agencyernational energy says the demand is going to fall by more than 435,000 barrels a day in the First Quarter. This as the widespread shutdown of chinas economy zaps the need for oil. The iea says annual growth may fall by about 30 , but at this stage, its hard to be precise about the full impact of the virus. We will have the latest on the coronavirus in just a few minutes. Has raisedthe u. S. Its stakes in the battle for ball boy, huawei, saying it dealt in intellectual property theft. Stealing trade secrets and lying to authorities. Huawei and its cfo or other charges of fraud are already facing charges of fraud. These new charges ratchet up the penalties the company could face if convicted. To the u. K. Now, the Economic Policy has been thrown into disarray after sid javid quit as chancellor. He resigned after refusing Prime Minister Boris Johnsons demand to fire all five of his most senior treasury aids. The Prime Minister swiftly newinted the deputy as the chancellor, but his office say it cannot confirm the budget will go ahead as originally scheduled on march 11. The white house is denying reports it plans to pull President Trumps nomination of judy shelton to the nominee board. Formeremost Economic Advisor to trumps campaign. Both republican and democratic lawmakers have raised concerns about her past comments on the gold standards, the dollar, and whether the mandate is meaningful. Global news, 24 hours a day on air and on quicktake by bloomberg, powered by more than 2,700 journalists and analysts in more than 120 countries. Im su keenan. This is bloomberg. Haidi thank you. The chinese province at the center of the epidemic has reported 116 new deaths and i must 5000 new cases under its new methodology. That number is lower than the close to 15,000 they predicted yesterday, but double what they were previously reported. Lets cross over to our team on the ground, selina wang and yvonne man with us in hong kong. Were trying to crunch numbers and paint a trend, and reassuringly, the numbers are at least closer to the stabilization trajectory we were seeing before yesterday. Selina thats right, but still twice as much as before the methodological change. Many of those cases dated back days and weeks before and dont represent a sudden surge and it does focus on the reliability data coming out of china. Questions remaining around the extent of the outbreak, but the numbers largely come down to how cases are being reported. A big group of patients are being accounted for, diagnosed through ct scans, including the testing kits. But given that the ct scans could include patients that just have pneumonia, not the coronavirus and theres a possibility they could be at risk of infection for the coronavirus if they are in the same hospital wards. Still a lot of concerns about the reliability of testing overall and just how accurate these numbers continue to be. Continue to watch very closely what happens to that cruise ship quarantine in yokohama, japan. What is the latest . Yvonne we just heard from the japanese Health Minister saying you cant deny the possibility that the spread of this virus is happening in japan now. Theres 10 people in serious condition, but at least today, they will be starting to disembark people off this cruise ship. Those who tested negative and those who have priority or higher risk. The elderly, people older than 80 years old, and people with underlying conditions, and those who have not been staying in cabins that have windows. Perhaps some good news. We just reported the first death in the country, third outside of china. This is a woman in her 80s who had died and only found out after she was dead that she contracted this disease. She was initially treated for a separate condition. Local media also saying shes a motherinlaw of a taxidriver. Thats one of the fresh cases in the country, as well, more signs this is locally transmitted. Another luxury liner potentially stuck at sea. We talked about the local media in vietnam, that a ship carrying 1100 passengers from europe had to cancel their plans to dock after the government denied it entry. This harkens back to memories of the Holland America western dam, which was denied from five ports. Whether there are coronavirus on that vessel, but another sign of paranoia we are seeing from countries. All this outbreak news overshadowing some progress in the trade story between the u. S. And china, with some of the tariffs being reduced by the u. S. And china in just a few hours time. Selina thats right. In just a few hours, were expecting those cuts, china slashing on billions in imports and u. S. Lowering on roughly 20 billion in electronics and apparel to 7. 5 from what it is currently. That should provide some relief, but this does commit to growing doubts of whether china can follow through on the trade deal in which china pledged to boosted by 200 billion over two years. Even before this coronaVirus Outbreak, thats led to a standstill of massive parts of the economy, there were doubts of whether china could reach the very ambitious targets. Now that we have this economic pressure, even slimmer likelihood that we can meet those targets. The decision to reduce the tariffs shows china is committed to fulfilling the space this phase one trade deal. And as announced earlier, china said they may be delaying commitments on u. S. Farm good purchases as part of the trade deal, but likely will be able to fulfill it by the end of this year. Haidi and we are continuing to see the corporate fallout, alibaba with the results that flagged the alarm when it comes to its current quarter, the widespread nature of the impact. Were seeing stocks down in hong kong. Yvonne yeah, and they really talk about how the impact could be a broad one on the economy, at a fundamental change in how chinese consumers, how they buy, and what when it comes to their merchants. The First Quarter will take a hit from the coronavirus. And they mentioned a lot of people on the production line cannot get to or do their job. Thats one of the challenges. They cant get back to normal production. Saying point, theyre the buying patterns are changing because people are pulling back on Discretionary Spending like travel and restaurants. But weve heard similar types of outlooks from the likes of mattel, as well. They said First Quarter toy production could slow for them. They dont have manufacturing in wuhan, but Chinese Government guidelines is impacting the availability of the manufacturing workforce. Haidi yvonne man, thank you. And error thanks to selina wang in beijing. Joining us now from washington, d. C. Is an aston, senior director of Government Affairs at the u. S. China business council, and previously worked on china trade and issues at the chamber of commerce. Great to have you with us. So, give us the view from the Business Community. When you talk to your Member Companies that do business in china, first we have the trade tensions between the u. S. And china. Now we have this Virus Outbreak. How much are they considering relocating, moving away from china, given all of these uncertainties . We have 226 Member Companies that have operations in china and were really not getting messages from them that theyre thinking of moving operations because of the Virus Outbreak. What theyre calling as is how they how can they help with the Virus Outbreak . They have employees on the ground, colleagues on the ground. This is a national emergency, but its a small world and there are international implications. They are thinking about donating money and medical supplies and other products that can help the government in their efforts to contain the virus. Shery are they going to see any impact in the reductions of tariffs were expecting from the imports from both sides in just a few hours time . Anna the thing about the reduction in tariffs, the 75 billion in reduction in tariffs, or the reduction in the 75 billion tariffs rate, is meaningful in the sense that its reciprocal. Its in response to the United States agreement to cut the tariff rate on their list for aid, which is the tariffs in september. But not a lot of the products on that 75 billion list of china are actually products china is committed to purchasing. And in reality, although the purchase commitments are nice and good for Certain Industries and certain businesses, the reality is we still have tariffs on two thirds of what is imported from china right now. That is going to continue to be is significant drag on the Business Community in the United States and make it harder for china to buy things from the United States. Haidi weve been talking a lot about the drag on the chinese economy, so much of which we dont know given the extent of this outbreak. Its interesting you mentioned the force majeure case to be made within the phase one trade deal. Weve already heard chinese customers of commodities, for example, pleading for versus your, at least force majeure, at least for simplex ability. This something you expect for some flux ability. Is this something you expect to see . Anna only time can tell. China has been pretty clear they intend to honor that commitment. And the white house, larry kudlow, top Economic Advisor, as well as robert obrien, have speculated chinas purchases this year might not be as big as planned, but they still would have the ability to meet their commitments over the next two years. Its impossible to know what the economic fallout is but i hope thats right. Shery what do you see in terms of the potential change to doing business in china after all of this . And have you had much feedback on how your membership feels about the handling of this crisis . Overall,l, i think its important to reiterate that the majority of companies doing business is in china at least in part, if not primarily in order to serve the primary markets. Despite the trade war, despite the coronaVirus Outbreak, there is still impetus to keep operations in china. Beingare some decisions made to delay investments or move certain pieces of operations outside of china, regionally, but i dont expect that this will have any more of an impact on supply chain decisions than the trade war has. Shery talking about the trade war, we are now seeing the Trump Administration sort of questioning the transparency of china when it comes to this outbreak, not to mention new racketeering charges against huawei. How concerned are you that tensions will go up from here . Think ittainly, i contributes to the view that lurking beneath the trade war is a tech war or a broader struggle between the United States and china. A new eraat we are in for u. S. China relations. We are reconfiguring our strategic relationship and reconsidering each other, but we are still incredibly intertwined , economically, commercially, and our people relationships are pretty significant. Hopefully we will find a way to address the Power Dynamics and both reap the benefits of engagement. It seems to be pressuring xi jinping. Will this give new leverage to President Trump if we get to that phase two trade deal negotiation . Anna unfortunately, we are really not hearing too much about that. Everything we are hearing from our sources in the u. S. Government and Chinese Government is that both sides are focused on implementing the phase one agreement. They dont want to talk about the phase two agreement until the phase one agreement is enforced. That can take all year. Its a general election year. I dont expect we will hear too much about the phase two agreement this year. Haidi really appreciate your time, anna ashton, senior director of affairs joining us. Concernsad, commodity have been the worst performers other the coronavirus, oil and playdom, or under pressure, and traders are betting on a stimulus view boost for copper and gold. We begin with shery plus, alibaba sees coronavirus posing a significant threat to growth. More on those earnings next. This is bloomberg. Shery we have an alert on the bloomberg. Tesla is expected to recall 3,18 3 model xs in china. We know theyre citing a bolt glitch for this recall. They sold 40,000 cars in china last year. Have beenw that there a few recalls in the past over potentially deadly airbags, but tesla has reopened its shanghai factory now after the Lunar New Year holidays, but theyre now announcing theyll recall some of their model x vehicles in china, where they sold about 40,000 cars last year. Haidi . Haidi alright, we continue to watch alibaba. Shares continue to fall after the company warned the coronavirus would hurt Revenue Growth in the current quarter. The chinese ecommerce giant made the comments after reporting Strong Financial results for the december quarter. Joining us now for mores Peter Elstrom in tokyo. Asia, baba the first major tech during to announce tech giant to announce earnings during the coronavirus. Other than the fact they are a macro bellwether for china, is that it seems to affect every part of the business. Peter yeah, its interesting. Alibaba is a bellwether, as you say. They work with millions of Small Businesses throughout the country. They touch lots of workers, lots of consumers also. And theyre the first Big Tech Company to report. Its interesting. They reported these results in the quarter in december, that were strong for both revenue and profit. During the conference call, they elaborated of virus is have the virus is having broader effects on the economy, changing how merchants operate, and the demand were seeing from consumers. Ar companies, theyre having hard time getting workers back onto their jobs, and then do their jobs when it comes to delivery of goods, either consumers to other businesses, theyre also having a shortage of workers. This is creating all sorts of problems within the economy. On the consumer front, alibaba was clear consumers are fundamentally changing their buying habits. They are buying more groceries that alibaba ships, but cutting back on sorts of Discretionary Spending. Not just the obvious ones like travel and restaurants, but of other ones like other Discretionary Spending they would be buying. And alibaba itself doesnt really know where its going to go from here. Alibaba has implemented quite a few measures to deal with this. They pride themselves on working very closely with these merchant partners, so they are providing lower Interest Rate loans to some of these partners. Theyre trying to lower their own fees and help them in a number of ways. Haidi which begs the question, will that hurt the top line, given they are declaring some of the waivers on those fees . What can we expect in terms of alibaba, aside from the virus Going Forward into the year, what about Personalization Technology and all the strong suits alibaba had that were so much better than the rivals and had really helped propel their growth . Yeah, alibaba has been making Big Investments in a range of new initiatives, including retail, where they are trying to help people by in buy in brickandmortar s tores. They were very clear about the uncertainty in the economy right now. They dont know where this is going to go. They dont know whats going to happen. They dont know how its going to affect their businesses. Cfo, said this could have a negative effect on negative growth in the First Quarter. She said it could be significantly negative, depending on what happens. But theres so much uncertainty that they cant really tell what the rest of this quarter is going to be like, much like less the rest of the year. Shery Peter Elstrom, thank you for that. Well have plenty more ahead. This is bloomberg. Shery lets check in on the state of trading when it comes to China Mainland markets. It has been a pretty turbulent time, but mostly to the upside. What were interestingly seeing is a shift in moods. Keeping his head above water. Trading in shenzhen trending to the upside. And china trading higher by 1. 25 as the coronavirus came down after yesterdays spike in numbers. This is bloomberg. Su im su keenan the first word headlines. We start with the trumpet ministration, raising doubts about the way china is handling the coronaVirus Outbreak, larry kudlow transport questioned the transparency and the account of new cases and deaths, both of which that changed after the way china diagnosed the virus. Health officials have not been allowed to study the outbreak despite offering and experts for several weeks. Alibabas u. S. Shares fell after it warmed the coronavirus will hurt Revenue Growth in the current quarter. Alibaba says the outbreak is undermining production and changing Consumer Spending patterns. The chinese ecommerce giant made the comments after reporting Strong Financial results. 37 ,ue surged better than 21 billion, while income rose 58 . The coronavirus is threatening the biggest hit on japans economy since 2014. Economists are protecting a one quarter slump, gdp figures due monday, expected to show annualized contraction by 3. 8 due to a sharp drop in Consumer Spending. The slide would be the worst since the Second Quarter of 2014 when a previous tax increase saw the economy shrink by 7. 4 . Thannited nations has more 140,000 syrians displaced in the last three days by violence in the countrys northwest. That brings the total number forced to flee the Syrian Government offensive more than 800,000. The u. N. Says 60,000 of those displaced our children. The syrian war is entering its ninth year. Global news, 24 hours a day on air and on quicktake by bloomberg, powered by more than 2,700 journalists and analysts in more than 120 countries. Im su keenan. This is bloomberg. And we have breaking news out of china. Were getting the National Figures, china reporting 5090 additional coronavirus cases for february 13, china saying the death toll has risen by 121 to a total of 1,380. The coronavirus cases rising to. Total of 63,851 earlier today, we had the numbers for the province. A little bit of stabilization after they changed the methodology. We saw the spike to almost 50,000 new cases. But the National Figure right now of additional coronavirus cases, 5090, death toll rising to 1,380. Asia mixed in the session. Sarah is here. We continue to get these new headlines, new cases, and death tolls. Whats right now the sentiment in asia . Sarah there really just continues to be the surged to look towards the bright side, even after these headlines that just crossed. We looked at the csi 300 and its climbing to session highs. The take from investors is that it almost confirms what we heard overnight from the who, that what we saw yesterday, that spike of near 50,000 cases, was not reflective of a larger search. Now that we see these numbers at least coming down today, coming down to 5000, that is still encouraging to some investors that maybe we are reaching a peak from here and then coming from back down. You see that reaction in the markets. Theres this urge and persistency to try and move higher. Haidi when it comes to commodities, its really great, that chart, in the sense that it shows the Asset Classes most affected. When it comes to crude, is there an Oil Demand Forecast released thats kind of gaining the most attention in this market . Sarah as we just saw, whats been crossed the hardest has been commodities, crude and copper. Weve got a couple of different forecasts, the eia, the iea, and opec, but theyve all been different. Theres a great story on the terminal from julie lee, and the headlines read the coronavirus will hit hard. Thats were consensus and. Thats the unfortunate reality. Obviously there will be an effect, but its really difficult to actually estimate what that effect is going to be, and even harder for rest for markets to handicap that affect in the right way. Haidi Sarah Ponczek there in new york, or cross assets reporters with the latest on the commodities picture. Oil demand dropping this quarter for the first time in over a decade, this is the coronavirus continues to hurt chinas economy. The iea says world fuel consumption will plunge by more with435,000 barrels a day, slowing Economic Activity in china zapping the need for oil. Goldman sachs jeff curry described the situation in prestruck terms. Pretty stark terms. The current environment is pretty dire. You saw the baltic freight index went negative, an indication of how weak the demand picture is. Shery lets discuss the outlook. He joins us from melbourne. Always great to have you. Its been pretty extraordinary, although natural, if you look at supply and demand, the reaction across markets to this fear of demand disruption out of china. We know that 20 number thats been floating around for china energy demand, for example. Do you think these concerns are warranted, and how much credibility do you assign to the theory were going to see a massive bump up when it comes to demand, the stimulus and of this crisis . Look, firstly, trying to understand the demands difficult. As eve seen, the way they are reporting it, that point has been a sentiment thing. How it translate to actual demand is another question. We know quarantine measures are still happening, and until that comes back, thats the only time we think stimulus really filtered through. Thats a really great question in terms of what kind of stimulus are we going to have . We think any stimulus will favor those sectors. If its a point where theres a benefit for commodities but the competition is still quite unknown and until we get more clarity, right now its very how strong this term will be. But it wont be the front and center headlines. Are continuing to get more news out of china on the contagion and the death toll, china saying its revised death toll when it comes to the coronavirus numbers to account for some double counting, this after also saying 6000 patients have been discharged, earlier total cases,851 and the National Death toll added to that total. Even in terms of this idea of double counting, the change in methodology, theres been some confusion. Is it hard if youre making forecasts on the Economic Impact and the impact for demand to getting a true picture of what were dealing with . Guest i would say without a doubt. And we saw that when we look at the agencies that have already forecast demand this quarter. Iea haveat what opec, forecast this quarter. And also how that demand will play out through 2020. So for us, its very much in the same boat. The credibility of when this virus will peak. I think thats the key unknown. But markets have turned more positive, partly because the trend debt downward trend downward. Importantly, people are backing what xi jinping is saying, that hell come in and support the economy. For us, the concern is clearly they dont want to stimulate the economy like 2008, 2009. Any stimulus will be very much thought about in terms of china, structurally, over the medium term, but keep growth stability. With that, you just have to be mindful that this is not going to be spend what we can. China will be careful and cautious this time around. Shery what does it mean to chinese commitments for u. S. Energy purchases then . Thats another aspect of Commodity Markets thats been impacted. What we see is that First Quarter is almost a write off in terms of can we see evidence of china buying more u. S. Energy products . The question, though, will we see that change . Now, oil naturally will be an avenue they will buy more of. We know that chinas chemical sector is expanding. There is a Natural Balance in terms of china buying those goods. But at the end of the day, what is being committed is so exorbitant in terms of the patients for china the implications for china. 9 billion is the reference. That was the peak that china bought from the u. S. Thats expected to be 11. 5 billion this year. These are enormous numbers. Even if we do see the u. S. Export story play out, we dont see how it can lead those obligations. We are seeing a similar story play out. The u. S. Export capacity is going to surge, and we do expect china to increase lng buying, just on the back of the fact they are transitioning to gas. But the question that we all have is how much of this gas can they purchase and will it be enough to meet the allegation . And it an obligation . And it doesnt add up in our books. For us, the concern is australia. The spot sales of australian lng to china is what is at risk. Thats about 810 of export volumes, which look to have to find a new home. The problem is finding a new home when spot prices are under four dollars per and mb q. Thats where the real concern is. Shery what about the technical issues here . Say, chinas refineries are headed for sour, crude oil, as opposed to u. S. Sweet and like oil . Desolate oil late oil . Guest if you look at the refinery configuration, theyre not designed for light and sweet. Technically its possible, but you then really hurt the economics of those refineries. And thats a concern because economically, with these refineries want to take the plunge into light and sweet . Thats something chinese refineries would try to stay away from as much as they can. Crude, what do you see as being the most impact across the commodities complex . What we really have seen is a wholesale downside across most commodities since this virus news broke. Its yeah, look, interesting to see the cross commodity complex. We think a lot of them have probably overreacted, but the one commodity were still thinking theres further Downside Risk to is iron ore. Iron ore has been impacted as steel demand and construction in china has been hurt by the coronavirus, but the issue we have in iron ore is very much to do with the level of supply entry. We expect, tickly given the recovery from last years big disruption, that the total bond market will add 3. 44 percent to supply. Demand, which we look to china that will account for global iron ore imports, we expect that to grow to about 1 . That forecast is predicated on what the worst Deal Association be forecast for china in october 2019, in terms of steel demand growth. Now, thats precoronavirus. So, either way you cut it, if china gets steel demand up to what it was, you still have a big surplus bill. In our view, iron ore has plenty of Downside Risk from here but its going to be choppy while we see china come back to the market. But through 2020, we expect weakness in iron ore. Shery thank you very much for joining us today. Coming up, well discuss a shakeup in Prime Minister Boris Johnsons cabinet after the chancellor quits. This is bloomberg. Shery Prime Minister Boris Johnson is reshuffling his cabinet after his landside victory in the elections. The pound rose sharply after the chancellor was quitting after he refused johnsons demand to fire all of his treasury advisors. We are joined for more on this story. This is supposed to be a routine cabinet reshuffle. What happened . Quite right, it really was unexpected, especially to see a senior of fig senior figure quit. He had a facetoface row with Boris Johnson after he was asked to fire all of his five treasury advisors, like you said. And this is all part of an even bigger, brewing tension between number 10 and Boris Johnson and his advisor, dominic cummings, over control of the treasury and fiscal spending. But it really was very unexpected. People did not expect this. Haidi we certainly have the Market Reaction, the rally in the pound. There is a lot ofs outlook speculation going on, right . Right, and i think this Market Reaction was because they would need more fiscal spending for the u. K. Thats what Boris Johnson and javid had really locked horns over. Boris johnson promised expanding clans, but javid is a physical hawk. He had accommodated some of Boris Johnsons plans, like adding an extra 20 billion pounds to infrastructure spending, but he was growing more uncomfortable with this, and it couldnt come at worst timing because the budget is next month and they havent confirmed yet whether it will or will not go ahead, and whether they will stick to his policies or not. And Boris Johnson was planning to outline a part of his vision for the u. K. Outside of the e. U. , and that could now potentially be put into disarray. Haidi the new chancellor shery the new chancellor was appointed. What does this mean for policy . He was the deputy and was seen as a rising star within the conservative party. And before his career in politics, he was an employee at Goldman Sachs. He now has to prepare this budget very quickly, which weve already expected to announce a major fiscal used, boost, and the expectation is that they could be even more on the cards now, and he is an ally of johnson, an ardent brexit supporter. He believes in tax cuts for corporations and Capital Gains taxes cuts. And all and all, therefore, the perception really is hes not going to be standing up to number 10 as much, and that, therefore, could mean higher spending for the u. K. , potentially. Shery thank you very much for that story. Coming up, barclays ceo faces scrutiny over his relationship with convicted sex offender, jeffrey epstein. More on that next. This is bloomberg. Haidi barclays shares took a tumble as the lender announces the probing relationship between the ceo and convicted sex criminal jeffrey epstein. We spoke exclusively to the ceo as the company announced. Press wellknown in the that i have had a longstanding professional or had a longstanding professional relationship with jeffrey epstein. It began in 2000, when i was asked to run jp morgans private bank. And he was already a client of the bank at that time. The investigation is actually focused on transparency, whether i was transparent with, and open with the bank and the board with respect to my relationship with jeffrey epstein. And indeed, to clear my own mind, going all the way back to 2015, when i joined barclays, i have been very transparent with the bank and very open and willing to discuss the relationship that i had with him. And if you look at the rns, i think whats important to note is the board has done its own review, and theyve looked back at my transparency, and they concluded indeed, i have been transparent and open with the bank and the board all along this process. And in fact, they have unanimously voted for me to be put up for reelection at the meeting later this year. So, full support from the chairman and the board. But there is a regulatory process that is ongoing and well let that run its course. Anna but do you understand that new information has come to light . Why have they decided to launch this probe at this time . You know, im not going to go into it. Clearly, theres been a lot of prep. But ive been very transparent with the bank along all along, and the bank is been very transparent. So well just let the review by the fca reach its conclusion. Matt jes, you were talking about, to get back to the business, and really the interest of shareholders here, you were talking about the dividend. Or at you have a plan, least an aim to supplement dividends with share buybacks, if feasible. Is that feasible, given the longer Interest Rate environment that were reporting on so often . Generateyou know, we a lot of excess capital. If you look back last year, the one big impediment for us was in the Third Quarter, when we had charts close to 2 billion pounds related to the final ppi claims. We have tripled our dividends. We generate a lot of excess capital. And as we said and will continue to say today, we look forward to returning more capital to shareholders, including buybacks. And when we get to the right point in time, we will announce and execute that. Well see how that goes over the course of 2020. That was the barclays chief executive jes staley, speaking to anna edwards and matt miller. Lets get you a quick check of the business flash headlines. Bloomberg learned ubs has looked at internal and external candidates for chief executives, after the long time ceo revealed his plans to step down this year. Ubs is the latest bank to consider changes at the top in an industry thats been beset by struggle sluggish growth. Last month, he cut the target for the second time in two years. Shery tesla selling another 2 billion of common stock as it takes advantage of shares just two weeks after elon musk says braving capital didnt make sense. The stock will be priced at 700 67, which means and must 5 discount. Be used tos will fund as much as 3. 5 billion dollars in terms of spending this year. Haidi vivendi is planning an initial Public Offering for a music group by early 2023. Universal music is a. Is a big public driver. Vivendi is selling as much as 20 of the company to the chinese tech giant tencent, and a deal that values the business at 33 billion. Shery take a look at markets across asia, we are seeing downsizing pressure, falling after the yen strengthened and saw the largest rise in almost two weeks. The nikkei headed for weekly loss, while the hang seng index and shanghai composite, as well as small caps on the china, are gaining ground. One of the sectors under pressure is oil. S p now saying global oil is poised for a short Coronavirus Crisis that the later global credits will come through this crisis rather quickly. Haidi coming up in the next hour of Bloomberg Markets asia, we have an exclusive interview with twitters head of asiapacific. Shell be discussing how twitter is boosting investment in the region. Well also be talking to lorraine 10 to get her outlook when it comes to asian equities. This is bloomberg. Almost 11 00 in singapore, 8 30 in mumbai. Are entering the last hour of the morning session in hong kong. To markets look to date out of china. Hubei reports a smaller number of new coronavirus cases. A. J. Freund the number of jing trims thebei number of fatalities nationwide. Forecasting a fundamental impact on the countrys consumers. Paul an indian unit struggles to survive, in a wider than expected cost as subscribers fell. This is Bloomberg Markets asia. It is valentines day in asia, but not much love in the market. Lets get more with our cross asset reporter. The first fatality was reported. Not surprising. We see the nikkei off by one half of 1 . Elsewhere, we are seeing markets moving higher, trading at the highs of the session. The csi 300 coming up to its 50 day moving average, up 1 . The hong kong hang seng moving higher as well. U. S. Equity futures expending gains, this after in the regular trading session we saw the s p 500 dropped for the first time this week. Lets get you a sector view across the asiapacific region. Looking at the msci asiapacific index, it is getting pulled to the upside modestly. Sectorwise, real estate the bestperforming sector. To the downside, industrials and Consumer Discretionary. Markets trying to move higher from here. We take a look at how we are doing in australia, the asx had a pretty shortish start sluggish start, but now higher. Magellan Financial Group leading the way at the moment. Lets check in on the first word news. Su the u. S. Senate has voted to restrict president ials power to take military action against iran, at least without approval from congress. Eight republicans joined democrats to pass the resolution. It now heads to the house, where it is expected to be approved. The measure was introduced after President Trump approved a drone strike that killed iranian general qassem solemani. The president says he will veto the resolution. The u. K. s Economic Policy has been thrown into disarray after sajid javid quick as chancellor quit as chancellor of the exchequer. He refused Prime Minister Boris Johnsons demands to fire his most senior treasury aides. He appointed rishi sunak as the new chancellor. His office says it cannot confirm the budget will go ahead as scheduled on march 11. The u. S. Has raised the stakes in its battle with huawei, alleging the Chinese Company engaged in decades of intellectual property theft. The charges the the company depict a company that won enter standing w the new charges ratchet up the potential penalties the company could face if convicted. To the united nations. 140,000more than syrians have been displaced in the last three days by violence in the countrys northwest region. That brings the total number to more than 800,000. The u. N. Says 60,000 of those displaced are children. The syrian war is in its ninth year. 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. Im. Im su keenan. This is bloomberg. Paul china has revised down the death toll from the coronavirus cases80, but overall continue to rise, with evictions nearing 64,000. Hubei province at the center of the epidemic reported 5000 new cases under its methodology. Much lower than the 15,000 reported thursday. Lets get to our team on the ground, chinese correspondent selina wang in beijing. What are the numbers telling us . Selina the total number of cases rising, but the National Health report showed more than 6000 people have been discharged from the hospital since the start of the outbreak. The death toll was lowered slightly to account for some double counting. We are seeing the evidence of what the World Health Organization said, yesterday being a one time surge and not representing a sudden new surge, but more the result of the new reporting structure. That accumulated over days and weeks. We see the inclusion of new diagnosis through ct scans. Their questions about the testing kits thus far showing negatives. Method hastic showing people that have pneumonia, not the coronavirus. Haslinda what is the latest on the cruise ship in japan . Japans Health Minister speaking about the cruise ship, saying they cannot deny the possibility the virus will spread in the country. 10 people they know right now in serious condition, on which came from the cruise ship held off in yokohama. They plan to start letting people off that cruise ship. A priority are those of higher risk, the elderly and those staying in cabins without windows. Japan still trying to contain this virus. They have at least cases right now, most of which comes from the diamond princess. The third Death Outside of china, the latest is a woman in her 80s being treated for a separate condition. Doctors found she tested positive for the coronavirus after her death. Local media reporting this woman was the motherinlaw of a taxi driver, a fresh case in japan as well. Haslinda today is the day china is set to halve tariffs on u. S. Goods. How is this playing out . We will see both sides fulfill part of the phase one trade deal, with china slashing tariffs and the u. S. Lowering tariffs on 120 viewing dollars 120 billion of chinese goods. This brings doubt about chinas ability to follow through on phase one trade deal targets, including buying 200 billion worth of goods and services from the u. S. In a two year time spent. Even before the coronaVirus Outbreak, that had been an ambitious target. The likelihood of the chinese economy reaching that target looks slimmer. Beay be delaying they may delaying farm purchases, but could fulfill them by the end of the year. They are both committed to see this through. It should provide some relief to the chinese economy. Paul in the meantime, we are seeing the corporate allout continue fallout continue to widen. Chipmaker reporting they are delaying salaries for six days. The chairman encouraging workers to trade their upcoming bonuses for restricted stock units. This shows the difficulty standing from stemming from the coronaVirus Outbreak. Late last year, nio already mentioned they did not have enough money to operate for the next 12 months if it doesnt raise more funds. This as we see car sales in china plunge 20 lower for the first part of 2020. Mattel saying toy production in the First Quarter will slow down. They dont have any manufacturing in wuhan specifically, but mention the government guidelines in china effect the ability affect the workforce. Haslinda thank you so much for the update. Lets turn to the market. Climbing over 2100 for the First Time Since december 2016. In some other headlines crossing the bloomberg, we see south koreas finance minister saying the country will take preemptive steps if market volatility continues to rise as a result of the coronavirus. For more on the Market Impact of the coronavirus, here is asiangstar director of research. I am wondering why we are not seeing a bigger impact in the market. China retail sales down a record 22 . Will came out to say it take the biggest hit since 2014. These are early numbers, and yet the market is pretty resilient. Lorraine people are drawing back from their experience with star with sars and saying this is shortlived. We will see a rebound. For may only be an impact 2020. We are treating this as an opportunity to pick up some stocks that may have been beaten down. Haslinda we keep making the comparison to sars. I want to show you the chart on how global stocks were reacting to the lead up of both viruses. How deep can the impact be . How will the markets get caught up if the impact is much bigger than expected . Lorraine the key differences the chinese economy and chinese influence on global economies is much bigger than it was during sars. We will see a much greater impact on global earnings than we did back then. So yes, there is the risk that earnings could be worse than expected, but if we are looking at opportunities where the rebounds would come through, we are looking 2021. If it is a good quality company, we avoid industries where there is already access supply they may lag in their recovery. This is why i think the markets may not react as negatively as expected. Paul you did mention it is a Good Opportunity to look at these stocks and sectors badly beaten up. You are big on tourism and gaming. If the experience of thursday showed us anything, there is a risk if you do buy now. You might see things get cheaper. Lorraine there is always a risk. It is still the early days to find out where the life of this virus is going to end up. The mortality rate is a lot lower, which is one of the positives. That is allowing some of the more positive mindsets to come through. Where we are seeing this impact of the virus and i and it does impact consumption in china and Consumer Discretionary items. That is why we are seeing these elements badly hit relative to others. Within Consumer Discretionary, brand names will come out of this much stronger, despite the fact that china buying might be a key segment of revenue. We are looking through these cycles, through these risks. The underlying quality of the companies is hwere is where we like best. Paul when this crisis does abate, what sort of magnitude of rebound do you expect . Lorraine we have to draw back on the experience we had with sars. Pedsaw a sharp, vsha recovery. People had cabin fever after and while. They just want to spend. I think we still generally expect that these things will only impact the first half of of ther, the recovery Third Quarter will the slow. Be slow. Haslinda hang tight, lorraine tan will be staying with us. Still to come on the show, we will talk alibaba warning of an acrosstheboard impact from the coronavirus epidemic. But lorraine sees a buying opportunity there. Paul and twitters head of asiapacific joins us to discuss its growth in the apex region. That exclusive interview, coming up. This is bloomberg. Haslinda paul we continued to see more asian big corporate seeing the of the virus the pinch of the Virus Outbreak. Both shares getting hit in asian trading. David, start with nissan. What is the story there . David shares are on track for the worst day in six or seven years. Nissan decided not to give on the year dividends. The business has not done well, unexpectedly moreso. The ceo said we cant forgo investing in the future. It gives you a clue why they looked to dividends, but the business side as well. You have the drama in management and disruptions in china. The plan to reopen those three plants as well. The ceo alluded to the fact that the overall market in china is not doing well. January numbers, 20 drop in auto sales shows it is hitting on all fronts. Haslinda alibaba how is the business coping . David they will be affected. They have said it quite clearly as well. It is valentines day, which means we are in the middle of the order. The after. Somesaid, alibaba lowered some vendors have been affected. They are present in many parts of the economy that have done upl in recent years, and until recently, have not dealt with this sort of disruption. I imagine when you look at the revenue warnings from alibaba, that is something to listen to. Thefactors that led to reporting percent every year are the same factors that are temporarily disruptive. Haslinda lets get more from our guest. Lorraine tan stays with us. Lets pick up the discussion on alibaba. You see buying opportunities in alibaba as well as tencent. Is note seen asia keeping up with its counterpart in the u. S. How do you see alibaba benefiting . Lorraine there are a couple trends going on in the past year. We have a lot of Chinese Tech Companies that suffered during the peak of uncertainty. It was trading at a nice discount at the time. We had a nice buy call on it. With tariffs dissipating, we have seen alibaba recover alongside other china Tech Companies as well. It is a level we would say is fairly valued. Looking through the virus issue, which will always be negative in the First Quarter, but we expect there may be some potential positives over the longterm. ,f people are cooped at home they are using online delivery services, playing more games, downloading more videos. That people who the people who would not have adopted online activities are doing so so. That allows companies to pick up additional subscribers at a low cost. Ad revenue will be affected negatively. What we want to see is what will happen in the longer term that will be positive. Haslinda what is the downside . Weraine at morningstar, look at this over the longer term. Year,e a five year, 10 where we think cash flow will be sustainable. We still think stocks will be able to meet cash flow targets right now. Paul in terms of longterm, is this another buying opportunity . There are millions of consumers online. Is this a chance to get into alibaba . Lorraine alibaba and tencent have moved up quite a bit the past few weeks. Where we do see some other opportunity, like for example, smaller cap companies, one ga ming Company Recently listed. We have that as undervalued compared to a fair value estimate. I want to highlight that in terms of the longerterm china story, we expect china growth to gradually slow because of demographics and the economy is bigger than in the past. But we expect the consumers story to outpace the underlying growth in china. That is why we are still positive on the consumer side. These guys are benefiting from the ecommerce side of things to be a positive longterm driver for them as well. Paul the alibaba cfo said overall, due to the virus, revenue will be negatively impacted. She did not quantify it. Can i invite you to have a go at putting a number on it . Lorraine it will be difficult. I hate to preempt the analysts as well. We know the market expects the First Quarter to be bad. The pace of the recovery we are expecting to see for the second half. The key risk is if the disease numbers dont peak as anticipated in the Second Quarter, you might see greater downside to the stock prices. Haslinda lorraine, thank you for joining us today. Plenty more to come, including twittersiew with maya hari. This is bloomberg. Haslinda lets do a quick check of the latest business headlines. Tesla is selling another 2 billion of common stock as it takes advantage of surging shares, just after elon musk says raising capital did not make them. The stock price is an almost 5 discount to thursdays close in the u. S. Tesla says proceeds will fund as much as 3. 5 billion of funding this year. Paul a federal judge temporarily blocked microsoft from working on a 10 billion pentagon Cloud Computer contract after amazon asked for the delay. Amazon is challenging the validity of the contract and claims President Trump interfered in the bidding process. Microsoft says it is disappointed by the ruling. Exclusiveome, we have interview with twitters head of asiapacific, maya hari. We have a check of the markets and a roundup of the days news as well. Stay with us. This is bloomberg. [ fastpaced drumming ] [ fastpaced drumming ] thats why Xfinity Mobile lets you design your own data. You can share 1, 3, or 10 gigs of data between lines, mix in lines of unlimited, and switch it up at any time. All with millions of secure wifi hotspots and the best lte everywhere else. Its a different kind of wireless network, designed to save you money. Switch and save up to 400 a year on your wireless bill. And save even more when you say bring my own phone into your voice remote. Thats simple, easy, awesome. Click, call or visit a store today. Haslinda we are looking at live pictures out of the lion city. We are in the middle of the trading day. By for tenths of 1 . Philippines says it expects the coronavirus growth impact to be shortlived. We heard from the Central Bank Governors saying his confidence of 6. 5 gdp growth in 2020 is even with 2020, even with the virus. Su we will begin with the latest on the coronavirus. China lowered its coronavirus death toll by 100 people, taking it down to 1380 since the outbreak began in december. Authorities say the figure was lowered to account for double counting. The province at the center of the outbreak reported 4800 new cases for thursday. That takes chinas total Coronavirus Infection count to more than 6300. The Trump Administration meanwhile raised doubts about the way china is handling the coronaVirus Outbreak. Economic advisor larry kudlow questioneds beijing questioned beijings transparency. Kudlow expressed disappointment that u. S. Health officials have not been able to study the outbreak from the frontlines in wuhan, despite offering to send several experts for a couple weeks. Alibabas u. S. Shares fell after it warned the coronavirus will hurt Revenue Growth. It since the outbreak is undermining production and changing Consumer Spending patterns. The chinese ecommerce giant made comments after reporting Strong Financial results for the december quarter. Revenue surged a better than expected 21. 3 billion, while net income rose 50 . 58 . Coronavirus is being blamed for the first global decline in oil demand in a decade. By iea says demand will fall for 35,000 barrels a day in the First Quarter. 435,000 barrels a day in the First Quarter. The iea says Global Growth and consumption might fall by 30 , but at this stage, it is difficult to be precise about the full impact of the virus. And the virus is threatening the biggest hit on japans economy since 2018. Economists report a 1 slump that could turn into a recession. A sharp drop in Consumer Spending. The slide will be the worst since the Second Quarter of 2014, where a previous tax increase on the economy shrank by 7. 4 . 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. Im su keenan. This is bloomberg. On with theget latest on the market with our cross assets reporter. When you speak with investors, what is the mood . There continues to be this pull toward resiliency, toward optimism. It is amazing. There was a line from a ubs note that jumped out at me. There really isnt much of a bear case. Then they said, despite the coronavirus, which you can take as you may. That white line, the s p 500, has taken on the return you would have gotten if you had a 10 year note since the coronavirus dominated the conversation. We saw a nice rally in bonds. But we are seeing investors want to get in on this rally, whether it is in the United States or china. I spoke with many investors who look at this as an opportunity to build up their exposure to emerging markets and china further on. Haslinda what is on the docket next week . Next week is a relatively light week when it comes to economic data. We will be watching the rollout of the coronavirus and what it looks like from here. We will get the Unemployment Rate out of hong kong, exports from taiwan. Earnings season continues to go on. We will need to hear from companies what the impact is of the coronavirus. Quarter last great year, but says this quarter is a totally different story. That gives insight into how the coronavirus is impacting companies at this time. Haslinda thank you so much. Lets turn our attention to twitter. Twitter will set of the first asiapacific engineering up the first asiapacific Engineering Firm in the city. It hopes to improve Service Availability and reliability for users. The center is part of twitters extension into what he calls a highgrowth region. Lets bring in the companys asian chief asia chief, maya hari. I wonder whether this latest investment is testimony to singapore being the center of engineering for twitter. It is the first time we are building a Global Engineering center out of singapore. The intent is to support our global objective as a company and access the worldclass engineering talent we have in singapore. Teamact that we have this contributing to global development, whether software engineering, product engineering, and sitting close to our users and customers in the asiapacific is a great opportunity. Haslinda that does not necessarily translate to more hiring in this part of the world. In terms of headcount, twitter had an increase of 24 last year. Jack dorsey said it could be around at least 20 this year. Maya we are definitely investing across functions in many parts of the country, but certainly here in singapore and the asia pacific, we will higher at least hire at least 65 engineers. It is an opportunity to bring worldclass jobs to the region. Haslinda what kind of growth are you anticipating in the asia region versus the u. S. Or europe . Maya we came off a very exciting quarter. We demonstrated monetize about tizablee growth mone audience growth. We also saw really strong revenue. Globally, we had our first excess of 1 billion quarter. We have amazing prospects of growth coming off the back of revenue product launches. We see the demand for video advertising and products to launch new products for our advertisers stay strong. We launched a new product in january across asia which enables brands to be the most talked about company on the platform. That is an exciting one. We have seen incredible demand, orther xbox in australia netflix in indonesia. Our products are really working. Paul is there also more Infrastructure Development to look forward to in the asiapacific from twitter . Maya we are investing with the Engineering Team and Engineering Center we are colocated with. Lookingof this, we are forward to contributing to Global Product Development as well as reliability. All of the infrastructure enablement that goes along with it is certainly an investment we do as part of our engineering efforts. Paul your latest Earnings Release had pretty reasonable gains, up 3 . How much room is therefore ad Revenue Growth there for ad Revenue Growth in asia . Maya conversations around the platform are really growing. If you think about the fact that olympics is in our time zone in asia this year, as will as conversation well as conversation trends we are seeing, the south korean entertainment scene with parasite being the most talked about moving, there is a lot movie, there is a lot to talk about in the asiapacific. Haslinda it is a u. S. Election year. President trump tweeted every single day. We see Mike Bloomberg himself respond on the twitter platform. How is twitter shaping the u. S. Elections in asian social media . Maya twitter has been an integral part of elections. If you take all of the past years, whether it is governments or government candidates coming out and being able to put their principles out there, whether it is consumers interacting with the candidates, this is something twitter has always been at the forefront of. Last year, we had so many elections across asia. We saw this play out in many ways. We expect this will continue to happen with the u. S. Elections this year as well. Haslinda how is twitter fighting fake news . What is the priority for twitter . Maya we are vigilant about misinformation. We have invested heavily in technology, particularly, to be proactive when it comes to trends and search and other common areas. One example, we are talking so much about the coronavirus now we launched an initiative where we tweaked the search prompt for any users searching about Health Issues the top answers come back from authoritative sources like ministries of health. It is a way for us to get authentic information up ahead. This is one of the technologybased assets we have to be proactive around this area. Paul as you mentioned, a couple megaevents coming up in 2020, the olympics in japan and the election as well. There are fairly giddy expectations about what 2020 holds. Do you have to manage those expectations to a degree . Maya i think it is a unique opportunity for us with these megaevents. We see advertiser sentiment continues to be strong with twitter. The fact that we are the chosen platform for brands to launch something new puts us in strong stead. We are looking forward to working hard this year. We certainly have our work cut out for us. Haslinda always good to have you with us. Twitters asia chief, maya hari. Still to come on the show, India Venture continues to fight for survival as its net loss from the last quarter widens much more than expected. This is bloomberg. Paul an indian unit reported a greater than expected loss. This came amid concerns about the telecoms operator ability to stay in business. What does this loss mean the companys future . Is more than expected. Provisionready made a in the last quarter. This is more than expected. The revenue increase is much less for vodafone. These things are indicating vodafone is still under pressure. Have said companies clearly they are not in a position to inject more fresh capital into its indian unit. One of the cofounders of vodafone has said it will have to shut the operation if they are not getting any help from the indian government. Vodafone isay is still under pressure and it continues. Haslinda are there any Key Developments we should be looking for in the coming days . Today, the Supreme Court is hearing the modification of tel com operators. Another operator is asking for time to pay the past dues they have been asked to pay up, a combined total of 13 million rupees. Supreme court will be giving out its order, its observation on the past due fees. This is critical for at least vodafone. Haslinda thank you so much fo that. Indians markets have just opened. What to expect from todays session. Equities snapped two days of gains. We recovered yesterdays losses. We had a positive start. Gains almost closer to 50 points. We are back above the mark of 12 ,200. Broader markets have opened in positive territory. Nifty bank, which was under pressure yesterday, and indian equities were under pressure as recent inflation from the month of january was at the highest they have seen since may 2014. The was reaction on the back of that data, but we have recovered from yesterdays blow and it is a positive start. Paul which stocks will you be watching on the back of earnings . Let me begin with vodafone. The stocks opened in the green. We are seeing gains. If you look at earnings as well, there is 2 growth which came in on the top line. The iphone improved in the corresponding quarter. Those were the green shoots in the numbers. Numbers in line with what the industry was expecting. Bottom line growth of about 39 . Trading around alltime high levels. The industry reacted negatively. The margins contracted. Volumes declined nearly 3 . You have brokerages like Goldman Sachs and Credit Suisse maintaining their readings. It indicates there is Downside Potential for the stock from current levels. Us. thanks for joining still to come, singapore wooing the worldss biggest Money Managers. What the city state is doing to lure more capital and whether it can compete with other offshore havens. This is bloomberg. Paul some breaking news on the bloomberg terminal. Bad news for gamers. Sony says it is struggling with the playstation 5 price due to costly parts. Sony losing a little ground in tokyo trade at the moment. Sony is looking to gradually replace the ps4. That is six years old now. They tried to get the playstation five out at the same time as the upcoming xbox. Sony says it is struggling with the price due to costly parts. We will bring you more on the story as we get it. Haslinda singapore wants the worlds biggest Money Managers to call it home. A new Corporate Structure designed to make it more attractive to domicile funds in the hub. Seriously, Money Managers are already here, no . They are. They have a lot of locallybased fund managers, but funds are domiciled in other places, luxembourg so this is singapores bids to become a Fund Domicile and and management hub. Haslinda what are the chances . We know when singapore wants to do something [laughter] chance, buts a good we have to wait for these funds to launch. Anhave this whole gamut, ecosystem that needs to take place before we know whether these funds will work. But experts said it has a good chance. Paul in the modern age, it doesnt matter where these funds are based given everyone is linked by the internet anyway. Ishika surprisingly, it does. We had a story about how investors are slashing trips to meet with hedge funds because of the coronavirus. Daytoday interaction really matters when companies and investors are doing due diligence. Jurisdictions have their own tax benefits, privacy settings, so it does matter where your fund is based. Paul thank you very much, our Southeast Asia stocks reporter. Lets get a quick check of the latest business headlines. Nissan cut its fullyear profit outlook for a second time and will scrap its yearend dividend to investors, including a top shareholder. Shares of renault dropped to its lowest level in seven years. Renault owns 43 of the japanese carmaker. Outgoing Credit Suisse ceos final earnings have been overshadowed by mixed results. A loss of 61 million in the company broke down gains in other key businesses. Friday is his final day at the bank. The ceo said his legacy was marked by costcutting, restructuring, and in his final month, a price scandal. These things are going well. I have no major regrets. Intalk about tax breaks, but the big picture of things, the strategy has worked. Paul bloomberg has learned ubs is looking at internal and external candidates for chief executive after its longterm ceo revealed his plans to step down this year. Ubs is the latest European Bank to consider changes at the top in an industry beset by sluggish growth. The bank cut its targets for the second time in two years. Chinese shares in a website sell on fell on news that its home agent Home Maintenance service is being delayed as the coronavirus cripples demand. Its ipo financing round has not been completed. The offering had been expected in the first half of the year. Biggestf 58. Com saw the decline since september. A headline to tell you about indonesias biggest private carrier. It is pushing back its ipo to the Second Quarter on the coronaVirus Outbreak. There has been expectations that lion air will raise at least 500 million, according to people familiar with the not. With the matter. A bank canceling its mumbai investor meet, citing coronavirus concerns. A number of events being canceled because of the coronavirus concerns, including the rugby game in singapore as well. Taking a look at markets, how is it looking . Paul reasonable gains. The shanghai compass it is composite is higher. Gains on the Chinese Technology index as well. Hang seng up two thirds of 1 . Japan in negative territory. We heard reports that japan had its first fatality linked to the coronavirus. The nikkei off half of 1 . Haslinda that is it from Bloomberg Markets asia. Im Haslinda Amin in singapore. Paul im paul allen. The best of bloomberg middle east is next. This is bloomberg. Welcome to the best of bloomberg daybreak middle east. The coronavirus death toll mounts. Fed chair Jerome Powell threatens the virus threatens growth around the world as u. S. Stocks break more records. Troubles continue to mount. Will the uaes biggest operator fall on allegations of financial misconduct . The coronavirus continues to