Hong kong. , 3. 6 down. Hshares. Eight shares. Indeed, the volatility. 31 spike to the upside. Earlier, the hong kong dollar weakening. It has been right up against the strongest part of that. It went down to the lowest in six weeks. We have come off of that for the time being. Seven hong kong dollars. 75 hong kong cents. Now looking is pretty for the rest of the region as well. It is putting much red across the board. Tie one below its 10 day moving average. Currently down about 2 . The taiwan index is down about one and a half. Losses for the sti. Down about 1. 9 . Singapore grappling with the virus even though there are signs of stability. The city running out of time to hold an election. The benchmark down a tense of 1 . Down 8 10 of 1 . March numbers drink to the lowest mark numbers shrank to the lowest in 10 months. Crude down 2 . 3305. Crude at such levels could raise the possibility that shale producers slowly turn on the taps again. Gold futures getting some upside. 17, 26. Gold has been up for most of the past weekend. The aussie dollar slightly weaker. Three tens of 1 . Rishaad were going to get straight over to beijing and join Tom Mackenzie who is on location. In g vacant is china how significant is china in dropping the numerical gdp target . Tom of course, overshadowing the National Peoples congress has been the impact of the coronavirus on chinas economy. A more toxic relationship between beijing and washington. The Economic Impact front and center. We saw First Quarter gdp contract 6. 8 . Most economists think you are not going to get above 2 growth for 2020. No big surprise china dropped its gdp target. It is the first time they have done this since 1994. They have not wanted to straitjacket themselves into setting themselves in artificially high target. There is a question as to what extent policymakers will read into this. It has been that gdp target in the years previously, something of an anchor for chinas policymaking. It ties into how much fiscal and monetary support we will see from china. We got some lines on that from the premier. Youre looking at sovereign bonds issuance of about a trillion yuan. That is about 140 trillion u. S. Dollars. That will finance some of the spending to support the economy and businesses hit by the coronavirus. The local government level, you have seen the quota for special insurance bond special issue and bonds. Youre talking about Infrastructure Spending as well. We are hearing about more relief. The premier says small and Mediumsized Enterprises make up about 65 of employment in china. Central to the report. The premier saying there is going to be less on growth. More on securing quality jobs for the workforce. They set themselves a target of 9 million additional urban jobs by the end of 2020. That is below 2019s target. The official and plummet rate is 6 . Most economists think it is somewhere between 10 and 20 . The jobless rate is key for chinese policymakers. They are concerned about social stability and the legitimacy of the communist party. No surprise they are putting an emphasis on jobs. The deficit target was increased to 3. 6 from 2. 8 . They are widening the deficit to be able to fund some of the stimulus to support the economy, which remained under significant pressure. From the perspective internationally, the biggest story has to be the perfection of hong kongs security law. This is something sending equity markets in a tailspin in hong kong. 3 plus of a decline. We have at the moment a devil in the detail being revealed. Seems that is right that the National Peoples congress will vote on a motion to compel the Hong Kong Legislature to enshrine a security low into hong kong law, into the basic law. This is something the Hong Kong Legislature, the government has been trying to get on the books for years. You will remember of course in 2003 when they tried this, its part street protests. It sparked street protests. Beijing says it is needed to help Police Combat what they describe as terrorism and to ensure chinas territorial integrity. Beijing says the security law is very normal. Of course, opponents in hong kong and prodemocracy activists are deeply concerned about the implications of a low that would allow officials to crackdown on sedition, secession and foreign interference in hong kong. That is a concern for the freedom of press and ngos. You have had the likes of and opposition lawmakers saying this could spell the end of hong kong as we know it as an International City. How does the u. S. Respond . Of course, trump is likely to come under pressure from democrats and republicans to respond. Ee said he may tak steps. There was a bill passed that gives President Trump and the administration the powers to oversee the u. S. Relationship with hong kong if they see it is being undermined in terms of its autonomy. They can take action to remove some of the special trading status hong kong currently enjoys. Major implications for hong kong on economic front. Also maybe political unrest as well. Protests potentially in the pipeline. It seems beijing is trying to bypass the Hong Kong Legislature with the security law. Relationsu. S. China may be worsening, yet beijing reiterated it will stay committed to the trade deal. This seems to be one hinge that is keeping this relationship from completely falling apart. It is this phase one deal. Both sides have reiterated they remained determined to implement the phase one deal. We got it publicly as you could get it in terms of read rating the stance. At the National Peoples congress saying that china would work with the u. S. To implement the phase one deal. The practicalities are a key question because china has committed to buying 200 billion of u. S. Goods on top of 2017 levels. How they do it as the economy remains in a very weak place mens the question and in what time of timeframe as well. They are going to try to stick with the phase one deal. Haslinda great stuff. Tom mackenzie in beijing. Now for some first word headlines. Nancy pelosi says the house will raise view will review the senate bill that will impose restrictions on Chinese Companies listing in new york. She admitted the legislation had brought two Party Support in the senate but said the house would give it consideration. The bill put further pressure on u. S. China ties. Gauges key inflation stands negative for the first time in more than three years. Consumer prices excluding fresh food fell 2 10 of 1 from a year earlier. The weakest reading since 2016. That is double what economist had been expecting. The data comes as the doj held an unscheduled eating offering lending support for Small Business but no stimulus. Japan may lift the state of emergency in tokyo as soon as monday. If the downward trend in Coronavirus Infections continues. Restrictions have been eased in osaka and surrounding reasons stranding regions. Governmentsays the will always put People Safety first. Brazil has reported a daily record of 1188 deaths from the coronavirus, confirming again it is the latest pandemic hotspot. The country of 210 Million People reported 18 and a half thousand new cases, slightly down on two days of infection levels. Victims were older 50 years old. Ahead, special advice to the China State Council joining us on the program to discuss some of the key issues facing beijing. Going to be discussing economic policy, relations with the United States and hong kong. Officialslso, the weeding singapores fight against the coronavirus. That as the city looks to reopen its economy. That is all on the way. This is bloomberg. Haslinda a quick check of the latest business flash headlines. Targeting Luckin Coffee billionaire chairman as they try to recoup losses of more than 500 million. The Singapore Branch is taking a court order to appoint liquidators, which is controlled by a family trust. Loan fromed on a luckin shares last month. Baidu considering delisting. Discussions are said to be at an early stage. Coming after the Senate Passed a bill for companies that may be under the control of foreign governments. Bloomberg itn told is just rumor and declined to comment further. Alibaba reports Fourth Quarter earnings later with investors looking for signs of an economic recovery may china as it emerges from the coronavirus. Analysts expect a rise in online sales showing an improvement and a National Retail trends. The results, as alibaba is facing increased scrutiny amid rising tensions between the u. S. And china. Shares closed lower ahead of earnings. Earnings season has seen japan drop sincehe worst the financial crisis. 26 in the First Quarter compared with a year ago. Phased in results as bottom line has clapped depend seeks as japan sinks into recession. One of the worst results in asia. Morgan stanley says it does not expect to return to normal officebased work this year. The ceo. The ceo told the Shareholder Meeting bank is working on a post virus environment and will not for staff to return to the office anytime soon. He expects about half to be back this year. Facebook aims to hire more Remote Workers any areas where does not have a physical office presence. Mark zuckerberg says the plan will start immediately, particularly in engineering. He says Remote Working could make up as much as 50 of facebooks workforce in the next decade as staff become more productive. Rishaad china is going to be moving to pass a hugely Controversial National security law for hong kong. The primary speaking at the National Peoples congress. The move has sparked widespread anger and criticism. With aiscuss more professor of International Relations and an advisor to chinas state council. Professor, why are they doing it now . [indiscernible] rishaad correct. Has sovereignty since 1997. Which the chinese Central Government has respected. Enacted to profit any action from hong kong [indiscernible] nearly two site nearly two decades since hong kong itself is unable to enact regulations. Six months of violent actions by hong kong radicals. Before the break of covid19 pandemic. Greatly urged the program. The Chinese Government determines to do it through a National Congress according to the [indiscernible] professor, rishaad professor, i just want to get your view here. Of thee imposition National Security wells in fact security laws in fact go around the legislative councils 23,ility to pass article represent a violation of the whole principal of one country, two systems . I do not think so. Implementation of one country, two cities. [indiscernible] on i think if we rely hong kong [indiscernible] especially before the outbreak of the pandemic in hong kong. Six points of isla actions by radicals of violent actions by radicals. Determined to make a fixation of regulations. Shoulda professor, taiwan be concerned about the security law in hong kong . After all, china has been trying a onee taiwan with country, two system policy. That nk [indiscernible] in order to delay investment an action for hong kong. [indiscernible] haslinda the concern has been project superiority including in areas such as health care. I am wondering if the pandemic has somehow dented chinas strategic positioning as a global power. It is a whole system, the wuhan lockdown. [indiscernible] so now, china controls the epidemic. At the same time to recover the economy. [indiscernible] a huge challenge. Difficulties for the Chinese Government, especially in consideration of the economy situation. Professor, does this move going back to the security law again. Does this jeopardize the favorable special trading status washington does extend to hong kong, and if that was removed, they could hurt china in some not by indeed, ultimately being able to benefit from having a separate legal system, a separate currency as well for hong kong. Does it worry you . Think the chinese Central Government is taking into consideration all of the [indiscernible] therefore, it would impact on chinas whole economic recovery. Now, Central Government make a decision. Regulation is important. Maybe consider that they should do it. [indiscernible] rishaad thank you very much. Coming up, having a look at the market action. Rishaad a check on asian equity markets. Story. A down arrow just looking at what is going on with the chinese indices as we head toward lunch break. Asian stocks are down. The bulk of the losses after china announced its plan to impose a National Security law on the city. We do have tensions between washington, d. C. And beijing being ramped up as well. That is adding further downward pressure for Equity Investors who remain fairly pessimistic in the session. This last trading day of the week. Markets we had the disappointing with the meeting. Pick off the much anticipated meeting. Kicked off the much anticipated meeting. Not wanting to give a growth target for the year, citing the virus and global uncertainties. He is looking to control financial risk. A lot of jobs. Across the much red board. More to come. This is bloomberg. Haslinda live pictures of the lion city this friday. Almost 11 30 a. M. Singapore is down along with the rest of the region. The sti down more than 2 . We have Company Developers among the biggest today. Singapore grappling with the virus even though there are signs of stability. Has the highest infection rate in asia. That is impacting plans to hold an election with the government having to be dissolved in january. Quite a bit of a headache for the government right now. The sti down about 2 . Lets get a look at first word headlines in new york. China has opened its premier political event of the year, abandoning a numerical gdp growth target amid the fallout from the coronavirus and the wider global uncertainty. Delegates were where masks and observe social distancing as the commons gathers in beijing. The National Peoples congress was delayed for two months. Decades has cut powers to millions. This likely is weakening to a tropical depression as it moves into anger. Millions of people have been moved amid concern india has already faced its fullyear contraction for four decades. 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 corrina metal. Im karina mitchell. This is bloomberg. Rishaad lets get to the market action. Just getting japan back into the frame. Asian stocks going one direction only. That is south. Hang seng extending losses to 4 . The bulk of the losses coming in this territory. That after the National Peoples conference did announced plans to impose a National Security low in the city. It is planning to further escalate the tensions between United States and china. Fed losses are also for the nikkei 225. 7 10 of 1 . Equity futures in the u. S. And europe on the way down. Accusations from donald trump. That came in the form that it will safeguard sovereign interest and threaten countermeasures. The security measure could be one of those countermeasures. Planning toeijing sell bonds. Targetcover amid the gdp amid the uncertainties from what is happening with the global pandemic. That is the position equities are in at the moment as the hang seng goes to lunch in under half an hour. It is a down arrow story. Hong kong leading the lurch lower. The u. S. Futures pointing to a lower open. Economic recovery from covid19 would depend on availability of affordable rapid test kits and the rollout of a vaccine. Thecity intends to ramp up number of tests carried out each day. Lee. Bring in vernon thank you so much for joining us. Singapore is spending one of his longer period of restrictions. Overlyapore being cautious or is the situation in singapore much worse than everywhere else . Yes, so to answer that question, i think every countrys strategy is different. We are essentially reacting and responding to the situation as we see in singapore. There trying to control spread of disease through a containment strategy. Cases tohrough testing detect them, Contact Tracing and conducting surveillance as much as possible. In addition to that, we are or we have ruled out many communitybased measures to reduce the spread of disease. That has been effective in bringing the Community Transmission rate down substantially. Singapore is waiting for a chief for cheap and fast test kits. How far away are we from that . Vernon there are many test kits on the market at the moment. Do arets we primarily still the pcrbased laboratory of tests. We are including serological tests in our testing portfolio as well. Always looking for better, more effective and more efficient testing methodology. Theave to look at what are research being done on the horizon and to validate the test kits and see if they are able to be incorporated into our strategy. Hopenda what is the best for these test kits . Where will they come from . Think there are a lot of presets going on internationally. It is difficult to determine exactly where the next advanc