Transcripts For BLOOMBERG Bloomberg Daybreak Asia 20240712

All report Record Numbers of daily deaths. We are getting set for samsung results. We will find out how the pandemic has hit south korea smartphone makers later in the show. A look at how we are shaping up this thursday session. We will start with u. S. Futures. All eyes really looking at the fed, looking at jay powell. He said this is particularly the biggest economic shock in memory for the u. S. Prospects for further monetary stimulus, just incremental progress when it comes to negotiations, more fiscal stimulus, i should say. Chicago nikkei futures looking unchanged. It is a massive earnings day in japan, expecting results from hitachi, panasonic, as well as waiting on japanese retail sales. Retail sales coming out of hong kong later on. That is expected to be another grim picture. The yen, wonderful 97 is where we are. Steady below that one of five handle, the dollar coming under pressure from that super dovish fed and the dovish comment from fed chair powell. 41. 37, getting that sharp drop we saw in u. S. Supplies and inventories. Lets turn to the fed. Centralmystery even the bank does not know the answer to is how long and deep the economic slowdown will be. Lets bring in our Global Economics and policy editor and our very special guest. He spent almost two decades now john buckets school of International John Hopkins School of international studies. This time around, the origins of the problem are very different from what we saw in 2008. The fed staying as dovish as possible. Is this the right response . There is no question about it. The markets began to collapse in the way we have never seen before, the governments around the world ordering effectively shutdowns their economies, the monetary banks and theral fed absolutely crucial to boost confidence, provide liquidity, too tight economies over until they can restart. The crisis of the virus and its intensity. We see more fed action. We have seen a positive u. S. Yield premium no longer supporting the dollar. The dollar continuing to weaken. Is this a macro theme we can point to now being a permanent thing Going Forward . I think that is quite premature. We have to remember we can use an index Effective Exchange rate index for the dollar in the wake of the Global Financial crisis, the dollar hit bottom at 93, pete last march at 130. The latest reading is only 127. It has come down just a little bit from after a long run upwards. That is not to say the line could not continue, but it would be premature. Speaking of the Global Outlook and the global connection, on day one of the fed meeting, it announced it was going to extend the length of 7 actually all of its programs, emergency Lending Programs after the end of the year at least, but they extended their dollar liquidity line today. Are they sending us a signal that they are really not so optimistic about their recovery, this vshaped recovery, but the virus lasting until they have to have everything on deck because it could go on and on for longer than people thought when we were back in march and april. That is implicitly one of the messages, and i think explicitly, chairman powell suggested the uncertainty regarding the virus was one aspect. When he called for more fiscal elsewherethe u. S. , implicitly, it is uncertain when that will arrive and exactly what scale. It still modest, but some indication of a surge of a virus in a place we thought had conquered it conquered it. We are going to have the u. S. Election creating uncertainty. It seems a big message of everybody keeps on, we are here for you, we are going to continue to be supportive as possible well into the new year, implicitly into the new u. S. Administration. A lot of these go to g7 countries. They dont go to everyone in the world area what if you are an emerging market country . Who is going to take care of them . This is a very important point, at least i think so. In the wake of the Global Financial crisis, the very biggest Central Banks created permanent unlimited swap lines among themselves to create the to avoid the kind of problems that occurred during the financial crisis. They also provided swap lines to another group of developed countries and emerging market economies, brazil, south korea, and singapore. The latter two are hardly emerging markets. The imf has created new facilities for the poorest economies. The imf and the world bank, a deferral of debt service for the poorest countries, thats not going so well. There is a seeming hole in the sense that for the very big emerging market economy of south africa, turkey, indonesia, argentina, these are all g20 countries. There is no explicit facility that would help them out if they run out of run into trouble. Be your solution to this problem . The imf should create it has created what they call their shortterm liquidity facility facility with limited eligibility, very severe, though it is very unlikely those countries could qualify, i think they need to make that facility generally available to all imf countries. The difference between the financial crisis seems to be the cooperation and coordination efforts. Back then we saw stimulus measures being coordinated among these big nations. This time around we are not seeing anything on that or even on how to get rid of this virus. Will the outcomes be different . See. Are going to the point is, we will take it. The governmental response, the policy response, and the Global Financial crisis actually was relatively slow until the collapse of lehman, then produced a coming together. Coordinated action. I was convinced that the time that sense of coherence and collaboration among the largest economy boosted confidence things would go well. This time around, countries have reacted very rapidly and massively. The actions have been larger than they were in the financial crisis. They have been very much solo acts, uncoordinated among each other. They have not been inappropriate, but you had foregone the kind of confidence boost that would come from a sense of collaboration. One of the big problems on another front is the fact that as powell said today, lots of people are in close proximity jobs that may not come back in large part because a lot of customers dont want to be in close proximity. What can the fed do about that . Seems like there is very little they can do. Exactly. Very little. They do not provide liquidity. They continue to private provide liquidity. What that would imply would be potential credit problems that can leach over into the financial sector. Hopefully that wont happen, but that has to be a contingency the fed and the government in general is thinking about. Surely fiscal policy would be more appropriate and required in such a circumstance. It is a real risk. At the press conference today, powell sidestepped the question, what more can you do . There was a lot of question about, maybe he will announce something about yield curve control or they will wait until september. I think powell has said, we have done a lot. We can do more if we need to, but basically, fiscal policy is where its at now. Yes indeed. Im sure thats what he thinks. As a central banker, you never want to be you never want to say, im out of ammunition, theres nothing more i can do. But it is clear at this time, they have been carrying a large part of the burden. For sure, the kind of problem we foresee looking ahead really call for more fiscal action. Think the risk of deeper recession is . In april, things were bad. June, people were thinking, we will get a recovery in the second half. The way the fed talks, the way people are looking now, they were hoping we will at least hold steady. I think more people are worried about a turn down again. Where are we heading . The chairman was pretty clear. The virus, the severity of the virus and its impact is going to have a very large say in what happens to the economy. I suspect certainly chairman powell did not want to be engaged in trying to sell a rosy scenario. The message was we are ready for anything. The speculation about yield curve control, the idea is that to keep longterm Interest Rates low. Longterm Interest Rates are currently at record lows. Are we headed for new downturn . Impossible to say. Certainly not the most likely outcome. If the virus required a new lockdown, who knows. It does not seem to be the most likely occurrence. It is something you have to give thought to as a concern contingency. Great to have you with us. To bloombergs Kathleen Hays as well. We have an alert on the bloomberg. We are getting the latest budweiser numbers. First half revenue coming in at 2. 58 billion. When it comes to net income for the first half, 185 million, their secondquarter normalized net coming in at 228 million. This will set the stage for those food and drink Companies Across asia as we continue to demand being impacted by this ongoing pandemic area pandemic. Samsungs secondquarter results do this hour. We will discuss with a Financial Group Senior Analyst. Plus a bruising day protects biggest names on capitol hill. This is daybreak asia. Hong kong police have arrested four people between the ages of 16 and 21 on suspicion of inviting secession as part of the citys new security law. The senior officer told a News Conference the suspect wanted to establish a hong kong republican would fight for it by uniting proindependence groups. Police say the youth made comments on social media. Send is reporting to 35,000 troops to the himalayan border with china as tensions continue to simmer their. 20 indian soldiers along with an unknown number of chinese troops were killed during skirmishes in midjune. Both sides have been sending reinforcements to the area along with artillery, guns, and tanks. There have been talks, but no resolution. The u. S. Plans to withdraw 12,000 troops from germany. Inf the troops will stay europe, the rest will return to the u. S. That will leave 25,000 americans stationed in germany. President trump had been complaining for some time that berlin was not paying its feet to nato. The process will take years and could be reversed if trump loses the election. Global news, 24 hours a day, on air and at quicktake by bloomberg, powered by more than 2700 journalists and analysts in more than 120 countries. This is bloomberg. The leaders of americas withst tech firms lawmakers on capitol hill. Our service is about connection and our Business Model is advertising. We face intense competition in both. We have competition at the developer side and the customer ite, which is essentially, is so competitive i would describe it as a street fight for market share in the smartphone business. In commercial and major, we see bigger competition in travel, real estate. We dont have a dominant share in any market or product category where we do business area if we do not keep innovating, someone will replace every company here today. Let us get more from our bloomberg tech anchor who has been watching this all day. Emily, we spoke with David Kirkpatrick a little while ago. He said this was a factfinding Discovery Mission for lawmakers. What did we learn today that could potentially spell trouble for the big tech giants later . One thing we learned is that lawmakers could come prepared. We know they had gone through millions of pages of documents in preparation for this hearing. Democrats seemed more organized. They each took on an issue to make. They came out swinging. In many cases you saw ceos not being able to complete their answers, put in a tough position back into a corner. Cook seemed to answer questions better than the others. He was not as much of a target. But all four had some tough moments. What we learned is that congress is very concerned here. This antitrust committee seems to believe that these companies have monopoly power and that potentiallyction, aggressive regulatory action, is needed. It will be interesting to see how they take with have learned and apply that to their current investigation. Jeff bezos has never testified before congress. How did he do . There were moments where bezos was tonguetied. He could not finish his answer. There was a Fiery Exchange between the chairman and basis about how amazon treats their thirdparty sellers. He had an account from a seller that described amazon as a drug dealer, literally. A drug dealer. That did not land well with bezos. He did not necessarily have a good response. He also took the tack saying he could not confirm amazon had violated some of its own rules, that amazon had not use data on thirdparty sellers to further the growth of their own products. It was interesting. We did not hear him speak publicly often. It was interesting to see him in the hot seat. This almost overshadows the fact the big four are announcing results later on thursday. What are we expecting . Could not have come at a worse time for these companies. Facebook was actually supposed to report earnings today, but because of the hearings, they moved earnings to tomorrow. You have all four reporting on the same day, which is my tenure covering technology, i dont think that has ever happened. Tomorrow, they are going to be on their earnings call. They are going to have questions from analysts. All of them weathering a pandemic. For example, apple, the focus will be on the iphone number. We all need our devices at this time while 70 people are still sheltering in place, but also a lot of people have lost their jobs. Our people buying more and new devices right now . Perhaps not so much. We have seen the numbers not look as good for other smartphone competitors when it comes to google and facebook, obviously the focus is going to be on advertising. The ad market has seen a huge contraction. Facebook specifically has been in the middle of a massive add boycott. They have huge advertisers that have pulled their campaigns from facebook because of how they believe facebook does not handle hate well enough on its platform. We could see that reflected in this particular quarter. With amazon, its going to be an interesting story, obviously, somebody people have been dependent so many people have been dependent on amazon getting what they need to them. Amazon also has the benefit of their Cloud Business which helps to buoy the ecommerce business. It will be interesting to see how that plays out, but either way, a big 48 hours for tech ceos. Emily chang with the latest on that ongoing showdown in congress. Coming up, japan is battling virus surges in tokyo and osaka. The country looks to be avoiding the worst of covid19 as its death rate drops. We will analyze why. More grim milestones on the coronavirus front. Is over death count 150 thousand with texas seeing 313 deaths in one day. Brazil, japan, and hong kong are mired in the worst waves of infections. Our markets coanchor is following the developments. Lets start in hong kong because we saw the virus was contained. It was not. The economy now taking a bigger hit. 9 contraction in the Second Quarter, that was worse than expected. First arter, lowered to 1. 1 contraction. That was the worst trend we had seen ever. This marks four straight quarters where the economy has same sort of stress we saw during the Global Financial crisis. The one quarter behind longest recession on record in 1988. A third wave of the virus clouded the nearterm outlook for the domestic economy. Once the local epidemic is contained, the external environment continues to improve. The hong kong economy hopefully will gradually recover. Say the outlook for q3 remains very challenging. Another quarter of negative growth highly probable they say. Hong kong yesterday seeing another 118 cases. Unemployment at a 15 year high. Sales,n with Retail Retail sales expected to suffer another double drop from june. That would mark a 17th month of contraction. We happen this outbreak as well. Beyond just the capital, the country still needs to be able to bring down its mortality rate. We have seen new virus case the firstver 1000 for time. Tokyo the main focus. 250 new cases. Osaka close to beating the capital as the nations biggest hotspot now. According to nhk, the prefecture reported at least 220 new infections. Osaka seeing a huge spike after nearly a month of zero cases. Vengeance. A surge in totalitys in the deadliest month of the pandemic. Back in may when the country was under a state of emergency, the death rate dropped by 3. 5 . We know japan was avoiding testing during the early phases of this outbreak. The concern was the impact of the virus might be worse than expected. This latest data, perhaps the governments testing method have not led to uncounted deaths linked to covid19. Japan still has the fewest recorded deaths of any g7 country. The question is can we keep fatality levels low . Markets coanchor yvonne man with the latest. Next, samsung secondquarter earnings. Businesses are starting to bounce back. But what if you could do better than that . Like adapt. Discover. Deliver. In new ways. To new customers. What if you could come back stronger . Faster. Better. At comcast business, we want to help you not just bounce back. But bounce forward. Thats why were helping you stay ahead and adapt with a network you can count on, 24 7 support and Flexible Solutions that work wherever you are. Call or go online today. Save without even leaving your house. Just keep your phone and switch to Xfinity Mobile. You can get it by ordering a free sim card online. Once you activate, you only have to pay for the data you need, starting at just 15 a month. There are no term contracts, no activation fees, and no credit check on the first two lines. Get a 50 prepaid card when you switch. 5g is now included with all new data options. Switch and save hundreds. Xfinity mobile. You are watching daybreak asia. Global coronavirus cases that 16. 8 million six hundred 50,000 and theple have died u. S. Has crossed a grim milestone of at least 150,000 fatalities. Florida reporting more than 200 fatalities for the first time. The number of new infections slowed in arizona. Jerome powell has warned of the most severe economic downturn of our lifetime as the fed kept rates near zero. Path forward extraordinarily uncertain and said it will depend on keeping the virus in check. He cannot say how long recovery will last or how long how bad it might get. China has reported 100 new cases of the virus, the most in three months, as restrictions begin tightening at infection hotspots, most of the new cases in shenzhen. The chief executive of hong kong has warned the Hospital System could be overwhelmed. Staying on hong kong, its economy contracted for a fourth straight quarter as the coronavirus, protests, and u. S. China tensions extend its worst recession in 10 years. The economy shrank by 9 from the year earlier. Equal hongarter will kongs longest ever recession. Unemployment has risen to a 15 year high. Global news, 24 hours a day, on air and at quicktake by bloomberg, powered by more than 2700 journalists and analysts in more than 120 countries. This is bloomberg. With the Worlds Largest maker of memory chips and smartphone set to report its final results shortly while we get those numbers out of samsung, lets bring in the Senior Analyst great to have you. Maybe some differences in preliminary numbers, but it felt like the bulls and the bears could have something they could take away from results. It was pretty mixed. Absolutely. Thanks for having me on the program. I want to highlight the fact samsung benefited from a onetime payment from apple. If i were to look at the peer group that has already reported, i expect samsung to talk about continued improvement in business. If you look at samsung revenue, the last time they had 2017 igit roof was growth was 2017. Onr on year we are coming up the contraction in 19 and there is inventory refresh going on. Thes going to continue in second half. This inventory refresh would compare to samsung and the rest of the sector for the first half of 2021 question. Is the market concerned about the pace of server expansions . Does the story hinge on whether we see continued demand on the ship side . Chip side . Obviously if you look at the share price, it has had a significant run over the past week or so. It has been positive for samsung especially on Semiconductor Manufacturing as intel tries to outsource more to the likes of tsmc, simpson are going to benefit. Sam song are going to benefit. On the other hand, samsung would benefit from restructured investment. This is the short answer to your question. That context, the shares have moved dramatically over the past week. We still do not know to what extent intel is going to be able to outsource. We dont know what happens to structure. At the same time when it comes needssungs demand, there thatstronger carriers will have to increase. If anything, they have been very cautious. Next nine months we appreciate you. Onare of course waiting final numbers out of samsung. We will get more perspective on that set of numbers with mark newman, joining us with his thoughts in just a few hours time. We are getting breaking news out of victoria in australia. They have been continuing to battle elevated virus numbers. We are now hearing from a number of local media, including the likes of the australian newspaper abc as well as sky news they could be set to record report i should say a record 723 new cases later today. We will know more in a couple of hours. A much bigger record than the previous record of 532 cases on july 27. Even as the state continues its strict lockdown. Lots more to come on daybreak asia. Let us get a quick look at the markets this thursday. Sophie kamaruddin in hong kong. It is a busy day for earnings season indeed. In japan we have the likes of advantage headlining along with komatsu and hitachi. We are waiting on samsung earnings. They are seeing asian stock futures mostly higher. S p futures little changed while the dollar is under pressure. Treasury futures slightly higher after a choppy overnight session. The five year yield set a record low on a dovish fed saying it will keep short rate and for longer. That message has been heard loud and clear by markets. We will show you the implied fed rates looking lower further in the future with no rate hikes until 2022 at least. New Forward Guidance is expected later this year. The fomc could stress actual inflation given projections it has failed to meet the goal 90 of the time. In australia, switching up chart, core inflation not seen hitting the target for years after it has failed to hit the bottom of the range for 18 quarters. Pulse isationary fueling a pickup in real Interest Rates when the central bank wants easier Credit Conditions to shore up the economy. A stronger aussie dollar posing ashallenge to the rba Commodity Prices are we have just received profits from miners. Iron ore shipment guidance beaten. David springer joins us on the line from melbourne. Lets start with rio tinto. What is the companys outlook . Why are they considering a push into production in africa . As you said, iron ore earnings, the bulk of profits for rio announced on wednesday, we have seen prices rise above 110 earlier this year. Supply the result of disruptions in brazil. See chinass to Steel Industry really supporting the iron ore market. Any are not forecasting downward trend in the demand picture. They see more supply coming into the market from brazil which you would expect to weigh on prices. They have a really confident outlook. They are generating a huge amount of cash. One thing on the horizon that could change the equation is the development of iron ore production in guinea. Acceleration of a project that would bring on a rival Production Center to both brazil and australia. The lum is dilemma is do they twostate backs capex to stay involved . We have the final numbers on samsung coming through. 5. 4 9 trillion won. 4. 8er than expectations of 6 trillion. We are looking at a gradual recovery. Samsung saying the demand for mobile has been the weakness, they are declaring interim dividend of 354 won. We are still waiting for more details. Operating profit just slightly better than the parliament renumber. More or less in line with estimates. Details laterre on. Lets get back to fortescue. The latest to report output numbers this morning. Does the company also expect less shipments in the next 12 months given the concern we may see prices and demand for iron ore tumbling . Fortescue had record shipments. They expect to raise those again in the coming 12 months. In china. Projects they are generating a huge amount of cash. Like other iron ore producers, we are going to see that translate into earnings. We are going to get iron ore producers in the next few weeks and we are going to see very strong earnings from those companies which obviously could be in contrast not only to the mining sector, but many other industries that are grappling with weaker demand as a result of the coronavirus. Dave, appreciate it. To a lot ofpeaking ceo. E metals group that interview is at 11 00 a. M. In hong kong, 1 00 p. M. In sydney. Things electric pretty low gains in operations and the next this year and the next. Aboutabout what the the future of flying an aircraft output. The Second Quarter played out as we thought. Certainly challenging, particularly our aviation business. Our health care business, in the care, we were down in two of our better cash generators. The turnarounds of powered renewables continue, but we came into this thinking this was an opportunity. Even though the nearterm pressures were going to be acute we wanted to make sure we took full advantage of the situation to accelerate transformation of ge. Leadersook at our new who have assimilated into the business, the adoption of principles across the there are a host of examples. Settles,hen the dust accelerate thee transformation of this country. Does it change the emphasis . You mentioned it, aviation was going to lead the way. It is not going to for a while. Health care is important. Does it put health care back up higher in your priorities as opposed to aviation . Businesses int the near term will play different roles. In the operating model we are implementing, it is a bottom up approach. What we want to do in every business is crystal clear. The way it all adds up may be different than what we thought in early march. What we are doing does not really change. We are having to make adjustments in aviation. We have talked about the cash actions there. Coming out, costs 2 billion in cash saved. Atortunately we are looking the departure over the next couple of quarters, probably up to a quarter of our team. Tough decisions to take, but once we clearly need to in light of the demand changes. Relative to what we want to do in the other businesses, that work continues. Progress in the short term will be more important to us than it might have been otherwise. Does it change the arc of aviation . You sell jet engines and you have maintenance. You make a lot of your money off the maintenance. As you talk to boeing, airbus, you look at traffic, doesnt change the emphasis between one and the other . Not really. What i have been so thrilled to be part of these last months is what has been a multidecade leadership on the part of ge aviation and the industry broadly defined. We want to continue to lead this industry. How do we do that . Technology is the core of what we have been able to do with our customers over time. In close proximity with. Customers. That is a great set up. Carrier customers. That is a great set up. We saw in the Second Quarter, we will see in the second half. Boeing and airbus will be talking about different production trajectory over the nearterm than they were nine months ago. That is all right. We remain confident we will see to aviationtime activity levels, passenger miles, and the like. That will be good for everybody. Shares rallied in the u. S. After this mornings positive sales for july. We spoke with Kevin Johnson who says the company has made lots of changes to cope with the pandemic. In the United States, we saw back to whatd comparables were a year ago. That happened in the first half of fiscal year 21, which would be by march of one to 21. In china it is a quarter earlier. Linear, butt be every month we continue to show movement. In july in the u. S. We had 19 comparable. July accelerated that to 14 . As we do new things like we are introducing Curbside Service in 700 to 1000 stores by the end of this quarter, all of those things are helping us give more throughput and capacity to these experiences. That is going to drive this recovery. You have been in china a long time. China is ahead of the United States in terms of recovery. The United States, we have flareups more than what we have seen in china. What is the threat to starbucks recovery from things like whats going on in california and texas and order and arizona . China has also had that. Look at beijing. Several weeks ago, they had a similar flareup. What we have done is we have built store protocols and the operating capabilities for us to carefully dial up the experience as we open up for customers like backed seating or dial it if we need to for a period of time while mitigation is taking place. We are able to do that on a store by store basis. What we have done is we have now built those store protocols and that operating capability into the fabric of how we run the company. That allows us, if there is a stillp in miami, we can stay open, serve customers safely, but we can constrain some things. As the curve flattens and improves, we can dial backup. We are doing that in 32,000 stores and it is working. We built the capability to navigate in a covid world until there is a vaccine and more therapeutics and we get through this. We have done all of that the past three to four months. We have done it in 82 markets around the world. You are building a lot of drivethrus. Also curbside delivery. Are we witnessing a longerterm Strategic Movement away from the third place where you gather like a cafe as opposed to something you just pick up and go on . I do not see this as a strategic pivot away from the thirdplace experience where people want to sit in starbucks and be part of a community. I see what we are doing is complementary to that. If you look at precovid, roughly 80 of our customers before covid were customers who wanted to food and beverage to go. 20 would sit in the cafe. What we are doing is complementing that thirdplace experience with things you know, we did it eight years ago with drivethru. We did it six years ago with mobile order for pickup. Now what we are doing is building a smaller format of a store called Starbucks Pickup, in china, starbucks now, and the smaller format, you can think about it in an urban core market as a walkthrough. Similar to suburban markets where we have drivethrus. Every Starbucks Pickup store ideally would be within a three to five minute walk of a traditional starbucks store that has seating or a cafe. As a customer you can decide. If i want to share food and beverage with a colleague or friend, you can do that. A you are on the go, you want convenience experience, you can go to the pickup store. We are blending store formats to create a network of that. Those are just serving the different need states our customers have for starbucks. It is not a pivot away from it. I view it complementary. Kevin johnson speaking earlier to bloomberg. We are headed to the south korean open. We are going to be watching samsung of course. We broke those numbers earlier coming in with the net income at 4. 6 billion in the Second Quarter. The Quarter Ended in june, beating profit estimates. Samsung saying they expect gradual recovery in demand for mobile in the second half. Also they are continuing to invest in ai, 5g, and automotive businesses when it comes to their divisional semiconductor operating profit, also beating have june we also retail sales out of japan rising 14. 1 month on month, beating estimates. We are headed to the japan, korea, industrially opens. More daybreak asia ahead. Shery good evening, i am shery anh. Haidi and i am haidi stroudwatts in sydney. Ages major markets have just opened for trade. Asias major markets have just opened for trade. The fed signals more stimulus, the worst economic downturn in our lifetime, and jay powell urges congress to boost fiscal spending. Hong kong is facing its worst outbreak of the virus yet, nine record days in the last 20 but no stayathome orders. A lot of businesses remain open. Tiktok attacks Mark Zuckerberg ahead of his appearance on the hill, accusing facebook of being twofaced when it comes to national security. Sophie taking a look at what is going on in japan on a busy earnings day, the likes of. Dvantages along with komatsu we have the nikkei 225 opening yen isby. 3 while the slightly under pressure, back around the 105 handle. This is the latest data from japan showing growth going up in june with a 13 monthly gain in the retail sales number. From south korea, we have manufacturers confidence rising to 57 for august, the kospi adding. 5 . The korean won on the front foot, eyeing the 1190 handle. The b. O. K. Will have a nonrate decision this morning. Samsung gaining ground up more than 1 after beating estimates. Switching out the board to check. 2 . He asx 200, gains of keeping an eye on fortitude after its earnings update. Check out the aussie dollar on the retreat from a 50 month high. We are seeing this one under pressure, given the dovish signaling from the fed. As in the futures slightly lower. S p futures slightly lower. The 10year yield around 57 basis points in the u. S. Fiveyear yield continuing to decline at a record low. Your the end of july, i want near the end of july, i want to shift to the equity landscape in asia. We have growth emerging as a winner over the past month, overtaking momentum and other factors amid earnings uncertainty that is clouding the markets. Switching the market the charge once more, switching the chart once more. We could see a test when it comes to the positivity we are seeing in the earnings estimates. We saw a rebound. We see the estimates revision trading positive in asia. Shery for more market analysis, we are joined by artery getting in Margaret Yang in singapore. We see an aggressive Federal Reserve taking away the u. S. Yield premium that supported the u. S. Dollar. We continue to see this bearish trend in the greenback. What does it mean for asian markets . Good morning. The meeting last night has been largely within expectation. The fed has kept the rate unchanged and committed to do whatever it can support economy and keep the liquidity environment accommodative. Indices,climb in u. S. As well as the broader sentiment was pretty good. Dollar was falling. The dollar index has fallen to a twoyear low at 93. 2 after the fomc meeting. It showed no signs of reversing the bearish trend anytime soon. Asian markets, the fomc meeting was a good signal the fed has committed to purchase more of the treasury securities and the mortgagebacked securities. And they are prepared to increase the amount of stimulus when necessary against the backdrop of virus concerns. Upbeat it was an statement. Asian markets are likely to open higher today. Saw as wecourse we continued to see the fed today, pressed we saw google to session highs, the Precious Metals, this chart showing how much gold has already risen. They are in overbought territory. Where are we going from here a everyone piles into these russias metals . Margaret these Precious Metals . Margaret gold has been on an upward trend. It is coming to an alltime high and we will challenge the 2000 level soon. I think the fomc meeting last night was giving gold price another boost. Monetary policy and poor liquidity environment is positive for the Precious Metals. In the shortterm, the gold price seems to have been overbought from a technical perspective. We are seeing increasing market volatility in the precious days. Prices these few i remain bullish in the midto longterm view of Precious Metals given the low Interest Rate environment and for liquidity and poor liquidity we are seeing. Haidi what about the direction of the u. S. Dollar . Is there further downside and what will it take to reverse bearish sentiment . The fed chair said it super dovish overnight. Sounded super dovish overnight. Margaret i thought the dollar index could reverse last night up to at after fomc meeting, but it did not. The bearish trend of the dollar is pretty strong but tonight could be a critical point for the dollar as well as u. S. Technology shares because the four big firms including facebook, apple, amazon and google will release earnings tonight, which is critical to the market sentiment. If those companies missed earnings targets, market could, andiment could get dampened dollar index could seek to reverse its trend. Right. How much of that does it look to when it comes to the emerging market space and if so, what are some of the pairings you think have more to run . The msci emerging market index has climbed to its highest level since february this year and it was mainly driven by the Greater China market, especially shanghai and shenzhen composite. Shanghai composite climbed yesterday and shenzhen rallied to 3 with different volumes. Upside toere is more go for the china stock market, even for the low valuation and beijing has an accommodative stance to the stock market. I think Greater China is worth looking at. Hong kong is probably under pressure as the hang seng index has largely underperformed direct of asia in the past two weeks, because of the Virus Outbreak and issues surrounding it. Not an apples to apples comparison but china is likely to outperform. Shery our daily fx strategist, Margaret Yang, joining us from singapore. Look at how samsung is doing, it is gaining ground and at the highest level since february, rising for five consecutive sessions. We have the Second Quarter earnings coming in and beating estimates. 4. 6 billion in the three months ending in june. When it comes to the divisional performances, Semi Conductors, itm mobile, beating estimates. They have been gaining ground because there have been speculation perhaps with tsmc running out of capacity, intel worries, that could help samsung as well. We will have plenty more on samsung coming up. Haidi and we have got one stock that is rocketing in the sydney session, fortescue rising to a fresh alltime high. The Worlds Largest iron or producer could be boosting export volumes even further after shipments jumped to an annual record in the numbers they reported this morning. Outpacing and that chinas production is still rising. Y nice signs the market jumping above 110, supported by supplyside disruptions in brazil. Fortescue saying the demand side is looking robust as well. We will be speaking to the Fortescue Metals Group ceo coming up, to get more on the that is atook 11 00 in hong kong, 1 00 out of sydney. Later on daybreak asia, silicon Silicon Valley giants coming under scrutiny. One lawmaker says the government should not bow to the emperors of the online economy. This is bloomberg. This is bloomberg. Haidi lets take a look at one of the movers in the korean session, samsung shares are moving higher after results, final results, beating estimates with the coronavirus pandemic boosting shipment demand and gadget sales. Lets take a closer look at each. It is really hard to overstate the dominance of the Semi Conductor business in this set of numbers. Thatt it is well expected that was one of the key drivers in the operating process, gave up earnings at the end of the month. Earnings inrobust Second Quarter but that kind of fell failed to impress investors. Have not done much even after they beat estimates. I would say that the current excitement around samsung may not be all about the memory chip business. It could be more to do with the nonmemory chip business, given what happened to intel. The same time, it is quite we are getting there to have more 5g smartphones coming from samsung and the expectation of second half was demand from consumers. Mark give us shery give us a little more of an outlook because perhaps more demand coming for consumers, but when it comes to memory chips, we have seen a recovery in prices but the stock market is weakening. Quarter, it is expected given Contract Prices, we would have softening. Tohink already nearly 20 contract, so it is hard for Contract Prices not to soften. Have the prices out tomorrow. Also sk hynix was in china saying moderation in chip prices. If you have the structural demand from working from home, cloud demand and also 5g, this would be shortlisted. And of course the covid19 continues to go through the demand outlook. Structurally speaking the demand is there. We do have the ongoing uncertainty, are you looking at perhaps any meaningful fundamental reform within the company that could affect investors Going Forward . I believe the company has been trying to be more investor friendly. They pay more attention to the minority shareholders as stocks are having a threeyear shareholders return policy. Ever since the scandal came out. They are going to be more willing to share the cash file with minority shareholders. Fingers crossed for the next threeyear plan. Probably i expect that dividend would be at least studying even with uncertain outlook. Dividend 354terim won. Lets turn to Karina Mitchell for the first word headlines. The ceos of amazon, facebook, google and alphabet am they were investigating for more than a year whether the tech giants are squashing competition. Documents presented by the committee appear to show facebook bought instagram to kill off competition to its premier site. People have been arrested between 16 and 21 on suspicion secession asout for the new security laws. A latenight News Conference, suspects wanted to establish a hong kong republic and fight for it by uniting proindependence groups. They say they made this on social media. India will send 35,000 troops to the border with china as tensions simmer. 20 soldiers along with an unknown number of chinese troops were killed during skirmishes in midjune. Both sides have sent reinforcements to the area along with artillery, guns and tanks. There have been talks but no resolution. The u. S. Will remove 12,000 troops from germany. About half will stay in europe. The rest will return to the u. S. That will be 25,000 stationed in germany. President trump has complained berlin was not paying its fees to nato. This could be reversed if trump loses the election. Global news 24 hours a day on air and on quicktake by bloomberg, powered by more than 2700 journalists and analysts in more than 120 countries. Mitchell. A this is bloomberg. Haidi coming up, the surge in coronavirus cases continues across asia with a daily tally rising by a record in japan. The latest details, next. Continuing to say virus cases spike around the region and in melbourne, in victoria we are hearing the government is set to announce a therd 723 cases of coronavirus. Through a lockdown surrounding areas, struggling to contain the outbreak we have seen in recent days. Number turns out to be accurate, that would have beaten the Previous Daily record by 200 new cases. The are hearing there could be new fatalities reported today as well. According to the australian newspaper and a number of other local media. And of course elsewhere we are seeing grim milestones being reached on the coronavirus pandemic front. The u. S. Death count is over 150,000, the highest in the world. Texas, florida and california recording record fatalities. Brazil, japan and hong kong are also in their worst waves. Yvonne man is in hong kong following these developments. Lets start off with japan, we are seeing the virus spreading beyond tokyo. They are able to bring down the mortality rate. What are they doing that is effective . Yvonne we are seeing in terms of the virus cases we hit another milestone of cases passing 1000 for the first time, 250 wednesday, osaka close to beating the capital as the biggest hotspot according to nhk. The western prefecture reported 220 new infections. Osaka is seeing a huge spike after nearly a month of seeing zero cases. You mentioned the country avoided a surge in overall fatalities during the deadliest month of the pandemic. In may, the death rate dropped by 3. 5 . So far it seems like those who have been affected are those of the younger population, it has not spread to the older communities yes. Testing ined mass the early phases of the outbreak. The concern is the impact could be worse than expected. The latest data shows perhaps testing methods have not led to a large number of uncounted deaths linked to covid19. Shery lets turn to india because there has been a steep drop in infections even though overall cases grow at the fastest pace globally. What is going on . Yvonne it seems like herd immunity could be developing in the slums, according to a survey where they looked at 7000 people or so and they found six in 10 slum dwellers have developed antibodies. This is one of the highest population immunity levels known worldwide. You compare that to similar studies done in new york city that found 21 . Stockholm which reported 14 of people with antibodies. We know in sweden herd immunity has been a controversial strategy where the country has seen more deaths than neighboring ones that implemented lockdowns. Impact on population as big as San Francisco into an area the size of new yorks central park. 80 people can share a bathroom area social distancing is impossible and it is a breeding ground for the virus to spread. Why has infection come down . In these slums the product the population is mostly younger, less exposed to the severe cases but still it is either herd immunity or the government has done a good job to contain the virus in these areas. Shery secondquarter earnings have shown the pain brought on by the Economic Impact of the health crisis. General motors reporting secondquarter data better than expected but it is still the First Quarterly loss since emerging from an cropsey. Us to discuss the impact in International Markets like china. China has been recovering, and they were early in the process from when they brought. T down which happened in q1 from there on it has been improving and into two we saw a q2 we saw a recovery. There was a couple of segments where there was luxury or suv that has been showing strength. Within that, we have been launching key vehicles, whether the catalytic cadillac, the buick which is the First Electric suv, so we have been launching key vehicles into the market and we are seeing recovery. Obviously with what is happening in the world economy, we need to watch that closely, but q2 we did see a recovery. Gmid is china teaching anything about what they can expect recovery in the United States . There is some seller some similarities and some differences. Every country is going through this differently. It is difficult to fully extrapolate over here. Whether it is Safety Measures or customers going more digital, production lessons we have learned from around the world, we feel like we are able to leverage the learnings from china and apply it over here. The General Motors cfo there. Lets get you a quick check of the latest business flash headlines. Standard chartered will begin a new round of job cuts as it starts cost production plans put on hold at the outset of the pandemic. A headcount in london, new york and singapore could be reduced. Profit lessned to quarter after getting a boost from trading, net income doubled to 1. 4 billion in the june quarter as revenue rose to a record. The group cfo struck a cautious term tone in the call saying they would review the business portfolio and reduce costs. Singapore central bankers asked local lenders to cap dividends to ensure loans keep flowing. The Monetary Authority of singapore gave the order a week before earnings are due. They say the stress test shows local lenders remain resilient. Plenty more to come. This is bloomberg. We remain committed to using our tools to do what we can and for as long as it takes to provide some relief and stability to ensure the recovery will be as strong as possible and to limit lasting damage to the economy. The path of the economy is going to depend to a high extent on the course of the virus and the measures we take to keep it in check. The data are pointing to a slower pace, but i want to stress it is too early to say how large that is and how sustained it will be. The rise in joblessness has been severe for lower wage workers, women and africanamericans and hispanics. The fiscal policy actions have made a critical distance to families difference to families and it will take continued support from monetary and fiscal policy to support that. The Federal Reserve has been taking broad actions to support the flow of credit in the economy for households, businesses and state and local governments. These are lending powers, not spending powers. There is great uncertainty around the development of therapeutics and vaccines, all them to happen as soon as possible but we cant plan on that. We have got to hope for the worst plan for the best and hope aidi jay powell speaking at Virtual Press conference after the Central Bank Left Interest Rates near zero. His message to do whatever it takes. We have Michelle Joining us. How did the fed change the tools they are using to help the economy . Very little, largely underwhelming, you heard chairman powell leaving Interest Rates near zero. He said that is where they will remain until there is confidence the economy is past the headwinds and on track to achieve the goals of maximum employment and he reiterated that whatever it that dont expect stimulus on removing stimulus for some time. He mentioned that the fed had a serious Lending Program earlier this year and they were doing that they could to preserve the flow of credit, monitoring those programs. He also supported the fiscal stimulus package and encouraged congress is now negotiating. A message on doing more as needed but not a very good outlook. He did emphasize it is going to depend on what the path of the virus is. Shery we are seeing Central Banks doing more of a nonrate side of things. The bank of korea the releasing is releasing a statement saying they will financial and Nonfinancial Companies until november 3. The fact that the fed has remained as dovish as they possibly can, how much room arises across asia for them to do whatever it takes . That is an Interesting Development for the bank of korea. The messages are likely to be as wellreceived here as they were in the u. S. It really doubles down on the feds whatever it takes strategy and gives to policymakers in this region and globally to do the same. Powell said the fed would continue to extend the swap lines for dollar liquidity, and that was one concrete thing they could take away, the support to an additional batch of countries will still be available area but we will see. We have australia, india and thailand deciding policy next week. Some of these economies have very little room to go on Interest Rates. Australia is close to zero. Maybe they can squeeze out more on the Interest Rate cut if they need to. India, there is a split whether they will cut rates. Thailand would like to hold rates but has a lot of options is looking at it is looking at to support that further. Shery Michelle Joining us from singapore. Lets see how all of these developments are affecting the markets and get to sophie kamaruddin. In the equity space we are seeing asian stocks being led higher by sydney. 7 with00 adding fortescue among the best performers, rising to a fresh high. Iron or shipments could be hit further, another attractive dividend in the offing next month. We could see japanese stocks gaining ground as well. The nikkei 225 adding. 3 , softbank amended among the biggest. Samsung is helping to leave the kospi higher, samsung shares testing 60,000 won. Looking at currencies, the korean won leading asia for gains, to a march 5 high with improving business confidence, a catalyst. The b. O. K. Shoring up support, extending loans to companies until november 3. The ringgit at a march 11 high as we see a continued climb in commodities prices, but the aussie pulling back and victoria state reporting a record 723 new cases. Pausingback above 105, a fiveday advance. The trend prompted the ministry of finance to signal it will consider various policy tools if the yen strengthens. Looking at stock movers in tokyo on a busy day for earnings in japan, this one sliding nearly 6 after seeing ¥60 billion net loss in the last quarter. Retail could be turning a quarter with japan sales in june picking up as Consumer Spending bounced back after the reopening. Check out numerous, surging the most in two months. We have the cosmetics player under pressure after secondquarter net profit missed estimates and cut its fullyear guidance. But this one climbing to a record high in tokyo after the First Quarter offered income beat the highest estimates, climbing 32 on a yearly basis. Lets stay on earnings. The cfo for Deutsche Bank spoke about their results. We are pleased with the performance in our investment. Ank overall which is up 52 the business is up 46 . Within that we have trading businesses which are rates, fx, emerging markets, which are up significantly yearoveryear, a little over 75 . In the rates complex, we have doubled our performance yearoveryear for three straight corners. Very pleased with that performance. Part of it is participating in the better Market Opportunities that have existed in a Second Quarter. We expect normalization of that. You need to remember in our case we have been working to stabilize, grow the franchise, recover some market share. What we are pleased to see is underneath that sort of outperformance in a market environment we have been in, we have seen good franchise stabilization, traction, client engagement. We think that bodes well for the future. You are expecting slightly higher revenue for the full year. Is that not too conservative now given what we have seen in the first half . , it would be a normalization but i think an improvement on last years secondhalf especially in our business is where a year ago we were going through uncertainty. With that now behind us, we see momentum in the core business, and we would like to see a secondhalf performance well ahead of last years secondhalf, but we will see how the conditions evolve. We are in a time of real uncertainty. That has led to revenue opportunities, it can also lead to more muted markets. You are currently looking at wirecard to see if there are any parts that are worth acquiring. So far, what you have seen do you like you have seen . I will speak about the payments business, i dont want to talk about specific events in the marketplace but immense is a big business across a number of our segments. The Corporate Bank in particular is a large payments writer. We are and have been investing in our Merchant Services capabilities and we will continue to pursue that. As we see opportunities in the marketplace, we may look to accelerate that growth in organically. It would have to fit well with what we do and be additive to shareholders. Like how we are executing on that business organically. We are able to do a lot in partnerships. You may have seen a few days ago we had investment in a company, supplypay, which does chain financing capabilities and adds to what we can do for our clients sometimes in partnership. We are pleased with the opportunities as well as the prospects to grow our business. Would a wirecard pattern fit that . Merchant services, it is a business that they were in. It is one we feel there is room for us to go. I dont want to comment on any specific developments. James, the ceo of Deutsche Bank, speaking to daniel schaefer. We will get more on Bank Earnings on bloomberg tv. You can catch our interview with the ceo of Standard Chartered 1 00 hong kong, 3 00 in sydney, 1 00 a. M. In new york. Hong kong is set to face another stunning contraction in retail sales data due out later. We will discuss that later. This is bloomberg. You are watching daybreak asia. I am Karina Mitchell. Global coronavirus cases are approaching 17 million. 650,000 people have died and the u. S. Has passed 50,000 fatalities. California and u. S. Posted a Record Number of daily deaths, and florida reported more than 200 fatalities. While the number in california and florida appears to have plateaued along with arizona. Japan reports another spike as cases surge in tokyo and osaka. There were more than 1000 cases reported and osaka is close to passing tokyo as the nations hotspot. Osaka did have almost zero cases for more than a month. Thailand is extending its state of emergency through the end of august over fears of a second wave. It has been no local transmissions in thailand for almost two months. Sydney has joined melbourne as a cuts hotspot and will be off from saturday. All sydney siders will be banned from entering queens land at the border. This was taken after two people entered melbourne by sydney tested positive. New south wales reported 19 cases on wednesday. Global news 24 hours a day on air and on quicktake by bloomberg, powered by more than 2700 journalists and analysts in more than 120 countries. I am Karina Mitchell. This is bloomberg. Haidi analysts are expecting a 24 decrease in hong kongs june retail sales as the new wave of Coronavirus Infections ways on local spending and further delays tourist arrivals. Joining us from hong kong is the Mainland China and hong kong consumer markets leader. I am finding it increasingly difficult to start these conversations about the hong kong economy, in particular the retail outlook but is there any hope of recovery given the Downside Pressure started before the pandemic took place . Good morning. It will not be too good in the next six months because the third wave of the pandemic has started. As we all know, this is the first day we will not have any lunches outside. At any restaurant. I think this is all going to be a very bad timing we are having to see unless we are able to see the pandemic will be over in the next two months. My production would be 20 drop in the hole year. And rebound probably take place in the last quarter of november. Haidi what would we need to see to start getting some of the revenue stream in . Would it be for mainland arrivals, particularly when it comes to the hardhit luxury sector in hong kong . Very much so. Once the border is opened, the mainland tourists will come back to hong kong. Last year we had a bad time because of the social unrest. This year i dont think it will continue. The ones once the pandemic is over, i am sure tourists will come back, and we will be able to see a recovery particularly on the luxury side as you mentioned. I think luxury is still going to be bad from a global perspective. China is going to be the first country to recover from luxury market. Rishaad when it comes to hong kong, are you expecting more shops to close down . You have seen a lot of International Brands have already left hong kong. These are not Luxury Retail but most of them are midrange ofarel or different kinds brands they are leaving. They are closing down or trying to close down the socalled pots so they can you will see a lot of moving around in spots. Bans the Luxury Brands have already left. Shery we are getting the latest coronavirus numbers out of china. Newmainland reporting 105 coronavirus cases. We heard earlier that one province was reporting five new cases, not to mention beijing reported one new case as well. This coming at a time when we see the worst flareup in china since march when we saw 80,000 plus infections. Another number above 100 for china, 105. We see these resurgence in virus infections, what does it mean for retail in the mainland . We have seen the shift and positioning by retailers to the new retail with digitalization taking place. I think this is going to be the trend, although you mentioned the new numbers in china, i think it is still the least number of the year places that have recovered. They are recovering at the fastest pace. I have seen a lot of chinese clients ine of the bigger malls bigger cities like guangzhou and shake beijing we saw almost like a same level, business has come back. China is on pace to recover first. I talked to some of my luxury clients, they are seeing china as the first state they should engage more Going Forward. You mentioned the ecommerce side would be the best strategy for them to go forward to get more. You would expect last investment, more withdrawals when it comes to the side of things . We have seen big flagship names in commercial real estate either breaking their leases or not glee in hong kong to in hong kong particularly with the uncertainty of the legal situation as well. Hong kong is not going to be able to get feedback to the bright days. If we look at the last 10 years, we had a good time in the early five years, but because of the extreme good days over those five years it has increased. The cost of running any store in hong kong has been so high that the brand owners really think theirhould be reshuffled strategy. Not able to see hong kong be as wed as before, but hopefully still are in the Financial Center of asia. Business will still be very much so in hong kong and tourists will still come back to hong kong and we have a free city we are cheaper than the other countries. Shery great to have your insights. The hong kong consumer markets leader. We will have more on the outlook for hong kong with the Sme Committee chairman later on Bloomberg Markets plus an interview with hong kong secretary for commerce and Economic Development and were dow tomorrow. Edward yao tomorrow. This is bloomberg. This is bloomberg. Chineseont leave the government is stealing technology from u. S. Companies or not from yours . I know of no case where it occurred. Firsthand knowledge of any information stolen from google. It is welldocumented the Chinese Government steals technology from american companies. There are knockoff products, if that is what you mean. The answer is the Chinese Government is stealing technology. That is the thing i read reports of but dont have experience with. Techs ceos weighing in on whether china is playing a role in stealing u. S. China technologies. Tim cook, all of them facing rapidfire interrogations from lawmakers and taking jabs at each other during testimonies to congress. Sarah frier is watching. What were the Key Takeaways . It was so interesting because you saw that the members of the committee had these documents from amazons history, google, apple, where they really went into the motivations behind some moves tech executives and really kind of counters with the public narrative about what they had done and why they did it. Facebook has long said they acquired instagram to help them grow, independent company. It was very clear in several lines of questioning for Mark Zuckerberg they acquired instagram because it was a competitive threat and they were worried if they let instagram survive on its own, it would threaten facebook. Zuckerbergeard taking the antichina stance, tiktok ceo the latest criticize those comments as being hypocritical. Ceoeah, i think the tiktok made his first Public Statement today since joining the company from disney. He took it as an opportunity to say we know tiktok has become basically symbolic of chinas power in the u. S. It is the first social app that has gained traction. That doesnt mean we should get tougher scrutiny than all of these other companies, that they are committed to being a part of the american tech community. That they dont want to be subject to these attacks from facebook that are shrouded in patriotism. Frier all right, sarah with us with the latest tech hearings. Lets get you a quick check of the latest business flash headlines. Samsung beat secondquarter estimates after avoiding unexpected slump on the back of increased internet use. Net income was 4. 6 billion in the june quarter. Samsung has warned of lackluster results. Sales picked up after stores reopened. The Company Expects earnings to recover in the second half of the year. Qualcomm shares jumped in extended trading after it gave a strong Sales Forecast to the Current Quarter and ended a long running dispute with huawei. They say they are rebounding faster than expected and revenue should come in between 5. 5 billion dollars and 6. 3 billion. They also signed a deal with quality which should add 1. 5 billion to sales. Its recovery is happening on evenly with big discrepancies depending on location. Said the of kfc eastern part of the country is recovering at a faster pace than the rest of the nation. Sales improved in april and may in june. Akening sales fell 11 in the Second Quarter which was deeper than expected. Markets coverage continues as we look ahead to the start of trading in hong kong, shanghai and shenzhen. You say the customers make their own rules. Lets talk data. Only Xfinity Mobile lets you switch up your wireless data whenever. I accept. 5g, everybody is talking about it. How do i get it . Everyone gets 5g with our new data options at no extra cost. Thats good. Next item, corner offices for everyone. We just have to make more corners in this building. Chad . Your wireless, your rules. Only with Xfinity Mobile. Now thats simple, easy, awesome. Switch to Xfinity Mobile and save up to four hundred dollars a year on your wireless bill. Plus, get two hundred dollars off when you buy an eligible phone. It is not 00 a. M. In beijing and shanghai. Welcome to Bloomberg Markets china open. Im tom mackenzie. It is 9 00 a. M. In beijing and shanghai. David our top stories today the fed leaving rates near zero and promising to do whatever it takes to support the economic recovery. Chairman powell calls the downturn the most severe in our lifetime. Tom