and about-face. tesla plans to sell about $2 billion worth of stocks even though elon musk said it did not make sense just two weeks ago. we will get analyst insight. first let's take a look at how u.s. markets fared today. seems like we are coming off a little bit of the record highs on the s&p 500 index. getting some pull and bear cases. the index bucking that trend. chipmakers posting a decent rally on thursday. redia earnings, theya forecasting -- they are forecasting a strong number. what that means for the 10 year yield is your coming down about two basis points. i am hearing more and more that 2% is fair value but the flood of money rushing in pushing the bond prices higher. anith crude, up .7%, the highest since januaryu continue to see strengh around the bullishness of the crude oil market. yeah. looks like we are setting up for a quieter day. we have new zealand trading already. .1%. little more than features in sydney unchanged. much quieter day on the earnings front here after a busy thursday. futures looking substantially weaker, off almost 1%. of course japan reporting its first death from the coronavirus. looking at currencies, the new zealand dollar's bounce was short-lived, heading down. the greenback in australia back above $.67. the yen looking kind of flat. for more on the markets, let's get to victoria fernandez. bounce in theig coronavirus cases reported out of china, maybe inspired think -- inspiring a quieter day on the equities markets. i am wondering how closely you watched the news flow on these virus markets and whether the markets have priced in all these unknown unknowns, if i can borrow from donald rumsfeld. victoria: we are always watching the headlines every day to see what is driving the markets. one of the things we tell our clients is we want to look through the headlines when it comes to our investments and our strategy and take a longer-term approach. but when we looked a, yes, the virus has caused volatility in the market. we saw that this morning when they reported higher cases of the virus in china. we saw the markets come back. they gained about 50% of what they lost in the early mania -- early morning trading in the u.s. a lot of that because the was due to a change in methodology and how they were calculating the number of cases. so it included a lot of people who already have the virus. it was not necessarily all new cases. originally we had a big selloff. we saw that come back throughout the day. but yes, coronavirus is driving the headlines now and battling some of the more fundamental things, the earnings and the strong economic reports that we are seeing. paul: we did see small caps bounce today, which reversed a trend. what is your theory on that? victoria: we know that small caps have much more of a domestic feel to them. if a lot of the downside we are seeing in the markets is coming from the coronavirus scare and from uncertainty outside of the u.s., we can see where maybe skull caps are starting to do a little better because they do not have some of those same concerns. one day does not make a trend, as you are well aware, so we will have to see how those things continue over the next couple weeks. taylor: we were very curious when we heard from alibaba and they are forecasting a hit to revenue growth due to the coronavirus. as you look at some of the other big companies in china, do you start to have real concerns over revenue growth and profit growth impact from this disruption? victoria: i think we are definitely going to see that impact in the first quarter numbers. obviously was so many factories shut down, the supply chains are affected, that is affecting the tech companies for the components they need. we will definitely see a hit in the first quarter. the question will be how quickly things come back. will it be a z shape and we ceded quickly? will it take longer, and it will drag on into the second quarter or the beginning of the third quarter? those are the questions we have to look at. and not just for tech companies. retail companies have the same issues. under armour said they would have a $60 million revenue hit. ralph lauren set about a $50 million revenue hit. even someone like pepsico said it would be small, but there would be an effect on their earnings. we have to look and see how quickly we think things are going to come back, and a lot of that will depend on how fast these factories get back up and running. taylor: and with the nasdaq still near record highs, are you still comfortable investing in big tech companies, at least here in the u.s.? or has any of the coronavirus changed your investment thesis? victoria: it has not changed our strategy. some of the latest purchases that we have done in our portfolio have been tech names. amazon being one of those, apple being one of those. i would not suggest that you go all-in. i think you wait for a pullback. we have seen some pullback because of the virus. i am not sure the turnaround in the market where we regained a lot of what we saw last week, having done that may be so quickly was rushed. i would wait to see if we have pullback and then add to them. tech is the biggest gain or year to date followed by utilities. i think it is a space you have to continue to watch. the trend should be higher in these names, but let's look for a more advantageous point to enter. paul: to your point ann taylor's point as well -- and taylor's well, we see tech getting above the relative strength index. does it matter if you are prepared to get long? victoria: that is why i say i think you should still add it to your portfolio. just look for times when it has pulled back a little bit, and that can be your entry point. you do not want to be a market timer and try to do that exact. no one can be a perfect market timer. but if we have volatility in the market like we have seen, that gives you opportunities to enter into some of these names. another name we have recently added to our portfolio is american power. it plays off of the whole 5g thesis going forward. i think there are multiple names you can look at adding to your portfolio within that sector, but be careful with your timing. paul: in terms of timing, there is a surprise offering from tesla now.if you were looking to get into that, maybe this is an opportunity. is this something you are looking at? victoria: we actually do not own tesla in our portfolio. it is not been a name when we flows, it has not beenheets and a name that we have been supportive of. we know that has changed a little over the last six months or so. but when you look at where the cash was at the beginning of the year, they had about $6 billion in cash, they said they were not going to look at raising more cash. then we see that coming today, not surprisingly stock has a most doubled this year. so maybe not the right time to jump in when you have seen such a large move in the stock. this is one of those areas where if it is a company you feel confident in and you feel it will continue to grow, wait until it comes back some more and then find a chance to buy in. paul: all right. victoria fernandez, thank you so much for joining us. getting back to the coronavirus issue, washington recent concern with the accuracy of china's reporting. the new cases jumped by nearly 15,000, and that is after a change in counting methods. larry kudlow criticized china's response to the outbreak. >> we thought there was going to be more transparency, but we are a bit transported -- disappointed. we are willing to work with them on this and they will not let us. so i do not know what their motives are. i do know that apparently more and more people are suffering over there, and that is not a good thing. paul: let's get to our china correspondent selena wang in beijing. -- selina wang. no surprise to see increasing scrutiny on china's methodology of the data coming out. [indiscernible] u.s. health experts still have not been allowed in the country. nearly 15,000 new cases added yesterday, the world health organization said those cases likely date back days and weeks and do not represent a sudden surge of new cases. [indiscernible] taylor: thank you to selina wang in beijing. always appreciate your insight. coming up, musk changes his mind weeks after saying tesla has no need to raise new capital. he announces a multibillion-dollar stock sale. that is next. this is bloomberg. ♪ ♪ welcome back to bloomberg markets. let's check in on the first word news with jessica summers. jessica: the senate has voted to restrict president trump's power to take military action against iran without approval from congress. eight republicans joined democrats to pass the resolution by a 55-45 vote. it now heads to the house where it is expected to be approved. the measure was introduced after president trump approved the drone strike which killed iranian general psalm solomonic. -- qasem soleimani. chancellor.it as he resigned after refusing prime minister boris johnson's demand to fire all five of his most senior treasury aids. the prime minister swiftly appointed his deputy as the new chancellor. but 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 child -- chinese company engaged in decades of intellectual property theft. the new charges depict a company that has won international standing by stealing trade secrets and lying to authorities. huawei and their cfo are facing charges of fraud and evading u.s. sanctions on iran and north korea. the charges ratchet up the potential penalties the company could face if convicted. the coronavirus is threatening the biggest hit on japan's economy since 2014. economists predict a one quarter slump could turn into a recession. gdp figures due out later are expected to show annualized contraction by as much as 3.8% due to a sharp drop in consumer spending. this would be the worst since the second quarter of 2014, when a previous tax increase saw the economy shrink 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 more than 120 countries. i'm jessica summers. this is bloomberg. taylor: thank you. elon musk is taking advantage of tesla's surging stock price. the electric karmic or plans to offer about $2 billion of stock. shares have been on a tear since tesla release the first of two straight positive earnings reports in october. it will help fund as much as $3.5 billion in cap excess here. the last two years tesla has been paring back on that kind of spending. joining us to discussed is an equity research analyst at jmp securities. he currently has a market perform rating on tesla. i want to look at a chart i am showing here. i am trying to get to the wide question of all of this. with the market cap of a hundred $45 billion, is the why frankly because they can't because the stock is so hot? any time the market wants to reward you with this valuation you take advantage of it. i think it is important to remember this company needs to expand capacity rapidly. i think $3.5 billion is about the right number. taylor: if they pulled in $1 billion in free cash flow last quarter, why go and sell equities for $2 billion in order to fend that capex? do they not have the money? joe: they have the money but this pump an he is still carrying a lot of debt. they could pay some of that doubt if they choose to do so. but at the most basic level it is make hay while the sun shines. they could use additional resources and if the market wants to hand them this, take advantage of it. paul: joe, apart from paying down debt, what else could the money be used for? can you see further expansion plans for tesla? joe: obviously they are building in germany right now. some capacityfter has shifted out they could use to expand further in the u.s. there is also additional investment to be made in vehicle autonomy. we believe the money will be spent. in particular, i believe they need to expand in the u.s. paul: let's talk a little more about that huge run-up in the stock price we have seen. i just have this chart on my bloomberg terminal which illustrates that, but i also wonder how much of it is due to the short-sellers waving the white flag. joe: that is certainly part of it. i could not comment specifically on that, but i do believe what has become apparent over the last six month or so is that tesla is just way ahead of the competition. it is remarkable to me when i look at what audi is doing, mercedes, ford, that their product offerings are so weak. some of it is just recognition that tesla is way ahead. taylor: who are the competitors at this point? joe: i am not -- ramy: -- joe: one of the competitors i think about a lot is another startup. a chinese company called biton. i think the nice surprise this year is not going to be with the big oem's are doing but what other startups are doing. taylor: he talked a lot about other expansion plans. berlin, shanghai, fremont. if they have to expand in the u.s., where is a reasonable expansion location? joe: they are out of room in fremont, clearly. the footprint they have in nevada is substantial. they are only making batteries and battery packs there now, but periodically there has been discussion of expanding there. so that seems to me to be the most logical place. paul: elon musk did tweet a few days ago, two words, texas and giga. joe: maybe. that is not the first time i have heard that. i think the question is going to be where they can assemble effectively. because they do have the scalable battery pack operation in nevada. it would not be fair to move that. wherever they go, it will make sense to assemble vehicles. to that extent texas does make sense. all the coronavirus trouble in china the moment, tesla is restarting production in shanghai, so what does that tell you about the resiliency of its supply chain? joe: i do not think we know yet, to be honest. my experience looking at supply chains over the years is that things like this generally are worse for the near-term and not as bad for the long-term. so, i do believe that there's still another shoe to drop there, but tesla, if you are thinking about the next year or two, you restart. taylor: you have the market perform. what has to change for you to change? joe: a stock drop. we are past what is defensible in terms of fundamental valuation. i have seen this before. it would not take much to reverse what has been a very sentiment-driven name. awesome company but i am not willing to buy the stock. taylor: joe osha, always great to get your thoughts on tesla. we will have plenty more on tesla and the electric vehicle market ex friday as part of our one hour special airing next friday at 9:00 p.m. in new york, and 7:00 p.m. in hong kong. coming up, the clouded future of the jedi contract. a judge stepped into bring microsoft's work with the u.s. government to a halt after amazon gets a win in court. we will break down what is the ongoing dispute, next. this is bloomberg. ♪ paul: welcome back to bloomberg markets. want to get you across some breaking news on the bloomberg terminal. some announcements from royal measures, saying that will have an impact on 2020 of about $.65 per share. this is royal caribbean responding to the difficulties they have had during the coronavirus outbreak. u.s. post market shares of royal caribbean falling on the coronavirus update. they have canceled 18 sailings in southeast asia and has modified several itineraries. an estimated impact in 2020 about $.65 per share. now to a, let's get development in the ongoing $10 billion dispute over the pentagon's cloud contract. the u.s. federal judge has ordered microsoft to halt working on the project. this comes after amazon challenges the validity of the award over allegations that president donald trump interfered. joining us now from washington is bloomberg's naomi makes who has been covering this story. so what did the judge say exactly? essentiallyudge said they have to pause this $10 billion cloud project while this lawsuit from amazon is being litigated. so it is a temporary injunction but a significant one. it sort of gives a preview that the judge may think some of amazon's claims here are valid. taylor: how big of a deal is it? judgesr if you often get to block work while they figure it out or is this a big hit to microsoft? naomi: it is not unprecedented for the court of federal claims to issue an injunction like this. but it is significant. caseans the judge in this likely looked at amazon's initial argument and lawsuit and said there might be some merit here. why don't we go ahead and pause work on this contract while the evidencers additional and arguments about whether the contract w wason fair -- was won fairly or not. paul: have we had any comment from amazon in the wake of this, and what are the implications? naomi: amazon has not commented yet. microsoft did say they were disappointed in the ruling, but ultimately they look forward to eventually completing the work. some of the implications also mean that the pentagon, for the pentagon, they have said in court paperwork that if there is a delay, the pentagon will likely lose money from that. and also national security would be at risk. so there is definitely an urgency on all sides to make sure this case gets to a resolution. somehere's also significant and novel arguments being made by amazon likely require a lot of lawyering. taylor: naomi, what next? how long do we have to wait this out to get some sort of resolution? naomi: we do not know yet when the case will finally be wrapped up. but amazon earlier filed a motion asking the court to grant the company the ability to gather more evidence, to essentially show that there was bias in this procurement. to deposezon wants president donald trump as well as top senior leaders at the pentagon, including current defense secretary mark esper, about their role in shaping the contract or potentially steering away from amazon and towards microsoft. and so, we will want to see what the judge decides in that case, whether amazon is giving permission to seek additional documents as well as a deposition. the idea that amazon will get to a -- will get to question a sitting president on a procurement for that, that's an uphill battle for amazon and it would certainly be an interesting ruling if amazon wins that. but that is the next step we are looking at. taylor: thank you on all the updates, naomi. coming up, we continue to track the global toll of the coronavirus outbreak as japan reports the third death outside of mainland china. this is bloomberg. ♪ is bloomberg. ♪ paul: this is bloomberg markets. let's check in on the first word news with jessica summers. jessica: thanks. the trump administration has raised doubts about the way china is handling the coronavirus outbreak. economic advisor larry kudlow questioned beijing's transparency and accuracy over the count of new cases and deaths. numbers jumped after china changed the way it diagnoses the virus. kudlow also expressed disappointment that u.s. health officials have not been allowed to study the outbreak from wuhan. they have offered to send experts for several weeks. fell after.s. shares it warned the coronavirus will hurt revenue growth in the current quarter. it's at the outbreak is undermining production and changing consumer spending patterns. the chinese e-commerce giant reported strong financial results for the december quarter. revenue surged a better-than-expected 38%, and net income rose 58%. the coronavirus is being blamed for what is expected to be the first global drop in oil demand in more than a decade. the international energy agency says demand will fall by more 000 barrels a day in the first quarter. that as widespread -- growth mays annual fall by about 30%, but at this stage it is hard to be precise about the full impact of the virus. the united nations says more than 140,000 syrians have been displaced in the last three days by violence in the country's northwest. that brings the total number to more than 800,000. 60,000 ofays at least those displaced our children. the syrian war is in its ninth year now. global news 24 hours a day on air and on quicktake by bloomberg, powered by more than 2700 journalists and analysts in more than 120 countries. i'm jessica summers. this is bloomberg. taylor: thank you. now going back to the top story, which is all about the spreading of the coronavirus. japan has confirmed his first death from the virus. this comes as scientists warned the highest transmissibility means two thirds of the world could catch it if left unchecked. yvonne man joins us now from hong kong. what do we know about some of the reporting changes we are hearing about? japan, youterms of mentioned it is the first fatality in the country and the third fatality outside of china. what we have learned in this writ -- latest case is a woman in her 80's from outside of , she was being treated for a separate condition. it was only after her death that doctors discovered she had tested positive for the coronavirus. so, another case we are learning no history she had of traveling to wuhan, china. so, perhaps more indications that the virus is being carried around in japan itself. this, as the total number of infected cases in japan now is is at least 247, most of which come from the cruise ship to still quarantined. authorities found an additional 44 cases on that cruise ship, bringing the total to 218 on the diamond princess. what we learned recently is japan now letting high-risk people who tested negative off of the ship. those like the elderly who are over 80 years old, those staying in rooms with no windows, and those who have underlying conditions. paul: on the subject of cruise ship's, we have just heard from royal caribbean, falling 2.7% on its comments on the coronavirus update. this is really slamming tourism in asia. how bad is it going to get? yvonne: seems like the industries are bracing for this to continue to hit the economy and aviation, hotel, travel agents. people are canceling trips now, not just in china but around the world. they are basically paring for this to carry on into 2021. we have heard from the hilton ceo earlier this week saying you have to brace for six to 12 months for the impact of this to last. three to six months for the initial escalation, and then the impacts of the upper big, and another three to six months for the recovery. this, as we continue to see more research saying that this virus has further spread. we heard an advisor for the world health organization saying two thirds of the world population could catch this coronavirus. his model based on the fact that one infected person could transmit the disease to two to three people. that implies billions more cases than what we are seeing right now. taylor: you are on the ground in hong kong. i am curious about the latest of elements in hong kong, specifically the closing down now of schools. yvonne: they extended that by another two weeks until march 16 now. we mentioned that yesterday. another headache for a lot of parents. their kids have been cooped up for weeks now. employeeearned of an here at hong kong has been quarantined at home after a family member was suspected of catching the disease. according to a memo, that employee has not been infected, but other colleagues in that office have also been quarantined as a safety precaution. we also learned from the hong kong government extending the work from home arrangement for its civil servants into february 23. extending that arrangement by another week. paul: bloomberg markets anchor yvonne man in hong kong, thank you so much for joining us. thes check in now on how outbreak has caused disruptions elsewhere. not just daily life, but also business operations and supply chains and travel. china financial markets as well. particularly foreign exchange and bond. not really spared anything. i want to pick up precisely where yvonne was leaving off come extending that arrangement. business continuity plans, work from home, very synonymous with what is going on right now. caused a lot of international -- institutional traders to either be stuck at home, if at work, it is a smaller team as well. taylor: i think we lost -- oh, are you there? david: i am still here. can you hear me? taylor: now we can. david: bringing that example up, it is precisely things like that. people working not from their offices, in normal environment. it is causing a lot of transaction in the bond space to either be trading at about half the levels of 12 months average into the long holiday, and the it will be interesting to see how long this takes, and whether pricing is actually distorted because it is such a thin market at the moment. taylor: you take a look at fx pricing and volume. what does this now indicate about some of the prices we are seeing in markets and what else are you looking for? david: just quickly, on fx, a lot of that is a function of auto factories coming online. they are not shipping anything. that is one. in the bond market, interesting coming out of bnp. you see how the bond yield is .83%. it is not really recovered. the collapse last week. one after debtry -- in other words, big institutional players have not fully price slowdown in. willthey come back, we probably see a stronger rally in the chinese bond market, which has rallied quite hard are ready. taylor: our thank you to bloomberg's david english. coming up, by having better-than-expected revenue, alibaba shares are falling in after-hours trading due to rising concerns about the coronavirus. we will have the numbers next. this is bloomberg. ♪ ♪ this is bloomberg markets. i am paul allen in sydney with taylor riggs in san francisco. let's get a market check with su keenan in new york. we saw major indexes snap three-day rallies down from records. you had late they announcement from the fed on the repo being cut. that would hold water on a lot of stocks except for tesla, one of them, selling about 2 billion common stocks. a lot of investors put the stock lower on concern, but you had a big analyst say it is a wise insurance policy and it turned right around. the rest of those three up there, all stories of warnings and disappointing earnings. mgm down after pulling their outlook on the virus uncertainty. they also had the ceo departure. cisco, third street disappointing quarter. net applications cut their outlook. uglyt were down on an factor. look at the bloomberg pedal of the metal. tesla shares have been soaring. as that has happened the short-sellers has had to liquidate their position. they called elon musk an executioner of the short-sellers. taking a 10% loss in january due to tesla's strength. site,a, online travel blowing it out of the water, projecting double digit profit growth. that is a sign perhaps there is at least one company not concerned about the slow down of global travel due to the virus. they blew a rate revenue and profit and gave a strong forecast. ebay boosting its stock. real quickly to one of the stories of the day, alibaba. we look at the year chart, you see the strength. it was down at one point down 2% as investors asked if the coronavirus could be a knockout blow. investors really concerned about their warning that it will indeed have an impact on the current quarter. back to you. paul: su keenan, thank you for that. let's get more on alibaba and bring in analyst john freeman and hari srinivasan, senior research analyst. john, what will your key takeaways from the earnings announcement from alibaba? wow, my key takeaways were that was actually a good quarter in terms of revenue growth. the core business was higher than we expected at 38%. user growth was particularly impressive. they said they had 60% of those new users coming from the more rural areas. -- 400 million more users i could join. still -- that could join. the story really is about the coronavirus and what that will growth,erall economic and to what degree that will impact their revenue and earnings going forward. paul: to that point hari, looking backwards, a great set of numbers. looking forward, the cfo saying overall revenue will be negatively impacted. well, how negatively i suppose is the question? hari: they did say it will be negatively impacted. impacted probably low to mid-single digit. there are three main reasons revenues are being factored. the first one is that they are seeing a lot of supply-side dislocation. there areetwork down, key fuse around various cities, so moving people is different. second, they are supporting the infrastructure in terms of remedy effects. they are providing medicines free of cost, providing services and food to the doctors in the hospitals. third, they are actually helping the ecosystem by reducing the platform fees, providing discount fees. i think they are taking a short-term hit but building goodwill in the ecosystem. more importantly, i think one thing we walked away with is the consumers are now beginning to trust digital services more. as you know, movement of goods and people is severely curtailed, and therefore people rely on digital services, which i think bodes very well for the long-term growth of alibaba. the last thing i would say is that the data point we have from the sars virus, whenever it got curtailed and we think this epidemic at some point be cured, we would see a spike in growth over the long-term. so, we have to go through a bit of a short-term pain, but we are positive on the future of alibaba over the long-term. taylor: really curious about some of the tailwinds of the company, saying you have a majority of people in china unable or not wanting to leave their homes. using at law -- using online platforms to get food because they do not want to go out and risk getting infected. how much of that is a tailwind? john: it is kind of interesting. i do not think it is a short-term tailwind because the economic growth slowdown and the logistics disruption that the analyst just mentioned took precedence at this time. however, the golding -- the building of goodwill and making a lot of the people more accustomed to ordering more categories online is a good harbinger, tailwind for growth. maybe a couple quarters down the road. but one thing i would mention is the cloud. the cloud has the potential to drive, just like amazon, to be 10% of revenue in two years but still be driving even a majority of the earnings, just like it did with amazon. 12% of revenue and 71% of earnings. that is something we do not want to overlook with all the concern, the legitimate concern about the consumer side of business. what the cloud business, 62% year-over-year, decelerating from 64% last quarter, very impressive. taylor: are you seeing cloud opportunities in china the way microsoft and amazon see cloud growth here in the u.s.? hari: i think it is a great opportunity. alibaba is the number one player in the cloud. compared to the u.s. companies, the chinese companies are much behind in cloud options. in addition to the cloud, basic infrastructure services, alibaba is offering other capabilities. digitizing business processes across retail and other areas. we believe that is a strong growth driver for them over the long-term. right now they are investing and increasing the cloud capacity, and therefore that business does not generate a lot of profit. they are more focused on revenue growth. eventually i think it will add as much profit as the retail is this currently does. you, john, i want to ask most of this conversation has been fairly optimistic. but you have alibaba as a hold. why not a buy, considering all the love in the room right now? john: well, i downgraded it from becauseold in december, there were still trade war sort of risks lurking. riskscroeconomic lit -- and a lack of transparency into the shadow debt that china has. it is one of those things i do not know when it will hit, but certainly i thought it was a good time to step aside. is we have a now lot of known unknowns about this virus. how fast is it going to mutate? how will it mutate? is it going to be upset -- dampened by warm weather? we do not know. but there will be a lot of unknown unknowns, to quote rumsfeld. a lot of derivative affects that i just tough to predict right now. so i think it makes sense, i think there are better opportunities elsewhere. weat long-term holding, but are staying on the sidelines for the time being. taylor: alibaba is much more than an amazon here in the u.s. multiple other business lines other than e-commerce and cloud. of the side businesses, what is your favorite? hari: it is still e-commerce. relative penetration of e-commerce in china is fairly low. more importantly, unlike the u.s., there's no retail infrastructure in china. this is a great play on the development of the consumer economy in china. these things have a lot of runway. one more thing i would like to highlight is one of the areas the current crisis will be useful for for alibaba is the penetration of growth, the using of digital services. most of the commerce so far has happened in other categories, whether consumer-electronics or apparel. growth has been slow for e-commerce adoption. this particular opportunity, i know it is a crisis right now, but he gives people an opportunity to try out the alibaba grocery services. groceries is a very large category and penetration of that category will bode well for alibaba's growth. longer term i think there are three pillars on which we are building the alibaba story. one is the e-commerce story in china. the second is the cloud opportunity. the third is globalization. that is global growth of e-commerce in the emerging markets world. taylor: wonderful. thank you both for joining us. global airlines and tourism are feeling the pain of the coronavirus outbreak. we will hear more from the airbus ceo. this is bloomberg. ♪ loomberg. ♪ paul: this is bloomberg markets. i am paul allen in sydney with taylor riggs in san francisco. airbus is pledging to churn out more aircrafts than ever, expecting to hand over 880 jets this year. the ceo spoke to bloomberg about that delivery target and how the coronavirus outbreak has affected business. >> that number reflects our intention for 2020, which is basically to continue to ramp up the family, and that is important because there is strong demand on that project. 75% of the joint venture. softness. of all in all, 880 is a good target for 2020. we want to make sure we have sustainability and what we do. so the mix is changing. 21 are wrapping up the ac where there is more complexity. it is a plane that fulfills the expectation of a larger and growing number of airlines. and we see production moving forward. ins an objection we think is line with our objective and to continue to perform not only short-term, but midterm and long-term. >> but do you have an expectation that that number is beatable? well, that is not the point at this moment. we think an objective, 880, is a good objective. although the cost -- over the course of 12 months, many things can happen. our focus is to deliver what people expect. we think 880 achieve that objective. >> let's talk about the coronavirus. you have restarted your chinese plants over the last few days. i am curious as to what kind of affect you see the coronavirus having more broadly, both in terms of your supply chain and in terms of your customers. that is exactly the way we look at it. downstream, our customers and the supply chain. when it comes to customers, at this moment it is mainly our chinese customers, the chinese airlines which are very impacted by this situation. we are in a dynamic discussion with them to see how we can support and help them. on our side is the risk that could come from the supply chain. we have a lot of industry prisons in china -- presence in china. and wheat restarted operations the beginning of this week after two weeks of interruption. and one of those two weeks was because of the chinese new year. but the second one was on request of the chinese government to help them put in place the measures we have taken to limit the impact of the outbreak. it is very dynamic. we are in contact with a large number of suppliers, mainly in china. and this is where we are concentrating. but we see a situation that is improving as we speak and we will continue to monitor and steer that situation moving forward in a very dynamic way as we learn more about the coronavirus's affect. taylor: and that was the airbus ceo. there's plenty more still ahead in the next hour. we are counting you down to the china open, so stick with us. this is bloomberg. ♪ ♪ sometimes your small screen is your big screen. and with the xfinity stream app, which is free with your service, you can take a spin through on demand shows, or stream live tv. download your dvr'd shows and movies on the fly. even record from right where you are. whether you're travelling around the country or around the house, keep what you watch with you. download the xfinity stream app and watch all the shows you love. beyond the routine checkups. beyond the not-so-routine cases. comcast business is helping doctors provide care in whole new ways. all working with a new generation of technologies powered by our gig-speed network. because beyond technology... there is human ingenuity. every day, comcast business is helping businesses go beyond the expected. to do the extraordinary. take your business beyond. stroud-watts instantly. -- in sydney. shery: i am shery anh in new york. welcome to bloomberg markets: asia. ♪ shery: our top stories, the white house raises doubts over china's virus data saying it is disappointed at beijing's response as a third person dies outside the mainland. forconomic health warning the state of china's economy, forecasting economic impact on the consumers and merchants. talking to tidjane thiam, the outgoing head of credit suisse says despite the difficulties, he has no regrets. haidi: let's take a look at how we are setting up the trading day going into the final friday. not much of a lead from wall street, u.s. stocks falling, the s&p falling for the first time all week. there is a flat start as predictive futures are looking flat going into the start of trading in hong kong and china. australia unchanged at the moment. downside trading in new zealand, kiwi stocks down .25%. lackluster start indicated with the tokyo session as well. .1%.go nikkei futures off not a great deal of inspiration when we get to the u.s. futures session. we have had criticism from the u.s. of the opacity of the chinese coronavirus data. those numbers will be key because that will give an indication whether the 15,000 that were added yesterday was a one-off correction because of the new counting the fidelity or if there is can -- methodology or if there is new concerns. let's get to first word news. reporter: thank you. the senate has voted to restrict president trump's power to take military action against iran without approval from congress. eight republicans joined democrats to pass the resolution by 55-45 vote. it is going to the house where it is expected to be approved. this was after president trump approved the drone strike which killed qasem soleimani. the president says he will veto the resolution. the uk's economic policy has been thrown into disarray after the chancellor of the exchequer quit. he refused for his johnson's demand -- boris johnson's demand to fire his senior aides. , but is a new chancellor they can't come from the budget will go ahead as scheduled on march 11. the u.s. has raised the stakes in its battle with huawei. it alleges the chinese company engaged in decades of intellectual property theft. the charges to pick the company one international sending won by lying to authorities. huawei and its ceo are facing charges of fraud and avoiding u.s. sanctions. the charges ratchet up the potential penalties the company could face if convicted. the white house denying reports it plans to pull president trump's nomination to the federal reserve board. democrats and republicans have raised concerns over her comments on the gold standard, the dollar and whether the fed's congressional mandate is meaningful. the coronavirus is threatening the biggest hit on japan's economy since 2014. economists are predicting a one quarter slump could turn into recession. gdp figures are expected to show an annualized contraction by as much as 3.8%, because of a sharp drop in consumer spending. this would be the worst since the second order of 2013 when a previous increase saw the -- second quarter of 2013 when a previous increase saw the economy shrank. -- shrink. 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. summers.ica this is bloomberg. shery: now to the coronavirus, we await the latest data out of china after a huge surge in cases. following a change in the method used to diagnose the virus. that as washington is raising concerns over the accuracy of china's reporting with larry kudlow criticizing beijing's response. >> we thought there would be more transparency, but we are disappointed. we are more than willing to work .o. onhe u.n. and w.h this, and they won't let us. i know that more and more people are suffering, and that is not a good thing. .hery: let's get to selina wang this is not the first time we are getting skepticism about the numbers. estimated a far higher number of infections in china but how significant is it we are hearing from a u.s. trump administration official? selina: it is not surprising to hear these comments given we have had a request to have the cdc let in to china. china hasn't approved that. and the mythology -- methodology of counting has changed. the true extent of this outbreak, so not surprised to hear larry kudlow questioning the details of the 15,000 new cases china added to the total. the world health organization said many of those could have been days and weeks and doesn't represent a sudden surge in infections. it comes down to the way cases are being diagnosed. the case count includes a new group of patients found through this imaging scan. we are just hearing breaking news according to the australian that there is a passenger cruise ship in sydney, with one patient who has been tested for coronavirus. we will get you more details on this as we get them. it shows the chaotic state of affairs when it comes to people traveling all over the globe. disembarkationof in cambodia. let's talk about the political response. which was aeeting show of strength talking about ways they could meet the economic and growth targets. what lies in store for the biggest political powwow in march? is there a possibility it will be postponed? selina: it could be a massive health crisis which has gone into a multifaceted effect. in terms of the people's national congress, china is considering delaying that. it was slated for march 5. this is china's biggest political annual event, and any delay would be the first in decades. this is when china makes announcements like the economic target. no word on when that will be moved and if they will make a decision. we did see a reshuffling hours after the change in terms of methodology. authorities placed the party had in hubei -- the party head in hubei province and -- asians to satisfaction with the way the crisis has been -- beijing's dissatisfaction with the way the crisis has been handled. it is important they get the numbers right before the new leaders come in. shery: even alibaba is expressing concern over this outbreak. selina: the big focus from investors was on the forecasting made on the economy despite they did beat expectations in revenue and income for the december quarter. they are warning of this revenue could be impacted in the current quarter and the coronavirus is having an impact on china's consumer and merchants. many of the merchants alibaba worked with have not been able to return to normal operations because of a shortage of employees. is changing consumption patterns, people pulling back on discretionary spending. even though areas of business like to delivery are growing, you have food -- clothing and electronics chasing logistical problems and restaurant and travel bookings have taken hits. the company is trying to temper the impact including supporting merchants at lower fees, providing subsidies, but it is having a major impact. correspondentna selina wang in beijing. we await today's numbers when it comes to new inspections as well as the death toll to see if we can make -- cia discernible -- see a discernible trend. a cruise ship is at sydney harbour with a passenger being tested for running it -- tested for coronavirus. new south wales are testing the man who fell ill with some kind of respiratory illness. the cruise ship arrived in sydney this morning after having been believed to be at other australian ports out of traveling from new zealand. this is the new zealand jewel that arrived. it is just -- docked at the international passenger terminal behind me. get new details, but it kind of goes to show the global impact it has had on tourism and the uncertainty the tourismn japan, which has been struggling with its own cruise ship of coronavirus infections, has reported another death from the virus. this is the third out of mainland china. yvonne man joins us now from hong kong. what is the latest? yvonne: this is the first fatality in japan, the third outside of china. the latest case was a woman in her 80's that was outside of tokyo. she was being treated for a separate condition initially. it was after her death doctors discovered she tested positive for the coronavirus. according to kyoto news, no history of traveling to wuhan, so were indications the virus is being spread inside of japan. 247 cases, most of which comes from the diamond princess held off at yokohama. an additional 44 people who tested positive bringing the total to 218 on the diamond princess and now japan allowing for high-risk people off the ship if they tested negative. elderly, those over 80 years old, those living in rooms that don't have windows and those who have underlying conditions. we are seeing issues with cruise ship spirit we have the travel ban, with airlines. how bad will this slam tourism in asia? withe: given the update the cruise ship off of sydney, everyone is bracing in the tourism industry for this to carry on for six to 12 months, 2021. we heard the hilton ceo saying you got to factor in three to six months for the initial impact, escalation and then three to six months for the recovery. we have seen this impact cruise liners, royal caribbean, they are canceling 18 sailings in southeast asia and they say it will hit their 2020 earnings. it could be shaved off $.65 a share. it is difficult to put any kind of 2020 outlook now given the uncertainty surrounding the virus. at this point the fears have gone beyond the region. recent bookings of the broader business have gotten softer. shery: thank you. be sure to keep track of this story. run the function they are u.s. go. -- vrus go. will find headlines from the bloomberg news and how specific companies will be -- companies are impacted. tariffs on $75 billion of u.s. goods in china. keeping the trade deal on track. we will discuss this with the peterson institute. ♪ haidi: kerry greg is taking the long view on the coronavirus. what he expects, joining us. this is bloomberg. ♪ ♪ shery: this is bloomberg markets, asia. i am shery anh in new york. haidi: asian stocks look set for a mixed start. we are monitoring coronavirus developments and news the federal reserve will dialback liquidity injections. kerry greg joins us from melbourne. the news that sent u.s. stocks tumbling for the first time this week, they are dialing back on these repo operations, is it poorly timed given i felt like the rally throughout the coronavirus threat had been on the basis of ample liquidity globally and central banks will step in in addition to fiscal support from governments? kerry: that is the case, markets have reacted to the idea you get a central bank put, or anything to disrupt markets, the central banks reinforce the accommodative stance or even increase balance sheets. the repo market operation, thinking about two we in terms of theand in the case fed it is pumping liquidity into the market to ensure the plumbing and system works in the u.s.. that is what we saw in the fourth quarter last year, short interest rates start to life -- start to rise. are doing them, it will not be as large. and it is a sign the plumbing is working better. i would not say it is different, the federal reserve isn't monitoring the health of the financial service -- system in the u.s. and they wouldn't step back should it be needed. i think that stance of extending the balance sheet is something that will exist for a long time with the monetary policy and how banks have approached support for the market. haidi: 2020 was meant to be the end of american exceptionalism, talking about the equity market or the resilience of the u.s. dollar. has that been kind of extended now given there are concerns are where the safest places in the market? kerry: there is an element of quality towards investing at the moment and it pushes towards thinking of large cap u.s. stocks. the earnings and announcements in the earnings season have been unexpected reports coming through. the high return on equity out of the u.s. sector plays through into the market. we see an improvement in growth throughout the world but unclear uncertainty with politics, the coronavirus and its impact on the economy. so from global investing, there are opportunities coming through in the u.k. and europe as the growth outlook looks better there, but right now thinking about i guess the least dirty shirt or the best looking market which is still the u.s. in this context, even though the growth is stable in our view but not falling. ask about your assessment of the coronavirus outbreak. it was liquidity expectations shoring up the market but also the idea that the peak was approaching in these new cases. but we saw that spike in new confirmed cases, and we are awaiting more data from china. how much more difficult does it make your job to gauge market reaction when we lack transparency? reaction, markets announcements about the number of cases and deaths reported has been difficult to interpret given the numbers are scary and how large they are. some recognition the figures take a while to show up in terms of what is happening. it takes a while for all of the tests to be carried out for a clearer picture to show. that is why the drops in the market have not been more severe. there is an understanding with the viral outbreaks, there is enough to say these demand shocks you get tend to be relatively short-term or transitory. that is the understanding of the market right now. while there is fear and magnitude around what is happening and there are uncertainties around how long that will drag out, this will be a transitory shocks and that in the second half of this year, the conversation goes back to the improving growth fundamentals and the size of the recovery in china. shery: let's talk about longer-term changes in china. is there a concern that becomes -- because of the impact, you could see china postponing the market reforms investors have been awaiting for a very long time? there is a case of thinking about the conversation around the viral outbreak, being would be identification and containment and now you are hearing news about the economy, officialsd how the ensure growth will come back up. i think of a long run view of structural changes and it doesn't deviate too much. there was the idea china was opening up its economy and looking to liberalize the financial system. that hasn't changed. the changes in the economy are still in place. where we see a rising level of wealth over the long run, it does create investment potential especially for a market that is under owned by investors outside of china. shery: j.p. morgan asset management, kerry greg, coming to us. reports on the unexpected $1.6 million loss during his time as ceo. this is bloomberg. ♪ loomberg. ♪ haidi: this is bloomberg markets: asia. final credit suisse's earnings have been dented with a loss at its investment bank which has dragged down other key businesses. the outgoing ceo defended his legacy at the bank and spoke about his surprise departure. a motion as a board that [indiscernible] i am perfectly ok with it. reporter: have you spoken to the new executives and has he told him he will use your same strategy? beene new ceo, we have very close. i appointed him ceo of switzerland when i created the swiss bank which was new. something -- worked very closely for five years, and i have every confidence. also very important to me because the true legacy comes after you leave. i have been fortunate enough to run two companies. prudential is working very well. create durable success. q4, innumbers, i can see spite of all of the perturbation, has been good. this is continuing. that is what you want. it is highly unusual to have the chief executive say it is working great -- >> i think i can say much worse than anybody new. -- knew. we are to raise capital. you have to look at the share took $15m 15 to 18, we billion of losses, actual money. there was no way we will increase. you have to look at when this -- anductured -- new 19 2019 we were one of the best and in 2020 so far. the new bank is performing well but before that we had to recapitalize. 60% more shares. [indiscernible] buying last year, buying again because we believe from here the way up, growing tangible at 11%. that is better than most banks. francine: given all that, why has the board ask you to leave? >> there should be a change of leadership. i was in agreement with that. we are moving towards a new phase. francine: i need to ask you again. >> i don't know the answer to that. any.w, but i don't know of i don't know if there are any. haidi: that was francine lacqua speaking to credit suisse's outgoing ceo tidjane thiam. we are speaking to marry lovely at the peterson institute about the impact of the coronavirus outlook on trade. this is bloomberg. ♪ angie: reporter: this is bloomberg markets, asia. the trump administration has raised doubts about the way china is handling the coronavirus outbreak. larry kudlow questioned beijing's transparency and accuracy over the counter of new cases and deaths, which changed the way it councilor cases of the virus. -- counts the cases of the virus. the cdc has not been allowed to study in wuhan, despite allowing to send experts for several weeks. alibaba's u.s. shares fell after it warned the coronavirus will in thevenue growth current quarter. it is undermining production and changing consumer spending patterns. the e-commerce giant made this comment after reporting strong financial results for december. revenue strewn -- surged to a better than expected 38% and revenue rose. the coronavirus is going to lead to an oil drop in demand -- demand drop in oil. downis a widespread shot of china's economy stops the need for oil. the annual growth and low consumption could fall by 30% but at this stage it is hard to be precise about the full impacts of the virus. and the united nations says more than 140,000 syrians have been displaced in the last three days after violence in the northwest of the country. that brings the total number forced to flee to more than 800,000. the u.n. says 60,000 of those displaced our 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 more than 120 countries. i am jessica summers. this is bloomberg. how theet's look at early trading session in asia is looking. we are seeing pressure for qb stocks which are falling for a second session. the asx 200 flat at the moment. we are way down by energy and the tech sector. the nikkei futures, unchanged, but the japanese yen strengthening and seeing the largest gain in two weeks at the moment, continues to strengthen so that could be a dampener for the stock markets when they come online. let's stay with markets looking at china. david ingles joins us now. interestingly after we saw the spike in volumes, when it comes to the chinese markets, seems volumes have fallen in trading for the fx and bond markets. it is the nature of the market itself. you talk about equity markets, it is dominated by retail investors. you can sit at home and trade. that is what we have seen. especially in the previous week when everything was shot. when it comes to the institutional areas of the market, bonds and effects, falling off a cliff. you look at the averages, we have seen since the reopened and compared to year 12, a good example. we are half those levels. in bonds we are about a third. in both cases we are back to levels seen two years ago. probably not as efficient as it would be. and bnp was out with this story. on markets are saying because people are away, the big institutional players haven't tradeded -- they haven't the slowdown yet. they think yields should be lower when people start coming back. , anything below 2.6% takes you back to 2002. shery: thank you. our bloomberg markets, anchor joining us with the latest -- us withcoanchor joining the latest. friday as part of the phase one trade deal. let's talk all of this with the senior fellow from the peterson institute for economics, professor. great to have you with us. given the outbreak of the coronavirus, very little attention is being put to the fact we are going to see this reduction in tariffs on imports from both sides. tensionwe are seeing between the two countries. larry kudlow saying the trump administration is disappointed about the lack of transparency when it comes to reporting the numbers. the honeymoon period didn't seem to last long. mary: it didn't. i think the current rounds are sort of engaging with a collective sigh because they are not that significant. on the u.s. we will see cut on tariffs that were put on apparel and domestic items. they are being cut in half, but that leaves three tariffs on $360 billion worth of goods from china. that includes things our producers use. there is a drag on american competitiveness. until we get news on the tariffs that remain, we won't have any significant good news. isthe chinese side, the cut important because they need to incentivize purchases from the u.s. so they can reach the very aggressive targets they promised under the phase one agreement. even with the tariff cuts, tariffs on u.s. goods remain higher than on goods from other competitors into the chinese market. before the health crisis, there was skepticism whether we part get to the phase two of the trade deal. do you think it is feasible to get to those negotiations, and if we do, how much leverage would president trump have now? mary: expectations were always low for having any progress prior to the u.s. elections. changed.avirus has not we have very low expectations. i don't think it is a real change there. does president trump's leverage change? i think the chinese will be ,ocused on their own once the virus has passed. they will be trying to revise growth. pleasing the u.s. become secondary. downat sense, he has moved the list of things at the top of the chinese leaders' focus. phase two has become less important. what has become more important, one, the continuing technology conflict between the u.s. and china. today we saw a move to bring charges against huawei on racketeering. that is another step the u.s. claims against huawei. the second is the u.s. doesn't seem to be offering to give china much room to make these aggressive targets even in the face of the coronavirus. that seemsservers, like it is going to mean these targets cannot be met. we know they were going to be very difficult if not impossible .o meet our own petroleum exporters were saying they didn't think they had the supply facilities to get the types of energy exports to china that were part of the deal but now of course china's economy doesn't need all of that and it won't for a while. we are seeing in tourism, unlikely to see purchases of aircrtourism induso depressed. there is a lot of reasons to you have hit all of thesure important issues because we have deepar ongoing, the structural issues, some of them relevant to tech haven't been addressed. the phase one deal was low hanging fruit anyway by a lot of critics who viewed it as such. demand sideat the from the coronavirus, i am wondering how politically difficult it would be for president trump to be seen giving any leeway or flex ability to the chinese. flexibility to the chinese. mary: if the president constantly uses negative rhetoric, some parts of the american public will take a lead from that. if the president says, this nation has had a severe crisis, we need to cut them some slack, most people will listen. outside of the united states if the u.s. pursues a hard line with china, i don't think there will be much sympathy for the u.s.. these are purchasing targets, both what we would have expected above what we would have -- these are purchasing targets above what we would have expected. to take a hard line to say we have to sell soybeans even though you are making good efforts, i think it will not be well received. it is not just about the election but the broader idea about u.s. influence waning as a result of this. do you see any significant dislocation with the regional global supply chain, and if not, should there be? wondering if companies are wondering, given the political situation in china, the coronavirus is the latest in a string of volatility, right? in addition to raising labor costs, could they diversify factory spaces? mary: yes. there is the only these natural disasters but also the continuing political risk. any conscientious ceo will say we need to duplicate supply chains or build in flexibility or shift supply chains. tariffsnation shows the caused some destruction. we saw imports and exports between china and the u.s. were reduced because of the trade war. we didn't see many other winners. some of -- some products are more from vietnam but frankly those, like footwear and simple electronics were already moving to vietnam. the things we pick up as moving, they were not the goods on which there was a tariff place. mexico has been a bit of a winner and picked up some of the typeronics and auto inputs that were affected by the tariffs. basically we have seen when we have deep global supply chains and there is the ability to move -- there is flexibility to move and they shifted some of their supplies away from china and to other countries. it will take time for international firms to build the duplicate, open factories to find suppliers. it will take different amounts of times for industries. people that are regulated and require certification by health's if you take longer than others. takealth officials will longer than others. there arerealizes risks to having too much dependence on one location. haidi: thank you so much. mary lovely, from the peterson institute and syracuse university. if you want to track the spread of the virus, you can do so on bloomberg. we found the terminal at vrus go. this is bloomberg. ♪ news, we have breaking are getting hubei province 4823 new cases on the second day of using the new methodology. we are including confirmed cases via imaging scans, not only the testing kits. 4823 new cases. 15,000 new cases. when it comes to the death toll, 116 on this february 13. the coronavirus cases, rising to 51,986 in total. the new cases on the second day, lower than the first with the , 4823.hodology the new methods include via imaging scans and the only through the nucleic acid testing kits. we heard from the w.h.o. last night's numbers included past days and weeks. the surge was not as huge as first thought. 4823.e new cases are at the death toll at 116 on this february 13. we will have plenty more coming up. this is bloomberg. ♪ is is bloomberg. ♪ haidi: we want to get a classification on the earlier report from the australian newspaper saying the norwegian jewel ship was on lockdown as a result of a passenger being tested for coronavirus. we are getting confirmation from the cruise liner themselves, the spokesperson telling us at bloomberg there were various false media reports related to in blood -- illness on the ship. it is not true. all guests are in good health. getting clarification and denial from norwegian cruise lines on the status of the ship, docked at the overseas passenger terminal. we will get you the latest on the coronavirus very much more to come. this is bloomberg. ♪ shery: this is bloomberg markets, asia. i am shery anh. haidi: i am haidi stroud-watts. time for the bloomberg equality segment. wethink is conversations -- focus on conversations with diverse workplaces and economies. we are looking at a new superfund that is hacking into the gender gap in australia. thank you for being with us. the gap between what men and women get paid in terms of -- how much they retire with is a low documented phenomenon but it has gotten to this point. >> it has been going on for too long, and there are issues required, but it is to step up and do something about it. superfundt sets your apart? >> i will take a step back. we are well aware of the issues womennding valuation and and wealth. there is issues with the gender pay gap, women having nonlinear careers. but we believe that the valuation funds today really cater for people who have linear career trajectories, for people in full-time employment. what happens is women retire with less super because they choose to have nonlinear careers. they are the ones who have families and children and the ones who take the role of taking care of dependence. -- dependents. why we believe structural issues need to be resolved like pay gaps need to be reduced, better contributions for women, we have looked at industry and we have designed innovative products that help women save more or contribute more without changing their lifestyle or lifecycle choices. women who take time off to have children, we don't charge them fees and women who have other lice -- life-changing events, they get divorced or widowed, we help with that. we don't charge during that time. women with low balances, we refund their fees. we have partnered with over 300 brands where women can shop. every dollar they spend, they get up to 20% savings to the valuation. these are innovative real tools that create a super balance every day. haidi: how is the policy environment? is it supportive? >> that is difficult to answer. there is a lot being done and discussed. you are aware of the new guidelines being developed. it depends on how quickly things can happen and how that can really help women to save more. that goes to how the industry treats them in terms of employment, gender pay gap's and even to some extent childcare expenses. shery: the lack of flexibility, how much of this is a broader superannuation industry issue? what is missing? >> a few issues. i believe super is very opaque. there is lack of transparency. there is an issue about super not being paid for people earning below a certain threshold which directly contributes to super balances. innovations.ck of it has been many years we haven't seen the level of innovation that we have seen with other national rocks, looking at -- products, looking at fintech and others to create innovative products. and engagement, i believe there has been lack of engagement with valuation funds and this. imbalances did the start and how do you overcome this? >> i think it starts from the day a woman gets into employment, starting with gender pay gap. in australia the gender pay gap for the same type of job anywhere between 16% to 18%. a woman who gets out of university and into a job, from the day she joins, she is at a disadvantage. you look at different locations and locations that are focused on women, childcare, they earn less per hour compared to male locations. it starts from ground zero. then you take evaluation and the nonlinear careers it makes it harder for them to save more. they retire with less money and you had to the fact women -- you add to the fact women live longer and need more honey for money fore, -- more health care, it is a losing game. we have seen a remarkable level of interest in our fund. women like the fact we are designing we have developed tools to help the transparency, help with better engagement, and in products that don't require changing lifestyle, they can live the way they are. currently the only focus has been women should contribute more [indiscernible] if a woman is not earning enough, how can she contribute more? i believe our products have made women feel happy about the fact they can continue to choose and live their lifestyle while earning more money. haidi: great to have you with us. very fine super chairperson -- faiaryvine super chairperson. a company cutting her the first time -- this is bloomberg. ♪ haidi: this is bloomberg markets: asia. i am haidi stroud-watts. shery: let's get a quick check of the business flash headlines. nissan has cut its full-year profit outlook for a second time and will scrap its evident including top share partner renault. the shares dropped to the lowest level in seven years. renault owns a 44% of the carmaker. they have been dogged by instability since the arrest of carlos ghosn. haidi: ubs is looking at internal and external candidates for chief executive after the longtime ceo revealed he has plans to step down. ubs is the latest european bank to consider changes at the top in an industry beset by sluggish growth. last year they cut -- last month they cut their targets. shery: tesla is selling stock as it takes advantage of surging stocks very raising capital makes sense. they say the proceeds will be used to fund as much as $3.5 billion in spending. tesla shares closed 4% higher, shrugging off another probe into the company's financing arrangement. coming up on the next hour, our markets analyst joins us to talk about his look on the coronavirus and other risks. this is bloomberg. ♪ haidi: asia's major markets are just open for trade. shery: i am shery ahn. i'll come to "bloomberg markets: asia." -- welcome to "bloomberg markets: asia." haidi: our top stories this friday, the white house raises doubts over china's virus data as hubei province reports almost 5000 new cases and another 116 deaths. alibaba delivers an economic health warning on the state of china's economy, forecasting a fundamental impact on the countries consumers and companies. hit.: huawei takes another the u.s. adds racketeering to the list of charges against the chinese tech giant. >> japan and south korea coming online. let's get straight to the market action with sarah ponczek. sarah: this seems to be speeding through to the asia-pacific region. you see the nikkei falling for a second straight day. the topix lower for a fifth day. this is the longest losing streak of the year, also falling below its 50 day moving average, both down by more than .5% at the moment. we see a flight to safety with the yen trading higher against the dollar and 10 year jgb yields actually higher by one basis point at negative three basis points. too. korea comes online, we see a little bit more optimism in the region. we see the cost be relatively flat on the day but not falling as much as we are seeing in japan. we do see australian stops and extremelyains close to record highs. the numbers you are looking for, 71.32. he restocks falling but also very close to record highs. 11,901, andis at s&p futures extending declined slightly after the benchmark did fall roughly in the trading session. that was the first decline of the entire week for the s&p 500. that as we saw a fade after the fed announced its repo operations would be a little bit more slowing down quicker than analysts expected. let's get you a look at your f x and rates pictures. holding near its lowest level versus the dollar since 2017. we see the offshore yuan continue to trade on the strong side. 10 year treasury yields still in the range we have seen over the past couple of days, right now holding at 161. back to you, haidi. haidi: it is that cautious optimism we are starting to see despite stocks closing lower overnight but these latest numbers we have out of hubei province are much better than the 15,000 spike we had yesterday, perhaps starting to paint a trajectory of stabilization again. let's get you the rest of the first word news with jessica summers. jessica: the senate has voted to restrict president trump's power to take military action against iran without approval from congress. eight republicans joined democrats to pass the resolution by a 55-45 vote. it now heads to the house, where it is expected to be approved. the measure was introduced after president trump approved the drone strike which killed cause him solemani. the president says he will veto the resolution. the u.k.'s economic policy has been thrown into disarray after -- quite as chancellor of the exchequer. he resignedt -- after refusing boris johnson's demand to fire all five of his most senior treasury aids. the prime minister quickly appointed his deputy 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 that chinese company engaged in decades of intellectual property theft. the new charges depict a company that when international standing by trading -- won international standing. charges of fraud and evading sanctions. the new charges ratchet up the potential penalties the company could face if convicted. and the coronavirus is threatening the biggest hit on japan's economy since 2014. economists are predicting a one quarter slump could turn into a recession. gdp figures which are due later are expected to show an annualized contraction by as much as 3.8% due to a sharp drop in consumer spending. the slide would be the worst since the second quarter of 2014, when the previous tax increase saw 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 more than 120 countries. i am jessica summers. this is bloomberg. haidi: more on that coronavirus outbreak, the chinese province at the center of the epidemic has reported 116 deaths and nearly 5000 new cases under its new methodology. that now brings the total number of cases in hubei to 52,000. it's cross to our team on the ground. selina wang in beijing and yvonne man in hong kong. salina, after that spike of almost 15,000 new confirmed cases under that new method, the number today seems to be a little bit closer to trend. the second, this is day of reporting with that new method, far lower than the 15 thousand new cases that were added yesterday, but it's roughly double the number of what the province was reporting before the new methodology started, so 4823 new cases, but the world health organization has pointed out that the cases added yesterday -- days and nots before and do represent a new surge in infection. we could start to see that trend line start to stabilize. this does come down to the new reporting methodology which now diagnosed through ct scans alongside those confirmed by previous measures with the nucleic acids testing kit. this places renewed focus on questions regarding reliability of the data coming out of china and the true extent of the outbreak. ivanka, the latest in terms of disruptions or paranoia in the tourism sector. we have been a region jewel just behind me. reports coming out that there was a patient that was being tested for coronavirus. we have heard from the cruise ship company. yvonne: coming out in a statement to bloomberg news. this is a spokesperson saying that, this morning, there were various faults. there is absolutely no truth to this. the vessel remains in operation and all guests onboard are in good health. this is after we heard from the australian newspaper saying that the region jewel arrived in the city this morning, attempting -- a singaporean man fell ill with respiratory illness. the company saying that is not the case. this just goes to show the fear that countries and even the tourism industry are facing right now after that diamond had 218 cases where people contracted the coronavirus. we saw an additional 44 yesterday, and at this point, we are continuing to see the financial fallout for these crews liners. uise liners. royal caribbean canceling 18 sailors. 2020 profit.t its earnings could be shaved off by $.65 a share this year, and they say the fears go beyond just asia now. even when it comes to the recent bookings on their broader business, they are getting softer as well. todi: it is really difficult see who would be booking cruise ships at the moment. we are continuing to watch for the political fallout at the national people's conference, the big political powwow that takes place every month, now in jeopardy, and we have had yet more changes at the top in terms of officials being removed as well. rapidly seeing this escalate from a health crisis into a political one. we had two top communist leaders -- the hubei provincial leader as well as the wuhan city leader. we can see beijing's dissatisfaction with this. the methodology change does give the new group of leaders a clean slate to start. it is important they have an accurate reading of numbers before those leaders come in. after the congress, quite significant if china does decide to delay that event. this is the biggest annual political meeting. it is when a lot of big announcements are made, including china's economic announcements. that would be the first time it's been done in decades. anothere also have death outside mainland china. this time, in japan. yvonne: that is the first fatality for japan. what we have learned so far, this was a woman in her 80's that lived outside of tokyo. she initially was being treated for a separate condition. it was after her death that the doctors discovered that she tested positive for the coronavirus, and local media reports also saying that she is the mother-in-law of a taxidriver, who also contracted the disease. health officials have not confirmed that yet, but this just goes to show that there are more indications now that this is being locally transmitted in japan and a lot of these cases, new cases, people have no travel history in china. selina wang with the very latest and our bloomberg markets anchor, yvonne man. just to be sure to keep up with this latest development, you can run that function on the bloomberg. you will find our quicktake landing page with the latest global figures from the centers for disease control, headlines from the bloomberg news room, as well as how specific companies and stocks may be exposed. that is on the bloomberg. still ahead, more on the coronavirus. notays the outbreak will derail risk-taking in global markets. next.alyst joins us plus, alibaba says the virus could have a significant impact on its growth. we will review alibaba's latest wu.ings with vicki this is bloomberg. ♪ shery: nissan falling as much as 7.5%, right now falling 6% cutent -- 6.6% after they their full-year profit outlook for a second time. they also scrapped their year-end dividend investors. theave seen nissan -- arrest of carlos ghosn. nissan falling 8%, haidi. over: greater uncertainty efforts to contain the coronavirus spread continue to keep investors on edge. a market analyst joins us now. we saw u.s. stocks falling for the first time this week, but that was really more out of concern over these pullbacks when it comes to federico operations. is there a sense that it is central bank liquidity and this idea of a put still being in a market that is driving sentiment and trading at the moment? >> i think it is. i mean, i think that is where you have to start from when you are talking about price action and market dynamics within the stock market. i do not think, like other areas of global markets right now, that you could point to that the stock market is really trading on concerns of fundamentals, per se, risks posed by the outbreak of the coronavirus and potential impact of that, and actually, that has a major part to play but i think when the s&p 500 sold off last night on the basis of net news that these repurchase operations may be modified in the future, it was driving stocks with relative yield in the bigger picture. in the short-term, that the quiddity flowing through the market. >> where do you find opportunities? it is pretty hard at this point to really know the true economic and corporate impact of the coronavirus, depending on how disrupted supply chains are and the demand side of things is, but are you expecting it to shore up? companies are being asked about it or talking about it, right? kyle: yes, well, again, in the stock market, you almost have to separate was happening in the stock market to what is happening for barometers of growth around the world. you talk money markets, currency are two separate beasts right now. we have seen a solid u.s. earnings season this quarter and we will see an expansion in earnings for the first time in practically a year, but there is still a level of -- carrying to forward guidance and it will probably be the case that we will see the coronavirus and its impact start to show up in corporate earnings for u.s. companies and global stocks in the coming quarters as the impact starts to take hold for the virus and outbreak itself. again, i think, really, coming back to your first question, all this necessarily derails stocks in the bigger picture? probably not. there is a case for yield. when we see treasury yields fall, benchmark treasury yields fall, it is almost another little catalyst to buy stocks in this environment, so i mean, you are looking at a stock market that is incredibly overvalued. fundamentals are shaky. a short play on stocks is a wonderful opportunity from a risk-reward basis, but if you look at the bigger trend, just in terms of the stock market, you know, there is a catalyst to keep pushing this market higher and higher until the death knell rings but we are probably a while off that. that's not about where the opportunities rp or dino they are out there. in terms of stocks, we are somewhat divorced from the fundamentals and we could remain so for a while yet. >> given what we are seeing right now, do you go out and start buying risk outright? i am talking about commodities, commodity currencies, and so forth. what happened last night was really unexpected, so do you really want to start listing those hedges we had before this coronavirus outbreak? kyle: right at this moment, if you had the choice, perhaps not. you look for those signals to suggest that, effectively, we are looking at, like you alluded to before the break, that kind of recovery. it is still potentially on the cards. if you look at some of the better forward-looking indicators about global growth, about what is driving growth more broadly, the monetary policy is very strong. we are starting to see some pickup and forward-looking indicators of growth. the concern with coronavirus right now, and this is the market opposition, this is the global growth recovery which has probably been stalled or put on ice for a little while rather than derailed. with that being the case, i think, from a tactical point of view in trying to position as a trader in this environment, you look for indicators where the rate of growth or increase in the cases of coronavirus starts to diminish, markets start to quantify the impacts to economic growth, uncertainty falls, and that's when an opportunity arrives to take on greater risk. for me, some very key levels have been protected in copper prices of the oil market. the aussie dollar. all those kind of growth proxies, those october lows that were traded at and the market was propelled from. when we had this reflation trade coming through, the levels have held reasonably strong in the market throughout this experience, but you start to see a little bit of optimism, some greater certainty, and your trading signals starting to point into place. there is still a great opportunity and growth sensitive assets, but as always, the difficulty with treating these things is timing and right here, right now, we are not through the woods to justify that yet. shery: a pickup in deflation could derail any expectation we had of a central bank put around the world. kyle: for me, that would be the biggest tail risk. i don't think it's particularly unlikely in the markets reflecting that prices, in those situations where you are looking for extreme trading opportunities or things that are really going to move markets. look for things that are relatively unlikely and would cause a great deal of repositioning as a result. now, right now, inflation risk seems very low on the agenda. you might see some supply shocks throughout the global economy as supply chains are disrupted because of the coronavirus and the rest of it might lead to a short-term lift in inflation. if you look at the real fundamental concerns right now, inflation is not a big bugbear, but if you do happen to see inflation for the backend of this year, if we do get a meaningful growth rebound, the kind of adjustment that that might necessitate in fixed ,ncome markets, as policymakers particularly central bankers, change their position towards policy which is accommodative in supporting stock prices, that kind of recalibration would be a major shock to the markets and that would be the biggest tail risk in the year ahead. it has to be said, almost by ssab, that is not a very high one. anything that derails the notion that it remains accommodative, anything that changes that perception, considering that is what is driving stocks higher right now, that being overturned would be the biggest risk and would have the biggest ramification for market prices. shery: always great talking to you. coming up next, the u.s. raises the stakes in its battle with huawei, slapping new racketeering charges. we will give you all the latest, next. haidi: just take a look at nissan shares in freefall in the early part of the session in tokyo. in fact, falling the most since brexit, 2016, referendum day. the stock is trading at the lowest in 10.5 years. at the moment. and of course, this is after earnings disappointed company profit, vanishing last year. it will be very difficult to pay a dividend, and investors reacting in kind. these efforts halt declines in the market. they do not seem to be working. we will get more on nissan throughout the course of the trading day but it does not look good. freefall at the start of the session here. lots more to come. this is bloomberg. ♪ haidi: this is "bloomberg markets: asia." i am haidi stroud-watts in sydney. shery: i am shery ahn in new york. aidi: the u.s. adds racketeering conspiracy charge against the chinese tech giant, associatedrically with prosecuting mafia figures. tom giles has the details. you look at these racketeering charges anything trump administration is really going all out against huawei, and then on the same day, you get the news that they are getting the temporary license extended for another 45 days, so what is going on? definitely the trump administration ratcheting up the charges. they are looking at the ways they can make life harder, and the punishments longer, for huawei. there is this belief that not only does huawei present a national security threat by potentially creating backdoors for the chinese government, and we have discussed many times -- as we have discussed many times, but also there is this year's long pattern of illegally stealing intellectual property, making money off of it, incentivizing employees to steal trade secrets, and gaining an unfair competitive advantage on the rest of the world, including players in the u.s., so it really does represent a whole new front in this ongoing war against huawei. as you pointed out, these are charges that the government historically has brought against certainly trying to bolster their case against huawei. as shery mentioned, you have the company given an extension for the delay on the fan of some of its -- ban of some of its products wer it's -- r is it more political as opposed to a commercial move? kyle: it is so interesting, this ongoing dilemma that u.s. companies face and other companies face when it comes to huawei, not just in the u.s., but our closest allies around the world time and time again, they say we want exceptions to ns, these ba restrictions the u.s. is putting on huawei and pressuring us as allies to put on huawei as well. the point, the argument continually is, yes, maybe it represents a threat. maybe they were bad actors in the past. maybe they unlawfully stole trade secrets. awever, we are at the cost of big buildout of 5g technology. this is wireless technology that will cover wide areas, and it is going to speed transmission and make wireless connectivity much more seamless, and we need huawei equipment, and it is very crucial to us, so give us an exception. it is a really interesting uncomfortable tension. think you so much for joining us, tom giles, with the latest on those racketeering charges on huawei. that's get you up-to-date with the latest business flash headlines this hour. an initial public offering for part of universal music group by early 2023. universal music is a french media group big profit driver following a surge in the popularity of music streaming. vivendi is selling as much as 20% of the company to tencent. it values the business at $33 billion. shery: a federal judge has temporarily blocked microsoft from working on the $10 billion pentagon cloud computing contract after amazon asked for the delay. amazon is challenging the validity of the so-called that i cloud contract over claims president trump interviewed in the bidding -- interfered in the bidding process. they say it's disappointed by the ruling. coming up, his honesty really the best policy for global central banks dealing with virus concerns? this is bloomberg. ♪ >> when it comes to customers, at this very moment, it's mainly on chinese customers, the chinese allies, which are very impacted by the situation. we are in a dynamic discussion with them to see how we can support them, and on our side, there is a risk that could come from the supply chain. we have a lot of presence in china. airbus presents. i am very happy we have started operations at the beginning of this week. >> the large majority of these plants have reopened earlier this week. the products are essential, so it is in everyone's interest that we have uninterrupted supply. the safety of our employees is important and we want to be in full compliance with any rules to restrict the outbreak of the virus. butt is not uncertainty, for some commodities, it is having a positive impact to the short-term. have we had any refusal, credit refusals, or turning away of cargoes? at the moment, the demand is still strong. executives weighing in on the impact of the coronavirus on their businesses. let's now check how the markets are reacting to all the virus news. sarah ponczek. sarah: this is shaping up to be a more risk off session as we see benchmarks trading at their those of the trading day so far, 30 minutes in. you see the nikkei falling back to its 50 day moving average, 200 companies or so are trading to the downside within the benchmark. you topix falling for its fifth straight day, the worst losing streak of the entire year, and you do see the kospi down less than japanese markets, down by .2%, and still clinging onto the gains for the week. switch up the board and take a look at your commodity complexes. have seen a rebound over the past couple of weeks, and it looks right now like oil does not want to give up completely on those gains. the past three days, we have seen wti crude oil moving higher. today, roughly flat, but modestly moving to the upside, higher than $51 a barrel at the moment. we do see copper futures moving to the downside after what was three days of gains, and we see siteblaming -- gaining a data after investors moved to the safe haven metals. let's take a closer look at wti crude oil. this is a chart of its performance year-to-date. down 50%. this week, we are on track to see the first week of gains for wti crude oil since the first week of january. the first week of the year, and it is very notable even as we have gone in many projections, of what we are going to see happen to global oil demand overnight. we did have the iea come out and say they project we will see global oil demand fall this quarter for the first time in over a decade. still, we are seeing oil prices coming back this week after the rough run we had seen earlier on. back to you, haidi. haidi: sarah ponczek in new york. central bank's from sydney to washington are confessing they just do not know how big the economic impact of the coronavirus will be. should this honesty be the new benchmark for policy communication? daniel moss joins us from singapore. it is nice to hear voices of certainty but we get the feeling that behind the scene, central bankers themselves are struggling to come up with the appropriate response. i am wondering, if as you say in your piece, agility or flexibility is really the new benchmark, how agile is monetary policy globally at the moment? suspect it's, i probably going to become quite agile. ist we are seeing right now kind of real-time thought bubbles from central bankers, who are inevitably asked about the impact of the virus, and you know, the response amounts to, look, we will have to get back to you on that one. there are various gradations of that. as, thatents strike us was candid. it isher -- other times, a little more coded. dare i say, this could be the new normal for a wild. whether it is a good thing or not, it is here with us. shery: there were some fairly candida marks -- candid remarks what did she say? daniel: the one thing that struck me there was the admission that the rba had not taken into account the fact that china lies at the heart of a lot of supply chains. now, at first glance, that is a rather jarring comment. one would wonder, what are they taking into account? we are seeing this process in real time, and you know, i actually give, in retrospect, the rba some marks for candor there. this is one of the moments where it is fast-moving, news is emerging enough inventory -- in ary manner. there is a lot of noise. some of it is substantive. some of it could be more signal. they have got to try to sort through that. it is probably better than saying everything is fine where everything is terrible. you know, we have to learn to dance with this. haidi: of course, the central -- in the two days of testimony, what was it that jay powell said that you thought was most significant? haidi, it wasow, five words in response to congress. the house financial services committee, and those five words were material reassessment of the outlook. just to break down the jargon here a little bit, powell was asked about how persistent and long-lasting the impact of the virus would be on the u.s. economy, not whether it would have an impact, but what what the nature and longevity of that be? at the end of that answer, he said the thing he is watching out for is whether it leads to a material reassessment of the outlook. now, in central bank -- that is a somewhat coded, maybe even loaded, phrase. it is used sparingly. what it effectively is saying is it does not have to impact the data we see in a major way. it needs to fundamentally alter what we perceive to be the likely course of the economy. material reassessment is typically or historically usually accompanied by a policy shift, so let's keep our eye on that one. haidi: dan, always appreciate you coming on with us. dan moss in singapore. let's get you the first word news with jessica summers in new york. shares: alibaba as u.s. fell after it warmed the coronavirus will hurt revenue growth in the current quarter. it says the outbreak is undermining production and changing consumer spending patterns. the chinese e-commerce giant made the comments after reporting strong financial results for the december quarter. revenue surged at better than billion, 38% to $23.1 and that income rose 58%. being blamedus is for what's expected to be the first global drop in oil demand in more than a decade. the international energy agency says demand will fall by more than 435,000 barrels a day in the first quarter. that is a widespread shutdown of chinese economy. annual gross and global consumption may drop by about 30%, but at this stage, it's really hard to be precise about the full impact of the virus. the united nations says more than 140,000 syrians have been displaced in the last three days by violence in the country's northwest. tot brings the total number more than 800,000. the u.n. says 60,000 of those displaced our children. the syrian war is now in its ninth year. and the white house is denying reports that it plans to pull president trump's nomination of judy shelton to the federal reserve board. shelton is a former economic advisor to trump's presidential campaign. was republican and democratic lawmakers have raised concerns over her past comments on the gold standard, the dollar, and whether the fed congressional mandate is meaningful. 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 jessica summers. this is bloomberg. shery: thank you. we are now getting news that tesla stock offering is such a price at $767 per share. we have heard that tesla is selling about $2 billion of common stock, taking advantage of its surging share price. the stock at the moment is actually close at 800 four dollars, and bloomberg now hearing that the stock offering incentive price at 767 dollars per share. this of course announcement coming two weeks after elon musk said that raising capital did not make any sense at the moment, but bloomberg learning that the stock offering is set to price at $767 per share. stock.heck in on another nissan falling in tokyo today, trading at their lowest level in over 10 years. that's after the automaker cut dividends in its full-year outlook. bloomberg global business editor, dave mccombs, joins us from tokyo. expectingwas really stellar results out of nissan, so why is the market reaction so sharp? the dividend cut hits investors right where it hurts. they were counting on that money that's not coming in. that's an immediate hit to the stock. there were also some worse than expected sales results. they fell in every region. that's in china, europe, and in the key north american market as well as at home in japan, so sales are down across the board, and the outlook for the rest of the year does not look good for the company at all. put some they tried to positive spin on it. the coo said he knows what the problem is and talked about introducing new models in north america, but they are really having a cyclical problem where they had been relying on vehicle incentives to push their new models out to get sales up, and now, they are pulling back on those because they need to save cash, and when they pull back on those incentives, that's a direct hit to their sales. it's really hard for them to make that up and get the cycle back to positive in the key north american market. dave, in terms of the outlook, are things likely to improve at all dave: -- at all? dave: there is not that much light at the end of the tunnel for nissan. again, they have got to get new models out, and all this has to take place at a time when the company is looking to cut costs, the coronavirus has hit them, their production has been stalled in japan in part because they are having trouble sourcing parts from chinese factories. he did say that output will be e restored in the middle of the month in china so that will be back on track. the outlook is not great at all. you can see that as well in the reaction of reno. -- renault. the nissan dividend is a key pillar of their earnings so that will hit them. we will get more clarity on that ult reports its earnings. they have yet to yield any positive results for the company. as you know, there is a new ceo that came into place in december. he said that they will have a new midterm plan for the company to revive profit, and that will be in may. there's still a couple months to come for that, and at the same time, no real positive news at all coming out of this earnings report. pessimism being reflected in the stock selloff today. our global business editor, dave mccombs, they are with the latest on nissan. coming up next, alibaba's latest numbers were a beat. the e-commerce giant said coronavirus could turn those numbers around. this is really a stock that says a lot about the state of the china economy. all of the analysis, up next. this is bloomberg. ♪ haidi: this is "bloomberg markets: asia." i am haidi stroud-watts in sydney. earningsibaba reported on thursday, saying the coronavirus is exerting a fundamental impact on china's merchants and will hurt its revenue growth in the current quarter. that spring in our guest from icbc. they did -- let's bring in our guest from icbc. the concern is about what is going forward, right? they do still have some parts of their business that could benefit. through delivery, cloud businesses. so will this be a net negative or perhaps not so bad for alibaba given how much of a diverse business they have? >> first quarter is usually the off-season for e-commerce players in china due to the chinese new year holiday. however, given the coronavirus is expected to last well beyond february, the impact on the e-commerce traders is therefore more substantial. firstly, the production of the suppliers has been disrupted, leading to a potential shortage of some products. secondly, as logistic companies in china currently are operating therefore, capacity, the cost -- will increase, exerting downside pressure on the total transaction for the platform. on the other hand, we believe the demand-side remains resilient. we have seen some products -- hygiene products, daily necessities, and some fresh food -- they remain strong. also, people are encouraged to stay-at-home. more people will choose online shopping instead of going to stores. we believe that in the have negative may impact on the financial performance, especially in the first quarter of 2020. but in the longer term, we believe that it will help user acquisition and enhanced user activities on the platform in the longer term. it takeow long could alibaba to shake off the impact of this outbreak? vicky: currently, even the companies don't have accurate estimates on this, and they cannot quantify the impact, since the production has just resumed early this week. but we think that maybe this in the wholeast lastingarter and may be into the second quarter. haidi: what about the business? it was already concerned about rocket share diminishing in food delivery. how does that change with the coronavirus outbreak? vicky: our market has worried about alibaba's local consumer business and -- -- for the nd for the market share. they have changed the main strategy from user subsidy to the ecosystem. we have seen some progress on that the it is there coo is currently responsible for the consolidation of the resources, and it will further the online platform and the online traveling platform into its local consumer business, so we believe the business will be impacted from the delivery problems in the short-term, but may be in the longer term, we are more optimistic on this business and. end what do. you think will be the cost haidi: of these supportive measures? providing subsidies. what is that going to add up to for their bottom line? believe -- alibaba has rolled out a series of relief programs such as waving the annual membership fee as well as rolling out some subsidies and for low interest loans merchants. it will definitely impact the bottom line and will cause some short-term financial impact. appreciate you joining us. thosewu taking a look at alibaba results. we will get more analysis ahead on those earnings. us with heroins views at 12:40 p.m. if you are watching out of sydney. plus, a great conversation up ahead. we will be speaking to twitter asia vice president -- about the company's latest results at 11:30 a.m. hong kong time. this is bloomberg. ♪ haidi: this is "bloomberg markets: asia." i am shery ahn in new york. haidi: i am haidi stroud-watts in sydney. bloomberg anchored david ingles joins us now. you are watching today yuan fx bond markets. these are where we are seeing thee the truer effect of coronavirus in equities. david: the other side of the same coin. we talked about how turnover and the equity market has gone up because people are staying at home and you can see retail investors dominate the market from home. but when you have a lot of the institutions and firms cutting down business continuity plans, working from home, or not even going to work at all, you will tend to get what we are actually seeing in the data right now, which is essentially volumes, turnover, transactions in both the fx and bond markets, going back to levels not seen in about two years, and the concern really now is whether or not the pricing we are seeing, while it is correct, of course, it is absolutely representative of how the market feels. when you have the institutional investors come back, will they join the bond market rally? about more was people coming back to work. also watching carmakers today. we are starting to see data reflecting some of that sentiment hit that we have gotten in january. david: in industry association, thursday afternoon, asia time, they released the failed numbers for the month of january. suffice to say, they were horrible. you know, you have the seasonal effects of the lunar new year, and then you have people who eventually not being able to go to the showrooms. i think it was a 24% drop. it was a massive drop. the biggest one since 2012. and the thing is as well, that's not even the worst of it. think 1.5 weeks towards the back end of the month is bad, you have to wait until -- wait and see. it is valentine's day. there is no indication that things are at capacity. data will probably tend to be a lot worse in january. we will speak to you very shortly. before we get to bloomberg markets china open, we are going to the start of trading in hong kong, shenzhen, and hong kong area a pretty mixed picture. the nikkei 225 down by .7%. this as japan reported its first coronavirus death. just a surge outside of mainland china. the kospi hanging onto gains. in australia, tepid trading. new zealand lower by .1%. shery. shery: take a look at futures. u.s. futures under a little bit of pressure right now. we have seen a very turbulent session in the u.s. up and down depending on the headlines we got on coronavirus. also, stocks fading at the last moment because we have the new york fed saying they will further shrink repurchase agreement operations. u.s. futures flat. taiwan futures slightly higher. remember, taiwan just planned a special budget of 60 billion taiwanese dollars to cope with the virus impact. futures in china were down when they last traded, and we are seeing the offshore yuan holding at 698. we will bring you the yuan fixed as that becomes available in the next half-hour hour or so, but really, it's been all about the coronavirus headlines, especially now that we are getting the new virus cases, closer to trend. we have seen the new methodology coming in at around 4820 three new cases. 4823 new cases. haidi: clearly some confusion as to how this new methodology works, but the numbers today, pretty reassuring, i would pay. cautiously, i would say that it does seem to suggest the 15,000 spike in the virus numbers yesterday was sort of the warehouse patients that come in under the new definition. coming up in the next hour, a big interview for you guys. 10 minutesoins us at past 9:00 in sydney, telling us how he plans to stage a turnaround for the struggling money manager after losing $2.5 billion last year. is there light at the end of the tunnel? you don't want to miss out on that conversation. ♪ >> it is 9:00 a.m. friday in beijing. 8:00 p.m. in new york. we are counting down to the opening of chinese trading. province reports almost 5000 cases of coronavirus. this is the second day of using a new methodology to calculate infections. alibaba warns infections are affecting consumers for the quarter. and the u.s. is using a law that usually targets mafia figures to turn up the heat on

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