It seems to be working his magic when it comes to boosting sentiment on the markets. When it comes to the growing power, it is pretty good. s are talking about china manufacturing pmi numbers coming in at record lows. These are all falling into contraction territory. As heidi mentioned, the markets are ignoring all of this because of the latest hints we got the boj action. A check on the markets and how they are tracking with sarah. There is nothing like higher coordinated central bank stimulus. We have seen this dark shift in sentiment. We see the pacific Index Trading modestly higher. The nikkei 225 is higher after falling as much as 1. 5 . We see Mainland China stocks leading gains. This is of more than 1 after the beating we saw last week. Off. 3 . Re theme point, we saw training back in positive territory. We are seeing some fluctuation. Gold is coming off of its highs and trading lower than 1600. At the same time, we see the japanese yen trading a little higher against the dollar but not as much as we saw earlier in the trading session. Treasury owes are now yielding 75 basis points after falling below 74. One it comes to the 10 year, still pretty low. Higher than below 104. 1. 04. Sarah is watching all of the markets on the action on the markets. Numbers are not looking pretty. That number falling to its lowest on record. Tom mackenzie has more in beijing. We note that these privately Held Enterprises tend to be hit higher. Are the expectations that the government will provide more support . The are rounding out this unprecedented pain for the Manufacturing Sector that there under. 40. 3 is well below the estimates and the january numbers. It is the smes. The Small Private Companies that are taking the brunt of this coronavirus pain. Officials are focusing their efforts to try to support the smes. Survey suggests there may be as as a third of them that could run out of cash within the week. This is well below the estimates. Record lows. In terms of what the economists are doing crunching the numbers, you could see a contraction of 2. 4 . The contraction may be as much as 6 . In the second half, you could see a rebound but others say you may not get a v shape. Youre not seeing a massive flood of stimulus in china. It is still focused on smes. They may look at the benchmark deposit rates. They will have additional measures around tax cuts. They are bounding at the last few days. This is far more important that it was back into thousand three. The Service Sector has been hammered. When it comes to the Virus Outbreak itself, the number of deaths seems to be slowing down inside china. Not so much for the rest of the world. Absolutely. That trend continues. It is certainly positive. We can stretch that. On two additional cases march 3. March 1. The vast majority in Hubei Province in china, the central outbreak. That is a positive. Globally, it is a different picture. We are in the early stages of continued outbreaks across the road. South korea has about 4000 cases. A lot of concern about what is going on there. In italy, there is over 1700 confirmed cases. France, spain, more cases there. Then you have countries like egypt and algeria joining the list. Deaths in tehran. Iran. Organizationlth has said that they dont yet consider this a pandemic but they have said the window for trying to contain this virus is narrowing very quickly. There pushing for urgency. Much for that. Ry this is coming on the back of the first gays in manhattan. The first fatality in the u. S. There are 70 confirmed cases in the united states. First case in manhattan. The first fatality in the u. S. There are 70 confirmed cases in the united states. This is coming so quickly. Thes get to the markets and prospect for recovery for the global economy. We have our guest, great to see you. Great to have you. There was a sense before this later latest recovery that more support is coming for the markets. That this is not just a selloff we are seeing because of price correction. This is the market realizing there will be material downsides to global growth. Is it problematic for economist in terms of measuring what the downside is likely to be at the moment . Absolutely. We are not just looking at supply but demand. This is really about people. The coronavirus is an extra layer, the people component is missing. We need people to manufactured goods. We need people to go outside and consume goods and demand services to drive the economy. Worse thanou saw the ever manufacturing pmi this morning but also, over the weekend. Something we already expected because of the closures and quarantines necessary to contain the virus. What is really interesting is on the service side. It has never gone this low before. We have both engines of growth sputtering. That is important because we need to limit the fallout. The second part is what is the spill over and the reduction activity, the shortage of labor . It will spill over to the rest of the world because of the role of china in manufacturing. This is key for sectors that are electronic, textile, household chinese demand has become increasingly important. We have seen a chinese regulator come out, authorities and pboc trying to support the economy in china. Of missteps risks as they use all of their tools to support the economy . The cost of the coronavirus and the spill over. Some people say it is just the shock. You will resume into the whole ofr after this Ripple Effect spillover. Higher cost of production, higher costs of labor. After that, you will have a demand shock. Not only do you have the deceleration of demand in china but an increase in the u. S. Both of these factors mean there. Eeds to be aggressive measures the be ok is holding rates. Boj is holding rates. Have seen very targeted transportation and tourism are not always the only ones hit. Youre looking for a broadbased. I want to talk to our viewers. Some talk on wall street that with the meeting more than three weeks away, we may get an up cycle announcement. This is crazy. Fix thes actually economic side of things . You can add liquidity but what if there is no demand . Absolutely. I think it will be helpful for the margin. The dollar softening is helpful for emerging markets. Also, lower funding costs will be helpful. These things are very helpful but it does not change the fact that people are riskaverse. They are avoiding large crowds. More importantly, the government measures imposed to make sure that this does not spread we still dont have a lot of answers. Just many questions. With this accelerate the disinformation . We dont know this. Ata result, we not only look the shock that will be felt by u. S. Firms, we also have demand shock because american firms are very global. They are global giant corporations. Take revenue from the rest of the world, china, asia and europe. On health and limiting infection rates and not really focusing on going out and taking a lot of risks at the moment. Your sticking around. We will have more with trinh. Japan which with cut investment in the last quarter for the First Time Since 2016. Businesses reeled from week weak Global Demand. That is before the effect of the coronavirus was felt. Capital spending dropped free. 5 . 3. 5 . Economists expect a drop in spending by 2. 5 . Opec is going to meet with its allies to support the world market even though it is comfortable with russia is going to meet with its opec allies to support the world market even though it is comfortable with prices. More arabia will push for new output codes to meet falling Global Demand. In the u. S. , Pete Buttigieg has made it official, abandoning the race for the white house. After disappointing finishes in the nevada caucuses and South Carolina primary, the path to success became narrow. Pete buttigieg one in won in ohio. Police and demonstrators clashed in hong kong on sunday as antichina protests erected again. Crowds gathered by the Police Station with local media reporting, police fired pepper with at least one officer drawing a firearm. Transportation was suspended at subway stations after one protester set fire there. 2700ed by more than journalists and analysts in more than 120 countries. I am su keenan, this is bloomberg. Quick still ahead, hong kong this hong kong businessman says he does not see any improvement in the city until the Fourth Quarter. Central are watching banks in malaysia and australia as for countries look to shore up growth. We will tell you what to watch next. This is bloomberg. Pressure continues to mount on specific economies as the coronaVirus Outbreak spreads. Hong kong retail sales will likely show more fallout from months of protests and a drop in mainland tourism. To releasecertain policies with malaysia delivering backtoback rate cuts. There is inflation data for the philippines, thailand and taiwan through thursday and friday. Still with us is trihn. Trinh. Let me start with hong kong. Is there any hope for the economy there . It is not just the outbreak. Months and months of protests. Any hope for them for 2020 . Trinh i think hong kong has two problems. The decline of tourism, that is not catching a break after the protest. Hittingthe coronavirus the sector. Hong kong is fighting itself. It is the connector to the rest of asia. It is very locally driven now. Not so global nowadays. In terms of local activities, there are not a lot of local activities. Onlyong kong government is resuming work. The fact that it is very externally driven and now relying on local, we dont have many drivers of growth for retail. It will be very ugly. It is not alone. Misery loves company. What about other countries and economies around the region . Australia has gotten to a point on. E there is cold piling gold is piling on. It is three ways. One is tourism. Not just for thailand but other asian economies and australia. Also, south korea. Tourism has increased the share of gdp over time. About not talking mainland tourism, we have people in south korea not going anywhere. We also have other people avoiding unnecessary measures unless they need to. Be ain itself is going to drag. The more dependent you are on this, it is going to be more impactful. Is the supplynnel disruption. We see that affecting imports and the rest of the world. We know that this is affecting household goods, text house. These items, you get hit very clearly. Youre looking at south korea, dependent. A huge aside from the coronaVirus Outbreak, aside from trade tensions we have seen in the past few months, what about in idiosyncratic issues like malaysia . In a political limbo. Provides Political Risk for malaysia. You can see that there is tension regarding these issues. Instead of book using odds and limiting the fallout which will be the supply chain and demand side, it is critical because malaysia is the highest exposure exposure the highest to commodity. Not commodities but tourism. There is a share of gdp from malaysia by and large. Malaysia is a huge exporter of electronics and manufactured machinery goods. The government is totally distracted. As a result, this should be further for malaysia. I think this is going to be the picture not just for malaysia but elsewhere. These aremply places that will be hit even more because not only do they not have domestic sources of growth but external growth is looking bad. If you dont have tos stick domestic sources of growth, you will be hit twice. Particularly on the corporate sector because have investment across the region in Mainland China, Southeast Asia and on shore as well. Thank you so much for joining us. The senior economist for emerging asia. You can keep on top of the stories on your bloomberg. You can use the quick take page and you can see headlines from the bloomberg newsroom. This is bloomberg. Our plans are not as full as they would have been coming out of china. We have the ability to move planes in and out. Lets look at the latest business flash headlines. Kuten is planning a bulk data plan in japan. It is half the price of his three major rivals. They are considering offering unlimited data to attract new customers. The announcement may come as early as tuesday. The company is expanding in the wireless market to challenge its rivals including softbank. Taking a sizable stake in twitter and planning to push for changes that may include replacing jack dorsey. Elliott has nominated for people to fill three available board seats. 4 of twitter, placing it among the top 10 shareholders. Lets get a check of the markets right now. We are seeing a rebound across asia. Up. 7 . Seng is take a look at the nikkei. Seeing a broader positive outde to be carrying operations. This is bloomberg. When you move homes, you move more than just yourself. Thats why xfinity has made taking your internet and tv with you a breeze. Really . Yup. You can transfer your Service Online in about a minute. You can do that . Yeah. And with twohour Service Appointment windows, its all on your schedule. Awesome. So while moving may still come with its share of headaches. No kidding. Were doing all we can to make moving simple, easy, awesome. Go to xfinity. Com moving to get started. These are the first word headlines. Has now reached more than 65 countries around the world. The u. S. Is putting travel restrictions on korea and italy. Health officials admitting the chance of containing the infection are narrowing. New york city has confirmed its first case. Has led to the cancellation of an Energy Conference in houston. To widen theng budget deficit. Death stare have risen to 34. The extra spending will include tax credits to counteract the economic damage. Leadingas canceled the athletics event and some schools will be closed on monday. Louvre is also shut. Europe is facing a new migration said itfter turkey could except applications. 76,000 people left turkey. It is not clear if they crossed into europe or remain at the border. Australias housing boom is back. Prices in melbourne hitting a record. Those in sydney not far behind. Property values behind the country surged. The upswing started in the middle of last year and has already recouped much of the losses from a twoyear housing decline. Global news, 24 hours a day, on air and on quicktake by bloomberg, powered by more than 2700 journalists and analysts in over 120 countries. This is bloomberg. Shery new york city confirming its first case of coronavirus. They are identifying close contacts of that patient. It was a manhattan woman in her late 30s. Lets see how markets are attracting right now. Quite the may change. We have seen it triggered by the emergency statement from the boj. Coordinated central easing may be an site. Insight. We see chinese stocks leading the game. A major swing in japanese equities. S p futures are trading higher. Major fluctuations. Wti was off by 3 earlier today. That just shows you the change we are seeing. We are looking back at that opec meeting. Shery lets get more on these market moves. We start off with japan. David we are seeing volumes come through. The comments i saw following a statement was that the doj was forced to do so following the feds similar statement. Change in defense status. What is interesting about the is the fed was signaled to cut. Following that statement out of got a taste ofn what they are capable of. It goes to show that markets are starting to sniff and smell coordinated centralbank action. Which has helped solve some of the market gyrations. Obviously we need to see more when it comes to the economy. You could get a very pronounced and violent reaction in money markets. You have the aussie dollar reflecting the slowdown that we have in china. If china is continuing to get that, they will have to step in. Through you have gone all of the comments. We know the governor is very reluctant. Know you are keeping a tally. David the numbers are in the minority now. Markets thate more are not 10 below their peak. Very close to a bear market. Up one posts. He is basically reminding everyone that we see the strongest rallies. You are getting a very strong rally today. And yet a short recovery. Way backs us all the to the Global Financial crisis. We are talking about emergency measures out of Central Banks. Where does that take us in the next couple of weeks . Shery thank you very much. Lets turn to hong kong. Register as may deeper declining january. It is often the busiest. For local retailers. But not so this year given the impact of the coronavirus. Thank you so much for joining us today. I just mentioned the shortterm numbers when it comes to the retail sales. About theask you longterm impact and potential for hong kong. The city seems to be very different than what it was decades ago. When you take a look at the potential of hong kong now as a Financial Hub or logistics have as it was inspected and. What do you see . When you take a look at the vision for hong kong, what do you see that is different from the time decades ago . We have gone through six months of protests. And now this coronavirus. The business has changed we have many new people coming to hong kong. The fact that you have more mainland chinese entrepreneurs and young people coming to work in hong kong. The mix of people has changed. The area has changed. But it still continues to be given theery experience hong kong has gone through, whether it is the u. S. China trade war or the ongoing protests, now the outbreak of coronavirus, is it time for the city to diversify away from its dependence on the mainland . Easier said than done. Systems. Country, to we are part of china. You have every country in the world and every businessman in the world 20 to get into china to do business. You can see how much trade between those countries really passes through every year. The fact that hong kong needs to diversify is financial services. It is the big breadwinner here in hong kong. We get up to 70 million tourists a year. 80 from china. Hong kongs economy has really been based around that for retail, tourism, all of these things, property sales. It has all been the mainland chinese who have driven the market here. I think going forward, hong kong needs to get more into digital. China is so far advanced with digital. In hong kong, we can supply that. The other strength for hong kong is the gr