We saw a stronger fix, some signs of trying to anchor the moves we have seen. Watching the likes of indonesia coming online. We are looking at another day of gains for jakarta. Hang seng, slightly under pressure as we wait for the npc to vote on that National Security legislation this afternoon. Former,ei is the upper seeing a fourth day of gains for Japanese Equities on the reopening. Currencies, hong kong dollar is the focus. You look at pokechecked seeing 775 but speculators are out there. The korean won seeing weakness. And then going lower after the bok cut rates for the record low. Lashed their growth outlook. You look at the weakness in the renminbi, that is not really translated. It is pretty much unchanged for some time. We are watching the euro as well after we saw some fiscal stimulus plan, it should be a big deal for the currency, the euro hitting the strongest level in two months. Watching oil which did extent losses, saw a surprise jump in the u. S. Crude stockpiles with data coming out later today. Haslinda chinas highprofile political meeting concludes today amid heightened tensions with human rights to hong kong. Tom mackenzie is our man on the ground area a historic flashpoint in u. S. China tensions. Since 1992 the u. S. Has carved out a special place, that is now in jeopardy. Pompeo speaking to congress and saying he has found in his department has found there is no longer a high degree of autonomy for hong kong. They looked to impose this the question is how does the . S. Enact that and respond the president says there could be a response as soon as this week. Maybe they will go for a more targeted approach including travel restrictions, visa restrictions and freezing assets of top officials in hong kong and china. And then the chinese response, this is internal, this security law will not impact hong kongs economy or foreign businesses operating and it will only target certain more categories of acts. China reassuring but also we have had china in the past saying they would hit back with countermeasures. Waiting for details from the chinese side on the day the National PeoplesCongress Wraps up in beijing. Yvonne and the weaker how isghts bill china going to react to this legislation . Still awaiting official reaction but they have said this detainment of at least one million muslims including the majority of which s which the u. S. Says is forced to detainment, china says these are educational facilities and they say it is an internal matter. It is on the border region for china and it will always be a red button issue for chinese policymakers. We will await that. The bill has been passed by the house and senate, go to trump and that could lead to sanctions on officials involved in the detention of the muslims in shenzhen. Npc concludes,e what else are we expecting to hear . Tom really focus is on this bill, the security bill that we on ect to have voted around 3 00 p. M. Local time, setting up a mechanism for enforcing that legislation, security legislation in hong kong. We are then expecting the premier to give a briefing around 4 00 local time to see if we get Additional Details on that security law which remains relatively vague and any comments on the u. S. Reaction, this decision to downgrade hong kong in terms of what the u. S. Says is a lack of autonomy. We are hoping to see comments from the premier on these issues local time. 4 00 local time. Haslinda Tom Mackenzie in beijing. Lets get first word headlines. We have the United States is to join an International Organization that advises on artificial intelligence, becoming the last of the g7 nations to sign on. Provides recommendations on ai that respects i will see and Civil Liberties. Privacy and Civil Liberties. Washington said china has twisted values. 5. 5 millionis cases. New york remains the worst hit state with the governor calling for federal funds to alleviate the economic fallout. New york city mayor bill de blasio says this is worst than overall Goldman Sachs is warning investors to sell for a bumpy ride as economy start to emerge. John bolton says there could be volatility as governments pullback and a potential new wave of infections. Lendersrisk will market may mask out miss out. Estate return to remand face flight has stalled out because of bad weather. Nasa pulls the plug on the mission which would have been the first launch of astronauts from u. S. Soil since the shuttle was retired a decade ago. Spacex will try on saturday, oning to end nasas reliance russia to send people to the International Space station. Yvonne will bring you voices we will bring you voices from all sidess of the sides of the hong kong controversy. We will focus on the mainlands economic challenges. This is bloomberg. U. S. Says it will no longer treat hong kong as autonomous for trade purposes, which could have serious implications for the citys future. Always great to have you. The hong kong situation certainly is a focus when you talk about the u. S. And china trade tensions. We seem to know what the worst Case Scenario. What is the best Case Scenario . The best Case Scenario could be there is no sanctions on hong kong individuals and tariffs on hong kong and no visa restrictions. Everything becomes normal from the u. S. A case like that, there will be some impact on hong kong because it means u. S. Does not impose anything on hong kong. But china may react on u. S. Policy. Mayhina reacts, hong kong be also indirectly hit by those retaliations. Yvonne if you compare what we saw during the trade war and in hong kong, the capital situation was not as bad as forecasted. You think this situation and the future of hong kongs finance hub, does that make capital flights more vulnerable . I dont think so. Even not in the best situation. I think it may not be really capital flights issue. Maybe it will be more difficult for u. S. Companies to do business in hong kong. That depends what u. S. Policy is on hong kong. That will be very strange if that is the case because u. S. Want to penalize nonus companies. People in hong kong, not u. S. Companies. I dont think there will be a capital flights. People andt if businesses are doing business in obligethen they have to to the china law which has a measure of security law. It is just putting hong kong the same as china in this angle. I dont think there will be massive capital flight out of hong kong. If hong kong does lose that special status, what does it mean for china . Fewer and fewer chinese exports go by hong kong now, Something Like 10 . But higher than 4 . Yeah, because china signed more bilateral trade agreement with other economies. Fewer goods going through hong kong to the rest of the world from china. This will continue. With tariffs on hong kong, then there will be fewer going through, fewer u. S. Goods going through hong kong. But then hong kong may find on this one. Apart from u. S. , hong kong really exports destination for many European Countries and also from Southeast Asian countries. Haslinda how do you expect the yuan to move Going Forward . The pboc fixed than at the lotus the lowest level do you expect china to guide the yuan lower to help . Is exports going to help exports going to help . Iris i am quite happy that you dont have me on the hong kong dollar because there will be nothing on the hong kong dollar. On the yen [laughter] think firstuan, i of all, the fixing actually if youhe grazing look at the charts with the dollar cny and the fixing and the dollar index together, you will not be surprised on how they are fixed. Lower and higher every day because you will see it is a combination of the previous days clothes and the dollar index overnight. And the dollar index overnight. It is almost a copy of the 2018 and 2019 scenario without the escalating tension between chechen china and u. S. Although not with the trade war pushing the yuan weaker and weaker. We may need to revise our forecast. 7. 15 of theexpect yuan at the end of this quarter. It may be weaker next quarter. Yvonne revising your forecast for dollarchina. Areeems that the pboc trying to support the currency but they are not resisting or aggressively defending it at this point. You think the depreciating will persist even if we hear the u. S. And china say they will commit to that phase one trade deal . Iris i think if anything the phase one trade deal is not the to move the yuan. Not permitting forward, we are looking at a second round covid butally, not in china globally. Also a Technology War factor and another kind of trade tension and the hong kong issue. Risks, three of them are already apart from the trade tensions. I think the ongoing weaker is more likely more than stabilizing. Yvonne your growth forecast for china, you are keeping it at 1. 5 . , perhaps a gain your forecast has more room for upside or downside . Iris i think the fiscal very it actually nd. An open em mean there is no growth for fiscal stimulus. I keep my stimulus forecast at nominal gdp. Of why i have negative one point i percent of growth is 1. 5 of growth is the Global Demand is weak which will affect the manufacturing sectors recovery more than Service Sectors. At the beginning of covid it is the Service Sectors that are struggling for china. Also for the rest of the world. But now because Global Demand is so weak, i think a withdraw of export orders will have negative pressure on the manufacturing sector. That will increase the unemployment of Migrant Workers. These Migrant Workers worked in factories if you need them to change to other factors like even Service Sectors, they have difficulties. Now the Service Sector is only at the very beginning of the recovery stage. Whether they can absorb so many Migrant Workers is also a question mark. That will create something up on domestic demand. It is more a global story on china now. Haslinda if the Global Demand we get chinaaker, introducing measures to further boost domestic consumption, what are the tools available for china now . China, although they have investment,ucture this time they are relying on the new plan which is the future of the economy. Both of them are done by private companies. So they want the private company to follow and push the speed of the private company so that the economy can grow faster in 2020. So this is something that can be done. I believe it can be done. Counteractactually the Global Demand if another issue . We will leave it there. Iris pang, chief china economist. I want to bring you pictures in hong kong. We are seeing a hearing, the hong kong prodemocracy activists that is not him, to speak to media about the recent comments from u. S. Secretary of state mike pompeo saying this is the end of autonomy. This is his Political Group that is speaking out now to the media area we will update you once we get more lines from that group. We will talk more about the u. S. China tensions. Bidys ceo losing for first huaweis ceo losing her first bid to stop extradition. This is bloomberg. Another flashpoint in the mounting u. S. China tensions, the huawei ceo has failed to persuade a canadian goods to stop extradition proceedings to the u. S. It is straining relations between beijing and ottawa. Our reporter is tracking the story. How definitive is this victory for the u. S. . Reporter this was really mungs first chance at having the case thrown out. It is early victory for the u. S. , not surprising. History shows it is difficult to beat tradition from the u. S. To canada. Not entirely surprising but she had shown some real competence before the ruling, standing in front of a vancouver courthouse, displaying the victory sign on saturday. She had been expecting to emerge with happier news. Those hopes have been dashed. Yvonne it seems like this is not over anytime soon. What does it mean for her Going Forward . It says the extradition hearings will continue. They are likely to be rescheduled again but what we are expecting is that the proceedings will continue to the end of the year before his decision a decision is made. In the past we have seen defendants with the Financial Resources and the means to do so as extended these kinds of proceedings for as long as a decade. There is a long battle ahead and other points at which the u. S. Could end, could see the case thrown out. Our bureau chief joining us on the latest. Sevenyear low with the year ending in march. A charge in cost for an indian based carrier in part owned. Plunged 55 with 700 million u. S. They get half of their revenue from abroad including in india where a court party left other wireless carriers owing billions in phase. Softbank is planning deep cuts at a vision fund which could affect 10 of its global staff. They employ 500 people mostly in london and San Francisco and this move could be across all levels of staff. Haslinda our exclusive interview next with new york fed president John Williams coming up. This is bloomberg. Staying connected your way is easier than ever. Youre just a tap away from personalized support on xfinity. Com. Get faster internet speeds with a click. Order xfi pods to your home in a snap. Or change your Xfinity Services with just a touch. All in one place. Youre only seconds away from all of that on xfinity. Com. Faster than a call. Easy as a tap. Now thats simple, easy, awesome. Haslinda the new pictures of the be ok press conference. Told todays decision was unanimous and the be ok will use tools other than rate as well. Cut rates to a record low as they forecast the economy will contract this year for the First Time Since the Asian Financial crisis in the late 1990s. Of 0. 2 from 2. 1 earlier. This is the second rate cut since the virus outbreak. Todayshe bok saying decisions, they will use all tools other than the rate. Live pictures. You can continue to follow developments on bloomberg and we at thisging you live point in time. Subscribers can also continue the terminal and see the diary entries coming up later today and later this week, and some of the events you may have missed earlier. For the first word headlines with Karina Mitchell in new york. Reporter thank you. The u. S. Has approved sanctions against chinese officials for human rights abuses against muslim minorities. The overwhelming vote means the legislation already passed by the senate goes to President Trump. More than one million uighurs and other minorities are being held in internment camps in chinas Western Region for what beijing calls retraining. The European Central bank says the Single Market is deteriorating and heading for a recession as bad as the most pessimistic forecasts. Christine lagarde and colleagues as it could shrink as much 12 , calling a less weak decline out of date as the coronavirus lockdown slashes jobs and causes volatility. Proposing a new stimulus package worth 800 billion u. S. Japan is doubling its stimulus package with the World Biggest virus stimulus package. Prime minister shinzo abe is proposing a plan worth more than 1 trillion to help companies, regionals, and economies. This breaks the record for Government Spending that was set just last month. 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. Mitchell. This is bloomberg. Lets get to Kathleen Hays watching all the developments happening with the fed as well as the bok. Lets start with the bank of korea. We heard from the governors saying they will use tools other than Interest Rates. A sense that perhaps we could hear a little more clarity on what they will do with qe now. Lets hope so. Throughe, we just ran the mean headlines. At 0. 2se, the key rate 5 , exactly where the majority of people interviewed by , it is whatonomists they expected. One person looking for a 50 basis rate cut and a couple people saying they will be unchanged. ,he real conjecture here was will they announce more bond purchases . Meeting an emergency march 16 when they cut the key rate 2. 75. They have been doing all kinds of bond purchases. I think its interesting and does say so far that they will be using tools other than the interest rate. People were figuring that because president moon is getting ready with a third budget, may be they would hold back. Governor has already indicated he would be willing and the bok could buy bonds to smooth markets and reduce volatility. Again, the more the government comes within more generous stimulus budget, the more bonds have to sell and would put the central bank in a position of, by some more bonds and liquidity, help peoples bond yields. To, thisre pointing us is something that is in focus. Of course, of the contraction, 0. 2 yearoveryear for korea compared to other leading countries would not be that much. Again, they were looking for over 2 . They see inflation at 0. 3 yearoveryear and with the latest numbers, just on top of zeros. 0. 1 yearoveryear. I think theres about deflation and a need for more stimulus. We will see. Haslinda also in focus is the fed. Lots of questions whether or not the fed will go the boj way and controlling