tv Bloomberg Markets Asia Bloomberg May 31, 2020 10:00pm-12:00am EDT
sends the first manned mission from american soil since the shuttle retired. tom: you mentioned the crucial story. the ongoing protests in the united states. it was triggered by the death of george floyd in minneapolis at the hands of a white police officer. he is an african-american who died. that -- you are now seeing protests also in new york, los angeles, chicago. we are seeing live pictures of minneapolis where you still seem to have a standoff between protesters who look relatively peacefully and heavily armed police officers. that is in minneapolis. there were questions as to how long this is extended and concerns about the economy is the u.s. tries to reopen. listen to mark zandi from moody's. he says this highlights the depth of despair in america,
racial tensions and poverty. any people have lost their jobs, more than 30 million in the united states. yvonne: you are seeing signs of protesters being arrested. there were reports a truck driver was arrested in neapolis after barreling through some protesters. the situation is still very fluid after a weekend of fire and rage we saw in the country. we are seeing that pressure a little bit in u.s. futures. we have reversed some of the earlier losses. the markets seem to be shrugging this type of risk off. there is a risk of the reopening process in these economies and the u.s. to be disrupted and a risk of a second wave of infections if we see more of these protests. the markets, we are still looking at some really good gains in the asia-pacific. we mentioned the s&p and dow futures punching higher.
following the risk rally we are seeing after two months of solid gains. the dollar on the back foot. we did see the worst monthly drop for the greenback this year. equity markets are licking that. you are seeing that -- are liking that. at it comes to the hang seng as well, we mentioned trump's announcement on friday. did not seem like we got a whole lot of details on how they're going to target beijing and hong kong when it comes to the special trade status. 3% gains on the hang seng, jumping the most in two months. you are watching the renminbi continue to see the strength that 7, 12. that is putting a bid in equities today. we are watching some of the havens as well. given what we are seeing in the u.s., it seems things are pretty stable. u.s. 10 year yield at 66 basis
points. slightly higher by one basis point. volatility has been relatively calm. young, you are seeing a little bit of the haven buying. brent crude, slightly lower. opec-plus may be considering a short extension on the current output curves. tom: interesting to see those u.s. futures turning around despite the protests continuing in the u.s. let's get the latest in terms of what is happening on the ground here cities are bracing for more violence as people protest the death of a black man by a white police officer. joining us for more is su keenan. companies like amazon and target are scaling back operations. how deep does the economic damage go as these protests continue? su: it is difficult to calculate the discipline. amazon have made changes. we enter a sixth night of violence.
over the weekend, standoffs with police in cities from l.a. to new york including washington, peaceful -- began as marches but escalated so violent as night would fall. , taunting of police. rocks and bricks were thrown at them as night fell. separated those who were trying to honor george floyd in protest police brutality piece -- police brutality peacefully and those who wanted to express anger. a dozen major cities have been affected. much smaller cities as well. chicago, losa, angeles, san francisco, seattle. we are hearing london and internationally, these protest taking place in honor of the 46-year-old minnesota man, george floyd, who set off this protest. we are seeing 15 states now activating 5000 national
guardsmen. we -- they have become much more effective in the past 24 hours of controlling the crowds. they are enforcing curfews in all of these major cities. the national guard providing security and the police are now announcing and we definitely saw this in minneapolis tonight they are going to fire off canisters of teargas. they have been using rubber bullets and what are called flash bangs where they throw these explosive light devices into the crowd. what happened in minneapolis in the last couple of hours is that they were morning crowds through social media that they had time to disperse and if they did not disperse, teargas would be used. that teargas is incredibly effective as anyone in hong kong who has experienced protests would know. it has been effective in dispersing crowds. the sheer size of the force. the full police, the state police and the national guard surrounding protesters. giving them the opportunity to
leave or be arrested. you mentioned about amazon earlier. talk about the specific complications these protests pose to a lot of companies, especially those struggling to recover from the shutdown. su: all of this is happening just as the cities are reopening. many of the states had different phases and were about to enter phase two where stories could open and allow people back in. --l.a., protest had been protesters had been setting fire to police cars. it has been escalating to throwing bags of feces at police today. fires were evident throughout the city at night. that is where one company sent out messages to its drivers, if you are delivering in chicago or l.a., stop immediately and return home. that company was amazon.com. they have curtailed operations. deliveryrerouting some
routes out of safety. target, which is another nationwide retailer that heavily relies on brick-and-mortar stores, they have already closed 32 stores in minneapolis. they expect to close more stores nationwide. apple's told some stores shut throughout the weekend and then reopen 130 stores. very interesting about the looting taking place. toe parents are showing up pull their kids out of stores like forever 21 where kids were taking close. that is a much smaller part of the protest, but it shows you the impact on retailers. withe: that was su keenan an update on what is going on. still some tense moments in the streets of minneapolis this evening. we will continue to bring you more updates as we see them. karina mitchell is in new york with an update.
>> president trump is ratcheting up his confrontation with china, vowing to end hong kong's special trade status after beijing approved new security laws. legislators will review the city's links with the u.s. chinese companies listed in new york will come under closer scrutiny. china's latest incursion along with other recent developments that degraded the territory's freedoms makes clear hong kong is no longer sufficiently autonomous to warrant the special treatment we have afforded the territory since the handover. promised replaced the formula of one country, two systems with one country, one system. >> meanwhile, brazil has announced a record number of new virus cases at has overtaken france with the nation -- overtaken the nation with the
fourth highest death. fatalities nearing 29,000. -- divisions are emerging in the ruling coalition. lawmakers approved the plan. two key parties aborted opposition calls for stronger oversight. south korean exports posted another double-digit decline in a sign the pandemic -- outbound shipment fell 24% from a year earlier. that is fractionally better than expectations. korean experts serve as a brown butter of double -- of global trade. the central bank forecasted the first contraction since the asian financial crisis. 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. ahead, spacex's successful manned flight could make space accessible for more
private companies. the founder and ceo will tell us why he left a career in banking to launch rockets. yvonne: that is quite a career change. up next, we will take a look at the pmi numbers out of china and discuss what this means for the rest of the other economies exiting their lockdowns. the global markets chief asia correspondent johanna chua joins us next. this is bloomberg. ♪
than the previous month. the official number was lower than the previous month. manufacturing pmi for south korea and taiwan were lower in april. withe: southeast asia malaysia, philippines and vietnam all notched up improvements in manufacturing pmi compared to the previous month. india's pmi is due in the coming hours. as johanna chua. citigroup global markets chief economist. we just got a slew of asia pmi's. seems like we are seeing a revival in business activity. still very much in a contractionary territory. are you encouraged by these numbers or is recovery still a long road ahead? johanna: not all of the pmi's are creative equally. the ones frome china tends to be a better
predictor of the cycle. some of the other pmi's are quite noisy. the breakdown for the korea pmi has not had a good addictive history in terms of how it predicts activity. -- a good predictive history in terms of how it makes activity. improvement is still challenging because we have to remember the month of may and two q in general was a tough quarter especially for developed markets like europe and the u.s. i am taking a bit of a pause at this time. the manufacturing pmi out of china because even though the headline moderated, i was encouraged to see new orders picked up, inventory went down and we saw a bound in industrial prices. which suggests prices seem to be picking up. the korean number was still a little weak. enthusiastic,oo but directionally, it seems to
suggest of the worst is over for now. the other side of it is perhaps people would say the resumption of business activity in china has reached some sort of plateau. you are seeing supply already outpacing demand recovery. we keep seeing this overproduction that is going to make factories keep cutting prices or will this lead to a global deflationary recovery echo johanna: before, we were actually quite worried production was ramping up ahead of demand given we were worried about the rest of the world and export demand for the rest of the world. it is still a concern, but the latest round of data shows the fact that in the subcomponents of many factoring pmi, industrial prices rebounded. we did see some signs of life. the gap between production and demand seems to have narrowed a little bit in the latest may data for china.
it is still a little bit of a concern, that at the moment, there are some mixed stories. we are seeing oil prices have bottomed. some commodity prices have bottoms. we are going through a phase. a lotrrative right now is of economies throughout the world including the u.s. are starting to gradually unwind the lockdowns. we should see some resumption of activity. our u.s. economist are actually quite optimistic about the markets understating the pace of second have recovery. right now, the narrative is still for improvement. worry about production moving ahead of demand somewhat dissipated in the last china pmi data that came out. we switch our focus to india? i am concerned on a human level when i read about bodies piling up in hospitals in mumbai. on an economic level, you have a country that continues to open up. despite the fact that they have
failed to flatten the curve. how do you square these things and what it says about forecasts for india going into the second half? johanna: certainly this is a big concern. if you look at india, they reported 8380 new cases on sunday. you are absolutely right. because of economic reality from the ground, they are doing to do a phased reopening. worry we have is that rounds of new infections could happen. that is not specifically a worry to india. the other thing we have to point out is the data release came out and gdp in india suggest that in january and march of activity, if you look at the underlying data, it seems to suggest private sector activity is very weak in india. those before the cobit had a four foot -- had a -- the covid had a full-fledged hit. the peak of the lockdown, the
data was already week. the infection rate has not come down yet. india is still obviously a concern. we have to watch that given the weak fiscal position we have had. we are going to continue to see pressure from policy easing both on the monetary and fiscal funds. that will have implications on the ratings. yvonne: we are going to leave it there. thank you so much. the latest on the pmi numbers on the region. take a look at some live pictures out of washington, d.c. where we have seen protests spring up across america. this all started in minneapolis or death of george floyd, who was allegedly killed by a white police officer, is sparking the anger across many big cities in america. you're seeing fires being set in d.c. this evening. there have been curfews put in place. president trump talking about restoring law and order. we have not seen any kind of let
president trump said he would remove special trading privileges the u.s. gives the hong kong. it's crossed to our china correspondent for more. fromhas the reaction been beijing? selina: we got this flurry of coverage. [indiscernible] doomed to fail. there have been some efforts to play down the sweeping effects of the legislation. the bloomberg opinion editor --te the approval [indiscernible] we also heard from officials in hong kong who said hong kong will continue -- [indiscernible] also shrugging off these concerns, chinese media has been highlighting the protests in the
u.s. and police brutality while attacking politicians supporting -- [indiscernible] talked to u.s. politicians for glorifying the hong kong protests as well, failing to continue the arrest at home. toxicues to escalate the relationship between the u.s. and china. the communistid on --s intent [indiscernible] yvonne: and what is trump threatening as retaliation and how meaningful is it? the highly anticipated response to china just a few days ago. u.s. wouldsures the
take that would hit it beijing. --n he said the u.s. [indiscernible] we got no details on how quickly that would happened. the president also promised sanctions against chinese and hong kong officials directly or indirectly involved. but did not identify any individuals. some markets have feared earlier in the week. comments from various analysts included a china analyst at an american enterprise institute -- [indiscernible] aonne: i think he called nonevent. a lot of rhetoric but not a whole lot of substance. our china correspondent with an update on what is going on geopolitically. airbus said they are reassessing
aircraft production plans at the coronavirus undermanned -- undermines men for air travel. a meeting will discuss output rates for the a320 range. production already having been slashed by a third in april. airbus said it would aim for 40 planes a month while determines if the global recovery will be v or l shapes. a company has come to the conclusion some staff will have to leave as the airline adjusts to the pandemic fallout. emirates has not said how many workers will go. the global head count of 105,000 employees could be slashed by as much as 30%. workers have gone on strike in northern france over a series of cost-cutting plans that include job losses. slashrmaker plans to 15,000 positions worldwide.
four to have thousand of those jobs would be in france, amounting to 10% of the workforce. they are set for a stay backed loan of around $5 billion. we are seeing a risk rally very much in tact in the asia-pacific. the dollar coming down. a stronger renminbi. a lot of rhetoric on the trade front from president trump certainly hoping markets today. you're seeing the likes of the hang seng meeting the gains, up 3%. up about 720 points at the moment. the cs x300 close to 2% gains. u.s. futures are still slightly flat. they shrugged off some of the initial loss those given the violence -- initial losses given the violence we have seen in the u.s. a risk rally in place. you are watching the likes of currency as well. dollar.to the aussie the greenback having the worst plea drop this year for 2020.
yvonne: want to bring you up to speed on the pictures you are seeing across america right now. this is in washington dc, where we continue to see many protesters out on the street. things have been set on fire. you see right police as well as national guard soldiers and airmen who are currently activated. are amongd washington the cities where we see about 5000 national guard soldiers. with another 2000 on standby across the country. tensionseeing plenty of here on the streets between protesters and police.
day six.ow let's get the first word news. are playing out across the u.s.. this harkens back to memories of unrest in the late 1960's. president trump has branded the protesters as an active. and is threatening to send in the military. factoryof china's output slipped last month, underwood lining the week response to the recovery. fell to a worse than expected 58.6. the initial rebound is faltering. china abandoned numerical growth
targets as the pandemic and trade war crippled overseas order. india is working toward a faith lifting of lockdown orders. shopping malls, restaurants, and places of worship will reopen next monday. india has the most coronavirus infections in asia despite a lockdown of nearly 100 million people. of former prime minister malaysia is fighting a dismissal from his own party. he was the party leader when the decision was made late last week. he resigned as prime minister in february. he has since been seeking a vote of no-confidence in the person who replaced him. global news, 24 hours a day, on air and on quicktake by bloomberg, powered by more than 2700 journalists and analysts in this is countries. bloomberg.
we are at sessions high right now when it comes to asian equities. we heard a lot of rhetoric from president trump but not a lot of details. we saw these asia pmi's. a decent bounceback. china pmi's as well. the first time since this pandemic broke out. that is encouraging news for investors. overall, you can see when it comes to asia benchmarks like the hang seng, a bit of relief. 710 points higher.
nifty futures looked to be joining the fray here as that gdp number we saw for the first quarter, a lot of revisions. about thatk more with our economists later on. take a look at currencies. you are seeing that with you on. we have an ecd meeting later on this week. news that opec-plus might be considering a short extension of those upper curves. they have pushed ahead that meeting. one fly in the ointment for those official numbers is that there has been increased joblessness. is a policy priority for
officials here. the private sector doing pretty well. maybe some of the policies they are putting in place are working. you, does ther risk on sentiment we are seeing now, is it powered by some of the states and the lack of tension between the u.s. and china? can it be sustained? >> i think it can sustain. i think this risk positivity is something that can last. trump chose not to escalate tensions to severely versus china. overall, this is incredible stimulus. markets are no longer dodging
what is happening in the economy. financial markets have abundant liquidity to trade off. we have passed the most extreme point of the last week or so. we should have a good couple of weeks ahead of us. thene: that brings us to question you have been asking. see more of this reopening, do you think that it can outperform what we have seen in developed markets? >> i think they absolutely cannot the moment. there has been this whole u.s. exception. not been about economic growth.
other countries were growing faster. there is reason to think that theme has exhausted itself. the dollar index reached a record high. that is a bit of a tailwind for em assets. emerging markets are exception of lease cheap -- exceptionally cheap. if you are negative, you're not going to sell emerging markets. you are going to target the u.s.. that is what we are seeing in hong kong. the hang seng is up more than 3% this morning. it was already exceptionally cheap going into the latest tension. u.s. equities are expensive.
and then investors have to counselor with what is happening on the ground. there will be a temptation for some investors to overlook this as another round of tests. thatthers have point out this points to an entrenched problem in the u.s. around racial and polity and the wealth gap. among all of this unemployment we are saying. how do investors square up to that? >> it is a valid perspective. the main way it will be priced into markets is it will slow the recovery of the u.s. from the pandemic. markets are heartless. they can very quickly move on from moral issues around these kinds of things. i do think the longer-term story
is the fact the u.s. will be continue to be dragged down by these issues. recovering from a pandemic they have struggled to deal with. aheadssets in the years will underperform most of the rest of the world. particularly in asia, which handled the crisis well. i think that is the backdrop. tom: coming up, you can follow all of today's trading on our markets blog. there is, treat and analysis
we can do these things cheaply. they can reuse some of the components. >> spacex is a philosophy to design for costs. we have embraced that in our own company. . yvonne: we have heard elon musk talk about these things. martian colonies. how close are we to getting boots on the moon? president is saying 2024 is when he wants to see a
u.s. astronaut on the moon again. is this still a long shot or a real possibility? >> i think the time is a long shot. but i don't think the technology is. i think nasa is getting a whole lot of u.s. companies involved in the missions. they are outsourcing a lot of the risk. they are putting billions of dollars into it. spacex has a good chance to send people to mars in the 20 30's. yvonne: you are a former city trader. you founded this next company. are also seeing the likes of
spacex trying these satellite constellations. >> i don't think they are crowded. space is a big place. a lot of area up there. space is not like the earth where you can just go into space and go anywhere. we see that is a multibillion dollar industry. where's most of the demand coming from for the satellites? >> mainly in the u.s..
we have some european companies that are also putting out big constellations. one was looking at putting out bankruptcy protection. they will survive. the united states is leading it. tom: thank you for updating us on a sector that is developing quickly. we have some live pictures out of washington, where protests continue. these protests are not just happening in washington. they are happening in new york and parts of los angeles and chicago as well. there are curfews in place.
you will get an uptick in violence. this was all sparked by the death of george floyd in minneapolis. there is a curfew in washington dc. but still quite a bit of action. teargas was fired on protesters. many people gathered outside the white house. president trump will be meeting with the attorney general at 10 :30 a.m. on monday. we will see what action will be taken to stem some of the -- violence. the markets at this point are overlooking the political risk. u.s. futures are still punching
the life pictures from washington dc. protesters still out and about on the capital streets. there are police on the others. they are waving some of the banners. we have seen some teargas fired. these protests continue. protests are also happening in chicago and parts of los angeles as well as new york. hearing that the attorney general will be holding a teleconference with governors and law enforcement and national security officials on keeping american community safe. trying toow reposition himself as a law & order president. a lot of questions about what this means for the reopening of states all across america. as we do with his pandemic. now there is a political
situation and the race relations we are seeing in the country. there is a fear that if we see more of these protests gather, will we see a resurgence in america. bring youwe will updated news on what will happen. that switch gears to india now. they will again to reopen their economy in phases. with our more now south asia government editor. tell us what the government strategy is here even before the virus is effectively pete -- peaked. >> india has announced a phase lifting of its lockdown. it will have tight restrictions only and local areas. the government's priority now
seems to be revising the economy. was an economic slowdown before the virus hit. the government must've felt that it had little choice than to enact a lockdown. tom: at the same time we are hearing terrible reports of bodies being left on hospital beds as the over while -- virus overwhelms mumbai. mumbai is india's epicenter of the virus outbreak. we are seeing some disturbing footage of dead bodies. hospitals overflowing. exhausted health care workers. emergency wards are saying they are seeing twice the number of patients that they have before. that means you have situations
singapore has insured investment commitments worth 9 trillion u.s. dollars. what was expected for the entire year. they say the biggest commitment has come from electronics. retail and tourism remain badly hit. france may strain relations with the u.s. by saying twitter would be welcome to relocate. twitter's decision to fact-check tweets said the president will remove certain protections. yvonne: taking a look at these life pictures right now. looks to be another net a
fiery protests. we have seen multiple fires. president trump will be holding a video meeting with governors on the community safety at 11:00 a.m. local time. holding that conference with governors. we have seen protests a rub all around america over the weekend. markets are shrugging it off. they are reversing earlier losses. we see that her pmi data in china. above 50 for the private survey. hong kong is certainly relieved from the lack of what we heard on president trump on friday. what he did not say on how they
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president trump stopped short of sanctions. india emerges from its coronavirus lockdown. it was already slowing before the pandemic hit. we are seeing a way into risk mood in the markets today despite what we saw in the streets of washington dc and many cities across america. that president trump will be meeting with national security officials and governors to land the next action. stem the violence we have seen all weekend. let's take a look at asian markets. seeing session highs that are 1.5% higher. actually in the session highs as well. we start to shove off some of that risk.
you are not seeing a whole lot here. you're seeing this reflected in the hang seng. they are seeing the biggest gain in two months. was a lack of what president trump did not say. he did not mention any details on how they're going to sanction china. ,he relief rally you are seeing it is pointing higher. you are seeing that with some of these proxies. you are seeing a lot of gains here today.
brent crude also reversing the losses we saw. news that opec-plus may be considering a longer extension on these upward curved paths. haslinda: a risk on rally for the start of the month. taking a look. we are looking at you on strength. going forward, the focus will be on whether the pboc will that it depreciate. falling to its lowest since 2008.
we are tracking this. there is a concern about strength. it seems out of line with the economy. the dollar index currently down. the dollar's resilience will be tested this month. oil is currently heading higher. despite losses. prices still on the way below the beginning of the gold futures. they are flat right now. futures pointing to a higher open. in line with the rest of the region.
u.s. futures are in the positive now. after trading in the negative. currently higher by 2/10 of 1%. brushing off the protests we have seen across the u.s.. u.s.al cities in the bracing for more destruction. vibrance -- violence erupted in the wake of george floyd. what are you seeing? six nights of protests. continue on sunday night here in the u.s.. san francisco announced a curfew this morning directly linking it to the looting that we have seen. looting continued in places
like santa monica. have seen conflict continue in places like atlanta. the national guard has been deployed. we are seeing additional police presence in different cities. five -- of fires have been lit outside of the white house. clashes with protesters in lafayette park which is opposite the white house. it is a continuation of what we saw on friday when the whoeapolis police officer was videoed with his knee on the neck of george floyd was arrested and charged with third-degree murder and manslaughter. seen people protesting. a number ofeen peaceful protests continuing.
but some violence has continued. we have seen looting continue. yvonne: we saw over the weekend the president sending a pretty controversial tweet saying looting leads to shooting, which harkens back to a quote by a police chief back in the civil rights movement. that created a lot of outreach on social media. has positionedt himself as the voice of law & order. he did speak on saturday at the launch of the spacex rocket in florida.
he basically labeled what was happening as mob violence. toaddition, on his way florida in air force one, he is she communications that, if needed, they would use the limited power of the government. the president is saying this is terrorist list -- organizations. antifa has no formal structure. he has been active on twitter during the day. retreating tweets from those who theseute this action to groups. tomorrow he will meet with the attorney general.
we are still waiting for a more answer on the federal protests. have been some direct reactions. number of stores in the city. we know that walgreens has close stores. the one near me and san francisco was looted last night. there has been messaging from other businesses. citibank posted an open letter talking about the issues raised
by these protests. the ceo of starbucks posted different conversations. apple chose to close stores. has been heardor by the pandemic. now they think this will help them. joining us from san francisco with the latest of what is happening on the ground. let's get to the first word news. : brazil has announced a number of new virus cases. theas overtaken france as fourth worst hit nation for deaths. nearing 29,000. lawmakers approved a plan for
key coalition parties. india is moving to a phase listed -- lifting of its lockdown. india has the most coronavirus infections in asia, despite a locked out of an estimated 100 million people. the former prime minister of malaysia is fighting a dismissal from his own party. he was the party leader when the decision was made. he resigned as prime minister in february. 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.
by trumpism justified. china has a right to impose legislation. potential u.s. moves may include stripping hong kong of privileged trade status. let's discuss this. we heard from that press conference on friday with the president. plenty of rhetoric but not a whole lot of substance. was his announcement a bit of a nonevent? >> i think after the administration made such a big deal about how they would come out with a statement, it was a bit surprising to see the lack of detail. the fact that he would have to say something because secretary of state pompeo had been clear honghe could not certify kong's economy anymore was obvious. there were terms on the table. the fact that you saw that lack
of detail suggest that there may be ongoing decisions to be made about how effective a plan to implement what they are going to do going forward. yvonne: hong kong special trading status, it is not all or nothing. is the u.s. likely to more andet the policy changes not put them under the same umbrella? or will he be targeted sanctions? we did see remarks to administration earlier in the week saying the u.s. was looking at this approach. the trades not just with hong kong, but the reality there is a the u.s., desire to respond to china's
actions in a way that does not hurt people in hong kong. i hope they will continue to follow through. that does raise some question about moving forward. sanctions against china could hurt the u.s. is that complicating the choices the u.s. has? both are interdependent. >> i think this is why we talk about things being targeted. dotainly you do not want to things in a way that is harmful.
the united states has its own interest. certainly the ministration will be taken that into account. lastthink that in the several months, some of the frustration about the coronavirus outbreak and how that was handled has accelerated. i think there has been a little bit more acceptance in the u.s.. it is a question about how you do that in a way that makes the most sense and does the less harm. exit?da: is there an is there any indication at all that one or the other is looking for an exit? see do think you did not the president say anything about
the phase one trade deal between the u.s. and china. i think that is telling. both the u.s. and china are facing economic challenges coming out of the pandemic. for the an incentive government to present those -- prevent those arrangements from derailing. the domestic sentiment we see on both sides does make it difficult. specific exit plan in mind, i don't know that we have seen the government articulate what that is yet. you mentioned that the development we saw last week in visa.k. to offer extensions is a significant one. whotill have many residents
were born after that and were not read -- eligible for that. sayave heard some countries they will ease immigration policies. do you expect those countries to honor their word? they are also facing retaliation from beijing as well. >> i certainly hope they will. i think the fact that companies are talking about this is a significant step. step thate kind of recognizes that you don't want consequences of what is going on to fall down. on people who have not caused the situation. concern in places like canada and australia about retaliation from beijing. what you have seen in the last couple of months is a greater
willingness to speak out on these issues. you have seen this in light of coronavirus outbreaks. speaking out more vocally. have seen these copies be a little bit more willing to speak up and take a stand despite concerns about retaliation from beijing. we thank you for your insight today. just ahead, how china views electric cars and what that means for tesla rivals. we will talk to the automakers about their long-term potential. this is bloomberg. ♪
another 14% this year. some remain bullish about grabbing the market share. >> covid-19 has greatly impacted our supply chain in china and overseas for the first quarter. especially in february and early march. but our supply chain has been restored since late march. so far, supply chain and manufacturing are back to normal. most off-line businesses in china were closed in february and march. but they have started reopening in april. our sales are back to pre-covid levels. in the long run, the virus impact on the overall industry is quite big. >> do you have any estimates for
this year's deliveries and sales? we will not adjust the sales estimate we made earlier this year because of covid-19. orders seen our continually growth sense april. we think the growth of our orders should be sustainable. we will be delivering our new car. we plan to deliver our new battery packs in the fourth quarter. >> that investment would only last more than a year. what is the long-term plan when it comes to fundraising? we may raise more capital.
but overall, we think our capital is efficient. -- sufficient. set on the earnings call that you could see your new potential in china. what are your plans around that? towson could that happen? -- how soon could that happen. >> we meet the criteria for being listed on china's tech board. we do not have a plan so far. it is possible and we want to do so. reasonablee arrangements based on the changes in markets and the countries -- companies developments. selina: volkswagen announced that it is taking a stake in that partner. how would this ownership impact you?
jac is definitely our long-term strategic partner. we believe the investment will help the development of the industry. volkswagen investing in a battery manufacturing company is very positive news for us. yvonne: let's do a market check on your chinese markets. seeing the likes of chinese markets. shenzhen also saying gains of close to 3%. we got the pmi data over the weekend.
a long list of businesses getting hit by looting, vandalism. we're looking at life pictures out of washington, d.c. >> heated clashes here in new york and hundreds of arrests as towns and cities brace for more protest after a weekend that recalled memories of unrest in the late 1960's. outrage sparked by the death of george floyd erupted. president trump has branded the protesters as anarchists. president trump stepping up his confrontation with china, vowing to end hong kong special trade status. legislatures -- legislator will review links.
the president is also denying access to chinese nationals deemed to be a threat to national security. >> china's latest incursion, along with other recent developments that degraded the territories freedoms next clear that hong kong is no longer sufficiently autonomous to warrant the special treatment we have afforded the territory. its promisedlaced formula with one country, one system. >> united states has successfully sent a manned crew into orbit for the first time since the shuttle was retired nine years ago. it docked with the international space station, carrying two nasa astronauts, marking the first time humans have gone into space aboard a commercially developed rocket. global news, 24 hours a day,
on air and on quicktake by bloomberg, powered by more than 2700 journalists and analysts in more than 120 countries. i am karina mitchell. this is bloomberg. yvonne: let's take a look at the markets. we are still saying a decent day for risk as we look ahead to what has been going on with the trade situation. president trump, when it came to ratcheting up tensions, open the door to de-escalate tensions with china. you have pmi numbers coming across. we saw it bounce back in business activity. -- the hanghere seng is where we see the biggest gains. futures, they are back in eked out somethey gains earlier.
we are coming down to the indian open as well. we are set to follow suit, nifty futures up 1.5% higher. the dollar seeing a bit of a retreat. it will help with some of the currency like age fx. -- asia fx. guest.et to our next she says the dominant issue remains the recovery from the virus lockdown. thank you for joining us. we just came off of two months of solid gains for asian equities. how are you adjusting your allocation now? morning. good it has been such a strong run-up in the market the past few weeks that we are a little more weary
-- wary now. we have seen a number of quality companies reach price levels, either just short of their peak covid levels. because of this, and the fact there is still a bit more risk out there, we are not certain , increasedecovery geopolitical risks at the moment as well. we are taking advantage of focusing on which companies we would be buyers of. it is a bottom-up focus for us. yvonne: you mentioned you have taken profit for tech names like tencent. these are names fund managers have as their biggest investments now. tell us why you are tapping out of those specific stocks. is there still value in the tech sector? lorraine: there is, in short.
they are close to our fair values now. we would still be holders of the stock, we would just wait for a little more discount first to be buyers of it. they are quality companies. people want to keep them in their portfolios. we are supportive of that. names into our best ideas list. it is trading at a larger discount at the moment. for those who may not be familiar, it is the second of camerapplier lenses to mobile handsets. up, itk with 5g coming will benefit from it. because phones are putting in more and more cameras as a key
phone feature, this is what is think itisk, which we will exceed growth. likinga: you are also infrastructure. is this a dividend story? lauren: it is a dividend -- lorraine: it is a dividend story. it came down to a level where it is a 6% yield and we thought it was attractive. the income stream comes from regulated utilities located in the u.k. and australia. we don't see any risk to the dividends. we still expect dividends to grow by low single digits, 2% annually. andre reducing the shares we have that is one of our best
ideas as well. haslinda: when you take a look at the market, what will be the key drivers for the month of june? needine: i think we still -- underlying news, some of the data we saw with the pmi figures, that is key to having sentiment come back. we need to see consumers start to get more confidence as well because we need the consumers to come back and start spending again. that is what will keep unemployment figures lower, for example. we need to see a v-shaped recovery that we still anticipate for the market. the rest of 2020 is pretty much a wash out but we still believe with all the effort being put vaccines, etc., with
a vaccine coming in, which we expect by the middle of next year, it will allow behavior to come back to normal. we think consumer confidence will be the key data set we would be looking at for june. when it comes to valuations, many stock markets in asia are back to the precrisis levels. look at the likes of taiwan, south korea, singapore, some of the southeast asian nations as well. is there still value to be found in some of these markets? a lot of people turning toward a rotation to cyclicals right now. lorraine: there are some beaten-down stocks we definitely like. ones on ourther best ideas list is chinese
education. there is concern with school closures that this company would be impacted. it is a vocational school -- in terms of consumer spending. stories we think are important to picking up quality companies i think should continue to come to the forefront. what are the consumer spending on in china? or the old economy space in china. we still prefer the consumer story. every time there is a down take in some of these names, we look to buy them.
chinese education, we are confident it will grow over the next five years. other names i can think of that are heavily beaten-down of inlity, stocks transportation, for example, or travel. trip.com is one that comes to mind. -- quite a few of these names still beaten-down that we still look at. the macau casino names, too. send the vixt can higher? lorraine: look at what is going on right now with the protests. uncertainty.
over the longer-term, we expect , economies resolved to recover. we would be wary of a deterioration in the u.s. and china relationship. be a longer-term overhang in terms of adjustment -- judgment, particularly in china. china is such a key growth driver for asia. tan, thankorraine you so much for your insight. we are counting down to the opening session in india. futures pointing to a higher open. it will be the fourth day of gains if those gains to persist. forre awaiting the pmi data
haslinda: india's economy grew at a faster pace than economists expected. -- our nextmp is guest sees further downside risk. us. to have you with talk to us about the downside risks. the gdp numbers are much better than anybody's expectations. that are three things underline the risks that lie ahead of us. growth was the weakest since the global financial crisis. , one of thesector
fiscal response from the government to lift india out of this quagmire? india to compare , it explains the limited stimulus. from the r.b.i. side, it is more policy-based. there might be limited action from here onward. r.b.i. still has tools at its disposal, buying government bonds from the secondary market, taking other measures. on the fiscal side, i would like to make a point, especially given the increased concerns about gdp in india. support will have a
.egative impact adequate fiscal response is not given in the next six to nine months, the shutting down of businesses can have an impact and therefore, you will see overalls dissing ability -- overall sustainability. jeopardizing the media strike.medium term economists sayd there are fiscal constraints for india to spend more. what are you expecting in terms of how much room they have to expand the deficit for credit agencies start to worry? >> are since is that -- are
ense, another 2.5% of gdp was a stash expenditure. something the government can afford. given, alongrt is with a commitment to return to if theyonsolidation, can manage to strike the right balance. people are saying the monsoon season could be favorable for farmers this year. lo what extent cannot rura sector support the micros
workers that have been forced -- migrant workers that have been forced to go home? >> it will be one of the most important sectors driving growth over the next 12 months. even in the march ending quarter, agricultural sector was one of the support pillars. forill be an important consumer consumption. rural worker has consolidate -- construction,, these are the places where they have been finding employment. this is an important part of
numbers have jumped from a 24%.nt to 24% -- 8% to sectors are laying off workers and have announced wage cuts. even employees in the government pressures facing because they are not able to pay the salaries on time. that would reflect in the overall gdp growth, which is likely to contract by -4%. yvonne: thank you so much for your insights. take a look at what is coming up this week on leadership life. the carlo co-founder -- carlisle co-founder speaks with harvard president.
the fifth straight period of decline. the outlook for the can see no -- casino dependent economy. singapore has secured investment commitments worth 9 billion u.s. dollars in the first two months of the year, exceeding what was expected for the entire year even as the pandemic hits the economy. the biggest commitments have come from the info communications sector. relations within the u.s. by saying twitter would be welcome to relocate. the president warns he will remove legal protections enjoyed by social media. twitter would be welcome if france if it were to leave
america. yvonne: taking a look at markets before we go. still very much green across the board for most risk assets. take a look at hong kong, the outperform or. -- outperformer. governmentut how the will not impose forex or capital control. there has been some speculation we could see capital outflows. they will not impose control and the government is to maintain the dollar. take a look at the rest of the region. singapore up 2% right now. we start to see the circuit breakers ease as a tomorrow. nikkei, up close to 200 points. asx also seeing some decent gains. we did see president trump -- he
did not talk too much about how they would put more action into china as well as hong kong over the national security legislation. u.s. futures, we are still in the red after we did see -- initially, we were up and now we are back down lower. nasdaq futures, similar measure as well. up later today, -- don't missto that interview shortly after 9:30 a.m. london time. let's take a look at where we are. we are showing you live pictures of the u.s. where we have seen protests happening across the country. these are pictures -- you are looking at the sixth night of mass protest.
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