>> we are expecting a loss of 27.8 begin dollars in the asia-pacific region for the asia-pacific airlines, and for the rest of the world, $1 billion, so the main impact is in the asia-pacific. >> the projections assume the markets linked to china, right? is that conservative now that the outbreak is spreading across the world? all, we have done estimates. reasonably, them taking into account all the data, our experience, but also .he changes that have occurred for instance, the chinese economy is completely different now. mainly asiaact is , thehina because up to now traffic has dropped in china, china domestic, and international routes serving china. spreads, which , weot likely to happen follow what we do every day with the who, it should be limited to that region and the limited for the airlines and activity outside the asia-pacific region. >> when we talk about the sars outbreak 17 years ago, can you make a comparison now with this one, when this is so much more contagious? comparison, but take into account all the factors you are mentioning. it is probably more contagious than sars.

head of asia-pacific. she'll be discussing how twitter is boosting investment in the region. we'll also be talking to lorraine 10 to get her outlook when it comes to asian equities. this is bloomberg. ♪ ♪ >> almost 11:00 in singapore, 8:30 in mumbai. are entering the last hour of the morning session in hong kong. to -- markets look to date out of china. hubei reports a smaller number of new coronavirus cases. a.j. freund the number of jing trims thebei number of fatalities nationwide. >> forecasting a fundamental impact on the country's consumers. paul: an indian unit struggles to survive, in a wider than expected cost as subscribers fell. this is " bloomberg markets: asia." >> it is valentine's day in asia, but not much love in the market. let's get more with our cross asset reporter. >> the first fatality was reported. not surprising. we see the nikkei off by one half of 1%. elsewhere, we are seeing markets moving higher, trading at the highs of the session. the csi 300 coming up to its 50 day moving

a senior editor at the diplomat and an award winning writer on geopolitics in the asia pacific region his upcoming book is called kim jong un and the bomb survival and deterrence in north korea the book due out this summer he joins us tonight from new york it's good to have you on the show and keats the u.s. president we know that he likes to brag about the close personal relationships that he has with other leaders such as north korea's leader now it's the indian prime minister how much would you say there is in. well certainly i think president trump is looking at optics out of the stripes that he hopes will be useful later this year in the elections of the united states making himself appear like a statesman overseas after a after moni as impeachment trial that he successfully survived so certainly i think that's been a big part of the trip to india if we look at the president's twitter page for example he has been sharing video from this trip showing himself being surrounded by adoring masses in india so certainly i think the optics are a very big part of that here and indian prim

a senior editor at the diplomat and award winning writer on geopolitics in the asia pacific region his upcoming book is called kim jong un and the bomb survival and deterrence in north korea the book due out this summer he joins us tonight from new york it's good to have you on the show on keats the u.s. president we know that he likes to brag about the close personal relationships that he has with other leaders such as north korea's leader now it's the indian prime minister how much would you say there is in remote. well certainly i think president trump is looking to get optics out of the straps that he hopes will be useful later this year in the elections of the united states making himself appear like a statesman overseas after a acrimonious impeachment trial that he was successfully survived so certainly i think that's been a big part of the trip to india if we look at the president's twitter page for example he has been sharing video from this trip showing himself being surrounded by adoring masses in india so certainly i think the optics are very big part of that here and indian

a senior editor at the diplomat and an award winning writer on geopolitics in the asia pacific region his upcoming book is called kim jong un and the bomb survival and deterrence in north korea the book due out this summer he joins us tonight from new york it's good to have you on the show on keats the u.s. president we know that he likes to brag about the close personal relationships that he has with other leaders such as north korea's leader now it's the indian prime minister how much would you say there is in. well certainly i think president trump is looking at optics out of the stripes that he hopes will be useful later this year in the elections of the united states making himself appear like a statesman overseas after a acrimonious impeachment trial that he successfully survived so certainly i think that's been a big part of the trip to india if we look at the president's twitter page for example he has been sharing video from this trip showing himself being surrounded by adoring masses in india so certainly i think the optics are a very big part of that here and indian prime m

a senior editor at the diplomat and an award winning writer on geopolitics in the asia pacific region his upcoming book is called kim jong un and the bomb survival and deterrence in north korea the book due out this summer he joins us tonight from new york it's good to have you on the show and keats the u.s. president we know that he likes to brag about the close personal relationships that he has with other leaders such as north korea's leader now it's the indian prime minister how much would you say there is in remote. well certainly i think president trump is looking at optics out of the stripes that he hopes will be useful later this year and the elections in the united states making himself appear like a statesman overseas after a mony as impeachment trial that he successfully survived so certainly i think that's been a big part of the trip to india if we look at the president's twitter page for example he has been sharing video from this trip showing himself being surrounded by adoring masses in india so certainly i think the optics are a very big part of that here and indian pr

he is the joint head of asia-pacific equity research. a pleasure to have you on. let's have this chart up. we are seeing asian equities have never been this cheap. as you compare them to u.s. stocks, u.s. stocks are pushing ever higher. bloomberg --nto my you can see this chart. comes toink when it this rally we are seeing in the chinese mainland market that is not reporting fundamental or economic fundamentals? world of in the immediate news, lots of emotional people, panic and hysteria. people investing in the stock markets see this virus and the downturn in economic bit -- activity is very visible. is lesssee that there people around, it is easier to get a taxi. the aviation business is struggling, trains are struggling, restaurants are struggling. what does that mean for shares of your portfolio? forecasts will have to come down. our earliest forecasts for the quarter have been cut. 10%.t from 12% to we advise that some estimates out there are looking for 15%. the market is expensive. the forecasts we have right now are probably too high. too early to assess w

region. see it is more negatively hitting the asia-pacific region. how long will that continue for, do you think? how long can we expect for that damaged the economy to just be focused in the asia—pacific region? i think if this outbreak can be contained within the first quarter, i wouldn't be too worried about the negative spill—over in the region because we would be quite expecting quite av —shaped rebound in the second half of the year, but if this doesn't get contained within the next month or so, i would start to be quite worried and i think some of these worrying forecasts you have mentioned just now could materialise. but i think general consensus in the market now is it will be contained by the end of the quarter. janet, what you think of the 620 quarter. janet, what you think of the g20 finance ministers and central bankers, as they meet this weekend in saudi arabia, what you think they can or should do to reassure global markets? yes, i think right now, the policymakers, the central bankers, they are just warning about the uncertainty

pacific markets then impacts on airlines from other regions would be larger the likes of point to have suspended flights to china as has air force k l m which ones losses from the virus up until april could be as high as 200000000 euros and the impact isn't just being felt in the air it's a problem on the ground with so many border disruptions hundreds of trucks wait patiently to enter china in the northern vietnamese province of long saum. far as you see here who just reopened one of the main border crossings. the green light for hundreds of tons of goods that was stuck here for weeks. the outbreak has affected us badly since the lunar new year most drivers have stayed at home. some of the trucks have been held up here for more than a month so the goods have gone bad spoiled overall it's hit us hard. close the checks on the trucks and drivers by customs are aimed at preventing the covert 19 virus from spreading any further the trucks are also sprayed with disinfectant and even though beijing says the rate of infection is going down in china the world health organization hasn't given a

pacific could lose $27800000000.00 because of the outbreak has hit most the chinese airlines globally that figure could rise to almost $30000000000.00 and counting the association points out if it spreads more widely to asia pacific markets then impacts on airlines from other regions would be larger the likes of point to have suspended flights to china as has airforce kaylin which warns losses from the virus up until april could be as high as 200000000 euros and the impact isn't just being felt in the air it's a problem on the ground with so many border disruptions hundreds of trucks wait patiently to enter china in the northern vietnamese province of long saum your sorrows here who just reopened one of the main border crossings. the green light for hundreds of tons of goods that was stuck here for weeks. the outbreak has affected us badly since the lunar new year most drivers have stayed at home. some of the trucks have been held up here for more than a month so the goods have gone bad spoiled overall it's hit us hard. close the checks on the trucks and drivers by customs are aimed a

pacific region could lose some $27800000000.00 because of the outbreak those hit hardest are chinese carriers but if we broaden out and look at airlines globally that figure rises to know he 30000000000 dollars and that's not all yacht to us as it's figures only apply if the center of the outbreak stays in china you have to says the virus on thursday if it spreads more widely to asia pacific markets that impact on airlines from other regions would be larger the likes of quantas have suspended flights to china as has air france scale ambush warns losses from the virus up until april could be as high as 200000000 euros and the impact isn't just being felt by those who get in and out of china by air those who rely on land crossings into the country are also facing disruption. hundreds of trucks wait patiently to enter china in the northern vietnamese province of lang's on your thora here have just reopened one of the main border crossings the green light for hundreds of tons of goods that were stuck here for weeks. the outbreak has affected as badly since the lunar new year most drivers

pacific markets then impacts on airlines from other regions would be larger the likes of point to have suspended flights to china as has air force k. lamb which warns losses from the virus up until april could be as high as 200000000 euros and the impact isn't just being felt in the air it's a problem on the ground with so many border disruptions hundreds of trucks wait patiently to enter china in the northern vietnamese province of long saum fuel storage easier to just reopen one of the main border crossings. the green light for hundreds of tons of goods that was stuck here for weeks. the outbreak has affected us badly since the lunar new year most drivers have stayed at home. some of the trucks have been held up here for more than a month so the goods have gone bad or spoiled overall it's hit us hard. close the checks on the trucks and drivers by customs are aimed at preventing the covert 19 virus from spreading any further the trucks are also sprayed with disinfectant and even though beijing says the rate of infection is going down in china the world health organization hasn't given

asia—pacific rose on wednesday following another positive lead from wall street. not reflected in the dow. investor sentiment mixed about the immediate and long—term impact of the coronavirus outbreak. the largely positive morning following fresh record closes by the s&p 500 and the nasdaq in new york on tuesday. we can't show you that at the moment, though. traders reacted positively to cautious comments from the us federal reserve chairman jerome powell on the coronavirus. up next, news briefing. stay with us. one of the new competitions being introduced at the olympic games in tokyo this summer is sport climbing. the first member of team gb‘s climbing squad is shauna coxsey from cheshire, who has already won five british titles, along with other medals in the world championships. sports correspondent katie gornall reports. reaching for the top. it's set to be one of the most explosive sports at this summer's olympics, and right now british hopes are in the fingertips of shauna coxsey. fees the country's most successful competitive climate and today she beca

a senior editor at the diplomat and a board winning writer on geopolitics in the asia pacific region his upcoming book is called kim jong un and the bomb survival and deterrence in north korea the book due out this summer he joins us tonight from new york it's good to have you on the show and keats the u.s. president we know that he likes to brag about the close personal relationships that he has with other leaders such as north korea's leader now it's the indian prime minister how much would you say there is in remote. well certainly i think president trump is looking at optics out of the stripes that he hopes will be useful later this year and the elections of the united states making himself appear like a statesman overseas after a acrimonious impeachment trial that he successfully survived so certainly i think that's been a big part of the trip to india if we look at the president's twitter page for example he has been sharing video from this trip showing himself being surrounded by adoring masses in india so certainly i think the optics are a very big part of that here and india

the asia-pacific region has seen a brakes. the asia-pacific region has seen a boom in air travel and first—time flyers, but the small pool of commercial pilots is not meeting demand. in fact boeing said globally airlines will need more than 800,000 new pilots in less than 20 years. roughly one third of those jobs will be in asia. aircraft like the airbus a321 on autopilot, normally the trip is smooth, but pilots will have to deal with the unexpected. that's why they spend hours ina unexpected. that's why they spend hours in a simulator like this one, to build up confidence and steer themselves out of trouble. on this test run i'm seeing how sharp my skills are at flying through a rainstorm in manila. majorairline manufacturers require 200 hours of flight manufacturers require 200 hours of flight time, but many want to change the rules. one instructor says the industry is moving towards a different type of license that only demands 70 hours of flight training to become a co—pilot. demands 70 hours of flight training to bec

pacific for we can express the u.s. navy and the indian navy collaborating more in the end of the suffolk legion in the next few years. and a senior editor at the diplomat joining us tonight with valuable insights on he we appreciate your time tonight thank you. the former u.s. 1st lady hillary clinton is here in berlin for a screening of the new documentary about her life and you won't be surprised to hear that much of that film centers on events leading up to the year 2016 exactly 4 years ago clinton was battling bernie sanders to win the democratic nomination to run for the office of u.s. president sanders lost that race but this year sanders is the front runner among the democrats were today for the 1st time and without mentioning his name hillary clinton said that she is prepared to support bernie sanders if that is who the democrats choose to run against donald trump i'm going to wait and see who we nominate i will support the nominee and it won't surprise you to hear me say that i think that it's imperative that

a lot of exposure to the asia pacific region cac is down. some weakness in the manufacturing pmi numbers this morning. and dax in germany just below the flat line. spain is the only index inching back to the green. putting it all into perspective, worth mentioning that eurozone stoxx 600 is still coming off record levels. it has been negative today, was negative yesterday we are still coming off record high levels. perhaps investors are taking a bit of a breather. >> here in the u.s. as well, that little risk off feel all around the globe today thank you for the jupdate have a nice weekend. we'll look at more information with rahel solomon >> global air travel set to decline for the first time since 2009 the virus's impact will cost airlines globally more than $29 billion. mostly in the asia pacific region estimating the airlines will lose $12.8 billion the trade group that represents most of the airlines had forecast growth in 2020. now revised to a contraction close to 6%. people tell bloomberg that back in november, it was suggested that

we are very focused on the asia-pacific over the next couple of decades. haslinda: thank you, john. commercial aviation president and ceo. we have some breaking news. paul: that's right, some comments from china's ministry of commerce, saying china seeks to minimize the virus's impact on foreign investment and the country will help foreign companies when it comes to resuming production. those comments from china's ministry of commerce. still to come, china is already hurting banks bracing for the worst case scenario. we will take a look at the impact of the coronavirus having, next. this is bloomberg. ♪ ♪ indian markets have just opened, let's get to mumbai. take us through what to expect from today's session. how are things looking? start, and negative note for this week, but last week was good for indian markets, they rebounded to nearly 4% viewed in the red, you're looking at frontline indices, and also for the broader markets, the nifty 500 opened in the red. toot of stocks are reacting the earnings markets from friday and over the weekend. a lot of stocks reacting to earnin

across the asia-pacific region, we are seeing markets trend higher. inking on further gains addition to what we had seen last week. now erasing the post lunar new year losses. the one that stands out as the nikkei 225. japanese equities taking a hit after the big mess on third-quarter gdp. that is off the lows as we saw earlier. we had seen the index fall as much as one and a half percent. i do want to look out the ms geoeye all country world index. u.s. markets will be called -- will be closed for the presidents' day holiday. a check acrossou the ms ci pacific index. we have seen the communication services index and the energy sector leading gains. these are your best emperor -- best and worst performing sectors for the year. industrials and health care both lacking within the ms ci asia-pacific index. paul: thanks very much for joining us in australia. the asx a little bit weaker. we are in the middle of earnings season. we are going to be hearing from bhp. on the, let's check in first word news. su: please start with a number china,na virus cases i

and customers who fly to and from and within the asia-pacific region. there's no question. the good news is, oil prices will probably be lower. but there's definitely going to be challenges for some of our customers. >> in terms of sales for boeing from china, you have not seen that in at least two years. do you expect this virus to infect sentiment and to impact sales even more? >> we were on the heels of the the stage one trade agreement. so we are engaged with our customers there. they're going to be challenged for the next several months with the virus. ultimately, china's big market, 7700 airplanes, underserved today. long-term, that demand will come back. for 16% ofuates global travel. since coronavirus has happened, 25% of the schedule has been brought down. however, what is going on on the ground is more extreme. 50% of the operating flights have been canceled. that percentage may grow. so, look, a lot of folks are not traveling. not only china but southeast asia. we are hoping we get through this in the next few weeks and get people on the road again. >> is it real

revenues cut by £22.6 billion which is a huge amount of money, and they are anticipating demand in the asia—pacific region alone will be down 13%. very significant fall in demand that is going to register nine for air travel as a whole, meaning it falls for the first time in ten years or so, so that is a big impact we had already seeing. car sales in china have fallen off a cliff, down 92% in the first few weeks in zebedee, which affects manufacturers like jaguar land rover because china is one of its biggest markets —— in february. china is full of factories that produce goods that are put on container ships and shipped to the uk and other parts of the world and this take several weeks. we are seeing factories in china have been shut for longer than expected so shipping companies are cancelling ceilings which means that people who rely on a steady supply of products from china, car companies, electronics manufacturers, high street retailers, at all likely to see a shortage of products, so that could mean fewer goods in the shops that come from china and it means companies like jaguar land rove

— pacific you got this international trade body saying asia—pacific carries in particular will bear the brunt of the impact of the coronavirus, saying they will see 13% falls into man. they're talking about something close to a $30 billion revenue loss for 2020. it's not surprising. look at the announcement in pacific saying how much they reduce capacity. that will mean loss of revenue. if this is inevitable, i suppose my next question will be is there anything iata can do about this? it was interesting, someone sent an e—mail listing what they we re sent an e—mail listing what they were doing to try and reassure passengers, talking about things like filters in the cabin, that they we re like filters in the cabin, that they were in first class because they didn't want to risk contamination. they were giving people things and bags, having an ongoing trolley service throughout the flight. everyone is trying to catch up and figure out how to adapt, so you just talked about what the airlines are doing, starbucks for example is moving to contactless delivery and payments to try and keep

for the asia-pacific, looking flat. upres look flat to positive, by 0.1 to 0.2 percent. we have coverage around the world with a focus on what is going on in asia. joining us is juliette saly in the singapore and nejra shah in mumbai. effect looking at the working from home is having on fx and bond markets. juliette: many have been working from home. you have seen a collapse in volume in index and chinese bond trades. when you look at daily large transactions, they are down about have some the reopened on february 3 compared to a year ago. with volumes so low, you see 10 year sovereign debt having its best week in five years because some of those low trading levels are exaggerating the moves. this figure is less than a quarter of what was issued in the weeks prior to the holiday, and not quite 60% of the two weeks following last year's chinese new year break. the fact that so many traders are at home is having a big impact on fx and bond trading. after a supreme court ruling, take us through this story. the case is against the company. [indiscernible] the supreme court h

asia-pacific index down by over 1%, erasing the post holiday bump. we are seeing lots of action in the fx market. all thetime i checked, asian currencies are in the red, except for the japanese yen. it is flat on the day. clearly, investors are pulling out of western currencies. the thai baht down to its lowest level since 2018. those are not healthy years in the financial market. a very clear pullback from these asian currencies, from the risk on sentiment. >> we are seeing the impact spreading through when it comes to europe given what is happening with italy. we are getting a look at the nasdaq 100 index, 2% on the growing virus fears. what about the other side of the market? >> the japanese yen is fantastic. it is not just the traditional haven bid. why are you investing in a currency in the first place? because you have faith in that economy. japan did come out with some economic data showing the largest contraction since 2014. some hesitation of why you are seeing so -- the yen flat on the day. is this your traditional bid for the yen or is thi

what you're looking at is analyst profit forecasts for the asia-pacific region. we have seen profit forecasts come down. the white line is energy. that is where we have seen the largest hit. we have seen health care forecasts move to the upside. you might have expected that would be a sector to benefit from this. we wereinto the year expecting to see a recount -- rebound. now that has turned to negative territory. quite the change from just two weeks ago. haslinda: sarah ponczek in new york, good stuff. from japan, we have to japanese prime minister's of abe speaking in tokyo seen the government has put together a policy on coronavirus measures. he also said it is vital to limit the spread of the virus within japan. the boj earlier from saying they are prepared to move in. but you are wondering how much room they have. australia listed oil search has reported an 8% fall and annual profits due largely to weaker energy prices. joining me is the company's managing director, keiran wulff. thank you for joining us. and congratulations, new managing director, but comin

we do see markets across the asia-pacific region trying to claw their way back into the green. you see the shanghai composite down by less than 0.2% after seven straight days of gains, the longest winning streak since 2018. the hang seng down less than 0.1%. the msci asia-pacific index clinging onto gains. where we see the most pressure is in s&p futures. down roughly 0.3%. that after the benchmark did close at a record high. i want to give you a look at the sector view. beingest performer technology and real estate. tech up 0.3% now. calling to the downside, health care and finance. year-to-date, health care is one of the best performing sectors. back to you. paul: thanks. sarah ponczek there. let's check in on the first word news now with su keenan. su: we start with the latest on oil. thechiefs privately warning trump administration that they will struggle to produce the oil and gas that china has committed to buy. beijing would order about $52 billion of energy, the equivalent of an extra one million barrels of oil. the american petroleum institute says that would place a s

bloomberg spoke with the director general for the asia-pacific airlines. >> i was in hong kong at the time. if we look back at that experience, the duration was three to six months. decline. a sharp it was hard to imagine it bottoming out. at hindsight, we can see the recovery was equally as dramatic. within six months, the traffic was back to precrisis levels. whether this one will play the same way as unknown, but it is a reminder we need to be prepared. this industry is very resilient. just as we can cut capacity and adjust, we can to play capacity back into the marketplace. depends on the disease and outbreak, and it depends on public sentiment. rapidly, fear spreads confidence is restored by a similar social mechanism. we saw at that time a very quick recovery and full recovery. need to be prepared for that. we do not know. we will take guidance from the medical professionals who are monitoring closely not just daily developments, but modeling the likely trajectory. it depends on the success of the medical efforts to contain the outbreak. >> a lot of the conversation has been cen

pacific region as we can see here are losing out to the tune of $27800000000.00 that's because of the outbreak those most hits are chinese firms as you might expect but if we do just broaden out the picture and look at airlines globally we see that figure rises to $29300000000.00 almost $30000000000.00 and that's not all i also says it's figures only apply if the center of the outbreak stays in china i also said on thursday speaking about the virus if it does spread more widely to asia specific markets then impacts on airlines from other regions would be largest still so for the likes of quantas suspending flights to china as have air france k l m which ones losses from the virus up until a full could be as high as 200000000 euros and the impact isn't just being felt by those who get in and out of china by air those who rely on land crossings into the country are also facing disruption. hundreds of trucks wait patiently to enter china in the northern vietnamese province of lungs rome before it easier to just reopen one of the main border crossings. the green light for hundreds of tons

across the view asia-pacific msci. asia-pacific index, down 1% at the moment. leading the declines as the technology sector, now down more than 2%, the worst by far. the next worst is health care, down half of 1% -- down 1% or so. every single sector is in the red. real estate is roughly flat on the day, but still modestly lower. thank you so much for the update. let's stay on the widening impact of the coronavirus. world health organization says it's too early to tell if cases are truly declining. there is a report that nearly 1900 new cases this morning will bring the total to more than 72,000. let's get to our team on the ground. yvonne man is in hong kong. tom mackenzie, let's start with you. what do the numbers tell us? the overall number we got out of china now it's almost 72,500. . crucially, the numbers out of hubei province, the epicenter for the virus, they rose about 1800 additional inspections over hours.t 24 that rate of increase is actually the slowest we have seen since the methodology for counting these viral outbreaks was changed last week. tha

pacific region as we can see here are losing out to the tune of $27800000000.00 that's because of the outbreak those most hits are chinese firms as you might expect but if we do just broaden out the picture and look at airlines globally we see that figure rises to $29300000000.00 almost $30000000000.00 and that's not all i ought to says it's figures only apply if the center of the outbreak stays in china i also said on thursday speaking about the virus if it does spread more widely to asia specific markets then impacts on airlines from other regions would be largest still so for the likes of quantas suspending flights to china as have air france k l m which ones losses from the virus up until a full could be as high as 200000000 euros and the impact isn't just being felt by those who get in and out of china by air those who rely on land crossings into the country are also facing disruption hundreds of trucks wait patiently to enter china in the northern vietnamese province of lungs on your far as you see here who just reopened one of the main border crossings. the green light for hund

the asia—pacific region has seen a boom in air travel and first—time flyers, but the small pool of qualified commercial pilots is not meeting demand. in fact, boeing said globally airlines will need more than 800,000 new pilots in less than 20 years. roughly one third of those jobs will be in asia. aircraft like airbus's a321 run on autopilot. and normally the trip is fairly smooth, but pilots will have to deal with the unexpected. that's why they spend hours in a simulator like this one, to build up confidence to steer themselves out of trouble. on this test run, i'm seeing how sharp my skills are at flying through a rainstorm in manila. major airline manufacturers require 200 hours of flight time, but some airlines want to change the rules. 0ne aviation instructor says the industry is moving towards a different type of licence that only demands 70 hours of flight training to become a co—pilot. the technology now is really driving up. we are now going to a level where flying is digital. but, as the boeing 737 max fatal crashes demonstrated, pilots only have a split second to make a lifeâ€

there are estimates within the asia—pacific region, this is going to cost billions in tourist receipts because the chinese are huge international travellers. it's an emerging market in countries like thailand which of relied on china are seeing severe cutbacks in accommodation. even companies like easyjet are down. they were impacted by the incident in the canary islands but there is a concern about how long this is going to continue on over the last 12 months, airline stock prices we re months, airline stock prices were performing quite well. we've gone back to where we we re we've gone back to where we were about two years ago. but the industry is extremely resilient. we'll be talking about and standing airline performances. the airline share prices will benefit from bargain hunters who think was the storm of this virus has been weathered, people will start travelling again. for the airlines, it's a double hit. notjust airlines, it's a double hit. not just not flying airlines, it's a double hit. notjust not flying to china but load factors are falling quite significantly when that ha

will that carry through to asia-pacific? david joins us in hong kong. what are you looking forward to today? david: it looks like the momentum will carry through. the equity markets, futures are pointing up. . note of caution -- ahead of jay powell's testimony in front of congress, you are looking at a possible inversion of the three and 10 year yield curve. an -- back of the other thing i want to point out before i go is the last 10 ,ays or so, 10 trading days markets have been trying to --ure out how much the actually is that's about to come through. wille next 90 minutes, we get the first tangible measure of what that weakness might look like when south korea reports exports. china is their biggest customer and was virtually shut. that will give markets a benchmark whether we have overshot the target or not. taylor: thank you to bloomberg's david ingles. great chart on the terminal. the impact of the coronavirus on the global supply chain is prompting some companies to accept changing demands and reconfigure production lines. for more on how companie

pacific air frayed and semiconductor billings indexes when you see a drop-off in that asia pacific air frayed number, at some point you tend to be semis fall off as well when you're talking about supply chain halts and the like, you're talking about something like the impact and ripple effects, but also the chips are the building blocks for autos, industrials and all these different industries as well it's something to keep an eye on, especially since they've been a leading part of the market up to now. >> and getting hit the hardest now. morgan, thanks. >> morgan, good to see you the dow off the lows, down just 780 points it was down more than 9 had you been at one point. >>> the democrats now blasting the administration about the response to the growing coronavirus crisis sue herera has a news alert. >> indeed i do chuck schumer has been very vocal on the hill today and very critical of the trump administration's asking for funding. he basically says they have been incompetent and the money they are asking for is too little too late >> decisions were made based on politics and optics

point asia llc, a consultancy that provides expertise on the indo pacific region with a focus on chinese foreign policy and security issues. she also holds a position of abject senior policy analyst at rand, formally she served as director of the navy asia-pacific advisory group at the pentagon. and was a senior project director for chinese military and security, she has written extensively on chinese foreign policy security and military affairs. she will address how bri furthers their expeditionary capabilities as well. thank you for your testimony, we will begin. good morning commissioners, thanks for inviting me here. i think it would probably be most valuable if i cut to the chase here. i think what you are concerned about is whether china, which can assert the full range of power projection affects on its maritime frontiers, south china sea, east china sea, yellow sea. whether it can or will expand that capability elsewhere in the world and be able to bring the military dimension of coercive diplomacy to join economic and diplomatic activities, which is currently conducts. i think i

a quick look now at the markets, starting with the asia—pacific market and the japanese market has some profit—taking due to major gains during the week it is now down by o.2%. gains during the week it is now down by 0.2%. the all ordinaries is up by 0.4% in the hong kong marketjust open for trading and is lower by 0.5 sent despite wall street stock finishing at fresh record highs overnight shrugging off worries about the coronavirus outbreak and applauding china's move to cut ta riffs applauding china's move to cut tariffs on us goods. the dow was up by o.3%. tariffs on us goods. the dow was up by 0.3%. the sap tariffs on us goods. the dow was up by 0.3%. the s&p 500 gained 0.3%. the biggest winner overnight was the nasdaq, in positive territory by 0.7%. thank you for investing time with us. spot today is coming up next. —— sport today is coming up next. —— sport today is coming up next. this is bbc news. the top stories this hour. li wenliang, the doctor who first reported coronavirus has died from the disease. donald trump confirms us forces have killed qassim al—rimi, th

unsurprisingly airlines in the asia—pacific area that are suffering the most in demand there is expected to be down around 13% this year. demand is falling around double world and that is because people aren't thinking, hold on, i am not sure it is safe to travel right now. back to get worse at the virus spread and the expectations are demand this year could fall for the first time since the financial crisis which puts it into some context crisis which puts it into some co ntext a nd crisis which puts it into some context and say around cars as well, thatis context and say around cars as well, that is a sector that has been hard—hit. car sales, we had dated today showing they went down 92% and that was in the first half of february. it shows quite significant impactand february. it shows quite significant impact and that impacts british manufacturers because china is the world's largest car market. and not planning on travelling or not going to update my car this year, what other sectors will it matter? china is known as a workshop of the world which means that ordinarily you have fact

markets across the asia-pacific were down across the board. seoul was down 1.3%. shanghai fell 0.8%. this is news li"newsline" biz, ramin mellegard the new coronavirus outbreak has not put a damper on a fason event a goverent request is that larg gatheris be cceled or sced down. the girls collection takes part in chaibuya. out 90odels areo take pa. they'll th'll livetream thevent. searseries of eves have faen victimo the virus e univeity pdicts economi growth to shrink if the situation continues for three months. if the impact lasts for one year growth could contract by up to six tenths of a point. eventually the economy may stall, but he stopped short of predicting a recession as long as consumption remains unchanged. many companies are having staff work from hope. shiseido has had about one third of its staff work from home. the measure excludes front line sales staff and factory workers. those who need to attend the ost a office are asked to avoid peak times. it was confirmed at denttsu that a staff member had the virus. they also ordered all headquarter staff

sarah: it is a mixed picture across asia pacific, the bank of new zealand held the cash rate steady at 1% as expected, but we saw highs of the session after the benchmark hit a fresh record high, still up by .5 percentage, and at the same time the japanese nikkei is higher by .5% above its 50 day moving average, being helped by very strong gains in softbank. the one moving to the downside is the csi 500 for china mainland stocks, but you have to put it in perspective. remember, this comes after a 7% gain we have seen over the past week or so, after the initial lunar new year holiday losses. to the upside, we are seeing the hong kong hong sang above .4% read let's look at the board for big winners and losers across the asia-pacific region. one of them is softbank, up nearly 13%, the best day in a year for the company, after approval of the company's sale of sprint to t-mobile. on the downside, i-8 a group -- aida group, a construction company missing the lowest estimate, down more than 10% at the moment, the worst day for the company since 2017. i want to take a look at u.s. fromes as w

we count the entire pacific ocean, much of asia to the indo/pakistani border. can we start with the philippines? i love to ask your overall sense of that relationship, the most important things the army is doing, and then where some of your plans are headed with the philippines going forward? >> very strong historic relationship, obviously dating back to the '40s. so i'm actually traveling there at the end of the month and we'll -- we're looking very -- we have about five different locations that we're in partnership with the enhanced defense cooperation act, building out those locations so we can do advise-and-assist work together. we had a striker brigade go through there back in the spring and train together. we are looking at some other additional investments in the philippines. our middle-to-middle relationships are strong and something we work hard in. >> would you describe the relationship as it has been, i think primarily -- of course, it was the early '90s when we left the big military bases and they closed down and we changed the nature of the relatio

and customers who fly to and from and within the asia-pacific region. there's no question. the good news is, oil prices will probably be lower. but there's definitely going to be challenges for some of our customers. going fromcells for china, you have not seen that in at least two years. -- the sales. do you expect this virus to infect sentiment and to impact sales even more? >> we were on the heels of the trade 1 -- the phase one trade agreement. so we are engaged with our customers there. they're going to be challenged for the next several months with the virus. market,ly china's big 77 hundred airplanes, underserved today. long-term that demand will come back. >> china equates to an accounts -- chinaeep purse accounts for six teen percent of global travel. since coronavirus has happened, 25% of the schedule has been brought down. however what is going on on the ground is more extreme. 50% of the operating flights have been canceled. that percentage may grow. so, look, a lot of folks are some plea not traveling. not only china but southeast asia. we are hoping we get thr

and customers who fly to and from and within the asia-pacific region. there's no question. the good news is, oil prices will probably be lower. but there's definitely going to be challenges for some of our customers. >> and the sales for going from china, you have not seen that in at least two years. do you expect this virus to infect sentiment and to impact sales even more? >> we were on the heels of the trade 1 -- the phase one trade agreement. so we are engaged with our customers there. they're going to be challenged for the next several months with the virus. ultimately china's big market, 77 hundred airplanes, underserved today. long-term that demand will come back. >> china equates to an accounts for six deep purse -- china accounts for six teen percent of global travel. since coronavirus has happened, 25% of the schedule has been brought down. however what is going on on the ground is more extreme. 50% of the operating flights have been canceled. that percentage may grow. so, look, a lot of folks are some plea not traveling. not only china but southeast asia. we are

and count the entire pacific ocean, much of asia, all the way over to the indio pakistan border. can we start with the philippines? and i love to ask your overall sense of that relationship, most important things the army is doing, and where some of your plans are headed with the philippines going forward. >> very strong historic relationship, obviously, dating back to the '40s. so i'm actually traveling there at the end of the month. and we are looking very -- we have about five different locations that we are in partnership with enhanced cooperation act building out those locations so we can do advise and assist work together. we had a striker brigade go through there back in the spring and trained together. we are looking at some additional investments in the philippines. our building relationships are very sto very strong and something we work hard at. >> would you describe that relationship, it was early '90s we left the bases and they closed down and changed the relationship with the philippines. then after 9/11 we started doing other things. is that still the main focus of

yes, but as you radiate further out away from the core of where the virus is happening in the asia-pacific rim and china, you will expect the consumer to be robust. at the end of the day, consumer is governed by household budgets, employment rates, saving rates, and in all of those cases, the consumer remains in reasonable health. i think markets will look through any near-term weakness in the consumer. yes, it is a risk, but does it affect the longer-term outlook today? not yet. francine: it certainly does for the travel industry, and if you are an airline, you are concerned about this. is leisure travel being impacted as much as business travel? siddharth: it is hard to say at the moment, but what was forecast initially at the end of the year was 4.1% in passenger t demand. 4.7%, 4.7w cut to percentage point decrease in the forecast for demand, so essentially that is a global demand forecast, so it should affect a lot of carriers, and essentially it remains to be seen what the impact will be on profitability. francine: great. thank you both for joining us. john bilton from j.p. morgan as

and customers who fly to and from and within the asia-pacific region. there's no question. the good news is, oil prices will probably be lower. but there's definitely going to be challenges for some of our customers. >> and the sales for going from china, you have not seen that in at least two years. do you expect this virus to infect sentiment and to impact sales even more? >> we were on the heels of the phase one trade agreement. so we are engaged with our customers there. they're going to be challenged for the next several months with the virus. ultimately china's big market, 77 hundred airplanes, underserved today. long-term that demand will come back. >> china equates to an accounts travel.of global since coronavirus has happened, 25% of the schedule has been brought down. however what is going on on the ground is more extreme. 50% of the operating flights have been canceled. that percentage may grow. so, look, a lot of folks are simply not traveling. not only china but southeast asia. we are hoping we get through this in the next few weeks and get people on the road a

it says passenger numbers are expected to fall 8.2% in the asia-pacific region, compared to last year. that would translate into a ref new loss of $28 billion for carriers in the region. almost half of that would come from chinese airlines. the association projects that the told tal loss for global revenue this year doing more than 29 could be more than $29 billion. the japanese government says it will hold talks with south korea next month to discuss trade. the two sides w will meet for negotiations on march h 10th in seoul. ththey previously met inin dece fofor the first time in n three a half years. the offificials are expected to discuss japan's tighter export screening on some high-tech materials as well as south korea's trade controls. they want to consult with seoul about progress and related legislation. >>> a major real estate firm in thailand is looking to use self-driving vehicles as a new type of amenity for its buildings. they kicked off a test of the technology in bangkok. the trial is taking place in a residential neighborhood of the city in collaboration with the thai

sarah: we have seen markets across the asia-pacific region turning higher. we continue to see resiliency, at least on the mainland and in hong kong. the hong kong hang seng up about .5%, and in japan, we have seen markets turn higher as well, holding onto those gains, up about .6%. the one that is moving to the downside bucking the trend is the south korean cosby after the country did report about 10 new coronavirus cases. you see it falling to a two-week low, down about .25% at the moment. let's take a look at some other risks in the currency and commodities space. we did see copper moving higher for an eighth day and 11. gold, though, moving a little bit higher, too, holding onto those large against that we saw yesterday, holding on above $1600 a troy ounce. we do see the yen weakening once again and extending losses after two weeks of losses, and we do see the aussie dollar moving a tad bit higher but mostly holding steady. back to you guys. haidi: holding steady seems to be a pretty good theme for today that we are seeing in terms of the cross-sections a

as a whole, i like the asia-pacific. i don't know when the right time will be but local currency will be interesting after that big selloff. jonathan: are you part of the v-shaped crew? peter: i think it will take much longer. everyone is talking about the supply chain but i think it's more about tourism. china is the biggest consumer of outbound tourism. they are shut down, flights cannot come in and out. that will have a bigger impact on the u.s. economy than we are aware of. the supply chain will be a much more difficult thing. winifred: this really amplifies what we have seen in china over the past 18 months with trade wars. tariffs on steroids. companies are urgently trying to figure out, how do we get out of dealing with issues like epidemics with supply chain issues? james: certainly something to watch. e are all evolving and information flow is coming out. at the same time, i think there's a big opportunity. we just talked about the financial easing we have seen over the last 12 months. ultimately, that will find

as a whole, i like the asia-pacific. i don't know when the right time will be but local currency will be interesting after that big selloff. jonathan: are you part of the v-shaped crew? peter: i think it will take much longer. everyone is talking about the supply chain but i think it's more about tourism. china is the biggest consumer of outbound tourism. they are shut down, flights cannot come in and out. that will have a bigger impact on the u.s. economy than we are aware of. the supply chain will be a much more difficult thing. winifred: this really amplifies what we have seen in china over the past 18 months with trade wars. tariffs on steroids. companies are urgently trying to figure out, how do we get out of dealing with issues like epidemics with supply chain issues? james: certainly something to watch. we are all evolving and information flow is coming out. at the same time, i think there's a big opportunity. we just talked about the financial easing we have seen over the last 12 months. ultimately, that will fin