what is your take on this downgrade from moody? naturally, the chinese are very important in japan in the context of trade and politics and especially risk in northeast asia. hope, that china's economy will remain stable. ofthis sense, the downgrade china is a bit of a concern, but at the moment, i think the chinese economy will be stabilized in terms of gdp growth rates, somewhere in , and if thend 7% chinese economy stabilizes, then actually we don't have to worry too much. recently, china's trade is slowing down and japan's export to china is slowing down after being boosted in the first quarter. , the growthconomy rate of the gdp was 2.2% in the first quarter, but there is some downside risk in the second quarter. as exports will not be able to be the driver of the economy. in this sense, the chinese economy is key for japan. >> hang on one second, because i want to return to these headlines. this is a big surprise, china aa3 byut to ai from moody's. as yvonne was saying, china's financial strength will be eroded somewhat over

what took moody's so long? >> we call these out back in august of last year. we put it on a negative outlook last year because of these concerns. i would not say that investors have seen it just in the last quarter. it probably goes back 1.5 years. we think the debt level in households has meant that the level -- relative potential certainty around their behavior and how hassles react if there was a downturn is now just uncertain. so we have taken action on the banks. yvonne: that was moody's vice president and the chief economist speaking to us on daybreak astray. that is all for us on "daybreak asia." here is what is coming up. about you will be talking the msci decision. he is not looking too optimistic about this. rishad: he has a lot to say about everything, from brexit to .he traffic signals he seems to have knowledge about everything. is going on with the u.s. economic expansion. he is concerned about that. also what is going on with msci. we are talking all things brexit as well. it was yesterday that we had the first meeting between the u.k. an union

we are also taking another look at this moody's downgraded china yesterday. we will be speaking to china's homegrown ratings agency. it is interesting the cousin, they have taken very contrary views compared to the other big three ratings agencies. speaking to the global credit rating head of the ratings team at 40 minutes past 10:00 in hong kong. that will be interesting, because i am sure he has a different view than moody's and the rest of the ratings agencies. of course, all the action on markets as well over the next couple of hours. plenty more to come. this is bloomberg. ♪ ♪ it took me a while to learn how to pronounce it. >> you had a losing record, then you won the national championship. >> we ended up winning one of the greatest games of college basketball. >> you won your third gold medal. >> the international anthem being played, nothing better than that. >> will would you say is the most important lessons of leadership?

paul: hsbc's outlook rating has .een cut to negative by moody's moody's says profit will be subdued in the next few years but notes if the restructuring plan is carried out properly, the bank will benefit in the future. broadcom rose on reports it is looking to offload one of its chip units. dow jones says it is working with credit suisse to attract bids for its radiofrequency arm, something that would accelerate this move away from being simply a maker of semiconductors. it has revenue of more than $2 billion in the 2019 fiscal year. coming up next, we will have the latest on the house's impeachment push as lawmakers gear up for historic boats. you are watching live pictures of capitol hill as president trump could become the third u.s. president in history to be impeached. this is bloomberg. ♪ >> it takes time sometimes for the fundamentals to assert themselves. >> some of our guests with their outlook for the full year. global stocks are trading near all-time highs, but there may be a few near-term catalysts given that we are seeing signs of overheating, as you can see in the char

shery: kaven tsang, vp and senior analyst at moody's investor service. we have an alert on the bloomberg. we are hearing from foxconn's terry guo, that he is considering running for president in taiwan. that heheard from him will be stepping down as his role of head as foxconn, after founding the company 45 years ago. we are hearing from terry guo that he is considering running for president in taiwan. mentioned he will reduce his commitments in foxconn. foxconn moving some of their manufacturing and production to india in order to take advantage of the growing smartphone market there. now we're hearing guo considering running for the taiwan president -- presidency. plenty more ahead on "daybreak: asia." this is bloomberg. ♪ show ishe shanghai auto getting into gear with electric vehicles high on the agenda. china is a leader when it comes to cars come up with a huge number of companies in the market. while traditional auto sales in china are falling, demand for electric cars is robust. it will come down pretty significantly. we expected that. announce

moody's cut them for the first time since 1989, going with hong kong hours later. googles gameplaying artificial intelligence program created a three match sweep of it human opponent. this chinese player has been playing since he was 10 and said not a machine could be him. -- alphago is is perfect. veterans say it will be years before computers could master the game. global news 24 hours a day, powered by more than 2600 journalists and analysts in more than 120 countries. this is bloomberg. ♪ thank you. we are counting down to the major market open in the asian fake. let's go to markets reporter adam haigh joining us from sydney. good story -- good morning to you. starting flat, seems like markets in asia are pointing to an uninspiring start. good morning. fairly mixed start in 20 minutes or so with the japanese and australian and south korea sessions get underway. we have some news in currency with theith the rand development around zuma, looking at the rand as negative. going later on into the trading, we have china closed, the u.s. and u.k. close, but we are l

joining us is chief apac economist at moody's analytics. does the federal reserve, is this the force behind how a lot of people will react? does the fed hold steady, and central banks breathe a sigh have relief -- a sigh of relief? if he gets more hawkish will somehow find their path more difficult like the central bank of indonesia and even the central bank of india as inflation numbers push higher? >> welcome i think you are right everyone is watching the fed. this is the key role the fed plays right now. my expectation is that, at least by july, there will be some talk about talk about inflation part make, about -- pardon me, about rising interest rates. the fed is going. . to be very cautious. they are going to be sure date send the signal out very early, -- the fed is going to be cautious, they're going to be sure they send out a signal early and in a measured way so as not to set off any alarm bells. i think central banks are holding tight now waiting for that message from the fed. given july, it could be at the august jackson hole me

we got moody's ratings downgrade in may. it is not something everyone can ignore completely because it is a major ratings agency but they are stating the obvious from many perspective. we heard from the imf pointing out the debt level was a concern . we heard from the bank of international settlements talking about the risk it posted the banking system. it can be taken seriously. here is what the s&p and others are looking at. we have a chart. fromows the debt profile 2008 to 2016. it is all edging out and that is the level of concern. there have been strong debates. there have been great inflows. things are looking more positive. how do you get growth that has been predominantly powered by credit to continue while cutting back on credit. >> what is the likely response in light of this downgrade? >> when they said when moody's downgraded they exaggerated the level of risk. they are likely to reiterate that. we are likely to get an official statement. the party congress is important. china headinggot for its first sovereign d

hn: you just had moody's downgraded from be minus two triple c plus. that is a horrible credit rating. i mean, that is like seven stages below investment grade. if i was a credit manager at one of these suppliers, i would be quite worried. going back to the tire delivery thing, whether they do 2500 cars per week or 5000 cars per week, tesla has an enterprise value of $42 billion market cap plus eight ilion dollars of debt -- $8 billion of debt. $30 billion. ford is making 150,000 cars a week. tesla is not even close, you know? we are focusing on a very small data set here. the big picture is they are a very small company, financed with debt, with this massive market cap which i think is -- as this thing is popping, it could unravel quite quickly. that is why we are short the stock. yvonne: i know you have been short the stock for years now and now, it seems like people are starting to listen and join your camp, but there are a lot of diehard loyalists to tesla out there. we did speak to someone who said it is going to get worse, but it will look worse

not so positive is the latest downgrade by moody's on hong kong. is that likely to cause any kind of reaction in the equity session? gradualthink this is a of and for hong kong. people on the ground are not surprised. they could see it coming less year, really since the protests got worse and the third and fourth quarter last year. you could already see it reflecting in hong kong underperforming against other places. the data is reflecting that unemployment has risen in hong kong. passenger arrivals have gone down at the airport. generally, the outlook for business is a bit worse than it has been for several years. that probably means you will see equities be an underperformer relative to the rest of asia for some time. it's already started to happen. we are seeing weakness yesterday as well. although the global economy, global equities are probably going to have a decent year, just means that hong kong will be one of the laggards. there will be some companies that can beat that, because their businesses outside of the territory. those businesses m

let's talk about that with moody's analytics chief stephen program -- steve cochran. we are starting to see a retaliation. china has been measured in its responses in the beginning. we are seeing a tit-for-tat. the implications for the asian supply chains, not just for china, not just for the u.s., are pretty significant. steve: they are pretty significant. the important thing to remember is despite all of the volatility in the equity markets, the global economy is quite strong. while tariffs will damage the economy and slow the global economy, if they stay where they are right now, the impact will not be too great. the bigger impact would be if we went well beyond where tariffs are today and say if they were placed on all trade between the u.s. and china. i think we have a major impact that would be felt in the u.s., china, and across the rest of asia. haidi: that scenario, the doubling down, isn't out of the realm of possibility. i would say since may be a couple of months ago, it is looking more likely, given we don't have expectations of a circuit breaker in this

moody's analytics chief economist. next, china takes only small steps towards reaching its climate goals. how serious is beijing about its carbon neutral pledge? we have that next. this is bloomberg. ♪ e that next. this is bloomberg. ♪ the usual gifts are just not going to cut it. we have to find something else. good luck! what does that mean? we are doomed. [laughter] that's it. i figured it out! we're going to give togetherness. that sounds dumb. we're going to take all those family moments and package them. hmm. [laughing] that works. wannit's timeight and for aerotrainer. a more effective total body fitness solution. (announcer) aerotrainer's ergodynamic design and four patented air chambers create maximum muscle activation for better results in less time. it allows for over 20 exercises. do the aerotrainer super crunch, push ups, aero squat. it inflates in 30 seconds. aerotrainer is tested to support over 500 pounds. lose weight, look great, and be healthy. go to aerotrainer.com. that's a-e-r-o trainer.com. pr

we will look at why moody's is concerned about high levels of corporate debt. this is bloomberg. ♪ betty: it is done, the senate cleared the temporary funding bill. they will be sending it to president trump for his signature tomorrow. this will maintain current government spending levels through january 19. 66-32, withe senate some democrats voting. it won approval in the house. this keeps the current level of funding to january 19. just in time for the christmas holidays, for the president to sign this tomorrow, and everyone to head back home for the christmas holidays. yvonne: certainly can take a break and now. as we were talking to joe lotect -- joe sobczyk, a after the holidays. care,k at daca, health and spending caps. ted cruz speaking about this passing right now in d.c. we will continue to watch what goes on. it says asia-pacific banking systems offer a stable outlook for the coming year. however, it does warn high levels of corporate and household debt pose a severe risk. let's bring in moody's vp, eu gene. he joins us live from singapore this morn

and a rating's boost from moody's for this company. tencent is poisteed to rise abot 2%. they are partnering with a blockchain e-sports platform to deliver 24 hour e-sports coverage. david: this is bloomberg. ♪ ♪ [ phone rings ] what?! ready for christmas? no, it's way too early to be annoyed by christmas. you just need some holiday spirit! that's it! this feud just went mobile. with xfinity xfi you get the best wifi experience at home. and with xfinity mobile, you get the best wireless coverage for your phone. ...you're about to find out! you don't even know where i live... hello! see the grinch in theaters by saying "get grinch tickets" into your xfinity x1 voice remote. a guy just dropped this off. he-he-he-he. rishaad: this is the opposition leader in australia. been speaking at bloomberg's headquarters in sydney. this is the scene. he is favorite to become the ored prime minister -- fav to become the next prime minister. market wise, a bit of a reprieve. it is the run-up to thanksgiving. david: he is talking about investing in clean energy finance corporations. n

according to moody's to maneuver. you see the pboc being relatively cautious in its support and it's easing for the economy. they have not pursued aggressive rate cuts we have seen from the fed and other central banks. they have not come down the path of asset purchases. they are being cautious. there is now an acknowledgment among officials that corporate debt levels will have to go up as they try to support the economy and, crucially, keep the numbers of unemployed and jobless numbers as low as possible. in february, 8 million people unemployed, that is having an impact on consumer debt level. merchants bank noting eight tickets up in nonperforming loans of consumer debt. that calls into question the ability for the retail sector to bounceback if consumers here are struggling with debt. mackenzie joining us from beijing. next, indonesia is looking at locking down its capital to curb the spread of the coronavirus. this is bloomberg. ♪ >> we are getting the latest numbers out of china when it comes to coronavirus in

katrina ell at moody's analytics, and we are seeing the bank of korea leaving that rate unchanged as expected, 20 one out of 22 economists having forecasted no change -- 21 out of 22 economists that bloomberg surveyed having forecasted no change. we will also have more on the outlook for the global economy with guests tomorrow, when we are joined by bank guests, including the philippine central bank governor. this is bloomberg. ♪ >> it is a sea of red across asia. let's turn to sophie. sophie: an industry expects regulation, and we are keeping an eye on travel and tourism related plays after the government eased rules for vaccinated travelers from 10 low risk countries, and the daily case rate is lower, the lowest level since mid july. the country is pushing ahead with a covid strategy to attract holiday travelers going into year-end. haidi? haidi: speaking of year-end, amazon facing a showdown in india, more important than ever this year as the two look at the in the hour retail focus. joining us is our editor. why is this particularly significant for diwali? >> i think there are

moody's says the global wave of populism and social unrest is putting credit at risk. the rating agency says its 2020 outlook for sovereign credit is negative given unpredictable domestic and international threats, and the populist policies that we can institutions and hamper growth. moody's says it expects governments to struggle to address credit challenges in the coming year. global news 24 hours a day on air and on tictoc on twitter, powered by more than 2700 journalists and analysts in more than 120 countries. i'm jessica summers. this is bloomberg. shery: hong kong is bracing from a protester disruption after monday saw one man shot by police and another set on fire. the center of downtown paralyzed by demonstrators. let's bring in sophie kamaruddin. it is now that time of day where people are commuting to work. we are now hearing reports of some bus routes could be suspended. get us up to speed. sophie: that is the case. after a monday of may him that saw the central district brought to a standstill by police, te argas to disperse protesters. we are seeing morni

moody's reaffirmed its rating. global news, 24 hours a day, on air and @tictoc on twitter, powered by more than 2700 journalists and analysts in more than 120 countries. i am ready cook up to. -- i am ready cook up to. -- i am rich because good to -- ritika. this is bloomberg. shery: it can restore output. riyadh claims weapons from iran were used against two aramco plans. the u.s. has blamed tehran with president trump saying there is strong evidence of its involvement. it is looking that way. we are having strong studies done but it is certainly looking that way at this moment, and we will let you know. as soon as we find out definitively, we will let you know, but it does look that way. shery: that's bring in our reporters. let me start with you. we continue to see these conflicting comments coming out of president trump saying he does not think the u.s. diplomacy with iran is exhausted so what can we expect in terms of the iran-u.s. relationship going forward? >> it kind of depends on what conclusions they come

rising after moody's upgraded the outlook to stable and raises the credit rating to baa2. easing earlier jumped after the central bank tightened its currency policy. stories we areon keeping on the reader. fletcher building jumping the most since 2002. seven west rising. it was named the bigger best bidder for ardor -- him join forces with volkswagen truck and text for eb and self driving vehicles. betty: president trump is reopening the door to the free trade pact, tpp. he also says the u.s. has made progress in resolving trade conflicts with china. uschina is negotiating with very hard, very long. we have made a lot of progress. we are opening out up and getting rid of the tariffs. you will see tremendous business openings. betty: japan's foreign minister said they would be very happy to see the u.s. coming back to the tpp. bloomberg global economics and policy editor kathleen hays here with more. kathleen: they have wanted it. it is interesting to see how this is unfolding. donald trump says one thing, the japanese say another. let's just start with what happened today.

here to discuss the outlook is moody's associate franco leung joining us from hong kong. great to have you. outlook for 2020 is pretty stable by and large. sales pretty much flat. pricing for the much flat. are there more risks to the downside than up? franco: moody's has a stable outlook on the property sector because we think the sales flourish, and also because the inventory levels are generally healthy, which would support property prices to a certain extent. however, we do see the credit because ofin, mainly the environment, public developers, as well as the weakening demand in the lower tier cities, particularly in the weaker economic regions in china. haidi: at the same time, borrowing costs are at their lowest in about two years. so you are seeing a surge of issuance of dollar bonds. is this really something you are seeing for the biller -- bigger developers or is it smaller developers you are seeing the potential risk when it comes to financing? franco: sure. we saw the beginning of this over the past two weeks or so. we have seen a pretty robust issuance activit

a lot of factors cited by moody's are not necessarily new. that is not to say we want to be complacent about the risks and china. we do believe china has the necessary tools to navigate these challenges. insofar as demand for chinese securities, that is something they are watching very closely. to the extent the chinese authorities are progressively liberalizing capital accounts and encouraging foreign influence, but keeping a close watch, because the technical inflows into china could be substantial, should china be included in these indices. this is a possibility within the next one to two years. yvonne: thank you, the head of emerging-market at western asset management, joining us live from pasadena. uber hide it -- hired a lead. this is bloomberg. ♪ betty: this is "daybreak asia," i am betty lou in new york. yvonne: i am yvonne man in hong kong. cooper has fired the engineer that leads its self driving car efforts. there is a legal dispute over also that.ogy with let's get to our legal reporter, joining us now from san francisco. what a

a1s shows, moody's had that rating. what would change that view? rating alreadya1 incorporates risks with regards to the leverage, which has already been incorporated in our downgrade last year. the way we see this rebalancing you're talking about in china, there is a trade-off between stabilization and some of the risk related to the highest leverage. at this point, we do think the chinese authorities do have the wherewithal to balance these two needs, to keep a rise in a systemic leverage maintain, while also maintaining stable growth. yvonne: also on that front with that a1 rating is japan. there is a lot going on when it comes to the fiscal discipline side of things, seems to be lacking after the elections. all this talk of fiscal policy, if you look at japan. there is also the prospect of a hike in the consumption sales tax. does that change your view, from a credit perspective? from the credit perspective from japan, we recently affirmed japan a1 rating as the same as china. what you want to see, what you would look at in japan is the long-te

you are right, moody's coming out, the second big rating agency took what -- agency to cut huarong, citing concerns about funding availability in the market. the fact that they will find it additional to raise additional funds. fitch cut their ratings after china's largest bad debt asset manager failed to meet that deadline in terms of posting its earnings. the concern for investors and rating agencies is you are not getting much clarity from the powers that be here in beijing or their plans about this debt and asset management going forward. they have $23 million of offshore bonds that will come due in the next four years and there is still no clear plan on how they will reap -- meet those debt regulations. so far, we have heard from a world where there is adequate the quiddity. -- liquidity. haidi: tom mackenzie there in beijing with the latest on huarong. this chinese property develope'' s bonds hit record lows over concerns about liquidity. they rattled investors by repaying investors with proceeds from an estate sale. some outstanding bonds are due next month and says they may conside

joining us is moody's analytics senior economist. we were expecting a contraction, but they are still in positive territory. with that in mind, how do those pmi's look to you? >> the key take away from the pmi data we got from january was that the economy stumbled early in the year, and that explains why the pboc has been on the front foot from this year and late last year to try and stabilize the economy. china's economy is facing a number of headwinds. on one hand there is zero covid policy, meaning recovery is potentially bumpy and on the other hand we have the slowing property market, so that keeps sure on the pboc to keep maintaining an environment that is conducive to helping struggling businesses as well as household. paul: in terms of maintaining that environment, exactly what do policy settings look like? we have become used to seeing these big spending plans, big splurges on infrastructure. >> what we are seeing is the pboc is taking a targeted approach. five your reductions in the loan primate, rrr -- prime rate, rrr reduc

we are joined by the assistant director for moody's analytics. it to have you with us as always. we are talking about china, vietnam, taiwan, we are seeing price pressures globally, and of course in the u.s. do you see this being transient given how much of it is energy prices and how much we could see a disruption from the new ways of the -- new wave of the virus to the recovery? >> we are expecting third inflation we are seeing throughout asia. it will be temporary. we will not see the same issues of inflation in the third or fourth quarters that we are seeing right now. we are expecting commodity prices will come down further and we have seen some easing of late. the bottom line, underwriting inflation remain -- there are specular prices and a lot of time these economic recoveries create relative impotency or economies might be further ahead of the recovery. underlying inflation pressures are remaining quite subdued. haidi: when it comes to real inflationary risks, how do central banks balance risks, either being behind the curve or ahead of it? are we likely to see a more con

paul: the moody's analytics economist, thank you so much for joining us. let's take a quick look at the markets right now. have been trading in australia almost 10 minutes, and most sectors were off by .2%. ands communications consumer staples in positive territory. new zealand weaker by 1%. we did have trade numbers for the month of october out of new zealand a little while ago. $600 million deficit. nikkei futures unchanged and s&p e-minis pointing ever so slightly higher although things do seem to be getting drowned lower at the moment. the reality is really sinking in that the economic studios package in the u.s. has turned into a political football. let's get to karina mitchell with first word headlines. the stimulus optimism is fading further in washington with differences remaining on both sides despite plans to keep talks going. nancy pelosi and steve mnuchin say they are closer to agreement but each accuses the other of introducing new conditions. infection rates surge across the u.s. with stocks falling as investors doubt a deal will happen befor

moody has upgraded apple to aaa. apple is on track for its most lucrative quarter to date with revenue expected to be around $118 billion. it joins microsoft and j&j as the only u.s. companies on the s&p with the highest possible credit score. up next, and epidemiologist joins us to talk about australia's virus response. this is deja vu moment. >> our guest there on omicron concerns heading into the new year. there is said to be a meeting at the national cabinet today to talk about the omicron variant. a professor of epidemiology joins us now. it stood out to me the prime minister singh on national television that comparing the mask mandate as saying you don't need to tell -- you don't need to mandate people to wear sunscreen and hat in the summer. is that a fair comparison? >> we are still transitioning and what's important is that we have clear messaging about when people need to step up local precautions. in the long term, we don't need to do that with formal mandates and rules, but it is something that the people

you have the moody's downgraded as well. long-term, he sees opportunities. short-term, there may be challenges. he is concerned about that debt pile. long-term, he is positive. be focused on to providing more products for institutional investors. they have a wholly owned foreign enterprise. they may look to set up a private fund. there is also a quarter of that allows offshore funds to raise money. that has been suspended for about two years, but there is speculation it a be lifted. they may be looking at retail investors, although he says that is probably about a decade off. the success of alibaba. they have set up the largest money market in the world over a three-year time. they are going to be looking for partnerships, but he sees opportunities. he also says that a shares should be included in the msci index. we are going to get a decision on that at some point in june. ramy: thank you for that terrific interview. after the extension, it is now all about compliance. energy ifthe russian his country will stick to the plan of limiting output for longer. â™

moody's analytics's steve cochran. scott minerd is saying the fed's so-called main street program is a disaster and the u.s. has done permanent damage to the jobs market. he spoke to bloomberg about that and the prospect for more fiscal stimulus. of whathe definition saving the economy is. they could put up the package that is proposed, one on a trillion dollars, that is probably -- 1.8 trillion dollars, that will probably buy 3-6nother three-x months -- six months and it will not come in time to make a difference for november. but the impact could start to be felt by christmas. in terms of the long run, the cares act for instance, and the existing program, have done very little to lift structural growth for the long-term. saved they policy has credit markets in a lot of ways. a lot of these bigger businesses that have been able to seek financing. how would you compare that to the access for credit -- took credit for smaller businesses? many of them have shut down already. scott: policymakers are leaving themselves ope

that is the foreign debt rating getting the downgrade by moody's. the long-term debt rating downgraded to baa1 as we continue to see weakness. in terms of limbered economics, bloomberg intelligence estimate peru pointing to potential recovery in the wake of the pandemic, which has at the economy hard, potentially seeing growth of 3.1%, trending down, but much lower from the potential average growth we are seeing, around 4.5% in the two day gates -- decades before. let's get you over to vonnie quinn. vonnie: opec at its allies have agreed to stick to their existing plan as gradual monthly oil production increases. the minister ratified the supply hike scheduled for october after a brief video conference. opec+ is in the process of rolling back unprecedented output cuts implement it during the pandemic. 45% as so far been revived. the taliban and other african leaders have agreed on the formation of a new government and cabinet. attila beneficial says an announcement will come in a few days. we are told the teller been as been waiting for the full wit

moody's is more cautious on what the implications mean for the firm. they are taking a more positive view that any form of state led bailout is some kind of form of extraordinary support. >> what do we know about this bailout so far? >> well, we don't have many details about the a lot itself. investors are looking for more clarity. there are reports from earlier that the injection could be $7.7 billion. that will certainly help offset some of the $16 billion and projected losses that huarong forecasted for 2020. >> what do you see as the assessment, as to whether the potentially -- this potentially means a broad-based appetite for bailing out these similar companies? >> i think in the case of the ratings front, they recognize bailouts and china are very rare. i think investors are looking at huarong. the key thing whether or not it falls into junk territory. investors will of course have prices in. they will be scrutinizing the firms, they have been for months now. the rating is the thing that matters. 50% of investors will have to sell their bonds if

what would have made them feel more comfortable and moody's more comfortable about it is our operating cash flows were a record 1.7 billion, up 50% nearly for the first half. we announced today that we are for jetstar, new investment in lounges, recruiting of pilots come and we believe given the performance of the company today, there are plenty of operating cash flows to return the investment to shareholders, including project sunrise, including the retirement of the 747s, and to continue to invest in our employees with training and infrastructure. report was that flawed because it was too early to show what qantas is doing. >> looking through that report, now that you are out of that blackout, you can go more in detail, but the s&p saying the average age of a qantas airplane is about 10 years, which is older than singapore airlines and almost double the age of emirates. they are saying that time is now to invest even more money into your aging fleet before the costs become too much to replenish that fleet. that wasthink again incorrect. one of the reasons the fleet age has gone up, w

. ♪ haidi: we are getting breaking news when it comes to the mining investmented to grade by moody's with the outlook cap stable. we have had of course some safety issues but positive developments, saying safety certificates have been issued for a number of these minds. we are -- mines. raising them to investment grade with the outlook at stable. the brazilian iron ore giant does continue to see that recovery after shutdowns and disruptions and output due to the coronavirus this year. shery: moody's has downgraded the credit ratings for new york city and the state, warning the pandemic impact is among the most severe in the u.s. cities under pressure as schools reopen and infections rates rise -- infection rates rise in hotspots. michelle cortez, the winter has not even started and we are already seeing the infections worsening. over 1300there are new infections in new york state reported yesterday. that is the highest level since may. new york city is really going to be taking the brunt of this again after getting through it in april after we open schools again. my 5 million kids ar

moody's downgrades the ever brand yet again as more issues bloom. this is bloomberg. ♪ shery: fresh developments underway for two of china's biggest ahead dates. landing on selling their stakes in the consumer finance unit, while evergrande issues are deepening after another ratings cut for moody's. let's bring in our chinese edit creditor. rebecca, this is really a slow, ongoing implosion for these two companies. every single day it seems we have a new headline. which one do you want to start with? >> i think here we are seeing the first real signals about potential restructuring or reorganization will look like and it said to be transferring its stake in and. also, potentially planning this debt to equity stock for units. so we are starting to see this move of them returning to their core business and a potential alternative as to how it stays to rustle up funds and shore up investments. shery: let's turn to evergrande, another cut? rebecca: yes, another ratings cut for evergrande. i think this one is slightly within expectations. ever can is cl

the struggling commodity trade, with moody slagging in default. they expected quarterly loss of $1.8 billion. more thanclosed down 30% in singapore. investors are looking into a possible bank filing later. fileshink that noble i don'tfile in the next two weeks or the takes longer than that. reporter: the end is night for one of the defining products of the apple era. the ipod is heading for the exit after years. it is illuminating the cheaper models, hinting at the lines of eventual demise. they were renovated with new colors in 2015, but the nano has not had a full upgrade since 2012, and the shuffle since 2010. global news, 24 hours a day, powered by more than 2700 journalists and analysts in more than 120 countries. i'm haslinda amin. this is bloomberg. yvonne: a flood of economic reports just out of japan earlier, showing the economy is picking up team. that inflation is holding steady in front of the weaker oil and service prices. retail prices coming in missing estimates. what does this mean for the bank of japan? kathleen hays joining us wi

outstanding have loans around $14 billion and moody's has cut them to junk. this is one stock that was rounding today. let's dive deeper with mark cudmore in singapore. with all the optimism of a sendingl vaccine, carnival up more than 15% at some point, could we see this upside, that risk on sentiment, replicated in asia as well? mark: i think absolutely. that is the short-term theme, a positive tone. the wholeenerally, background narrative is changing. people are moving on from the shift that economies will see a sustained slow down to, look, policymakers have done extraordinary things with packages they provided and they have promised more. powell said they are not running out of ammunition. there is a massive package in europe, one of the stumbling blocks. investors are going, policymakers will continue having their back, pumping more back in, even if there is a second downturn. we solved the credit market problem. overall the story is very positive. i suppose the question is, we have momentum right, but how. -- how long does it last? a tenuouse based on

moody's investors service has raised the outlook on india's credit rating to stable from negative. the credit score was kept at be aa three, still at the lowest investment grade. that is on par with russia and romania. the agency says downside risks are receding. australia's banking relator has raised the minimum interest rate buffer lenders need to account for when assessing home loan applications. the australian potential authority sites growing risks to financial stability. it has told vendors to assess at an interest rate at least three percentage points above the loan product rate. 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. i'm vonnie quinn. this is bloomberg. haidi: let's get straight to the markets. sophie: stocks are easing earlier gains with banks weighing in. often early 2% after this week -- off nearly 2% after this week. mckay futures bouncing more than 1%. the head of the rbnz decision. the kiwi dollar under pressure here. this as we are seeing interest rates rise ahead of

the economists and moody's analytics as the -- at moody's analytics estimate that if they continue, that could shave as growth in% off u.s. the fourth quarter of 2020. the big question is how long that goes on. andhe u.s. goes ahead imposes additional tariffs, that could be a major drag on the economy, just as president trump is gearing up for his reelection. it would also have some impact on china's economy as well, so besides have the guns to their heads to get some sort of deal and avoid extending this trade war beyond much longer. explore one of the scenarios a little more. imagine tariffs due come into effect as threaten -- do come into threa effective threatened. effect as threatened. tom: they look for the thousand listed firms, exporters, major exporters. of the 1000, just 300 have profit margins of more than 10%, so a 10% level of tariffs, and with a weaker renminbi, down 7.5% over the last 12 months, they can just about whether that ther that. out of the 1000 firms, just 60 have profit margins of 25% or above. so it makes it very difficult for chinese exporters. andquestion of

we will have more analysis ahead with moody's senior vice president on bloomberg markets china open at 9:30 a.m. hong kong time. bloomberg has learned the securities and exchange commission has been taking measures to clamp down on the spac market. what sort of changes can receive -- what sort of changes could we see? >> they put out a statement saying that transaction should be seen -- should be treated as a liability instead of equity in the cap accounting treatments. that impacts all of the deals, because most are issued in a unit, which means a share. the long-term impact is ongoing, it is an ongoing story. the short term is that we are likely going to see some companies sponsor teams having to refile documents and it will slow down the spac market more now that the resources that are refiling. shery: -- haidi: there is a daily of -- deluge of spacs trying to go public, right? >> the pipeline is robust. but the pace has slowed significantly in the past few weeks. that has to do with the sev [speaking foreign language] c -- that has to do with the sec taking an unusually long time t

let's cross to sydney and moody analytics economist joining us, what. syed led to deflationary pressure in the december numbers? we had declines in fresh food and brent prices falling, but where else could we see deflationary pressures falling as we have core cpi numbers just rising .7%? >> i think going back to middle of the year when oil prices were high, we saw them filter through the rest of the economy, particularly through transport costs. now that ore prices are reversing, we will see the factors filter out of transport cars. also on the broader economy, we have seen housing prices decline, which has been an entrenched trend for the past few years and we expect it to continue. expect19, we do inflation to decelerate further, particularly the core inflation measure. shery: we are now hearing from more than half of the economists surveyed by bloomberg saying that they don't actually expect to see inflation ever reaching the doj's target of 2%. what are your forecasts? >> exactly the same. we don't expect -- we are not forecasting 2% inflation at al

moody's says directly and indirectly the malaysian economy will be impacted. looking to thest press conferences later on this morning. emerging-market assets globally have been under the gun. asian forces may find a fresh dose of uncertainty out of malaysia's election results. global wealth management cio joining us from singapore. i was just told it was your birthday today. i want to say happy birthday to you. it is also a happy day for mahathir mohamad. investors not too happy with what we have seen in proxies in malaysia. gtv chart. tf have seen the malaysia e falling -- there is so much expectation things will be status quo. what now? what should investors be watching out for now under a new regime? >> the very first thing to be watching out for is how far and to what extent the new government will come into changing the policies of the previous government. haslindae policies mentioned was scrapping the gsc. that is something that will shape the credit markets where government funds are concerned. it is held by foreign investors. front will on that help to

india's credit rating has been cut to the lowest investment grade by moody's amid a slowing economy and a deteriorating fiscal position. the agency lowered the currency rate with a negative outlook. that comes as investors lose faith in the modi government. india has erased more sinceolder -- any country the start of the second term. popular chinese video app tictoc has apologized after complaints that posts with the #black lives matter and #george floyd were marked with zero views. they say they are being censored. tictoc claims it affected a wide array of posts. videos linked to black lives matter have generated more than 2 billion views. 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. share a. to watch continue ongoing unrest across the united states. president trump in the past hour promising a forceful response to violent protests across the country. pres. trump: if a city or state refuses to take the actions that are necessary to defend life an

haidi: we saw the bailouts, the state led bailout's getting very different reactions from moody's. in fact, they came up with completely divergent views. what does that tell you about how even ratings agencies are struggling to be able to view what regulators are doing? >> historically, there is a different methodology. in historically, this is a top-down mythology, the government entity, moody's applied for bottom-up, so you can look at the readings of the final ratings from both agencies are not really that different. regardless of the difference of the actions. the recent developments have confirmed our earlier view that it's important to financial institutions. in the restructurings that resulted in this is highly unlikely. so of course, there remains uncertainty on recapitalization, and the shareholding structural -- going forward. it does not really dilute the ability for the chinese government to support borrowing in times of need. in the recapitalization plan by the chinese soe is that it is a clear and strong signal that they would like to help them firmly and timely. haid

with a look at this for week, we are joined by katrina ell, economist for moody's analytics. let's do this in order. i want to start with the imf world bank spring meetings. a big thing bloomberg has looked at is this diversions the imf talked about -- divergence the imf talked about. looking at yields rising and may be central bank tightening indicated in advanced economies, people are concerned about what it means for emerging economies and markets. >> i think we have to take a step back and recognize we are in a much better position and the global economy -- it's in a better place than at the height of the pandemic this time last year. while there is some divergence of performance, we are still seeing on the whole, the global economy getting back on track and that includes economies across the globe. we will see stronger demand and investment spending up again and that will be good news for all economies. we are particularly seeing this in the asia-pacific where the vaccine rollout is troublesome and inflation is high. other economies like australia are getting back much q

. , up 1.4%,n on samsung some notes from moody's and fitch. moody saying it does not expect disruption to samsung operations from these arrests. and fidgets saying the rating would not be affected by these developments. >> japanese stocks also reacting negatively. sophie: i want to check on with the yen as well. 112 .95, weaker than the start of the day. about guys were talking with a guest earlier today, we have not seen much reaction given that it is one month worth of trade data. even january exports came in well below estimates. with exports growing, there is some growth there, some buying of japanese products p at on that in a short while. >> thank you so much. sophie kamaruddin with how markets are reacting. let's get to those trade figures out of japan. brian fowler is here with more. brought takeaways with the numbers? numbers, it is always strange in january because you have the fact that the chinese new year can push the numbers up or down in either direction. broadly, although the numbers were weaker than thought, we did see mostly

moody's is wanting exxon mobile -- warning exxon mobil that is credit rating may be lowered. highest rating to the $7 billion offering of senior notes, but stable outlook is under pressure because exxon is outstandin outspending cash . protests ingoing hong kong have prompted china's biggest bank to slash its view of cathay pacific. the wideningrom unrest damages the airlines brand. the bank has a stock price target of six hong kong dollars hay.cat it's totalu says number of daily active users has topped 200 million this month. that figure includes unique mobile devices that have accessed the app at least once a day at the start of july. baidu said it total has reached 188 million. the company reports earnings next week. cost cuts and lower investment may turn profit even as sales growth falls. paul: coming up on the next hour of "daybreak asia," u.s. stocks surge after donald trump takes a step back in his trade war with beijing. ♪ paul: asia's major markets are .bout to open for trade the u.s. goes on china to respect hong kong's autonomy. the city is bracing for more unr

christina it's the senior economist at moody's analytics. we are expecting trade numbers for china to really show cracks in the economy from the lockdowns in shanghai. the port disruptions and all of the other ripple effects we continue to see with these covid restrictions. what is your read on how impacted we could see the numbers going forward and what more policymakers can do? >> that right we are expecting to see a very decent a celebration in china's export growth as a result of these extended and aggressive lockdowns. we are looking at export growth 4% year-over-year. it shows the intense damage the zero covid policy is having on china's economy. it is disrupting ports. it is disrupting manufacturing. it is hurting china's economic recovery because and zoomers and businesses are basically forced back into hibernation in stark contrast to the rest of the world that has really embraced pandemic living, highlighting the economic pain of these policies. what policymakers can do if they stick with the zero covid policy is provide ongoing fi

general motors has shed its lasted junk rating, with moody's changing its debt rating, its lowest investment grade. the investment agency says the company has built up its roddick profile while investing in cost. the giant jerk store merger between walgreens and write eight is a little smaller after antitrust regulators. the companies have cut the value by at least $2 billion and they getdivest more stores to approval. walgreens offering seven dollars a share, down for the nine dollars that was announced in 2015. up next, looking to leave london. taiwan securities are searching around for a new base after brexit. this is bloomberg. ♪ it has precipitated this feeling of isolationism in the future. that was responsible for the selloff we saw in wall street with many of the industry's showing the biggest decline since that lowest -- september the eighth election taking place -- november 8 election taking place. looking at the bank of japan with a rate decision. it is how they are manipulating that yield curve have in japan. this going to be one of the subjects we will be discussing. kathleen

moody's got ford's credit rating. we will hear more on that is that progresses. now i want to get right to sophie to find out how things are shaping up for asian markets. sophie: early in the session and looks like rick sentiment may be stabilizing. stocks could be heading for a mixed start. bonds under pressure tracking the overnight moves we saw in treasury. kiwi 10 year. we are seeing that move lower with yields moving for basis points. declining steadily even as north korea has more weapons. caution ahead of the fed position next weekend. we have the ecb meeting this thursday as well to consider. checking in on sterling, just holding onto gains near a july high. most of the losses we have seen since boris johnson came to power, and of course brexit headlines very much in focus as johnson is trying to secure an early election. bear in mind today indian markets are closed this tuesday. paul: let's check in with the first word news with jessica summers. sales in china fell for the 14th time in 15 months with deliveries down almost 10% to $1.6 million. manufactur

moody's saying this is a blockbuster quarter for walmart. i want to show you all of the numbers you do need to know. eps and revenue both beat $1.41. just a tad higher than the estimate. e-commerce sales, you can see it was stagnant. 42% growth. but, the whole entire division is not profitable. that is a concern. sam's club, the wholesale company, beating estimates. walmart reiterating its fiscal 2020 forecasts. growth from october through the rest of the year. i mentioned the toys and the food. toys "r" us, the death of that come a lot of the folks in the u.s. grew up buying toys for themselves and family movers. now, walmart taking advantage of this. increasing their own toy offering. up by about 40%. looking at the share price, for example, walmart and its competitors, it is interesting. you take a look at that chart, you can see the company's that have grocery offerings, that have food do do better than their peers that don't. walmart and target at the top are doing better year to date than nordstrom and macy's. no food there. haidi: it