Richard Marles, U.S., Chinese Government discussed on Bloomberg Daybreak Asia


Kong on the other hand is going in the opposite direction with infections reporting out the highest tally in 6 weeks over the weekend 550 new cases It is a most case count to the biggest largest case count I should say since April 23rd many of those cases covered in a cluster of four bars in the city Australia says one of its surveillance planes was cut off by a Chinese fire jet in international airspace over the South China Sea It says the RAAF P 8 was on routine maritime surveillance when it was intercepted by a J 16 fighter that resulted in a dangerous maneuver which they say caused a safety threat Australian defense minister Richard marles says the J 16 fighter had flown very close side to side That's threatened the safety of both the Australian aircraft and crew And marl says then it accelerated it cut across the nose of the P 8 settling in front at very close range at that moment than it released a bundle of chaff which contained small pieces of aluminum Some of which were ingested into the engine of the P 8 aircraft Miles says Australia was operating completely within its rights under international law And we're not going to be deterred by this incident from conducting those activities in the future because it's fundamentally important to Australia's national interest Yeah he says the government has filed complaint with the Chinese government will not deter those missions North Korea has fired 8 short-range ballistic missiles over the weekend pushing it to a record number of launches in a single year How South Korean military officials say they came from four different sites including an area very near Pyongyang's main airport And Bloomberg Stephen engel now reports the south and U.S. apparently have responded The South Koreans and the Americans jointly tested their own 8 missile tests this morning ground to ground tactical missiles at about four 45 this morning Monday morning for about ten minutes I assume in retaliation as they were test firing of course but in retaliation for those 8 tests by the North Koreans Yeah so I'll see your 8 missiles Japan by the way as saying the North Korean test fell into international waters The U.S. is suffering from a more mass shootings over the weekend Philadelphia popular tourist area police commissioner Daniel outlaw says three dead and more injured An additional 11 victims were struck by gunfire These victims range in age from 17 to 69 years old Their conditions range from stable to critical The shooter still at large and Chattanooga earlier 14 people were shot at a bar in their music festival in the U.S. the gun violence archive which tracks shootings says more mass shootings this year than the number of days in the United States As U.S. president Joe Biden plans to head to Saudi Arabia has transportation secretary Pete Buttigieg on ABC has heard here on Bloomberg says oil companies are contributing to the problem of those shortages It's been a very striking right now to see these oil companies who have become almost ridiculously profitable And you hear these oil executives on the record talking about how they're not going to increase production He says companies have to stop Japan's prime minister fumio kitchen is considering attending a summit of leaders from NATO late this month to spur cooperation with the west over the Russian invasion of Ukraine And Chinese astronauts have blasted off on a 6 month mission to oversee a pivotal period of construction of the space station the final modules for the station are due to be launched in the next few months In San Francisco I'm Ed Baxter this is Bloomberg all right back to Singapore and Juliet Thank you so much And let's get to our guest a ten is Morgan Stanley Asia economist joining us on the line from Hong Kong so we're hearing Beijing will be rolling back more of its COVID-19 restrictions Shanghai has been gradually reopening Does this mark a positive turning point for the Chinese economy we're looking out for the ty shin PMI service numbers and composite numbers for may today Yeah I think it's certainly marks a turning point In fact if you look at the MBS PMI which came out last week we have seen a marginal improvement but they still probably would remain below 50 which will still be in the contractionary phase I think all in I think the worst part of the economy trajectory is probably in second quarter of this year as we go into third quarter and as the reopening proceeds we should see a recovery but however that's it we will caution that this is likely to be a subpar recovery in that quarter before a more evident recovery is seen in fourth quarter of this year And this is predicated on our view that the COVID zero approach probably wouldn't be going away until fourth quarter of this year until we see a sufficiently high level of vaccination rate particularly amongst the elderly group of people You have cut your GDP forecast to tell us what they are because this likelihood of 5 and a half percent growth target very much seems out the window now Yes so we have actually revised downwards our GDP growth forecast for China this year to about 3.2% this year And next year we expect a 6.2% growth Now this really takes into account the view that second quarter we would see Q and Q decline of close to 3% year on year growth of about 0.5% and then a sub par recovery in third quarter as I was mentioning earlier on in a more evident recovery in fourth quarter of this year Now I think what we would be seeing going forward is that it appeals that policy makers are prioritizing production resumption And minimizing supply chain disruptions with all the closed loop management as well as the COVID testing So that part of the growth equation will come back earlier by given the lingering restrictions on mobile team and also non-essential services.

Coming up next