♪ haidi: very good morning. i am haidi stroud-watts in sydney. shery: i am shery a very welcome -- shery anh. welcome to daybreak australia. haidi: the world health organization steps of the blame game. peter navarro says china sent people around the world to conceive the virus. 314,000.e now over

the great is slowing -- rate is slowing in the u.s. the virus is not helping australia and if -- barley has become a new flashpoint. shery: let's see how asia is shaping up. sophie: after a choppy week for asian stocks with the msci aipac index snapping a two-week advance, futures are mixed but mostly lower going into china's npc. japan as well as thailand are going to publish first quarter gdp numbers. japan may have fallen into a recession through the yen trading steady ahead of the asset managers -- steady. the asset managers have boosted it five straight weeks. we will get policy decisions from thailand and indonesia when bets are raising that major

central banks could be forced to embrace a good of rates. theble under pressure after chief economist of the option of subzero rates was being considered among other unconventional policy tools for let's look at oil -- policy tools. let's look at oil. seeing brent gaining ground and of uti adding 2% after -- wti adding 2% ahead of the june contract expiring on tuesday. there is pressure to turn negative area that has been less intense after -- negative. that has been less intense. haidi: and of course also we are moving markets as we get into the start of the trading week. the frayed relationship between the trump administration and china. suggesting china sent

people to spread the virus worldwide. man'swill likely face to for invested -- demand for investigation into the virus. this china showing any times of buckling to increasing pressure globally? tom: so far not in any significant way. we have heard that they might allow or agree to some form of investigation, but it would have to be led by the world health organization. the administration's words -- oris is peter navarro, either/ when it comes to china. out, peter navarro says they hid the virus from the world with the help of the world health organization and sent hundreds of thousands of chinese

around the world to speed the virus. there is plenty of evidence to suggest china did cover it up, but there is no evidence to suggest china liberally sent people around the world -- deliberately sent people around the world. this is part of the pressure campaign from the trump administration ahead of elections in november. trying to divert attention away from the mishandling of the lawyers in the u.s. -- the virus in the u.s. the world health organization governing body, since the pandemic, their first meeting. they are likely to condemn the chinese over the handling, but also taiwan's status in terms of its participation. the e.u. is expected to lay a key role in pushing for investigation into the origins a key role to play in pushing for investigation

into the origins of the virus. they ask for china -- taiwan to the meeting. that would make china angry because it sees it as a breakaway province. there are 200 members taking part in the assembly. perhaps they will avoid this because of the economic clout, they can pressure countries to line up behind beijing. china can welcome investigation, but it would have to be led by the world health organization. shery: the u.s. tightening the screws on huawei. what are the latest measures washington is taken -- taking? tom: they have developed new rules, not just for american chipmakers but anybody using u.s. technology to get a license before they can sell to huawei. the u.s. has labeled this company as a national security

threat. that is what huawei denies. last year the u.s. imposed restrictions on u.s. tech companies to selling to huawei, but many continued to sell chips and other bits of hardware. to stript move was that kind of supply and also impacts the international companies including a taiwanese chipmaker on which huawei is becoming reliant. this is a take blow -- big blow. analysts say will create uncertainty for the global semi conductor supply chain. there is concern on how china might retaliate and there are suggestions they could publish this unreliable entity list to affect u.s. companies. and it steps up the focus on china of trying to fill their own domestic chipmakers. the state act funds pumped --

backed funds pumped more than $2 billion into a state owned wafer land. it is owned by shanghai international corporation. shanghai is trying to reduce reliance on technology from abroad. certainly major impacts for huawei and supply chains and semiconductors. it will lead to actual duration -- it will maybe lead to acceleration for local support. shery: tom mackenzie, with the latest. we will have more on china's tense foreign relations. guests join us great we are also speaking to a cornell university associate professor later. with coronavirus cases at 4.7 million globally, pro-health care ceo baker tells us whether

or not he thinks testing efforts have been enough. jay powell warns u.s. recovery could stretch through the end of 2021. how will that way on sentiment? this is bloomberg. ♪

karina: you are watching daybreak australia. a new survey shows four in 10 americans don't trust china animal not by its products because of coronavirus -- china and will not buy its products because of coronavirus. the poll says three quarters of those asked pay more for goods made by companies that move out of china. itsh korea will slash forecast for the economy as a second wave of coronavirus cases

emerge. they will cut the projection of 2.4% growth after the economy contracted more than 1% in the first quarter. india is extending its nationwide lockdown through the end of the month as a surge in cases make it one of the hot spots. europe has restrictions on beaches in the mediterranean and with bars and restaurants. italy is relaxing curbs on movement while spain reports daily virus that's below -- deaths below 100 for the first time in weeks. they face the deepest recession in europe on record. u.k. leaderboards johnson admits the country may not -- leader boris johnson admits the country may not be free as the country remains the highest in europe. he acknowledges the frustrations of lockdown calls on the good sense of the british people to act responsibly. public support for johnson's

handling of the virus is falling. 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. ♪ shery: jerome powell says not to bet against the american economy, but also that recovery from this crisis may stretch through 2021. the federal reserve chair spoke to cbs' "face the nation." >> this economy may take a while to recover, it could stretch through the end of next year. we don't know. shery: our next guest agrees, saying it could take three years before we returned to normal. joining us now, the global head of multi-asset michael kelly. chairman powell seems to be right, it is hard to conceive of a v-shaped recovery in demand

when people will be still social distancing. we have at least a positive treatment or the -- until we have at least a positive treatment or vaccine. >> the federal reserve is overwhelming the markets with .ts massive quantitative easing one way of gauging that is if you look at stocks in the s&p 500 and group them by those rated aaa, the highest quality aaa have rebounded the fastest. usually in a depressed condition and there is a rebound based on economic confidence, the lowest quality debt would rebound. this is liquidity driven, the marketsverpowering the with its buying power. soon that will end. in another month or two and it will depend on fundamentals. i agree with chairman powell,

they will not rebound as fast as necessary if double the markets were there. shery: if we return to fundamentals, we could see the biggest firms with liquidity, balance sheets rally more and leave behind the smaller and low-quality companies like has been the trend for this entire rally. they will do that as you suggest, the high quality bigger ones, but do they rally more, or do they hold their ground more for the other more economically sensitive gift ground? back to work means really the jury comes in and we begin to look at how are we bouncing? everyone understands the importers' depression with the level of activity. the rebound we see is what from the did -- the depressed conditions to recession like conditions. the markets look too far ahead

of themselves. does all of the extraordinary monetary policy we are seeing distort the real picture when it comes to solvency and bankruptcy? we have seen high-level bankruptcy, but will there be more to come when we see into the other side of this? it -- thi? is? >> yes, unfortunately. to bankruptcy rate may rise 9%. it has been hovering around 2% in recent years. those are big companies that are publicly traded through the real bankruptcy will be small and medium sized enterprises which is the backbone of employment in most countries, ferry service industry oriented.

the time of social distancing requirements that will linger will make it very difficult for service businesses to make money. they are coming back with fragile financial. most have only a couple of months of cash on the balance sheet. they will have agile financials and a difficult set of work conditions at work to proceed with. we are afraid defaults will be rising for quite some time. in terms of opportunity, if you look at the beaten-down, targeted sectors like travel and ,eisure, the likes of disney airlines, energy, would you be tempted to take positions in those now, given you are picking companies that in the longer run look robust in terms of prospects? given the strength of the

rally in the equity market, we think you can earn better returns in other markets at the moment. crude oil, oil futures, in mid april we saw negative prices in oil. that drove lots and lots of capacity to shut down in late april. we saw opec, 9 million barrels go into effect to shut down. supply is going down. the one thing that is happening is gasoline usage is going up. to write are going way. there is more to go, you can make more money in gold for the rest of the year. all of these policies, massive reallypolicies, this is what you want when you own gold.

long-duration investment-grade u.s. credit. -- are notoming back coming back anytime soon, but spreads are high. if you get long-term spreads and they close a little bit, that gets powered with duration behind those great we see that happening and lots of companies, ig companies coming to the market with long-term bonds, great price, great start, a lot of duration behind that spread closing. thank you so much for joining us. the global head of multi-assets michael kelly. this is bloomberg. ♪

haidi: opec-plus is seeing growing signs of recovery in demand. the yuan secretary -- the opec secretary-general tells us what he thinks the outlook is getting brighter -- why he thinks the outlook is getting brighter. >> we are forecasting on the 9.7 thatation of the was signed off by participating countries. but also importantly, to take note, is that some of our countries like the kingdom of saudi arabia, kuwait and the united arab emirates have come forward with a voluntary supplement of 1.2 million barrels a day. this is also on top of the baseline, effective baseline

that they were coming down from in april. which would mean in total just these three countries, they have effectively reduced production 2.74 million barrels a day. bringing in total at the moment 5.64 million barrels a day for the opec us. now if you take into account the inventive -- involuntary shut and voluntary is globally that we are closely monitoring, the numbers are evolving. at the moment our numbers show based on 3.6 million barrels a day globally including in the united states bringing the point total to about 17 4 million barrels a day.

we are monitoring these. will lookence in june at all of this data in the scenarios and options depending on the command outlook without the second half of the year and the recovery plans of the global community as we navigate ourselves out of this horrific pandemic. the worldlook around at the shut-ins and the demand picture, is it your contention that perhaps the worst of the demand destruction has been passed, or are we going to see more demand disruption? >> there is no question at the moment although at opec we remain cautiously optimistic that there was -- the worst is behind us.

but we saw in april was extraordinary -- what we saw in april was extraordinary. our allies rose to the challenge. of theheir leadership kingdom of saudi arabia and the russian federation and all other countries to confront this double whammy of demand shock of unprecedented proportions as well as a supply shock in the midst of a pandemic, when more than half of the global population is in one form of lockdown or another, bring in the entire global -- bringing the entire global economy literally to a standstill. givent is your base case what you can see for the second half in terms of the cuts? will you be able to taper? will opec plus countries be able

to ramp up ever so slightly? >> it is a growing consensus that the global economies will the secondbound in half. it is the form and shape of the recovery that is in contention. be that as it may, we will look at all options when we meet in june, depending on the impact of this fires, as well as the impact of the recovery plans as well as the outlook for demand going into the second half of the year. the opec secretary-general mohammed barkindo. one of the key questions now we are seeing the market slowly rebalancing is will the rebound in prices be sustained?

question.s the key we have seen back-to-back weeks of gains. if you looked a month ago, will prices return to negative prices? the west texas intermediate in april plunged to -38 a barrel. if we go into the bloomberg, will oil go to below zero again, it is unlikely to happen again. investors still watching, this is a possibility. there were a number of unique circumstances that are unlikely to be repeated. look at the price chart. 60% inces have recovered recent weeks. we are almost right at the mid-march level. it has everything to do with implementation of opec cuts which were more stephen swift and anyone -- steve and -- more

than anyoneift anticipated. despite all the skepticism they came through. it has caused brent oil prices to stabilize and so many are view thatc that opec's the worst is behind the oil market is correct. haidi: hurricane season has started early in the u.s., so what are people saying about expectations? su: it is interesting because we have got tropical storm arthur forming 16 days before hurricane season begins june 1, off the coast of north carolina. not a threat to oil facilities, but they say there could be a record number of storms adding to volatility. haidi: su keenan in new york. lotsg up next, we have

more to come with daybreak australia. this is bloomberg. ♪ this is bloomberg. ♪

karina: you are watching daybreak australia. global central banks are warning the recovery from the coronavirus may take years. fed chair jay powell said he expects any u.s. rebound to stretch to the end of next year. the bank of england is examining unconventional policy measures deepens.k. slump they expect a rebound four-year-old -- rebound fueled by stimulus. the u.s. is ramping up criticism of china with an aide to president trump suggesting beijing sent people around the world to spread infection.

peter navarro said china hid behind the world health organization while sending people to infect other countries. navarro echoes mike pompeo who accused china of a cover-up. the head of the world health organization confirms he will quit early. ofwill step down at the end august after attacks by the trump administration about anti-u.s. bias. washington said the w.h.o. -- the wto has allowed china to get away with unfair trade practices for years. hong kong leader carrie lam admitted for -- admitted her government mishandled chinese protests. a new report says there is room for improvement and carrie lam doesn't expect protests to die down anytime soon. 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. itsy: india has extended nationwide lockdown while easing restrictions in certain sectors to boost the economy. countries laying out plans to ease further. let's go to yvonne man. spotountry is still a hot in the region. yvonne: the lockdown measures have been extended to the end of the month while easing or restrictions. this is what we heard so far. sports complexes and stadiums will be able to operate without spectators. allowedte travel not without a permit, but public transport, walls, sentiments, -- spots will tourist remain closed.

they have 91,300 infections deaths as of0 sunday. some industries have resumed operations but factories are facing difficulties in reopening. this is because of travel restrictions and broken supply chains as shortage of workers. countries are starting to contemplate using border control borderontemplate easing control as well. china and south korea have asked japan to join them relaxing business travel. japan remains reluctant to loosen, with some of the tightest border controls in the developed world. foreign minister says business people and exports will be prioritized once they do. tourism will come later. singapore's had laid out -- set to lay out details for loosening.

see inwe are shutting to a few days fires cases -- starting to see virus cases declining in the u.s. su: yes. parts of upstate new york, as we see fatalities falling to a seven week low. new york and neighboring states allow beaches to reopen friday. new york city beaches will remain closed. we heard good news with disney. they are planning to reopen parts of their florida parks starting wednesday. shops and restaurants will be allowed to operate in the disney springs mall near orlando. disneyland and resort hotels will remain closed. president trump wants sports stadiums to be loaded with people as people contemplate reopening sports complexes once again and the consider --

leagues consider resuming without fans. markets coanchor out of hong kong. the opening -- the pandemic has upended china's national people's congress. it starts in beijing after a two-month delay, bringing delegates from across the country to hear the leadership's plan for the next 12 months. here's a look at challenges. sessions ofl two the people's congress typically bring together 5000 party members over 10 days. this time onlookers expect a different format after the convention was postponed for march amid the coronavirus outbreak, the first date change in decades. both meetings could run shorter while the number of delegates could be reduced. we could see strict hygiene

measures, despite the gathering being assigned china's leadership contenders -- considers the virus to be contained. there is a shifting focus on the economy, heading for its worst performance since the days of chairman mao. the numerical target could be abandoned altogether in favor of a more ambiguous goal. pledged moreas powerful monetary policies and the government will help with construction, health care and 5g . the ongoing unrest in hong kong will be in the spotlight with beijing looking for a greater role in supervising politics. the u.s. is delaying its report assessing the autonomy. the white house awaits commentary on the origins and management of the virus. with the ratcheting lame game and independent inquiry calls, the -- blame game and

independent inquiry calls, this congress will be watched closely. shery: we will look at the state of coronavirus testing and what the u.s. should be doing better with pro health care. this is bloomberg. ♪

shery: investors have eco-data from japan and singapore. let's turn to sophie

kamaruddin. sophie: we see this going higher, adding .3%. australian session highs. australia and singapore have the deepest earnings downgraded within developed -- downgrade within developed asia. in sydney we are watching elders, which will post first-half earnings. they help buy and sell livestock in china. they came under pressure after beijing suspended australian beef imports. yuan's npc, the offshore trading below 7.13 and all of the bond futures under pressure -- and aussie bond futures under pressure. there has been more than $8 trillion in global debt sales per that is prompting a warning from goldman sachs, saying central-bank bond buying may not be enough to offset supply.

united states has seen more than 36 million people filing for unemployment benefits since march. kevin cirilli spoke with the u.s. labor secretary about the trends in recent jobs data and the administration's plans to stop the crisis. >> the numbers for last week were a little bit under 3 million. it is a high number. we are looking at 36 million americans have filed for on employment. that is a lot of hardship. it is difficult to see. we are reminded daily of the sacrifice workers and their families are making has we try to beat the virus -- making as we try to beat the virus. the number of people is declining. earlier. filing

there is a backlog being worked through. we know the situation is fluid. we know people are going back to work. that is good news. ordinarily we talk about how jobs were lost. said 20.5 million jobs were lost. i look at it as many of the jobs are still there. workers know they are there. companies know they are there. we are preparing for people to go back into the jobs. >> does the data reflect that optimism? two people feel their jobs will be there when they were -- do people feel their jobs will be there when they return? >> yes. this comes from the report we put out last week. is americans said they were on temporary

unemployment areas the blue -- unemployment. with the slowdown in 2008, 2009 it went way up, people said i am unemployed. but now it is the red line. people said they were temporarily unemployed. the fed came out with a report yesterday, very similar survey results, 91% of people said it was temporary. >> one of the other points was for folks making less than $40,000, they will be significantly negatively impacted by the economic impacts of this. democrats are pushing for another round of stimulus. do you think the best way to get out of this is more stimulus, or to reopen? >> i think reopening is our focus. we want to help businesses reopen safely, have the right

protections for workers. it is critical we reopen safely. it is the private sector, not the government that drives this nation's economy. i think although we have had really extraordinary government intervention recently, we have to remember how strong the economy was a couple of months ago and wife. a major part was president trump's focus on reducing tax burdens, regulatory burdens, those are the keys to a strong economy we cannot lose sight of now. >> there have been people crunching the numbers on unemployment checks and some individuals who are receiving unemployment benefits are receiving more than they were when they were working. does that concern you, and does it about the potential for them to get back to work? >> you are referring to the extra $600 a week president

trump signed in the cares act. we felt it was important to keep these people who were sacrificing jobs to the public health as near as whole as we could to where they had been. that was a really important benefit. unemployment benefits are for people who don't have a job. you can't quit your job because you might get more. you might not go back -- we have been emphasizing to the states as we reopen, the states should be making sure people make the transition back to the workplace. shery: you can get a roundup of the stories you need to know to get your day going in today's edition of daybreak. go to dayb on your terminals, also available in the bloomberg anywhere app for customize settings -- anywhere app. this is bloomberg. ♪

shery: let's get a quick check of the latest business flash headlines. emirates who is s -- could slash 30,000 positions. this would reduce the carrier's payroll by around 30% with travel downturn expected to last for years. the long-haul carrier has raised $1.2 million in new financing

and is seeking more help from the dubai government. china is warning the new u.s. exports restriction targeting huawei and other threaten the global supply chain. washington has moved to prevent sales to huawei and will require isis is for any trade in chip technology. anyill require licenses for trade in chip technology. washington's move to tighten restrictions on chinese earned immediate response with beijing investing $2 billion into a local chip producer. funding of a hong kong manufacturing plant is to support the chipmaking. the chinese government owns 50.1% of the facility in shanghai. haidi: the new york stock exchange trading floor will be partially reopened but not everybody is coming back yet.

the safety measures that will be taken. in consultation with the public authorities, public health exports -- experts. what we will do, the market makers at the post around me will continue to work remotely. and the larger firms brokers that are small, independent firms that typically stand around the trading floor will come in in the first phase. we can limit interaction among andle to get us back in help the businesses most impacted get started. >> what are the important measures you will taking -- you will take from the get go to ensure the safety of people

coming in and what will it look like in terms of density on the floor? >> given the protections we have learned, everyone in the building and on the trading floor will be wearing a mask, six feet social distancing minimums. we are asking employees that come into the building not to use public transportation initially because shelter at home orders are in place and we are trying to restrict that, by keeping them, us off of the subways. we can leave that capacity for essential frontline workers and the health care system and limiting exposure of different people we are interacting with. we will have temperature screening and medical screening as people come into the building. some of those are at the end of march and then layering on ppe and social distancing restrictions. been a must have

difficult decision. what is your biggest concern as you open up? >> the decision-making process was about who is impacted most by these closures and how do we get to increased level of service. we will live with this for a long time. we will not be on the other side for quite some time. we can be thoughtful about what parts we reopen and how do we do that. our plan is to do -- is designed to focus on slowly reentering in a cautious and measured way so we get the economy reopening and moving again without adding undue risk on the system. we are not looking at expecting we are going to eliminate the likelihood of any case of covid-19 because there is a pandemic we are all living with, but we will reduce risk of outbreak. flexibleeed to be a

situation. we have outlined phase one and we have plans to increase the level over time, but we recognize we must contract overtime as local conditions change. how do we open up and start to puller and be ready to back? we learned so much week to week, and that is the information we need to use. >> lower density at the beginning in terms of people in the building, wearing masks. you have seen people able to function electronically, not able to come that quite away. do you think the changes we are seeing will change the fabric of the new york stock exchange? >> while the community has been able to operate remotely and we can execute ipo's and have complex transactions -- today i

am next to the logo of abc therapeutics, one of the largest biotech's just priced this morning, while we can operate mostly, we operate what -- operate that are when we have people involved. we can see the data supports we operate better when humans are involved. we will go back to that level of service. this is the first step. haidi: that was the new york stock exchange president stacy cunningham. the australian prime minister -- trade minister has yet to hear a response from china on barley and these. i guess he is sitting by the phone to hear back. tom: tuesday is the day china make its decision to impose those terrorists. -- tariffs.

they could be up to 80%. china accuses australia of dumping barley. simon birmingham, the trade minister, has been trying to get on the phone with his chinese counterparts. there is nothing really at the high level. there is a request for a call that has gone unanswered. , withks coincidental australia calling for the require -- inquiry into the coronavirus that now has the backing of 62 nations. the chinese ambassador has said maybe chinese consumers won't want to buy beef and wine. that is why it looks convenient in terms of timing. australia is willing to distance those issues, saying the barley investigation had been underway for 18 months, saying it is a

coincidence. the trade and esther said there could be an appeal to the world trade organization. shery: a clearer picture is emerging on how the virus is affecting australian companies. tom: we have had a lot of companies abandon earnings guidance. it is more than 120 in fact. 83% of industrial companies have abandoned or altered guidance. real estate stocks round out -- australia and singapore in the region have been issuing earnings downgrades at the greatest pace. they have cut 12 month profit .stimates 20% for australia that is because australia locked down earlier than other nations and the hope would be maybe things return to normal earlier because of it. shery: paul allen in sydney.

we will have more on the tensions of the next hour with daybreak asia. at 9:10ctor joins us a.m. sydney. checking in on the markets, seeing trading in new zealand underway, restrictions being lifted in that country as it continues to make its way out of the pandemic lockdown. we have a bit of upside in australian trading futures, .6% higher. trade was about the trading biggestship with their trading partner in china continuing to weigh on people. we are getting moves with the rest of fx land, the pound the big headline, falling on speculations the bank of england is considering negative rates

according to the chief economist which would send the pound sledding against its g10 counterparts. we are watching the yen, seeing perhaps the events continuing to have legs and watching the yuan go into this week that will have more policy signals from the npc. shery: plenty for investors to digest. estimates asou they come. gains, brent extending climbing from a third week -- this is bloomberg. ♪ these days staying connected is more important than ever.

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♪ haidi: good morning. i am haidi stroud-watts in sydney. shery: i am shery anh in new york. our top stories this hour, the white house steps up the pandemic blame game. sentg china deliberately people around the world to spread the coronavirus. u.s. cases are slowing while