shery: good evening from bloomberg world headquarters. i'm shery ahn in new york. haidi: i'm haidi stroud-watts in sydney. australia."daybreak china approves new security laws for hong kong, defying u.s. criticism and insisting they ensure fundamental freedoms. president trump will comment on friday. u.s. stocks finishing the session lower as investors weigh

a reaction that could further destabilize the global economy. and huawei vows to continue its campaign against u.s. restrictions on tech. we will be hearing from the security chief a little bit later on this hour. shery: let's get you started with a quick check and how the markets are trading. u.s. futures are down a 10th of 1%. we saw a fade in u.s. stocks, giving up their gains after president trump announced the executive order targeting social media companies. this coming at a time when u.s.-china trade tensions continue to rise. we are seeing tensions over hong kong. the s&p 500 fell for the first time in four days, and recent out performers, like bank and energy stocks, fell 4.6%. twitter falling almost 5%. we did get encouraging news with better-than-expected economic

data. continuing jobless claims and capital goods orders providing some support. it is looking like we are shaping up to be a mixed start to trading here in asia. we are seeing for japanese futures, a little change when it comes to tokyo. futures trading softer in sydney , edging ever higher in hong kong. new zealand, we are trading is already underway, we see upside of about half a percent. new u.s.pecting policies with regard to china from president trump on friday, and that could fit the direction as to the next part of his rally -- this rally. let's get more on president trump and what could potentially contain these new policies he is set to announce. this after beijing passed a controversial national security law curbing nims in hong kong --

curbing freedoms in hong kong. his top economic visors said that china would be held accountable by the u.s.. tom, we heard from larry kudlow essentially kind of reflecting on what mike pompeo said yesterday, which is that they can no longer treat hong kong in a different way than they treat china. that throws open a lot of possibilities. what do we think of trump's announcement? >> there is a range of options on this, and but we could hear from trump is possibly a targeted approach in terms of certain sanctions on certain individuals within hong kong and within the chinese policymaking apparatus. you could be looking at visa restrictions, and asset freezes, but as you suggest, ultimately, trump could say hong kong would lose a special trading status with the united states that it has enjoyed since 1992. that would have major implications for the

relationship between not just beijing and washington, but that broad economic relationship with hong kong and the rest of the world as well. kudlow came out and said china had made a huge mistake in passing this national security law for hong kong, which they did at the end and towable national people's conference yesterday, that they robbed -- this is kudlow -- that they had robbed hong kong of their freedom and we can't let this go unnoticed. deal, which both sides agree on for now, remains in place, but for the moment. this could be consequential. does he go for a targeted approach or a much bigger step, which is removing that special trading status? from: we are hearing carrie lam issuing a letter to citizens saying the hong kong legal system is inadequate to safeguard the national security, that the national security law is a duty of central authorities , and over the past year, the hong kong community has been

traumatized. we have continued to see those protests. the objective is to prevent the andersion of state power protect national security. we don't know it the exact details of the law as of yet. by also, in this statement the chief executive, it alludes to the fact that the law -- that hong kong really failed to pass this national security law over the past two decades. tom: that's right, they have been trying to pass this law since 2003 at least and have failed. when they tried to pass it, it sparked demonstrations in the city. this is why beijing has decided to circumnavigate the hong kong government and get this law imposed. yesterday, in terms of signing off and voting on this bill, it

was a major step in that direction. china has said consistently that this security law would be relatively focused and targeted on certain number of acts, that it would not undermine the autonomy of the country or the city or the freedoms of the people or foreign investors. of course, the recent history of hong kong is enough for the pro democrats, the antigovernment people in the city to look at and say, we are deeply concerned, when you have people being abducted from hong kong, when you have certain curbs on press freedoms already in the city, how and why can we trust beijing to put in place a security law that does not further curb the autonomy of the city? that is why it is facing a backlash not just from people in hong kong, but from the international community as well. you have china suggesting it can help repatriate hong kong citizens. the u.k. is looking into it as well. and we have a robust response from the u.s. shery: tom mackenzie in beijing

with the latest on china and hong kong. more analysis on china-u.s. tensions ahead. years asfman boasts 30 a resident analyst and business developer in china. he joins us later. plus, huawei caught in the crosshairs. we will ask its chief security officer in the u.s. how long the company is prepared to fight the order. still ahead, trump lance to punish social media companies for how they plan to please -- for how the police content. this is bloomberg. ♪

you are watching "daybreak australia." global coronavirus infections are approaching 6 million, with deaths approaching 360,000,

although the rate of growth is continuing to slow. lls the cliento for the first time in the pandemic, a sign people are starting to return to work. for 40% ofaccounting daily debts from covid-19. worthsays the economy is reshuffling after the fallout from coronavirus, even as governor abe eases the nationwide emergency. the labor market is weakening and business sentiment following. the government also revising downward outlook for exports. india continues to be a coronavirus hotspot in asia, with fatalities now surpassing those of china. the death toll has passed 4600 despite the largest national lockdown in the world. the number of fatalities has quadrupled in less than a month, with infection rates climbing at a similar rate. the government says the outbreak

may not pay can till next month, or even july -- peak until next month, or even july. manila's lockdown is set to ease on monday, allowing transport to resume amid a record rise daily infections. metro manila will lift stay-at-home orders while the rest of the country moves to more loose regulations. time on, meanwhile, is cutting its for your growth forecast as the pandemic against demand from abroad -- weakens demand from abroad. shery: president trump has signed an executive order that he says will limit liability protections afforded to social media companies, after twitter began fact checking his post. shares of twitter and facebook are currently rising, however, twitter has fallen the most in four weeks since the regular session. heard president trump acknowledging himself he expects this to be challenged in court. what is next?

ben: i think that challenge is a likely idea. i also think you are going to see, increasingly, a lobbying battle that spreads out in congress, at the federal trade commission, at the federal communications commission. what this executive order does is it takes the liability protections companies have. companies can leave users' content up or take it down if they do it in good faith. trump wants the fcc now to define what good faith is, but the law does not give the fcc to power to do that. the law actually does not give the fcc the obligation to listen to trump. that's before you get into any of the first amendment issues of trump coming down on a company that expressed a view he did not like. i think there is a lot of grounds for legal challenge, and i think you will see that if the fcc takes the bait.

so, with the early amount of analysis we are seeing, would constitutional? ben: there is a strong case that it might be. experts i have heard on the left and right suggest that there were big constitutional issues here. the u.s. chamber of commerce, certainly known to be allies with republicans, came out with a statement and said that only congress can change a law, that trump can't but by executive order. i think it is going to be a real battle. at the same time, you are going to see congress try to get in front of a lawsuit and change something to try to kind of appease the white house. you can see a battle flaring up there as well. we will get more on this breaking story as we get those details. our bloomberg's tech lobbying reporter, ben brody in

washington with the latest. president trump lashes out on social media. partners' kim forrest will be with us. ♪

shery: it's not just the u.s.-china tensions that took the wind out of the stock rally. president trump signing a new executive order which will limit the liability social media companies benefit from. joining us for a look at the tech sector and the broader market is kim forrest, founder and cio of bokeh capital partners. always good having you with us. you have been bullish on tech companies, especially when it comes to 5g. will be see more regulations challenging potential further gains for these tech giants? kim: i think so.

now it seemsight as if the legislation, or the pending legislation, is targeted at social networks, networking stocks like facebook and twitter, it also has been a long time coming that google made too , and that hasd at held that stock down for a while because of its, i guess, dominance in the world of search. so the big get bigger and then they get in the eye of regulators, i suppose, or if not regulators, at least legislation. shery: is this still getting into these tech stocks? after the pandemic, we have seen them be really resilient, acting as a havens for the market selloffs. if we are expecting more regulations to come their way,

is it still worth a buy at these valuations? kim: i have not recommended buying these, probably because of the valuations, but also because of consumer preference. if somebody makes a better twitter, people can leave twitter in a heartbeat. it's not that hard. i like business level of tech for the lowest level of tech like semi conductors. is it a good time to buy? i would say no, but keep it on the radar. here is the problem with any of the requests that might be made of them to police people. it is going to add to their costs one way or another. that is going to make their andings look even lighter their pe even worse than it is now. that's the negative side. the positive side is they are one of the few places that is still growing with respect to

advertisers. that is how they make their money. we don't give them money to post on facebook or twitter, so they get it from advertisers. i think that is the key thing, will advertisers continue to want to be on these platforms? the answer is yes, they know where the people are. want you to take a look at this chart, because the last few sessions have given a hint of what could be the start of sector rotation, both in terms of size and style. chart,to throw up this what it is potentially telling us. we see mega caps could see a bounceback. if you take a look at the new york relative strength index, it is starting to show that momentum is starting to turn bullish. does that tell us there is still further to go when it comes to this rally, and that maybe it is too soon to talk about any kind of decisive rotation?

kim: i agree with you, because the mind of the investor is on the recovery. as long as we keep getting news that there is a recovery that is some people are moving out and about, i think the investor is generally happy and wants to invest in what is working still. again, i go back to the big mega caps, with the exception of microsoft, all kind of serve consumers. i think consumers are still -- they are still spending and advertisers want to reach them. social networks and things like netflix are still popular. start, then, kind of rotating some of that allocation away from the

stay-at-home type stocks like netflix, which had seen a bit of downside, but more into the go out, the reopening stocks? kim: i would, but i would stay away from things that are kind of tenuous with respect to balance sheets. it's going to take some time for people to come back. things like restaurants, and you have to look at their balance sheet to see if they can support lower volumes of people and have a small and a footprint that -- small enough footprint that they are not spending too much money to serve these consumers. i would take a look there. i would stay away from things like cinemas, because that does not feel like that is where people want to go. i would look to that, but i would also look to longer-term things like internet of things and 5g. kim, we are running short

on time, we are going to have to leave it there, but thank you for joining us. credit marketsto has managed to bring liquidity back to nearly pre-covid levels. citigroup is cautioning over unsustainability. it ceo spoke exclusively to bloomberg about the longer-term cost of market dependence on fed stimulus. seee don't want to consumers, small business, big business come out of this in an indented disposition that is just unsustainable. the that's why we keep seeing in a number of these programs that they have been structured in a way that they are actually grants or have aspects of forgiveness in them, provided the money is used appropriately. the government is thinking about the same thing.

we don't want to end up with an economy where our consumers and businesses are saddled with unsustainable levels of debt. the u.s. has to go into this with a position of strength in terms of growth rates, from a monetary perspective, not without some challenges. things on the monetary front that could necessarily be used with high-impact today, which leads the fiscall, and programs being put in place in terms of small business lending, payroll protection, main street lending programs that are out there, and that clearly will take up the levels, or as some people would say, balloon the fed's balance sheet. either way, other balance sheets

-- we've got to be mindful that we don't want the u.s. government or other governments to come out in a position that the debt at the federal level is untenable. again, we are likely to be in a slower growth environment for an extended period of time, and we've got to make sure that we have created that balance in terms of people continuing to have confidence in terms of not just the u.s. government, but governments around the world. >> in your mind, how does the government exit, as it were? there are some people who say they government does not need to monetize the debt, embrace modern monetary theory, and there are others who say as soon as it is practical, we are going to have to raise corporate taxes. we may have to raise taxes on wealthy individuals. we may have to start to chip away the amount of debt we have created as a result of doing the right things to fight this crisis. >> again, i think that as you look at this, we have been in

this extended period of fairly lax or easy monetary policy, not just in the u.s., but around the world. if you go back and look at the fed balance sheet coming out of the last financial crisis, they were on a path on a trajectory of getting that down to levels that people would become much more comfortable with. obviously with this, we had to go back in the other direction, as we try to get to the other side of this and hopefully come out not to just the future, it is going to be back on the table. a couple of things are out there. one, the u.s. does continue to be the world's preeminent reserve currency. when you look at our auctions and others, it has a very strong borrowing base and therefore has capacity. the second piece of it, and i don't want to be lulled into a false sense of complacency, but low interest rates impose a very low cost in terms of the u.s. government r.o.e. to be able to

fund these probe -- u.s. government borrowing to be able to fund these programs. we've got to be mindful in terms of the absolute and relative levels of our indebtedness, and we do have to have a trajectory to get back to a more sustainable level over time. but i still think we are in a reasonable place right now, and it goes back to how long this goes on for and what needs be in the future, and when it will take from governments around the world to be able to support their economies. we don't know exactly what the path will be like, so we've got to be very mindful of that. i think the u.s. system, life-saving comes into this from a position of strength. in the first quarter, you saw us build considerable reserves. we built almost $5 billion of .dditional reserves

we have 23 billion dollars of reserves set aside right now. we will continue to watch, as we go forward -- as you can imagine, the calculations and modeling we do remains very sensitive to unemployment, very sensitive to gdp, to housing prices. as we continue to look at what we think the future trajectories are of those, we will continue to make appropriate decisions around reserving into the future. again, a position of strength. i think trying to be prudent and smart about it, making sure we are there, but being mindful in terms of capital trajectory into the future. shery: this citigroup ceo mike corbett speaking exclusively to bloomberg. huawei is caught in the crosshairs. chiefl ask the security officer in the u.s. how long it is prepared to fight the extradition order. ♪

>> the decision by a canadian judge to continue extradition proceedings against the huawei cfo involves china, the u.s., the global chip industry and other countries that do business with huawei. let's discuss with their chief security officer, andy purdy. thank you for joining us. we have seen these extradition cases in canada go on for years. how long is huawei prepared to fight this? judicial system in canada for extradition's takes a long time. we have confidence in the judicial system in canada and if

she is extradited to the u.s., she will be treated fairly and exonerated. shery: if that is your case, why not just come to the u.s. and face the charges and make her case here? , and she a decision has her individual defense attorney. i was a federal prosecutor and a lawyer for a long time, i will not second-guess her decision. shery: this is at a time when we are seeing fresh sanctions out of the u.s. against huawei, supplies and sourcing of microchips made with technology. how prepared is while way to face this? buildup -- how much inventory buildup you have to deal with it? >> this is an escalation of u.s. efforts that crushed huawei. $2.5 billionact of last year because of limitations to semi conductors.

there will be an impact. we are basically buttressing up for survival. that's what this is really about. in the meantime, there is a very likely, very significant impact on the semi conductor industry in the u.s. and significant loss of jobs, which is a shame. is this now an existential threat when it comes ?o other jurisdictions does this prevent huawei from doing business with other carriers? is part of several factors that are standing in the way. the u.s. government is interposing that prevent the u.s. government from being willing to talk with us. the geopolitical situation in china and now the presidential election campaign, the absence of a strong technology and

industrial strategy in the u.s., all of those things are obstacles that the u.s. needs to address or be willing to talk to about the kinds of activities we have done in the u.k. and in other countries around the world to address the risk. we hope we can address those conversations with the u.s. government and we hope there doesn't have to be such a great loss of u.s. jobs. but of course the expectation is that these tensions will continue, that's just a fact of the times we are living in and the dynamic between these superpowers. how does huawei ensure its survival? what is your strategy across markets that you do still have access to? >> we are doing more of what we had to do with the imposition of restrictions on buying from companies last year. dig even deeper.

prioritizing the products that are most important to customers, we are ramping up as we did last year research and development. we are fifth in the world with about a $20 billion investment this year in rnd. to some extent, we are trying to go forward with products that may not require these components and doing research and development to come up with this. it is a multipronged effort. we are not yet sure how big the impact will be on huawei but we see it will be significant on american jobs. shery: huawei keeps stating as a defense from the u.s. argument that it is independent from the chinese government, but then why do you feel the chinese government feels the need to intervene here on the side of huawei, whether with rhetoric or action? >> let's put it this way or the recent escalation from the u.s., we hope china doesn't in turn

escalate and block the ability to do business. doingina government was to apple what the u.s. government is doing to huawei, don't you think president trump would be all over the place criticizing china and defending apple? absolutely. shery: we have seen the detention of two canadians already that have been held without any sort of access to lawyers for the purse -- past 500 days or so. does huawei condemn those actions from the chinese government, whether or not it is related to huawei? >> to me, that is an example of escalation. who better to look at these and address tensions? we don't want to wait until there's a terrible economy and for the betterment of all

mankind and jobs. shery: you continue to talk to the u.s. government about sanctions and other restrictions and pressure from washington. who have you spoken to and have you seen any signs of a change in tone? >> the u.s. government is not willing to talk they have not been willing to talk since half of 2019. proveneve there are mechanisms that we see implemented in the u.k., canada and other countries, that can prove the fundamental aspects that the u.s. government is worried about. we can put in place independent mechanisms to prove there are no backdoors in the products. if we can prove, then we can prove a negative, that the china government did not force this. measures,inds of independent compliance programs and testing, we believe this can address risk and we hope those mechanisms are used for

competitors as well. sophisticated nations have the ability to hack into everyone's products. if we become more dependent on these technologies, we have to make sure we address the risk from every source. and with increasing sanctions, with the blacklisting and the move from corporate's like google against huawei, are we already existing in a dual internet world? is certainly a separation of worlds. hopefully, some of the most important benefits that come from competition are not lost. some of the most important benefits from globalization are not lost. we believe competition is critically important. competition is critically important to promote greater security, greater innovation on lower prices, and greater resilience. and the more you bifurcate the world, the more you lose benefits and the efficiencies

and organizations and citizens will be hurt as a result. 5g, trillions of dollars of domestic product, can benefit and it will be a whole lot less if we don't facilitate this competition. that's why it's important to have these conversations. they have to happen between the china government and u.s. government. we want to represent ourselves with the u.s. government. we want a chance to talk with them and with proven risk mitigation efforts and how we can address these issues. so under this bifurcated world you are talking about, huawei has long says it has a plan b to have its own internet ecosystem and operating system. feasible islly this, to ask users that are already very much entrenched within one system to give up that ecosystem to yours? is this a feasible kind of business strategy or is this to try and convince governments to

be let back in? our efforts are to work with governments and customers around the world, which we have been doing, to mechanisms that meet the requirements of those companies and countries to address cyber security risks in a way that provides transparency. equipment suppliers, needs. to be this competition some competitors are not really strong enough to do the investment and research and development that are important for competition. having the u.s. get into the game and trying to increase competition to increase the role of the u.s. and global telecommunications, it's a great thing. we welcome competition. part of that has to be greater forrance and transparency all telecom equipment and operators. on thegive us an update

5g rollout across china. they are having trouble restrictions because of the pandemic. will huawei need to play catch up there? with have been very active suppliers, with health organizations, china and other countries. 5g, the the power of health would be monitoring and testing. that has been a very robust activity. most in china are back up and running. it is all moving ahead quite substantially. the situation around the world and in the u.s. is more complicated. it's a different country with different situations. we all have challenges regarding security assurance. hopefully we can wait -- raise the bar to have greater

transparency. haidi: can you tell us about the infiltration or widespread use of huawei across belt and road countries with china's investment? >> can you say that again? can you tell us about the presence of huawei and the company and of the products across belt and road given we have seen china take a step back when it comes to that part of investment as a result of the pandemic related slowdown, i'm wondering if the markets are still fruitful for you? prettyink we are finding much most of the markets in the world are quite fruitful for us. one of the reasons is because of the idea of partner. we are really creating plus

ones. . 5g is a platform for the mobile devices. artificial intelligence will be a platform as well. it's not just about making money. we are partnering with suppliers and developers. working together in the individual countries of the world that have their particular situations and economic environment status during at hopefully soon after the pandemic as to how they are going to rollout their spectrum withow they can deploy towers and so forth so they can get the benefits of the technology and a smaller carbon footprint from the technology as well. haidi: really great to have you with us. the huawei usa chief security officer andy purdy with us. let's get a quick check of first word headlines. president trump is taking on another major target, attacking social media that he says is

restraining conservative comments. he signed an executive order to limit the liability protection of twitter and others enjoy after his tweet was subjected to effect checking. currently they say -- the orders were ushered out of the order -- oval office. >> one egregious example is when they try and silence views they disagree with by selectively t,plying a fact-check, f-a-c- fact check. what they choose to fact check or promote is nothing more than a political activism group or political activism. and it is inappropriate. the european union says the u.k. may have given up on a brexit trade deal, admitting negotiations are proving tough. the u.k. may have decided there

will not be a conclusion. failure to reach a deal would see the u.k. leave europe with no deal, adding extra pressure on business already reeling from the coronavirus. investigations from the air crash in pakistan have recovered the flight recorder. all but two people died when the airbus crashed in a residential neighborhood. reports say air traffic controllers were concerned the plane was not making a proper descent. the jet grazed the runway before circling and making another attempt to land. on thenext, more insight rising tensions between the u.s. with the conference corporations david hoffman. this is bloomberg. ♪

>> they are raping the hong kong system within the one country, two system. comes before to systems. never mind the two systems. >> one country, two system will remain. they will not kill the two system. >> how this is going to work out is anyone's guess. is difficult and interest for beijing to publish legislation as soon as tactical. >> it is not practical for the economy and business to operate under such deterioration.

>> we have seen a lot of uncertainty and i think this time, it is no different. we continue to believe in hong kong. >> we remain very committed to being here. in recent years, we have made meaningful investments. >> we are certainly reaching a point, but whether it will turn for the worse is still to be seen. -- >> even if the united states or the trump administration does anything, whatever they are going to do, i don't think we will be in a worse situation. >> i don't support sanctions for hong kong because in the words of some business people, that means the game is over. just some of our guests recently commenting on the new security laws for hong kong which have now been approved by beijing at the mpc. insight, we are

joined by managing director of board chinace center, david hoffman. great to have you. aboutrd from larry kudlow essentially reiterating the u.s. stance that hong kong essentially has to be treated like china and we are now expecting new policies to be announced by president trump as well. how much does this escalation where you in particular when it comes to businesses that have interests on both sides? worrisome fory businesses that have interests on both sides of course. stability,look for clarity, policy direction. more than anything, they want stability in the operating environment, certainly not violence and certainly not risks to employees and customers that

are with them in hong kong. they are concerned for the hong kong people because basically, this fight taking place between the u.s. and china over trade and many other topics, that is now taking place or a battlefield of it is in hong kong. more than anything it hurts the hong kong people, the planting -- depending on how it plays out. haidi: it's interesting. you talk about the desire for stability and certainty, which is certainly what a lot of people have been hoping for hong kong over the past year or so. a lot of supporters of the bill saying that the ackley what it is intended to inject, to put an end to the protests and restore calm to the city. that's not likely to be the way it plays out? >> that is problematic. the businesses of course are

concerned about the instability caused by protests and would like to see a peaceful resolution. the problem with the injection of a national security law component from beijing into the hong kong basic law is that it would introduce a high degree of uncertainty about the definition of national security, how it will be applied in china, chinese law is always defined in a very broad and ambiguous way, which essentially gives chinese regulators complete discretion over outcomes. by law or ruled by man than it is rule of man. in hong kong, terms matter, definitions matter must go -- matter, scope matters. what makes asian business so comfortable in hong kong is the fact that they can count on the

word of law and legal process based on transparency to assure outcomes. it is a clash of systems at its core. the china state capitalist system versus the? , --?pitalist system it capitalist system. an especially in legal terms, they don't play well together. shery: every time we speak to pro-democracy advocates who are advocating for more freedoms across the city, we hear the same argument that this had been promised to hong kong during the handover, but i really can't hear a stronger argument about what can be done with beijing taking a stronger stance on the city. do you have any ideas of why else hong kong protesters and democracy movement could do at this point? tocertainly resorting

violence doesn't help the situation. the ground not on there, so i can't speak from first-hand knowledge, but it apears that only happens with very small cohort of overall protesters. think the problem with article 23 unfortunately escalated very quickly due to a series of interactions and mistakes that happened on both sides and it has now gotten to a point where one side needs to give. notiew would be beijing has really offered and offramp, nor the hong kong leadership, so protesters are growing increasingly aggravated with the situation. requests, it seems, around independent inquiry and some degree of transparency on the situation seem quite reasonable.

--hink continued education agitation in a peaceful way is really the only option they have. shery: we continue to hear from not only beijing but also the hong kong leadership, the chief executive carrie lam saying citizens will continue to enjoy freedom of speech. they seem to portray it in a way that really nothing much will change in hong kong. then why does beijing feel they need to move now? why beijing feels it needs to move now is anybody's guess. it could be due to a confluence of reasons. is that it issure a demonstration of power on beijing's part. feels theadership need to assert this power at this juncture is a topic worthy of a lot of speculation.

side, thethe freedoms hong kong liberties side, this is where the definition of national security becomes so problematic. it is very all-encompassing. nationalok at the security framework that was introduced in china in 2018, it is very broad. itemizes eight to 10 components, whether it is economy, politics, culture, so on and so forth. it is hard to find a category that doesn't constitute a national security risk. the only one.s it is hard to know. the problem with the law is it on jack's -- injects a lot of uncertainty. it is up to beijing to decide whether and when what aspects of freedom of speech are

permissible and what is prohibited. it's a moving goal post. it is a murky definition. is whatand of itself makes everyone so uncomfortable, the lack of specificity. shery:shery: david hoffman, great having you with a spear the conference board managing director of the china center for economics and business. a quick check of business flash headlines. fashion giant product seems to write a future saying sales in china have written significantly this month. the co-ceo says demand has climbed more than 10% so far in may, although it is far from a complete recovery. they say demand will rise when a virus treatment and sees no reason to delist art the moment. he says it is focusing on new product and digital technology. veteran investor carl icahn has quit bankrupt hurts after a six-year bet that has cost more than $1.5 billion.

he sold his entire holding come of that represented about 39% of hertz's stock. he says he continues to have faith in the future for their company. they filed for chapter 11 last week. say they want except the closure of car plants in indonesia and spain despite the company sang the move is essential to the latest recovery plan. they slid into the red for the fourth time in the 11 years as the coronavirus pandemic stalls demand for new vehicles. the company reported a full-year loss of more than $6 billion, its first annual shortfall since 2009. haidi: and we will get more analysis on nissan's results coming up in the next hour. we will be joined by japan's auto analyst christopher richter. marketat, the global head of two market funds.

they are mostly invested in asia. she will give her views in about 10 minutes time. lots more to come. this is bloomberg. ♪

shery: welcome to "daybreak asia ." i am shery ahn in new york. haidi: i am haidi stroud-watts in sydney. down toounting you asia's major market opens. these are our top stories this hour. the white house will respond to china's new laws for hong kong later on friday. beijing is defined u.s. criticism while insisting it will ensure the city's fundamental freedom. asia faces an uncertain day after u.s. stocks erased gains and finished the