♪ shery: welcome to "daybreak asia," i'm shery ahn in new york with haidi stroud-watts in sydney. we are counting down to the market opens in japan, australia and south korea. top stories, tensions after the u.s. banned chinese carriers as relations between washington and beijing reached a new law. two big reddish banks bank that -- back over hong kong.

asian banks extending the rally ninth knife day -- to the day, banks leading the s&p 500. oil uses from its highest level since early march, hoping for a rebound in the market but tempered by divisions among producers. ♪ news: we do have breaking crossing the bloomberg when it comes to south korea. the current deficit for the month of april, the korean current account registered a deficit of 3.1 billion u.s. dollars. this is the second time south korea has reported a current account deficit in the past eight years. april is when we saw south korea become a net importer of goods. $8.2oods account narrowed $5.6on, compared to billion in april last year the services account deficit increased to $1.4 billion due to

usagerioration of the ip , and we see a decrease in payment of dividends there. so the current account registering a deficit of $3.12 billion, this as we see the south korean government plan a massive amount of supplementary budget help to help the slumping economy. let's look at how we are shaping up when it comes to markets. ks see global stoc rallying now for eight straight days and that is likely to pass optimism to the asian session. weaker, but elsewhere optimistic futures. when it comes to australian futures, trading on the asx is up close to 2% yesterday, we are seeing futures now at the highest since march 6, looking like a pop of 1% when we get to the open, a little of a pullback when it comes to u.s. futures at the moment, and also new zealand

at the moment trading high at the moment by 1.5%, the highest since early march there as well. and all of this market to exuberance, despite tensions we continue to see with regard to trade. let's get to the story between washington and beijing, these relations continue to deteriorate. we are now hearing washington is halting flights to the u.s. by chinese airlines, in retaliation for american carriers being hard from reentering the mainland market. it highlights another low point when it comes to u.s.-china relations, amid this agreements over trade, over beijing's dissemination of information regarding the coronavirus, and over hong kong now as well. let's get to david engel in hong kong. david, what are we seeing? david: well, what a news day. you have the story on the airlines but also boris johnson saying he could open the path to

citizenship for hong kong citizens. you have hsbc breaking silence on supporting the security bill. you have the tiananmen square anniversary today, which has by the way been banned. you have further debate on the national anthem bill in hong kong, controversial. i do have carrie lam returning from beijing after hearing for leaders there on the security bill. but yes, the latest flashpoint is on airlines. suspendingd an order passenger flights by mainland carriers to the united states. we are talking air china, chinese turn, china southern and airlines come in retaliation for beijing barring american carriers from reentering the china market following the china coronavirus pandemic. it goes into effect june 16. at the department of transportation is saying trump could act even sooner. and beijing is preventing u.s. carriers from restoring service. meanwhile, they have maintained

price -- maintain flights, although limited, to the united states. now, it stopped short of an outright ban, but it goes to show you that tensions between china and the united states are ratcheting up into all different sectors right now. airlines had a broad rally in new york, in particular united and others that have those flights. but also it was up because there increase -- there is increased evidence that travel manned is starting, although slowly, to pick up. shery: tensions are rising over hong kong. more companies explaining where they stand on the national security bill in beijing. it is based in london and has kept its head low. because protesters last summer targeted to a number of hsbc branches.

there are basically two liens that sit out in front of the headquarters. they were angered at hsbc's perceived freezing and closing of accounts tied to money raised for protesters. the perception was hsbc was supporting the government. hs pc says it was for other technical reasons -- hsbc says it was for other, technical reasons that the accounts were closed, but protesters took out their ire on hsbc. so when this security legislation came out, a number of companies in hong kong came to the support of the national security legislation. whether that was coerced what their own collision, -- coerced tour of their own volition, i can't say that. was lambasted last week for not coming out in support, but now we are seeing a statement from the ceo signing a statement in support of this proposed security law. it is a rather terse and

sparsely worded statement saying, "we reiterate that we respect and support laws and regulations that will enable hong kong to recover and rebuild the economy." anyway, the lead protester says this is a vivid example demonstrating how china will use the security law as new leverage of influence over the business community, so yet another flashpoint here. it is june 4 today, commemoration of the anniversary of the tiananmen square massacre. for the first time in three decades, we want see the vigil in hong kong? stephen: that's right. i have lived to 30 years and there has been a vigil in hong kong's doria park every june 4. it is quite a spectacle. but it not go ahead. thousands of police have been record -- have been mobilized around victorino park.

a number of chat groups have been saying, get out there and break up into smaller groups if you have to, because police are using, excuse is not the right word, but the reason for banning this or not to prevent the application is that, you know, the city is still under the coronavirus social distancing regulations that prohibit groups of more than eight people to gather. so a number of groups are saying, break into groups of hold and protest, and candles and show your solidarity for what happened june 4, 1984 in tiananmen square. china seems to be backing its foreign collect -- former colony, another prime minister saying they will back their obligation. how do they go about that? the ira that's part beijing and they say the move by bridge from minister boris

johnson will backfire. here's following up on what the foreign secretary said last week, that the u.k. may give as many as 3 million eligible hong tog residents the ability seek refuge in hong kong if china passes the security law. there are overseas passports that were valid to hong kong citizens born before 1987. there are still 300,000 or so million hongp to 3 kong citizens are eligible for them, and we have seen a pickup in the number of applications to have those issued to people who might want to leave. ifht now, that passport, valid, allows you to stay six months in the u.k.. that potentially could be extended to 12 months, and there would then be a provided pathway toward possible citizenship. this is what boris had to say. if china continues to justify people's fears, britain could not in good conscience walk away.

we will honor our obligations and provide an alternative. beijing is not happy with this, saying it will backfire. our chief north asia correspondent stephen engle. joins us from the asia society policy institute later. and we will hear from a social activist from the center of china globalization, and a hong kong council member. breaking now, on the bloomberg we are seeing that 7.9 billion hong kong dollars will be raised in a placement. new 350.6 be a million shares valued at $25 hong kong each. this would total $7.9 billion h-share placement

for china vanke, this according to the home placement exchange, saying that this would go ahead, the h-share placement. let's get to carita mitchell with first word headlines. karina. karina: thank you. mark esper, according to the white house remains defense secretary despite opposition to using active-duty troops to confront protesters. as burke said deploying forces would be a last resort, a comment said to have annoyed president trump and top aides. however, the white house that he remained secure in his job until the president loses faith in him. ♪ the bank of england is planning u.k. lenders to plan for a no-deal brexit at the end of the year. governor andrew bailey, and rare a rarents -- in statement, says it is something the u.k. must prepare for. the government is refusing to consider an extension. brexit talks are currently disrupted by the coronavirus lockdown in the u.k. and europe.

♪ germany has agreed to a virus stimulus package worth almost $150 billion to help europe's biggest economy through the pandemic crisis. chancellor angela merkel has overcome doubts with coalition partners to broker a deal that offers tax leaf to companies, cash to families and incentives to car companies. the euro reached a nearly 12 week eye on the news before paring gains. global news 24 hours a day, on air and on take by bloomberg, powered by more than 2700 journalists and analysts in more than 120 countries. i'm mitchell -- i'm karina mitchell. this is bloomberg. ♪ haidi: still ahead, a rally that hinges on the next opec u.s. meeting. we speak with katie baize later for her view. but up next, protests in the u.s. continuing as president trump backtracks on his threat to deploy the military.

this is bloomberg. ♪

♪ protests continue on a ninth consecutive ninth across america, although the level of violence appears to be falling. the administration is struggling amid word of an internal divide with secretary of defense mark esper, who rebuffed the troopsnt's desire to use . know, on where the troops are? we have seen conflicting reports on whether they are going back to their base. give us the latest on these developments. >> what we heard this morning was that defense secretary esper, amid mounting criticism over the president's threat use

active-duty u.s. military to over protests in the u.s. what we saw at lafayette square outside the white house monday, where federal law enforcement cleared out, using proper spray using pepperght -- spray and rubber bullets, so the president could have a photo op, and then using helicopters against protesters all over the city. there has been an outcry, not just from protesters in the president's political opponent, but long time nila terry service officers and former members of the president's own cabinet, over the military behavior. so that defense secretary came out this morning and said he did not support the president's threat to deploy the military into u.s. cities. he then went to the white house and had a meeting with the president, came back, and we haven't heard from him publicly since. but the pentagon has said the

82nd airborne division, which is based in north carolina and was scheduled to leave dcn go back to north carolina as protests here seemed to calm down, would actually be staying in washington, outside the city, in case the president decide to call them in. that seemed to be a signal that after this conversation, the president reasserted himself and forward,i want to move it is a worst-case scenario, but i am still keeping the option to bring the military in. , after hisin scathing resignation letter lester, a lot of people have been waiting for james mattis, former defense secretary, speak out, and he has today finally in a pretty remarkable condemnation. justin: what is really important is that this is a person president trump himself picked to run the pentagon.

he was somebody he had touted as in the model he wanted to see changing over from the obama administration. and it is just a curtain or to see a former cabinet official criticized sitting president, but he wrote in a statement to "the atlantic" that the president was the first in his lifetime that did not try to unite the american people, did not even try, and instead tries to divide us, and the ongoing protests are the deliberate consequence of the effort. so it is really stinging criticism, really unusual, and underscores the extent to which actions at the white house over the past few weeks, especially the past few days, have taken a lot of people aback. shery: justin, give us the latest on protests right now. we have seen some clashes with law enforcement, but the violence seems to be subsiding.

justin: here in washington, we have had a 7:00 p.m. curfew the past couple of nights, that they have been relatively peaceful. so the mayor pushed that back to 11:00 tonight. we will see how it goes. but outside the white house, so far things have been ok. i know a lot of attention is going to be on new york, which has seen i think a little more violence than others across the nation. but the protests in washington, protesters appear to be determined, today they were chanting that would continue to stay here. they were outside the white house a few minutes ago singing "amazing grace." we have seen them throughout the city, and we are going to continue to watch those developments and see how things unfold. but i think there seems to be a or organized effort to keep things peaceful, to maintain the high ground, the focus on concerns about police talent he in the aftermath of the killing of george floyd.

justin, thank you. sink house reported justin . extensionsec's could be in jeopardy. we discussed the latest from the opec meeting with katie bays. this is bloomberg. ♪

♪ opec and its allies were seemingly close to consensus on extending oil output cuts. the agreement may be in jeopardy amid warnings about cheating. joining us to discuss his physicalnote markets analyst katie bays. timelyis this just a reminder that despite the pretty optimistic rebound we are seeing in the markets, but a lot of the

sustainability of the rally as he -- sustainability of the fragile tensions within the group? right.you are absolutely the market is on a tight rope, trying to preserve the fragile alliance between several members and countries. particular,hers, in i think are causing anxieties. you look at iraq acting auction -- cutting production by close to half a million barrels, then the pressure by the rest of the coalition, especially saudi and russia require companies like iraq and kazakhstan to make up for the difference of what they have failed to cotton is what they committed. and in the midst of all this, of course the market focus on opec-plus is very acute. i don't think there is any single factor driving the crisis

more today than the news flow out of this meeting, will they are one thing -- will they or won't they? haidi: the problem is, the fundamentals haven't improved, other than removing the prospect of a price war. and arguably, fundamentals have even deteriorated because pre-covid, free china slow down, the market was battling. so how much further does the rally go, and what would potentially drive upside if you look at prices? this is the big question. i have been surprised to see how resilient the commodity market as youn, just given said, the fundamentals are not overwhelmingly promising. the u.s. has cut production more than we anticipated. we have production in the u.s. fall from highs of over 14

million barrels a day down to about 10 million barrels a day, but that supply is starting to come back. and we are starting to hear producers, especially creditworthy producers in the u.s., talking about bringing supply back online. there has never been an explicit agreement with the u.s., and the economic reaction by u.s. producers to the drop in price will be the opposite of the price rebound. i think again, it is very $40, $35-$40d this a barrel range, and then looking at the opec countries to have more political skin in the game as well as the economic, you are seeing how the economic problem's compound over time, because month after month of low prices is having significant budgetary impact on the opec entries. and that, of course, figures into their willingness to agree

to extending the cuts and also making up for cuts that were not achieved. shery: you mentioned credit-worthy producers, let's delve into that because some have really fallen into junk. how much is the u.s. federal reserve's propping up these companies, given their lending facilities? katie: this is something we have been discussing with clients, and it is an important dynamic in the market today. all u.s. producers require capital, and we have looked at how those u.s. producers' bond and evenave dropped, relatively established entities have seen their bond ratings slip into junk territory. now, the federal reserve is committed to purchasing debt from companies that are part of that category of company impacted by covid, but the

markets really need to wait for the fed to roll out its main street lending program, it has already seen the value of some of that debt rally from the 50's, some cases the 70's and even the 90's, and that is dollar territory. but that means there is significantly more capital than we expected available to larger and more credit-were the u.s. dependence. it just means that these companies are able to access capital and get back to work and start drilling again because the market is going to extend them credit. katie bays, fiscalnote analyst, thank you. relations between washington and beijing reach another low. we discussed with asia policy institute's wendy cutler.

you are looking at live pictures of washington, d.c.. the mayor has said tonight's curfew will start at 11:00 p.m.. this is bloomberg. ♪

♪ this is "daybreak asia." i'm karina mitchell with first word headlines. defense secretary mark esper, according to the white house, remains in his position despite anchoring the president by saying he would not use active military against protesters demonstrating the death of george floyd. the white house says he remains secure in his job until the president loses faith in him. ♪ meanwhile, north korea is threatening to scrap its military packed and other military ventures with the south. kim jong-un's sister made the statement.

she has been more visible in state affairs on blamed the use of propaganda balloons that drop rice, pamphlets and other things into north korea. ♪ the indian financial capital has escaped with only superficial damage from a rare tropical storm. the cyclone outside mumbai had torrential rain and winds gusting up to 120 colombo to for hours. the city opened went -- the city wanted to open wednesday after the virus lucked out, but that has been pushed back. the stock exchanges expected to be back to normal -- is expected to be back to normal. ♪ hong kong' is biggest banks say they endorse the chinese security law for the city, state it will maintain stability -- saying it will maintain stability. hsbc and asia charter say they are backing it. -- hsbc andnchart

stand chart say they are backing it. 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'm karina mitchell. this is bloomberg. ♪ the u.s. is suspending passenger flights from china-based airlines in retaliation for beijing arming american carriers from reentering the mainland market. joining us now is wendy cutler, vice president at the asia society, former career difficult matt -- career diplomat and acting u.s. trade representative. wendy, great to have you with us. it is challenging to keep track of these retaliatory measures we have two sides, threats of revoking the special trading status of hong kong, that the coupling between -- the ing between the two economies seems to be seller --

seems to be accelerating. is there no hope before the elections? it is going no place but down. we are seeing a downward spiral every day from one side of the other. it is very troubling, but i don't see any bright light between now and november. shery: at least the face-one train deal has not been -- phase-one trade deal has not been scrapped. is this more of a sense that the relationship still exist, or is it because president trump can't afford to have tariffs on chinese products in these very challenging economic times? is interestingit that when the president announced potential hong kong sanctions, he didn't even mention the phase-one deal. i interpret that to mean that at least for the time being, the united states sees the benefit of maintaining the deal and the downsides of withdrawing.

i think that is good. and i would hope china would continue to faithfully implement the provisions of the deal, so as not to give any openings to the president to withdraw from the deal. withdrawing from the deal would put us right back where we were, and the president would feel ined into putting -- boxed to put in more tariffs on chinese imports, which would businesses at a time when u.s. workers and businesses can't afford it, given the pandemic and recession. haidi: is there risk as we get closer to the election, just four months now until november, that it will be too much of an easy target for president trump to resist, to keep coming down hard on china, or perceived to be coming down hard on china? that is a great point. china has become an issue, and

there is already back and forth between biden and trump on who is tougher on china. november, i think relations are lately to get worse before they get better. and by hope is, at some point both sides will put a halt. because it is he neither side's interest to allow this downward spiral to continue with no bottom in sight. haidi: what is the post-pandemic trade landscape, to you, wendy? not just u.s.-china or bilateral, i'm thinking multilateral trade, things like the tpp, initiatives china might be pushing as well. have things changed as we have spoken about this location in supply chains, concerns about china has -- how china has managed the crisis? wendy: i think trade is in real trouble. wto has already predicted for 2020 we will see a decrease in

trade between 13% and 32%. that is a huge drop. and that the same time, there are enormous pressures in the united states to reshore american jobs and reduce our alliance on china. i would hope that would mean we withwork more closely our allies and other partners to open markets to them and develop supply chains with them, as opposed to just closing our market and trying to do it all ourselves. that won't work. it isat the same time, fascinating that while the u.s. is looking at closing its market more or looking further inward, other countries in asia are trying very hard to sign an agreement by november. cptp accession may be of more interest to countries as they look to regionalized their supply chains. they: wendy, how much could

global trade picture change if we get a democrat in office in november? thebloomberg markets shows probability of a republican winning in november has dropped to 46% in recent days. and it is not just these odds. the are seeing more polls that joe biden could perhaps be favored over president trump. trade, ith respect to don't think we are going back to where we were. i don't see the u.s. being a trade leader in every initiative taking place. that said, i would expect under a biden administration, based on what he has said and written, there will be a more concerted effort to work with allies and with respect only to trying to address chinese unfair trade practices, but also trying to revive the wto as well. is this because there is

bipartisan criticism now in washington, especially when it comes to china? because unfair practices from chinese policymakers have been going on for long enough. wendy: no, i think it is broader than china. there is a growing dissatisfaction in america about where our trade policies have led us, and a feeling that we are in a very unfair situation. is, a lot of this angst and anxiety, while it is directed at trade agreements, a lot has to do with technology, productivity increases and other developments in the international landscape. so i would hope that looking states, and united trying to pursue trade agreements would also pursue a competitiveness agenda at home, including education, retraining and infrastructure.

in order for the united states to be back on the trade scene internationally, it needs to have they domestic program which boosts our competitiveness. we also, at the same ofe, see a serious risk large parts of the u.k. services sector being left out of brexit. trade negotiations, bilateral with the likes of hada, and i know people been thinking the u.s. withdrawing from tt -- from tpp with thank local trade agreements would replace globalized agreements, or is trade just looking in trouble? initiativesl trade are in trouble, and the wto agenda with respect to settlements, monitoring, is

under serious strain. i think regional agreements have a shot, particularly if negotiations are concluded after eight years of negotiations are concluded this fall. at other actions can contribute to further market openings, but to say one approach is better than others, all need to be picking theandem, best, most effective negotiating approach to achieve one's objectives. so i think there is room for all of them, all three approaches. we appreciate your time is always. wendy cutler, vice president for the asia society policy institute. a great"daybreak asia," job perk we are seeing in the coronavirus, new data coming through showing signs of hope

for the recovery. the latest numbers next. this is bloomberg. ♪

♪ shery: in a time when u.s. economic numbers have been weakened, unexpectedly better report on private job creation was welcome. hays is herethleen with the adp numbers.

what did they tell ahead of two big job reports this week? : [no audio] kathleen, if we have you there, what do the adp numbers tell us about the two big job reports this week? technical snafu. maybe that jobs reports won't be quite so big. let's get a charge and see what i am talking about. adp private jobs, it doesn't tell you exactly how many payrolls, how many jobs are in theut every month government report, and the direction is usually very important redone what we saw in the main numbers is that the forecast looks for a decline of 7 million jobs from the adp report, but it was only down by

2.7 6 million, so that is one third of the drop expected, a big difference. so even though it doesn't give you exact read on payroll, it may suggest again that that number won't be so big. one of the things going on in terms of what economists were looking for, they were seeing the number of jobless lames filed the past few months, essentially indicators from a, and they looked at a much bigger lost or its or something has shifted. tomorrow we get jobless claims for the may 30 week. they are supposed to come in at 1.8 4 million, not as big as 2.1 2 million the previous week. that also gives you a sense that maybe things aren't as bad as people thought. and this estimate of a decline of 7.5 million payrolls in may may come in smaller as well. stocks rallied, bond yields rose, obviously investors thought this was one more sign maybe the worst is behind us for

the labor market. there are other signals the labor market outlook is dire. tell us about the other parts of the puzzle when it comes to services and potentially, bad times ahead for some workers. kathleen: these are powerful signals. in fact, when the isn services report came out, the purchasing managers' survey. when people side, osaka headlines, that the index rose 3.6 points to 45.4. that was the biggest rising more than two years, so people went, that's good news, because services jobs makeup 90% of the jobs in the economy. however, when people looked at the sub index, you can see it on your screen if you are looking at the terminal chart now, the bottom line shows you that in the much lower reading on the implement index, it only rose

1.8 point. -- points. so this is a sign that may be most important part of the economy on jobs didn't do so well in may. else, veryng interesting study by our bluebird -- our bloomberg economic teams, and they say your white-collar jobs may not be safe. they see millions of white knock layoffs because of on effects. for example, if a hotel worker gets laid off, what about their supervisor, their manager? if you put that across the entire economy, that is what they are talking about, 6 million jobs among white-collar workers. i have a chart to show you some specifics. administration and support, 548,000 is what they forecast. professional services, tech workers, 337,000, wholesale trade, 180 4000, insurance,

60,000, education, 56,000. so this is something that probably doesn't show up immediately, but it is the kind of thing that makes us realize we have to look at under -- at other indicators, and why bloomberg economics thinks there is going to be nothing like a v-shaped recovery this year. it is going to be some steady increase, but i recognize -- but i recommend everybody read this on the terminal. it is also on our website, bloomberg.com. hays, our global economics and policy editor. former new york fed president william dudley says the central bank actions to keep credit flowing seem to be rewarding risky behavior. dudley spoke to bloomberg earlier about how inequality and new monetary tools are playing out. >> fed monetary policy tools are about supporting economic activity and driving the economy

to higher levels of an employment. causer, that can actually asset values to go up and exacerbate inequality. not have ace is recovery, have less inequality, or have a recovery with a buoyant financial asset crisis. so the tools are not sufficient to address the inequality program. >> is that a balance? >> i think it is pretty much binary. when we are in a crisis like this, the fed marked of special facilities, the fed can try to undertake facilities that funnel money more to household in small households and small businesses be but that is difficult for the fed operationally. how does the fed actually get money to millions and millions of households and small businesses? that is difficult to do operationally. it is much easier to intervene in capital markets, where the fed can rely on others to essentially help the fed by

financial asset. it is much more difficult to lend one by one to millions of different entities. that is a challenge for the fed. manus: that is it challenge, but there is a broad consensus they should keep conditions loose during the economic recovery. you will hear little debate about that. the debate is, how far as the federal reserve go when it does that? markets, youe the can help big companies issue debt to keep people on the payroll, but when you start to go into junk, you run the risk of getting the accusation you are helping those that make risky bets in this market, and the likelihood that that actually spills over to the broader economy is relatively small what i am trying to ask is, how do you know when you have done too much? >> i think the fed's focus has been on your financial markets work well, so people have access to the market. that is really the reason for

the interventions. even their intervention into the high-yield debt market was not so much to bailout individual borrowers, but to make sure people can access to the market -- can access the market. i think they have been quite successful in those efforts. you make a good point, the people who have high-yield debt have standing, a lot of times this happens by choice. so for the federal serve to intervene in support those asset prices are creating a hazard and that you encourage people to take on more debt. >> let's talk about the moral hazard and broad enough the implications of this period of time. some analysts say the federal reserve, in some ways had to step into the corporate debt market because of the shadow of the fat -- because of the shadow banking system. in some ways they were bailing out the shadow sector as opposed to the banking sector, which was well capitalized. how important is it to set banking standards for the shadow

sector on wall street, given the fact that perhaps this can be viewed as having the systemic import of the wall street of the past? william: you raise a very important point. something that is systemic is going to require intervention in and the usual way in the middle of the crisis. it is a systemic that has to be regulated to a degree. we have had players these past few months that have essentially been bailed out by the fed, people that had funds that were invested in treasury futures, basically their purchases were helping those entities unwind what turned out to be a bed frame. -- bad trade. if people become leveraged big enough to become systemic, i think there needs to be regulation to real that in. shery: that was former new york fed president william dudley. alert on the bloomberg now, china announcing coronavirus cases for june 3.

and ditional case four new asymptomatic coronavirus cases. we have seen the numbers stabilizing across china. they just agreed they will agree to some business travel starting june 8, as we continue to see coronavirus cases around the world topping 6.4 million. we have plenty more to come. this is bloomberg. ♪

♪ haidi: quick check of business flash headlines. agrees developer vancur to develop h-shares at a pace that will raise the company around $1 billion u.s.. demands reporting strong for its development, despite the coronavirus. it sold 188 the week prior. the snapchat parent is no longer promoting president trump's messages in its new feed, citing controversial social media posts about george floyd protests. it says it will no longer feature posts on injustice. some say snapchat is trying to read the election.

a music company raises almost $2 billion on the debut of its biggest listing in the u.s. so far. shares were priced at $25 and didn't that the day 25% higher -- and ended the day 25% higher, the company just short of $14 billion. warner is one of only three major music companies to trade publicly as a standalone entity. leasingraft market another 12 planes as it looks to expand its air cargo operations. amazon will add the converted boeing seven note 7 passenger jet to its current fleet, taking total planes now 280. one was added last month. the rest will join here. the deal comes as the global aviation sector reels from follow from the coronavirus. ♪ shery: let's check markets, kiwi stocks extending gains fourth consecutive session, now at the highest level since march. we have heard we could see remitting restrictions removed as new moon as next week around

new zealand. look at what other markets are doing. futures are now looking higher, 1.5 percent for sydney futures. the aussie dollar continues to strengthen, around a four month high. we have seen austria's economy contracting in the first quarter, but the rba leaving those rates unchanged. nikkei futures also higher. we expend japan april household spending to come through tomorrow. we are watching that closely. the japanese yen is touching the two month low. kospi futures higher. look at pictures around los angeles, as we continue to see plenty more u.s. protests as u.s. cities continue to implement curfews. the curfew here in new york is coming up at the top of the hour. we will have plenty more on "daybreak asia." this is bloomberg. ♪

>> welcome to "daybreak: asia." ahead to theg market open in sydney, seoul, an d tokyo this hour. our top stories -- tensions after the u.s. bans chinese carriers as relations and -- relations between washington and beijing at a new low. asian markets seek to extend the global rally into a ninety-day

as investors cling to hope for the post fibers recovery. folks are riding the tailwinds of global reopening. marchkong activists will tiananmen square remotely this y ear out of respect of the chinese national anthem. shery: let's get a quick check of markets across japan. the nikkei up for a fourth consecutive session, at the highest level since february. this as we continue to see pressure on the japanese yen, now touching that two month low. we have seen safe haven bids waning. the japanese yen nearing that 109 level now. we have heard that the boj could be voting to double their lending facility helping small companies. take a look at what the kospi is doing, gaining ground, 120%. a fifth session of gains. wonave seen the korean

bleeding against the u.s. dollar at a three week high., -- leading against the u.s. dollar at a three week high. south korea planning to issue $19 billion in government bonds for the extra budget. we are looking at trading in this part of the world following that optimism that we continue to see in global gaints, if we see another day. asx 3/10 of 1% higher. this as we continue to see new zealand trading at the highest levels since early march this year. watching the aussie dollar as we continue to see resilience in the aussie, trading around the 69 handle despite the ongoing commentary and concerns about australia entering a recession and snapping those 30 years of

consecutive growth. also watching the aussie 10 year bond trading as well as the yield hit above 1% for the first time since march. switch it over to brent and wti. brent crossing that psychological key $40 a barrel month. there is increasing concern that this rally we have seen since march at the end of the price war is tenuous as we continue to hear concerns within opec-plus and the opec-plus alliance about some members cheating. there are political concerns entering the fray for the crude market. let's get more insight with our next guest. we continue to see this dislocation between what is going on in the geopolitical sphere, what is going on in trade, what is going on in the streets of the u.s. and what would have been going on in the

streets of hong kong if not for the security crackdown we are starting to see. does this dislocation mean we will see the markets flip on a dime? >> there are two ways to look at it. one is markets may be on a if they continue to ignore the obvious risks in the geopolitical arena. that is one such way to look at it. being a pessimist by nature, i tend to harp on that a bit. equally i must concede the other take that is totally legitimate as well is markets are looking past this. looking past australia's recession. tried toarkets have helps as market -- it

an inflection point. as we cherry pick data points, adp suggesting job losses were not as bad as imagined were adding to the optimism that they might stumble upon a v-shaped recovery. if not, there will be enough policy and stimulus anyway to ease the pain. i suppose. market, what shape does this recovery take? i feel there is still an alarming number of people saying a v-shaped recovery is not out of the question. what would you need to see in the data in the next few weeks to suggest this is a rally built on fundamentals? vishnu: that is a tough one. i will take this one step back. we probably need to define what we made by -- what we mean by

recovery. markets are quite happy with a v-shape and they think policy stimulus -- v-shape insofar as they think policy stimulus can covid.vels back to pre- when we look at the economic fundamentals, we might get growth rates back where it was pre-covid before 2021. that will not be a v-shape in output levels. even with a fairly reasonable recovery from here, because the uncertainty is holding back household expenditure, it means by the end of 2021, the output levels will not be back to pre- covid. earnings may not be fully restored, but market liquidity is what a lot of participants are looking at to fill that gap. they are looking at liquidity

filler rather than fundamental recovery in a true sense. haidi: we continue to see rising tensions between the u.s. and china. if the global economy does in fact split into two different camps, what is the market risk right now as we continue to see rising costs and loss of productivity if this were to happen? vishnu: that would really be a tragic outcome. sv, even though the u.s.-china risks are somewhat subordinated to what is going on in the u.s., i agree that is a big risk. recovery gnd growth get elongatedll or tilted downwards. you will get a lot of volatility

in markets. u.s. tensions may always be in the background. it will be episodic. it means there will be far more volatility in asian currencies. depending on precise actions taken, you could have particular emerging asia depending on geopolitical positions. watch the opecto negotiations to see if there will be an extension of production cuts. where do you see the price of oil going, and how will that affect asian assets given that we have net importers and exporters? vishnu: that is a very good question. our take is there is probably enough consensus around needing to maintain some level of output

cuts. classic game theory is in play. the tim tatian to cheat on production cuts -- the temptation to cheat on production cuts continues. that is not holding back oil markets. supply cuts are very stretched and already priced in. we need to see demand recovery gaining momentum before we get past $50 for brent. right now we are as good as it gets until demand recovery comes through. until it exceeds $50 -- because a these levels, there is demand deficit. currencies such as rupee, peso, rupiah, may not be extended by a rise in oil prices. they may not be as buoyant on oil price dips either. producers, they

could get more of a lift on the upside and oil prices because of fiscal relief. vishnu varathan, always great having you with us. still ahead, more on oil. it is slipping as demand doubts resurfaced as to when we are likely to have confirmation of an opec plus agreement to extend cuts. iata is calling the bottom in the air travel slump. why it says signs point to an april 21 low. which countries are seeing gains next. this is bloomberg. ♪

>> you are watching "bloomberg daybreak: asia." president trump says he may not need to order a widespread deployment of the national guard to quell anti-police demonstrations, but will not hesitate to do so if necessary.

protests are continuing into a ninth consecutive night in towns and cities across america, with the president criticizing local authorities and saying force may have to be used to ensure law and order. president trump: i don't think we will have to. we have very strong powers to do it. the national guard is customary. we have a powerful national guard. over 300,000 men and women. we can do pretty much whatever we want as far as that. as far as going beyond that, sure, if necessary. >> north korea is threatening to scrap its military packed and other ventures with the south. the --ning was given to the use of what she called propaganda, democracy pamphlets, and items from the south into north korea. japan is set to be weighing

options to scale back the postponed tokyo olympics, including limiting spectator numbers and reducing the side is of official ceremonies. -- size of official ceremonies. fans may face mandatory health checks with movement around the elliptic village cut back. -- olympic village cut back. tokyo says canceling the games next year would be the worst case scenario. updatere just getting an when it comes to flight activity from qantas. the airline saying the capacity increase will go from 5% to 15% at the end of june. this is for the domestic network flights by the end of june. qantas increasing their domestic flights by the end of the month. areive an indication, they anticipating a busy business route from sydney to melbourne to go from five weekly returns

as we continue to see states and cities in australia lifting these restrictions. we are starting to see that return of travel on cross-border travel. before the pandemic induced slump in global air travel, iata saying we may have seen a bottom as of late april. we do see countries reopening borders. let's get over to sophie cameron for more details. we heard about travel bubbles. singapore and china agreed to allow essential travel between the two. what are the rules around this arrangement? sophie: with this agreement from june 8, quarantine rules will be a lac relaxed between singapored china, starting with six mainland cities, including shanghai. some of the guidelines include mandatory swab tests before departure and upon arrival in either country, plus the use of

contact tracing and health checking apps. singapore is also in talks with other countries that have control of their outbreaks. this fast lane approach is being adopted elsewhere. so cold air bridges have been established between china and south korea. thailand is planning so-called travel bubbles when the state of emergency is supposed to end june 30. some of these measures could drive a cautious return for international services. the pickup in airline operation has been led by domestic flights, primarily and as -- in asia. as for demand, iata points out a shift in sentiment with web searches on air travel exceeding virus searches. started domestic flights last month. moon by was partially due -- mumbia w --sophie: there was a cyclone

moving toward the city, now moving away from the city after making landfall in a nearby town. starting its reopening. construction activity was halted. flights were suspended at mumbai airport. the city managed to narrowly escaped damage from the cyclone, the second to descend on india in two weeks. a rare occurrence for a home of 18 million people, the city becoming the country's hotspot for the outbreak. -- more thans 200,000 total cases in the country. in the city, 150 patients were shipped in preparation for the cyclone. extreme weather conditions piling on the pressure as india pushes to reopen its economy and faces an annual gdp contraction this year. >> sophie kamaruddin in hong

kong. the world bank president has been speaking about the challenges in deploying money to poorer countries amid the global slowdown in the coronavirus pandemic. he told us about the scale of debt relief the bank plans to implement in the upcoming months. >> one of the interesting things that is happening is the differentiation of countries. what financial markets are doing is, in effect, looking at some and saying they will be able to move forward with the policies they will put in place. that becomes a positive powerful force. >> what are the constraints you have? our eric martin writes on the world bank. he is looking at your credit rating and financial ratios of the world bank. what is the day-to-day constraint to deploying money to those very poor countries?

a better are in position because of a recent capital increase in both ibrd and ifc, two big part of the bank, and a large replenishment of either done in december. fortune,dence, by good the bank has resources. constraint -- we are planning to deploy $160 billion over the next few months. that sounds small by what is going on in developed countries. if you think about developing countries, these are large-scale resources, very welcomed by the countries. go overtraint is to not exposure limits for individual countries. some countries are at their credit limits. the bigger issue is what is in

their program. they want to create confidence. what we are trying to do is have programs that show the world, show their own people that there is confidence in the recovery on the other side. one of the most important things we can do is transparency. we need transparency both on the health side, the situation for covid, also on the debt side. what contracts are the governments entering into? that proves to be a major challenge that people all around the world are working on in order to make more transparency on the debt out there. >> let's talk about that. you understand how delicate this moment is for the countries you work with. what we need are grants, not loans. what we need for a whole range of countries is debt relief. can you talk about the debt relief you can engineer in the coming year?

david: ye with regards. -- yes. with regard to grants, you are exactly right. nearly one0 billion, third is grants, meaning not loans, no interest, no repayment. that becomes a very strong positive net flow for the countries. g20 countries have agreed to a moratorium on repayments to their creditors. the biggest of that is china. recently, within the last week, president xi confirmed china will fully participate in the moratorium. in combination, that provides a big new chunk of available fiscal space for the countries to -- we are talking about the

75 poorest countries in the world. it creates space for them to spend on the health emergency itself. that is important. what we need is the commercial creditors to also come in. that means the asset managers, the banks. we are dealing with the poorest countries in the world. they need to find a way that they can also accept a moratorium on the repayment stream so there is more resources available for the countries. everyone is working together. it is a sizable amount of money, but there are quite a few steps to take with regard to -- especially china and commercial creditors, to have them fully participate. also the gulf states. the persian gulf states have quite a bit of debt outstanding in the poorest countries. there needs to be full participation by them, also in the debt moratorium. >> that was the world bank

president speaking exclusively to bloomberg earlier on. coming up next, wall street tends to stay out of major social issues, but not this time. the latest from financial executives on racial tensions in the u.s. is coming up next. we are looking at live pictures of los angeles, where we see continued protests now. we are seeing protests across major cities in the u.s. now going into a ninth straight day. this even as charges against the former minneapolis police officer were upgraded to second-degree murder for the death of george floyd. we are seeing an incredible showing when it comes to protests, largely peaceful, across major cities, including the likes of l.a. you are watching at the moment. this is bloomberg. ♪

shery: wall street executives denounced the killing of george floyd in a series of statements. that is rare for an industry that often avoids taking aside on social issues. to discuss the shift in tone, let's bring in a finance reporter. who are these executives and what are they saying? >> it is nice to talk to you. seniorre very few executives on market street, but some of the most senior people wrote personal posts. one of the major ones was citigroup's mark mason, the cfo. he wrote a post that started with "i can't breathe" 10 times, which was what mr. floyd said before he died. this post was about the dangers of black people -- the dangers black people in america face from racism in the u.s.. bank chaseconsumer

said in a linkedin post "my tears are real." this is not the usual corporate language we see in press releases. these were very emotional, raw, and personal comments from banking executives. very unusual. shery: i suppose even more unusual that we heard from mark mason being one of the few senior executives. is there a lot of cheerleading around diversity and inclusion in terms of hiring people of color? >> i think that is an important question. there will be renewed focus on this question during this moment in time and thereafter. a lot of the banks have improved diversity in selected areas, including board representation, but that is a small community within a bank. more broadly, the percentage of black workers and executives has

been stagnant at some of the biggest firms. >> lots more to come. this is bloomberg. ♪

haidi: this is "bloomberg daybreak: asia." tomany has a great -- agreed a virus stem me was package to help europe's biggest economies through the crisis. chancellor merkel overcome doubts to broker a deal that offers tax relief for companies, cash handouts to families, and incentives for car companies. the euro reached a 12 -- is testing 10 million people in the city of wuhan for coronavirus. beijing does not count such

cases as confirmed, but still requires people to self-isolate. wuhan was where the virus was first reported. the surrounding hubei province suffered the vast majority of fatalities in china. the trump administration is ramping up tensions with china, suspending access for mainland airlines in what it calls retaliation from u.s. carriers being barred from the mainland market. tonese carriers continue service u.s. airports. u.s. airline shares rose on signs travel demand is starting to recover. hong kong's two top british banks say they endorse china's plan for a new security law in the city, saying it will "help maintain economic and social stability." hsbc and standard chartered are backing beijing's controversial move, saying the one country two systems rentable is at the core of china's future.

shery: hong kong lawmakers are about to resume debating a bill that would make disrespecting china's national anthem a criminal offense. the law is likely to be passed on thursday, 31 years to the day since chinese troops fired on pro-democracy protesters in tiananmen square in beijing. joining us from hong kong is the leading democracy campaigner and secretary general of an activist group. great to have you with us. all of this happening at a time when the national severity legislation is being written in beijing. where do you see hong kong in the next few years? one country, two system in hong kong is strongly eroded by beijing. it is now beijing who broke the promise of the final british

declaration, the international treaty register at united nations and erodes hong kong affects thems and interests of countries around the world. >> what are you and your allies doing to have a say in this conversation? are you reaching out to pro establishment people? how are you trying to influence where this goes? ua: not only protesters might be affected by the national security legislation. a loss of journalists are also affected. free flow of information and the free flow of capital white be affected in the name of national security. it will be serving the interests of beijing. no matter the european union or

united states being china's trading partner -- once the national security law implement in hong kong, it will damage hong kong's status as a global financial center. ofis not just a matter political freedom, economic freedom will be strongly affected. shery: how are you trying to influence this conversation and where this is headed? who are you talking to? joshua: good question. today is the anniversary of the tiananmen square massacre. it is the first time in hong kong history since the transfer we suspendnty that to peaceful demonstration commemorate the students at the tiananmen square massacre. we are not just asking locals to support us, but international

allies to commemorate the tiananmen square massacre. only hong kong should be the city that is freedom and a liberal way we cherish. does there need to be a rethink for the pro-democracy movement in hong kong? critics would say that after the protests, one of the reasons why we ended up here is because of the lack of leadership and strategy from your side. blame the never victim. it is crystal clear that last september more than 2 million hong kongr took to the street. i just want to make a clear point, compared to the 2019

extradition bill, it at least went through the legislation process in hong kong. in 2020, the national security legislation in beijing bypassed the hong kong legislature. even hong kong's lawmaker can't have a vote. in hong kong, we don't have a top-down commander for the protest movement, but the majority consensus to oppose this national security legislation is crystal clear. we know more than 20 countries around the world, the european union or some of the countries in the g20, they already issued statements criticizing the implementation of this law, which will erode the one country two system framework in hong kong. when beijing suggested introducing this national security law, one of the most vocal voices to support this legislation is north korea.

we know what kind of authoritarian ideology and allies of beijing. plans what kind of reform are you planning the moment? what is your best case scenario at how this crisis can end? joshua: political crisis must be solved by reform. hong kong is a great city like new york or london. they elected their mayor, why can't hong kong? that is the long-term goal. the short-term goal is stop the implementation of the national security law. --nkly speaking, if beijing i don't believe president trump will hold a press conference and sanction, etc.to

i call on world leaders to reveal if there is any possibility for them to impose any partial economic sanctions, not to affect hong kongers, but to send a warning signal to pro-china tycoons. they should not be loyalists of beijing. it will turn hong kong to be a nightmare if the national security legislation pass. shery: businesses are backing beijing, whether it is hsbc -- we have heard from major businessmen now backing the security legislation, saying that would bring certainty to hong kong, an economy that is in freefall not just because of the protests but because of the pandemic. is this a price worth paying when so many hong kong people are hurting and their

livelihoods are being hurt? joshua: just to make it clear, in 2019 summer when millions of hong kongers took to the streets, no one expected covid-19 would happen in 2020. in the past few months, we observe how beijing takes advantage of the coronavirus from wuhan to all over the world. when the world needed to take on the pandemic, beijing tried to introduce this evil law to hong kong. different kinds of discussions about sanctions will cause impact to hong kong people's daily life. the majority consensus of hong kong is really clear, how we strongly opposed the national security legislation. we urge beijing to stop implementing it to hong kong. the security law will claim they ban subversion.

what does it mean by subversion? according to beijing, subversion might be quite common in the national security law. according to the framework of beijing, once you call on carrie lam, the city's leader, to step down, it could be recognized as subversion. now the handover agreement until 2047, which is disappointing. the fact remains that these businesses are in hong kong because they want stability. they want freedom to do their business. because the protests have been going on for a year, they have not been able to do that. there has been a high level of uncertainty with the pandemic. if these businesses decide to leave, hong kong would lose its status as a financial hub. are you willing to pay the price? i think the region is

willing to take the price, especially if hong kong is recognized as the most critical center. this global city is a unique place under the hardline rule of beijing with a certain degree of freedom. the scale of protests in the past few months already have been reduced to the pandemic, so it is hard to blame the protester to say that the scale of the protests negatively affect hong kong. until this stage, we still don't even know if beijing will appoint secret police to arrest people in hong kong. will the prosecution of the national security law take place in mainland china? as one who has been jailed three times in hong kong, i think dissident protesters and journalists worry about a jail sentence in beijing instead of this global city.

that is the threat we never imagined in the past. we have all heard the fiery rhetoric. we understand the fundamental points made by the pro-democracy movement. realistically, you need big business stakeholders and hong kong on board to push argument further. are you planning to speak to groups like hsbc, which have publicly backed the security law, to make any progress on pushing back on this? joshua: i strongly agree with your insight in how a prodrome aquatic -- how pro-democratic leaders can have dialogue with those business leaders or tycoons, no matter from hsbc or etc., will be important. hsbc is being threatened by the newspaper owned by the communist regime.

they have issued a statement supporting the national security legislation. it also implies how hong kong business and economic freedom is threatened by beijing. now is the critical point, not only seeking support from the general public, but also important to have businessmen support us. just like how the american chambers of commerce have already issued a survey to claim that, around two thirds of the members criticized the implementation of the national security legislation. we know how foreign businessmen have lost patience on it because it is not about political rights anymore, it is about the economic freedom being threatened. haidi: have you reached out to hsbc? have you reached out to these businesses within that survey,

for example? will you be holding dialogue going forward? joshua: pro-democratic camp would like to hold dialogue and halt the extradition bill movement. we also have a conversation and communication with business leaders. we all know how the political crisis must be solved. now is the time for government accountability, how to provide a solution on package reform instead of escalating tensions on trade. activist in hong kong continued for a most a year already. -- activists in hong kong continued for almost a year already. now the number of protests in hong kong arrested is more than inmates in prison. it is not the way to solve the crisis. that is not a solution.

the way out. dialogue, communication, not only in the political sector, not only to the grassroots, but also to the business leader is one way the pro-democratic camp is seeking support. haidi: the u.k. prime mr. boris johnson offered a path to citizenship for as many as 3 million hong kong residents. what will be the impact on hong kong and your pro-democracy movement if more people rush for the exits? joshua: lots of hong kongers live in hong kong as permanent residents. it is quite common for them to passport,ore especially with canada, the u.k., etc. it would be a good signal for the world to realize how how

hong kong situation is worse. hong kong are -- hong kongers welcome the british government at a time when beijing ignores the will of hong kongers. this kind of plan for hong kongers in response to the chinese national secured a legislation will be a good move. the more important thing is i c all upon the u.k. government to impose necessary sanctions or restrictive measures in order to push forward the withdrawal of assistance oviding is good. we know the best scenario and outcome will be beijing to stop the implementation of this controversial law. on that controversial

law, you have been asking for the united states to step in. were you disappointed when the president did not outline any concrete measures on what to do in hong kong in his speech last week? joshua: according to the white house press conference by president trump, he already made a strong and clear announcement about how one country two systems turns into one system. will be considered. that is a strong signal to beijing how they should not ignore the voice of the global community. i am not disappointed. the white house will announce sanctions or when president trump signs an

executive order depends on the timetable of beijing. right now, trump has not announced a timetable of implementation of sanctions. at the same time, beijing has not announced a concrete timetable on implementing the national security law in hong kong. it is my understanding, according to our source from the national security council, white house, and from capitol hill, the whiteive will the executivence fast depends on how beijing will impose this law in hong kong. even this law is passed under resolution during the national people's congress, but well will it implement in hong kong or when will the secret police of

beijing arrest the people and set up a court to take place in china instead of hong kong, we have no detail at all. now is a time not only for the u.s., but for the world to urge china to honor its promise of autonomy under its joint declaration. if the national security law gets passed and you feel your civil liberties are being curtailed, would you seek asylum in another country or stay in hong kong? joshua: hong kong is the hometown i live and i love. i plan to stand up and fight back. journalistsats or might ask me that, hey joshua, you don't have confidence in the howl system in hong kong,

do you worry about national security legislation? have noom how we trust in the hong kong legal system, i just want to make a clear point, it is not about whether we have confidence in the hong kong legal system. threatow we are facing a that the national security law sets up prosecution in beijing and mainland china instead of hong kong under the enforcement of global stakeholders. that is the risk i never imagined. i have been jailed three times in hong kong, but other arrested, are tortured, prosecuted, or end up in prison, never say never.

that is why time is running out in hong kong. we need to recognize hong kong as hong kong. haidi: great to have you with us. thank you for your time. wong speaking to us. coming up on "bloomberg daybreak: asia," more on the outlook when it comes to the relationship between beijing and the u.s. legco member will be along with us as well. plenty more to come on "bloomberg daybreak: asia." this is bloomberg. ♪

shery: new york oil futures are retreating after surging to a three month high. fresh data on weak demand and uncertainty as to whether opec there's will adhere to output curbs or extend them. su keenan is on the line. you are taking a look at the rebound being at risk since march. it has been an explosive rally, but where do we go from here? su: when you consider oil had fallen below zero in wti, it has been a huge rally. we are seeing extended trading falling from the three month high, new york traded west texas intermediate and brent as well.

the u.s. government put out a report casting freshened out on the strength of the recovery of -- fresh doubt on the strength of the recovery of demand. russia and saudi arabia reaching a preliminary extension on cuts. if you look at that price chart, many investors and traders are looking about how oil has come .ack nicely from its march low unless they get an agreement from opec to extend these curbs, there will not be much keeping the price aloft. getting into the specifics of the outlook for feel demand, it is much weaker than thought following inventory data. fell to a-- 21 year low. inventories rose to the highest since 2010.

separately you've got gasoline supplies also rising. that suggests that consumption is not rebounding on track with original projections. we are starting to get into the summer driving season. there has not been a lot of driving due to the pandemic and now curfews. shery: opec leaders drawing a hard line over compliance. what is the latest? su: they have been posed an ultimatum, stop cheating on oil output quotas on strict measures helping -- or strict measures helping prices rebound will be phased out. saudi arabia-- and russia put pressure on iraq. if you look at brent crude, it had just topped $40 for the first time since the pandemic and fell below that. some are feeling that oil is overbought, set up for another

leg lower. on the hard-line stance taken by opec leaders, it injects greater uncertainty. the meeting is scheduled for june 9 and 10. many of those close to the matter say this has been a long-running issue with opec, all the leaders trying to get the others to stay in line and keep the cheaters from messing things up. players like the major have been abiding by the curbs and contend to continue to do so sointend to continue to do shery: that is it from "bloomberg daybreak: asia." our market coverage continues. live pictures from washington dc as protests continue across the united states. we are continuing to see unrest. more peaceful protests this time around. u.s. city curfews are still in place. the new york, the curfew is in

place as president trump receives criticism over his handling of the riots. secretarytrump saying mattis was doubled's most overrated general. .

♪ >> it is 9:00 in beijing, and singapore. i'm tom mackenzie with david auglaize. hit again relations as washington bans chinese carriers. relations region . two big british banks back china over hong kong. oil slides from a three-month high as position -- divisions appear in the way. allegations of