>> well-built -- welcome to daybreak: asia. to the lasting down hour before the markets open in australia. let's get to the top stories. phase one feels good. the top u.s. trade negotiator is happy. betweenensions washington and beijing.

treasury yields are up as jobless claims drop. and open for business again, but where is everybody? errie calm after restrictions were lifted. muted the session seemed after the week where we saw gains in global markets. we have a pause when it comes to the stock rally overnight. finally starting to address the the data we -- trickling and showing the impacts of the pandemic on the global economy and the evaluations we see when it comes to markets. japanese features trending a little lower at the moment. futures trending a little

lower at the moment. futures flat at the moment. david: a well-deserved break. let's get to the top stories. despite a recent wrapping up of tensions, the u.s. trade representative says he feels good about a phase one agreement with china. robert lighthizer says beijing was honoring the pact when he took significant purchases in recent weeks. selina wang is in beijing. take us through what bob lighthizer had to say. >> we got some positive rhetoric about the trade deals. [indiscernible] bought $180 million of

u.s. soybeans. this is after a call for companies to pause purchasing. beijing is evaluating ongoing tensions in hong kong. competing rhetoric. lighthizer said the pandemic will trade -- will change the as the trumpnship administration tries to reassure supply chains. said we need whatever it takes to never find ourselves in this position again. david: let's talk about hong kong. obviously part of the story. yesterday of all days hong kong

passing the national anthem law. what is the context, and what did we end up seeing? >> the national anthem law has been controversial and prompted protests. it was first introduced in 2019. peoplehree years for convicted of insulting the chinese national anthem. lawvists have opposed the saying it is part of a broader pushback from china to curtail the dissent in hong kong and the national anthem law has become a symbol among democracy supporters. the passage of the bill came on anniversary as the of the crackdown in tiananmen square.

[indiscernible] people are clustering into smaller groups to follow social distancing. to thes in comparison gathering considering it was banned for quite a significant showing. -- selina knowing wang with the latest. let's get you to karina mitchell. bank isuropean central stepping up among contraction in the euro zone with an increase in the bond buying program. expands purchase by an extra 600 billion euros to a total of 1.3 billion through june of next year. the italian bond rallied while

the euro reversed losses. fears are growing u.k. will leave the eu at the end of the year and the sides are far apart on crucial issues. a deadline for agreement is at the end of the month. for friday. are set boris johnson and ursula bodily have a talk later this month. applications for unemployment a rose in the u.s. last week despite a slow down in numbers showing the economy is still being hammered by the shutdown. initial claims fell below 2 million for the first time since mid-march with data suggesting continuing claims peaked early last month. traded goods and services plunged in april to the lowest in a decade. opec-plus is set to extend production costs after a

breakthrough in negotiations and could sign a deal this weekend. are saidd saudi arabia to have found an agreement with iraq. ratifiedment could be for another month until the end of july. global news 24 hours a day, powered by more than 2700 journalists and analysts in more than 120 countries. this is bloomberg. haidi: still ahead, clearly joins us to discuss how to deal with china as tensions rise and the phase one trade deal hangs in the dallas -- and the balance. at the mostooking hated rally in history. this is bloomberg. ♪

, -- thesia stocks recent rally has gone too far and the rally some market watchers have called the most

the tenure average of the aps. obviously the earnings make no sense, there is no guidance. what do you do? as i have been allocating cash in april and may, the amount of short i have is much lower when the kiwi came through, looking to buy appropriate earnings and good results coming out of south , good japan, singapore reaction post pandemic with australia and new zealand.

despite the trouble in mind then china,a -- and mainland they resuscitated their economy, they are trying to find innovative ways to maintain a form of growth despite difficulty so there is an earnings upside and economies benefiting. thought for aat couple of seconds. breaking some news for some viewers. listingas filed for a in hong kong. preliminary perspective has been filed to the website. the chinese name for the company , judy tates should be the trading day. we are moving forward with this june 8 is the trading day.

we are moving forward with this. let's use that as a jumping point. the exposure of a lot of funds , whether you look at the big tech names in the u.s. or in asia, regardless of what you feel about valuations, can fund managers afford to not be exposed to those big names at this point? >> they can and are. different narrative and you have value people. we are not index supporters. the phenomena supported by qa. portfolio post pandemic has .ood earnings

visa, mastercard, nike. in the asian side of things, the , those that make nike apparel, they have more technology with tencent and alibaba. so it varies. but the opportunity will be for financial services i was just services as well. to have high active shares, not to follow the index. right. at, i was trying to get with the outsized portion, if you do not want to outperform, what would be the alternative? what would you advise now to get into at this level -- at these levels? >> that's the million-dollar

question. [indiscernible] on the asian side, opportunities people get more certainty around what is happening in hong kong and other parts of southeast asia. commoditiesh bulk still hold and will sustain good .rowth year to date iron ore. there is the opportunity. our portfolio is less cash than march and looking to deploy more of that in any form of correction across similar lines discussed. is your take on the

macro data? things are still depressed. we have seen an incremental improvement from the bottom and a lot of places in the world and data on the upside. at what point do you think it makes sense that stocks generally get re-rated high. >> that the moment. it is an oversimplification. it is a recovery market cap adjusted and the overall economy is backward looking. how do people adjust to it in terms of behavior? there's a lot of frustration.

you cannot fight the fed combined with the boj. it is not plausible. you can do it for a short time. join theoc were to full office he -- for the philosophy -- we know they are recovering. market cap adjusted. other -- underlying data will improve with the globalization we are in in this quarter the way the numbers stack up but looking for sustainability around it so the issue around the quality of boardings and other asset classes. are you in? there will be bad quality investments and you have to avoid those going forward. george, australia.

do you think there is opportunity? do use think the rotation story will play out? choppy, use the shiller model. if you look at the new zealand market and go back to australia ,ith cash levels down to zero the self managed superfund sector are looking at the .ividend component it will re-accelerate from low levels and have a healthy alternative for some people. but the some rotation producemodity exporters , net worth, mccurry

prominenteen a institution. a quick snapshot. and mostrotation valuation is basic narrative. tenure rolling denominator. put your money -- 10 year rolling denominator put your money to work. david: right. thanks. service in washington is closing areas in and around the white house complex and

those areas will be closed until june 10. we will have an update. that is coming from the capital. that's up next. this is bloomberg. ♪

>> there is a growing frustration among african-americans that they are not living the fullness of the american dream. >> the most pressing problem we are facing right now is very high levels of unemployment caused by the pandemic. and that has inequality. >> we are in the middle of coronavirus and african-americans are dying in great numbers from what they represent in the state and nation. >> the people who are suffering the most both in terms of disease and loss of jobs are people in the bottom end of the

income spectrum. the net worth of an american family is $175,000. for african-american family, it is $17,000. >> you cannot explain away racism that it still exists. disparity still exists. tv discussingrg the issue of inequality in the u.s. this as protests across the united states have to continue for another day with a decrease in violence. the president tapping his attorney general to oversee the protest response. emily wilkins joins us from d.c. with the latest. we are getting breaking news regarding the secret service closing parts of the white house or areas around it. the closures will take place until june 10.

does this suggest we expect protests to continue and security measures to continually be increased? are going into the ninth straight day of protests when i think the trump administration is trying to figure out a way to continue to respond. you have seen protests become less violent. was morew last night peaceful than the previous night. we have seen an increase in lafayettesence and park was initially open over the weekend but now no one can get into the park at this point. tensionwe do see between the trump administration and local officials continuing to up the police force in the area what we see it continue on the protesting side.

people are still coming out and showing up and making sure to get their voices heard. latestemily, what is the with attorney general william trump, he said trump asked him to oversee the best response and continued response we are looking at. what is the latest? emily: this is a large part of the fallout. trump had the photo op where tear gas was used outside the white house. they were dispersed and the next comesyou know, trump through the peaceful protesters and poses in front of a church with the bible. that has been criticized by a lot of people on both sides of the aisle, most notably former defense secretary mattis, who had been in trump's cabinet until recently. he came out and condemned the move. so william barr is part of the response and blamed for one of

-- for being one of the key people for using tear on protesters. so he came out and defended his role in the incident. the choice made about it should be left in part to the federal government and how they want to keep the city safe because their federal buildings. haidi: what do we hear about the next round of stimulus? the white house wants a $1 trillion stimulus bill. this is the first time we have seen a number on it from the white house. there areto make sure provisions that will benefit workers, businesses, back to work tax credit for people returning to jobs, liability protection, these are some of the things you have seen republicans push for in congress but democrats want to see a lot more in the bill in terms of research and helping individuals and other items. wilkins with the

latest out of d.c.. plenty more ahead. this is bloomberg. ♪

tokyo reports 28 new coronavirus cases, the fourth day in a row of double digits infections. , theew cases him last week biggest seven-day rise since may. singapore warns of an urgent challenge from covid-19 of the coming months with sweeping job losses on the horizon. india has lost tens of millions of jobs resulting in low economic activity and the

biggest earning slump in six years. profits fell 15% last quarter. two thirds of members have reported so far with communications, energy, industrial sectors worst hit. china is vowing to ensure stability in hong kong amid tensions over beijing's control of the city. the says it firmly supports global financial center and recognizes the city as a territory separate from the mainland. the news comes as the u.s. reviews hong kong's financial status after china imposed new security laws. an activist defied an unprecedented band to mark the anniversary of china's crackdown in tiananmen square 21 years ago. thousands gathered with small groups a hearing social distancing rules. the numbers paled in comparison to previous vigils but the event is notable that the police

banned the gathering for the first time in three decades. global news 24 hours a day, powered by more than 2700 and analysts in more than 120 countries. this is bloomberg. david: let's talk about a trade deal between the u.s. and china. overnight bob lighthizer said he feels good about the trade deal with china and that they have honored this despite rising tensions with washington. claire reade. a pleasure to have you on the program. relationship.lex many points of disagreement. --far as the phase waited phase one trade, do you think

incentives are aligned? actions by the u.s. and china recently have stressed the deal in terms of viability. i think president trump looks at it in purely domestic political terms. nowtrade deal is here for and must mean both sides see advantages. in the coming months as we get close to the elections, we will have to peel away the noise. a it inevitable trump takes harder line on china approaching the elections? is anhink the trade deal interesting example of how the

united states and trump are dealing with china. i am betting trump looking at the election is concerned about velocity, where a plunge in the market trade deal goes by the wayside would not help him. also the farmer's expert teams are going to matter. farmers are part of trump's constituency, some of them. he may feel like he wants to bash china on one hand but he wants the trade deal to stay in place for the election so he does not destabilize his own base. what is happening in the rest of the united states is the obviousion of much more national security consciousness

steps by the united states to take measures ranging from sanctioning companies that added to a major sanctions list researchersting that might be taking money from china to looking at visas and thoseg down on visas for coming into the united states from china. pressures are intensifying in terms of skepticism. deal in thede middle stay or eventually become a victim? is it unusual or worrying that we have not heard news of

high-level trade talks that have taken place for months? with that be unusual in your experience? -- would that be unusual in your experience? >> the covid situation has thrown a wrench in the works. there have been indications from the u.s. administration that they are having conversations at high levels. lighthizermbassador is talking to leo cook and you are talking about deputy level and expert level interactions going on. for example, the u.s. agriculture exporters face a huge number of nontariff barriers trying to get exports into china. paperworksures and were making it impossible for these products to get into china. with a lot of work and a lot of

back-and-forth between the two countries, the products have seen an open channel and that lighthizer and the secretary of agriculture to issue a joint statement discussing the fact that this part of the trade deal was going well. it is wrong to say we are not seeing high-level contacts going on. it is possible trump wants to stay away, but not blow up the deal. so we have not seen anything at head level -- we have not seen anything at his level, but he has never been particularly hands-on. haidi: the outlook of global trade looks dire. total u.s. trade falling to the lowest in a decade. exports in april were down over 20%. with crackscern

due to theormed handling of covid-19 and worries over dislocation of supply chains we are set up for another step in the deglobalization of trade? >> you make a very good point because i think if trump looks as ae phase one trade deal short-term kind of deal he made for political reasons after the election, we are adding that and adding more tariffs potentially in terms of trade, which is not good. a globalroblems of slowdown in economic growth and problems of consumers not being able to buy because they do not have jobs and all the rest of it. so that is problematic. on top of it, i think we have policy oxen china -- policy

and the u.s.a growing skeptical of the value of reattaching global supply chains. the recent documents issued from the high level meetings in china made it very clear china is trying to continue aggressively down and a dependent pathway where they do not depend on foreign technology and companies to the extent that they can get themselves away from dependence. further, cana step global investors look at the hong kong issue divorced from a complicated relationship between the u.s. and china, and i what point would you say -- and at what point would you say we

should look at all bets are off? >> that's a difficult question to answer. businessman and a dealmaker and a pragmatist and he looks at things short-term. he also keeps hands off of large policy meetings and issues. he does not dig in with fervor. we are looking at someone who might be ok in some ways with not weighing in personally with regards to what china would be doing in hong kong. but the rest of the united congress andms of other members of the viewistration strongly this is essential for the united

states to step up to talk about the problems in hong kong that will arise if china pushes too far. it is basically saying the reason you have a goose that lays the golden egg is because china has kept hands off and if china changes that, it is china's goose, and china could kill the goose that lays the golden egg. we will have to see what happens because i think china views hong kong as in control of hong kong and lack of disruptive democratic uprising to be really critical, so in my experience when china sees this kind of critical issue, he may interesteday not be in what others are saying.

valuesause hong kong hope chinaink, i will walk carefully in this very dangerous space. we always appreciate your time. next, where the ecb is going all out an increase in emergency bond buying programs. we will discuss the details next. this is bloomberg. ♪

david: welcome back to the program. a look at currency markets now. euro-dollar -- eurosterling was a big 90 early -- was above 90 earlier. 109 on the tappan zee's currency. -- japanese currency. a bigger than expected increase in emergency bond buying program. unprecedented contraction in the euro zone.

perhaps an obvious story. >> they did not show any hesitation even though some thought they might wait and see how the economy does the next couple months but one thing seems clear is lagarde has shown she will do whatever is needed. pandemic emergency purchase program was expected to do 500 billion euros and urgency isms to be that the economy not responding to stimulus as easy members thought and she is trapped. members thought and she was trapped. a i can assure you there was unanimous view in the governing

council that action had to be taken in the face of the inflation outlook and given the mandate of price stability, action had to be taken. stressedght have but the price about inflation she says it will accelerate slowly this year and ecb only sees inflation at 1.3% by 2022. year to the second round of the virus hit it could be down 12.6%.

hasoming up next, sydney been open for business for about a week now. we will be discussing how the virus has changed habits for commute in australia, next.

this is bloomberg. ♪

>> take a look at the aussie dollar. closing in for the first time this year after six straight days of gains. weekly advancea

of over 4%. that is the kind of risk appetite we have surging back. futuresplied by steepening since march of this year. the economy continues to gradually reopen. haveschools and businesses reopened. now on thejoins us line. it has been an issue for a lot of businesses trying to figure out how to socially distance employees, but also getting them into work. paul: that has been a question and it is weird. ofcdotally, i see a lot .eople go by

my train station is pretty much year empty. inbe everybody is getting their cars and commuting, but there is not a lot of evidence of that either. emergency temporary part -- car parks are pretty empty as well. there isplaining it, the elevator problem. it would have added a major choke point, but it does not seem to have made a lot of different for many businesses. so close together, some companies seem to be making their own policies. keeping some staff at home permanently. one of the big for banks is looking at a long-term shift for people working from home.

could be many answers to this question or none at all, but what prompted people to come back? normalize in australia. significantare knock on effects. down tobly comes companies like westpac as well. as to what it means, head of leasing, they have said the office is dead, but return has been slower than expected. for cafes andean restaurants? what does it mean for all of those jobs and landlords of

those places? easing pressure on public transport. seeing the start of a long-term shift. we will have to wait and see. >> paul allen live for us there. soared as much as 50% as the carrier capacity will increase dramatically next month. flights.ose from 2300 this month. of what it about 40% was a year ago. they are team to get back in the air. routesg to offer more through their hubs in abu dhabi and dubai after lifting a suspension. by monday, june 15, the biggest

carrier will add 29 flight. it will add 20 cities by do , they are for now banned from entering the uae. service. delivery consumers largely stuck at home by the coronavirus. boosting the area of operation. to the are pointing open. we have this exclusive interview with one of asia's biggest apparel makers. sixroduces one out of every men's address shirts. the market opens across the region and it is time for some tennessee. not the booze.

-- hennessey. not the booze. that is all coming up, next, plus the open. this is bloomberg. ♪

[no audio]

>> welcome back. let's have a look at market. 20 minutes into the session. out it isre pointing not the greatest start to the week. about 4% measured from friday. a good two week stretch for equities. look what it has done to japanese equities. what it has done.

we should be getting it back any moment to get a look at that. things like the forward multiple. at 16 timesrading earnings. everything is expensive anyways. relative to peers. let's get more analysis on this , the headin our guest portfolio manager there. a pleasure to have you on the program. >> we are doing very well. you to date, the index in yen terms is down about 6%. take. your

i things cheap or not cheap? what is the assumption to make? seeing an economic reality. thanks to they fiscal support. our investment philosophy is to invest in high-quality companies in japan that can grow regardless of condition. there are 3000 plus different companies out there. there has to be at least a handful of companies that should do well, but there is always opportunity. >> he can say the rest of the world is trained by central-bank action, but the boj has been taking extraordinary monetary policy for some time. has the fundamental condition changed?

policy in 2013 definitely provided support for the market. what i have been arguing is that there is enough liquidity in the system already. the problem is that the quiddity is not circulating. that is why we have been saying that we need the government to relinquish through structural reforms. structural reforms is long-term. i think we have a very reform minded and progrowth government in place. long-term, we think we are optimistic. tell us about some of those things that you have conviction on. >> sure.

brand. a very well-known it does not need any introduction. the franchise is strong. the stay home consumption is a good thing for the franchise. elsewhere, we are basically long-term investors, so we are not discussing this year's upload. companies like automation. japanrgest market cap in now. penetration rate in japan is only 9%. maker is aparts dominant player in the high-end segment.

these stocks that you mentioned, you own these stocks, right? >> we believe they will be beneficiary in the post-pandemic environment. david: to the broader market. mainly, the reason why you are looking at this specific stock is because he believed the topix index is largely inefficient. inefficient?s , first ofmean by that all look at the index topics. unlike the yuan, it is pretty much dominated by large, immature, no growth enterprises, financial, utility or other companies.

you look under the hood and there is a lot of growth opportunity. you do not want a vulnerable index. japan, forstor case, many people is black box. end becausehave an we have local experience for over 30 years now. >> super active due diligence is more key than ever when you are talking about japan and in the environment that we are in. >> most corporate executives are trying to write off 2020 as a year of aberration. about, whename way

are we going to have l-shaped recovery or v-shaped recovery? you have to have a diverter concentrated -- a better concentrated portfolio. i do not have any specific insights into how the entire economy will perform this year. over time, i believe will return to normal. juliette: -- haidi: are we going to see a reentry when it comes to foreign investors? >> i think so. prior to the virus outbreak, 2019, corporate profits rose in tandem.

and so, the market reflected corporate fundamentals. hello? hello? much forank you so joining us. we will have to leave it there. let's get a quick check on the latest headlines this hour. slumping inmate trade after it initial billings. an indication that it is not benefiting from the work from home area. to strengthen its position during the coronavirus lockdown. it is a combination of a chat room and automated workflow platform. plan.ing its

owner on thetton open market, even though it is trading at a discount. the market,elies on making it more vulnerable during the fallout and ongoing protest in the u.s. investigation for alleged money laundering. potential violations related to third-party lending. this is possible retaliation against whistleblowers. it is one of the most profitable casinos in the world. next, we will be speaking exclusively to one of the biggest manufacturers with a staff of more than 20,000. roger lee will be joining us next out of singapore. this is bloomberg. ♪

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david: this is daybreak asia. bannings in hong kong the anniversary in tiananmen square. adhering to the social distancing measures. it paled in comparison to other vigils. police banned the gathering for the first time in three decades. the people's bank of china is bound stability amidst rising tensions.

hong kong asupport a global financial center and recognize them as a custom territory separate from the chinese mainland. china imposed sweeping new security laws. costing india tens of thousands amidst the biggest earnings slump in years. followed by data compiled by bloomberg. two thirds of the members have reported with communications, energy and industrial the worst sectors hit in the country. over to japan, tokyo reporting eight coronavirus cases, the fourth day in a row. 128 new cases over the last week.

warning about an urgent challenge from covid-19 over the next few months. hasalaysia, the country recorded its biggest daily rise in cases since the pandemic first erupted. tim bray factory closures hitting low lit -- low-wage workers across asia. lengthing supply chains to china as well. let's get over to singapore. a.er lee is one out of every six in the world supplied by the group. we appreciate your time. can you give us an indication of how the pandemic, restrictions and some of the supply chain have affected your business?

>> good morning. it started back in march when u.s. and europe started going into lockdown. we forecasted the rest of the year from april to december to be down about 50%. this was back in march. today in june, we are seeing those numbers, realistic numbers. whole to look at our manufacturing for rent to see if we are at capacity. we had to make long-term decisions to close down certain factories, in the hope that when we recover, the move to cheaper locations in the future. on top of that, we decided to go into ppe, personal protective equipment. haidi: talk about some of these

longer-term but -- business decisions you have to make. in ethiopia, vietnam and thailand as well. a diversion away from chinese factories? where would the store closures be, based on cost and risk? we made a decision five years ago to reduce our exposure in china because of a rise in cost. we do not have a big exposure in china. we started in ethiopia three years ago. we will continue to move to lower-cost factories. i think this has accelerated that, by making people like us .ake long-term decisions now us tohas really forced make some tough decisions, given the significant downturn that we

have seen. david: in terms of annual capacity, 55 million garments capacity. how much are you using right now? atin june come of your using -- about 30%. it has been a big drop. it is a significant drop, but we have managed to replace making garments by making face masks. about 50 million masks total. hopefully, that will continue to grow. is in the interest of demand. of where demand is coming back, where are you seeing orders pick up and not picking up? think the first week of june, a lot of stores are slowly opening up.

it has been slow. . lot of retailers in the u.s. has been very slow in the u.s. and europe, where we supply most of our government to. -- garments to. are there partners you have worked with in the past that are not likely to survive. >> i think so. the plan -- we planned to be

down 50%. they did not make the cuts necessary back in march. during lot of overhead this time period when you are not opening retail. it is a significant cost burden. you has seen several companies go to chapter 11. -- we have seen several companies go to chapter 11. haidi: about 70% of your business goes to the u.s. obviously, it will be a shorter-term thing. what kind of move would he make in terms of new products and new markets? that the personal protective equipment business, even if there is a short-term spike, it could be a long-term

business. back to your question on the garment side. we think that markets will continue to rebound. unfortunately, due to any crisis, there will be situations where small or medium will not be able to survive. a lot of small manufacturers will disappear. i think supply will consolidate with people will survive. i think we will be one of those to survive. david: on that point, let me ask you -- i need to ask this question. given that you just mentioned you are operating at 30%. i would imagine cash flow is an issue for you because it is an issue for many of your customers. your company is ok? >> our company is private and we

have had a frugal financial plan for many years. we have a strong enough balance sheet to whether through this. at 40%business remains forhe previous order -- 50% the next three years, we will still be fine. we have done sufficient planning to make sure we are at the right cost space, that we can survive even after such a huge reduction in volume. david: roger, thank you for making time for us this morning. we appreciate having you back on the program. roger lee there. we are talking oil. toc-plus is set to ask then prop up the oil market after a breakthrough in high-stakes negotiations. we will have the latest on where we are those talks, next.

this is bloomberg. ♪

david: welcome back to the program and good morning. let's get a brief check of the equity markets. last session of the week. just under an hour away.

brad pretty much across the screen. not a screaming rush to the exit every single day this week, more in fact. some of these markets overheating. valuations are not exactly precise, as well. you understand why investors are doing on the fence. haidi: yes. let's take a look at oil futures. this is what we are seeing in the crude market. newse getting potential that opec-plus is that takes and after a breakthrough with iraq. is this sustainable optimism? su keenan is on the line. up until now we have had areas discord between opec leaders and

opec cheaters. uncertaintycord and about the meeting -- we did not have a date and now it is maybe this weekend. it rankled a market a little bit. that crash back in april, many believed that an agreement to extend the output cut will be critical. arabia,russia and saudi the opec leaders, putting pressure on iraq, nigeria and others that have exceeded their production quotas and may. may. in brent crude, it has been able to hop back above $40. the agreement still needs to be verified, which means opec will continue its levels until the end of july. the rebound in oil prices has

helped to revive the fortunes of major energy companies like exxonmobil and shell that were significantly hurt by the crash. it could have brought billions of barrels onto the market, undermining that tentative recovery. as you saw, oil is a little bit weaker. straight for the sixth week of gains. guess part of that story was the news out of american airlines. why did we see a boost there? airlines said it compared to what we are seeing now.

consumers are eager to get back into travel. it certainly signals that there is a return to travel much greater than anticipated, so we project saw a big jumps jumpw york -- we saw a big in projects in new york. it would still be only 40% of capacity from what we saw a year ago. i want to point out that we are starting to see u.s. oil analyst and investors pour through some of the inventory data and finding discrepancies. there is a possibility that the government may have an over accounting for oil supplies. bullish list to the market. perhaps some of the numbers do not add up. back to you. david: su keenan, live out of

new york. a couple japanese names trading. rising after what sue was mentioning. low,y coming up, a low, low base. things are improving for a lot of airlines. in late aprilmps was probably the bottom, and hopefully it was because it was pretty much at zero. some gains for the friday session. iea hason oil, the spoken about the challenges for the most vulnerable crude producers as they recover. telling bloomberg best some countries are better positioned than others to meet any supply cut. recovery ofgradual

the oil markets for three reasons. largely better than previous months. number one, demand recovery. number two, opec-plus agreement, perhaps not full, but a large extent compliance. ,hree, not much talked about but very important. a steep decline in u.s. and other countries, where the markets are run by private companies, private oil companies. , if we do notry see demand recovery continues. if we do not see about plus agreement-- opec-plus showermay well be a cold

on the gradual recovery of oil markets. it is the reason i say do this or do that. the three factors need to continue in the next few weeks or months to come, if we want to see a recovery of level oil markets. global oil markets. >> going into this meeting, it seems like saudi arabia and russia are on the same side. they really want to clamp down on the cheaters like iraq and afghanistan. it will be very hard in terms of these production cuts. is it possible for iraq and nigeria to cut production and not cheat? >> i cannot say that they should do this or that, but not all

producers are in the same category. some of the producers have much stronger reserves and stability. others are politically and economically much more fragile. some of them were hit by the pandemic more than others. you mentioned iraq. iraq is a new government. a very promising government. i hope that they will deal with the problems they have in front of us under difficult conditions. one of them, just to give you a number, 80 percent of imac's budgets comes from oil revenues. levels, theyice are only able to pay half of the salaries of the government employees. money for health

services, education and others. therefore, those countries, iraq nigeria was angola, hit twice, one because of low oil prices and second, the bulk -- oilnigerian index prices are affected by that. withrent countries different challenges in front of them. top and nigeria are at the with the more vulnerable oil-producing countries category. iea executive director speaking at a live event earlier. coming up next, chinese internet provider pushing ahead with hong kong shares sale.

this is bloomberg. ♪

haidi: let's get a quick check on the latest headlines this hour. investing more than a billion dollars into its visual arm. the back to wealth fund would take a 2% stake, raising total equity value to around 65

billion. they have raised $11.5 billion from global investors, including from facebook as it prepares to list. amazon is reported to be tosidering a carrier with up $2 billion. amazon is in early discussions over 5% holdings. buying intobeen india with facebook taking a holding. microsoft reportedly weighing a similar move. david: friday is not off to a flying start that we had for the most part of this week. put it together and we are the lines 4% despite that we are seeing now. of the hong kong

dollar, the are trading toward the stronger and -- end. essentially on the fence. we will talk about what the ecb did overnight, exceeding expectations. modeston track for a start to the chinese session. features down about 30 points, traded over in singapore. let's talk about the ipo story in hong kong. next week will be big. jd.com filing for its hong kong shares. week.out of next the offering comes amidst the political potential threat to chinese companies in the u.s. we are joined by capital markets reporter to talk us to the latest of these stories.

where do we start? what does this mean for the market in hong kong? definitely a good time for these deals to be coming to hong kong right now. there are tensions between the u.s. and china, casting a bit of a shadow. block fromoved to investing in chinese stocks. kongg back to list in hong is good for hong kong as a future and financial hub. it comes under a shadow given the national security law. the markets have sunk a bit since china said it would impose that law. hong kong has also been trailing in terms of ipo volume. it was the world's number one

last year. right now it is not even in the top three. could this be the start of a trend as we see more companies coming home? >> it definitely could be. there are others in the pipeline that have been reported. of these companies have apparently hired banks and are gearing up for listings. there are others that could come as well, especially if the u.s. -china tensions keep on escalating. the outlook for chinese companies is not very good. we really appreciate that. says we could see a bounce back in hong kong. that is about it for daybreak asia. our coverage continues as we

look ahead to the start of trading. a mixed picture in it comes to trading. china open is almost upon us. this is bloomberg. ♪

tom: it is 9:00 a.m. in beijing. welcome to "bloomberg markets: china open." i am tom mackenzie with yvonne man. top u.s. trade negotiator says he is happy about the deal with china despite rising tensions between washington and beijing. asian markets hope to finish the week higher. concern the rally has gone too far.

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