>> good evening from bloomberg's world headquarters. we are counting down to ages major market open. >> welcome to daybreak australia. here are your top stories this hour. the fed sends an ultra dove us message that policy remains unchanged. jay powell says rates will remain near zero through 2022. global virus cases continue to rise as u.s. infections alone nearing 2 million. texas records its highest jump

since the death -- since the disease emerged. the causing severe damage to the global economy. it also says australia is leading developed nations through the economy. shery: let's get a check of how markets are trading. we are seeing u.s. futures under continuous pressure. the futures session right now. this after stocks fluctuated throughout the day. we had the risk on tone fading. this is economic projections pointed to the long road back to normal. we had the s&p 500 falling half a percent. finishing lobar display chair powell suggesting the pandemic could inflict permit damage on the american economy and despite the fact treasury secretary mission says the u.s. definitely needs additional fiscal stimulus so we could see more measures from the u.s. government. the nasdaq composite was higher

by seven tencent 1%. a similar mixed picture we saw with tech stocks rallying. the nasdaq 100 climbing to a record high finishing above 10,000 for the first time. take a look at what the dollar is doing because we have seen continued pressure on the dollar. the most since 2007. this of course coming as the fed rejected no change in its interest rate policy through 2022. we had treasuries rallying. the 10 year yield sinking. we did see there being a risk of long-lasting damage to the economy. we had investors seeking the safety of treasury. oil down 1.6%. around the $38 a barrel. we had more news. just underscoring the fragility of the rebalancing story. fragility is a theme going into the asian open as well given

what the fed said overnight and the reluctance to add more if not withdrawal any more measures. we are seeing a downside when it comes to the early part of the kiwi session. up by three tens of 1%. sydney futures look like we will be setting up for a slump of close to one and a half percent. it is noteworthy despite the downside we are seeing a stronger theme of rotation into domestic value stocks than we have elsewhere. that is a theme we have been talking about globally. switching over to japan where we are seeing a flat stop. nikkei futures in chicago and the yen holding at 107. will be watching the strength. just a quick look when it comes to gold. todid have gold continuing climb in that session after the fed stayed dovish. the u.s. dollar resuming weakness after the nine or eight sessions and ending flat. we are back to those lows when

it comes to the bloomberg dollar index. shery: let's delve deeper into this top story. the fed did not make a single policy change. our global economics and policy editor is here with some powerful words from jerome powell. what did he say and how is it backed up by his colleagues? >> it interesting because fed chair powell has been saying since the emergency meeting in march the fed was going to keep the rate near zero until the economy is back on track. for many people, that was an extremely dovish stance. obviously, markets wanted to hear more. when jayidance today powell said he will keep the key rate near zero not just through the end of the year, until the end of 2022. here's what he said. >> we are not thinking about raising rates. we are not even thinking about thinking about raising rates. will be thing about is providing support for this economy.

we do think this is going to take some time. i think most forecasters believe that. >> i love that. we are not even thinking about thinking about it. let's go into our dot plots. the fed had not released its summary of economic projections in march. we have not seen these since december. now what we are seeing is amazing. you can see 2021. those are two years where there are not going to be any rate hikes. 2022, end of 2021 or there are two people on the fomc. two of 17 were going to be raising rates by then. i would call it ultra dovish from the fed. their minds were not changed by the strong may employment report. it was the biggest surprise ever. it shows how uncertain everyone is over the economy. thanks to the unemployment rate down six and a half percent this year, a 5% rebound next year.

the fed also signaling they say more needs to be done. people wondering, could you clarify your bond buying plans? 40 billion of mortgage-backed securities a month. they said they are doing this to keep credit flowing to households and businesses and to sustain smooth market functioning. they are going to keep liquidity and more stimulus going into the economy. clearly some good news on the economy. we are near enough to a race. who do billion people not have 20 -- 22 million people do not have jobs. haidi: the issue of racial inequality in the economy, how does powell see the fed taking a role in making this change? >> it certainly came up from reporters. he did say the rise in joblessness is particularly severe for african-americans, hispanic workers and women have

taken it on the chin. he also put a statement in his prepared remarks. this is a very important -- this is very important he went out of his way to say there is zero tolerance for racism at the fed. when i say there is no place in the federal reserve, there should be no place for in our society. it stands out like a sore thumb and has for years. 12.4%.mployment at the fed may not be able to change that exactly, but he still signaled an awareness and willingness to make the strongest economy you can see can get the most jobs you can. haidi: our global economics and policy editor kathleen hays. we will get back to kathleen in a moment. we will be joined by the former atlantic fed president. kathleen will be staying with

that conversation. some breaking news crossing the bloomberg when it comes to the magic kingdom. we are getting lines out from disney proposing a july 17 reopening date when it comes to disneyland in california. plans for thee reopening in july. disneyland resort proposal will begin a phased reopening on july 9. theme parks have a proposed reopening day of july 17. we have seen the cautious reopening when it comes to disneyland in shanghai with the social distancing measures. we also heard last couple of days disneyland in hong kong will be reopening in the short-term and we be getting announcement on that shortly. let's get you a check of the first word headlines this hour. president trump's top a comic advisor says he does not see systemic racism as a problem.

he said the white house are looking at possible reforms for police behavior. the president is expected to address historic disparities in america before a fundraiser in dallas on thursday. george floyd's brother called on act.ess to the oecd says the coronavirus pandemic may cause a global slump of 6% this year even if infections continue to receive. it also says that kingdom will be hit harder than any other leading nation with a decline of about 11.5% and the loss of two a 5 billion jobs. the organization warns a second wave could mean a worse worldwide contraction. second wave of coronavirus cases starting to emerge. texas reported within 2500 new infections. that is the highest one-day total since the pandemic struck. texas has seen four straight days of new infections while the latest countrywide tracker puts u.s. virus cases at just a

fraction under 2 million. or than 112 thousand people -- more than 112,000 people have died. tokyo says it was a bullfight next year's olympic games. have agreeday they on a basic approach to make the event more simple. within 200 subjects have been identified as potential candidates. they did not say how much expenditure would be saved if any. shery: still ahead, starbucks is predicting a more than $3 billion hit from the pandemic. we will discuss plans for a new cafe later. this is bloomberg. ♪

>> prepared to do what it takes verytay the course with a expansionary accommodative policy stance.

>> pretty clear they do not see any need to pull back for any of those financial stability concerns. that is a reinforcing zero rate policy. >> basically the signal was we are not going to let companies fail. you may as well get involved. >> even though he does not want to undermine the economy to deal with what might be a bubbling equity market, there is at some point he has to think about what does that mean for broader financial stability? they are not there yet, but i would not be surprised to see them get there later this year. >> just because a lot of benefits are building to shareholders because what it cares about is maximum employment. part, fed will play its but it is not the only game in town. i am not sure it is the premier game in town at this point. shery: those are some of our guests reacting to the remarks

we heard from fed chair jerome powell. let's bring in a fed official who weathered the crisis. from dennis who finds us atlanta. we will also be bringing our kathleen hays into the conversation. thank you for joining us. we surprised by the extent of fed chair powell's comments in terms of putting it out there that this is where we will be at for years to come? >> i watched the press conference this afternoon. to my eye, he was a bit more animated than typically a central bank or is in emphasizing that the fed is going to stay the course here. i do think he talked about a tough job ahead, particularly getting the unemployment rate back down to where we had it earlier this year. they may be a multiyear process.

i think there should be no question in people's minds that the fed is going to stay the course here with accommodative policy that is going to support -- conceivably a fairly long-term process of bringing the economy back. haidi: everyone wanted to know about where the state of robust discussions behind the scenes are. he said this. they would open discussions been no indication as to effectiveness. is that something the fed should be considering as the economy reopens and there is a suggestion a could be effective rather than further blowing up the balance sheet if they need to do more? >> i think this was a discussion meeting in some respects. a planning meeting. they always have to work toward consensus on how they are going to the play various policies.

in this meeting, they are looking ahead and anticipating multiple scenarios in terms of the evolution of the economy. probably do not yet have a clear consensus on whether to do for example a rate cap are exact -- rate caps or how to express forward guidance. i'm sure they had a thorough discussion of that. for are in fact pausing this meeting and perhaps the beginefore they actually to use some of the other tools in their bag. powell,ems to me jay his forward guidance was very clear when it comes to the economy. that forward guidance, is that come back to bite them? two and a half years, we are saying we are not going to hike

rates. how weak does the economy have to stay? at what point in a year or so do they say, i guess we could remove some of the stimulus. they are in a tough spot potentially. >> they did not guarantee it. they basically -- i think if you were to probe powell and others, they would say, are policy statements are always conditional on how things evolve. recklessly there is a much better outcome in the economy, they will reconsider. the factno guarantee -- the policy rate will be a zero for 2.5 years. as they see things now, that is the way they are thinking. >> i'm glad you pointed that out. even with the dot plot, that is how it is. you were a banker. you had a long career in the

u.s. around the world. aboutormer banker, what your concerns about a possible stock market bubble? your concerns about people taking on more debt, more leverage? the fed are going to keep buying bonds. money is almost free. go for it. crisis withnto this pretty high debt levels. the private sector was fairly high. they leveraged. now we have had a real drop in demand. many companies are reeling at the moment. i think it will be very interesting to see what the take-up is of this main street lending program. i think a one-way you might look at it is companies are going to be reluctant to add debt. they're going to get to survival mode in other ways and work their way through this without adding more debt shade that

remains -- more debt. that remains to be seen. debt levels are a concern across corporate america. -- haidi: arey they getting to a point where they are flirting with moral hazard? we heard that suggestion a few days ago. have they with the language and this narrative back themselves into a corner where they are not willing to rock the boat? you know, in my experience when i was at the fed and certainly under jay powell, i think it is clear they are going to stay focused on their mandated objectives. they're going to stay focused on the real economy. they are going to follow the financial economy or the financial markets as they effect -- as they affect the real economy and not make policy that ondesigned to have an effect

asset prices one way or the other. in the press conference, today, powell emphasized that. he issued the idea they would undertake policies to try to affect asset prices. in that sense, policy is uncoupled from how equity markets particularly are going to go. the concern would be a financial stability concern if there was an and norma's selloff of -- an enormous selloff of some kind. >> people talk about yield control. we talk about asian central banks. yield curve control, you need to put a yield -- a cap on yields because you are issuing -- you are issuing so many bonds? economies got in some cases pretty much crushed. do you think that is going to

guide the fed? is that such a big concern for the fed that you have to keep the yield low because otherwise it will cost you a lot more money to finance a much bigger deficit? >> i do not think that is the foremost issue in their minds. i think the consideration of yield curve control relates to maintaining financial conditions across the whole spectrum of interest rates that are adequately accommodative to support the recovery. i would view yield curve control, which may be implemented. asetimes later this year similar to the qe after the financial crisis of 2008 that was to keep control of long-term interest rates to support housing, to support the auto industry and disney's

investment. capping interest rates -- and business investment. capping interest rates would be another way to do that to ensure the markets do not take those rights far away from where the fed wants them. haidi: always appreciate your time with us. the former president of the atlanta fed. we will have a lot more analysis on the fed ahead. plus, we will be speaking with morgan stanley's chief u.s. economist. that is in the next hour. you can get more on the fed in today's edition of debris. available on the mobile on the bloomberg anywhere app. coming up, a second virus wave could be emerging in the u.s. why medical experts say surges cannot be directly related to reopening. this is bloomberg. ♪

shery: signs of a second virus wave emerging in the united states. localized surges are alarming medical experts even though the numbers are massed by the overall case count. the bloomberg health care reporter joins us. where we seen the outbreaks? for having so much me. we are seeing the outbreaks in parts of the country like arizona as well as florida, texas and california. i think it is worth noting this is something we have been looking out for. the u.s. has been relaxing restrictions in different states for several weeks. it was sort of expected case count were going to rise because people are leaving their houses, they are going into local businesses, they are going into work. thesenumbers and particular states are confirming

experts because there is emerging evidence of a second wave. some of these are places like california that have already been hit and are seeing new surges in places like los angeles county for instance. it is definitely something to continue to monitor although this is early evidence. it is something decision-makers need to make decisions with. there is emerging evidence this may not be linked to reopening with state activity? so what is really interesting in terms of the pattern here is some of these states were among the early we openers in the u.s. arizona wereexas, early places to relax their restrictions. then we have also seen for instance in georgia, which was the first state to reopen in the u.s.

at the time, this produced a lot of alarm by experts who said this is way too early. even the president said i am not sure i approve of this. ist has happened in georgia numbers at this point appear to have plateaued. there is some kind of difference in terms of location in terms of how the local culture is around these precautionary measures like social distancing and masks. there is also increased testing. some parts of the country are saying we are finding more cases because of increased testing. experts are not sure that is what is going on. in some of these states, it does look like the case counts are rising beyond the increased level. court, our bloomberg health care reporter with the latest in the united states. coming up, markets web lashed. -- with lashed.

this is bloomberg. ♪ you say that customers make their own rules.

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get a $50 prepaid card when you switch. it's the most reliable wireless network. and it could save you hundreds. xfinity mobile. haidi: u.s. stocks whipsawed in a volatile session as jay powell so just of the coronavirus could inflict long-lasting damage on the economy. he signaled race would remain near zero for possibly years to come. let's talk about the locations with dune thorne. great to have you with us. what we are hearing now is we will continue to see liquidity, more money into the markets. we have already seen this urgent asset prices. what does it mean when it comes to risking -- risk and portfolios? dune: nice to be with you today. it is a good question.

we are really focused on risk in clients.s for our what we heard clearly from the fed is that they are fully engaged in making sure that there is a strong bridge in place to build back our economy. these are unprecedented times. this is a manufactured recession. and that the government really shut off our economy. we need it. it was needed for our safety, for our country's health. but it was not triggered by a banking crisis. it means these are times when we have to think about how we come out of this. that means that there is significant risk because of that. that these are times we have not lived through before and we have to think about it with our clients. it is hard when in typical environments, you do risk portfolios by moving into cash or bonds. with rates where they are today, it is not necessarily the best way to do risk a portfolio today. we really have to look at de-risking and other ways. in many ways, it focuses on

fundamental research of the equity allocations in portfolios. and to look at not just de-risking through asset allocation, but de-risking through investments you hold. haidi: to your point, we are seeing that liquidity, especially when it comes to this tech stocks. this gtv chart on the bloomberg showing how the major tech companies have seen this rally. 30% above its 200 day moving average when it comes to this index.ega cap attack we have seen a divergence whether it is growth over value, large-cap outperforming small caps, how do you take advantage of this? dune: it is a really good point. we have seen many of these factors in play. just as he mentioned, -- he mentioned. -- just as you mentioned. it gives you a real opportunity in a portfolio. it enables you to look not only sectors overall, but to look at

the underlying companies within each of these. and to find opportunities. for example, you look at a company like tyler technologies, a software company in the sector you mentioned. they are selling software at a public sector. not one of the banks we hear so much about. they have a focus on helping local governments operate more efficiently. and they have a competitive advantage in that they are creating an end to end a solution and replacing six or seven software solutions, many of which could be 20 plus years old. they handle everything from 911 calls to court filings. there is a real opportunity there, that they are helping local governments operate more efficiently. frankly, this is a time when so many governments and companies need to shift online. need to operate more efficiently. work --shift to more more remote work environments. we are seeing a company like this where they have a

interesting opportunity with so much changing. you look at in texas, it think it is 254 counties that are using their solution. they have eliminated over 27 million pages of paper. that is good for the environment and really good for the bottom line. we are looking for companies like that, a very active riposte -- approach with fundamental research, backing the investments we are making for clients. reliance online, etsy, which i is found really curious. do you think that will be a theme that will continue to play out post pandemic as shops reopen and people get back into regular life? and why etsy versus a myriad of other players within that small business e-commerce space? dune: etsy is probably not a name you are hearing as much as some of the other major online retailers. clearly amazon at the top of that list. we it is a company that

think is well-positioned right now. forany ways, a marketplace independent sellers, you would not think would be able to navigate the markets particularly well, given people are focused on must-have items versus need to have items that are part of what etsy is selling. they really have shifted. they have a strong management team in place. they've seen 4 million new buyers coming to at cu to buy masks. they have reengaged two and a half existing customers. 32% of the customers have come back, repeat purchases in 14 days. they really found the opportunities and this market to reengage with customers, and they are seeing repeat engagement in customer purchases through that. they have also done a lot to focus on the financial side of the business and moving costs to be more variable. whether it is shifting to the cloud, thinking about variable marketing costs. we are seeing that improve the

bottom line for etsy. there is also a great story for etsy. the environmental social governance factor are becoming more and more important today. we are hearing from our clients and in the conversations we are having from other investors. etsy has made a strong push in this area. they are the first global commerce company to offset 100% of their carbon emissions. they are on track to reach a goal of empowering their global operations at 100% renewable electricity by 2020. gendere a leader now in diversity with 50% of their board, 67% of their executive team, 38% of their technology team being women. there's a lot of factors at play for etsy. we think they are positioned well today in this environment, but also as we come out of the covid crisis as well. haidi: we have been looking a lot to the broadening of the rallying in the u.s., with sector rotation, rotation from mega caps to small caps. but is not a story that will play out quicker and more

convincingly in asia? is this a time where we need to look more at domestic stories within individual stock markets? it is reallyk important to think globally as investors. think particularly china. what we are seeing is an acceleration of trends that existed before the covid crisis. we are seeing it play out strongly as china emerges from the covid crisis. trends like social networking and increasing move to online retailing. are at home now, we are seeing this stay in place and china's coming out again and moving out of their homes. there is also some really interesting growth on the software side, particularly around cyber. our focus on china is thinking about the domestic consumer, with a geopolitical risk in place, we want to make sure we are keeping -- thinking about opportunities focused on local demand and not dependent on

demand for the rest of the world. dune thorne there with us with her trading strategies and ideas, we really appreciate your time. we are getting breaking news. saying japan is considering allowing business countries. four japan would enter this proposed plan and allow 250 travelers to enter per day. yomiuri.according to .e . 250 business travelers to enter the country per day as japan emerges from that emergency lockdown. the oecd is the latest to come out with a grim assessment of the world economy. it is warning growth will contract 6% this year. that's the best case scenario. they say the second infection

wave could mean a 7.6% plunge. secretary general gave us his outlook. vaccine or aave a medicine, we are in danger. so obviously, the focus has to researchelerating the in order to get the medicine or the vaccine as soon as possible. haidi: in the meantime, when you look at the economy, do you worry about deflationary pressures? angel: no. not the time to worry about inflation. right now, you throw everything you've got at the virus. you hit it, you kill it, you win the war against the virus. you throw everything in terms of finance, in terms of budget, resources, in terms of health resources. because the sooner you beat the virus, the less expensive the recovery will be.

and also you will be able to cure the consequences of the virus itself in terms of unemployment and other sequels that it will leave us. >> good morning from new york. i'm absolutely fascinating -- fascinated at what they are saying at oecd about the amount of fiscal stimulus as compared to gdp. the variations are extraordinary. who is getting fiscal stimulus right? is, that inuestion many of these cases, what you stimulus is, to a very great extent, guarantees liquidity loans. and therefore, those will not become what i would call. deficit numbers. . where they will not become fiscal officially until there is some kind of payback or in some

cases, the facilities are built to become deficit to the extent that the companies can maintain the employment. those are meant to become basically taken up by the government. but in many cases, in most of the cases, these large amounts, 25%, 30% of the gdp, are meant to be paid back to the banks or to the development banks. and they are only guaranteed by the government. the numbers are not comparable in that sense. if you take what i would call the hard expenditure measures, then that changes all over the place from very little, to very large. -- you are truly one of the experts in the world on latin america and indeed, the challenges of south america.

the pandemic statistics from mexico south are horrific, led by chile which is simply falling apart. what does oecd think needs to be done to assist a greater south america in turning around this crisis? all, they need to be aware, and that means the leadership has to share these views. they have to act accordingly. and within the constraints that they have. within the constraints. this is very important. to then apply measures like confinement, social distancing, etc. solvedstion will not be until we have medicine or we have a vaccine. but the problem in latin america, the problem in africa,

and the problem in asia, is that you have -- it is very difficult to confine these people. they live in very close quarters, close proximity. they have to go out every day in order to make a living. that makes it more difficult. shery: secretary-general angel gurria. they also peg australia to lead us out of this recession. we might be seeing that play out in its markets with domestic stock surging. investors are making the great rotation into value. that's next. this is bloomberg. ♪

>> you are watching daybreak australia. the federal reserve is pledging to maintain its current asset purchases and interest rates to zero. jay powell is committing to using all the bank tools throughout the u.s. economy recover from the coronavirus. the fomc says it would increase its holding for treasury and mortgage-backed security to sustain a smooth functioning in the markets. meanwhile, china is buying soybeans from the u.s. to fight tensions with washington over the virus in the future of hong kong. sources say state and private organizations brought -- bought cargoes this month with three in the last waiver hours. there are fears that worsening relations could hurt the phase one trade deal. leading aggie trader says the

deal remains on track. germany is stepping up pressure on israel over plans to annex more of the occupied territories, calling for a new attempt at big negotiated deal with the palestinian authority. with hisinister talks or his -- with his israeli counterpart and will have a meeting at a later date. germany says annexation of a more west bank land would not be compatible with international loan. the oecd says australia is leading the developed world out of the virus triggered recession, that governments around the globe must institute wide-ranging reforms. the group warned the government not to pull its emergency spending too soon, advising more stimulus may be needed to boost income and cut unemployment. the oecd wants reform for taxes, regulation and capitation. global news, 24 hours a day, on air and on quicktake by bloomberg, powered by more than 2700 journalists and analysts in over 120 countries. i'm karina mitchell.

this is bloomberg. optimism about the economic outlook for australia means a rebound in value stocks. jackie edwards. why are we seeing a rotation into value stocks so much stronger compared to the likes of the u.s.? this has to dof with index composition. in australia, value stocks make up a huge bulk of the index. particularly banks. banks have been surging in the last couple of weeks, on hopes that the economy will recover quickly from the coronavirus. shery: tell us a little bit about specific stocks or sectors on analysts flagged as potential winners out of this value rally. jackie: analysts have discussed several sectors and stocks that could be potential winners in this rally. andexample, energy stocks consumer stocks have fallen

quite a bit since the pandemic started. they are really far off from their year to date highs. they have more ground to gain flagged.have been as potential winners on the other hand, you have stocks that have fallen quite a bit from the february market high, but have seen quite substantial earnings downgrades for as far out as 2022. those stocks have also been flagged as being potential winners in the shift to value. -- how long dot we expect the global rotation to value to last? has been said, the main risk to this rally is that governments start to paper or withdraw stimulus too quickly. this is a rally dependent on ongoing stimulus efforts from central banks, from government policymakers, and for this rally to continue, you really need

that stimulus to be maintained. shery: australia stocks reporter sydney.dwards there in if you are away from a screen, you can find in-depth analysis in the date -- in the days big newsmakers on radio -- bloomberg radio broadcasting live from our studio. and hong kong. listen via the app or bloombergradio.com. this is bloomberg. ♪ ♪

shery: grubhub shares surged in trading after european food delivery firm confirmed it will buy the company for $7.3 billion in stock. that means uber, which had been in active talks with grubhub,'s sideline. su keenan is watching this. this deal would create one of the world's largest food delivery companies. su: absolutely. the $7.3 billion deal comes just as the coronavirus pandemic is driving a surge in orders. the dutch based company says it will pay $75 a share for grubhub, in an all stock deal with an equity value that is above $7 billion. and that as you can see pushed the stock higher and extended emerged.s details the deal also, as you mentioned, sidelined uber which had been an active talks with grubhub for at least one month. a big grab for

grubhub, if you will, as the focus on delivery service in this pandemic has been extreme. of course, rivalry in the spaces also very strong. there were some antitrust issues that were raised with the uber talks. according to those close with the matter, they were concerned it might not win regulatory approval. uber has sent on email saying this -- they are not interested in doing any deal at any price. uber also said that huber and grubhub had agreed on a price but they were having some issues and were at odds over other issues such as a breakup fee if the deal did not happen, sources say. as for grubhub's deal with just eat takeaway, it is going to launch that european service in the u.s. market, bringing it global reach. it's reach already includes

australia, brazil and canada. and it has a huge base in europe. there are say that come -- there are some concerns that it did not see grubhub stocks jump higher, up to the $75 offer price, and that may -- and this is an area that is involved in spheric -- in fierce competition. and more importantly, thin profit margins. that is of concern. also for uber, losing the deal comes as a blow. their strategy was urgent because the pandemic has decimated uber's main business of ride-hailing. haidi: in the meantime, starbucks is grabbing the spotlight in the regular session. they are casting a $3.2 billion hit in the current quarter due to the pandemic. su: that is a major hit. many have been focusing on starbucks, watching it. it has been disproportionately hit among other restaurants because it depends on commuters.

the pandemic has pretty much taken commuters away. it is also among those companies that has had difficulty offering guidance. it expects to report adjusted loss of $.55 to $.75 a share. they are also rethinking their store format. it reported comparable u.s. sales, down 43% in may. that is a huge decline. again, it is also be engaged as quicklyter for how customers are likely to return to stores. one analyst, the numbers were much worse than wall street expected. this people that expect some sort of crazy snapback are learning it is really just not going to materialize for some of these restaurants. interestingly, starbucks did say it is on pace for its plan to add at least 500 net new stores in china, despite the virus impact. again, all of this is causing starbucks to rethink its -- itself as a third-place away

from home. there is the office, the home and starbucks for people. they are rethinking that entire concept in part because of these difficult to report numbers. back to you. haidi: seeking and their peer let's get a check of the business flash headlines. they topped $1000 a share for the first time ever as demand in forward.ve the stock analysts say it is a shining light for the company with tesla on course to reach 100,000 deliveries from its plant in his first full year. shares could go as high as $1500 is electric car interest in china in the u.s. accelerate. deutsche bank second quarter loan provisions rise the highest in the decade as a grapples with a slowdown caused by the slope -- by the pandemic. money set aside for bad loans will raise more than $900 million in the three months through june. that is the most since the

global financial crisis that the bank expects revisions to decrease by next quarter. denmark's financial watch bought -- watchdog. they say the bank routinely entered into agreements to buy or sell financial instruments without a change in ownership. the misconduct which happened between 2016 and last year, made it possible for them to carry out a wash trade. shery: coming up in the next hour, we will speak with morgan stanley's chief u.s. economist, joining us here in new york. aheadmore big interviews including some big business leaders, as well as the leading global food where company. plenty more ahead on daybreak asia. this is bloomberg. ♪

stroud-watts in sydney. we are counting down to the major market open. shery: i'm in new york. welcome to "daybreak: asia." top stories this hour, the fed message.ther dovish the policy will not to change for the foreseeable future. jay powell say rates will remain 00 through 2022. cases continue to rise with u.s. infections alone mirroring 2 million. texas