now that's simple easy awesome. switch and save up to $400 a year on your wireless bill. plus get $200 off a new samsung galaxy s20 ultra. >> good evening from bloomberg world headquarters. i am sherry in new york. best shery ahn in new york. -- i am shery ahn in new york. di: beijing has already threatened retaliation against potential sanctions from washington. coronavirus cases in china

and the u.s. outweigh recent stimulus gains. it share in hong kong. lift after the exchange relaxes rules around chinese companies. shery: let's get started with a quick check of the markets this is as stocks have fluctuated with gains. lower we havedow losses led by energy and to wait a, continuing rise in coronavirus. markets were also under pressure after reports of president trump and china's xi jinping for reelection helped, according to national security advisor john bolton. we did have the nasdaq composite gaining .2%. three quarters is trading above the 200 day moving

average so we continued to see strength for those big tech companies. we are seeing wti trading below $30 a barrel and we have seen pressure in the new york session after reporting crude stockpiles reached another. let's show how things are shaping up for asian market. >> asian stocks are set for a mixed session with a lot of groups at the open. qe stocks opened lower. gains, due in 45 minutes time. a contraction is expected, but a bigger hit to activity is seen showing up. we also have jobs data this morning, unemployment data rising in may, but this will be the key metric to gauge the impact of stimulus.

after central bank front brazil delivered a base cut the highestas number of infections in fatalities. -- and fatalities. we are closing in on the 100 day moving average. this is after paring overnight gains trump failed regarding the leaders. let's hear more on president trump's move to sign that bill, executing china of human rights abuses against muslim minorities. it comes after allegations from john bolton's book were released, saying among other tolds the president trump xi jinping that imprisoning uighurs was the right thing to do and sought his help for elections.

really, another explosive book on president trump. what exactly is john bolton claiming here? >> john bolton's book is absolutely full of stories of the trump administration. i'm just seeing headline after headline. as he sought, xi jinping help soughte election -- he xi jinping's help with the election and one where he approved the imprisonment of the uighurs. expected to be exclusive and filed a lawsuit trying to block the book from being released to the public, however, various news organizations have begun to report what is inside. tell us more about this bill signed today and the

relationship. >> the bill requires president trump to sanction any official responsible for the mistreatment of uighurs. prompted threats of retaliation but it's also the latest escalation we have seen between the u.s. and china. point, it seems like there is no point to that tension yet. what we have on the international front? u.s. isow hearing the downplaying prospects of the u.k. and the eu. tariffs tos used make his point in the past. we might see that again. robert lighthizer is confident they will meet -- make an agreement but there is still a sticking point on big culture and i know there has also been a delay in discussions.

that's the one where countries are trying to find an agreement with multinational companies. haidi: emily wilkins there with the latest. let's get the latest of the headlines. over 1200 flights in and out of beijing have been canceled as the city wrestles with a fresh coronavirus outbreak. account hasitter said many has been halted at the airport. it has been impose on people near market. the european union is moving to protect its industry from companies linked to china and other foreign powers. it could be formalized legislation later this year. we could impact companies, forcing them to divest assets

and would suspend the strict system of limits around the world. will notmodi says he suspend his country's sovereignty after extended clashes. modi said in the only wants peace, but when provoked, will give an appropriate answer your -- answer. both sides have confirmed talks are underway. india -- north korea has shown his own image of the destroyed office while warning of further retaliation. north korea says it will also send troops to the border reinstall guard posts and resume in the frontline area. haidi: still ahead, we get new zealand first quarter gdp. we break down those numbers and

take a look at the various restrictions. powell urgesjerome congress to stay the stimulus course on day two of his testimony. a commentator said the fed has become washington's most potent agent during the pandemic. this is. bloomberg. ♪

haidi: we are getting breaking news at the moment. solly l will be resuming online activity actually. -- this mine will be resuming online activity gradually. this is after a surge in iron or prices coming as the resilient mine shut down earlier. we have seen coronavirus cases in brazil just surge.

brazil is one of the worst hit countries in the world. returne saying they will -- resume activity gradually. let's turn to the u.s. monetary policy. jerome powell is urging lawmakers not to turn back to quickly amid increasing debate over whether to extend programs. guest -- and guest says -- response the pandemic our guest manages over billions in assets. jack, great to have you with us. we continue to hear that they have the markets back about so what could be the unintended consequences as we continue? we are starting to see some of the unintended

consequences that this unprecedented quantitative , which makes what chairman bernanke did during the financial crisis just a little test case. it is certainly popping up asset prices. design.partially by a study we looked at says that actually, if the fed decided to get going, there would be a lot more runway for them to move. haidi: and this is coming at a time when we are not seeing the economic fundamentals as much as the markets are improving. , how domoment in time you invest? jack: it depends on what you look at in terms of valuations.

in terms of forward-looking valuations, it's going to look exaggerated because forward earnings itself was so small. if you look at valuation orative to the economy earnings relative to say cash flow to enterprise value, the market is fully valued i would it but i would -- valued but would not suggest we are in a bubble or anything like that. haidi: it was tech that was leading. storythe rotation reflects the view of the equity portfolio. i believe that when we stare down this downturn not knowing how long the businesses and whole economy would be essentially in a coma, so to , it would force investors

to look at the equity portfolio. words, they say other companies will be disadvantaged and equity advent -- equity investors will have to look through companies to survive. what that it was really plow a lot of investors into the quote unquote survivors, and of course, tech is probably a broad-based category that would not only survive a downturn but was somewhat insulated from the downturn. haidi: i want to get your view on the emerging markets. all the places in asia that have so farrst in first out, the winning trade is in bond. it is moderately bullish when it comes to stocks, but still you have valuations pretty

stretched. it i'm you prefer wondering what is in that space. , we are terms of em mostly macro allocators. mostly, we compare em to developed markets and realize we are both trading at at least a substantial discount to the u.s. and other major markets. g.m. recognized that there were three things going in favor. rating,e a higher tech a higher credit quality, certainly a much smaller allocation to below investment grade issues. bigger.he companies are we are situated in a higher growth area of the world, and

fundamentally, the holdings were solid. we know it is certainly a better valuation. haidi: does the dollar weakness also factor into the calculations? jack: i think so. part of the weakness certainly recognizes the risk mentality that we are not all clamoring for a safe haven currency at the same time. that's a good thing, and it is certainly dependent on a barbell strategy of cap tech and emerging market equity. i think it is a really interesting play. haidi: i appreciate it. will get more on the markets when our guest joins us in the next hour. a widely available drug is

offering new hope. found theom oxford drug can cut the risk of deaths for patients on ventilators. researcher told us about the kind of results she would like to see in further testing. to seeyone was excited more data coming in on the drug. anything we can add to the tool thats huge, so anything can be widely used is absolutely huge. can findt mean we similar drugs for people who are not so critically ill? >> i think we definitely want to see the data and look at more data around the drug. we could better understand how to do it in places where mortality is lower. it's very want to see more work

getting forward and that could actually be promising. it could have a lower mortality rate to better understand how the impact is unless ill illents -- on less patients. is this a second wave? is it a second virus that has been introduced or it hasn't changed at all? what we are seeing is a second wave in the city after restrictions were eased, so the government is going to have to work hard. . we are seeing our own uptick in a lot of states to see how we can implement restrictions to reduce second wave impact. >> what is the situation in the united states? what can you tell us about why

they are in certain states and not others. >> a lot of it tracks with the easing of restrictions, but we know that the states are having a pretty significant uptick and 22 states are on the downward trend. thesestates do have numbers but there were restrictions eased up in late may and early june and we are seeing the impact of that being a little too cavalier. if the six u.s. states you are going into tracking and tracing, could you get a handle on it quickly? >> these developments and drugs and things like that, they don't actually stop outbreaks they improve the outcomes of patients. so as you mentioned, contact tracing testing putting

lockdowns in place, those are the key tools we have harder -- have right now. we know that they work and we have seen a lot of outbreaks from other countries. knowing when to pull the trigger and put restrictions back in place is really huge. i have heard everything from the virus is mutating to top professors in italy saying they got rid of the virus. what do they actually know -- know?rk -- no >> it is promising better understanding -- and how to better use the vaccine. what we know is that it is transmissible and it does cause severe disease in a lot of people who get we could look at the tools we have that we know

will help ease transmission, which is good hand hygiene and masking to protect us but as far as the virus itself we're still learning a ton about it. there's so much being done every day and yet there's still so much to learn. dr. sauer, from the john hopkins bloomberg school of health, of course supported by a spirit -- bite bloomberg lp. latin america's largest economy grapples with the coronavirus and prepares for an impending recession.

>> brazil has asked -- extended its easing cycle. they slashed benchmarks by 75

basis points and 2.25% as the pandemic tin used to weigh on the economy. our markets reporter is on the line from sao paulo. it seems the move was expected but the question is what happens next after the bank indicated the june cut. >> that's correct. , the rate cut was expected what was interesting is they left the door open. they said they would cut rates again now and then stop. the economic crisis made them change their minds what they are saying is there might be space for an additional rate cut, so this language is additional. what sort of implication are we looking at for the market? it will likely weigh on the

brazilian currency tomorrow. let's remind that falling interest rates are one of the reasons why the dow is the worst performing currency in the world -- why it is the worst performing we can expect it tomorrow. they have only been pricing in 15 basis points after the decision, so they will take into account a more dovish tone. rates are more limited and at a record low already. this eightmuch will consecutive rate cut actually help the economy? brazil is grappling with declines and inflation forecasts.

the consensus is for 5.1 sent gdp contraction. 5.1% gdp a contraction. there is not much data about how low rates can go before they lose effectiveness. this is something that the central bank director said recently and it is relevant today. was already a very significant monetary easing. it also depends on the reform agenda included in the back burner for now. they are in constant clashes with other government branches and it's something they are cautious about betting on a strong economic rebound. bloomberg's reporter there in sao paulo, thank you

very much for joining us. let's take a check of the latest business flash headlines. hertz has been described as potentially worthless. they have halted their views and the stock dropped cash jumped more than 20% on the news. will get said they nothing until senior creditors are paid. dsp says they're looking for investment banks to pitch advisory roles later this week and that potential listings could be worth as much as billion dollars. there will be a secondary listing in hong kong later, making it the second chinese company to trade closer to home. the alibaba rival is said to have prompted park interest -- market interest. they went public on the nasdaq and 2014 raising about $4 billion last week and hong

kong's second biggest listing of the year. coming up, online producers -- oil producers discuss the outlook for the year. this is bluebird. -- bloomberg. ♪ you doing okay?

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transfer your service online in a few easy steps. now that's simple, easy, awesome. transfer your service in minutes, making moving with xfinity a breeze. visit xfinity.com/moving today. haidi: you are watching "bloomberg daybreak: australia." the fed chairman is urging lawmakers not to pull back to quickly fund relief for the coronavirus amid increasing debate over extending programs. he told the house financial services committee that he think it is a concern if they remove support to early. al said the economy is recovering but federal aid is required. president trump is turning up the heat on china, accusing beijing of interning muslims and camps. the legislation has brought support from republicans and democrats.

has prompted threats of retaliation from china. a group of seven countries are calling on china to consider its plant security laws for hong kong, saying it will jeopardize what has allowed the city to flourish over many years. statement has said it is crucial to have open debate and conversation. it shows unity after recent strains -- strains to hold meetings. officials say the transfer of a recorder has been delayed because of the impact of the virus. the iranian military shot down the flight on generate after mistaking it for a cruise missile. died.6 souls on board global news, 24 hours a day on air, on quicktake by bloomberg,

powered by more than 2700 journalists and analysts in more than 120 countries. this is bloomberg. >> oil is extending its slide after petroleum slid for the second day in a row. meanwhile, saudi arabia and other members held an online meeting on thursday. meetinga preview of the with our bloomberg strategist. haveese inventory numbers suggested that this recovery really hangs on a thread comes .o demand >> opec may have to meet consummate to stop -- to keep their members doing what they are supposed to do, which is to produce.

with the stock markets quite stretched, i view wti more likely to gravitate towards 20. they're going to do the best they can, but i think it will be a losing battle. haidi: what happens post pandemic? we see them in gaming investment share. >> the best way is to increase production. from what i see from u.s. shale producers is the kind of broke even. wasuple of years ago, that 60. we did see signs of that a couple of weeks ago and so they are hoping for sharp d bottoming of demand. demand was slack and it was lacking. opec has acknowledged the

second half will still see demand suppressed because of the virus. think we could see second waves and at least partial lockdowns? market right now is overly optimistic. we just look at the financial crisis, for example, demand stayed down and in fact never really recovered to the previous levels. a global basis, it is really china and china's economy has been slipping for a while. been .5% ofmaybe gdp. , think it is overly optimistic and remember, crude oil has been in the market since 2008 and i suspect it will be more likely to sustain that trend.

oil and gety on russia's energy minister perspective. comfortable with the price of $50 a barrel in the long-term. says they will extend cuts for another month to smooth the market as they recover from the coronavirus shock. >> indeed. you are right to mention we have made a decision on the sixth of june for month of july. this was the right decision. we have held a lot of and somehow get through the recovery. we discuss it with our colleagues were able to come up with a compromise decision.

i would like turnover that during the many years we have been at this operation, we have always thought we were flexible. need to make sure the market -- andnced next to the to be confident about what the .emand recovery is i would also like to note that we have been given the decision to directly monitor the state of the market to regular monthly to regular monthly monetary committees. to ask about those conformity levels. the data you are seeing that far, are the laggards the likes of iraq which is not just to make to comply but

cuts that they failed to comply on. are you confident these countries are doing so? >> talking about conforming to --els and luminary numbers and preliminary numbers, i can tell you conformity is at a very high level. at the same time, there are some laggards and we will be discussing this tomorrow as well. i under that all countries need to reach 100% conformity. all of our colleagues once again reiterate the commitment and do their part. i know we are only in the

middle of june, but what are you seeing in the first few weeks of june? >> we take our obligations very seriously and it is one of our .ndicators remember, we have always been putting a lot of time for each target level during but for summer months it will make it rather simpler and you can achieve these results very quickly. >> just today, we saw beijing canceled two thirds of flights because of an uptick in virus cases there. of the unitedets

states seeing these trends as well. brazil had thousands of cases in just one day. where do you see demand in the oil market? question and aod very important one. time, there is still a lot of uncertainty, particularly if we talk about the pace of demand recovery. we had a good recovery dynamic .n may now in june we are seeing good dynamics and there is a second wave emerging. that was russia's energy

minister speaking with annmarie hordern. later, we have an inclusive conversation with the hong kong secretary for justice at 10 past eight hong kong time. coming up, we find out how drastically measures hurt the country when they release the numbers in just a few moments time. this is bloomberg. ♪

haidi: facebook seeks to buy a 10% stake in the reliance for is under review by india's antitrust watchdog. the competition commission will study how the company plans to use data as part of the $6 million deal. facebook is was one of many unit,ors betting on the valued at aliens of dollars -- billions of dollars. ft is planning for all car journeys to be electric by 2030, chargingit widespread network and cooperation of founders. this had triggered shutdowns to lift the chance to evaluate everything and says the company

should emerge in a better position. asc has resumed as many 75,000 jobs, three months after its restructuring plan was caused by the coronavirus. ceo set said parts of the overall have been running since february and is now time to start long-term measures. in resumingivals job cuts that were put on hold at the start pandemic. it is gdp day when it comes to new zealand. growth numbers are expected to contraction, given the severest restrictions for the lucked out where the last days of the quarter, but look at how it is trading when it comes to stocks. we see u.s. stocks falling highly volatile and low-volume trading sessions setting up for a pretty you did church here.

chicago futures trading flat at the moment in australia looks like it will start largely unchanged. the kiwi dollar is trading at a little bit of again the aussie dollar is still shy of that six nine cents level where did rebound earlier before trading close to that dollar level. as i mentioned, new zealand is the last of major economies to report third-quarter gdp and the severe slowdown likely means the first economic contraction in nine years. as we get that data, we are joined by sharon, a chief economist. quarterxpect the second is going to look a lot worse? issues but webe will get the number in about 15

seconds. q2, i contrast, is exciting something around 20%, suffer context, that number is not very important. numberse are getting across the minute, in terms of what we expect to see from the quarteride, quarter on that's easily adjusted number is actually coming in worse than expected. the survey was inspected for a contraction of 1% and obviously deteriorating from that half a percent again in the previous quarter. again, worse than expected we were looking at a gamma .3% -- at a gain of .3% of last year. in terms of the demand-side interior ration we obviously see these restrictions coming

through and its impact on new zealand. is that expected to continue, given that we have seen a pretty patchy recovery so far? >> we can think about it in quarters. disruption to gdp and will come out of it ready much with restrictions and we are all enjoying the balance of that. but the new normal is a significantly different economy. by the time you take the spillovers and retail into economy,about 5% the really people centric industries will add on the usual dynamics and the economy will still be 8% .maller by the end of the year >> what do you make of this large contraction?

it would be the largest since 1991 i know the severe lockdown measures were just for march 25, so what happened? essentially, apple customers fell but we suspect the actual activity may have been twice that. it is just difficult to measure activity when we have this mess of disruption going on. so any surprise, positive or negative, we would have subtracted to. thought about it very much is a six-month area. news fromere is no today's release. q2 andthe most action in an awful lot of noise in the economy. a strange time. and i do feel sorry for the statisticians who have to try and measure their way through .ll of this

shery: what does that mean for the currency? we have heard they may improve the instruments that come into quantitative easing. when could we see the cash rate going negative? sharon: it won't be technically possible until next year. i think the reserve bank will be revising up their forecast because they had a very conservative estimation of how long the economy would maintain some degree of social distancing. they assumed 10 months but turned out to just be one. so we think the near-term picture will be brighter there is a very significant challenge to mostly run the fact that it is very unclear when we can open up again. is in the reserve bank interest to have it on the table as a credible threat, because of course it is keeping a lid on near-term rate.

haidi: obviously, there will be a lot of pent-up demand for people wanting to travel. will that be a meaningful support for demand? >> australians account for 25% of arrivals. we expect a pretty decent market share but you have to bear in australia and the international holidays. australian consumers have a lot of debt and are going to be under pressure as well. >> there will be more of an assessment, it is there a view as to whether the approach in new zealand was acting swiftly with severe restrictions, coming early or staying locked down.

set the best case scenario for the economy? sharon: i think it is. opinions are divided, but i think it has paid dividends that the social distancing measures have been able to be removed. have had a couple of important cases and we are all waiting with bated breath to see if that will cause an issue. it highlights that as long as you have some people coming in, you can never really relax at all. but we can get on with their economic lives that fear of the .econd wave and that is a lot shery: thank you very much for joining us. coming up, we also get the outlook for australia with bill evans, plus, we discuss what is ahead with southeast asia.

and jd.com offers a secondary listing in hong kong later. we discussed the expectations next. this is bloomberg. ♪

haidi: jd.com makes its trading debut on hong kong thursday amid tighter scrutiny. it's two years after the board

adjusted listing rules to attract chinese tech stars and more reform is expected. hong kong missed out on the world's largest ipo when alibaba picked new york. years later, the hong kong exchange made its biggest week ipo rules since 1993, paving the way for secondary listing, dual class shares, and biotech firms. shao me was first in line, but sent -- tencent chose new york instead. 2019, they mentioned the second sale and have faced possible listing in the u.s.. such asallow stocks alibaba to be included in the index.

kong two high-profile tech offerings with more in the pipeline. haidi: let's get over to tom mackenzie, watching this from beijing. how have expectations been at the start of trading? >> absolutely. this is a company hoping to raise billions with this listing selling millions of shares. has been heavily oversubscribed by both institutional and retail investors and they are selling to both of those. as he said, the listing will start in hong kong at 9:30 a.m. but we are here in beijing where they will be doing a virtual ipo work event to mark the ipo. means -- the pandemic means it's difficult for many executives to travel to hong kong. they're very confident there will be enough demand to compel the share price upwards. , you canne very well see they're up more than 70% and

they have done pretty well despite the pandemic or because of the pandemic, as they are more of a utility company than a tech company. they have been delivering goods to people across the country since it started in february. they're hoping to spend the money they raised on things like logistics and opening up their bottom line to online retail options. it is a very competitive space. really fighting for market share here in china. say, this follows successful listing from the likes of others in june of course, alibaba and they raised 13 billion in hong kong. theoday is the last day of biggest online sales event since the pandemic. how does jd think they have done? the second largest

shopping event annually in china but as you say, the biggest since the pandemic it started on and they had total sales this year of 29 billion. they are hoping to top that this year despite the impact of the virus. they are relatively confident. leading up to that. -- list as well. but the final numbers are coming out tonight. haidi: tom mackenzie, our bloomberg markets coanchor there. don't miss this interview. the ceo speaks exclusively to bloomberg, plus, we hear from a number of analysts, including

morningstar investment agents -- asia's officer. plenty more ahead. this is bloomberg. ♪

haidi: a very good morning. i am haidi stroud-watts in sydney. shery: i am shery ahn in new york. welcome to "daybreak asia." president trump raises the stakes with china, signing a build announcing the oppression of uyghur muslim's. threatened retaliation against potential sanctions. asian markets face an uncertain start as optimism about a post