haidi: a very good morning. i am haidi stroud-watts in sydney. we are counting you down to is this major market opens. shery: i am shery ahn in new york. asian markets look set to rise after tech pulls u.s. stock higher. the nasdaq isn't as long as rally of the year although the s&p 500 dragged on fears of a coronavirus surge. global infections have topped 9 million with cases surging

across the americas. the spread is unacceptable. south korea braces for a second wave. lenders are backing away. bank of considering cutting a credit line, writing off its and calling it quits. we are just getting some indications, early indications of the economic rebound in australia. the cva australia pmi manufacturing preliminary number for june bouncing back. just in contractionary territory but certainly much better than the 44 from the previous reading. the services number also much better i we get parts of the services economy reopening after the restrictions coming in at 53.2. the previous reading was 26.9. that composite number for june, 52 point six. 28.1 and out of

contractionary territory. that is a preliminary reading but things looking a bit more positive. also looking positive for asian markets, let's get over to sophie kamaruddin for a look. futures are in the green with s&p e-minis and he restocks resuming gains while the aussie dollar remaining on the on foot at the nine.20. there -- 69.20. they have turned net positive for the first time since march. the market assessing recovery prospects against the potential emergence of infections. switching out the board to check in on a chart on the terminal, chinese stocks have been largely resilient in the face of these second wave of years, but gains for the chinext, looking overdone after the index hit a four-year high. the msci emerging stocks index is on course for the best quarter since 2009.

if it stays below the 200 day are on the emgan stock rally. dollar weakness and earnings outperformance not seen continuing. with asia be tested central banks likely to refrain from further easing this week and rising infections are red flags. cases continuing to surge. the top economic adviser believes a v-shaped recovery could be had for the economy. haidi. blackstone's ceo says he is increasingly optimistic about the u.s. economy. he tells bloomberg he sees a v-shaped recovery in the next few months. v inu will also see a big terms of the economy going up for the next few months because it has been closed. andall things go up equally

it will take quite a while before we sink up and get back to 2019 levels. some views onet whether he has right to be quite so optimistic. joining us now from new york is the portfolio manager at davis advisors. great to have you with us. there are not many people calling for a v-shaped recovery at the moment but i suppose at the end of the day, for a longer-term investor, does it really matter given that the expectation is that the fed and other central banks will stay where they are? >> good point. we are not expecting a v-shaped recovery. are rebounds in terms of the pandemic and various parts of the world. i think a full recovery will probably have to await a health care solution, probably a vaccine, and that is probably a year or so away at least. thewe think that in

meantime, you can still find good companies to invest in over the long term if you have a five plus year investment horizon. lots of things will happen. who knew that this would happen last year, right? values still find great and great companies out there, even if the recovery is not going to be a v-shaped one. in terms of this kind of tension we see in the market, take leading the rally overnight . amazon square, adobe, hitting these record highs. does that call into question how much conviction there is in the sector rotation as we continue to see the pandemic or work from home related names dominate? it's very uneven -- >> it is very uneven. there are companies like

alphabet or amazon that are doing quite well in this environment, despite all the negative headlines, and then there are companies that had a lot of growth in their users, but the business model is very uncertain. videoconferencing companies. we need to differentiate as investors between those. the ones where earnings and cash have been generated and the other one where usage is up but in terms of profitability, it is still a ways away. there are opportunities for the company is where the second floor -- the secular trends are -- the cash as they in the balance sheet and the cash statement. danton: we have breaking news right now. american airlines is set to price and equity at $13.50 a share. this as we heard earlier that they had raised $2 billion from and convertible sale.

american airlines raising $1 billion selling shares and one billion dollars in the convertible bond sale according to people familiar with the matter, and we are now doing that when it comes to the raising of the equity, that came 50 a share. let's talk about the industries that have been affected by the pandemic like american airlines. the travel industry. when is it the right time to dive into these second years, -- these sectors? think, unfortunately, for sectors like the travel industry, where you have high fixed costs but plummeting demand in revenues and beverage balance sheets, those would be quite risky and we are staying away. internationalally travel, might take a few years to recover.

not just a few months. businessesse type of are definitely on the riskier side of the spectrum. danton: in china, -- danton: -- stabilizing we see members. the price index coming in better than expected, highest levels since at least february data. chinesetors of the economy at this point are safe to enter for investors? it's reallyink interesting. because of the terrible headlines are surrounding china in the past year, 1.5 years, there are terrific values in chinese consumer companies, companies with promising outlooks, sitting at attractive valuation sales. we have companies that have

great balance sheets and have been growing really well during this whole pandemic period, and the valuations are still reasonable given the uncertainties that are out there so i think consumer in china is a really interesting long term play where you can see many years of growth and the economy shifts that way and a lot of these companies are now world-class type of companies and really good businesses so i think that is the area to really focus on where you can have a lot of conviction behind the business models as well as the long-term trends. deglobalization trade something you think about when it comes to investing in china and emerging-market? is definitely an impact. the nature of the chinese economy devolved a lot over the last 10 to 20 years. it is much less export-dependent.

if you are thinking about the overall impact on the chinese economy, it is much less than it used to be, and a lot of these companies, these consumer notanies in china, are dependent at all on exports. they are dependent on the growth of the chinese consumer and the growth of the middle class, so that is one way that you don't have to worry about -- the trade situation is very uncertain and it is hard to predict what is going to happen but for the overall economy, i would say the impact is not huge. and then for these consumer companies, the impact is very minimal. shery: great to have you with us. advisors portfolio manager, danton goei. more analysis on markets in the next hour with morningstar's director of asia equity research joins us from singapore. up next, more from our exclusive conversation with steve schwarzman. he sees that big v-shaped recovery coming in the next few

months. plus, restaurants reopen as new york city officially reopens phase two of its reopening but virus cases continue to rise elsewhere. the details ahead. this is bloomberg. ♪

>> you are watching "daybreak asia." i am karina mitchell with the first word headlines. global coronavirus infections have topped 9 million, driven by a surge in latin america. 41%.ay up argentina, 38%. in the u.s., infections hit another new high. the texas governor said the contagion in his state is spreading out "an unacceptable rate and must be corralled." two more members of president trump's campaign staff have tested positive for the coronavirus. officials say the aides were at the event on saturday but a

spokesman said they were both wearing masks. they have both been put in quarantine and contact tracing is underway. six staffers tested positive for covid-19 before the president of washington also. south korea is morning it may suffer a second coronavirus wave following a surge in cases in the southern city of daegu. the centers for disease control says the company could see a bigger outbreak if the spread is not contained and if people need to prepare for a long-term battle. authorities have been reporting 50 new cases a day since late last month, mostly in southern seoul. we found our predictions that covid-19 would slow down in the summer were incorrect and we believe that will continue as long as there are close contacts between people enclosed spaces. warning oftralia is a second wave after victoria tighten controls amid a spike of

new infections. the states emergency curbs are being extended by four weeks to july 20 with the number of visitors allowed in homes being cut in half to five and -- larger gatherings are restaurants and bars. the aussie dollar fell against most of its g10 peers before recovering. global news, 24 hours a day, on air and on quicktake by bloomberg, powered by more than 2700 journalists and analysts in more than 120 countries. i am karina mitchell. this is bloomberg. shery, back to you. shery: blackstone ceo steve schwarzman is showing increasing confidence in an economic rebound after the coronavirus expects asaying he v-shaped recovery in the next few months. he spoke at the bloomberg invest global summit. veve: you will also see a big in terms of the economy going out for the next few months because it has been closed, and as people are allowed to go back

in the economy, it will really respond a lot, but there's only so much the economy that is highly complex can respond to. just because not all things go takeually and it will quite a while before we sync up and get back 102019 levels. to 2019 levels. >> i know that blackstone is a place where you are always looking at opportunities and new opportunities in many ways. i think back to the turn of this century, and a lot of investing you made in real estate. i think about the last financial crisis and how heavily you through gslo credit and other means. what is something that you are doing now. take us inside blackstone that

might help us understand the opportunities that exist in this latest crisis. steve: this one is different. they are always different. know, the easy things you have been doing was, you know, when you hit that bottom, even if you did not know it was the bottom, making significant investments -- we reported at the end of the first quarter billion.nvested $11 that's of course had a very active outcome. addition to that and that is sort of the first stage. i think each of our businesses are now seeing interesting opportunities. thingsnology is changing , and people are staying home want the areas where you

to invest, whether it is , areology or health care being modified. certain older economies that are bound to be disrupted, those types of companies are places where, unless you have a really remarkable management, you have a warning to stay away from it. you can see different parts of the economy opening faster. some things were closed completely. interestingly, in the hotel hotel in las vegas, completely closed the first weekend it opened. it was 45% filled. that has been an astonishing thing. be some surprises. not all hotels. but as you look at the gradation ,f places where you can drive

they will recover much faster. places where you have to fly will recover much slower, and if you have to fly over oceans, those will be the slowest of investments. so each of our businesses is starting to really put out money . there is a much better tone. to do a lot of private investing, there has to be confidence on both sides. they have to believe they are getting fair value. the people who are buying think they are getting fair value so there is an overlap. is iflly what happens they are doing private investing, they do not like to sell -- you can buy liquid securities. you can buy the debt securities.

cm bs and other things where you can find the security where you think it has the most upside, even if it has gone up half from where it started. others have already returned. it is an issue of figuring out which of the underlying businesses are going to return to health. haidi: that was steve schwarzman speaking to us as part of the bloomberg invest global event. we will have more from that virtual summit later on. we will be hearing from the ceo and india chief economic advisor . that is from 1:00 p.m. tuesday from hong kong and 3:00 p.m. if you are watching in sydney. coming up next, the virus cases continue to search in the in the sunbelt. global cases topping 9 million. this is bloomberg. ♪

haidi: new york city has entered phase two of its return. restaurants and shopping malls are opening their doors. the virus continues to spread elsewhere with new infections in florida hitting yet another record and hospitalizations in texas jumping the most in 2.5 weeks. health care reporter and the court is on the line. we will continue to see the risk of a second wave play out across parts of the u.s.. thank you so much for having me. i think what is important to note is there may be some sort of semantic discussions about whether this is the second wave or the first wave here in the united states. in many parts of the country, cases never really went down. how can it be a second wave? what is important to consider is in some parts of the country,

cases are increasing, and some parts especially increasing at .ates that are concerning right now, there are very big concerns. about overwhelming the health care systems there. risk of not only trying to get good care for covid-19 patients but also not getting good care for people who have other kinds of health ailments and emergency care. this has been a big trend in the united states in the last couple weeks and does not show any sign of stopping right now, unfortunately. shery: president trump insists the u.s. is at a disadvantage with the high testing rates that we are seeing across the united states. the tulsa rally, he was talking about how he wanted officials to slow it down a little bit. for thet account surging numbers that we are seeing. happeningfections faster because of the reopening or is testing catching up

finally to give us a more clear picture of what is happening across the u.s.? >> that is a really good question. there are very easy answers, unfortunately. and parts of the country where rates are surging, they are not entirely explained by increasing and testing rates. we know how many tasks we are doing and we know how much testing is increasing and we know how much cases are increasing and it does appear in many parts of the country, like arizona, for instance, the increase in cases is outpacing the increase in testing. one important factor, it does appear that the increases correlate to the reopening of states. we have seen this in arizona and again, as an example, the state reopened, you know, in may, and you are seeing increasing cases coming in the weeks after that reopening. direct correlation

because there are some examples that the trend. americans are moving around a movement,nd with that visiting more businesses that are not essential businesses, perhaps having more social prolonged well, and social contact really increases the risk of virus transmission. that is an important thing to keep in mind through all of this. shery: mccourt with the latest on the researching infections across america. let's get the quick check of the latest business flash headlines. dds is the latest u.s. listed chinese company set to be considering a secondary share sale in hong kong. the data center firm currently trades on the nasdaq and would follow jd.com income and closer to home. it is already working with investment banks on the deal which could see the shanghai-based company raised about $1 billion. they operate data centers in

beijing, shanghai, and guangzhou. airbnb sends an ipo was still on the table for this year. by the being hit hard coronavirus. brian chesky told bloomberg he is not ruling out the listing but would not commit to a timeline as the covid-19 crisis continues to play out. the company has cut one quarter of its staff, erased $2 billion in debt, and seeing its valuation fall by around $12 billion in the pandemic. t-mobile says it plans to offer shares as part of a transaction with co-owner softbank, which is unloading a portion of its holding in the carrier. it says it will make a public offering of 133 billion shares of common stock and will also grant underwriters an additional 10 million shares. t-mobile intends to sell up to 30 million shares of stocks of statutory trusts in delaware. china, pull out bank of

the latest -- to the embattled company, and we will also here from jim chanos. this is bloomberg. ♪

haidi: asian stocks looking to start the tuesday session higher after that lead for wall street or the tech driven rally. let's take a look at how that is setting up with sophie kamaruddin in hong kong. sophie? sophie: risk assets taking a lift in assets. caution does remain with hedging demand on the rise. piled intobillion fixed income etf's last week. amid the back and forth on how sustainable this rally could become a em etf's cap a second week of outflows led by redemptions from the biggest chinese stock funds. defaults in the bond market topped $4 billion on the

mainland. jumping on the terminal to check on this chart, bullish bets on gold have pushed spot prices to a 2012 high amid the inflows while the biggest etf's saw the largest inflow in about a year on friday adding $1.3 billion on that day, shery. shery: now to the latest on wirecard. bloomberg has learned the payment platform talked with deutsche bank last year about a tight out. it's shares are collapsing. the ceo has resigned. wirecard said more than $2 billion in stock was missing and may never have actually existed. su keenan has more on this. what are we hearing from deutsche bank? bank is not officially commenting but a source close to the matter tells bloomberg it swiftly ended the informal talks in 2019. now, before wirecard's meltdown and the still unfolding accounting scandal, the stock plunged to new lows in the

latest session. it apparently toyed with the deal that would have catapulted into the global financial elite. sources, the payment processing tech firm approached deutsche bank with an idea for some kind of combination or tie up late last year. the project was codenamed panther according to those close to the matter, and the prospect of the processor taking over germany's biggest lender actually highlights the sudden reversal of fortune that we are seeing for it. it had been the best performer in the dax 30 stock index in 2018. its value now is only a fraction of that of deutsche bank, yet it looks like there was some kind of idea that we might actually be able to do a major deal with deutsche bank. deutsche bank not officially commenting but said to have quickly ended the talks. wirecard is saying the

money does not exist. one high-profile billionaire is now shorting the stock. su: absolutely. it is a company fighting for survival. we reported yesterday, it has -- probably does not exist and that dozens of lending firms. the bank of china is considering eliminating its credit line. at least 17 lenders are trying to negotiate terms. bondholders want talks. jim chanos, a billionaire and major short seller, says there is more pain ahead for the company. evidence hashe been piling up. this was the largest position in our global short accounts and hedged accounts. the fact that the $2.1 billion, 1.9 billion euros, at first went missing, and now appears to have never been there.

it was always our belief that it probably was never profitable. i would guess the senior executives may need some questioning, shall we say, on that account. he said it's very interesting that in a financial downturn, as people want their money back, that is typically when france become known. interestingly, that one german regulator has said that this is a complete disaster we are looking at as, again, so many banks and others look for answers. back to you. haidi: su keenan with the latest. jim chanos is not backing down on his other major shorts. he said he is sticking on a bet despite the huge surge towards that thousand dollar level. >> we are still short tesla. i think you put your finger on it. the market is saying this is a

tech company. i put out a spreadsheet every quarter, comparing tesla to all the other auto oems and it is shocking how much it looks like just another auto oem come out almost the exact same margins, returns on capital. it is a tough business. tesla's revenues have been -- with this quarter, will be roughly flat for the next six \ quarters. in the growth story, people are counting on all kinds of growth going forward. is, the of the matter company's rate of growth has slowed dramatically. in north america, we think they peeked out in terms of the auto shipments last year and are doing so in europe this year. china is still the growth area for them. this is a company trading now at almost a 200 billion dollars total enterprise value, trading at eight times revenues. most of the other automakers trade between one quarter and

one half of revenues. this is really totally a perception by the market that there's some cutting edge technology here. the problem is is that what everyone is excited about, whether it is batteries or autonomy, tesla is not a market leader. panasonic makes its batteries. the new super batteries out of china are made by a company called ctl. has level 3 autonomy while tesla is still at level two. has everyone seen the videos of tesla still slamming into overturned semi-trucks? it is quite something. if this is -- this company i think is a wonderful barometer of where people's views are on companies and speculation. because people see tesla how they want to see it. i think the product of tesla has always been the narrative.

>> to be clear, you don't necessarily see fraud going on here. there might be some accounting irregularities in the way that -- that is something another short seller has pointed out. talks about the accounts receivable. do you think there is fraud going on here at tesla? >> we have plenty of questions about the numbers and management's veracity. all you need to do is go back to the solarcity acquisition. and see how they justified it and what came out legally after that. i could go on and on and on. the offer, the bid. have a company where we seen a revolving door of the that has continued. chief counsel's come and go quickly. the accounting side of the story is important. but the extreme, extreme valuation relative to the

reality is just as important. >> you are short some large chinese banks. explain how this will pay out -- play out in the same way that the federal reserve is a backstop for that? >> china is interesting. it has kind of come off the front financial pages with covid and the trade war. before steve schwarzman discussing it as well. about china ist the debt situation. it just keeps going up. this has actually put a damper on chinese equity returns over the past 10 years. i always point out, when we got bearish on china, the f exide, which was the large cap china etf, was about $40, and i think it is right around there now. it has gone nowhere in 10 years. i think that part of the problem is not in terms of the large-cap chinese companies, everybody

knows a tech company or two that has done well. state ownedlarge enterprises, they are not very economic and that goes for the banks. so china is going to still have the situation it has to grapple with. residential real estate is still a monstrous part of the economy. it is basically the same old, same old. the problem for investors is the same old, same old keeps yielding monday and returns for equity holders. >> jim chanos. we will have plenty more from day two of the bloomberg invest global summits with pimco ceo emmanuel roman, carlyle group co-ceo, the world bank chief economist, and carnegie's representative. we also speak with siva mnuchin at 2:38 tomorrow morning, hong kong time. we will bring you highlights on "daybreak asia." plenty more to come. this is bloomberg.

♪

haidi: a first check of the first word headlines for you. the first round of nuclear talks between the u.s. and russia are said to have gone "very well." thevienna meeting -- talks were overshadowed by the u.s. posting a photo of chinese flags and empty chairs and saying china is a no-show.

russia pointed out that beijing had never been scheduled to attend the discussions in the first place. the u.s. is raising the pressure on chinese media organizations designating four more outlet as foreign missions. -- four outlets the state departments move means reporters in the u.s. for the four companies will be treated as chinese diplomats with constraints on visas and identities. virgin galactic is the second private company to sign a deal -- [no audio] ♪ shery: last month, spacex was the first private organization to take people into orbit. has joined an--

exclusive club of the world's 10 richest people, according to the bloomberg lien heirs index. spot with ain ninth fortune of 65 billion dollars, overtaking larry ellison and francois bettencourt myers. he owns 22% of reliant and has benefited from a flurry of investment, which has made his company debt-free. the head of j.p. morgan chase & co said and wealth management says to her surprise, clients are not panicked by current market headwinds but are more focused on investing for the long term. the ceo spoke with bloomberg's alix steel in an exclusive interview from the bloomberg invest conference. >> people are not panicked. the margin calls happened in a very short window. we were running about 1000 a day area people had the wherewithal to cure them pretty quickly. we see that in corporate financing. very smart company, knew exactly what to do.

drawnid not necessarily downlines unnecessarily. they figured out how to get their financing in shape. i feel like we are in a very calm period. people are looking to put money into liquid assets where they do not need to look at them on a daily basis. they can think about those in the sovereign wealth fund. in the wealthier individuals around the world, and they are ready and have enough liquidity that should we see something else, and that some else may not come from anything anybody is looking at today. it may not come from covid. it may not come from racial tension. it may not come from china trade or issues. it may come from something totally different. -- that is why we are seeing so

many across our alternatives platform of people saying i got it. i want to have my money there. i want to be able to take advantage of it and i am not showing signs of panic. great insight. we have one minute left. i am assuming jim is working at home, too. mary, you are clearly in an office. i want to get perspective on people coming back. when do you get to 100%, will what is work from home like? have at jpmorgan chase, we .2 5 million people around the world. all the investments we made in technology over the years made that quite simple and smooth, so we had close to -- over 90% of the entire global population was in a work from home scenario. certainly different places around the world are going to return faster. hong kong hit a high of 39% on friday of occupancy. they are ready for this.

they have already lived through sars. they know how to prepare themselves. masks are a normal part of daily life in most public transportation and the like, so that seems to be working. europe starts to open. in some places have been open. some of our offices have been open all the way through. milan, spain, geneva, paris, other places opening up next monday. and then the following monday. in the u.s., we have always had the branch is functioning so that people can continue to manage their daily lives, for small businesses and the like. they are starting to open more. the are starting to have team in. the most important thing for j.p. morgan chase's that it is safe and secure, that people do not feel stressed about it. reentry for anybody that has been out of the workforce in any kind of leaves, medical leave, maternity leave, reentry is a

very stressful time period. we have to work through it slowly. it will be different in different places depending on how you transport yourself into and out of the office, and we are going to take that step-by-step. we are going to make sure everybody feels comfortable. people crave interaction with other people, and while zoom is a fabulous technology for each of us to be able to do these things, zoom is not spontaneous. when you need that support from a colleague and you are trying to very difficult mending decisions, m&a transactions, and the like, to the extent you can have some of it in person, and i think life will change a lot a lot of the way work, but you still need some of that. i think that is what we will all be working through, and you will see corporate america jumps accordingly and i think we will be in a better place for it. that was the j.p. morgan chase & co that and wealth settlement ceo. if you are away from a screen, you can always find in-depth

analysis over on bloomberg rate up. we are now broadcasting from our studio in hong kong. you can listen in view of the apt at bloomberg radio plus or bloombergradio.com. this is bloomberg. ♪

haidi: pg&e has launched two

public equity offerings worth more than $5 billion as it prepares to exit the biggest sector in bankruptcy in u.s. history. pg&e has already raised more than $13 billion in the debt markets to finance its chapter 11 case, which began after its faulty equipment sparked a deadly wildfire and saddled it with $30 billion in liabilities. apple launched this year's developer conference with news that will make the most dramatic updates to the iphone home screen the device was first 2007.sed in apple confirms it will start to sell mac computers with in-house design processes, signaling an end to the 15 year alliance with intel. abu dhabi investment fund is focusing on tech after taking a 1.2 billion dollars stake in india's geo platforms. the ceo told bloomberg's invest global virtual conference that he is looking at the venture space, medical technology, life

sciences, and ai. the fund sees india, china, and southeast asia as the best areas for growth and potential investments. the covid-19 lockdowns have changed the patterns of moving people and goods. workers have stopped commuting home grocery commuting. shoppers have moved online. there are signs of some behaviors may persist. let's get insight from a company seeing these changes first hand. and on demand delivery company is joining us from hong kong. the managing director for international -- blake larson. let's get started on what you are seeing post pandemic. we have had travel movement restrictions. how has that manifested in your business? >> there has been an impact across lots of different markets and we have seen kind of a story of two halves.

as an essential provider of delivery services. we have seen them spike 400%. other markets, may be something like india, the lockdown, the business went down to a very minimal state. shery: you are saying you will continue with your expansion plans in the next few months, here in the united states. given how we are seeing some states reopen but also the virus your resurgence, what are expectations for how this will go? >> we are seeing a huge change in behaviors globally. a lot of the small businesses with our core users are really being forced include digitization of their delivery services, we are seeing some of the things in the u.s., even despite the increase in the virus. we have seen some of the trends here and we have learned a lot from those, so we approached the business in terms of delivery

and how we do virtual training. prepare to be a partner to these local businesses that are really feeling the effects of the first wave and possibly the second wave. perceiveat do you being the permanent changes for the industry? ke: this is speeding up the adoption curve of technology and how that plays a role, especially in the s&p segment so you are seeing, over the last couple of months, we have seen our website traffic go up over four times what it was prior to covid so there a huge interest, saying how do i cope with these changes? what can i do? what provides me the flex ability? how -- the flexibility? who is there to help me? ove can playe lalam a piece in the transformation

and empower local businesses. shery: can you tell us where you are at when it comes to financing? you were saying within two years, you were looking at a hong kong listing. blake: i am happy to say we built a very sustainable company, something we have always been focused on. we don't talk about ipo's so much. we talk about building a great company. we feel like we are early in our journey doing this. without the need for external financing, we know that as long as we build a sustainable company that we will have a lot of options and the ipo could be on the table in the future but we are focused on helping those drivers and small businesses being affected by covid. shery: if you do go public, would that be in hong kong? keep most of our options open. we will do what is right for the company if we do -- in the future. shery: you basically deliver

everything, right? from documents to furniture. where are you seeing the most business right now, especially since there are parts of the world that are reopening, and then there are parts that are not. i think this is a localized question. places like singapore have really pushed the food delivery business and being an essential service because they prevented the movement of people to some degree so we have seen a huge increase in the food deliveries, but interesting things, the work from home movement impacted our business as well. we are helping a lot of employees in these companies move to homes to support them in this new normal. it's really changing depending on the dynamic. it's very much a localized question. blake larson joining us out of hong kong. don't miss another big guest

coming up later today. ceo joins us exclusively to discuss the company we launch post pandemic. coming up on the next hour of daybreak asia, we are joined by a morningstar's director. she sees a relatively aggressive catch up and economic growth over the next two years. let's we will be speaking with bob o'donnell from tech analysis resource to get his thoughts about these changes from the apple update. the market open is up next. this is bloomberg. ♪

♪ >> good evening from bloomberg possible headquarters in new york, i am shery ahn. >> marcus just open for trade. welcome to daybreak -- markets just opened for trade. welcome to daybreak asia. a tech search on wall street. -- surge on wall street. 2020 will be a big year for hong kong ipo's.

more coming down the pipeline. the exclusive interview with the exchange this hour. and iphone home screens and updated ios. apple has major announcements including the end of that 15 year liaison with intel. let's get to the market action with sophie kamaruddin in hong kong. are seeing stocks in japan moved to the upside. we have these japanese equities and gains. checking in on the yen, other change after holding up five deb gain -- five day gains. they are watching for demand in this superlong zone. checking in on south korea. we are watching the health care sector with the biofarma that is testing retail appetite. weretutional orders prescribed over a hundred 36

times and created medical related stocks have been the best performers. the korean won is on the phone for today. -- front foot today. let's check in on the activity this morning. kiwi stocks are resuming gains. the asx 200 is extending for a third day with the positive data. there was a strong rebound. to 52.6, the highs level since december of 2018. that was registered in may. that could bode well for pmi readings. we are seeing little reaction in the aussie dollar. let's check in quickly on softbank this morning, trading higher, nearly at 2%. part of the stake is in t-mobile.

it involves almost 200 million shares. deal thatrt of the was back in march. the next guest says that the next wave will impact the markets. joining us now from singapore is the rain, equity research. thank you for joining us. does this mean that the markets are correct right now in the exuberance we are seeing? extent, the market reaction means that investors see it the way we do. a lot of that has to do with the fact that we are expecting treatments and vaccines to be available on the middle of next year. you will see this sharp rise because this year performance

will be extremely weak. among the weakest in history. for the u.s., we think it will rebound to 5.6% in 2021. that, we do think that because prices have come back out, a lot of sectors -- despite the coronavirus impact, we do think investors have to be a little bit pickier going forward. >> here in the united states we consider to see banks underperforming the s&p 500. look at this chart for our bloomberg viewers. what do you think of financials? not only here in the u.s. but especially in asia. >> we see the same thing in asia. financial is one of the sectors that fell fairly far behind the

other sectors. although it had a nice balanced last couple of months, they are still down -- we're looking at it down a percent from a year ago. especially for the asian banks, we think there are still opportunities. number one, we do feel a number of asian banks don't have that to diluteuity shareholder interest. given that and the fact that we do think dividends can be sustained for those that are allowed to play -- for those that are allowed to pay dividends, we think there are opportunities in the banks. what about the consumer story? do you expect that to be a quicker rebound in asia? do you see improvement across the services sector?

surprisingly, the consumer names have also done fairly well. they are up above levels from a year ago. we have been really picky here. we will stick to companies that we think enjoy this. that means they have attributes that means they will be able to defend their market share. forhink there is a need quality pickup companies. we still like the macao gamma sectors. in terms of some of the communities that are still trip.com.hat includes >> is the dividend play being -- becoming more important? lorraine: i think so. that is what we think there are opportunities in some of the

banks. hsbc is obviously a value play. there is potential for that to come back. i think the capital positions are strong. they can't afford to pay dividends. this -- in these past two months. this is partly due to geopolitical concerns as well. we will create some of the utilities. seeking infrastructure is quite discounted. this will not stop them from paying the dividends this year. the other one we were more comfortable with is engineering where the dividend yield is turning around at 4%. >> always great to have you on with us.

lorraine joining us. the hong kong exchange says 2020 will be a big year the matter what. our exclusive interview with the ceo is next. >> plus, another big interview coming up later on. airbnb says the stock listing this year is to on the table. encouraging signs returning to the travel sector. this is bloomberg. ♪

watching daybreak asia, i am karina mitchell with the first word headlines. haveavirus infections topped 9 million worldwide. up 41%. in the u.s., florida infections hit another new high. reg abbott said the contagion in his state is spreading at an un-have to prorate and must be crowd.

two more members of president trump's campaign staff who worked on his low turnout rally have testedlahoma positive. they were both put in quarantine and contact tracing is underway. trump's campaign workers had tested previous to that. wave incoronavirus china. the country could see a bigger outbreak at the spread is not contained. people need to prepare for a long-term battle. authorities have been reporting about 50 new cases a day since late last month. eoul.y in southern so >> we found that our predictions that over 19 would slow down in the summer were incorrect. we believe that the virus will

continue as long as there is close contact between people and between --e to --" close contact between people enclosed spaces. >> extended to july 20 with the number of visitors in homes cut to five. larger gatherings between restaurants and bars. the dollar fell against most of this beforeof recovering. global news on air and on quicktake by bloomberg, powered by more than 2700 journalists and analysts in more than 120 countries. i am karina mitchell, this is bloomberg. that, continuing to pick up. there is a significant amount of community transmission going on, the state premier saying that they recorded another 17 cases of coronavirus and provided that

update to the media at the moment. there are staying home directions for a number of coronavirus hotspots across the north and south east of melbourne in victoria. sharp continue to see the rise in cases. another 17 cases being recorded in the state of victoria. they: let's go back to bloomberg global investors. 2020 is supposed to be a big year with lots of homegrown ipos. yvonnes have interview, man asked him if he sees china's reform affecting hong kong deals in the long term. notne thing that people do sometimes fully appreciate is that the market is reinforcing

each other. the more open china is, the more opportunities we actually have. open, youare more have slightly different opportunities when they are closed. it is not about a binary thing. we are very differentiated in we roles, in our functions, remains -- remain resilient. we will always be able to solve the problems they could not solve at a particular time. when they're able to solve those problems, we can move on to solve other problems. we are able to remain on competitive distance and differentiation. >> is this a priority to you?

to get these included on the stock connect? some of these companies might be included in the hang seng. >> yes. we can do it here in hong kong, some of the changes to the system and the rules that will allow them to be designated in a different form. this way we can also reach agreement with our friends in beijing and shanghai and shenzhen. is something on the horizon. i don't want to give you a specific time but it is coming. >> we just got this national secure legislation. the central government has confirmed that they can actually trump the hong kong legal system when it comes to national security issues. how are you maintaining or venturing investors right now that this is not going to be as

big of a deal? how do you address concerns they >>e right now russian mark there will absolutely be short-term anxiety and short-term discomfort. this is not something that people are used to. in light of all of the geopolitically sensitive times that we live in, this will be fully understandable. konge who understands hong will understand china's overall position and philosophical approach. they should be able to conclude pretty easily that the long-term impact is limited. systems, it to absolutely works for the best interest of china. i think a matter what happens, what happens to the u.s.

government in terms of the conflict with china, i think ultimately, even with the national security, hong kong will remain the most ,nternational, the most open the most? it of china. -- maybe tomorrow we will still be the most international and chinese market. that was charles li in and if lousiville interview with our bloomberg invest global summit. we will have more later today. the ceobe hearing from and india's chief economic advisor. that is at 1:00 p.m. on tuesday, in hong kong. you're watching in sydney.

david rubenstein also speaks at the u.s. treasury. steve mnuchin, that conversation is tomorrow morning at hong kong time. if you're not up for that, we will bring you the highlights on daybreak asia. european leaders spoke with china's premier and president on monday. they sparred over geopolitics and economic policy as they work toward an eu and china investment agreement. what was discussed during this very contentious ritual summit? is the tension between china and the you has grown significantly since the last summit. it was held 13 months ago. this time around, the talks did not reduce a joint statement.

the criticism of china's hong kong national security law, allegations about the it featuredand -- prominently in these talks. china is the eu's biggest trading partner. to -- had urged china the foreign policy chief said sanctions against china will not be the solution to problems with china. on the chinese side, their put a muchatement more positive spin on it. europe has been pushing for this market access but it has been simultaneously been scrutinizing and tightening foreign investment in europe euro. >> the u.s. is doubling down on

its tit-for-tat strategy on that media war with china. the state department designating for more chinese media companies as foreign missions. >> that is right. include organizations , thetate broadcaster bc tv global times and the china news service. what this designation means is that organizations will be treated as chinese government diplomats but they have to go through extra requirements. they could also place limits on how many employees they have in the u.s.. ais certainly escalates tit-for-tat battle in the media that started with china earlier this year. the u.s. state department has labeled five other organizations as foreign missions.

in march, in retaliation, china ,evoked press credentials working at the new york times, the wall street journal, the new york post. --y have no kind of response they have no you a kind of response they will see some china -- from china but -- >> airbnb says it's much anticipated listing later this year is still on the table. ceo next,ew with the this is blumberg. ♪ -- bloomberg. ♪

saysrbnb co brian chesky the recovery from the travel slump caused by the pandemic has been so swift that it's stuck listing is still on the table for this year.

file onre ready to march 31, we will be ready to file again. i will say that we are recovering faster than we thought but i don't want to have false hope. hope for the best, plan for the worst, the market seems like it is recovering but there could be a double-dip. we will play it by ear. i want a little more data. we are still a little early in this crisis for me to feel clear enough about how this will play out. we are not ruling it out this year. we are definitely not committing to a timeline right now. >> how likely is it that it would happen this year? how do you weigh those uncertainties? want to speculate or give a percentage. i can just say on the table but we are not committing to it. there is the fundamental question about whether the

turnout will continue to recover. is this just pent up demand? number three, does the market listingappetite for the ? people lost appetite a little bit. it seems like appetite is coming back. these are fundamental questions. i am wondering if you thought through this. why aren't you already public? should you have gone out earlier? was that a mistake? brian: i think that when we go public, it will be successful. i think people will be really happy. i think we will be public sooner than later but i don't know what sooner means. i actually think it will -- we will look back at it and hopefully it will have played out well.

we have a real responsibility to our stakeholders. that oura lot to me employees have a significant part of the network and stock. me, iteally important to is important to me that they get liquidity. -- i think that things could work out for people. wonder if hindsight is 2020 ready forw nobody was a pandemic but do think that was a miscalculation? >> i think that we strayed from our roots. we strayed from connection, belonging and hosting. we were pursuing a lot of things. some but he once told me that you can do everything you want in life but not at the same time. when you get really successful, you tend to think that you can do everything at the same time. i tried to do too many things at once. it wasn't as clear until covid happened and we had the

discipline. i think we all have fresh eyes and we realized we need to be getting back to basics and focused. hopefully that more focused company will grow even faster and then we can launch new things. then we can scale and expand and be big again and hopefully >> hire people back that we lost. -- hire people back that we lost. you could bring in new money, that could be used to refinance the debt and you could pay that down without having to deal with the interest. >> i think there are a lot of ways of doing this. you could do a private round, you could do a direct listing. there are a lot of options. i think we are looking at all options right now. >> there was brian chesky there. breakupp next, apples

-- we will be getting changes to the iphone home screen. this is bloomberg. ♪

>> we have breaking news out of japan. we are getting the june luminary numbers. the japan manufacturing pmi coming in at 37.8. this is lower than may. we have not been in that extension territory since april of last year. again, for the month of june, we are seeing it low 50 and also at a weaker level than the previous month of may, coming in at 37 .8. the pmi was strong and unexpected. 42.3. this is again from the previous

month. 37.9, stronger than the previous months. pmi, 37.9, stronger than the previous months. the services pmi is still much stronger than the previous month. we had seen the lifting of the virus in late may. that could have helped the services sector in japan. kamaruddinto sophie for a check of the market. sophie: asian stocks are gaining ground. we are seeing 1.5%, leading the regional event. services leading that climb in s eoul. .he nikkei 225 adding

over in sydney, extending gains for a third straight day. switching out the board to check in on bonds. directing the track lower. ahead.asis points treasury, little change, to the downside, risk on sentiment. there are still concerns around a second wave of infection. check out what is going on in the currency space. jumping into the terminal, focusing on the offshore u.n.. have you and ch continuing to fall at february lows. signaling less concern over tension playing out in the currency markets. haidi: would has been concerning

is the return of positive sentiment as these beijing coronavirus cases come under control. we are starting to see that through the data, today. clearly still seeing some transitions there. a lot better than the cluster that we saw over the last weekend. in theselted neighborhoods and suburbs in beijing and it resulted in a lockdown again. let's get to our top story. the worldwide developers conference is the first virtual event. there have been some pretty major announcements, including in-house.o make chips bob o'donnell joins us from california. raising their

prices. apple calling this a historic update. is this historic? >> it is historic if we go back and track what apple has done to the mac. but it is a bigger picture that apple has been working on for 10 years. it is another incremental step in that regard. you have a company in apple that oddly the mirror image of ibm 40 or 50 years ago. they want to control everything, all there vertical, core technologies that go into their products as well as their product. it gives them the ability to refine the experience, get the most performance, to do all the things they want to achieve. would callw if i revolutionary, it is a big step. it is unfortunate for intel.

it is important to maintain the relationship. it marks the end of an era, that is for sure. used to have to live together for a while. -- you still have to live together for. >> yes. apple is increasingly able to control its own supply change. that has -- supply chain. that is something that we have always said that was good about samsung. >> that is what apple is trying to do. what is interesting is they are using an arm-based design. that is an ip company, they do chip designs based in the u.k., they are owned by softbank. they have been driving these

chip designs that apple is using now and everything. that gives them a consistent set of devices for software developers. --ay was one of the practical benefits is ios apps written for the will all of the sudden run on this new mac. won't have a touchscreen. over time, the ability for the software to work across all the devices, the other thing they did was they upgraded the os. the new version of mac os looks a lot more like i/o. muchf the devices have a more similar looking field. the technology behind them is starting to become the same as well. -- chips haverips struggled to get traction in

service. could intel still maintain their market position in the service-based question mark -- server space? world'sasked that the fastest supercomputer is actually running on arm. that is a japanese based computer. aced on armg chips architecture as well. going to take a while. intel is very well-positioned overall. certainly in service but i think you will see momentum move to arm. the psychological benefits they get to winning apple, even though they are only 7% of the pc market, it is huge. i think that will trigger some changes. it puts intel on the defensive. >> the same for intel.

it is a symbolic blow. about apple's gross margin? how much will this help that they are in sourcing their chips? >> that is a good question. we are not clear what that will be. is it will help improve the gross margins on the mac. it is unlikely that we will see apple lower their prices but they will try to offer better performance and better battery life. remember that we have seen arm-based chips in microsoft as well as other pc vendors. to be honest, they have not had a big impact yet. i think apple knows what they are doing. i feel it they would not have

made this move if it was not time to do that but there are some historical challenges out there they will have to address. >> the changes to the home screen, while expected to be , is it strange that apple is playing catch-up to android? >> the thing about apple is there are more cases than people realize in which apple plays catch-up. apple tries to figure out things that people like based on things their competitors have already done and then try to do another better. we saw a number of the capabilities, particularly on customizing the home screen that android people are like i have had this for years. that is not new. we saw some of those capabilities brought to the ipad and the mac. yes, some people are surprised by that. the reality is that is not uncommon for apple to take something that is already out there and then to try to refine

it. we will see how that works in real life. people seem to think it was similar to an android has for now. >> good catching up. thank you. that was bob o'donnell. up next, how the coronavirus crisis demonstrates china's ability to bounce back from big hits. the bubble that never popped is next. this is bloomberg. ♪

v inu will also see a big terms of the economy going up in the next few months because it has been closed. >> i think we will begin a recovery by years end. i don't think we will be back to a normal economy before the second half of 202021. -- 2021. be some progress. there isook like recovery. there will be some expectations, there will be some enthusiasm. >> the market is fragile. people may not be ready for that. from thef our guests

bloomberg investor summit sharing their expectations for the shape of the recovery. despite a huge debt level, arbor chief economist at bloomberg economic says it won't slide into crisis. they just published a book on the subject, it is called china, the bubble that never pops. tom joined us from washington. great title. it seems beijing is going against the odds, against expectations. tell us the key takeaway. tom: i am a bit worried i am tempting fate. i am for it he much guaranteed that the bubble won't pop, it will be a total meltdown by the weekend. hopefully not before i managed to scoop up some royalties. i lived in beijing and shanghai from 2007-2018. the consensusme,

view from western economists was safely pessimism on china. they said it was a bubble, they said the bubble had to burst. it never did. my motivation for the book was to explore why one of the reasons for resilience and china -- it should impact the future. >> we are just getting the latest coronavirus numbers. the thing is that if a pandemic does not stop, if it does not ring about the moment that everyone has been warning about with china for so many years, what does? does the post pandemic world challenge or actually give beijing more opportunity and control to be able to manage this debt and growth might catch up?

>> i think slower growth is worse for everyone. a slower growth world is going to make it more challenging for china. i think you put it exactly right. while we have businesses with a lot of debt, we have local government, we have real estate developers with a lot of debt, what happened to all of them in ?he first quarter of 2020 the bankruptcies went up. i would say that there is a wave of bankruptcies. china had this huge covid-19 stress test. i think you put it well notself, it -- if this does knock it over, what will? tit-for-tateing

retaliation between the u.s. and china. tensions are spilling over in that relationship. could that knock china over? tom: if we went back to 1978 when the door was open to between china and the world and the u.s. president, jimmy carter at the time said china can't play, can't participate in the global economy. that would have been a catastrophic moment for china. those reforms would not have even started. china is the biggest exporter in the world. one of the biggest importers. europeaninationals, multinationals, japanese multinationals, all deeply invested in china. as a source of supply, a driver of demand. what we have seen in the last two or three years is that you can't just turn that off without

causing really serious damage to your own companies. trade wars, good for china. absolutely not, trade wars are not good for anyone. could president trump decouple from china and the way that he has adjusted question mark i don't think so. suggested? i don't think so. >> you had a buddy who was a ping-pong player, what did that about the chinese economy? >> i did play table tennis a lot in china. i don't like to brag about that. is a interesting, there lot of corruption, there is a is af nepotism, there mechanical, almost inhuman approach to china -- teaching children to do these exercises

when there is school -- they are in school. there are these problems but china is by some distance the best table tennis nation in the world. i think there is an analogy there. yes, china has a bunch of problems, yes, there is corruption. the massive size, the government so determined to develop, these are the overwhelming advantages. china is not going to fall over, we have a great story ahead of us for the next five or 10 years. >> we will have to leave it there, that was tom orlik. check out his new book. let's turn to karina mitchell for the first word headlines. >> you could call it a game of ping-pong. the u.s. is raising pressure on

chinese media. are the outlets people's daily, the global times and the china news service. will bes in the u.s. treated as chinese diplomats on identities.s the talks between the u.s. and russia are said to have gone very well. was about aeeting treaty that essential expire next february. chair withsted a chinese flags and said that china is a no-show. russia pointed out that beijing had never been scheduled to attend the discussions. version galactic is the second galacitc says they will recruit candidates and will offer end-to-end training and

resources. last month, spacex was the first private organization to take people into orbit. has somethingon to smile about. he joined an exclusive club of the world's 10 richest people. that is according to the bloomberg billionaires index. and he ownsillion 42% of reliance and has benefited from a flurry of investments that have made his company net that rate. day,l news, 24 hours a powered by more than 2700 journalists and analysts in more than 120 countries. i am karina mitchell, this is bloomberg. shery: up next, an occlusive interview with india's chief economic advisor. the v-shaped recovery for the economy is possible this year. this is bloomberg. ♪

>> let's get a quick check of the latest business flash headlines. softbank shares are higher after revealing it is unloading part of the stake in the wireless carrier, t-mobile. it involved almost 200 billion shares. t-mobile says it will make a public offering of about 133 million shares of stock and

grant underwriters. -- underwriters an additional 10 million shares. selling 30 million shares to a statutory trust. statement one a racial diversity. he said he is committed to the workforce being 30% black by 2024 with black lives matter protests demanding more diversity in management ranks. larry fink was one of the first executives to speak out after the killing of george floyd. ubs says as many as a third of the staff could work remotely on a permanent basis after the covid-19 pandemic. told bloomberg that the talkingnk is still about which roles will return to the office. they employ just short of 70,000

people in 50 countries and have had 80% of that workforce at home. >> india's top economic adviser believes that a v-shaped recovery for the economy is possible this year. found, --cine is can ben't think anyone comfortable with the kind of uncertainty here. i canne can say is that improve the arch on a v-shaped activity. i think that would be fair to safe. -- fair to say. >> what about india growing in double digits? hard toyear is very provide estimates for. what is quite possible is we may

-- there may be a slowdown. the magnitude of that is something. keeptually have to watching. i think we have to consistently recalibrate given the uncertainty and the unknowns that prevail at this point in time. starting from next year, onward, given the reforms that have been announced, i must highlight that india is the only country that has come up with a slew of reform measures as part of this practice. if you look at the agriculture sector, have it is asian, labor privatization,r, given these, i do anticipate the growth from next year, onwards to be quite high. apart from the impact of this.

we do anticipate growth to be 8%, to high levels, 7.5 or for sure. namurthy.as krish quest coming up, hear what says about the post pandemic travel. why she is staying positive on china. that is it for daybreak asia. we will look ahead to the start of trading in hong kong. marketsh us, bloomberg china is next. this is bloomberg. ♪

>> it is 9:00 a.m. in beijing and shanghai. welcome. i am tom mackenzie. david: we are counting down to the ultimate trade in hong kong. stocks across the region on the up. schwarzman says a v-shaped recovery is upon us. tom: a