>> good evening from bloomberg's world headquarters. we are counting down to asia's major market opens. to daybreak australia. here top stories. u.s. stocks. nasdaq seeing another high. the longest winning streak since december. two familiar names among the headliners. amazon tops $3000 for the first time while tesla falls on better

deliveries. china is facing new tensions on two fronts. president trump prepares an executive order. beijing slams london for interfering in hong kong. shery: let's get you started with a check of the markets. u.s. futures right now opening flat. this after we saw stocks jumping in the regular new york session. we had broad bullish global sentiment as we saw the stock rally in china. the s&p 500 closed higher for a fifth consecutive session. where talking with the longest winning streak since december. amazon rising past 3000 for the first time. the nasdaq composite closing at a record high. we had this risk on sentiment sapping demand for havens. the dollar index down for a fifth consecutive day. what oil is doing. unchanged. unchanged.

crude oil inventory data comes out later in the week. investors weighing not only crude supplies and the surging infections but the u.s. eco-data. we are talking about nonmanufacturing index confirming the economy is bouncing back fast with the manufacturing index above 57 in expansionary territory. let's see how things are shaping up for the asian markets. sophie is in hong kong. sophie: asia stocks are mixed but higher, heading into a session that brings us samsung's preliminary second-quarter earnings. wages from japan alongside a record bond sale. the demand could determine if the steepening trend continues. of the policy decisions on tap, more easing anticipated for the malaysia central bank while the rba is seen standing pet. will watch for any updates. a busy session after asia stocks

rose to a february high on monday. flipping the board, the risk on rally did push hong kong stocks to the global market after rebounding $1.1 trillion. from here, another 10% to go before the hang seng can reclaim pre-pandemic levels. is drawingck rally comparisons to the 2015 bubble with a surge in momentum. leverage in the stock market is at about 2%. shery: sophie in hong kong with the latest. we do have breaking news. that thew hearing keystone pipeline will remain blocked. this according to the u.s. supreme court order. this is coming on in order that applies -- the case is on appeal. it will remain blocked. this is one of the biggest u.s. natural gas pipelines under

construction. we have seen president trump tried to press ahead with this new pipeline construction. we are hearing the u.s. supreme court order will maintain the keystone pipeline blocked for the time being. we will have more details as we get them. let's get a closer look at the u.s. rally, which kept the our guestck surge joins us on the line from pittsburgh. great to have you with us. we continue to see this market rally. being fueled by chinese stocks gaining ground. with so much liquidity in the markets, is this just and evitable and what does this say about how long the rally could last given that monetary policy might be for the long run? what happens when fiscal stimulus runs out? >> it is a big old math problem now. part of the is the central banks

having much lower interest rates. that drives the multiple that investors should be willing to pay for any kind of asset that has cash flows associated with it. that is the problem. now that we have had that bump in the multiple that we are willing to pay for again whenever interest rates dropped at the beginning of this year, we have a problem that we have to show our cash flows are increasing. today's information about the pmi in america -- that certainly did give us some hope that the economy is rebounding quickly. as a cautious investor and i am not a bear -- i have to tell you this. never a bear. there is onlyhat so fast we can come back. it is the level to which we are going to hit a ceiling that

worries me. i guess i am alone in this because investors seemed to pile into stocks today. that is the question. when will the quick recovery slowdown or will it? shery: especially when it comes to the stretched parts of the market. we have seen the nasdaq composite at a record high. the gtv chart on the bloomberg showing how even chipmakers, semiconductors are looking strong. they have broken out of the range. 200 day moving average. trading above that level. a -- that take seems to be that tech seems to be a long-term story, how do you see this sector as it pertains to the rest of the market? is it overstretched or given that there is a narrative the hind it, it could still have a leg up? kim: i am looking at the narrative and thinking that spending like corporations and especially on initiatives like

5g, which then supports things like autonomous cars and other machine productivity enhancing technologies. i think that narrative can continue. you have to be cautious of what you are buying and why, but if you look at that narrative and look at the semi conductor space, i think we have some argument to be a buyer of that area as opposed to a holder or seller. like in thedo you 5g space in particular with telecomstaining to as we see the struggles over huawei and what we see in communications and tech right now? kim: if you want to have a little lower profile or lower risk approach, what you say is, i do not really know what 5g networks are going to look like

and who the vendors are going to be, but i know that capacitor -- capacity is going to get added. nx.ike vendors like xl they have semi conductors that capacityxpanding the of existing 4g networks. that is the things i have a soft spot for right now. shery: how much does geopolitical overlay when it comes to tech inform your investment decisions at the moment? statelesshas been a area. huawei, iustup over think you have to pay attention to the where the chips are made and whose products they go into. that is of importance. sadly, we have to pay a little geopoliticaln to

-- to the geopolitical arena. linx and aink xi couple other non-chinese semi conductor companies are going to have to have room to grow. haidi: always appreciate your time and getting the optics for us. brokernder and cio of capital partners. the rba is said to keep policy settings on hold. to guest joins us next preview the decision until this why he sees a tale of two discoveries. coming up next, global tensions with china are on the rise. the trump team readies new measures while beijing threatens retaliations against the u.k. this is bloomberg. ♪

>> you're watching daybreak australia. i'm karina mitchell.

the u.s. remains a focus of the coronavirus pandemic with countrywide cases rising by more than the past weeks average. florida and arizona saw new infections below recent levels. new jersey saw the rate jump to the highest in two weeks. mitch mcconnell expects congress will pass one final virus rescue package later this month, saying the country needs and other boost. saudi arabia is rated -- is raising prices for oil chips to asia. amid signs energy demand is covering. aramco lifted its official price to asia for a third straight month. it has raised its price to the u.s. for a fourth month. the kingdom is still asking all producers to keep cutting supply to rebalance the market. fire causeda significant damage and will slow the development of set -- of centrifuges. the cause of the incident has

been determined and will be announced later amid local reports the plant may have been hit by a cyberattack. tehran says it will replace the building with a bigger one that has more advanced equipment. global news, 24 hours a day, on air and on quicktake by bloomberg, powered by more than 2700 journalists and analysts in over 120 countries. i'm karina mitchell. this is bloomberg. china is winning the u.k. will face consequences if he chooses to be a hostile partner after it emerged the government is preparing to phase out huawei equipment. new details of the hong kong national security law were just published. let's cross to our chinese correspondent for more. what more do we know about the details of this law and how it is going to be rolled out? selina: hong kong's government just published the additional details in an official gazette.

the title says implementation rules for article 43 of the national security law. it reads that during an investigation into a possible offense of endangering national security, a senior police commander may authorize officers to enter properties without a warrant to search for evidence, in urgent situations. police officers may also ask a magistrate to acquire -- to require a suspect to surrender their travel document to stop them from leaving hong kong. the secretary for security may also free someone's property if they have reasonable grounds to suspect it is related to a national security offense. you had mentioned the huawei deterioration of elections between the u.k. and china. china's ambassador has hit back at the u.k. on a number of fronts saying if the u.k. wants to make china a hostile partner,

they will have to bear the consequences. adding that if the british government does ban while way, it will show the u.k. can longer follow an independent foreign policy. this national security law has soured relations between the two countries. the u.k.'s promise to offer a path of citizenship to 3 million people has been met with harsh criticism from china's ambassador who refused to rollout blocking hong kong citizens from leaving to take out the u.k.'s offer of a new home. criticizing the british government for quote, gross interference in beijing affairs. more: we are seeing tensions rising between china and the u.s. president trump talking about issuing a series of executive orders. one of them could include something related to china. what do we know? selina: trump street of staff -- trumps chief of staff says they are preparing to issue a series of orders on manufacturing and prescription drug prices.

he told fox news that we are manufacturingng back to make sure the american worker is supported. he did not specify when the orders would be issues. he would not offer any further details. he did signal that manufacturing incentives are a priority when it comes to talks over the next round of coronavirus aid. shortly after the televised remarks, trump tweeted that china has caused great damage to the united states and the rest of the world. we continue to see this escalating anti-china rhetoric ahead of the elections in november. haidi: we are seeing beijing police arresting an outspoken critic of president xi jinping. this is part of a renewed crackdown when it comes to criticism of the government's handling of the pandemic? selina: there is a growing list of critics who have been arrested since january for

writing articles criticizing xi's handling of the coronavirus outbreak. the particular case you mentioned is a law professor who was taken away by police from his house at a beijing suburb. this was according to a friend who said she got the information from his domestic helper, his wife and students. she said she believes his arrest was linked to a book he published in new york last month, which was a collection of political essays with scathing criticisms of the communist party's role. he said china was quote, backtracking toward the mouse item -- mao zedong totalitarian rule. shery: coming up, virus cases slow in florida and arizona. early signs emerge elsewhere. new jersey says it is seeing evidence of a fresh wave of infection. this is bloomberg. ♪

shery: during there anthony found she, the top infectious diseases expert, says it is likely any coronavirus vaccine it only finite protection. he says the country is still knee-deep in the first wave of the pandemic. let's bring in the bloomberg health care reporter. give us an update on the situation in the sun belt where it has seen a resurgence of the virus. >> we have been hit heavily across the south. some huge states. texas is rising. florida, california. in some areas, the increase is slowing. it is still growing overall, which is a concern. the governors are starting to require masks, shutting down beaches, closing indoor dining. they're trying to get a handle on the virus.

latest whenis the it comes to a vaccine and if we do get one, what do we know about potential efficacy? how quickly would we be able to get in front of this virus? michelle: we are still expecting to have early results coming any day now that would show how the vaccines are working in the initial clinical trials. the studies are beginning. the large ones that are 30,000 people in each one of these trials. there is about half a dozen of them planning to start the next couple of weeks. researchers are expecting to have early data from those trials. it is not the final data but enough to get an indication of it is going to work or not. the question is, what does working mean? dr. fauci said today he does not think it is going to be like you get a vaccine and you are good to go. you are now invulnerable to this virus.

instead, it will give you some protection. we do not know how many people will benefit. we do not know how long they will benefit. we do not know if they will need more shots in future years. haidi: what does this mean -- shery: what does this mean in the broader context of the pandemic given that we do not know how effective the vaccine could be not to mention you also have mass production issues at play? michelle: there are so many moving parts. it is complicated. if you think about something like the influenza vaccine, they are only about 50 or 60% effective. even if you get it, it is not always help you. because enough people get it, it does reduce the amount of virus circulating. we are hoping we will get something like that or even better. the other thing about influenza viruses, need to have them every year. we will see if we will be able to get to those numbers. shery: health care reporter.

key u.s. stimulus programs like the paycheck protection program and the supplemental unemployment benefits are set to expire at the end of this month. questions on the veracity of the blockbuster june jobs report. the labor secretary says any further aid will look very different as the u.s. economy continues to reopen. >> the paycheck protection program has been really important for americans employed by small businesses. many of them minorities. that helped keep them on payroll. the president has continued to replenish that program. we had this substantial unemployment benefit in the cares act, which the president signed. $600 a week. that has been important to americans put out of work. longer-term, what i would say is going to be most important is what worked before. the president's policies that incentivize business growth.

that is what is going to bring jobs back. that is what is going to lead to rising wages. the usmca went into effect last week. nafta was ushered out last week. that is going to be a good thing for american jobs. >> there is no question on those numbers. everyone was happy to see them. we still have a long way to go. we have millions of americans who do not have a job right now. at the same time, the numbers -- >> absolutely. we still have progress to make. >> the numbers you're looking at stopped mid june. . since then, there has been a resurgence of the coronavirus. how confident are you in those numbers? i have seen reports that you are not getting the same level of responses in your surveys. are you confident in the numbers? >> we are confident in those numbers. we are getting the response rate we need to are surveys to

standby. that is a question i asked occasionally. i am satisfied in that regard. you are right. we are seeing rising cases in some locations and some states. that has to be taken seriously. fore that as a warning americans across the country that the virus is still out there. we still need to practice social distancing. when that is not possible, we are going to need to wear masks. that is being reinforced. cdc, thely, the department of health and human services and others in the federal government are responding quickly, getting added personnel, bringing expertise to bear to control those outbreaks. i think we can continue to safely reopen as long as we are careful. as long as we bear in mind the lesson we observed in

california, arizona and elsewhere. to take one example, there are still 900,000 fewer people employed in health care right now than in february. those are all jobs that all to come back. employment in the government sector, much lower than in february. >> finally, you talk about the ppp. you also talked about the supplemental unemployment insurance. this is a big issue right now in washington. another round of fiscal stimulus. you and i have talked about this. hive we made any progress? do we have a better sense of what will get done? it is about this month, july 31st at the deadline on the unemployment insurance. >> the unemployment benefit and the cares act ends at the end of the month. i want to reinforce steps like the usmca. that is going to stimulate job growth. tax relief is going to stimulate

job growth. that is something that will be talked about toward the end of the month. the president has emphasized how he wants to take a closer look at really late -- i eliminating regulatory burdens. in terms of on planet benefits, there will be a discussion. it is clear the $600 a week benefit was a good thing to do when the economy was being shut down. we were closing our economy. it looks very different in opening an economy. particularly one that is doing so much better than people were expecting. we are ahead of where we thought we would be. that600 benefit is right it expires at the end of the month. coming up, the rba is said to keep policy on hold when it meets in the next few hours. our guest joins us to preview the decision and tell us why he sees a tale of two recoveries in australia and new zealand.

this is bloomberg. ♪

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shery: you are watching daybreak australia. let's get a check of the markets. sophie: we are heading for a self start this morning. global rebound in rest. the hang seng entered a bull market. chinese stocks jumped by the most since 2015. the world index is back in early june levels. this morning, sidney stocks are set to resume gains. let's check in on the aussie dollar ahead of the rba's decision. we do have the currency holding gains. holding a six day advance. just above 69.

the 70 level, rather. monetary policy remaining easy. the biggest pension fund buying more stock on bets the economy will recover from the pandemic. melbourne's covid-19 resurgence is marring australia's reputation as a standout. he compares this to new zealand, whose severe lockdown sees the economy well placed for a powerful rebound. the chief economist for australia new zealand joins us. is it ironic we have spent so many years talking about the need for states in australia to diversify away from agriculture and commodities and yet, that is what we are going to have to rely on as services looks to not

come back as a key driver for some time? thing about australia and new zealand is because we are highly reliant on commodity australia's, 65% of what we export is commodities -- this is something that will help us through this. the fact that we continue to export commodities. the fact that you have got travel restrictions does not constrain the commodity exports. above and beyond that, we have an expectation that china to support its own growth is going to deliver more support in terms of infrastructure, which is supporting demand for things like iron ore and things like race metal. it is helped -- base metal. new zealand has been applauded for its effective

handling of the virus. does that matter in an economic sense when they cannot open their borders and they cannot bring in revenue streams? inl: i think it does matter the sense that the domestic economy, which was in a straight lockdown until recently until the ninth of june, is now completely reopened. domestic life is returning to normal in new zealand. one of the clearest illustrations of that is the fact they are holding rugby matches that are fully sold out. thousands of people turning up to watch the football. that is an illustration of the confidence they have about not getting the virus because the virus has been locally eliminated. i think that spring back in domestic conditions is an important factor supporting our view that new zealand is going to have a v-shaped recovery. it is going to be one of the few

places in the world that people can be confident they do not have the virus. borders,eopening the they are going to miss out on the international tourists and the services exports. until those are reopened, the economy will not spring back to where it was. there is also a smaller wrinkle. if australia and new zealand were to open a bubble, which is on the cards, that could be a big deal for a small economy like new zealand where the tourist would provide a letter of support. shery: how much would that help the australian economy, the travel bubble? paul: a lot less than it would for new zealand. if you look at australians travel abroad in numbers, in 2019, they spent 50 billion aussie dollars on international travel. 4 billion of that went to new zealand. about 1.5% ofn is

new zealand's gdp. cannot travel anywhere else, if they redirected some of the funds toward new zealand and went thatg in new zealand, could be a large deal for the new zealand economy in terms of providing overall support. a smaller economy getting a big lift from opening to a bigger trading partner like australia. shery: both the kiwi dollar and the aussie dollar have been boosted by this risk appetite. how much of a problem could it pose for the rba if you continue to see the aussie dollar close to the one-month high? the dollareason why is lifting is because the australian story has been positive. there has been a global risk on improvement. the governor of the rba has pointed out the rba is not that worried about the aussie dollar

having lifted because it is lifting for the right reasons. the australian economy is looking as though it has been doing better. at the moment is we have this cluster outbreak in victoria. in a broad sense, australia is still doing better than a lot of others. look athen you take a the suppression efforts in affecta, how does this confidence and how much is that a concern for the rba, potentially more so than other micro factors? something they are going to be watching carefully. the key thing here is there is no evidence it has moved to other states. the other states of australia and territories have got close to zero community transmission. very low k's numbers. they are still on the reopening process.

victoria is more challenged. thatfits with the idea australia was destined to have a gradual recovery rather than a v-shaped like what we are seeing in new zealand. delivering suppression rather --n elimination was likely to have a gradual recovery. certainly something the rba will be watching. we are not expecting the rba to announce anything else. the rba has said they think from here on in, support has to come from the fiscal side rather than from monetary policy. they are not considering negative rates. they are not considering other actions at this point. shery: great having you with us. a big interview coming up as must -- as malaysia could be said to deliver a 25 basis point

meeting.s own policy we speak exclusively to the finance minister about his plans to tackle a 5.5% contraction in growth this year. governor saysnk he sees the light at the end of the tunnel for the economy as consumer spending has picked up. there is still a need to remain vigilant. he spoke exclusively to bloomberg on his outlook for the recovery. >> i think it is too early to say a v-shaped. barring any downside risk coming from the second wave or more negative development in the global economy, we remain -- we see light at the end of the tunnel, yet we remain vigilant. >> since the coronavirus hit, you have stepped in with all kinds of support programs. some of them are going to expire in september.

do they get extended? supportve a program of that has three elements. the first one was targeting the sme's, the federal payments or the funding with 95% guarantee affordable cost. also the guarantees on behalf of the sme's to the program where we guarantee -- we pay the fees for them. the earlier program, particularly the deferral of payments, was successful. a 70% increase on the amount. the second one was the injection of liquidity. 50 billion. that came right after opening the economy june 1. the aim was to enhance the banking liquidity and enable the banks to lend more. this has given banks more room in terms of liquidity. the third one was the open market operation, which was

commenced at the end of june where we did not see a strong appetite coming from the bank given that we still have plenty of liquidity. back to your question, where we might extend or not, we are still reading all the indicators. this will depend on the sector when it comes to the program. >> last time, you did not have a view. pointu at this encouraging more m&a in this sector? >> you do not want to encourage. signal of m&a as a dynamism in the financial sector. as a regulator, we do not see harm if the institutions find themselves -- they have the desire to merge. they find that they can add value and we agree with that. they add value to the economy.

that is what we saw in both mergers. the first merger, which did not merge.ace, we agreed to we agreed when they showed intention to separate. this time, we also agreed when they showed intention to merge. still, theber that stilll stage -- they are in the process of the merger and acquisition. they will be subject to the approval of all the regulators including the general authority for competition. >> the saudi foreign currency reserve has been front and center for much of our coverage in terms of understanding the impact of the coronavirus and the lower oil prices. we are still at the lowest level since 2011. when is a recovery on that front -- what is a recovery on that

front likely to look like? dollars withn u.s. around 40 months of coverage of imports of goods and 80% of the broad stock of money. we did not see significant changes at the end of this month with preliminary data. our ratings -- what impacted this was the transfer of 40 billion, which was a strong hit. one-off transfer, but it was a transfer -- a strong hit. more positive signals coming from the oil market, which we see them right now. haidi: that was the saudi arabian central bank governor speaking to bloomberg from riyadh. coming up next, tech stocks

define gravity. amazon a clips is the 3000 dollar milestone. investors are diving into tesla. we get a reality check of that euphoria next. this is bloomberg. ♪

>> you are watching daybreak australia. we begin with our first story. president trump is said to be

preparing new executive orders on a range of issues including china. chief of staff mark meadows says the white house is looking at how the white house should liaise with china. meadows said other issues including manufacturing issues. president trump said china has done great damage to the u.s. and the world. u.k. confirms it is reviewing any role while way will play -- role while way will play. back in january, ministers allowed huawei. reassessinge now the decision following u.s. sanctions imposed on huawei. >> i have also determined the u.k. should not be vulnerable to a high risk state. we will have to think carefully about how we handle that. we will have to come up with the

right technological solutions. huawei is an example. we believe that to embrace huawei is not in the interest of china. it is in the interest of the u.k. >> the hong kong government has published or details about the controversial security law imposed by beijing. police investigating possible offenses will be allowed to enter properties without a warrant in what are called urgent situations. suspects could be forced to hand in travel documents and assets could be frozen. global news, 24 hours a day, on air and on quicktake by bloomberg, powered by more than 2700 journalists and analysts in over 120 countries. this is bloomberg. china's new national security law has prompted a group of tech giants to hit

pause on their work with hong kong. su keenan joins us with more. which tech firms are we talking about? what actions did they take? su: we are talking about google, facebook and twitter. they are confirming they are not going to process user data request from the hong kong government over concerns for security law could criminalize protest. we understand last wednesday, google began putting the processing of requests on pause. we are going to continue to review the details of the new law. while it is unclear what actions will violate the law, it appears they are concerned all three social media companies -- about whether this will put the focus on protesters. facebook typically works with law enforcement to follow local laws. they say they are reviewing the human rights impact of the new security law.

twitter is also said to operate at much the same way and positive data request immediately -- and pause its data request immediately. the twitter spokesman added the company has grave concerns regarding the development process and the intention of the law. also important to point out that facebook and twitter do not operate in china, but they do in hong kong. google has a significant presence in hong kong, which includes sales staff that works with chinese companies. the bloombergg right now, tech ceos will be testifying to the house tradition area antitrust panel. this would be the ceos of facebook, alphabet, amazon and apple. we continue to see more regulatory scrutiny on these tech giants. big gains for the stock market. the tech stocks had a rally as well. all ofll of this -- su:

this putting tech in a huge light is a monster really continues its paste. check out tesla. -- monster rarely a combined value of detroit's big three. it is adding about 14 billion a day in valuation as a lot big institutional investors jump in. analysts say it is the ultimate stay-at-home play. even so as it rose above 3000 for the first time, up 12% in the last four days, analysts are scrambling to keep pace with the most bullish of expectations. many analysts you expect the trend of the online retailer and the cloud computing to continue. if we go into the bloomberg, you will see it keep getting bigger. you have amazon right in there with microsoft and apple.

above 3 trillion in valuation. meanwhile, there are technical charts that are warning stocks are wildly overextended and set for a retreat. what is getting analysts scratching their head is retreat is nowhere in sight. shery: on that story, about the tech giants processing user data, we are hearing a response from apple saying they have not received any data requests since the new security law was implemented. apple is saying it does not get the data requests directly from hong kong. it is now assessing this new hong kong security law. is said tosamsung report its second-quarter earnings in over an hour. we will get you a preview next. this is bloomberg. ♪

shery: we are do to get samsung's plumbing or update to its second-quarter earnings report. analysts expecting the numbers to be hurt by weak smartphone sales. perhaps higher demand for chips could have boosted the final number. joining us now with a preview is ian king. what are we expecting in terms of the broad result?

will the chip sales make up for some of the weakness we are going to see in smartphones? we are getting samsung's preliminary numbers. we will not get much of a look inside what is going on. on the top line, we are expecting sales of 50 trillion yuan. down about 11% from a year ago. we are down to 2017 levels of revenue. the good number might be being helped by the chip business. margin,up is the gross which is a key indicator. it is expected to be an upward -- on an upward trend. haidi: when it comes to a meaningful offset from the plunge in phone demand, what do

we see as being a boost from huawei? ian: what is going on in the phone business is obviously, the first quarter was terrible. the worst decline on record for the smartphone industry. the second quarter, we saw more of the world going anti-lockdown due to the pandemic -- going into the lockdown due to the pandemic. the rate at which china open backup, that is the largest market for smartphones. optimism. has to be tempered by the fact that while way -- that huawei shifted emphasis to its own market and has been taking market share. very difficult to be optimistic about the phone business. continues tosung make headlines on the legal troubles, especially around the

vice chairman, what do we know? this has been an ongoing saga. from the samsung perspective, it is more of a headline risk. was they wereng successful in court. they are trying to potentially send him back to jail. . he got a preliminary ruling, which will not allow that to proceed. that has been a headline risk. it creates this uncertainty about the samsung group as a whole. in terms of the company's operation, he is not that involved in the day-to-day running. the chip business is regarded by many as the crown jewel of samsung. it is on the up at the moment. we have seen a smaller competitor talk about how to have stabilized and there has talk about how

things have stabilized. from: ian king joining us san francisco. let's get you a quick check of the business headlines. air asia a record quarterly loss . the coronavirus slashed worldwide travel. lostiggest budget airline $188 million compared to a profit of 22 million a year earlier. tony fernandez because at the toughest challenge since they launched in 2007 -- in 2001. they applied for loans to boost liquidity. china has suffered its first major developer bond assault in five years. aluxury builder failed to pay 210 million dollars note on monday because of what it calls short-term liquidity problems caused by large debt. first developers since

the offshore blowup. up.g interview coming we speak exclusively to the finance minister of malaysia. you do not want to miss that. this is bloomberg. ♪

shery: welcome to "daybreak asia ." i am shery ahn in new york. haidi: i'm haidi stroud-watts in sydney. our top stories this hour, asia looks set to a quiet start despite triggering the rally that lifted global stocks. the s&p 500 on its longest winning streak since december. samsung reports second-quarter numbers this hour. analysts expect