>> good evening from bloomberg's world headquarters. we are counting down to asia's major market opens. i'm shery ahn new york. >> here are your top stories. u.s. stocks slump amid concerns the economy has a long way to go to get back on track. hotels and airlines are badly hit and tech is not far behind. florida,es in texas,

and california all marking new highs. australia's second largest city is back into lockdown as infections search. surge. officials say significant action is needed. shery: we saw this year's longest rally come to a halt with the s&p 500 selling off for the first time after a five-day rally. over an have concerns economic impact of the pandemic and virus cases rising. 10 of the 11 sectors on the s&p 500 lower most of them down by 1%. at onedaq composite, point, touched an intraday high and finished .9% lower. get the dollar strengthening and haven demand really stopping that supply

brace -- base. we are seeing further pressure and headed towards $40 a barrel. this is ahead of storage data later this week. we do have accrued inventory reports. those numbers are coming out later this week, and in the meantime, a survey showing a gap in supplies has expanded, showing how depressed demand is at the moment. let's see how things are shaping up for the asian markets. mixed andutures are kiwi stocks are opening to the this is after tuesday's down session for asia. they managed to eke out gains but at a slower pace aired futures settled slightly higher after a rally of hot money flows continuing. the hpv a intervened again to defend the currency.

we are watching japanese bankruptcy rebound after june after sticking to a low. also keeping an eye on japanese stopped -- after factory stoppages after the heavy rain and warnings for prefectures. the offshore yuan testing seven after re-fleet pushing through the level. tradesan casts seeing before wrapping up the year at 7.10 if the trade deal stays intact. a quick check on gold, which has climbed to a 2011 hi. 1800 withes topping falling yields also providing support. .eal yields fell to a low

haidi: it may be just be that it may be more than just a down day. momentum with mega cap stocks installing, which is what you're seeing on this chart. they are showing highs at a real stall in bullish momentum and we are looking at potentially the biggest of the big tech stocks potentially showing stagnation to take a weakening look at the relative strength index. let's get some more analysis with our next guest. joining us is susan schmidt. great to have you with us. we have seen tech and growth be the big drivers. it is still surprising that you would see a breather after the breathless games we have seen. we have seen a breathless pace of gains.

that's the way to describe it. really extraordinary gains since our lows and we have just seen five days of gains since the s&p 500. it's not unusual for the stocks to take a breather and it's too early to be concerned about relative strength for the big names in tech. remember the bigger names have been pushing the indices to do high -- to new highs. investors have looked for safety and growth in the market. i think it is natural to see this and we could see ourselves in a trading range as information.ingest and don't forget, we have earnings coming out. investors understand where they are with covid, have a better sense of how to position for the rest of the year we will get a lot of commentary on that be

-- ben those comments very focused on those comments. what's names and what sectors are you looking at within that space? are they economy or pandemic-related? one reason i see opportunity in health care is we have discovering cures for covid, finding something to treat covid patients. a result, we have taken our ir off the ball on a lot of oedipal technology services and that's where the opportunity lies in that space, because there hasn't been a lot of attention paid to them. we think their opportunities there and we do take opportunities in every sector

and we are seeing some opportunity with actual stocks. it's nice to see a market where you can see some opportunity. that, andalways get you get a little lost in the shuffle. some of the other names are getting lost in the shuffle that's where we are focused. where else could be driving business going forward? where else can we find growth? ameritrade numbers just showing how investors took advantage of the volatility we are seeing. this chart on the bloomberg shows how elevated it remains. , is this volatility not only giving opportunity to retail investors but also creating more volatility, given

how investors can be fickle? >> it does do both, and that's a great point. retail investors, there's a fear of missing out and they have seen these great gains. you have seen retail investors come back into the market, and that the same time, volatility is high. there will be bigger ups and ,igger downs as we move forward simply because we are dealing with this area of such unknowns. as you look longer out, further a vision ofn find how equities are going to go and how businesses will handle it, but near-term, you need to inspect -- expect volatility. we are on the cusp of earnings season.

given we can't rely on guidance with previous quarters given how incredible this print them it has been, what will you be watching? >> this will be a very different quarter. most experienced management teams can't give guidance with any forward certainty. in thest can't see short-term and they don't have a good sense of where earnings will be. and they will be penalized by the street if they do put up numbers and don't hit them, so there's nothing but downside. out,nagement teams come they will be very cautious around guidance. most teams will the for and not offer a specific target. interesting ise the commentary about how they are handling this and strategically positioning. that commentary, how they handle it, what the opportunities might

be, that's where investors should be focused and i think we will learn a lot how these companies plan on positioning themselves. haidi: always great having you with us, susan. as the virus hits new records across the u.s. and new cases in texas top 10,000 while deaths in arizona and hospitalizations in california also hit new highs. plus, consumer tastes are changing amidst the virus. we speak to the e.m. head of the world's leading snack maker later this hour. this is bloomberg.

>> i'm karina mitchell with first word headlines. settingrus numbers are records with hospitalizations in california hitting a new high

while florida and arizona set new marks. are near 11.7 million. u.s. infections are approaching 3 million on their own with a fourth day where new cases rose above 50,000. u.s. for tallies are reported at over 130,000. meanwhile, australia's second-largest city is entering an eight week lockdown. people must remain at home in melbourne except for essential work and services. tori it reported almost 200 new cases overnight -- victoria reported almost 200 cases new overnight. hong kong has reported its highest number of local transmissions in three months. nine new cases with at least three being on its land so far. get department of health say the epidemic has changed rapidly in the situation is become -- and

the situation has become severe. this comes after hong kong had seemed to largely contain the pandemic. in other news, malaysia cut its benchmark rate, warning of threats to the economy reemerging. droppednight rate was to its lowest level in records dating back to 2004. it says it hopes stimulus will accelerate recovery from the amidst inflation and the worst on rate in decades. global news, 24 hours a day on air, on quicktake by bloomberg, powered by more than 2700 journalists and analysts in more than 120 countries. this is bloomberg. shery: for more, we have our health care reporter joining us online. really surgingks on news of awards and contracts.

what you see is the united states gambling on huge bets of the future and vaccines and therapies for coronavirus. to $1.6could get up billion. -- is to help these companies start to make these products before we have evidence of if they will be helpful. the point is if this vaccine works, the u.s. government wants to make sure we have stocks, it's available for people to get it when they want it. are we getting any further clarity in the debate of its masks should be mandated? >> it's absolutely the case that masks should be mandated.

bricksd a dr. deborah talk today about the need for masking, and across the entire public health report, there's absolutely no question. there is the issue of personal responsibility and personal choice, making you think back to optionalwhen it was and the idea that people should be able to take chances with their own lives. but the idea is with the coronavirus, a mask is to protect others, not necessarily to protect you. everyone should really be wearing a mask and hopefully at some point, the government will come in with some kind of national mandate, but really don't hold your for that -- your breath for that. shery: mike president pence saying in an interview that it is the right time to notify congress on the who exit word --

exit. we have seen them formally carryout that action with a letter. ?hat is next on this front >> it is a one year notice. pays $500overnment million a year to the who and the program they had enacted had phenomenal benefits for people across the world when you are thinking about something like coronavirus, the problem is that if we vanquish it here in the united states and are able to completely get rid of it with masks and hopefully an effective vaccine if they don't get it under control, it will continue circulating. part of what is happening with the trump administration is they want the who to be more responsive to the u.s. and others in her hopefully just

trying to prod them along. michelle cortez, our health care reporter with the ovavax.on the n their ceo told us why they think he can deliver millions of doses this year. >> the vaccine has an accommodative protein and a large-scale and then the ability to stimulate antibody responses -- oh responses that should be protect. we also mix it to boost the immune response to the antigen. both. vaccine has you would think of components are important. >> do you think a world where we

get a one shot down thing is realistic? here you give me perspective on a multi-shot deal? is we are trying out one dose at day zero and are following that up the dose of day 21. approachestaking where they are trying just one .ose we are calling despite protein is a protein on the virus that binds to your human respiratory cells. if you bind antibodies to that protein you can block it. there are three main ways we are making this protein. one works inside of a viral

vector that has been killed so it does not infect you. mrna that to make encodes the same protein. ours is a more prudent traditional way. it's to actually make the protein itself which forms the nanoparticles and is absorbed by the immune system. so those different ways could result in three different immuno responses. some more, some less. the data will show us. we are off, all racing as fast as we possibly can. we will get data by the end of this month and those phase i trials should turn into phase two trials in august. and by sometime in the fall we should have some evidence because we are going to do this in multiple countries. that our have evidence

vaccine protects. >> you talk the other day about the fact that we are starting to see you tatian's in the virus -- mutations in the virus. >> with that affect the spiky were talking about? about?e you were talking >> so far, we are in the clear. that's why you want to have a vaccine like ours which is a full-length protein and stimulates antibodies to many parts of the protein and broadens the response. so far, we are ok. >> there is a lot of different development out there. how difficult is it to get test patients to try a vaccine? >> it is a question that is increasingly asked because it is not hard to do a phase one study.

as you get into trials with 30,000 people you can get into that as well. there are lots of people who would like to have an experimental coronavirus vaccine. it has to be worked out and there are certainly plenty of trial sites in the no shortage of people who would like to try a coronavirus vaccine. that can be sorted out. haidi: that was the novavax president and ceo. shery: breaking news at the moment. people familiar with the matter are telling bloomberg news that the hong kong dollar was not yet raised to president trump, adding that this is a proposal to undermine the hong kong dollar. for -- from present

trump, who wants to undermine the peg to the u.s. dollar, as the administration considers options to punish china as we continue to see tensions between washington and beijing. soar inp, as cases brazil, we will discuss the impact of jair bolsonaro contracting the virus. number -- this is bloomberg. ♪

president hass tested positive for covid-19. bolsonaro has consistently belittled the virus threat, spite cases and deaths across the country soaring to the second highest in the world. joining us is the economic editor for latin america. that him actually getting the coronavirus will make him change his view on the

policy he has pursued so far? >> that is a really good question, and we don't have any indication he is going to be changing tactics at all. in fact, when he made the announcement he had tested positive, rather than encouraging brazilians to where face masks were changing some he doubled down on something he had in pushing all along, which is that the economy has got to keep moving and quarantines are hurting the economy. he actually said that economic ruin could lead to more deaths from suicides than the virus itself. in the meantime, is brazil having any success in containing or dealing with the virus? >> unfortunately, no. we just see increasing numbers every single day, increasing numbers of cases increasing numbers of deaths.

the epicenter is releasing into the more rural areas and the cities. we don't have any indication that we have even peaked in brazil. and at the same time, the .ountry starting to reopen in rio de janeiro, we sub videos a packed bars without businesses. there's the inevitability that the virus is sweeping over the country and people are just tired of being in quarantine. the economy and government editor for latin america joining us with the latest as jair bolsonaro tested positive for covid-19. coming up, we will talk to the head of emerging markets for how they are managing the fallout on

their business. this is bloomberg. ♪

49... 50! i found you! good job. now i'm gonna stay here and you go hide. watch your favorites from anywhere in the house with the xfinity stream app. free with your xfinity service. now any room can be a tv room. stream live tv, on demand shows and movies even your dvr recordings. download the xfinity stream app today to stream the entertainment you love. xfinity. the future of awesome.

watchingu are "daybreak australia.": it's get a check on how markets are trading at the moment. a pause on the market rally we were seeing across the u.s.. selling off after a five-day day rally. we are seeing a fifth session of .ains futures are under pressure. emerging market prices unchanged at the moment as we continue to see the dollar strength in a little bit on havens. marketseen money

currencies rising yesterday. that seems to be holding on for today's session. arehe effects of covid-19 felt throughout the world, consumers are changing their buying habits, forcing customers to change their strategy -- forcing companies to change their strategies. thank you so much for staying up late for us. we have plenty to talk to you about. we want to know about how consumption habits are changing in emerging markets. how are they being affected by this pandemic? >> thank you for having me. it's a privilege to talk to you. there are categories oh that continue to grow even in -- there are categories that

continue to grow even in covid times. families are eating together, watching tv together, playing board games together, and all of those occasions, our products are present. change ining a purchasing behavior. instead of going outside to a areenience store, now they going directly through digital, buying larger packs instead of angle packs. but the habit of eating snacks continues to be there and continues to grow. agile and creative

with the consumer as they change these haven years. shery: -- change these behaviors. shery: would you say there has been a path when it comes to revenue and sales? becausee very fortunate we have a diverse portfolio. segment.he food we have the confectionery segment. we have the snack segment. three segments. the performance of mars inc. is good at this time. our government business is consumed outside of business isgum consumed outside of the home.

people are celebrating, having meals together, watching a move together -- movie together, watching tv together, we continue to see many of our products being consumed and on the rise. course, there has also been a push for fitness after months of being locked down at home. has that impacted your business? there are people who want to get healthier and stay away from snacking? is bringing to the table and awareness of healthier snacking. brands have a place in a healthy consumer diet for anyone. . have chocolate every day we are seeing that although they are snacking on healthier

choices, they also need chocolate or other confections. we also have different types and different offerings. we have the kind bar, which is , and forr you consumers making healthier choices. we have a portfolio to capture that consumer ship. pandemic, andis we continue to see the supply chain impact play out. business?mpacted your betweendifferent europe, asia, latin america. during covid, we have had three priorities. first, the health and safety of our workforce. second, the need to keep

operations running. keep factories running. products to market so that consumers can enjoy them. , how do we make this challenge and opportunity to be creative with our resources and consumer demandun as they shift their behaviors. so we are keeping factories running. thanks to people across the have who are engaged, we found creative solutions for keeping them safe, which was our number one priority. at the same time, we are able to keep 99% of our factories running. >> the fact that you have not seen real supply chain disruptions, not just when it comes to ingredients in the manufacturing process, but what

about distribution points, given that so much of the world has remained shut down because of the pandemic? >> from a supply perspective of raw materials that enter our factories and then we convert them into finished product, we have not seen a disruption. productshose finished and serve them to the consumer. there are certain lockdowns in certain cities for a couple of weeks or so. --t allows our products to that did not allow our products to reach retailers. but as lockdowns have gone down we have been able to reach those distribution points. it's a volatile situation. there is likely to be disruption on the way to get products to retailers. but we are finding every day ways to create solutions, mentioned,hat i

shifting to digital, direct to consumers. we can serve the consumer directly, and we have been shifting our capabilities and resources. >> really great to have you with us. the oecd says the unemployment 9.4% in theeach fourth quarter of 2020 and rise even further if the second pandemic wave hits. oecd secretary spoke about the global jobs future and how he sees the recovery. >> there is some optimism in terms of some of the numbers getting a little better pretty fast, but that was to be expected. the question is what happens in the medium and longer term? when we see the more structural damage that was caused by the crisis. a u-shaped we see

recovery, not a v-shaped recovery. the question is how long the last? part of the u will >> the system in germany is one that has been sort of toyed with for a long time, twisted, and got right. it is probably more sustainable than others around the world. the united states is talking about ending some of the protections it's providing. how sustainable are these programs? you talk about the need to carry on, but they are incredibly expensive and we wonder at what point we need to start thinking about not protecting jobs, but retraining people to find new jobs elsewhere. >> first, there's the question of the pickup. in some cases, including the united states, they prolonged the eligibility for the companies to pick up some of the benefits, including small and

medium scale businesses. because there are still $120 billion or something like that on the table. so there is the question of whether they are fully using these benefits. something germany, that was already practiced by the industry and businesses during the crisis, therefore, people know what to do. people know what forms to fill out. they know how to account for their staff. it's also a question of culture. , there ise of germany a great level of trust among the private sector and the unions and the government to face a crisis. in that sense, all these things are important in explaining the higher pickup. now, how long can they last? well, this is why we have to

throw everything we've got at the crisis, everything we've got at the virus so we can beat it as soon as possible, and the recovery will not be so expensive. eventually, we can also pay for the consequences, the dramatic consequences of the virus itself in terms of unemployment, how many companies are going to fail, how many large companies are going to have to be intervened by the states when the states are becoming shareholders now because otherwise the companies would go under. pe forr the state. our impression is the state is going to have to be very active .or some timeiod period for thee

state. our impression is the state is be very have to active for some time. the gradual reopening is providing some relief. if it is done well, if the closing was long enough, appropriate, and tough enough, they are having better results now. the world is today more safe. if you take the 50 states of the united states, that in itself is a mosaic of different ways to approach the pandemic, and then different results. , theding on the take policies that you decided to take. >> that was the oecd secretary-general angel gurria. we have a report that ann taylor's owner is preparing to file for bankruptcy in order to

cut debt. the brand is behind around 3000 stores across the united states. it is now filing for bankruptcy and planning to shutter at least 1200 of those locations according to people with knowledge of the matter. more than 50,000 jobs could be affected. this is based on the most recent annual report. we are learning that the ann taylor owner is preparing for bankruptcy to cut debt and stores. heidi? >> we continue to see that destruction of retail in the u.s. we take you live now to belgrade, where it is nearing 1:00 in the morning. you are seeing large crowds, angry crowds on the streets. we continue to see thousands of protesters clashing with police in the capital of belgrade after the serbian president said the city would be going into lockdown. covid-19.ecause of

he says the hospitals are overwhelmed and at capacity. in theseeing riot police streets. some of the protesters were throwing rocs. they are outside the parliament house in belgrade. on the streetsgh ahead of the announced lockdown for the weekend. australia'sxt, second largest city is back under lockdown after a sharp spike in coronavirus cases. we will look at what put melbourne back into virus turmoil. this is bloomberg. ♪

>> you are watching "daybreak australia." i am karina mitchell with first word headlines. the vice president of the federal reserve says the u.s. can and will do more to help the economy. they will be offering forward guidance and asset purchases to support the recovery. rates aregnaled expected to say the same to stay the same through 2020. shipments fell slightly more than forecast from taiwan

to china, leaving a trade surplus. meanwhile, north korea is ramping up tensions with the west, ruling out talks with president trump's envoy. talks were called nonsensical as relations continue to sour. news 24 hours a day on air and on bloomberg quicktake powered by more than 2700 journalists and analysts in 120 countries. haidi: australia's second largest city is going back under lockdown after a sharp spike in coronavirus cases. our analyst is watching all of this. what caused the resurgence of cases we are now seeing? >> the premier of victoria has

ordered a judicial review to find that out. 190 one new cases yesterday in melbourne. that far exceeds the early days of the coronavirus outbreak. as to what caused it, media reports point to some monumental lapses in hotel cleaning procedures. the results were not great. there was improper use of protection equipment. guest's were allowed to mingle with each other. they shared cigarette lighters, and went back to their communities and had family gatherings. a real litany of mistakes has plunged this city of 5 million people back into lockdown and had utterly profound effects on the economy. newy: what are the restrictions in melbourne and will they be enough? paul: well, the restrictions are

to stay at home for another six weeks. you can go out for work, exercise, or essential shopping. gatherings of two people maximum. take out food only. made oncision will be schooling after that. the border between new south wales and victoria has been closed for the fifth time in more than 100 years since the spanish flu outbreak. that is a major logistical undertaking. about 50,000 vehicles cross that border every day. airport is one of the busiest in the world. that's now gone. it's a logistical nightmare. shery: paul allen in sydney. coming up, singapore heads to the polls this week. we will hear what the opposition .as to say the secretary general of the

singapore democratic party is up next. ♪

shery: one of singapore's leading opposition parties has criticized the government for using a fake news poll to promote the chairman. authorities had actively discouraged testing for migrant workers. in response, the government

outlets to say this quote contained false statements. the secretary-general of the singapore democratic party for his response. >> come out and clarify it. why use the law? and then we can have a healthy debate. it's something we feel is a complete distraction, not healthy for the political discourse. been inuling party has power since 1965. are 11 opposition parties this time around. been -- hasre not there not been better coordination among the opposition parties? to build uptime

.hat confidence, that trust instarted off, remember, 2018, calling for that. in the past, you would not have seen opposition parties coming together like this. think you will see some of the opposition parties coming together and coming up with a common message. that's what we are going to do going forward. quite some say the opposition will be obliterated in this -- >> some say the opposition will be obliterated in this election and the ruling party will win all of the seats. your take? >> it's only in the last decade or so with the advent of new media, social media, that we have had a chance to break into the national political discourse , and we are doing it right now. but you know, everything is

still putting much in the hands of the ppe. not just fighting against the ruling party. we are fighting against an entire state machinery. many of them understand this, but a large segment of them, having lived more than half a century under one-party rule, difficulty getting and accepting information as far as the opposition is concerned to make that informed decision when they get to the polls. realistically, can you take a third of the seats in this election? >> even, for example, your polling data, whatever polls you have, that's not encouraged in singapore. actually, polls are banned.

you have all these laws in place, and you wonder -- i wish i could take a crystal ball and tell you, but i really cannot. all i know is that for the singapore democratic party, we have 11 candidates who have a clear message and we hope the people of singapore will see it for what it is and give all 11 pathetic, isn't it? 93 seats up for grabs and we are fielding 11 candidates. >> can you talk about what you would do if you are in government? >> in the immediate term, we are facing an existential crisis in terms of the economic situation caused by the coronavirus. the one thing you want to be able to do is make sure that people have continued to have confidence in the economy so they will continue spending. >> what will be in place for that?

wax we want to see some form of attachment benefits for people pay tax.oing to what do they do when their income stops coming? we want to be able to get some money so that they can shop. when they do that, they are going to use the money to spend locally to make sure businesses survive and don't go into a tailspin. >> we will have more on the upcoming singapore election when we speak urbanively to the planning and infrastructure development group ceo. softbankxt hour,

pushing into china. what he plans to do with his new mainland focus for the beijing capital fund. this is bloomberg. ♪ the best tv experience just got better

because now you can watch all your favorite hulu shows and movies on xfinity. you're only a voice command away from award winning shows like the handmaid's tale, to new hits like little fires everywhere. and fx originals you can only watch on hulu. that's just the beginning of what you can experience with hulu on xfinity. tv made simple, easy, awesome.

haidi: very good morning. i am haidi stroud-watts in sydney. we are counting you down to asia's major market opens. this: our top stories hour. asian markets looks set for another uncertainty as the global rally stalls. investors remain concerned about the economic impact of the coronavirus and the potential recovery. the coronavirus sets more records across the u.s.. daily cases in