died in a training accident? pres. trump: they everything me are little briefing me in a little while. it is terrible. we will be in contact with their families. the city prosecutor confirmed a criminal investigation. pres. trump: this is just a continuation of the witchhunt. democrat stuff. they failed with mueller. they failed with congress. they fail at every stage of the game. this has been going on for three and a half, four years, even before i got in. this was starting with the mueller deal. mueller started a little after but it started with some of the people you know very well, the names. page. all of the different people, comey. this is a continuation of the worst witchhunt in american history. and there is nothing that i know

even about it. i have seen that today just a little while ago and i said what is this all abo it is just a continuation of the witchhunt. it didn't work out for congress, didn't work out for mueller. it did not work out for anybody so they are sending them out around of the country. it is a typical -- terrible thing they are doing. the witchhunt has gone on long enough. >> you mentioned vaccine developments. can you ensure the american people that politics around the election will not interfere -- play a role in determining the vaccine will be distributed? pres. trump: it won't have anything to do. we want to make people better. we want to send them to the areas that most need it. i think we will have something very soon. >> you said today in a tweet that dr. birx -- from speaker

pelosi for what did you mean by that? describing the case of the pandemic right now. pres. trump: i think we are doing very well. as well ashave done any nation -- if you really look, if you take a look it's what going on especially with all these flareups and nations. don't forget, we are much bigger. other than india and china. china is having a massive flareup right now. india has a tremendous problem. news, leavinghe news, i never read about that. i don't read about the other countries. countries that thought they were over it. like we thought we might be over it in florida and all of a sudden it comes back. they do come back. i think we are doing very well. i told dr. birx i think we are doing very well. she was in my office a little while ago. a person i have a lot of respect

for. i think nancy pelosi has treated her very badly. very nasty. i'm just referring to the fact i thought that really they should say the job we have done whether it is on ventilators or testing -- we have tested over 60 million people. no other country is close to that. we tested 60 million people at about 50% rapidfire. five to 15 to 20 minute tests. nobody has anything like that. i think we are doing very well. -- did youollow-up disagree with her characterization? >> thanks. i want to follow up on two things you said earlier. said you wanted money for the u.s. treasury for the sale. does that mean you expect the chinese company to pay the u.s. treasury directly? pres. trump: microsoft or

somebody else, what the price is, the united states should get a large percentage of that price because we are making it possible. without us -- i use the expression. it is like the landlord and the tenant. without the lease, the tenant does not have the value. the lease. we make it possible to have this great success. tiktok is a tremendous success, but a big portion of it is in this country. whatever the number is, it would come from the sale. that's the way i think. i think it is very fair. we want no security problems with china. it's got to be an american company. it's got to be american security. it's got to be owned here. we don't want to have any problems with security, etc. i will tell you this -- a lot of excitement, not only by microsoft but other companies in terms of buying it so we will see what happens.

we think we deserve to have a big percentage of that price coming to america, to the treasury. >> on the negotiation on capitol hill, you expressed frustration and said you might take executive action to address -- i was wondering if you could talk about both. how you might prevent evictions through executive action -- pres. trump: i want to do that. i don't want people to be evicted. when they are thrown out of their, whatever the place may be, in many cases, they go to big shelters. if you talk about pandemic, this is a pandemic and they go to shelters. they are thrown out viciously. it is not their fault. it is china's fault. number two, if they are thrown out, it often times will go to a shelter with tremendous numbers of other people. the virus will spread and we don't want that. >> are you considering

suspending payroll tax? pres. trump: we will be talking about that. we are having a very good discussion with nancy pelosi and chuck schumer. the problem is they want to do bailouts of their various democrat-run states and cities. and they want a lot of money. they want $1 trillion for that. they want to do much more than covid related. they want to bailout cities and states that have been in trouble for years of bad management. in all cases, democrat-run cities. we don't think that is fair. you have heard it before. i wanted to ask you about the justice department sending federal agents into cities like chicago. how exactly do you envision federal forces working alongside local police departments? pres. trump: not a mass send, but sending very talented people to help them with the drugs, the shootings and the guns and the things that are happening.

it is not like sending in the national guard which is an example. a lot of progress made in portland. >> we are hearing from president trump during his press conference, talking about development when it comes to vaccines, saying politics will not interfere with vaccine development as well as talking about the decline mortality rate in the u.s. which is encouraging americans who have recovered from covid to donate plasma. we heard from justin fink asking him how this microsoft-tiktok negotiation sale could progress given that president trump and the united states is looking to ban tiktok from the market. the president saying he thinks the united states government deserves a large piece of however much tiktok is sold for to microsoft. we are not sure how that will work from the legality point of view but the president saying

the u.s. is part of the success of tiktok almost as a landlord with tiktok as the tenant which is very interesting. he also get more clarification about potentially acting through executive orders to stop evictions amid these viruses that talks. saying that the evictions are no one's fault other than china and alluding he could potentially through executive order suspend payroll. let's get more perspective with emily wilkins joining us out of d.c. very interesting some of the comments we're are hearing with regard to how president trump views tiktok's future in the u.s. emily: yes. we still have a while to see exactly what's going to happen with tiktok. it is not like anything is happening overnight at this point. you are seeing the trump administration getting involved. i think this is a story we are going to see play out over the next several weeks and exactly how we decide to go forward.

that is definitely going to be something we will be keeping an eye on. shery: president trump also continuing to talk about these lists of executive orders he could use, especially when it comes to those stimulus measures. how would this ruling by executive orders look like and what could he do? emily: it would be very interesting to see because as of right now currently in congress, top officials from the white house are doing negotiations with both republicans and democrats. they are currently working to find a bill. the fact trump is mentioning he could potentially act alone, it will be interesting to see how that fits in. maybe that is something he does if negotiations fall apart but he is looking at a moratorium on evictions, extending unemployment benefits. doing a payroll tax cut that was not really a big thing lawmakers had interest doing on the hill.

haidi: with regard to the vaccine development, as well as how the virus is progressing, we saw some moderately encouraging signs when it comes to arizona and california. what did president trump have to say of the potential concern that is going to be politicized asian when it comes to vaccine availability? you heard from say there are two vaccines that are in the final stage of clinical trial street the third likely to begin immediately. he was incredibly optimistic on vaccines, on what's going to happen next. he tried to really play up the drop we have seen in the number of cases on coronavirus. moreugh, we are seeing daily cases now in the u.s. that we saw back in may or june. we heard a lot of positive things from the trump administration, particularly on vaccines, but it is a long process. even though we are entering some of the final stages, these are

the testing where he gets a big group of people together, gets them the drug and see what happens. this is not something that is going to be able to happen overnight. shery: emily wilkins, r bloomberg congressional reporter joining us from the latest from d.c. as we continue to watch the press conference. we have an alert on the bloomberg twitter under sec investigation over alleged data misuse. twitter is being investigated by the federal trade commission for using phone numbers uploaded for security purposes to target people with advertising. twitter received a draft last week of the complaint from the sec alleging the company violated a 2011 consent decree in which it agreed to better protect users personal data and the company now saying the probe could lead to a probable loss of 150 million to $250 million. this as we had u.s. stocks

rallying and tech leading the way. let's see how things are shaping up for the asian market. sophie kamaruddin is in hong kong. sophie: this tuesday, global stocks continuing to lag behind bonds going into the month of august. take a look at asian futures. mixed gains seen in tokyo especially after the nikkei rose above 22,000. holding steady after rising more than 2% overnight. we are watching for tech to take the lead after the nasdaq's rally. bloomberg intelligence east taiwan and korea outshining china and emerging in the second half on supply chain dominance. growing nationalism by the u.s. and china along the catalysts. pulling up the chart on the terminal to focus on the forex space. emerging market currencies have rebounded by the msci gauge rising since hitting a low back in late march. morgan stanley turning cautious, backing off on a bullish bet on

currencies made in early april. now neutral with less help seen from the weaker dollar. we have those renewed lockdowns and e.m. countries which are waning. when it comes to the u.n., running into trouble as china falls behind on agricultural purchases. now a quick check of the tuesday calendar. we have inflation data from japan and south korea due. australia, retail sales are due along with the rba's policy decisions. we have seen a pickup in aussie dollar volatility ahead of that. the rba staying pat and focused on the quarterly updates due on friday. sou have sony, mufg and astella among the earnings highlights. haidi: busy day. sophie kamaruddin taking a look ahead. it is rba day in australia. fresh restrictions in melbourne. yet another pressure point for governor phil low.

we will preview that central-bank decision. coming up next, market starting out strong in august due to tech but john lynch sees signs of easing across many asset classes. we get his outlook next. this is bloomberg. ♪

>> you are watching daybreak australia. the united states remains the focus of the pandemic but several areas are starting to see things improve california and arizona reported positive trends on new infections although they admit one week does not change the picture. u.s. fatalities over 155,000. global infections above 18 million. the pandemic adding one million new cases every four days. meanwhile, the australian city of melbourne enters new lockdown measures from midnight on wednesday. a curfew from 8 p.m. to 5 p.m.

large parts of the retail and manufacturing sectors will be shut down and people will only be allowed outside for one shopping trip a-day and one hour of exercise. the rest of the state has been put under tighter curves as victoria fights a spike. philippine markets will open later today at their lowest levels in six weeks with manila back in lockdown mode. the infection stand above 100,000, the second-highest in southeast asia. with residents barred from all from intentional travel. officials have opposed the new lockdown saying the country cannot afford the disruption. alibaba warns the pandemic is allowing governments to track people more closely than ever before. the cofounder and chairman says the digitization of information through e-commerce and other apps gives authorities unprecedented access to personal details. speaking at the virtual launch of the singapore fintech

deniedl, they initially intentions of morphing into official control. global news 24 hours a day on air and on bloomberg quicktake, powered by more than 2700 journalists and analysts. i'm karina mitchell. this is bloomberg. shery: u.s. futures flat at the moment, this after stocks advanced in the regular session with tech shares leading the way amid positive economic data and after that a white house was set consider acting on its own to boost unemployment benefits. despite the rally, our next guest sees several signals indicating continued investors. joining us is comerica asset management to even vest an officer john lynch -- chief investment officer john lynch. this chart showing for our viewers how this panic index is rising now. the skew index rising a month ahead of a selloff. are we heading for some consolidation given the levels of valuation we are seeing at the moment?

john: yes, there are some concerns because we are seeing a market, the s&p 500 around 3300. we are entering a seasonally weak period. a lot of were focused on last week's fed meeting, second-quarter earnings, as well as gdp. when i see the way thae yield curve has behaved and bank stocks, those are sending signals this run could be getting long in the teeth. shery: we have seen most of the companies reporting earnings, more than 80% of those companies exceeding pretty low consensus earnings but we still have seen those expectations being beat. a lot of those earnings forgiven given the ongoing pandemic. so, what are you watching in terms of where we are heading from here as we get close to earnings season? john: i want to see improved visibility. there is some excitement that

analysts are revising third-quarter estimates on 1%. that has not been done in about five years. typically the first 30 days when companies report, analysts reduced estimates. i'm more concerned about the analystscast, whereas are projecting a return to record profitability. 10 or 15ll have, say, million people still unemployed in the states at that point, that would require a record level of productivity that i am not confident would occur. we are below consensus relative to earnings for next year. haidi: when you take a look at what's going on across tech and how that continues to be the sector that drives the broader market higher, there are few people that would be in agreement and thinking that is looking a bit bubbly. how much do you want to stay invested even if it is building up to these bubbly conditions? john: it is a fascinating

experience because we have real wage negative, we have interest rates, targeted interest rates at zero you have this passive drive behind markets. if growth is going to be slow, there is still a bid for growth going forward. i think we have to be mindful of that. when we are positioning portfolios, we are taking a barbell approach between growth and value. haidi: we are getting a headline crossing the bloomberg terminal. an alert looking at spreads on the riskiest of u.s. junk bonds falling below distressed level. what do you make of the amount of dislocation we are seeing and bond markets at the moment? this is really flashing a signal of alarm that we are not looking enough at? high-yield actually gain some traction relative to investment grade corporate bonds over the past couple of weeks. credit default swap spreads have

come in a little bit. they are still kind of wide for energy stocks but they have improved for financials, health care and consumer discretionary. i would be mindful of the importance of quality going forward. we still haven't gotten a good understanding of the default rate going forward. we are still leaning toward those more apt to pay lenders back. really appreciate your time with us. john lynch, comerica asset management chief investment officer joining us out of charlotte. coming up next, we get the latest of the coronavirus. the u.s. reporting some positive trends cautiously. the number of new cases is beginning to slow. this is bloomberg. ♪

haidi: global coronavirus cases

have now passed 18 million with a world adding one million new infections every four days. at its epicenter remains the u.s. positive trends are developing as various states are seeing decreasing numbers. let's get more from her health care reporter in minneapolis, michelle cortez. we are seeing cases start to come down in the u.s. we heard from president trump earlier saying mortality rates are coming down as well. does that mean the u.s. is getting out of the worst of it for now? michelle: we are seeing a decrease in cases. we are seeing new cases every day. because the virus is so widespread, those are some serious numbers but it is not as bad as previous days. the hope is that as the number of cases come down, that trend will continue and we will get some respite for the next couple of months as we start seeing some relief from the virus coming from being outside and people taking advantage of social distancing measures like wearing masks now that it has

-- everyone is aware we have to be on board. even sayingauci face shields could be for teachers back at school. as you said, it is warm, it is summer. people are out and about. people are going back to work and school as well. michelle: exactly. what we have been expecting to happen and we might still see, the big unexpected thing that happens this summer is the fact we didn't see the big drop in cases early in the summer we were expecting. we could start seeing that now with numbers coming down. august and september might be lower but as we start going back to school, has universities open and workers go back, you will start seeing people in these close quarters again and we might be see increased transmission. things like wearing a face mask for teachers, that would allow them to be present for their students and perhaps offer them

some protection when it is the teachers that are most at risk, especially looking at elementary school kids. shery: michelle cortez in minneapolis with the latest. let's get a quick check of the latest business flash headlines. billionposted a near $8 seven quarter loss driven by the stake, along with rising costs. adjusted net income of $.66 a share beat the $.48 estimate in a survey. zoom is to rely on third-party operations in china, reducing the chance of a ban in the u.s. america remains its biggest revenue market and companies linked with china are under increasing pressure from the anti-beijing feeling in washington. almost $6s selling billion of bonds with rock-bottom yields in the largest corporate wholesale in the environmental, social and government sector. it wants to support black

entrepreneurs as well as affordable housing as small businesses hit by covid-19. next, microsoft may be looking at the deal of a lifetime but it's complicated history with china might be at issue in its bid for tiktok. that is next. this is bloomberg. ♪

karina: you are watching daybreak australia. the u.s. treasury has outlined how much it needs to borrow to keep the economy going for the next three months amid unprecedented spending on the coronavirus fallout. it expect to raise almost $1 trillion in debt through september, more than $270 billion higher than may. since then, coronavirus cases have surged, disrupting the potential reopening and forcing congress to consider new fiscal stimulus. more senior fed officials are weighing in on stimulus, saying

another round of relief is critical for the u.s. economy. unemployment benefit is due to expire in congress is divided on what to do next. the chicago fed president said any failure to launch new support would be hugely damaging. his colleague robert kaplan says enhanced benefits have kept more people in work. president trump is ordering tiktok to shut its operations in the u.s. by september 15 unless there's a deal in place with microsoft or another american company. he's also demanding a substantial amount of money paid to the u.s. government as part of any deal. the u.s. is further raising the heat on china, saying a type of computer malware seen in recent years is tied to the government in beijing. the fbi and others say it is used by cyber actors in china, although they are offering no information about the malware or if anyone has been attacked. global news 24 hours a day on air and on bloomberg quicktake

powered by more than 2700 journalists and analysts in more than 120 countries. this is bloomberg. shery: staying on that tiktok news, microsoft rose more than 6% on news it is still working on a deal to buy tiktok's u.s. operations. wall street and some in washington are applauding a possible transaction, success may be complicated. senior tech reporter shelley banjo has more on this story. microsoft entered china in the 1990's. one of the companies that helped china originally great build the firewall. how complex is this relationship? shelly: microsoft has this deep history in china, helping engineer the government's computer systems and installing special versions of windows and operating systems that can comply with the country's censorship controls. they continue to maintain a large research center in china.

the theater system of microsoft executives and employees. they also happen to operate being the search engine and linkedin social network centered version of those inside of china. because of the deep ties to hocks inere are china the administration that set is microsoft the right suitor for this if we want to really find an american company who is going to side on the sign of america, is microsoft really the right company for that? haidi: right. there are a lot of potential hurdles, notwithstanding president trump saying that any kind of sale price, the u.s. government should get a piece of. shelly: yeah, we have about 45 days now to hash out a price, terms, how microsoft will pay

for the unit, how many technology sharing would work. all of these ins and outs of this deal have to be completed. they have to be ok and sign off on by people in the u.s. government and factions within the trump administration. they get anytime throw a wrench into this process, as we know from past history, at any point. not to mention figuring out a price for a company which is usually popular, growing but these tensions, the alternative is president trump could ban the app. what does that do to bytedance investors who have been eagerly waiting for a big payout for this popular app? shery: why tiktok? one other company growing the ire of the trumpet administration? shelly: it is the latest. obviously, we have huawei, cte.

the are different episodes of the u.s.-china tensions soap opera. right now it is the episode of tiktok. one big reason is because how popular tiktok has become. it has been downloaded 2 billion times globally. it got on trump's radar especially after the pandemic, as election and campaigning season started for trump. a lot of the members on talk -- tiktok started using the platform as an activism platform to really throw the wrench into different campaign activities for donald trump. there is certainly a political bute and area around that also because it has become this super popular company that is owned i a chinese tech giant. banjo, our senior tech reporter on all of the

myriad of issues facing tiktok and microsoft. coming up, it is rba decision day. virus restrictions in victoria yet another issue for the governor to get his forecast and policy settings around. jo masters masters will be joining us to preview that central bank decision. this is bloomberg. ♪

shery: you are watching daybreak australia. let's go back to sophie kamaruddin for another check of how we are setting up in asia. sophie: this tuesday, we could be looking at gains for asian stocks after the overnight advance on wall street which is led higher by tech. for the moment, we are seeing s&p futures little changed as nikkei futures in chicago after the overnight advance. the 106hovering around handle. this as we are seeing the dollar hold gains. little changed after two days advance. check out the aussie hovering back around 71, but under pressure ahead of the rba decision. a dovish tone expected, they expect this will push australian real yields lower with the yield curve to fall by 25 to 50 basis points given that real rates have dropped to the same extent we saw in the u.s., haidi. haidi: we are going to speak

with -- stick with australia because the reserve bank is set to keep interest rates at a record low. this is the first rate this vision since victoria was forced to shut down key parts of its economy. tight restrictions were post as well. let's take a look at how the spiraling crisis in victoria could hit the broader economy as well as the policy settings. we are joined by jo masters. we heard more about the business and industry restrictions, including essentially having to take out activity at construction sites. retail basically being shut across the state as well as manufacturing. i'm wondering in terms of the contribution of victoria to national gdp, are we going to see this reflected in today's decision? about, victoria makes up a quarter of the national economy. it is the second-biggest state

that we have. absolutely locking down that state will have an immediate economic impact. the estimates for the early restrictions are that it takes about half $1 million per week of economic activity and that number will be a large with the stricter lockdowns and the extension of the lockout period. it will have an impact. i think it will be reflected by the rba. i expect commentary will have to address increased downside risk, the uncertainty from victoria. obviously, they have their forecast which will be announced on friday. incredibly difficult to be forecasting in this environment. yeah, you don't envy any economist right now anywhere. gdp asarison, 23% of well as a quarter of the and theon/labor force, entirety of hubei province that was locked down contribute it to

under 5%. in terms of progress to a recovery, particulate with consumer sentiment and spending, are things pretty dire there as well? jo: look, it's pretty hard to pinpoint numbers on anything at the moment. most economists have been expecting a positive gdp number for the third quarter. that number now looks like it is going to be a lot smaller. and depending on how things play out over the next couple of weeks, it's possible the economy could again contract in q3. there are some big headwinds coming in q4, as well as government support winds down. we have the extension of job keeper and job seeker. some pretty big headwinds coming. shery: let's talk about the support because we had the biggest world war ii budget deficit, but some indications that we could be seeing some

additional support in the october budget. will those be enough? see whated to wait and those policies are. i think we will absolutely see additional fiscal stimulus, not just announced in the october budget but potentially before that. even last night, we heard from the prime minister around some support for those people needing to quarantine that don't have sick leave. the economy was always going to need ongoing support. what we are seeing in melbourne is it will need even more and we might get some announcements before that budget. i think it is really important to remember that australia is very well-placed for additional fiscal stimulus. the government debt, even with policies announced today remains low, projected to peak below 50% of gdp. that is about half of what the imf is expecting for the average g20 economy. we are one of a few aaa rated

economies in the world. the government having no trouble raising debt, bond issuance has been very well supported. the cost of government debt is extremely low. shery: so far, we have seen the rba remaining sidelined. when will monetary policy come back into play? jo: at the moment, if you think about monetary policy, it is really around underpinning the supply and price of credit into the economy. it is also a very blunt tool. impacts red across the nation. it is not well used for targeted support, whether that is sector specific or geographic. i expect the rba to stay on the sidelines for the rest of the year. policy is undoubtedly very accommodative. the cash trade is already in the lower bound. will we see more next year? i think that is possible. i would expect that the first move rather than cutting the cash trade further would be some

extension of yield curve control. think they are happy with where the aussie dollar is at the moment? there has been a surprising level of confidence with the rise of the currency. jo: sure, i think governor lowe has been very clear about that. of course, we would like a weaker australian dollar. everyone is looking for a weaker currency. we do know it is an incredibly effective buffer for australia. exports may cut gdp. it does help but as the governor pointed out, the currency is currently around fair value. when that is the case, job earning tends to be not that effective. i would be surprised to see anything on the currency unless the depreciates above that fair value level. we have seen resilience

as a result of the fiscal monetary support, and the property market. when do you envision we see weakness across the housing market? jo: we are starting to see that. we got half price data earlier this week and house prices fell with biggest falls in victoria, also followed by sydni. i expect we will continue to see house prices to fall. they have been remarkably resilient but that is partly because the fiscal stimulus and programs like job keeper have done their job. we've also had mortgage holidays on your repayment. they have been extended until the end of march. the real stress and getting a sense of the real stress will be what we see later this year. shery: thank you very much for your insight. back in the u.s., one fed

official is calling for an extension of unemployment benefits despite making hiring harder. robert kaplan says the economy will weaken further as a stalemate in congress continues. he told us exclusively he sees a more muted rebound in the u.s. view that wel our will contract for the year at about 4.5% to 5%. it has been our view since the very sharp decline in the second quarter. we've had a very healthy rebound in the third and fourth quarter. i think that rebound is more muted in the united states now. it has caused me to think that the unemployment rate, if we don't do a better job managing the virus, the unemployment rate is likely to be above 9%, 9% and 10%. we have moved up our unemployment forecast. so, i think we have to rebound, but it is much more muted than

it was and if we don't do a better job managing the virus, we are going to have lower growth and have a higher unemployment rate. i have been spending a lot of my time talking more about the virus than anything else because it is so critical to the recovery. unemploymentxtra bonus and eviction moratorium are gone now. has your staff model the impact of that on the economy? second, should we expect a wave of defaults that might affect credit markets? >> we have looked at it. one of the things that is unusual about this downturn we've just had his incomes have stayed relatively solid and a big part of the reason is these unemployment benefits. normally in a downturn, you see a drop in incomes. we have not seen that here. it is still my view that in some form, we will get an extension of unemployment benefits. i am quite hopeful that will

continue but if it didn't, you would see a further weakening in the economy. particular because consumers wouldn't have as much money in their pockets to spend. >> any business people telling you the $600 bonus were keeping people from coming to the labor force? >> a lot of business people were telling me that. they were telling me that it was challenging to hire people. we have looked at a number of studies. we have done her own work. we don't see it as much in the data but i am hearing it from business people. whatever the right answer is, i think you still are going to need to see extension of unemployment. it may be restructured to some extent from the $600 but i think it is important we see in extension of it. i think the increased incomes, while it may have made it hard for certain individual businesses to hire, it has helped create jobs because it

helped bolster consumer spending. the net effect is still positive for the economy and for employment. dallas fed president robert kaplan speaking to us earlier. luxury retailer montclair says china has rebounded and business in the u.s. is doing well. an exclusive interview with the ceo is next. this is bloomberg. ♪

shery: luckily apparel maker montcler says the pandemic has made e-commerce an important part of sales. ceon exclusive interview, remo ruffini discussed acquisition plans and consumers in key markets. remo: china is already back. after the lockdown, they went back to the shopping mall. for sure, europe is not easy because normally in europe we have a lot of business in stores. there is no travel anymore. -- i don'trprise want to say it is good but to my point, it was affected. europe is going to

recover soon. i think europe is based on travelers, especially the big cities like paris, london. we have a new project that is online and off-line. normally used to shopping around the world and thinking about the chinese buying outside of china. .hey go to hawaii, l.a then we try to talk with them a totally different away. used to bythat outside and now quite stronger inside the region. soon and iers very think it's going to grow in the near future. try to contact the customer

there that used to by outside. bad kong is still in very condition. think, again, think about your community build up. >> do you think this crisis will actually lead to more consolidation amongst luxury retailers? are we going to see mergers and acquisitions? where does moncler fit into this? alreadynestly, for us, in the united states is not that good as before, especially the department stores. --in, if you think about small independents like us could have a good opportunity. there is big luxury group, they are stronger. we are that, but again,

small but we are very flexible. i think we have the possibility to redesign our company from this moment. i am quite optimistic. i am not an optimistic guy in general but today i am because i see a lot of possibility but you must be very creative in terms of everything. >> would you rule out buying something? do you want to get bigger? remo: again, i always say moncler -- we opened the first store 12 years ago, 2009. we have many things to do. , ite-commerce is coming now is a new challenge for the company. learn to talk with this new language. the digital, physical experience online, offline means we have a lot of things to do.

i never find a good opportunity. keening now, i am really to redesign my company, redesign the brand and have a new way to talk with the customer. i think this is the key for me. a new attitude with a new approach for the market. haidi: that was remo ruffini there. a quick check of the latest business flash headlines. u.s. aviation regulators have given boeing a long list of fixes required to potentially allow the 737 max into service. shares rose after specific upgrades linked to the crashes the ground of the plane, as well as broader changes to improve safety. the stock is more than 50% this year. japan airlines posted's biggest quarterly loss in at least eight years after the fallout from the coronavirus hampers travel demand and prompts termination

of dividend. the loss was the most since jal relisted in tokyo in 2012 after emerging from bankruptcy. it's only other quarterly loss came in the january to march period this year as the pandemic took hold. southwest airlines is scaling back cleaning procedures as staffing cutbacks and operations rose the average turnaround time. southwest will no longer wipe armrests, seatbelts and other areas that come into contact with people. tray tables and lavatories will continue to be disinfected between flights. shery: coming up in the next hour, hathaway global strategies president joins us to talk about tech companies caught in the crossfire between beijing and washington. we will also hear from robert mead who sees more defaults ahead as policymakers cut back on support. we will have plenty more ahead. stay with us.

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haidi: very good morning. i am haidi stroud-watts in sydney. we are counting down to asia's major market opens. shery: asian markets looks at for gains after tech lifted u.s. stocks. futures point higher in tokyo, sydney, and hong kong, as investors welcomed positive data and potential stimulus.

top fed officials: policymakers to do more to support the u.s. recovery. we hear ex