that's all for this edition of dateline. i'm natalie morales. thank you for watching. good morning and welcome to "street signs. i'm julianna tatelbaum with geoff tut more, these are your headlines. >> china's parliament secures a new law with hong kong it brings the territory more closely under government control as riot police continue to try and contain protests in hong kong the eu commission unveils a

750 billion euro recovery fund executive vice president tells cnbc urgent health is needed >> no country is left behind in this proposal. what is left behind is the ability to this crisis due to the higher debt levels lufthansa trades higher despite doubts over its bailout amid disputes with brussels. easy jet sees green amid the plan to cut up to 30% of its work force shares of the skand avian airline says it needs more funding to fly with 95% of its fleet still grounded >> this has caused government to close their borders and make it impokt to conduct business it's also needed that governments step in to try to

help to restore this industry. >> a warm welcome to "street signs. let's get right into our top story of the morning china's top legislature has formally passed security laws for hong kong. outlooking treason, success, subversion in the territory. ple pl members passed bill with 278 votes with one vote against. secretary of state mike pompeo declared hong kong is no longer autonomous from china. we'll get the latest let's start with emily this is really a rubber stamping exercise the extra passage from the

legislation, what does this mean for the prodemocracy camp in hong kong now? >> this was a draft piece of legislation. the actual details haven't come out yet. the npc, the standing committee has to work on it. they only meet every two months. it could be june or august where we get more detail that has been handed over to the standing commity. overwhelming vote. 278 to 1 with six abstentions. it was quick to come to it even though it circumvents the council here it will not go through the normal legislative council procedures with the alliance for the

betterman of hong kong along with the new people's party. they have called on the hong kong people to support the law the president of the legislature also coming out to speak on behalf of the latest developments here saying the safe guard, he is supportive of the decision maintaining long-term stability. benefits the economic development. safe guard lively hood and property he urges hong kong people to keep an open mind and pragmatic attitude towards the legislative work that still needs to be done in july or august when they meet this was approved in the mpc it was applause that erupted through the great hall there they voted on nine items of the agenda the hong kong law was the third. this comes hours after the

second of state in the united states mike pompeo saying hong kong is no longer autonomous to china. this was a declaration he made to congress and on a tweet he said no reasonable person can assert today that hong kong maintains a high degree of autonomy from china. this decision gives me no pleasure but sound policy to recognition of policy. this is regarding the united states with sanctions or policies pointing out there are something like 1,200 u.s. companies operating in hong kong any of these will impact them negatively as well we are looking at closing option for the hong kong market now closing off the day's lows we were down as much as 500 in the session. up about .8 now. the hong kong dollar against the green back traded at 7.753

we have come off the day's lows. a weak session to wrap up the thursday just pockets, small protests unlike what we saw yesterday with the national anthem bill. it will still go on 30 hours in the council. it has been dedicated by the president and the passage that has a lot of people upset. the focus has been these two pieces of legislation. npc and the national anthem bill we'll continue to follow this developing story here. >> thank you for breaking it down for us. let's get over to sam now. you've done an excellent job for us covering the npc and covering one of the key focal points being federal security and jobs.

is it fair to say this npc overhad owed this? >> absolutely. no surprise here this is a rubber stamp parliament members are closen for their loyalty. we saw 3,000 delegates voting for it only one against this is one of nine items but the one that created the most noise, got the most attention and faced mounting criticism from the international community over the fact that critics say this really chips away from the freedoms it was promised when it was handed back to china in 1997 officials will draft up the details but this could be a matter of month. the chinese state media have said this is to help safe guard

long-term stability in hong kong and that hong kong is a weak link and easy target for foreign interference we know they have blamed foreign forces and repeatedly told other forces to stay out of its business we are waiting to see what donald trump comes up with to retaliate. >> bringing you now to the chinese premier bringing the closing address. let's listen to what he has to say. >> in this year's government will report china did not set a gdp growth target but it did announce fiscal measures worth about 4% of china's gdp in 2019

according to our calculations. that's slightly less than what some economists were expecting after seeing china's economy contract for the first time in decades in the first quarter so my question is, can we expect china to deliver more ambitious stimulus in the months to come as well, does china have sufficient options to deal with a prolonged global pandemic and rising tensions with the united states thank you. [speaking non-english ]

>> you are watching a live picture there from beijing the chinese premier is holding a press conference there he was just asked a question from the audience. you are hearing a translation from that english question we'll be listening for the premier's response the big news that china's parliament has passed the hong kong security bill we'll listen to what the premier has to say [speaking non-english ]

[speaking non-english ]

[speaking non-english >> that is the chinese premier speaking there we do have some translation for you. let me bring you some comments that he's been saying. the premier has said that china's economic growth is still important despite the fact that they have not given a target the coronavirus pandemic deals a believe to the global economy, so the impact to china's economy is inevitable. he was asked the question there from a journalist about what we can expect in the fall the premier saying china's growth is still important despite the pact that they haven't given a target this was an important element of the npc this year. it was also said china will

strive for certain economic growth this year again, addressing questions that no explicit target was given let's listen to the english translation now. >> translator: in a way never seen before, major international institutions in decline this year as china's economy has become deeply integrated in the global economy, it is impossible for the chinese economy to stay immune to the impact of the novel crisis and stay immune to the situations on the ground we have a goal and task in areas closely connected with economic development with particular focus on employment, people's

basic living needs and market entities not setting a specific gdp growth target does not mean economic development is not important. our decision is designed to deliver more real gains to our people we want to promote china's higher quality development we believe that development still holds the key and is the foundation for resolving all the problems in china today. putting protections in place in six key areas, especially in the areas of jobs, lively hoods and businesses will help us achieve positive growth of china's economy this year and keep china's economic fundamentals stable [speaking non-english ]

[speaking non-english ]

[speaking non-english ] >> in the question, you said measures are some what below expectations i have heard people say our measures are forceful. for any response to work, we must get both the timing and intensity of the response right. in the raising times of covid-19, some policies were also introduced. for the economy was barely opened and the situation made it very difficult for these policies to get truly delivered on the ground as most of the populations were still staying

at home. that was gaining the process based on the experience we have gained in the past weeks and months we have decided in the new steps set out in the report and we believe these measures are forceful [speaking non-english ]

>> translator: we have repeatedly said we will not flood china's economy with liquidity. we did not do it then. we will not do it now. an extraordinary time requires extraordinary measures just as water is important to fish farming, sufficient liquidity is important to economic development excessy liquidity will produce froth in the marketplace where some will attempt to muddy the waters and fish. we must make sure measures taken are well focused and write a

precise pry skripgs to get out of the current hardship. where the money comes from and how it is spent. [speaking non-english ]

[speaking non-english ] [speaking non-english ] [speaking non-english >> translator: the sources of the funds of a fairly large scale can be grouped to mainly two categories the first cat cover the increase

and bonds for covid-19 amounting to 2 trillion. the other category cover pension payment relief for enterprises of their contributions to social security schemes tapping into the balance of the unemployment insurance fund and other balances of social security funds interest concessions and price reductions to lower enter prize's operating costs. the second category is twice as big as that in the first one this money will be primarily used to support jobs, people's basic living needs and businesses we are also in a quite direct way contributing to an increase of household income. the truth is the scale of our

funds accounts for a double digit figure in the 40 trillion wren total income in china [speaking non-english ] [speaking non-english >> translator: what is more important is how the money is spent. our measures of a fairly large

scale are designed to provide vital relief to market entities and revitalize the market with a particular focus on supporting people's jobs and lively hoods so that our people will have money to spend and that consumption will drive market viet at. this is our measure in keeping with market oriented reform. [speaking non-english ] [speaking non-english ]

[speaking non-english >> translator: money invested in the people will be able to generate new wealth, help us protect space and make finance more stablt. we'll do our utmost to keep china's economic growth stable and make sure all measures taken

are well calibrated. we will not kick up dirt and leave a trail of dust that will block the sight of those who come behind. we will also reserve policy space on the fiscal, financial and social security and other fronts we are in a strong position to quickly introduce new measures should the situation call for it without hesitation it is essential we keep china's economic development on a steady course [speaking non-english ]

. >> translator: i'm confident under the strong leadership of the committee with xi jinping at its core and people across the nation, we will be able to prevail over current difficulties, fulfill our tasks and goals for the whole year and complete the building of a moderately prosperous society in all effects. keeping stablt will be a contribution to the whole world and china will remain a driving force driving economy and growth thank you. [speaking non-english

>> thank you i'm with bloomberg news. the origins of covid-19 are still a mystery. scientists think if we could find out where it came from, we could prevent future pandemics there have been calls for an international inquiry into the ordnance the world health assembly approved such an inquiry mr. premier, i wanted to ask you, what is china's stance on how such an inquiry be carried out? what should it do and not do thank you. [speaking non-english

[speaking non-english ] [speaking non-english ] >> china and many countries believe that it is important to get a clear idea about a source

of the coronavirus as you said at the recently held world health assembly, a resolution was adopted china is one of the cosponsors of this resolution we believe getting clear about the sources of the virus on the basis of science will help us better carry out containment of covid-19 and also contribute to life and health of people around the world. [speaking non-english ] [speaking non-english

. [speaking non-english ]

>> translator: the novel coronavirus disease has caught all by surprise. it is completely unknown there is still more to the virus we do not know viruss respect no borders and are a common enemy to the world and entire humanity. now countries are still working hard to contain the spread of the virus. we are gaining experience along the way. we must work hard together to keep the virus in check. in this process, vaccines, effective medicines and testing reagents will be our powerful weapons to get us -- to help us to succeed in checking the virus, china and many other

countries are making developments into r&d of these products and we are open to international cooperation. we believe the deliverables of r&d are public goods that must be shared. these public goods will help the entire humankind to succeed in defeating the virus. [speaking non-english [speaking non-english ]

[speaking non-english >> translator: with painstaking efforts, china has brought the spread of the virus under control. china has taken an active heart in international cooperation against the virus. we have all along acted with openness, transparency and a sense of responsibility.

we have shared in a timely way with the international community. the virus is still spreading around the world as for covid-19 and china, it has not come to a complete end yet. there are still sporadic cases china has cautioned us to stay on high alert. we must continue to adopt a science based open and transparent approach in dealing with covid-19. any infection must be promptly handled and no coverup will ever be allowed [speaking non-english

. [speaking non-english >> translator: many people say that covid-19 will not come to a stop anytime soon and we may have to live with covid-19 for quite some time to come. all countries now are confronted with duel challenges it is like doing double exams.

we have to contain the spread of the virus and do our best to get life and work back to normal i'm afraid, there is a certain level of conflict of interest between these two goals. we will have to do our best to strike a delicate balance to go forward. the international cooperation is vitally important. we must come together in the international community in a sense of partnership to eventually get all of us to prevail over the epidemic. thank you. [speaking non-english ]

>> translator: with cctv, and the government work report, economic policies and scale measures have been spelled out what will the government do to ensure that all these funds will be truly delivered to benefit companies instead of getting circulated within the financial sector and to deliver real gains to the general public? thank you. [speaking non-english ]

[speaking non-english ]

[speaking non-english [speaking non-english >> translator: in coping with the current round of economic shocks, i'm afraid we don't have ready experience to draw from. it is not something we can manage with ease we will have to blaze a trail

with hard efforts. we must be creative in crafting and delivering our measures. our policies and measures are designed to provide vital relief to businesses and revitalize the market with particular focus on keeping jobs and protecting people's lives instead of undertaking large infrastructure construction projects this is because big change has taken place in china's structure where consumption is now the primary engine driving growth. and micro, small and medium countries now provide over 90% of all jobs in china today some 70% of the funds in the currently produced measures will be used to support increase in people's income to spur a consumption and energize the

market one big challenge will have confronted in coping with covid-19 is that inevitably, containment efforts will have damped to some degree. we will have calibrated the measures and market reform [speaking non-english ]

[speaking non-english ] [speaking non-english ]

>> translator: second, the funds available will all be used to support primary level governments and people's lives the increase of budget deficits and funds raised from special bonds from covid-19 control will all be channelled to a primary level governments to help them carry out their work some people may ask, even provincial governments will be passers by to these funds. some ask whether primary level governments will ask whether the funds will be put to good use. this means the mechanism will be

establishes to see that companies, especially smaller firms will truly benefit from these funds and people living on assistance who receive unemployment benefits and whose life are dependent on oh support will be able to benefit from these funds. real name records will be established. no cooking of books will ever be allowed. we will be open to public oversight. eventually, the delivery of funds will have to live up to the values of businesses and our people the central government will live by example by living on tight budget we will cut over 50% of all outlays of nonob lig torry

outlays. the money saved will be primarily used to support companies and people's basic living needs companies at all levels must tighten their built, reject pointless normals and reject spending splurgs [speaking non-english

. >> translator: just now i talked a little about consumption that doesn't mean that investment is not important. we'll also expand effective investment there will be an increase of 1.6 trillion of special bonds this year and also the 1 trillion bond of issuance of bonds of the special control when these two are combined,

they account for 20 to 30% of the measures on a large scale they are prepared to introduce this year. the focus on the bonds will be on new facilities and key projects that contribute to better lives we will rely on reforms and undertaking these programs these funds must contribute to better lives of our people as for the products, they must have well calibrated plans and must be delivered according to laws and we must avert undesirable effects. [speaking non-english ]

>> translator: with china times daily of taiwan. because of covid-19, the two sessions this year were postponed to be held in may quite close to the date of may 20 the ldp continues to govern in taiwan i would like to ask what is the overall consideration concerning the policy in taiwan and what will they do to promote relations across the taiwan strait

>> there you have been listening to the chinese premier giving a press conference at the conclusion of the national people's congress. i want to bring in a panel of guests to discuss here we are also joined by steven and geoff is with us as well steven is head of global research and macro strategy at standard charter bank. bob, we'll start with you. it seems to me a clear attempt to emphasize the economic measure and take away from the coronavirus. >> exactly after the fall of the reversal of the gdp of 6.8% in the first quarter at the moment the priority is very much to reboot. looking at april and may, there

are sciences for debate. the economy is on the mend but the base for recovery is slow. that purpose is to emphasize the monetary and fiscal policy and structural measures they have taken is focused very much forgetting back on track there are problems the export is under pressure that is taking time to reboot the consumer sector. i thought it was quite interesting how much focus he put on the small to midsized company sector that is very much a focus of the people of china in terms of their direct lending programs. >> thank you for your initial thoughts and waiting patiently. markets have really shrugged

off. markets holding off to the gains we saw come through this morning. to what extent is the market move higher than we've seen down through central bank support and that we have all this new stimulus supporting markets here >> the big story over last week was the european stimulus. the fact that program came together in terms of what is being proposed is a little bigger than what they thought. some expectations will be watered down the stimulus, weirdly enough, coming next year meaning the economy will have whatever boost this year and there will be additional next year is helping europe, particularly european banks which have struggled over the last couple of months.

>> bob, if i could jump in with you. i thought it was interesting that premier li was qualifying this issue over he can ses liquidity creating issues. i think that says they are still worried about the shadow banking system and the chaos around some of these unauthorized products that make it to the retail investor do you think that tells us any thing we get will be targeted and different from what we see >> translator: his comments are interesting. if you look at the data, his balance sheet is at a record high he has carried out a whole range and obviously they have cut interest rates having said that, there has been very little discussion about the

long-term discussions. earlier, there was some discussion in china about relaxing or shutting down that shadow banking that remains a problem particularly in the economy over the first quarter of this year contracted and over the second quarter only showing regulated growth when one looks at the second half of the year, at best, they'll work out year on year. so the recovery will be on line with the long-term subjective of the chinese government in that mediocre outlook, that puts more pressure on the banking sector as i said early on, the whole focus of the government and pbc will be the consumer sector which premier li referred to and the sme which he focused to which will account for the

significant majority of the chinese economy now. i think quietly, they will start to restructure that problem has not gone away >> steven, if i come to you, we are looking at claims numbers today from the united states the excess is over 2 million filed for unemployment that takes us off 40 million jobs lost. when does the stock market start to take notice of the jobs market >> caller: i think the issue will be if we see continuing claims start to ramp up. they stabilize at about 25 million. there are high claims but churning in the market as well that a lot of people are earning

jobs and a lot are losing. if the claims are matched by 2 million people finding jobs so that the total amount of unemployment stays the same, the total market will stay close to that we get timely data on how much is paid out in total like the checks that the government is writing every day. that has stabilized. one of the things to keep an eye on to ensure things aren't taking a leg downward. they think the market is seeing some sort of recovery. they are happy with that when we get to q3, they think is the recovery we expected >> thank you for sharing your thoughts there we have to leave it there. head of global research north america standard charter

bob barker, investment committee member wealth management thank you. that is it for today's "street signs. we'll hand you over to our u.s. programming where they will continue to bring you coverage of the npc closing session in the press conference we've been listening to we have in the last moments seen stock markets actually turn negative on the day now as we digest the comments from the premier. u.s. futures have a mixed start to trade as investors digest those comments out of china. thank you for watching, "worldwide exchange" is up next. stick with cnbc.

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