yvonne: canceled flights, closed schools and shuttered markets, china's new virus spike is becoming a new test for president xi. most of the new cases are reported at the capital. back to $40l slides as opec-plus prepares an online meeting to assess the recent supply cuts. we hear from the russian energy minister alexander novak this hour. yvonne: we are a little bit slipping when it comes to risk efforts. -- risk assets. we are digesting the latest news. john bolton, former national security advisor, he accuses president trump for seeking the help of president xi jinping for his reelection prospects. we are hearing president trump speaking to fox news, saying bolton broke the law.

also his rhetoric reiterated when it comes to china, saying china should have kept the virus where it was and could have stopped this virus spread. these are the latest lines coming through, the president saying trump -- the u.s. can deal with the flareups. we are seeing with stocks we are basically coming off some of the lows but still heading lower today, u.s. futures extending losses to more than 1% now. jakarta coming online. we have a bank indonesia decision today, expect some type of rate cut. when it comes to india we are watching the standoff on the border with china. besides continue to talk. they are pledging to deescalate after the deadly clashes. here is what we are watching out for, not a lot of catalysts. looking at the dollar, it is very much on the stronger side and you're seeing the likes of

the aussie dollar reacting to those unemployment numbers which was a big miss. u.s. 10-year yield, seeing bonds that are up as well and the china 10-year yield is what we are watching the most. the pboc in the last hour cutting the 14 day reverse repo rate. we are seeing the selloff in bonds in china easing off. we see yields dropping after the cash injection and the rate cut. now we are seeing yields drop, at one point the most in a week and watching oil, still a story, a drop after opec saying fuel demand will remain under pressure for the second half. haslinda: big day for jd.com, hong kong. 618 longalso the

online shopping festival. the ceo spoke to us about the event and prospects of revenue growth and why he is optimistic about china's recovery. >> jds main business is in mainland china and in places in asia. our main customers and asian investors are familiar with this market. we hope to see our investors from china and asia better understand jds concept, services and future development. hong kong is one of the best free economies in the world. we hope to have many mature institutional and individual investors to share j.d.'s growth. tom: how would you like to

prioritize the use of the funds that are raised in this ipo? what do you want to direct it to in terms of spending? we would like to strengthen our investment in retail, particularly in the all channel sector. we would like to strengthen our supply chain which is a foundation for j.d. group, not only j.d. retail. the process to build up a supply chain is time-consuming and costly but we want to make it better. it will bring a better user experience. been any -- here tom: have there been any internal discussions about delisting from the nasdaq? >> no. this is something that is far .way with lots of uncertainties our business focus is on the customers. tom: we have got trade tensions between china and the u.s.,

beijing and australia and canada. how much of a headwind are they for j.d.? j.d. has not seen any changes or negative impact from working with global brands and trading partners. for my personal perspective i would like to see more open and free global market which could be beneficial not only for chinese customers but level customers, manufacturers and traders. know better than most that this is a competitive sector and you have got pinduoduo which is moving into electronics which has been a strength of jin dong and alibaba moving into build out its logistics. how much of a threat are those moves by your competitors?

competitors take different steps at different stages which i pay attention to. it does not change our strategy because we dance with our customers and ourselves, not with our competitors. i wanted to ask you about pinduoduo because four years ago it did not exist. its market cap is roughly the same as j.d.'s now. how do you deal with a threat like pinduoduo? >> i don't care much about a company founded four years ago but there is value for a company that exists in the markets. it is not up to me to determine if the market -- the value is sustainable. we should leave it to the customers to decide. yvonne: checking the j.d. shares, we have lost a little bit of momentum after the strong start we saw with shares up 6%,

higher 3.5% but certainly a strong investor appetite for these chinese tech giants. we have seen alibaba and jd.com. today also, china's biggest online shopping extravaganza, a big test to see if there will be pent-up demand in the whole china consumption story. will it be enough to make up for a dismal couple of months? walk.bring in can -- ken wong. we are seeing shares up on 3% or so. would you change the stock? >> for retail investors it was overly subscribe to greet are getting a retail push. we would be more careful now given where valuations are. earlier this year january and

february jd.com was around 28 times earnings. now you look at sort of 2021 earnings, valuations are now sort of much higher. given where the sectors are, msci china discretionary around four times forward pe. you have to be careful. chinese investors still can't get their hands on some of these chinese secondary listings as well in hong kong. could that limit the upside? >> it can. with more and more adr companies coming back for secondary listings, that could pave the way for the opening of some of these stocks for stock connect. this will be a key thing because we have the hang seng index incorporating these shares, or it will be in august. that is a key element.

at the same time, when we get the exchanges to allow for these to have a secondary listing, it will be much more important. we just have the numbers for the 618 so far. soy say 228 billion yuan far. surpassing the 2019 total. this is not surprising given the pickup in online commerce, i suppose. >> it is not surprising at all because of the service industries, it has picked up right of it. the service industries are coming back online at similar levels to what we were in 2019. so what we are seeing with the 618 numbers is not surprising given the fact there has been pent-up demand in china over the first six months of the year. a $2 billion. has

buyback land which is applicable in the next 24 months or so. does it make sense it is raising almost $4 billion and then buying back to offset the light -- dilution in shares? >> it can. the money they raise, what they are doing in terms of using it in an appropriate way -- he will be interesting to see. it is an option to buy back the shares. that,they do see value in that might be a good way to do it. but raising that money could be good in terms of future chaps as well. seeing technology use shifting. i know you saw the overweight with i.t. and communications services. how do you take advantage of that? do you focus on e-commerce, cloud? what are the sectors?

>> for us it would be predominantly i.t.. we have seen a run-up in tech over the past couple of months. some of the hardware names are looking attractive. when you look at indication as well as i.t., they are still trading around 21 times forward compared to lower the discretionary stocks. there are some opportunities in it internet related and hardware names in china. yvonne: msci global equities trading at 19 times earnings for next year. do you think earnings are going to have to support those valuations, or is that wishful thinking? >> eventually, but we are looking at because of the msci global to do with the u.s.

stocks and the large weight -- if you look at 2021 and forward earnings, it is actually not that bad. said, if we continue to see further declines in earnings expectations for 2021, that could pose a problem. you have to be skeptical and still, mindful of where valuations, the earnings could be for the second half of 2020. yvonne: thank you. i want to bring some lines crossing through, getting the response from beijing on president trump's move to sign this legislation calling for sanctions over china's treatment of the uighur muslims. china is saying they vow to retaliate if the u.s. moves with the weaker rights bill.

bill.hur rights this all happening around the same time the national security advisor of president trump, john bolton, wrote some explosive allegations in his latest book, which we will talk about. you're seeing we are shaky ground here with asian equities. the renminbi is weakening. have got the rate cut from the pboc with reverse repos. 1.25% rightdown now. karina mitchell. more than 1200 flights in and out of beijing have been canceled as a fresh wound of coronavirus has -- round of coronavirus has affected the city. additionally schools are shut across the city and travel curbs have been imposed on people

living near the market where it began. european union is moving to protect industries from tank over by companies and -- from takeover by companies from china and other foreign powers. it could lead to a ban on companies making acquisitions were divesting assets. this could restrict the limits on state aid to businesses around the world. the indian prime minister narendra modi says he will defend his country's sovereignty after deadly clashes with chinese troops in the alias -- in the himalayas. pieceaid india only once e, but only wants peac when provoked will answer. the fed chairman is urging lawmakers not to pull back to quickly on relief for the coronavirus amid increasing debates over whether to -- servicesouse financial

committee he thinks it is a concern if they were move support -- they were move support to soon -- remove support to soon. north korea has released its own pictures of the destruction of its joint liaison office in a border town. warning of further potential action against south. the office was opened two years ago and was not occupied at the time of the explosion. north korea will send troops to the border and resume military exercises at frontline areas. global news 24 hours a day on air and on quicktake by bloomberg, powered by more than 2700 journalists and analysts in more than 120 countries. i am karina mitchell. this is bloomberg. ahead, china and india agreed to reduce border tensions despite both sides stepping up the rhetoric.

and the u.s. secretary -- south asia. where things go from here. yvonne: president trump signs a bill punishing human rights violators in one area of china. china promised retaliation if the u.s. acts on it. this is bloomberg. ♪

trump haspresident signed a bill that calls for sanctions over china's treatment of uighur muslims and china's threatens retaliation if the u.s. moves on it. this came at the time he is seeking injunction to stop a book being published by his former national security advisor. john bolton claims trump asked xi jinping to help him with reelection. trump denied is allegations and said bolton broke the law with his revelations.

let's bring in derek wallbank. several explosive claims in the book. what jumped out the most? >> there is a couple of things that jumped out. one of the biggest things is how much donald trump in john bolton's telling was willing to accommodate u.s. policy on china for what he perceived to be a direct electoral benefits. we are talking about agricultural purchases from like in the farm states michigan and wisconsin that happen to be swing states walking into the november election. we are talking about donald trump downplaying taiwan as maybe not wanting to get involved in hong kong, not issuing a tiananmen statement on the anniversary because he did

not want to do anything to upset the balance towards a deal. we have been talking for years now it feels like about what trump -- the market expectation that trump might have some , fortive towards the deal the u.s. election and how much that might play. this book lays out the real,tion reportedly in really detailed fashion. , really detailed fashion. yvonne: there are a lot of implications with the relationship with beijing. is trump pursuing the soft touch plan? >> most of the headlines have been harder. the white house signed -- trump signed the weaker -- uighur muslims bill which calls for punishing chinese officials for imprisoning more than one

million is funds, and this is -- there is a little bit to go. the bill is signed, but there are actions where you have two physically identify who is the person you want to sanction, what did they do -- so there are some steps. you saw the reaction from beijing on this. here thatn assessment electorally in the united states , there is no consequence for being too hawkish. joe biden, the democrat put out trumpement just blasting for all of these claims that ,ppeared in john bolton's book saying he was trading the u.s. security posture for perceived electoral advantage. donald trump now, even though you may have assessed there was benefit on the trade front,

there is political implication in terms of trying to be tough on china. china is in an interesting position. it could be trump were biden but both are signaling toughness -- both arebiden but signaling toughness. haslinda: what are the options that china could possibly do? it is hard to say. i think the key question has been whether or not the trade, the phase that had been agreed, it is like a truce more than a deal. the question is was that going to stay intact? so far it kind of has even though agricultural purchases may have lagged. there has been inching momentum , but that is two one of the key places to watch here. editor withsenior

the latest of the trade tensions. bolton spoke. jd.com as we have been talking about made a debut in the city, opening 6% higher before they -- paring back gains in hong kong. it is listed in new york and raised $4 billion u.s. from the secondary shares sale. they followed the successful listing last week at a time when easing -- the rising tensions are threatening to curtail access to chinese companies that have u.s. capital. plenty more to come. this is bloomberg. ♪

haslinda: what do it check on the marketshaslinda:, asian stocks are mostly lower. the biggest drop -- the first drop in three days. this benchmark is down. plenty news to mull over. we have the aussie jobs number,

the anz's first recession since 2010. investors are reassessing where they are putting money. hsi is down. $3.9 billion m of second-biggest ipo that has hit globally. chinese -- take a look at where we are in terms of the dollar index, 12.15 . the yen is rising on haven demand after a resurgence in virus cases. thisound volatility, decision day for the boe, except -- it is expected to boost its bond buying program. investors want to see if there is any hint of policies like negative rates and yield curve control, the yield curve in a deep recession. take a look at the 10 year

yields. treasuries holding on to gains. plenty more to come. this is bloomberg. ♪ ♪

>> 10:29 a.m. in hong kong and shanghai. 10:29 p.m. in new york. i'm karina mitchell. the white house taking legal action against former national security advisor john bolton to seek injunction against him publishing a new book. he says that president trump made foreign policy choices to benefit himself politically. the president's campaign team dismisses the claim as "absurd." president trump turning up the heat on china, signing a bill accusing beijing of interning muslims in camps. broughtslation has

support and requires the president to sanction any chinese officials found responsible for oppressing uighurs and other minority groups. beijing says they will retaliate if the u.s. moves ahead with the bill. the u.k. government is planning ,n information campaign to prepare companies for exit hoping two-minute drill -- minimize disruption. with the u.k. bettered by the coronavirus and already in recession, the government fears a new economic shock. the group of seven countries are calling on china to reconsider its a planned security law for hong kong, saying it will jeopardize what has allowed to -- the city to flourish over several years. a statement says it's essential to have open debate, consultation, and respect for rights and freedom. this is a show of unity after recent strains of president trump's plans to hold the next face-to-face.

new zealand has entered its first recession and almost a decade with gdp falling 1.6% from the fourth quarter through march.new zealand , and the like other countries, is expecting a much worse period through june after the pandemic for state to close borders and shut down the economy. the government has pledged $40 million u.s. and fiscal support to aid the recovery. global news 24 hours a day on air and on quicktake by bloomberg, powered by more than 2700 journalists and analysts in over 120 countries. i'm karina mitchell. this is bloomberg. taking a look at the markets, a down day when it comes to risk assets. taking a look at what the markets are focusing on, seems like once again there is a refocus on the narrative when it comes to coronavirus as fears of a second wave increases and we see more infections popping up. beijing still a focus. we are seeing asian stocks lower. southeast asia also. u.s. futures down more than 1% p

or the moon by session could be volatile as well. -- moon by session could be volatile as well. big central-bank decisions coming up like bank of england, indonesia, and the taiwan central-bank as well. watching for the pboc action. some reaction from china, still resilient in the face of what we are seeing. chinese stocks flat. hang seng down to 40 points despite a solid start for jd.com today. 10 year yield reacting to the rate cut from the pboc and an cash.ion of we are seeing a bit of a pause in that route. 286 for the chinese 10 year. offshore renminbi weakening on the back of the central-bank decision. some boards we are watching, jd.com as we set. we are off the highs, off as much as 6% earlier. up still close to 4% right now.

take a look at the rights of the rival, alibaba. about 1.5%.lower by geely auto announcing plans they could do a secondary listing in the shanghai star board as well. currencies, dollar is stronger. the aussie reacting to the job numbers we got which was a big mess. we are hearing from the prime minister singh the economic blow of the virus is devastating and great. the jobless report, devastating. kiwi, the first recession in new zealand in a decade. we are dealing with a bit of bad news when it comes to data. b.i. coming up next, perhaps the strength we have seen could get breathing room.

>> expectations have a 20 point today.ut for foreign minister of china and indonesia -- india have agreed to calm tensions on the border.n at least 20 soldiers were killed together with an unknown number of chinese troops in the deadliest clashes for nearly 50 years. the senior fellow for india, pakistan and south asia from the council on foreign relations and former u.s. deputy assistant for south asia. good to have you with us. the two sides talking for years on and off, but this time, it's pretty aggressive. is this beijing showing its military might? is it strategic? >> we don't have any clear explanation from china as to why to take theseded views. my own view is we should also

see this in light of the fact that we are seeing increased chinese territorial assertiveness in other parts of asia as well. we have to evaluate this as a pattern of behavior. but you're right. for have been tensions decades. it seems to be a real turning point. we haven't seen anything like this in decades. haslinda: how much motivation is there for both sides to ease tensions? we know china and india are increasingly nationalistic. >> right. increasingly nationalistic. this has been a border that let's say they both continue to patrol and continue to claim the same area of territory. but i think the steps china appears to have taken fortifying

and bringing in thousands of troops has pushed this to a new level of tension. you mentioned about china's i guess soft power in the region. is that what is motivating the latest spat with india? is this part of a broader foreign aggression of beijing taking advantage of a leadership vacuum in the region? some say this is because china was responding to india's move to annexkashmir. what do you say? >> i have to be honest, i don't know. we have not gotten any clear indications about the region -- reasons for this particular move . we may never get any explanation. series --a variety of theories floating around in the indian media and u.s. and international media. of which includes

what you just mentioned, that china is responding somewhat ofayed to india's removal traditional autonomy from the kashmir region, in a process in which it created a union territory, but there are theories that india has grown closer to the united states and u.s. allies like australia and japan. i read one theory that china may resent the fact that india is in a leadership position in the world health organization. isre's another theory china acting, having recently seen india build more roads in this particular area. perhaps when an historian rights about this 40 or 50 years of -- from now, there is a theory.

yvonne: the u.s. has endorsed the unilateralism india has shown, may be as part of a strategy to build up india as a regional hegemon and contain china as well. d.c. is facilitating beijing's rise in the region as well. don't think the united states is facilitating china's rise. i think we haven't seen much comments so far from the united states on the particular issue. we know secretary pompeo was meeting his chinese counterpart and honolulu and a previously scheduled meeting. perhaps there has not been much comment. i don't think the united states is seeking to facilitate china's rise. states,the united through partnerships and its allies, is seeking to ensure asia isn't dominated by anyone power. how should the u.s.

engage with india? could it be in a more meaningful way, likely by annual rim of the naval for -- pacific exercises? should it be involved? >> that's an interesting question. the united states has a growing strategic and defense relationship with india. it has been slowly developing over the past two decades. india does have its own exercises that it puts on. states, india, japan, a trilateral naval exercise. india has a naval symposium. i think they have taken part in rimpac before. but india is not a traditional ally. the relationship between washington and new delhi is not the same as it would be between say washington and tokyo or washington and canberra.

but it is a close strategic partner. if i were a business that operates in china and india, how should i be viewing ?his indian e-commerce companies have major chinese backers as well. how concerned should businesses be? before weust reading got on this program that the indian government is taking a bar chinese telecom equipment from india. they are about to cancel a 4g telecom equipment vendor. -- tender. that's the first up the indian government is taking after the tensions and troop fatalities on the border. we will have to see what other kind of steps the indian government looks to take.

i wouldn't be surprised to see the indian government reevaluate and tighten its scrutiny of chinese investments in india. all yourhank you for insight. alyssa ayres from the council on the coming up. . , we check in on indonesia. cutting rates today after a two-month pause. the economy showing further signs of slowing amid the pandemic. this is bloomberg. ♪ ♪

yvonne: some lines crossing on the terminal from the pboc governor speaking about monetary policy. still in a normal range. and the economic fundamentals of china is still sound. got theon the back of cut to the 14 day reverse repo rate from 2.55 to 2.35%. the bond market has been waiting with breath here for some kind of move by the pboc. finally, we got something here. we did see when it comes to yields, a little lower, but still talking about yields on the chinese tenure hovering around february highs recently. bank of indonesia

expected to resume lowering interest rates after a two-month pause. let's get more with our chief asia economics correspondent, and a current. reporter: good morning. we are looking for a 25 base cut from the bank of indonesia. is theue in indonesia virus is continuing to spread, putting a lot of pressure of course on the health sector and the broader economy. the government is looking at downgrading growth forecasts for the rest of the year and the finance minister warned its under pressure. that's why the prime minister is expecting. to act yvonne: what happening in taiwan? they have a central-bank decision as well. they have been basically quite successful in containing the virus. we talk about the tech cycle that seems to be bouncing back. are they prompted to cut as

well? reporter: you are right, it's interesting given taiwan is a success story when it comes to containing the virus, but they are under pressure to cut. that is mostly because of the strong currency that is. keeping a lid on some of the exports under the view that the central bank is cognizant that the broader world economy is weakened.d it is -- they are expected to cut to a record low of 1% today. haslinda: there are also expectations for fiscal stimulus in the philippines and thailand. what do you expect? reporter: they are both going to spend more money. borrow and spend. it is a slightly different story because the philippines is talking about raising new taxes to offset new stimulus. stimulus globally is around $11 trillion this year according to the iif.

another $5 trillion in the pipeline. that bill will have to be paid for. the philippines are having to wait new taxes and it reflects hard choices facing governments. for thailand, there getting back into the market. they are not afraid over raising yields. asian: enda curran, chief economic correspondent. is thatp, opec holes holds online meetings. our exclusive interview with russia's energy minister is next. this is blumberg. ♪ -- this is bloomberg. ♪

yvonne: russia's energy minister so's he's comfortable with an oil price of $50 a barrel in the long-term. he told us the decision by opec-plus to extend output cuts for another month will smooth the market as it recovers from the coronavirus shop. -- shock. >> yes indeed, you are right to mention we have made a decision on the sixth of june to preserve june because for the month of july. i think this was the right decision. we have held a lot of consultation and arrived at the conclusion that due to immense

volatility, we need to somehow smooth the recovery period and preserve the fragile bonds. we discussed this and decided to come up with a compromised decision to extend cuts for one month. as for the future, i would like to remember that during the many years we have been in the opec-plus operation, we have already's -- always said we are flexible. we don't need to look and study the market, we need to make sure the market is strong and be confident of what the demand recovery is. we will not be basing future decisions on the balance of supply and demand. also like to note that we have made a decision to regularly monitor implementation and the state of the market through regular monthly monitoring.

reporter: i want to ask about the conformity levels and j mnc tomorrow. the data you are seeing thus far are the laggards notably the f iraq, which will make up for cuts that they fail to comply on? are you confident these countries are doing so? about the performance ,evels and preliminary numbers the performances on a very high and it's encouraging. we will be discussing this as well. on the like to remind sixth of june that we underscored opec needs to reach

100% conformity. of our colleagues reiterated commitment to this and do their part. reporter: i know we are only in the middle of june but what are you seeing for the first few weeks of june? can you give us details about how you are complying early on? we take this very seriously ourne of the indicators in own immediate decline, close to 100% conformity away from the month of may. if you remember before, we had always been reducing production gradually to reach target levels. summer months,he which makes it simpler to do, we have been able to achieve this result.

taking this obligation. reporter: today, we saw beijing cancel two thirds of flights because of an uptake of virus cases. the unitedockets in states seeing these trends as well. brazil had thousands of cases in one day, north of 35,000. where do you see demand right now in the oil market? that's the right question and a very important one. .emand is the most important there is still a lot of uncertainty and volatility talking about the pace of demand recovery.

now in june we are seeing very good dynamics and risks of a second wave emerging but it is still quite uncertain. haslinda: russia's energy minister alexander novak speaking exclusively with bloomberg. let's get a wic took of the business flash headlines. autos jumped the most in two months after the approval of a listing in shanghai. shares saw the biggest intraday gain since april 17 on news of --ence of citigroup raise the price target for $20 hong kong with an analyst saying it is "a very smart move." of awill boost geely ahead potential merger. hsbc has resumed illumination of jobs. as many as 36,000

the ceo says part of law overhaul has been running since february and is time to stop long-term measures by cutting staff. jumped the most since february on reports it might seeking listing in hong kong p or they will provide investment banks to pitch for advisory roles later this week. the potential listing could be worth as much as $2 billion. other reports say you're him had been talking to cicc and goldman sachs about the plans. taking a look at the markets, pretty much seeing a down day when it comes to risk assets. headlines when it comes to the meeting between china and the u.s. in hawaii with secretary of state mike pompeo. this is according to chinese national radio. they are saying they had a

constructive dialogue and the trying -- china and the u.s. agreed to keep communication. this is all coming in the midst of all this back-and-forth between president trump signing this weaker bills that will add sanctions on those threatened uighur muslims and with bolton and national security advisor to president trump and his explosive allegations that president trump had sought president xi jinping's help to purchase more agricultural goods. at this point, that we are seeing the two sides are still communicating and amicable one it comes to the trade relations at -- and they will have a constructive dialogue. 1% downontinuing to see on benchmarks like australia, new zealand, philippians. hong kong down close to 250 points despite a pretty solid ipo for jd.com p or the dollar pretty mixed when it comes to asia fx but we are seeing oil

continued slippage. plenty more to come. this is bloomberg. ♪

haslinda: it's almost 11:00 a.m. in hong kong. i'm haslinda amin. welcome to "bloomberg markets: asia." rishaad: this is a look at the top stories. president trump raising the stakes with china, signing a bill denouncing the oppression of uighur mold -- muslims. beijing threatening retaliation against sanctions. flights, canceled

close calls and shuttered markets. the new coronavirus spike in china becoming a major test for xi jinping and most of the latest cases are in the capital. rishaad: markets slide on a second wave of concerns. one of the winners. the alibaba rival raising almost $4 billion u.s. in its second resale. haslinda: speaking of the market slide, let's check where asian markets are, down the first day in three. investors continue to weigh an increase in virus cases against stimulus measures. the markets searching for a new catalyst to extend gains. the hang seng down by more than 1%. like you said, a big day for jd.com, china's number two online retailer. the second biggest ipo this year --bally, hot on the heels

the csi, swinging between gains and losses. casese new virus impacting beijing and putting a lot of pressure on the government. we have the pboc governor saying policy within a normal range, cutting its 14 day reverse repo rate from 2.55%. pi down 6/10 of 1%. asx china index negative and down more than 1%. jumpinga's jobless rate more than expected and putting a lot of pressure on the economy trying to recover. take a look at where we are in terms of the southeast asian markets. we have jakarta in focus. decision day. expecting a 25 basis point.

emerging market central banks have delivered over 5000 worth of rate cuts. rishaad: straight to currencies, knowing what the dollar is doing, moving marginally to the upside and bucking the trends we've had in the last four weeks. that's where we've seen some dollar weakness. the rupee, the stronger side by four chance of 1%. at a quarter-point cut. it should take interest rates in indonesia to 4.25%. the korean won, tensions and saber rattling playing out over there. korean won pretty much flat. also flat against the yen.

strength at the moment for the japanese currency. japan plans to lift curbs friday as well with regards to the lockdown the country has been having, semi-lockdown, i should say. as well andna particularly in the capital where they are fearing a second wave gathers momentum. let's get that and more with first word news with karina mitchell in new york. karina: good morning. more than 1200 flights in and out of beijing have been canceled as the city rustles with a fresh coronavirus outbreak that has infected at least 130 people. there daily twitter account says 70% of flights were halted at airports.schools are shut across the city and travel curbs have been imposed on people living there markets where the cluster began. indian prime minister narendra modi says he will defend his country's sovereign 10 -- sovereignty after a clash with

chinese troops and nearly 20 soldiers died. modi says india only wants peace. the country's prime ministers. . have held talks over the phone. north korea has released its own pictures of the destruction of the joint liaison office in a border town while warning of further potential action against the south. the office was open to years ago and was not occupied at the explosion. north korea says it will also send troops to the border, reinstalled guard posts, and resume military exercises out frontline areas. australia's unemployment surged in may with more jobs lost as restrictions associated with the coronavirus continue to be felt by the labor force. the jobless rate climbed to 7.1 percent from a revised 6.4% in april.about may.00 people lost jobs in

the rba says the economic downturn will be shallower than first expected. the aussie fell on the news. global news 24 hours a day on air and on quicktake by bloomberg, powered by more than 2700 journalists and analysts in over 120 countries. this is bloomberg. back to you. rishaad: thank you. more details from the meeting between chinese officials and the american counterparts in hawaii who had secretary of state mike pompeo making headlines, stressing the importance of american interests and fully reciprocal dealings across commercial, security and diplomatic interactions, saying they want full transparency and information searing -- sharing to combat the covid-19 pandemic and also to prevent future outbreaks. that's where we are with some of those meetings and headlines. president trump signing a bill that cancels -- calls for sanctions of a chinese treatment of uighur muslims and china has threatened retaliation if the

it.ed states moves on the move came at the same time trump is seeking an injunction to stop a book being published by his former national security advisor. it is john bolton. in it, he claims trump asked xi jinping to help him win reelection. in an interview with fox news, trump deny those allegations and said bolton broke the law with his revelations. >> but he broke the law. very simple. has most -- as much as it's going to be broken, this is highly classified, that's the highest stage, highly classified information. rishaad: to get more on this, let's bring in our editor jodi schneider. . ,et's start with the nsa national security advisor, john book.'s what did the president allegedly say? i suppose it is germane right now as we run-up to the general election. reporter: it is important for that reason and also as you

noted, president trump has signed that bill. basically the disclosure is from mr. bolton's book as an excerpt of the book in the wall street journal and other places that basically at this meeting, president trump encouraged china to build internment camps to .ouse uighur muslims according to the excerpt, president trump why he was building these camps and president trump said they should go ahead with building the camps, that he thought it was the right thing to do. of course, the president has now signed a bill that has broad bipartisan support that would punish chinese officials with sanctions from imprisoning one million muslims and require president trump to sanction officials found responsible for oppressing minority groups and revoke fees as. it is a shift for president trump who in the past had been reluctant to act against china

over human rights issues. rishaad: how could the signing of the weaker bill further inflame tensions between china and the u.s.? reporter: chinese officials have threatened retaliation and of course it is as tensions between the u.s. and china have increased almost day by day here over blame for things including blame for the coronavirus epidemic. it obviously began in china but president trump is thought to shift blame to beijing as his present -- handling of the crisis has come under intense criticism in the u.s. the men have also split under hong kong at the new national security law and how the antigovernment protests in hong kong should be handled. there is speculation the limited trade pact between the countries signed before the virus is at risk of coming undone. china says its fighting separatism and religious extremism among the uighurs.

rishaad: back to the bolton book, how has the white house responded to the allegations in it, especially those concerning president trump asking china for help in winning a reelection? reporter:reporter: so that is of course the most dramatic allegation in the book, that president trump asked president reelection by buying u.s. farm products. the former national security advisor wrote that president trump was pleading with president xi to ensure he wins. the white house is not taking this lightly. the trump administration has been trying to stop the books publication and in just the last few hours, asked a federal judge in washington to grant an emergency restraining order stop. that it needs to . in an interview with sean hannity, president trump bolton law. the

he is saying that he broke the law by publishing the book, getting the material, called him a washed up guy when he joined the administration. mr. bolton is also getting segments,from other people saying if you knew these things, why did he say he would not testify? he made it very clear. subpoena toht a testify during the impeachment hearings against president trump. president trump of course, it happened last year and he was in the end, not found guilty by the senate, but mr. bolton did not testify at the time and made a case of not testifying. some have said if he knew these things, why didn't he tell congress rather than waiting to publish them in a book? rishaad: senior international editor jodi schneider in hong kong. -- haslinda: senior international

advisor jodi schneider in hong kong. tells us strategist why she is forecasting a 25 basis point cut. this hour, bad news is good news for risk assets because it keeps the stimulus tabs open. we will talk macro strategy in a moment or two. this is bloomberg. ♪

rishaad: this is "bloomberg markets: asia." they look at what's going on with equities. trading down at the moment. . essentially investors waiting what's going on with the coronavirus and assessing whether the spikes in an actions are perhaps indicative of a second wave. they are also looking at the possibility of returning a trade

war between china and the united states. lots on their plate. it is really a moment, a time, that the bad news has been kind of ignored. >> yes, totally. always a pleasure being on. i could not agree with you more. this is about fundamentals driving this huge move up over the last few weeks. ands all about liquidity the support we are getting from the monetary and fiscal policy side of things. rishaad:rishaad: and that is in large part responsible for propelling markets higher. realize is not really stimulus. it's almost like a band-aid, like triage, just keeping the

patient alive. i >> could not agree with you more, the stimulus entails that there is something to stimulate. relieft this is a package at best, maybe even a stability package needed. may be over the next three to six months, we will see stimulus packages on the fiscal side. sure, thefor accelerate on monetary policy is here to stay and you can say that with certainty. this is something that in most markets in a pre-covid world, we spent so much time on. sayeast this time you could support will be there for a long time. one last point, in asia where we nomica, which was really

omics, it went up and this has gone on for quite a while. rishaad: also when you look at , the beginnings in march, it was retail driven. the institutional money missed it. do you know why? >> i'm not sure i agree with the fact that it was retail driven. i think there's a lot of sensationalism around that. some interesting stuff out on social media. definitely i agree the retail private side has vastly outperformed the "smart money," and i think it's a combination of a few things. first of all, what retail and private investors and traders can access now compared to the gfci is more equal playing field. you can't say you really blame

them. you've been conditioned and rewarded to buy the dip. this is what they have been doing and it's working so far. it's a part of the institutional's struggling with an it's why it is hard for the market to really retrace deeply lower because a lot of institutional's will be sitting on the bid because they are under allocated. to borrow from rishaad, whether it is triage, band-aid, or blood transfusion, you can't fight the fed or the boj or other central banks. at some point, earnings will have to justify the valuations we are seeing. yes? >> i completely disagree. haslinda: [laughter] >> i am a macro guy.

i just buy and sell. but the whole point is if you are talking earnings and valuations, you are saying fundamentals matter. i would say for everyone out there looking at it from a broader perspective, where do you think these markets are if we took away all the liquidity from central banks? the answer is there's is minimum 50% lower from here. say ism trying to valuation and earnings in this kind of market is marginal at best. i would not use it as the one reason to go into europe and out of the u.s. or anything like that. you can get the stock to stock individual names that justify that. has $20 billion cash and is trading at a $10 billion market cap, i don't think it's about valuation. i think it's about liquidity and where things get priced.

fed expected to implement you curve control s&s september. at e.m.ould you look bonds and currencies? >> i think it is more of what we have seen. we know there is front running from the fed. i've talked about that since mid-march. we even discussed it. i think that also coincides with this thing that people are not talking about, the structural breakdown lower in the dollar. that is a huge tailwind for e.m. as a whole. point, witho your it trading at all-time highs and thet of the moves since

march lows, e.m. assets of the biggest catching up to do and also the most upside assuming we are still in the risk on regime. rishaad: how do you value a company like jd.com? should neveruation be about what a company is trading at. it is perhaps what does the company perhaps deserved trade at? >> [laughter] on a fewsagreeing things today, which is great. from my perspective, it's about making money. on the valuation perspective, what's more interesting to me than jd.com, which to be fair is trading up in a poor market in asia, is the theme behind it. i think this is a structural theme here to stay, i.e. a lot of the chinese companies in the

u.s. i think it is great for the hong kong exchange, the hong kong market, local markets in asia. of course there will be a lot of brokers to make a killing from all of this. that's more of an interesting trend thinking about what happens on the u.s. listed side with these names. in regards to actual valuation, at the end of the day, china tech and asia tech trades at lower valuations than the u.s. counterparts. for instance, amazon was 70 kind of,ke jd.com is something close to 40. that gives a little valuation. the earnings from next year

same around 65%. ok, it was a question, not an opinion, but thank you for joining us. [laughter] kay van-petersen from saxo capital markets. china's handling of the coronavirus, after more cases reported in beijing. the latest on that and more, this is bloomberg. ♪ d more, this is bloomberg. ♪

rishaad: let's look at what's happening with chinese equity markets towards the lunch break. upside 4/10 of 1% to the but the rest are not negative. china and shanghai composite barely moving. headlines coming through at the meeting that took place in honolulu. china saying they discussed , going on hong kong

and really echoing what we had from the u.s. that they discussed those things and wanted transparency with regards to their coronavirus and where it came from. president xi jinping declaring himself personally responsible for every aspect of china's response to the pandemic. he faces a fresh test, the rapidly growing outbreak in beijing. selina wang is in the capital with the latest. how is president xi going to enact -- navigate this challenge? reporter: this certainly is a major challenge to his credibility as he navigates not and the coronavirus economic pressures at home as well as geopolitical tensions between the u.s. and the risky spat with india. at the same time, china's propaganda has touted the

success, painting its response is better than other countries. handlesnges on how he this. china has tried to minimize disruption and so far has .voided citywide lockdowns officials are relying on aggressive contact tracing, identifying people who had contact with the market with outbreaks. they tested 360 6000 people since june 2 thing -- 13th. haslinda: china correspondent selena wang in beijing. all of these coming on the back of discussions within the u.s. and china. to recap headlines from hawaii where u.s. secretary of state mike pompeo mate -- met his chinese counterpart. he talked about american feelings on commercial, security and diplomatic operations,

stressing full transparency on the virus. plenty more to come. this is bloomberg. ♪ you say that customers make their own rules.

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haslinda: it's 11:29 a.m. in singapore and beijing and 11:29 p.m. in washington. you're watching "bloomberg markets: asia." here are first word headlines. the white house is taking legal action against former national security advisor john bolton, seeking an injunction preventing him from publishing a new book. excerpts say president trump sought help from his counterpart in china for his reelection campaign and that he made foreign policy choices to benefit himself politically. the president's campaign team dismisses the claim. >> he broke the law.

very simple. this is highly classified. stage.the highest highly classified information. haslinda: president trump turning up the heat on china, china of bill accusing interning weaker muslims. the bill has broad bipartisan support and requires the to sanction any chinese officials found responsible. beijing says it will retaliate if the u.s. moves ahead. the group of seven are calling on china to reconsider the plan security law saying it will itpardize what has allowed to flourish for many years. the warning marks a show of unity after recent strains over president trump's plan to hold

the next g7 meeting face-to-face. new zealand has entered its first recession in almost a decade with gdp falling 1.6% through march. new zealand is expecting a much worse period for three months through june after the pandemic forced it to close borders and close the economy. rishaad: let's get to this speech made at the moment by larry fink, ceo, chairman and cofounder of blackrock. he is speaking at the forum in shanghai saying stability needs to be at the core of investment and that china will be among the biggest opportunities for his firm. that's larry fink talking in shanghai. to fly there.le

jd.com soaring on the hong kong debuted. tom mackenzie is at company headquarters in beijing. yes, the shares on secondary listings rising or than four and a half percent. of thestart in terms secondary listing for what is china's second largest online retail company. this is a trend we are seeing with chinese tech companies looking for home as chinese tensions continue to ratchet up. we heard about proposals 10 truly to push for more dataparency and transparency from some of these u.s. listed chinese companies, making some of them look to hong kong as a second home.

they want to be closer to market as well. we spoke to the retail division of jd.com about the rationale for listing in hong kong. it's a company that has raised $4 billion u.s. take a listen to what they had to say about the rationale and what they plan to do with the money. revenue for domestic and overseas brands were not very good on the first half of the year with the impact from the coronavirus. thehe shopping festival is most important sale opportunity for brands in the first half. >> compared with previous years, we will see a high participation of brands for this years festival. storageat have stronger pressure and those who had a severe impact from the virus will have a bigger impact

compared with previous years. we might see faster traffic growth and user growth. reporter: there was a forecast for second-quarter revenue, between 20% and 40% growth. are you able to give us a sense of where revenues will come in within that range. >> we can't give a precise estimate as the shopping festival is not over you and it will be important in the second quarter. revenue will come in pretty much within our estimates. we are very confident. reporter: we are looking at economic growth at the weakest level in at least three decades and pressure on people's wages. what is your sense of where china's economy is at now and when consumer demand might start to rebound? the covid-19 pandemic has

imposed increasing uncertainties on the economy. you can tell from the statistics which are not as high as previous years. china has a huge market and there's a lot of room for customer growth. resilientrket is very . there is short-term volatility. but for the long-term, china is still a market that can attract global investors and brands. reporter: you have this clear advantage in the pandemic which is logistics and services as the economy recovers. do you still hold onto that advantage you had over the year -- your peers? >> in the industry or the eyes of customers, people would say jd logistics as a leading add

vantage, but behind that, andrehensive capabilities business model and concept. inse could help us benefit the short-term term and could bring sustainable development from long-term competitions. reporter: online to off-line has been a big theme, particularly in the grocery space. fresh fruit and vegetables. what are the key aims for you in terms of grocery sides and what are the challenges. year come online and off-line will collaborate to develop the fresh produce business. we need to gradually push this forward because developing and off-line business takes time and

needs a business model to grow rather than relying on capital. the nextduce will be important development strategy. reporter: that was the ceo of the retail division of jd.com which accounts for 90% of the company revenues. he was talking about the retail and consumer sector in china. in terms of what we are seeing, this is the 1618 shopping gala. it is one of the second largest annual shopping festivals in china and this year is the focus on whether china's consumers will rebound. about 12 hours left. of $32tched up sales billion about 2019 levels. it ends at midnight tonight. seems they are doing pretty well. about one point $5

billion u.s. in terms of subsidies to ensure they cut prices to get shoppers back. andquestion about wages loss of jobs in focus. he talked about the money they raised, 3.9 u.s. dollars -- $3.9 billion u.s., they hope it will continue to give them an edge big,bi theitors incumbent in the room as alibaba. want to deepen their pool of investors so that is part of the rationale. they have not discussed the possibility of being delisted but it's a shadow over much of this theme. a pretty solid debut

in hong kong. markets coanchor tom mackenzie beijing.'s hq in still to come, indonesia expected to resume easing. we will speak within asia rate strategist who says downside risks are intensifying. this is bloomberg. ♪

haslinda: welcome back.

indonesian central banks expected to resume lowering interest rates. policymakers are under pressure to do more to ulster growth amid further signs of a slowing economy. let's bring in our guest in the rate cut camp and thanks more easing is yet to come. joins us froma singapore. inflation, dire economic outlook. why should the bank of indonesia cut more than 25 basis points? >> hello. i think there's a good chance we point rate25 basis cut today or there's no question they need that what policymakers can provide. the challenge has always been about financial stability and growth. that means having to identify at what stage we are in and the

right policy response for that stage. consideration onshore, there's a previous assessment and the 25 basis cut today would be most appropriate. thatnda: what do you say there is further downside risk to the projection made this week that growth could be zero for the year, given that ferris cases are still rising? >> yes, indeed. we think the pain on the economic and housing sector is still going to intensify but we also have to look at what's happening in the domestic economy and whether it is a most effective measure. on armys has been leading the policy response, communicating to the public a .eed for the large government

from the ministry of finance, it has in making sure access to market-based financing remains wide open and underserved. where we are right now on the butvery put in place, government spending is only going to accelerate from here. because of that, it would make sense to ask the fx and portfolio flows, the efforts should be directed at bringing down costs. that doesn't mean they should make drastic changes all at one time. any reason athere all to be concerned about indonesia's fiscal position? it has said it wants budget deficits to go higher at 6% of gdp. the tragic erie we are on, indonesia is growing much more

while revenue projections are falling. at this point, you can argue the need for financial stability and growth is no longer contradictory. both need lowering interest rates. i would highlight -- rishaad: in the last few moments -- just going to go into the rupee. about 13% up. tell me something. does that tell us about the capital flight position and how it might have in large part? >> indeed. portfolio inflows are still missing. we saw the bulk of the outflows in q1 and the recovery so far has been incremental. i would highlight that is the component that is missing into

today's decision. man force of aggressive local currency bonds, the yield curve is going to deepen with rate cuts. you'd like the whole curve shift lower. is waiting for things to improve further so to get the most benefit for their action. rupiah, weout the saw the worst in q1. thingsirst -- forward, are looking slightly better. on this level, the chance is than fans will take more money out of the market. balance is improving so it should lend support for the ideal outlook. rishaad: how has indonesia dealt

with the pandemic and how has the economy fared compared with others you cover? i would say in the near term, the loss is significant. it doesn't seem we are asked the pain in terms of the economic and health sector follow and it that theng more urgent economy is effective. the tourism channel, indonesia will be less infected but we are mindful of the second round of the investments. again, the concern is not just the near term, but i would say we have concerns around the medium to long-term growth prospects for the country. economic growth was already

weakening prior to the pandemic. this administration had talked ,bout reforms to lift indonesia improving efficiency, or making labor force more competitive. the economy is being more leveraged. haslinda: manufacturing has contracted two months in a row. pmi around 30. how much can that provide indonesia for recovery? again, support but indonesia is considered a less open economy so we are not getting as much on the way down but it means on the recovery, all the way out, it will not cover as fast as more open

economies like singapore and taiwan. thank you so much for your insight. a headline to tell you about. reporting that vietnam can only reopen international flights from q4. indicating it can only reopen international flights from q4 meaning some indication. it is reopening for countries like singapore, though, we are still awaiting some indication. still to come, g7 foreign ministers have announced moves in hong kong but hong kong's adjustment as secretary teresa theg tells bloomberg that law will bring stability. this is a this is bloomberg. ♪

rishaad: this is "bloomberg markets: asia." more countries coming out against chana's -- china's planned security plan, urging beijing to reconsider the move saying it will jeopardize what has allowed the city to flourish. telling us exclusively the security bill will actually bring stability. >> i>> can say categorically it will be good for hong kong. national security is fundamental to any state, any sovereign

state. it will bring about stability in hong kong and also create predictability and prosperity. it will be something hong kong will need and benefit from. reporter: many people in carrie lam's administration including yourself have appealed to the people of hong kong to trust us, that it will be good for hong kong. however, there are not a lot of details, which has led to speculation on what will be in the security law and whether it will supersede local laws drafted by the legislative council as described under the basic law. how can you convince the people it will be ok if you yourself did not have the detail for beijing yet. >> you are quite right, we don't have the details yet but we have the national people's congress

position and they lay down three fundamental points that are very relevant to the question you raised. it states that in safeguarding national security, the one country to systems is to be enhanced, hong kong's stability and prosperity is to be preserved, and the legitimate rights of the people in hong kong will be safeguarded. i think those are actually in position which the national people's congress passed. when they do legislation, they will have to observe these three fundamental principles. reporter: will hong kong people get the adequate chance to debate this meaningfully or will it simply be imposed. >> i would not be able to say because the national people's has their own

legislation laws that they will have to comply with to deal with the enactment exercise. when the national security annexs are put into the three of article 18, the hong kong government will be consulted and so at that stage we will do the best we can to convey concerns, which i'm sure, we must not assume they have not heard from the media, the concerns and request of the people. i'm sure there will aware but the government will continue to do that. reporter: why did we have to go through all this turmoil of the last year? the initial extradition bill that was reviled by millions here, let's not mince words, when beijing and the standing committee and national people's congress could simply add the

bill to article three of article 18? they could have avoided this if it was going to be the end goal anyway. >> one has to make an important distinction. when we talk about national security, it is in the purview central authority. and then of course the central authority can provide for legislations and other policy matters. that's different than what you were just discussing. but let me finish. why do we need it? because of what happened in the last six months of 2019 and also the social unrest and people chanting slogans of independence , etc. p there are also the problems hong kong has faced the last 23 years that we are not able to pass any legislations that would safeguard national

security in any shape or form. as central authorities, they see the need to provide for that. of course in light of circumstances that are prevailing in hong kong. the hong kong justice secretary teresa chang. malaysia aims to amend china -- charges against goldman sachs 1mdb.involving state fund it involves liability ahead of the court hearing for goldman asia. oldman international and singapore. it is accused of misleading investors when a deranged billions of dollars for bond sales for 1mdb, while knowing misappropriated. hsbc has resumed elimination of as many as 35,000 jobs, three months after the restructuring plan were paused by the coronavirus. thecoo says parts of overhaul have been running since

february and it is time to stop long-term measures. they join rivals and resuming cuts that were put on hold at the start of the pandemic. india's u.s. bank is set to be planning a one billion-dollar share sale. they will kick off public offering soon. it was rescued by the r.b.i. in march after running into debt problems. shares have rebounded by more than 73% since that deal was announced. i and we have the india open about 10 minutes ago. this is where we are at the moment. half a percent up now. pretty much unchanged. the nifty is flat.

losses at the moment on markets, trivial compared to the other losses. down we are for the time being. this is bloomberg. ♪ save hundreds on your wireless bill

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program. the opinions and views expressed do not reflect those of bloomberg lp, its affiliates, or its employees. >> the following is a paid presentation brought to you by rare collectibles tv. >> in 1792, as a young country in its formative stages, the united states of america needed to assert its status as a new global power to the countries around the world. as a way to firmly declare to the world that the united states of america was now an independent country that would continue to propel freedom, the first president of the united states, george washington signed the coinage act of 1792.