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tv   Bloomberg Daybreak Australia  Bloomberg  July 21, 2020 6:00pm-7:00pm EDT

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♪ >> good evening from bloomberg's headquarters. i am in new york. >> i am in city. welcome to daybreak australia. wall street banished a third straight -- wall street managed a third straight gain. approach 15 cases million with death topping 610,000.
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president trump this a u-turn -- says warning mask saying trump does a u-turn saying wearing masks is patriotic. -- backing for that extra >> u.s. futures opening flooded ae momentary after we lacked >> we're setting up for a mixed clear direction in the session. session in asia. we ended up with a session mixed to clingres managed with the tech surge fall during. s&p 500 index did manage again and finished at a four point -- onto some gains. amid concerns we could be far at a four-month high. off from another stimulus package in the u.s., even though we did see an agreement coming out of european leaders. senator mitch mcconnell casting doubt the stimulus bill would come in the next two weeks. we did get a rally in energy and flat at thetrading financial stocks good investors moment, not much of a move. are more hesitant when it came to kent -- came to tech companies as we are getting singapore, nikkei futures down earnings later this week. by seven tens of 1%. new zealand, a quarter of 1% the bloomberg dollar index fell to the lowest since march 10.
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higher. look at what oil is doing at the we saw oil slip as well in the moment. we are headed towards that $40 a early part of the asian session. barrel level after we saw a huge surge in the session and finished at the highest level since march. we have optimism after the european union deal on a rescue package worth 750 billion euros. not really holding onto that momentum. shery: secretary of state mike that sent the common currency to the highest since 2019. pompeo praised britain's tougher let's see how things are shaping stance on china as the allies up in the asian markets. signal they are planning more things are mostly mixed as coordinated action against beijing. what do we know about this coordination against china? japanese pmi, malaysian london said hein inflation data and taiwanese unemployment. the earnings strike continues. wants to build a coalition of with the outlook staying cloudy partners that understand, as he across asia, 23% of companies on described it, the threat from the index have scrapped or cut china. he said he wanted to be able to dividends at the fastest pace in a decade. at an inflection convince the chinese communist party to stop there nefarious point for asia, since some parts
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behavior, as he classified it. of the region are better than the u.s., and there is a story he suggested that the u.s. is really digging in for the long bruin with the dollar set to haul in terms of the challenge. the threat the country poses to fall substantially. the momentum is gaining for the the west. greenbacks to climb. he also praised in public the the yen is up. british government over a decision to ban huawei, which on thell options jumped was a momentous decision for the e.u. stimulus package. the euro trading on an 18 month previous-turn from a high. aussie and oversold decision. that theagainst claims condition after topping 71 over british government had been arm twisted and bullied into the position by the u.s. -- advancing to a high. we may see pullback before discussedo -- they challenging that 72 level. belowg a three-day gain hong kong and their serious concerns about what was going on in hong kong, the security law 698. .e could see more support that has been opposed by beijing . they suggested there could be showing you the yield gap more action on that front, g7. between the u.s. and china as policy divergence between the two is looking favorable for
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capital inflows. >> bringing more orders to the president trump has made an about-face for the wearing of face mask. he is urging americans to cover up. consumers. see a self-driving he is touting progress on testing. pres. trump: we are asking everybody, when you are not able vehicle. to socially distance, wear our mask. some technology to get a mask whether you like the mask or not. give you some more information, they have an impact. they will have an effect and we need everything we can get. augmented reality. our congressional reporter emily wilkins is live from washington. there have been lots of reports over the past months on how the virus task forces to, given we a recognition system -- you can have not seen these pressers occur regularly for some time. it is interesting that they have what the storyen resumed? is it because we are getting closer to november, and what you
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think of the tone the president struck? emily: it was an interesting is about and the other consumer presser. rating of this store. it was a change in tone for >> what proportion would you trump we have seen the last couple of days. expect to be fully automated? we have not seen him with a face meson before, but the other day he tweeted himself out a photo what kind of timeframe? line one calling it patriotic. intois will gradually get he took a different home of the briefing saying things will get worse before they get better, and encouraged americans to wear -- still have a lot of technical a mask and to avoid crowded indoor areas. what isugh to say and policy challenges but we are testing the delivery in beijing. causing this change, whether it is november, and the fact that joe biden is topping the we have a few vehicles running president and national polls no regularly. we are conceding -- and national haveinion, we should we are seeing really mature technology in 3-5 continued rise in the virus. >> he kept calling this the years. and then we will see a lot of "china virus." this coming at a time when the vehicles along the city. u.s. has charged two chinese >> is the end goal for hackers for allegedly stealing automation to replace the
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coronavirus research. delivery drivers you employ, or emily: right. trump was very defensive on the to work alongside those delivery drivers? virus saying early actions help autonomous of curbed the spread and he also blamed china multiple times for not having to containing this vehicles is to help the courier well enough. we have heard a lot of deliver. discussions with the tit-for-tat demand of we saw the between the u.s. and china. the u.s. has the service growing in china. accused two chinese hackers for stealing information. they said they were assisted by the chinese ministry. after defense and we have about 30 million orders every day. we are expecting this number to weapons' systems. grow three or four times over >> we saw stocks, off those the next five years. any automaticave highs partly on concerts or uncertainty of what the next round of government stimulus -- we are using would look like. what do we know about what the republicans are crafting for their opening negotiating bid, i guess? emily: yes. republicans are back in self-driving vehicles to help washington this week, working on to deliver.
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a coronavirus stimulus. we are not expecting anything this month. this process will go into early in the future, it will be a form august, but we are starting to see democrats and republicans on that theed delivery so this, containing another mound of stimulus checks for -- in the public street americans, as well as additional funding for those on unemployment. the catch is instead of going to everyone, they are disgusting sending -- they are discussing sending checks only two people where you use a vehicle to do most in need. thereing that is not in the delivery. >> there is a lot of debate in the u.s. about data privacy when it comes to china. seems to be a payroll tax cut, something the white house has also china's artificial been pushing, but there's not a intelligence ambitions. lot of appetite on capitol hill for this to be included in justified set of legislation. >> emily, thank you very much for that update. concerns within the u.s.? emily wilkins there. or is this a misunderstanding? still ahead, china's largest meal delivery service. >> it is a misunderstanding. the seized storage in if we do internet coming years. we will have an exclusive for that head of artificial intelligence about the use of we use data to enter the robots. next, we will- up
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fiscal world. every big internet company in massive aid.u.'s china takes privacy very package around with large stimulus payments will affect seriously. they protect the user data very the world. this is bloomberg. ♪ carefully. we do publish some things but statistical data. we take the individual users data very seriously. >> that was the chief scientist at the world's largest delivery -- food delivery platform.
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it is backed by tencent. we were talking about automation because they see this growing demand. they see food delivery orders increasing three to four times over the next five years. the challenges how to ensure they can continue to do that. small robotic vehicles they are testing out in the northern suburbs of beijing. he thinks that will happen in the next 3-5 years. he addressed the concerns about data security. in the u.s., deep concerns about china's artificial intelligence ambitions. he hopes that in the future, the u.s. and china can continue to cooperate. he said that silicon valley is still the beating heart of innovation. he thinks the u.s. is
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misunderstanding. company liked a trendo accelerate their toward online delivery and technology. ♪ what was the actual impact? in the recovery >> are watching daybreak australia. and return to normal in china? on people toing alreadysaid the trends stay-at-home this long weekend as coronavirus levels rise again. the capital was celebrating the at play have been accelerated as a result of the pandemic. more people ordering in any does opening of the olympic games, but has seen infection rates by not think that will shift anytime soon. can recent days. more than 1600 new cases have been reported in the past week. even as people start to return to work in the virus is less hospitalizations climbing almost forceful here in mainland china. fivefold. tokyo and the government disagree over the severity of the surge. they did see a big drop off in the other services, like cinema hong kong is facing a third wave of the pandemic amid fears the city's medical infrastructure tickets and travel. may be overwhelmed. hotel bookings, flights, trains, cases are surging with many uncertain origins. all of that took a big hit in however, the government says the first quarter of the year.
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speculation the city will go into a new lockdown is false that is starting to pick up. the food delivery business was calling -- is false, on fire during the pandemic the reports "fake news." period when people were relying new york state has added more on it. he does not think that will regions to is quarantine state change and that is a big reason as the virus is climbing. why they are investing so andily in big data and ai travelers from 31 states phase mandatory isolation if they automation. he got his phd in the u.s. and enter new york, and more areas may be added to that list. the warning is based on a worked at google. seven-day rolling average of he said they are adding positive virus cases in excess headcount because of the of 10% tariffs 700 24 new opportunities going forward. beijing withzie in yorkers were hospitalized on tuesday. a new bloomberg survey says the interview. casino operators are likely to we will have more on the outlook post a combined loss of one for chinese tech during the day. billion u.s. dollars in the second quarter. a poll or brokerage says tensionset more on the companies will have negative numbers when they report soon. with china and other top storie.'s stock you can customize the settings.
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the united airlines is the i'm karina mitchell. this is bloomberg. the u.s. works towards leading carrier to put the pain of the pandemic into numbers. we will see if carriers have any silver linings on the horizon. a fourth run of stimulus, the u.k. is moving ahead with a this is bloomberg. massive boost to the economy. our next guestaythey're not even close. jay peloski is a cofounder tpw investments management. saw after four to five days of struggling to negotiate, the european leaders were able to clench an agreement on this fiscal package. i know you were more positive on u.s., and asia versus the but that kind of symbolism of solidarity we have seen toward european leaders, does that quit the runways for risk assets for you? jay: it really does because it
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is even more than how you described it. in my view, it is the sign in the ability for europe to agree to have joint issuance of debt and european issuance of debt is a very close run towards fiscal union. which is very important in the integration of europe here to me, it is no surprise you are seeing more positive and immediate response and the euro than in european equities. because it has to be ratified by all 27 states. second, the money will not really manifest until 2020 1-2022. it is not an immediate impact, but what it does is it since a signal that europe is continuing to deepen its regional integration. and the way we approach the world engaging european and americans, it is clear to was in response to covid, the handling of covid, the reopening process >> you are watching daybreak
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in both europe and asia, the stimulus process in europe australia. president trump is making a 180 versus the u.s., all of these signs point to better performance outside of the year degree turn on the coronavirus, now saying the wearing of masks was. is a desirable option. and then, we have to talk about he resisted covering his face the dollar. we believe the dollar could be for months, saying he did not the tail that wagged the allocation dog that really want to give the mainstream media an easy target. stimulates outflows outside of now he says it is patriotic to the u.s. wear a mask in public. heidi: in terms of sector he repeated this in his first performance, are you still positive when it comes to briefing in months. u.s. lawmakers are edging toward europe? jay: yes, we are. a virus stimulus package. we are positive on financials nancy pelosi says republicans across both the atlantic, on are in disarray over their delay both the european side. tactics and the gop's trillion dollar package is not close to what is needed. europe,pheral bonds in republicans and democrats are the italian bonds, portuguese divided on president trump's bonds etc., has had a massive call for a payroll tax cut to be rally. included in the plan. and the banks in each of those elon musk has unlocked his countries own a lot of that debt. second chunk of his moonshot and yet, there has been no bonus. reaction in the stocks of the bank to reflect the fact that can exercise additional stock
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one of their major holdings has depreciated dramatic. options. but we expect a really positive they have a stock price of $350. earnings which result of the european bank in the second he unlocked the first in may quarter going forward. when tesla topped $100 billion. we expect the same in the u.s. the u.s. bank results are pretty thailand is in the race for the positive, but what has not central bank leadership. happened is rates have not backed up sending a signal the economic recovery is underway. the names have not been we expect that in the second disclosed but one is said to be half of the year. a bank of thailand official on the other coming from the that should further try financials on both sides of the outside. atlantic. shery: on the strength of the the new governor will take over euro and the outflows from the on october 1. u.s., could the dollar really the bank has cut its benchmark rate three times this year. face a real threat to supremacy, global news, 24 hours a day, on air and on quicktake by as well as the world reserve bloomberg, powered by more than 2700 journalists and analysts in more than 120 countries. currency. a 750 billion euro i am karina mitchell. airlines through package that enhances the appeal of the euro and euro-denominated assets, what does that mean for $40 million a day during the second quarter as travelers the dollar? jay: i think that is a really stayed home during the key question. coronavirus pandemic. to me, we are setting up for the carrier says it will cut the
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exactly what you're saying. daily cash to $25 million in the we have had 10 years of nothing current period as thousands of but u.s. it, u.s. financial step put voluntarily. helane becker is a veteran outperforming. airline analyst. u.s. dominance in financial assets. she joins us on the line. we think that is coming to a close. great to have you with us. and the dollar is very you were already more negative vulnerable. andhis point, we estimate than wall street consensus. how bad was it for united? others, goldman sachs estimates, 15% to 20% over value versus the helane: it has been a really other majors. the fundamentals are turning difficult period of time. against the dollar, if you look at them a for example, the at one point in this second policy rates between the u.s. and europe and japan. quarter, there were almost 300 million americans under that come together. stay-at-home orders. there was no real premium, or no it has been really hard with the real yield pickup by purchasing dollar assets. recovery, which has been a lot technically, the dollars rolling over if you look at the chart. the chart looks very strong for slower, i think, then people continued weakness in the were expecting. and i think part of that dollar. positioning is still very, very slowness has been related to the light on the dollar. for us, you can see over the fact that cases continue to
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next couple of years, a period emerge in the south, the weakness.u.s. dollar southern part of the u.s. because people want to travel it can lead to sustained a but their governments are not performance by the world. allowed to travel. shery: the u.s. is trying to -- that is a huge problem from that the u.s. is trying hard to come up for another u.s. stimulus perspective. it would be nice to get back out package for the economy. we have seen the main there. beneficiaries being the retail i think it is hard to find a sector. how big of a size are you place you can go where you don't expecting it to be this time around, given we have more have to quarantine. political brinkmanship? >> we continue to see more which sectors will it affect the restrictions. for united, as we continue to most in the markets? jay: i think the real question see the pandemic and surging is whether it is going to be closer to the $3 trillion infections, what they can do is try to bolster their cash position. already passed in the house. how well are they doing right the democrat-controlled house now? has already passed a $3 trillion they are doing paszek -- trillion package. closer tot will be everything they can. that is number one. leaving no stones unturned $2.5 trillion because the president is trailing badly in during this crisis, which is the polls.
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republicans are at risk of really important because they losing the senate. have been able to improve on the there is an awful lot of political imperative for them to cash burn. you cited correctly $40 million agree to a larger number. i expect that to be the case. a day they burned in the second there is brinkmanship. quarter going to $25 million a the president and the white day in the third quarter. house are talking about cutting funding for tracking and slightly better cargo revenues, tracing. much better cost performance. as far as what segments will obviously, lower jet fuel costs really benefit, i think the focus should be on trying to helped a lot. support the states and the key element that you rightly municipalities, as well as local pointed out is the number of education structures and symptoms -- and systems. people who are considering it is important that the u.s. taking voluntary leave. allow schools to reopen, to they reached a deal with their allow people to go back to work or tino parents with children. pilots to offer early retirement for me, that is where i want to and other packages. that is really important to winning the recovery. see the focus, as well as continuing to support the i think it is going to be bad testing and tracing. the u.s. policy response to the this year. this year is going to be a virus has been very poor because disaster. for united, we are not worried they have not funded testing and tracing. shery: we need more federal about them. they have more than enough government involvement.
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jay peloski, thank you very much liquidity. from tpw. the third quarter, we will have plenty more to come on "daybreak australia." they are thinking they will have $18 billion worth of liquidity. it takes a year to bring a pilot this is bloomberg. ♪ back from furlough. can keep ast united many pilots on stuff as possible and work through early retirement for a lot of pilots turning 65 -- we calculated about 3000 of their pilots turned 65 over the next four years. that gives them an opportunity to encourage them to perhaps leave and keep the younger pilots on board. it is usually last in, first out. without is a whole host of issues including training events.
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-- with that is a whole host of issues, including training events, that have to occur. >> in terms of using programs as collateral to debt issuance, is this a smart move? is this something we could or should see across other carriers? for most airlines, the mileage programs and loyalty programs are where the cash generation happens. thing tot is a good have a loyalty program. the level of engagement for customers belonging to a loyalty program is huge. if you live in hub or travel by airline a lot, it makes sense to have the credit card. americans prefer the cash back
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cards. for the loyalty program, united was able to raise $6.8 million worth of capital, pledging it as an asset. monetizing it enables them to ♪ generate additional liquidity. the other key element is they updated coronavirus case value the program at 12 times ebita. -- numbers in australia will be updated in a couple of hours. the government is extending support and the reserve bank is there is more that they could warning of a drawnout recovery. do. paul allen joins us. whether other airlines choose to what are they saying about the go this route, we will see. american has said they will latest support measures on the government side? pledge their loyalty program as paul: the support measures you mentioned were extended, as collateral for a government-backed loan. that element is the idea expected, on tuesday. endsubsidy goes until the they have these customers who of march. want to travel and to are although, at a lower rate. looking forward to getting back the markets welcoming it. in the air and are engaged with spokeserve bank governor united. themnk that means a lot to on tuesday and he welcomed the
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and it obviously enabled them to extension and the tailoring of both measures. he said it would reduce costly raise capital at what i consider to be an attractive rate, right? disparaging to the economy. he had a few other things to say. once again reiterating that it they pulled the deal where they were going to have to have -- would not be negative rates in pay 11% in an environment where australia. he resisted signing a number to interest rates are next to trigger more bond buying saying nothing. the fact that they have other he would not make any judgment assets they can monetize should on that based on market conditions, but the coronavirus not be overlooked. itself was a major focus. >> we have been talking about how the outlook for airlines is phil low says the more this drags on, i'm certain that this a lot better than those that crisis will not stop until there rely on the international is a vaccine and is concerned market. what is your outlook for the resumption of international with victoria where cases are business when it comes to any spiking and wanting that very kind of timeline? carefully. shery: the state of victoria for example, for qantas, it is continues recording triple probably not until mid next digits in cases. are there signs of a second way year. helane: it is a disaster, isn't peeking? paul: there doesn't seem to be it? the issues that exist, signs that it is peeking at all. cases just2000 new governments are not allowing people to travel.
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in an effort to stem the spread, in the past week. new measures will going to place they are keeping their borders midnight tonight. face mask will be compulsory. closed and creating bubbles so maybe you could travel between melbourne, that city is still australia and new zealand but under stage three. you cannot travel or it is people can only leave their difficult to travel outside that house for food and a six trolls region. the united states is limiting -- food and essentials. travel to canada and mexico. they came at a place two weeks ago. as possible that if there will be a positive impact, we will europe is traveling within its see that. borders. we are thinking it will take five years at least for with an updateen international travel to come back to 2019 levels. from sydney. if you think about the tsa in ubs is gearing up for more buybacks for the uncertainty the united states processing 2.5 caused by the pandemic. the ceo spoke to bloomberg about million people a day during the summer months and now they are his global outlook and the market impact of the coronavirus 700,000, thatut vaccine. , 70% isusiness is about 60% more than i thought we would be at at this current defective based on economic time. i thought we would be around contractions in the next few 400,000 a day. recovery,and with the i think we will be at a million by the end of the year. the reason i bring up those
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to certain extent that we will 2021 andwdown in numbers, the 2.5 million that travel to the united states day coming into 2022. last year, i would say 60% were -- is ais is a fear a combination of business travelers and international severe recession and one we have travelers. right off the bat, you are to put into our model. the narrative have shifted. looking at knowability to get a million passengers a day. in australia, it is slightly alpha forine deliver worse because the government is limiting the number of people markets in the second half, the per day that can travel into the country. dislocation we have seen in the this virus is apparently -- it first half, could this vaccine really change the v narrative? is hanging on and it does not >> the vaccine could give a want to let go. better hope in my point of view obviously, you have the virus under control there and you do at least for, you know, the near not want to see new cases again so the element would be keep term, another short term. a short-term, maybe there is a symptomtic may be a little bit of rebound, but a lot is priced. that will not be impactful and the next 12 months in most and keep the border safe. cases. after this reality people really want to go places.
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i feel like i have nothing to crisis is many companies will be look forward to and obviously, able to make it and go through that is not true. and be stronger or will be well-positioned positioned for hopefully, we will be back in the future. the ones that are really struggling before the crisis the air sooner than five years will have a hard time to time. recover. this is where you will see a helane becker, senior research second leg of the economic n.alyst at cowe consequences of the crisis being played out. if you are away from your wewith that scenario, are screen, you can always find stories on bloomberg radio. underpricing the level of the fall will come globally? >> that remains to be seen, but it is fair to say that markets ♪ remain quite complacent, i would say. know,is not a lot of, you if you look at markets, or credit, that were a good investment. [inaudible] if you look at spreads, spreads have come in. not a lot of room for many
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negative surprises going forward. >> jp morgan says as far as a credit markets are concerned, we momentan hallucinogenic in credit markets. does that chime for you and your opinion? >> it is not very surprising. the amount of liquidity year-round is driving this kind of situation. to has to really continue look at that and not concentrate on any kind of asset class, or underlying -- >> do you still think there is mileage in credit though? maybe therereas, are, but as i said before, the name of a-game is diversification, and taking some liquidity risk on certain kinds of investments. ceo sergio ermotti.
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parent has fears of user growth outweighed a jump in second-quarter revenue. incomes were at 17% as users relied on the app to spread >> let's get a quick check of information about the coronavirus peer however, active daily numbers of 238 million the business headlines. the troubled 737 max seems they were behind snap-on shown step closer to service. forecast. shares have close our regular the announcement indicates the session your records, but fell on that earnings news. faa is happy with current amazon set a new record in the redesigns and the plane may be second quarter with rising able to return to the air in the next few months. antitrust scrutiny in washington. chinese ride-hailer is said to 10% from the same a be preparing for a listing in year ago and slightly higher hong kong. the move is driven by investors from the march quarter. looking to cash out. amazon and other big tech rivals .t would be a major development are under investigation for abusing power to stifle competition as the coronavirus the ceo has always said it is boosts demand. interviewnext, our cash rich. we will have plenty more ahead on daybreak asia. this is bloomberg. with the chief scientist of china's largest meal delivery ♪
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platform on data privacy in the businesses are starting to bounce back. future of robot delivery careers. this is bloomberg. ♪
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haidi: a very good morning. i am haidi stroud-watts in sydney. we are counting down to asia's major market open. shery: welcome to "daybreak asia ." asian stocks look set for a decline this week after a mixed session on wall street. investors await clarity on virus stimulus programs. global infections approach 15 million with death topping 610,000. president
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