tv Bloomberg Daybreak Asia Bloomberg July 30, 2020 7:00pm-9:00pm EDT
haidi: good morning. i am haidi stroud-watts in sydney. we are counting down to asia's major market opens. shery: i am shery ahn in new york. welcome to "daybreak asia." amazon, apple, alphabet, and facebook light up and already alreadyng --an blistering rally. a much dimmer picture on main street. u.s. gdp contracts by almost
33%. jobless claims rise for a second week with 17 million filing for benefits. international condemnation of hong kong's decision to bar a dozen pro-democracy candidates from upcoming elections as china's new security law -- breaking news out of south korea. we are getting june industrial production numbers and they are a strong beat for the month on month numbers for june, a growth of 7.2%. the estimate was for growth of around 2%. it is also coming after the previous number was revised downward, so it's a bigger beat than expected. the year on year number still in contraction but only up .5 percent. the expectation was for a plunge of 5%. the previous number was revised downward. we have seen a little bit more optimism. manufacturers confidence in south korea rising. we have seen export declines starting to ease.
chinese demand rising, not to mention demand in the chip industry as well so the month on month number really a pop up 7.2% growth, haidi. today would be an interesting litmus test for asian markets as to whether they were more driven by the macro headwinds facing the u.s. economy. that horrible contraction in economic growth in the reading we got or whether there is upside to go when it comes to the tech driven rally. really knocking it out of the ark for the numbers reported couple of hours ago. we are seeing upside when it comes to s&p active futures. trading up by .5%. the chicago nikkei traded futures up by .2%. we have jobless numbers coming out later this hour as well. dollar-yen holding at 104 at the moment. new york crude staging a bit of a recovery after we had the decline on the back of that gdp reading on concerns that the
american consumer and the american employee will continue to languish and that will weigh into demand for crude. shery. right, and as you mentioned, big tech showing that investment enthusiasm for their shares may be justified. apple, amazon, alphabet, and facebook all beat estimates and earnings released after hours. shares of all four rising in extended trade. emily chang spoke to both tim cook and ruth. let's start with apple. crushing estimates. what did tim cook say to you? emily: right. a record june quarter. he talked about records in almost every product category and almost every geographic area, which is certainly impressive given the environmental conditions we are facing with the pandemic. thelso talked about how pandemic specifically impacted the products. because ofelps sales
the work from home trend, remote learning. in fact, those categories did better than they even expected. likely hurt the iphone and wearables as well as advertising and applecare products. we did the iphone sales flat year-over-year so it did not do as well as the other product categories but still far and away beat expectations. in terms of what he is looking at for the current quarter given the resurgence of the virus in the united states and around the world, he talked about how 25% of apple stores are now closed impactand how that will the results. he says the pandemic will weigh on the results primarily on the iphone and wearables in the products business. they are not giving guidance for the quarter because of uncertainty and they did not give guidance for last quarter because of the uncertainty. he told me they are thinking about potentially not giving
forecasts at all in the future. sales for each individual product, a couple of years ago. about whether a forecast is the right thing to do. that would certainly be interesting if apple stopped giving the guidance for the current quarter on a regular basis. is there uncertainty when it comes to the production side as well with a delay being signaled for the new iphone? emily: that is a big deal. tim cook saying that the coming iphones, which are normally unveiled in september, that those will be delayed a few weeks in part due to supply issues, so that pushes us to sometime in october. we are expecting several different models of the iphone to be unveiled and it will certainly be interesting to see and to be watching how supply and production are impacted over the next weeks and months. our colleague is always on top
of what is happening in the supply chain. clearly, this is still a company did drives sales, but we see a huge increase in services revenue. obviously, what is going to the app store, continuing to add to apple's bottom line, and even though the pandemic potentially hurt sales of iphones and wearables, he talked about how air pods, apple watch sales, they have picked up because of the work from home stay-at-home trends. shery: you also spoke to the cfo of alphabet. they did pretty well as well. what did she have to say? emily: alphabet beating on estimates even though we are in the middle of an economic crisis in a massive contraction in the ad business. we still saw alphabet leading by $1 billion on the top line. alphabet cfo -- told me that what they are seeing in the results is very much reflective of what is going on in the broader economy. cautiouslyey are
encouraged by their performance, but they do see this as an ongoing, fragile macroeconomic environment. we really pushed her to try and give some more color on her outlook, and she said we cannot predict the future, but we do continue to believe this is a fragile macroenvironment, and also, you know, it is not just the economic crisis that these companies have to worry about. as we talked about yesterday, that big antitrust hearing in washington, these companies, alphabet, amazon, apple, and facebook, all have to worry about potential future regulation. they are in the crosshairs of lawmakers in the united dates. there are various invested -- united states. there are various investigations around the world. we will have to see how that plays out as well. haidi: emily chang, our bloomberg technology host, on what is an unprecedented day for big tech earnings. we will get more perspective on that. the president and chief analyst
will be with us a little bit later on. we have breaking news crossing the bloomberg on softbank, to buy backup to 12.3% of their shares. softbank shares really climbing back to new highs. this has been partly driven by the number of share buybacks taken place as well as earnings expectations and a bit more optimism going forward for the company. softbank up just about 23% on a one-year basis. coming up next, analysis of china's forthcoming pmi data with state street macro strategist emily weiss. the latest jobs numbers, industrial production data out of japan. we will be breaking those down when they come out in the next half hour. this is bloomberg. ♪
karina: you are watching "daybreak asia." i am karina mitchell with the first word headlines. global coronavirus cases have gone from 60 million to passing the 70 million mark. 670,000 people have died. florida reported a record number of deaths for a third straight day while arizona reported its most fatalities. california had its second deadliest day with the state's infections at .5 million. there was better news in texas as hospitalizations dropped for a ninth straight day. u.k.t 10,000 people in the have been given an experimental covid vaccine from the university of oxford and astrazeneca, moderna, and pfizer biotech have their late age bio trials this week. germany saw its highest number of cases in six weeks with almost 1000 new infections.
germany gdp slumped by the most in 50 years, contracting more than 10% in the second quarter. but tokyo's governor says she will not rule out imposing a state of emergency as covid cases continue to rise. restaurants, bars, and karaoke stores to close early as we head into the weekend area tokyo reported a record 350 seven infections on thursday. japan is also allowing some foreign residents to return after months of splitting families. city,lia's second-largest melbourne, is entering its fourth weekend of a lockdown amid questions over whether this strategy is working. victoria reported a record 723 cases on thursday. the state of england has banned visitors from victoria and will do the same come saturday. amid divergent strategies between the states and a population getting inpatient. global news, 24 hours a day, on air and on bloomberg quicktake, powered by more than 2700 journalists and analysts in more than 120 countries.
i am karina mitchell. this is bloomberg. haidi come over to you. haidi: -- haidi, over to you. haidi: xi jinping is calling for a great approach on reforms to help escape what he calls a complicated and grave economic condition. speaking at a politburo meeting on economic policy, he called for monetary and fiscal policy to be more targeted. joining us now for some insight is emily weiss. great to have you. we have seen eerie stability when it comes to the chinese yuan. the latest bubble, but certainly, exuberant rise in the equity markets in china, well documented as well. does this latest policy initiative just tell us that china is going to continue to manage their economy well and manage it out of the pandemic slowdown? emily: there is certainly an element of that here. china has been proactive in terms of their policy stance.
we have seen globally, bet this point, emerging asia continues to be one of the brightest spots in our global recovery outlook and we have seen that most exempt of five in china, in the data we have seen. later on, we are expected to have the manufacturing and nonmanufacturing pmi indices showing this general stabilization after the massive economic contraction. certainly, we expect these initiatives on both the monetary and fiscal front are having that coordinated easing of policy and will be helpful in further continuing on this economic recovery that is stemming from china. even though china continues to have outbreaks of the virus across various parts of the country, travel restrictions are still in play. is it really the best place to come out of this given the strong domestic market? emily: strong domestic market certainly helps and that has been a bedrock, this foundation
they have built in terms of going across this economic recovery. we have also seen that other areas in the region such as hong kong and taiwan are standing out alongside china for having basically been able to reopen shops, people going back to work, returning to office places over the second quarter, so as we saw that move towards generally less government lockdowns and restrictions, we also saw that generally, people's economic mobility was able to increase so folks were going out and doing sort of the normal economic tasks they used to do and stimulating the economy. it does give us a second of pause and has been what you mentioned, which has been the andwing virus cases pop up hotspots that have been part of the norm. i think hong kong stands out as an area that really had, on the metrics we tracked, seemingly reopened to return to normal. it has had to gradually restrict
peoples -- the government stringency's return as well as peoples restrictions on mobility so that is certainly something we are watching as it sort of back ande this these, forth easing policy on the restrictions and lockdowns and travel is something we are going to have to deal with until there is a vaccine. shery: yet as we continue to see the rebound in china, how positive will this be for the economies that are heavily dependent on the chinese economy? we have south korea's industrial production numbers really beating expectations by a lot. numbershe south korea are impressive and it is certainly -- it shows how much of the regional aspect we have seen in terms of stemming from this global recovery in the emerging asia. the next question for me is how much this can continue without a broader base global recovery. the good news on that front is that starting in late june,
early july, we started to see a broader easing of lockdown restrictions and return to economic activity in many major economic spots, including the u.s. and europe, so when you and that to this equation, it certainly provides further fuel to essentially give that end demand that's needed for these processes to be able to filter through to the rest of the global economy. this gtv chart on the bloomberg showing the cross level where the average passes the 200 day moving average. with a softening dollar, how positive will this be for ems? emily: the weaker dollar broadly impacts emerging markets as a positive and in my view, it certainly has room to continue. we have seen that the dollar weakness has an impact on e.m. markets generally with the fx game versus the dollar and also with lower u.s. rates and yields
sending investors abroad on the search for yields. we have seen the weaker dollar tends to support commodities prices. lastly, it makes it easier for countries to deal with their u.s. denominated debt and inflation. the list goes on and on and on. the broadly weaker dollar is adding to this em optimism we are seeing filter through markets at the moment. great to have your time with us. emily weiss there with us. we are getting some breaking news out of australia. what would be the first of its kind anywhere in the world, the treasurer has announced a draft code for social media, online media, facebook, and google, which could mean some sort of revenue sharing model, given that the revenue they generate for news that they would be forced to share that revenue with original publishers, including the likes of news corporation's, for example. the treasurer saying if parties
cannot agree on a price, they would have to go to arbitration. that bargaining for payment is not for public broadcasters, interestingly, saying the code will require platform or negotiate in good faith so it really does beckon the end of the spurs for free news and content being shared on platforms like google and facebook. we have plenty more on that and the other top stories to come. this is bloomberg. ♪
haidi: hong kong authorities have disqualified 12 opposition candidates from running in the september legislative elections. sophie kamaruddin is on the line with more on this and we have speculated for weeks whether this was going to happen. what is the government saying is the reasoning behind this? sophie: government setting the national security law and questioning whether or not these candidates would uphold the basic law of hong kong. this move comes about two weeks after the opposition camp held a primary scenario.
its goal of winning more than 35 seats in the election may be in jeopardy with these 12 candidates banned from seeking office. the party saw the most disqualifications. that is one of four sitting lawmakers and a member of the party. he has been banned along with counselors and for activists from the local resistance camp. here is what he had to say about the government's vision. have a listen. >> when the national security law was passed, i said that one country, two systems is finished. make no mistake about it. i think today, we are seeing the relentlessthe isression that this regime passing. emily: following this move -- sophie: following this move by authorities, mortise qualifications could be happening with redding officers
to decide on 21 other hopefuls amid concerns that the process is a political review. this is not the first time candidates have been barred from elections in hong kong. in the past, we saw that happen in 2016, 2018, and 2019. the likelihood of elections being delayed as well given the virus situation? reportedlyrie lam is to meet with her defective cabinet again after the nomination period closes this friday. pro establishment figures push for the vote to be delayed citing the rising cases as a concern. under the law, the chief executive can decide to postpone the election under certain circumstances and if delayed, the vote must be held within 14 days of the original date. there's also speculation that extendlam may seek to the term for lawmakers past september. overall, with this week and the decisions that have been made,
they come hours after we saw hong kong police arrest four foreign members of a pro-independence group. this raises concerns around freedom of speech in the city as well. kamaruddin in hong kong. stephen engle delves deep into all the issues around the national security law. in the second part of our series, hong kong on edge. here is a preview. >> i honestly feel that at the end of the day, at the moment, we are on an airplane with a lot of turbulence. everyone is waiting for the plane to land. in most places, the plane lands safely. this is noteel that going to crash because china needs hong kong. they need an open hong kong. that is not going to change the mode. they just want to keep it safe, make it stronger. >> beijing surely does not want a summer pro-democracy camp. before the passage of the
national security law, democrat lawmakers have been accused of using disruptive and filibustering tactics. playing cards, similar to those the u.s. government but out in iraq during the second gulf war, have circulated here, singling out the faces of pro-democracy advocates, including the human rights lawyer, albert. the ace of hearts. >> there will be a lot of scaring tactics. many people are being scared away. withoutt to defeat you using any force or even without waiting anymore. that is the way the chinese play the game. >> if i sit here and say no, i will never be arrested. emily now, were you born yesterday? you lived under communist rule. i have never said that. even in 1997. neither did i predict that i would be arrested tomorrow.
we live under chinese rule. happens, thatthat would not surprise me. that is the way they behave to their own people. but we will stay and fight. >> i don't think i'm going to leave even though i know i am risking being put into jail. because you know, if i become , all the other people will become very scared. and then the whole community will be spiteful. >> we need to fight until the last minute. the national security law was implemented in hong kong, this was legal. after, it might be illegal. not only arresting me, but arresting you. indeeddom of speech is limited by this new law, but it is mainly the freedom to
advocate hong kong independence and the freedom to advocate overthrowing the chinese communist party. somemust admit there's limitations to freedom of speech. >> is freedom of the press under threat? it's suppression, subversion, or terrorist activities. >> do people need to worry about what they post on social media? don't think there is an obligation. is, if you have no intention to carry out subversion and terrorist cts, what have you to fear about? haidi: it is a one-hour special which premieres at noon in hong
let's talk data. only xfinity mobile lets you switch up your wireless data whenever. i accept. 5g, everybody is talking about it. how do i get it? everyone gets 5g with our new data options at no extra cost. that's good. next item, corner offices for everyone. we just have to make more corners in this building. chad? -your wireless, your rules. only with xfinity mobile. now that's simple, easy, awesome. switch to xfinity mobile and save up to four hundred dollars a year on your wireless bill. plus, get two hundred dollars off when you buy an eligible phone. more voluminous hair instantly. all it takes is just one session at hairclub. introducing xtrands. xtrands adds hundreds or even thousands of hair strands to your existing hair at the root. they're personalized to match your own natural hair color
and texture, so they'll blend right in for a natural, effortless look. call in the next five minutes and when you buy 500 strands, you get 500 strands free. call right now. (upbeat music) >> we have labor market data coming out on japan crossing the bloomberg. the jobless rate deteriorating further from them a reading in june. that felt a 2.8% to improving from that may reading which was really quite a broad deterioration that we saw, but going up to 2.8% from the previous 2.9% still. that was not the recovery economists were looking for. they have been looking at an improvement above 3% to 3.1%. but is below consensus still a little bit of an improvement from the 2.9% that we had there.
jock to applicant ratio coming in at 1.1 one. survey expecting 1.15. also a little bit lower than the 1.2% that was expected. when it comes to the headline unemployment rate, 2.8% is what we got. we had expected a number at 3.1% so certainly better than what it economists have been broadly expecting and also a little bit lower from the previous month of may, which was really showing broader deterioration in the labor market. the jump in the jobless rate was worse than expectations. however, this does potentially reflect that we have the japanese economy slowly coming back online after the state of emergency there as well. shery: let's get a quick check of the first word headlines. democrat and republican lawmakers have rejected president trump's suggestion of delaying the november 3 election until after the pandemic eases. trump tweeted it would help to avoid mail-in voting fraud, making the unsubstantiated claim
that november would be the most inaccurate and fraudulent election in history. trump does not have the power to delay an election and would need congressional approval. the hong kong government has denied attacking free speech after banning a dozen candidates from legislative council election scheduled for september. the decision came one day after police arrested four youths over social media posts which they say violates a new security law imposed by beijing. candidates calls it a sign of relentless oppression from china. taiwanthe leader who led from dictatorship to democracy in the 1990's has died. the former president passed away in hospital thursday, where he had been for almost six months after suffering heart failure. he was taiwan's first nativeborn president. he focused on breaking away from the one china legacy, solidifying the island's
separate status from mainland china and earning the wrath of beijing, who called him the center of 10,000 years. he was 97. haidi: the former minneapolis thepresident said that second-quarter gdp drop that was registered was not that surprising and the bad news is covid-19 has come back when cases are rising and if it cannot get under control. there will be a sluggish economy. she spoke with bloomberg's -- >> the numbers were eye opening. translates into a 10% quarter to quarter decline in real gdp. with that said, i don't think the number was that surprising. i think that given the actions that had to be taken in the second quarter to deal with the virus and the slow pace of opening up, i think we expected this.
i think the bad news, unfortunately, is that the virus with increasing cases in the united states over the last month, and as chairman jay powell for sized in his remarks yesterday, every economy will have the course of the virus. as long as we cannot get the virus under control, public health or other means, we are going to have a very sluggish economy with high unemployment and slow growth. arebviously, all efforts going towards hitting the virus under control but it's at least going to be a few months before that happens. what happens now that these extra unemployment benefits are going away and it may be temporary, it may be a few months. there will be -- they will be dropped substantially. how much more devastation will ck on the economy?
peopleink a number of lost jobs through no fault of their own. benefits isthese going to leave them in a very harmful situation. then we get to the macroeconomy implications and you know, you see two kinds of problems. one is those people, without that money, are not going to be spending as much. those who are facing the risk of being unemployed, of losing their jobs, are going to be even more worried about that risk because they won't have that kind of support and they will be spending less as well. not having that fiscal policy support is going to be a big drag on the second half of the year. >> the former minneapolis fed president. for an in-depth look at the u.s. gdp numbers, we are joined by
bloomberg economics and policy editor kathleen hays. what were the biggest drivers of this record gdp drop? one for the history books. look at the chart. no matter which number you use, the quarterly number down 10%. or the annualized quarterly number down 32.9%. our bloomberg economics team points out this is unprecedented. if you look at the great recession, from peak to trough, the decline was 4% in gdp in just two months. gdp has dropped more than 10%. this is really something. as we move onto the next really important point for where we go next, consumer spending plunged. 35% in the second quarter. let's move on to our next point now, please. the 33%n two thirds of drop in gdp, and it was largely services spending. what is that?
it is people in hair salons, people who are hit hardest by a shutdown, by a locked down. nobody can buy their haircut online. let's take a look at this chart because it shows this point very clearly. what happened here was that services, health care, restaurants, hotels, airlines, down nearly 44%. that has never, ever happened. the other line you can see, the white line, is goods. goods spending was down 11%. that is a big drop but it compares to the great recession. this is now the big concern. can you get services to come back if people cannot go take those services, buy those services? are you going to fly cross-country? are you going to stay in a hotel? that's the big question. haidi: how critical is the rebound in gdp going to be, particularly when it comes to services picking up and spending
actually getting going again? emily: it's going to be very important because without services getting back to more of a driver, you get the hope that maybe you at least flatten out the u.s. economy, but retail sales, let's take another look. i want to remind everybody what happened. cratered.retail sales in may.eak, down 12% then they came roaring back -- 15% in april. a lot of members here. 15% in april. you can see the white line going down, the redline going down, retail sales coming back in may and june. this created a lot of hope. it was creating hope for the better third quarter, for the second half, but we see now that's of that hope and more of a concern about the second half as the virus cases surge again statesn as hopes for
reopening and getting workers joblesswork, continuing claims. 17 million people have been unemployed for more than four weeks. and again, you have to figure it's because as jay powell said yesterday, when he talked after the fed decision in his press conference, there's a lot of close proximity jobs. in other words, i am a waiter, you are in my restaurant, and i want to serve you food. that is close proximity. in many states, there is outdoor dining, no hope of sitting in a restaurant. he said some of those jobs will not come back for a very long time if at all. if i'm not working, if i don't have a paycheck, how much money will i spend? that goes back to the point about the fiscal spending that is needed about congress being at loggerheads, about republicans wanting now a stopgap bill to extend the $600 a week federal on employment benefits and democrats saying, no way, we are not going to do
it. but again, if you do not get the fiscal relief, if people do not have money to spend, if they are going to be so worried about true at they put all of their money in the bank, that is what will hold back the retail spending we already saw, haiti. if there's no spending, if the spending does not pick up, you have a much less hopeful view for the economy and the second half. haidi: kathleen hays there. aming up next, the fed has diversity problem both on its board of governors and in the broader economy. michelle holder of new york's john jay college of criminal justice shows just how deep it goes. she's up next for our bloomberg equality series. this is bloomberg. ♪
shery: the federal reserve did not mention america's racial economic disparity in its policy statement wednesday, but chairman powell did acknowledge the central bank does not have the tools to solve the persistent gap between black and white unemployment in the country, and that debate rages even as the fed struggles with its own diversity issues. joining us for our weekly bloomberg equality series is michelle holder, assistant professor of economics and new york's john jay college of criminal justice. michelle, great to have you with us. we heard from chair powell,
saying the tight labor market really does a lot of good things for minorities but that usually takes almost a decade to achieve. how devastating has the pandemic been on minorities so far? michelle: thank you for having me. it has been pretty devastating. the worst downturn since the great depression, so as you might imagine, even during economically prosperous times, african-americans, latin xs, there unemployment was always higher than white americans, but given this pandemic and the economic fallout there of, it has been rightdifficult for -- now. we also heard from him in the economist calling the economics profession a disgrace, that it is racist, sexist, and
elitist. you are in the industry. tell us about what you see in the economic profession in addressing these issues. michelle: you know, it is a turbulent time right now in the united states. and thee, the pandemic unfortunate death of george floyd really has exposed some cleavages in america that we all knew were there. so america is really grappling in a substantial way with issues of race, and i have to say, so is the economics profession. it is dominated by white males, many womenre economists, a lot of economists who are of color, including myself, so there has been i think a deliberate and honest conversation about why is it the fact that this profession has really done a poor job in terms
of representation of people of color and women that i have not seen before and i have been an economist for quite a while now. economic theory is traditionally colorblind, as you say, and recruitment within the top institutions is also colorblind. what does that mean for the data that is produced, the assumptions made, the modeling being done? michelle: i think the issue is that mainstream economic theory treats issues like gender discrimination, racial discrimination, and ethics this nomination as imperfections that should be solved in a perfectly competitive market. issuesblem is that those are not just market anomalies. these are social issues, political issues. in order to solve them, we need to look beyond the normal tools at our disposal in the field.
to solve problems marketcism through the is just not the optimal way to do it. you need government intervention, social movements, and those things, to help move the needle on the issues of biases and determination. there are institutions across the united states that would produce perfectly competent, outstanding candidates for institutions like the fed. you will not have an institution at this point in time say that they are not committed to gender and racial diversification, so is that just, i guess, talk? what do you need to see in terms of the walk? michelle: what you need to see in terms of the walk, explicitly in terms of diversity at the level of the federal reserve, is you need to see active outreach.
the federal reserve typically recruits from elite colleges and universities. yale, harvard, princeton, columbia, new. -- nyu. there are people completing phd's at those institutions. so-called historically black colleges and universities, hispanic serving institutions, these are places where the fed needs to be -- to start establishing pipelines. those institutions produce more phd is an economic than you might find at the elite colleges and universities. that is what the fed has to do. it has to widen its approaches and the networks it is tapping to get hidden talent. haidi: tell us a little bit about the report you produced on the gender wage gap and how that affects the black community in
terms of black women being underpaid. michelle: thank you so much for allowing me a moment to talk about that. it is called the double gap in the bottom line. african-american women's wage gap. it is for an organization called the roosevelt institute. the bottom line is i find, due to -- we are all pretty familiar with the wage gap. the issue is for women of color in the united states. they face a gender wage gap and racial or ethnic wage gap. plenty of studies show that there are penalties associated being aner african-american, latino, native american woman, so when you combine that, what happens is reallyomen suffer disproportionately in terms of their pay. the bottom line is i quantify that the loss to the black community in the united states, $50 billion a year. mind you, this is a conservative
estimate. confirmed by independent analysis. in a time like this, where there is significant economic downturns, those are resources that could have been available to help the black community income to move and to navigate this economic storm. this is lost to african-americans on an annual basis. great to have you with us. so bring insight as to how economically a traumatic this pandemic has been, particularly for women and people of color. joining us inr new york. let's get you a quick check of the latest business flash headlines. apple's latest results crashed forecasts after lockdown consumers snapped up computers to stay connected during the
pandemic. apple also announced a stock split following a more than 80% rise in shares in the past year. 59.7ue for the quarter was billion dollars, up 11% from a year ago. apple did not provide guidance for the next quarter due to the ongoing impact of covid-19. amazon's profit exceeded estimates by a long way despite spending heavily on logistics through the pandemic. second-quarter earnings came in at $10.30 a share. it is a 40% rise on last year for the current quarter. amazon says covid related expenses would be between $2 billion and $5 billion. it grows on this quarter. facebook topped the highest estimates for analysts as it rebounded through disruption to digital advertising. revenue rose 11%. $18.7 billion monthly. active users beat projections.
in the current quarter, facebook is facing and advertising boycott over its handling of harmful content. more than 1000 advertisers have pulled their promotions this month. shery: breaking news out of japan. we are getting industrial production numbers for the month of june. the preliminary numbers seeing a rise of 2.7%. this would be month on month and it will be better than expected. this after four months throughout. the year on year numbers are still in contraction but a smaller contraction than expected of 17.7%. probably helping was the lifting of the state of emergency, and now, japan saying they see a july output to rise more than 11% month on month. onnty more to, on nikola -- "daybreak asia." this is bloomberg. ♪
in thead a very big hit first quarter, and the record contraction in gdp is yet another confirmation of what a big blow the global economy took. >> so much about the headline gdp but it is what it told us about the sheer scale of the stimulus that happened in q2. >> the response is to keep things moving until there's progress on the back seat and we think that is a comparatively balanced case. >> if congress does nothing and
let's those rolloff, you will see a sharp contraction in overall consumer activity, a significant pullback in consumer spending, and you will see a worsening of the overall economic outlook. >> the covert situation worsens dramatically in the u.s., you will see an economic down to ken that situation. that fiscal stimulus which we have incorporated, if that is not coming through, that would definitely lower our expectations for q3 and q4. >> if we do not get fiscal action, we will go backwards. our guests reacting to the u.s. second-quarter gdp report. those grim economic numbers coming out of the u.s., casting doubt on the recovery in oil demand. west texas crude pulling back some of the big losses, but it is poised for a weekly loss. we are seeing at hold about $40 a barrel at this point. our reporter, jessica summers,
joins us for more. this kind of malaise over u.s. economic activity, the strength of the u.s. consumer, really casting doubt over how resilient a demand-side recovery for crude can be. that is exactly right. i would like to point out that oil has been traded in a narrow band. it is really because of the virus keeping demands quite weak. drivers are on the road during the usually very active summer driving season. it does not bode very well for the price of oil. of course today, with the data showing the u.s. economy having its sharpest contraction on record. that further amplifies this weak economic environment we are still living in. shery: this coming at a time when opec-plus is getting ready to unleash crude back into the market. that is a major problem and concern for traders and investors. also with oil holding mere three
dollars a barrel, it is enabling many shale producers to ramp up, turn the tap back on, and it expects to restore u.s. production by september. others like continental, also planning to restore some loss output this month. we problem is, you know, if are going to see a new wave of u.s. shale supply, onto the market, the same time that opec eases its cuts, it looks like we are going to see a very oversupplied market come fall. jessica summers in new york. coming up on the next hour of daybreak asia, a pair of bloomberg exclusives. the hong kong secretary for commerce and economic involvement addresses the escalating political tensions. tourismon in travel and in the face of the pandemic. the market open is next. this is bloomberg. ♪
secretary for commerce this hour. we assess the damage for hotel sectors caused by the global pandemic. mandarin oriental group ceo joins us exclusively in 40 minutes. shery: japan, south korea, australia getting online. we are seeing six sessions of losses for the nikkei. this would be the loses -- longest losing streak since may of last year. jobless rate numbers better than expected. still a lot of pessimism in japan. we continue to see strength in the japanese yen, which has briefly halted a five-day game. it is gaining ground at the moment. below the 105 level against the u.s. dollar. a few companies reporting earnings today, including decatur. take a look at what south korea is doing with the cost beginning 6/10 of 1%. industrial production numbers
rose much more than expected with a gain of more than 7% month on month. we've seen volatility on the korean won all week. they reversed gains after rising to the strongest level in more than four months. the korean won strengthening against the u.s. dollar even further. we have earnings out from saying some -- samsung as well. for more on the market, let's go to mliv -- let's get a quick check of australia as well before we go to our mliv check. haidi: i jumped in because we do have the whisper numbers in terms of the coronavirus cases out of victoria, which we have been watching closely given the record number we had yesterday. still not a great number of new expections -- infections.
we will be watching for that. extended lockdown being put in place with tougher restrictions. conversations were had between the prime and asked her and victorian premier overnight. we are looking at downside when it comes to trading. the aussie dollar surging. a pickup when it comes to u.s. futures. really blowout season of earnings for the big for tech giants. shery: now let's go to mark cudmore in singapore. great to have you with us. really blowout earnings for the big four when it comes to tech giants. how will that impact asia now? mark: it will be great for asia. it will be particularly important for tech names. all the big four names beat earnings estimates. it's a really positive sentiment driver. particularly for apple, which
has a large supply chain in angel, it's a positive message. we will see korea and taiwan benefit from this. goodwill into the asian morning. we've had good data in from japan and korea. it looks like a positive start to the day for asia. haidi: the tech surge aside, we are watching out for china pmi. japan jobless. how much does that way in terms of prospects for a regional recovery? mark: we are having a debate about how the china pmi will be interpreted. they are expected to be in expansion territory again. china is the forefront of this recovery, the forefront of global growth in 2020. the picture in asia is much better than elsewhere. have done a better job of handling the pandemic. it will emphasize the positives for asia.
the counterargument is, that has been well-known for a couple of months. it is priced. if we get another strong set of prints from china, it is less likely we get more aggressive support from the chinese government. we won't necessarily get an extra booth -- boost from good data today. .hery: markup of follow more on the story, the reaction to those pmi numbers out of china, and our markets live blog on the bloomberg. you can get a market rundown in one click. there's ongoing commentary and analysis from bloomberg's expert editors on your investments at any given point during the day. ahead, mandarin oriental group ceo joins us later on to discuss when they receive turn to luxury travel. what they will do to continue weathering the crisis. plus, what comes next for hong kong's record -- economy.
♪ anp capital shares are on the move, sliding the most in 18 weeks. profit will plunge due to rising bad loans. take a look at what softbank is doing in tokyo after announcing share buybacks of 12.3% for ¥1 trillion. 1.3% at the moment. we have some more headlines coming out of china. they reported their third straight day of 100 plus virus
cases. 127 neww reporting coronavirus cases for july 30, reporting 123 local virus transmissions. 112 in shenzhen. we continue to see worse flareups worsening. let's get to the first word headlines. we have much more on the pandemic. global cases have passed the 17 million mark, 670,000 people have died. florida reported a record number of deaths for a third straight day. arizona reported its most fatalities. california had its second deadliest day for the states infections at around half a million. better news in texas as hospitalizations dropped from nine straight day. -- for a ninth straight day. 10,000 people in the u.k. have
been given an experimental covid vaccine. theira and pfizer began late stage trials earlier this week. germany saw its highest number of cases in about six weeks with almost 1000 new infections. germany's gdp slumped by the most in 50 years, contracting more than 10% in the second quarter. haidi: tokyo's governor says she a state ofimpose emergency as covid cases continue to rise. she's asking bars, restaurants, and karaoke stores to close early as we head into the weekend. tokyo reported a record 367 infections on thursday. japan is allowing some foreign residents to return after months of splitting families. the gates will open for some next week. hong kong is facing its worst wave of coronavirus.
policymakers are facing difficult decisions on how to control the spread of the virus whilst also balancing the economic cost. dining in restaurants has been reversed. other measures remain unclear. joining us now is the hong kong secretary for commerce and economic development. wonderful to have you with us. thank you for your time. is it confusing and inconsistent , the changes within a matter of days that we've seen when it comes to restrictions in hong kong? that we needflects a humble and flexible policy in tackling this very difficult pandemic situation. by and large, hong kong has been trying hard to contain the damage. so far, the case number was double that of march and april. it's a containable number so
far, about 3000 cases. ways day, we need to find to tackle it. there's no quick fix. there's no magic wand. except for social distancing, medical care, and strong compliance by the community. we have to work with the community a lot. shery: there's no quick fix. that makes the criticism over the reversal that came within two days of the decision to ban dining and activities from happening even more curious. do you blame the general public and businesses for being concerned and losing confidence in the policy direction the government is taking? edward: certainly not. this is the new experience to every government. look around the world. different places are trying different measures. megacities have a complete lockdown or a curfew. hong kong has kept the city
running. some people work from home, some go back to offices we do need the chileans with our social distancing policy. in the most recent resurgence of some cases, it has been detected that some people contracted it from dining out at restaurants. peoples contact in places of eating. we are struggling. hong kong is a complex city. people dine out frequently. it's a hard decision. any public policy will have to be based on science, which we give tremendous respect to. at the same time, it has to be acceptable with joined compliance from the public. every day, we are adjusting
that. humble and flexible. haidi: we saw those awful retail sales numbers again. you have a strong reliance on chinese mainland choppers. is there a need for hong kong to diversify? how would you go about to offset this decline? edward: if you look at the pie chart of hong kong's economic composition, one would have a better understanding that in addition to mainland tourists, the hong kong economy is trading and logistics. followed by financial services, 19%. professional services, 50%. these three makeup alliance share -- the lions share of the economy. torism retail comes contribute in the single digits.
at the moment, when there's a travel ban across the world, tourists are down to zero. we can't count on businesses to boost our economy. remainsrnal economy ongoing and robust. robust andervices is rich. recent economic data , our second quarter. gdp has been down by 9%. that the recession we have not seen for decades. the first quarter was 9.1%. it compares reasonably with 12.6%. the u.s. caused a lot of alarm. 32.9%. jobs are suffering. we have an unemployment rate of 6.2%. trade, the second
quarter is interesting. from-.7% to -2.1%. that's what we are having now. shery: those bright spots you mentioned, how long will they last when there's political uncertainty? especially with the arrest of student activists. the disqualification of candidates for the elections. as we continue to see repercussions coming from international measures against hong kong, including the removal of the special training step -- trading status for the city. edward: a couple of things. the legislative council election. it's part of our law to require people to be qualified. we are doing it according to the existing legislation governing the electoral arrangement. the globaled about tension and focus on hong kong
arising from u.s. china tension and the introduction of our national security law. we explained why this legislation is needed, in the same way as any other jurisdiction. we've had a constitutional vacuum. about talked international changes in hong kong, there would be a lot of questions and some more a whether this new law would change the operating environment. a lot of business community leaders were saying, not long ago, they were worrying about street violence, the very damaging disturbances hurting the economy. with the introduction of the national security law, we are seeing a return of economic and social stability. we are struggling.
we are struggling like the world is struggling. in our case, trying to restore confidence and understanding. at the same time, fighting this global pandemic. we need to win this battle. we need to win the covid-19 more. nothing can be talked about in terms of economic recovery. i think the whole world will need to recognize that the enemy is the virus, not china. shery: how will you deal with the economic fallout? given that you are only seeing measures against hong kong from the u.s., also tech giants not wanting to have anything to do with data requests from the hong kong government. are you going to end up being more isolated from the world? it was that connection with the rest of the world that kept hong kong special as a financial hub. edward: i think our special status isd business
not something granted by a single trading partner. we are a who member. this is given to us by our constitution. it was this current global geopolitical tension. there are a group of countries that are trying to adjust their policy towards hong kong, claiming that they do not training -- treat hong kong differently than the mainland. that's in the details. the u.s. is taking away trade facilitation, like an exception for some of the creases. hong kong is essentially a financial trading and evidential center. -- navigational center. with companies using hong kong as a home base. they will see this from their own angle. whether hong kong will be a very will -- in doing
business. fax speak longer than fear. since april, we are seeing a net inflow of capital, almost $180 billion, representing where the money goes. we have a job to do to explain to our international audience as well as the businessman in hong kong. major multinational corporation asking their local representatives in hong kong what is the actual situation on the ground, how the business is being affected. you are telling us that you have not seen any evidence of capital outflows. in fact, you are seeing capital inflows. what about the brain drain? have you seen evidence of
immigration out of hong kong? will that be a concern? edward: i don't see that happening. hong kong is a free city. both are local and overseas people do come and go. in the last two decades, we've seen a net inflow of a lot of in thed talent, professional business, in the financial market, in the tech industry. it's a global market. hong kong competes not by locking down the boundary. we have the doors open, inviting people to come. , aparticular for hong kong free flow of capital, talent. they are opening competitive markets. that will remain urgently the case for hong kong. reasona major region -- why people keep coming to hong kong. shery: what is the support that
you will be providing when it comes to the services and retail industries? we mentioned horrible retail figures. there's no catalyst for improvement. what do you see as being the furthest support that the government can use? edward: currently, the hardest are in retail, tourism, support in three ways. one is a direct subsidy given to the sector. we've been providing direct subsidies to company -- companies operating in the retail industry. they are good read -- getting a direct subsidy for the trade they are operating. secondly, there was of a -- very robust support system. dishing out almost 40 billion hong kong dollars. it is there to help companies to keep running, at the same time keeping jobs for employees.
so far, that explains why the employment rate has been staying within the 6.2 figure. least not too uncomfortable. we have to prepare for the long-term battle. to ease theanies cash flow. 300 billionto economic how it -- package, we have 120 billion hong kong dollars loan package, including 100% guarantees for smes. out almost half of that money. getting very low interest loans to ease the cash flow. we need to review the situation. it all depends on how the world is handling the whole epidemic
situation. shery: thank you very much for your time today. really appreciate it. the hong kong secretary for commerce and economic development. stephen engle delves into all of the issues around the national security law in the second part of our series, hong kong on edge. here's a preview. >> i honestly feel that at the end of the day, at the moment, we are on an airplane with a lot of turbulence. everybody is waiting for the plane to land. in most cases, it lands safely. >> are waiting for it to crash. >> i honestly feel that this airplane is not going to crash. china needs hong kong. they need an open hong kong. they will not change here. they want to keep it safe. they want to make it stronger. >> beijing doesn't want a stronger pro-democracy camp. before the passage of the national security law, democrat lawmakers had been accused of
using disruptive and filibustering tactics while fostering anti-china sentiment. playing cards, selected those the u.s. government put out in a rack during the second gulf war, have circulated here, signaling out the faces of pro-democracy advocates including a human rights lawyer. the ace of hearts. >> there will be a lot of scaring tactics. many people are being scared away. they want to defeat you without , without waging war. it's the way the chinese play the game. >> if i say, no, i will never be arrested. were you born yesterday? you lived under communist rule. how dare you say that? i've never said that. even in 1997. neither did i predict that i would be arrested tomorrow. no. we live under chinese rule.
anything, everything that happens would not surprise us. that's the way they behave to their own people. we will stay and fight. >> idaho -- i don't think i will leave, even the one facing the risk of being put into jail. -- though i'm facing the risk of being put into jail. scared, more'm people will become very scared. the whole community will be frightened. >> i have no problem with hong kong. we need to fight until the last minute. before the national security law was in hong kong, this is legal. after the law implement it in hong kong, this might be illegal. not only arresting me. even arresting you. >> it is limited by this new law. tois mainly the freedom advocate hong kong independence
or the freedom to advocate overthrowing the chinese communist party. admit, there is some limitation of freedom of speech. >> is freedom of the press under threat? >> no. >> no? >> unless they are working in secession, subversion, or terrorist activities. >> do people have to be worried about what they post on social media? what about companies and their employees? you have anhink obligation for what you're -- what criminal offense your staff commits. inyou are not involved carrying out secession, subversion, terrorist acts, what have you to fear about? you can watch that later on friday. that premieres at noon in hong kong.
in the arms. -okay... transfer your service online in a few easy steps. now that's simple, easy, awesome. transfer your service in minutes, making moving with xfinity a breeze. visit xfinity.com/moving today. shery: this is a quick check of the first word headlines. the hong kong government has denied attacking free speech after banning a dozen candidates from the legislative council elections. the decision came a day after police arrested youth over social media posts which they say violate the new security law imposed by beijing. one of those banned candidates called it a sign of relentless oppression from china. the u.s. plunged into recession with second quarter gdp contracting 32.9%, the worst result since the 1940's.
personal spending makes up two thirds of the economy. it fell at a steeper pace. jobless claims have risen for a second week. there are 17 million people filing for ongoing benefits, the most since early may. the leader who led taiwan from dictatorship to democracy in the 1990's has died. the former president away in hospital on thursday where he had been for six months after suffering heart failure. he was taiwan's first nativeborn president. he focused on breaking away from the one china legacy, separating from mainland china, and earning the wrath of beijing who called him the sinner of 10,000 years. he was 97. nasa has launched its most ambitious mars rover mission yet. the perseverance will look for signs of ancient life on the red planet. for the first time, it will return to earth. extracttest ways to
oxygen from the martian air. it will take its 6.5 months to get to mars. touchdown is scheduled for february 18. let's check in on some of the stock movers in tokyo. quarterly profit slumped to the lowest since 2009. heavy equipment giant warns full-year earnings will fall by more than half. panasonic also slumping at the moment after reporting a loss in the fourth quarter and missing full-year estimates. haidi: let's check in on some japanese consumer names. food manufacturers rising the most since 2011 on the back of earnings. ,ujitsu more than doubled shares climbing to a 2001 high. tdk jumping the most since march 24 on its earnings be. also maintaining sales and operating profit targets. i've been test sliding the most
since it top -- october 2008. second-half sales made rob on declining demand for system to testers. we have tighter u.s. regulations on the chinese semiconductor industry. let's take a look at apple supplies. the iphone maker talked revenue estimates, really blew it out of the water. we are seeing downside across the board when it comes to trading in asia. one supplier is off by 4/10 of 1%. when it comes to sony and lg. s k off by close to 2% in the kospi session. joins use tech editor on the line from san francisco to get analysis out of those apple numbers. performance across all the product lines showing the resilience of the stay-at-home trade that has been so popular. edward: -- >> that was really quite a shock, when the numbers
came out. if you look at the iphone revenue, that beat wall street estimates by at least $5 billion and one quarter. that's pretty amazing. -- he said that for something like an ipad or a mac computer, sales of those were really strong. imagine, people are starting to hurt and looking to be shopping or get entertainment or keep in touch with people who they can't see in person. an ipad is great for that. a mac computer is great for that, too. that's what drove the deepest quarter. the iphone release delayed by a few weeks. alistair: that was expected.
we've been writing about that for a few months now. what was unusual was that an apple executive talked about an iphone release coming up in a year. normally, they don't pretend it happens every year. it will be a few weeks. shares, thed at the shares rallied a little bit after that. what's happening there is that investors have some certainty now. it will come out in october rather than september. if you think back to earlier in the year when the pandemic was really disrupting the global supply chain, people were wondering whether apple would be able to launch a new five -- new iphone at all. when you think about that, that's good news. haidi: a banner year out of amazon as well. it justified the push in the investment that they made to be able to stay open when so many other retailers were closed. alistair: that's right.
if you think about the past 20 years, most time has been spent criticizing amazon for losing money. they were spending billions of dollars building warehouses across the world, logistics networks. basically, this physical infrastructure that could support the e-commerce website. now, this is the big test. amazon has had quite a few problems. there has been some controversies. warehouse employees have got sick a lot. they spent heavily again. the sales were through the roof. streetew away wall estimates. decades of investment coming to the for now. shery: alistair barr in san francisco. .ore perspective coming up is the comanager of the scottish mortgage
investment fund and a major holder of well-known u.s. and chinese tech companies including tencent, alibaba, and neil. about the asked him impact of geopolitical tensions and the concerns facing china's big companies. i will describe it as moderately is increasingly concerned. i say that because under their guidance, we have been very much seeing, this is something that has been in trade for approximately two years now. been,in consequence has we no longer spend a lot of time thinking about when the giants eventually clash. plainly, we divided the world up now. we used to think through, where would amazon go against alibaba? what would be the consequences?
now, it's a more limited framework. these companies are even stronger in their domestic environment. add, i talked about this before. i think we should be just as worried about the consequences for the west, particularly for america, as those within china. what we will see is the chinese companies are already thinking of domestic markets as their with all of the ironies around the future of hong kong. that may very well hold. worry that without the challenge of china, with the securityhe coming states, american companies are losing that dynamism.
we're speaking on a day where, for the first time, tencent has a bigger market capitalization than facebook. intelhe progress of without true international challenges. combine that with a lack of immigration that is likely in the future. i'm sorry. we are at least as concerned about the american dilemma as we are about the chinese one. >> is america right, the western security apparatus, right to have this concern? should tiktok a band in america? doesn't compromise -- does it compromise user data to tap into americans? it's fascinating.
it does depend on what happens in the markets. china and america will be fighting for the legions of other countries. plainly, that has become a major issue. it will be fascinating to see how that plays out. notion ofs about this trying to alter how countries see their own future. we are in dangerous times from this point of view. we chatted before about historical analogies. on this one, the best one is the first world war to second world war. after the first world war, those felt under threat decided that repercussions and penalties on germany were the way to go. i don't think that was good for either the french or the germans
or for the rest of the world. we had a more liberal attitude after the second world war. i think that's a better policy. you or says that uri -- i don't like the way china is governed. the way -- turning it into a group -- crusade is a dangerous mechanism. that was jane anderson speaking earlier with bloomberg. , an exclusive interview with the ceo of the mandarin oriental hotel group, discussing the impact of the pandemic and when he sees demand for luxury travel returning. this is bloomberg. ♪
♪ shery: the travel industry has been hard to hit by the pandemic. airlines and hotels have been decimated by international travel being halted. mandarin oriental is not immune. the group reported a loss of $102 million for the first half and said it didn't see a pickup in business until 2021 at the earliest. joining us is the mandarin oriental group ceo. always great having you with us. thank you.
we are seeing a resurgence of infections in hong kong but also in the mainland. how does this affect your view of a recovery next year? the fact that the pandemic is coming back in new ways and various part of the world is a challenge. next year is some way off. i'm very hopeful that during the course of this year, as travel restrictions are gradually lessened where the pandemic abates, we will see a return to luxury travel. it will not be until next year that we really start to see volume returning to a greater extent. shery: where are your hotel occupancy rates in hong kong and on the mainland? james: yes. kong, there's an absolute travel ban out of and into hong kong. that restrains business and
tourists coming here. in the mainland, it's a good indication of the degree to which travel can bounce back. in two or three of our hotels in the mainland. i'm confident that in the absence of a new wave of the pandemic, that can continue. shery: how concerned are you that the political situation in hong kong will continue even after the coronavirus travel restrictions are lifted? that will continue to keep leisure and business travelers away. is clearly kong experiencing a challenging time at the moment. it's not my place to talk on politics. i'm very confident that the people of hong kong will see their way through these challenges. i'm optimistic about the outlook , both from a business and travel perspective and a tourist perspective.
understand that the group is still going ahead with the opening of half a dozen hotels across europe, asia as well. talk me through the logic of going through with this. do you expect there to be demand ? does that demand come from markets similar to china? international travel is still on a nascent recovery path. james: yes. when we get into a post covid era, whenever that might be,
hopefully sometime during the course of next year. we will see luxury leisure travel come back. it's for that reason that i remain confident in the new openings that we have got planned. business travel will also bounce back. perhaps not as quickly and not to the same extent. in the first half, we announced new property in vienna. i'm looking forward to opening .roperties in madrid we have new property is coming through in lucerne and istanbul. confident that we will see business coming back in 2021, assuming that the issues of the pandemic do get managed. shery: what are you doing in terms of cost cutting? james: we've gone through a couple of rounds to control her
corporate costs. we've taken expensive measures and all of our properties in order to reduce the payroll levels. our colleagues have been wonderful in terms of the degree to which they've engaged with us and worked with us to bring down costs, to help with the payroll costs, and the broader costs of the companies to make sure we can manage through this very difficult time. believe we'ved, i brought the cost down to a level which we can manage with the cash resources and committed facilities we have, to see our way through to a time when we can return to profitability. the commitment of colleagues working with us to enable less to see our way through to a battle time. -- better time. haidi: will that be more management program -- projects rather than outright ownership? james: yes.
we have 22 projects under development across the globe. in the americas, in places like hawaii, dallas, europe. i mentioned lucerne reopening. all of those new projects are management contracts. we will continue to own the properties that we do. the proportion of the group assets will aggressively increase. shery: you talk about the quick rebound that you saw in china when cases declined. where are you expecting to see such a trend in the future, around the world? mentioned resort locations. the underlying desire of the consumer to travel remains. i'm sure consumers will come back.
it will come back and resorts and leisure destinations. i do think that business travel will be the slowest to adjust and come back, simply because we have adopted -- adapted to a new normal in terms of our business means of operations. inclinedll feel less to come back to travel quite as rapidly from a business perspective. when i look across our portfolio , i think once the issues of the pandemic are managed, we will see that travel come back very quickly. there's been some concern that one of the worst case is thiss for hotels
idea that this will be a seasonal thing that keeps coming back and an element of social distancing and travel restrictions will need to stay in place. what is the worst case scenario you are looking at in terms of permanent changes to the whole industry? clearly, the continuation of the pandemic is a challenge. we have adapted the way our properties operate. we've reopened them to ensure that high your standards are in place and we look after colleagues and gas to ensure that people can travel to our property safely. the way we been able to adjust our restaurants to social distancing and the flows through the hotels gives us confidence in that respect. i have to believe that we will progressively adapt to the conditions of the pandemic. the long-term issue will not be the covid fire itself -- virus itself.
all adjusting to a greater awareness of health and hygiene conditions, adjusting our lifestyle. property as a luxury will be able to take it vantage of that. people will return to our properties with confidence. always appreciate your time with us. mandarin oriental hotel group ceo joining us there out of hong kong. another big interview coming up in the next hour. his views on the developments on first-half results and here i'll -- how he sees recovery in hong kong markets. this is bloomberg. ♪
softbank said it plans to sell $43 billion in assets to fund repurchases and other activities. shares are up over 150% from a march low. facebook top its highest estimates as it rebounded from the pandemic fuel disruption to digital advertising. monthly active users also be projections at 2.7 billion. facebook is facing an advertising boycott over its handling of misinformation. more than 1000 advertisers have pulled promotions this month. beatnce industry expectations. india's biggest company reported a $1.8 billion process for the quarter ended in june. person onifth richest the bloomberg billionaires
index. $79 billion. shery: we are five minutes away om t china july pmi numbers. take a look at this gtv chart on the bloomberg. nowe seen components entering expansion territory. new orders now above that 50 level. we are expecting stronger expansions in the manufacturing and nonmanufacturing sectors. in early july, there was some loosening and social distancing measures in many major economies. this is expected to support the pmi numbers. there is still a lot of risk out there, including the resurgence of the virus in mainland china. not to mention heavy flooding in central and southern china that may cause some disruptions. in the next hour, we will have more analysis on those pmi numbers out of china with barclays chief china economist. tune into our bloomberg tv cities covering the
♪ >> it is 9:00 a.m. in beijing and shanghai. welcome to "bloomberg markets: china open." i am tom mackenzie. >> and i am david ingles. we are counting up to the open of trade, the last trading session of the week in chinese mainland and here in hong kong. top story today, the economy is on shaky ground. the u.s. gdp shrank by the most on record.