he joins us later on daybreak asia. coming up, we look at one australian company limiting the fallout as cases spike in victoria. we will discuss with our guests, innes willox. this is bloomberg. ♪ you are watching daybreak australia. coronavirus cases in the u.s. rose to more than 3.25 million with almost 56,000 new infections. florida reported the biggest daily rise in any state since the pandemic struck. exceeds records set in new york, california, and texas, although deaths fell over the weekend. global infections now approaching 13 million with fatalities about 555,000. the u.k. to spend almost $900 million on new border infrastructure with brexit now less than six months away. the cabinet insists everything will be in place for the final split, despite london and brussels so far failing to agree to terms. concerns secretary had about the border. show thes in poland presidential election is too close to call with both candidates claiming victory. as a liberal versus a conservative. initial estimates gives both ab

including asia that may not fit the jeffersonian democracy ideal. obviously we don't either at this point. but, when you sharper democratic base, get democracies working together that creates a foundation to bring in others on different issues. when it comes to asia in particular, i think we did the rebalance under the obama biden administration. it was an effective vehicle think for redirecting our time, our energy, and our resources to a part of the world arguably matters more than any other to our future. that entails working with countries that certainly were not fully democratic under the measures you and i would consider. we obviously need to pursue tha that. and hopefully, our model becomes once again attractive and effective at dealing with problems and helping people with their own lives, then there's incentives for countries to democratize themselves. >> let's jump from asia to the middle east. here, i would start by asking there's some discussion the middle east does not matter as much to the united states as it did when we were in import

shery: "daybreak asia welcome to "daybreak asia." i am -- welcome to "daybreak asia." haidi: our top stories this hour, president trump escalates tensions with china. he signs a bill ending america's preferential treatment for hong kong over beijing's security law crackdown. asian stocks are set to advance after wall street enjoyed its biggest rise in more than a week. futures in tokyo, sydney, and hong kong all higher. the u.k. does a u-turn and bans huawei -- the u.k. does a u-turn and bans huawei from its 5g network. shery: breaking news out of south korea. we are getting the unemployment rate for the month of june coming in at 4.3%. now, this is lower than the estimate of 4.5%. the unemployment rate falling from the previous month. we have seen a little bit of strength in the south korean economy with more positivity coming from that ramp up in government job creation efforts. still, we have those negative effects from the pandemic with the hard-hit hospitality and retail sectors continuing to reel. south korea losing jobs. those removed in june from a year earlier

it is a risk on day here in asia. india is expected to be under pressure after posting its best quarter since 2009. there are concerns about poorer economic outlook. there are concerns about the week macro data. arereopening of businesses being weighed against the challenges. they may get a clearer pictures addresses the nation later today. look at where we are. india is open. then sex up by 2/10 of 1% -- of 1%.up by 2/10 nifty up by a 10th of 1%. 21 392. index is at we are looking at the bond market. , providing some support to the bond market of which india's the yield curve steepened in recent weeks. that's right, let's have a look at what we have coming up. hong kong returning to china with a controversial security law. we will look at these developments on the way. this is bloomberg. ♪ haslinda: china's imposition of a security law in hong kong is expected to escalate tensions with the u.s. even further. washington has suspended some of the special trade privileges that hong kong enjoyed. they have put restrict

an associate professor at the australian national university and author of banking on the future of asia and the pacific a very warm welcome to both of you to the program dan a lot of nervous eyes on the yangtze river basin how serious is the situation there . because there's a lack of visual data in describing the actual economic loss we did some rough back of the envelope calculation and it looks like although i'm surface it is very devastating for us to see all those dislocation of people and the damage to houses comparing to the 1908 flood this time is only about 15 percent of the economic loss and about 110th the direct damage to housing so now we have the economic g.d.p. growth for 2020 to be about 1.4 percent with this flood it's about a we would only adjust our g.d.p. forecasts by 0.05 percentage points so the economic loss is actually marginal compared to 20 years ago ok so that slightly encouraging as you said is only the economy side of things but the national emergency level is still only at its 2nd highest isn't it does beijing expect it to get worse because there's still a

we are counting down to asia's major market opens. shery: welcome to "daybreak asia ." to slidekets look set amid fresh u.s.-china tensions and worries about the virus. futures going to declines in tokyo and sydney although hong kong contracts go higher. day traders pile in. it was a rare losing day grace dock that

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 dema

we prefer north asia to the u.s.. we have started to take profit out of business earlier in the last quarter from the highflying tech stocks. we believe pretty much we have given all we could given we have started moving to more cyclical stocks, but we are staying concern on the quality because we are concerned about macro. anna: -- nejra: that is interesting. do you get the sense that in the u.s. the market is on your side with that? or do you feel contrarian? fabiana: i think if you look at the results of the -- the recent results from tech stocks, which have been ok, have technically beaten, the market really seems to have a bit of high flyer tech fatigue. you need more of these stocks to justify the differential in performance and valuations versus the rest of the market. i think the market is starting to feel that highflying tech company fatigue. it will last for a while. coursewe also have of the fed meeting this week. the expectation generally is that we are going to get a commitment to lower for longer. how mu

the book is asia new geopolitic geopolitics. book isk at an important time about the reshaping that is going on across the indo pacific reason. it's also the author of another great book right behind me talks about the end of the age century. misha is why the most prolific i from the region just do it i did set up a google alert for what ever her essays are published. you will get it right away. also hopes of a wonderful podcast that he does with john you on the pacific century. and of course the asian pacific reason as we cso many developments ongoing whether it's from north korea or the latest aggressive actions of the chinese communist party. we could not have a more timely discussion about this vitally important region. and then joining us to facilitate this discussion as a brilliant scholar in her own right doctor nadia shadow is a senior fellow at the hudson institute. and as deputy national security adviser or strategy in the trump administration nadia was instrumental in what i think was the most significant ship since t

walter: let's jump from asia to the middle east. and i guess i would start by asking there has been some discussion that may but the middle east does not matter as much to the united states now as it did times when we were importing oil and kind of seen as the key to everything around the world. as the place in the rise of china, the middle east, written large change in americans foreign policy. antony: i think in short, yes. in house and again, as we are looking at things, already in the obama at biden administration, the so-called asia rebalance asia, that would simply recognition of what we saw it when we consider where our interests were and where the future seen the most emerging from the united states in terms of interest, we were under resourced and asia. and arguably other resource in other areas. i think that remains the case. presumably in the biden administration we would seek more emphasis on indo specific and more on our own hemisphere. as well as i would hope sustained ambition with africa. and contending with the chal

we are counting down to asia's major market opens. shery: welcome to "daybreak asia ." growing concern about a resurgent coronavirus and the implications of a recovery puts pressure on rocks. old is above $1800. oil slips on weak demand. infections continue to rise with local members

in asia seeing record numbers. u.s. cases rose 2%. authorities recorded the most ever cases for a single day since the pandemic began. this park spheres it is spreading into the wider community. the resurgence has affected about 300 people in less than two weeks. india is becoming the focus. the country stands third in the global tally, behind the u.s. and brazil. scandal now has hundreds of millions of dollars being transferred from saudi arabia to the u.k.. global news, 24 hours a day, on air and on quicktake by bloomberg, powered by more than 2700 journalists and analysts in over 120 countries. this is bloomberg. netflix shares are plunging after hours. they released their latest earnings reports after the bell. let's get some analysis. what happened? netflix was supposed to be the great beneficiary of the stay-at-home trend. what exactly went wrong when it came to that decimation and ?ubscriber numbers >> you have to look at it in terms of the overall picture. the overall picture is still not terrible. they got this huge bump in m

coronavirus cases are searching gingsia with -- sur in asia. hong kong had more than 100 new cases on sunday with masks now obligatory in all public areas. infections continue to rise in india after the total to pass one million last week with overall deaths approaching 27,000. they have more than half of total cases. virus cases are again rising in melbourne, prompting a mandatory order to where face masks in the city and surrounding areas. more than 360 new infections were recorded on sunday with two 90'snd a woman in their succumbing to the virus. victorian officials ordering 3 million masks to be delivered in the coming days. ae e.u. remains split on virus rescue package with the netherlands and others under pressure to get in line. we are told nations are arguing over the method of dispersing about $800 billion worth of aid with grants or loans at the center of discussions. the netherlands is being accused of holding -- ransom over the precise wording of the plan. the u.k. may further inflame tensions with china by suspending its extraditi

why asia-pacific looks pretty attractive. where do you see valuations being manageable within asia? >> in hong kong the value is cheap and all of the issues we have had and it stands out on the cheap level. the manageable part is more than japan, china, new zealand if you can't calculate therein, the strength of the resiliency shows although there may be short-term indicators, seems like stretch valuation there is a bit of scope for further improvement, also because these countries are forming a travel bubble. they are opening their borders to one another and it leads to commerce and activities. in the region itself, there is upswing whereas globally there is not. in the region there is that opportunity for further appreciation of the equity. you talk about the opportunities for value in hong kong. the economy is walking a tightrope, the political situation seemingly to unravel. would you investors to make a bet on the future of hong kong by investing? it is interesting how this is playing out in terms of the stock market. the data that is showing there is increased inflow coming fr

i've been told that i was asia's sickest patient. vietnam has had to record a single death from the virus. after 114 days, he left hospital as a celebrity. the vast majority of the country knew about patient 91, which was my moniker. when we went through the lobby and must have been ten deep with people. everyone had their phones out, even doctors and nurses in different words. it was a bit surprising and i wouldn't say overwhelming, but. ijust couldn't believe it. as lockdown eases here in scotland and the uk, do you have a message for people in their approach to the advice and guidelines? i'm a living example of what this virus can do. and how serious. you know, people might grumble about having to put on gloves or social distancing, two metres apart and all this sort of stuff, but do you know, i contracted it and i was under for ten weeks, on life support. it's no laughing matter. it's a very serious thing, and i think people can't be blase about this until we have eradicated it. 0liver burns, bbc news. next — to lebanon where h

let's turn to asia. hong kong and its decision to delay september's election for one year due to the coronavirus. that fuels outrage. joining us with more on this from hong kong is bloomberg stephen engle, bloomberg's chief north asia correspondent. been a chille has in hong kong and the one-month since the national security law from beijing was imposed and that squashed the appetite for protests. there has been real optimism among the pro-democracy camp that those september 6 legislative council elections, there would be wind in the sales of the people who were dissatisfied with this imposition of that national security law, that that would propel the pro-democracy camp to victory. the chief executive has postponed that election for a year, citing the fact that you -- citing the third wave of coronavirus. there was a record number of new cases yesterday. another 121 cases. she says it is not safe to hold such a big election. the pro-democracy camp says we especially when it comes within 24 hours of 12 p

we are talking not just the u.s., but asia. he talked about the fed extending their dollar swat packages. to the former number two at the imf earlier on bloomberg television, and he said that's great for a lot of g7, g8-type countries, but it leaves a big hole for a lot of emerging-market central banks. they need dollar liquidity. he mentioned a country like indonesia. i think the fed is showing this by at least putting out the stimulus, the dollar liquidity, i should say, for the countries , they are signaling to us that the potential for the virus to hit not just the u.s. and other countries is still there, and that's why they are going to be vigilant. rishaad: let's talk about the fiscal side. congress negotiating that stimulus package. republicans and democrats getting nowhere fast. far apart, are they not? kathleen: yes. republicans waited too long to give us a deal, and they are saying we have to work faster. very interesting that president trump, speaking today, said there is no stimulus deal inside, pushes for an extens

still ahead on bloomberg markets: asia, cashless currency. the pboc expanding real-world testing of the -- the digital you want and the implications of intelligence poverty aid and traceable tax collection to dollar sovereignty. the future of chinese money, later this hour. this is bloomberg. ♪ juliette: the dollar is sliding to the lowest it's march last year as investors weigh the diplomatic row between the u.s. and china. our next guest says the greenback is no longer king. >> they are dissipating. in terms of the u.s. exceptionalism, as was broadly referred to, in the sense the interest rate was large, the u.s. outperforming the rest of the world, that is dissipating. there is also concerned about the dollar in terms of the absolute safe haven currency given the state of the virus outbreak in the u.s., so that is putting limits in terms of that phenomenon. i think the u.s. will no longer be as strong going forward. it is also not very crowded on trade so it has room to go. for manufacturing, and some currencies, for instance the euro, w

we are counting down to asia's major market open. >> good evening in new york, i'm shery ahn. record withs to a u.s. stocks higher from signs that the fed will bring a dovish message. topal coronavirus cases 16.3 million as the republicans lay out their $1 trillion plan for the next round of u.s. stimulus. democrats are expected to join the conversation shortly. begins final stage testing of the covid vaccine is the government releases another half a billion in funding for the company. we hear from the ceo later this hour. shery: let's get you to the press conference happening right now. senator mitch mcconnell presenting the republicans $1 trillion plan on stimulus measures for the u.s. economy. you are listening to senator grassley who is taking to the podium to say what these deals will consist of. take a listen. adults, orey: somebody else's dependent. have additional unemployment insurance. that's on top of whatever the different 50 states give. and on top of the economic impact statement i just gave. we want to continue to help the unemployed, but we want to encourage wo

msci asia index down 3/10 of 1%. climbing to the most expensive the weekly drops are due later today. csi 300 expanding its losses, down by more than 2%. china bowing retaliation after the u.s. forced the closure of its consul in. that coming hot over heels of the u.s. accusing to chinese bankers of working with beijing. the hang seng down to 10th of 1%. we have the hsi down about 11% for the year. 3/5 of its members have lost that leads 16% or more in that time. the benchmark bucking the trend of 4/10 of 1%. yesterday's loss has seen record volumes on the latest stocks. helping them outperform the rest of it major global peers. year-to-date with a 43% gain we saw for the hong kong exchanges. we have the aussie currently weakening a tad. 7137. thedollar on the back of budget blowout amounting to $132 billion in 2021. from our treasurer -- we heard from our treasurer who said unemployment peaking at 9.25% in the fourth quarter. right now.lds at 87 0.87%. yields and 10 year bonds down about two basis points right at th

let's speak to our south east asia correspondent, jonathan head. talk us through some of these restrictions that will be brought in injakarta. restrictions that will be brought in in jakarta. there are already restrictions there. they have particular restriction today because is a very muslim holiday at the end of the pilgrimage period. people have not been going to it and it is a time when communities come together and family come together and donate food to the poor. a big mass prayer. very strong guidelines on that. no mass religious festivities are to post a take place in red zones, and the capitaljakarta place in red zones, and the capital jakarta with the population of over 20 million isa population of over 20 million is a clear red zone all across there. i'm the authorities there, my lightest letter to there, my lightest letter to the regional authorities to decide their own penalties and they are imposing fines for people who don't wear a mask in public or do not practice social distancing. the way that things are done in indonesia, this is

counting down to asia's major market open. asia."ome to "daybreak the fed signals more stimulus. jerome powell warns of the worst economic downturn in our lifetime and urges congress to merv -- fiscal spending.

we have the latest from our asia consumer reporter joining us. tell us what these using -- easing measures mean for the casinos and it is a really now i start of some sort of recovery? we can see from the share reaction this is really exciting news for the macau gaming sector, to see the quarantine requirements lifted starting tomorrow. bring it it will not back to the pre-covid level anytime soon. we saw chinese visitors need to apply before entering macau. chinese visitors need to use their visa that will control traffic. this is already a very positive news after months of closures which has caused huge loss for the operator. the casino revenue could recover of thely to 50%, 25% pre-covid levels. it will be accelerated if travel curbs can be lifted too. haslinda: daniela, what are the next milestones we should be looking for in the near future? thing,: so, the next big the actual meaningful thing we are monitoring includes three visassuance of china required to apply. that would mean a rebound. if the ibs can be reissued in the next few weeks,

when you take the biggest single marketing asia-pacific, it is japan. the next is china, then taiwan and korea. relative to that geographic base, we have a decent representation coming from japan. we havease of korea, big companies like samsung, we have dividend growth over the last five years averaging an annual rate of 25% increase. that is a significant number. we are seeing that in japanese stocks, as well. in terms of where we have chosen to put the basket, we have tried to go for big liquid companies. what we identified is global investors generally, they are looking for large market capitalizations. that is something we don't find in japan the same extent as markets like the u.s. there are concerns about a bubble economy in japan. how might that play out? how much of a risk is that? see anth japan, we element of great caution in the way companies are run. if we look at some of the pharmaceutical names in japan, you find the yield is relatively modest. these names are trading at about 2% dividend yield. the dividend coverage is 9.4 times. if you l

as you said, it is about emerging asia engine or a and a preference for emerging asia over other regions within emerging markets that are facing much more challenging virus situations at the moment. overall, still, as we were saying earlier, a little more cautious. it is not a question of trying to chase the rally. more constructive about the medium-term, but i think minimum volatility strategies, having more diverse portfolio, continuing to participate but not -- i think it is still a little early to become overly aggressive in our portfolios as well. anus: we are seeing quite flow of money into part of the justification for the yuan moves this morning, according to the mliv blog, this narrative about the flow of money into foreign bond holdings. sinceggest flow of money 2018. the second quarter of 2018. do you think that that in any way adds to the yuan? the yuan sixpack? esty: for sure. the fact that you are seeing data recover, that the virus seems to be mostly under control, again, you can have hotspots here or there but generally, it appears more or less under control in china and

our senior asia reporter, thank you for that. this is bloomberg. ♪ yousef: you are watching "bloomberg surveillance." let's get you the bluebird first word news again with leigh-ann gerrans. leigh-ann: good morning. wearingrump has backed a mask in certain circumstances, but he doesn't think it should required. previously the president has marked his democratic challenger, joe biden, for wearing a mask when "there is nobody around." after thes come a day surgeon general urged people to wear safe coverings. ? if i were in a group of people and i was close -- and like pres. trump: if i were in a group of people and i was close, i would wear one. if people feel good about it, they should do it. over-ann: i made concerns the u.s. buying up stocks of gilead's remdesivir drug, some countries are seeking to reassure residents. the u.k. says it has enough resident for every nhs payment -- patient who needs it. reportinggermany is the country has adequate supplies. in russia, president vladimir has won a bid to extend his rule in a nati

the gridlock in europe keeps gains in broader asia in check but chinese stocks out performed. the shanghai composite closing more than 3% higher. shares in astrazeneca hit a record high as the giant prepares to release positive news on the covid-19 vaccine and julius bar with a drop in assets under management but a record high net profit and stresses it is well prepared for a challenging second half. >>> european leaders remain deadlock after a drawn out three day summit over the budget and recovery they will resume talks today over how to allocate the money and urging his colleagues to approve the recovery fund, italian prime minister pushed for unity emphasizing that the pandemic has effected the whole block. >> we're going through a stalemate. this looks like it's very complicated. more complicated than expected there's many issues we're discussing and we're not yet able to resolve and i have invited all eu leaders to converge to approve the next generation eu which is a plan for european recovery. >>> over the weekend a lot of negative headlines around the stick point, the

on how the stages of financial gateway into asia and hong kong playing to that status at least i think it's going to be a financial gateway to china i think that's going to change anything that's going to increase but as a financial gateway to asia i think it's losing its status now why would you put money in hong kong instead of say singapore or even places like taipei or other areas in asia now because you don't have the certainty that you used to have financial markets like certainty and predictability and i think that's been kind of removed so i imagine a lot of investors are going to be looking at in that way china seems to be fronting a lot of battles on the economic front right now there's cove it this way and now this is going to end i. you know it's really quite amazing to see that china all of us within the last few months it's had to take on so much a lot of this is where things have been bubbling under the surface for a long time and i think it's now coming home to roost we said since the beginning that this would happen in hong kong it would be like berlin in many ways tha

, we re countries in south east asia, were generally numbers have been low and in some countries like thailand where i am, they have had no cases at all locally for more than two months. indonesia is an outlier, but this has been the president's approach, ever since he was re—elected last year, his entire legitimacy rests on driving the economy forward. for all we are seen restrictive measures announced, the imposition is nothing like as draconian as you are seen in vietnam now, and it seems the indonesian authorities have seeming to be accepting the number of infections in return for sustaining the economy. stay with us on bbc news, still to come... just when you thought it was safe to go into the water — the venice drive—in movie with a difference. cheering and applause. nasa has ordered an investigation after confirmation today that astronauts were cleared to fly while drunk. the last foot patrol in south armagh, once an everyday part of the soldier 's 's lot, drudgery and danger, i'iow 's lot, drudgery and danger, now know more after almost four decades. if one is on 1's own

someone to cooperate with but we even saw under the obama administration there was a pivot to asia so this is been a long. running re analysis of what we're china's going for 40 years analysts felt that the longer we cooperate with china china will become more like us especially once they would join the world trade organization everyone expected that china would actually become more like a democracy once they had more free trade but that hasn't worked out instead we've seen a strengthening of an authoritarian regime that's really we're seeing under especially the covert $1000.00 pandemic it's using this as a way to further its authoritarian agenda so we've seen not just. diplomacy as you mentioned we've seen a pivot from mass diplomacy trying to kind of cover up where the. covert 1000 crisis actually began to wolf diplomacy especially in europe we see this so this is a very different tune we're seeing with china before is very positive agenda both with the u.s. and with europe and other allies across the world but we're seeing much stronger assertiveness throughout the entire world so

a huge asia expansion as well. will the tensions of china with the united states, with europe and scandinavia, will that slow down your asia growth? sigve: no, we don't see that. -- i don't markets, think that is affected by the china-u.s. relations. i have to ask you an american question. i understand dividends are higher in europe and for utilities in scandinavia. i see a gross yield of 5.9% on the bloomberg. with this slow down, due to the pandemic and other challenges, is the dividend at risk? discussionad this with the board about this when the covid situation started back in april. the board decided then to pay out dividends and we will do that this year. the first chance was in may and the second chance will be in october. there is no change to that. [indiscernible] the payouts. when you are looking ahead to what you are going to do next, what lessons have you learned, during this pandemic that you could apply to the business going forward? how much more redundancy are you going to need in the system? what c

and this was since flanked by the organisation and so forth so that's an issue of asia was not. yemen has a problem we don't like salman has a problem but we need to know who's causing that here's the problem with this situation from an american standpoint we here in america over the last year including 2 reports in the new york times and others have almost felt like we are in many ways fighting the war in yemen for your country for the kingdom and that there is an exchange between saudi arabia and the united states that saudi arabia will provide us with oil while we will then provide for their defense and a lot of people are cold aren't so comfortable with that how would you explain that to the millions of people who might watch us here in the united states to make them comfortable with that arrangement. don't need a little oil any more of the united states is has ringback said it fully satisfied its own demand oh boy secondly you are not doing it for the security of saudi arabia are doing it for that age and for the want can you imagine a situation in which iran would instead

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

so from africa to asia was for these sncc activists not a long leap. and other militant african-americans, not just associated with sncc, also using this kind of critique. began to speak out early about the war in vietnam. now, this is not mainstream groups. the reverend king, for example, in 1964 and 1965, is not speaking out against the war in vietnam. he had private reservations, but he did not make public those concerns at this time. these are more, again, radical black activists in the united states. again for the overwhelming majority of american people, like the pacifists, this was a group that could be essentially dismissed. ok, these people are radical. they've got some overarching complaint about u.s. policy. you know, whatever. and like the pacifists, these are not voices that are heard on the "nightly news," they're not reported in the "new york times" or "time" magazine. there's a fairly narrow window of mass media at this point. it's hard to get your voice into those few niches where you can be heard by more than a few hundred thousand pe

coming up in the next hour of daybreak asia, the former u.s. ambassador to china weighs in on what beijing is calling an unprecedented escalation in tensions with the united states. he tells us where the diplomatic ties will go from here. south korea is expected to have slipped into recession in the second quarter. we have those growth numbers in just a couple of minutes. we are breaking them down with angela. what's more to come. this is bloomberg. -- lots more to come. this is bloomberg. ♪ shery: welcome to "daybreak asia." i am shery ahn in new york. haidi: i am haidi stroud-watts in sydney. we are counting down to it has major market opens. u.s.-china ties plummeted -- plummet to new depths. president trump will not rule out closing more diplomatic missions. --al coronavirus cases

does in china and asia more broadly? eric: in asia we're going to continue to invest. you mentioned my role, we're trying to grow our allocation in asia in infrastructure. i think the u.s.-china relationship will create more volatility and create an opportunity for us to lean in. the bigger picture you could end up with something that looks more like a regional economy with asia and then europe. look what just happened with the unification fund in europe, that would have been unthinkable. and you see what happened in 2012 and then in the u.s. you ultimately could have the americas with canada and the u.s. and mexico. but that will take some time. i think the near term as we head into the election is we'll see things increase and certainly more out of beijing and more out of china. that's why, we remain in the camp rates will stay low and that drives our thinking around infrastructure, around asset based finance and real estate credit where we're continuing to grow our franchises. i think what's really important right now and what investors are focusing on is you're see

that is absolutely where asia fits in, especially north asia and europe as well. a better control of the virus, breaking the length between reopening and reinfection allows for faster recovery. to take, investors have in that these tensions between the u.s. and china are a permanent fixture of the economic and investing landscape. they were here last year, they will be here this year, and over the next decade or century. we need to invest through it and asia remains one of the biggest growth opportunities in the covid world and the post covid world. francine: good morning from london. for is a big opportunity you despite this flaring up of tensions between the u.s. and china? gabriela: yes. the way we think about it is it will stay with us for the next decade. when we think about the growth potential in china, we have to factor in that it will have a harder time in its growth path for the next decade than it did the last decade in the decade before that. we do have to knock off some of the growth expectations as a result of these ongoing tensions. to us, that stil

presence in southeast asia and sounds like where does this end. what is that what's the purpose i mean where are we going to stop just process before it starts a war. and then if the war starts where does that end. the scientific studies that they teach by the scientists that predicts that the earth can be made essentially and habitable for nuclear war the scientists have been begging the bomb and straight while they were inside begging but they've made multiple requests to meet with them discuss these predictions because they're peer reviewed studies and they've been turned down over and over again they've been peripherally told that well we don't think the long term environmental consequences or nuclear war are all that important if the immediate effects of nuclear are don't stop it but the long term environmental consequences of nuclear are liable to wipe out the human race in one exchange uclear exchange between the u.s. and china what could be the consequences well let me just give you an example of what one chinese. for 5 megaton warhead wou

welcome to bloomberg markets: asia. janet returning to growth in the second quarter. -- china returning to growth in the second owner. -- quarter. haslinda: retail sales were a miss falling, almost 2% last month. consumer stocks are selling off. down sharply in shanghai. rishaad: a little retail therapy at reliance. turning attention to a more traditional unit after raising billions. we will ask with the plan is now. it isda: it looks like risk-off sentiment in the markets right now given the disappointing retail numbers out of china. even though gdp came in better than expected. we have the h index currently down by .9%. beginning momentum in terms of losses. 37% asian stocks from the year to date low. s&p futures pointing to a lower open. swept forhy of being the year as much as 31% to before coming back with a big, big rally. nikkei futures pointing to a lower open. and we have the dollar currently at 12.04 right now. .1%.r slightly a bad about down by about 1%. china's gdp coming in ahead of expectations after that

we are counting down to asia's major market open. shery: our top stories this hour, asian stocks look set for gains after a tech rally lifts u.s. markets to their highest since february. the s&p 500 is positive for the year. the nasdaq 500 hit a record. investors welcome optimistic news of a vaccine. infection rates low in tokyo but hong kong says the situation is increasingly severe. jack ma looks to make more headlines. he is aiming for a $200 billion valuation with between listings in hong kong and shanghai. look at how take a we are setting up when it comes to the asian open. we have a lot of positivity carrying on from that session. investors are backing that buy the dip trend. the nasdaq hitting the all-time high. the s&p hitting positive for the year. s&p active futures contracts a little bit lower at the moment but it seems like the positive .evelopment on vaccines trading sideways if you will. the dollar was broadly weaker in g10 except for the yen. we had dollar strength and yen weakness overnight. that is the handle we are

in asia, hong kong tightens restrictions. in england, face coverings are to be made compulsory in shops from july 24 come after pressure from unions, business groups, and opposition politicians who have use the government of lacking clarity in defeating the pandemic. pandemicade coverings last month but less optional for shop -- -- for shoppers. standard for the u.s. by 2035. the democratic nominee will also commit to investing $2 trillion in clean energy over four years. the proposal button proposed well fighting for the nomination. global news 24 hours a day, on air and at bloomberg quicktake, powered by more than 2700 journalists and analysts in more i'm 120 countries, leigh-ann gerrans. this is bloomberg. yousef? yousef: thank you for that. the u.k. national debt has topped 100% of gdp for the first time since 1960 three. the treasury has shattered its annual record for government bond sales, but how is the u.k. pay off all this new debt? anna edwards takes a look? anna: the government is spending huge amounts to protect

anna: do you go to asia then, to get exposure to cyclicals? or is it too early for that evening asia? seema: i think it is a little bit early everywhere. selective.be very from a sectoral perspective, we like technology. like south korea, we like china, we like singapore. we would like latin america and india a lot less because it seems they are struggling more with the virus. but i think there are spaces for the cyclical space. it just needs to be very selective. when we look at the geopolitical tensions, it seems to be plentiful between china and the u.s., china and the u.k., china and australia. is there something to the chinese growth story in the geopolitical story, or will china remain immune? seema: there is risk and we should not ignore that, but i think this is something -- it is a pot which is going to be boiling for a very long time. this is not just going to happen overnight where china feels the pain. over that time, the chinese government would be very astute to work out different ways to get around and maintain various areas wit

what a difference in the response to these countries in asia from here in the u.s. the trump administration wanting to block new funding when it comes to helping states with testing. yvonne: and we are seeing people in japan are discontent with how the government has responded to the virus. some report by a newspaper, 60% hasnot happy with how japan responded. compared to a month ago it was half of that number. preventing infections, they say should take priority over economic activities. most are calling for localized state of emergencies to come back into play and some are calling for the nationwide state of emergency to come back. you mentioned the record numbers in tokyo, reached numbers for two days straight. aresays total infections 9400 in tokyo. and this as we see the prime minister's approval rating coming down to 32% and his disapproval rate rising to 60%. haidi: we continue to see numbers reach extraordinary s in the u.s. as we see the politicized debate over masks. said it is nih chief bizarre that wearing masks has become a partisan issue where people a

it is the fact asia was struck first and quick to come out of it. it is also the policy stimulus side of things. is chinese central bank putting his foot on the pedal, and credit stimulus is approaching numbers we have had in the past. not quite there yet. from a cyclical perspective is an area we favor the most. aside from the bigger picture in asia, or the euro currency, is there something that gets you excited in market right now? is there an investment play you are talking about when you go to the bar at night -- assuming there are bars open where you are -- or something you wake up excited about doing? what has been on our minds in recent weeks is our approach to risk, and the highest conviction we have here is that taking some of that risk off the table is prudent here and now. markets have come along way since march, expectations of arerd or asset returns necessarily lower than in march. uncertainty is mounting. elections,ons, u.s. and how labor markets emerge once support schemes fade. this does not put us in defensive mode. we remain expose

in ex—macro asia were forced to pick sides between the two. the asia infrastructure investment bank, which is headquartered in beijing, has had to shake off the perception that it is a globalfinancial vehicle for china's ambitions. our asia business correspondent karishma vaswani spoke to the lender's president — who this week was re—elected for a second term — and asked how the trade war is affecting the bank's investments. in spite of the difference in the systems of china, people's republic of china and western countries, throughout the last seven decades since prc was founded, there has been increasing cooperation in many areas between china and united states, canada, european countries, as well as many developing countries. this is the main train and i certainly hope this will go on. this is the main trend and i certainly hope this will go on. how much harder has it made yourjob trying to strike partnerships, doing investments in this region with increasingly us—china tensions are forcing some member countries to choose allegiance

declined staff have experienced sustained online harassment since the broadcast one o one east is an asia pacific current affairs program that's one numerous international awards. malaysia's top policeman spoke to the media in the last hour he dismissed questions over the journalist being treated unfairly was asked whether the staff were free to go. this. week in yemen but at the moment. is there a need for them to leave the country yet you won't be. we were checked with the 81st. date you will decide you know meant a few days if. there's any case then it would be a charge but i don't think so the reason why we defused that the what i call been fair. game whatever it is to be free to be fair i'm not going to intimidate them and i'm not going to allow anyone to harm or to cause harm or to instigate the hum down peace peace b. b. b. b. b. b. b. professional body. we still allow them. access to the best lawyers or whatever it is the age of the sex the idea we keep. from hamburg is the chief executive and founder of the galen center for health and social policy in kuala lumpur he says the doc

. >> i think you're seeing countries all throughout asia and indeed in southeast asia, and in the pacific recognizing that the united states is prepared to do the things necessary to assist them in protecting their valid legal claims. >> the statement expands on pompeo's earlier comments that china's vast maritime claims are completely unlawful. a state department spokesperson told nhk the u.s. recognizes japan's administrative control of the senkaku islands. under article five of the bilateral security treaty both countries are obligated to respond against an armed attack against such territories. japan controls the islands, china and taiwan claim them. the japanese government maintains the islands are an inherent part of japan's territory. in terms of history and international law. it says there is no issue of sovereignty to be resolved over them. >>> south korean media say the late mayor of seoul may have been tipped off about a sexual harassment complaint against him before apparently taking his own life. park won-soon reportedly might have learned about the complaint wednesday last w