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tv   Bloomberg Daybreak Asia  Bloomberg  June 15, 2020 7:00pm-9:00pm EDT

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haidi: very good morning. i am haidi stroud-watts in sydney. we are counting down to is this major market opens. -- asia's major market opens. shery: the fed moves to buy corporate bonds. the news lifted wall street and futures are higher in tokyo, sydney, and hong kong. local coronavirus cases passed 8 million with infections rising in china and the americas. some u.s. states may put
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reopening on hold. the bank of japan is expected to leave policy unchanged later while reassessing measures already taken to help the virus hit economy. look at how take a markets are doing on boj decision day. we had that ricocheting session in the u.s. overnight. if you needed further conviction as to the hand the fed intentionally has when it comes to showing up market demand, you have the announcement from the fed really causing that gain back into positive territory after we had declines of more than 2% in that trading session for the s&p. futures are looking positive. about .25% in the green. we are looking at chicago nikkei futures trading higher by about .3%. we are expecting just more operational steps from the bank of japan in terms of providing support to small businesses to be able to ride out the pandemic slowdown. in sydney, we are looking at a pop at the open.
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2.5% higher when it comes to futures, with indicated upside of two point 5% when the cash trading session begins, trading at the lowest in three months at this point. we are seeing acceleration of gains in terms of trading in new zealand. we are up by .2%. good news ahead of the second quarter -- first quarter gdp read on thursday. sharing. -- shery. shery:shery: let's get more on the markets with ben. great to have you with us. we continue to see this risk-taking happening in the markets. is this really inevitable given that the indication and messaging from the fed and other central banks seems to be that they have the market back? well, if the fed was able to control the thing that most matters for investors in the long run, which was corporate cash flow, then i would be very
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sympathetic. at this point, the fed tapped into say they are going to buy a group of bonds that are already trading at basically their lowest yield in history. i am not really sure what that change is. has a lot oforld problems ahead of it as it tries to continue dealing with the coronavirus. shery: what are you looking at when you are deciding where to get in in the markets in this level of risk-taking right now? we have seen earnings having no meaning given the coronavirus pandemic. when it comes to the valuation factor, it seems to be being cheap means being more risky. what are you looking at right now? samewe are looking at the factors we have always looked at. we care about how many dollars of earnings you get when you buy
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a dollar in the market. that does not look particularly good in the u.s., particularly in u.s. large-cap stocks. there are places around the world where you are getting more dollars of earnings for your dollar of investment and we are more excited about those places, but frankly, we are worried that the markets are, to some degree, living in a fantasy land at the moment. assuming that things are going to continue getting better shows,, when as the data you know, the virus is not under control in the u.s.. even china, which seemed to have it under control, is seeing renewed outbreaks, and this is going to be difficult to deal with for quite a long time. dislocation,y that are you still favoring that long value short broader s&p strategy? ben: yes. as we look at it, the stocks
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where you are getting paid to take risk today are in the emerging markets. some of those are countries that are having real problems, like latin america, but a lot of them are also countries in asia that are dealing with the crisis reasonably well. in the developed world, particularly in the u.s., we think the spread of value within stocks is quite wide and quite attractive, but the overall level does not make a lot of sense to us. so we are much more confident that over the next couple of years, you should make some pretty good money going long cheap stocks against the market than we are that you are going to make good money owning the stock market outright. is it tow difficult find a baseline for value in this environment where you have a huge influx of retail participation, exuberant, the return of volatility, and a complete lack of forward
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guidance? ben: it is a tricky time. the complete lack of forward guidance, there is more uncertainty today about what the future is going to look like than at any time basically, you know, at least since world war ii, and under those circumstances, we want to get paid to take the risk of that uncertainty. as we look at it, we do not think you are. there is some justification for the market being expensive relative to history because bond yields are so low. let's face it, bond yields in japan and europe have been this low for a long time. markets did not cause there to leap higher. so i am not sure i completely buy the argument that the federal reserve, has lowered
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rates to zero, and therefore all that can happen with the stock market is it can go up. that certainly was not true in japan. it certainly was not true in europe. it is true at the moment in the u.s. possibly because of all the people who were bored at home and choosing to speculate in the stock market. as the stock run, market is less about the speculation and the volatility and more about cash flows. we are nervous about the cash flows. shery: how hard could the markets fall in the u.s. once we get some sort of indication that the fed is nearing tapering again? ben: you know, i think it will be less about the fed nearing tapering again because i do not think the fed is going to be raising rates anytime soon. so i think the fed support will still be there.
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what could really trouble the stock market is a recognition the significant parts of country might have to go back down on lockdown and that this might be a recurring pattern which will obviously slowdown the recovery but will also make it very difficult for businesses to make plans. actually more likely to be problems with the economy, the speed of the recovery, and problems with the virus that are likely to pull the market down rather than anything from the fed because the fed wants to do is say anything that could be blamed for the market going down. will: does that mean we not be getting any sort of earnings guidance from these companies any soon given the level of uncertainty right now? and then what does it mean for
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investors when they have to continue flying blind? the analystsmean are still coming out with their estimates. which are optimistic as they usually are. beforeld survived companies gave forward guidance and frankly, there is something to be said for companies being honest about the uncertainties they faced. you know, there are companies for whom this environment is less of a challenge than others. the companies have done very well. it does not seem like there is a whole lot of upside left to them. givenies do not need to forward guidance in order for investors to make decisions. haidi: what is contrary and in
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this kind of environment? -- contrary and in this kind -- contrarian in this kind of environment? ben: if you look on a year-to-date basis, what has been working well? being in the u.s., feeding growth. and yet at various times this spring, people have hopped on the bandwagon of value or small or em or europe. they have not stayed on it very long. i am not sure that on a buyingar view, certainly emerging-market value stocks is pretty contrary and because everyone is so fascinated by the big sixthe banks fix -- s&p growth companies. the market seems to have attention deficit disorder. exactly what know
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the short-term trends are even if you want to bet against them. always great to have you, giving us food for thought. ben inker, head of asset allocation for us. we have breaking lines coming out of china. beijing has locked down seven compounds in the central district. this is the area which includes the key financial hub in the capital city of beijing. this as we have seen the numbers the second wave. the coronavirus cluster from the wholesale fruit and vegetable market at around 100. we are now hearing that not only have those neighborhoods surrounding the market been locked down, government officials have also locked down the seven compounds in central -- district which really is quite impactful in terms of that being the financial district as well as where key government buildings are as well. let's get you the first word headlines with karina mitchell.
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karina: rising coronavirus cases across the u.s. means some states are considering pausing plans to reopen post lockdown. they have seen more than 100,000 more infections each day with vast majority of the americas and southeast asia as well as a spike in beijing. that means that every day, there are more new cases that in the first two months of the pandemic. than two months for the first 100,000 cases to be reported. for the past two weeks, more than 100,000 new cases have been reported almost every single day. union ishe european taking on china's global trade ambitions with an unprecedented tariff decision to counter subsidies to mainland exporters. for the first time ever, the e.u. is tackling it. egypt to exporters
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of such goods based in china. meanwhile, the e.u. and the u.k. are a step closer to a deal, more confident boris johnson will compromise. the prime ministers saying the chances are very good. johnson held a virtual summit with ursula von der leyen, which sources on both sides say injected new momentum into deadlocked negotiations. the two sides are hinting they may soften their positions. in the u.s., president is reiterating his threat to pull u.s. forces out of germany unless berlin raises spending on its own defense. "delinquent," he says they owe nato billions and they will have to pay. he says germany does not meet the nato spending target. he is now threatening to slash u.s. -- by half. global news, 24 hours a day, on air and on quicktake by bloomberg, powered by more than 2700 journalists and analysts in
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more than 120 countries. i am karina mitchell. this is bloomberg. shery: we have breaking news. the department of transportation in the united states now amending an order and expanding chinese flights into the united states. flights will allow four from china per week. china is also using restrictions on those u.s. planes going into china. we had heard about u.s. passenger carriers receiving permission from chinese authorities to operate four weekly flights to china, and we are seeing that the department of transportation and the u.s. also is doing the same by allowing flights from china. four per week. to thehead, we speak health president about how the u.s. and other nations can deal with a resurgence in coronavirus the bank ofirst, japan is seen leaving its main policy levers untouched as it
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reassesses the measures taken so on the pandemic hit economy. this is bloomberg. ♪
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haidi: the bank of japan may have no need to move its monetary policy gauge. will it instead put more juice into the pandemic battered economy by doubling down on its emergency lending program for small business? kathleen hays is here. we know that that is a priority, getting these small businesses through the worst part of the pandemic slowdown, so what are we likely to see today? kathleen: the boj is fighting the same pandemic fight that every central bank around the world is fighting. how do you prevent small and medium-sized businesses and corporations from going bankrupt, laying off workers, closing down? are seeing footage
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of a shopping mall in tokyo that was shut down for the locked down, but this is why everyone is suffering. if you look at this chart, the boj is not expected to make it negative rate more negative or change its yield curve control. it was already in a very stimulative stance when the coronavirus hit. look at that chart. in the fourth quarter, a big drop in gdp. the consumption tax hike played a role. and then you get a correction, a certain amount of correction in the first quarter, down 2.2%. that is an improvement. the second quarter is expected to be very negative, so what can they do? they announced a new lending facility of that emergency meeting they had for $30 trillion. now, there is a lot of speculation they could double it to ¥60 trillion from y30 trillion. they could even expand it to ¥100 trillion and it is expected to be a compliment by the bank of japan to go along with prime
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minister abe's governments big budget. the second supplemental budget that is about 32 trillion yen, so a lot of firepower in place if both of these things happen. bloomberg news has heard from its sources that they may wait and not even increase emergency lending facilities. it is the biggest point of drama we have as this meeting wraps up in a few hours. shery: what else will we need to hear given we are expecting this meeting to wrap very soon? kathleen: let me start with something we probably will not hear. if they expand this lending facility, they probably will not characterize it as an increase in monetary stimulus because they never said they were going to have it. but what could they do? they are expected to start really weighing in on how companies are looking with this extra stimulus, with the monetary stimulus as well. are they getting more able to pay back loans?
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will this help jobs? will it help the banks as well? bloomberg economics is saying they do not need to boost their corporate bond buying, commercial paper brian, because they have not come anywhere near their limits yet. traders want to hear what governor kuroda says about the recent rise in super long bond yields. are they more concerned about a steepening curve? are they going to imply they will do everything they can to keep all the bond yields low sides the benchmark 10 year that is anchored around zero? one more thing that is fun to think about is that while -- will kuroda echo what powell said about keeping the key rate at zero for years to come? i wonder how you would say in japanese i am not even thinking about hiking rates right now. hear kurodafun to say something like that. shery: kathleen hays. we will have plenty more perspective on the boj ahead with columbia university professor ito.
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he led many senior finance positions in government, plus we will hear from moody's analytics and continuum economics later as well. coming up, a landmark supreme court ruling grants new civil rights to lgbt workers in america. we will get more, next. this is bloomberg. ♪
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,hery: in a watershed decision a divided u.s. supreme court ruled that federal law protects gay and transgendr workers from job discrimination, giving millions of people civil rights that have been sought for decades. our supreme court reporter joins us on the line from d.c.. it is interesting that we had conservative justices joining the liberals, even one appointed by the president himself. greg: that's right. that was just as wrote the court's opinion.
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he is a justice who has occasionally joined the liberals but generally follows the conservative legal philosophy. a surprise to some people but consistent with what we heard from him from arguments back in october. ofdi: consistent in terms the application of the law. there's been some views that this is an intellectual power play by neil gorsuch. is this an attempt, i suppose, and does this make it likely that we will see further leanings towards, i guess, what you call liberal causes from the justice? greg: justice gorsuch is somebody who cares a lot about the text of the statute. that was something antonin scalia are believed in an justice gorsuch very much sees himself as a follower of justice scalia's philosophy. this case was all about how you interpret the federal job determination law. that law says you cannot
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discriminate on the basis of sex and the core question was does that include discrimination based on sexual orientation and gender identity? justice gorsuch says just looking at the words of the statute, yes, it does include that, so my textual list approach to this case is going to say yes, even though congress may not have had this in mind back in 1964. indeed, that is what the statute covers. impacthow broad of an will this have on the united states antidiscrimination laws? greg: very big. more than half the states did not protect gay and transgender people through their own discrimination laws, so it most of the country, up until today, it has been the case that you could be fired because of your sexual orientation or gender identity. that is no longer the case. there are a couple caveats to it, the biggest of which is justice gorsuch did say there could be some religious rights
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that enter into the equation. for example, if the employer is a religious group, that is going to be something the court will have to work out in future cases. court our supreme reporter in d.c. aims to raises about $5 billion to help offset the coronavirus by borrowing against its supply program. it says goldman sachs, morgan stanley, and barclays will provide the financing with a deal expected to close in july. united dropped plans to sell junk bonds last month. the new arrangement would be secured by its mileage plus loyalty plan. british airways is rejecting a report that blended its plan as a national disgrace. the group says it does not accept the report's findings and its approach to job cuts is perfectly lawful. the ceo says lying down amid the vallas -- virus fallout would be
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an actual disgrace and they will not do that. lufthansa is the latest major airline to warn of impending job losses. it says 22,000 people may be eliminated including 600 pilots and 2.5 thousand flight attendants. the carrier says half of the surplus staff are based in germany but some jobs will be cut at its austrian airlines subsidiary. lufthansa has won government backing incidents it would have gone bust -- and says it would have gone bust without bailouts. they seem to be warming of the idea of four more years of president trump in the white house. we will have more on that rate, next. this is bloomberg. ♪
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shery: asia stocks at a two-week low, falling for the past three sessions. let's see how we are setting up. let's turn to sophie kamaruddin in hong kong. sophie. reversale could see a here in asia as well after the three-day drop and a pickup in vol also likely here. check out nikkei futures in singapore this morning, opening higher, extending gains by 3%, adding to the near 2.6 percent advance we saw overnight. kospi futures settled lower. we could see more volatility. south korea's finance ministry morning of the top e*trade potential given the increase we are seeing in retail investor participation.
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we have sydney futures pointing higher and s&p e-minis gaining ground early in the asia session. we have the greenback extending declines. the aussie leading g10 gains. that is above 69 ahead of the rba's june meeting dates and bonds falling with australia's 10 year yield adding five basis points. jgb's following treasuries lower ahead of the boj's policy decision. on that, jumping into the terminal, the central bank is seen standing pant today with signs that policy efforts are getting traction. as you can see on the terminal, the average spread between corporate and government bond yields in japan, that is eased. haidi. moderna ceo saying he is optimistic about a covid-19 vaccine by next year. he discusses where -- david rubenstein for leadership live. if anybody can use the word
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lucky for this pandemic is that the virus is not too complicated. if you think about it, hiv was discovered in the 1980's. we still do not have a vaccine against hiv. the scientific and medical community believes that the -- i think with the high probability that several vaccines will make it to the finish line. it could be as early as the end of the year or early next year. >> you are manufacturing this now. ok,s suppose the fda says, you can distribute this to people. how many will you have by the end of the year if you get approval? david: we don't know the precise number. will those go to the people in the united states first or will they go to people all over the world?
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who decides who will get these? >> that is a tricky one. what we have done is we set up a partnership with one of the biggest contact manufacturers of pharmaceutical products in the world. theye u.s., moderna -- we speakctory that as is transferring the manufacturing process. this would be up and running in july, making their own products, so the plant in the u.s. would have enough capacity to cover for the u.s. population. what we are going to do out of europe is to make products for people outside of the u.s. >> what is it going to cost people? who decides the pricing? is it going to be complicated and controversial whatever the price is? >> we are working on it as we speak because we have so far focused on getting the drug moving as fast as we could safely.
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we are now going to get onto pricing. products, the diagnostics, ppe, those need to be sold at a fair price. the manufacturers -- business does not work like that. the manufacturers need to commit to not charge a price that is not fair. -- aostic companies government, federal or state. we need to make sure that the -- comparable. >> the government has provided you with lots of money to move this forward. should the government get some discount? how will the government get compensated for what they have done to help you? >> it is difficult for me to comment on this. that is the mindset we have.
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we want to be very fair. taxpayer money, we are very thankful and appreciative for the help we got when it was really risky. we will be happy to make it fair to the government. >> let me ask you a final question now. are you optimistic, reasonably optimistic, that sometime next year, you or one of the other companies that are working on this under the government's support is likely to have a vaccine that can be distributed to people for covid-19? david: i am cautiously optimistic, david. the virus is not too complicated. the companies are -- the partnership with the government is exemplary. the dialogue has been sentimental. people are working 24/7. we get emails from the government at 2:00 in the morning. the collaboration -- we talked
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to the agencies. everybody wants to help. everybody is pulling in the same direction. i am optimistic. i hope more than one vaccine will make it because not one company in the world has enough capacity for the planet. the world needs vaccines to make it to the finish line. that was the moderna ceo with david rubenstein. we have more breaking news out of china with regard to the stricter restrictions when it comes to the latest coronavirus outbreak. the beijing daily newspaper is reporting that beijing is seeking to prevent the spread of the coronavirus out breakthrough means including the banning of residents high virus risks from leaving the city. this reportedly took place at a meeting of the outbreak invention control working group and talking about really strictly controlling high-risk personnel from leaving beijing.
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those that have left the area must notify local areas in time. we also had a little bit earlier on news that seven compounds around the district were being shut down as well. tom mackenzie joins us now from beijing. we are getting these lines about -- residents from leaving the city. we heard about that locked down, which of course is worrying given you have the financial streak as well as high -- street as well as high traffic locations as well. >> this is again a real test of china's ability to try and contain outbreaks like this and they have had almost 100 infections. we will wait for the latest numbers which should be out in the next hour or so and that will give us an idea of how far this has spread. the vice premier said there was a high risk this virus will spread. i was down outside one of the main market yesterday. a huge, sprawling space mined by
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police and paramilitary forces who closed it off. they are taking this very seriously. a number of other residential compounds have been knocked down. the additional restrictions in terms of security restrictions have been ramped up across parts of the capital and many companies have told their staff to again work from home as the government tries to get a better grasp on how many people have been infected. it was located at this particular fresh food market and it was linked, according to some importedto potentially salmon. not 100% sure about that. they are still doing tests. in terms of tests, they are testing 90,000 people who are living around that area or linked to the market. the testing capacity here is significant and they are trying to make sure they are reaching as many people as possible. it is a real test of this regime that china has put in place but certainly, there is concern here in the capital about this virus
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outbreak. more people are staying at home and stocking up on supplies. haidi: in the meantime, as we continue to see u.s.-china tensions rising, we have seen president trump sort of try to portray joe biden as being weak on china but officials in beijing now potentially warming up to the idea of actually having president trump for another four years in the white house, and that might work out better for china. tell us about this. that'sthat's right -- >> right. sounds counterintuitive, but officials have told bloomberg news they think that weighing these two candidates, trump may be the better option for china. that of course, despite the fact he spent the last four years bashing beijing on everything from trade and technology to most recently covid-19. the reason the official site is a belief that another four years of trump would lead to a further erosion of america's postwar ,lliance network with the e.u.
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was canada, even with countries like japan as well, and ultimately, there is a belief that that would outweigh any damage to china from continued trade disputes so a further erosion of these alliances would benefit china and that is the calculation that is being made, but of course, across the board, officials are acknowledging that there is a very high chance these u.s.-china tensions will rise regardless of who is in the oval office. they realize that opposition to china has bipartisan support in washington and in fact, those views on china are only hardened since the pandemic but there is a view that joe biden is seen as a traditional democrat, someone who worked to rebuild those alliances, and if he can build up an alliance to push back on china, that would actually pose more of a challenge to beijing so that is what is being weighed up here.
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haidi: coming up next, new virus outbreaks in the u.s. have raised concerns about reopening plans. we will discuss the potential for a second wave with william has a teen, known for his groundbreaking work on hiv and the human genome. this is bloomberg. ♪
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karina: this is "daybreak asia." i am karina mitchell with the first word headlines.
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the coronavirus fallout has indicated a record fall in employment in singapore. total job losses fell by 25,006 hundred, mainly due to a significant drop in foreign employment. initial data shows 19,000 jobs were lost through march. that has been revised higher. the ministry of manpower says labor market conditions are unlikely to worsen in the current period. the philippines is to keep the capital region under loose restrictions as virus cases rise. trauma and allow will remain under a general community quarantine until the end of the month although strict stay-at-home rules are being reimposed. the philippines reported 490 new cases on monday, taking the total to more than 26,000, almost 1100 deaths. meanwhile, the german government is to raise a further $70 billion in debts to fund its stimulus program for europe's largest economy out of its worst recession since world war ii. that would take total borrowing this year to $246 billion.
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the cabinet is expected to -- after budget on wednesday before it goes to the bundestag for approval. the next oscars ceremony will be held later than normal to give films delayed by the coronavirus a shot. the academy awards will take place on april 25. normally, the oscars happened in february. only films that came out the previous year can be considered. the u.k. will also be delayed to april for the same reason. global news, 24 hours a day, on air and on quicktake by bloomberg, powered by more than 2700 journalists and analysts in more than 120 countries. i am karina mitchell. this is bloomberg. haidi. fears of a second wave of coronavirus infection in the u.s. leading some states to consider pausing plans to reopen post lockdown. globally, cases have passed the 8 million mark. joining us now is the president,
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william. has spent his career at the forefront of medical research and is known for his groundbreaking work on hiv-aids. you say the u.s. has done not enough to prevent a second wave in more than a month ago, potentially earlier, you were writing about the inevitability of a second wave. sooner than you expected? >> it is far too early to talk about a second wave. what we are experiencing is a prolonged wave, sort of like a tsunami. it is a wave that just keeps coming and coming and coming. you can see in the total number of cases in the united states that we climbed up to a steep plateau. as i predicted then, it would take us a long time to climb down off of that plateau. we could not see the end. now, it seems that that plateau has arrived and we are climbing
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up to yet a higher part of that plateau. we have yet to climb down. about asow today just many people infected on a daily basis it on average, a little over 20,000. as we had over two months ago. on april 1. we passed the 20,000 mark. that was a long time ago, the middle of june. we are not even beginning to see the second wave because we are not done with the first. at the same time, we continue to hear from voices within the trump administration, from the president to the treasury secretary, saying that he will not shut down the economy even with the second wave. we heard from larry kudlow overnight saying that these numbers we are seeing in about 22-state are really small bombs and are very much controllable. is the reopening just a one-way street?
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should the greater consideration be given to whether some of these places will be reopening at all? >> first of all, the characterization of a little bump is absolutely incorrect. it is dead wrong. is look ate to do where the united states has been for the past two point five months, 20,000 plus cases a day, more or less. that is more about reporting. now, we are rising slightly, so it is not a slight bump. it is 20,000 of our citizens, which means there are 200,000 people walking around with active infections at any one time in the u.s. and they have been for a long time. we have not controlled it. we are not controlling it. that does not mean we are not going to reopen. we will reopen, and we are going back to a period, at the beginning of my life, when antibiotics were just coming in at the end of world war ii for civilian use. weree that, when we building our railroads, when we were building our cities, we
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lived with a possibility that tomorrow would not come. everybody knew that an infection could spell death. we are back to that era. by the way, it is something that many of us predicted, that there would come a time, there would, a disease, that would take us back to the pre-antibiotic days. the world does not end. mankind goes on and economies go on. we build the world at a time for vaccines and antibiotics. we will prevail. but we will pay a price. scary it is a very scenario took place at the moment. when it comes to the progress of developments of treatments, what are we seeing so far? even this week, we have the fda withdrawing their authorization for two malaria drugs that president trump had touted. >> those drugs should never have gotten emergency authorization
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in the first place. people knew that they were ineffective. it's been proven again and again not to be effective in treating the disease or preventing the disease, and indeed, they are dangerous to take for people with heart conditions. many of those who are most -- they have a heart condition. whether or not it has accelerated the demise of those people is a topic of debate. they are fully justified. does not mean we are not going to have good drugs. if i were to take a bet today on what would come first, affective orrapy, chemo prophylactics, vaccination, i give vaccination a 50% chance of being safe and effective and effective drugs to treat and prevent those who are exposed from becoming ill at 90%. have a vaccine but we are not going to know how well it works and we are surely in six
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months not going to know how safe it is. with the drugs, i am reasonably sure that we are going to have a way to help those who are ill and prevent those who are exposed from being infected. those are in an early stage of infection from falling ill. if all the attention is on the vaccines today, you are going to see in the next two or three months a good deal of attention on a broad range of drugs. we know that is so because we saw them developed in the time of sars and mers. many of those selfsame drugs are making their way through phase i and phase two clinical trials so there will be good news. shery: when it comes to the development of those vaccines, will we get that 100% effective vaccine in the first try or will we have to settle for a vaccine that perhaps does not allow the disease to kill you or get you severely ill but perhaps helps you -- does not actually help
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you in not catching the disease at all? settle in a to limited efficacy vaccine in the beginning? william: you know, it's really up to societies and regulatory authorities to tell us what they are going to settle for. the problem i see right now is they are not transparent. we do not know what they are willing to settle for. look at the safety criteria that they are going to insist upon. we do not know. what are the efficacy standards? for many vaccines, we know what that means. but we do not know what that means for this vaccine. and many of us are suspicious that they will bend and warp the regulations to fit the current exigencies, whether those are political or economic or psychological. that is a worry. it is far too early to know. i would say that the broad look
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sars, and covid vaccines, we have had 15 years experience for those. they suggest that these will only be partially effective and will not necessarily develop immunity for a long period of time. we may be lucky. we cannot tell. we would have to be very lucky, first shot out of the box, of a vaccine that is entirely safe and entirely efficacious. chances are, it will fall short of that. and then the question is how far short does it fall? and will it fall short enough? haidi: that is all we are going to -- william: excuse me -- haidi: if partial efficacy is your best case scenario, do we get a vaccine at all? in the 1980's, people thought we would have a vaccine for hiv-aids, and we still do not.
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is there a chance we do not get a vaccine? william: i was a lone voice saying we would not. the stage forf staying in 1986, we cannot see a vaccine from where we stand today. we need to know a lot more. that was 35 years ago almost. not everybody thought we would have a vaccine. with this, i am less certain. this disease falls somewhere between hiv and polio. people do clear it. they do make immune responses. they may be temporarily immune from it, but then the coronavirus comes back. the same virus next year to the same person. it is a much more complicated situation, and we are dealing toh a virus that has adapted our immune system. it has got about 20 different tools it uses to counter our ability to fight it. will it employ -- will those tools that this virus has
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impeded vaccines? may be. there are too many questions. it is too early to know. but what is not too early to know is what the rules of the game are going to be. how are these going to be tested and what are the regulatory authorities likely to accept? that, we need to know, and we do not. >> everyone i speak to says i am waiting until we have a vaccine to travel. we will have heard immunity. you are talking about reinfection of the same person. what are the implications for heard immunity and that is -- is that another false hope. william: heard immunity is a fantasy, a dangerous fantasy, that has led to an extraordinary number of deaths in sweden. i would eliminate that term from our vocabulary and our thinking. even at best, it meant perhaps millions of people dying.
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are we really that far back to the preantibiotic era? are we willing to travel back to the middle ages in our idea about what we will accept? insofar as your friends are waiting to travel until we have a safe and effective vaccine, they may wait a very long time. i think a better strategy is to say i am going to insist and work with my peers to make sure that travel is safe to make sure that the airlines do everything they can to seat us far apart, make sure the air is safe and sterile, and that i, myself, am going to take cautions. to wear -- around my eyes. i am going to make sure i do everything so i do not infect my neighbor and i am going to not take the plane -- the responsibility of protecting me. that can happen.
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to say, listening to you, it makes me scared of where we are at right now. quickly, given how angry this makes me feel, the fact that we are in this situation, why are we here? it is not like we don't know about the common cold, influenza, sars, and mers -- what happened? william: this virus has cracked not only our immunological code but also our sociopolitical code. humans have it in their organizational ability to stamp out this epidemic. they have done it for most of to countries that had sars begin with. other countries do it moderately. if you look at spain and italy, they reduced it to 100. we reduced it to 20,000. some countries, may be 100,000 per day. we have 20,000 per day. in europe, it is in the hundreds per day. in china, it is in the single --
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shery: we will have to leave it here. we are out of time. dr. william haseltine, international chair and president, thank you very much for your time. market open is next. ♪
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good evening from bloomberg's world headquarters in new york. haidi: asia's major markets have just open for trade. welcome to "daybreak asia." after newsts gain lifted wall street. the dollar retreated. global coronavirus cases pass 8 million with infections lagging in china and the americas.
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expected tojapan is leave policy unchanged while reviewing measures. japan, south korea and austria getting online. less get straight to the market action with sophie kamaruddin. sophie: we are set up for a risk-on session even as global virus cases top 8 million and beijing has locked down seven compounds to contain the outbreak. indit markets, airlines are view as international flights resume. 1.7% but5 adding staying below 20 through thousand -- below 22,000. yen on the back foot. about twoing rise basis points for the 30 year yield. south korea, the kospi out the gate, 3.1% higher after a
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three-day loss. ready to stabilize markets if needed. the korean yuan moving back towards 1200. plans toea saying it send the military into the dnz. in sydney we are seeing stocks about .7% higher, while the aussie dollar continuing to push above 69. the bond rally taking a breather. aussie 10 year yields adding about seven basis points, rising for the first session in seven. its debtfor clues on purchase program. cash treasuries opening lower as well after monday's choppy session. food edging higher. gold consolidating after paring overnight losses with futures back above 17.31 an ounce.
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prices range bound, unable to reclaim with record etf buying offset by speculators turning bearish. haidi: sophie kamaruddin with the open. asians enjoying the switch in mood after what has been it steepest three-day decline since march. let's start with mark. he saw the steady hand of the fed overnight in terms of the mood lifting risk asset appetite. can we see that being sustained? mark: it's a reminder to they are using everything in their toolbox. we have heard a lot about central banks doing whatever it health andstore the economies, what they can do from their side and what they can do to stabilize financial markets. this is another example that they are really pulling out everything they possibly can.
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using every leader and every asset class they can. lever and every asset class they can. they are now buying specific bonds as well. it just helps the sentiment in asset markets around the world, starting with the u.s. of course. it just shows how fragile things can be. as soon as we saw some bad news about the risk of a second wave in the pandemic, investors got very nervous and they quickly needed research. -- theed the reasserts reassurance. the central banks cannot do anything to reverse the virus, of course, but they can make sure that financial markets does not impact the economy. that is exactly the fed is doing and what other central banks are doing. we will probably hear more of the same from the bank of japan later.
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the governor expected to strike a dovish tone. the japanese equity market -- beenow there' -- they've involved in the stock market and they might expand further in that direction. dollar-yen is essentially a range player at the moment. inis affected by the changes sentiment. yen will probably not move a great deal because of the bank of japan. bank of japan is also heavily involved in the bond market. they have it pretty much where they want it to be with yields close to zero, the long end of the curve. they might slightly adjust what they do with a long maturity. they like to see 30 or 40 year yield come down slightly, but not by a great amount. they would probably not mind it being flatter.
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it's really the equity market that would restore confidence in japan. we may see some measures directly geared to help boost sentiment in japanese stocks, which of course on a long-term basis, japanese stocks have underperformed, particularly in the u.s. so if the bank of japan can help improve confidence in that part, there could be people who have not been involved in japan who would be keen to switch money into japanese markets. haidi: so we see markets responding to this kind of adrenaline shot from central banks, but how effective is that if we continue to see signs of a second wave? saysugh our previous guest this is just a continuation of the first wave and we have not even seen the second wave yet. mark: yeah. it has a lot to do with lockdowns, really, and the risk of further lockdowns. we have seen in beijing that there is a really secure part of the city, a couple areas have
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been closed down and people are not allowed to move around. but it could be that china is a bit of an exception. where the rest of the world stands on this may not be in the same place. we have seen other major countries not so keen to go back into this lockdown. if that states the case, if people prefer to keep their economies open to try and reestablish some growth in their countries, understanding that there still could be some gains in the virus, there might be more cases, if this trade-off continues in some parts of the world, then that will be what investors will focus on. the real shock risk to financial assets is that suddenly, some parts of the world decide to clamp down again and not allow people to move around. they shut down industries and we see a kind of repeat of what we had in march, where there was a shock to the global economy because nothing was moving. that is probably something most countries want to avoid. it was very damaging.
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but thed at the time, financial cost is extreme and not many people want to go through that again. cranfield, great to have you with us. you can follow more on this story and all of the day's trading on the bloomberg and mmi go. you can get our market run down and one click and there is commentary and analysis from bloomberg's expert editors, so you can find out what is affecting your investments right now. let's now get to the first word headlines. rising coronavirus cases across the u.s. mean some states are considering pausing plans to reopen post-lockdown. globally the past two weeks have seen more than 100,000 new infections each day, with the vast majority in the americas and southeast asia. that means every day there are more new cases than the first two months of the pandemic, with global infections now passing 8 million.
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>> it took more than two months for the first 100,000 cases to be reported. for the past two weeks, more than 100,000 new cases have been reported almost every single day. shery: chinese authorities have locked down seven compounds in beijing after a spike in coronavirus cases. the outbreak was identified with the city's largest market and prompted fears of a second wave of infection. people with a high risk are being banned from leaving beijing, and the world health organization says the new cluster is a concern. the european union is taking on china's global trade ambitions with an unprecedented decision to counter subsidies to mainland exporters. for the first time ever, the eu is tackling -- the dispute involves imports to the symbol markets -- single
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markets of glass fiber fabrics from egypt. goods areers of such ultimately based in china. seem a. and the u.k. step closer to a deal with brussels. johnsonfident boris will compromise and him saying the chances of agreement is good. withld a virtual summit the eu commission president, which suggested new momentum into negotiations. they are hinting they may soften their position. we do have the latest coronavirus case numbers out of china, reporting 40 coronavirus cases for june 15. eight of those were imported cases, but of course beijing reporting 27 new local coronavirus cases for monday. and of course this as a
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contingency across parts of the capital. ofistrict seeing a number residential compounds being restricted after a market in that area saw a cluster of cases following over the weekend, a major cluster of around 100 infections inside a market of beijing. further restrictions on movements as well for individuals deemed to be high risk in beijing. still ahead, hong kong's jobless rate could hit another grim milestone. we will talk about the outlook for the city's labor market. first, the bank of japan is the next major bank to give its view of the virus slowdown. this is bloomberg. ♪
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the bank of japan may
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have no need to move its monetary policy gauges. but will it put more juice when it comes to the pandemic back into the economy doubling down on his lending program? our global economics and policy editor kathleen hays is here. kathleen: i am certainly not watching for any change in that negative key rate. i am not looking for any change in yield curve change. around 0% and staying there pretty well. what everyone is looking for is seeing to what extent does the boj step up the battle, the pandemic fight, to prevent a wave of bankruptcies, to keep jobs growing, to keep the financial systems stable. that is why there is a lot of speculation the bank of japan is going to double the new lending facility it announced in its may 22 emergency meeting at ¥30 trillion up to ¥60 trillion.
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that is what a lot of economists are looking for. it could be up to ¥100 trillion. bottom line, this is expected to complement prime minister abe's latest supplemental budget, about 32 trillion times worth. bloomberg economics basically pointing out there are a lot of things they do not need to do. they have a program to buy commercial paper, but they are far from the limit so they do not need to do that. a lot of traders want to hear what he says about the recent rise in the super long bond yield. and finally, will he said anything like jay powell said last week when he said they are not even thinking about thinking about raising the key rate and they will keep it at near zero probably until the end of 2022. we will see if he gives that kind of guidance. traders would jump all over that. shery: kathleen will be staying with us. ito,ng us now is takatoshi former policy board member and now professor of international
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and public affairs at columbia university. it is always great having you with us. do you agree with the consensus that perhaps we will see some support when it comes to corporate financing, but not really much of a change when it comes to the yield curve control framework? takatoshi: yes. i think the meeting in may 22 la theyt what they have, and are waiting to see how those revisions will take effect. changeo not see any coming. want moree traders do clarity when it comes to the super long bond yields which touched the highest level in more than a year this month. could we see more of a view of where the boj will put priority, whether it is halting the drop in the super -- superlong yields, or the ability of the yield curve? takatoshi: i think they have a
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difficult task. if they want to keep the long rates low so it stimulates investment. however, the banks are relying yield steepness of the curve to earn the income. too steep,not have but you cannot have too flat. so that is what it is about. 20 years, 40 years superlong is not directly related. the's probably income for insurance companies and so on. kathleen: that is also important, especially during a pandemic. i am wondering about the lending they started. it has a couple sweeteners for
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banks, and of course banks can also use all the sweeteners they can get because this is a tough time for them. it does erode profits. so what are you hearing from your friends and former colleagues in tokyo, the ministry of finance, about how they are assessing this program so far? takatoshi: i think they feel good. how it is going. an how much it will make impact is the question. but i think the direction is right. the power is in the fiscal policy. think theime around i corona crisis in japan, the u.s., and europe, i think the maker power comes from fiscal policy.
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and central banks are providing the liquidity and other support actions.government bankou know, the central is no longer the only game in town. it is the government and central bank. kathleen: it seems that is one of the hallmarks, the bank of japan and ministry of finance, or the japanese government, ever since corona took off there has been a great deal of coordination between the two sides. but what happens now? the consumption tax was raised to help them down the budget deficit. this is totally off the table now, right? and will japan ever be able to bring down that deficit? takatoshi: that's a good question, very good question. , again, it's shooting
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up. it'll be a record high deficit and record high debt to gdp ratio next year. right now, we do not worry about it in the midst of the crisis. we are out of the corona crisis, i think the government seriously has to t hink of gradually withdrawing you need and maybe some fiscal growth to restore the more normal state, the tax thenues account for much of expenditure at the normal state. and they have to go back to a normal state. shery: bloomberg economics not
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expecting the debt to gdp ratio japan will jump to 262% in 2020. i know when we talk about debt in japan, we say domestic holders hold most of the debt in japan, so this is something that not needs to be worried about. but when did you start wearing about this? takatoshi: well, i do not worry crisis, which may be prompted by no buyers. i do not se that. moreer, the more debts and costs means taht you cannot spend on education, you cannot spend on defense, infrastructure , social security. so, it's not good to have ever-increasing debt. and i hope the government is
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realizing that. so, i think a gradual reduction of the deficit and debt is neede d for the future generation. in,leen: i want to jump because i think you have an interesting idea for what the government could and should do as the virus eventually passes and the pandemic we hope is behind us. in japan, what they can do to boost growth in such a way where that is how you could ultimately get the deficit down, it has a lot to do with the pandemic itself. looking at what happens after the pandemic to the economy. telus in a nutshell briefly what you are looking at. takatoshi: right. been behind in usa ge of the i.t.
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nations switched to remote teaching when corona shut down the schools. japan is still struggling to have those remote teachings. first time this remote working, working from home. and suddenly, i think they woke up, the japanese people and workers woke up, that this is good to increase productivity. u involved many people working from home. for example, couples with small children. they can continue working with remote working from home. so, i think the drastic change infamousorking
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japanese style of long hours will change, and commuting will change. good, that that is this coronavirus will be turned around to increase productivity and increase welfare of the workers. shery: that push for innovation and reform. professor, thank you very much. affairsional and public at columbia university. also our thank you to kathleen hays. we will have more analysis on the boj at 11:10 hong kong time. this is bloomberg. ♪
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thei: a quick check of latest headlines. british airways is rejecting a scathing parliamentary report that branded its plan to slash 12,000 jobs as a national disgrace.
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they do not accept the report's findings and its approach to job cuts is quote, perfectly lawful. united airlines aims to raise about $5 billion to help offset the coronavirus by borrowing against its frequent flyer program. it says goldman sachs, morgan stanley and barclays will provide financing with a deal expected to close in july. they dumped more than $2 billion in junk bonds last month. bp is to make its biggest write coronavirus pandemic hit long-term demand. the company cut its estimates for oil and gas prices in the coming decade between 20% and 30%. do not miss the big conversation on the future of oil on wednesday. the russian energy minister joins bloomberg for a virtual discussion on how oil-producing nations are navigating demand and the longer term for the energy industry. that is taking place at 10:00 p.m. hong kong time on
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wednesday. next, singapore is set to ease more virus restrictions. how the government is planning to prevent another wave of infections. this is bloomberg. ♪ this is bloomberg. ♪
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asia pacific now rising for the first time in four days. let's turn to sophie for an update. sophie: we are seeing the risk-on move take hold and asia across the board led higher by the kospi which is gaining most ground since april 6 this morning. after a three-day decline for south korean markets. gaining ground back above 22,000, set for the biggest jump in two months. in australia, we are seeing gains of about 3%. climbing back some losses that brought it to a three week low on monday.
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green across the screen. steepening in the bond space. tech on the move in that corner of the market. aussie 10-year yield up about six basis points. you see a 10 year treasury losing ground with the benchmark rate up about three basis points this morning. weaker ahead of the boj decision. the korean yuan leading the advance, earlier getting as much as 1% against the greenback, while the aussie dollar is leading g10 gains. strengthening below 31. the country reporting no new cases on monday after easing a lot down. could see a domestic tourism package up for discussion as well. leasing dollar moving below 1.39 , underscoring a potential bullish risk reversal as they prepare for phase two of its reopening. haidi: let's get more on that
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reopening plan in singapore. the government set to further relax virus restrictions by the end of the week, with more activities resuming friday. senior reporter is on the line from the city. what kind of easing when we potentially see in phase two of the reopening and what is the balancing act that the government is trying to make right now? michelle: that is certainly very much a balancing act at this point. originally the phase two reopening is not supposed to happen for a couple weeks, but they see the caseload is stable enough and they want to get the economy moving. the gdp forecast for this year as for as much as 7% contraction which would be the last -- worst downturn since independence. you do not want to have that during election season, which we think will happen soon. thingsriday, a number of we will be able to do. retail businesses will be able to reopen. food and beverage dining in will resume. of course with tables of five or
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fewer people. sports, parks, and other public facilities will reopen. social gatherings and households will be allowed a five or fewer people. we are waiting to hear more announcements down the line of larger public venues. obviously nothing of the sort of concerts and that sort of thing will be allowed to resume yet. and there will be capacity limits of other standalone retail outlets, malls. there's another conversation going on around contact tracing. singapore announcing it will not use the contact tracing system developed by apple and google, in a rare collaboration there. they will use their own technology and we will see those devices rolled out probably later this month. it will not be mandatory yet, but there is debate going on whether we need to have it mandatory. the government make make it mandatory to use these devices if there is not a high enough take rate. shery: how does singapore compare in terms of virus
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caseloads in other parts of the region? michelle: thankfully here, singapore has seen a steady progression in the caseload, even with the crisis in the foreign worker dormitories. they are keeping cases outside the dorms in the single digits. that is quite a contrast to other parts of the region. the philippines is a recent example according 490 new infections on monday in the manila area. back to that balance, they are showing the difficulty of re-imposing limits once there are the second ways. metropolitan manila remaining under somewhat loose restrictions, what they call a general community quarantine, while they are implement a more strict stay-at-home orders where there has been widespread community transmission. india, a great story out of our mumbai bureau yesterday about contact tracing and getting
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infections down in their biggest slump. -- slum. they have knocked on tens of thousands of doors and screened almost 700,000 people in the cluster. the daily infection rate is down to one third of what it was in may. half are recovering in a number of deaths has plunged this month. that is somewhat of a success story, but it is in sharp contrast to the rest of india. many challenges are being faced throughout these regions. so we will have to see how things go. been: coming up next, it's a tough year for hong kong nurse with the on employment rate set to take up even higher in may. we will discuss next. this is bloomberg. ♪ s is bloomberg. ♪
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karina: iran is being warned to allow inspectors into nuclear sites amid rising concern about undeclared plutonic material. they have taken its request to the highest level of disagreement over cooperation. the dispute relates to activity in the early years of this century before the 2015 nuclear accord was signed. has nosists the iaea
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legal right to inspect the plant. president trump is reiterating his threat to pull u.s. forces out of germany unless germany raises spending on its own defense. calling germany delinquent, he says they oboe -- owe billions. he has long complained about germany not spending enough on defense. he is threatening to slash u.s. numbers by half. the u.s. supreme court says federal law protects gay and transgendr workers from jobs come in asia. it gives millions -- from job discrimination. a sexual orientation and gender identity will now be covered by the long-standing federal law that bans sexual discrimination in the workplace. the seventh richest person and china has been involved -- involved in a kidnapping plot over the weekend. giantnded home appliance medea group, was rescued after
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his son reportedly escaped and swam across a lake. he is worth about $24 billion. five people have been arrested and police continue to investigate. global news 24 hours a day on air and on quicktake by bloomberg, powered by more than 2700 journalists and analysts in more than 120 countries. i'm karina mitchell. this is bloomberg. kong has been successful and containing the coronavirus is only four deaths in over 1100 confirmed cases. business is returning to normal, but the jobless rate is likely to rise above levels seen in the financial crisis. the number of people without jobs could soar to the highest of 15 years. joining us is carl chong -- chrung -- cheung. great to have you. on the one hand you have hong kong handling the reopening and
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the coronavirus situation better than a lot of major cities around the world. , the dragnethand comes from political instability and travel restrictions are still likely to go on for some time yet. carol: exactly. the case is exactly what you have just now. konghing about the hong market is we have been infected with over 19 since the beginning of the year. the protests in hong kong lasted for at least six months. impact in had a big the job market last year. in particular on retail and beverage sector. so even just last year, the --ing forces we had already seen companies had set up offices in hong kong or in neighboring countries like singapore.
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what happened this year with covid-19 is basically an extension of what happened last year, just that this year is brought industries. but as you said, we have been managing the pandemic very well. month ofen more than a complete lockdown. we have had single-digits, if not zero. you can see a lot of economic activity in hong kong have already resumed. sentimentnt -- the has already gotten better and hopefully we see the job market rebound. haidi: which sectors do you see sustained weakness, though? because it has been probably over a year where we have seen hotels, leisure and tourism, where the pressure point has been. carol: mmhmm. impacted isly retail, luxury, chinese tourists
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coming to hong kong for food and beverage. on the other hand, we have already seen hiring. from local hong kong companies. if they are headquartered in u.s. or europe -- they are very prudent, if not slow in approving headcount. however, if you look at hong kong companies like utilities, are still active when it comes to hiring. shery: does that mean if businesses are being more cautious about hiring full-time employees, that perhaps contract roles are rising? carol: it is. at the beginning of the year we are seeing more contract hiring. then it gradually changed the payroll hiring. which means the hiring companies
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are still hiring, but -- [indiscernible] have seen it changing from contract hiring to payroll hiring. then in terms of the 10 of the contract, it may change from 12 months to six months or three months. and unfortunately because a lot of projects were on hold, we some critical roles being cut. shery: we have also seen some chinese companies launching ipo's in hong kong. is this having an impact on the labor market given the increased activity there? carol: the sentiment is really good. if you look at the hong kong equities market, the hong kong tencent index, it is still booming. more of aually see
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form of the pboc government shown support to back hong kong as a key financial sector. so we have seen some very big pboc companies listed on the exchange. they are now coming to hong kong for ipo. so what we see coming up, it could be some legal roles, cfo openings. there will be some related openings coming up in hong kong. on top of that actually, the border along china, hong kong, and macau are gradually opening up as well. the job market will pick up, yes. haidi: right. i am wondering what you have seen in terms of diminishing of talents in hong kong. because just anecdotally, there seems to be a lot more conversation about people wanting to leave hong kong
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because of the political instability and also the economic downturn. carol: what we have seen is there are definitely more people talking about relocating to another location. that is a very common subject in somekong, and we have seen emigration consultants getting a lot of inquiries. but have we really witnessed a lot of people already leaving hong kong yet? when they had multiple arcations globally, we do he if we canrt asking relocate in singapore. of peoplea big number leaving hong kong now? not yet. chang, thank you.
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united states says china's move to assert more control over hong kong as a human rights issue and it will continue to push at the u.n. the u.s. ambassador to the u.n. told me she expects more sanctions and swift action on china. belongs in the space for peace and security of hong kong and the citizens of hong kong. the recent actions of the chinese communist party and general secretary xi have given us absolutely no other choice. the fact they have broken the treaty obligations. i am goingissue that to continue to shine a light on, to continue to force into the u.n. space, because this belongs in the security council. the president is very serious. he will be taking action. we will be rbc only placing thetions on china and
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people that are indirect or anyctly responsible for actions against the citizens of hong kong. shery: what sort of actions can you see in the u.n., since you cannot officially raise it at the security council given beijing's opposition to this? kelly: it's my responsibility as president. there will be very swift actions that will be felt which will then increase the dialogue within the security council. it's an issue that i am trying to incorporate into different dialogues i'm having with ambassadors, whether it is during the council to be able to bring this up again with human rights issues with china, any area that i can bring this up within the security council to continue to raise the importance and the relevance of the fact that we care about the people of hong kong, we care about their plight, the fact that they have
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been a bastion of freedom, they are free enterprise. and this is something that is very serious. when china, the communist party, comes in and breaks the treaty. we want to make sure the uphold that treaty. shery: the u.k. has been vocal on this issue, but we have seen other u.s. allies being vocal on investigating the origins of the coronavirus pandemic and being retaliated against by beijing. how much support do you have among other members to bring this issue to the forefront? kelly: the issue of hong kong, being a human rights issue, the council cares deeply about human rights. there may be a few actors who do not, but that does not stop us from doing the right thing. when it comes to human rights, there is no better president than donald trump who protects the rights of other people. we have like-minded allies within the security council, and we speak frequency -- frequently. this during the covid pandemic, we have had to be more cognitive
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of speaking on the phone and speaking virtually outside of our meetings. and that is what we have been doing, and we are not for one second going to let there be any light between the fact we are raising issues between hong kong and the security council and other venues i have the opportunity to do so. haidi: that was u.s. ambassador to the u.n., kelly kraft. coming up, a bloomberg exclusive on how the guests u.s. banks start -- plan to start bringing employees back to the trading floors next week. the latest on jp morgan, next. this is bloomberg. ♪ ♪
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washington lawmakers launched an investigation into whether j.p. morgan chase, bank of america, and citigroup among others favored their biggest customers in a $660 billion program designed to help small businesses and minorities during the pandemic. su keenan has the story. this is a program to combat economic fallout from the coronavirus. what is the latest? su: it is called the payroll protection program, ppp. it got a lot of attention months ago. right now a democratic-led panel is out for bank records from the big banks, j.p. morgan chase, bank of america, wells fargo, and citigroup. again, this was a relief program --t was designed
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[inaudible] they were in the front of the lawn and had a special application process for these ppp loans. areasis those from rural or minorities had to use a website or digital portal that did not always work, there were significant delays. by the time many of them got to a point where they could qualify for the loan, the money was gone. this also comes as there is greater request for the accountability for the $2 trillion bill known as the cares act gave out money to help companies get through the pandemic and the shutdown. i should point out the banks we reported said they wanted to
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wait until they reviewed the letter from the committee for they gave a full response. -- before they gave a phone response. chase leadingrgan to have 50% of traders back in the office by the middle of july. how does this work? su: as you know, new york has a four tier program to bring people back into offices. j.p. morgan chase is plenty two brings b -- planning to back traders next week. they are ramping up from 20% of sales and staff in the office to 50% by the middle of next month. 50% of their trading staff. they are one of many big banks doing the same. goldman sachs is bringing back an initial group also next week. citi will bring back 5% of its office staff by early july. back to you. shery: su keenan there.
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let's get you a check of the latest business flash headlines. land rover says it is seem the beginnings of demand rebound in china. million loss $630 in quarter three march but says sales grew more than 4% from earlier in may as showrooms reopened across the mainland. also reporting improved demand in the u.s. and europe, although it still intends to cut around 1000 staff. twoi: the company that owns of the biggest game hits seeing valuation sort. isc games says fortnite close to raising $750 million, giving it a value of about $17 billion. and in existing partners will also participate. china's largest online classified business agreed to a deal to be taken private with a valuation around $8.7 billion.
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they are listed in the u.s. and is being brought -- bought by investors group. the offer is slightly above monday's quote. the founder will hold majority voting rights at 44%. shery: before we head over to bloomberg markets china open, let's check on the markets right now. we are seeing asian stocks reversing three sessions of losses for the nikkei to gain the most grounded since april. this, coming from the nikkei after it fell to the lowest in two weeks. ahead of the bg -- boj policy decision where they are expected to reinforce support for corporate financing. the japanese yen holding steady, we continue to have weakness for the dollar index. the korean yuan also gaining ground against the u.s. dollar, as the kospi is denting more
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than 3%. asx 200 at the moment getting 3.2%. energy and tech stocks are leading the gains. we are expecting the rba board meeting minutes to come out later today, and this will be a focus on the rba's evening program. this, as we get central-bank decisions across the world in asia as well with the boj kicking things off today. we will have an exclusive interview with the dallas fed president wednesday at 6:30 a.m. hong kong time, so watch out for that. coming up, asian stocks off to a buoyant start on tuesday. we will discuss the outlook after the fed's latest asset purchase move. relaxedlus, china has its foreign sector. we will discuss with a policy analyst. that is it for "daybreak asia." markets coverage continues.
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we look ahead to the start of trading. standby for bloomberg markets china open. this is bloomberg. ♪
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tom: welcome to bloomberg markets: china open. david: let's get to the top story today. central banks are back in focus today. the market mood with corporate is reviewing measures already taken to help its virus hit economy. tom: local coronavirus


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