abc news reporter karina mitchell tells us more. >> in hard-hit texas, recording 5,700 new cases. governor abbott, admitting, in hindsight, reopening happened too quickly. >> if i could have done anything differently, it would have been to delay the opening of bars. >> in houston, the highest alert now in effect, calling for a return to stay-at-home orders for millions of residents. >> let's be real. we will not get through this, if we don't look at the reality of the situation. >> the sunshine state, florida, also in a state of crisis. thousands now rushing to get tested. miami-dade county beach was shutting for the upcoming fourth of july weekend to help prevent the spread. and florida bars, banned from serving alcohol. >> all of a sudden, we can't even have a cocktail outside. i'm not even near anybody. this is really getting out of hand. >> tonight, new york state investigating a potential cluster. a florida resident who was positive with covid trafficked to the state to attend a drive-thru graduation in westchester. four others testing positive. california's governor calling

i'm karina mitchell. this is bloomberg. haidi? stocks slumped in the u.s. on thursday with concerns the recent rally has gone too far. promisingerns amid economic data. joining us is erin gibbs. ray to have you with us. is there a sense that the market is finally deciding to look at the dislocation we have seen, essentially what is going on with the real world and with valuations in the markets, or is this just a pause to yet higher levels? erin: i think today is somewhat more of a pause. we had the longest streak since february. it is certainly overdue. are creatinge valuations that we have not seen in almost 20 years. -- based.certainly we are not trading on a rational market, when you look at some of the economic and earnings expectations over the next 12 months, whether you are looking , economicyment activity, it is really about the coronavirus news, particularly in the u.s., and the reopening or lifting of lockdowns also within the u.s. you think, given how far up we have come since march with the recovery in the markets, do you see kind of a more ran

i'm karina mitchell. this is bloomberg. haidi? haidi: let's get more on the virus now with max neeson joining us out of new york. great to have you. we are coming up to six months to the day that the world health organization was made aware of this virus and out the head is yet to come even with 500,000 deaths in more than 10 million global infections. a pretty grim assessment. max: it is. we do hear where he is coming from looking at the current environment where despite having months of data about exactly how fast things can get and a better playbook on how to address the virus, still seeing rapid spread around the world. even if there is a positive side to it, it is i don't know if we will see quite, most places at least, quite the sort of acute and deadly outbreaks with overwhelmed hospitals just because we have learned a little more about keeping the most vulnerable populations safe. but once you do get to a certain level of infection in an area, those protections do start to break down so it is something to be vigilant again

i am karina scott. this is bloomberg. -- karina mitchell. this is bloomberg. australia treasurers as worsening diplomatic ties with china will not be a factor to agreement. the joe pfizenmaier says he expects 90% of australia's trading relationships to be free trade deals by 2022. he was speaking exclusively with haslinda amin. haslinda: australia has been a trusted partner in free trade agreements. bilaterally. when we came to the government, we saw 26% of our two way trading relationships covered by free-trade agreements. today, it is over 70%. the expectation is it will get to 90% i-20 22. -- 90% by 2022. thelayed a key role in conclusion of the transpacific partnership. we recently signed a deal with indonesia. hong kong and peru. other partners that are important for australia. we will continue to support free-trade because that was in australia's interest and that is in the globes economic interests as well. haslinda: when it comes to this, shed some light and what the sticking points are and realistically, when do you expect those talks to actually reac

i'm karina mitchell. this is bloomberg. optimism about the economic outlook for australia means a rebound in value stocks. jackie edwards. why are we seeing a rotation into value stocks so much stronger compared to the likes of the u.s.? this has to dof with index composition. in australia, value stocks make up a huge bulk of the index. particularly banks. banks have been surging in the last couple of weeks, on hopes that the economy will recover quickly from the coronavirus. shery: tell us a little bit about specific stocks or sectors on analysts flagged as potential winners out of this value rally. jackie: analysts have discussed several sectors and stocks that could be potential winners in this rally. andexample, energy stocks consumer stocks have fallen quite a bit since the pandemic started. they are really far off from their year to date highs. they have more ground to gain flagged.have been as potential winners on the other hand, you have stocks that have fallen quite a bit from the february market high, but have see

let's get you to karina mitchell. bank isuropean central stepping up among contraction in the euro zone with an increase in the bond buying program. expands purchase by an extra 600 billion euros to a total of 1.3 billion through june of next year. the italian bond rallied while the euro reversed losses. fears are growing u.k. will leave the eu at the end of the year and the sides are far apart on crucial issues. a deadline for agreement is at the end of the month. for friday. are set boris johnson and ursula bodily have a talk later this month. applications for unemployment a rose in the u.s. last week despite a slow down in numbers showing the economy is still being hammered by the shutdown. initial claims fell below 2 million for the first time since mid-march with data suggesting continuing claims peaked early last month. traded goods and services plunged in april to the lowest in a decade. opec-plus is set to extend production costs after a breakthrough in negotiations and could sign a deal this weekend. are said

i'm karina mitchell. this is bloomberg. haidi? haidi: thank you. president trump claims china would like nothing more than to see joe biden when the presidential election. some officials are telling bloomberg they would actually prefer former years up trump. tom mackenzie joins us with more. why would beijing want no change in the white house given the relationship of the past four years? tom: it is a valid question because the last four years, you have seen trump spending much of his time beijing -- blaming beijing from everything from trade imbalances to covid-19. the reason most of these officials we have been speaking to cited a belief that another four years of trump would result in a further breakdown of america's postwar alliance network. there's a view that trump has done a pretty spectacular job of alienating allies like the europeans in terms of the u.s. stance on germany and nato is another example of that breakdown in relations. there is a sense in beijing that ultimately that continue to break over another four years would benefit beij

karina mitchell, abc news, new york. >>> and in san francisco the christopher columbus statue has been vandalized again. you can see where vandals painted over the statue's hands and face with red paint. the statue has been vandalized numerous times over the years. columbus statues, confederate statues and others representing figures with questionable pasts have been vandalized or toppled around the country this week. of course this debate over controversial figures comes in the midst of the larger fight for equality and racial justice. now some 1,700 monuments around the u.s. are in question. here's abc's marcus moore. >> reporter: the battle over symbols of the confederacy sweeping the country. >> out of an abundance of caution we are taking down the statue. >> reporter: pulling a confederate statue nicknamed johnny reb to the ground. the statue standing high above norfolk for more than a century. also in virginia this week protesters taking a sledgehammer to the head of this confederate monument, another symbol of division, christopher columbus. statues of him vandalized in miami, e

i'm karina mitchell. this is bloomberg. haidi: let's look at the markets now. we are getting a pretty boy and -- pretty positive start to the week. jobs report, sing in addition to payrolls as opposed to expectations of a depression era decline. we are seeing gains in the neck a 225 of about 2%. the highest since february 21. the kospi at the highest since last february, adding about a quarter of 1%. in new zealand, gains extended to almost 2%. new zealand one of the out performers after -- air new zealand one of the out performers after the ceo said he did not rule out job cuts. the economy in new zealand is coming online quicker than expected after their strict lockdown. anding at u.s. futures, s&p many futures adding about half like theent, looking rally will continue. sophie: let's turn to the oil patch. prices rising, rent topping $43 a barrel after opec and allies agreed to production cuts for an extra month. our reporter joins us from singapore. what is different about this latest opec-plus deal? stephen: unlike other deals in the past, this deal has a m

i'm karina mitchell. this is bloomberg. treasury secretary steven mnuchin -- thanks u.s. will be out of recession by the end of the year. he told bloomberg a new package could come as early as next month. >> we had an unprecedented response on a bipartisan basis. there is no question that money is having a major impact on the economy. whether it is the ppp, which impacted 50 million workers or whether it is direct payments of over 160 million or enhanced unemployment, this is an important part of protecting american workers and is nice. i actually just left the senate republican lunch. we are beginning to discuss the different aspects of what another bill would look like. we want to take our time because number one, there is another -- a lot of money we have to put out. we have to make sure whatever we do is much more targeted to the businesses that are most impacted. >> do you think it is likely that sometime in july a bill might pass both houses? it's >> i do -- i do. that would be the timing. >> right now, would you say the legislation that you passed is working reason

am karina mitchell. this is bloomberg. shery: treasury secretary steven mnuchin says the u.s. needs additional fiscal stimulus, particularly for businesses struggling to reopen from virus related closures, even as he says the economy has started to recover. >> i think we are going to need legislationrtisan to put more money into the economy. as we've said, we don't want to rush into that because we want to be both careful at this point in seeing how the money is in the economy. and a lot of the money is still not in it. and two, i think we need to be more targeted at this point. shery: emily wilkins joins us now. i guess a key question is how much bipartisan agreement have we seen so far when it comes to what will go into the next package? emily: absolutely. that has been something that republicans and democrats have been trying to work out for weeks. mnuchin gave a couple suggestions. he suggested federal assistance for small businesses, travel, detail and leisure businesses. and also potentially more cash for american families. he discouraged lawmakers from doing a capital g