i am karina mitchell. this is bloomberg. yvonne: a quick look at the markets, things looking tamer than yesterday. that boost from the fed, southeast asia slightly lower. the dollar a little higher today, and stronger. yield, wes. 10 year are snapping out of yield tick up. seems like the recovery of the economy in the u.s. with the retail sales number is overshadowing second wave concerns. you are seeing pressure i comes to hong kong and china. beijing is the main focus with the capital shutting down schools after a new cluster of cases focused on this market. they massively started testing people. 1%.kospi down more than more rhetoric from the south koreans on the back of the north korean side bombing liaison offices yesterday. they say the north will pay if it takes military action. jim jon jones sister has been senseless and rude, they say. sister has been senseless and rude, they say. reunification, the piece stocks are going the opposite direction. , elevators, all falling today. with korea.t's stay t

i'm karina mitchell. this is bloomberg. shery: still ahead, robert potentialls us why distortions to the market. more from our exclusive interview shortly. up next, beijing shuts fresh markets and closes all schools as coronavirus cases jump. this is bloomberg. ♪ shery: china has ordered all schools in beijing to close as it struggles to hold a new coronavirus outbreak. the cluster has spread to neighboring provinces and people must test negative before being allowed to leave the city. chinahead to our greater executive editor. the world had thought that china had reigned in its outbreak within its borders. how serious is the situation now? as you mentioned, the closing of the schools was a pretty big setback. they just started to open over the last month or so. beijing raised its alert level to the next highest. we had just come down one level last week. it's pretty serious. we don't know the full extent just yet. from thenment experts china centers for disease control are saying the next two or three days will give a se

i am karina mitchell, this is bloomberg. that, continuing to pick up. there is a significant amount of community transmission going on, the state premier saying that they recorded another 17 cases of coronavirus and provided that update to the media at the moment. there are staying home directions for a number of coronavirus hotspots across the north and south east of melbourne in victoria. sharp continue to see the rise in cases. another 17 cases being recorded in the state of victoria. they: let's go back to bloomberg global investors. 2020 is supposed to be a big year with lots of homegrown ipos. yvonnes have interview, man asked him if he sees china's reform affecting hong kong deals in the long term. notne thing that people do sometimes fully appreciate is that the market is reinforcing each other. the more open china is, the more opportunities we actually have. open, youare more have slightly different opportunities when they are closed. it is not about a binary thing. we are very differentiated in we roles, in our fun

i'm karina mitchell. this is bloomberg. back to you. marketstaking a look at right now, we are seeing a brisk on session -- a risk on session this tuesday morning as we wrap up the first half of the year. at this point we are seeing asian stocks on course for the best quarter since 2009. still not making up for the losses in the first quarter but 1% higher on the benchmark today. u.s. futures also a little higher. nifty futures also in singapore up about two thirds of 1%. u.s. 10 year yield is still one of the best bets you have made if you were long the u.s. ten-year for the first half, at 63 basis points right now and inching close to the march all-time lows for yields we previously saw. we're also watching chinese and hong kong markets. seems to be more focused on the better data we have seen, the pmi numbers out of china, more so than what we for the last 24 hours with the hong kong national security law being passed in beijing as well as the u.s. revoking some of those trading benefits from hong kong as well when we heard from wilb

am karina mitchell. this is bloomberg. david: thank you so much, karina. bloomberg invests is going on today, tomorrow and wednesday. we will have the top voices in the finance world. today, we will hear from steve schwarzman and jim chance. we will bring it to you here on bloomberg television and radio. this is "balance of power." ♪ david: this is "balance of power." i'm david westin. on hello gloria, the secretary-general, talked to my colleague francine lacqua about what a recovery would look like after covid-19. one thatn have a third will be stronger than the second, or the second quarter will be like the trough. there is going to be some progress. it is going to look like there is recovery and there's going to be some expectations, some enthusiasm, the only question is that it is going to be a longer slog overall. why? i believe it will be more like a u. the question is how long is the bottom part of the u, why? because among other things, there is going to be more government debt, more corporate debt, more household debt. we are going to need a lo

we turn to karina mitchell. karina: some democratic governors are not buying president trump's threat to deploy the military. illinois governor says he does not believe the president -- the president has told governors and mayors they need to dominate the streets. joe biden is slamming president trump's response to days of national protest, saying he is fanning the flames of hate. the presumptive democratic nominee spoke at philadelphia city hall earlier today. president is more interested in power than principal and also called on congress to wait for the november election to begin to addressed in equity and economic opportunity and criminal justice that disproportionately affect african-americans. meanwhile the eu top executive and british prime minister boris johnson will meet later this in the stallks brexit negotiations. there is little hope they will reach a breakthrough on a future trade deal. 31y left the eu on january citizens tourging prepare to live restrictions -- the number of new coronavirus case i

karina mitchell has details. >> reporter: as the u.s. marks a new daily record of diagnosed coronavirus cases, 11 states now pausing their reopening plans. florida particularly hard hit seeing an increase friday of more than 9,000 cases in a single day. governor ron desantis trying to downplay the spike, not mandating masks statewide. >> and we're going to trust people to make good decisions. >> reporter: still floridians out of luck if they wa vit a nor now shutting theagai intexas, a similar situation. governor greg abbott in an interview with the abc station in el paso admitting, quote, in hindsight the state reopened too quickly. >> bars is a type of setting that's not made for a pandemic. >> reporter: restaurant capacity is now being scaled back and elective surgeries suspended as hospitalizations surge. icu units at capacity. >> seeing people die because of it and i'll be honest, i'm scared to death. >> this virus is out of control in houston. if we don't act to get it under control, very bad, extremely bad things will happen. >> r

abc news reporter karina mitchell has a preview. >> reporter: president trump travels to tulsa today for his first political rally since the pandemic began. some of his supporters camping out for days to be first in line. >> i mean i'm excited. this is my very first rally, so i want to get in number one. and i mean i just want to be a part of it. it's great. >> reporter: others traveling from out of state to be there. >> came about six hours, about 400 miles. back home a week ago when he announced his first rally was going to be in tulsa, we talked about we'd like to go one, hadn't been to one. so here we are. >> reporter: racial strife deeply rooted in oklahoma going back to the 1921 tulsa race massacre where white mobs attacked the greenwood neighborhood, one of the wealthiest black areas in the country known as black wall street. they murdered residents and destroyed their businesses. some current greenwood residents and business owners unhappy about the president's visit. >> is the president welcome in greenwood? >> well, for the most part, no. i say no. he's not coming in my sto

karina mitchell has those. karina: the former police officer charged with killing george floyd offered nope we'll in his first court appearance. he's accused of murder, having his knee on floyd's neck for almost nine minutes. democrats want sweeping changes making it easier to sue law enforcement including have police where body cameras and ending chokehold. meanwhile, the european central bank says it expects the single market economy to shrink by almost 9% this year before recovering modestly in 2021. the eurozone is entering its worst recession in decades, hammered by the coronavirus, triggering a slowdown and a weaker global economy. the ecb has promised to cushion the blow and president christine lagarde says policymakers will act as needed. >> i very much welcome the european parliament's call for an ambitious european response. i count on this house and this committee to design a strong and effective financial framework. at the same time, you can rest assured that the ecb will, within its limits, continu

karina mitchell. more than 1200 flights in and out of beijing have been canceled as a fresh wound of coronavirus has -- round of coronavirus has affected the city. additionally schools are shut across the city and travel curbs have been imposed on people living near the market where it began. european union is moving to protect industries from tank over by companies and -- from takeover by companies from china and other foreign powers. it could lead to a ban on companies making acquisitions were divesting assets. this could restrict the limits on state aid to businesses around the world. the indian prime minister narendra modi says he will defend his country's sovereignty after deadly clashes with chinese troops in the alias -- in the himalayas. pieceaid india only once e, but only wants peac when provoked will answer. the fed chairman is urging lawmakers not to pull back to quickly on relief for the coronavirus amid increasing debates over whether to -- servicesouse financial committee he thinks it i

i'm karina mitchell. this is bloomberg. haidi: we are just getting some breaking lines from the president. president trump saying he does not think they will have to deploy the u.s. military to cities. of course this after some controversy between the president as well as his top aides being upset. the defense secretary mark esper had been publicly just -- opposed to deployment of active-duty sources to confront u.s. protesters across the country, as trump suggested. the president reportedly considered the pentagon comments on this to be out of line. president trump is currently speaking in an interview with sean spicer at the moment, and we are hearing he does not think it will be necessary to deploy those forces. we have seen the presentation of the national guard, and a couple days ago, the president said he militarywilling to put resources on the ground. ahead, stocks extending the global rally as investors cling onto optimism for a quick economic recovery. analysis ahead. plus, signs that the next wave of u.s. job cuts

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 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 companie

i'm karina mitchell. this is bloomberg. you are up-to-date. ♪ haslinda: [laughter] bondsors in china's counting on beijing to unleash bulk cash into the system. jason pond joins us with his answer -- outlook. next, we speak to stephen cochran on the shape of the economic recovery for the region. ♪ ♪ as countries begin to reopen economies, there is ongoing fear that a second wave of infections may turn the recovery. indonesia reported a record number of daily caught -- infections. the central bank cut rates for the first time in three months. economist. analytics good to have you with us. you are of the view that several economies should be opened up faster. there's also the risk of opening up when you're not ready. case in point, india. virus cases are still escalating. how do you weigh the risk and reward? stephen: there is risk. even countries that have done very well in terms of containing the virus see some clusters. there's no guarantee that there won't be a second wave. my assumption is that in most countries, t

i am karina mitchell. this is bloomberg. coming up, an exclusive interview with the asian head of hilton worldwide. we will ask alan watts how the hotel industry is recovering and what the rest of the region can learn from china's return to normal. yvonne: fitch ratings expects only four asian economies to see any growth, and china is one of them. we will look at that report. this is bloomberg. ♪ ♪ markets refocusing on the coronavirus headlines. all of the questions on what this means for economic recoveries. fitch ratings sees only four countries in the asian region returning to positive. will outperform the rest of the world as they recover from corona 19. stephen, great to have you. the fear of the second wave seems to be settling for one of the investors. why we are seeing the selloff in the markets. and the economic perspective, the second wave, the fear of it, does it derail the economic recovery in the region? to be with you. the potential for a second or in some cases third wave of the virus is one of the risk f

i am karina mitchell. this is bloomberg. australia aims to reopen most parts of the economy by the end of july, helped by the success in containing the spread of the coronavirus. the lockdown has ended australia's almost 29 year recession free run, and jobs data show the scale of the task ahead. let's get perspective on how aussie consumers are feeling about the restart. we are joined by bcd partner monica wegner. tell us what your research has taught -- has shown about the consumer sentiment aspect. obviously, there was the pandemic, the hoarding purchases that kept retail sales and consumer sentiment data elevated across this time. what about things that are not seeing as opposed to -- as far as necessities going forward? our recorders called cautious optimism. i think that is because we did not see a huge uplift or resurgence in confidence in our study. what we saw was a slight improvement in measures such as the worst of the coronavirus. 30% of consumers are agreeing that they -- that they're spending has not returned to

i am karina mitchell. this is bloomberg. at thea: taking a look markets, asia getting a boost after they erased all losses for the year. optimism, easing of the lockdown nationwide. we are taking a look at the msci index, only up 0.4%, having its longest winning streak in two years. several other benchmarks included, the kospi and nikkei, close to doing the same. em rally unstoppable there. em stocks in asia getting a further left, 0.3% higher. encouraged by the reopening of economies likely to rebound in profitability later this year. down by 0.2%. take a look at individual benchmarks in asia. we have the nikkei under pressure, lower after the surge. overheating after its recent rally. almost all sectors on the benchmark are down. 0.3%.0, up china stocks have been out of favor of late, lagging behind stocks around the world. tensions with the u.s. not helping, either. take a look at where we are. yen.6, a big rally in the after hitting a 10 week low, japan's economy shrank less than expected. yuan weakness persisting, down

i'm karina mitchell. this is bloomberg. up, we digoming deeper into cathay pacific's $5 billion lifeline with investment and advisory group united first parties. , j.p. morgan asset management tells us where it is putting its money. this is bloomberg. ♪ haslinda: after a record-breaking rally that added $21 trillion to global stock markets, technical indicators suggest a pullback is overdue. investors will be turning their attention to the fed's latest meeting where it is expected to stay the curse. joining us is j.p. morgan asset management strategist patrick. good to have you with us. we are hearing stocks are in overbought territory. s&p in overbought territory for years. would you say that any pause we see now is just a pause, especially given a lot of money sloshing around, waiting to be put to use? >> good morning. i think that sums it up quite nicely. australia had a tremendous .un-up in stocks argue that they don't look pretty fully valued. but at the same time, there are plenty of other indicators, particularly p

. ♪ ♪ karina: you are watching "daybreak asia." i'm karina mitchell. lawmakers in washington have passed l that would penalize bill thatassed a would penalize china. it needs to pass in the house before reaching president trump. it condemns china for breaking obligations and the deal that returns hong kong to mainland rules. uncertainty over the coronavirus pandemic, the fed's latest stress test shows the lending sector has performed well, but a separate review of the virus says it has threats and vice chairman randy quarles says banks must be prudent and preserve capital. russia has begin -- has begun voting on a constitutional change that would let president putin stay in power until 2036. amendments scheduled by the kremlin were put by the virus. putin has run pressure for two decades. the change would get him to more six-euro terms. all potential changes have been approved by parliament. and india is set to be planning quality control measures and tariffs on imports from china. the two sides maintain their villa standoff in the himalayas. we are to

i'm karina mitchell. this is bloomberg. shery: fears of a second wave of coronavirus infections in the united states are sweeping across states emerging from lockdown. with new york governor andrew cuomo threatening to reimpose shutdowns to avoid a dark place if social distancing violations continue. our bloomberg editor is on the line from d.c.. we heard from sector terry mnuchin that another shutdown was out of the question, but given state governors are the one with the authorities to shut down their states, could we be headed in that direction if we continue to see this second wave? >> i think you would have to take it state-by-state and even city by city. houston, texas is one city that has thought about re-imposing the lockdown. i think it may not be the last when we hear of an weeks and months to come. in places like new york and new jersey, they really crushed the coronavirus curve. they shut down their economy tightly and took them down to quite a low level. but if you look at texas, florida, arizona, tennessee, ov

i am karina mitchell. this is bloomberg. share a. to watch continue ongoing unrest across the united states. president trump in the past hour promising a forceful response to violent protests across the country. pres. trump: if a city or state refuses to take the actions that are necessary to defend life and residence, their then i will deploy the united states military and quickly solve the problem for them. what is the latest on these developing's? let's bring in bloomberg's alisa parenti in d.c. for us. what is the situation in the capital? >> it is interesting. time..m. here at this it is light out and we are already 32 minutes into the curfew. ,he curfew has been rolled back starting much earlier. four hours earlier than they did over the weekend. determined notis to have a repeat of what occurred over the weekend, so they are starting at earlier in hopes that it will be more controlled and they will be able to maintain safety and peace throughout the city. we did see -- i want to mention our bloomberg bureau in d.c. is

i'm karina mitchell. this is bloomberg. ahead, esttill investing, more than $30 trillion worldwide. chinese companies are missing out on the action. we will tell you why. yvonne: next, beijing shuttered the cities largest fruit and vegetable market and locked down nearby housing district. more on what is stoking fears of a resurgence in the virus outbreak. this is bloomberg. ♪ haslinda: fears of a second coronavirus wave are growing in beijing, where a wholesale market has been shut and nearby housing district locked down after dozens of people tested positive. a district level official has been fired and others are under investigation over the outbreak. let's get the latest from our beijing bureau chief. we had the vice premier saying the risks of spread are high, what is the situation? the cluster is growing. they've tested over 10,000 people in the market and are also going door-to-door. basically, aggressive contact tracing trying to find anybody who's been to the market. there are about 100 cases so far, the biggest

i'm karina mitchell. this is bloomberg. still ahead, more interviews from her bloomberg invest summit. we are going to be hearing from the carlyle group ceo. who sees a tough coverage for the u.s. and china. we will hear from larry fink about his outlook for markets as we slowly end lockdowns. tom: also ahead, a look at how the coronavirus pandemic is exacerbating gender inequality in india. we speak to someone who specializes in the economics of discrimination with a focus on gender issues. this is bloomberg. ♪ tom: welcome back. carlyle group sees the u.s. enjoying a v shaped recovery and then struggling on the upward path. the ceo spoke with alix steel at the bloomberg invest global summit. there is a sharp bounce back because i do think the worst is over in terms of april being the low point, they sharp bounce back does not mean a v shaped recovery. what we are seeing in china and that is the best example of something that is close to a v-shaped recovery. due to consumer skittishness, due to some of the factors involv

i'm karina mitchell. this is bloomberg. let's look at south defense after north korea said it is cutting communications with the south, shutting down the liaison office by noon tuesday, as well as other official communication lines. seen and airline parts manufacturer gaining. take a look at the stoxx and in companiesstocks that benefit from ties between the south and north. be sellinge will their iconic downtown san francisco headquarters and moved to oakland. this as the california power giant moves toward bankruptcy. i know how expensive it is to live in san francisco and i was curious how much rent they could save by moving to oakland. it might not be much, but it is $1 billion, which is what they are seeking from the sale of their headquarters. an interesting move. pg&e moving to oakland to reduce costs. very interesting. they will return the net gain of the headquarter sales to customers. the world health organization says transmission of coronavirus people not showing symptoms is very rare. our chinato correspondent,

we go to karina mitchell. >> let's get to the first word news. north and south america account for almost two thirds of new coronavirus cases. the death toll in brazil has surpassed 50000 and cases across the u.s. surge. florida reported more than 4000 cases on saturday, a record. a victory for trump in court. justices rejected an industry challenge to the president's tariff on fuel products. place and muchin of the world. -- in much of the world. defense lawyers for a man charged with the downing of malaysian flight are rejecting claims that the plane was shot down by a missile. three russians and ukrainian are charged with murdering all 298 people on board the flight. 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. i am karina mitchell. this is bloomberg. at the coming up, back bloomberg invest global summit. jim.ll speak to ♪ vonnie: this is bloomberg markets. i am vonnie quinn alongside amanda laying. scarlet fu is sitting down with jim chanos. let's

i'm karina mitchell. this is bloomberg. korea,staying on south the sovereign wealth fund boss says a potential second wave of coronavirus could cause fresh market turbulence because the central bank has few policy weapons left to deploy. that disruption to supply chains also means it will be living in a less globalized world. thatfirmly believe covid-19 is a paradigm shift. investmentlooking at relating to infrastructure and supply chain and health care. i think these already play a big part in how our lives will change. [indiscernible] we need infrastructure and to focus on these. toneed to pay more attention social factors. for the supply chain, it looks like less globalization. companies want to secure the mystical regional suppliers. -- secure more domestic regional suppliers. andre in an aging society we just went through a pandemic. things need to improve. , we will care more about the health care industry, especially biotech. haidi: how does that get threatened with geopolitical tensions with so much focus on tech, 5

let's turn to karina mitchell with the first word headlines. said to have is told major companies to pause some purchases of u.s. farm goods has tensions with washington escalate. they have been told to suspend orders of soybean and pork and assigned the phase one trade deal may be in jeopardy over hong kong. the premier has pledged to stick with the deal, but china security law is straining relations. hong kong retail extended its slump in april as the coronavirus suppressed travel and demand. retail sales fell 36% from a year ago, from $3 billion, a 15 consecutive monthly decline. all the marginal less worse than the median forecast. retail sales fell more than 37%. hong kong reported its worst quarter on record in the first three months of the year. gaming revenue in macau plunged in may as casinos await the post virus reopening. growth gaming revenue was $221 million, down 93% from a year earlier. slightly better than the median estimate of 95% decline. major sasol in a straight month of falling with macau already battered either trade war

i'm karina mitchell. this is bloomberg. >> staying with the followed from george floyd's death, republicans in the u.s. senate are drafting legislation to tackle police practices, release of a bill by democrats. emily will constraints us on the line from washington. is this -- emily wilkins joins us on the line from washington. you still have to see what republicans are going to propose. a party thats is is big online order, which you have seen a lot from president trump in the last few days, but they have put together a task force. the leader is senator tim scott, the only black republican only serving -- currently serving. require a will law-enforcement agencies report public injury,e, that is something we saw in the democrats' bill, we have seen republicans come out supporting a ban on chokeholds, also a point of agreement with the democrats. >> even as the protests simmer down, president trump continue to feed the flames with this instantiated sweet. -- unsubstantiated tweet. >> this was a video of a

this is bloomberg. ♪ karina: i'm karina mitchell with bloomberg first word news. joe is slamming president , saying he isse fanning the flames of hate. the present of democratic nominee spoke at city hall today, accusing the president of being more interested in power than principle. biden called on congress not to wait for the november election to address inequities in economic opportunity and criminal justice that disproportionately affects african americans. the european union's top executive and boris johnson will meet later this month for talks that could give momentum to the stalled brexit negotiations. negotiators resumed a fourth round of talks today but there is little hope that they will reach a breakthrough. on januaryft the eu 31 but remains in a transition period until the end of the year. italy is urging citizens to work together to revive the country as it bears to lift restrictions on domestic travel. with a number of coronavirus cases continuing to decline, italians will be able to travel freely around the country again beginning tomorrow after al

i'm karina mitchell. this is bloomberg. son at: masayoshi softbank making these comments, talking about him donating all this year's salary he received to softbank charity, saying his salary is zero, to take response ability for the debacle -- responsibility for the debacle that was wework. "to keep myself under control." he is aiming to control the buybacks, all coming from muscle you she's on at softbank -- masayoshi son at softbank. tom: the coronavirus worsened after a dismal 2019 in china when a trade dispute with the u.s. and deleveraging weighed on growth. but private equity giants have benefited from the turmoil, snapping up assets after valuations plunged. oaktree capital is also building billion-dollar stockpiles. carlisle on the other hand -- carlyle on the other hand is more wary. joining us is partner at a u.k. based firm. us thisu for joining morning. run us through how the pandemic impacted your portfolio companies to date. >> thank you for having me. the covid-19 pandemic certainly has been difficult this ye

i am karina mitchell. this is bloomberg. look at markets right now, it seems like we continue this downtrend here with the reopening from that lunch break. once again extending those declines. around 22,081ing for that benchmark. the topix is down 7.1%. we have seen a cluster of cases in tokyo. that is raising dealer for many investors out there. we are seeing a percent decline. the philippines storming the laggard. least, the surge that we have seen, we have seen some of these asian currencies a bit up. we have been watching where yields are. it has been a mixed bag when it comes to asian bond markets. we have seen the yields at the lowest in a couple of weeks amid this risk off session. this all mean for emerging markets? assets could be posed to see some big gains with the fed yielding for control policy. simon.et more from here is how it looks on the headlines blog. you have a pretty positive forecast when it comes to asian currencies. that is despite the volatility we have seen over the past few days. how long do you th

i'm karina mitchell. this is bloomberg. shery: u.s. help agencies are gearing up for flu season complicated by the coronavirus pandemic. with a virus excited to continue for some time, officials say it could put tremendous strain on the health care system if coupled with influenza. whoing us is max neeson covers health care, biotech and pharma. it seems these health care officials, whether it is the cdc fauci, theyr dr. don't think a vaccine is imminent so what can states do in the meantime? max: yeah, it's obviously a difficult situation that is going to go on for some time. when you have ongoing high incidence of the virus and keep opening up, you get more and more cases which is what we are seeing. in the meantime, what states can do, what they should have been doing all along arguably, building out contact tracing efforts. targeting the places where there is the most risk of spread. that being crowded, indoor areas. places where there are a lot of people being less than cautious. what's pretty clear is that they have not fully take

i'm mitchell -- i'm karina mitchell. this is bloomberg. ♪ haidi: still ahead, a rally that hinges on the next opec u.s. meeting. we speak with katie baize later for her view. but up next, protests in the u.s. continuing as president trump backtracks on his threat to deploy the military. this is bloomberg. ♪ ♪ protests continue on a ninth consecutive ninth across america, although the level of violence appears to be falling. the administration is struggling amid word of an internal divide with secretary of defense mark esper, who rebuffed the troopsnt's desire to use . know, on where the troops are? we have seen conflicting reports on whether they are going back to their base. give us the latest on these developments. >> what we heard this morning was that defense secretary esper, amid mounting criticism over the president's threat use active-duty u.s. military to over protests in the u.s. what we saw at lafayette square outside the white house monday, where federal law enforcement cleared out, using proper spray us

i am karina mitchell. this is bloomberg. shery. shery: we have talked extensively about the stock disconnect with the economics and earnings fundamentals. here is one where -- one more way to show it. this shows the s&p 500 in white, forward earnings in blue. it may be a long time before the two lineup. let's get some perspective from the global chief economist and head of global macro, frances donald. us.t to have you with will these two lines ever lineup as long as we have the fed aggressively supporting the market? not only the fed, but basically global central banks. frances: central banks are a key part of the story, but from my perspective, where we are getting the real policy put on the fiscal side of the picture, and because of that, i am a little bit more worried about how stocks and broad risk sentiment are going to be performing. we know central banks have the capacity to write more stimulus, to stay on hold. they are going to do that. what seems less certain to us is a significant segment of the rally. do we get package

i'm karina mitchell. fears drawing of a new wave of coronavirus infections in the u.s., the governor of texas warning a massive outbreak is underway. cases are spiking across the country, forcing governors to reassess plans to reopen state economies, despite pressure president trump. a new model shows u.s. the tallies surpassing 180,000. meanwhile, the monetary fund is theeasingly pest a mix -- international monetary fund is increasingly pessimistic about the coronavirus and expects gdp to shrink on must 5% this year, more than the 3% seen in april, with growth falling slightly in 2021. it fears that hit to the world economy will top $12 trillion. >> we have stimulated a second wave that would generate zero growth in 2020 one, as compared to 5.4% in 2021, which we are projecting. that is the classic al-shaped -shapedovery -- l nonrecovery, that would be a dire outcome and bring us closer to depression levels. warned the imf also about the crisis a decade ago, seeing a contraction of almost 6% as coronavir

i am karina mitchell. this is bloomberg. yvonne: let's take a look at the markets. we are still saying a decent day for risk as we look ahead to what has been going on with the trade situation. president trump, when it came to ratcheting up tensions, open the door to de-escalate tensions with china. you have pmi numbers coming across. we saw it bounce back in business activity. -- the hanghere seng is where we see the biggest gains. futures, they are back in eked out somethey gains earlier. we are coming down to the indian open as well. we are set to follow suit, nifty futures up 1.5% higher. the dollar seeing a bit of a retreat. it will help with some of the currency like age fx. -- asia fx. guest.et to our next she says the dominant issue remains the recovery from the virus lockdown. thank you for joining us. we just came off of two months of solid gains for asian equities. how are you adjusting your allocation now? morning. good it has been such a strong run-up in the market the past few weeks that we are a little more weary -- wary now. we have seen a number of

mitchell, abc news, new york. >>> new developments, state officials have halted a scheduled transfer of at least 100 inmates from san quentin to another prison after two of the men tested positive for covid-19. right now san quentin has about 500 mates who have tested positive for covid-19. the virus has also sickened dozens of staff members. during an online discussion on the subject this afternoon, one former inmate worried about off-duty guards and other san quentin workers who could unknowingly spread the disease to people in marin county and beyond. >> as soon as you come off work, you take off your little jumpsuit, maybe stop at a gas station, maybe stop at the local trader joe's. and so these people, they're in your community no matter what. even if they're not actual residents. >> prisoner advocates claim covid-19 spread to san quentin because the state transferred inmates from a facility with a high infection rate. >>> happening right now, it is the first day hayward has shut down its downtown to cars to allow for morale -- more al fresco dining. they are only now open for w

abc reporter karina mitchell. >> president trumpo t tulsa today for his first political rally since the pandemic began. some of his supporters camping out for days to be first in line. >> i'm excited. this is my very first rally. so i want to get in, number one. and i just want to be a part of it. it's great. >> others traveling from out of state to be there. >> came about six hours. about 400 miles. back home, a week ago, when he announced his first rally was going to be in tulsa. we talked a about we'd like to o one, so here we are. >> going back to the 1921 tulsa race massacre, where white mobs attacked the greenwood neighborhood, one of the wealthiest black areas in the country known as black wall street. they murdered residents and destroyed their businesses. some current greenwood residents and business owners, unhappy about the president's visit. >> is the president welcome in greenwood? >> well, for the most part, no. i say no. he's not coming in my store. i'm shutting down. >> unequivocally, the president is not welcome in greenwood. >> the president spoke to reporters, as he l

taking a look at the first word news is karina mitchell. karina: coronavirus cases continue to rise around the world with total infections now about 8.8 million, with 467,000 people now dead. cases in several u.s. states jumped, with one researcher warning of what he called a forest fire of cases on the horizon. spain has been hit hard by the pandemic, but is now lifting restrictions on visitors from the eu. meanwhile, china is suspending poultry imports from the tyson foods plant in arkansas after hundreds of employees tested positive for the coronavirus. all products en route to china or already arrived will be seized by customs. this could undermine the u.s.-china trade deal. president trump is planning to restrict employment visas, which could affect up to 250,000 people seeking to work in the u.s.. trump told fox news he plans to put curbs on several different visa categories, including the h-1b program for high skilled workers. he says there will be very few exclusions. an early south korean trade figures shows an easing of export dec

abc's karina mitchell has more. >> reporter: this morning, new concern about summer travel with covid cases on the rise in the south ands with. new york, new jersey and connecticut say people traveling from eight states must quarantine for 14 days. >> probably necessary. i don't know. it was very different down in florida than it is up here. >> reporter: alabama, arkansas, arizona, florida, north carolina, south carolina, utah and texas are on the list. >> people are going to stay home. you're going to be in america. international will come later. but right now it's domestic travel, closer to home and then venturing out a little further. >> reporter: andrew brown from new york is flying to alabama. >> i'm worried about catching it on the plane on the way back. >> reporter: air travel has slowly been rising since hitting a record low in the spring, but with anxiety creeping back in, aaa predicts 97% of travel this summer will be by car. >> i think that's in correlation with the increased number of cases that we're seeing in the southern states. >> reporter: the new travel restrictions

abc's karina mitchell has more. >> reporter: this morning, one of the former minneapolis police officers charged in george floyd's death is out of jail. thomas lane posting $750,000 bail as new details emerge about derek chauvin, the former cop facing the most serious charges. prosecutors say before his arrest, chauvin was considering pleading guilty to civil rights charges and to murdering floyd but the deal fell apart. [ crowd chanting "put your fist in the sky" ] >> reporter: wednesday night floyd's brother marching down black lives matter plaza in washington alongside lawmakers and protesters. >> thank y'all so much. >> reporter: earlier giving powerful testimony on capitol hill. >> i know that he knew him. everybody knew him. the mayor knew him. killed my brother just because he didn't like him and it has to be racist. it has to be something to do with racism. >> reporter: as calls to defund or disband police departments grow, former vice president joe biden says he's against defunding. >> this is an inflection in american history, a moment where we must make substantive changes now

i'm karina mitchell. this is bloomberg. looking at japan, reaction to the central bank and what they did was up there estimated size of what they need to fight the virus, leaving interest rates and monetary policy untouched. revising those estimates, as well, and they see the size of the overall package of measures to combat the virus at ¥110 trillion. a tearkei on eight -- on up. the broader market gaining ground. look at what is happening elsewhere, the hang seng up nearly 3%. unemployment figures out later today. the kospi at the moment, also to thereat guns, 4.7% upside. that is where we are with regards to the reaction from the markets and their verdict on what is going on with the estimated overall package of virus measures increased to roughly one trillion u.s. dollars. as for the nifty in singapore, the futures contract, we should get price discovery soon. the rupee at tad weaker. there you have it. -- a tad weaker. there you have it. haslinda: more on the market action, following the fed announcement on bond buyin

i'm karina mitchell. this is bloomberg. shery: let's get you a check of the markets trading across asia. we are headed for the first weekly drop in asian stocks. the nikkei and the kospi, falling the most since april 1. energy stocks are leading the decline. samsung is the biggest drag on the kospi. we are seeing the worst two days for the index since mid-march. downstocks are still more than 2%. energy is a big loser today. oil prices, again in the spotlight after plunging more than 8%. the global selloff in stocks wave of second -- a second wave of coronavirus the drop wextends saw in new york. sue k. has the latest. not a lot of good news when it comes to the oil market. just concerns about the global economy. >> yeah, the combination of those factors is really sour sentiment. we are seeing an end to the winning streak in oil. , nowatest drop in the wti on track for the third weekly drop since april. as you said, grappling with record high inventories of supply levels here in the u.s. and uneven demand rebound. particula

i'm karina mitchell. this is bloomberg. this hour,till ahead we are speaking with keki mistry about plans to raise as much as $1.8 billion, and challenges faced by the indian finance sector. marie de ron, warning advanced economies will see the entire debt burden because of the coronavirus. we will get her insights. this is bloomberg. ♪ ♪ haslinda: covid-19 will raise economies debt burnings sharply. but the ratings agency says government debt affordability will likely remain strong in a low rate environment. let's discuss this with marie diron from moody's investors. good to have you with us. mainly because of the pandemic. can we view it as a one-off? an invitation on the ratings outlook for the debt bound the nations? marie: thank you for having me. what we keep looking at based on our projections is a big increase in debt burdens across economies in general. at the moment we are defining that to about 20% of gdp this year on average in a range that goes from about five for countries like sweden and switzerland, to 2

i am karina mitchell. this is bloomberg. you., over to haidi: let's get more on china's efforts to tackle the virus, even as reports of a second wave of infections rise. our next guest says that even --hout the virus, economy the chinese economy is destined to implode on its own. kevin smith, thank you for us.ing you say china is run by its italian government responsible for running the largest ponzi scheme in history. this would not be the first time someone has made this call about china. but the thing is, with a totalitarian government, as you say, they have all the tools at their disposal to ensure that the bubble does not burst. kevin: sure, that is what a lot of people think. but there is a lot of other examples in history of companies countries that have had some economic downfalls including currency crises. it is not just china that has a problem today. the u.s. has an extreme economic imbalance, too. and there is a debt bubble globally. but china has $42 trillion of assets in the banking system, truly the largest cr

and karina mitchell. this is bloomberg. haidi? haidi: new data shows coronavirus cases in the u.s. rose at the slowest daily pace in march. meanwhile, the who was walking back comments made on monday that it is refer people who have the virus but do not show symptoms to then pass it on. get some opinions from max, who joins us. they said asymptomatic cases don't seem to be contagious. there is confusion whether this is actually the case now. max: yes. what this feels like to me is a case of one comments from a who official getting quoted come a than people sort of running away with it. what she was actually referring to was a comparatively small subset of people who show no symptoms whatsoever and never show symptoms, as opposed to if you include people who have a phase where they develop symptoms a little bit more slowly, but then they develop symptoms later on. on those people, it is pretty well understood, they do have a good chance of affecting people. also that, made by the who about asymptomatic people, that small fraction of that particular group that never showed symptoms,

i'm karina mitchell. president trump has given his most forceful statement yet on ties with beijing. the u.s. could pursue a complete decoupling from china. robert lighthizer said a full decoupling was not a reasonable policy option. the president did not specify. secretary of state mike pompeo says this week's talks with -- global news 24 hours a day on air on down quick take by bloomberg powered by more than 2700 journalists and analysts in more than 120 countries. this is bloomberg. back to you. california, florida, and arizona have all reported record and single day increases coronavirus cases. hospitalizations in texas have climbed for a record seventh straight day. our health care reporter joins us now. the surge in cases coinciding with the reopening of many of the states. >> thank you for having me. what's important to note here is that while states have been reopening for over a month and a half now, many of these states are also seeing increasing cases. it's not totally clear that reopening nece

. ♪ karina: you are watching ."aybreak asia i am karina mitchell. the european union is moving to protect its industries from takeover by companies linked to china and other foreign powers. it could be formalized later this year. some companies making acquisitions or forcing them to divest assets or the plan would effectively extend the e.u.'s strict system of limits to businesses around the world. in other news, narendra modi says he will defend his country's sovereignty after deadly clashes in the himalayas. soldiers died at the disputed mountain border. modi says india only wants peace but when provoked will give an appropriate answer. talks are underway. north korea released its pictures of the destruction of us jointly amazon -- joint liaison office, warning of potential action against the south. the office was open to two years ago and was not occupied at the time of the explosion. north korea says it will send troops to the border, reinstall guard posts, and reduce military exercises. the fed chairman is urging lawmakers not to pull back too

i am karina mitchell. this is bloomberg. president trump's first campaign rally drew far fewer supporters than his team had promised, failing to shake off the turmoil overshadowing his reelection bid. .> you are warriors we had some bad people outside. we had some very bad people outside doing bad things. i stand before you today to declare the silent majority is stronger than ever before. shery: ros krasny is on the line. that rally was not the big campaign reset president was hoping for. ros: it really was not. the crowd was smaller than campaign that trump's promised an overflow crowd and tens of thousands waiting out the. they canceled a second speech trump was going to give to the overflow crowd. there was no attempt by the president to offer conciliation, to reflect on things happening in the country in the last three months, the coronavirus epidemic, racial protests. more of his usual grievances about the media and democrats. he stood for almost two hours, kind of rambling. campaignggesting his is worried and may be t

>>i'm karina mitchell with the first word headlines. new york city will lift its protest curfew as it prepares to reopen after the pandemic. andrew cuomo says covid-19 is the one variable for the city and they are calling on all protesters to seek health checks. the weekend saw some of the biggest demonstrations across the u.s., most of them peaceful. minister of singapore says the future will look very different post covid-19. in his national addressed, he said the city state will allow be returning to the interconnected global economy that existed before lockdown. and with travel hammered the future will be more tough. singapore spent the equivalent of 20% of gdp on its response to the virus efforts. russia is investigating a massive oil spill in siberia. an estimated 20,000 tons of fuel leaked from a storage plant outside the city, 1800 kilometers northeast of moscow. it is operated by company accused of making the area one of the most polluted places on earth. president vladimir putin only learned of this field -- the spill via soci

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