Halston, 12. 5 . San miguel withdrew its tender officer for the company as the timeline ran out. Ayala down. 31 . The overall composite half a percent higher. Lets move things along and get to new york and look at some of the first word news. Global Coronavirus Infections continue to rise and now top 4 million with jess at about 280,000. The u. S. Has by far the most cases and fatalities with 1. 3 Million People infected and almost 79,000 having died. The virus was first reported in china and beijing has confirmed about 83,000 cases with just over 4600 fatalities. Saudi arabia says it is planning to cut spending and triple vat to 15 as it looks to offset the impact of the virus. The finance minister says the pandemic combined with Falling Oil Prices has cut revenue input and president and pressure on the public purse. The kingdom reported its biggest surge of new cases sunday, rising to almost 39,000 confirmed infections. To apply more powerful stimulus. The pboc were released a quarterly policy report saying it will pay more attention to growth in jobs and says anna terry policy will remain flexible and prudent, but says Monetary Policy will remain flexible and prudent, but no word on extra liquidity. It appears the magic is returning to Shanghai Disney, the park reopening after an almost fourmonth closure because of coronavirus. The theme park closed january 25 and reopened monday at one third capacity. Rides andtancing at restaurants and other facilities. Tickets have sold out for most of the first week. Is calling for the restoration of the mandate two years ago. Its their first joint statements since february. They say the current government was not the voters choice, doesnt have a legal mandate, and they dont recognize its legitimacy. 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. Im Karina Mitchell. This is bloomberg. Aprils u. S. Job numbers were in many ways the worst of the postwar. Here with theis bleak total and what might happen next. The labor market probably has not seen the worst yet. Why is that . Kathleen its interesting, isnt it . These numbers are pretty bad. Lets look at them again. Downave nonfarm payrolls 20. 5 million, 10 times greater than the previous record bad a number in 1945, when the u. S. Was coming out of world war ii. Unemployment at 14. 7 . Same comparison, for a norse a worse number, you have to go back to the 1940s. The president of the minneapolis fed said the worst is not over for the labor market. Lets listen. The worst is yet to come on the job front, unfortunately. States really is, as a start to reopen and businesses start to reopen, obviously we need them to reopen safely, and we need to monitor and look for signs of things flaring back up again. We may be in an environment of gradual relaxing and having to clamp back down around the country is the virus continues to spread. To solve the economy, we must solve the virus. Kathleen must solve the virus. He said he thinks Congress Needs to step up and do more. Hes not the only policymaker thinking that needs to happen. Wages,ople looked at paychecks, up 4. 7 in april. The previous monthly high was 0. 6 . But if you look at the bloomberg list of which industries cut top on thest, the list, down 39 , leisure and hospitality. Behind that, wholesale and retail workers. They are the lowpaid workers. You take out lowpaid workers and you end up with a bigger monthly wage increase. Bottom line, jobless claims, sony things pointing to the fact that when we get to make, we may,have two may to we will have another bad jobs report. Rishaad one about more stimulus, saying they will have more powerful policies to counter the pandemic . Kathleen i thought it was fascinating, i think this report people have been critical of the peoples bank of china for not being more aggressive. This goes back to when the virus was hitting hard in china. The lockdown was at its toughest. But they are acknowledging these unprecedented challenges from the virus in their quarterly Monetary Policy implementing report. To trying to use more powerful policies. A say they will pay more attention to growth in jobs targets and multiple targets they are watching. They talk about their prudent policy, now it will be more flexible and appropriate. They will maintain liquidity at reasonably ample levels. They say they will avoid excessive the quiddity. Think of central things around the world. No central bank can imagine too much liquidity. They want to keep financial stability. They say they will guide the loan prime rate lower. I think its interesting they say they will keep china as one of the few Central Banks doing normal Monetary Policy. I guess they are saying we dont necessarily need to do bond purchases and take our rates negative. They are confident they can maintain price stability because the fundamentals of chinas economy dont hinge on inflation or deflation. In that case, they are lucky. I think most Central Banks are worried about deflation. They are also saying that the Global Economy is on a recession track now, but the virus may exceed expectations. The lack of global demand, the lack of countries to buy their goods is important for many asian nations, but clearly this is ready to dot more and step up. Who knows what is coming. Rishaad kathleen, good stuff. Our global academics and policy editor economics and policy editor. Out of south korea, nightclub related coronavirus cases. As of noon yesterday, there were 54 of them. They are reporting at the moment they have 79 related to nightclubs in the capital did thats where we are at the moment in the capital. That is where we are at the moment. Haslinda and we have the pca retail isnas april down 5 year on year. It fell about 5. 5 . Globale have ubs management Dominic Schnider with his outlook on commodities. Later, karen harris joins us for what to expect when economies exit. This is bloomberg. You are back with impaired markets. Commodity investors Bloomberg Markets. Have beeninvestors watching demand. It is toouest says early for broad commodity exposure. Dominic, great to hear from you. Lets start with gold. It has been a bit perplexing. When we have a situation, a pandemic, you would think there would be a rush to precious metals. It has depreciated a bit but not like what we saw in 2008 and 2009. Dominic you need to look at it from two angles. Asset prices have fallen quite a bit and gold is up around 10 . With that in mind, it has done extreme the well, particularly if you look in relative terms. Investors have piled in. If you look at the latest data from the world gold council, etf investment has been extremely strong. Outside etf, not much going on, putting much decline everywhere, but investors have overall allocated and gold has delivered diversification. The reason they are not overly bullish at this point is because expectations have not gone more negative. I think that is a factor to watch out for. Given the jobs report we saw on friday, you would have thought perhaps people would be looking elsewhere, and other currencies rather than the dollar. The dollar is important with an inverse relationship. The is at the moment on back burner, wouldnt you say . Dominic thats true. People, when it comes back to gold, they are looking at the development. Its going in a direction that is highly concerning. 140 of gdp. Gdp, the fiscal deficit this year could be north of 20 of gdp, and next year potentially double digits. These are numbers that people might worry at some stage beyond shortterm liquidity needs, which boost the dollar. These concerns and ongoing investment into gold. Really thestage, dollar starts to weaken quite a bit. Similarly, what weve seen in the gsp, after the last peak in the Third Quarter 2009, growth recovered and risk sentiment improving. People realized Monetary Policy would stay loose a long time with financial repression being a big topic. I think you will see the next leg up, and thats why looking is the price it is. Haslinda there is divergence in the commodity space itself. Looking at prices on chinese exchanges, they are way higher than in the u. S. Assumedly that has to do with how the two economies are dealing with the crisis, to do with the virus and reopening. When do you see more of a convergence . Or will that not happen . Dominic there will be a convergence. I think it happens somewhere in the second half of the year. I think we need to be honest and not be too precise. We all dont know how exactly we come out of this because of things changing. I think these policy changes, its not clear how strong the economy will be in the shortterm. You see that in china, the economy is recovering to normal but it takes longer, and you might need a little more fiscal support. Or monetary support. You heard that from the pboc over the weekend, signaling they probably need to do more if they want to keep recovery at a decent speed in the second half of the year. There is still a lot of support needed for the economy to come back, but toward the end of the year, we will have a synchronized picture, and i think you will see base metals going up to high single digits, oil back toward 40plus, that something to think about as the market rebalances. ,he convergence is happening and really looking toward the Fourth Quarter to be one of the key time periods where you will see broad strength in Commodity Prices. We are looking at a broad index for Commodity Prices to accelerate by 20 . Haslinda just one headline here, argentina is set to extend its debt deadline until may 22. Argentina extending the debt deadline until may 22, heading for the ninth default. We are already talking about probably rebalancing by june. Is that too soon . Considering we are seeing uneven recovery in economies around the world. Dominic we are still looking at basically for the second quarter, and oil market that is oversupplied roughly by 10 Million Barrels per day. In the Third Quarter, we will probably have a balanced market. For us the rebound is not so much june, but the Third Quarter. An element of caution to think about when it comes to some of the Commodity Prices. Toward 20ome back quickly as inventory challenges persist. Lets be clear, we havent been talking about a second wave of new infections and i think that is clearly in asset prices, particularly not priced in. I think it will be quite challenging. Theill be the backdrop in Third Quarter and could lead pullback. Rishaad what asset class are you most constant in and what particular in that asset class . Dominic depending on your risk appetite, but right now we are overweight Investment Grade bonds in the u. S. We think the spread could tighten and there is a possibility headed toward 150 basis points on the spread. Thats an area where i think giveneward is attractive Monetary Policy. If you have a greater risk appetite, you could look more into the highyield space. Overall, equities more on the neutral stance. In asia we have been lacking but we will recover nicely. Asia, andrweight overweight china. Here you have an interesting backdrop. Things have gone up, prices going up, but not rallied in all regions. That is the focus from our side. And obviously we do like gold, a nice diversifier in a portfolio. Rishaad always a pleasure, have a good one. Just marking one thing, we looked earlier about suspension on the miller stock exchange. Were looking at halston and san miguel. Currently to see a Little Movement to the upside for san miguel, but halston is basically 2 down with san miguels division withdrawing ender. The deal has fallen by the wayside. This is bloomberg. Haslinda raised its Sales Outlook after seeing unprecedented increase in demand for its cleaning and disinfectant products amid the coronavirus pandemic. The chairman spoke exclusively to bloomberg about how they are managing. We have increased our staffing, we have hired about 250 people since the pandemic started, to meet the increased demand. The biggest thing for us is in the disinfecting sprays, where we are seeing unprecedented fornd up to five x disinfecting products and other in central essential products that people enjoy, whether that is trash bags, water filtration. Our priority is getting products the people in Health Care Facilities and we are running cleaning plans 24 7. We are turning out about 40 more volume compared to prepandemic times. We are continuing to add disinfectant products. We are bringing in an additional external manufacturer online, helping us provide consumers with disinfectant product every month and reach meaningful improvements by the summer. Likesinfectant products Hand Sanitizer and toilet roll, which has come back to meet the increased demand, disinfectant products are resistant to the call. He put stuff in the shops and it is sold out within 30 minutes. How do you get to a position where you are able to meet increased demand . Up our ownsped production lines significantly. One way of doing that is by simplifying our sku lineup, meaning there will be fewer changeovers and we can run our plants faster. And we have a series of relationships with companies who speak,use as, so to manufacturers to add to our capacity. We have already started to invest in increased longterm capacity. We have made strategic anothernts to add production line, to increase the capacity, which will not help over the next 69 months, but will help over the next 1218 months. We can prepare for what think will be a significant increase in ongoing demand for disinfectant products as of next summer. To that point, what are the retailers telling clorox in terms of what they are expecting in terms of demand Going Forward . At the moment, we see it for an obvious reason, and our retailers expecting it to last through the summer and the end of the year . The bulk of the conversations we have with retailers at this point our meeting coming meeting current demand. I want to thank them for the incredible collaboration we are forgetting our products seeing adding our products to people. Areink many retailers seeing Consumer Engagement with disinfectant products will be higher for the foreseeable future, and we are beginning to have conversations with retailers on how to plan for that, and how we could have the right supply in the future, and how we can also have, as people go back to retail stores, whether that is physical stores or digital stores, how we can have the right assortment, how we can have the right shelving to meet future demand. So expect heightened gauge met with retailers and expect the ability to supply what will be an increase in demand in significantly improved ways as of this summer. The clorox chairman and ceo there. Of gainst a story across asian equities, led largely by hong kong. Topics thine gains in the topix, headed into bull market terrain. Haslinda looking at some of those companies out with earnings this week. Tencent firmly in the money today, they have weathered the virus pretty well. The virus has barely dented its growth. We are also keeping a watch on alibaba, up by almost 3 right now. Once the dust settles, alibaba is expected to pose bigger competition to tencent. A rival to ating tencent app. Or to come. This is bloomberg. 10 29 in hong is kong and shanghai. Im Karina Mitchell with the first word headlines. U. S. Vice president mike pence has gone into selfisolation after an aide tested positive for coronavirus. Sources say the diagnosis came friday, and he did attend a scheduled meeting with President Trump. They have repeatedly tested negative for the virus, including on sunday. A Spokesman Says the Vice President will be back in the white house on monday. Meanwhile, the u. S. Labor market is in its harshest downturn on record with more than 20 million jobs cut last month as the Unemployment Rate tripled. Before the coronavirus pandemic brought the economy to a grinding halt, the rate was about 3. 5 , the lowest level in five decades. Aprils was the highest since the great depression, and there are warnings it will get even worse. The worst is yet to come on the job front, unfortunately. As these states start to reopen and these businesses start to reopen, obviously we need them to reopen safely and we need them to monitor and look for signs of things flaring backup. We might be in an environment of gradual relaxing and having to clamp back down as the virus continues to spread. To solve the economy, we must solve the virus. Karina south koreas top trade official has warned that the virus pandemic will hammer exports even harder than the financial crisis did a decade ago. The minister told bloomberg conditions are tougher than in 2008, and will prompt a major rethink about Global Supply chains. However, he says a realignment may favor korea as more Companies Look for sourcing. Australias budget deficit will go out to 7. 2 percent of gdp this fiscal year and through june next year, as revenue collapses and spending soars. They are taking a series of staggering blows. Revenues are expected to pull 6 this year from its december forecast. Meanwhile, Hong Kong Police arrested at least 10 people as prodemocracy groups attempted to rally. Demonstrators gathered in several districts in defiance of social distancing measures. Local media says police fired socalled pepper balls, projectiles that are used to disperse crowds. Reports say two teenagers needed medical attention. 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. In Karina Mitchell. This is bloomberg. Haslinda . Will do a check on the markets. Asia positive territory, but volumes are fragile. We have city questioning whether investors can continue to ignore higher Economic Data, including the u. S. Jobless rates, which are at the highest since the great depression. We have the benchmark up by about 1 . Nifty futures pointing to a higher open. And we are tracking the dollar, a tad weaker. We are tracking the dollar on expectations the fed may be heading to negative rates. Negative rates not good news. Take a look at where we are in tencent. The index up by 0. 4 . Above trading above its 100 day average, the largest rally to this level. The rally did not last. The indonesian index up by 1. 3 . Thank indonesia saying today it rates if the cut market has stabilized. There is also room in the fiscal side, so indonesia saying more can be done. Thats take a look at where we are. Lets continue our conversation on bloomberg. As the u. S. Prepares to return to work, the white house is looking to countries such as austria and south korea for reopening ideas as governments balance the economic damage with a second wave. The u. K. Has changed its message from stayathome to stay alert, while spain, france, germany, and italy are all relaxing more restrictions from today. Lets discuss different strategies with karen harris. She joins us from new york. Good to have you with us. Just wondering, as economies reopen, how prepared are they . Already, we are seeing numbers are rising in south korea. Opening the economies will not be linear, other than going back to yo work is not just turning on the lights and camping out with masks at the door. We will collectively struggle with a completely unknown situation where very little data is solid. We dont know the infection rate, we dont know the death rate. There is very little we have determined about this virus. So it really is going to be a matter of advancing, experimenting, retrieving where experiments dont work, adapting, and repeating that process. Haslinda karen, the big challenge is staying open. What measures need to be in place to ensure that . Guest there are several types that both economies and businesses will have to think about. For the economy as a whole, we will need to look very specifically at the different metropolitan areas and their own circumstances. Sitting here in manhattan, we can see it will be much harder to open up new york city, given the dependence on public transport and the density of population. Aery one of those creates flutter event. South korea, which by many measures has handled this epidemic very well, being to having aictims super spreader in their newly reopened district in south korea, where people socialize. Patients in the churches months ago. The implications of that are reopens best managed will struggle with mass gatherings. It will be interesting to see how disney shanghai goes through that, given what they have put into place. As companies and countries reopen, the Top Priorities would be to ensure the safety of the workers. Bring to light ethical issues, even privacy issues, legal issues. How do you navigate that . That there is no question all of those issues are incredibly challenging. Enormously what needs to be done to handle worker safety, depending on the particular environment. How physically close workers are to each other, their proximity, the nature of their contacts. Do they have common items . Are they interacting with customers . How long . . What is the duration of those contacts . The number of contacts they have, and the ability to remove workers from those circumstances will create very different environments. I do think it is important and something we think about quite a lot as we work with clients around the world. There is the Immediate Impact of covid19, but there is also the Mental Health and Financial Health of your employees to think about. They need to get back to work, and we have seen around the world real frustration on the as the economy stays closed, and genuine concern about how they can get back to their jobs. So employers are trying to balance those needs, the needs of customers, against the health risks specifically of covid. But it depends quite a bit on the Work Environment as you say, local laws on privacy, even if you know someone has contracted covid, what is your ability as an employer to alert people they have contacted . Will, the local laws decide what companies can do and they have to adapt to those different situations around the world. Since 2017n talking about resilience, and that is often used today in the context of supply chains. Thishat we are seeing is ability more important. Rishaad people have been talking about the post covid world being a new normal. We have seen that before. It is always somewhere in between, isnt it . It wont change entirely because of this, but it will change. You foresee . Do guest it will change over time. We will certainly see changes in Customer Behavior in the nearterm. Until we have a vaccine or a treatment, people will be reluctant for the most part to have things like mass gatherings. The challenges on using mass transit. And part of it will be the damage from this economic cycle. If you think about what the worlds reaction has been to covid19, it has been more like a Natural Disaster than an economic event, really like a blackout. The longer things are blacked out, the more challenges businesses will face. Without sufficient fiscal support through the reopening period, or what is more like a brown out, we will see damage that will extend to a greater extent in the economy. One very quick question here. You have something called the coronavirus index. You raised that from six to seven in april. Where is it now, and what does it tell us . What does it actually refer to . Index rangesick from zero to 10. It is a composite assessment based on both quantitative and qualitative information across the scientific or epidemiological data, the Economic Data, and social data, information about government reactions, public reactions, social distancing, etc. Reraised that from 6 we raised that from six to seven. It is less about the epidemiology in contrast to our prior raising of the index and really about overriding considerations on economic and policy issues that we saw that the blackout period, the extended lockdowns, were creating economic damage that would likely outpace that of gse, and therefore we were alerting companies around the world thinking about the sort of measures they would have during an extended downturn. Rishaad karen, thank you for joining us. Karen harris of bane and company. The United States looks to companies such as south korea for reopening ideas, but seoul may have fresh problems on its hands. More on that on the way. Lets go to northeastern china along the north korean border. They are in lockdown after a surge of new Coronavirus Infections. It does raise concerns about new pockets of the outbreak popping up elsewhere as the chinese economy tries to regain its footing. Lets get to Stephen Engle. The headlines coming out of this, what do we know . Stephen we are seeing pockets of infections, second or third waves, whatever you want to call them, rising in various parts. We particularly focus on north asia because you mentioned a city on the north korean border in northeast china. 11 new cases were reported there on saturday, according to local Health Authorities. The city is still investigating the source of infections. China has reported 17 new cases sunday in addition to 14 new cases on saturday. That included those 11 in shoe sthe city. The largest daily increase in china reported this month. Shulan is raising its alert level to its highest risk designation from medium, and all nonessential transport is being banned while compounds are being closed. The proximity to north korea raises a lot of questions, because north korea has reported said it had zero cases of the coronavirus. But that is widely considered to be a false claim, as there is so much border traffic between china and north korea up in that region. Haslinda stephen, a headline here quickly from japan. The chief cabinet secretary testing approval is expected this week. Toying with japan, we understand that authorities are considering lifting its nationwide state emergency. Because ahats right, number of prefectures have been seeing some success. But also the government in japan, according to the latest poll, more than half of the population, or at least those surveyed, are dissatisfied with how the government has handled the crisis. It looks like the state of emergency, at least according to many local media reports in japan, that was imposed until may 31 may be lifted sooner than that in 34 of the 47 prefectures. However, areas like tokyo, osaka, and other prefectures that are harder hit will likely remain in this set lockdown. In this semilockdown. The preventative measures will continue. Tokyo did report 22 new cases on sunday, according to nhk. Haslinda Stephen Engle in hong kong. As we continue to track the virus, bloomberg has a unique partnership with a leading authority on covid19. Johns Hopkins University has been at the forefront of the international response, and a professor joins us to discuss the coronavirus treatment. Guest it is really difficult to predict the future, but i would imagine that we are going to get a massive Vaccination Program going in place. The vaccines that are currently in the lead in the pipeline are the ones that will be given by injection. Little it will be a different from the polio pipeline, but everything looks like vaccines will be the game changer here. Online,se things get there will be massive plans to initiate vaccination campaigns across the country and across the world. Reporter what is your best practice to get to that miracle point . Guest things have been moving forward at light speed when it comes to vaccine testing. Fda and theek, the nih gave approval to move into the second phase of vaccine testing with the number of the vaccine candidates. The first phase was just the safety testing. I have not seen that data yet, but since they were approved to go into the second phase, data has come up really good. The second phase will be the critical one, where they start to look at how those vaccines are functioning. Are they making the right immune responses that we predict would protect people from infection . Abouter let me ask you the mobile technologies that many countries are employing to try to get us out of lockdown and reopen economies. Here in the u. K. , i am talking to you from london. By the middle of this month, there is hope there will be wide use of an app that would be able to help in that endeavor. How excited is the medical community about this as a way of fighting the virus . Guest the mobile apps will be away for us to really do incredibly effective contact tracy, meaning contact tracing, meaning whats we find an infected individual, it will be an objective way to find out where that person has been and who might have come into contact with them. With that recovery phase of the pandemic, that is going to be the critical way we are going to use to try to minimize the number of cases. Of course, there are implications in terms of privacy, so some people are seeming leery about this technology. But when it comes to being able to track individuals and therefore slow down the infection spread, it will be an incredibly useful tool for that purpose. Andrew pekosz of Johns HopkinsBloomberg School of public health. They are sponsored by Mike Bloomberg and bloomberg lp, the Parent Company of this network. First facebook, then vista, now saudi arabia. We have the latest. Plus, the reserve banks plan to support the indian economy. That is on the way next. This is bloomberg. Tolinda it attempts cushion the economic blow. Lets go to our guests. Tell us more about the planned report and what impact it is likely to have on indias bond market . They made an announcement on friday. The prime ministers government announced it will borrow 54 than originally documented for the year. The cross market borrowing will now increased to 12 trillion rupees, which is higher than the buzz it of 7. 8 trillion rupees. This is the biggest increase in borrowing since 2009. That it is setes to spike with traders expecting a 25 basis point jump when the markets open today. Pressure to boost spending as india is hurtling towards its first Economic Contraction in more than four decades. There are calls for the stimulus plan for businesses on the brink of collapse. It is difficult for the bond market to fully absorb the supply. They are looking at what steps the central bank will take. It could be the rules that have , or is iten deployed going to be something new . That is what we will watch out for today. Facebook, silver lake partners, th Vista Equity Partners queuing up to take a stake in the business. What more can you tell us about that . Guest our sources are telling that General Atlantic is with more firms investments. Saudi arabias Public Investment is considering buying a minority discussing potential investment of about 50 million as of this month. Will add tostments the 8 billion deed that they have seen in recent weeks, silverg with facebook, lake partners, and Vista Equity Partners. These investments will have cross debt. Thank you. Have a look at the latest business flash headlines. There are talks about building a chipmaking plant in the United States. They are saying they are evaluating several options, including a new operation in america. Intel also discussing a possible new chip plant in the u. S. To improve domestic tech sources. Indonesia is finalizing a one milliondollar rescue plan, designed to stave off the default as the pandemic goes on. There is a plan to restructure. Arrange bridge loans to meet a planned spending for the next six months. Looking at the markets, it is a risk on monday as investors look to more and more economies of reopening. Sentiment remains pretty fragile, citi saying not to ignore those dire Economic Data. The csi 300 up in the last seven days. This is bloomberg. It is almost 11 00 a. M. I am haslinda amin. Welcome to Bloomberg Markets asia. Rishaad i am rishaad salamat. Flagging more powerful stimulus. The pboc saying the country is facing an unprecedented challenge. Infectionglobal stopped 4 million. 200 80,000 deaths. More nations moved to ease curbs as they balance the economic damage for the second infection wave. Rishaad the United States says payrolls were awful but nothing compared to virus lead job losses in india. We will assess the impact of Something Like 120 Million People being thrown out of work. More stories coming up. Lets have a look at what is going on with the first word News Headlines as we get over to new york and join Karina Mitchell. Karina Vice President mike pence has gone into selfisolation after an aide tested positive for the coronavirus. The diagnosis came on friday and he did intend to schedule a meeting with trump. Haveand the president repeatedly tested negative for the virus, including on sunday. The Vice President will be back in the white house on monday. Asian governments are urging vigilance as infection rates show signs of rising pit indonesia has reported a record jump in your cases. Malaysia is extending its virus restrictions by four weeks ahead of celebration for eid. Largescale gatherings remain banned. South korea is facing a jump in new cases after nightclubs were allowed to reopen. Meanwhile, europe continues to emerge from virus lockdowns with governments encouraging people back to work. The u. K. Is changing its message from stayathome to stay alert, all the critics say that is vague and confusing. Infections and russia are rising rapidly, with more than 10,000 new cases reported for the eighth straight day. That takes infections to above 200,000 with almost 2000 deaths. South koreas top trade official has warned that the virus pandemic will hammer exports even harder than the financial crisis did a decade ago. Trade and industry ministers told bloomberg conditions are tougher than in 2008 and will prompt a major rethink about Global Supply chains. Korea asment may favor Companies Look for more secure sourcing of components. 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. Haslinda. Haslinda the peoples bank of china says the country faces unprecedented challenges from the coronavirus pandemic. Is pledging to use more powerful policies to counter the hit to growth. It comes as the u. S. And china continue to trade barbs over the handling of the outbreak. Our Bloomberg Markets coanchor, tom mackenzie, joins us from beijing. Pboc proposing . Tom the clear message from the Chinese Central Bank is it is prepared to step up its support for the economy. We are talking about the Quarterly Report published on sunday. The pboc saying it will pay more attention to Economic Growth and jobs. The impact really eviscerates the Global Economy. The central bank saying the prudent Monetary Policy will be more flexible and that liquidity will be kept at reasonable levels but the report dropped an previous pledge to avoid excess liquidity flooding the economy, suggesting may be the pboc is giving itself more room to maneuver, and it may well need that additional space. The Global Economy has slipped into what the pboc called a recession track and mourn the impact of the virus may end up being more damaging than expected and other Central Banks have limited policy tools. Unconventional Monetary Policy, things like qe or negative rates, seems unlikely for the pboc. The central bank saying china will remain one of the you wager economies implementing what they call as normal Monetary Policy. They seem the central bank seems to be gearing up for more action. Rishaad what is actually going on between beijing and washington . The blame game has been of course happening. Has there been any truce in that or does it go on . Leon tom certainly, the blame game, the rhetoric between beijing and washington continues, both sides trying to climb the narrative on this virus, its background, and how it is being controlled or not in some cases. China publishing a 30 page article on the Foreign Ministry website refuting what it said by u. S. Allies politicians over its handling of the virus. It gave something of a timeline of how china provided information to the international community. But of course, there are still concerns about that timeline. Theres been some reporting out of germany suggesting that chinas initial attempt to hold back information cost the world for weeks to six weeks. Of course, the International Pressure continues in terms of wanting beijing to cooperate on International Investigations into the origins of the virus and the World Health Organization itself has requested access will on to toest to wuhan investigate. It seemed clear this war of words in the attempts to take control of the narrative between the two sides will continue. Speaking of tit for tat, the u. S. Introduces new measures to restrict chinese journalists. What are the details . Tom the measures involve a tightening of visa rules for chinese journalists. They will be limited to 90 days. They will be allowed to apply for extensions, but of course, those are by no means certain. Previously, chinese reporters were allowed to stay for an indefinite amount of time in the u. S. , and it comes, this latest measure from washington, after china expelled or than a dozen u. S. Journalists from three american newspapers including the washing wall street journal and New York Times and Washington Post and that was after the u. S. Ordered four Chinese State owned news outlets to cut the number of staff in the u. S. Prior to that, china had revoked the credentials of a number of wall street reporters paid prior to that move, you saw the u. S. Designating Chinese Media companies as foreign missions. These tit for tat have been going on for a number of months now. There is every chance that the tit for tat will continue. Ofhaad a bit reminiscent the expulsion of diplomats in the cold war. Thanks very much indeed. Tom mackenzie beijing. Coming up, if you thought americas labor market was in 120 Million People lost their jobs in india. That is due to the virus containment measures. We will hear from the leading private think tank on that. Haslinda up next, we talk Market Outlook and strategy with case for a vshaped recovery in china and where he Sees Opportunities to profit. This is bloomberg. Haslinda we are looking at a broad rally and asia to marxist in asia. Investors remain cautious as investors reopen. They are looking to see if there is a second or third wave of new infections. Taking a look at where we are right now, the csi 300 index up by. 6 . The pboc pledging stronger monetary policies. Theays it will not flood market with liquidity. The csi 300 trading above its 100 day moving average. We member the last time it did that, the rally did not remember, the last time it did that, the rally did not. The nikkei 225 up by 1. 5 . It plans to remove 30 four prefectures from a state of emergency. Take a look at where we are in terms of Southeast Asian markets with indonesia, singapore, philippines, alternating and positive territory. The philippines are tracking q1 net income falling 41 year on year and we are keeping a theh on the philippines, in negative. Sales lapsed. Up byonesia, we have 1 . The governors saying that we have enough in terms of fiscal and monetary space to prop up the economy. Rish. Goodad overall, having a day. Asiapacific markets moving to the upside. The volumes haslinda was referring to, prospects for a higher open in mumbai with the nifty futures up nearly 1 and some of this being dictated to by what is happening on the s p futures. As you can see. And the u. S. Dollar index pretty much flat. Looking at the commodities space, coin, oil as well, bitcoin, oil, and move into havens. Bitcoin off by 12 , quite a move, actually, 1234 down. As wee wti also lower head towards Opecs Monthly Oil report, which is out on wednesday. Thats find out whats happening in terms of strategy, what lets find out whats happening in terms of strategy. Homin lee is the asia macro strategist, and welcome to the show. What has been occupying you the most . Could you sorry repeat the question . Rishaad what have you been concentrating on most in terms of what is happening with the pandemic . That has been informing your thinking as to what is going on next . Homin basically, what we recommend to our investors is the combination of a well diversified Global Market folio portfolio. Usethe market portfolio, we allocation. He has worked pretty well so far. Havecused on him we worked that has worked for the far. Regionsthink that the best positioned to benefit from the likely recovery that will start in the middle of this quarter to the second half of this year, so we continue to hold onto that and we have seen recovery so far. Told me also tell kme we saw that jobs report in the u. S. , 20 Million People, and Neel Kashkari suggesting this could get even worse, and the worst is still to come. How concerned are you about that . What about these jobs actually not coming back . People might think they have been furloughed or that job will be waiting for them, but that is not necessarily the case. Higher unemployment for longer, and that must figure in the way you are at the moment advising people. The job markets in all countries around the world are pretty worrisome. There is no doubt about that. We will likely see the number deteriorate a bit further in may, but at the same time, the trajectory of growth for the judge thatomy, we april was probably the worst month, and you will likely start getting some recovery moving forward, starting with potentially, in other parts of the world, when the reopening progresses more firmly. So we do expect growth to pick up, and that will have positive impacts on the job markets, so we do expect job markets to recover. Somewhat gradually, you know, and the second half. More firmly. Allher were not you can get of the jobs back, theres a lot of uncertainty around that question, but if you simply assume that you recover middle of next year, the fact losses will the job be in the medium term. A lot of this is [indiscernible] can markets continue datasmiss dire economic that seems to be a huge and growing disconnect between the equity market and Economic Data and fundamentals, basically . Homin absolutely. There is a huge gap. Lets remember that the data are in the rearview mirror. The markets are firmly focused on what happens in the future and i think this is what markets are finding because at the end it works similar to a Natural Disaster in this time experienced by all the countries in the world. Once it goes away, you can start to maybe target some normalcy and how things are done. Terms of just thinking about a reasonable scenario, you have policy support since world war ii, basically. A level of international coordination. The world control reopening process, and parts of asia, which is encouraging to taking thesel, so into consideration, you can say the sentiments of the market are not terribly displaced. You like asia extra pan equities. Japan equities. They seem to be cheap . Homin we like the region of course, but specifically about the equities in china, obviously, the market has pretty solidly so far this year, think of forward, just the countrys ability to control the reopening process and the track record so far in that, and also, and of course, the Growth Numbers in china and the rest of asia will start stabilizing and rebounding earlier than the other countries around the world. On top of that, firepower. How much they can do on the policy side and that relates to china. The country has been somewhat more reluctant, relatively speaking, compared to the other countries around the world, so they can certainly use that. That means that we think there to be madeent case for the region and equities, and this is why we have producing on these markets for the time being. Are you very concerned about defaults and how we have got a lot of hidden defaults . We probably have some industries really, really taking an absolute hammering. Look at aviation. Look at some of the Hospitality Industries as well. What about those defaults, and where do you see most of them . Be somehere will defaults, of course. We have to live with that. Shocks thatmendous some are suffering. There will be as you mentioned, the tourism sector, in particular, we will see some structural change in demand, and that is going to have some implications. [indiscernible] aviation also. That could be significantly impacted. Right now, the tools of macroeconomic policy around the world, what remains, is to ensure that there is no [indiscernible] at the global level. Right now, the focus is basically buying time. You know, before, people had control Global Economic situation. If you consider that, you can make a case that you can probably avoid and by the time you have Economic Growth, it will be a even in that situation, we think we can may the know, prevent becoming uncontrollable. We are very vigilant about this. You can probably hope for a site and more stable situation, yes. Slightly more stable situation, yes. Asia ab inbev, macro strategist homin lee. Other countries are on the verge of reopening. On the way. Details this is bloomberg. Rishaad i have got a city in the northeastern part of china, just along the north korean border, in lockdown after a surge of new Coronavirus Infections. It does raise concerns about new pockets of the outbreak popping up elsewhere just as the chinese economy tries to regain its footing. Stephen engles tracking developments. I know you are familiar with the area. What do we know . Stephen we are tracking a number of different pockets that have emerged up in north asia. I will get to that in just a minute. The chinese city, it is a city in the northeast that is smack on the north korean border, and of course, north korea says it has zero cases of the coronavirus. Well, the city officials and local Health Authorities say they have 11 new cases reported on saturday. It has raised its virus threat alert level to the highest risk from medium risk, and all nonessential transport is being banned while residential compounds and villages in the area are being closed. Is a worry as the chinese economy tries to get back on its feet, and again, as well, trying to contain any spread. South korea is facing a similar problem. They were one of the initial outbreaks outside of china, of course, and they barely contained it well, but now, we are getting a flareup tied to the nightclub area in seoul. We are seeing 69 move infections on saturday and sunday combined. Some of them may be tied to a known 29yearold patient who went clubbing earlier in may, but what is really alarming is authorities in seoul say between 6000 to 7000 people may have been exposed in those nightclubs between april 29 and may 6. Withusly a big concern south korea supposedly having it contained, with nearly 11,000 cases and 256 deaths. New people0 to 7000 are possibly exposed. It is a big concern to the economy that it had felt like it got it under control. Haslinda exactly. This is the dilemma many nations are having. How far do you relax restrictions and risk new waves of infections . What is happening in places like indonesia, where infections are still a problem, and authorities want a phased relaxation . Stephen indonesia is a great example of a country some say is under tested and we do not know the full scope of the infection rate, and we have not necessarily seeing a flattening of the infection curve. So authorities are balancing the balancing act all around the world. At what point do you start relaxing the restrictions for the sake of the economy . And peoples livelihoods . Basically, officials are being are discussing right now reopening the economy in five phases, starting from next month in june with the aim to have the economy fully opened by either late july or early august. The trajectory of virus infections will be the key factor in deciding this timeline, but again, it is an interesting dilemma because jakarta has extended its partial lockdown that includes a ban on gatherings of more than five people, mandatory work from home guidelines as well as limited public transport, that until may 22, but more than 20 other cities and three provinces have similar restrictions in place through the end of may, and again, like i said, we have not seen a flattening of the curve in indonesia. 14,000 cases confirmed. There is probably a lot more. Nearly 1000 deaths in indonesia. Rishaad thanks so much, Stephen Engle, our chief north asia correspondent. Lets check in whats going on market wise. , down eightd basis points on the threemonth, looking at the onemonth. Shanghai is going out for its lunch break in three minutes and tokyo returns for the rest of its trading day. That is shanghai. This is bloomberg. Haslinda you are looking at live pictures of the lion city. A pretty wet and thunder relion city. City. Ndery lion a lift to the benchmark. The situation in singapore the focus of the virus fight. The lion city has stabilized according to the government. To maintain the recovery, Foreign Workers have been given gadgets to check blood and oxygen levels. Given out. Will be it looks like a lion city is tapping on technology as it tries to overcome the recent challenges to do with the virus. The fbi up by. 4 . For now, first word headlines with Karina Mitchell in new york. Karina global coronavirus thats above 280,000. The u. S. Has by far the most cases and fatalities with one point 3 Million People infected and almost 79,000 having died. The virus was first reported in china. Beijing confirmed 83,000 cases with just over 4600 fatalities. China is ready to introduce more powerful stimulus to counter the threat the virus poses to the economy. The pboc released its quarterly policy report, saying it will pay even more attention to job growth. It says Monetary Policy will remain flexible and prudent with the phrase, avoiding excess liquidities, flooding the economy is missing. It was in the Previous Report of the Fourth Quarter of last year. Knowledge is on off malaysia has Political Partners are calling for the restoration of a mandate from two years ago. It said first joint statements and internal disagreements undermined their coalition in february. They say the current government was not the voters choice, does not have a legal mandate, and they do not recognize its legitimacy. The magic is returning to Shanghai Disney with the park reopening after an almost fourmonth closure because of the coronavirus. The theme park closed january 25 but has reopened today at one third of its normal capacity of 80,000 daily visitors and with facilities. Ncing in tickets have sold out for most of the first week. 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. Haslinda. Haslinda lets get to india. The worlds biggest lockdown forced 120 2 Million People out of jobs in india last month. That is according to estimates from a private sector think tank. Its surveys show the jobless rate spiked to over 27 in the week ending may 3. The ceo says the number of lost jobs is a human tragedy. Great to have you with us. 27 of jobless rate . I guess the question is, how many of those jobs will be gone permanently . You need to look at the distribution of the job losses to understand that. A large number of jobs can come back. Of the 122 million jobs lost, street hawkers, daily wage laborers. The large number of them can come back to work once the economy lifts the lockdown. What will be difficult is for the 70 million salaried employees who have lost their jobs. I think they will find it difficult to get back their jobs. Also, around 18 million Business People have lost their businesses. Of 35hink the order Million People, they will find it difficult to get their jobs. Around 90 Million People may get it back once the lockdown is lifted. Haslinda is india at all at risk of a crisis with unemployment so high . Well, this is a crisis situation. A very large country and the country with relatively no income remaining shut for well over one month compromises the livelihood and compromises the livelihoods of a large number of people. So i think this is a tragedy. This is a crisis. It will be very difficult for india to come out of this. The Economic Cost of this is not going to be small. Me, ok, 120l million is a Staggering Number of people. The thing is, how many of those people are also not only unemployed, but how many of them worked previously underemployed . A largescales phenomenon. You have a very large underemployment phenomenon in india, so when we saw 122 million jobs being lost in the month of april, strangely, we saw over 5 million jobs being added in sectors. This is obviously underemployment. Or it is disguised unemployment. There cannot be any increase in the farm sectors during these times. People have moved out of the urban areas and gone back to their farms. They are shoveling some dirt around and calling themselves employed. In reality, this is unemployment, but it is just disguised in the farm sectors. Skies unemployment is quite disguisedndia, unemployment is quite large in india. Case thatvery serious a very large number of people in very desperate situations are still looking for jobs. Mind you, the Labor Participation rate has fallen on the order of 36 . That is a very low number. I just want to get to some headlines we have heard. The r. B. I. Saying it has no plans to directly by debt. Extra borrowing will be needed to widen the deficit to 5. 5 of gdp. How much of that actually, in your view, will come to the aid of the economy . Is it too little . Is it too late . Has it moved the dial as far as job creation goes . Mahesh it is already very late. Development has not allowed any credible package, any effective package, to mitigate the hardships that the people face, that the migrants face, which is graphic detail on television that people are in dire straits. The government has not come out with a plan or given an indication that there will be an aggressive plan to overcome the largescale tragedy spilling out in india. I dont think there is much india can do in this consensus. It is not so much about liquidity as much as it is about the livelihoods of the people. Haslinda how quickly can indias economy turn around . We have already had moodys saying indias growth will slump to zero for Financial Year 21. In our estimates, the growth will slump to the negative zone. We believe the economy will 2021. Ct in real terms in i dont think it is 0 . We said 0 in april, april 1. Now, as we are heading towards the middle of may, having experienced the lockdown, which has extended over more than 45 days, 2021 is going to be a year of contraction even if the government starts acting now. The completerter, washout, and it will take a long time for it to come back into shape, to start hiring again, to get the supply chains fact, to get demand pumped up again. Demand has shrunk quite sharply. Investors stop investing. They will not invest if demands as low as it has shrunk currently. Of thea is it a matter Retail Sector coming to life again . Is that is what is needed to kickstart the economy . Toesh what is required is get money in the hands of people and motivate them to spend. People will be reticent to spend the little money they have. They will be saving it for a rainy day because they are taken by surprise by what has happened. So to kickstart the economy, and i think it is important to get it going again, one needs to put money in the hands of households and to moderate them, and give them confidence that it is important for them to go out and spend and repair their livelihoods again. That is the only way that demand will come back, which will motivate the private sector to invest and start hiring and get the economy rolling back. If you do this on a sustained basis in 2021, there is some hope of the economy coming back to shape, but what is important is to do this quickly before the situation gets worse. Are you saying helicopter money or something more nuanced than that . Money is oneopter way of describing it. I do not subscribe to that description. The engineering on the mechanics of doing this is one thing and the mechanics of doing this is one thing. India has made a lot of progress under this governments regime, under this regime, to set up Bank Accounts for a very large number of people. A lot of people are linked to an identity. A lot has been done in the last five to six years to enable the government to reach out to people and put money in their hands and do it in a more directed manner then helicopter money describes, but whether you do it one way or the other, i believe there is no way out than putting money into the hands of people. Quickly, thevery Oil Price Collapse must surely be a boon to some parts of the economy. Fall doese oil price give the government a lot of headroom. Its oil bill goes down. The current account surplus for india. More important, the government bill is reduced substantially. It has to show it can use that headroom to mitigate the crisis which is playing out in india. Thank you very much indeed. , from thes there center for monitoring indian economy. Have a look at the Indian Markets as we head towards the open. We are looking at a few stocks as well on that, looking at nifty, which is likely to be much higher. That as we see the rupee strengthened marginally against its american counterpart, and the 10 year yield you saw. Earnings numbers. 1. 3 . N see it is up it didnt miss estimates because of virus provisioning but it seems investors were ok on that. Indian Railway Catering nearly 5 up as india plans to restart trains. Reliance, another when we are looking at, as we see people wanting to take a stake in that company, or should i say, units within that company. Top white house Economic Advisor larry kudlow says he is confident china will stick to his side of the trade agreement but he repeats doubts about beijings role in the outbreak of covid19. We have got that interview, next. This is bloomberg. Haslinda President Trumps top economic adviser says the u. S. Will not have to shut down again even if that is a resurgence of coronavirus cases. Very kudlow also told us he expects a return to Economic Growth in the second half despite what he calls the heartbreak of fridays job numbers. This is a tough time but it is a tough time for everybody in america. There is no question about that. Wherever you work or do not work, it is a tough time. This jobs report today is full of heartbreak. It is full of hardship. Prove to that it will be temporary, because i think the pandemic contraction or the contraction in the economy caused by the pandemic, covid19, will prove to be temporary, and that we are actually coming down the homestretch in terms of reopening the economy, but it is a rough number. There is no question about that. Some of this looks to be temporary layoffs, maybe about three quarters of it but that does not necessarily make it any better. People expect to return to jobs. Lets hope they can return to jobs paid look, we have done President Trump leadership, Vice President pence, they put together and or miss an package, cashe liquidity, Federal Reserve, payroll protections. I was adding it up. About 9 trillion now, including the Federal Reserve and what we have done on fiscal policy in the budget. Some of this may work. We may have cushioned the decline. That may be part of this story inside these very, very difficult members, so we will see how this works and we will see whether we have to go back. Lets talk about president ial policies in a few moments, because i do believe the second half of this year, according to the cbo and private forecasters, the second half is going to have very significant bounceback in Economic Growth, and that will head into 2020 one, which could be a fantastic economic recovery year. When it comes to reopening, i want to understand i know you are an optimistic man whether you have done any Contingency Planning for a second wave and another shut down. Are you doing that Contingency Planning now . Yes. I will not go into details. It is outside my lane. I have spoken to dr. Birx on that, dr. Fauci, and Vice President trumps and President Trumps terrific team. One of the senior people in that group, i asked that person what happens. You know, right now, the virus numbers are flattening out. That is a really good thing. That means we can reopen this economy pit i asked this person, what happens if you get a jump back up in the virus numbers . The response was we will not hut down, because first of all, we know more, we have more experience, and we are much better equipped with the right tools. Are you rethinking your relationship with the Chinese Communist party . I dont think we were stopped thinking about it. First of all, as you know from reports today, ambassador lighthizer, secretary mnuchin, met with vice premier liu he of china. It was a very constructive meeting. The printout, the communique, if you will, was very positive. China continues to tell us they have every intention of meeting the requirements and the implementations of the deal that winter. Ed formally last it seems like 1000 years ago, but it was only a couple of month ago. They are a little bit behind on commodity purchases. That may be because of market conditions. They are pledged to continue, foruding remedies intellectual property theft and related measures, so those talks seemed to go well and were constructors. The chinese relationship is very complex. And we know that the virus originated in china. There investigating, we, u. S. Government, the intelligence agencies, National Security councils, state department, etc. , we are carefully investigating what happened and what did not happen, what may have happened, and what actually happened. Hina has been not transparent a lot of people are concerned. I saw this with the president at the g7 video teleconference meeting a couple of weeks ago and the other World Leaders felt the same way. They will be held accountable, jonathan. They will be held accountable. When the final studies are in. That was larry kudlow speaking to bloomberg televisions jonathan. Coming up, a look at protesters back on the streets of the city of hong kong. They are in the mall. Authorities used social distancing measures. We will have to ask if theres any respite towards the economy. That is on the way, next. This is bloomberg. Rishaad we are back and having a look at local media reports right here in hong kong saying the police have arrested at least 10 people inside and fired crowd dispersal weapons. That is hundreds gathered in shopping malls over the weekend. Yvonne man is with us now. Now that virus cases have slowed here and the territory, the protests are a sign of return to the recent past and it is something that people have been bracing for. Frome we have shifted fighting this pandemic to now these protests reemerging again, and this time, you mentioned it was in several shopping malls across the city, demonstrators were chanting antigovernment slogans, singing protest songs, ones we heard from last year as well. Police were forced to fire these socalled pepper balls, with irritants used to disperse the crowds. A 12yearold and a 13yearold student reporter were among those taken away. What may have been the trigger this time around, perhaps may be the scuffle we saw that broke out at the Legislative Council on friday. We saw prodemocracy and progovernment lawmakers just pushing and shoving each other and that are really trying to take control of the chairpersons seat. They made no progress in electing someone to that position as of now and they need to elect that chair in order to vote on some key legislation, some of which has been very controversial, including reintroducing article 23, the National Security law that was shelved back into thousand three. We heard from paul chan, warning about the protests reemerging again. He wrote on sunday the epidemic can be prevented and controlled by violins is hard to stop. This is absolutely bad news for the already weak hong kong economy. Haslinda the government had plans to hand out reusable face masks to residents. How is that going . Yvonne yes, they are going to start giving them out today for those who have registered. So far, nearly 3 million have signed up so far. These are free, reusable masks that can be used up to 60 times. The rollout has been a bit of a cletobacco after deba after there were links found between manufacturers and a nongovernmental organization. The government had opted out of having a public tender. There has been a bit of a controversy surrounding this. New kong reported three virus cases all of which were imported. They have not recorded a locally transmitted case in three days. The government says you cannot let your guard down, essentially. Man. Nda yvonne lets do a quick check of the latest business flash headlines. Indonesia is finalizing a 1 billion rescue plan for its carrier to stave the coronavirus grounds most of its planes. The package includes the due next month and arrange loans of as much as to meet planned spending. Garuda will put the proposal to investors. Ansays its agreement to sell 86 percent stake in the philippian operations has after the companys regulator failed to approve the deal within the required time limit. The Competition Commission earlier said the sale would create a monopoly by adding 20 r stock fell more than in early trade. Chinas banking watchdog has launched an investigation for a possible infringement of customer interests. The regulator said they violated the principle of confidentiality by sharing transaction records from a personal account to a third Party Without permission. Citic apologized to the customer last week and says it has punished Staff Members involved. Saudi is said to be close to staggering payments in petrochemical giants as oils collapse has heaved further pressure on finances. Aramco is pushing out payments for its holding and is considering reducing the size of its initial installment. We are also told that they are weighing whether it is possible to lower the cap. Rishaad lets look out what we have market wise, heading towards the hong kong lunch break. Tokyo coming back a short while ago. This is the position we find ourselves in with the nikkei extending its gains. A clear leader and pushing things up in this part of the world. Currently, the hang seng. Falling back eight business points. Kospi marginally up. This is a look at what is happening with india. It is not even 60 minutes of trade. We have had 11 minutes of sensex up. This premarket, it was higher, this after making more provisions for virus losses and that helped it to really miss estimates. Catchingcatching up, the eye of the saudis. Indian railway up 5 as the company prepares to reach the country prepares to restart its railways and that can happen as soon as tomorrow. Haslinda. Haslinda that is it from Bloomberg Markets asia. Bloomberg daybreak asia middle east is next. This is bloomberg. The following is a paid presentation brought to you by rare collectibles tv. Since the year 1789, we as americans have looked to our commanderinchief, our democratically elected not it states president United States president , for guidance and leadership in times of peace, as well as in times of dire need. As a means of estais