Rate declining. Japan lifts its emergency measures in tokyo, saying theres no need for further restrictions. Scott morrison addresses the pandemic file that later. He is being told he has a once in a generation chance to reform the australian economy. Consider. S to as we get underway this Tuesday Morning in the asiapacific, keep in mind lots of markets were closed monday including the u. S. The futures, to use that is any guide, we can almost say we are in the asiapacific. We are getting this coming online. Up 30 points clear of where you last traded on the s p back on friday, in terms of the cash market. Spy futures indicating a big pop. On top of the best day on monday. Highs. March 111 philip the board and take a look at the currency markets with ecb in focus and perhaps we are getting signals and some comments from key policymakers, we could get more stimulus, probably on the way. I will be generous. The record low. The aussie offshore rate back in september. There we go in terms of new york crude, about 34 at one point. Haidi . Yeah, lets get back to the top story. China appears to be going to Great Lengths to try to reassure hong kong and the large foreign Business Community, that the proposed National Security law is good for hong kong. Lets get the latest from our chief correspondent david engel, taking a closer look at these reassurances. These words from beijing but do we have any more detail of the law and is there any conviction for those that are listening . David e. that is the biggest problem. Not just the people taking to the streets and protesting violently. The Law Community is very concerned here, and others as well as anybody who wants to maintain the high degree of autonomy in hong kong are concerned the details are not necessarily being fleshed out or communicated well to the forle of hong kong law that could have sweeping power and could be passed in the last half of the week as Congress Wraps up. The commissioner of Chinas Ministry of Foreign Affairs in hong kong is the latest to be rolled out to assuage the fears of hong kong and the foreign Business Community. Reassure hong kong in particular that its independent judiciary will remain under the new security law. He said the legislation will not change the one country, two systems policy, hong kongs capitalist system, high degree of autonomy, nor the legal system in hong kong or affect the independent judicial power. That is great in words, but will that be played out . The big concern is that the National Laws will be viewed as serving the interests of the communist party of china, when and how it suits them and that is the biggest concern. Other officials have spoken out over the last few days as well. Whether it was the foreign minister, carrie lam has been talking, the financial secretary they have all been trying to come out and say, listen, trust us on this. But the Business Community and judiciary are concerned about an independent judiciary. The American Chamber of congress cited the independent judiciary is a key reason hong kong has prospered over the years and theerday, my final point Hong Kong Bar Association put out a sharply worded statement saying the new National Legislation is incompatible with the basic law and calling it worrying and problematic. Some ofout that the details in the National Security law proposal. In the draft law, they use the term judicial organs. Organs being the operative word. That is common terminology that beijing uses. China does not have an independent judiciary. It does what the party says. Judicial been using origins in the draft. That basically gives rise to speculation. The judiciary could be instructed to act in certain ways. David i. speaking of terminology. One phrase we often hear quite a bit is this phrase of Foreign Forces playing a large part in for minting the stance in hong kong. How important is that type of framing . Stephen it simply makes it easier for the officials to justify this. ,f Foreign Forces are involved allegedly, this antisubversion, antisecession, antiterrorism, antiterrorism laws could be easily justified which prodemocracy advocates here ays is absurdmo say and says hong kong does not have terrorism here. It will be used to rein in protesters as we have seen. Just yesterday as i have been talking about, they have been rolling out official after official to try to assuage the fears of the hong kong people and the foreign Business Community. They asked, im sure, former hong kong chief executive, who had to step out in the early 2000s after the 500,000 people took to the streets against passing of article 23 and the basic law. He is the latest to say the new laws are needed to counter what he said are hostile Foreign Forces. Beijings and officials are using this terminology to justify it. David great stuff. Thank you. Stephen engle. We will have more on the outlook later on in the program with the former Democratic Party chairperson who will be coming on later on today. Lets get it over to Karina Mitchell in new york and she has an update of the first word headlines. China is condemning plans that more countries were blacklisted as relations between washington and beijing worsens. The Commerce Department is expended in socalled entities list which restricts access to u. S. Technology. The companies and universities of the Trump Administration that has ties to the chinese military. Coronavirus cases continue to rise, albeit at a slowing rate. Global infections now approaching 5. 5 million and fatalities above 344,000. U. S. Cases rose 1. 3 , slower than recent days, while deficit showed the lowest increase in more than a week. President trump i dismissed warnings, despite the mayor of baltimore says it sets the wrong message. More stimulus is on the way to tackle the fallout from the pandemic. The bank of france governor says there is room to innovate with current limits on ecb action being loosened. 4e ecbs next meeting is june and economists expected will use the session to add more stimulus. Western australia is clearing up after one of the most powerful storms in years. Thousands of homes and businesses were left without power, although police say there were no confirmed casualties. The storm was a combination of the weakening cyclone colliding with a cold front in the southern indian ocean. Much of the coast highway in this and torrential rain. The southwest recording at strongest gust since 2005. Global news 24 hours a day on air and on quicktake by bloomberg, powered by more than 2700 journalists and analysts. Im an eventual. This is bloomberg. David . David ok, coming up, Prime MinisterScott Morrison will be laying on his plans to reshape the post coronavirus economy in australia in a speech later today. We will have kristin holdings talking about the opportunities the government should take. Coming up next, how investors should trade the u. S. China cold war. The positioning and getting out of risk assets. That is coming up next. This is bloomberg. David welcome back to the show. Some things to let you guys in the loop when it comes to nissan and renault report from reuters. To do companies speaking of merger plans to fix the alliance. We dont have any more details as opposed to that. I will be getting into details when we have more information on that. Lets get back to markets right now. Can you call it hopes still . Lets call it that. Dupont emerging as a driver for Global Growth under threat right now as china warning the u. S. And risks a new cold war. Have a look at this bloomberg chart. The two biggest economies in the world, economic heavyweights, clashing in a range of issues putting it under pressure. You combine and it is 40 of gdp. How do we trade this . The question of the day right now is how best to trade a new cold war between the two countries . Send your questions into the email for bloomberg clients. You can send it in on twitter as well. To discuss this, patrick healey, president and founder of caliber financial partners, joining us from jersey city. Thanks for coming on the program. Ill rephrase the question of the day for you a little bit right now. Last year, we had a trade war. This year, we have a trade war and the deepest economic recession probably in 100 years. Why should i be invested in equity markets right now . Patrick excellent question. It is a pleasure to join you. I think theres a number of headwinds, really, kinda facing the equity markets going forward. You just cited two of them. Here in the u. S. , it is an Election Year as well and it has taken a backseat to all the pandemic fears and the escalations around a trade war. Im much more defensive, admittedly, with client assets and my own assets. Things, event putting aside a trade war, we are in largescale lockdown still in parts of the united states, yet the equity markets have recovered to the tune of north of 30 off of the lows from march. I think it is a case of irrational exuberance and a think it pays to be a lot more defensive going forward. Theres a lack of visibility in terms of Forward Guidance. Companies in the u. S. It remains to be seen how industries are going to be impacted even after we open up and some of the social distancing restrictions are applied on businesses and how they are going to function as a result of that. I think again, much more defensive. I am holding more cash in client portfolios. Liquidity is king in this type of environment. Going forward, i am anticipating quite a bit of inflation so Precious Metals and real assets become prevalent in a portfolio. When you do get rallies, i would expect clients to really take some risk off the table and thats what im doing. Cash or moremore gold . Patrick it is more cash. Partially to be more opportunistic if we do get another selloff, but i have been adding gold and client portfolios just because what i think is going to be much more high scale inflation going forward. For a couple of reasons. The u. S. Government is issuing a tremendous amount of debt to fisk you they stimulate our way out of this and Keep Companies solvent and certain factions of the economy. But also for the reasons you described earlier, with escalations between the u. S. And china, i think you will see more pressure on then you factory being brought back into the united states. Lets face it it costs more to manufacture products in the u. S. That it does in china. You would expect that to create more inflation for products and Services Going forward. David what will be the trigger for you . What is the most what is the most important forwardlooking indicator for you and it comes to equity markets right now . Patrick i think the lack of visibility in terms of Forward Guidance on earnings is troublesome. Am looking for a selloff we saw that back in march and i saw some capital back to work opportunistically. Very attractive entry points. Until we have more visibility in terms how the restrictions are factionsimpact large of our economy, i will be on the sidelines. If thereget a selloff, is outbreaks of the virus in certain segments of the country, then you may see that reflected in equity prices pretty quickly. If for some reason we have to go into lockdown again in the fall or later in the year, you are going to see that reflected in that prevaluations and that might be a better entry point. I am on the sideline for the time being. David theres a slight difference between sitting on the sidelines, sitting on cash and going short. You realty mentioned you expect a selloff so why not just go short in the market . Patrick it is difficult for me to short for retail clients. I cannot do that for clients. I can do that for my own portfolio. I can do that in certain names. Quite honestly, there are going to be winners and losers out of this. I think certain sectors still trade at attractive valuations and i might be willing to go along in those select sectors, but i just think if you look at the nasdaq, it is green on the year which is remarkable considering we are still under quarantine in large parts of the united states. It is just irrational exuberance. I think the fomo trade has taken over and people dont want to miss out on what they have perceived to be a shortterm blip in the markets, but i think they are underestimating the more permanent impairment that is taking place. David talk to us about biotech. Do you like a few names . Fair disclosure, you own a few stocks we are about to talk about. Patrick sure. That is one of the sectors that i think is going to be a real winner coming out of this. It was a sector that largely had been out of favor over the last several years. There has been a lot of political pressure for lowering drug prices which i can certainly appreciate. However, all of the efforts by pharma and biotech to throw resources at developing treatments, a cure and ultimately vaccination for covid i think are starting to become better appreciated by the general public, as well as politicians in washington. That itthey realize takes a lot of resources, a lot of time and a lot of money to develop drugs and you dont want to stunt innovation by putting a lot of political pressure on these firms. I think largely, there will be a winner coming out of this, whether they are studying treatments for covid or other important ones. Three names that i like the first one id like to discuss is herapeutics. An immunooncology midcap play. It broke out through the 52week high on friday. For a couple of reasons they have been rumored to have takeover chatter over the last month or so so the stock has traded up along the lines of that. Cancero, there is a big teleconference that is taking place this week in the united states. There typically is a lot of movement coming out of that. A lot of data readouts. I think they are a beneficiary of that and could be an acquisition candidate to a larger Pharma Company at some point later in the year. David patrick, thank you for that. You have shown as three stocks for our viewers. Glad to see you and hope you have a good week ahead. Patrick healey, caliber financial partners. Renewed cold war potential between washington and beijing. Our bloomberg clients on your terminals when that function. Also available on mobile on the bloomberg anywhere app. Coming up, an update on japan and the virus story there. The emergency in a weeks time earlier than expected. We look at the likely economic boost from shinzo abe looking to kickstart the nation. This is bloomberg. David good morning, again. Lets talk about more economies. A lot of these guys pressing ahead with reopening around the world. Japan ended its state of emergency. Prime minister abe seeing the revival of the economy is now the top priority. Lets bring in Sophie Kamaruddin with the details for us and talk us through the key points. Sophie Prime Minister abe confirmed another big package will be approved by japans captain on wednesday with the media reporting it could be around ¥10 trillion to y13 trillion. The total is expected to about two about 1. 8 6 trillion u. S. Dollars. This round is to provide more of a helping hand to furlough workers, University Students and cashstrapped companies. This additional stimulus, plus lifting of the state of emergency should provide a small boost of activity as tokyo and surrounding prefectures reopen it restrictions on business is gradually being lifted. Together, this area represents 1. 7 trillion in output which makes it the worlds 11th largest economy in global terms. According to bloomberg intelligence, this could translate to ¥. 7 trillion and outputs. David singapore i am losing count expected yet again to announce Chapter Three or chapter four of the stimulus package. What do we know . Sophie that would be the fourth round of virus stimulus. 60 billion set aside for that. It represents about 12 of gdp. For this round, singapore is excited to draw on its reserves for a second time to support a recovery with more measures for households and workers. This is the government prepares for the second phase of reopening by the end of june. While acknowledging infections will likely rise when activities resume, given the are still indications within the population. Heads up we will be getting the final minutes from First Quarter gdp. The preliminary numbers showed a decent fraction of over 10 but todays data is excited not to be as bad. Also on the agenda the australian Prime MinisterScott Morrison is to deliver a speech to the press club during which he is likely toward of the heart economic road ahead that could last three to five years. He will likely put the spotlight on Vocational Training and job creation with a job maker scheme. That is not likely to be extended. Watch for details on tax reform and deregulation when morrison delivers a speech. David indeed. I will be watching. Thank you so much. We will have more perspective on that speech coming up with christian joining us in a couple of minutes, stressing the importance of not wasting a good crisis. Lets get you the latest business flash headlines. Alibaba the company projecting revenue will slow reflecting Economic Uncertainty post covid19 and the potential for u. S. China to disrupt business. Way. Ork was closed, by the alibaba is forecasting sales growth at 27 this year, down from its original estimate of 35 . Pharma,a stake in valued at 15 billion, giving the company more room to invest in cancer. Regeneron will repurchase 5 billion in stock and sell its holdings, worth about 7 billion. The company said in december it would and a time for a new diabetes and Heart Disease drug to focus on oncology. Apple will begin reopening its doors in japan this week. Tokyo reporting on the underlying things because of the coronavirus. Two locations will open wednesday, while eight other stores will open their doors at dates still to be decided. Tokyo beginning to lift the state of emergency and apple says the stores will require temperature checks, social distancing and the use of masks. Staying connected your way is easier than ever. Youre just a tap away from personalized support on xfinity. Com. Get faster internet speeds with a click. Order xfi pods to your home in a snap. Or change your Xfinity Services with just a touch. All in one place. Youre only seconds away from all of that on xfinity. Com. Faster than a call. Easy as a tap. Now thats simple, easy, awesome. There are times when our need to connect really matters. To keep customers and employees in t know. To keep business moving. Comcast business is prepared for times like these. Powered by the nations largest gigspeed network. To help give you the speed, reliability, and security you need. Tools to manage your business from any device, anywhere. And a team of experts here for you 24 7. Weve always believed in the power of working together. Thats why, when every connection counts. You can count on us. This bombshell. What sort of city are we going to live and no business to be done. This is to make sure we will have a stable business environment. This is exactly the kind of confrontational developments on both sides of the relationship that you would expect in a cold war. I do think this is a major shift, a major inflection point. Calling each others names seems to be quite a convenient way to distract from domestic failures. By recalling special statuses, all you do to punish hong kong and you drive the hong kong economy more into the hands of the mainland. To revert the special treatment gives hong kong but you can only do that once. If it doesnt work, what happens next . The u. S. And the u. K. Will be taking the lead on this hong kong issue. What you hear increasingly is, ok, we have to draw a line in this line has to be firm. David yeah, here we go again, right . Onomberg guests weighing in the increasing tensions yet again from beijing between beijing and washington. Beijingst is condemning washington which adds 33 entities to a blacklist with trade tensions reverted. Lets bring in selina wang from beijing to talk a bit context. Selina, we are still waiting. How might beijing retaliate . Selina on top of all of those tensions you heard from those guests earlier, there is still the entities list three to the u. S. Department of commerce added dozens more to the blacklist, including 24 Chinese Companies and universities. It argues it has ties to the military and edit another nine entities of human rights violations. The Chinese ForeignMinistry Says it urges the u. S. To correct this mistake and stop interfering in chinese affairs. Access to u. S. Technology and firms has been important to some of these sanctions. Being on this list will make it in software and hardware. A senior fellow at the China Association up International Trade which is connected to the ministry of commerce saying that china has refrained from implementi this unreliable list so far because it wants to have some breathing space for bilateral relations. This reminds us china announced this blacklist and it was repairing it at the height of the trade war. Still doesnt say exactly who was on the list and benefited from when and how it is going to be used. The editor of the global Times Newspaper earlier in the time said china could retaliate to t he Huawei Technology sanctions. That u. S. Companies such as apple and qualcomm could be targeted. Lets look at the other angle. Australia. How is china now defending that decision recently to place more tariffs on barley . Selina effective may 19, china is putting duties and an antisubsidy duty. The china industry of commerce saying it is being prudent and restrained, arguing it is based on evidence because australia get subsidizing. Andralia has rejected that, thebackdrop ms. Iis independent investigation into the origins of the virus and relations with chinas ambassador, saying it could even lead to a consumer boycott of australian goods. Sorts ofs the restrictions they put out are directly related to a health and safety issue. There has been back and forth but chinas Foreign Ministry is not mentioning any deterioration of bilateral relations and say it is purely based on evidence. They say there are investigations going on. David i want to talk about the pboc now. There has been discussion and you can tell there are some details about the potential revising of legislation governing the central bank. What do we know . Selina we still have no details or timetable, but the National Peoples congress has talked about revising as part of its to do list. Have reportedly suggested they could strengthen the Central Banks role in increasing of financial institutions. The pboc mandate, purview, organizational structure. It has been speculated that some of the duties pboc already exercises will be written into law has statutory responsibility. There has been some in china lobbying to remove the situation that prevents the Central Banks from directly financing the government but analysts say the possibility would be low. David great stuff. All things china. Selina wang live for us. From beijing, lets get over to new york and Karina Mitchell is there with an update. Karina thank you. China says its proposed security law for hong kong will not affect Justice System with judiciary remaining independent under the one country, two systems policy. Beijings tightening grip on the city means the 1997 basic law will become increasingly redundant. China says that is not true but has yet to release details on how a security law will change hong kong. Hong kong exports fell for a second month in april as the virus pandemic continued to disrupt global trade and demand. Outbound shipments fell 3. 7 from a year earlier to just under 40 billion, slightly above the median forecast. Imports dropped more than 6 to record a 17 month of decline. Trade talents improved to a deficit of 3 billion. Consumer confidence in south korea jumped at this month from its lowest level since the financial crisis as progress in tackling the Virus Outbreak eases concern over the economy. To Sentiment Index rose 77. 62 from just under 71 in april. It remains below the 100 mark of sentiment versus optimist. It may affect the reading when the bank of korea meets. The u. K. Under political turmoil with Prime MinisterBoris Johnsons top aide refusing to resign. Dominic cummings says he broke no laws by leaving his home at a time when official government policy was to stay inside. The Prime Minister insists cummings reacted within the law, but critics say it shows u. K. Has one law for the elite and another for everyone else. Global news 24 hours a day on air and on quicktake by bloomberg powered by more than 2700 journalists and analysts. Im Karina Mitchell. This is bloomberg. David . David thank you so much. Lets talk germany. A lot of businesses in the country starting to see the light at the end of the tunnel on the road back from the pandemic. Ifo showedurvived by cautious optimism with a gauge of expectation rising after the plunge in april. Still, the president warns we will not get back to previous levels anytime soon. Have a look. What we see here is the impact of the easing of the lockdown mostly. What Companies Say is, ok, our Current Situation has not improved, it is even slightly worse than a month ago. But we think there is hope for the future. There is light at the end of the tunnel simply because the restrictions are now being lifted and thats a good sign. Theres a lot of caution here in manufacturing, in particular. Companies say the Current Situation is really bad. In trade and retail, Companies Say it is very positive that we have been able to open up again even if there are restrictions, even if the number of customers admitted to the shops is limited but at least they see some progress. Is a lot of caution here. At least the mood is not as catastrophic as four weeks ago. The find it interesting distinction you made between manufacturing and trade and retail. I wonder why you are getting more positive feedback from trade and retail. I understand that lockdowns are easing but there is still quite a lot of restrictions in place, and secondly, a palpable fear of a second wave and further lockdowns. Im not sure how strong the fear is regarding the second wave in germany. It may be less than in other places. At the same time, we have to see that in manufacturing, many markets france, italy, spain companiesclosed, so really do find it difficult to get started again. Whereas in retail, that means the shops are open. They were shut down completely when manufacturing was not. In retail, shops were shut down completely in april and now they are opening up again. That explains the improvement in the mood. Still, most Companies Continue to be pessimistic, but the pessimism is not as strong as it was four weeks ago. Ok, so still pessimistic but not quite as pessimistic as before. What does that mean for the shape of the recovery in your assessment . Does it look possibly like a v or a u . To me, it does not really look like a v. I think there is going to be a quick recovery, but not to the old level. We will stay at the lower level. The economists have talked about the 90 economy. It looks like we will stay at Something Like 90 or whatever. At the lower level for a longer time. I dont think it is really a u. There is some recovery but it does not take us back to the old level. The economy will stay subdued for some time. What is your assessment of the German Court Ruling . That is one of the reason some do think ecb might move more quickly and expand the strike while the iron is hot, if you like. I think the ruling is complex. It will restrain the ecb in the mediumterm. It does not apply to the current measures at the very general level. It is a warning to the ecb not. O be too aggressive about it the ruling raises fundamental questions about the eu and the overall institutional architecture of the union. I think this ruling does include a number of risks, as far as the ecb is concerned. I think it will force the ecb to be a bit more cautious about bond buying. Theri dont think there is a stg impact on the current measures, but if we think six month ahead or a year ahead, i think the ecb will have to be more cautious. David that was the president of ifo. Coming up in the program, dont waste good prices, according to christian culture. Talk about the opportunity for australia to reshape the economy and move stronger from this virus pandemic. Thats coming up. This is bloomberg. Haidi australian Prime MinisterScott Morrison is set to unveil his plan to take the economy off life support but also warning that unemployment will get worse before it gets better. Our guest says australia must not wait for the once in a Generation Opportunity to reform the economy. Kristian kolden joins us now. In what ways would you hope the Prime Minister and his cabinet would put forward new policies in this post pandemic era . Kristian good morning. Nice to join you. Its true that we dont want to be wasting a crisis like this one here. In terms of ways they could put forward the reform agenda, i think it is important to look at jobs in particular. We are still very much in the midst of a significant recession. Agendaediate reform should focus on how to get out of this kind of crisis. I like the focus on job making. Focus on rescaling and retraining people to make sure we target the Unemployment Rate and get that down as soon as possible. Its very important that we put stimulus in the next six months or so to really support the recovery. I particularly like the opportunity to invest in more local and smaller pieces. That could very well happen. The important thing it is job creating upgrades. We will be able to very neatly do that rapidly and we could recover from the current crisis. Thei so, one of interesting things is so many things not just the Australian Government but other governments around the world have said we cannot do this because of the impact of the economy would be too much. For example, transitioning to a greener economy. Does this kind of thing prove it is possible to make dramatic changes and for the economy to survive . Kristian yes and no. It proves it is possible and it proves just how big changes you can make in a short period of time but this comes at a devastating cost. We have done quite well in australia in tackling the health crisis, but we saw in april alone, 600,000 people lost their jobs. We can also say approximately 3 lion to 3. 5 Million People thats an enormous labor force disruption that has Significant Impact to the economy, both in terms of income spending and economic impacts, but also help impacts. Hopefully, we generate an appetite for reform and it reforms that desire for we are looking for and how quickly things can turn sour in the economy. David david here. In the same breath, have to ask you should china reduce australia reduce its dependence on china . Kristian like any other strategy, it is useful. Theres a lot of benefit and diversity of trading partners. I think we should be careful about how we create that diversity. I dont think it is useful to deliberately cut down on trade or on relations with china but it is useful for us to think about other opportunities around the world to develop trade with. A lot of countries in southeast asia, particularly indonesia, where there are large opportunities for us to develop trading relationships. I think a focus on that will be very helpful, rather than a focus on reducing trade for china. David ok. Theding more, i guess, in absence of reducing exposure to china. Is it affordable and tactical to actually implement all of these things you are putting forward . Kristian i think it is. Particularly at a time like this. The government spent a lot of time trying to get the budget back in the black and they basically have. That is a means to the ends. When we need it, we have significant fiscal buffers to support the economy. It is so important that government is brave and the way it supports the australian economy out of this crisis. You have to remember an important part of this is for the first time in our history in australia, we are trying to recover from a recession without the benefit of having high Interest Rates. So in the past, we have normally reduced it. We cannot do that this time because we have already got Interest Rates at lower bounds. So, the importance of fiscal stimulus has never been as great as this right now. So, using that fiscal buffer over the last few weeks is going to be very important that we do protect the australian economy and we do support jobs and create jobs. Time andpreciate your for coming on the program. Do not let a good crisis go to waste. Kristian kolding there. Just to update you guys, latest numbers out of brazil are out. Covid19 related deaths, 23,473. Coming off a number of 22,666 the day before. The total number of cases, 375,000. Trend over in brazil. Have a look at our set up as we wake up in the asiapacific. U. S. Futures up, last we checked. Aussie futures finding some gains after the index closed at the highest level since march 11. It is looking like a decent start this tuesday. Plenty more ahead. This is bloomberg. David a quick check of your latest business flash headlines. We start things off with fiat chrysler, nearing approval for a facility. Tesla looks to whether the coronavirus downturn. It would be the biggest so far in europe for the carmakers since the start of the pandemic. It is said to have scheduled a Board Meeting to rubberstamp the agreement. The deal would also need to sign off from the italian government. Staying in europe, the German Government has approved a 10 billion bailout for lufthansa, the airline that was taken private two decades ago. It will give the government a 20 stake, rising to 25 in the takeover of the deal. It will still need to be approved by the european union. It is likely to face opposition from the airlines that have not been offered one. Than 10as added more banks to help manage his upcoming listing in hong kong next month. The chinese online giant will seek approval for the offering at list the committing hearings. Jd. Com is looking to raise around 2 billion to bolster its finances and the increasing ecommerce company. It is targeting june 18 which coincides with the Biggest Online sales event ever. Boom in gold in australia is Getting Started again. This after taking a pause due to pandemic travel restrictions. No major gold discoveries in the last three years. That seems to have miners more determined than ever. Bloomberg asias metals reporter joins us from sydney. What are we seeing in terms of the investment and the determination to find new Gold Exploration opportunities . Yeah, its pretty exciting. Say, they have not been any major discoveries in recent times around the world. Only 25 in the last decade actually. At the moment, weve obviously got these surging gold prices amid global uncertainty. That is gearing up optimism as one australian put it, we are on the cusp of a fairly major boon. In terms of price targets, gold could be hitting over 2000 an ounce. Saying that the other week too. Looking pretty exciting in the sector at the moment. Hopefully it turns out as exciting as it looks here. Looking back, how has australia actually track in terms of exploration spending in the past before the pandemic hit . Sybilla obviously, the pandemic puts everything on pause. Everything else in the world. Was upwards, there trend in exploration spending. Last year, there was a new record. The annual total for 2019 was about 20 higher. Theres definitely been a trend before covid 19. It looks like that is starting to pick up again. What is the outlook for that kind of investment given the impact economically on companies we are seeing from covid . Abilla i mean, we do have forecast the client in Australian Gold output going forward. Its projected to peak in 12 months to mid2022 and gradually fall back, according to government data. Overall, Mining Investment will lift over the second half of 2020 and beyond. Again, we do need some of those travel restrictions lifted in australia. Overall, investment haidi asia metals and mining reporter there. Lots more to come on daybreak asia. This is bloomberg. Good morning. I am david ingles in hong kong. We are counting down to the open of asias major market opens. I am haidi stroudwatts in sydney. Welcome to daybreak asia. Our top stories this hour. China hits back at criticism of its plans for hong kong, saying its National Security push will not change the basic law. Beijing insisting judges will remain independent