The virus, the treatment and a possible megadeal after they are with gilead inr the Biggest Health care deal in history. Atlets take it what look what it is going on this monday. After u. S. Stocks, the pickup and jobs data we are seeing third of 1 . At theshore yuan trading april 14 high and moving away from the lows of 2008 against the greenback but the yuan has been sliding against the basket of peers. Rising, set for the 10th day of gains on the back of the opec deal rubberstamped on center. Checking in on wti and brent this morning. Wti holding steady. At 39. 54, and brent gaining closing up after 5 . Idi we do have this resumption of gains and Risk Appetite in asia. We have a positive picture when it comes to asian asian futures. Up by a quarter of 1 . A big tank expected when it comes to the start of trading in seoul. With kospi futures up like 2 . New zealand resuming gains as well. At the highest level since march. A quick word when it comes to trading in australia we do have the longs birthday, weekend, meaning equity markets are closed. The aussie dollar, currently trading shy of that 70 cent level. Lets get you caught up to date with the first word headlines. Good morning to you. Chinas trade surplus rose to a record as a jump in medical exports helped shipments fall less than expected. Although imports to decline. Exports fell by 3 in dollar terms from a year earlier while imports jumped 17 . Of 53eft a surplus billion dollars helped by the falling price of commodities that china needs. Chinas simmering bout with australia is deepening with beijing issuing a travel warning saying discrimination is on the rise. The ministry of culture warns chinese travelers to be on alert and not to go to australia. The warning follows cambrils call for an investigation into the origins of the coronavirus in beijings decision to put tariffs on some imported australian goods. Agreedd its allies have an extension of production curbs while calling on members to stick to agreed levels amid allegations of cheating. The deal could see brent climbing to 50. It is seen as a win for saudi arabia and russia. The opec plus Monitoring Committee will also meet at fremont meet every mind. Every mpnth. The Johnson Administration will make it mandatory for companies to report attempted mergers that could threaten national security. Set tome minister is want Academic Partnerships and Research Projects to be included in any future bills. 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. This is bloomberg. Antipolice protests continue around the world as some of the largest crowds gathered over the weekend. The demonstrations have been peaceful. Cities have lifted perfect curfews and President Trump has ordered the National Guard out of washington. Does not seem to be a lot of momentum when it comes to the scale of these protest but things have settled down. Definitely half. I think you summed it up very well. The protests on saturday, mostly peaceful. In portland, oregon, but for the most part no arrests on saturday. Protesters still out in the capital today, but much smaller in number. Again, President Trump has ordered the National Guard out of the district. They were troops here for several days and they will start leading within 24 hours. It she it seems like the fever has broken. In terms of the very intense protests. Now we are looking ahead to see what if anything comes next. Lets turn to the jobs numbers smashing expectations but showing the racial divide in the u. S. It is very interesting. On toport a huge shock of the biggest shock ever. At this time of business is being closed, to cope with the coronavirus pandemic and ppp funds coming in to keep people on payrolls but there are some issues with how they gather the data. Say, black unemployment was up even though overall unemployment was down. And i think that is typical of the racial divide you see in the u. S. Over time. Africanamerican unemployment during the very long expansion was one of the slowest to come down and now back up. There are structural things that can be done in the next few months to address that. Seen. Ains to be it does not seem that there is anything aimed at the africanamerican community. It was a disturbing footnote. In fridays surprising report. Haidi one of the highest profile African Americans in government, colin powell, has spoken out. Republican tost express concerns about the president. Lets take a listen to what he had to say. Ini could not vote for him 1996 and i certainly could not this year. I am very close to joe biden in a social matter and on a political matter. Ive have worked with him for 40 years. And he is now the candidate and i will be voting for him. Haidi this comes on the back of that condemnation from jim mattis. How damaging is this to the president . Ros i think colin powell is an oldschool republican in that he is really a little bit more centrist than certainly the direction of the party now. Moste is arguably the notable africanamerican republican in the country. There are a few others we could mention but he is right up there. A very revered figure in the United States. The former secretary of state. An outstanding individual. His comments come on top of a number of former military leaders, other joint chiefs chairman, and across the political spectrum. We do not always know the military what their political inws are but they have been sync with coming out against President Trump the past week. Interesting development. See members of congress. Mitt romney. Lisa murkowski. Expressing doubt about President Trump. We do not have much in the way of new polling but one interesting one in michigan, at battleground state. In 2016. Won trump joe biden up by 12 points. Way beyond the margin of error. Saideople who responded they did not like trumps handling of the pandemic. And they are worried about the economy. These are some trouble signs for trump. He seems to be always able to come back. I would not say count amount just yet. Haidi thank you. Our news editor in washington. We will have more on the u. S. Protests and unemployment inequality ahead with sean harper from the university of Southern California. After the rising opecplus deal. While the agreement be enough to keep them in line . We speak with our guest at the bottom of the hour. Hasext, astrazeneca approached gilead about its Biggest Health care merger ever. The details ahead. This is bloomberg. Lets get a quick check of the latest business flash headlines. Hong kong Stock Offering at 123 hong kong dollars pershare that would raise 2. 7 billion when it begins trading thursday. Chinas secondbiggest Gaming Company has its main debut in the u. S. And makes it hong kong debut at rising tensions between hong the u. S. And china. The anticipated winding down of the coronavirus lockdowns is prompting a recovery at rental sites such as airbnb. They shut down with march with people confined to their homes but a gradual easing of intrictions has given arise demand for vacation rentals. The ceos says people want to get away but do not want to take a plane. Apple is letting people pay vi monthly installments. The apple card will let customers split the cost with staggered payments. Ipads,l will cover keyboards and monitors over 12 months. Apple launched the Program Last Year with 24 months at zero interest. Drugmakers behind the most prominent response to the pandemic are looking into the possibility of a combined future. U. K. Based astrazeneca has made an approach to its rival gilead. U, if the deal were to happen, it would be a blockbuster for the industry. Su it would be a history making deal, the largest ever for the drug and health care industry. Astrazeneca is the u. K. s biggest drugmaker in his valued 0 billion and one of the codevelopers of a vaccine for coronavirus. Meanwhile gilead its u. S. Rival is valued at 96 billion as of friday. So the combination of these two 240panies would be almost billion. Gilead is the maker of the only u. S. Approved treatment remdesivir. Bloomberg news has learned astrazeneca made up preliminary and in formal approach to gilead about a potential merger of months ago. According to people close to the matter, that contact was made to gauge gileads interest in a possible tie up. Most people say that no terms were specified. While gilead has discussed the idea with advisors, no decisions have been made. This is according to people close to the matter. Representatives for both companies declined to comment. Astrazeneca has made treatments for conditions ranging from crazed cancer to cardiovascular disease. There are analysts who question the therapeutic synergy but the financials make sense. Astrazeneca stock has been up 41 in 12 months. And it is one of the best performers in the industry group. Watchers are saying this kind of big deal could signal a return to normal for drugmakers. Focused on filing treatments and vaccines for covid19. analysts are saying that the industry view this speculation even if that is all it is as a very positive sign that Drug Companies are starting to look past they have been so focused on for the past six months. And that is the covid19 crisis. These analysts also point out while there has been a race between companies to develop treatments and vaccines, that neither is really high and profit. To normal isturn positive in a lot of ways. They also point out the possibility of a combination between these companies could blow away all other deals. If you look at the top five deals and health care and pharma this combination is bigger than crystal and warnerlambert pfizer. A monster deal. A lot of focus here on merger monday in the u. S. It will be built with a lot of headlines. Back to you. Haidi su keenan reporting on that megadeal. You can get more on this big ofg deal on todays edition debris. Bloomberg subscribers go to your terminals. Nd right there on the mobile you can always customize your settings. Get the news on the assets that matter to you. One stock we are watching in the kiwi session, in new zealand rising 2 in the wellington session amid costcutting plans. Gains of closer to even 10 . We heard from the ceo in an interview over the weekend. Announcing plans to reduce wages by another 150 million kiwi dollars. Reduce hours and job sharing part of this cost cut plan. They have let go of around 4000 workers. Pandemic and travel restrictions have ground travel International Airline travel to a halt. More to come. This is bloomberg. Stocks seem set to follow the friday rally in u. S. Equities. 42 s p 500 up 2 and up since late march. Trust sayshaverford do not be surprised when we get a correction. He joins us now from philadelphia. Good morning from hong kong. Thank you for joining us. We want to get your view on this jobs data. It dampen the urgency for more stimulus from policymakers and put a wrench and the stock rally we have been observing . First of all, i think it is a confirmation the economy has seen trough. We are starting to improve. And it may very well put a wrench in the negotiations for the fiscal stimulus. And who knows if the market to the senateely and the house battling back and forth . At the same time, we are not sure if we even need more stimulus, given the extraordinary amount of both fiscal and monetary stimulus that has been put in place already. What can you extrapolate about the u. S. Consumer, given some of the impotence it has seen impetus it has seen. What is being demonstrated right now is the u. S. Consumer is unleashing pentup demand. Really in the dna of the u. S. Consumer to spend. And for the better part of two months we have not been able to spend, other than online purchases. Seei think we are going to a continued unleashing of pentup demand, at least initially over the next month, and then it will be up to whether the consumer has confidence, and there are a lot of variables around confidence in terms of this health care scare. What is your preferred way to play the recovery in Retail Sentiment and Consumer Sentiment . You are saying stay away from valued traps, some of the traditional who have been in a lot of trouble lately. Whenever you go into a bear market, you have leaders and the leaders continue to be the leaders, and you have the laggards and the losers. Inhere is this more clear the retail space. Where never before has there been such a golf between the have and havenots. , jcpenneye havenots just went bankrupt. Kohls,s macys, nordstroms, tapestry. I would stay away from those, despite the temptation they have been beaten up so much. And i would stay with the proven lows,s, companies like. Ollar general, cosco these are companies you might have to pay up for them, but they are the secular winners. And i think that is very clear. Do you see this rotation playing out, and is it as we continue see growth to value, is it more from large caps to small caps . What is the next leg of this rally . Term. Ht, so rotation is a we would use the term participation. This market is broadening out. Top 10s not just the technology names. It is starting to broad now. It is not as though everyone is selling microsoft to buy small caps. I think that is a very healthy sign. That the market is broadening out. Having said that, markets do not go up in a straight line. We can expect pullbacks. We can expect corrections. But i think when we look out a year from now, stock prices are going to be higher than where they are today. Consensus is for a second wave to crop up in the back half of this year. How are you positioning, are you anticipating that . Expression,have an one of the rules of investing, and that is when all the experts agree, Something Else is going to happen. If you want a consensus opinion, there will be a second wave this fall. Every single expert is saying this. And what happens if we do not have a second wave of the coronavirus. I suggest if that is the case, were going to have a very Strong Economy going into the inter part of this year 2021. And a very strong market. It is a contrary viewpoint. Sayshere is nothing that we have to have a second wave of this virus. What does that mean for the earnings, what right spots are you observing . What bright spots are you observing . Well, in terms of Company Announcements and company seeing thatare whether it is from mastercard, from fisa, we are seeing that the consumer is starting to spend. Whether it is the dallas fed, which is tracking cell phone movement. People are getting out. They are not sheltering at home anymore. I think this is all part of the , in otherinearity words the news is getting better. Or put another way, the data points are getting less bad. And we expect that trend to accelerate through the summer. Thank you so much hank smith the cio at haverford. Lets get you some lines across the terminal. The latest on the listing in hong kong. The biggest in the city for some time. 133 million shares on offer other macs price of 236 hong kong dollars apiece. Putting the company on track to raise 4 billion as a secondary listing this morning. Checking in on oil rising after opec plus hammered out a onemonth extension of cuts. S ceo if thenergy deal be enough to keep the compliance laggards in line . Brent is gaining 1. 2 this morning. Exempt forweek crude. Some optimism continues for the uptick in crude prices this morning. This is bloomberg. You are watching daybreak australia. Im Karina Mitchell with the first word headlines. New york city will lift its protest curfew as it prepares to reopen after the pandemic. Andrew cuomo says covid19 is the one variable for the city and they are calling on all protesters to seek health checks. The weekend saw some of the biggest demonstrations across the u. S. , most of them peaceful. Minister of Singapore Says the future will look very different post covid19. In his national addressed, he said the city state will allow be returning to the interconnected Global Economy that existed before lockdown. And with travel hammered the future will be more tough. Singapore spent the equivalent of 20 of gdp on its response to the virus efforts. Russia is investigating a Massive Oil Spill in siberia. An estimated 20,000 tons of fuel leaked from a storage plant outside the city, 1800 kilometers northeast of moscow. It is operated by company accused of making the area one of the most polluted places on earth. President Vladimir Putin only learned of this field the spill via social media. 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. This is bloomberg. Will take a look at oil now because we did have been news that opecplus agreed to a onemonth extension of its Record Oil Output cuts. Every member of the alliance ofned off on another month compliance measures after hours of negotiations over the weekend. 8e can see brent gaining by. Percent. Wti lagging by a quarter of percent, shi shy of 40 bucks a barrel. s founder joins us. Does this give them confidence that the political fragility of this deal may be removed somewhat from the array of concerns on the demand side . Thank you for having me. Yes, of course. Very good for markets. Since last agreement. And the extension of these the opecplusat have agreed in their previous meetings for another months, even though it will have a marginal access but it is very important for markets. Why is it for onemonth and what should we expect to come next. This is a very good question. Talking to different parties and in thers involved opecplus countries, especially russia, it is important to understand from their perspective of how long they can continue the current cuts. We should not forget that opec has already had a plan to ontinue the cuts that opec agreed and to continue the current 9. 7 million spurred day of cuts. That is not going to be easy for russian producers. And Service Companies to go beyond overall totals for five or six months. The russian producers have different expectations on the market. They are expecting the demand is going to pickup from june onward. So, this month is going to help them set a better trend of the demand. How it will pickup, but it will not be easy on russian producers and Service Companies to continue sustaining the current deep cuts. The cuts forven the months after this, there is butement in place for opec iso the joint of opec going to observe and have meetings every months. They are looking into supply and demand and decide accordingly how much the opec should take out of, take supplies out of the market. They are trying to balance the markets on a monthly basis. Are you feeling more optimistic when it comes to the demand side . As we see economies coming back online. We had the data showing that china imported record levels of crude in may. Is this the feeling that perhaps as the lockdowns easy can see greater demand . That is a very good question. I think yes. And we are optimistic on the demand side. We see more of a gradual demand growth for oil and overall sectors but it is very important consider that different Petroleum Products are going to have different growth trends. For instance, we are thinking for gasoline, especially you are heading into summer and the pete driving season. In United States is going to grow rapidly the pete driving season. Higher than the year before because people feel safer to drive with their cars. They might be hesitant to use Public Transportation or flights. To travel. So they are going to drive more which means there will be more demand for fuel. We are expecting jet fuel to recover that fast. It might be more of an lshaped recovery. Diesel to begin with did not have a genetic drop the way that jet fuel and gasoline had. But the recovery for diesel and industrial use might be again slower than gasoline, but overall, for oil demand, yes, we are expecting for the demand to grow. Unless you are going to see second wave of covid19 outbreak. Sometime in the fall. Lockdownere is another in the u. S. And globally, then you might see another demand trough. A second wave of outbreak, then we should see a demand growth. Opec dealu the posted itsaudi selling price. What other producers follow suit . Exactly. Expectingrs are different heavy light spreads o 2020 beforee im the outbreak happen. Ofw we are having a huge heavy crude oil out of markets because of the opec , saudi arabia and russia, cut back a of heavy oil now they raise their prices. We should also consider that both countries, especially saudi arabia, is exporting less volumes of oil. Overall, the light and heavy crude spread for the refiners. Gasoline andat the light distillates, heavy distillates, margins also have changed for the refiners. Fromy much different trend what they were expecting before the covid19 outbreak. Shale patch to the in the u. S. The upward trajectory for oil prices. What does that imply for that space . Good question. Ry we have been discussing with many different u. S. Shale producers and companies, back in prices dropped dramatically and now that the price has increased beyond everyones expectations. Most ofrealized is that the producers are not going to change their strategy. That they had taken when the prices had a downturn trend, which means that now the priority is not necessarily to maximize their production, but it is to maintain cash flow. They are having their focus only on their longterm strategy and better assets. But something we should consider is that most of the u. S. Production cuts in the past months were happening due to the more short cycle activities. As you see the prices are picking up, we can see the production to recover especially now that we are hitting the driving season in the u. S. , gasoline demand is picking up. Growth in u. S. Production but then we are moving toward the last quarter of 2020. All of those reduction in drilling activities in most of that areshale fields going to impact of the longer cycle of production, they are going to kick in. In the next couple months you might see a production ramp up again but as you get closer to the end of the year we might see another cycle of u. S. Production drop. Mostly due to the activities or regular activities. Thank you so much for your how markets are faring and lets check in on prices on this monday. Brent is gaining ground, easing some earlier advance. Up by 10th of 1 . Asian futures pickup. Nikkei futures trading ahead of japanese gdp. We want to highlight what is going on and wellington. Kiwi stocks adding 2 . Airlines on watch in the region as we get more updates on travel ouping in japan, ana is going to reduce national flights. And will get a credit line. We are keeping a close eye much trouble sector this monday. This is bloomberg. This applies surge in hiring by u. S. Companies took markets by surprise. President trump call the numbers outstanding and a tremendous ine to the quality memory of george floyd, the black man who died sparking global protests we are seeing. Beyond the headlines you see that black unemployment climbed to the highest in a decade. While white unemployment fell. Joining us to discuss these numbers and the state of racial tensions in the u. S. Is the university of Southern California professor and the head of their race and equity center. On theure having you show. We appreciate your time this sunday evening. The latest numbers when you break down beneath the headline, the recovery we have seen in u. S. Jobs numbers, does it really just reiterate the status quo when it comes to how the economy continues to create divisions along racial lines . Absolutely. I would like to connect these black unemployment numbers to the current protests. It is important to understand that it is not only Police Killings of unarmed black people that is fueling these uprisings in the u. S. I certainly do not mean to that we should not care about the killings of unarmed black people. We absolutely should. But it is also important to understand that it is the many manifestations of systemic racism that people are protesting. When ever there is statistical ,eporting of the wellbeing including employment, black people are almost always at the very bottom. We, as well as the people who love and support us, are tired of seeing systemic Structural Racism put black people at the bottom. I think that is part of the problem where obviously this has been the tipping point. In a perfect storm. People having to deal with the lockdowns and the economic demise of so many families and their livelihoods throughout the last two or three months but when you talk about a system that, as you say, is inherently from within build against people of color succeeding, how do you dismantle that . How do you reform that beyond the anger we are seeing on the streets . The anger we are seeing on the streets most certainly will help. But we also need really good race focused policies. Hereny policy activities in the u. S. Are done in ways, but raceless yet the outcome of those policies consistently yield effects onsparate people of color and black people specifically. So we need policy change. We also need to move beyond statements. Point pointis thousands of corporations, have released statements boldly proclaiming that black lives matter. Mean this, then they will hire significantly more black employees. Action theyconcrete can take to help address the joblessness. With economic inequality coming into sharper focus, structural reform will be required here. The disparity we are seen among job holders according to the education backgrounds. What kind of reform will be required on the structural front in order to allow for the hiring of the black community . Sure. I think it is structural reform. Companies think that and firms and every place that employsmericans americans have to have better strategies. So many places have been doing the same thing year after year. In their employment practices. Therefore, it does not surprise me that we have not seen the needle move in really significant ways in increasing people andof black especially black professionals in various roles in the u. S. Economy. Important, i know we are talking about fridays unemployment report, but it is also important to note that black people do not just want jobs. We want our employers to treat us with dignity and respect. We also want equitable opportunities for advancement in companies and firms and other places of work. We most certainly do not want to experience workplace racism, which is a common occurrence in far too Many Companies in the u. S. Usc grace and Center Hosted a National Forum this thursday on demonstrating care for black employees. This week and beyond. We had more than 3300 people join us for that live forum. That weas really clear absolutely want to increase black participation in the american workforce. st we also want black people professionalism to be highly valued. That is important as well. Thank you so much for your time. Shawn harper, professor at the university of Southern California and head of the race and equity center. Xeroxormer is cr ceo was the first black woman to take charge of a fortune 500 company. Largeld bloomberg that companies are starting to feel on easy about the racial divide. The top of my worry list, the ip of the concern list, entered this debate during the coronavirus at the start of the coronavirus. Optimistic. Interestingly enough. Optimistic about maybe coming out of this disruption time in a better position than we entered. That people,ing companies in particular, Pay Attention to what we now call these essential workers. We start to understand what inessential worker really is. The guy who delivers food, stocks the shelves. Hoping that knowing that a lot of the black and brown people in the United States worked at the lower end of the socioeconomic employment ladder, i am hoping that we can use this time of total disruption pandemic, racial unrest, socioeconomic imbalance to reset the whole conversation about how black and brown people fit into the employment ladder but also how Companies View these essential workers. And how important they are in how we have to pay them and nurture them. Im hoping it is an opportunity but i do not know if it will be paid i am glad that you are optimistic. How optimistic are you about some of the statements being made by corporations . Do you think they feel authentic across the board . Many companies, many more than i have ever seen before, the vast majority are speaking out. Many more than ive seen before, a starting to feel uneasy about the state of america. In this space. They are starting to realize this is fundamentally unsustainable. It is definitely unfair and wrong. Tilt is starting to come off. We are starting to go out of balance. It is really important that the rhetoric in the administration, which is negative and demeaning, that has to be offset by some action, real action, funding groups, changing employment practices, being affirmative and how they actually address employment needs, being affirmative in hiring black and brown people. Affirmative at the board level. Without that passion and that drive, i think the companies are in are starting to realize more and more they are not making progress. They will have to do something. And the good news is it is like they all came together at once. This is enough to make change. At least if we get enough of a crescendo of voices, we can keep the action going. This is not the first time a black man has been killed i up policeman. It happened before. Happened before that a before that. Im hoping this time we do not let this sacrifice of this human go unrequited, unpaid back. It is important that companies started stand up and say we have something to do with this. Something to do with the solution. What makes this seem different to you, the outcome of this is going to be different and more positive than what it was in the past . I think that the number of the broadbased coalition now starting to speak. Littledo not get my optimism as overjoyed optimism. Dont get me wrong. I do not believe around here it will drive change. We have to be involved and stay in fall. All of the voices in the street and in the news media, all the voices in Corporate America are going to have to stay involved to see true change. The only reason why i am more optimistic is that people are getting fed up with the current state of play. Ursula burns speaking to us earlier. To come on daybreak. This is bloomberg. A quick check of the latest business flash headlines. Astrazeneca is said to be interested in a merger with gilead. Sources tell us contact has been made and it will be the Biggest Health care deal in history. No terms have been released and no decisions taken. 0strazeneca is valued at 14 billion. We are told a gilead is not interested in a merger. South korean financial authorities will provide 1 n to keep the countrys carrier operational. Government bonds will be issued as early as the end of this month Korean Airlines has received a similar amount for the first half to keep the carrier of float through the rest of the year. British airways is threatened to fire all 4300 of its pilots and rehire them on individual contracts. In a dispute with unions over new employment terms. It plans to shed 12,000 jobs. The carrier has also begun a rival,ight for the when they plan to resume services in july. Bigoming and not it is a week for global economies. The fed decision, china inflation due on wednesday. Plus, india cpi data on friday. Joined us in the next hour. We will have japans First Quarter gdp numbers. And the trade balance and the next hour. A lot more to come. This is bloomberg. Welcome to daybreak asia. Are counting down to the market open in japan and south korea. Our top stories this hour, asiapacific markets look to start the week with gains after payroll numbers smashed expectations. And eightfour straight session as opec and its allies agree. The new deal last a month and a cartel will keep an eye on production levels