Florida sees its biggest oneday rise, some of hollywoods biggest names test positive. And chinasotest crackdown in hong kong seem to have spurred a reaction at the ballot box, voters have turned out in the hundreds of thousands. Lets look at how the week is setting up in asia. A pretty positive lead, asian stocks will keep the rally going. About half a percent after the u. S. Stock rally extended that weekly gain on friday. The s p 500 outperforming the nasdaq for the first time in two weeks. That bifurcation will continue. Nikkei futures up 0. 3 . Trading in chicago after a three i Third Straight weekly decline, continued concerns about another wave of virus cases in tokyo and elsewhere in japan. 1 ney futures setting up for 1. 6 higher. New zealand, blue signals when it comes to trading kiwi stocks after that threeday selloff, up 0. 7 . The level of Foreign Investors piling into the kiwi market suggests we will see further outside with that golden cross, crossing the 200 day dma pattern starting to form. Stability of cross currency so far this morning. The global rally continues defying the news of global infections now approaching 13 million with fatalities above 555,000. In the United States, florida reporting its biggest oneday vice in coronavirus cases since the pandemic began. 15,000 new cases joining the states total, topping earlier records from new york, california, and texas. Tom mackenzie joins us with the latest. This situation in florida continues to worsen. Florida is very much the hotspot now in the u. S. And one of the global hotspots, 15,300 new cases, that compares to records of around 12,000 daily cases to states like new york, california, and texas. They saw a 6 daily buys in florida compared to an average increase of a lender a little under 5 the past week. The number of deaths in florida has declined to 44, the most recent count, from 44 from 95 the day before. With the infection rate so right florida officials have said it is not going to be long before hospitals in the miami area reach capacity. Thats a concern for Health Officials in the state. Almost 8005eported hundred cases, but the rate of increase was below the 70 average for california. In arizona, the number of cases slowed but gets rose for a third day. Medical experts say there is usually a lag between the number of infections in the death rate. The rates of infections across all those main states in the u. S. Continue to be a major concern. Turn to thailand because the country seems to be making progress on a vaccine. What do we know . Tom thailand has said they could begin human trials of their vaccine as soon as possible. They performed trials on monkeys and mice and those have been successful. They generated antibodies to fight against the virus. The human trials, those trials start in september, expected to run through december. If those are successful, thailand could have its first vaccine available by the second half of 2021. In terms of the context globally in the rush to find a vaccine, you have 160 potential covid19 vaccines being studied across the world with 21 currently at that clinical evaluation stage. Thailand seems to be making decent progress. In terms of the infection rates in other parts of this region, youve got concern in hong kong that we have been discussing, they reported 38 new cases. Local spread seems to be continuing and that city. Transmitted,lly eight cases that were imported. 13 cases of unknown origin. That is of concern for Health Officials in hong kong. The government has tightened some social distancing measures for some businesses over the weekend. Mr. N, the economy economy minister said the people need to remain on high alert. The number of cases increasing in japan, tokyo reporting more than 200 cases for three straight days. In australia, the focus remains on melbourne and victoria. Both students and melbourne will go back to Remote Learning and. Going to school from july 20 for at least a month as part of the measures to contain that a second wave. Australia secondlargest city reentered lockdown after infection rates jumped. They saw 273 new cases and one death with the latest numbers. Updatemackenzie what an on the coronavirus outbreak around the world. Later this hour, we will take a closer look at how australia is dealing with the virus and what other countries might learn from it. One of the most prominent Infectious Disease specialists, youre calling on my joins us. Peter collignon, joins us. A breakdown of Economic Data led by china gdp. This is bloomberg. You are watching daybreak asia. Singapores ruling party 189 of the vote, but says it was not a great result. It was overshadowed by producer some of the response to the coronavirus and a final tally was the worst showing since independence in 1965. The main opposition claims 10 of the 93 Seats Available. Not a few good elections, but one where people are facing real problems and expect more to come. It is not as strong as i hoped for, but it is a good mandate. I think the popular vote is respectable under these circumstances. In other news, opposition parties say more than half a Million People braved the coronavirus to vote in primary elections for prodemocracy candidates, organizers say the times as many people showed up as expected. An exit polls in poland show the president election is too close to call with both candidates claiming victory. Conservativehed a income it against a liberal mayor. Initial at the misgiving about 50 with a margin of error, official was also may be released later. The u. K. Spent almost 900 million on new border infrastructure with brexit less than six months away. The cabinet insists everything will be in place for the final split despite london and brussels failing to agree to terms. A week from the trade secretary highlights concerns about border plans including the threat of smuggling and a challenge when the wto. Global news 44 hours a day on air and on and online, powered by 2700 journalists and analysts in 120 countries. This is bloomberg. The latest measure of how the economy is recovering, china gdp numbers lead a happy week for Economic Data, the bank of japan, a deaf career, and bank of indonesia will announce policy decisions. We will look at the indian inflation on monday at australian job market on thursday. Joining us for a preview of the week ahead is sian fenner, an economist. Great to have you with us. Busy week ahead for economists. Let me start with china. What are your expectations for secondquarter Economic Growth and what to build a recent outbreak in beijing and perhaps the pressure on consumption do for chinas recovery for the rest of the year . We are looking for growth to bounce back to 1. 5 year on year, following that reconstruction in the First Quarter. The economy isnt being held back by the supplyside. Month oing to be the june will be interesting. Really, it is the recovery, but you are right, there are still concerns. Consumption was mentioned. Employmenten by concerns, employment growth, but also the resurrection of an outbreak in beijing. Concerns, but measures to contain the outbreak, we are looking for the Economic Impact to be fairly limited. We are looking for the second have to be much stronger. An overall growth of 2 for the year. We have President Trump dismissing prospects for a phase ii china trade deal given what he calls severely damaged ties with beijing. Given that we dont really have the completion of phase one when it comes to mentation, does this factor into your Economic Forecast for recovery in china . Honest, i dont think we are optimistic about a phase ii deal with china anyway. As what has been shown with the phase one deal, there is a lot of hurdles to overcome and different views and it is unlikely that a phase ii will be done. Ecting the phase one deal of course, tensions are high and it will have an impact. We have the bank of japan deciding Monetary Policy this week. Can Asian Central banks or any Central Banks deliver much of a surprise . Is it just steady as she goes until we see some certainty that economies are breaking out the other end of this slowdown . Sian we are seeing action by the Central Banks, Interest Rates are at record lows across the region. We are not going to get any surprises. Most economies are expecting Interest Rates to be on hold. There are some sections, one of them is the bank of indonesia, which will be out this week, where we are looking for a basis point cut. They are able to do that because they have more space than other ones. Real rates much higher within the stable currency. The impact of q2 is going to be severe in it that asia in indonesia. Bank of japan, we are expecting it is going to be steady as she goes. Any cuts are extreme we unlikely. Singapore, you are on day 13 of yourself isolation after getting back to the country. In terms of the Election Results , just getting over city 1 of the popular vote passes for a political shock, does this pose any kind of threat, particularly as this exposed economy is going through such trouble . Sian probably not. 61 of the vote, they still got a mandate in the parliament. We dont see that as being a concern going forward. We have seen a large range of measures. 1. 3 of gdp, the biggest for skills to be less in history. We have seen support for employment and wages. This fiscal support should help the recovery of domestic demand in the second half. With the q2 number coming out, we are not optimistic. We are looking for gdp to contract 50 year on year 15 year on year. That is a large contraction, much larger than the Global Financial crisis. Talking about singapores independence, we saw singapores ruling party seeing the worst performance in 55 years. Let weaken their mandate to carry out some of their economic policies . How does that affect the economy there . Sian in terms of its fiscal support, we dont think it will have any impact. It will be interesting to see in terms of Foreign Policy, in terms of working, that was the key difference between the opposition and the ruling party. At the moment, it seems like it is going to be carrying on. It will be something we have to keep looking at. We dont see risk as being heightened. Great having you with us. Cedar asia a comment at oxford economics. , indias most viable lender by market cap, set to probe lending practices at its vehicle units. This according to sources familiar with the matter, saying that the bank decided against proceeding with an earlier proposal to extend the employment of ashok on akamai a veteran at the bank, this after the investigation was completed the Vehicle Financing unit he headed had outstanding loans of more than 60 billion, he retired at the end of march in line with his contract. A bank set to be lending probing lending practices. Coming up, more than half a billion hong konger is turned out to vote in prodemocracy primaries despite a security law threats a viruslike as well. A viruslike as well. This is bloomberg. Part of the opposition groups in hong kong saying 600,000 people cast votes in unofficial primaries over the weekend to pick Democratic Candidates for september selections. A coanchor joins us from hong kong. What kind of message are prodemocrats sending here . Organizers are saying the hong kong people have spoken and they want more Democratic Candidates taking part in this Legislative Council election happening in september and they want to make sure to validate the process. You mentioned the numbers, we mention about 600,000 people came out over the weekend to field these candidates, that is the most triple what organizers were targeting and making up 13 of registered voters in the city. That is despite concerns about the National Security legislation that was imposed two weeks ago and despite the fact that we have social distancing measures that came into place over the weekend, amid a flare up of virus cases we have seen in the last couple weeks. Overall, it seems like this went by rather swimmingly, despite some minor scuffles we did see on friday, police did raid the Public Opinion research institute, a widely used poster and coorganizer of the primaries. Police said they had a warrant but made no arrests but they received complaints about a possible hack that may have been leaking information. That is still under investigation. Overall, this process did go through rather smoothly. For prodemocrats to secure the two thirds majority in september and continue to thatout ride out, victory in november, and a District Council elections. A lot has happened since then. Successful, that gives them the power to block the chief executives agenda and may even mean they can force her to resign after rejecting her budget proposal. A lot can happen from now until september but so far, that is what we hear, a lot has happened and the results come out later this monday. Will Democratic Candidates be allowed to run in september . Thee are concerns of primaries themselves could violate the security law. We heard some warnings from the secretary of mainland and constitutional affairs, speaking about it last week, saying that taking part and planning these primaries was a breach of this National Security legislation. There are warnings that hosting these voting sites at district offices would be considered a violation of this law. That feels concerns that the government may disqualify these prodemocracy candidates from winning those seats. We have heard this has been done before since 2016, the government has disqualified into blocked nine candidates from running because of their support for hong kong independence. Democrats argue that this primary is not a violation, it is not an act of secession or collusion because they dont have an agenda to split the country and they arent forcing funds externally. They have done so via crowdfunding, we heard from proDemocratic Candidates trying to bolster support and cover some expenses, but as of friday, we learned they have only been able to raise about half of their month target, about 450,000. A lot of questions about how much momentum they have. How symbolic was this given that it seems like the avenues for protest or political specials seem to be dwindling in hong kong . Yvonne i think most saw this as an opportunity that perhaps this is one of the few venues that they can express their views right now. As we heard from these organizers, the people have spoken, people are coming out in numbers, big crowds to at least do what they can and vote in these primaries. Maybe not a lot of people nobodys going to happen come september, but this is the avenue they say they can express their opinions. Lines, 250 video, polling stations all around hong kong over the weekend, it was a hot weekend as well, people came despite the heat to do so. This is a big show of people power, what happens next is still a question. Man with the latest from hong kong. We will have more perspective on the democratic primary vote ahead. Councilmember joins us in the next hour. Lets get a check of the latest business flash headlines. The chairman of walt disney theme parks says he is happy with demand as the Company Began reopening its resort in florida. The Magic Kingdom and Animal Kingdom reopened saturday while epcot and Disneys Hollywood studios will follow on wednesday. The parks have been closed for four months because of the coronavirus and reopened even as florida reported record new cases. The executive chairman of struggling office space startup wework says he expects positive cash flow next year. It will be a profitable venture with the diversity of assets assets in 12 months. We struggled due to coronavirus as people work from home, workforce has been cut in half, and been bailed out by softbank to the tune of 10 billion. Credit suisse said to be considering cutting hundreds of jobs as coronavirus boosts online operations. The bank is looking to save money to meet profit targets. The new ceo is said to be considering cuts to credit suisses domestic network. Lets get to a check of asian market setting up for the start of trading. Picking up from that positive friday news, new zealand extending gains to 0. 7 . Foreign investors adding to bullish signals for kiwi stocks. Nikkei Futures Holding steady, after his Third Straight weekly loss amid concerns of rising cases in japan. The bank ahead of the bank of korea decisions, futures turning lower, 1. 2 lower ahead of the start of trading. Activeing octave contracts in the u. S. , seeing that extension of the valley we saw last week, the s p on friday outperformed the nasdaq for the first time in a couple weeks. Coming up, the white house could take strong action against chineseold social media apps. President trump Getting Started with tictoc and we check. This is bloomberg. This is daybreak asia coronavirus cases in the u. S. By two more than 3 million with almost 56,000 new infections. Florida reported the largest rise of any status of the pandemic struck. It exceeds record set in new york and texas. Deaths did fall by half. Global infections are putting 13 million with fatalities above 555,000. Infections surging in india with almost 39,000 new cases reported sunday including 550 deaths. It pushes india into third place in the global tally behind they do as and brazil. Dew cases include a bollywoo superstar. India reported more than 20,000 virus cases a day for almost two weeks. Aheadell in asia trading of a meeting of opec and its allies, which may help scale back the curves that have helped stabilize the market. The group will review forecasts at on wednesday. Told top russian producers are preparing to raise oil output next month. Fallen nissan boss is hoping those who helped him flee japan last year, but is refusing to offer details about his escape. He then u. S. Citizens are in detention. He declined to comment. Onbal news 24 hours a day air and on bloombergquint take, powered by 2700 journalists and analysts in more than 120 countries. This is bloomberg. President trump Getting Started in taking action against social media apps according to his top trade advisor. These comments coming from Peter Navarro. Is anything imminent at this point . It is hard to tell. China watchesfrom that they think President Trump will take action any day. This was the latest in a number of Trump Administration officials, including the president himself, to talk about tictoc and other chinese social media apps. Some of the motivation seems to be different between trump and secretary of state and peter stealingtalking about data and Information Warfare, whereas President Trump basically said it was because of the coronavirus and it was an indication of how he blurs actions in Foreign Policy between National Security and trade policy and political goals. It seems the impetus is coming more on the privacy front in terms of tiktok. The tensions continue to escalate. The u. S. State department issuing a stern and specific warning to americans working or traveling in china. Was a tightly emailed to americans traveling in china but caution, toncreased tension, the use of exports, suggesting that Americans Communications are being monitored. The state department provided no details or examples, this came across in the night chinese time. It seems like a retaliation is ongoing and trade relations coppers and trumpets talked about a low chance of getting phase ii two trade talks going again. And othere privacy aspects of course, for the Trump Administration, it comes back to the coronavirus, they are feeling that china mishandled that and that that is now coming down on prison trumpet his reelection. If it seems like the president is surrounded by china hops at the moment, mike pompeo, Peter Navarro among them, is an interesting time. Great to have you back. Thank you. Joining us from washington. If you are away from a screen, you can find analysis and a big newsmakers on blue murder radio. Now broadcasting live from our studio in hong kong. This of yet the app or bloomberg radio. Com. This is bloomberg. Find other of the markets. Another check of the market. We are seeing them gain ground, a rise of 0. 6 . Nikkei futures in singapore opening to the upside, after a decline on friday, rising cases in tokyo, putting the nation on high alert again trading after rising for the first time in three weeks that brings is a boj rate decision. Lower asave set a oversupply concerns are fading and the focus on appetite for the superlong sector. Superlong yelled may fall as the u. S. Curve is flattening. Japans earnings season picking up about 6 of stop faith desktop exclusive companies have reported top exclusive companies have reported. Many firms have left gaps in their fiscal year forecast. That has added to the drag on earnings revisions but the pace of downgrade has slowed since april 1 for four of the five for four oftors the five biggest sectors. Donald trumps decision to wear a mask in public for the first time came as cases of covid19 surged to record levels in the u. S. Our next guest is a number of the Infection Control expert group that advises the australian government. He joins us from a pleasure having you on. Is it frustrating that he topic of masks has become a politicized topic globally and is it because of earlier guidance from the likes of the who were not clear as to whether people should be wearing personal protective equipment . Prof. Collignon i think it is a concern or worry that it became politicized with one group saying you dont need them and the other group saying wear them all the time. I dont think who werent clear with what they were saying about masks and that he had to be clearer. Basically, they are saying, wear your mask whenever youve got reasonable transmission and the community, which is a good idea. Masks maybe protect others rather than the wearer. If ive got covid and ive got a mask on, if i coughed, it stays more confined to my face, so the droplets dont spread. It does have some benefit for the wearer as well. The main advantage of wearing a mask is when youve got the minute he transmission. In australia, there is Minimal Community or no Community Transmission and places like adelaide, brisbane, even sydney. Ising masks compulsory probably a marginal exit rise exercise. If you are in melbourne, probably one in a thousand people may have the virus, you do is a good idea to wear a mask where you cant keep physical distancing. If you can keep a meter and a half apart from people, the risk of getting covid is low but in public transport, in some workplaces, it is important. The underappreciated protection is face shield. ,he are more protective particularly in the workplace, and protects both you and protects everybody around you. People cant find you, you dont get in your eyes and nose, but also stops you touching her face. There are other things we need to think about as well. Does this become the new normal . States have minimal levels of the minute he transmission, one cluster over the last few days is nine people in south wales. When we get to the point of reopening borders, which i assume happen before we get a things, does that mean are going to ignite again for australia once borders are open and should people differ to Wearing Masks or face shields because realistically in those situations, particularly in urban places, it is not possible to effectively social distance. Prof. Collignon whenever there is a risk you can get be introduced, look transport for instance, it is a good idea. Im not sure we will be indebted situation. Weve got a lot of testing and will continue to have testing. We reopen our borders, initially, it will be potentially granted anyway. Lets say we reopen with new zealand, maybe south korea, taiwan, who have low levels of transmission. Both people coming in are no different than people in australia. Insistingental about and that everybody wears masks has got to be taking into account what is the risk of spreading and being undetected . Testing,ve a lot of you can measure that risk or accurately. Think ifrne, i would you cant physical distance, you need to wear masks. I dont think that is the situation in both of australia today. It may change in a week. If you wear the mask, we are talking about the next couple years you have to do this and there are practical problems. If you look at people Wearing Masks in australia and america, often it is below their noses so they are not handling them properly. There is an Education Campaign as well as be have to have consistency and the ability to keep this on for up to two years. There is a judgment call about when the risk oriented Wearing Masks all the time, which is no different from what who has said. What has been the recommendation in australia all along, wear masks in a situation with higher risk. If you are a card at a currency hotel, people might have it. We have to tailor what we do for the risk and not have a blanket rule all the time. You said this behavior with have to keep up for the next two years or so until we get an effective vaccine. In the u. S. , effectively the middle of summer, people are getting ready, perhaps for the first time, leaf quarantine and go somewhere for their holidays. Is this advisable when we have researching resurgent cases in some states . Depends, wenon it will have to change our behavior to make our risk as low as possible. Weve got to be able to measure the risk with meaningful data, is it highrisk where im going to or is it lowrisk . We do have to change our behavior. If there is a lot of virus somewhere, wearing a mask is a good idea, particularly in crowded situations. People who have to work and can avoid being close to people, face shields, waiters, waitresses, is a good idea. If he is sealed thats a face shield protects you, a face shield protects you, it protects me. Nothing will give us absolute protection and that is one of the things people seem to want. I dont want any risk at all. That is an impossibility. We can decrease the risk one hundredfold because we know it is spread by droplets and there are lots of things we can do to not give droplets to others but also avoid getting droplets in our eyes, nose, and mouth. How much should we treat our behavior depending on the weather . It is the middle of summer in the u. S. But human and australia are facing winter. But you in australia are facing winter. Prof. Collignon we have to change it winter versus summer. Winter is a risk for every respiratory virus. It is probably because people are inside more often with each other and lower humidity. , the hottest states are now getting this surge of infections that the northern states had before. What theory i saw was because it is so hot, you spend more time inside in Southern States because it is airconditioned and that may be a factor. Is it really the weather as much people indoors when there is low humidity, which favors the spread of the virus. Very briefly, what are your prospects when it comes to a vaccine . Will it be effective . Is it likely to be a seasonal virus in what does it mean for things like movie theaters, other public gatherings, will be need to permanently assess how we treat these spaces . Prof. Collignon we might, unfortunately. I dont think we look at a vaccine that is 100 effective. Weve got some vaccines that are 99 , but there is almost no vaccine that is 100 effective. ,f we look at influenza virus it is 50 effective. I dont know how it will end up and that is why the next six months a year are critical to get studies done for various vaccine candidates. At the end of the day, i think this will end up as a seasonal virus, there is no way we will get rid of it. Whenever you travel, there is always a chance it will come back. Vaccine wehe will have to permanently change our behavior to decrease droplet transition and that is going to mean we will have less crowded indoor bars and clubs. Not that we wont have them, but we cant be as much as we were before, particularly in winter, or crowds inside. We will have to do what we should have always done. If you are sick, dont go to work. People with symptoms away from others, even in your own homes, keeping your distance. Unless we do that, we will continue to get droplets transmitted and some of those droplets in some places will have covid. We have been successful because if you look at australia, the unmet of influenza the amount of influenza has gone down. Physical distancing has had a , howit that we can see sustainable it is is the big question. How to make it more sustainable than it was years ago. Great having you with us. Coming up, u. S. Banks report this week amid what is expected to be the worst quarter since the financial crisis, a preview next. This is bloomberg. Reportbased central sector quarter earnings this week and analysts are warning it could be the worst quarter since the financial crisis. Be the first full quarter to reflect the impact of the pandemic. Investors might remember the First Quarter was rough for banks but it only reflected a couple weeks in march. Analysts say we build really see a full three months of the pandemic coming through the numbers, and that is why it is expected to be a rough ride. July 14 is where you see the big banks kickoff, a lot of big names throughout the week. While banks try to forecast how bad things might get in their First Quarter reports, they did not have the experience of the full impact of the covid19 shutdowns, job losses, they group sees. We are expected to hear how that is impacting the bottom line. We know in the First Quarter, a satellite setaside loan loss the covid19 situation is expected to spark a new round of that. Allorgan at the top, but thanks expected to get hit hard on the lending side. Analysts say the pandemic has caused unemployment to soar input a lot of companies under stress. Neither consumers nor Many Companies were able to pay debts. Loanloss provisions are seen as continuing to weigh on earnings in a big way. To helpues expected banks weather the storm. What are the expectations we have there . Su trading revenue and underwriting fees are both seen as a Silver Lining here. Have the quiddity liquidity drive up fees. Stocks really coming the only game in town. There is expected to be a new front on trading than offset. Investors will focus on those loanloss reserves, capital buffers, and a slowing economy. What do these things have to say about that . We are expecting to hear about layoffs. While banks in the u. S. Have taken a hit, stocks have performed well, compared to european counterparts. Wells fargo will be in the spotlight as it exposes how deep it has to cut its dividend. It announced it is about to effectuate thousands of job cuts by the end of the year. They will discuss that formally on the Conference Call and other banks are expected to follow suit. Back to you. Earnings are the focus of our question of the day. Send us your thoughts on that, which earnings do you think are key for Broader Market . Shery we have breaking news out of south korea, export and it was numbers for the first 10 days of trade this month. 1. 7 , wealling only are seeing those declines easing, when it comes to export numbers, imports falling 1. 9 . We could face week demand given the coronavirus pandemic. When it comes to the chip exports sector, we have seen strength in semis and that rose 7. 7 in the first 10 days of this month. Floodingvestors markets during lockdown during the recent months as stocks rebounded. With about whether retail trading will become a more significant market force in the future. I think this phenomenon should be looked at as a sudden trend. N a longterm the Commodity Index changes became computerized towards the end of the century, which enabled the emergence of Online Brokers and computerized processing. Brokers tod online customersss to their at extremely low costs and low latency. So this process has been going on gradually for about 40 years. Now, the coronavirus picked up the virus will i think that the ,rading volumes will subside but we will not go all the way back to the levels they used to be because many people learn trading, soing and those peoples activities what does that mean . Who are the people that are entering this market . Are they much younger people . Do they have the resources they need to be trading this market . Thomas our customers tend to be the most sickness dictated the more sophisticated type. They are in their mid40s. They have the money and education, they tend to be in technology or financials or management somewhere. They certainly know what they are doing. All this nonsense in the news that these are people who have no idea what they are doing maybe that is true for robin hood, but it is not just it is not generally true for people in the markets. They are not very different from a year ago. That was Interactive Brokers group founder. Coming up in the next hour, perspective on hong kongs democratic primaries. A party leader really joining us shortly. Plus, reaction to the singapore elections with the main opposition at a record, we speak with the chair. ,he market opens monday morning coming up. This is bloomberg. [announcer] imagine having fuller, thicker, more voluminous hair instantly. All it takes is just one session at hairclub. Introducing xtrands. Xtrands adds hundreds or even thousands of hair strands to your existing hair at the root. Theyre personalized to match your own natural hair color and texture, so theyll blend right in for a natural, effortless look. Call in the next five minutes and when you buy 500 strands, you get 500 strands free. Call right now. upbeat music good evening. Markets haveor just opened to trade. Welcome to daybreak asia. Investors trying to put virus fears to one side and focus on earnings. Global equities are at their highest since the pandemic struck. Global infections continue to grow with the u. S. Reporting some of its highest number so far. Florida sees its biggest oneday rise. Singapores ruling party takes almost 90 of the Seats Available and it is still not happy. The Prime Minister says the result is respectable, but it was not a feelgood election. Japan and australia coming online. Lets get to the market action. Off with tokyo. Stocks move higher with the nikkei and the topix adding. The topics climbing back the losses it saw friday. We will see 110 Companies Listed on the topix index that are to report this week. We are seeing the yen hold onto gains below 107. Jgbs tracking lower after we saw treasuries move lower on friday. This at the start of the week that brings rate decisions from the boj, be ok, and ecb, now switching it to check on the mood in south korea, the kospi adding nearly 1 at the start of cash trade and the korean won edging slightly higher as we digest the latest export data. Flash numbers for the first 10 days of july fell less than 2 on a yearly basis for exports as compared to the 11 year on year drop in june. The economic plan will be announced for south korea on july 14. Turning to the activities where bonds are falling, sydney stocks adding. 6 , asx 250 the kiwi dollar, little changed. Boosting long aussie positions to the most since september 2017. Today the aussie dollar just steady after its today decline. The aussie has been capped below but it hasne, tracked improvements in the Global Economy as city index shows global data is beating estimates. China gdp numbers are expected to show rebound in second her. For igo, i want to check on one mover we are keeping an eye on. Nearly 2 after to the downside this morning after reporting a First Quarter loss and registering an impairment loss on european operations. It is forecasting an operating loss of ¥2 billion. Its usa unit has filed for chapter 11. On the marketsre and what we should be watching as we enter a busy week ahead. Mliv strategist Mark Cranfield joining us from singapore. Goldman reporting will be a major one. Absolutely. Earnings season in the United States, which is a very busy week, some of the biggest names on wall street, it is that sector in particular we will be very interested in. The Second Quarter was extremely volatile for financial markets. Investors will be keen to see whether the major banks have been able to capture those big flows and turned it into their companies. Citigroup and later on with goldman sachs, to see how that translate into their bottom line area also, whether or not the Major Financial Institution see anything coming ahead in terms of credit risks. Obviously the Financial Sector have a better read on the underlying economy than some people would have. There are going to be problems stirred up, that may well be seen through some of the things the banks have to say. Definitely Bank Earnings are very important. Just in general, the whole mood of the Second Quarter is very important, considering stocks are on a very major rebound from march. The tech sector has been pushing ahead. They are definitely more relevant even than it has been for several years. We are continuing to see records of new infection in the u. S. , not to mention new hotspots across asia. Markets seem to be shrugging off virus headlines. Is this the new trend now that the original virus cases have been done with . The second wave, third wave of cases now, less of an impact on the market moves . It is really something we have been seeing for a few weeks here. This tension between lockdowns and virus cases, although as you say, in several places, the trend is not helpful. It seems to have resurged in some cases. Some countries do not seem to have gotten on top of the virus. At the same time, there are no major lockdowns going back into in terms of whole nations going into lockdown. There are cases of cities, some regions, we see melbourne in australia shut down for a while, some activities have been taken back in certain parts of america, but nobody is talking about nationwide shutdowns, the kind of thing we saw in april and may in some countries. That was hugely damaging to economies. What we are seeing is that in general, interest might not be as fast as usual. People might not be spending anything they would have a year ago. Economies are doing pretty well considering people still have restrictions on them. That is going to be more of the focuses. Businesses profits have been made, not in any danger in the nearterm of nations shutting themselves off. Great to have your thoughts. More of marcs commentary and also todays trading on our markets live blog. At mlivhe bloomberg. Deteriorating relations between washington and beijing on reports the Trump Administration may act on tictoc and we chat. Hong kongs Opposition Party saying half a Million People voted in democratic primaries. This is daybreak asia. York, a virus milestone, reporting no new confirmed deaths for the First Time Since the infection peak. Since theth stretch first fatality on march 11. The death toll hit its height on april 7 at 597, with another 260 people likely to have died from the virus that day despite no positive tests. Inections are not surging india with almost 29,000 new cases reporting sunday, including 550 deaths. It pushes india into third place behind the u. S. And brazil. New cases include a ball he b start bali would ollywood star. Australia is restricting the number of citizens allowed to return from overseas as virus cases spike. Cut to 4006 and a half thousand with pressure on hotel isolation. Attorneys will not have to pay for their own accommodations amid quarantine. Quarantine periods. Singapores ruling party won 80 of the vote but says it was not a great result. Poll was the overshadowed by response to the coronavirus. Then opposition election held during the city states worst economic slump on record. Elections, butod one where people expect problems. It is not as strong a mandate as i hoped for, but it is a good one. 61 percent is respectable in these circumstances. And al news on air global news, 24 hours a day, on air and at quicktake by bloomberg, powered by more than 2700 journalists and analysts in more than 120 countries. Hundreds of thousands of hong kong residents defied concerns about social distancing and chinas new security law to vote in two day primaries held by prodemocracy opposition parties. Onost 600,000 people voted sunday. Alvin. Ring in great to have you with us. Let me get to the vote itself. Huge turnout. Give us first your reaction. Thank you for having me. It was surprising. Coronavirusoned, and the fact that the new National Security law is in place. The Constitutional Ministry made allegations last week that such violating thed be law without giving any evidence. In march, police searched the office. People were concerned. Residents but again, the hong kong people were brave enough to step out. Thatw concerned are you whether you or other Democratic Candidates will be allowed to run for elections in september . Happen. Ing could right now the government still , how areear standard they going to disqualify people . This is absolutely discretional. It is of course very wrong. Are you concerned about going beyond being disqualified . Are you concerned about being detained or arrested . Of course. This is a concern already. Anything can happen. It is not up to us. As long as we get things done, it is out of our control. It is entirely up to the Hong Kong Government to decide. A turnout of over 600,000 people at the ballot box, this is really seen as a referendum on the National Security law, right . Beyond that, im wondering, what powers of dissent remain for the people of hong kong who want to make their opinions heard . Under the coronavirus, the government is using these excuses to stop people from coming to protest. To put up ble that the government deems illegal. People took this opportunity to make their voice heard. Im sure hong kong people are smart enough. They know when they can do things. We are talking about this primary election. There is absolutely nothing illegal at all. People took the opportunity. People, and remember, this is not organized by the government. It is organized by civil society. What do you or other candidates planed to do if you are not allowed to run in the elections in september . Course, it depends on the skill of people. We will make sure people still vote for the opposition. ,rom my personal point of view it will be important value in the Legislative Council. Opposition that the opposition speaks the truth remains important. That was alvin yeung. Thank you for your time and we continue to reach out to voices about hong kongs future. We will be joined by northwestern universitys professor who wrote the citys first English Media law book. We have had so much interest in uptake when it comes to some of these names. Beigene has been one of the best with trading values, selling 145. 8 million shares in a direct offering. We have an alert right now. A taiwanbased company reporting is telling the United States it wants to resume shipments to huawei. We have seen new u. S. Export controls against huawei, so huawei will not be able to use u. S. Technology. Taking newopped orders from what from huawei. They are telling the u. S. They want to resume shipments to the company. Global infections are approaching 13 million with fatalities above 555,000. One of the hospitals in indonesia, cases have exceeded 75,000 after the government eased physical distancing curbs. Indonesiaing on with in terms of their restrictions and the fact we still see an excess of new infections . Indonesia has had the worst outbreak in southeast asia. The total number of infections now is 75,000. Most of that is focused around two hotspots in jakarta and the east java province, reporting a very high daily infection number. The president has said this is a red signal to watch. We will be keeping an eye on that. Know india has been one of the worst hit countries. What is the latest out of the country . Has recorded a daily new record of infections adding 28,000 cases. Their total is close to 850,000 cases countrywide. Authorities have actually locked down certain areas of india in response. The third behind the u. S. And brazil in cases. What about plans for a vaccine in thailand . In tiling, researchers have announced they have observed animal trials in of their vaccine trials and they expect human trials. It is notable because it would be the first vaccine moving to human trials developed outside of a high income country. They are expecting to start that in september. Our Health Care Reporter with the latest on the global pandemic. Disney has begun reopening its theme parks in florida despite the state hitting another record in new daily virus cases. The Magic Kingdom and the Animal Kingdom are open to the public on saturday with epcot and Hollywood Studios set to reopen wednesday. Disneys chairman of its theme parks his nest told us business told us why he has chosen to reopen now. There is a lot of stress people stressed we are going to open in a responsible way, also cast members dressing up. I think we have done a nice job. We have been down for four months. We were one of the first theme parks to close in orlando. We spent a lot of time programming this experience. U. S. Cases in florida hitting record highs. People in hospitals are not happy with reopening. A lot of people are asking, why, why reopen now . Why not wait it out . Normal. Is our new this is the world we now live in. We have created a really environmentrating where we are in control. We have safety protocols in place, everything from people wearing face masks like im to temperature checks to social distancing to cleanliness standards, and even a reservation system. If you want to show up today, there is a reservation system so we can control the number of guests. This is the new world we are operating in. We have a way to operate in the new world. We have been seeing photos circulating on social media, the line at the seven dwarfs mine train. People crowded together. With the new environment we have created, there is a responsibility for both our guests and our operating environment. As we continue to open up, we are adjusting and modifying what we need to modify, but i would say in general, if you walk down main street today or look around, you are going to see a very different experience. You have theme parks globally, shanghai, hong kong, tokyo. Have there been cases of covid linked to those parks . Are particles and processes are so detailed, everything 100 compliant. With government guidance. We speak to medical officials all the time from a National Perspective and within the specific markets we are operating in. We have our internal medical staff on the disney staff here. We are making sure we are completely compliance with all we are confident about that. You have epcot and Hollywood Studios planning to open next week. What is the plane for california at this point . For california at this point . California has not issued guidelines for reopening. Having the benefit of theme parks around the world and watching how they operate, we are very prepared. As soon as the marketplace is ready for us to open, we will be opening. We do not have a date at this time. That was the chairman of disneys theme parks business. The executive chairman of we work says he expects positive cash flow next year. Quote, at would be, profitable venture. We work has struggled through the coronavirus as people work from home. Its workforce has been cut in half and it has been bailed out by softbank to the tune of nearly 10 billion. Credit suisse is said to be considering cutting hundreds of the the Coronavirus Bank is looking to save money to meet profit targets. The new ceo is said to be considering cuts to the investing Branch Network rather than splitting off the investment bank, which was the cornerstone of his predecessors plan. Indias most valuable lender by market cap has held an investigation into allegations of improper lending in Vehicle Financing operations. It was reported the financing loans ofoutstanding 16 billion as of march 31. An internal audit at hdfc trigger the investigation. President trumps, quote, just Getting Started when it comes to tiktok and we trap we chat. Brought upside across markets in asia with the nikkei gaining 1. 5 . Financials leading the gains. We continue to see strength for the japanese yen. Risk offue to see sentiment into the market. 5 of topics listed Companies Reporting this week. The kospi is up 0. 9 . Falling in the first 10 days of this month by only 1. 7 year on year. Strength on the chip export side of things growing more than 7 . Alsosx 200 higher by 1. 4 , topping that 6000 level. Draw the sex the last six weeks or so we have seen the asx 200 higher than that mark. Another thing affecting how markets move is escalating tensions between china and the u. S. Now President Trump is, quote, just Getting Started when it comes to taking action against chinese social media apps tiktok and we chat. That is according to his trade advisor. Jodi schneider joins us from hong kong. We have Peter Navarro making these comments. Do we have anything immediate planned at the moment . These are serious comments Peter Navarro made over the weekend on fox news. He said he expects President Trump to take strong action against tiktok and we chat. Engaging in are Information Warfare in the u. S. , and the Trump Administration is just Getting Started. Iferestingly, he said even tiktok was sold to an american problem, it would not solve the problem. Tiktok its own by it is very popular among teens in the u. S. It has been a massive Success Story of the pandemic. Have we had response from tiktok . Say itcontinues to has repeatedly denied allegations it is a risk to National Security, which is what President Trump is making the case about. The company did make changes to corporate structure, including considering a number of locations for global trade, which could include the u. S. In another sign tensions are rising, we have the state department sending a warning to u. S. Citizens living or traveling to china. What exact we did they say . Sobering, the message from the u. S. State department. They say people traveling to china could face arbitrary arrest. Jodi schneider with the latest. Opposition parties in hong kong said more than half a Million People braved the coronavirus to vote in primary elections for prodemocracy candidates. Organizers say three times as many turned out than expected, rounding to about 13 of total registered voters. Oil fell in asia trading ahead of opec and its allies meeting this week, which may outline plans to scale back the output curve. The opecplus group will review forecasts on wednesday amid mounting expectations they will start to relax restrictions. We are told top russian producers are preparing to raise oil exports next month. The cabinet insists everything will be in place for the final split despite london and brussels failing to agree to terms. A leak from the trade secretary highlights concerns about border plans, including a challenge from the wto. Says he is helping those who helped him flee japan last year, but is refusing to offer details about his escape. Two u. S. Citizens in the tension. One accused of facilitating his flight from tokyo to beirut. Speaking to al arabia, he declined to comment on claims he paid a company linked to one of the accused. Singapores ruling party won 90 of the available seats in fridays election but says it was not a great show. Details next. Dont forget, if you are away from a screen, you can find indepth analysis on bloomberg radio, broadcast live from our studio in hong kong. Listen on the app. This is bloomberg. This is bloomberg. Anna singapores ruling party retains a faint a grip on power. The Peoples Action Party won all but 10 out of 93 seats on offer, but its share of the vote slipped to 61 . The main opposition, the Workers Party, took 10 seats up for grabs. Lets go to singapore. Our correspondent is with us. It has been called a watershed election for people voting for change. Lets get inside perspective from the chairman of the Workers Party. Good morning. Thank you for joining us. What is your assessment of the partys performance and the overall performance of the opposition . This was better performance compared to the previous election. For the Workers Party in particular, with the vote of confidence, which enables us to win 10 seats, making a breakthrough in new group representation. , the selection was quite a different one from previous ones. The modes of campaigning were different. Of the questions on voters minds was the timing of the election. Sense the majority thought the government should focus on controlling and handling the pandemic rather than have an election at this time. There were various factors at play. Overall, we have gained 10 seats. It is 10 out of 93. In many countries, that would be considered marginal. Votersou think younger voted for the opposition this time around . It is hard to say. We have to look at polling results by district. It consists of largely new Public Housing where there is a large proportion of Younger Voters. Certainly, we were not expecting during but it looks like the campaign, the momentum shifted. Our platform matched the voters. They were all parents of young children. The profile of a large number of voters in that area. I think certainly, it made a big difference. You think the Younger Voters will play a larger role in Upcoming Elections . Is there a sense when you walk the ground . Not so much from watching the ground. Their viewsto make known through social media and other means. Their mission of singapore probably is different from the older voters to some extent. Politics in mye own experience is quite different. The Younger Voters are worse to previousline, and in sessions we have seen some element of character assassination from the ruling party. Appearse as well, it that backfired, pushing the Younger Voters. The future we want in singapore, which is inclusive of different views, we have to find a way to be more accepting and to talk through differences rather than kill the message bearer. Future, whatf the does it say about his leadership . Is there anything to read from that . That asackground was , he was asked quite late, not many days before nomination day. I dont have the information. It appears that way because the announcement was made by his surprise present at the Nomination Center on the east coast. Heo not know how much time and his team had to work on the strategy. Certainly from observing what happened at the Nomination Center with his message to the on, it appears as if the campaign was not well prepared. Im not sure how much of that is because of the party as a whole, but this is something in the coming weeks and months, more will be clear. Havee Workers Party will 10 of the 93 seats in parliament. What will the partys priorities be . What policies will be you will you be pushing for . We have highlighted certain things we think are important going forward. I believe one of the topics will be whether the economic model in singapore has to change. We of the aspects of this is have a heavy reliance on foreign labor, particularly of lowwage workers. Hard work such as in construction. This of course has kept productivity rather low. Pandemic, it was and still is a big outbreak of covid19 cases in heavily populated streets. For the economic model, for the future, this will you one of the topics which is important to us. The second aspect would be how our government budgets are financed. The government has already made it clear there is an intention to raise our tax by 2 sometime between 2021 and 2025. We know this will raise the standard of living for everyone. We do find there are other possible sources of revenue which would perhaps obviate the looking atse this, contributions from the returns from investments, perhaps land sales. Toa broader level, we want have a discussion at the appropriate time about how we can beam be a more open society, how press freedom can be better than our current ranking. In that sense, Pay Attention to the intangible evidence that will make singapore stronger. That is also the issue of foreign workers, immigration, which has been emotional for singapore. Can thecally, what violence do without impinging on the countrys competitiveness . This is something that i think is not an easy question to answer, but i think singaporeans are concerned about population fact we are ane island of 700 square kilometers. The quality of life is very important. We do not want our Public Health care and transportation to be overrun. It will be one of the key issues going forward. Innovation as well. Andeed to raise our game not rely on inputs to raise gdp. We talked about how the opposition has come a long way from no opposition to representation of one, to 5, 10. Realistically, do you envision a day when the opposition can provide a true alternative . Day. Me was not built in a the figures you mentioned, i worked with the Workers Party when i joined it 20 years ago, and a lot of how singapore moves forward, whether the ruling inty has a smaller majority our limits in the next elections in parliament in the next elections or voters feel another power onable to take the horizon is not so immediate. Singaporeans take their vote very seriously. I do not think they in general will vote as a protest. At stake, who is providing the alternative, and whether they think they can accept that. I do not think it will come in a big bang. We talk about how singaporeans want change. Will that come with the deputy Prime Minister taking the helm . What kind of leadership do you think he will provide . Your own take on it. I know him personally, though not very well. Police officer and i was in the past. He did the recruitment interview when i was recruited. By all accounts, everyone agrees he is a decent man, but i suppose he might be more comfortable crunching numbers. Term peopleis not a would ascribe to him. That does not mean the Prime Minister has to be charismatic or he can show competence in other ways. I do believe when the dpm becomes pm, he will have a team with him, he will not be alone, and collectively, if the team is able to move forward and convince singaporeans they are the party most capable of improving the standard of life, they probably can make the to maintain confidence. Lim, thank you for your insights. It does feel like singapore is a country on the cusp of change. Thank you very much for that. We want to make a note that we are reaching out to all sides of the conversation and trying to get a reaction from the ruling party as well. More analysis is ahead on singapores results. Exclusively, what implications are seen for the startup scene. Breaking, we are now hearing mexico has overtaken italy as the fourth country when it comes to the number of deaths from coronavirus. Mexico is reporting a rise of to 35,006eaths by 276 and is now topped italy fourth in global deaths. We will be back after the short break. This is bloomberg. Tesla has shaped 3000 up the model why crossover just four months after sales began with of w car just short some analysts see and as weak demand. Tesla delivered more than 90,000 cars in the Second Quarter and the stock is up 270 for the year. Reports from taiwan say tsmc has applied to resume delivery of Electronic Components to huawei. The Economic Times says the request went ahead of tuesdays deadline without indicating where it got that information. Huawei is under pressure from the Trump Administration, seeking its global rejection as a threat to global security. Peter navarro says he expects President Trump to take strong action against chinese own and wemedia apps tiktok chat for engaging in what he calls Information Warfare against the u. S. Banning not rule out them. Tiktok and we chat are under scrutiny for their use of private data. Shanghai, shenzhen, and hong kong trading is ahead. Plenty for investors to digest, including gdp numbers out of china. What will you be watching for in the markets . Some comments on chinese local media again talking about the stock market, saying that the reason why stocks are rising is because of chinas economic development. Said the fundper industry should boost development of a healthy stock market. Drop iny, we saw a big. N especially large caps capped theegulator size of mutual funds, showing the yuan has slowed down speculative behavior, the speculative nature of the stock rally. They want to encourage equity gains. It is an important it is important for sentiment. The general mantra, it is important the times has the rightofway between the u. S. And china. It pays to have a strong the mystic cap market. Market. Tic i would expect the market to continue. As we go into another week of trading, when it comes to china markets at the open of trading in shanghai, shenzhen, hong kong is almost upon us, lots of parallels being drawn between 2014 and this current market we are seeing. It is crucial for beijing to maintain some kind of rally as all these chinese corporates are relying on a market to secure funding. We are getting a good set up across the rest of asia as china joins the fray. Gains when it comes to japan all the way through june. U. S. Futures holding up as well. 0. 3 percent higher after extending that game last week to just about 2 . The kospi up by 1 . We have the boj decision as well gains, asia seeing victoria continues to see escalating cases. We are seeing a cluster of new cases in New South Wales as well. New zealand after three days of declines, we are seeing a return to gains. Plenty for investigators for investors to watch. More analysis on the outlook for chinese markets. Wang from j. P. Morgan Asset Management is with us at the bottom of the hour. That is it from daybreak asia