U. S. The global focus. Ines surged cases surged california and texas. Walmart demands customers wear masks. Knowing green. New south wales has a new plan for renewable power, energy and the environment. Quick check of the markets, u. S. Futures opening flat. This after u. S. Stocks climbed to a fiveweek high in the regular session. We have 10 of 11 s p 500 sectors closing up. He had vaccine developments bringing this rush of optimism to financial markets. This, despite escalating tensions between china and the u. S. Moderna and astrazeneca are rising on the optimism. More positive ecodata, u. S. Industrial output rebounding in june. Pickup in Economic Activity. Take a look at what oil is doing. Under a little pressure, headed towards the 40 per barrel level. This after jumping to a four month high. We had strong ecodata and we have President Trump indicating he doesnt want to add more sanctions against chinese officials for now, not to mention a report on a drop on u. S. Crude stockpiles and the opecplus meeting. They seemed confident a tapering of output cuts will be met with rising global demand. Lets see how things are shaping up. Here is sophie kamaruddin. In asia,odest gains taking a look at nikkei futures in chicago, some slight gains after tokyo stocks rose to a onemonth high. Sidney stocks, with gains, rising the most in a month. Copper mining prices fell on concerns over south american supplies. Copper futures in shanghai lost 2. 2 at the recent close. Keeping an eye on the chipset ande the chip sector, tsn see earnings do this afternoon. The chipmaker registered a 29 yearly growth in sales for that timeframe. This Company Expected to hold rates. Indonesian Central Banks may continue easing. Checking in on the yen, holding onto a two day again after the boj governor warned japans recovery will be slow while the Central Bank Held back on policy action. This morning, australias employment numbers are expected to rebound in june. Workers returned to the labor force and that will likely push the jobless rate higher. The aussie dollar holding at 70, buoyed by rising commodities it commodity prices. The offshore yuan trading below seven, a fourmonth high ahead of chinese data do later today. That is top when it comes to the data calendar. President trump has indicated he doesnt want to further escalate tensions with beijing and he has in private ruled out additional sanctions on more top officials for now. Our coanchor joins us from beijing. These varying degrees of tensions and perhaps a little bit of a detente, what is this wrist does this restraint tell us . Tom it suggests President Trump is opting for the symbolic rather than the substantive. The phase one trade deal is seen as crucially important for the Trump Administration. He wants to hold onto that reading into the november elections. Bellicoseen this rhetoric from him on china, and they have taken concrete steps but the Material Impact is relatively limited. We heard that according to officials and aides, before signing off on the autonomy act tuesday, he decided not to sanction individual chinese officials. His team drew up a list of officials, including hong kongs chief executive and china cost vice premier and he decided not to go ahead. He can still do that in the future. He has the power to do that. The u. S. Already sanctioned a Senior Member of the communist party and three other officials over alleged human rights abuses, so they have done this before. China hit back with its own sanctions in that case against ted cruz and marco rubio, seen as something of symbolic retaliation. , another moveawei against the company by mike pompeo, announcing visa restrictions on some employees over what he said was a communist party rights abuses against muslims and other minorities. While white says it was disappointed huawei was disappointed. Shery we are expecting more pressure on many companies, like tiktok. And tictoc there is an app security review that will be complete in a matter of weeks. They are looking into security. This review is going on a parallel track as the administration reviews. We continue to see escalating tensions between the two sides. At the same time, china seems to be the first one out of this pandemic and we will get growth data out of beijing. What are we expecting . Tom secondquarter gdp, according to the forecasts, 2. 4 growth in the Second Quarter. That compares to a contraction of 6. 8 in the first quarter, which was the worst for more than 30 years. To beexpected, the 2. 4 , below those historical levels for china, but it does mark an improvement as the lockdown has come to an end in the country and Economic Activity picked up. There was the outbreak in beijing but it seems like the economy has largely looked past that. Industrial production, when you break down the data, Industrial Production is forecast to expand by 4. 8 for june compared to 4. 4 in may. There has been an uptick in investment and exports, as chinas Major Trading partners have reopened their economies. Retail sales, something of a weak link in the recovery. The forecast is for an expansion of 0. 5 in june versus a contraction of almost 3 back in may. That is a data point to watch. Fixed Asset Investment is expected to contract again in june by about re. 3 , but that is far less severe than the contraction we saw in may. That data is expected 10 00 local time. Shery Tom Mackenzie in beijing. Still ahead, australias most populous state is planning to fasttrack away from fossil fuels. The environment and Energy Minister tells us what impact the virus is having. Next, small caps are languishing behind their peers. Eric marshall says there is opportunity put to be found. This is bloomberg. Karina covid19 continues to surge in the u. S. With california reporting near record cases and fatalities. Nationwide numbers rose 2 almost 3. 5 million with deaths topping 136,000. Walmart is requiring shoppers to wear masks in stores. The Health Ambassadors will be at the entrance to ensure compliance. This decision follow similar moves by starbucks and best buy. The philippines is weighing the asimposition of restrictions infection numbers continue to rise. Metro manila will stay under General Community quarantine until the end of the month, which allows most businesses to remain open. Tokyo raised its virus warning to the highest level, and new zealand is preparing for a new infection surge. Twitter shares failed in late trade after some of americas most prominent prominent business figures had their account hacked. Bill gates, joe biden and others appeared to send almost identical tweets about bitcoin with an address linked to an apparent scam. Accounts posted similar tweets. The bank of japan says its economy is past the worst of the fallout, but says recovery will be slow. And his team kept policy on hold amid a deeper slump come although they see a faster pickup in the next two years. The governor said declining consumer demand has bottomed with Economic Activity starting to show an increase. Day, onews 24 hours a iran on bloomberg quicktake, powered by more than 27 hundred journalists and analysts in more than 120 countries. This is bloomberg. Apple is celebrating a big victory in europe. The eu rules apple doesnt have to pay 15 billion in back taxes, denying the European Commission argument that dublin offered the company a legal advantages. The irish finance minister said allnd ireland treats taxpayers equally. I believed this was possible, and ireland has been very clear now over many years that we do not make special tax agreements with any company, big, small here in our country, and all taxpayers are treated equally. We value the relationship we have with an employer like apple like we value the relationship with all employers in ireland, and we dont do special deals for them. This ruling today is a recognition of that. Minister, you have lived this with png years ago. I want you to explain to those incontro in Continental Europe that appropriate tax policy for multinationals is not theft from the general taxpayer. Believe it is absolutely imperative that Big Companies are taxed effectively and fairly. For big digital companies, how we are going to tax them in the future is also going to change. What was so important about this particular issue is an allegation was made that we were in some way treating apple differently to other taxpayers that would be here in ireland. Up in ther ended general courts of the European Union and has been settled in a way that you have described. The message for me as a finance minister in europe is that companies, whether they are from europe, america, or anywhere else in the world, have to be taxed effectively and fairly, and this was an important issue for our tax code in ireland. You are the head of a group of 19 finance ministers that will get together this weekend for the European Commission meeting where they will speak about that trillion euro budget planhe 750 billion euro that has been proposed. How much pushback are you hearing from the frugal four on what has been proposed on bringing the fiscal stimulus down . The diversity in relation to this particular project within europe and inside European Union , very broadly, the point i would make to you and to your viewers across the world is, this is a really signature example of europe deepening its economic architecture, and deepening and making stronger the foundations of the euro. We are doing that to strengthen the ability of our economies in europe, to respond back to the economic shock of covid, and because this is such a big project, of course there are different relationships, but i do believe that within the European Union, we will reach agreement. The concerns my colleagues in among some, countries regarding the scale and how the money could be used transparently and effectively, i and through created the coming days and weeks we will find a way to reach agreement. What does it mean for brussels to see this victory today . Believe in sovereignty and the sharing of sovereignty and the passionate and i am a passionate supporter of the european project and a deep believer in the need to look at how we can strengthen this in the future. I would regularly make the case in ireland and across europe, and across the world, that the european project, economically and politically, is an extraordinary achievement that personally and politically, i want to protect, i want to secure, and i want to grow in the future. Is someone iner have huge respect for, who i look forward to working with again in the future. Aat said, there are always number of particular areas in terms of how decisions are made of and how they are implemented, that are always going to matter to individual nationstates. From our point of view, the reason this is so important is that it creates the inference that we used our National Sovereignty in some way to give favorable treatment to accompany. That wasnt the case. We recognize by the ruling this argument inake this the context of somebody who is a european politician believes in the European Union and the sharing of sovereignty. Inside that architecture, countries still have roles. They have duties and response abilities. That is why this hearing was so important. The irish finance minister there. Turning to the markets, small caps got a bigger bump than largecap stocks, but the longer term trend in the chart, showing small caps, the light blue line, have languished versus their largecap and mega cap counterparts. Eric marshall is bullish on small caps. He is president and Portfolio Manager at hodges capital management. Great to have you with us. How much of an upside could we expect in small caps for the second half . Small caps have really underperformed the broader markets the last five years. We think we are at a very important inflection point. If you think the economy is going to pick up in the next 12 months, as we get through the covid virus, small caps, do tend to lead the way coming out of a bear market. They dont always lead in the first month or even the first three months, but when you look out over six months to 12 months , after the market has bottomed, smallcap stocks have typically outperformed double digits the broader market. When you look at the last four or five major market downturns going back to 1982. Shery in terms of economic support, we have seen Industrial Production numbers pretty solid. We are expecting a good set of numbers for retail sales tomorrow. What happens if we do face a fiscal cliff Going Forward given that we could see more political brickman ship when it comes to more stimulus and spending coming from the government . Eric the one thing i would say is small caps are more economically sensitive. They are more tied to the domestic economy versus the international economy. In the event you saw the u. S. Really slow down relative to the rest of the world, that would not be a positive thing for the rotation into small caps. There has been a major vergence the vergence looking over the past couple years and we think small caps have catching up to do. It is important for investors to look at individual names within small caps, because there are areas you do want to avoid right now and there are some companies that represent attractive values, which is what we are doing in the hodges fund, we are focusing on individual securities. Haidi tell us about those individual stock convictions. Eric one area we like our the domestic homebuilders. We like a Company CalledTaylor Morrison homes, a small cap homebuilder. It trades at a very attractive multiple, near its book value, and we see very nice tailwinds for housing demand, allowing their businesses to do very well here in the coming quarters. We also like a Company Called a company that is a Semiconductor Capital equipment provider. That go intoducts the production of semiconductors. We see very nice tailwinds, secular tailwinds for a lot of the new chip designs that are coming out, and we think that business has a nice runway over the next couple years. Haidi which out of the small caps you look at would be best positioned to benefit, even if the past two real openings will return to the u. S. Consumer takes longer than what the concert the current market is pricing in . Spend timeant to looking at companies that are wellfinanced and have Balance Sheets that can weather through the current economic downturn and have the ability to fund their growth organically, that they are not necessarily have Business Models that are dependent on them constantly going back to the capital markets, because we dont know what those may look like. However, there is plenty of liquidity out there right now, and we think some of the more economically sensitive areas should do well in the current environment. Haidi Eric Marshall there, Portfolio Manager at hodges capital management. Next, Big Bank Earnings continue on wall street. The best result in years. We will discuss more. This is bloomberg. Haidi we are getting a response from twitter with regards to these alleged hackings of highprofile accounts. Twitter, saying all users are unable to tweet while it reviews the incident. It has verified accounts blocked from saying sending tweets and saying some functions are limited while it addresses the incident that had jeff bezos, joe biden and others, elon musk and kanye west as well as Mike Bloombergs accounts hacked. Goldman sachs posted its best result in years. Trading revenue, nearly doubling and mirroring similar gains reported by jp morgan in citigroup. Our Senior Analyst joins us. Was this a surprise . What were the Key Takeaways . To beding was expected strong for goldman and other parts of their business that benefit from the markets, but i would say the numbers well exceed expectations. This is positive for goldman as they earn relatively more from that business. For goldman in particular, the key thing was there capital ratio the capital ratio. There was an increase from the previous quarter. We got indications of a new requirement for them that will be effective in october and the fact that they were able to bring the ratio up is a key positive in terms of looking at their dividend. Shery what did we learn in terms of dividend risk . Goldman, the concern was that there capital their capital was looking a bit light and if this was the case, they would face some restrictions, given their dividend is a lower percentage of their income they likely would have been able to maintain that but the fact that they are able to bring up that capital ratio, they are just shy of the october requirement, we have further confidence they can get there by october and that gives a level of comfort they wont be restricted. For all the banks, the regulatory scrutiny is something that is out there and likely to continue, but from a fundamental standpoint, the big banks i cover are all in good shape except for wells, where we did see a drastic dividend cut, which to some extent was expected. What do we expect to see from Morgan Stanley . Very good trading for them. It will be particular to see strength on the equity side. We did see Strong Equity trading out of goldman. Gains at jp morgan, more least Morgan Stanley is the leader. Can they keep or beat that pace . Much. Thank you so the latest on bank earnings. Still to come, astrazeneca shares get a bump ahead of test results. The race towards a covid19 vaccine is running hot. We will have the latest developments, next. That has fueled a rally in the equity markets. U. S. Futures at the moment, gaining 0. 2 . A lot of optimism on the potential of vaccine development. Plenty more to come. This is bloomberg. 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We are told this decision came before he signed the hong kong autonomy acts on tuesday in contrast with the combative tone he struck in recent weeks. The white house is said to have drawn up a list of officials to be sanctioned including carrie lam. Nevertheless, china says it is ready to take action against the u. S. For ending hong kongs special trading status. Beijing says the law violates International Legislation and is a gross interference in its internal affairs. Foreign Ministry Says if the u. S. Proceeds, china will take appropriate action against american individuals and entities in response. China will impose sanctions on relevant u. S. Personnel and entities. We urge the u. S. To correct its mistakes, refrain from implementing the hong kong autonomy act, and stop interfering in chinas internal affairs. Karina the Trump Administration is preparing to impose visa restrictions on some huawei employees. Secretary of state mike pompeo says Global Telecom companies are on notice if they work with huawei. It is not clear which staff might be targeted or how many. While mostly symbolic, this is the latest u. S. Move to limit huaweis reach. Global news, 24 hours a day, on air and on bloomberg quicktake, powered by more than 2700 journalists and analysts in more than 120 countries. I am karina mitchell. This is bloomberg. Shery. Shery coronavirus case is continuing to search in the urine surge in the United States with california reporting a record in cases and deaths. Lets get more with our reporter in minneapolis. With the rising surge of these cases, we have alabama now mandating face mask coverings. Alabama is not alone. Walmart is joining many other retailers across the country that are mandating people wear masks and we are seeing state and county one after another rolling back their efforts to reopen their economies as this virus continues to rise exponentially. Is there any sign of stabilization in the numbers we are seeing across the u. S. . This point, we are seeing increases in the day be case rates across the u. S. It seems to be easing a little bit across the south. The really dramatically high numbers we were seeing down there seem to have taken a little bit of a break just for today. Really cannot address too much of that. We are seeing increasing rates in arkansas, places like that, so a bit as you move up the country. Shery we had this market rally largely in part fueled by vaccine developments. Any progress on that front . Achelle we have been getting phenomenal amount of vaccines recently. We got just the other day the moderna stage one trial results and the information they are planning on starting by the end of the month they huge 30,000 clinical trial. Today we learned the Oxford University trial is underway with astrazeneca. We are going to start seeing their results coming this monday and we have been told that they are going to be positive. Obviously, we do not know anything about them yet. It is very early days. There might be side effects for these medicines. The fact that we have two that are still on track for success is better than we normally get. Does it indicate just the fasttrack nature of this . The prospectuess of getting a vaccine at this point, is it reflective in levels of euphoria and hopefulness you are seeing in markets right now . Michelle right, well the markets certainly are pricing and protection. There is no doubt about that. That is a phenomenally risky thing to do when it comes to pharmaceuticals, drug, and vaccine development, which is notoriously difficult and takes an exceedingly long time and billions of dollars. The are putting billions of dollars into it. It is a hopeful thing i think. Really do not want to butt against if we are going to get something for this virus but if you are gambling, the odds are absolutely against you. But when you look at what they have done so far, right, the moderna data we saw, in six months, they did what normally would have taken six years. Is pace that they are on the phenomenal. Whether or not its going to be successful in the end, that is unknown. We are going to get an answer in its unbelievably accelerated timeline. Your always great to have context with these headlines. Our health care reporter, michelle cortez, in minneapolis. The European Unions commission for health and food safety says there needs to be a globally coordinated approach to finding a vaccine. Our guest says no one is safe until we are all safe. In the last few months, we have seen that the e. U. Is no longer the epicenter of the covid19 pandemic. Globallyour numbers increased and since the lifting of containment measures, we are seeing similar local increases in some of the Member States so it is very important for us to be aware that none of us are safe until all of us are safe. We need to have a global approach into handling and fighting covid19, a global pandemic. Part of this, of course, is finding an effect event safe vaccine at a timely time. Effectiveooking for therapeutics. The e. U. Commission is leaving terms ofunturned in Effective Therapeutics for covid19 and of course in terms of supporting finding a vaccine. Commissioneuropean made any purchase agreements with any Drug Companies as of now . Two scales i are would like to touch on on this. First of all, you must be aware that a few weeks ago, we presented the european strategy for vaccines. Our efforts are towards finding an effective and safe vaccine accessible to all as quickly as possible. And in this sense, we are proceeding with all Member States being on board, negotiating with them, with a number of companies to form advanced purchase agreements. The sense, to derisk initial development of vaccines so that we can move as quickly as possible. Takes 10 to vaccine 15 years, and through using the european Emergency Support instrument, which is about 2. 4 billion euros, we will be actually advanced purchasing from a number of companies in order to move as quickly as possible with the development of the deployment of a vaccine. This is a process still in negotiation, ongoing with Member States as members as well. I would also like to touch upon therapeutics. I heard the previous previously, you mentioned gilead. I had been in talks with gilead for a number of weeks now. I said from the beginning that we will leave no stone unturned in terms of therapeutics and vaccines for covid19. As you may know, the European Medicine Agency the commission gave market authorization to remdesivir on the fourth of july, showing the urgency we see. We would be willing to also look on behalfrocurement of Member States and there are about 60 Member States interested and at present, we are in discussions with gilead concerning the production capacity. And having the necessary doses for the European UnionMember States. Commissioner, washington talks about ensuring the fact that u. S. Citizens will get access to u. S. Scientific advances first. Will european citizens get access to european advances in science first . You talk about it being a global battle, which we all appreciate that it is, but will european therapeutics that are developed, will european vaccines that are developed go to european citizens first . That me say from the beginning that what has become very obvious in dealing with this pandemic is that we need to look at this in a way that is global and that there is solidarity. And i have said before, no one is safe unless everyone is safe. sidi that was the e. U. Commissioner for health and food safety. Australias most popular state is planning to fasttrack its transition away from fossil fuels. New south wales energy and environment minister joins us. This is bloomberg. Berg. Shery you are watching daybreak australia. Lets get to sophie in hong kong. Sophie look at the board. Futures are climbing. Aussie holding above 70 with recent gains supported by rising commodity prices. Taking a look at the board if we could to see where we are at at the start of this session. Switching out the board here today, the material sector in sydney up 2. 4 percent in australia. One of four sectors in the green so far in 2020 and we are watching miners today after goldman rated bhp and has a neutral call on rio tinto with anticipated demand recovery along with tightening supply among the positive catalysts. Goldman says copper, steel, and cole have the most attractive prospects and valuations are no longer looking to for the sector. They are not expensive on normalized demand metrics. It is the second Largest Pension Fund which has divested from coal producers, whitehaven and new hope, as part of plans to reduce its Carbon Emissions across investment by 30 2023. Taking a big picture view when it comes to Power Generation in australia, as you can see on the. Ie chart, coal, still king down from 60 in 2018 as contribution from renewable sources rose to 21 . That is compared to 12 in 2018, haidi. Wales isw south australias most populous and Energy Hungry state and it is moving closer to winning itself off reliance on coal. It will match the capacity of its coalfired power plants. Andsouth wales Energy Environment minister joins us now. Wonderful to have you with us. Tell us about your goals and what you hope to achieve here. I want to make sure New South Wales citizens and businesses have access to some of the cheapest, Cleanest Energy you will find anywhere on the planet and that is why we will be transitioning our electricity system away from coal to cheap, clean, Reliable Energy. 11 to go wants of Renewable Energy will be enough and on g energy to power millions of homes across the state, keeping the lights on and delivering 18 cleaner environment delivering a cleaner environment. On a federal level, energy and Climate Policy has toppled prime ministers in the past. I want to get the elephant out of the room, addressed here. Is there a real dislocation between federal level policy and state level policy and do you see this really being driven by the states Going Forward the way that you are doing now . Matt not at all. The federal government and the New South Wales government are absolutely committed to reducing our emissions in a way that grows their economy and creates jobs and that is exactly what this announcement is all about. This announcement about our Renewable Energy sites, which is being jointly funded by the commonwealth government, is all about seeing billions of dollars of investment, about 17 billion newstment, to create 2500 construction jobs as we build the transmission and Storage Capacity to ensure our allete for city is distractible and about 1300 permanent new jobs into New South Wales. This is not only good for the rmn, it is good for our economy, and we are working hand in glove with the federal government to reach those objectives. On a it seems like federal level, there is a blind spot when it comes to renewables and the role they play Going Forward. We arehe reality is, entering into one of the Biggest Energy deals in the nations history with the commonwealth government. A 3 billiondollar deal that will underwrite the bill that me generation, new transmission, and new storage to ensure that our citizens and businesses can have access to cheap, clean, Reliable Energy that will set us up for success in a low carbon global economy. It is not just an environmental player, which is very important. It is an economic play. My vision for New South Wales is for us to have some of the cheapest electricity anywhere on the planet. Our aim is to get electricity prices down to 35 u. S. And that will be less than two thirds what we currently pay. We are doing the modeling at the moment. We are confident we can deliver that cheap energy which will be industrialized New South Wales, creating opportunities in heavy manufacturing, and sweltering in aluminum production, setting us up for success in a low carbon global economy. What has the response been like from investors and where are you seeing interest coming from, domestically, overseas . Matt we are seeing huge excitement from the industry. Our announcement with the New South Wales government is investing about 120 million to plan the coordination for storage and transmission to deliver that cheap clean Reliable Energy into the system. The private sector has responded. We called for one of their Renewable Energy zones. We asked for expressions of interest. We had 27 gigawatts electricity, saying they want to inject that into the market. In addition to that, we are seeing, we believe, we will see investment from the private sector there of over 17 billion, so that is not only good for our environment, it is good for our economy, creating jobs, lowering power prices, and delivering a great opportunity for New South Wales to be an economic and Energy Superpower of the future. Shery your government is targeting that zero emissions by 2050 but also a recent report showing you still consider big big of the coa al part. Matt we know that domestically, we need to transition our grid to cheaper, cleaner forms of Reliable Energy. The reality is that we have 80 of our domestic New South Wales, 80 of our electricity comes from coal power systems. Four of the five stations that provide our electricity will close. Have equipment built in the 1970s and 1980s and they have come to the end of their lives that we need to replace that capacity before it closes to avoid price spikes and blackouts. The majority of our coal is exported by the state and that provides the majority of our export revenue to New South Wales. We will be able to continue thoseing coal so long as International Markets want the product. The reality is, those Global Markets are changing and we need to be prepared for that transition, which is exactly why we put out a call strategy, to ensure that we understand that this market are changing, putting in place the systems and processes to help us move to a cleaner, more prosperous future. The trauma of the last bushfire season is fresh in peoples minds. How paramount is getting this done quickly, the transition done quickly, to you . Matt it is very important that we do our best to protect our environment. There are few countries more exposed to the reality of Climate Change than australia. We have beautiful assets. The Great Barrier reef, the Beautiful National park they are enormously threatened by our changing climate. The reality is that there is also the huge that of Climate Change to our economy. Our economy is powered by the export of things like coal to the rest of the world and those International Markets are starting to demand different products, cleaner products, as we move towards a low carbon global economy, so we need to not only transition to protect our environment but we need to transition to ensure that our economy can continue to be prosperous and can continue to provide jobs as we moved to that global low intensity carbon future. I am confident this transition will set us up for success and ensure we can be not only an Energy Superpower but a Global Economic superpower with some of the best Renewable Resources anywhere on the planet. New south wales has some of the best wind, solar, and opportunities. With our plan, im confident we can deliver some of the cheapest electricity anywhere on the planet around or below 35 u. S. That is what we are working towards. With that competitive advantage, including the fact that we are a reliable, stable trading partner, will set us up to be an energy and economic superpower. Haidi thank you so much for your time today. Matt kean, New South Wales energy and environment minister. Getting these cpi numbers crossing the bloomberg on new zealand, we are seeing a better picture than expected. The second cpi yarn your number than 1. 5 , better expectations of 1. 3 , coming down from the 2. 5 we saw in the previous quarter. Quarter on quarter, a contraction of. 5 but still marginally better than expected given that second part of the Second Quarter actually did reflect at least four weeks to six weeks of that harsh lockdown for the new zealand economy. We are seeing the kiwi dollar aading at 65, 75, against backdrop of a broader dollar weakness. Lots more ahead on daybreak australia. This is bloomberg. Shery twitter accounts of some of the most highprofile Business Leaders and politicians have been hacked within the past few hours. Twitter says it is investigating the incident but shares are down after hours. The line joins us on from san francisco. We are taking a look at some of those people who apparently have been hacked. What did the tweet say and tell us a little bit about these highprofile cases . It is the world of politics. We are talking joe biden and barack obama, jeff bezos, elon musk. A lot of really famous and wellknown people all in those industries and the tweets are all asking for the same thing. They are asking people to send bitcoin to a specific digital wallet, and they are promising if you send me some bitcoin, i will double it and send it back to you. As hackers, this is a scam to get people to send stuff over. That is what all of the tweets are pretty much identical, saying the same thing, part of this scam. If you are a twitter addict, which most of us are in the media, it was a scary time in terms of twitters response to this. It has been. We still do not know what the cause of this was. Twitter said it is investigating the short time where it actually sends the ability to tweets it blocks the ability to send tweets from verified accounts. I have a verified account. I was not able to tweet. The fact that they do not know what happened and it is coming up on over an hour a couple hours since this has been going on. All of the most highprofile accounts on your service are vulnerable in this way. Shery hacks have happened before. How is this one different . If you look at the names involved, this is the kind of thing that could have incredible ramifications. These are people who are moving markets, people who are handling foreign diplomacy both for the United States and potentially other countries, so the impact that this could have had had the hackers chose to do something beyond the bitcoin scam is pretty alarming so i imagine we have already seen some u. S. Politicians demand answers from twitter. I would be shocked if this does not become a regulatory or legal issue where people are looking into what happened here so this is just much more severe than any of the hacks we have seen before. Thank you so much for that. The very latest on that twitter hacking. Our Bloomberg Technology reporter, kurt wagner. Coming up on the next hour of daybreak asia, the stock rally is running hot, but bonds, not so much. Our next guest previews key centralbank decisions in korea and indonesia today. Plenty more to come on daybreak asia. This is bloomberg. Haidi a very good morning. I am haidi stroudwatts in sydney. We are counting down to asias major market opens. Shery i am shery ahn in new york. Asia faces a muted start ahead of a new ecodata from china that will gauge the post virus recovery. High onit a one month optimism about a vaccine. The pandemic rages on with the u. S. Still the global focus