Topal coronavirus cases 16. 3 million as the republicans lay out their 1 trillion plan for the next round of u. S. Stimulus. Democrats are expected to join the conversation shortly. Begins final stage testing of the Covid Vaccine is the government releases another half a billion in funding for the company. We hear from the ceo later this hour. Shery lets get you to the press conference happening right now. Senator Mitch Mcconnell presenting the republicans 1 trillion plan on stimulus measures for the u. S. Economy. You are listening to senator grassley who is taking to the podium to say what these deals will consist of. Take a listen. Adults, orey somebody elses dependent. Have additional unemployment insurance. Thats on top of whatever the different 50 states give. And on top of the Economic Impact statement i just gave. We want to continue to help the unemployed, but we want to encourage work, and weve learned a very tough lesson that when you pay people not to work, what do you expect . Adjustedayment will be so that we have additional payments to help people for 70 5 of their0 income. [phone ringing] sen. Grassley thats not me. I dont think. [laughter] sen. Grassley well it sounds just like mine. We are going to have further tax relief for businesses to encourage hiring and rehiring. Do that to encourage people to get back to work and help the employer in the process. Support patients in nursing youth. Nd also foster state andy on how local governments can use federally funds, including an ability to use funds to cover revenue shortfall. And if somebody does not want me to get on television, i know that. Shery you have been listening to Senate Republicans and their phones ringing as well. The senators presenting that 1 trillion land to stimulate the u. S. Economy. They have finally released that plan, which they say was delayed because of in decisions made by treasury secretary Steven Mnuchin as well as the white house chief of staff, mark meadows. Its turn to Emily Wilkins who is on the line. Emily, give us a just of this 1 trillion plan. Very widely a weight, but at the same time, how much do we know whether its agreed by the white house and what the democrats will do . Emily absolutely. You can see this proposal as a starting gun for negotiations. Democrats passed their bill in may and they have been waiting for republicans to move, and now they have. The 1 trillion bill is far less that what the democrats a poor theirs, but includes funding for schools, some so schools can reopen and another round of stimulus checks. Provide virus testing. There is no payroll tax cut in their. This will provide a jumping off point for republicans to get together with democrats and start coming up with a final product in the next few weeks. What else do we know about whats in the bill, particularly when it comes to the 600 supplemental payment that ended on friday . What happened under this new package . Emily under the republicans that 600 extra is going to go down to 200. And it wont stay there. The idea is that while the 200 is being added, the federal government will work out a way to get unemployed individuals 70 of their previous earnings. Right now most states only give about 50 , so this is an increase. Its far short from the 600 paid,initially being thats what democrats still want and what Speaker Nancy Pelosi will push for, but its very uncertain out what we will see in the final bill. Shery those benefits of 600 that came from the march rescue package, already running out starting saturday. These talks are pretty urgent. How soon can we expect the next package . Emily lawmakers are hoping to get this done in the next couple of weeks. They are supposed to go on recess in early august. That gives them two weeks to get things done. Leaveides say they wont town and that they will get this done. Speakingveryone is about the urgency. Now that we have seen the economy try to reopen in many states and then many states turning around saying, you know what, its not safe yet. It made it very clear that the government does still need to step in and provide some sort of stimulus at this time. Our congressional government reporter Emily Wilkins. Now on the latest gop rescue package and you are watching that press conference ongoing at the moment. This as we see u. S. Futures gaining 2 10 of 1 . This adding to the gains we saw in the new york regular session. Saying the fed will reinforce the dovish message or not to mention optimism of when we could see the next round of fiscal measures coming from congress. Weeks 500 erased last drop, which saw the rebound of tech shares of setting fight in things. Secondquarterg gdp numbers. We are watching for that. The dollar fell to the lowest in 18 months. We continue to see this downtrend. Lets see how things are shaping up for the asian markets with Sophie Kamaruddin in hong kong. Looke asian stocks could to extend mondays gains. You have the taiex looking to extend the rally that pushed the taiwanese benchmark to a record high. Todays markets are closed and we are going to learn from malaysia the latest entree data. We will get the verdict in the prime ministers 1mdb trial. When it comes to the earnings dock it, the highlights we have our yes bank, nissan and tokyo electron. We are watching fujifilm what the texas facility lined up to support vaccine candidate manufacturing as part of operation warp speed. The dollar languishing at a twoyear low, adding to the short position. That is boosting demand for the yen. It is trading at a fourmonth high and watching for a push towards 105, which has been a barrier. A september 2018 high after a sevenday gain, which could signal a shift towards the eurozone. Gold breached 2000 amid a negative u. S. Rate. We are watching for silver to 25 with the outpatient gold gain on inflation expectation. Jumping into the terminal, the Precious Metals party has sparked much bigger gains in gold and silver. Surging more than 100 from the march low. You can see them on the terminal. March low. You can see them on the terminal. Australia is expecting the bright spots in what could be a payable earnings season in australia. Morgan stanley finding other silver linings. Expecting sectors like transport, construction and industrials might show promising outlooks. Industrials are among the worst performers this year. Earnings expectations have been lackluster for the sec are all year. Sector all year. Haidi a messy start. Sophie kamaruddin in hong kong. Still ahead, the countrys victoria state has seen another record for Coronavirus Infections despite Strict Lockdown measures. Later we will speak to the top epidemiologist at Deakin University, and ask what could be done to control the outbreak. Outlook fromket the Investment Management with our chief strategist. This is bloomberg. Youre watching bloomberg daybreak australia. The coronavirus have now passed 16. 3 million with its under 50,000 deaths. In the u. S. , infections have slowed in california, arizona and florida. In europe, Health Officials are worried about a new cluster of cases after in outbreak at a farm. More than 170 workers tested positive. The employees have been put under a mandatory quarantine. Hong kong is introducing strict new virus cases as cases surge. In city will ban all dine services at restaurants and all gatherings of more than two people not from the same family. Masks will be made mandatory and outdoor areas. This is hong kongs third round of tightenings in three week. The city reported one hundred 42 local infections monday. A sixth straight day with more than 100 cases. President Trumps National security advisor has tested positive for covid19. The white house that there is no risk to president or Vice President pence. Bloomberg learned he believe he caught the virus from a family member. He has been isolating at home while still running the National Security council, doing most of his work by phone. 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. Still happening now in congress, the republican senators are holding a press conference on the latest 1 trillion plan to stimulate the economy. Mitch mcconnell, the Senate Majority leaders said the senate wont pass a bill without liability protections. We are waiting to see more details. And the benefit payments of workers that may be decreased from 600 that they received from the march economic rescue which began running out saturday. We will continue to watch for more details on this latest round of the rescue package. Lets get more insight on how this could affect the markets and what this package means for the broader u. S. Economy with alicia levine. Great to have you with us. Of fiscalen this tons money already in the u. S. Economy. About 2. 9 trillion flood of money. Not to mention the Federal Reserve doing as much as they can to support the economy. How much more can we expect this to support the markets as we continue to see these measures being put in place . Alicia thank you for having me. I think the market is already pricing in a final bill 1. 5e around 1. 5 trillion. As we have seen covid move through the Southern States and the middle of the country, you have many more senators that are affected by this. So, people tend to be a little more generous with their when their own states are affected. Expecting 1. 5 trillion as a final package. We think the next couple of weeks could be pretty ugly in terms of negotiations, ultimately both sides have clear incentives to get something done. And the white house needs something done. We will get something, it will just be messy. Shery we continue to see these Precious Metals rally. We have a more accommodating said. Not to mention the ongoing the silveres of futures extending, touching 25 per ounce. What does this mean for the broader commodities market, especially in the Precious Metals sector . We continue to see gold touching new records. Seeia we continue to continued gains in the commodities market. That is because the Global Economy is on a growth trend overall. With that, we are seeing metals move higher. Gold has taken out the old high from 2011. On a charting basis that tends to be very bullish. And with all of the liquidity coming from every global central bank, investors are finding opportunity in gold. As the dollar most weaker, gold will get stronger. An inherentere tension at the markets . When you look at the decline in the greenback, which is largely on account of the demise in risk aversion, people are feeling better about taking risk across other assets, yet you see people piling into gold. That willmething resolve, or using these two narratives are not problematic compared to each other . Alicia i do not think its that problematic. Really, at there is least in the u. S. , there is a risk of posturing. We cannot get the 10 year yield up at all even though markets are rallying. While spreads are coming in at investment rates and highyield, the tenure is still extraordinary extraordinarily low near the 50 base moment. Youve got negative real yields all over the curve in the u. S. , thats part of the reason why gold was attractive. Its part of the same message, which is essentially a risk aversion. Here in the u. S. There is a more optimistic view about global markets, particularly europe, and asia because the recovery appears to be stronger and on more solid footing. Haidi we heard from modernity overnight and Anthony Fauci saying that we could see the first efficacy data from this latest data. The earliest is october. Is that enough for the markets, or is there a possibility of an Early Vaccine that it will only create downside and disappointment . Alicia i think that is a great question. What the markets having rallied so far in such a short period of time, the ultimate success of a in. Ine is already watching via text for many years, its a very sticky getess and very unusual to a safe and effective vaccine in a short time. We have a lot of minds working at this and there is a lot of capital being put towards this. It is thoughtful about how to get through some of the regulatory hurdles. But, the markets are already pricing in success. Foristically, cap something everybody by the end of 2020 is probably not realistic. Us,i thank you for joining alicia. The Investment Management chief strategist. Much more to come on bloomberg daybreak australia. This is bloomberg. Haidi mobile virus cases have surpassed 6. 3 million with 650,000 deaths. Cases in the u. S. Have slowed, things pick up in asia. U. S. Start off with the we are seeing signs of stabilization . Some. By 1. 3 . Een cases rise that is still below the daily average we have seen in the past week or it infections in some of these areas like arizona, florida, california, showing that things are slowing down. Perhaps lines of a plateau. We are also seeing signs of just how difficult it is to contain this virus your it we just heard about the u. S. National security advisor who tested positive for covid19. He has mild symptoms, according to the white house. He is selfisolating. According to the administration, his infection poses no risk to the president or the Vice President. But, again, just when we hear about news of things looking better, you have americas favorite pastime returned if you weeks ago. A few Major League Baseball games have been canceled after reports that players and coaches have tested positive for covid19. The yankeesphillies game has been canceled. As 12 according to usa 12ay players as many as players have tested positive according to usa today. Had the worstas flareup since march. Hong kong cases continue to surge. Yvonne thats right. Here in hong kong we saw new measures, a third round was put in place for yesterday after we saw more than five or six kate five or six days of cases. 142 cases. Was restricted past 6 00 p. M. I cant imagine what it will look like once dine in is banned at all times during the day. And outdoor gatherings will be monitored and sports gatherings and pools have been shut. This has been going on for a week. It will be under review once again. The sudden jump in cases, we are not seeing any letup insight. As much as the government is trying to boost testing and bring more hospital beds and expand quarantine, the fact that this the fact that hong kong went through the long stretch as if we dodged a bullet, it shows the government defenses are low at this point. Its another indication that china is playing whackamole in fournuing the virus after months since the wuhan out breaking to an end. Now we are dealing with the new cluster of cases. 61 on monday. Most are local cases. 41 were in the western province. This is centered around the port city. Cases have spread to several cities across northeastern provinces. As far to the southern regions as well. This seems to be linked to people that were traveling. The Domestic Travel resumed in the country. China is undergoing the same playbook as this mass of this mass blanket testing. They are doing shutdowns and targeted areas. We have seen bus and subway services have been suspended. Theyn it came to will test the population of 6 Million People. China can do that. They tested one Million People in just two weeks a couple months ago. We are seeing this bit of a whackamole from china to contain these cluster of cases. Shery yvonne man with the latest in hong kong. Lets get a check of the biz business flash headlines. We might have encouraging news on the vaccine front. Moderna climbing by as much as 11 after getting a second round of u. S. Government funding for an experimental vaccine. Kicking off the late stage trials. Moderna is backed by almost 1 billion in funds after adding almost a half a billion in the first purchase appearance in the study of 30,000 people who have been given cases doses. They hope to have a vaccine by early next year. Google will let employees work from home until at least next year, and has pushed back the reopening of its offices as the coronavirus continues to rage in the u. S. The Company Previously said workers can stay home until the end of the year. Google sent its workers home it in march at the start of the pandemic. s cfo has been named in a federal probe. They received a notice from the fcc which may file an enforcement action against the company for allegation it pulled sales forward in 2015 and 2016. Under armour says they plan to defend any allegations. Amideo step down lackluster sales. Buy at has offered to chinese Search Engine in a deal that will see the approaches in the shells shares it does not own. And plan to take it private delisted from the New York Stock Exchange at a price of nine dollars a share. Thats a 50 premium over its Closing Price on friday. Its not just gold rallying across Precious Metals, silver futures are extending. And were up more than 112 from the lowest in march. That is up from even the rally we have seen in gold. They are up about 2 today. We will continue watching that. In the meantime, gold is at the record high, looking to push higher. A lot of people think that 2000 an ounce is in sight. We will look at where other commodities are being boosted right now. This is bloomberg. Businesses are starting to bounce back. But what if you could do better than that . Like adapt. Discover. Deliver. In new ways. To new customers. What if you could come back stronger . Faster. Better. At comcast business, we want to help you not just bounce back. But bounce forward. Thats why were helping you stay ahead and adapt with a network you can count on, 24 7 support and Flexible Solutions that work wherever you are. Call or go online today. Gold is at an alltime high. The rally will not be over anytime soon. Lets get more with our reporter in sydney. Where watching also the march in silver. We are also watching the margin silver. What are the factors driving this . There is a perfect storm of factors underpinning gold that investors are looking at. We have a slump in the u. S. Dollar. We have negative rates in the u. S. You have the fed expected to keep the policy accommodated when it meets this week. Dhis is seen as store value in times of political turmoil and the covid pandemic. It is seen as a hedge against inflation. We saw the u. S. Possibly looking at a one trillion dollar stimulus package on top of all the monetary stimulus out there. Nobody knows if that is going to be withdrawn. That could be inflationary. That is why you are seeing atldings in etfs an alltime high. Going toward 2000, bank of america it sticking is sticking to its hold over the next 18 months. The Australian Dollar is climbing to a 15 month high. Is this all about the weak u. S. Dollar . What is going on here . The broad dollar weakness is a factor, but beyond that, you have more rate support for the aussie dollar. The rba dismissed the possibility of negative rates here in australia. The governor says the currency is broadly in line with economic fundamentals. However, there are hurdles for the aussie, the first could come this week with inflation in australia. The Consumer Price index is expected to fall. That may sound more dovish. Ba is meeting next week. The australian economy is widely dependent on this rebound in china. T there seem to be new cases of the pandemic in china. There are certainly uncertainties ahead. We will be watching closely. You can get more on gold and the aussie dollars rally and other stories you need to know to get your day going on todays edition of daybreak. It is available on your mobile in the app. This is bloomberg. You are watching daybreak australia. Malaysias high court is expected to hand on the verdict today over the former prime ministers involvement with the state fund 1mdb. 10 million found its way into the former premiers bank account from a unit of 1mdb. He is facing charges of corruption and money laundering, each carrying a sentence of 520 years in prison. Has signaledte Corporate Tax cuts and support for in support of pandemic hit industries. The philippines and post one of the regions longest and strictest virus lockdowns with the second highest number of infections in southeast asia, at around 80,000. The Singaporean Sovereign Wealth Fund have reported has reported its worst result in 10 years, warning could warning things could get worse. It is the worst performance on the metric since 2009, when the fund lost over a fifth of its value in a single year. Gics one of the worlds biggest dealmakers. Total assets, at 440 billion. Earnings season is about to get underway in australia, and the country in the third recession in the last 10 years. Now with ajoins us preview. This earnings season is likely to be a pretty chaotic one. That is a fair call. Forecast the earnings forecast is down about 20 , worst than the 60 worse than the 16 for the msci asiapacific. Analysis that suggests payments may slump up to 40 . Analysts say if they are not expecting about half the usual number of stocks, they may issue guidance. In the background of all of this, we have the spike in coronavirus cases, clouding the outlook. It is possible we could see some more Government Support and maybe that might pop up the earnings going ahead. Tell us about the bright spots then. It is not all gloom and doom. Banks were not expecting a blowout result. Thanks myre saying not be as bad as they are pricing it in. As for the miners, iron ore prices minors, iron ore prices are the record output in china. The only product is iron ore. They are predicting payout increases. Still buying a lot of iron ore. They have not yet [indiscernible] in china when consumptions. There are a few bright spots behind all the wreckage. Paul allen in sydney. No bright spots it seems for the aviation industry. Ryanair will keep losing money through the summer after posting a loss of 17 million in the Second Quarter when jets were grounded. The cfo told us he does not expect the company to start earning a profit until 2021. Year toe planning this ,arry 60 million customers whereas last year we had 149 million. The q2 losses are lower than we signed you one. Q1. Aw in if we see more quarantines and post in other countries, does that mean several quarters of losses . Year, you are not going to see progress in the current financial year. You are going to have to look to next year until you see a recovery on that front. The end of the quarter is important. We ended with 3. 9 billion in cash. A pretty strong position into the winter period. Equally, we have a lot of competitors receiving state aid. This shouldable lead to reduce fares. It is very important the likes of ryanair and businesses are doing that. Getting into better shape than it was. Reducing handling, working with aircraft manufacturers to reduce costs to aircraft going forward. We are planning for these kind forward,ios going strategies. To be hopeful we see a vexing this year or next year year,e this year or next which will get people flying. That was the ryanair cfo, neil sorahan. We will be talking to the Deakin University chair about the surgeon coronavirus races here in australia surge in coronavirus cases here in australia. On bloomberg radio, we are broadcasting live from our studio in hong kong. App or onlinethe com, stay withdio. Us. Shares soared in new york after getting a second round of funding and kicking off the first largescale covid19 vaccine study in the u. S. About theo a ceo timeline for results. You could have it in the november timeframe. It is possible. Is not the base plan. It is the best plan. When this happens, i think based on the data, we can have emergency approval. We could have emergency approval. We could make it available for the people most at risk, the vulnerable, the elderly, health care workers. But we have been doing at moderna, we raised 3. 1 billion to invest in roman to reals and materials in raw and equipment. We are making as many vaccines as we can as we speak, with the goal of making 500 million doses, hopefully a billion doses, in 2021. You just spoke about how what easy it will be to how easy it will be to attract the demographics. To easy is it going to be attract those vulnerable demographics, particularly seniors . Are you struggling in that area . Are people coming forward wanting to take part in the test . It is a bit too early to know about the phase 3. Week, weve had thousands of people across the us to come into the study. Weve had people from diverse groups, both the elderly, africanamericans, latinos, and someone, which is very important. And so on, which is very important. We want the demographics in the u. S. At highest risk. Bear with me. Is your vaccine and antiviral back scene, t cell . Vaccine, t cell . It is a vaccine that is able cells. Ivate both b and t b cells provide neutralizing antibodies. T cells are used for memory. There was a high count of neutralizing antibodies, around four times more than people who were naturally infected. There were good signs. The end of the day, like every other company, we have to run the phase 3 to really know the full efficacy of the vaccine. We are seeing other vaccines cell response. Will this be a key differentiator rest to whether we get an antibody in the cellular response . Is that going to be one of the areas we are going to differentiate . People are very actively looking into differentiation now, because we dont have any more data. To try to mapying out what we know today, from the phase one studys that. Data. Se one study everybody is going to have to the 30,000 participants study, every other person getting a vaccine, every other person getting a placebo, and monitoring them to truly know the efficacy of the vaccine. Phase 3 is going to be the real test for everybody. The moderna ceo there, speaking to us. Victoria recorded 532 covid19 cases on monday, this is authorities try to bring another wave of infection is under n the city. Victoria should be at the peak of its operate. Karen benedict is the chair of ebita analogy at Deakin University and joins us now. At deakinemiology university and joins us now. With do you see in your modeling of how this outbreak works . What do you see in your modeling of how this outbreak works . Are interested to see how cases appear we are interested to see how cases of beer over a fiveday period. Of thes you an idea number of cases being recorded. That relationship is stabilizing. It. Re seeing before lockdown, we saw more cases. It definitely show less increasing cases it definitely shows less increasing cases. We set the focus has been on trying to pull the numbers down. But we do have large clusters, still. We are watching what is going on across the border with some degree of anxiety, with small clusters in this part of australia. Should they be more preventive . Should there be a targeted lockdown . We are seeing clusters emerge from half a dozen different restaurants, for example . Be banned forng now . It is a good question. I think it is quite noticeable it is appearing in bars, clubs, restaurants. The number is still relatively low, even though they are spread across the community, which allows the Health Department to identify situations of exposure. But that is still afterthefact. Its at a point where the Health Department will need to consider closing in dining. I think that is where they are seeing this promulgation happen the most. Mask wearing a something everybody can consider regardless of it being mandated. Especially if they are going into areas where they might not maintain a distance. That is a government message. That is the government message. We continue to see more positive news coming on the vaccine front. Moderna, launching the first scale u. S. Virus vaccine trial. Pfizer will start phase 2 of their study on a vaccine, as well. Where do you see the most encouraging signs emerging . We have so many trying to get to that vaccine. Phase 1 and 2 trials are giving us hope, giving us the type of response we want to see. Safety so far is good. But as they say, we really need 3 get to those phase trials to understand the efficacy of the population level and ensure safety. It is heading in the right direction. We are not quite there yet. We will need to have the vaccine in hand and look at scaling up production. But it gives us hope there can be a vaccine and we will have one in the foreseeable future. When that is is the big question. Is there any hope of reining in the virus without a vaccine . We have already seen china, seeming to successfully rein in the virus, seeing a resurgence with the worst flareups since march. If a government like china can shut down cities and test millions of people in a very short amount of time, and they a virusntrol outbreak, what hope is there for other economies in governments . In australia, we got to a point where we not only suppressed the virus without a stricter lockdown a strict a lockdown as china, we had a reintroduction of virus cannot because we still had travelers coming home. We all know about this breach in our quarantine that accounts for most of or not all of these current cases. Yourselfu can protect in the World Without a vaccine while we still have people around, we will always be vulnerable. That is the challenge with the virus with a virus like this. Anthony fauci says we could as october onrly the moderna trial. To showal is efficacy at 60 . World face a post covid dine we still cant really with large groups, having large in closed, indoor venues . 60 is the same number the modelers were saying could ring this all under control globally bring this all under control globally. Whether it is through a vaccine number immunity, the seems to be sufficient to shut the virus down. It is worth remembering, the virus landed on the u. S. Shores just had tomes, it get into the right situations to really take off and the epidemic to begin locally in new york. You actually shut down all those opportunities the more people in the community that are immune. That is where that 60 seems to be the number where whether it is herd immunity or acting protection, you might still get individual cases, but you do not get chains of transmission. That is where this virus really takes off. Catherine bennett, thank you very much. Lets get a quick check of the latest business flash headlines. Swiss spec invested 100 million in big tech giants in 2018 in a deal that was not disclosed at the time. Two years later, analysts say this deal could be worth as more than 210 billion, which would be a 40 jump on credit suisses ant group investment. Taiwanese chairs were up 17 year to date before mondays jump, after rival intel said it may have to outsource production with psmc expected to get some of the new business. Psmc added to its value since march, pushing an alltime high. Intel is out thing ousting its chief engineering officer. The company said the latest technique for building the most advanced semiconductors was a year behind schedule. He will leave the company on august 3. Intel says the change will accelerate Product Leadership and improve focus and i can ability and accountability. Up, terry gives us her market outlook. Spath gives us her market outlook. Siaybreak daybreak a is going into the start of trading. This is bloomberg. Good morning. We are counting down to asias major market open. Welcome. Our top stories this hour. A big step toward the next them as package for the u. S. Republicans lay out their 1 trillion plan for the next stage of recovery. Global coronavirus cases top 16. 3 million