150,000 mark as texas, california and florida see record fatalities. Infections spike in china, hong kong and japan as well. Hill. Tech titans on the the ceos of amazon and alphabet and Facebook Face a virtual grilling over antitrust. Haidi lets get you started with a check of the markets. U. S. Futures opening flat, slightly higher that by. 1 . This after we saw u. S. Stocks extending gains in the regular session, the dollar declining estate as dovish as possible. The s p 500 gained more than 1 , adding to the july rally. 11 sectors were higher with tech leading the way. As i mentioned earlier, we are seeing that big tech antitrust showdown in congress ongoing at the moment. Nasdaq composite and at 1. 4 high. At a oneweek. The dollar weakness really resumed with the fed sticking with low rates. Look at what oil is doing. It has been the weak dollars supporting oil prices. We continue to see these gains of 41 a barrel. It was also propped up in the new york session by the biggest decline in u. S. Crude stockpiles this year. This is a futures are setting up across asia. Upside. Eeing all to the nikkei futures unchanged. Kospi futures higher by 7 10 of 1 . This is not surprising given that we had a very strong japanese yen this past week. Raking the 105 level. Those gains on the nikkei futures, really muted. Not surprised that much. We are also hearing right now from Speaker Nancy Pelosi of the house of representatives in the be makingshe will Wearing Masks mandatory on the house floor. This of course as we had news again today over more coronavirus cases in the u. S. , including representative from texas who was seen Walking House floor without wearing a mask. And he also catching the coronavirus. Mask. Not wearing a we are seeing nancy pelosi saying masks will be mandatory on the house floor. Comes asah, and this the fed chair, jay powell, warned of the most severe economic downturn in our lifetime as a result of the coronavirus pandemic. Near zero as the pandemic and its affect shows little signs of abating. Joining us for insight is our Global Economic and policy editor Kathleen Hays, as well as Columbia University patricia masa who spent two decades at including crisis related facilities. Patricia, wonderful to have you with us. You had hinted you thought that this would be a sleeping meeting. Anythinghink and interesting came out of the magnitude of devilish and us we heard from the fed chair . Patricia yes. Risksphasis on downside was just pervasive. It was in the statement, certainly, so there was a hint of what was coming. But i think the shares comments shares chairs comments shows about how nervous they are of the economy slowing down. The economy is already slowing down. So they should be worried about this. Example, there is a Weekly Economic indicator index that mimics gdp that the Federal Reserve bank of new york puts out. For the First Time Since it hit its lows down 11. 5 yearoveryear, sometime in mid april, it has basically been improving, except the last two weeks. And it has gone further in the negative territory. So that is not a good signal. Definitely not a good signal. I thought the other thing that was notable in both the statement and particularly the press conference was the forcefulness of chair powells comments about the virus. And the relationship between the virus and Economic Activity. Thataking incredibly clear containing the virus improves Economic Activity in jobs, and if you dont contain the virus, exactly the opposite happens. He made the comment repeatedly during the press conference. That of course has not been a universally held opinion everywhere. So i was interested to hear just how forceful and how forcefully he reinforced that. The last comment i will make is the board ofe, governors did extend the emergency liquidity facilities, both the Financial Institutions and to the nonFinancial Sector through the end of the year. They were originally supposed to expire in september. That was widely anticipated. But it is obviously a signal that they think this will go on for quite some time. Signalingt kind of did you glean from the comments regarding to the fiscal monetary ordination, as we continue to even hear from the president that the democrats and republicans are very far apart when it comes to this latest stimulus package . Patricia yes. I will stay more bluntly than the chair would that the importance of fiscal policy here is primary. Monetary policy in the United States has been very expensive, expensive, and in fact, relatively positive reaction in Financial Markets over the course of the last two months reflects that. There have been big confidence effects. Virus resurgent meets activity,in economic than the Financial Sector is going to follow. The fed facilities which have not been widely used will be used. And they need to be there as backstops even if they are not used. What i do but they have done a lot about what they have done in monetary policy. Not everything, but a lot. Fiscal policy in these situations is much more targeted, much more important. There is lots and lots of economic big economic evidence going back for many decades of the importance of fiscal policy, and particularly time timely fiscal stimulus. And support. The good news was the first round of support back in march and april was done very quickly. I am a little concerned, i have to say, that this time around, the differences in congress may take longer to sort out, and the longer it goes on, the more likely we are going to get a bad economic news. Thateen one of the things struck me is how jay powell also emphasized that we see job losses in services. Weve seen job losses at restaurants and hotels. He went on to say at one point that even if the recovery goes well, there is going to be millions of people left unemployed in industries where you have to be very close together to work. And a lot of people, feel as customers, are not willing to go to those places like restaurants. It could take a long time to replace those jobs, saying again, why fiscal policy is so important. Do you think this is becoming an bigger worry at the fed . Patricia im sure that it is. He out right suggested it. For one thing, it increases economic inequality, which is big enough in the United States right now. It is also something, as you know, that is really a fiscal policy issue. It is not something you can do very much with with monetary or financial policy. I think it is absolutely as the chair noted. It took 10 years to get to the really positive labor market for the lowest parts of the wage distribution. And it all got wiped out in two months. And the fact is it could take years and more fiscal maketance, more work to sure that that part of the get the support they need because otherwise, it is going to keep Economic Growth slow for a very long time. Kathleen what about the hit to retail spending . Because this is another thing. Once the checks stopped, people might have been willing to spend some of that 600 a week they were getting from the federal government. Now they may say, now everything i get is going in the bank, and just compounding the whole thing. What can the fed do about that . Patricia not a whole lot. Precautionary savings is what it is an it already has been going on. Because everyone has known that this program was supposed that the supplemental Unemployment Insurance benefits were going to expire at the end of july. So people who dont have a whole lot of wherewithal to save much have been saving for precisely that reason. We havehas meant that not had as robust, probably, and we have had quite a bounce back in Consumer Spending and so forth. Not where we were certainly in february, but a pretty big bounceback. Forward without that 600, there is going to be more savings by a very wide swath. And eventually, there is going to be just unbelievable hardship for those who cannot go back to their jobs now, and end up just having a massive income cut in the middle of a doubledigit Unemployment Rate. So if you want to maintain Consumer Spending, as imperfect as it is, and any sort of retail spending, you certainly need to make sure that you provide some income support. I have called these cushion the blow policies. Unemployment insurance, the cash rebates, so forth, those are exactly the sorts of cushion the blow policies that fiscal policy can provide. Haidi we really have to leave that there. Really appreciate your time. Professor mosser, and our Global Economic and policy editor, Kathleen Hays with that reaction to the fed. We will have more analysis on the feds policy direction in the next hour. The former imf Deputy Director us. Lipsky joins we will ask him as well why he says there may be a big hole in the system when it comes to emerging markets. Coming up ahead, tech ceos are grilled by capitol hill over antitrust concerns bias and whether china will have technology. We will have more later this hour. First, as global hotspots like the u. S. And brazil pass yet more ram pandemic milestones, we get the latest on the virus and the race for a vaccine next. This is bloomberg. Is is bloomberg. Di you are watching shery you are watching daybreak australia. Top newof the citys security laws. A senior officer told a late night News Conference the suspects wanted to establish a hong kong republic and that they would fight for it by uniting proindependence groups. Police say they made the comments on social media. Hong kongs economy contracted for a fourth straight quarter as the coronavirus protests and u. S. China tensions extended the citys first recession in 10 years. The economy shrank by 9 in the Second Quarter from a year earlier. On more quarter of contraction will think well longest ever recession. The Unemployment Rate has risen to a 15 year high. In other news, the ceos of amazon, a facebook, alphabet have been giving evidence at a hearing on the hill, albeit virtually from remote locations. The committees antitrust panel has been investigating for more than a year whether the tech giants are squashing competition. Documents presented by the committee appear to show facebook bought instagram to kill off competition to its site. India is preparing to send an extra 35,000 troops to its disputed himalayan border with china as tensions continue to simmer. 20 soldiers along with an unknown number of chinese troops were killed during scrimmage to during scrimmages in june. Both sides have been sending reinforcements along with all tillery guns and tanks. There have been talks but no resolution. The u. S. Plans to withdraw 12,000 troops from germany, half of the troops will stay in europe to counter any threat from russia. The rest will return to the u. S. That will leave 25,000 americans germany. In President Trump had been complaining for some time that berlin was not paying its fees to nato. The process will take years and could be reversed if trump loses the election. Global news, 24 hours a day, on air and on quicktake by bloomberg, powered by more than 2700 journalists and analysts in over 120 countries. This is bloomberg. Milestones arem being reached on the coronavirus front. The u. S. Death count is over 150,000. The highest in the world with texas, florida and california all seeing record fatalities in one day. Brazil, japan and hong kong are mired in their worst waves of infections and the u. K. Is rushing ahead of other countries and securing vaccine supplies. Lets get more from our health care reporter. We have been hearing from Speaker Nancy Pelosi saying she will mandate masks on the house floor, that it is really a matter of decorum to wear them at a time when dr. Fauci is saying they may they may be recommending eye protection in order to prevent the spread of covid19. And yet, fires cases continue to reach new records in the u. S. Robert yes, definitely. This is a very, very highly infectious virus. It spreads quite easily, even though many people get mild cases, it spreads quite easily. The percentage of people who get severe cases and the percentage of those people who die, and that is what is happening in places like texas, florida and california. They are reaching record levels of death. These are people infected seven weeks ago and we are getting reports of their deaths. If you have these infections continuing to spread, we will continue to have more deaths. The treatment in hospitals is better, better than it used to be. We have remdesivir and a steroid that reduces the death rate. But this is still a deadly virus. It is just going to keep bringing in the significant numbers of deaths. Do we have on the latest in terms of the race for a vaccine . There are now some concerns as modernity gets funding and make progress at the start of this new trial, that we are going to see some pushback when it comes to pricing plans. Really yeah, we dont know fully what the pricing is going to be of these vaccines. We know from pfizer that they have made with the u. S. Government, that they are planning to charge under 40 for two doses of vaccine. Under 20 a dose. We just dont know what the details will look like with other companies. Although stocks are ongoing. Quite frankly, we dont know much of anything about how well of the vaccines which will work. Which vaccines will work and how it will be. Even though he has made progress in a fast period of time, the key data is still to come. These big trials. Those are just starting. That is the key milestone. Not all the stuff that came before this. Haidi absolutely. Yet now we seem to have a lot of people, investors at least, pricing this to perfection on the assumption of an entirely effective and attainable vaccine. Great to have you. Health care reporter Robert Langreth with us. We spoke with the assistant professor of emergency medicine at Johns Hopkins university. She told us about the potential timeline in her view for a coronavirus vaccine. We are moving closer. The modernity data coming out, both in the animal trials and human trials are looking good. Keeping in mind that both of them a dharna pfizer, that just started their phase three trials these are brandnew technologies. We have not had one that has gone through all three phases before. There is this cautious optimism. Rna is new to bringing vaccines to market and has gotten money to push this forward very quickly. I think everyone is anxiously awaiting the phase 3 data from these 30,000 person trials. Overall, is there too moche vaccine . He are we eluding ourselves that we could have it as quickly as some commentators think we could . Lauren i think there are numbers being thrown out that are quicker then what people who make vaccines for a living think are realistic. That being said, all the resources are going towards this effort. They key is to make sure that the rest of the supply chain that supports the science is there and ready to go. So ensuring we have manufacturing capabilities, ensuring we have plants with good Manufacturing Processes and safe capacity to actually create the vaccine are ready to go, ready to roll. That we have those glass vials. That we have the infrastructure in place to distribute the vaccine broadly across the globe. All of those are critical elements. Any single one of them could slow down the process. Francine will states in the u. S. Be ready to reopen schools in september . Lauren i think it will be a statebystate situation and maybe even a county by county situation. We have to be careful about reopening schools. Because we dont fully understand the role kids play in the way the virus spreads throughout a community. We also have to protect our teachers and families of students who may have comorbid conditions, who may be vulnerable populations, and may be more directly impacted. The guidance that came out from the white house and from the cdc recently, certainly does push to reopen schools and gives us a lot of tools that will help that. That being said, there are many hotspots across the country that just do not look ready. One of the key lines hidden at the bottom of that reopening document is that this will only work if Community Transmission is slowed. And there is not Community Transmission. Shery lauren sauer, assistant professor of emergency medicine. The Johns Hopkins Bloomberg School of Public Health is supported by michael bloomberg, founder of bloomberg lp and bloomberg philanthropys. Coming up, little progress on the stimulus front as Congress Remains divided. President trump calls for stopgap measures when this runs out. This is bloomberg. Republicans and democrats making little progress in resolving their differences over the next stimulus package. Our congressional government reporter is in washington with us. Some lawmakers were hoping to get a bill done by the end of july. That looks like something of an impossibility. The president saying that they are still far apart. Emily yes. White house chief of staff mark meadows left negotiations a short time ago and said lawmakers are nowhere close to a deal. There has been discussion about doing a slimmeddown package. Democratic Speaker Nancy Pelosi is saying it is all or nothing. Shery we seem to have more on the virus front as well. Nancy pelosi making Wearing Masks mandatory. Emily yes. Before this, they were strongly encouraged. But today, a Republican Congress member announced he had tested positive for the coronavirus. This is just before he was supposed to get on a plane with president donald trump. So a lot of members are now going and getting tested, they quarantined, attorney general barr who was in the room with gomer yesterday is getting tested. As a result of that, more stringent measures are being put into place by Speaker Pelosi to make sure everyone really is Wearing Masks, because even now, months into this, there are still some lawmakers that do not wear a mask when they walk around capitol hill. Shery senator Mitch Mcconnell though is not doing anything about it on the senate floor. Oury wilkins, thank you, congressional government reporter there. Lets get a check of the latest business flash headlines. Qualcomm shares jumped in extended trading after a strong field for the Current Quarter and ended a longrunning dispute with huawei. The chipmaker says it is rebounding from the pandemic slump faster than expected and revenues should come in between 5. 5 billion and 6. 3 billion. Qualcomm also signed a licensing deal with huawei, which it says tould add about 1. 8 billion sales. Paypal reported its best ever quarter after it saw a spending surge on its platform as more merchants switch to online sales. Secondquarter adjusted earnings per share came in at 1. 07, beating the average estimate. The total payment volume jumped 30 to 222 billion. On the back of increased online shopping, paypal says it expects revenue to climb by 25 in the third quarter. China says its recovery happening unevenly across the country with sourcing big sales discrepancies depending on their locations. The owner of kfc, pizza hut and taco bell in china said the eastern part of the country is recovering at a faster pace than the rest of the nation. Sales improved in april and may saw a weakening in june. A look at the antitrust hearing on capitol hill and what washington has in store for big tech. We will get more insights from media founder kirkpatrick. This is bloomberg. Us for our special on the tensions and turmoil in hong kong. A city on edge. The latest of americas biggest tech firms continue to face lawmakers on capitol hill. Lets listen to some of the highlights. Our services are about connection and our Business Model is advertising. Andace intense competition both. We have fierce opposition at the developer side and the customer side which is essentially, it is so competitive i would describe it as a street fight for market share. In the few categories that are commercial in nature, we see vigorous competition. We dont have a dominant share in any market or in any product category where we do business. History shows that if we dont keep innovating, someone will place every company here today. Joining us now for more insight is david kirkpatrick. Great to have you with us. It has been a fascinating few hours watching the hearing. The questions, the line of questioning focused on the antitrust issues. You can imagine who are asking those questions. What would you say is the main value of these hearings . Hearingsk that the really have illustrated the many ways that all four of these companies have the capacity to compete unfairly. Which is the primary purpose of the hearing. This is an antitrust hearing so competition is the central issue that is meant to be explored. There is a dramatic contrast between the ways the democrats have been conducting themselves and the demo and the republicans. The republicans have focused on issues of speech and a of conservative voices which may be legitimate but it is not with the hearing is meant to be about. On the other hand, democrats have asked incredibly well formulated questions and clearly the hearings have elicited some damaging information about a for these companies. Timeis is jeff bezos first testifying in front of congress. How is he doing . Even though the data they have accumulated about amazon has been devastatingly negative, his approach to the questioning is probably the best of the four. The most nuanced and the most sensitive. I think he has done beautifully. His Opening Statement was the best of the four. He has gotten a highgrade for his performance. On the other hand, the number of times the democrats have cited dramatic anticompetitive moves that amazon has made particularly regarding marketplace sellers and competitors has been so great that i believe coming out of this, amazon is going to face some new regulation. Ways, the whole exercise is an educational operation. One congressperson said on bloomberg yesterday, the main effort is to educate the american people. Evidenceeing clear that there are harms caused by companies that we otherwise love and they have to be addressed. This is almost a discovery process in that way. Yes it is. Asia,ering that you are even though this is an american congressional hearing and the questions are almost entirely focused on how these Companies Services affect American Experience and values, every country around the world is experiencing many of the same consequences. Governmentve that leaders and regulators from all over the world have been watching these hearings and taking notes very carefully. Many of them would dearly love to get any of these people to come and testify before their houses or parliaments or whatever and its not want to happen. This is the best they are going to get in terms of information and i am positive many many countries are going to take a tougher look because of what has come out today in the United States. What about the lines of questioning when it comes to governance, treatment of the labor forces as well as racial and gender equality . What did you make of their responses . They were predictable. Their work that many questions on that. The questions that were asked, these guys are practiced at giving the obligate tory insert. Obligatory answer. I am most expert at facebook and i think facebook and zuckerberg have done the worst of the four in this hearing. There were devastating critiques that i dont think he dealt with well. On issues of fairness in general , they can sound compelling. That is not the main point of this hearing. You mentioned some of the data gathered against amazon. About some of the examples put forth by congress that were compelling to you. One of the most ironic thing was that the congresswoman for the district in which amazons headquarters are found was citing extremely specific examples that came up during the hearings previously of marketplace sellers who had been discriminated against by amazon either in that for some reason they were booted off the ortform without explanation , amazonastatingly copied the products of companies that were selling on the marketplace and either drove them out of business or dramatically reduced their own sales in order to advantage amazon sales. That is something that has been written about a lot by the wall street journal and others it is a serious problem and i think amazon is going to have to change their policies, their governance, and possibly face regulation because of that. Four arey, the big reporting earnings tomorrow. We have seen a massive rally in their stock prices. Is going to disappoint given the expectations there . Such an opaque economic time where it is so hard to know what is really happening in the economy. I would suspect that apple and willn unequivocally continue to do great in the result. Facebook is a little more of a cipher. Usage has continued to go through the roof during the covid crisis. What has happened with advertising is harder to factor. I would suspect all three of them will not fundamentally disappoint tomorrow. My general view, particularly about facebook, is that the stoxx increase in recent months has been disproportionate to their longterm opportunity. When you listen to all of the things theyre going to have to change, then you ask yourself how much will it cost them to fix these problems . The answer is a lot. That is not good for investors. David, we always appreciate your time and insight. It is also a big day for earnings in asia. Indeed when it comes to the earnings season. Companies to report. This will test the recent rebound we are seeing and earnings estimates. Revisions have turned positive for asia. When it comes to the tech space, we have Lg Electronics and panasonic on deck. Samsung numbers are due. Local media is reporting that samsung is to build three more chip plants in korea. Asian stocks may follow the advance on wall street. Advances from hitachi. We also have big losses at singapore airlines. The dovish fed is weighing on the dollar. Wti is fighting support from the biggest drop in crude this year. Morning the offshore u. N. Holding. In hong kong, retail sales are due today after the latest gdp report marked four straight quarters of contraction. Coming up next, cloudy skies for boeing and ge. How the two giants of aerospace are weathering the slowdown and charting their course for recovery. This is bloomberg. You are watching daybreak australia. Warned of the most severe economic downturn of our lifetimes. The fed kept rates near zero and vowed to do whatever is necessary. He called the path extraordinarily important. Long itnt say how might lost last or how bad it could get. China has reported or than 100 cases of the virus. New cases of the virus. Most of the new cases were in chin zhang province. Tally in hong kong has passed 3000. Lam has warned the Hospital System could be overwhelmed. Sidney has joined melbourne as a virus hotspot. Fromll be cut off saturday. The decision was made after two people traveling tested positive. Wales reported 19 new cases on wednesday. Global news 24 hours a day on air and on quicktake by bloomberg. Powered by more than 2700 journalists and analysts in more than 120 countries. Im karina mitchell. This is bloomberg. Two giants of the Aerospace Industry see a long road to recovery from the pandemic. Ge and boeing both reported quarterly numbers that took a beating. Covers the columnist industrial sector. Expecting the secondquarter numbers to be bad. Tell us about the upside. Notcash burn seems to have been as terrible as analysts had expected. It wasnt as terrible as was expected, but it was still quite bad. Aere is no way to sugarcoat 5. 6 billion cash burn in a single quarter at boeing. Over it ge, you are talking about 2. 1 billion and a quarter. There is no great way to frame that. The Silver Lining for ge is that they see moderate improvements in china in terms of aircraft departures. Theyre looking down 9 in july yearoveryear which compares to 870 slump at the worst of the pandemic. All of those are mostly domestic or regional departures. You are not seeing the International Traffic come down. We are seeing another dip in the americas as the resurgence continues to rip across the United States. What are we seeing when it comes to that mediumterm and longerterm prospects or demand . Is onms at the industry the cusp of an existential breakdown or changes that will be permanent out the other side of the pandemic. In terms of permanent changes, you are talking more about the Business Travel segment. You have seen a realization from Aerospace Executives that the travel is not going to come back. Companies discovered they can do meetings over zoom and they dont need to send their employees to meetings in person. The consumer demand will start to come back, but the economics of that is not nearly as attractive for the airlines. Whether we see it come back to close to 2019 is a debate. Years until weee get back to 2019 travel numbers. Representative today and he said he is reluctant to put a specific date on it because he feels like it gives a false scent of accuracy sense of accuracy. So much is uncertain. We dont know how the cases are going to play out, how governors government and the public are going to respond. There are so many unknowns which is why ge and boeing are not giving any 20 guidance at this point. It depends on what these airlines do with the aircrafts. Boeing is cutting its production schedule. This is on top of cuts it announced in april. This is ace forget setback. This is a significant setback. Lets turn to commodities. Iron ore shipments forecasted between 175180 million tons. Capex is being revised to 3 billion 3. 4 billion. The Fourth Quarter capex number coming in. We continued to see resilient strength when it comes to iron ore. Analysts are piling onto bore bearish outlooks. It has been sitting firmly above 100 per ton. To a metalspeaking group ceo to get more on the companys outlook. Dont miss that exclusive interview at 1 00 p. M. In sydney. A longs is expecting stretch of economic pain following the six excess the success. They took a bad loan charge in the quarter as the crisis hits home in markets like the u. S. And u. K. Hit badly. Earlier, the ceo told us about what he sees as the impact to his bottom line. Been anly there has extraordinary Economic Contraction globally. Particularly in the u. S. And in the u. K. , our two critical markets. We have taken a sizable impairment reserve 3. 6 billion pounds for the first half. The vast majority of that are derived by our risk models where we put economic forecasts into those models. Rates, gdpployment rates, spin growth etc. The models produce those impairment numbers. We think we have been conservative to build proper impairment reserves. Lets see how the economies particularly in the u. K. And u. S. Unfold in the next couple of quarters. We like the comfort of having strong impairment numbers. Yet at the same time, maintaining profitability for the bank. Good morning. I am looking at your Investment Banking business. Fixed income up. Equities trading up 30 . The question is, could barclays keep this up . Had very good performance in our markets business over the last couple of years and clearly the last couple of quarters. Like all of the banks that have reported have commented on, be volatility in the first two quarters were quite exceptional this year. Eighte expecting it degree of normalization. A degree of normalization. We are gaining market share. We want to stay open and for our clients, the insurance companies, Pension Funds that underscore the Capital Markets. What we are seeing is in part, the result of regulatory changes over the last decade. If you go back to the crisis of 20082009, it was based on Bank Balance Sheets getting into trouble. The government has really moved the focus from banks to the Capital Markets. Two Companies Issuing debt and equity into forms things like Pension Funds. That is the story of the first and Second Quarter is the resurgence of the Capital Markets led by massive amounts of liquidity provided by central banks. But his proved to be a fairly constructive response to the pandemic and the economic crisis. Want to ask you about the dividend. The report says you will have discussions toward the end of the year. You talking to the regulator about bringing the dividend back . What we have all settled on, i think the decision around the dividend early on given the Economic Uncertainty we all faced is understandable. We dont know what the second half is going to mean for the economies and for the bank itself. Outcurrent program to move to the Fourth Quarter of 2020 discussions about Dividend Payments in 2021 is prudent. We will have those discussions with our board. Then also with our regulators. I think we are going to leave it toward the end of the year to try to make a determination as to reinstating dividends next year or not. That was berkeley ceo. We will have more on Bank Earnings later. Catch our interview. This is bloomberg. Shipment and iron ore jumped. The worlds fourth largest iron ore producer has just released numbers. It seems the appetite for iron ore for steelmaking remains strong. The chinese stimulus and the recovery post coronavirus is giving the aussie minors a tailwind. For 2020 178 point 2 million tons. The quarterly number up 2 . The guidance for next year is looking similar. Up to 180expected of million tons. To 3. 4pex of up billion. The key is that it remains a low cost producer. That along theer average revenue, it makes it easy to understand the big share price rally we are seeing. Up 57 yeartodate. It is a real bright spot. Do, it is expected to see the largest payout increase of all the stocks on the asx. The Australian Government budget outlook of 55 per ton, the price is almost double that right now. We almost also had a payout from rio tinto. Is excel limit acceleration of a project in guinea. That has been settled. With iron ore prices where they are and chinese demand resurgent, there is expected to be movement there. Be rio ceo saying it will developed with or without rio tinto because there is a huge incentive for china to see that happen. Seet does happen, it could a delivery of 100 million tons per year of iron ore. This is bloomberg. A very good morning. Counting down to asias major market open. Asia. Ome to daybreak the fed signals more stimulus. Jerome powell warns of the worst economic downturn in our lifetime and urges congress to merv fiscal spending
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