We are also watching currency, the dollar has been the big story this week. The euro as well as its counterpart. We are taking a pause from the rally after the ecb, but if we see a gain today, that would take that streak for the longest in 16 years of nine days straight. So far it is flat. Flirting withlar . 70 for the first time this year. The dollar weakening across the board with the exception of the yen. Dollaryen, and offshore hovering. We are watching the bond markets as well. The mliv question is, the yields we are seeing, will they disrupt the equity rally . The u. S. 10 year after the u. S. Jobless numbers that fell again, treasuries ing the worst brent slipping after they did extend cuts after a breakthrough with iraq. Tom the European Central bank did put its money where its mouth is, announcing a bigger than expected increase in emergency bond buying, responding to what it calls the unprecedented contraction in the euro area economy. Kathleen hays has the story. What is driving this aggressive move by the ecb . Kathleen indeed, bigger than expected. Christine lagarde, still a relatively new president of the European Central bank showing she is serious about doing whatever is needed to fight this pandemic. They boosted the Pandemic Emergency Purchase Program, buy 600 billion euros. The market was looking for an increase of 500 billion. The total is 1. 3 trillion euros. Answering questions to reporters, she stressed everybody is on board with this, countering earlier in the week that many members wanted to wait before committing to this further step in the stimulus, but she also said the reason for it is a tepid response but the euro zone economy to all the stimulus already in place. Lets listen to a Christine Lagarde said. We judged it was necessary to it was a unanimous view in the governing council that action had to be taken. Of that inflation outlook, and given a mandate a price stability, action had to be taken. Kathleen speaking of inflation, she noted it will only accelerate slowly. Any measures you look at, well under 1 . She said by 2022 it will be a 1. 3 . The gdp forecast for the year could be down by 12. 6 if the second wave of the virus hits. [indiscernible] it is from the desire to be preemptive. People are stressing german stimulus and the eu looking at a stimulus package yvonne kathleen, i am sorry to interrupt, but your audio is looking week. We are trying to adjust your audio. Lessig at first word news first. Tokyo reporting 28 new coronavirus cases for the fourth day in a row of doubledigit. 128 new cases in the past week, the biggest sevenday rise since midmay. Singapore is urging other challenge from covid19 with job losses on the horizon. Malaysia reported its biggest daily rise in new virus cases since the pandemic first erupted. Wills growing the u. K. Crash out of the European Union with no trade deal. Besides remain far apart on crucial issues with the deadline for agreement looming at the end of this month. Final negotiations on current talks or suffer friday. Boris johnson and Eu Commission had are due to hold talks later on this month. China is vowing to ensure stability in hong kong amid rising tensions over beijings control of the city. The pboc says friendly support of hong kong is a financial center, and recognizes the city is a customs territory apart from the mainland. As china imposes sweeping new security laws. India cost tens of millions of jobs in record low economic activity, and the biggest earnings slump in six years. Profits fell 15 last quarter from data compiled by bloomberg. Those numbers have reported so far with communications, energy, and industrials as the worst sectors that have been hit. I think we fixed the issues with kathleen, lets bring her back. Kathleen, you were talking about the ecb. Lets talk about what is ahead with the u. S. Jobs report. You have the ecb and the eu and germany jumping in to stem lather economies. And the same problems face the u. S. , and that is why there is so much focus on this jobs report, because jobs are declining in the millions in the month of may. Not as much as before. Unemployment rates will hit levels we have not seen since the great depression. We have a chart to show you to show you the comparison. April payrolls were down 20. 5 million. May, 8 million. Unemployment up to 19. 4 , we have not seen that level since the great oppression. Average weekly hours increased a little bit. Earnings will be strong again because lowwage workers have been laid off. Around the payrolls, the jobless came down to 1. 9 million, less than 2. 1 million from the week before, but if you add them 8l up, you will still see million worker loss. Payroll was much less of a drop than people thought, 3 million instead of 9 million. Traders are looking closely at the payroll number to see what it shows. , president s numbers today that big story the trump team is looking at another stimulus plan up to 1 trillion. The house passed a stimulus that the senate rejected. Trump wants Infrastructure Spending and more benefits for workers. You have an election coming up. Mitch mcconnell saying there will not be any bill proposed before the july recess, so maybe by the end of the month. A little politics creeping into this question of jobs and the economy in the wake of the virus. It is one more thing to be watching out for july. Hays, that was kathleen with that u. S. Jobs report. Still ahead, billionaire breakup. We have more details later on this hour. Week in we wrap up the markets. This is bloomberg. Yvonne global stocks are on track for their best week in two months, but concerns this rally may have gone too far. Richard harris, ceo, port shelter Investment Management joins us from hong kong. There is a debate about where markets will go. Are tooy investors complacent and are ignoring technicals, showing things too heated, ignoring valuations and bad news around the world. Another camp says, i have total confidence on Central Banks intervention. Where do you stand in this debate . Everyone has confidence on the central bank, and if you look at it, it is extraordinary. Increase fromt an the ecb, 600 billion. If you remember from 2008, that was 758. This is adding a drop in the bucket. If you look at 10 trillion of liquidity, people know it will go into assets. Asset price inflation. Bigre seeing recovery, numbers, economies recovering, jobs slowing down. All of these positive bits of good news look like good numbers. We are in the middle of a surge that people have some optimism coming out of the coronavirus. The liquidity and the surge are causing this rush. Yvonne what is the strategy for you . , iteems the rally in asia is still the tech giants like samsung and tencent fueling gains. Do you stay with these quality names or is it time to rotate . Richard i think we are seeing the whole economy pivot. Think of people working at home, there will be some people on the say working 20 who from home is fine. They cane doing it and do it fine. We will see hit on parts of the economy. Estate, office real estate, what will happen to public transport . These things on the margin will be hit as the economy pivots. We are seeing people move into tech. Now we are seeing rotation as people are saying there stocks like boeing which is too cheap, and other airlines which seem to be at deaths door. Also investors have to be careful of those stocks that will be losers from the pivots. Which do you support the view . It is time to shift to cyclicals, or a more cautious view suggest you want to remain defensive in be hedging your portfolio . Richard yes, those people saying that are right, if you do ,nything based on fundamentals what we used to call rational economics, it looks too expensive and should come back. These are not rational times. These markets are driven by liquidity which is driven by essentially printed money. The centralbank so sterilized that in due course, but they did not do it last time. We are releasing massive inflation of asset prices. There are big dangers out there. I would tend to have a conservative portfolio. Tech stocks are fine. Need to be in the right stocks, in the right markets, looking forward to 20252026 and industries then. Tom what are your views on hong kong . We have this tussle between london and beijing, the concerns about the security law, the National Anthem law. Are you concerned about the prospects of hong kong as a Financial Sector and rethink any investment you have in the city . Richard hong kong is changing, no doubt about that. T is administered by beijing the major companies, we have seen management removed last year. Hong kong bank has to fall in line, and so do other banks. Organizationry of rather than opinion. In the area,ork hong kong is changing. One thing that needs to be remembered, it is a great place to do business. Low taxes, skilled population, good Corporate Law which will be run by the commercial courts. It is a good place, but on the margin we may well see people move a few people to singapore. That is on the margin and will be damaging. People need to factor that in. Saying as theu economy slumps, the Financial Sector can stay strong businesses and banks in a way active to china and money there . Richard i think the Financial Sector is ok because of the nature of its business. Key threats to hong kong, one is the possibility it loses its special status. Exports may be tariffed, and that will reduce activity in the logistic sector. That is an important thing. The other thing is britain and the u. S. To allow access to hong education and to citizenship. Believe the biggest danger hong kong faces is the brain drain of young people who say we will not have much opportunity here, and have a way to go somewhere else, and we will do it. If there is any threat, some imports from the u. S. And u. K. Providing passports. Innne how do you play that a market narrative . Do you focus on the china exposed names and avoid domestic hong kong . Richard domestic hong kong will probably get hit. The market as a whole is not domestic hong kong anymore, it is broadly global china. People are looking at the markets in the hang seng already in that way. Yvonne before you go, what are you watching out for in terms of market risks . If anything can bring down the markets, will it be the u. S. China trade tensions . Richard there is always a risk, the unknown unknowns are good to look at. The biggest thing is maybe a slightly longer narrative, as andgs start to top out recovery eases and people go back to work maybe we will have a second phase, but i think that will be controlled we have all the good news at the moment, the question is where will the good news come from as people remain unemployed and earnings under pressure . Tom have a great weekend. Richard harris, ceo, port shelter Investment Management, joining us from hong kong. Coming up, do not miss our lineup of gas to discuss the u. S. Jobs report, those interviews later today. This is bloomberg. Yvonne latest Business American Airlines announced capacity will increase dramatically next month. American will boost flights by 74 in july to 4000 a day, up from 2300 in june. 40 of what it was a year ago. Passengers are keen to get back in the air after the coronavirus lockdown. Uncertainty surrounding business , and indication it is not benefiting from the work at home era. They tried to strengthen its position during the coronavirus lockdown. Its app is a combination of an office chat room with an automated workflow platform. With jeffin a feud bezos, saying it is time to break up amazon. He tweeted monopolies are wrong while tagging jeff bezos. Tom we are continuing to watch the protests in the United States, people protest in new york. Up. Can see police lined this is a live shot from new york. There is a curfew in place, but protesters remain on the streets. Pushback from the former defense mattis accuseds in criticize president trumps handling of the protests. These are peaceful protests it seems in new york city, and the New York Times reporting a number of people have been with no provocation by Law Enforcement in that city. This is a story we will keep across, memorials in minneapolis for george floyd, the man killed at the hands of White Police Officers in that city. This is the scene in new york currently. Despite what we are seeing on the streets, it is much more peaceful than earlier this week. New york mayor bill de blasio is targeting the july relaunch of Outdoor Dining in manhattan. Taking a look at markets, once again it is a mixed chair when it comes to asian equities. Markets like the philippines and indonesia selling off after signs that technicals are looking too far. Taiwan is looking good today. The dollar as well. It continues to be weakening especially with the euro rally, but that has taken a pause today. We see the correlations with the euro and turn sees at some highs. See the fixedo income space selloff across the region. The aussie 10 year yield is basis points. Ur some of thee for worst performance for treasuries in three weeks. Oil continues to be a big focus after there was an opec deal struck between opecplus. Iraq finally playing ball when it comes to the complaint issues. It seems this rally also stalling, some questioning whether the onemonth extension is enough for the rally to have some legs. Plenty more coming up. This is bloomberg. When you say what youre in the mood for, the xfinity voice remote will find exactly that. Happy stuff. The groups happy, im happy. You can even say a famous movie quote and it will know the right movie. Circle of trust, greg. Relax, the needles are jumping. You can learn something new any time. Education. And if youre not sure what youre looking for, say. Surprise me. Just ask what can i say to find more of what you love with the xinity voice remote. Tom happy friday. It is 10 29 a. M. In beijing and hong kong. Here are your first word headlines. Applications for u. S. Unemployment aid rose again last week. A slight slowdown in numbers. Showing the economy is still being hammered by the virus shutdown. Initial jobless claims fell below 2 million for the First Time Since midmarch. Separate readings show u. S. Trade in goods and services plunged in april to their lowest in a decade. European central bank is stepping up its central its response to the contraction in the euro zone with a bigger than expected interest an expected increase in the bond buying program. Trillion to at least june of next year. Italian bonds rallied on the news while the euro reversed losses. Christine lagarde says action has to be taken. Extendus is set to production cuts after a breakthrough in highstakes negotiations and could sign a deal this weekend. Russia and saudi arabia are said to have clinched agreement with iraq home of the pair accused of shirking its share of restrictions. The agreement still to be ratified would see opecplus extend its record production curve for another month until the end of july. Myanmar says it will hold general elections later this year, confirming expectations for a vote at the end of 2020. The National League for democracy scored a landslide victory in 2015 as myanmar emerged from five decades of military rule. Allegations of genocide over the treatment of the minority have overshadowed her administration. Yvonne another check of markets. The theme of today and the last 24 hours is curb your enthusiasm because we are seeing mostly lower and it comes to asian equities after global stocks had a studying rally a stunning rally the last two months. A seventh day of losses for your bloomberg dollar index. Still giving support to submarkets. Down 2 in p comp manila. Jakarta falling 1 . Nifty futures looking positive for the mumbai session. It is once again the currency we are focusing on. The euro rally taking a bit of a breather. The dollar once again down. U. S. Futures are slightly positive. The aussie 10 year yield still supportive, above the 1 threshold. Brent crude pretty much flat. We are hovering around 40 bucks per brent 40 bucks for brent. Tom lets look at another Investment Option for chinese investors in the property sector. China started a read trial in late april focusing on raising capital for Infrastructure Projects as part of the plans to offset the coronavirus fallout. The strategy could alleviate growing debt and capital pressures on the state owned enterprises and global state owned enterprises. Goldman sachs says it could one day surpass the u. S. In be worth as much as 3 trillion joining us. Is stanley joining us is stanley. The firm has invested a hundred 42 million u. S. Dollars in chinas cause i read market. Thank you for joining us. What is the significance of this move . Why are they doing it now . Who is likely to take advantage of the changes . Good morning. It is a great question. Basically, i think you just described the background. After the coronavirus, there will be a stimulus package to be implemented. On thes focused a lot infrastructures. As a background, china has been discussing the real read for the last 15 years but has not come to a reality. Now the timing is right because i think this is a tendency for investment for many of the chinese investors that they can invest. The sponsors will be able to get their capital back. To reinvest mostly in the infrastructure. During this trial period, only certain sectors are allowed to issue the real rate. How much tom demand you expect tom how much demand you expect to see for these products and where is he going to come from . Is it going to be institutional or momandpop investors . Because of due to the trial, the authority is very cautious. Slice is offered said the individual investors. To keepsors required 20 of the offering. Out of the remaining 80 , 80 ghost institutional. Individuals. 16 of offerings are able to be invested in individual investors. In the fact that none of the products are listed yet, i think it will need some time to see how the market develops. As you said, these are more yourstructure trusts than typical rates you see in the market. It is not including residential and commercial assets. Does this surprise some of the cashstrapped policy developers from access to this market when they need it the most . Is theink the message deleveraging is arearoperty market is an the governme