Curbs. The amount of storage is 300 higher than a year ago. And global virus cases top 7 million in less than a week after topping 6 million. The u. S. And u. K. Show signs of a slowdown. India and brazil are the new hotspots. Taylor lets get a quick check of those u. S. Markets and a reminder of how they ended. Erased all the losses that we have for 2020. The nasdaq 100 continues to post more record highs. You see futures taking that in stride, mostly unchanged after what has been an astounding past few days coming up the big fridays jobs report. The optimism continues here in the monday trading. I do want to see how things are shaping up for some of the asian markets. For that, we have Sophie Kamaruddin here. Are asian markets extending some of the optimism we got in the u. S. . So, even afterestly we got warnings from slowing growth from the world bank. Kiwi stocks adding about one third of 1 at the start. Clawing back year losses as the country with social distancing rules. Australia futures pointing higher, but coffee future set a lower future set a lower. Contact with the south coming from midday today. We will check in on currencies. The dollar at a threemonth low. The aussie Holding Steady after topping 17. The offshore yuan trading at a one month high. The yen after the biggest gain in two months with options getting but. Ought. Check out the hong kong dollar, staying near the strong end as htma continues to defend after selling 4. 5 billion since april. Now checking in on the commodity space. Wti coming online, just below 39 a barrel after slipping overnight on saudi decision to end extra supply cuts. While iraq said it is committed to the opecplus deal, securities lagging caution in compliance as the producer would have to cut 80 . Gold testing 1700. The fed saying dovish this week. Scott minerd saying he is favoring gold as the fed needs of finance the deficit in the u. S. Exceeding into the dollars decline. Taylor we pushed forward into that fomc meeting. Sophie kamaruddin there. The bull run and stocks is forcing some of the most successful investors to admit defeat. Hedge fund manager said he was far too cautious during the market gains. I missed a great opportunity here. Wont be the last time. He said the risk reward calculation for equities was the worst he had seen in his career. Still on the bullish side is the senior Portfolio Manager for Wells Fargo Asset Management and he joins us now from newton, massachusetts. Are you fully in the camp this is a bull market instead of a really big bear market rally . Yes, i think it is the beginning of a bull market rally. You cant underestimate the effect of what the fed did, pouring trillions of dollars of liquidity into the financial markets. One, it stabilize the real economy and you can see that by the recent unemployment numbers. Two, it assures the companies will not go bankrupt during this complete shutdown. We think that as we go through each quarter, we will see surprises on the upside. Inould say this huge move the treasuries and stock market has been due to this massive liquidity that has ported in a short time. Taylor all based on the fed. Is any of it due to the cheap evaluations we had in the march 23 selloff . Margie yes, the market on march 23, even at the time clearly reflected very negative outlooks for the recovery in the economy, not only in the u. S. But globally. Since then, we have seen modestly improving statistics for the virus. But more fundamentally, we have seen market enthusiasm come back simply because the market has responded so well to these backstop liquidity measures. Also, the Unemployment Insurance program which is putting 1 trillion annualized into consumers pockets. Even people who lost their jobs have income to spend so they did a great job stabilizing the economy. All we need is for the economy to get back in gear. The virus to continue to decline and we should be great for a multiyear move up in the equity markets. Haidi semiconductors is one of the themes were positive on. I thought it was interesting the overnight exuberance. We did see weakness with smes index and the nasdaq gold index. Does that indicate we will see a flareup of chinau. S. Tensions again . Margie yes, but i think it is reflected in the prices of the semi stocks. They have a combination of longterm growth and also value because due to the cyclicality of their business, the underlying business is, they often trade cheaper than a pure growth stock and many of them have very attractive cash flow even with the setbacks here and have attractive dividends. We think they adequately reflect the uncertainties they have about u. S. China tensions. We have been talking about the rotation into value for some time now. Evaluations we are now seeing in these markets, the levels we are trading at, does that make that rotation from growth look a little more painful . Margie i think the growth stocks, those companies that have longterm growth due to their Business Characteristics are still going to be the market leaders. Weve had a lot of puts and takes and trading shifts in the last several weeks where people are making shortterm moves in certain sectors. We may see utilities pop up or materials pop up, industrials pop up. Today was interesting. The two sectors that really lagged where technology and health care which had been the two growers over a number of years. Theres a little trading undercurrent, but basically the longterm advantage is going to be with growth stocks. Taylor i want to go across asset and do some analysis with the with Investment Grade fixed income and then go down into highyield. Talk about how the defensiveness of the highyield sector has been some of the biggest dow performers. Are the double d sector still look attractive after the big fallengiven the feds Angel Program effectively could keep a resort for that grade of highyield . Margie yes, we had a huge move in highyield. Actually in this quarter so far, weve had a move in prices of highyield bonds of 10 to 12 which is huge for the highyield market. Right now, a yield of around 3. 3 to 4. 4 which is pretty modest them where they were a couple of months ago. Still, for an income oriented buyer, it is the only game in town in a relatively safe sector. Its interesting that many people felt a month or two ago when the highyield market had a huge correction that this was a warning sign of fundamental deterioration in the economy and a warning sign that equities were going to weaken. What weve had in the last month is just the opposite. Weve had yield spreads of, prices go up and now the highyield market reflects a Pretty Healthy condition. The average bond yield is about 6 . We were close to 5 only a month ago. Haidi always appreciate your time with us. Margie patel, senior Portfolio Manager for wells fargo. You can get more on the markets on todays edition of daybreak. Bloomberg subscribers, go to your terminal. All the way back to the beginning. It is also available on the bloomberg anywhere app. You can customize settings so you get the news on the industries and assets that matter to you. A check of the first word headlines. Karina mitchell has those. Karina the former Police Officer charged with killing george floyd offered nope well in his first court appearance. Hes accused of murder, having his knee on floyds neck for almost nine minutes. Democrats want sweeping changes making it easier to sue Law Enforcement including have police where body cameras and ending chokehold. Meanwhile, the European Central bank says it expects the Single Market economy to shrink by almost 9 this year before recovering modestly in 2021. The eurozone is entering its worst recession in decades, hammered by the coronavirus, triggering a slowdown and a weaker global economy. The ecb has promised to cushion the blow and president Christine Lagarde says policymakers will act as needed. I very much welcome the european parliaments call for an ambitious european response. I count on this house and this committee to design a strong and effective financial framework. At the same time, you can rest assured that the ecb will, within its limits, continue to support the recovery with all appropriate measures. Karina tension is rising again on the korean peninsulas with the north saying it will close down all contact with the south. The two sides normally scheduled talks at 9 00 and 5 00 each day, but phone calls have been going unanswered with new propaganda at the border. ,ew pictures of kim jongun residing over a meeting. A court has rejected demands for the arrest of the samsung heir, saying there is no compelling evidence. Lee is accused of bribery and corruption. Prosecutors allege he and samsung use the legal means to assure his succession. Samsung has ordered an independent review into the impact of the potential indictment. Global news 24 hours a day, powered by more than 2700 journalists and analysts. Im karina mitchell. This is bloomberg. Haidi . Haidi still ahead, global coronavirus cases top 7 million now. New Research Suggests we could see half a billion more without a lot on measures. We get the details next. Gold back above 1700. Investors anticipating the fed will stay dovish. We will discuss the outlook later on. This is bloomberg. Haidi as places from new york to new zealand these virus restrictions, we are learning how effective such interventions may have been. Lockdowns and other Health Measures may have prevented half a billion cases in six countries including the u. S. And china. Interesting to look at this because in australia, you have a lot of people saying the curve was never going to be that bad anyway. It does go to say how effective the lockdown measures have been across some of these countries. Absolutely. I think when you look at that sort of counterfactual, you have to think about what might have happened if there were no lockdowns whatsoever. I think the results would have been quite awful. If you look at the example of new york city, which you had hundreds of thousands of cases and tens of thousands of deaths. That is a situation where it did end up in quite a Strict Lockdown for months. Quite a number of other urban centers where there was a similar outcome, you might have had that if there was no lockdown and a very tragic outcome. You also see the unfortunate consequences of only doing a really modest outcome or lockdown, lifting measures to soon. The continued rise of cases in sweden, and now in the united states, you have a number of different parts of the country that are starting to see either just a plateau that they never quite managed to bend and a continuing wave of deaths. Or outright case growth in some cases. Taylor im in new york city. The mta subway opened today for the first time, meaning a lot of people were out there riding. Masks are required but i am wondering if that is enough to get people back on that subway. What is it going to take . Max i think its going to take kind of sustained evidence that you can do that safely. It will be a long process because this initial wave, initial reopening is a pretty limited subset. You will have a few hundred thousand more people going to work. The cityy nothing like at full clip where you have millions and millions of riders every day and a density that anyone in the subway knows it is not possible to distance. It will take just a shift in ofture of wearing masks, running more trains, doing everything you can but there is no way to do it without some additional risk. It will take keeping that case count down and continue to build that test tracing, isolate capability the city is working on. Haidi the reopening challenges talk about that kind of density, im wondering in terms of the science, what more do we know about these a symptom at a cases . Says transmission seemed to be rare. Do we know more about antibodies and immunity that can aid us as cities reopen . Max absolutely. Analysis is focused on truly symptomatic people. These are people that never developed symptoms. There is a different category of people that i believe wont include in the analysis which are pretty symptomatically people. People that go on to develop symptoms but for a few days, they dont have it but are shedding virus. Limitedthe w. H. O. Has a amount of data suggesting that, the other group may still be a significant issue. That will be something that means you have to continue to do at some level of distancing and continue to have people wear masks. On the subject of antibodies and acquired immunity, the sense we are getting is that people that make it through the infection, you have at least some degree or some biomarker correlates that make that likely. We still dont know and wont for a while how doordash durable it is. Yorkin a place like new where it had a really acute outbreak, the antibodies survey study we have suggested infection rate of somewhere between 20 , maybe more. That still indicates the vast rickity of the population probably has the most infections. Really far away from herd immunity. Something that might make any future second wave a little less acute, but not so you can count on or have a substitute for continuing to take strong measures and take a lot of caution. Taylor what are experts saying about the threat of a second wave of this virus, in part, because of the Mass Gatherings we are seeing due to the protests, for example . Max i think they say generally that at least some form of a second wave of the virus is inevitable. For the u. S. In particular, it may take a different form that i think people are envisioning of just a renewed wave that looks Something Like we saw in the spring. It might be different because you have this sustained level of infection in the population in many places so that means the number of infections keeps rolling along. While it may mean the future spike is not as acute, it does mean the conditions for a spike if people get less cautious, if people start to have more Mass Gatherings, protest or otherwise or the natural kind of reopening. It is something that absent early intervention, contact tracing, which are things that are still being built out, could get quite bad quickly. Taylor fascinating analysis. Thank you, max, in new york. Coming up, oil slides on both sides of the atlantic as saudi arabia says it will not push for more production cuts beyond the agreement. We will get the outlook next. This is bloomberg. Haidi lets check in on the oil patch where we are seeing a tumultuous session after a rally. Taking a look at what prices are sitting at the moment. In new a tenths of 1 york. Goldman sachs has been shortterm bearish when it comes to oil and saudi arabia is shocking asian buyers with hikes. Su keenan has more. The saudis decided to end the extra output cut and that drove the downside we saw in the session. Su yeah, they are saying the extra cuts which were above are no longer needed. They served their purpose. It is a number of strategies they are using to boost prices. If you look at the chart of west texas intermediate where it was down as much as 4 in the recent takeon, it is starting to a pause in the rally and market watchers say the market is pretty much spooked by the aggressive nature of those saudi price hikes. They are the biggest hikes in 20 years. The outlook for demand is gloomy and the view of goldman sachs. They believe brent crude could fall to 35 nearterm. They are bearish because of the poor returns from refineries. Theres a view that the opecplus deal that was reached to extend output cuts in july are already priced in. Lets listen to the saudi oil minister. Of even sending an agreement at the end of 2022. Opecplus on that aprt. Part. Su until death do we part. He is saying we have the option to keep extending it, but it is not the golden bullet solution. Taylor it is also interesting the last couple of hours, we heard from chesapeake. They say they are preparing to file for chapter 11 bankruptcy and looking to give lenders control. What do we know . Su bloomberg hearing from those close to the matter, not yet announced, that chesapeake player,a huge strong preparing to file a potential chapter 11 filing. We are hearing giving control to the senior lenders. Bloombergbell as moved the story on this, the stock fell but check out the regular session. The stock was on fire not just on the monday session, but friday. It was up triple despite 22 trading calls on monday and up some 76 on friday. Chesapeake is negotiating. Its according to those close to the matter, it is debating whether to not pay the 9 billion which would give it a great time to talk to lenders. It was a Strong Company that struggled for more than a decade of staggering debt. Back to you. Taylor bloombergs su keenan. A quick check of the latest business flash headlines. Oilsnning two jobs as recent plunge accelerates and moves to slimmed on the transition. It says falling prices and demand, plus the coronavirus have forced a change in the way the company operates. 10,000 jobs are in jeopardy. 14 of the workforce mostly in office space roles. Hong kongs reputation as a Financial Center is rising again has new share sales brought investor money and the second Largest Online retailer is seeking more than 4 billion u. S. Dollars in the secondary and the offer is said to be several times. Over it follows the sale and comes with hong kong grappled with the coronavirus, months of protest and a potential downgrade by the u. S. Coming up next, it is a big win. Why the latest ruling in the years long probe. What it means for samsung, its billionaire and the tech giant next. This is bloomberg. Karina you are watching daybreak australia. Global coronavirus cases have top 7 million more than a week after reaching 6 million, driven by new infections in india and brazil. There are signs that numbers are slowing in the u. K. And u. S. The u. K. Is starting a mandatory 14 day quarantine for anyone entering the country. The government insists it is vital but airlines and other businesses say it will devastate their operations. A new report says indonesia is in its worst shape since at least 2004 as virus prevention measures hammer businesses and households. The vast majority of respondents claim Current Conditions are bad or very bad, and almost 90 expect incomes to drop, as virus cases decline. The government has announced stimulus wor