U. S. Stores while pepsi shuts a food plant in beijing. Sending a message to the white house. How tictoc users may have contributed to the low turnout for President Trump in tulsa. Haidi lets take a look at how we are shaping up when it comes to the start of trading this monday morning in asia. Looking like a pretty uncertain start as u. S. Futures are. 25inuing to drop at percent. Nikkei futures trading in chicago down. 4 . We have a bit of strength in the yen in fact. We had the dollar outperforming at basically every g10 currencies in the overnight session other than the japanese yen which is sitting at that high 1060 handle. The are also seeing a slip when it comes to trading in oil prices after the market rose almost 10 last week on news that these output curves are continuing to work to break down the supply glut these concerns about a second wave of this virus resurgence are clouding the demand outlook and causing a bit more of a downside trading action when it comes to crude. We will be watching the aussie dollar as well, something we are seeing downside out. The kiwi and the aussie continue to sleep. Australia contending with the potential fresh wave of cases has restrictions are being extended for that state, shery. Shery china confirming that its new National Security law will allow beijing to override hong kongs independent legal system. That is shedding new light on a move that has stoked tensions with the u. S. And threatens the status of the top financial center. Yvonne man joins us now. This is not the full draft, but some language has been released. What is a key takeaway . Yvonne the details of this draft bill have been kept secret up until now and this is what we are hearing so far from the news agency. It released snippets of this legislation over the weekend. The Central Government will have jurisdiction over an extremely small number of National Security cases under specific circumstances. China will establish a new bureau in the city to analyze the security situation, collect intelligence, and lawfully handle National Security cases and then hong kong will establish a new committee to protect National Security. The chief executive will oversee this committee as well as appointed judges to handle criminal cases brought under the law, but ultimately, beijing will have the final say. And beijings response so far, the push for this National Security legislation in the National Peoples congress, has been a more direct challenge to hong kongs economy, and really has undercut the momentum that the prodemocracy camp has achieved over the past year, and the imposition of this now, of bill, does suggest that beijing will circumvent any Hong Kong Institution that does not comply with their wishes, all the way from the legislature to the courts and to the chief executive. Haidi what have we heard from the prodemocracy camp in response . Yvonne right, well the path forward for them is still unclear. Earlier this year, they were riding on fresh hopes that they could win a majority in the Legislative Council when those elections are held in september later on this year, and now, these fresh details do generate some alarm among the prodemocracy camp. We heard from Fernando Chong saying details made clear the communist party has the power to pick whoever they want to bring them to the mainland to face criminal charges. This lawhat, no doubt, will turn hong kong into a mainland city. We heard from a prodemocracy activist. He tweeted out over the weekend that this draft bill does undermine hong kongs legal system and essentially allowed the communist party to intervene at will. This is what he tweeted out. Being one of that prime targets, i will be subject to tortures. Therefore, i call upon the world to stand with hong kong and urged china to withdraw this evil law. We did hear from carrie lam over the weekend once again trying to reassure the public that this law will only target, she says, an extremely small minority of people. She continued to emphasize that the freedoms of the overwhelming majority of hong kong residents will be respected. Shery what details still need to be ironed out . Yvonne a lot of unanswered questions. The key one is, is this bill going to be retroactive as law . Which cases will beijing have jurisdiction over . We are talking to a hong kong delegate of the chinese legislative body. Rt hk that a chief executive will make a call on these specific circumstances that have been highlighted in extremelar and situations go beyond the control of the Hong Kong Government or if the city is near the state of war. Also, the definition of those ber crimes news to ironed out. What does it mean to crimes like secession, subversion, terrorism, and collusion . What are the maximum penalties for these types of crimes . It can range from three to 10 years and largely would be in line with hong kongs terminal laws but still, a lot of . Out there. The Standing Committee will meet discuss more in beijing. This National Security law, not on the agenda so far, but could be added last minute, which was what happened last weekend. If so, there is speculation that they could pass this National Security law without a full draft being released before july 1, which would be the anniversary of the hong kong handover. Haidi. Man with the latest. And you can find more analysis on the proposed Hong Kong Security law in todays edition of daybreak. Bloomberg except for eyebrows just go to dayb on your terminals. Its also available on mobile in the bloomberg anywhere app. We will continue to discuss chinas National Security legislation in the next hour with our guest. Still ahead this hour, the International Monetary fund is set to lower its 2020 forecast this week, two months after predicting the steepest recession in almost a century. We look at an analysis with sarah hunter, next. Ownapple may shift to its main processors, replacing those from intel. The Senior Analyst will be with us later. This is bloomberg. Karina daybreak asia. Spain has been hardhit by the pandemic but his lifting restrictions on visitors from the e. U. , the shenzhen area, and the u. K. Italy is preparing to seek a wider budget gap at the government draws up a reform plan to lobby for assistance to recover from the covid19 knocked down. The Prime Minister will focus on Infrastructure Projects such as highspeed rail and may cut the at. They do not have the resources to cope with the fallout. Singapore is positioning itself for the post virus world with a massive investment in innovation beyond the immediate support announced for struggling businesses. The government will set aside more than 14 billion u. S. Dollars to support research and what it calls highimpact areas such as health and biomedical services. The investment is part of a fiveyear r d plan currently being finalized. Indias virus lockdowns saw oil imports slump in may by the most in more than five years. Refiners received 50 million tons of crude, a 23 percent fall from a year ago, and the lowest monthly total since february 2015. India is the thirdlargest oil market in the world but insumption dropped by 70 april. Refiners normally import 85 of their needs. 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. I am karina mitchell. This is bloomberg. Haidi. Karina, two months ago, the International Monetary fund predicted the deepest global recession in almost a century, and this week, the fund is set to release another outlook that could be even worse. They weather that pandemic. Hunter, in the same way that companies are throwing their arms in the air and being unable to give Forward Guidance pending on so many different factors over the next, you know, 2, 3, six months, is it the same for economist . Doesnt the next step and the likelihood of the shape of the economy really depend on the second wave of infections that we are starting to see in some parts of the world . Sarah yes, thats obviously one of the key factors. And certainly, the situation is changing, and evolving very quickly. Looking at the previous forecast they put out in april, i suspect we will see them downgrading places like the u. K. , where it has been much worse than we previously anticipated, one of the worst impacted economies, and that is likely to come through in the gdp numbers. Equally at the time, they were expecting the outbreak here in worselia, significantly than it has actually been. They controlled the pandemic here very well. We are seeing restrictions and starting to get back to normal. We will probably see an upgrade to the forecasted gdp for australia. So it is going to be interesting to see where they eventually end up. They could well downgrade their outlook for global gdp because some of the biggest economies are perhaps coming through worse than anticipated. The number of infections is really crucial if we get a second wave or not. The speed of the restrictions are relaxed and how comfortable people feel interacting in the economy and returning to normal, those will be the crucial drivers of the speed of recovery in any given economy and therefore in the Global Economy more generally. Haidi there has been the argument that in asia, we will see a quick. Recovery. A lot of these economies were first in first out. Gotten very lucky with the way it has been contained. How meaningful are those domestic recoveries when we do not have open borders for tourism, for the services sector, to really be able to recover . Sarah it is a good point. To some extent, it does matter because domestic demand is crucial for all the economy, but you are right. The reliance on global trade is an important part of what drives the outlook overall and is not going to be possible for there to be a complete recovery in any open economy before the rest of the world. Is able to get back to normal. New zealand is a really good example of that. There economy, they will see it removed in our domestic restrictions. They managed to eliminate the virus. It was such an important part of their economy. It will be impossible for them to recover completely. Yes, that doesnt really matter. Having said that, there are going to be differences in terms of how economies come through. Some will be more impacted than others and that is what we are going to see as the data comes through over the next few months. Shery a faster recovery means these economies will have to sooner thanmulus others. Given how much they poured in in order to support their economies, how challenging will this be . Sarah navigating that sort of balance between the fiscal constraints and how you pay for the Additional Support, against the sort of inevitable slowdown at least that you will get once that support is removed is going to be the key for governments over the next few months as they move through that recovery phase. Cannot maintain these programs indefinitely. They do have to be withdrawn at some point. When they are withdrawn, there is a risk that if it happens too early, there is a significant uptick in job losses. At the very least, it leads to falling income flows for households. And this is going to be very, very difficult. A number of politicians, we have been saying for some time that shutting down the economies, that was in some regards the easy part, and the hard part is going to be navigating the recovery and getting the timing right. Inevitably, not all governments are going to get it right. It is almost impossible to expect that. They will have to be nimble in response to conditions quickly. If they see that things have gone too soon, and perhaps they will have to provide Additional Support as needed. That is the challenge. It is going to be one that will run for quite some time. This is going to be something that is resolved not in three months but 12, 18, even 24 month process. Shery we do get Monetary Policy decisions this week. We are starting in china with the announcement of the lpr, and of course, we do have new zealand, thailand, as well as the philippines. They are all expected to hold steady at this point. Does it make sense to leave and preserve sums policy space some policy space right now . Sarah in general, we think that the Philippines Central Bank will maybe go on against the market. In terms of leaving something in the back pocket, this is not something Central Banks usually do. You want to fight the problem youre facing right now, and its no good leaving policy on the table, as it were, if it means in the current environment, that that worsens the size of the downturn they are looking at. We have obviously seen from a number of Central Banks they have gone some way. They have usually gone to the edge of traditional Monetary Policy in terms of Interest Rate cut and the majority of cases have implemented nontraditional policy in addition to that and we are starting to see some of the emerging market Central Banks looked to be the same, to go all the way in terms of where monetary Interest Rate cuts can take them and perhaps even beyond. It does not make a lot of sense to leave them on the table. They are looking at a substantial contraction output that Monetary Policy could at the very least help to soften the blow and coverage. We would expect that Central Banks will respond to the maximum ability in their current environment. It is the policy as much as possible to support activity. Shery sarah hunter, thank you very much for joining us today with your insights. More on the outlook for china. Economist joins us in the next hour plus we will hear from our next guest. A resurgence of coronavirus cases may be under the way underway in the u. S. With record new cases in the sunbelt. A low turnout at trumps tulsa rally as he tries to reset his reelection campaign. We will tell you why. This is bloomberg. Haidi a quick check of the latest business flash headlines. The collapse of car demand means daimler is preparing to cut more jobs. Chlamydia say positions will go by 2025 with the outsourcing of i. T. And r d services. In november, daimler announced an initial 10,000 job losses by 2020 with spending on personnel set to fall more than 1. 5 billion. Daimler had almost 300,000 staff at the end of last year. Theendo is retreating from 77 billion dollar mobile gaming arena after disappointing results deflated its ambitions. Two years ago, smartphone gains would be a billiondollar business with growth potential. Last month, he said he is not looking to release many new mobile applications and will now focus on the switch council instead. Bloombergs told softbanks chip unit ahead of its chinese venture after he set up an investing firm that would compete with its own business in the mainland. Sources say he launched authentec to invest in companies that use technology. It is a common move for chip firms to help fledgling companies. Arm limited and its investor already had such a resurgence of coronavirus cases may be underway in the United States with record numbers of new infections across the sunbelt over the weekend. That news comes as President Trumps rally in tulsa saw crowds well short of expectations as they tried to reboot a campaign shadowed by tumult in the white house and nationally. Pres. Trump despite the fact aat we i have done phenomenal job with it, i shut down the United States to very people infected but all from china, in late january, which is much earlier than other people would have done it, if they would have done it at all. I said hundreds i saved hundreds of thousands of live. S. Shery lets get started with coronavirus cases really continuing to rise in california, arizona, and other states. That is exactly right. In some places, like california, you can say the state is in its second wave of infections. It sort of peaked earlier in the spring. Back to the come sunbelt. Cases are rising to levels we have never seen before. It really seems like some of the state that reopened their economies early have taken it on andchin this time around that would include oklahoma, where trump was last night. Also florida, which has been very aggressive in the opening. Its government is a victim by of trump. We are seeing increased hospitalizations in some states. It is not just more testing, more cases being found. One thing we saw on friday, apple announcing they were Closing Stores across four states that had only reopened a few weeks ago. Its definitely having an impact on retail and just on the general mood i think in the United States because a lot of people, including the trump administration, have kind of written this off and want to move on. It is not over. In the meantime, he may drop out of his attempt to become prosecutor. This comes after some controversy and some of the hurdles are looking fairly insurmountable at this point. Ros a really interesting story that ran from friday night into today. It seems like jay clayton has basically been a Corporate Lawyer his whole career and suddenly became interested in becoming that prosecutor for the Southern District of new york, and he got the attorney general and may be President Trump on board with that. From thepushback person he sought to replace and some democrats in the se