Prices double the last couple of months. We have seen demand picking up. Taking a look at other markets, the focus is on chinese equities. They have been fluctuating between gains and losses. The shanghai cob is lower. They are largely flat after what we saw on friday. State funds trimming their holdings. There was the big news of the haltingetf in china trading until 10 30 a. M. This morning. They are saying the warning of thiss involved here tracks some of the largest stocks in shanghai. Take a look at singapore. This is reopening after the singapore election. Retaining the firm grip on power. When he 89 of seats. That is considered the weakest showing ever. Good. Be for stocks some analysts say a de a diverse up three quarters of 1 . We are taking a look at bonds and currencies. We watched the dollar posting the second weekly loss. It comes toing when the belly of the curve for u. S. Treasuries. Reversing some of the gains after we sell yields touch a record low on friday. Lower by one basis point. 10 year yield elevated. Your offshore renminbi, we are around the seven handle. Goldman reviving their 12 month target to 6. 7. They are sitting theyre saying the fundamentals a little bit better. You are looking at the yen as well. Some strength going into it at a two week high. Lets dig deeper and get more on the market with mark cranfield. Markets seem to be shrugging off virus cases. Never mind we are looking at 200,000 cases a day. Mark indeed. It is more to do with lockdowns and the fact they are not really happening and the threshold for them to restart is so high it is unlikely. If this friction between Economic Growth in the hopes it is going to gain traction around the world with the fact that people are willing to live with a certain amount of virus risk. What we saw in april and may where european countries, some parts of asia, shut down the whole country. It was very damaging for the economy. The chance of that happening again is remote. We are seeing specific lockdowns in parts of florida, texas and california reintroducing some tightening measures. It is not going to be across the whole country. That is the trend across the world. No one has the appetite for shutting down the whole economy. Business will continue for some extent. Here will be a place that is impacted if you look at melbourne, australia, there will be some hardship for the economy. That is only one part of the country. That is the kind of outlook equities are thinking about. Life can get on to some extent. It may not be as vibrant as 2019, but there is business to be done. People can make money. We just have to live with the virus as we can. Yvonne a big week for chinese data. The gdp numbers coming out later this week. This rally we have seen on the mainland seems to be pressing the pause button for now. Do you see this as a pause or the start of some type of correction . Mark it is a healthy sign that if you have the authorities trying to cool things down, this early in the equity rally, that has to be a good sign. A lot of people are making comparisons to this incredible stocks really we saw in 2014 into 2015, which eventually reversed very badly and was an ugly situation for chinese markets. Much earlier we are getting some noises from the authorities in china. Stock rallies are a good thing, but do. Not get carried away as we have reported, we have seen signs of major state related investors have been reducing their exposure last week. This is a much better sign for markets. We do not want markets to go up extraordinarily in one direction. That drags in too much speculative money. We are people are trying to be more realistic about it. The underlying signs, the gdp is going to be better. The highfrequency data is showing the chinese economy is opening up pretty well. It is way ahead of other countries. That does not justify stocks going up every day, but when you combine the improvement in the data and the willingness of authorities to get involved more quickly to call down the hot speculation, that is a much more healthy environment for the sawty market than what we when everything crashed in 2015. Haslinda we are at the start of the u. S. Earnings season. Which earnings are key for broad market . Mark of course there is going to be a lot of attention on the big tech stocks. They have driven so much of the turnaround in markets in the u. S. And globally over the past few weeks. It could be the financial sector, which gives us more information. There is a lot of interest in how banks manage to do with their trading environment. In the Second Quarter, high volatility across various security markets. People will be hoping the wall street banks made good use of the volatility to improve their earnings. Conversely, the major banks will be able to give us a read on what is happening in the real economy. They will see the potential risks if there are any bad loans they need to provision for. Banks will be able to tell people a lot more about what they are seeing happening in the underlying economy, not just in the tech sector. I will be Important Information that will be Important Information. People will be looking to the commercial sector as well to see if there any signs this work from home trend we are seeing, does that have any impact on the commercial lending space . Are we seeing Companies Giving back some of the office space, which they had earlier in the year . These are some of the things that will be in there. With the fact that so Many Companies did not want to give outlooks, it has been hard for analysts to get a read on what has been happening. It is much more interesting than usual. Yvonne well be focusing on that. Thank you. Mark cranfield. If you want to check out mliv for their commentary. Coronavirus kate is in the u. S. Rose to three and a quarter million with almost 56,000 new infections. Florida reported the biggest daily rise of any state since the pandemic struck. Effortss surge exceeds set in new york and california. Global infections are approaching 13 million with 565,000. S above new york city has reached a virus milestone. No new confirmed deaths for the First Time Since the infection peaked. Of arks the possible end four month stretch. The confirmed daily death toll 597its height on april 7 at with another 216 people likely to have died from the virus that they despite no positive test. Indiaions are surging in with almost 29,000 new cases reported on sunday including 550 deaths. It pushed india into third place in the global tally behind the United States and brazil. Ywoodases include a boll star and his son. India has reported 21,000 virus cases a day from us two weeks. Won 89 es ruling party of the vote in the election. It was overshadowed by criticism of the governments response to the coronavirus. The main opposition claimed 10 of the 93 seats available. The election was held during the worst economic slump on record. This was not a feelgood election but one where people are facing real problems and expect more to come. It is not as strong a mandate as i hoped but it is a good mandate. 61 is very respectable in these circumstances. Yvonne still ahead, we get the take for bonds. Markets as for the the threat of the resurgence rises. Newinda how beijings security law may affect freedom in hong kong. This is bloomberg. Yvonne hundreds of thousands of hong kong residents voted in hong kongs democratic primaries define concerns about social distancing and the security law. Hong kong has been chipping away at free speech. The next director is the next guest is director of media law. She also taught ethics at the university of hong kong and joins us from chicago. Thank you for joining us. Kaluz how you think media freedoms believe all of under this National Security legislation freedoms will evolve under this National Security distillation. Weekshas been almost two since this new law has been implement it. We still do not know. We are waiting for the details of what might be happening. Are these know, there four new criminal offenses that have been created. Succession, subversion, terrorism, collusion with foreign entities. That will play out. We do know this will have a major implication for press freedom in hong kong because of journalists what can cover and who they can talk to. The primary goal is to put some kind of control over the prodemocracy marches and the election. The media is caught up in that. It will be impactful for foreign media as well. Article 27 of the basic law is where we find that press freedoms are enshrined in the committee constitution. How do you see that squaring with the new legislation . Do you think that hong kong is going to turn into more of the mainland model or could it be a hybrid where some sort of censorship is policed selectively . I think we have to wait and see because the law is written the way the law is written implies there will be a hybrid. There is article four that says they will respect human rights. It will respect the basic law. In the end, when push comes to shove, certainly, the new law will supersede any existing hong kong law. There is this hope that as these cases come out, that will get that we will get more clarity. There is the hope that hong kong courts, which have a good reputation for independence will continue to do so. Not necessarily restrictive in how they try to uphold will of low and basic will rentables, not wait until china gives some type of direction. Theinda you said before courageous local journalists are key to moving ahead. There is a fine line between courageous and putting yourself at risk of being sent behind bars. How do you suggest journalists navigate this tricky environment . They have to continue doing what they are going to do. In other words, journalists have shown over the years both projournalists that operate as well display repercussions, they continue to do the reporting. There has been a lot of there have been a lot of conflicts with the way police have been handling violence against journalists. They have been able to persevere about that persevere around that. Until we know more details, they will have to continue. They have shown they will continue to report vigorously about what is happening in hong kong and wait to see what kind of prosecutions come out that might give them boundaries. Continue as will they have shown in their coverage of the election the last two days. You have not seen them pulling back from their coverage. Haslinda what constitutes collusion with Foreign Forces to endanger National Security . I am wondering if it is ok for us to report that the u. S. Is criticizing beijings government for impingement of freedom. That is the big question. That is the question we do not know how it is defined. There are some indications collusion could be in the publication of or providing support. One of the things you have to look at is, whether someone talks to a foreign journalist, how journalists are covering these stories. That is the questions the foreign media will have to raise. The big issue and concern is not so much we will know more when there are further cases that i worked their way through the court that are worked through the court. In terms of how it pushes a different agenda. Collusion with Foreign Forces is also a message to those outside hong kong about what to report about, what to write about. That is beginning to have repercussions around the world. What do you think the response from the Media Companies is going to be . A target on our tha. Rthk. How can the news industry better prepare themselves . Circumstances with rthk as a public broadcaster. It always towed the line in being very vigorous in coverage. They continue to do some really good reporting. Certainly now, there is that type of control. That there will continue to be vigorous and aggressive journalism and reporting until they know what these boundaries are. Otherwise, what you have is a situation for selfcensorship. There might be some selfcensorship in the days and weeks to come. Because things are so undefined you mentioned, what is collusion . What is a state secret . One of the provisions says you cannot provide state secrets to a foreign entity. What is a state secret . In china, it is not defined. State secrets can be anything from financial data, a school exam result, things that are already publicly available on the internet and elsewhere. I think because there is this uncertainty about it, journalists have to move forward and continue to report. They already have some experience. Reporters in there are reporters in china already. They have been working under the parameters of that environment. They are still doing some vigorous reporting as well. Haslinda thank you so much for the insight today. The director of media law and policy initiatives at northwestern university. Still to come, unhinged from reality. That is the view of one bigname investor when it comes to the global stock market surge. Our conversation with mike nova kretz is next. This is bloomberg. Yvonne long time money manager mike nova kretz says we are clearly in a text field bubble and small investors should get out before it bursts. He told us why he things markets are unhinged from reality. This is a bubble. Certainly in the tech space. I remember one Alan Greenspan issued those words. We are unhinged from reality. The economy is slowing down. We are lurching in and out of covid. Tech market makes new highs every day. That is a classic speculative bubble. Lots of liquidity is buying its way into the story stocks. Just if it is zoom or tesla or beyond meat whatever stock has a story, everyone is rushing into, that gets me worried. What does that mean for the Retail Investor . We have done a lot of work on the momandpop investors. Are you concerned they may get burnt here at some point . Mike this reminds me a lot of the cryptocurrency market in 2017 where we had this crazy rally when bitcoin went from 8000 to 20,000. Lots of people bought in and it collapsed. These stocks are not like crypto. They are real companies. They are getting valued ahead of what i think reality will be. I think there will be a moment. Centralbank action or bighis case, we had a election coming up. Joe biden he wins. Lets assume he wins for a second because i think he will. Corporate taxes are raised. High income taxes are raised. That will be good for the market. We are still in this euphoric stage of the market going up every day. Fueled by tons of liquidity. I want to talk about that idea of joe biden. Just yesterday, he was saying he does not believe shareholder capitalism can continue. Going to bakeors in that thinking . Mike wall street was already moving that way. Paul jones has a thing called just capital. Isry fink is on the train as marc andreessen. Tons of people have been living that way and saying, we need multistate corporate capitalism. Just shareholder only is not working. The rich and poor gap is getting to wide. It is leaving the environment behind. There is this a in esg funds. Almost every fund wants to be in esg fund. I do think joe biden is moving to wall street. Wall street was already moving there. I do not think that is a concern for the market as much as the tax code. I want to go back for a second because you were talking about the skyhigh tech valuations. What is that mean in terms of what does that mean in terms of how you are investing . A friend of mine said, in markets like this, you want to be on an airplane on the seat closest to the exit. I missed this tech move. I was smart enough to not keep fighting it. I have not been participating. I have a lot of friends making a lot more money than i am these days. I have a whole bunch of gold and bitcoin. That is also participating in this liquidity driven bubble. They will be longerterm winners in the liquidity driven bubble. Manianot catching this you are seeing in the storied stocks. Haslinda galaxy Investment Partner mike novogratz. This is bloomberg. Tend to 10 29 in hong kong and new york. We begin with oil. It fell in asia trading. It may outline plans to scale back output curves that have helped stabilize the market. The opec plugs group will amid mounting expectation they will start to relax restrictions. We were told top russian producers will prepare to raise output next month. The u. K. Is to spend almost 900 million on new border infrastructure. The cabinet insists everything will be in place for the final split despite london and brussels failing to agree on terms. A leak from the trade secretary highlights concerns on border plans. A challenge from the world trade organization. Exit polls in poland sure the president ial election is too close to call with both candidates claiming victory. The vote pitched pitted a initialtive pundit with estimates giving both 50 within the margin of error. Official results may be released later today or tuesday. Carlos ghosn says he has hoping those flee japan last year but is refusing to offer details about his escape. Two citizens accused of facilitating the flight. A tv company, he declines he paid money to a company linked to one of the accused. 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. I am Karina Mitchell. This is bloomberg. Haslinda looking at the markets, asia is starting off the week in positive territory, adding to two consecutive weeks of gains. There are risks. Virus cases rising globally. New cases, over 200,000 daily. The index up 1 . Right now, all sectors on the index in positive territory, led by industrials. Futures pointed to a higher open after the solid close on friday. The s p outpacing the nasdaq for the First Time Since late june. Investors support looking to the start of earnings season for further clues on how companies are faring amid this pandemic. Futures surging 3 . Possibly an indication of activity picking up. Flip the page, take a look at where we are in terms of those particular indexes. We are keeping an eye on that benchmark. Up by 1 . 2. 6 , the most since march. It of course has been in the spotlight, and unprecedented rally that has outpaced global counterparts. They have been wanting to put a lid on it. Morning about the dangers of a potential equities bubble. The china surging by 2 . Hsbc leading the advance. Its 50 two week high back in january and pretty much flat after the elections on friday. What you are seeing in the shanghai futures as well. They are searching in the mainland here today. It is up close to 6 right now. Aluminum also has been gaining. Iron ore, those futures are up 4 . When it comes to copper, the market really focusing on not just the chinese demand that seems to be picking