Restrictions in new york city is boosting education about masks and social distancing. U. S. And china ramping up tensions. Washington rejects beijings claims to the South China Sea and top senators are facing mainland sanctions. Shery lets get you started with a quick check of how the markets are trading. U. S. Futures opening higher, gaining one quarter percent after stocks fell in the regular session. Sharply higher throughout most of the day and then we saw a bearish reversal in the afternoon. Marcus dealt a double whammy with data showing that virus cases surged in california, as they that makes up 15 of u. S. Gdp. Not to mention escalating tensions between the u. S. And china. The u. S. Denounced chinas claims to the South China Sea. The s p 500 at one point hit the highest level since march before falling in the afternoon. Led by tech and communication stocks. The nasdaq composite hit another record high. At the end of the session, the biggest fall in more than two weeks. Take a look at what oil is doing. Continues to fall and below the 40 mark. This is ahead of the opecplus meeting this week. The expectation is the group could announce plans to start tapering those historic production cuts that we have seen of late. Lets see how things are shaping up for the asian markets. Here is Sophie Kamaruddin in hong kong. Wellington, kiwi stocks modestly extend gains, at a one third of 1 . We could be seeing asian stocks potentially lower with aussie futures falling late in the session. Copper miners after the metal goes to a twoyear high on chile supply. In japan, a summer lull has descended as volumes wain. Earnings could pose a substantial risk for an equity collapse. From japan today, we will get japanese industrial output. Singapore is forecast to report a big dent in singapore gdp growth. Chinese trade data will rightly show a slower contraction in june. Offshore yuan trading ahead of that. A 50 futures have settled lower after gains that pushed china to a november high. Investors are watching for total mainland stock values to hit 10 trillion possibly by this week. Politics are in focus. Virus measures will be imposed on the city from wednesday. Hang seng futures settling higher head of that. We will face reaction to news by a proposal by trump advisors to undermine the hong kong dollar. That has been dropped for a lack of support. We have seen little support amid the speculation. Four points, but still there a fourmonth low. Haidi yes, we will stay with this story of escalating tensions between washington and beijing. The u. S. Is now rejecting chinas expansive claims in the South China Sea that versus an earlier policy of not taking sides. Secretary of state mike pompeo accused beijing of a campaign of bullying and says its territorial claims are unlawful. Nick joins us from d. C. You have covered your story during this time in beijing. Is it surprising to see a reversal in the position . Nick i would say not too surprising. This is a move the administration can make without essentially incurring any cost itself, but also keeping up the drumbeat of criticism and pressure on beijing. So what you are seeing this they are saying we are not going to recognize Chinese Maritime claims. China basically controls all of the South China Sea but what the u. S. Is not doing is entering into or taking sides on disputes over land. So, islands and things like that that are the heart of a lot of these disputes. It is this part of titfortat we have seen between the u. S. And china over the last few weeks. Shery talking about that, we are seeing china announcing sanctions against u. S. Officials, including senators marco rubio and ted cruz. How much of this is symbolic versus practically significant here . Nick for ted cruz or marco rubio, it is probably pretty symbolic. They are not likely going to be traveling to china anytime soon. But, what critics are concerned about is whether it just closes window or creates really causes the atmosphere for constructive talks, to find an offramp to get out of this tension. As one official said to me, it is almost like each side is punching each other in the nose over and over again. It is unclear how you get to a situation where you have the worlds two biggest economies sitting down and saying, ok, lets just resolve our differences and figure this out. It Trump Administration says believes that is correcting years of flawed u. S. Policy and what it believes is going soft on china so that is not likely to change anytime soon. Haidi i suppose we can take this other part of the chinau. S. Story as some sort of deescalation or good news. The story of the potential sabotage of the hong kong dollar and the way it is getting back to beijing for its National Security law. That proposal has not garnered much support. Nick that is right. This is something that members last week it was primarily being discussed in the state department which really interestingly has become a real hawkishf very firm, action towards china and used towards china. But when they ran that up against the Treasury Department and some of the president s economic advisers, the feeling, i think, has been Something Like that could risk blowing up in the face of the United States, particularly in a time of economic weakness globally and that is not something they want to do right now. Our Foreign Policy reporter nick wadhams in. D. C. An alert on the bloomberg. Japans public broadcaster nhk saying the country is allowing entry of u. S. And european corporate executives. Remember, we do have travel restrictions on going because of the pandemic. We have seen tokyo really become a new hotspot with more than 200 cases reported daily for the past five days. The last count was below 100, which seems good news that this coronavirus surge was really not been limited to those nightclubs and hotspots. Japan now allowing entry of u. S. And european corporate executives, according to nhk. Coming up next, stocks with the rising tensions as we enter a turbulent season. Anne berry tells us what kind of guidance she is looking for. Plus, negative sentiment will be the overarching theme for bank results but right spots remain. This is bloomberg. To be the u. S. Continues the focus of the coronavirus pandemic with california now closing Indoor Dining and bars, and two leading School District going into remote education only despite President Trumps call for classrooms to reopen. New york city will educate people on the importance of Wearing Masks and maintaining social distancing. At 15 virus cases million. Spiking virus numbers are forcing hong kong to reimpose Strict Health measures, including the closure of bars and gyms for a week and fines for anyone refusing to wear a mask. Social gatherings are to be limited to just four people and amusement parks including disneyland will shut their doors for seven days. Hong kong reported 41 new coronavirus cases on monday as well as eight deaths. The u. S. Has posted its worst ever budget deficit thats federal spending more than triples in june from a year earlier to mitigate the fallout from the virus. 864ap widened to billion. The deficit in the first nine months of the current fiscal year now totals 2. 7 trillion. Chinese markets are approaching a general valuation of 10 trillion, a level last seen before the stock crash of 2015. The recent rally in shenzhen and kai has reached short of the magic number. State media is reflecting concern, citing the importance of a healthy stock market. Global news 20 were hours a day on air and on bloomberg quicktake, powered by more than 2700 journalists and analysts. This is bloomberg. Haidi thank you. Walmart has kept its 11,000 Worldwide Stores open amid the virus pandemic and expect to do so despite a resurgence in cases. Doug macmillan told bloomberg what kind of impact the crisis is having on business. Food andsell consumables and things people really needed in this crisis. Our form of retail as deemed as essential. We have stayed open mostly throughout the crisis, selling food, consumables and other things people need in stores and online. You are right, you are alluding to the fact ecommerce has grown during this time and that has been the case with us. David for everybody was watching, how many total stores does walmart have . Doug around the world, 11,484. Here in the u. S. , weve got around 4700 stores that are walnart Super Centers and neighborhood markets. We have another 600 sams clubs in the u. S. David 2. 5 million associates. Your revenue is about 500 billion or so a year . Doug a little more. David ok. Do you accept a hold onto all these employees or do you think there will be a decline in sales after the covid19 situation . Doug as we started into this created a leave policy for our associates who needed to stay home. If they had a Family Member to take care of or some kind of concern, we have this threetiered leave policy and hundreds of thousands of our associates that needed to or wanted to stay home have. We had a need for a lot of , serveto run the stores as it relates to ecommerce and respond to the demand that has gone up. About 60 of the 400,000 we have hired since the middle of march are temporary in nature. We will retain a big portion of them but not all of them. David your biggest competitor in the Online Business is obviously amazon, i assume. Doug it is. Here in the u. S. David what have you learned from amazon . Did you teach you third and things in overtly that you would make your Online Business better . Or have you done some things you wish they had done . Doug whether it is them or others, i think the goal is to learn from them and apply what should be applied. Definitely the customer has spoken. They want convenience and a broad assortment and timely delivery. In some expects, we are trying to do the same thing they are trying to do. In other respects, we have a set of assets that are unique to walmart and we are trying to put them to work. Maybe one of the big differences as it relates to a digital view or ecommerce view is how we are using our stores. The fact that you can go on your app and purchase items or reorder items you bought before and swing by the store later that day and open up the trunk and somebody will drop it in for you is superefficient. Americans in particular really like that service. There are unique aspects to our strategy and i think the stores underpin most of those. David it has rumored you will announce some type of prime equivalent for walmart, walmart plus, i think it is called. Is that going to be announced sometime soon or you cannot say . Doug we have a membership we have been testing called delivery unlimited. The speculation you are referring to is we will launch a more robust membership called walmart plus. The common theme, whether it is delivery unlimited or walmart plus in the future, is that the Grocery Consumer delivery, which could include backtoschool items or even apparel items, done in a really fast manner as part of a Membership Program is something we think is going to be compelling for people. Based on the success we have had with this pilot of delivery unlimited, we have some confidence that people do want a membership from us. When you think about it, there is a delivery cost, taking in order and delivering in order to someones home. What the membership is fundamentally in the beginning is an ability to buy in bulk those deliveries at a discount in the form of an annual fee. That is the form we have taken. The s p 500 briefly touched the highest level since march before markets stumbled in afternoon trading. Joining us to discuss market volatility as we dive into earnings season is ann berry. Always great having you with us. When it comes to the Market Action today, we had a double whammy. Whether it was the virus resurgence or escalating u. S. China trade tensions. So far, these headlines dont seem to have really hampered the rally we have seen. Are things going to change from now on given we will have more volatility during earnings season . Ann thats a great question. I think if you look back earlier today, we saw volatility in the positive direction because there was news vaccines could accelerate as we get approval process from the fda. What we are getting to now is a moment in time where the market is going to have to step back and take a much more private market approach and try to drown out more of the shortterm noise and get back to longerterm specular fundamentals like what we heard from walmart. An increase in ecommerce. Those underlying business fundamentals are going to be important in the coming weeks. Shery you mentioned walmart, actuallyny you ashle like. Tell us why you are confident about walmart and other Companies Like target . Ann i think over a long period of time, i have always thought the amazon model was one that was going to be very much at the forefront of reflecting increasing Consumer Trust and faith in purchasing online and amazon has had tremendous. What walmart has done through this crisis in remitting open has proven stability, supply chain certainty and able to serve the consumer through a very unsettling period. I think that will translate into brand loyalty with walmart plus or whatever subscription model. I think it will be positive in the same way target has proven it can supply the store experience combined with sameday delivery. Do you worry about where valuations are, particularly when it comes to ecommerce stocks at the moment . Is it really no other choice versus what the alternative is, particularly over the next six to 12 months . Ann thats a great question. I have seen this debate on whether these Consumer Staples going online, such as the grocery or bigbox retailers that are surviving become the new safety stock. I think in terms of stability, cash flow generation, they are proven names. I can continue to see why they would be appealing to investors. Assign to much do you the idea that we will be seeing that stronger rotation taking place and what would be the catalyst he would need to see for that to happen in more of an enduring way than we have seen in the past few months . Ann i think in terms of insurance, that is going to be an issue for a long time. Specific to what the Consumer Behavior is. I think one of the big issues this year is the fact that more than one third of the s p 500 has actually removed their Earnings Guidance for 2020. I think what we are seeing at the moment is a period of blindness as people try to understand the real impact taking place. As a result, theres a much more responsiveness to actual earnings and to the release of data around actual, historical performances in the recent quarter more than a forwardlooking approach. I think these catalysts are going to be much more reactive than perhaps we have seen in the past as a result of the absence of guidance. Berry joining us with her investment insight. We will get plenty more analysis in the coming hours. Tim lowe will be with us at noon on sydney, 10 00 a. M. From hong kong. Coming up next, california shuts down Indoor Dining and bars as the state sees record hospitalizations. We will have the latest on the pandemic next. This is bloomberg. The coronavirus continues to dominate Market Sentiment and headlines. Level cases topping 13 million. The United States becomes the focus of the pandemic with california shutting down all Indoor Dining and school turning to Remote Learning despite President Trumps orders to reopen. In australia, New South Wales is set to tighten restrictions around the number of people around in pubs. We are setting to hear in a press conference today. Lets get the latest from our senior medical reporter michelle cortez. These Global Trends we are seeing, the easing of restrictions, does that play into the worrying narrative for the economy that as long as the virus is still around in some form, that some level of social distancing needs to happen and there is no kind of real return to normal for these venues . Michelle yes, we are hearing that from Numerous Public Health officials and now we are starting to hearing from politicians as well until we have a vaccine and a successful vaccine, there is going to need to be these other steps that are taken. Social distancing, wearing a mask, and most importantly, doing things like closing bars, restricting Indoor Dining, and not letting kids attend school in person. That is happening across the globe. Shery especially in hong kong where you actually have to pay a fine if you are not wearing a mask in public transportation. Michelle absolutely. Hong kong really is an example of the difference between whats happening in certain areas of the u. S. And in other places. Hong kong hit a Record Number of cases today. They had 41. So because of that surge, 41, they had opened their disneyland, they are closing it again. They are not allowing people to ander more than four everyone has the wear a mask and they are enforcing that. Compare that to florida which had 15,000 cases diagnosed, and this weekend, they opened Magic Kingdom and the animal kingdom. We are seeing absolutely dramatically different responses to the virus. Shery pretty peculiar time to open those theme parks. Michelle cortez, thank you. Our senior medical reporter. A quick check of the latest business headlines. Apple is asking retail staff to work remotely again as covid19 cases spike in the u. S