The governor of texas warns of a massive outbreak. The imf adds to the gloom, further lowering its Growth Outlook, saying the pandemic will cause even more damage than first feared. Haidi that lead really playing into the downside we are expecting in the asian market session. Lets get it over to Sophie Kamaruddin in hong kong for a look at what we are expecting. Board, pulling up the asian futures pointing to losses of 1 or more amid the imf. Warnings of a deeper recession with japan and the Growth Outlook taking a hit. 1. 2 in theup by red this morning. A down day with trade disruptions back on the table alongside virus risks. Flipping the board, we are seeing bonds on the advance. Aussie tenure yields off by four basis points. Treasury futures to the upside after the overnight flattening we saw in cash yields as the bond market is signaling a more cautious outlook than we have seen in stocks. Check out the dollar extending gains against g10 peers with increasing u. S. Trade tensions with the rest of the world seen as a shortterm positive for the greenback and the pop of the dollar has dented the appeal for gold. Futures altering and a rise toward 1800. Pulling up the chart on the terminal, gold futures have broken amount of the recent range, just shy of levels lasting until the end of 2011 when gold hit a record high. Holy and set for the best quarter since 2016 and looking ahead, Goldman Sachs forecasting 2000 an ounce. 12 months with u. S. Interest rates negative. That bodes well for gold. Shery shery those virus fears seeing u. S. Stocks plunge in the worst day in two weeks with every sector in the s p 500 closing. Energy, financials, and industrials were the worst hit, all falling more than 3 . Gina martinis adams. Great to have you with us. We had the very gloomy forecast coming from the imf downgrading their 2020 economic forecasts. Could we finally seed the financial see the Financial Markets come in line with reality . We are at least consolidating gains of the strength. Back in late may, we finally surpassed our 200 Day Moving Average and that usually represents a critical threshold at which stock gains start to slow. Past that, move somewhere between 2 and 6 over the subsequent six months after the obvious double digit pace of gains over the last three months, we should expect stocks to enter a chop your period general. Period in this has largely gone unnoticed but there is a clear correlation between the equity market and the Federal Reserve Balance Sheet, not just in the last couple of months, but in the last several years. When the Balance Sheets stopped rising, it took wind out of the sails of the value stocks. The Financial Sector was one of the big your today. The other laggards also value stocks, so we have seen a little bit of rotation out of value, back into sort of higher momentum, low volatility, kind of stocks, which have lagged the recovery process. I would argue that the third factor that has really changed over the last several weeks is simply that Market Participants are now looking for new sources of improvement in the outlook. What we have seen is stocks have rerated in line with fiscaldinary easing and as well as Monetary Policy and are now looking for improvement tothe outlook with respect economic conditions. We have seen improvement without a doubt. Leading indicators such as initial claims are down. Market survey of Manufacturing Activity is up. We are starting to see some recovery prospects around the corner. We could be in for a somewhat choppy period as we sort of work through how strong those prospects of recovery are when we are looking into 2021. Haidi we have seen chinese equities almost perform as a defensive anchor in that space. This may not last. Way when i think about the that chinese equities have our globaln we rank scorecard, we ranked 13 different regions around the world for their relative prospects and china is among the top three. It is all on the global scorecard with the u. S. In the fourth position. That is really a defensive read coming out of the scorecard, suggesting areas with strongest price momentum as well as with the most stable Earnings Growth prospects given this is the area of the world that experienced the first cobit infections and has largely experienced some thing of a second wave or at least gone through a process of experiencing some reescalation in infections and had to how to contend with that economically. In this area is serving as a safe haven. China stocks are considered to be emerging market equities. They are not supposed to trade my developed market stocks. What we have noticed over the last several years is this asset class, this group of the equity market, is starting to trade more in line with developed markets and actually has the lowest data among regions, so that should work as a defensive safe haven in the near term. The risk is, near term versus long term. If we are looking at six months or 12 months from now and economies are starting to truly recover and we are starting to dig our way out of this recession, you might be the defense safe haven start to lag and that is what we wanted to call him out with this report we put out over the last couple of days. Yes, these are defensive safe havens. Investors are migrating to china in particular. An area of the world with limited risk. Stocks in china have powered right through the domestic shutdowns, the beijing shutdowns reflecting an escalation in infection rates there. That probably endures for the short term. To be onrm, you want guard for an improvement in economic momentum, shifting that leadership position into a laggard position simply because it has operated at such a defensive safe haven. , alwaysina martin adams great to have you on with us. Coming up next on daybreak asia , we get more on the resurgence. New daily highs reported in florida, california, and texas. The Lone Star State paying a massive outbreak is sweeping through. More big names at our bloomberg invest cemetery conversations with bridgewaters representative and brookfields representative. This is bloomberg. Shery you are watching daybreak asia. The International Monetary fund is increasingly pessimistic about the coronavirus, seeing a deeper recession and slower recovery than projected just two months ago. The fund now expects global gdp to shrink almost 5 this year. More than the 3 the 3 decline seen in april with growth and slightly in 2021. It fears the hit to the World Economy will tal 12 trillion. It will generate basically zero growth in 2021. As compared to 5. 4 growth in 2021, which we are projecting. Lshapedhe classic nonrecovery, and that would be a really dire outcome. Getting closer to Great Depression levels than we already are. Shery President Trump says he will not allow Police Department to be even more weekend amid the amid the black lives matter campaign. Democrats blocked the Police Reform bill proposed by republicans. They say the legislation falls short of the widespread changes needed in the killing of george floyd and other black victims. The democrats are scaling back their convention in august, telling state delegates to stay away from the gathering. Joe biden will accept the democrat nomination in milwaukee but it is not clear how many people will be there to see it. The move is in stark contrast to President Trump campaign, which moves the Republican Convention to jacksonville, florida, to get around social distancing rules. Haidi coronavirus cases are spiking across the United States. Florida and california reporting daily records. Texas warning of a massive outbreak that could overwhelm hospitals. Lets get more details from max neeson. We were talking just yesterday about the idea of eliminating the virus versus flattening the curve and it seems like in places like houston, even flattening the curve is no longer happening with them saying their intensive care facilities and bed are almost beds are almost at capacity. Max that is an area of particular concern and the thing to keep in mind is that, you know, our experience with acute outbreaks in new york and other places, it is going to be, even if significant actions are taken now, sometime before they actually show up in the data, because it takes time to reap what test. It takes time for infections to get serious enough to require hospitalization. And then there is a further lag once someone has an infection severe enough to get them into the hospital, it often takes a lot of time for them to get out, so beds do not open up that rapidly. It takes a long time to turn around and outbreak, and you know, its going to be a bit before any actions to the extent that they are being taken, will actually be able to bend the curve and move houston and other areas back onto the right downward trajectory. Some we are hearing from states that they may be quarantining people coming from hot spots for 14 days. How much will this help when it comes to the importing virus cases . We have seen the European Union trying to ban injury from americans. We are talking entry from americans. Max this is going to be quite tricky from an enforcement perspective. There are certain things you can in,for people that fly advise them to quarantine. Follow with them. It is something that will be really difficult to enforce. They will make an effort and it is not a bad idea to give this advice in terms of removing another potential vector of infection for places that have successfully tamped down the spread of the virus, but i am not so sure that it is going to unlessendously effective it is really aggressively policed, which i am not sure is really the plan. A worthwhile intervention but one that will not make a huge difference, i think. They max neeson with latest on the coronavirus. Princess as bob the coronavirus could last for as much as two years. This is bloomberg. Shery the Worlds Largest hedge fund is sticking to its gloomy view on the virus impact. Bridgewater associates says the impact may last 18 to 24 months, complicate a monetary and fiscal policy efforts to bolster the economy. Earlier, bob prince told us why he thinks the policy response has not been as effective as hoped. Are the actions today roughly appropriate. In other words, the amount of printing and the amount of fiscal stimulation has been roughly sufficient to fill the whole in income that was created. Money isll of that getting spent. Lets say . 50 on the dollar that the government is sending out is actually getting spent, so you have not had nearly as much of an improvement in spending in the economy as you have had in the liquidity in the system. In addition, the central bank is printing money over and above what it takes to finance those deficits and sending that into all kinds of assets. You have a major reflation going on which has been by and large successful so far. The big question about that is that while we are used to thinking in terms of growth rates, which is changes in output over short periods of time, the big thing that is happening now to be thinking about is the collapse in income and the level of income that exists. Thatow level of income exists will be with us for a while in some substantial degree which means lower profits, lower spending, and so forth. It also means lower cash flow. Those that are in treading on thin ice with respect to their financial condition, the longer this goes on, the more difficult it becomes for them. Them operating at the same time. The collapse in income which is collapsing cash flows which will affect those that are most vulnerable to collapse and cash flows and expense in liquidity by the Central Bank Going into assets that may not be sufficient to cover the cash flows and the programs today are by and large sufficient to cover the income gap for three or four months starting from april. We are really talking about an amount of money that gets you through the summer, and the problem is that we are talking about the virus which has a timeframe of 18 to 24 months, so i refer to that as a duration which match mismatch. The timeframe of the virus impact on spending and income in relation to the timeframe of how long people can last. Financially. A you point out you have duration mismatch that up until today, markets down aggressively, you have a huge rebound because markets are focused on the liquidity side of the equation, not on the cash flows. Are you anticipating that in the next three months, as this mandate was put out a couple of months ago starts to point out, we could hit another air pocket. Bob well, you are just going to see in instant replay. You know, every three or four months, you will get the instant replay until governments run out of willingness or the ability to cover that gap. Very larges a uncertainty and it is different country by country. The United States is in the best position as a reserve currency about your typical emerging economy cannot necessarily go to the well over and over and over again. That also produces differentiations. The divergent pressures between the income and cash flow to individuals, companies, and even countries, and the production of liquidity, is a force that will create a lot of differentiation in outcomes. Assets, youration store holds of wealth, benefit from the liquidity, but if you are a restaurant that cannot get the next loan or maybe you do not want the next loan, that liquidity may not help you, so those companies and those individuals and those countries, which are most exposed to the cash flow impact, they are not store holds of wealth. They do not get the liquidity. They suffered the most, so that creates a differentiation of outcomes over time which would be a really key element of what transpires in the next year or two. From our standpoint, it requires two things. It requires diversification. You dont want to be in the wrong side of that. Presents opportunities if you can identify how those differential courses will play out. That was the bridgewater cocio, bob prince, speaking to us. Emerging market stocks have risen to the highest level since march despite that morning from bridgewater and others that than they the virus may have an outsized impact on developing nations. Bridgewaters former head of the emerging markets. Great to have you with us. We have seen value in the em space compared to the stretch of valuations that we have in developed markets. Are the risks increasing as we potentially see this grab for dollar return and Dollar Strength weighing into things . Thank you for having me. Great to be here. I guess on that point, the first thing i would start by saying, which is pretty key for anybody thinking about em is em this may sound funny em is not an entity. It is a basket of widely Different Countries with divergent valuations underneath. If you are talking about a broadbased em equity index, what we are getting is 50 china and china linked. Half, youn that other see divergence is left and right. If you think about markets at strategieshat your are, there is a lot of focus on whether markets at large are going up and down. , coming out of that, it did not matter whether you got it in 2007 or 2010. What ended up mattering is reflationary markets or deflationary markets. Later, the china linked ones. Same kind of, the differentiation in that cycle is true in the em and has created hugely divergent conditions today and those are probably some of the biggest in my recent memory, so i think its true, to your point on value, that em overall, if you look at the average, is about as as it gets. Certain markets are the ones that are driving that that have the opportunity, and others markets that are kind of being masked by that overall average that do not offer compelling opportunities from our perspectives. Atdi when you take a look dent versus a good Balance Sheet, where do you see opportunities . I am glad you asked that. That is exactly the right question. Even with what bob was just saying in the last segment, the reason this income stock matters is because it is the biggest cumulative loss of income. If it sustains for a nine or 10 months, it is the biggest loss of income that most of the worlds economies have seen since the Second World War and i am particularly speaking about the developed world when i say that. For the emerging world, it is very severe but another runofthemill payments crisis in terms of the income loss. Because ems are used to this degree of volality, particularly those classic highyield errors, boom bus economies, less so in north asia, those markets run with very low debt. Even though they have a big income loss, the consequence of that cost skating cascading through the economies are not a particularly high risk in the em. The flipside of that is true in the more developed ems like north asia we are not only did they they were geared to china and the u. S. And the tech sector in particular, which were the engines of the last upswing so they became they had study recoveries because of that. They became very offensive relative because of that. Not only that, they juiced the recoveries even further by having unprecedented in modern history asset reflation booms. Those guys have to worry. Theres issues where there are asset prices at high levels. That predicated that asset price rise. They have been hit with this massive income shocks of the consequences for those markets are much greater than for a market like mexico which can take an abrupt income shock and have a big currency swing, but at the end of the day, theres barely any debt that exists in mexico for the ability for that to create tail risks or secular pressures on growth is constrained by that. Shery is one of those markets china . We have seen their equities operating almost as defensive plays among emerging markets but we know china has a gdp growth ratio of 206 . Whitney i think you hit the nail on the head. There is two markets that stand out head and shoulders above everybody else in terms of the dense growth and debt reflation. In both cases, the deleveraging was driven particularly by incorporates and now more recently by households as they geared up to buy property markets which are at very high levels. Even if you believe property prices were sustained at these levels which fundamentally is challenging even before the virus but definitely the challenges were compounded by the virus, but even if you believe that, the debt that was taken on that in excess of Income Growth to fund that cycle cannot be repeated. Shery we are out of time but thank you very much for joining us. Whitney baker. We will have more analysis ahead with our guest joining us from sydney. This is bloomberg. Erg. Haidi this is daybreak asia. Wave are growing of a new of Coronavirus Infections in the United States with the governor of texas morning that a massive outbreak is underway. Cases have been spiking across the country, forcing local leaders to reassess plans to reopen state economies despite pressure from President Trump. A new model from the university of washington in seattle sees u. S. Fatalities surpassing 180,000. The border clash between china and india is heating up again with beijing making new allegations that his neighbor provoked the clash that left 20 soldiers died. The Foreign Ministry says the incident happened on the line of control and the Indian Forces entered chinese territory illegally. The two sides agreed to deescalate the tensions. Iran is warning the United Nations Nuclear Watchdog to drop demands for access the atomic material. He said he wants to cooperate with the iaea. It is said to have taken place before tehran signed the 2015 Nuclear Accord with western powers. South korean activists have stepped up propaganda against the north, handing out antiregime leaflets across the border. It comes from warnings of potential military action and also h after kim jong ordered kim jongun ordered them to pull back. It includes books denouncing the north. Shery International Monetary fund says the Global Economy will contract around 50 more than it projected two months ago and could be on the verge of a depression in the second wave of the coronavirus. Bloombergs Global Economics and policy editor Kathleen Hays is here with the numbers. The imfs chief economist was grim in her outlook. Kathleen she was already pretty grim. In april. Hose back the imf warned things were looking even worse. Bigger than expected supply shock. You can see on the far righthand side, first, they were looking for a contraction of 3 this year. Now, it is nearly doubled to 4. 9 . Things changed. Heres what they said at a press conference earlier. What we are seeing is that in the first half of this year when the longjohns were more severe, the impact on economies was worse than we had anticipated in april. That was one factor. Because there is still no medical solution to this crisis, we are expecting much more persistent social distancing into the second half of this year. The combination will have an effect for Growth Potential for economies. These are some of the main factors behind the downgrade. Theleen the story of coronavirus, the things you have to do to heal the patient are the things that make the Patient Safety for the patient gets better. This is what it boils down to. The imf sees a cumulative loss to the Global Economy over this year and next of up to 12 trillion, haidi. How bad do those numbers have to get when we get to that point . Kathleen she says there is a lot of risk around the forecast, upside risk that things will go better. The vaccines will get discovered more quickly. More effective treatments will come into the market more, that this will speed up the global recovery. Things will go a bit faster. She also sees a Downside Risk, if many has many do. We are seeing spikes in the United States and other countries. You have to lock down or at least people dont want to put a damper on demand. You see companies in trouble, Financial Disruptions and all kinds of cascades. She says the current economic downturn, how this looks like it could be even a depression, compares with a 10 loss of global output in the 1930s. Lets listen to something that caught everyones ear. The case we have stimulated of a second wave would generate basically zero growth in 2021. As compared to 5. 4 growth in 2021 which we are projecting, so yes, that is a classic lshaped nonrecovery and that would be a gettingire outcome, closer to Great Depression levels than we already are. Kathleen we are not talking about lucky. We are talking an economy that goes down and just stays down. That is the problem. The imf says also that there is big calculated emergency spending from governments around the world in the past few months. The debt toto push gdp ratio around 100 for the first time ever, another milestone nobody wanted to see. It will have to be dealt with on the road. Shery any bright spots . What does growth look like for individual countries . Kathleen advanced economies are doing worse than emerging markets. They are contracting en masse 8 this year. Emerging market economies, 3 . See this lovely graphic. The United States falling 8 this year. 6 euro area. More than 10 . Japan, nearly 6 . A bit more than the 5. 2 seen in april by the imf. The chinese economy is the only one with positive growth. Strict among the biggest onomies. A gain of 1 . Earlier, fored china, one person is like a contraction for many other economies. When they put their global target from 7 to 6 , that was a big deal. To be facing this kind of very meager growth, that is tough for the chinese as well, haiti. Haidi. Haidi unimaginable. Hays with us. The fallout from the pandemic is getting real for qantas. The flagship carrier is slashing 6000 jobs, looking to raise fresh cash. We will get the details, next. This is bloomberg. Haidi we are getting some fresh lines when it comes to qantas. The ceo saying the crisis has hit the flagship carrier very hard. The airline is planning a 40 of precrisis domestic schedule to return by july and that has been hampered by fresh outbreak of the virus in victoria. It talks of potentially borders remaining or going to be seeing renewed closures. That really depends on how that story plays out. We have had news about the number of jobs that will be cut after the pandemic. Lets get over to paul allen. Day for australian aviation. Paul it has been a grim year for australian aviation. Talk about those job cuts. We have to start somewhere. 6000 jobs to go. 1000 plus jobs of the ground crew. Jobs to go. To be let go as well. Saying it is possible theres going to be several years of low revenue and in the shortterm, qantas is going to have to become a smaller airline. Contrast that with what qantas was saying back in may. It has the ability to withstand conditions until 2021. Turns out that is not the case. Shery we have more details on the Capital Raising plans right now. 1. 9 billion. Paul thats right. It appears macquarrie, j. P. Morgan on the ticket, as qantas looks to raise some money to get through this crisis. Certainly while this is not in a muchis better position than its competitive version. We are waiting on the new owners. Capital rates being undertaken. More than 1 billion with 6000 jobs to go. Qantas grounding 100 plans for the next 12 months. The ceo saying this is part of a three year strategy to get through this very difficult time. Speakingan joyce earlier. Lets take a listen to what had been previously said about the levels of liquidity in the Balance Sheet that the airline is dealing with. Very we are confident that we have liquidity for a long time. You are absolutely right. If it was to continue in Current Conditions, we would have no work for 25,000 employees. We are going to be and will be activating those employees. Recently as may, qantas said they had enough liquidity to withstand Current Conditions until december 2021. It is an indication of how severely this pandemic continues to worsen the outlook for airlines, but when it comes to leadership, we are seeing alan joyce release staying put for now. Some semblance of consistency when it comes to the board. Joyce is on the front foot with all of this when the crisis began, immediately saying he would take no pay for the rest of the year, so symbolically, that put them in a strong position to leave the company through all of this. But who knows how long this is going to last four. He says the qantas continues to stand down 15,000 employees, particularly those tied to international operations. We have a few domestic flights operating around australia right now. Hes aiming to get 8000 back to work by the end of july, maybe 15,000 by the end of 2020, but and casess grounded researching in victoria and new zealand no longer covid free, you have to say the future of that trend has been made as it was described and may well be in doubt as well. For aoyce digging in three year strategy. It is unlikely that these will be the last steps that need to be taken. Shery paul allen in sydney. The australian markets get underway at the top of the hour alongside japan and south korea. Lets turn to Sophie Kamaruddin in hong kong. Sophie. Sophie futures are in the red for the asiapacific and s p eminis are under pressure. We had another spotlight from the imf regarding the disk elect disconnect. Discovery being made more challenging with a massive stimulus response unleashed by global policymakers and with this wait and see mode, the yen Holding Around 107. The offshore yuan holding a two day drop, staying above 707 after reaching the 100 day million and a move higher. And after greenback china revised its First Quarter current account deficit higher. I just want to turn attention to the debt market where we are seeing a comeback underway. Asian junk dollar bonds are set to recover after the worst quarter since about 2009. Analysts are forecasting the stimulus driven rally, that will continue into the second half. Hsbc Private Banking seeing a 5 to 6 return for riskier asian notes with default rates seen rising to 4 in 2020 which is fairly modest compared to what is expected for the u. S. , but despite the investor appetite, issuance has fallen 38 this year and rising defaults remain a red flag. Flipping the board, debt failures arriving. While onshore defaults are relatively contained, local Corporate Bond issuance, that is headed for a third monthly drop as demand is souring and borrowing costs are climbing. Yields are at a five month high. As you can see with the chart. And add widen further more funding pressure to chinese businesses that are struggling. Haidi. Haidi Sophie Kamaruddin in hong kong. Shares of wirecard taking another hit. The scandal hit Payments Company getting a bit of breathing space from lenders. We will be hearing from he says there are warning signs that have been there for wirecard all along. This is bloomberg. Shery now to the latest on the wirecard accounting scandal where the german firm admitted to . 1 billion previously reported on his Balance Sheet likely does not exist. The ceo is under arrest and it appears a whistleblower reported irregularities more than a year ago. Su keenan joins us on the line. Lets start with a brief reprieve. U wirecard has gotten a bit of a break but it is expected to be shortlived from its lenders. Right now, the banks decided to assess the scandal plagued companys longterm viability before telling it to repay its two plus billion dollar revolving line of credit. The banks want to know can wirecard survive . If you look at the wild ride its stock has been on this year alone, it really collapsed after the firm admitted the 2 billion its on at first was missing may never have existed. It is a dramatic fall from grace for a company that had been a big winner on the dax index for several years. And it is now this scandal which triggered a criminal investigation into where the money went. According to sources, and advisory firm, fti consulting, is monitoring wirecards consulting. This wild the bank sifts through documents to speak with stakeholders on how they can best secure the highest repayment and those stakeholders are said to include visa and mastercard. The agreement is expected to be very shortlived while they go through this process. We have reported that 15 lenders are now coming to terms with the extent of potential losses. Bloomberg has reported abn amro and Commerce Bank were among the leading banks that gave wirecard credit. Haidi we are also hearing about a whistleblower. It is tipping off german regulators back in 2019. Germanysanys su financial watchdog took more than a year to report wire parts are suspected wirecard for suspected tribulation. Manipulation. The former ceo, marcus, was arrested when he turned himself in. Just this week on monday night. That was days after he resigned on friday. After it was reported about 2 billion in funds was missing. The company, as you know, withdrew its fullyear 2019 financial results. So what happened . Germanys financial regular will now be able to tell a Parliamentary Committee the full story on july 1, but they are under intense criticism. The Regulatory Agency has made a public apology as of monday, saying it is one of the agencies that is going to take responsibility for the complete wirecard. At that is the story as of now. Back to you. Keenan with the very latest out of that drama. Warning signs for the wirecard scandal was there all along. Hes putting the blame on german regulators. The cio spoke with Tracy Alloway in this exclusive interview as part of our bloomberg invest global summit. I have been abused by the head andfrom the minister of finance in germany theuse, i mean, boston was most powerful accomplice wirecard had and i do not mean that in a facetious way. Right . Company, the this market cap, would have never gotten to 24 billion. Havetor losses never would been the many billions of euros that they are, and but for bafin , they would not have raised net 2. 5 billion euros for the market. Bafin was the accomplice. What does this mean . Is a tough one to understand. What it should mean is that the guy you quoted is going to be looking for a job next week. That is what it should mean. There are a bunch of other people from bafin who should be looking for jobs also. Whether that actually happens, i do not know. But all the warning signs were there. The first warning was publicly made in 2008 and then again in 2016, and then in 2018, and in 2019, and every Single Person who spoke out about wirecard was placed under criminal investigation, so what does this mean for my friends in moscow . I hope it means theres going to stop being moscow on the mind. They view hedge funds and private equity as locusts we have to say there were three journalists put under criminal investigation, to i dont know. They need to reform. I think their Capital Markets wrongdoers. Ther the thing with germany is that we think of it as a lawabiding society. It is, generally. It is a high trust environment. When you have that type of environment where people can assume that everybody else is following the rules, that is when some really bad behavior can flourish in broad daylight. And that is why they need to have a competent regulator. So hopefully, they will work on those reforms. I believe you exited your own wirecard short. Why did you do that and what does it say about maybe the difficulties of the shortselling . We were short wirecard briefly in 2016 after the first report. Recall how long we held it. It became clear to us that was also to our own dealings in germany, in 2016, we shorted a company they are called the German Authorities had been similarly unkind to us as they have to all of the wirecard critics. The way i started thinking about it was being short wirecard was effectively being long regulatory competence in germany and i just was not willing to make that bet. I wish we had been short recently, obviously, and what i missed was that ey was actually going to show up and do the jobs that investors think they are therefore. You know, for the first time in the entire public life in wirecard. Muddy waters founder and cio, carson block. A rare appears to be Company Emerging from the coronavirus upheaval in better shape than it started. The widespread lockdown triggered a surge in gaming which is being boosted by the release of a new title. Brawl stars. It is the most downloaded title in china. Tencent rose again, extending their alltime highs and listing the stock further from its march low. India has approved facebook 5. 7 billion investment in geoplatforms, which triggered widespread interest in the company and gives the social network just under 10 of the company. Is a digital arm of reliance industries. Facebooks whatsapp has 400 million users in india. 20 to buyershan including kkr, silver lake, and general atlantic. Icici bank is looking to raise as much as 3 billion to bolster its capital ratios. Bloomberg understands mumbaibased lender is considering a share sale as early as september depending on market conditions. Stock in icici is down around 35 this year. Indian banks across the board have been struggling with equity issues made worse by the coronavirus lockdown. Lets get you a check of asian markets after we saw that decline on wall street. Investors failing to climb that worsening coronavirus case across major states across the u. S. 1. 2 for new zealand. Trade numbers coming in pretty much in line with estimates. They offered up the possibility of more stimulus if needed. Futures pointed lower by 2 . Early decline, particularly led by energy. They saw energy as one of the leading decliners. 1 overnight. Nikkei futures are trending lower by about 1. 25 . Seoul kospi futures, the rare bright spot we see. Coming up on the next hour of daybreak asia, stocks in this part of the world and in australia are posed for risk off days as virus worries mount. We will get insight from eleanor cragg. We will be speaking with the chief era nomura economist to talk about several centralbank decisions in the region this week. The market open is next. This is bloomberg. Shery good evening from bloomberg World Headquarters in new york. Im shery ahn. Haidi im haidi stroudwatts in sydney. Major markets just opened. Welcome to daybreak asia. Top stories, growing worries about the coronavirus hit sentiment. Investors take flight for risky assets. Covid19 infections to content continue to rise with surges in several states, new records york, rnia and New California and florida, the governor of texas warns of a new outbreak. Reports that say Goldman Sachs needs to do more. Exclusive interview this hour. Shery a few markets are on andday, japan, south korea australia coming online. Sophie kamaruddin is in hong kong with the action area sophie we have resurgent virus fears in tokyo as well after the city reported higher infections yesterday reported linked to workplaces and clusters. In decline, keeping our eyes on olympus as well after it announced plans to sell its camera business. This among predictions that mn activity in japan will checking in on the yen, steady around one or seven, jgb overnight gains, treasuries. Cautioning that space, with 20 year options testing appetite for superlong bonds before the 30 year sale due next month. South korean markets, moves to the downside in the kospi after a twoday gain. Yupi off 1. 7 , the korean afterthe back foot winning geopolitical picture. The mood sour this morning. We also learned Capital Gains tax will be imposed on Retail Investors in 2023, and that could dampen investments. Lets check activities, asx 200 lower by. 5 , the aussie dollar under pressure in the face of a stronger u. S. Dollar. And bonds are gaining ground, the aussie 10year yield off by four basis points, as we learn from qantas that the carrier plans to cut at least 6000 jobs. Overall, concerns are on top evaluations and will loom large as prices are looking challenging for investors. Haidi Sophie Kamaruddin, and we will get more on risk off markets. We are joined by saxo Capital Marketseleanor creagh. Comment sophie was making on aussie stocks, we know this is not a cheap market, valuations are stretched, like most markets, but looking at this one technical, the convergencedivergence indicator, sitting under the signal line and trending downward for some time. Is this a suggestion we are finally seeing investors come to grips with economic realities, not to mention Corporate News with qantas today, so terrible as well . Liquidity driven, rally narrative finally coming to an end . Risk appetite is certainly consolidating with rising covid19 case counts. At we see markets on edge. At there is real concern in the u. S. , raising the prospect of not,estrictions, or if people own Health Concerns might be weighing on their behaviors, which has caused a downturn in the recovery trajectory, and a reminder that cobit is very much here until we get a vaccine. We look at the markets and the risks are active, and there is a limited margin of safety divided by extended valuations across equities, including the aussie 200 the asx 200 as well. So leveraging, given underlying fragility that still remains, and a lot of uncertainty as it remains to the virus itself. But i think that although we have these moments where reality collides with stimulusdriven sentiment we have seen today, not the reals are drivers of risk assets at present. I did we take a step back and if we take a step back, any pullback is going to likely be part of the overarching up trent. Trend. We readily admit that the riskreward is not as attractive and that has been distorted by the lack of alternatives that have proved to be a very powerful force to be reckoned with. And these Downside Risks, any number of them, will be met with action from central bankers, and we have seen from liquidity that there pain threshold is very low. And that lack of an alternate event the expectation that rates are going to remain low for an extensive time, and certainly with the prospect of yield curve controls maybe later this year think it is i diverse but the existence of that dynamic means that if you buy into equities, you dont necessarily need to be positive on the expectations of a quick economic recovery. We have been talking about globalization is one of the reality check themes on the other side of this pandemic. So how do you trade this . Do you do a much more domestic portfolio . Localizationainly is something we have seen in the markets ended has been accelerated by the pandemic. But it is a long term dramatic and it will take a long time to play out, decades, if we look at the future throughout economies and equity markets. But yes, certainly focusing on domesticallyfocused small caps, outperforming large caps in that sense. Andl infrastructure stocks, as well limit change and sustainability. When we talk about deglobalization and the reshoring effect, the concept of comparative advantage is sometimes lost, but specifically if you look at australia, there is a clear comparative advantage when it comes to renewables. And this year, nowhere has the impact of Climate Change been more obvious than in australia. A clear picture for investment in physical focus, not targeting just jobs in the economic crisis, but ongoing Climate Crisis as well. Lets talk about alternatives to equities. ,gtv. Tv chart shows gold really out of its range. What assets could outperform given the pandemic . Gold is very knowing in the fact that there is not going to be a vshaped recovery in the economy. At the moment, although i guess we need the participation of the broader, precious metal complex to confirm what we have seen in the near term, we believe the big picture is still intact for gold and expect fresh alltime highs by year end. Just as thethat Technology Sector and Growth Stocks are responding to lower yields, declining rates and the erosion of the purchasing power and thencies opportunity cost of holding gold with those declines as well. And there is also the additional persistent virus uncertainties, where we dont know when the virus is going to come back, and colder months, and in what form it will come back, and of course the persistent geopolitical tensions as well that we have seen between the u. S. And china and the u. S. And europe at the moment. Shery gains seem to be focused whether in gold or tech, Growth Stocks up, and there is too much liquidity chasing too few baskets. Our market live question of the day, Central Banks broke the markets. Your thoughts . Isanor it is clear there very little price discovery in markets, and that is feeding into Financial Markets and element of moral habit than longterm financial instability, at best. But it is clear that potentially, those fundamentals will trump liquidity, although that could certainly be a long way off at this stage. And we do worry about the future as we have seen fed policy fuel this massive speculation across wrist ask risk assets, along with the misallocation of capital. Ended exacerbate structural challenges we see within our economy, and i think that ultimately culminates in challenges that are far greater than a market crash to overcome, specifically talking about longterm implication for our societys social fabric and the like. Haidi we always appreciate those views from eleanor creagh. More breaking news qantas regarding its fleet. The a380, it is saying it will be grounded for at least three years. Alan joyce was at one point saying he wasnt sure when International Travel would return to such a point where the that capacity of the where the capacity of the a380 would be warranted. Also, domestic flights would return to 70 by this year, to about 40 in july, and saying its National Flight services may not start until july next year. Shery and take a look at this other stock in japan. Olympus jumping the most since mid january after saying that it will be selling its imaging business to japan Industrial Partners. This, on news they are selling off their camera business. For thened a memorandum company into a new company and then are selling it to the fund japan Industrial Partners and you are seeing olympus gained the most since mid january. Still ahead, we hear from more big voices at the bloomberg investment summit, including the ceo,roup and Goldman Sachs economistak to Nomura Euben Paracuelles next about Central Banks and his outlook on the Rate Decision later today. This is bloomberg. Karina you are watching daybreak asia. Im karina mitchell. Fears drawing of a new wave of Coronavirus Infections in the u. S. , the governor of texas warning a massive outbreak is underway. Cases are spiking across the country, forcing governors to reassess plans to reopen state economies, despite pressure President Trump. A new model shows u. S. The tallies surpassing 180,000. Meanwhile, the Monetary Fund is theeasingly pest a mix International Monetary fund is increasingly pessimistic about the coronavirus and expects gdp to shrink on must 5 this year, more than the 3 seen in april, with growth falling slightly in 2021. It fears that hit to the World Economy will top 12 trillion. We have stimulated a second wave that would generate zero growth in 2020 one, as compared to 5. 4 in 2021, which we are projecting. That is the classic alshaped shapedovery l nonrecovery, that would be a dire outcome and bring us closer to depression levels. Warned the imf also about the crisis a decade ago, seeing a contraction of almost 6 as coronavirus cases spiked again in tokyo, with workplaces now seen as a focus. Authorities reported 55 new infections, most in a single day since may 5 with a capital was under a state of emergency. The bank of thailand held its benchmark rate at an alltime low to support the economy now seen contracting more than 8 this year. That is the worst on record. The decision is online with bloomberg forecasts, with growth falling more than previously expected. The coronavirus devastated thailand economic drivers, tourism and trade, with a recovery slow at best. 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. Im karina mitchell. This is bloomberg. Citigroup says it is seeing worrying signs in asias consumer sucked best consumer sector, as run a virus consumer consumer asias sector, as the coronavirus hits consumer sentiment. Surprised. Been customersut 2 million who signed up for relief largems, but a very number has carried on making payments. We seem to have ruled the rate in these programs down into the Single Digits for previous enrollees. This space has worked well, but the future at the moment is anyones guess. Taylor we saw a significant government stimulus in the first part of this crisis, 1200 checks given to americans. But once this first round starts to wear off, will we see a rising defaults from the consumer . Is a distinct possibility. We have seen a number of people come out of these programs and then go back to paying credit cards in full. The big question will be, how much of this is from stimulus programs and much of it is people going back to work again . I know all of them want to. At the moment, it is looking optimistic, but the Health Situation is going to drive what w orns, whether it is a how strong a v. End asia has been very concerning, very sluggish and the return of the economy in many sectors. The consumer is being more cautious about spending, and the even though the health at that even though the Health Impact there has not been great, the consumers far from firing on all cylinders in asia. That is a point of concern for us in america. Given our conversations, the consumer is becoming such a big part of what Economic Growth movingook like forward. Tony and on your biggest concerns. Where are areas where me where we may see the most pain points . Jane from the consumer perspective, unfortunately, who got hit the hardest . Minorities, low income, because many individuals who were able to work remotely from home tended to be in a higherpaying role. On theediate hit was most vulnerable parts of the population anyway. The Health Crisis hit the elderly where as elderly, whereas the Economic Impact hammered minorities come as we know. That is a point of real concern for us to think about, how we help them to recover. The other question that comes up that we are going to have to find out before too long, which of the different corporate sectors will need to restructure . Doesntthe demand just recover, and we dont need the capacity we have. What is that mean around corporate layoffs in the sectors that have been hit hardest by this, or that may be hit by a longerterm macro slow down . Acts of are additional this play to come, and i am hoping there are only two of them, and the second one is very limited. But there could be several. Shery that was citigroup president jane fraser, speaking exclusively to bloomberg. You can get around up of the stories you need to know to get your day going into thes edition of daybreak. Bloombergs of bribers bloomberg subscribers can go to their terminal. This is bloomberg. Haidi one of the worlds biggest Real Estate Investors thinks companies will still need office space, despite the coronavirus pandemic. We were told businesses know the culture of the shared workspace cant be replicated with online meetings. Asideould just say, leave the Health Impact of everything. Thing constant in life we have witnessed from across the world the closing down of offices and the opening of offices. And we have virtually opened all our offices globally and we are 100 . P at some offices london, we are probably 75 , new york, 25 , so numbers have been going back up. And it has taken us three months. It has been stressful for people, but bottom line, this will pass. And this is the crisis of the day, but we will look back on it, and some small things are going to change, but a lot are going back to where they were. And we will have another crisis in the future, im sure, that will be just as bad as this one when you are in the middle of it. What are those small things that have changed . You have a window into how we work. We spent so much time at the office, we spent time shopping, you have a window into that also. You see the things that changing in the short to midterm that we should think about . Shut for offices, once we threeffice buildings months ago, we started thinking about what it is we need to do to get those offices back open. And that has included all the things you have seen, if you are in an office today, or you will see if you go back, which is there is more distancing, elevators have spacing, there is more cleaning, our air is better than what you are breathing in your house, because we are taking particles out of the are that we never took out before. All those things are happening in Office Buildings today, and they are booked to be some of the safest places to be in the world in the future. In retail, no doubt there was this trend going on, and the trend was online and good retail moving together, and retailers were using them together as one space to deliver goods to customers. And thats is going to be accelerated, no doubt, with Curbside Pickup probably increasing and other things happening. The trends that were happening are going to continue to increase, some of them exponentially, as we come out of this. And i it is safe to say, know this is your business, but you are still long on offices on a way of working. You have talked several times over the past few weeks of the power of people being together. And i think we are seeing that manifest in our social lives. Help me understand that a little bit. Bruce our view is that office space, after talking to virtually every company we lease space to, that they are bringing their people back. Saying, reason some are we are not bringing back everyone right now, is that they dont have enough space to be able to have social distancing while that is important to bring everyone back so they may bring back 50 of the people because of that, but eventually they are going to ring them all back. Is, innt i would make our company and other companies we talked to come at the office is about social interaction of people. It creates a culture in a business. The spontaneity and collaboration that comes in an office is incredibly important in a business, and you cant create that by videoconference. You can maintain it for a while, and that is what we have done, but you cant that over the longerterm, so offices are going to be incredibly important, as they were before. And today, jason, we are actually leasing greater amounts of space to people than they had before, because they want to accommodate all their people and get them back quickly. So they are increasing their footprints, versus taking less. Flatt speaking to us as part of the bloomberg invest global summit. Market trading, broad, downside pressure, japanese nikkei now falling. 7 real estate and Energy Stocks leading the declines. Qantas is not trading today in australia, but it is saying it saying its a380 fleet will be grounded for at least three years. We are watching the company closely. Kospi is down more. This is bloomberg. Shery lets get the quick check of markets with Sophie Kamaruddin in hong kong. Sophie asian stocks are losing ground with all sectors and the rest of the mci, except for health care and utilities corner, as the mood stays defensive following the drop in u. S. Stocks, led lower by cyclicals. The nikkei two pressure, olympus though shaking off broader isdrums, up 10. 4 on news it getting rid of its camera business. 1. 2 , halting a fourday game with travel stocks among the worst performers in itney after qantas announced will cut 6000 jobs in a blow to the industry. Checking Japanese Travel Agency get 33e company set to billion yen in a committed credit line from three banks, as it faces pressure to stop calling nearly 6 after posting an operating loss for the Second Quarter and withdrawing fullyear earnings and dividend forecast. Will closet say his up to 90 of its 260 stores in japan as domestic and foreign ofvel state soft, an example how socalled contactintensive sectors are still at risk. Haidi sophie, the imf has downgraded its outlook for the World Economy, predicting a deeper recession and slower recovery than it anticipated two months ago. The imf chief economist explained why on bloomberg tv. We are seeing that in the first half of this year, when the lockdowns were most severe, the impact on economies was worse than we anticipated in april. That was one factor. The second factor is that because there is still no medical solution to this crisis, we are expecting much more persistent social distancing in the second half of this year. The combination will then provoke attention on economies at these of the main factors behind the downgrade. There has been conversation that the imf is more optimistic than other agencies or Central Banks even what is the likelihood you are going to keep downgrading outlook . Put out oure numbers in april, i think we were ahead of the curve in terms of signaling this would be the worst session since the Great Depression and a truly global crisis. Those remain the facts of this crisis. Yes, we have had a downgrade that us closer to one of the alternative scenarios we considered in april. Unlike april, the risks are more balanced. I wish we had an upside risk, i wish we had medical that are medical news, a vaccine, but on the other hand, you could have wave,news, a second geopolitical tensions, but i would say the risk at this point is more balanced than at any point before. Why does the imf and other institutions been slow to realize the magnitude of this on the economy . What is causing the creeping realization of the damage done . Gita this has been like no other and trying to figure out the impact is a true challenge. You have to answer questions like how peoples behaviors are going to change . Are they want to are they going to want to stay home versus going out . How long are they going to want to do that . These things are hard to protect. We have seen that the lockdown is very severe. We have seen recoveries, but it is uneven we saw the retail sector, we saw the numbers in the u. S. Come up, it looked good. But if you look at contactintensive sectors, hospitality, tourism, travel, those are still at a really deep low, and barely recovering. I believe this is what we are looking at. And secondly, this is a global crisis, which means that for a country that is heavily dependent on exports, even if domestically you are doing ok, you are going to have a big hit to growth. Is the i try to work out disconnect between what markets are telling us on what underlying economies are telling us. Markets are sort about racing you feel markets are towards that recovery, or a rebound . Or are they look at something looking at Something Different . Gita i understand the consequences as to think. One is the unprecedented policy support, especially by major Central Banks in the world, with liquidyerventions, provisions. That is an important factor. The second important factor is that, given the uncertainty of the path forward, and that there are our upside risks, i think the markets are focused more on the upside than the rest of us are. That is the reason why we can expect to see a recovery much faster, and this disconnect. But we are concerned about excessive debris staking in the economy at this point ing in therestak economy. See a second to lockdown in the u. S. Or europe, how wide is the fan at the bottom half . a second wave would generate zero growth in 2000 21, as compared to 5. 4 growth in 2021, which we are ejecting. Shapeds the classic l nonrecovery, and that would be a really dire route, and get us closer to great oppression levels than we already are. Economist gita gopinath. Alert of the bloomberg, the Disneyland Reopening in california delayed by the company. They were aiming for a phased reopening starting mid july, but we have now seen california reported a record daily jumping coronavirus cases, as the u. S. Struggles with more than 2. 3 million infections. Ons continue our discussion the Global Economy. Thailand not predicting its steepest slump in two decades, as the pandemic takes a toll on his tourism and trade sector. The Central Bank Left rates unchanged at a record low. 5 yesterday to support the economy. The philippines central bank, also new to report a Rate Decision today. They are expected to hold. Joining us from singapore is nomura chief asean economist euben paracuelles. Great to have you with us, the consensus is that they will hold rate steady. You are expecting a cut. Why . Euben that is right. Its based on the growth and inflation dynamics in the country, and i think it is still supported by the case for more easing by the central bank. We have seen unemployment surge to 17. 7 in april, which means is severe on the labor market. Policy, there has been some measures, but the additional package has not been passed by congress. So there has been a delay that is going to be negative for growth. End on inflation, the outlook continues to be benign. I expect headline inflation to come down before the 2 to 4 target from the central bank in coming months. That should boost the case for credit easing. Shery is that a similar outlook to what you are seeing in thailand . They also kept rates steady in their decision. Euben yeah, thailand is different in a sense that the policy stays a little bit constrained. 5 , that iss already in the air, so in a sense they are probably saving left,er bullets they have in case we get a significant Downside Risk on Growth Outlook in coming months. And it was fairly clear as well in terms of their justification that there has been quite a few policies that have been implemented on the fiscal and monetary side, so they are standing on the sidelines for now to see the impact of these policies, how they are playing out, particularly in the context of the fact that the economy is reopened, thailand was successful in flattening the curve, and that should bode well for the recovery. Haidi but they have had no in may. Tourists some of these economies are so exposed to the closure of international borders. How much does that continue to weigh, unless we see a travel bubble set up . Eleanor that is it risk, that is a major really. Even before covid, the economy thatnbalanced in terms they were reliant on tourism and related industries to drive growth, and obviously that not that is not going to return soon. I think that would still really require Monetary Policy, particularly policy rates, to stay low for a long time. So i think in thailand there is this policy easing on the fiscal side and it is kind of being increased to support that recovery. Imf, we heard from the warning of a potentially deeper recession, closer to a depression depending on how severe the virus downturn is. It seems like we had a few weeks of positivity when it comes to the economy, and now these concerns across the world are quelling that. How much a concern is that for Southeast Asia . Issuess it suggest related to debt burdens of policymakers have to do more . Yeah, it is a significant risk, especially for small, reopening economies across the region, thailand, malaysia, singapore, all these countries are very reliant on external , and would seem to get a worsening of the situation in a second wave across the globe, and demand would be crimped. Again, this is the dilemma for policymakers. I think they have done a lot throughout the course of the last few months, and they are running a little bit low on space, that is the case with the bot. I think if these things are stepped up in terms of the fiscal side, they could lead to her fiscal opposites fiscal deficits. That is a secondary concern at the moment, it is important for them to really support the recovery and make it sustainable. And fiscal policy has an active role to play in that. Shery how much more active Bank Indonesia become . En paracuelles saxo capita fx, the currency will be remaining stable. We have added another rate cut for them sometime in the third quarter, which would take the policy cut 4 . Theres quite a bit of risk around that because it depends really on how the currency will behave, and there are more pressures down the road, then it would be difficult for them to cut further. Mof leaves the onus on the to increase the deficit and provide more funding for the recovery program. They have started to do that, but i think they need to do more. Time, we appreciate your nomura chief asean economist euben paracuelles. This is bloomberg. Karina this is daybreak asia. Im karina mitchell. President trump says he will not allow Police Departments to be weakened by the black campaign, accusing opponents of trying to cripple law enforcement. He spoke after Senate Democrats a lot Police Reform bill proposed by republicans, saying the bill fell short of changes needed in the wake of the killing of george floyd and other like victims but democrats are scaling back their National Convention in august, telling delegates to stay away from milwaukee because of the coronavirus. That is in stark contrast to the President Trump campaign, who moved there convention to jacksonville, florida, to circumvent distancing rules. It is unclear how many people will witness joe biden except the democratic nomination. South korean activists up stepped up propaganda against the north, sending leaflets across the border in defiance of threats from pyongyang. This comes after warning of potential military action, and also after kim jongun ordered his forces to pull back from any confrontation. Sent 500,000 leaflets and books and dollar bills to announcing the north. And border clash between china and india is heating up again, beijing making new allegations its neighbor provoked the last that left at least 20 soldiers debt. The Foreign Ministry reasserted the chinese claim that the incident happened on a line of control, and then Indian Forces enter chinese territory illegally. 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. Mitchell. This is bloomberg. Back to you. Haidi chinese insurer ping an is on a mission to become more likedriven, services ceone Health Services and jessica tan spoke to bloomberg. Jessica health care is a big thing for us. Units from Online Health the smart health care, Technology Enablement of offline providers like hospitals and doctors. Social Health Insurance and then we have a research research. On viral what struck us during this unusual time is how much potential technology can have in improving accessibility, efficiency for health care. We feel this is the right direction. Helping cities to predict and manage crises such as covid19. Look, at the beginning, being able to predict what the level of infections. Were fortunate in the health helpingearch institute, over 30 cities to do this. [inaudible] which helped them to measure a better response. On delivery of health care. Would bed example around accessibility to users. During covid, a lot of small is like flu or childhood fever, people didnt want to go to the hospital. During covid into beginning, our online consultations increased three times. Changed consumer behavior, something that might have taken years to do so and was compressed within months. And 34 of all these can be done much more equitably online. That is another thing we see going forward. And then the Health Care System itself, if we look at doctors in the ability to diagnose the virus, the digital path is kept updating. We have a system we provide to which helpedrs identify diagnostics. With some of these things, we can see how Technology Improves accessibility in the Health Care System, to the consumers or even to the professionals themselves. Ping an Insurance Group coceo jessica tan speaking to us at the bloomberg invest summit. Now, a companys says Global Demand for diggers and other Mining Machines may weakness to 30 , with everywhere outside china. Earnings forecasts for the year starting in april, because of the pandemic. Jobs, 20 l cut 6000 of its workforce, as it struggles with the coronavirus slow down. It is seeking to raise around 1. 6 billion u. S. , while revoking its dividend. It is differing deliveries of new planes on grounding 100 others, including all of its a380 superjumbos. And may qantas said it had enough liquidity to withstand Current Conditions until december 2021. Rarent appears to be a Company Emerging from coronavirus people in better shape than when it started. Surgeckdowns triggered a in gaming. A new game debuted this month is the most downloaded title in china. Tencent abrs rose again, extending alltime highs at lift the stock further from its march low. Disney is delaying the reopening of its theme park in california. Palmeri haschris been tracking this. Chris, what do we know about this supposedly phased reopening now put on hold . Chris it seems to be driven by two things. The unions were not entirely comfortable reopening. There are still things they want to find out before the park opens. They have been putting pressure, wrote a letter to the governor of california, are planning a protest at the park on saturday. Also, the company said it like it just might not have time to place fors plans in their original date to reopen disneyland, july 17. That is postponed indefinitely. We had some pessimism from analysts that this is going to be a long and rocky road ahead, and disney as proof of that point, right . Chris absolutely. This is a debate happening across the u. S. Many states have been reopening and there has been a spike in cases in florida, california, we disney has a large park presence. But so far, the company says it is still going to reopen disney world in florida july 11. But i wouldnt be surprised if they change their mind about that, because there is a lot of pressure. Shery what are some measures we are seeing in this postcovid world . Chris disney has already reopen shanghai and hong kong, with social distancing, with 25 or so capacity, reservations to requirementst, that everyone has to wear masks, they dont have the character meet and greet, the lines are wiped down frequently, they encourage using credit cards instead of cash payments, so they are doing a lot to minimize impacts on guest. The reopening in florida of universal studios, and the numbers when it comes to crowds, they are really thin. Is there an appetite for theme parks in this environment . What are we seeing when it comes to hong kong, and disneyland paris, still on track to reopen . Interestingly, even though the parks dont take a specific cap dont have a specific cap ondemand, you mentioned parks in florida that reopened, that doesnt seem to be special demand. Mothers on family trips, they arent going to want to send their kids into a big crowd environment like that, very different from think we are seeing in terms of large crowds at bars and things like that. A muchvery well be slower comeback for theme parks. Haidi our Los Angeles Bureau chief Chris Palmeri with the latest on disney delaying the phase reopening set to take place there in mid july for california theme parks. Before Bloomberg Markets china open, lets take a look at trading, tracking the stumble overnight in wall street. Japanese stocks up. 6 , korean over 1 . Rse, losses australia, downward pressure over concerns over escalating virus cases at home and abroad. They continue to add attention to these markets. We are also saying, when it comes to victoria, the stage in australia, a new cluster outbreak, 33 new covid19 cases in 24 hours. New zealand is off. 8 . Today, ain trading number of markets are closed on holidays, china, hong kong and taiwan. Our market coverage continues as we look ahead to the start of trade in singapore and malaysia at the start of the hour. This is bloomberg. David it is not 00 in beijing and shanghai. Welcome to Bloomberg Markets china open. Im tom mackenzie. David im david and glass. Imf lowering its global Growth Outlook, saying the pandemic will cause more damage than first feared. Tom covid19 infections continue to rise,
vimarsana.com © 2020. All Rights Reserved.