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. And other parts of the world. Its closing some stores and says a full return to previrus normality will not happen this year. Apple stock continues its dr ive to become the Largest Company in the world by market cap. Shares close to energy share saudi aramco, although they pulled back later in the day. Tesla seemingly relentless surge faltered slightly t despite upcoming a doozy as a. Shares gained before pulling back with a rally that has taken the company past toyota in value. Tesla is excited to release details of new Battery Technology along with entry into a potentially lucrative new market and possible addition to the s p 500. Investors have bet heavily on softbank recently and many see more profit ahead. Shares of more than doubled since their march low with the founders shrugging off the twin disasters of weworks failed ipo and fallout from coronavirus. Softbank is considering selling the british Chip Designer Arm Holdings which was bought years ago for 32 billion. U. S. Lenders are bracing for what could be the worst quarter since the financial crisis. Banking analyst Stephen Biggar tells us what to watch for and what makes some bank stocks a buy right now. This is bloomberg. Karina im karina mitchell. The Trump Administration has rejected beijings claims to large parts of the South China Sea, reversing washingtons previous policy of not taking sides on territorial disputes. Freedom of navigation in the waterway while stopping short of it taking a specific position. Secretary of state mike pompeo now says chinas claims are unlawful. China is hitting back at rising u. S. Pressure, sanctioning leading officials including senators marco rubio and ted cruz, for the condemnation of beijings actions against muslims. The move comes after washington banned three chinese officials from entering the u. S. And frozen any assets they may have in america. Bloomberg is being told top advisor to President Trump undermining the hong kong dollar to punish china. White house aides and the state department had waived limiting bank access to u. S. Dollars to strike back at beijing to drop the idea after it failed to gather support. Sources said it would be hard to implement and hurt the u. S. Washingtons nfl team is bowing to business pressure and will drop its redskins name and logo. The franchise has been criticized for years and a string of big sponsors have been calling for a change. Owner dan snyder had resisted since buying the team 20 years ago but has now ceded to the pressure. Officials are working on a new nickname and logo. Global news 24 hours a day on air and on bloomberg quicktake, by more than 2700 journalists and analysts. Im karina mitchell. Haidi . Haidi u. S. Banks are set to report earnings for what is expected to be a grim quarter. Sharee two days of gains, prices show it if you take a look back at the recent price trends. This chart on the bloomberg showing bank stocks are now trading near their lowest since the start of the financial crisis, despite the recent bump up we are seeing in financials. Stephen biggar has covered the banks for more than two decades. Hes director of Financial Institutions research at argus. Given the outlook and that we know we are going to see three or four months of the pandemic show up in these numbers, is there room for a slight surprise . Stephen i think there is actually. Very noticeably underperformed in the s p 500 year to date. The Financial Services sector down 24 versus just 1 for the s p 500. That is a pretty massive underperformance. They are very inexpensive historically on a price ratio basis. Beennk the estimates have lowered to such an extent that there is an opportunity here for maybe some upside. And it is going to require a little bit of cooperation from the economy and the jobs picture from the defaults scenarios that banks have right now with many loans that are likely to be unpaid. You need a little bit of cooperation on that front to move the banks higher and that has been the primary thing that is Holding Banks back at this point. Haidi we know that Revenue Streams are much stronger this time around compared to the financial crisis. The levels where we see the stocks trading at the moment. We know that trading is going to be strong, we know mortgages are going to be strong. Are you more focused on that side of the story or more concerned about looking at the Defense Mechanisms whether loan provisions will continue to worsen . Stephen i think, whether you look at the large banks or small banks or International Banks for that matter, the lending businesses are really facing a trifecta of poor fundamentals. Have the sluggish loan growth from lesser economic activity. The interest mortgage contraction as Interest Rates hit record lows and you have the positions which will probably be the dominant driver as banks tank billions of dollars of provisions ahead of these defaults. Yeah, we are focusing more on the Capital Markets inside. The large International Banks that do have that offset. Pretty good quarter for trading revenues especially. A lot of hedging and repositioning. The volumes have been strong across equity debt currencies and commodities. Highurse, we had a very equity issuance in the Second Quarter as Corporate America raised a lot of cash in preparation for the downturn. The Capital Markets banks do have a leg up here. Shery we are taking a look at your calls if we can go back to that chart we were looking at where you have your calls for the big banks in the u. S. You had a hold for Goldman Sachs instead of a buy for everyone else. Why . Stephen well, if you look across the franchises, the Common Element between j. P. Morgan, bank of america and Morgan Stanley is really better diversification of the Revenue Streams. They have a much better diversification, particularly on the consumer side which is a big driver. Obviously, that could hurt in a downturn but in an upswing, that will benefit them much better. Goldman is more of a pure play. In Capital Markets activity and they live and die by that sword. They have gone relatively recently into consumer with the apple credit card. It was a bit of an up inopportune time as they built up their business right before a downturn. Now they will have to bear some of those credit costs as well. I just like the diversification of the credit card, mortgages, International Footprint with regional that the other banks have in terms of Network Banking and the like. It is the diversification aspect. Shery as we see this continuing resurgence of virus cases across the u. S. And perhaps more stayathome orders, who would be the worst hit . Banks, if the the coronavirus kind of stays on for several more months, i think to the extent that consumers are going to have a tougher time repaying loans, to the extent unemployment does not bounce back as it has shown in recent months, then the consumer banks to get hurt here which would be the j. P. Morgan, bank of america, wells fargo and citi, to a bit lesser extent. Wellsspecifica story or is this something you are watching the other banks, this is a precursor to a broader trend across the sector . Stephen no, wells has very much their own story at the moment. They have a lot of impediments in front of them in terms of particularly the fed asset cap at 2 trillion. That has really hurt them. The scandal, which is coming up on four years now. It has been 2. 5 years since the asset cap has been on. They are going to cut their dividends tomorrow when we hear from earnings. They have already mentioned that. We dont know the extent to it but it will probably be 50 . They came up shy on the feds dividend requirements over the past four orders. So, their inability to grow over the past 2. 5 years in particular has really put them in a difficult position here. So, they are obviously running with the other banks in terms of the loan loss reserves and provisions they have to take with a weak lending business based on margin contraction and loan growth. But, also, one of the most undervalued banks, i think, relative to the franchise value here. Shery Stephen Biggar, director of Financial Institutions, argus research, thank you for joining us. Buyog devices has agreed to maxim integrated products for 21 billion in stock in what may become a new round of consolidation in the semiconductor industry. Bloomberg spoke to the ceo of Analog Devices about the deal and concerns about regulation. We spent a lot of time obviously trying to understand the regulatory risks. Generally speaking, the portfolio out of technology between ourselves and maxim are very complementary. There is always some risk, but my sense is weve what got through that well. When i look at some of the acquisitions that have been cleared across the globe in the last three to six months, my confidence is high. ,he advice we receive as well the regulatory process has played out across the globe. With regards to the general makeup be of your business, within the context of some of the geopolitics that have been taking place, do you see any sort of detailed risk to being a company that does span across so many borders in the way you do now . Vincent no, i think one of the great fassetts or characterizations of our business is diversity across products, applications, products and customers. Tole it is always hard define precisely what is going to happen on the political side of things, we dont view that as significant risk in the regulatory process. Given the not concern politics, the rising trade tensions about some of your supply chain risks and moving some of the supply chain that you have out of china, for example . Vincent well, we actually both companies actually have very little manufacturing at all in china. Spread of have a good Manufacturing Capabilities in terms of making the silicon itself. Doing the Packaging Technologies as well as the testing of up the products. It is very globally distributed across asia as well as america and europe. Specific to manufacturing in china, we actually have almost no concern about that given the lack of activity. Why did you go for an all stock deal . Vincent good question. At this point in time, we were looking into things. Number one would be the combination of the company and the value that we can generate over the longterm and what that would mean to the shareholders of the stock. We are very confident given our track record of acquisitions and what has actually happened with the stock of our company postacquisition. Once you begin to realize synergies on the top line as well as the cost synergies. Also, just managing in this environment, the Downside Risk of very uncertain macroenvironment. A very volatile stock market. I think to be able to do in all stock deal gives us tremendous cushion on the downside and also given that our stocks have traded in sync for so many years at a very, a para value level, an exchangerate level. It makes a lot of sense to do stocks. I can understand the scaling up aspect of it. One of the main criticisms for your company is a lot of the analog chipmakers is this idea of cyclicality and the idea as you sort of move into these businesses or scala or even expand and broaden out, you make yourself even more cyclical than you did before. What is your strategy Going Forward where you can may be blunt some of that cyclicals impact down the road . Vincent so, one of the diversity in terms of our of productse types we develop, the markets we target we have more than 50,000 products in the portfolio. Of thelways sectors economy that do better than other sectors. Adi very strong and industrials and automotives. I think we have a nicely balanced portfolio now. That was Analog Devices ceo vincent roche. Nearing the 10 trillion mark. We take a look at whether chinese marks will have that milestone five years after the countrys biggest market crash. This is bloomberg. Shery you are watching daybreak australia. Lets get a quick check of how the markets are trading and turn to sophie in hong kong. Sophie with politics and trade in the mix along with the latest on the virus, it may be difficult for markets to find direction. Californias move to reverse some of its reopening measures as sentiment in asia. Futures are mixed. Slightly higher by one third of 1 . Offshore yuan is hovering around 7. The aussie dollar holding a threeday drop ahead of chinese trade data due later this morning. Over in the commodity corner, i want to keep an eye on copper. This as speculative have fueled the rally along with other factors. Money managers have boosted their net bullish position on copper to a twoyear high. Switching out the terminal, the red metal has extended an eight week winning streak in lending, the best run since 2017. Technicals are pointing to more gains for copper with the golden in the making. We will show you this chart showing the cross that could be in the making for copper. A big factor driving the advanced had been mounting risk to chiles supply on potential labor strikes. The latest on the front is seven unions representing about 80 of mine workers have agreed to form a Virus Working Group for the government, for the first meeting to be held on wednesday. We also have improving chinese demand also boost with more Economic News forthcoming on thursday. Pricesy spur copper higher with some smelters facing delays on the mainland. Chinas top producer has not experienced disruptions as of yet as it relies on real transport. Haidi we do have some breaking news now when it comes to huawei. The u. K. Government, officials planning to remove huawei from 5g networks from 2027. U. K. Telecom Companies Face a ban of new huawei kits by the end of 2020. That is according to people familiar to these plans by the government. We know the National Security council in the u. K. Is due to decide on huaweis role on national 5g networks on tuesday. We know conservative lawmakers have been pushing Boris Johnsons government to set a date for a ban. We have been hearing it could and as soon as the end of 2021. A person familiar with these plans say u. S. Officials will room u. K. Officials remove huawei from thats 5g network by 2027. Thatll get more details on as they come to us. But it is not looking good in terms of the future of huawei in the u. K. Lets get more on what we should be watching us trading gets underway in asia with andreea. On top of the geopolitical overlay, the coronavirus story, also looking for the trade data dump out of china today. That is right. China in the spotlight in terms of Economic Data this week. Investors will be getting a first glimpse of the post lockdown rebound, if you like. We get the trade balance today. Exports posting a minor decline ahead of gdp which is the key. A littlere looking for bit of positive growth after that historic collapse in chinese gdp in the first quarter. They are looking at the easing of lockdowns and policy stimulus for chinese gdp to move into positive territory. Investors have been looking through the second wave of outbreaks that we have seen, especially in the u. S. And in australia. And on the reopenings and how the economy is going to fair given that economies are coming out of lockdown. You saw the s p briefly erasing the losses this year and then pulling back. I think what also needs to be noticed is this recover is somewhat stalling amid geopolitical tensions you mentioned. Singapore also set to release its latest gdp numbers. How is that going to play into the markets . Andreea thats right. Singapore expect it to come out with those numbers today. Looking at a massive unprecedented contraction and annualized gdp from the previous quarter, about 36 . Having said that, we have the election in singapore at the weekend. The ruling party got another mandate. However, the weakest performance and 55 years with the opposition winning in parliament. What investors are looking at is this diversity in parliament leading to better policy reforms and expecting that to boost singapore equities. Up about 20 from a low in march and that is with government stimulus. Also, the reopening of the economy. It is something we have seen in markets around the world. Mulus from markets, governments, Central Banks try to help countries navigate the pandemic. Shery Andreea Papuc with the latest on market moves across asia. A major interview to put in your diary. Philippine Central Bank Governor joins us exclusively later at 11 a. M. In sydney. That is 9 p. M. In new york coming up, tech giants are facing the end of free use in australia. Regulators may soon force facebook and google to share revenue generated with the companies that created. Details ahead. Dont forget, if you are away from the screen you can find indepth analysis and the dates big newsmakers on bloomberg radio, now broadcasting live from our studio in hong kong. Listen via the app or bloombergradio. Com. This is bloomberg. Haidi australias competition regulator may force facebook and google to share revenue generated from news and Media Companies that created it. Paul allen joins us now with more. With so many people consuming the news they get through their feed, what is now being proposed . Paul this proposal is coming from the australian competition and consumer commission. It is working on some rules which we should see later in the month. Googlesaid, facebook, published free snippets of news stories on the platform and then would be forced to share the revenue generated. The whole thing is a symbiotic relationship that news content keeps users engaged in facebook and google gay there more data. It also gathers more data. In a way, it is a winwin. The accc saying theres no doubt that the net value flow goes to those big social Media Companies. Shery what do facebook and google think about this proposal . Paul they deny the central claim. Facebook says it is fundamentally incorrect about news generating longterm commercial value. They say it is fairly negligible and that was included in the submission to the accc this past month. Google makes a similar claim theres a very Small Economic value for news and the google search. What its going to boil down to is a question of how you determine value. Whatever australias rules and up looking like, it will be closely watched around the world and they provide a template for other countries. Haidi paul allen there in sydney. Lets get you a quick check of the latest business flash headlines. Shares in casino companys rally on monday as prospects brightened for the Worlds Largest gaming hub. Agreed to lift quarantine for travelers arriving from macau, opening the way for a resumption of gaming activity. Borders were closed in march, cutting off chinese customers and casino gaming revenue plunged by 90 . Chinese starbucks rival has named a new chairman and ceo in the aftermath of a scandal that nearly destroyed the company. Hes the director and the acting chief executive and replaces who was removed by shareholders. Google says it plans to spend 10 billion over the coming years on Digital Technology in india. The ceo told the google for india conference that the coronavirus has made it clear, the importance of tech and social connections. India has 500 million regular users, second only to china when it comes to growth. Fora has dropped plans new Cloud Services in china. Going to next, we are take a look at the Business Impact of the latest rising u. S. China tensions with the chair giving us her views. We have a lot more ahead in the next hour of daybreak asia. This is bloomberg. Haidi a very good morning. I am haidi stroudwatts in sydney. We are counting down to asias major market opens. Shery welcome to daybreak asia. To slidekets look set amid fresh u. S. China tensions and worries about the virus. Futures going to declines in tokyo and sydney although hong kong contracts go higher. Day traders pile in. It was a rare losing day grace dock that