York as u. S. Inventories declined. And coffee slumped on its return to trade. Unease there. Lets get you started with a quick check of the markets trading at the moment. We are seeing u. S. Futures opening slightly higher. This of course after the regular session saw the sapp 500 climb to a 10week high. We have optimism over reopening of different economies. Not so much in key retail earnings showing signs of resiliency, so we have those and target reporting sales that top the estimates. The sapp 500 really erasing all of tuesdays losses. And really the gains being pretty broad. Were talking about financials, industrials and Energy Leading all 11 sectors higher. The sapp 500 more than up more than 30 since its march low. The nasdaq composite at the highest level in more than 12 weeks. Oil, we saw another day of gains for w. T. I. , gaining ground for a fifth consecutive session. Right now under a little bit of pressure but still at around the highest level in almost 10 weeks as we continue to see signs that the market is rebalancing. Here in the u. S. , we saw data showing that crude Oil Inventories declined for the second week in a row. Not to mention the biggest drawdown when it comes to cushing oklahoma stockpiles. We have a check of how markets in asia are setting up. Asian futures are largely pointing higher. We could resume gains in the region where value wrigses valuations are edging closer to precrisis levels. Japan, china and australia have already bounced back on that metric with the asx 200 eyeing februarys record and still looking pricey amid the earnings uncertainty. Flipping the board, with the dollar turning weaker after the fed minutes and the e. C. B. Dolling out funds under its new liquidity program, the yen looking steady, ahead of trade figures in japan. The offshore yuan holding a threeday gain. The kiwidollar trading at 61. 46 after apple forming on the [indiscernible] suggesting the market may be getting ahead of itself, pricing in a negative cash rate next year. But subzero rates very much remain a live topic. The b. O. E. s Andrew Bayley did not rule it out after the u. K. Sold its first negative yielding bond. And the pound easing its overnight gain, that was sparked by bets on lower rates. The central bankers worldwide will consider unconventional policies, concerning are rising over monetary financing perhaps ecoming a reality. Were going to stay on that theme. The fed, the bank may not be looking at negative rates to combat the pandemic any time soon. Over the past few days has been steadily kind of given the narrative of crushing that ex protecttation but in the april minutes, the fed members saw a Severe Threat to the economy and even Financial Stability in the u. S. Lets discuss more now with the former advisor to the president of the dallas fed and currently Quill Intelligence c. E. O. And their chief strategist. Always a pleasure to have you on with us. Is it an inevitability given that rates are just barely managing to keep above zero and you have action over the e. C. B. , the b. O. E. , obviously new zealand is talking about it as well. In this environment is an inevitability that well get to negative rates in the u. S. . I dont think that it is an inevitability for every other country with the exception of the United States. I think negative rates are more practicable in other countries because they take the riskfree rate associated with the u. S. Treasury. And kind of plug them into their financial models. I think that doing that with the worlds reserve currency carries with it a lot of risks that chairman powell has tried to spell out in recent appearances and in his recent congressional testimony as well. To say nothing of what it would do to the banking system. And i would add there that there has been a unified front among fed policymakers. There were several bob cap land was on today on bloomberg, reiterating that negative rates are not a path that the fed is going to be pursuing. So i think other countries can go there, i dont think the United States can. Is [indiscernible] the next probable or sensible step for the fed . Short ink that we give solicit to brain ard. She laid out a exrehebsive plan and weve seen that play out ast year with the not q. E. Buying treasury buildout to two months. Her blueprint, if you will, does entail the next step being yield curve control and thed a mans that jay powell has spoken with of late, that the fed has in no way exhausted its liquidity ammunition, also suggests to me that if there was to be a pullback in the stock market, which nobody could foresee on days like yesterday and today, but if there was to be a pullback in the stock market, i think the fed would take this step of buying e. T. F. s as the bank of japan has done, of buying stocks before even considering negative interest rates. Yes, yield curve control, potential to buy u. S. Stocks as well. Lets talk about that unprecedented support that we have seen from the fed. Of course not only throwing in the kitchen sink but really much more. This is what Robert Kaplan had to say today. Take a listen first at what would happen even if the fed comes with all of these measures, because potentially we could see a fundamental change in the economy. With businesses reopening, i think you can see a good, slow, steady recovery in the third and Fourth Quarters. Fiscal policy will help, the fed programs will help. But ultimately money is not going to get consumers to engage in behavior theyre not comfortable with k and i think we could spend a fraction of what were spending on testing. On what will the economylike like postpandemic . President cap land knows what kaplan knows what hes speaking about. Were both here in dallas, texas. Restaurants here are opened up at 25 capacity as of friday. Bars will be open, restaurants will increase to 50 capacity. But again, you cannot force consumers into that Comfort Level and i think a lot of businesses have been surprised at the reopening efforts theyve made and the consumer has not shown up. The reason were talking about the Third Quarter and the Fourth Quarter and the fed actually going so far as to say that it may place an end date, it may place a promise end date on when at which rates will stay at the zero, has to do with the fact that theres so much uncertainty about when the u. S. Consumers going to feel that confidence. We see cases coming down on a nationwidebased. But if you net out new york and new jersey, the other 48 states, we definitely have not begun to flatten that curve. How important will it be that in this recovery, Small Businesses take the lead . Because yesterday when we heard chair powells testimony in congress, with, we had heard these questions about Small Businesses falling through the cracks, they were too large for the p. P. P. , too small for these fed lending facilities. Well, and thats going to be an increasing problem and i ink that that is the command fed policy cannot press. You cannot print payrolls and jobs. The fact that so many Small Businesses have quickly fallen through the cracks, because of a lack of cash flow, because the p. P. P. Was not able to give them relief, because of the way their businesses were structured, or the way their employees were classified, this is what is going to cause, i think, a protracted slowdown and a protracted stagnation in the recovery. You cannot bring back these jobs quickly once these companies have gone out of business, faced with bloomberg had a great interview a few days ago. Facebook surveys 86,000 companies. 1 3 of them are not planning on reopening once the economy, where they are, does reopen. Thats a big number. We heard that the Senate Approved new legislation that potentially prevents some Chinese Companies from lifting in the u. S. Ist i listing in the u. S. Are we setting up for another round of the trade war before the phase one deal was even fulfilled . And is this going to be the case going into the election and how much does that potentially derail not just the u. S. Recovery, but a Global Recovery . Well, i think it does throw a big wrench into the Global Recovery. People forget that in 2019 world trade was negative on a year over year basis. That would typically have indicated that the Global Economy was already in recession. This is the last thing we need and of course more than 116 nations, i think, at last count are backing australia in its moves for an independent inquiry into the origins of the coronavirus. And that means that we could not just have trade tensions between the United States and china, but rather china actually begin to impose tariffs on other countries and that would be extremely problematic. Especially if it was under the auspices of garnering political favor here in the United States, because it is an election year. Thanks for that. Always great having you with us. Former advisor to the president of the dallas fed and Quill Intelligence c. E. O. And chief strategist. Still ahead, muddy waters says a substantial number of u. S. Listed chinese firms are committing fraud. Our interview is come pping you. Plus the u. N. Says the pandemic may push 130 Million People to extreme poverty. Assistant secretary general and chief economist joins us at the bottom of the hour. Bleg bloomberg this is bloomberg. Youre watching day break australia. First word headlines. Global coronavirus cases are approaching five million with reported deaths now near 325,000. There are signs that the pandemic is changing, complicating efforts to restrain its spread. President trump says americas ground ball reopening means he may reschedule the upcoming g7 meeting to a face to face event at camp david rather than a virtual discussion. He says the u. S. Is on a transition to greatness. Japan is to lift the state of emergency in osaka and some other areas. Although the restrictions will remain forced in tokyo. The government is to announce the move after a Cabinet Meeting on thursday. The coronavirus has devastated many parts of the economy, with visitor numbers plummeting. April arrivals total less than 3,000, a slump of 99. 9 from a year earlier. And the last governor of hong kong has added his support to democracy demonstrators saying that they should stand up for their beliefs. Chris pattin was addressing the Foreign Correspondents Club remotely on the citys future saying he has no problem with china but criticized the communist party. Hong kongs economy has collapsed amid months of street protests and the fallout from the virus. When will the chy where will the Chinese Communist party be in 2027 . I dont know. Jinping is going to live forever, i doubt whether it will be the same today as then as it is today. And i dont myself believe that you can kill or lock up an idea. And Chinese Companies listed in the u. S. Fell on warnings they now face tougher scrutiny about their finances. Alibaba and other stocks slumped after reports the senate has passed legislation banning chinese firms from lifting or raising money from u. S. Investors. The bill accuses the communist party of cheating stock exchanges and said the u. S. Cannot let foreign threats take root. A company that invents 30 of its revenue is considered real. Because if youre taking other peoples money in china, i mean, theres an expectation that theres some level of fraud. Global news 24 hours a day on air an on quick take by bloomberg, powered by more than 2700 journalists and analysts in more than 120 countries. This is bloomberg. Lets get more on the senate bill which could lead to the delisting of Chinese Companies like alibaba. Our congressional government reporter joins us from washington. So this was really overwhelmingly passed in the senate, another sign of rising bipartisan support against beijing. Absolutely. This is not the first bill that weve seen in the last month, that senators have been using to send a message to china. Remember, there was one a couple weeks ago about uber rights. Another interesting thing to remember is the bill has passed the senate but its not officially law. It would need to pass the house and at this point we havent seen a bill introduced into the house that would allow that to happen. Doesnt mean ones a not going to happen but thats sort of where we are right now. Ones not going it happen, but thats sort of where we are right now. Were also hearing about this 20page report that really kind of issues a broad scale attack on what it sees and what the white house sees as beijings predatory economic policies and military buildup in the south china sea. Propaganda campaigns. What more do we know about this report and does it potentially signal a change in u. S. Foreign policy towards china . I think with this report, its just one of so many things that weve been seeing and hearing about in recent weeks. In regards to the u. S. And chinas relationship and how its being impacted by coronavirus. Both countries have been notching up tensions on each other. You saw secretary pompeo today breaking previous tradition to congratulate taiwans president on her reelection. That is not something that has precedent in the past. Youve seen back and forth on the world health organization, youve seen back and forth on trade. So you havent seen a lot of clear and concrete steps taking yet that would fundamentally change the relationship. But you are seeing this continual back and forth tension over multiple issues. We continue to see this pushback in the back and forth between china and the u. S. What does this all mean for the phase one trade deal that washington and beijing struck . Of course we had already heard that perhaps beijing was really lagging on their on actually committing on their commitments when it comes to agricultural purchases. Yes. That was something that was sort of mentioned. I think even at the beginning of the bill it was pointed out sort of how much they would have to buy and there were some questions over whether or not that would be doable. But the other day we did hear a white house advisor come out and say that the chinese deal is still on, that the trade deal is still going forward. So at this point we havent seen any sort of official secretary ofering of the ties or any official saying its not going to happen severing of the ties or any official saying its not going to happen. We havent seen anything oncrete at this point. Emily wilkins, our congressional reporter there with the latest in this trade and diplomatic war thats brewing. You can get more on the intensifying tensions between beijing and washington in todays edition of day break. Bloomberg subscribers, go on your terminals and its on the mobile in the bloomberg anywhere app. Coming up, wall streets own reopening plans are starting to take shape. Everything from staffing limits to shift to suburban outposts are on the table for the postlockdown era. Well get the details next. This is bloomberg. The latest after the bell earnings reports underscore how brutal the pandemic has been for retailers. And how beneficial its been for those selling stayathomerelated products. Were joined now with a wrap of what were seeing. Were also witnessing these changes at the big banks but lets start off with the afterhour action. Yeah. A real mix of reports. First from travel online booker x feed peadia. N line with expedia came in with a loss of 1. 83 a share versus the estimate of a loss of 1. 45. The company said it saw unprecedented cancellations due to covid19. In fact, gross bookings fell as much as 90 in the second half of may. Notice limited l. B. , which is the owner of victorias secret, also taking a hit. Take two interactive is an online what they are is a video gamer that saw its sale surge. Its shares falling after hours but it reported across the board increases. Taking a closer look at, again, the Parent Company of victorias secret and bath and body works, they saw a sharp decline in sales that is typical of what were seeing with a lot of the big box retailers. Much bigger than expected losses. And taketwo interception taketwo interactive saw its use of video games soar pretty much across the board and they have some very big franchises like grand theft auto and red dead three and they say the pipeline is Even Stronger and so that company enjoying much better than expected sales because the stayathome orders really encouraged the use of their products. Big banks making some big changes. Relocating staffs outside the city. This seems to be a trend that we have seen even before the pandemic. Yeah. There had been some talk of that. When you consider the huge real estate price of these skyscrapers in manhattan, where the big banks are located. Nd now the question of how theyre going to be using the elevators, if they have to have people pushing the buttons. Now we hear citigroup is looking at relocating staff to various suburban offices. Jpmorgan already clearing away personal belongings and talking about perhaps only having about half of its staff come back. And Morgan Stanley had been one of the First Companies in the financial business to talk about how they saw a completely different use of desks and office space in the city, when the lockdown orders were lifted. Again, this is both a real estate and cost decision as well as a concern about how their staffs that work in tight quarters, often on trading floors, within the banks and close desks are going to feel in terms of comfort and safety, as this covid threat continues. So big changes in the bank, what theyre calling the postlockdown era for finance. Su keenan with the latest on earnings. Thank you. Lets get the check of the latest headlines. Chinas starbucks rival plunged on returning trade to new york after being told its being delisted amid a scandal about fake sales. Lucky coffee has been suspended since early last month when it fell 80 that new Senior Executives had fabricated sa