Trading session in the u. S. Overnight. Hang seng will be the focus, down 121 point. Another choppy session after quite a comeback yesterday. Jakarta is muted right now. News they will be easing lockdowns in the capital despite the rising cases. Sydney leading the losses, down 1. 2 . Three in a row that have been strong, perhaps the pboc sending a message they will not use currency as a weapon. Onshore strengthened the most. Dollaryen, you are seeing that haven trade come back. As you said, the main market event over the next 24 hours is this presser by President Trump, he will announce u. S. Policy on china curbingijing passed freedoms in hong kong. His top advisers said china will be held accountable by the of ministration. Is it Wishful Thinking in the u. S. Administration to think maybe they can change chinas behavior and plans for hong kong . I think nothing is impossible, but this does seem extremely unlikely. If you look at all the actions beijing has taken, it is clear there has been a consensus reached high up in the leadership that more control, more forceful strategy has to be taken when it comes to getting hong kong under control. Tell us what happened, you were at the press conference yesterday. What was the message that was sent . What are the next moves from beijing . When the premiere was asked about the situation in hong kong, he gave a short, simple answer that china would continue to implement the one country, two systems policy. They would want hong kong governed by the hong kong people. How that unfolds in the coming months is unclear. The next thing that will happen we do the Standing Committee of the National Peoples congress will draft the details of the law. What the penalties might be for breaking the law. How long someone might be jailed for, things like that. As that happens, those are flashpoints along the way we could see more protests. Yvonne our Greater China executive editor. Lets note to first word news in new york. Good morning, japans performance fell by the most since the 2011 earthquake and tsunami as coronavirus rose. Dropping for a third month. Retail sales were badly hit in april, falling almost 14 year on year. Japans jobless rate holding up. On inflation unexpectedly on the rise. America is the latest global focus accounting for 40 of daily deaths from covid19. India continues to be a coronavirus hotspot in asia despite the widest National Lockdown in the world. Fatalities have quadrupled in a month, with infection rates climbing at a similar rate. Not peakavirus may until next month or july. Metro manila will lift stayathome orders while the rest of the country moves to more loose regulations. Taiwan is cutting its fullyear growth forecast as the pandemic we can demand from abroad and closes shops at home. 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. I am karina mitchell, this is bloomberg. Ahead, social media distancing, President Trump vents his anger about his tweets being factcheck. , strategist,ax lin Natwest Markets about currencies amid tensions rising between the u. S. And china. This is bloomberg. Tom welcome to Bloomberg Markets asia. Ofs bring you a quick check the latest business flash headlines. Workersart with nissan, will not accept a closure of plants despite the company saying the move is essential for its recovery plan. Yearsthe first time in 11 as the coronavirus pandemic for new vehicles, the Company Reported a loss of 6 billion. Rollsroyce holdings have been cut by s p global rates amidst the coronavirus and demand for jet engines. Its credit is below Investment Grade at doubleb. Rollsroyce said earlier this month it is cutting about 9000 amidst disruption in the aviation industry. The ceont, prada, says demand has climbed more than 10 in may, although far from a complete recovery. Delist atreason to the moment, and is focusing on new products and digital technology. The hong kong dollar and the ratese yuan, the offshore has been in focus amid geopolitical tensions between the u. S. And china. President trump will speak in about 24 hours and announced measures to punish china over the security law. Max lin, strategist, Natwest Markets is with us. Vogue,sk the question in is the dollar under threat as a result of these tensions . I like every other analyst will tell you the hong kong dollar pegged is not under threat, the new law on security does raise constitutional questions. From a financial and economic perspective, one country two systems will continue. The mainland government is systemsne country two will continue, and this law will improve the constitutional concern. It their perspective there is no real reason to break the peg. You will see some outflows, but those outflows are things beijing can make a deal with. As much as is twice hong kong dollars in circulation. Unlike back wednesday in 1992 when traders were looking to break the sterling attached to the deutsche mark, there is no way the market can force that on the hong kong dollar at this point. Tom the reserves are significant in hong kong. Weterms of offshore yuan, spoke about difference in areas for trump, he could be looking at targeting measures or removing special trading space for hong kong. According to those in line with some of those options for trump. Targetedrump does keep , or sanctions for individual chinese officials and does not focus on economic consequences for china or hong kong, i think it will not break in the shortterm, and will settle between 7. 15 and 7. 18. In the shortterm. If he does choose to rise tariff s, i think it will approach 7. 25, at which point the central ink, the pboc will step in order to stabilize the yuan. 7. 20 is it seems like the line in the sand. Linked thaties are could be vulnerable . 2019, you willin see a link between the korean wan. Nd the chinese korea has trade languages. Something the market will price in more weakness for the korean won. Volatility for korea will be less than what we saw in march when there was a demand for dollar assets. Since the fed has injected liquidity, i think it will be more subdued for some time. The won is in for a choppy few weeks. Yvonne i am looking at dollaryen, but we have been 7 handle, some. 0 say that as a sign of complacency and we are not seeing haven buying. Are their currencies that are underpricing the risk of these rising tensions . It is interesting the yen is not stable. That has to do with u. S. Equities seem to be ignoring what is going on in china and the u. S. As long as you get a u. S. Market focused on the reopening of u. S. Businesses and states, the dollaryen will also be stable because it correlates highly with u. S. Equities. In asia i do not think other currencies and what we are seeing in northern asia. Currencies the indian rupee could get stronger. It can strengthen further. Tom staying in Southeast Asia, what are your forecast . Is a big factor, tourism has dried up. I like it to weaken further, though it has strengthened on the lows we saw in march. Tourism is a big driver of what goes on in thailand. Gdp. F total tied thai gdp. Enter a sharp recession after this. It has maintained its covid19 cases on the low level, and the fact they are starting to reopen , i am in a more bearish spot. Trade in march and april, you do have some good news even though tourism will remain weak. About a choppy few weeks ahead for the korean won. Taiwan is a trade exposed island, country, to what extent is the divergence over the taiwan dollar and the won when it comes to trade pressures . The taiwan dollar is an interesting point. Taiwan is vulnerable to the u. S. China supply chain like korea, Multinational Companies realigned to supply chains outside of china. They are looking at going into taiwan. In 2019 the taiwan data held up well despite the trade war. I think that trend will continue. On top of that you have the taiwanese government that has done an excellent job containing the covid outbreak and situation in taiwan. A have had no new cases in almost a month. The Service Economy will continue and the taiwan dollar should outperform the korean won. , have a greatn weekend. That was max lin, strategist, Natwest Markets. Coming up, President Trump is angry that his tweets were fact checked. How the plans revenge. [laughter] this is bloomberg. Yvonne to watch the movement we are seeing in the philippine markets, airlines are flying on the prospect that the nation is opening up. They are easing some restrictions. Philippine air ready to resume flight in june according to a statement we just got. We are seeing the airlines light up. Some local air travel is allowed. They are reflected in the manila markets, the only outperform her for the rest of asia. The peso gaining on the back of the news also. Tom lets switch focus to wall street. During the pandemic citigroup is looking to expand business in asia. Its ambitionsbed in asia, nor has the governments move to curtail rights and freedom in hong kong. The ceo spoke exclusively to bloomberg earlier. This stabilization will be an important thing we have gotten through this, and we have been able to start to bring things back more towards the norm. Really what i want to see is the isardant to normalization the return to normalization. And we do not know in the fall whether the Health Care Experts are right or not that we may see a resurgence. From our perspective we will keep a watchful eye toward that, and take it as it comes, and try to make sure we are there to support our clients through this. A large and historic business in asia, but a lot less at stake in china than other foreign banks. Are you reconsidering some of your expansion plans in light of the tensions, and great mistrust in the west of chinas intentions . Place where we have been coming to work for over a century. It is an important part of our global network. Clearly, china is a big and important piece of that. And you think about the places where we come to work every day, up one day and say we do not want to be in these places. We listen to the places important to our clients and the things they want to do. China is an up one day and say important economy, many u. S. National companies, and we want to be there to support them. Asia is an important place. We are committed to asia. China remains an important place for a big number of our important clients, so we will make sure we are there to support them. Will you reconsider your footprint in hong kong if the Chinese Government go ahead with laws that appear predestined to limit freedom and liberty . We have been in hong kong a long time, over 100 years. It is an important place for us, a big hub for our business. Between some of the political challenges and Health Care Challenges a has not been easy, but we remain committed to hong kong. Citigroup ceoas with our colleague, erik schatzker. President trump is taking his attack on social media and twitter to a new level. He issued an executive order that could pave the way for strict control of the entire industry after twitters decision to fact check two of his tweets. One egregious example, they disagree by selectively applying a factcheck. What they choose to fact check and ignore or promote is nothing more than a political Activism Group, or political activism. It is inappropriate. Yvonne lets bring in su keenan. Tell us how and why trump wants to limit the protections social Media Companies now enjoy. Su the why has to do with a lot of what you mentioned, the president is outraged that twitter recently fact checked two of his tweets. Trump relies heavily on twitter to connect directly and bypass the media to connect with his millions of followers. He threatened he would shut twitter down if he could, and the executive order was expected. In a lot of social media stocks, and what it seeks to do is give away the Liability Protection all social Media Companies have if they are sued over content. It is important to point out that Companies Like twitter and they spoke are protected under the Communications Decency act, which was written a long time ago, well before social media was widely used, and Companies Like facebook and twitter were hugely powerful and profitable. What the president is honing in something all230, the Media Companies are aware of. , itt were to be rewritten would effectively regulate these social Media Companies in a way they have never been regulated before. The president saying he wants these companies who possibly engage in what he believes is censorship for political conduct do not have what is now a shield against liability. You would have thought President Trump has more important things to deal with than attacking twitter. He is very angry, what triggered that rage . Why is his order illegal according to some people . Su at least one observer is calling it unconstitutional and considered. A president cannot attempt to shut a private company down, and trump himself expects considere. A president cannot the order to be challenged in court, or the new regulations that may result. The president came out and said, i would shut it down if i could. Is the important here trigger event was these tweets President Trump put out about mail in ballots. Many states want to send in mailin ballots for the upcoming elections, including the fall election, in the event the covid crisis continues and people are more comfortable mailing in their vote. The president says this can result in fraud. Thoser labeled tweets as misleading. President trump has use twitter to say president obama was born in kenya when he was born in the u. S. Yvonne su keenan joining us from new york. Plenty more to come. This is bloomberg. There are times when our need to connect really matters. To keep customers and employees in the know. To keep business moving. Comcast business is prepared for times like these. Powered by the nations largest gigspeed network. To help give you the speed, reliability, and security you need. Tools to manage your business from any device, anywhere. And a team of experts here for you 24 7. Weve always believed in the power of working together. Thats why, when every connection counts. You can count on us. It is 10 29 a. M. In hong kong and shanghai. Im Carita Mitchell with the first word headlines. Chinas rubberstamp lawmaking body has approved security laws for hong kong defying u. S. Criticism and saying it ensures fund metal freedoms in the city. The Peoples Congress voted overwhelmingly for the measure, which outlaws subversion and foreign enter vegan. And foreign intervention. Infectionsnavirus are approaching 6 million with deaths nearing 350,000. Although the rate is continuing to slow. Are declining. Latin america is the latest global focus, accounting for 40 of daily deaths from covid19. The European Union says the u. K. May have given up on a brexit trade deal, admitting progress is proving to be tough. The trade commissioner says there is little optimism. The u. K. May have decided there is not going to be a conclusion. Tell your to reach a deal by the end of the year would see the u. K. Leave europe with no deal. Investigators have recovered the flight recorder from the plane that came down in karachi last week. All but two people died when the airbus crash into a residential neighborhood. Reports saying air Traffic Controllers were concerned that the plane was not making a proper descent. Global news, 24 hours a day, on air and on quicktake by bloomberg, powered by more than 2700 journalists and analysts in over 120 countries. This is bloomberg. Yvonne as she has just mentioned, the number of workers on Unemployment Benefits in the u. S. Has shrunk for the First Time Since the pandemic spurred more than 40 million layoffs. Lets get the kathleen hays. Some good signs here in the latest print. What are the signs for the recession and where it heads next . Kathleen the hope is as one of the key elements of the report got a little less bad that maybe we are starting to see signs that the worst of the Great Lockdown recession is behind us because continuing claims is people who have been on an implement benefits for at least four weeks. They lost their job, have not found another one and cannot get back to work. The fact that continuing claims actually have started to come up, people are saying maybe it is the early days of maybe a rebound. , maybetart reopening some businesses are hiring again. Do not forget that jobless claims continue to be in the millions instead of the hundreds of thousands. 2. 1 million in the latest week. You can look at this chart and see two things. The greenline shows the chart for we believe for weekly jobless claims. That is down to 2. 1 million in the latest week. The white line went up so sharply. Continuing claims now to just over 21 million in the latest week. A nice new down. Know the massive layoffs we are going to get the jobs report friday afternoon. Unemployment has seen 19. 5 in may. That is a pretty big jump. Looking at the gdp numbers today for the First Quarter, they are revised quarters revised numbers. Revised down to 0 in the First Quarter. Initial read was 4. 8. Shows thatrg survey on maybe shows that on average, people are looking at a drop of 37. 5 . We still have they could damage in store. Durable goods give us a sense of demand. Manufactured goods, etc. Down to the second month in a row. Two month, double digit. Tom what have fed officials been saying about the data . Kathleen there is some hope. One said the economy has likely