On in hong kong with china over the weekend saying the security law could override hong kongs legal system. We she we see shares on the hang seng. 23,469 for the hang seng. The csi 300 pointing positive. Showing the resilience across these benchmarks. The kospi as well, we did get those export numbers. A slump easing a bit. Not very encouraging when it comes to exports of chips. Only a gain of 2. 6 . We saw a 13 advance in may. Perhaps this recovery is in an early nascent sense. The p cop, lowered by 910s of 12 . A decision coming through bank of centro and the rbnz later this week. Later on when it comes to assets, the disappointment has been with the china lpr, which they did not do anything. Given the credit numbers we have gotten, perhaps it was reason to pause. The selloff in bonds, are we going to continue to see that change . Ozzie yen, you are seeing a perk up aussie again, you are seeing a perk up. The dollar is rising for a fifth day. We have seen some flareups in australia. The state of victoria extended its state of emergency. We see oil backup and it comes to brent. Linese have breaking crossing the terminal regarding the former National Security advisor. It is expected to be published. The South Koreans pushing back on some of the claims in that book. Nhap. Is according to yo saying that boltons book claimed the security advisor came up with the idea of a trumpkim summit in singapore and he reached out to kim jongun first. It seems the National Security advisor is saying that is not true. Some lines crossing relating to this book by bolton. There has been a number of explosive allegations and claims by that book. Its get more details on the National Security law in hong kong. China confirming the new security law will allowed beijing to override hong kongs independent legal system. The details had been kept under wraps until this weekend when a draft bill had been made public. Lets bring in our government reporter. For you, what were the Key Takeaways for the proposed bill that you read through over the weekend . Everyone had been waiting for details. It had been hanging over the city like a dark cloud. What are the most important things like you say, this law will trump those laws and override them. That is a serious blow to the judicial independence. One of the other important points is the new National Security law will allow china to set up a Security Bureau in the city. There has long been rumors that Security Forces were operating discreetly within hong kong. Some people have disappeared before. There will be allowed to operate openly. That is something that is very concerning to people here. China did confirm they will take over some cases they say in exceptional circumstances. Vaguell remains which cases would qualify to be lifted out of hong kongs jurisdiction. That has raised a whole bunch of concerns about extradition. Ideas in the proposed bill last year prompted more than six months of often violent protest in the city. There is a lot of concern about the law. Details have come out. They areme time, still very vague. There is no clear definition on what constitutes these crimes. A lot of the details are cleared up. Some questions raised some more. Yvonne the law also had some details about which judges would try the case. Where does that leave the judiciary . Exactly. The details that came out over the weekend specified hong kongs chief executive, which is now carrie lam, will be allowed to appoint individual judges to hear specific cases. That is something that is not common. Usually judges are allotted or assigned a more senior judges assigned by more senior judges in the judiciary. We talked to hong kong lawyers. They say this is an unprecedented assault on hong kongs independent legal system. It raises questions on whether the chief executive of the hunk of hong kong would be appointing particular judges with viewed favorable judgment for the government because they would be prosecuting protesters or opposition activists. There is a lot of vested interest. That has raised a lot of questions about the ability of hong kongs independent legal system to withstand the pressure from the new National Security law. Tom are the activists and politicians aligned . Where they take things from here . Much commonpretty cause with trying to resist the them for mentation of this bill. They will probably there will probably be more protest. At the moment, it is not clear what they can do to stop it. Obviously, they have been calling for international pressure. The u. S. Has threatened china with retaliations. Potentially even revoking hong kongs special trading status. There are a lot of things hanging over the air right now. Weeks,ave seen in recent the new proactive stance from the Hong Kong Police has meant that some people are a little afraid to show up some of these protests because the chance of being arrested is going up. Yvonne over the weekend, we saw the failure of the labor unions and students. Not enough support was gathered to strike against the National Security laws. That was our government reporter with an update on the National Security draft bill. Lets go to the first word news. Thank you so much. President trump is planning to restrict employment visas, which could affect up to a quarter of a Million People seeking to work in the u. S. Trump plans to put curbs on several visa categories including the h1b program and the l1 for managers transferring within their own company. Italy is preparing to seek a wider budget gap as the government draws up a reform plan to lobby for e. U. Assistance. Prime minister Giuseppe Conte will focus on Infrastructure Projects such as highspeed rail and may cut vat. He says a wider budget gap may be needed as italy does not have the resources to cope with the fallout. Singapore is positioning itself with a massive investment in innovation beyond the immediate support announced for struggling businesses. The government will set aside 14 billion u. S. Dollars to support research in high impact areas such as health and biomedical services. It is part of an r d plan being finalized. 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. Have plenty more coming up including beijing flexing its muscles with a proposed National Security law that overrides hong kongs independent legal system. We are going to speaking with who is a shi yinhong leading policy advisor to chinas state council. Yvonne governments are gradually easing lockdowns. Markets remain vulnerable. Pacific cio says how she is navigating right now. This is bloomberg. Yvonne trillions into the World Economy. Investors are setting their sights on what could be the next big thing. We are talking about yield curve control. We have seen it with the boj and the rba. Perhaps we could see it with the fed next. Joining us to talk more about markets is the conning asia pacific cio. Thank you for joining us. This whole prospect of yield curve control, do you think this could go global and you think it could be a good a bad thing for markets . Yes, there are times before that will make us feel we have to watch the strong end of the curve. We do not think for now this will be a threat. Is the easing cycles are not over yet. I think probably, we should not be expecting action in the near term. That has been a lot been done in a short span of time. The economy is going through a reopening stage. We will see how the economy reopens. Control. Cluding isending on how the economy formed. Yvonne how are you viewing risk at the moment . After this massive rally we have seen since march, we peter out a little bit. Do you think markets could correct more or do you think this is a pause in an uptrend . Siew mee for what we are seeing, the surge between midmay may and early june, that is unlikely you see a repeat. What we do expect for the next couple weeks as for the market. It creates more of a consolidation phase. Probably around five to 10. Beyond that, i think what is important will be whether we get more stimulus from the u. S. It is currently pricing in some of that to come in july. What is going to be interesting this sector is how the reactions pan out to be. This premium will be volatile. Isimately, very important the cyclical recovery, which is not expected to be strong for this recovery cycle. In that sense, i think markets [indiscernible] having highnot expectations. It is going to be key as a liquidity. Backdrop against what is going to happen. Markets can continue to climb. Tom continued to climb the wall of worries. If Central Banks continue to provide a backstop, what it is looking like i need a credit market . Is there still an opportunity and if so, where you want to be positioned . Siew mee [indiscernible] bonds being in negative territory. That is a big challenge. The u. S. Dollar credit market is happy to be positioned. An investment rate bonds. It will go down to how you create 6 . To backstop as a mentioned, the Central Bank Policies are the fed or the ecb. We are expected to be saving around 10 buric around 10 million bureaus policies are aimed at keeping Credit Conditions loose. And prevent unnecessary credit strains. Comfortable to be positioned. One driver you see is this attraction of Corporate Bonds globally, especially the slo bonds. Investors from japan and taiwan. [indiscernible] the u. S. Dollar credit more [indiscernible] and you think there opportunities in European Assets as well . Run us through the value gap between u. S. Assets and European Assets. What are you looking at in particular . Been europe has one of the overriding risks hanging over that area is the potential eurozone. If you look at how things have developed, that has become much more remote. [indiscernible] what is new and important is the fiscal integration we are getting. With the introduction of the new Recovery Fund. These are all very positive changes we see. Window opening up for European Assets to catch up. We have the opportunity across europe. They are nice pickings from equities. Also going to faced income among Corporate Bonds. Also looking into the Government Bond space. Tom we have to leave it there. Thank you for your insight this morning. That is conning asiapacific cio siew mee yeo. Coming up, an exclusive interview with the south korean wealth fund cie. He says they are prepared increase equity positions if there is another shock to global markets. This is going test this is bloomberg. Tom south koreas 157 billion wealth fund may add to its Equity Holdings if there is another shock in global markets. We spoke to the korea corp. Investment chairman about where he sees opportunity in the markets post pandemic. We believe that given the high equity valuation, we think there might be some limit for the market. Might be better to prepare another market location for the time being. We are more cautious at this stage. Run, ong [indiscernible] what do you think the next downturn or the next uptick in this market will be driven by . Obviously, most Market Participants think that maybe the second wave if we can prevent, fully overcome the coronavirus, then prevent the Second Market. Second market fallout. I believe due to the central backstop, [indiscernible] to be frank with you, we have no idea when is the right time. At this stage, we are happy about the current situation. Made have you made major changes to your report folio since the start of the pandemic . If there is a second wave, we obviously reconsider our location. If there is some other markets shock, it may be further developing in other locations for equities because you might see further potential in the equity market. Korean that was the investment corp. Cio heenam choi. The whole event starts at 1 00 p. M. Local time today. Im going to be interviewing charles lee from the Hong Kong Exchange ceo and ross mcewan. Lets get to the latest business flash headlines. And tendo is retreating from the 77 billion mobile gaming arena after disappointing results deflated its once lofty ambitions. The president said two years ago that smartphone gains would be a billiondollar business with growth potential. Last month, he said he is not looking to release mobile applications and will focus on the switch console. Bloomberg is told that softbanks chip unit arm fired the head of its venture after a set up an investing firm. Alpha ay he launched common move already had such a fund. Lets check in on how the markets are playing out at this stage. We have the details over the weekend on the security law in hong kong. You have the hsi done 2 10 of 8 . Small caps in china continue to perform strongly. The kospi, we have the trade data out of x export data out of korea for the 20th. We can move it onto the next board. Were looking at oil and gold as well as some of the currencies. Gold is up 6 10 of 1 . Oil also performing slightly better after concerns about demand. Plenty more ahead. Stay with us. This is bloomberg. You say that customers make their own rules. Lets talk data. Only Xfinity Mobile lets you switch up your wireless data whenever. I accept 5g everybodys talking about it. How do i get it . Everyone gets 5g with our new data options at no extra cost. Thats good. Next item corner offices for everyone. Just have to make more corners in this building. Chad . Your wireless your rules. Only with Xfinity Mobile. Now thats simple easy awesome. Switch and save up to 400 a year on your wireless bill. Plus get 200 off a new Samsung Galaxy s20 ultra. It is 10 20 9 a. M. In hong a. M. And shanghai 10 29 in hong kong and shanghai. Coronavirus total infections now about 8. 8 million. Cases in several u. S. States jumped, with one Infectious Disease researcher warning of what he called a forest fire of cases on the horizon. Spain has been hardhit by the virus, but it is lifting restrictions. Early south korean trade figures show an easing of declines. Daily shipments fell 16 in the first 20 days of june from a year ago, which was an improvement from the 20 declines in april and may. Semiconductor exports increased by 2. 5 . The International Monetary fund is to further downgrade its view of the World Economy this week, just two months after predicting the deepest recession in 100 years. The rescission revision may be more pessimistic than aprils statement. The only bright spot is the feeling that some countries might have passed the worst of the coronavirus. Ina is to join initially stayed back from the treaty, but it has now decided to sign following president trumps decision to withdraw. More than 100 nations have signed the accord thus far. Indias virus lockdown saw oil reports imports slump. The lowest monthly total since february 2015. India is the Third Largest oil market in the world. Consumption dropped by up to 70 at one stage in april. Refiners normally import about 85 of their needs. Bybal news, powered journalists and analysts in more than 120 countries. Lets do a quick check of the latest of the markets. We are basically treading water when it comes to asian equities as we kick off this trading week. Slightly higher for asian stocks, pretty much flat. At least u. S. Futures have reversed the earlier losses. We are punching higher now. Nifty is heading the opposite direction. It could be a rough section it could be a rough session in mumbai. Theres a lack of conviction in the markets as we try to reassess this rally we have seen since march. U. S. 10year yields are unchanged, but we have seen four days where yields have ticked lower. The dollar is gaining a little momentum here. See some weakness in the rupiah, the korean won, still reactive to those export numbers out of south korea today. The export slump seems to be easing. Not as good as the main numbers may numbers. Oil higher by about 0. 5 . Tom lets get some reaction now from someone who has the ear of chinas leaders when it comes to their security law. China saying its new National Security law will allow beijing to override hong kongs independent legal system. That is shedding new light on a move that has stoked tensions with the u. S. And threatens the citys status as a top financial center. Lets discuss this and more with shi yinhong, a professor at min university of china. He recently took aim at the diplomats,arrior saying aggressive nationalism is driving the world away from china. Professor, thank you for joining us this morning. Your reaction to the details we got over the weekend regarding the security law . I believe that they have laid [indiscernible] National Security for hong kong. [indiscernible] [indiscernible] chinese Central Government [indiscernible] professor, a big question around this law is how it is interpreted and how it is put into place. In terms of the mainland and its own security law, theres a pretty broad scope, and of course weve seen lawyers and human rights activists and some journalists detained and punished here on the mainland. How broadly do you think the authorities will interpret this law once it is put in place in hong kong . The Central Government of hong kong [indiscernible] this should only touch a very small percentage of the hong which only, among minority a very small [indiscernible] as a could be interpreted against the chinese National Security in hong kong. [indiscernible] processis still in the of [ind