Several u. S. States report record numbers of cases. States reconsider plans to open. To data inadds australia. Shery lets get started with how u. S. Futures are kicking off trading. We are seeing them down. 1 after u. S. Stocks ended in positive territory but off session highs. We have speculation congress will seek additional stimulus. We also have some positive manufacturing data, although not in expansion territory as of yet. The s p 500 finished at the highest level in almost two weeks. Consumer discretionary and tech lead the gains, and the nasdaq composite again finishing at an alltime high. Eight sessions of gains boosted by apple and amazon as well. The dollar declined among most g10 are his. We did get that positive economic data. Improvements not only in the u. S. But also the euro area. Take a look at what oil is doing at the moment. We are seeing wti falling toward 40 a barrel, under pressure right now, really falling from that threemonth high ahead of a release of a key u. S. Government report that is expected to show another increase in inventories. Paul it was kind of a weird day on a weird day on us trillion markets yesterday, things getting whipsawed around by Peter Navarros remarks around trade. For look at how asian markets are shaping up today, lets get to sophie in hong kong. Sophie asian stock futures looking mix, so we could be headed for a heated open after we saw u. S. Stock gains fade into the close, keeping an eye on tech as well after the sector helped to boost some of the events on wall street, and in japan, we are keeping an eye on retailers after early sales data from some companys signaled a post pandemic retail recovery. We do have two great decisions in asia with thailand and new zealand seem staying pat, and as our collie points out, with online bond by think even the yield curve flat, it could be has been in line with diminishing demand as funding stress has eased, given this massive liquidity injection we have seen from global policymakers, and pulling up this chart on the terminal, that targetn shortterm crust basis swaps keep steady with a small premium for the dollar, and as Central Banks scale back the emergency swap lines, thats expected to weigh on the greenback with shock swaps seen over the next two weeks. Remain, and that could spark a second round of widening. Shery markets watching those headlines very closely as we get new market cases continuing to soar across hotspots here in the United States. Daily infections reaching new highs in california, texas, and arizona, threatening to throw the reopening process into disarray. Top infection expert at than he felt he told lawmakers he is concerned by the spread. We are seeing a discharging and one infections, things we have seen is an increase in community spread. This is something that has been in the press over the past couple of days. A reporter who covers health care and pharma is on the line. E are not seeing an end really, the coronavirus outbreak not taking a summer break. That certainly seems to be. He trend honestly, it is not all that surprising, considering that some of the states that have seen these renewed waves started opening up, in some places, quite broadly without having really gotten their initial outbreak entirely under control, and when you have some level of the virus circulating in a community, even if it did not create an initial wave, as that the continue during is that opening continued, you are seeing the consequences, but also heading into the fall because it just makes any further openings, especially heading into a possible concurrent flu season even more difficult. Paul what was the impact of this resurgence going to have on plans to reopen the economy . Any responsible leader would take this as a sign rethink restrictions on reopening. Its pretty king lear its pretty clear from case growth in terms of testing, and terms of making sure businesses are complying with mandates, just working or that people were not you have to get that back in order. Theres also the fact that theres sustained spread in the community. People simply are not going to go out. They are going to do they are not going to do any of the Economic Activity they are hoping to prompt. There is sort of this dual economic sword. If you dont take action to sort of restrict it, you are just going to end up hampering the reopening anyway just by people trying to protect themselves. In phase two of the reopening in new york city, but how unique is the case in such a dense city . A lot of the cities see guidelines that are continuously being updated do not really apply. That is something that will be difficult, especially in later stages when you have people getting back to the office. The cdc recommendation is to avoid taking Public Transit if you can. That is simply not an option for most new yorkers, and then you get to the issue of schools where, you know, ideally you want to have some degree of distancing for students and staff, but, you know, if you have ever been to a new york city public school, the notion of getting hundreds of kids in and out of classrooms its going to be very difficult. I think the key Going Forward is to try to keep incidents as low as possible so that these activities, these you know, daily life, it is fundamentally a little riskier here can be as safe as possible. Paul thanks so much for joining us. Still to come, singapore has announced its timeline for elections just as the country enters phase two of its reopening. We get a preview of what to expect. Next, abba downings deputy so joins us Abbott Downing deputy cio joins us to talk about her outlook. This is bloomberg. You are watching daybreak australia. U. S. Treasury secretary Steve Mnuchin says he expects the economy to emerge from recession before the end of the year as the administration considers another round of stimulus payments in the coming days. Speaking at bloomberg investor global events, he says into resolution is being drafted and should pass next month and that he is confident in the recovery. I think you saw a recent employment numbers. We put 2. 5 Million People back to work. Clearly, this is the ppp working, and you saw great retail sales. I think you are going to see the economy had a very bad second quarter. I think they will see a spectacular rebound off the bottom in the third quarter. Isl the u. K. Government , calling onus curbs people to use common sense to keep the virus from spreading. Allowing hotels and retail to reopen next month. Johnsons optimism weakened by the message from his own medical advisers who say coronavirus still carries a threat. Now trustws just 23 beijing to act responsibly on the global stage compared to 52 two years ago. Confidence in xi jinping to handle World Affairs has almost half just 22 percent. President trump does not fare much better only 30 trust him. Shery lets turn to the markets. U. S. Stocks rallying for a second day tuesday but fading into close as concern arises that a spike in cases could curb consumer activity. The deputy chief Investment Officer at Abbott Downing joins us. For viewersrt showing how the economy has been stuck in that waitandsee mode. We are seeing the s p above the 200day moving average, but it seems the markets are looking for another catalyst for a leg higher. What could that be . Come as soon when earnings announcements start rolling in in a couple of weeks. Similar to what you saw in the first quarter, people will not pay much attention to the numbers but will pay a lot of attention to the commentary. You have Companies Really leaning in to changing their Business Models and rearranging reallyand acting proactively. You will get investors giving them the benefit of the doubt figuring that looking out on this years numbers, you have the potential to have some pretty strong earnings after resetting everything this year. Shery perhaps does it help that some of the weakest businesses may have already been weeded out, just as naturally what happened during a recession . We have seen, in fact, bankruptcy filings in the u. S. Total 117 for the first half of the year, but its the highest since 2009. Last week, 13 u. S. Companies seeking bankruptcy protection, and that would be the highest since the Global Financial crisis. Sort ofecession playing a cleansing role for businesses, and it could lead to, perhaps, a healthier market as well . It definitely is. You took any trends that were in place and gave companies a free pass to go ahead and accelerate business plans. Most investors understand that Company Margins are going to be hit. Company numbers are going to be hit, so this is the time to really drive aggressively into repositioning businesses because you are getting a buy for the quarter if you are a company ceo and strategic team. Those companies that have proven they can lean into that and do that and accelerate the Business Model rearrangements they were already in the process of doing really does to it up because as you mentioned, we have not had that good, thorough cleansing in almost a decade. Your point on earnings, we are seeing some pretty giddy price to earnings multiples at the moment, even if earnings season and guidance blows expectations out of the water. To what degree has the good news already been priced in . Is tough to talk about valuations in the next quarter or two because so Many Companies withhold guidance. Doesg to evaluate really not make sense, but i think investors are thinking beyond 2021 in thinking that if we had not had this pullback, we would be 11 or 12 years into the uptick and people would be wondering when the next downturn came and did not have the chance for nice, doubledigit kinds of. Arnings increases this last three or four months and the pandemic and resetting everything as hermetically as it has been allows you to rebase things and allows companies to be able to absorb some you know, there will be margin hits in what Companies Need to do to be proactive going into this new environment, rearranging supply chains and creating social distance. A lot of things will impact longterm margins, but the margins next year assuredly will have to be better than what they are going to be this year. Paul we were discussing earlier in the show this apparent resurgence in coronavirus infections, particularly in california and texas. Problem hasgue the never really gone away if we see markets not seem to care. Is the main game in town still the fed . Never mind whats going on, the liquidity tap is just going to stay on forever . That is what markets are tanking on and it is a little concerning because there are a lot of things out there, the president ial declaration on the hightech space is going to impact the tech industry. Its not like we are out of the tods and everything is off the races. Theres plenty to stay concerned about, which just means from an investor standpoint, making sure you are rebalancing regularly and understanding where you are on risk tolerances, it was less than 10 days ago we had in 1800point down day. Paul yeah, all right, carol schleiff, deputy chief Investment Officer at Abbott Downing. Blackrocks chief Investment Officer think the pandemic effect on Smaller Companies is yet to be seen. He spoke exclusively to bloomberg. We have spoken with five different governments over the course of the issues around covid. You mentioned the Federal Reserve, but for other countries we have been working with and designto help them policies related to boost their economies, to me, that is a division that we have been doing this since 1994. It is a segregated division organization, a component of our Organization Im very proud of. A good job. Do im not here to judge if we are too big to fail. We have been reviewed and reviewed and reviewed. Obviously, we are a large, important Asset Management company. None of the assets are our own assets. This is not our Balance Sheet. Unlike when people think about banks and insurance companies, it is their Balance Sheet that has people questioning it. Our clients can redeem in their. Utual funds and etfs daily position within society is very different than what a bank and Insurance Company is. Fma k we do related to we do this openly minded. When we were asked to take on these assignments, people asked what it would mean, will there be a society backlash, and i said we need to continue to do our job on behalf of the societies we work for, and we are winning this because of our expertise, and the complements we have received from our clients has been as strong as ever, so i will continue to try to position ourselves to be the best we can in helping more and more companies, more and more individuals, governments to have a better financial future, and that is what we are trying to do. 100 of our Business Model is a. Iduciary culture their Balance Sheet navigation must apply related to that fiduciary positioning. We have high standards have to pleasedunder, and im that we have been able to navigate this. 2020 was always going to be a big year because of u. S. China trade tensions, and election. Are we going to see a lot of volatility as the market works out what is important and what is not . I think its going to be very hard to cut out the noise. Dont have aill fundamental understanding. I dont know if we are going to have a severe rising infection rate for mortality rate. I hope we have antivirals quickly. I hope we have a vaccination quickly, but until we have those ues, until we are over until we have our a better understanding of the outcome of the 2020 election here and we know what is going on, we should expect a lot of volatility for the next year, but lets be clear markets have done quite well with all this uncertainty, cashheres a huge pile of sitting on the sidelines, and that money needs to be put to work. Blackrock chairman and ceo larry fink. Geraldine buckingham joins us on daybreak asia later on. Plus, dont miss our coverage of the last day of invest bloomberg summit. Hear from bridgewater. Ssociates cocio this is bloomberg. Paul singapore will hold an election on july 10 as the government seeks a new mandate with the coronavirus pandemic as the city state enters the second phase of lockdown easing following two months where schools and most workplaces were shut. Lets cross over to our chief Southeast Asian correspondent. What does this have to do with the timing of the election . Its not far away. Haslinda thats right. It is into it is in two weeks. Parliament has to be dissolved by january. Elections need to be called by eckel 2020, so the government was running out of time to hold this election. In an address to the nation yesterday, the Prime Minister said he is trying to seize this period of virus stability to hold the election. Instability as to when we will see the end of this pandemic, so he is really andg this years virus stability to hold the election. As you said earlier, we are in the second of a threephase emergence from the complete lockdown. In terms of timing, he said that we need a strong mandate right now to give a strong team the room to navigate the country in such tumultuous times. That is how he describes the challenges that singapore faces, not just from the fallout from fromirus but also geopolitics, the u. S. China tensions. Singapore, of course, a very open economy, and it will feel the fallout. Pandemic be an election issue . If so, where will the votes way . Haslinda it is expected to be a defining issue in this pandemic, how the government tackles the pandemic. Remember, singapore went from a virus hero to cautionary tale. It overlooked pretty much 300,000 Foreign Workers living in dormitories, which eventually led to one of the strictest knockdown stuns the world, but having said that, when you take a look in terms of infection, it top 40,000, but when you look at the death rate, it was less than. 5 , among the lowest in the world. When you look at economic response, singapore has been pretty steady, and implemented 4 stimulus packages, so it has reacted really quickly. Paul singapore has been governed by the same parties since independence. What sort of succession plans are in . Haslinda the mental fit to lead the country faces and a lot of challenges. Front and center, he has a lot of experience. He is the current finance minister, so theres a sense that we are in good hands. More one will have singapore in the next hour of daybreak asia. This is bloomberg. Watching daybreak australia. New coronavirus cases are surging across the u. S. Forcing local authorities to reconsider plans to reopen. Infections are soaring in texas, florida and arizona. California broke its record for new cases for a fourth day. Meetsropean Union Wednesday to discuss when to open external borders and may decide to exclude american travelers as long as the u. S. Europeans. O bar reports from north korea say kim jongun has put any potential military action against the south on hold. State news agency say he told them to suspend any moves against seoul. Tension on the peninsula remaining high. His sister has warned the norths next move would include the army. Twitter has hidden a tweet from President Trump for violating policies on their terms. The president posted a warning that there will never be a zone in washington, see adding protesters would be met with serious force. Twitter says that threat breaks its rules. The tweet is still there but it is hidden and users must click deliberately to reveal it. The movie industry is heading to new zealand as the nation presents itself as a virus free haven. Leading the way beginning shooting of the sequel to avatar with his 30 strong crew given exemption to enter a country that has been closed to foreigners for the past three months. The government okayed the move as the film will offer work to hundreds of new zealanders. 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. I am karina scott. This is bloomberg. Karina mitchell. This is bloomberg. Australia treasurers as worsening diplomatic ties with china will not be a factor to agreement. The joe pfizenmaier says he expects 90 of australias trading relationships to be free trade deals by 2022. He was speaking exclusively with haslinda amin. Haslinda australia has been a trusted partner in free trade agreements. Bilaterally. When we came to the government, we saw 26 of our two way trading relationships covered by freetrade agreements. Today, it is over 70 . The expectation is it will get to 90 i20 22. 90 by 2022. Thelayed a key role in conclusion of the transpacific partnership. We recently signed a deal with indonesia. Hong kong and peru. Other partners that are important for australia. We will continue to support freetrade because that was in australias interest and that is in the globes economic interests as well. Haslinda when it comes to this, shed some light and what the sticking points are and realistically, when do you expect those talks to actually reach a conclusion . Have lots of countries bilateral and multilateral trade issues. And they go across sectors. I will not get into litigating it right now but what i will say is we have put a clear interest when it comes to trade deals, whether it is movements of people or movement of goods and services and we will advocate for that behind closed doors. Haslinda we are talking about a new world order postpandemic. What is the biggest change the world will see post covid19 . Josh i think there is an interesting story about Global Supply chains. Durable theye and are in post covid pandemic. I think they are decidedly important, that provide economies of scale as well. But countries through this covid pandemic have seen themselves having to find what is called ppe, or other medical supplies at short notice. Whether they are the masks or indeed, whether they are the ventilators. Worst. Ared for the we went and bought 5000 ventilators in addition to what we currently have, expecting a surge in demand with covid. Twot now, we only have patients in an australian hospital on a ventilator as a result of covid. We are prepared for the worst. But fortunately, we have had success and progress. The importance of having a manufactureacity to certain goods in the event of a crisis. I think many other countries are having the same conversations within their own parliaments. Going forward, i think you will see countries be a little bit more selfsufficient in key areas. This is not an excuse. We very much benefit as a country, as a globe, from freetrade. We would not want to see additional selfsufficiency in some niche areas be an excuse for protectionism. Because i think that would be counterproductive. That is australian treasurer josh frydenberg, speaking there to coanchor haslinda amin. Seeking to capture the mood of the public, Australian Think Tank Lowy Institute has released its 16th annual poll and has found australians feel more pessimistic and less secure in the world than any point in the surveys history, and aussies trust in chinas in china has plummeted. A Research Fellow joins us now. Australian chest in china has declined see declined to steeply, viewed poorly than russia. Could you tell us more about the findings . Thats absolutely correct. We have seen in we have seen trust in china fall to record lows. Only 23 of australians say they trust china. That is halved in just two years. At the same time, we can see only one in five australians have confidence in president xi jinping to do the right thing. This is halved since 2018. A significant shift that tells a story of the australiachina relationship declining over the past two years. Paul despite those findings, the poll also shows that most australians, 55 percent, see china as an economic partner, rather than a threat at 41 . Does this address that the relationship can still be rebuilt even if it is out of economic necessity . Difficultyis is the at the center of this issue where to is australias largest trading partner. There is no future for australias economy that does not feature a significant role from china. What we are seeing shift is that the australian public two years ago entirely saw china as an economic opportunity. 50 say china is an economic partner, that used to be in the 80s. We are seeing that shift over time with the rise of debate around foreign interference, huawei, hong kong, and other issues. Having said that, almost all australians are worried about the level of dependence that australia has on chinas economy. 94 want australians to look for other markets to reduce the dependence on china. Shery what about other stronger alliances . Does this anxiety over a china translate to perhaps a closer relationship with the United States . Thatha we would think that might happen. And we can see that australians are feeling increasingly unsafe and anxious and are turning to friends. So support for australias alliance with the United States is very high and has gone up year. Last. Having said that, australians support the us the alliance has been resilient to unpopular u. S. President s. Australians remain very skeptical of President Trump his America First policies. What are australians focusing on this year in 2020, post pandemic . Even before the covid19 outbreak, we thought that perhaps Climate Change was going to come to the forefront of australias minds australians minds, given the fires we saw there. What is catching their attention in 2020 . Natasha you are absolutely right. It was thought 2020 was going to be a debate about Climate Change policy in australia after that horrific summer of the bushfires. What we can see is that concern about drought is very high, concern about environmental disasters like bushfires is very high. However, it seems that anxiety about the economy and the covid19 pandemic have overtaken that concern about Climate Change. Last year, Climate Change was at the top of the list for australians. It has now moved quite far down the list. In terms of that, how do australians view their countrys own reputation around climate . Natasha as you know, these bushfires were broadcast around the world and there was a lot of concern about the impact it would have on australian power and as a destination. You can see the country thinks the approach to Climate Change has had a negative impact on our relations in the pacific. Less but almost half the country says it has had an effect on our reputation for the world. There is a sizable proportion of australia that believes it has been effective. Broadly, bute still connected to that, how are attitudes around globalization . It is not just to do with the push around the action on Climate Change, but also those other issues we discussed in terms of trusting china and trust in other asian neighbors, even the democratic ones. Natasha yeah, australia has remained quite resilient to some of those antiglobalization trends in the world. I think that is surprising, given covid19 in many ways is a crisis borne by interconnectedness. Having said that, australians are less trusting of almost all the countries in the world and they have been in the past. Particularly if we look at india and indonesia that are often touted as important democratic partners for australia in the post covid19 world. We can see that trust in both of those countries has gone down. And confidence in both president the president and Prime Minister modi have gone down. Having said that, they there are exceptions. Australians look at japan as friends they can trust. They hold high levels of confidence in them. Shery natasha kassam, great to have you with us. Thank you. We have an alert on the bloomberg. We are hearing from cnbc that softbank has prized is 198 million shares of tmobile at 103 each. Now Sovereign Wealth Funds are supposed to be among the top buyers. Belows a little bit mondays closing of 103 each. Softbank is divesting its tmobile stock. It is planning to so close to 25 stake in the u. S. Wireless operator. This is worth about 33 billion. Softbank now divesting that tmobile stock. And pricing, 198 million tmobile shares, 103 dollars each according to cnbc, as the company tries to shed assets to deal with losses in their vision fund. Coming up next, we are looking at new zealand, one of the most successful countries in containing the coronavirus. The rbn debt is likely to keep rates unchanged. This is bloomberg. Paul lets look at how futures are trading right now. Smpte, many futures looking a little flat at the moment. It is kind of a mixed bag on the futures market. Sydney an k futures and futures both pointing a little higher. Markets got whipsawed yesterday when Peter Navarro initially gave the appearance that the phase one trade deal between china and the u. S. Was over. That got promptly walked back by President Trump in a series of tweets and we ended up flat for the day. Futures looking modestly placed at the moment. New zealand, trading. Up a healthy. 8 . As we get central bank decisions, Central Banks in asia may send big signals today. Even as they make no policy change. Editor Kathleen Hays here with a preview of the reserve bank of new zealand, bank of thailand. Let me talk let me start here, no change expected. Perhaps a bit challenging at that the kiwi dollar has been strong recently. Kathleen maybe so. Lets start with what most traders and economists are expecting, no change in the key rate. No change in the bonds they are buying. Lets remember, the rbn said finished last year with a key rate at 1 . The march meeting, an emergency meeting, surprised the world cutting that key rate by 75 basis points, 20. 25 . That was a big aggressive move. At the last meeting, they cut their bond purchases excuse me, they doubled them from 30 billion new zealand dollars worth for the year, up to 60 billion. Now they are going to pause, take a look, wait and see. There is no Monetary Policy statement coming out of this meeting. Like a lot of banks, they do that every other meeting. That is one reason why people figure that even with a stronger new zealand dollar, it might be mentioned in their policy statement. The head of the rbnz at his press conference might talk about it. But no actual move. What they will do is pat new zealand on its back, saying we attacked the coronavirus aggressively and early. So the fallout has not been so bad as for other countries. Nevertheless, we have weak gdp, high unemployment, low inflation. Tolly positioning the rbnz looking at more tools and steps if needed in the future. Paul also meeting today, the bank of thailand. Also expected to hold its key rate study. That is even in the face of weak growth. Why is that . Kathleen weve got two Central Banks meeting from countries that have done pretty well containing the virus. They are expected to keep their study. Es they have cut their key rate three times this year from 1. 25 down to 0. 5 . Remember, this is the country of 69 Million People. 3200to date, reported virus cases. They have done a good job. Even so, the rest of asia has been hit by the virus. What does that mean . They are not going to tourist destinations. Tourism is down 12 . Trade is suffering as well. The latest number on exports, up 2 . They have a weight on their economy. That is up 5 . Still rising. The secondbest performer in asia. Traders are wondering, will the bank of thailand make a comment about being overvalued . Getting us ready for rate cuts in the future. You can see the rate cuts they have made there. Seen. Emains to be. Another thing they are expected to focus on, according to the press in new zealand, is the fact that people are looking at death rising debt rising, because of the pandemic and the lockdown that they have had. Maybe some comments about the quality of the assets that banks are holding. Last week, the bmt told banks to cool it when it comes to paying dividends or doing share buybacks. Thats another thing in focus for that meeting today. Shery also in focus, the bank of japan summary of opinions from its last meeting. Now we have a top Federal Reserve official rejecting one of the bojs favorite tools, yield curve control. Kathleen he certainly is. A wellrespected monitor economist, im sure the bank of japan will be listening closely to what he said when he was interviewed today on bloomberg television. Why he is not a fan of guild curve control. Lets listen. Kurt the u. S. Yield had yield curve control during world war ii. The asset the war, from the yield curve control was very difficult. It kind of ended in tears. I think that is one of the main concerns about going in this direction. I think there are more questions than answers around yield can troll right now. Yield control right now. Bond traders and strategists keep looking for the fed to be bullard,ncluding james saying look, the u. S. Treasury will be selling more bonds. If yields start rising and the cost of funding, the deficit starts rising, the fed may decide that yield curve control is not such a bad idea after all. The new york fed study came out today saying, the yield curve control helps the bank of japan keep its bond yields down without having to buy a lot of bonds. But it has done nothing to boost inflation. It is not an effective tool on that front. You are seeing a picture of bank of japan governor, his last Virtual Press conference after meeting. 15 we will see in the summary of opinions if the boj says anything about yield curve control and how it is working for them. Paul Global Economics and policy editor Kathleen Hays, thanks so much for joining us. If you are away from the screen, you can find indepth analysis and the days big newsmakers on Bloomberg Radio broadcasting live from our studio in hong kong. You can listen via the app, Bloomberg Radio plus or bloombergradio. Com. President trump bands new work visas for the rest of the year. A move that does not sit well with big tech. We will have the details in a moment. This is bloomberg. This is bloomberg. Shery breaking news crossing the bloomberg. Kkr has raised more than 10 billion for their third asia fund. This will be on track to having the biggest buyout assembled by a u. S. Private equity firm for asia. This according to people familiar with the matter that say the buyout the buyout giant has achieved 80 of its 12. 5 billion target within seven months of the official launch. Kkr, now amassing 10 billion for their biggest asia buyout fund. Lets go to the tech sector. It may be enjoying the equity rally, but they do not like President Trumps decision to freeze several types of work visas, including the h1b visa used widely by tech firms. Twitter, amazon, microsoft, airbnb and the ceo of tesla, apple and alphabet all expressed disappointment in the move. Senior tech reporter joins us from dallas, texas. Great to have you with us. How big of an impact will these visa freezes have for these companies . Y the estimate is expecting between 300,000 and 500,000 people in the short term. Of these visa holders go to tech companies. In the shortterm, it will have a big of an impact. The longterm impacts are what is most affecting the ceos and companies you mentioned. Slating people to come to the u. S. , and particularly for students and phd students, engineering in science. You might not necessarily want to come to the u. S. To study and bring their skills if they know or feel unwelcome. Are we expecting to see any impact on i. T. Outsourcing . Shelly yeah, i think the biggest criticism of the h1b program to look at the outsourcing companies, it is not necessarily those high paid engineers that are hired directly by amazon. Led by the outsourcing company but by the outsourcing company that they have been criticized for bringing people over and then paying them lower wages than what u. S. Employees would get. Right, senior tech reporters shelly banjo joining us from dallas, texas. Lets get a check on the latest business flash headlines. Some of chinas top livestreaming apps are under pressure from the Central Government in a new crackdown on their services. Regulator singled out three apps backed by tencent for what they called vulgar and problematic content. They are also among those names in the crackdown. It is not clear what, if any sanctions may ensue. Indonesians indonesia 430 jobs. As a grapples with the fallout from the coronavirus. Most of the losses will affect its newer divisions. Which will shut down at the start of july. Announced lastl week that it is cutting about 5 of its workforce. Sold 10 billion dollars stake in its natural gas pipeline to, a group of investors including gip and singapores Sovereign Wealth Fund in what is the biggest infrastructure deal this year so far. The buyers will have 49 in the new subsidiary. Values it aton almost 21 billion. Coming up in the next hour, the rally in tech stocks relative to the broader index is reaching levels last seen just before the crash in 2000. We will get some insights from Senior Vice President nicole we bb. Plenty more to come on daybreak australia. The market open in australia and in tokyo in one hours time. Futures in australia pointing modestly higher. The aussie dollar still floating below . 70. This is bloomberg. Paul good morning. We are counting down to asias major market open. Shery welcome to daybreak asia. Our top stories is our. Asian markets face an uncertain star after wall street faced on mounting concern about new virus infections. Traders are worried about the prospects for recovery. Global cases surge past 9 million with several u. S. States reporting record numbers. California breaks its