Company. Elon musk returns to twitter to taunt his critics. And washington approved sanctions on china over hong kong as a Top White House adviser says the u. S. Is increasingly unhappy. New trade restrictions could be on the way. Lets look at how we are setting up in asia for that final trading session of the week. To trackstocks are set wall street as we assess the latest job numbers from the u. S. We did see some sluggish data indicating the pace for hiring maybe cooling as the virus spreads. Just keeping an eye on that. Ae index could be headed for weekly gain that could massively sway sentiment. We have retail sales to from singapore and Inflation Numbers from thailand, along with a pmi reading from china. Overall, we are set to end the week higher after thursdays event. Settledg futures have lower after the index cap the biggest rise in three months, let higher by property names and chinese brokers rallied as well. Financial markets have been resilient in the face of with the ructions mainland and troubles with market stability. Week forhe busiest hong kong with 14 listings launched. That is helped push shares of the Hong Kong Exchange from a 17 month low to an alltime high amid this bullish sentiment, but there is a dent in the armor. Jp morgan has cut its call on the stock to neutral. Thats just away from a record high. Are 19 and one set of calls on the Hong Kong Exchange stock. Shery tech shares march on and are approaching one measure not seen since the dot com bubble. Is betting on tack. He joins us online from california. Tech is a core part of your portfolio. I want to bring in this chart for our viewers showing the nasdaq above its moving average and its just one of the measures im talking about. Another measure of velocity relative to the s p 500. Are we all little overstretched year . How much higher are you expecting it to go . Think we are going to continue to see while we had this big jump, we continue to see a lot of strength in the tech area because it is these companies that are facilitating the distributed lifestyle and changes in behavior that are going to happen post this coronavirus and people working from home. These companies enable people to work in a distributed way and have a distributed lifestyle. The market has gotten a bit ahead of itself, so theres some bouncing us and volatility coming up over the next three or four months, but the point is, here in the United States, you have more stimulus being poured into the economy, really overcoming the virus piece and then you have these companies enabling a different type of work lifestyle. Those are the companies we think are going to continue to do very well. So i think theres some room for it to run, but theres volatility in that process still. A bumpier ride but not necessarily stalling. What sort of gains can be expected in the sectors we were talking about . Dryden its hard to put a finger exactly on the gains we see Going Forward, but you are going to continue to see this tremendous growth in utilization. Think of ecommerce going into this. Retail is about 11 . Anybody who wasnt shopping can see this you increased demand. If we got to our china is with 25 of retail on ecommerce, you see almost a double, so theres a lot of room we can see in the United States just in ecommerce before you get to the distributed lifestyle. So its a huge manned figure and we think weve got some way to go through that sector. The post Pandemic Take up when it comes to ecommerce and what does it tell you what the strength of the u. S. Consumer and the inflation outlook which is a big uncertainty weighing over portfolios . Dryden with regard to the u. S. Consumer, if you break it down two days, we have 48 days worth of stimulus and additional more stimulus. One out of six people unemployment are making more money than they were when they were working, so the consumer seems to be in decent shape for the next several months. But what we will see in the post pandemic environment is a change in how people execute on their normal behaviors and that is whats going to move us forward. Do you see opportunities in travel and leisure . We are seeing a bit of a recovery with cruise carriers but stocks like is the land are going to come back. Do you use this opportunity to pick them up . Dryden absolutely. The fundamental question to ask in all of that is do you think two years from now human demand is going to have recovered . Think about timing and is the economy going to be stronger . Aree fundamental demands, they going to be stronger a year or two years than they are today . If they are, the companies that capitalized earnings based off that demand are going to be doing well. Those are sectors you have to be willing to be very patient on and you have to say whats the question two years from now, not two months from now. Haidi thank you very much. You can get more on u. S. Jobs data we have been talking about and all the other stories to get your day going in todays edition of daybreak. You can also customize those settings so you get the industries and relevant news you care about. Still ahead, we will get more on the pandemics impact on the labor market, especially when it comes to women and minorities with betsy stephenson. But coming up next, u. S. Senate bags sanctions on chinese officials over hong kong. The bill now heads to President Trump. This is bloomberg. Numbers hitrus stocks as investors here fear infectionsecovery rose the most since may 9 with florida setting another hi mark. Texas has ordered the wearing of face masks as houston reports a 4 jump in intensive care patients. Nationwide, cases rose almost 57,000. Japan is warning of a resurgence in virus cases with tokyo reporting its highest number since early may. The governor says many infections involve people in their 20s and 30s and are linked to evening entertainment centers. Another state of emergency is possible. Meanwhile, the German Parliament has ended a legal standoff over bond buying, backing a program seen as a key component of the euro areas rescue plan. Chancellor merkels alliance showing the pro business democrats to accept the ecb purchases as a clear signal berlin intends to keep the Single Market in one piece. Germanys top court has ruled the plan could be illegal. The former role friend of Jeffrey Epstein has been arrested on charges in new hampshire. Shes accused of assisting epstein to abuse minors and helping to recruit and room victims known to be under age. She had previously denied all involvement. Epstein was found dead in prison last year while awaiting trial for sex trafficking. His death was ruled a suicide. Onbal news 24 hours a day air and on quicktake powered by more than 2700 journalists and analysts in more than 120 countries. The u. S. Senate has given final approval to legislation that would impose sanctions on chinese officials cracking down on dissent in hong kong. Emily wilkins is following this bill. What is the mood in washington right now . Is the president going to sign this . Expect theutely president to sign this bill. It has i high level of support from inside his own party and we have seen the president escalate things with china. Theres been a bit of a titfortat in recent months ,ver coronavirus, over trade over the South China Sea and this is the latest brick in that wall. Its not just about hong kong. We have a Bipartisan Group of lawmakers who want the Trump Administration to go hard on china when it comes to human rights abuses. A Bipartisan Group sent the white house a letter urging them to do something more than just have strong retorts when it comes to china arresting muslims, putting them in camps. They have faulted the administration for not doing more. Want to make sure no u. S. Companies are selling surveillance technology. Similar to the sanctions over hong kong, but those would extend to Financial Institutions. How much times will banks have to prepare for this . Emily thanks to prepare to make sure they are not going to be in violation of this law. But these are u. S. Banks, chinese banks, any institution found working with chinese officials can face sanctions and the president will have the power to seize assets of officials found to be interfering in hong kong affairs. Americas Development Bank has invested roughly 20 billion to advance foreign policy, including helping the u. S. Take on Chinese Companies like huawei. Israel said less than a week ago they are not going to go forward with huawei, so thats a very specific example. I will tell you something about israel some people like israel, some people dont, but they are fairly thoughtful when it comes to security and data security. I think the u. K. Has indicated y are seriously rethinking they were just using it at the outer edge where they felt comfortable but now they are rethinking it. You have the british, the is alis telling you this Real Security problem. We dont all say that all the time. That isre commerce, but you have three countries known for their Security Intelligence services, saying do not do this. There are certain places where i say its not worth any amount of money. My sovereignty as a country is critical and thats what you are hearing these countries say. Huawei has long had a foothold in this region. How is that going here . Im not inclined to talk about that and every country has the right to make their own decision. Then they have to decide whether that makes sense. It something every country has to think about seriously. There are other laces to cut corners and save money. There are other places where you are not putting the entire security of your country at risk. Cut corners there. Theres a lot of things that come cheap from china that you can buy. Do you want your entire backbones infrastructure to come from that country . Is dfc putting its money where its mouth is . In the particular area of i. T. . Yes. We have been looking as spectrum becomes available and people are buying equipment, we are out there financing that. Were looking at a number of Different Countries at purchasing spectrum and buildout in financing. Mentioned you belton road. China substantially subsidized. They do it in telecommunications. They are generous come humanitarian gestures and i think Everyone Needs to know that. To helpsometimes is counter that where it makes sense to say we can be out there and when i go to countries, they say this is the most common number one most common thing they will say is i didnt want to take money from that country. I knew what i was getting into but i had no alternative. Wheres the alternative . That is what dfc is. We are the alternative which is why i travel so much to make sure the messages there but to build a personal relationship so people know there is an alternative and it is an alternative that will respect your sovereignty. Im not going to bring in thousands of americans to work, im not going to threaten your environment, im not going to build shoddy infrastructure that may collapse later. Im not going to set up a deal where im going to reclaim a port you own and say im sorry, thats an american port now. We tried that a few hundred years ago and it was called colonialism. This is a form of colonialism. Haidi plenty more to come on daybreak asia. Haidi shares continue to surge for tesla and elon musk is taking to twitter to taunt regulars. Join us now is craig trudell. He just cant help himself. Craig he really cant get out of his own way. Somekes a bit of decoding of these posts we saw this afternoon. He talked about the idea that tesla was going to make fabulous short shorts and thats a reference it is a way he has trolled people like David Einhorn, Hedge Fund Manager who has been famously betting against tesla for years. A couple of years ago, he said he would send a box of short shorts to David Einhorn to make up for the fact tesla shop tesla stock was going up and today, not only sending that tweet, but renewing his jibe at the sec, referring to them as the short seller enrichment commission. This is a day that started with positive headlines with deliveries being better than musk couldnt necessarily keep quiet and just take it all in and enjoy it. The skeptics have a point. We have seen tesla shares adding more than General Motors or ford s entire valuations. Craig i think the report you are referring to from rbc capital is a smart observation. This is a master expectations teslas irlast week, department gathers estimates of what people think deliveries are going to be and the number was lowly low it was in the 70,000 range. People saw that and said tesla will be able to beat that number and that helps bring the stock up. And then earlier this week, you saw musk sending emails to employees. He knows those leak to the media very quickly. A couple of those emails talked about maybe breakeven was possible this quarter and employees were doing a great job. Weve seen one day after another of people getting excited about first a deliveries number and the idea maybe they can breakeven. As you referred to come about 48 alien dollars worth of market capitalization and seven trading days, not a bad seven days work. Lookedit would have pretty bad if they continued with the salary reductions. Does that put an end to those . Some headlines moving on that front costcutting measures that were implemented, we saw a lot of companies do this. General motors deferred some pay for workers and cnbc, we should give them credit they got their hands on an internal memo that just went out the idea that they are going to restore pay for folks, so we will see if that costcutting measure was enough to combine with the deliveries, whether it was enough to carry tesla to a profit. We should note that is something that is really key. If tesla is able to eke out a profit, the stock would be eligible for the s p 500. Thats another reason people are optimistic about the shares right now. We have heard concerns about workers being let go. Craig the reports we have seen on that front has been a handful of workers. What we are seeing at car plants across the country, we had a story about Fiat Chrysler where againstk a hardline people staging production stoppages, work stoppages at the factory. You are seeing some employees of Car Companies really being nervous about the fact that they are in close quarters, they are on an Assembly Line and it would be difficult to social distance. , fiatr it is tesla chrysler, gm or ford, you are hearing about workers being concerned about the risks they are taking going to work every day. Tesla is downplaying the idea that they are putting people at special risk and that workers are unhappy with the way they are approaching the handling of people heading back to work. Lets get a quick check on the latest business flash headlines. Blank bank of America Planning and officer turn after labor day with a limited number of staff making their way back in phases. Workers will be given 30 days notice in line with the banks cautious approach during the coronavirus pandemic. Business travel and in person meetings would remain restricted. Deutsche bank may buy all or the the germans german payment platform after one of the biggest corporate scandals in years. The lender is in talks with a regulator and administrator. Wirecard filed for insolvency after admitting more than 2 million probably never existed. Bidlondon Stock Exchange for infinitive is facing another hurdle. After singapore ruled yield could reduce competition in the forex market, the competition and Consumer Commission cited concern over whether it would retain access to the benchmark at a fair cost and on reasonable terms. Mandate forexas mask wearing as u. S. Cases jumped the most in two months. We will have the latest on the outbreak. This is bloomberg. By 4. 8payrolls rose million jobs as the labor market make greater progress panic than expected in the rebound after the pandemic. We spoke with larry kudlow about the data as well as possible future stimulus and u. S. Relationship with china. first of all, its a spectacular number and helps the overall situation enormous late. Thats the key point. Weve created a lot of jobs in last couple of months and the trends continue. One thing i was listening to the earlier conversation and i dont think people understand the relationship. The rescue package the president led with bipartisan support in secretarynd the ppp mnuchin fostered and implemented , it is the temporary layoffs, the furloughs that are coming down. We kept people connected to their employers. They did receive assistance, but we kept them connected so as the economy reopened and businesses reopened, roughly 80 of Small Business reopened, so we saw it again today. Are now temporary workers. That was 75 to 80 . I dont see why that trend cant continue. If there is an intellectual disconnect a lot of temporary layoffs will go back to work. I think a lot of people think you cant extrapolate this out because we have to slow down and reverse the openings elsewhere. Many people think more help is needed. This is what the president had to say when he was asked about more direct payment. He said i support it and i support larger numbers than the democrats. That doesnt sound like a consideration. It sounds like the president has made a decision. Is that a fair characterization . A i dont think a decision has been made at all. The president has always favored that but he wants it to be done in a smart and targeted way. The shape of any kind of package is very much up in the air. He has emphasized a number of programs. Negotiations wont formally begin until after the july 4 recess. Hes talked about payroll tax cut, hes talked about reemployment benefits and bonuses because we dont like dishut at is a disincentive to work. Hes talked about the Tourism Industry with utter business writeoffs. Hes talked about