Gains in the region today. The csi 300 has been up 6 in the past five days, the biggest months. N four margin traders have returned and the stock rally is kicking off. The hang seng up 133 points. We are seeing the dollar slightly weaker, but marginal. We are watching the aussie, in t he red here now. They are all over the place. Aussie, j. P. Morgan saying expect low 60s. It is difficult to model the recovery we are seeing. Number more positive. We are watching oil, coming off of a four month high and likely to end the month in the green. Gold with four weeks of gains. Tom the u. S. Senate has given final approval to legislation that would impose sanctions on chinese officials, cracking down on dissent in hong kong. Page in his warning a strong countermeasures if the u. K. Act in response to the National Security law. Warning a strong countermeasure if the u. K. , australia and the u. S. Active response to the National Security law. In the measures appropriate the senate at this point . People wake up one morning and hong kong has completely changed to where you cannot hold a banner or get arrested. A morale boost for the hong kong people, but congress the ball is in the administrations court. It is up to the administration to turn this into concrete measures. Week they said they would Ban Technology used to hong kong. That can have a significant impact. We have to wait and see if the administration will put sanctions on individuals and institutions violating hong kongs peoples human rights. Tom the risk for the u. S. Is that it has a trade surplus with hong kong, over 30 billion according to 2018 numbers. This impacts not just u. S. Companies but the people of hong kong as well. Behavior will not change. What are the concrete measures you would like to see beyond this put in place . Victoria beijing all this time has been gearing that the u. S. Will not take these measures. [indiscernible] on technology would be more important because a lot of involved. Anies are impactal sanctions could ordinary citizens. Point same time, at this it does not make sense to give hong kong privileges. The one thing people are more alarmed about is the ability this law has for china to arrest foreign nationals if they spread malicious rumors, if they work or collude with foreign nations in sanctioning beijing. Is it for china to enforce this on anyone . Right,a you are quite ,nd also for the same reason [indiscernible] sanctions on chinese leaders abusing human rights. China says if these people come they will get into trouble. A lot of these people do not want to go to china or hong kong than it does not mean anything at all. Dot china seems to want to that they will get into trouble. And then people like me from hong kong who live abroad cannot go home. It has a chilling impact on many people. It also means friends that i know want to fight even harder. Any way anyhere International Body or court can challenge this . Everyone except china believes [indiscernible] when it comes to international , only if beijing agrees to an International Court of jurists, then there really is no jurisdiction over china. , we talk aboutnd , itu. S. Imposing sanctions is not just the u. S. But european banks, korean banks, japanese banks. All of these working together can have an impact. Potentiallyinesses overlooking the political risks and ramifications of the security law . Victoria i think you are right because for so long they have maybe things are not going well in hong kong. Or increasing cases of corruption in hong kong. Hong kong used to have a clean record when it came to but the Railway Construction has problems with safety risks. Everyone wants to say it does not matter, we are making money. They want Profit Margins to report to the shareholders. This law will affect making not , but if you have any business deals with china or plan to go to china if you are an american or european working in hong kong, it can get to you. Playing devils advocate, given hong kongs importance in the financial world, given the amount of mainland money in hong kong now, can you give some benefit of the doubt that beijing will tread lightly with this bill and exercise pragmatism . We were speaking to lawmakers on the prochina side who said, lifeout of politics and for hong kong people will relatively remain the same. Victoria there is some truth to that in a way, but it is a function of how people will react to it. I think the rest of the world could look the other way. People issue condemnations about the education camps, repressive policies, yet they will not continue to look away, then the implementation will be hard. The worlder hand, will take some actions on hong kong, then beijing will think before it sends people to life imprisonment. The person i am most worried testified person who at the House Foreign Affairs committees yesterday. Would he be charged with colluding with Foreign Forces . He would be subjected to life imprisonment and taken to beijing for torture. What is left for other people . Thank you for joining us, victoria hui, associate professor, university of notre dame. We will be speaking to voices from all sides of the story and a basic Law Committee member onut chinas tightening grip hong kong, and if he thinks it is a threat to the citys traditional freedom. Tom a new report from washington says the u. S. Economy will contract more steeply this year, but will rebound more than previously seen in 2021. Shrinking 6 in the coming months, then expanding by nearly 5 next year. The cbo expects job markets will improve, albeit weaker than before the virus hit the economy. President trumps top economic advisers says they administration the administration is increasingly displeased with china. Larry kudlow is concerned about high tech transfers with companies linked to the chinese military. He expects one trade deal is making progress, but washington will take action. Jeffreyer girlfriend of epstein has been arrested on sex charges in new hampshire. She is accused of assisting him to abuse minors and groom victims known to be underage. Maxwell previously denied all involvement. Eckstein was found dead epstein was found dead in jail, it was ruled a suicide. Ahead, Hong Kong Exchange is rushing off the political upheaval, the stock is at a record driven by a flood of ipos. We will talk about the outlook for listings. This is bloomberg. Yvonne taking a look at asian stocks, we will get more on the markets. The u. S. Jobs report was the catalyst of all of this, it was a pretty stunning blowout figure. Will this trend continue . What do you see from the data for asian economies . The economists reaction was some jobsic because are lost forever due to the virus. A full recovery of the labor positive a [indiscernible] it is consistent with the other u. S. Data. Index surginging to a 14 month high, and new , thes of employment economy recovery is well underway. The retail sales as well. This has given a shot of adrenaline to the markets for a vshaped recovery. Rise. An imports will we have seen a rise in virus cases in the u. S. , and that is concerning, but the openings are underway. We have seen some whole back pull back. To see aikely continue recovery in the economy in the labor market even if it is slow and gradual. Tom markets staged a strong balance from the lows of march 23. Which markets in asia are set to outperform in the second half . China is outstanding. We see a research resurgence in the trading. Highestading at its since late february. The Retail Investors returning , and the highest margin balance since 2016. There is a strong vote of confidence in china with its impressive handling of the virus outbreak. [indiscernible] industrials are coming out. Surgingservices are back to multiyear highs now. Manufacturing services pmi data is improving. Growth areand profit in favor of china. Could risehe csi back to its 2015 highs. Yvonne that services pmi number that came out, 58. 4, is impressive. There is a lot of debate about bubbles forming now. We have unprecedented monetary stimulus that is affecting the price of credit. The tech sector with the nasdaq and valuations at its highest since the early 2000. What is driving this rally, and is it sustainable . That is a good question. Has led toandemic the outperformance in the tech sector. And the hardware makers record rally [indiscernible] this is a bubble concern. I think this time it is different, the rally is led by now,nies in the here and and the surprises to the upside the other day. The revenue and Profit Guidance was so strong. The earnings season could underpin the strength in the tech sector. Wasinitial enthusiasm hopefully triggered by the as wellreserve message as the lack of opportunity to make money in a low growth environment. What is really important [indiscernible] it will take a long time to see that happen. This pandemic changed it. I see the tech sector will continue. It will remain as a major market leader. Tom thank you. , ourother programming note annual broadcast of the boston ,ops fireworks spectacular boston pops salute to our heroes, carrying on the orchestras for the july tradition, from the comfort of your own home this year. That starts july 5, 8 00 a. M. Hong kong time. This is bloomberg. Yvonne here are the latest business flash headlines. Six years after landing in japan, uber is hitting the road in tokyo, partnering with three operators to have 600 cars available in the business district. Uber is focusing on food deliveries but its ridehailing citiesavailable in 12 including hiroshima. Asked tons nfl team change its name, fedex says the redskins is a pejorative term for native americans. The call comes as investment firms and shareholders worth a combined 600 billion including fedex, nike, and others are asked to cut relations unless the name is dropped. Washington place their home games at fedex field. An indonesian carrier is betting social distancing will trigger a revival in travel demand. Traffic has risen to 60 of capacity after authorities lifted a ban on nonessential travel last month. Demand should improve further tourist destinations are reopened. Tesla sales the expectations, sending shares soaring. The electric carmaker delivered over 90,000 cars in a threemonth period leading up to june, beating estimates. Shares rose as much as 10 in the biggest oneday jump in 10 years on the day tesla became the worlds most valuable car company. Tom lets check in on the markets. Risk on again today, a positive session in the u. S. Yesterday. Andimproving jobs picture jobs claims beating expectations. The data continues to improve in the virusven as levels continue to rise in some states. , pushing off0. 5 security concerns and ipos have bolstered hong kong trading despite political concerns. Up, and the services for the month of june, well above may. Improvementinuing of the economic picture. Around the 1200 level, flat. It is likely to end the week in the green. This is what the gold price is looking like, down 1. 25 . With a look at individual stocks, a strong number in auto sales domestically rising 11 . That is three straight months of gains. The consumer is looking more healthy in china. It is a good day for trading. Plenty more ahead. This is bloomberg. This a. M. In hong kong and shanghai. China is warning western countries that stronger appraisals strong reprisals are coming. Offer is ready to citizenship for hong kong residents and washington is preparing sanctions. Beijing says it will respond and its critics will have to accept the consequences. Meanwhile, brexit talks have broken up early over warnings that major differences still exist and there is little immediate chance of agreement. Negotiations boiled over last week. The eu has admitted officials are working under the assumption that the no deal brexit is becoming likely, and has urged the u. K. To become more engaged. 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 micros broader line asked chancellor merkels clearr line is seen as a signal that berlin intends to keep the Single Market in one piece. Top court had ruled that it could be illegal. Arguably the most famous plane in history is reaching the end of the line. Sources tell us boeing is pulling the plug on the jumbo jet after five decades. Butf has not been informed, the last 747 will roll out in about two years, signaling the. Of the plane the jumbo will follow the as bus the jumbo jet will follow the airbuss a380. 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. Im Karina Mitchell. This is bloomberg. Yvonne lets do a quick check of the markets right now. We are following the wall street section, higher for asian stocks. It looks like it is focused on the data we got, the u. S. Jobs report, the pmi number and services we got from china. At the highest level since april 22 in. Phuket since 2010. The msci 300 at 28 month highs. The market shrugging off some of the rise in infection cases seen all over the world the u. S. Has had one of the biggest daily records in the country. U. S. Futures still under pressure. The nifty futures as well slightly positive today. We are watching the dollar, on track for a weekly gain. We are watching the spread between the u. S. Tenyear with the china 10 year. We continue to see the spread wide, 288 for the china tenure year where yields continue to pick up. There is a lot of disappointment on the pboc. Brent crude, we are off those four month highs, but still what a quarter it was. We could be extending that into the third for now as we speak. Movers, tomk at the had mentioned the chinese automakers. We are also watching the likes of geely auto. Byse two were upgraded citigroup on the price targets on the prospects of stronger Global Demand for electric vehicles, expected recovery and passenger vehicle sales. We are seeing stocks up on a tear today. Another big story in china is the brokerages as well. The country is inching closer to merging its top two brokerages. We are talking this could be a pretty big deal for the financial industry. Csc financial up close to 14 . The Hong Kong Exchange relic to another high this week, despite the greatest political upheaval in the city since the handover more than 20 years ago. Kong exchange experiencing high volumes and a flood of ipos on the mainland with more to follow. This week alone, 14 companies have launched listings, making it the biggest week for ipos this year. In the first half, capital rate jumped 22 year on year with those mega tech share sales. The city a top three ipo market globally and is poised to raise as much as 34 billion this year. That coming up from p to bc. Lets bring in one of the authors. Always great to have you. We have been focused on this National Security law. Can this momentum continue, even with this lot now in effect . Guest we remain confident about the Hong Kong Ipo markets in the second half of this year. Fewif you look back a months ago, covid19 closed down the ipo activities from february to april, but activities are coming back since may. The market is expected to continue to improve. We expect Strong Demand for the ipo to continue. 170f today, we have companies which have started ipo applications. 170 ipo applications represent a 4 increase in our pipeline compared to the previous quarter this year. There is aiously, lot of interest on these china tech shares like alibaba. I spoke with charles lee a couple weeks ago, and he said it is not a matter of if an or when they will have to expand the scope to include some of these companies so mainland investors can tap in. How will that change the dynamics of the market, and will that turn hong kong more like the asian markets . It will dont think turn into the asian markets, but i want to comment on what charles mentioned. Hong kong continues to play an Important Role in accessing the china multilevel Capital Markets. They have their own objectives and goals and try to attract different companies. Mention about the u. S. Companies coming back to hong kong, in fact for the first six large scalead very u. S. Listed Chinese Companies 17 a raising of billion. We expect there will be an expansion of four to six u. S. Based Chinese Companies coming in the second half of this year. This is mainly due to the fact that the Hong Kong Stock Exchange went through reform two years ago. A lot of these companies, they and the pricetor is the only listing price they have. With the reform and successful for those who came for a secondary listing. The exchange in hong kong has been successful in attracting tech companies, especially focused on the ecommerce space. Are they able to broaden the appeal Going Forward to attract a wider range of sectors and companies . Guest yes. We believe they will be able to do that. Thee take a look so far in first six months, they are two sectors which basically dominate the sector that we just mentioned. The other is biotech, and also what we call the Companies Including tnt. Will continue to be active, and we estiamate there will be more successful listings on the exchange this year. On top of the sectors, which we have never seen in the past few we have seen medium sized ipos from the traditional sectors. For example, the Financial Institutions ipo coming in the next few months as well. Tom we should focus to the mainland. How compelling has the proposition been in terms of the star markets, all those small private companies, those tech companies, that want to raise funds . Should we expect to see more activity pickup . I think the asian market since it has not been affected by covid19 metal, we have seen very by covid19 at all, we have seen that increase this year. Launch last year, as well as the reform of th ee board related to the restoration system. Believe the launch of the new hasd and the reform provided an alternative listing choice for the technology. We have amended our forecast for the asian markets as compared to our forecast at the beginning of this year. We expect to continue growing in a totalets with fundraising of over 300 billion renminbi for