By market. Indonesia coming online. You are seeing a marginal gain. Although when it comes to the virus, the deadliest day yet in indonesia. The story is chinese stocks. The csi 300, we are up another 3 , extending the fiveyear highs. All four of the major benchmarks in china in overbought territory. Is it the case of foam a of fomo . The topix up by 1 . We expect the earnings season to kick off with consumer stocks. The market has underperformed as of late. We are also watching currencies. We mentioned the dollar, posting the drop. Across asia fx, a strong renminbi. Risk on move today. Brent crude, hovering around the 43 mark here. Commodities gaining ground in the second half. Copper futures slightly lower today, but up last week for the seventh straight week. Lets get context with our reporter. There seems to be a very clear upward trend when it comes to virus infections in the u. S. Several other economies have reopened. How do you see that affecting markets right now . Reporter right. One of the investors says that is jump in infections affecting it. The imposing of broader unpalatable. It is doing huge damage to the economy. If there is one thing i could highlight, it is that china was the epicenter of the virus and the chinese economy and the data rebounded two months faster than the u. S. Based on the pmi readings. The economy recovery on the mainland is well underway, despite the rising infections in beijing. That indicates that the u. S. Data can continue to improve with that time lag. U. S. Data improve even with the virus and follow in the footsteps of china . I think the mood in the risk market will remain favorable. The one thing interesting is u. S. Manufacturing and Chinese Services pmi last week are reviving interest. Asiaains are very broad in at the moment. How will this play out . Earnings season about to kick off. Could we see one of the worst quarters on record because of this virus . Reporter yeah. The rebound from the marginal lows, there has been a stopstart because of the coronavirus hotspots in the u. S. Has dominated the markets in the coming weeks. What i see are the markets late the moment, and optimism confidence has been low. Any slight beat can swing the variationnd, not sustainable at current levels, especially as the virus emerges as a threat to the economy. I think markets will continue to over thethe macro data next couple weeks, and that will likely set the direction of the markets. Thursday, we will have the weekly report for the initial jobless claims in the u. S. , and that will be a key highlight for the week. Reporter to highlight some of the catalysts we need to keep the rally going. You can follow this story on our markets live blog. There is also commentary and analysis from the expert editors. Find out what is affecting your investments right now. Halinda lets get the first word headlines now. The European Bank has warned the euro zone is facing about two years of downward pressure, but could see a turnaround after that as covid transforms the economy. Speaking during a webinar, Christine Lagarde says she expects a period of disinflation to begin, followed by inflation, and the possibility of higher rates. Inflation dynamics will be impacted with disinflation to begin with, then inflation that will occur that we will have to measure. But it will most likely be based if we have an increase on productivity on a natural increase in Interest Rates. Halinda north korea is joining new talks, saying washington is using the idea as a political tool. Relations with the u. S. And south korea collapsed last month as pyongyang accuses rivals of abandoning promises made. Says sanctions will change the relationship. Pyongyang says it has a detailed strategy for dealing with the threat. Governor has been reelected for a second term in a landslide victory as the city deals with its surgeon coronavirus cases. He challenges to win another fouryear term. Koike campaigned on her handling of the virus, hoping to address voters online. The u. S. President ial race may be in for a major shakeup with kanye west saying he is coming on board. It is not clear if it is serious, but social media exploded after he tweeted his intention to challenge donald trump and joe biden. Kanye west has 30 million followers on twitter and seems to have one the backing seems to have won the backing of elon musk. Still ahead this hour, hyundais head of fuel cells tells us why they have focused on Hydrogen Powered vehicles. Yvonne next, we speak to our guest about the rise in u. S. Coronavirus cases, and what can be done to tackle the surge. This is bloomberg. Halinda worldwide coronavirus cases have jumped to 1. 3 million, and a oneday high in global of global infections has been reported. It rose more than 2 more than the average. Lets discuss with our guest. Good to have you with us. In the first four days of july, we saw a 600,000 we saw 600,000 new infections. Is the pandemic Getting Better or worse . Nader it is definitely getting worse. That is without a doubt. As we look at the United States, the percentage of test positivity is going up significantly in a number of states. With that we are having a lot of difficulty in terms of sticking to things we know work, like social distancing, masking, and other things. Halinda more and more economies are opening up. Is it really safe to dine indoors, outdoors . Is it safe to go to birthday parties, go to the bar . What are the red lines . What should we be looking out for . West we have a few things know consistently have been true when you look across the globe, really. We know outdoors is significantly safer than outdoors. Dan indoors. Moveu can dine indoors or any social activities outdoors, that is going to be much better than doing things indoors. Ofalso know the importance masking, particularly masking indoors, but anytime you have close facetoface contact with people, we need to be Wearing Masks as well. Those types of things, we saw that happen in japan with their model. We know it can stop that super shredding super shedding event. Yvonne how do you change behaviors, like people who refuse to wear masks . You see that in parts of the u. S. In asia, we have the haunting memory of sars as a reminder, but in the u. S. , it has become much more of a political issue. Guest it has. The reality is any behavioral change is going to be complicated. Any new interventions. For the u. S. , masking is a new thing. It is not something we have done here. It is very easy to make it seem like a simple problem of just put a mask on. But there is an entire psychological process to help people integrate new behavior change into their daily routine. For a lot of people, it is not quite that simple. If you really think about epidemics and epidemic response, you have to think about it locally first. In any part of the United States, peoples aversion to masking could be different. It could be a lack of understanding about the Health Consequences or benefits, it could be completely politically driven. You have to look at the community and study it. We have seen more than 200 scientists asking the who to revise spec tatians because they are finding more evidence revise expectations because they are finding more evidence. Is it possible this virus is no airborne . Is it possible this virus is now airborne . Guest it is something we have thought about from the start. The question is, what role do aerosols play, and what percent aerosolsission is via versus respiratory droplets that hang around in the air that do not hang around in the air . There is evidence of absence and absence of evidence. If we dont have evidence, we play it conservatively. It is possible that is a route of transmission we need to be careful against. Is still a lot of doubt or questions about asymptomatic cases. Shed some light, what have we learned . A symptom medications eventually show signs . Guest here is where we were talking about asymptomatic versus presymptomatic. There are cases that are completely asymptomatic and never develop symptoms. But a much larger proportion of cases, they do end up developing symptoms. They do not show symptoms for the one or two days where they can still transmit to other people. They have replicating virus in the body, but they dont yet show symptoms. That is where we are getting hit in one of the hardest ways because we need to stop presymptomatic transmission, which is why masks are so important. Halinda of course, the focus is now on a vaccine. Where are we on that . India came out and said we could see a vaccine in six weeks. How realistic is that . Guest it is very hard for me to when. As we move into phase three trials where you have to enroll several thousand participants, those can take sometimes. We have to see what the effects are in the longer term about how much immunity these vaccines confer and if they are safe. It is hard to speculate when we will have a vaccine. In the absence of a vaccine, we know things that do work. Masking, social distancing, avoiding highrisk scenarios work. That is the best we will get until we have a vaccine. That theo you think u. S. And parts of emerging markets are seeing a spike in cases . Can they control this virus before there is a vaccine . Guest i am talking from the northeast, where we have gone through the first wave of this. We learned a lot of lessons. We learned we need to move quickly, that we need to mask. If you look at the u. S. , there are different parts of the country seeing a rapid rise in cases. Northwestthe especially are trying to relay the messages of what we know work and what doesnt work. And what works is acting quickly, listening to Public Health guidance, testing, tracing, isolating, masking, social distancing. What does not work is delaying those things while cases are rising. Am urging lee i leaders to take action quickly. Mentioned testing. Is there a better handle on testing now . What about Contact Tracing . Guest we are definitely testing more than we were in the epidemic. But the rise in cases is not just because of testing. We know that by the percentage of positive tests, which are also going up. There testing more, but cases are also growing and spreading quickly as well, and that is more than just testing. Tracing and isolating is extremely important. Where i am in massachusetts, we worked with partners in health thatn International Ngo has done tracing in subsaharan africa. We are adopting the lessons we learned from Global Health from many countries that have learned from epidemics before. We have been doing that at the statelevel here, which is important. Leave it there, but thank you so much. Worldsp, one of the biggest water and Waste ManagementCompanies Says it will take another year before business returns to normal. Our exclusive interview is next. This is bloomberg. This is Bloomberg Markets asia. Utilities have been hit hard by the pandemic with demand for treatment and Waste Services reduced globally. We spoke with bertrand camus, the ceo of suez, and asked when he sees a return to normal. Are relatingsues to the impact on issues as important as the water cycle, against pollution. Covid19 andbefore will be thereafter. It shows that these issues have to be addressed as a key priority in the future. Agreeing tos are reevaluate the economy. Commissioner, we have good reception in investments. Reporter you have mentioned the possibility previously about tracing the coronavirus in wastewater. Is any government planning on giving you a key role in surveillance in the pandemic . Guest the result of research we have been carrying out in the past month, first of all i want to make clear there is no issue for Drinking Water in the treatment processes. Is they are able to kill the virus. But we find traces of the virus in wastewater. So we are able to correlate the areence of dna and we putting in the network the ability to anticipate the wave in european countries. This is the case in france, in spain. Reporter talk to me about your business as well in the wake of covid19. How long will it take for suez to recover the volumes of water and waste treatment that has been lost by the crisis . We gave the latest information we had. It is pretty basic. All we know is we expect a loss of revenue, which correlates to the loss of volume, around 6 . The situation is very different from one continent to another. Asia has improved. It was the case in europe since midjune. Rebound very important and are starting to operate. But there are markets not up to transportation, manufacturing, and tourism, and it will take some time to get. Ack are in a situation where we think that volumes should get in 2021. Istoric levels halinda that was yvonne that was bertrand camus. Wahaha is considering an ipo that could raise 1 billion. Although no file decision has been made, wahaha employs around 1000 people. Will meet its most prominent critics this week to address concerns about hate speech and disinformation. The company long denied it does not do enough to combat racism and discrimination, but pressure from advertisers is forcing it to address the concerns. Mark zuckerberg has been playing defense as civil Rights Groups and advertisers demand more. Rollsroyce has confirmed ways to raise funds as it looks to ride out the slump in the aviation industry. Follows agine maker report saying they are considering several possibilities, including a share sale. Decisionse says no have been made, and insists its current financial position remains strong. Halinda asian markets are going strong this monday with most benchmarks up by more than 1 . Markets across the region showing improvement, but new orders showing weakness. That could mean that businesses are operating in the dark. The msci asia index up by 1 . Futures in the u. S. Pointing to a higher open. All eyes on the u. S. Weekly jobless claims report. We have the u. S. Dollar now 0. 1 . Tly a tad down, by at the where we are benchmarks in asia. Look at china, up by 3. 3 . A 52 week high. Some say it may have gone too far, too fast, if you look at one indicator. Hung saying the hang seng up by 2 . They are on track to enter able market. Lets look at some of the stocks we are watching. Mic trading by 11 . More to come. This is bloomberg. That is 10 29 in hong kong and singapore. Here are the first word headlines. President trump used his july 4 addressed to champions handling of the coronavirus pandemic, even as infections continue to rise. U. S. Cases rose by more than 34,000 on sunday to 2. 8 million, with fatalities approaching 130,000. On the global radar, mexico overtook france to become number the viewex, while ho reported a oneday high for new infections on saturday. Reversalces a further with the u. K. Government said to phase it out of the 5g network. We are told a new report says american sanctions meanwhile way would have to use means hw awei would make it impossible to control. Officials are drawing a plan to accelerate the removal of existing components, although a timetable is yet to be confirmed. The European Finance industry is ramping up pressure on brussels to increase access to markets, warning of a no deal. Derivative clearinghouses would have to start closing for the u. K. Three months may already not be long enough. The border between australias most populous states will close wednesday as coronavirus cases spike in melbourne. New south wales and victoria have resisted shutting the border in the first stages of the pandemic to avoid stoking economic disruptions. However, resurgence in infections have led to a locked down 12 areas of victoria and prompted a wider rethink. And one of americas biggest utilities is turning its back on natural gas. Dominion says it is selling stuff its pipeline to Berkshire Hathaway for 4 billion, with Warren Buffetts investments assuming another 5. 7 billion it dollars in debt. Dominion and its partner duke energy are closing the pipeline, citing costs. Lets do a quick check on the markets again. China markets very much in focus, but it is a global story we are seeing in the region with this risk rally continuing on monday morning. We are close up to 1 on the mci asia pacific. He are seeing u. S. Futures up by 0. 3 , nifty futures pointing to a positive open today as well. Story isr weakness propelling things higher today. Lets see what else we are looking at. The Australian Dollar also. It should not be overshadowed right now by what we have seen in the virus cases in the u. S. There is some improvement helping to offset the negative news in australia, with parts of melbourne under lockdown. The kiwi heading higher by 0. 25 . The strength in the rupee and taiwanese dollar as well. We are watching bonds. We have money going to stocks and out of sovereigns here with the u. S. 10 year yield up two basis points. The australian 10 year up three basis points, now that yields are getting ready for the bond issuance. The chinese 10 year yield, 2. 96, the highest we have seen since january of this year. Brent crude extending those gains we have seen. It seems like we are hovering around the 43 mark for brent. Lets take a look at these Chinese Markets once again. Withntioned the 3 gain the large caps in china. Inc. , with reports saying shareholders have voted to oust the chairman. The beijing court has also frozen his entire stake in car inc. s Parent Company as well. Of optimism onot brokerages, given what we have seen in this risk rally in chinese stocks. They were denying some rumors that a merger was in place with one of its big rivals. Surging 10 . South korea did confirm 51 more cases, although it seems like investors are willing to take that to think that mobile gaming growth is still strong. Halinda quite a day in the markets, 40 up from march lows. President trump has yet to sign legislation imposing sanctions on chinese officials over hong kong, but the administration is considering two or three actions with a high chance something could be unveiled soon. Now. Eporter joins us what is the latest . Reporter u. S. Lawmakers are increasingly looking to pressure beijing. Tole donald trump has yet sign legislation that could impose sanctions over hong kong, other moves are possible before long. Administration officials saying this weekend that trump is considering two or three actions against china. There is a high probability that could be unveiled within days, alth