China sea. Coronavirus cases are in the u. S. Florida passes new york is the second highest state after california. Gold futures had a record, beating levels last seen in 2011. Sasol are plunges. Lets take a look at how export thesis shaking up when it comes to the start of trading here in asia. This is what we are seeing when we are seeing futures. U. S. Stocks fell for a second day on friday. There is a faltering sense of recovery in the u. S. This is expected to focus on unemployment insurance. Pelosi has called that passage contracted the futures is down by a 10th of 1 . Japanese stocks coming back online. Mildly positive. Sydney futures extending losses down about a half percent. A flat start to the cash trading session. Lets take a look at gold. That is always the been the story. Gold prices are not looking too far behind. General concerns about where the Global Recovery goes from here. Global virus cases have exceeded team. 1 million while there are signs the virus spread is slowing the u. S. A second wave in spain is fueling concern across europe. We have the latest. Here in the u. S. We are seeing some relief. We have seen an increase of 1. 6 in the u. S. That is still lower than the average of the past seven days. We are still talking about 66,000 cases a day. Thats have slowed for a first time in a while. Going below that 1000 market day. There have been hard hit states like california, florida, texas, new york. All showing signs of improvement. There are unmistakable signs that the pandemic is looking a little bit better in states like texas and arizona. California and florida still seeing trends that are mixed at this point. We heard a similar sentiment from a california democrat, lawmaker karen bass. She told cnn that Los Angeles County should close. That is something that Los Angeles MayorEric Garcetti has closed echoed. She admits that perhaps the state did not opened a little bit too quickly. Arei in the meantime we seeing spain clashing with the eu for reimposing travel restrictions. How bad is the second wave of outbreaks that we have seen there . Spain was probably one of the most to countries in the eu. Easing ofms like the restrictions we saw it earlier this year and the start of the summer tourism season is leading to a pickup in cases. Boththan 920 cases for thursday and friday of last week. Those are like the numbers we saw back in may. Cases that have reemerged are in the catalonia region. That is home to barcelona and some of the most popular beaches in spain. They could reverse course and anyonee a quarantine for traveling from spain. This is a big below to the tourismdependent economy of spain. Norway announcing a 10 day quarantine. France issuing a travel warning. Spain we have seen barcelona impose some stricter measures. Is a midnight curfew for bars now. A Western District is under a partial lockdown. We have seen spain as one problem. Other flareups and other countries within the eu as well. Politicians say bringing back a nationwide lockdown still seen as a nuclear option. Shery we turn to asia. Hong kong is seeing a resurgence of virus cases. Now sendingchief is a warning on the recovery. Post sayinga blog the economic recovery in hong thenwill take longer expected because of the fluidity of this latest flareup. We also have a lot of uncertainties globally. Seen 100ong we have new cases per day for the last four days. That is the big concern here. They have seen signs of recovery. They have not been hit by fresh waves of the virus. The state of contraction appears to have throat slowed down slightly. We have seen some of this during the heat of the pandemic. But not nearly enough according to some of the businesses we talked to. Secondquarter gdp numbers come out of hong kong this week. We speak about Southeast Asia. This remains a hotbed in the region. Indonesia as well. 99,000 cases. Surpassing is 80,000. They could see cases rise to 85,000 nor more. Singapore also reaching 50,000 nor more. Vietnam as well. Seen as one of the early Success Stories to fight the virus. Seeing a first local case in the last three months. We will get you more on the virus later in the show. Coming up next, the latest on the forced closure of the u. S. Consulate in houston. Relations are now in extreme danger. This is bloomberg. Karina republicans are said to be considering a job to extend the jobless payment. This is part of the latest stimulus effort. The fed meets this week to consider monetary policies. That fact in the fight against coronavirus are likely to keep rates near zero. It is unlikely it will shift strategy. Violent inve been several u. S. Cities over the presence of federal troops on the street. Riots in portland which is the center of the new wave of protest. Thousands joined marches in portland shouting, feds go home. In hong kong, seven potential prodemocracy candidates have been questioned over their political views. Candidates were asked to prove they have not violated the citys many constitution or its recently opposed security law. State media reported a person may be infected with the coronavirus in north korea. It may be from a defector returning from south korea. 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. Haidi tensions between washington and beijing have been running high. This follows years of frustration by chinese buying. Officials reportedly broke into the chinese consulate in houston on friday. What are they looking for . What are the allegations . It seems like some of the administration see if thing consulate in particular as a hub of malign activity going back several years. Find their what they have identified. They were burning papers and maybe shredding papers. We dont know exactly what u. S. Officials found. They were breaking through the back door. Are 2000 active cases of counterintelligence against chinese individuals in the u. S. If they maintain that that is being done in houston, they can probably hope to find more. The tit for tat does not seem to be slowing down between the u. S. And china. It feels like china has measures have been more measured. Especially when you think about the heated rhetoric that comes from u. S. Officials. In exchange for the houston closing. It is not an escalation. Maybe that could be different now. This is in the spirit of the phase one trade agreement. Every further day there be escalation. Something could be rolled out at any time. We spoke to someone who says that Collateral Damage could play out when it comes to the u. S. Dollar. If you say by law, do not possibly china or even withholding the payment on bonds that the u. S. Owes payment on, these things are possibilities. , suchave big implications as for the value of the dollar. Haidi we have seen diplomatic conflict spill into conflicts for a couple of market. This is quite the nuclear option. Successfule they are pushing this idea the moment. He would pounce on that. Cooler heads may prevail. This is a not impossible scenario. Shery the latest on the u. S. China tensions. Coming up, we will take a look at a busy week ahead. That is next. This is bloomberg. We have a busy week ahead for economic data. From China Industrial profits on monday to a fed meeting on tuesday, japans leaders drop Industrial Production data on friday. There is plenty to keep us busy. We break it all down. Great to have you with us. Pmi numbers out of china as well. We are expecting external demands. When you look at chinas trade numbers, you see a rebound in their asked numbers. How encouraging are those numbers . They could potentially mean a rebound in global demand. They have been surprising on the outside. We are keeping in mind that when we look globally, what we have seen happening over the last couple of months is that china Global Exports have ticked up markedly. Lockdown conditions and a weakness in demand that is starting to come through. This was put in the context of this recently. The stronger picture is the Business Chinese numbers. Lookinghat will you be at in order to gauge chinas consumption and domestic demand . Even though we continue to see this narrative where you are seeing manufacturing and production pretty well, but not so much for the Services Sector or the demand side of things. What is interesting to look at his some of the travel patterns. That has picked up markedly in china. The services where you have to be interacting with people. Cinema trips, restaurant trips, that kind of thing. Those are lacking well behind. That is what will start coming through as well as the hard data. Willingness for folks to interact. In an environment where they do not have to. Other aspects of spending are not necessary. They are chosen to be avoided by households. Comes to the rba, what are the chances that this inflation data could result in a more dovish turn for the central bank . What are the implications for the strength we are seeing in the currency . Is almost will get certainly a quarter of deflation. Negative year on year growth. The rba is something they have been slacking for a while. A number of oneoff shocks will hit the inflation index. These are a result of covid. We have Childcare Services that are expected to remain free. That is something the government paid for. Component down to zero. Fuel prices will come through in the june data. We also have shifts in rental markets. We have tenants renegotiating their contracts. That is a big component of the cpi, those housing costs. You put all of that together and there is a lot of negative in that headline index. There is some temporary shocks that will push us into this. We should get a rebound all the way across the year. It is not a strong inflationary environment. It is quite a weaker environment because of this shock. I dont think the rba will be surprised by this. I will be surprised if they change their messaging. Beyond asserting that this is inspect expected. It did not warns them changing direction at this stage. We always appreciate your time. We will get more ahead on the outlook for asia. We are just getting an alert crossing the bloomberg when it comes to googles in australia. The consumer and Competition Commission alleging google misled consumers about the expanded use of personal data. Alleging that it failed to inform consumers. We are looking at a situation where the regulators have launched meetings against group google to take action when it comes to what it sees as misleading contacts on that dissemination of personal data. We will get you more details on that as we get them. But lets get you a quick look at the business flash headlines. Isouth Korean Company capable of producing 200 million covid vaccines by next june. That is according to bill gates. And ae the statement letter to the south korean president. Tech company is selling its stake. Buying two years after it. Dave will give the business greater economy under new managers. This marks a quick turnaround from the 8 billion purchase in november 2018. Rollsroyce is said to be in talks for emergency sales of a unit. They will sell the unit to private equity buyers. The potential sale comes after rollsroyce says it is considering all options to raise funds. U. S. Lawmakers are racing against the clock to pass another stimulus bill. This is bloomberg. 49. 50 i found you good job. Now im gonna stay here and you go hide. Watch your favorites from anywhere in the house with the Xfinity Stream app. Free with your xfinity service. Now any room can be a tv room. Stream live tv, on demand shows and movies even your dvr recordings. Download the Xfinity Stream app today to stream the entertainment you love. Xfinity. The future of awesome. You are watching bloomberg daybreak asia. I am Karina Mitchell what the first word headlines. Cases 16ronavirus million with the death total at 646,000 people. 146,000 with fatalities. Florida has overtaken new york with the secondhighest number of cases over california and the u. S. Death rates fell in all three states of the weekend as well as texas and arizona. Spain is scrambling to stay ahead of new outbreaks dealing a blow to its tourism dependent economy. Weeks after including spain on a list of safe countries, the u. K. Now requires people to return from spain to undertake 40 days of quarantine, after cases spiked in catalonia around barcelona. Norway and spain have also issued travel warnings. J. P. Morgan and Goldman Sachs see europes recovery outstripping the u. S. , thanks to starkly different responses to the coronavirus. They cite a sustainable recovery based on confidence the viruses no longer out of control and say europes relative success will encourage shoppers to spend and businesses to invest. Europe is also seen as doing a better job on maintaining employment and income. Hong kong reported another 128 new cases of covid19 sunday, making it the 50 and wrote were new infections topped 100 making it the fifth day in a row where infections topped 100. Indonesia is close to 100,000 cases, and singapore has passed the thousand. 50,000. Scientists are due to start a human trial this week. Global news 24 hours a day on air and at quicktake by bloomberg. Powered by more than 2700 journalists and analysts in more than 120 countries. Top white house Officials Say the next stimulus package will cut back on the 600 on appointment check in place since march if republicans get their way. Kathleen hays is here the latest developments. Some people have criticized that 600 check because Small Businesses cannot compete with some who got more in unemployment than they did from minimum wage. So what is the work here . So what is the workaround here . We will try to get back to Kathleen Hays in a moment to talk more about the stimulus measures we are expecting and also what we are expecting from the fed. Next we headed to the final days of july and take a look at what is driving Market Sentiment in asia this week, as well as the outlook for a new tech board in hong kong. Despite a challenging week we will end up with four straight months of gains for Global Equities and then some. Lots more to come. This is bloomberg. Haidi lets get you a quick check of the business headlines. Huawei saying it did not stop the u. S. Probe into the chinese tech giant the statement in response to allegations from wallys eagle team which claimed the u. S. Misled canadian authorities by missing key element of a presentation given to hsbc by the cfo. Hsbc says it has no hostility toward while way and did not ensnare the company in the us probe. Indias second largest lender saw profit rise 347 million in that latest quarter held by the sale of the statement insurance subsidiary. Profit camesaid after it set aside 740 million to deal with an onyx except rising bad loans amid the endemic heard it says its growth bad loan ratio stood at 5. 5 . The managing director of hd of sea has reduced his holdings in the lender and selling 7. 4 3 millionhares for 11 dollars. Ito sold shares over three days ,ast week, cutting his holdings after 26 years at the home such retire when he turns 70. The lender is winning the rvr approval for one of three candidates to succeed him. Lets take a look at the start in trading week with Sophie Kamaruddin in hong kong. Futures trading mixed this monday morning with s p minis being slightly. Taking a look at the board we have a nikkei futures moving to the downside of singapore where japanese markets coming back online from the long weekend. Check out the yen extending gains for a Third Straight leveln, testing at 106 after breaching that on friday so we could be began to a lower trading rate for the currency with sentiment bearish on the greenback. Check out the aussie dollar under pressure with rising buyers in victoria putting up hurdles for the currency after it had a 15 month high as the yield gap to the u. S. Widened further on the r. B. I. Shrugging off negative rates. Inflation data do this week will be key to see if the central bank will shift to a dovish stance in australia. Holdingeck in on gold, gains above 1900, shive the 2011 high after a seven week gain, the longest running stricken nine years. Gold futures trading at a record high with open interest on the december contract outpacing august, with gold increasing with u. S. Rates near zero. Lets jump into the terminal with a focus on treasuries. Traders eyeing record low yield due to the benchmark 10 year yield having posted its lowest ever click close. We are seeing the negative real yield trading even though her. Shery lets continue our markets analysis as we begin another trading week. Bloomberg cross assets editor adam haigh joins us. Week, in the cards this earnings and ecodata out of china. Japan and u. S. Gdp numbers. What we be watching to see what shifts the dow for Market Sentiment . First lets look at the gdp data. We will get a read on the Second Quarter in the u. S. , which is looking interesting at the we saw especially costs the uptick in the weekly jobless claims numbers last week. Is there anything that will affect fed policy decisions later in the week, which is very much a call on whether people think that dollar will continue its recent run of weakness and help that pertains to asia emerging markets and whether people are willing to take more risk if they feel the dollar weakness continues and provides that continued tailwind for emergingmarket assets. That is the key thing for people this week, and that could drive the sentiment in terms of whether the dollar move continues, whether people expected to continue, if they get a really dovish feel from the fed that could play into their hands. And later in the week, more chinese data giving a sense of whether the bumpy recovery of the economy that went first in an first out of the Global Economic slowdown, whether there is enough and the incremental china data to give the impression to people that they can see light at the end of the tunnel now and that things are starting to turn around and china. We will assess the policymaker stance in china. We have been through a whirlwind of policy signals, in t