Expected to drop 24 year on year. The futures are looking slightly lower, down four points. We are looking at some of the currencies. As david would say in the last hour, the bloomberg dollar index is on track for its worst july in a decade. A more dovish start from the fomc. No big surprises from the fed, but the lower mantra weighing on the dollar. The dollar index is flat, at least for now. Wellussie in his flat as aussieyen is flat as well. We move on to the commodities and the yield story. The question marks around oil were in focus as well towards the end of play yesterday. You saw a reduction in the u. S. By about 10 billion barrels. That gave some support to crude prices and wti, currently flat. Gold is now 5 10 of 1 . The 10 your yield on year, still below 60 basis points. 57 is barely moved, risch. Rishaad yep. Global coronavirus case is approaching 17 million. More than 660,000 people have died now. The states recording 150,000 fatalities. California, florida, and texas posting record numbers of daily deaths, with florida reporting for the first time more than 200 fatalities. The number of new infections slowed in california, florida, and arizona. China reporting 100 new cases, the most in three months, as restrictions begin tightening at infection hotspots. Province home to millions of muslim uighurs. Hong kong reported 118 new infections. Carrie lam has warned the Hospital System could be overwhelmed. Japan reporting another spike in cases. They have been searching in tokyo and osaka. Osaka is now close to passing tokyo as the nations hotspot. Osaka had zero cases for more than a month. Taiwan extending its state of emergency through the end of august as it fears a second wave. There have been no local transmissions in the country for almost two months. The ceos of amazon, facebook, and alphabets giving evidence at a hearing on the hill, although it is virtually from remote locations. The committees antitrust panel has been investigating for more than a year whether the tech giants are squashing competition. Documents appear to show facebook bought instagram to kill competition. Tom lets get back to our top story. The Federal Reserve made it clear it will continue doing everything it can to keep the u. S. Economy afloat, while it suffers what jay powell calls the worst downturn in our lifetime. Kathleen hays is here. Powell sounds more concerned about the threat of the virus than he ever has. We arehe so concerned if not going to see lockdowns, which seem unlikely at this stage . The fed back in june, had put all those programs in in april, taking so many policy seemed likey may it things were stabilizing, but because the virus has researched , or has started for the first time in so many parts of the country, he says everything will be done. Keep the bond is going bond purchases going. So goes the virus, so goes the u. S. Economy. Lets listen. The path of the economy is going to depend on the course of the virus, on the measures we take to keep it in check. Stress. Nt to it is too early to say both how large that is and how sustained it will be. Kathleen one of the things that jumped out at me, he said you are going to have a lot of workers in closeproximity professions, working in restaurants, going to an office, even, that will not get their jobs back for a while, because customers dont want to be in close proximity. He stressed the need for fiscal policy. Thats where the action has to be. I want to mention one more thing. We are talking not just the u. S. , but asia. He talked about the fed extending their dollar swat packages. To the former number two at the imf earlier on Bloomberg Television, and he said thats great for a lot of g7, g8type countries, but it leaves a big hole for a lot of emergingmarket Central Banks. They need dollar liquidity. He mentioned a country like indonesia. I think the fed is showing this by at least putting out the stimulus, the dollar liquidity, i should say, for the countries , they are signaling to us that the potential for the virus to hit not just the u. S. And other countries is still there, and thats why they are going to be vigilant. Rishaad lets talk about the fiscal side. Congress negotiating that stimulus package. Republicans and democrats getting nowhere fast. Far apart, are they not . Kathleen yes. Republicans waited too long to give us a deal, and they are saying we have to work faster. Very interesting that president trump, speaking today, said there is no stimulus deal inside, pushes for an extension to make sure they get stopgap till get a stopgap bill, which was summed up also by stephen mnuchin. Now, we are very far apart. The president and i have discussed a shortterm extension. [inaudible] kathleen to be a little more specific to what mnuchin said, the federal jobless benefits are running out, the eviction protection is running out, congress is leaving for his longest recess at the end of next week. All of this is putting pressure on them to do something. Nancy pelosi continues to say, item one a stopgap bill. I do not want a stopgap bill. She says that is piecemeal and that kind of approach does not work. My, once a conference of nts a comprehensive plan in place. He said things around here can happen at the last minute, so he is hopeful that things can get done in the next week. The republican majority whip, john kuhn, says they will look for an alternative if needed, although he did not tell the porters what that alternative might be. The ideal thing is if they can somehow have a miracle, if the republicans and democrats could compromise, number one, on the Unemployment Benefits from the federal government, you cut them from 600, is it going to go from 200 for the republicans . Is that we are the negotiation can get them together where the negotiation can get them together . But i think the virus loss negotiation that republicans want is going to be toughest ticket, because the democrats apparently dont like businesses getting protection in a way that might prevent workers from getting the protections they need to get back to work. I am an optimist. It is almost going to be the end of summer. Maybe that will help them want to get something done. Rishaad Bloomberg Economics and policy editor Kathleen Hays there. Be aandemic proving to boon for chip and gadget demand. We will talk about samsung Senior Analyst mark newman. Kongs asext, hong any sector now bearing the brunt of recession, and coronavirus cases adding to their woes. This is bloomberg. Inhaad hong kongs economy the Second Quarter contracted 9 from a year ago, falling from the fourth straight porter. For the fourth straight quarter. We have the chairman of hong kongs sme committee. Welcome to the program. How bad are things . Good morning. Virus isow, the hitting the city hard. Hong kong, we rely on outside , and itto grow our own because thetty bad u. S. , europe, everywhere, the virus situation is not coming down. Smesare seeing a lot of in the export markets, and also the retail and consumer markets, hurting quite a bit. As you know, we have been having new cases recently. This is not good. We thought it was going away, but now it is coming back. I guess this up and down situation will be going on for a while until we find a reliable cure for the disease. Rishaad michael, what about the business you run yourself, freedom Industrial Production . You make garments. Have you furloughed staff . How are you dealing with ongoing situation, and what do you see in terms of demand, globally speaking, as many other parts of the world have actually reopened . Michael well, we have had very tory two months from march may as the whole world kind of stopped. Our customers were not ordering. They were being very cautious and the stores were closed, so they could not do much about it either. We were quite pessimistic. But things are slowly picking up again. We still have to live on and stores have to be open. People want to buy. Somehow it has been a little bit better in the recent couple of months. Open. Ctories in china are they are all in operation. They have the capacity. We are just waiting for the ,rders to come in in hong kong because we are smes. Like a lot of smes lot of smes in hong kong, we dont have a lot of people working in the office. Also, the government has been giving packages over the past not toths to help smes fire people. Theaad michael, is government doing enough here in hong kong, in your view . Michael they are doing a lot, but there is never enough, because the situation varies company to company. Some dont need too much help. The big ones are getting quite a bit of money from the government , but thats only a drop in the bucket. People with a lot of saying the government cant do a lot more. I think they can do a lot more in areas that the previous two theings could not help people who are really suffering, really small businesses, lets say Consumer Product companies were the little shops in the street corners. They really need help. Tom you are in the garment industry. What part of the sme sector beyond the garment sector are feeling the most pressure at this point . We have a joblessness rate above 6 in hong kong. Do you expect the sme sector, which accounts for 45 employment in the city, to have to lay off more workers in the months ahead . Michael it really depends on how quickly the world can recover. 98 of smes in hong kong, a lot are still in business, exporting or importing, and that depends on how soon the other countries are going to be back to normal. See our china partners, the factories, they have suffered quite a bit over the past six months. Now they are slowly coming back to operation. ,hey are employing more people and everyone is in the wei tan watch and see if we can get things going back again is in wait andt and watch watch and see if we can get things going back again. Companies are not going to come back easily with a situation like this. There are a number of people we speak to that think hong kong is going to be more closely aligned with mainland china. The greater bay area is obviously something that the Central Government here and the authorities in hong kong are pushing for. At what point will that immigration a, if it does happen, start to benefit sme that integration, if it does happen, start to benefit smes . Michael we have been pushing the great bay area for a while. We have started to see some results as a a lot of smes and startups are going to that area to start their business or do something other than manufacturing. Lets say the government is also pushing and stripping fundings for Companies Like us. They are giving us funding to do our own branding and also domestic sales, to help us to ell our own brands in china. The starting point will be in the great bay area. At the same time, the same funding can be applied to the Southeast Asia area and a total of 21 countries we have signed treaties with. , i think a lot of people are taking advantage of the funding to test the water. As this goes on, i think it will make Hong Kong Companies more aligned with the china markets. We are now in the stage where we are trying to learn their buying. Abits, their styles this has been interesting because it is very different from what we have been doing as an export manufacturer. Rishaad michael, thank you so much. Dont miss our Bloomberg Television special hong kong on one for more perspective the social economic and upheaval in the city. It premieres on friday and airs again throughout the weekend. Motorsming up, general saw its first quarterly loss since emerging from bankruptcy. We are going to hear from the companys cfo on how china will play a big role in the recovery. Tom secondquarter earnings have shown the pain brought by the Economic Impact of the coronavirus crisis. General motors reports secondquarter data that was better than expected, but it is still the first quarterly loss since emerging from bankruptcy. The gm cfo joined bloomberg following the report and discussed the impact in International Markets like china. China has been nicely recovering from the pandemic, they were early in the process when they bottomed out, which happened in q1, and in q2 we saw a nice recovery. Some of that may have been pent up demand from q1, and some of that is real recovery. That is something we are watching closely. There are a couple of segments that have been showing particular strength. We have been launching key vehicles, whether it is the the buick which is our first all electric suv. Obviously what is happening in the world economy, we need to watch that closely, but q2 we did see a recovery. Is china teaching gm anything about what to expect in the recovery in the united states, or are they very different . I think there are some similarities and some differences. Obviously every country is going through this process very differently, so it is difficult to fully extrapolate over here. But whether it is Safety Measures we put into place or who are more into digital or production lessons we have learned from around the world, we felt like we were able to leverage the learnings from china and apply them in the united states. Tom that was the General Motors cfo. Samsung beat secondquarter profit estimates after avoiding an expected slump on the back of increased internet use, which boosted ship demand and gadget sales. Net income was 4. 6 billion in the june quarter. Samsung has warned of a lackluster loss in the period, but sales picked up in june after stores reopened. The Company Expects earnings to continue to recovery in the second half of the year. Talcum shares jumped in extended trading after they gave a strong sales work as for the Current Quarter and ended a longrunning dispute with huawei. The chipmaker says it is rebounding from the pandemic slump faster than expected, and revenue should come in between 5. 5 billion dollars and 6. 3 billion. Qualcomm also signed a licensing deal with huawei that it says should add about 1. 8 billion to sales. Lets have a look at markets and a look at whats going on in japan as we head towards their lunch break. Looking at general sentiment, which at the moment is just about positive. The nikkei is fractionally positive. 0. 2 . Pix down recovery, perhaps amongst consumers. That is amid wider reopenings from the coronavirus shutdown. We do have this wave in the moment in japan. ,ne company to highlight here nomura up 4. 6 . Banks up, singapores join global fears in capping dividends, but the stocks may suffer. More on this request next. Rishaad 10 29 a. M. In hong kong , 10 29 p. M. In new york. Here is a look at the first word headlines. Jerome powell warning of the most severe economic downturn of our lifetimes as the fed kept rates near zero and vowed to do all that is necessary to aid a recovery. He called the path forward extraordinarily uncertain and said a lot will depend on keeping the virus in check. He says data points to a slowing recovery and he couldnt say how long that may last or how bad it might get. The path of the economy is going to depend to a very high extent on the course of the virus. And the measures we take to keep it in check. The data point to a slowing in the pace of the recovery i want to stress, it is too early to say how large that is and how sustained it will be. The state of victoria in australia reported a record 723 cases of coronavirus. This is 200 more than ever before. There were 13 deaths, most of them in melbourne, which has been in lockdown for two weeks. Queensland is closing its border to all people from sydney after the state of New South Wales reported 18 new cases. Hong kong Police Arrested four people between ages 1620 one on suspicion of inciting secession, part of the tough new security laws. Suspect wantedhe to establish a hong kong republic and said they would fight by uniting proindependence groups. They say the youth made the comments on social media. Wanted tomple, they establish a hong kong country and also pay wanted they to unite all the independent people in hong kong with a bill to promote independence of hong kong. Is preparing to send an extra 35,000 troops to the disputed himalayan border with china as tensions simmer. 20 indian soldiers and an unknown number of chinese troops were killed ring skirmishes in have beenoth sides sending reinforcements to the area along with all artillery, guns and tanks. There have been talks but no resolution. Check the markets. The regional benchmark is down 0. 3 , a lack of conviction from investors in this part of the world despite the dovish sentiment and commentary from jay powell and the fomc. Lower for longer, concerns about the u. S. Economy and the virus and the state of infections from victoria to hong kong and mainland china. 0. 2 sci asiapacific is up so lets move it onto singapore, a suggestion from the central bank in singapore, a request that singaporean banks cap their dividends. That is weighing on the banking sector. In terms of individual stocks, samsung earnings and profits coming in beating estimates on the recovery and chipset gadgets , net income of 5. 5 trillion one won. S trillion Budweiser Brewing is up 7 . It swung profit in the Second Quarter so raising a glass to that stock. Singapore airlines down 4 and up 0. 4 . Moutai to u. S. Dollar, you saw dollar softness, the dollar index is percent,d down 0. 4 silver in similar territory. The wti, there is a focus on the inventories in the u. S. , 10 million fewer barrels so that is up 0. 1 and the yield story in the u. S. Is unchanged at 57 basis points. Singapores authorities asked banks to cap their dividends at 60 of last years levels but say local banks remain resilient. Here with the details is our Senior Analyst. What does this mean for banks . As you can clearly see, stocks are down this morning and investors clearly didnt expect this, but honestly, this shouldnt cause a surprise to people who follow banks. It is the sensible thing to do, because the singapore government has been bearing a fair bit of the brunt of the cobit impact and using its financial muscle to support the economy, which has helped banks, but this is unlikely to go on forever and banks cant remain immune to the losses especially once the moratoriums end. I think the dividend reductions help the banks prepare for the inevitabl