Dozens of earnings. Softbank. Cus on nextn move it on to our terminal chart that shows softbank. They have said they will buyback 12 of their shares. Up more than 40 percent yeartodate for softbank. Dollar has been firmly in focus, given what we have been hearing from the fed. The index is down. 4 . Looking for a fifth week of decline for the u. S. Dollar. Gold is up. You have seen a little bit of softness towards the end of the session. Can it break above 2000 and stay there . Crude is at 40 a barrel, up. 8 . There is concern. Is a concern in terms of the pandemic. Point. Own one basis look at lets have a the first word news, kicking things off with the global coronavirus case levels. Passing the 17 million mark. All out with a Record Number of deaths. California had its second deadliest days deadliest day. Texas, hospitalizations dropped for a ninth straight day. Almost 10,000 people in the u. K. A earlystagen vaccine. Almost 1000 new infections in germany. The australians have a cases are their slightly down from wednesdays numbers. Melbourne is entering its fourth weekend and lockdown. Government has denied attacking free speech. The decision came over social media posts. Candidates says it is a sign of relentless oppression from china. Lines crossingme the terminal. The treasury secretary been eating with pelosi on meeting up and they are negotiating over the plan. They still seem far apart. Negotiators are still far apart on other issues. Is Steve Mnuchin after meeting with nancy pelosi. He says it will take time to get the deal done with concerns about additional stimulus checks running out at the end of this week and other issues that they need to iron out. The republicans put forward a proposal of 1 trillion. The clock is very much taking on these discussions because they are meant to be going on a break. Steve mnuchin is updating us on those talks, saying they will continue discussions tomorrow and saturday. Spending with virus cases rising again, can they did themselves out . Kathleen, what happens in the Second Quarter . Kathleen people stop spending because they are locked at home. Truly onepending is for the history books. It is not like people did not expect the number, but it just drives home the point how badly this has been damaging the u. S. Economy. The quarter at just over quarter number and the annualized quarterly number is down nearly 33 . If you want to compare this to the recession, they lost more. Han 10 Consumer Spending plunged 34. 6 . Thirds ofre than two the overall gdp drop. Take a look at this chart. Services down 43. 5 . Remember. People could not get certain operations if they were elective. Airlines, everybody demolished by the lockdown. Down 11 . Hases only people did shop from home. Remember. This is an interesting juncture. Andil sales jumped in may june. Cannot continue . You mentioned the rise in continuing claims for jobless benefit. Claims for more than four weeks. They lose their job and cannot find one. A lot of those close proximity want to come not in and had anybody close to you. More importantly, talking about what is going on with the be done, they have to by the end of next week. Why they have said, can we pass a stopgap bill . Then hammer out the rest . So many economists are agreeing that given the virus has continued to improve, given that you see this big pullback, that argues for the stimulus to to continue. Ort a lot of pressure on both parties in washington. Rishaad kathleen, we got these numbers. That is even before they were officially out. The president was calling for deeper Economic Reforms as well. Tell us about how this is all playing out. Kathleen china feels like it is in a goods on. Spot. 51. 1. Anything above 50 means growth. A little stronger but holding steady, showing things are improving. The manufacturing and Service Numbers let me give you the official number. Not quite as strong, but so what . Study above 50. This is pretty much what was expected. Roaddent looking down the saying that china should speed up its dual circulation growth model. Primarily Consumer Spending, but you are trying to get stabilizing trade, etc. The problem for china is, people have been a little disappointed in consumer demand. Worker, whose job is threatened, who has lost their job, bible you be super enthusiastic about spending . I think every government is dealing with that. What is interesting is maybe china will put a little more priority on avoiding a debt bubble and open up the gates a little further more stimulus for the economy. Rishaad kathleen, thank you. , otto surging on its nasdaq debut. We will be hearing from one of its investors. The next big earnings from big tex. We will review the numbers that took wall street by surprise. Stick around for that one. This is bloomberg. Rishaad welcome back to Bloomberg Markets, staying connected during the pandemic. Quarterlyssive earnings, jumping about 5 in the extended session. Crushing wall street forecasts. Lets discuss all of this with the president and chief analysis of research. Great to see you. They were way above anybodys thinking. Go through what you takeaways were. Tech have been hearing companies. Even in the previous quarter, we sawtek immune some of these things and not only are they imbued now, they are hugely benefiting. We have all become so dependent on technology. These other companies that are delivering the products and services we are all using. Look at apple. The iphone sales members actually showed growth. Still managed to eke out. Odest growth everybody expected them to decline. Their service has been this business, continuing to grow. Their business was strong because of all the work from home trends we have seen around the world. Amazon completely crushed it. Why . Because people are spending a lot of time buying things online. They are doing a lot more Online Shopping than ever before. They have their Cloud Computing service, which is what delivering Services Like netflix and other things are being set run on. With alphabet. A surprising take on google was overall avenues went down and it was ad revenue in particular that took a bit of a hit. How does that look moving forward . Of course, those are the companies that have been hurt the most by the pandemic. Facebook once again surprised a lot of people. There has been a lot of oncussion about the boycott advertising. Here we are. Power,h having even more even after yesterdays hearings and testimonies. It was particulate to on the apples earning. Then making the point of, it is a competitive environment, but i think they made 28 billion last quarter. Absolutely incredible. We had those hearings in congress with the big four. Willnumbers like this, it add more to the mill. On top of that, we have the Australian Government coming out saying that facebook and google need to share revenue in a dispersed move like this in the world. There is more pushback coming through. Numbers are only going to increase. They absolutely are. Were a lot of crazy questions, but there were a few to newly good questions asked of the ceos yesterday. They raised good points. Those concerns will be here. Question google as well for the content on their site. These are platforms being used in ways that people did not think about, initially. There are complications to that. Clearly, if you look at it from a basic fairness perspective, it makes sense that they would have to pay money for that and it makes sense that some of these things being challenged, potentially a break apart might happen because level of influence, control and power is pretty staggering. That Regulatory Environment is a potential headwind for these countries. What do you think investors should be aware of given how well they are doing . I do not see anything significantly that will slow them down. Here in the u. S. , we will be in knocked down for a lot longer. Other parts of the world are moving past that, but even in other parts of the world, some companies have started to bring the Companies Back but only some of the time. There will continue to be work from home. , these companies are contributing to our lives, whether at home or at work. I think they will continue to grow quite strongly. You could argue that the forward somed Overall Societal and Business Trends that were probably going to occurred over the course occur over the course of a few years. This was a future that we were headed towards anyways. It just happened at a significantly faster pace. Computing factors into that. What about the hardware side, when it comes to apple . Is that a potential vulnerability . They said they would release the iphone a few weeks later than planned. Is there still demand Going Forward . I think so. The fact that they were able to get growth this quarter this is not traditionally been a Strong Quarter anyways. Lets remember the next line of it will best of 5gbased and everybody is looking for 5gbased phones. It will be significantly more important than what they have done for the last few generations. There are hardware opportunities. Pc companyn other numbers extremely high. Demand . T pulling in not everyone has gone out and upgraded their pc. They will need them. They will recognize that connecting devices of all kinds becomes important. Has i think that hardware growth opportunities. I think it is something that investors should be thinking about. We appreciate your analysis. Have a great evening. Odonnell. Airbus pares back production for its my bodied jets. Our interview with airbus ceo, next. This is bloomberg. Tom welcome back. Airbus burned through 5. 2 billion dollars in the Second Quarter. Significantly reduce undelivered planes in the second half and is looking to ramp up production by the end of 2021 or 2022. In this Second Quarter we have completely adopted our system to what we think is the new environment. From a pollution rate of 60 per month, down to 40. We have adapted to the situation. To understand what is the right calibration, moving forward. It is appropriate for 2020, which will be the vast majority of 2021. We are awaiting signals from the airlines and from passenger theyic, to understand when will recover. We think that will be a recovery. What is more difficult to assess when. There is a lot of uncertainty and changes. Adjust pollution rates and the supply chain to the new, difficult environment. He said you are trying to get it to where it is neutral on the cash. Deliveries are key to that. How realistic is it to get a neutral cash flow position, given the environment you have described . Planes arenumber of ready to deliver because of the situation with the airlines. 45 planes this will contribute to the balance and cash flow. Objective because there was a lot of uncertainty. We are gaining visibility when it comes to the second half of 2020 and 2021. Objectivere that our is to be cash flow neutral on the second half of 2020. A quick look at what is going on with the markets as japan heads into its lunch break. Some declines taking place. Production rising for the first time in five months. By theomy that had pandemic. Looking there at the yen, governor kuroda is projecting more realistic economic forecast. Softbank is unveiling a new program. This is adding to the repurchase. Lans to help lift shares softbank down 2. 3 . Rishaad it is 10 29 in beijing and hong kong. 10 29 p. M. In new york. This is Bloomberg Markets asia. Here are the first word headlines. The First Official gauge of chinas economy in the second half shows the momentum of the economic recovery continuing. Pli in july joes rose. Dropsnmanufacturing gauge to 452. Improving conditions from the previous month. The u. S. Has been plunged into recession with secondquarter gdp contracting 32. 9 . That is the worst result since the 1940s. The spending makes up two thirds of the economy. Jobless claims have risen for a second week, rising by almost one. 5 million. There are now 17 Million People filing for ongoing benefits. The most since early may. Democrat andthe republican lawmakers have the client president trumps suggestion of due claim delaying the election in november. President trump made the unsubstantiated claim that november would be the most inaccurate and unfortunate election in history. Trump does not have the power to delay an election and would need congressional approval. Fromeader who led taiwan dictatorship to democracy in the 1990s has died. The former president passed away in hospital on thursday where he had been for almost six months after suffering heart failure. s first nativeborn tagus e. He broke away from the one china legacy. He earned the wrath of beijing who called him the sinner of 10,000 years. Tenghui was 97. There seems to be a rush to buy computing chips. Exports through hong kong are jumping in the first half of the year. This get to the greater china. This is all about ending the special status for hong kong and a rush to get as much through before things get locked down as it were. That is right. It is about Chinese Tech Companies changing what they are doing in anticipation, doing this kind of business from hong kong would get a lot harder. All of have seen is that the tension over the national and then actually doing that in the first six weres of this year reexported to the mainland. They jumped by almost 11 . That is much faster than the overall rise. Generally, they are stocking up. What are some of the broad implications for the Tech Companies based in Mainland China but also the Companies Based in hong kong that buy in from u. S. Manufacturers . For the hong kong companies, it is that this trade is a relatively important part of the economy. It is another blow against the special kind of role that hong kong has long played for china. That is a conduit. For the Tech Companies themselves, it is a bit of a shortterm fix. We all know the difficulties that Huawei Technologies is facing. Others are doing that. It is becoming increasingly difficult for Chinese Companies to get the higher end chips that they need. Tontually, they may need change their products. They may need to change their services. Is development in hong kong an indication of that much broader trend. That was jeff black in hong kong, thank you. Hong kong is allowing daytime dine in at restaurants from friday, reversing a blind been. Ban. Versing a edward spoke exclusively to Bloomberg Television about virus containment efforts while in the midst of a deep recession. We are tackling this very difficult pandemic situation. By and large i think hong kong has been trying very hard to damage. The this is still an obtainable number, about 3000 cases. I think every day, we need to tackle it. O i think there is no quick fix. We have to work with the community at large. There was no quick fix. That makes the criticism over the reversal. This made it even more curious. Do you blame the general public and businesses about being concerned and losing confidence in the policy direction the government is taking . Certainly not. I think this is a new experience to every government. There were different faces trying on different measures. Hong kong managed to keep the city running. Some people stay at home to work. Some go back to officers. We are struggling. Hong kong is a highly complex city. People dine out frequently. I think any policy would have to be based on science. With tremendous respect given to the advice given to us. Thic it has to be acceptable every day, we are adjusting that. This is quite humbling. Those awful retail Sales Numbers again from hong kong. You have a very strong reliance on cheneys the chinese mainland shoppers. Does hong kong need to diversify . How would you go about trying to offset this decline . At the moment, tourism is almost zero. Cant count on visitors to boost our economy. Financial services be robust. , how longright spots will they last when there is Political Uncertainty . Would the disqualification of candidates in the election, as we continue to see the repercussions coming from international measure against hong kong including the removal of the special training status for the city . Weeks plane to the reason why this piece of legislation is needed. We might have a vacuum. People in hongo kong, there would be a lot of worry aboutd some whether this new low would change. At the same time, a lot of Business Community leaders were saying that not long ago, like late last year, they were worrying about the street being a very damaging sort of disturbance. We are seeing the return of social stability. In ank we are struggling battle. In our case, trying to restore confidence. I think nothing can be talked about. I think the whole world would need to recognize it. That was edward yau. Kongs have more on hong economic and political situation. Dont miss hong kong on edge. It premieres at noon in hong kong. Coming up, chinese electric sword on its nasdaq debut. We will hear from one of the early investors about the broader outlook. We will see what else they have their money on. This is bloomberg. Chinese ev maker, li autos, their shares closed 33 higher after they raised billions of u. S. Dollars. 1. 1 billion u. S. Dollars. That is despite the increasing scrutiny over chinas access to u. S. Capital markets. Its chinese rival, neo has almost doubled in value since 2018. Teslas shares are up 255 this year. Joining us now is the future y partner. Scover invested 36 million. Congratulations on the ipo. You made a good bet it seems. It is the appeal behind this company . Thank you. If you look at the market, china market, fivest years ago, the only question vct for us as an early stage was how to merge and choose the product strategy. Are providingers pure battery electric vehicles. To choose theike one that can think and act different. One thats the first commercialized expanded branch electric vehicles. We think it will help solve the challenges of the