Transcripts For BLOOMBERG Bloomberg Daybreak Asia 20240712

Arizona, and hospital cases in california all marking new highs. Plus top advisers to President Trump are set to urge the u. S. To undermine the hong kong dollar peg to punish china for its crackdown in the city. Ons get a quick check up how markets are set up for the open. Here is Sophie Kamaruddin in hong kong. Sophie in asia this wednesday, we are seeing a mixed start to the session with focus on china and if mainland stocks can keep up that rally we have seen for six days. Futuresd 14 so we have in the green for the most part. Hang seng futures settling higher after the rally did stall in hong kong on tuesday. Switching out the board, checking in on the hong kong dollar, which continues to have the 7. 75 mine as they continue to defend the peg, we are seeing little reaction in the curb. Jumping into the terminal for a big picture book, low 200 pips after the spike we saw in may but staying elevated on economic and political uncertainties. Tracking any reaction to a bloomberg report. They are weighing proposals to undermine the hong kong dollar peg. That is the least likely option among possible sanctions. Terminal forthe another big picture view, there are over 5 trillion u. S. Dollars dollars inits deposits around the city. Haidi. Haidi the spread of the coronavirus meanwhile has produced another trough of global headlines. The infections set records across the u. S. With new the countryhs as closes in on 3 million cases per australia in the meantime is putting melbourne back into lockdown. And the brazilian president , gyre bolsonaro, has tested positive. He has long downplayed the effect of the virus on latin americas largest economy. He covers health care as a Bloomberg Opinion columnist. Why are they so dramatically different when it comes to australia and the u. S. . [no audio] haidi just want to check that you can shery we will try to go to mac neeson once we get him max neeson. We are discussing coronavirus cases. Thats get a first check of the first word headlines. U. S. Lked about the dollar peg and advisors in the Trump Administration said to be considering undermining the hong kong dollar peg to its u. S. Equivalent to punish china for tightening its upon the city. We are told the idea could include limiting the ability of to buy u. S. Nks dollars. Sources say it has been raised as part of wider discussions at the state apartment but has not reached the white house and may not progress further. The vice chairman of the Federal Reserve says the bank can do more and will do more if needed to boost the u. S. Economy. Richard clarida says the fed has a lot of accommodations in place but would likely turn to additional Forward Guidance and asset purchases to support the recovery. The fed held rates near zero last month and signaled they are likely to stay there through at least 2022. Malaysia cut its benchmark rate to a record low, warning of threats to an economy reemerging after months of law down. Bank negara dropped the overnight rates by 25 basis 1. 7 5 , its lowest level in records dating back to 2000 four. Stimulus will accelerate the recovery from the virus amid three straight months of deflation and the worst Unemployment Rates in decades. Fell for aports fourth straight month in june as Global Demand struggles with the coronavirus and rising tensions between the u. S. And china. Outbound shipments fell three point 8 , slightly more than forecast, while imports plunged more than 8 , giving a surplus of almost 5 billion u. S. Dollars. Exports to southeast asia, japan, and europe fell out rose to the u. S. And china. Staying with the virus outbreak, max neeson covers health care and is a Bloomberg Opinion columnist. We have seen a pretty dramatic difference in government response when it comes to australia. We had a record of 200 cases in melbourne overnight and we are seeing the Strict Lockdown come into place. The likes of texas seeing 10,000 cases a day and a very different response. Just athink it reflects different amount of what governments or people are willing to tolerate. Theres a lot of Different Things behind that. You know, the u. S. Federal government response has been a little bit lackluster. Mostly the states and the notion of the sort of disconnect between controlling the virus and protecting the economy when the two are largely the same. You are not going to have a successful reopening if the virus is allowed to spread so you have these two very different approaches. One where even a miner outbreak is cause for renewed efforts to bring cases under control and the other where the strategy seems to be or the outlook is that the cat sort of out of the bag and any renewed lockdown just isnt being contemplated in many places. Shery someone that has long downplayed the coronavirus pandemic has been brazils president , jair bolsonaro, and we are now hearing that he has tested positive for the virus. How severe is the outbreak in brazil right now . Max it is quite bad. World the worst in the perhaps outside of the United States and one that consistently is growing with a pretty significant death toll and it is one that is likely to continue in large part because, as you even as heresident, contracts the coronavirus, is continuing to downplay it. Flung the just the narrative, when quite clearly, the data has revealed otherwise in countries around the world, continuing to push hydroxychloroquine, even though there is consistent evidence that it is not effective. Thehopes that perhaps experience of having contracted the virus will turn that around and lead to more robust policy in brazil Going Forward. Haidi on the vaccine front, we learned the new funding given to new types of therapeutics as well. In this race for a treatment, are we getting any closer . They think they can get 100 million doses out by early next year. Those timelines are always to be treated with caution. That one in particular. That novavax vaccine, they will not be able to start a phase three Clinical Trial until later in the autumn, so its going to be a little bit longer. At on top of the fact that add on top of the fact that we have yet to see first stage Clinical Data from that company, one that has not successfully develop a vaccine. Not that other vaccine makers arent very much in the same boat, especially in making pandemic in a pandemic context. It is worth reading these announcements, even though they are what you want to see in this environment, given a lot of different vaccine approaches the best possible chance to succeed as rapidly as possible, you know, still a great deal of uncertainty about timing on the potential success and on top of that, the definition of success, whether any vaccine is going to be durably protective, whether play a broader epidemic control role of containing transmission or whether it just protects against symptoms. Think about flu vaccine versus the measles vaccine is the type of comparison here. All things that are very much in the air and we will only know more once we start to get more robust data over time. Shery max neeson with the latest on the pandemic. Still ahead, how the virus headlines are feeding into market sentiment. The Investment Management has more than 3 billion of assets under management. The cio joins us next. David chow,ak with who is eyeing start ups in china with a near 900 million fund. This is bloomberg. U. S. Futures trading higher slightly at the moment following a down day, this amid signs that the World Economy still has a long way to go to get back on track. Despite this, our next guest is we have likely already seen the bottoms for the year. Joining us now is the chief investment officer, terri spath. Great to have you with us. You actually disagree with the idea that there is really no alternatives to stocks because we have low rates. What do you like in the markets right now when everything seems pretty frothy . Terri a lot seems frothy but that is particularly i am speaking of the u. S. Stock market, and Even International stocks to some extent. Volatility is going to be high. The risks are still quite large. Drawdowns are a big risk and that can do a lot of damage to your portfolio. Everything falls a lot faster than it goes up so we are being a little bit more prudent in taking a broader look at the opportunities out there. Not lowinterest bonds and not overvalued stocks, but things like emergingmarket debt, highyield corporate bonds, preferred stocks, even Municipal Bonds. Shery this gtv chart on the bloomberg showing how if you talk about volatility, you are not going to find it. Of course, we saw the huge spike back in march, but right now, the Municipal Bond index showing volatility. Bloomberg barclays index at the lowest level since at least 2001. What are the opportunities you find here and how do you factor in the potential of more stimulus measures coming from the u. S. Government . Terri theres is so much and theyreing in, already has been so much in the central bank, not just in the u. S. , but around the world. I think this gets back to your original point, which created a stampede into the stock market, but at the same time, as your show has covered so well, the data is not good out there. The Economic Data in fact is quite scary, so things like Municipal Bonds, which did get really hammered like everything not in march, are necessarily overvalued and certainly from a risk perspective, so we look at every in relative to each other and highyield bonds have been doing almost as well to any stocks, but that drawdown is so much less and the speed with which you could lose money and munis in munis and that is why we like that on a relative basis to u. S. Stocks right now. Haidi that may get your picks when it comes to emergingmarket debt, which is your other preference in the investment area. We have clearly seen demand rebound alongside issuance here in asia. What do you like in this part of the world, because clearly, that demand has not been played out equally when it comes to asian paper for . Terri asian paper . Terri there are a lot of things that can be pulled back. We look at things on a relative basis and certainly, relative to emergingmarket equities, our favor is to emergingmarket debt right now and that is, for the obvious reason, which is the less volatility, you have that coupon that can cushion things, but also, it is just a more Diverse Group of countries that are represented in emergingmarket debt versus equities, and its also, you know, possible that the yield on those can sort of carry investors through the deteriorating fundamentals until things are back on the upswing again. , we a risk perspective definitely favor emd over the emergingmarket equities and theres two reasons had a little bit better return, certainly recently, and certainly a lot less risk in a market where we think there is a lot of risk that we want to avoid. Haidi what are your parameters . Would you be looking at investment grade, looking at china, looking more across the philippines, where theres been increased demand for some of those Southeast Asian ems as well . Asia or central and eastern europe, they could underperform versus some of the more closed economies that are out there. Such as parts of china, colombia, and so at the country level, we are more constructive towards mexico, towards indonesia, towards russia, and obviously more negative as many are to chile and brazil. The risk we think is not Getting Incorporated is there could be upside if china has more of a vshaped recovery. Youre not putting that as a high probability but that is a possibility that has not really been priced in so that is where we would like to put out there that theres some upside potential, but again, more constructive towards a certain countries such as mexico, such as south africa and russia, to capture that yield in emergingmarket debt. Shery how much are you factoring in potential u. S. Election risk . We continue to see the substantial lead by joe biden over President Trump. We have seen in the past when President Trump was elected in 2016, how em currencies took a beating against the u. S. Dollar given the harsh rhetoric coming from the president. Terri that is a great question. I think that that is typically a very big issue here in the u. S. That is not getting the kind of attention that it would because everything in the immediacy of the coronavirus. The elections in november could go in a bunch of different directions, including a possibility of a total democratic sweep. I dont think the markets would be amenable to that because of the Biggest Issue that a democratic ticket would bring to the table is a shift in the tax picture here. That is something that is going to garner more attention Going Forward because we could have some changes or not and how that plays out, the market might react differently depending on the impact because they are different sides of the aisle at this point. Shery always great to have you with us. , Investment Management cio joining us. Coming up, we will take a look at why some top advisors to President Trump undermined the hong kong dollar peg. This is bloomberg. Shery lets get a quick check of the latest business flash headlines. Tictok video sharing at is playing up its ties to userca and denying its data to beijing. It says it has an american ceo, employs a staff in the u. S. , and would never divulge information to authorities in china. President trump says his administration is looking at a range of measures, including banning tiktok from the u. S. New guidelines that would Block International students from remaining in the u. S. For Online Learning are throwing plans for tuition into chaos. The harvard president says around 40 of its students will return to campus next semester while all courses will be taught remotely. Others may have to leave or transfer schools. There are more than one million foreign students in the u. S. United airlines is warning the surge in virus infections in the south and west of the u. S. Threatens the nation recovery. Shares slumped and made a fall in bookings, particularly at its new york hub as the metro area imposes new quarantine rules for travelers. Was just 16 of 2019 levels at the start of this month, half what it was earlier as travel demand began to rise. Bloomberg learned that top advisors want the administration to undermine the hong kong dollar peg to the u. S. Dollar. It would punish beijing for its recent crackdown on hong kong. Lets get over to our National Security editor who joins us on the line. It would be pretty extraordinary. This takes it to a level of not just sanctions but currency sabotage, if you will, not to mention we do not know quite how it would work. Is this idea something that would find support in capitol hill . Terri on capitol hill, for sure. Theres always kind of a wide spectrum of views on how the u. S. Should be dealing with china and i think we have seen since the start of the Trump Administration, even within his own white house, a wide range of views when you go back to the early days and people who were pushing for very strong tariffs and other officials who were a little more nervous about taking that kind of approach. What we have seen here from our reporting is that there are some senior officials on mike pompeos secretary of state staff who are putting forward a range of options that would be pretty disruptive and pretty extreme by historical accounts. A question about whether this will get to the president s desk and whether pompeo will accept them and end up in a debate with other cabinet members, not whether to go through with them. Of relationste between washington and beijing that these kind of measures which never would have been considered in the past are being discussed at a fairly senior level. Shery we are seeing a series of measures to push back on beijing. Even today, we heard from secretary pompeo talk about potentially banning tiktok in the u. S. Bill there is a whole range of actions being taken now or being debated now and the white house, the state department, the treasury department. There is a lot more debate going on about tiktok. It is vacuuming up personal information being provided to china. The company says that is not true. It is among those measures the u. S. Has praised indias recent efforts to try to ban some apps from their market. The u. S. Announced that they will be placing sanctions on chinese officials who restrict access. On a whole range of fronts, we see the u. S. Trying to take a much harder line. Still, the situation with hong kong is kind of on a different level. It is such an important Global Trading center, as we all know, and the repercussions of any big market moving activity would reverberate around the world. Haidi we are also seeing some concern when it comes to the reaction from big tech, talking about facebook or twitter or google or apple, in terms of how they deal on the privacy side with the hong kong government. Is there a real concern about heading towards, i guess, one country, one tech system when it comes to hong kong now . Bill sure. Wheres administration, there is this range of views, secretary of state pompeo said that from his point of view, hong kong has just become another chinese city. There is a whole range of thought about what china is doing and how seriously its making a move on hong kong. There is certainly that group who argues that, you know, essentially, it is becoming very country, one system situation. You should not distinguish between hong kong and shanghai or beijing or any other chinese city because essentially, china is treating it all as one, you know, geographical unit. Shery we also had heard that chinese firms received some of was u. S. Relief fund that dispersed through the ppp program. Quickly, how much are we seeing in terms of the u. S. Being able to push back against chinese firms . Bill it is an interesting debate. It does look like chinese linked firms who got some of that stimulus funding were not totally playing by the rules and that is the way the law was written. They were eligible to do so. I think china critics will have a hard time figuring out how to claw that money back to round the other hand, it will be a political talking point here for many people in both the republican and democratic party. Shery bill faries, always great talking to you, our u. S. National security editor. Coming up, singapore heads to the polls this week. What the opposition has to say. The secretarygeneral is up next. This is bloomberg. At the beginning of the crisis, there was a lot of tocern that we were going see a lot of foreclosures, a lot of evictions, significant challenges in terms of business those thingsall have come in much less severe than i think most might have expected. People are getting nervous again. As misleaders are getting worried. Consumers are getting worried. And there is a real sense that this might go on longer than we had hoped and we had expected and we had planned for. , that lack of confidence, is a critical thing that we all need to be mindful of, that i definitely need to be mindful of. Haidi the atlanta fed president s beaking about growing concerns that the crisis may continue for longer than anticipated. Lets take a look at how markets are shaping up after we had u. S. Investors taking a bit of a breather, putting an end to the best rally for the s p 500 we have seen this year, but futures ly positive. Est you have singapore traded nikkei futures off by. 4 whereas hong kong futures have been pointed higher earlier on in the morning. 10 dollar yen holding at seven. Dollar outperforming on these haven demand returning against every g10 currencies except for the pound, which are performed. U. S. Crude lower on concerns about diminished demand on the slower than expected economic recovery, but we did see gold outperform in the overnight session. One of singapores leading opposition parties has criticized the government for using a fake news law to dispute comments from its chairman. Earlier this week, a representative from the Singapore Democratic Party said they actively discourage testing. The government invoked its fake news law, forcing Media Outlets to add a notice saying his quote contained false statements. With singapore going to the polls on friday, we asked the secretarygeneral for his response to the governments actions. Things that are not accurate and everybody does it, then come out and clarify it. Why use the law . We can have healthy debate on it and it is still something which we feel is a complete distraction and it is not something that is healthy for the discourse, political discourse in singapore Going Forward. Inthe ruling party has been power since 1965. There are 11 opposition parties this time around in this election had although opposition parties may not be competing against one another, why hasnt there been better coordination among the Opposition Party . I think it takes time to , thatup that confidence trust, and that is what we wanted to do. That is what we started off calling for, you know, a meeting in 2018. We tried to encourage. In the past, you would not have even seen in opposition parties coming together like this. We are off to an encouraging start and i think in this election, you will see some of the opposition parties coming together, coming up with a common message, and that is what we are going to do Going Forward. I can only see things building up. Some political commentators say the opposition will be obliterated in this election. That the ruling party will win all 93 seats. Your take on that . Chee it is only in the last decade or so, with the advent of the new media, social media, that we have had a chance to be able to break into the National Political discourse, and we are doing it right now, but in general, everything is in the hands of we are not just fighting against the ruling party. We are fighting against the entire state machinery. Singaporean viewers, as i said, many of them understand this, but still, a large segment of than having lived for more half a century under oneparty rule, still have difficulty in getting, accessing the information, as far as the opposition is concerned, to make that really informed position. Going all out, and access to realistically, can you take one third of the seats in the selection . Chee even for example, your thatver polls you have is not encouraged in singapore, and exit polls are banned. You have all these laws in place and you wonder, ideally, i can gains in a crystal ball and tell you, but all i know is that for us, in the Singapore Democratic Party, we have 11 candidates. We have a clear message to singaporeans, hoping we can get all 11 candidates. 93 seats up for grabs. We are fielding 11 candidates. Can you shed some light on the kinds of policies you would implement if you were in government . Term, wethe immediate are facing an existential crisis in terms of the Economic Situation caused by the coronavirus situation. The one thing you want to be able to do is to make sure that people have continued to have confidence in the economy so they can continue spending as normally as they can. What policy will be in place for that . Chee we want to see at least some Retrenchment Benefits for people and by all accounts, we will see tens of thousands of people. The projection is people getting retrenched. What did they do when income stops coming and the bills continue to pile up . You want to get some money so they can sustain this shock and when they do that, they will use the money to spend locally and make sure that businesses survive and do not go into a tailspin that have to retrench and then you are into a deflationary cycle. Shery secretarygeneral chee soon juan. Lets get a quick check of the first word headlines. Coronavirus numbers are setting records across the u. S. With hospitalizations in california hitting a new high while florida and arizona also set new marks. Global cases are near 11. 7 million with deaths above 540,000. U. S. Infections are approaching 3 million alone with a fourth day where new cases rose above 50,000. U. S. Fatalities are now recorded at over 130,000. Australias second largest city is entering a sixweek lockdown as new Coronavirus Infections threaten a second wave. From midnight wednesday, people must remain at home in melbourne except for essential work and services, medical treatment, or education. Victoria recorded almost 200 new cases overnight, the biggest daily increase since the pandemic began. The premier says significant steps are needed. Hong kong has reported its highest number of local virus transmissions and threemonth. Nine in cases with at least five being unexplained so far. The department of health says the epidemic has changed rapidly. The situation has become severe. The escalation comes two weeks after the city eased social distancing curbs after hong kong had seemed to have largely contained the pandemic. Violence has broken out in serbia over new virus curfew with protesters briefly storming parliament in belgrade. Country set to go back into lockdown this weekend because of a spike in covid cases that field hospitals. The balkan country of 7 million lifted one of europes strictest lockdowns in may. Tuesdays death toll of 13 was the highest since the pandemic began. Coming up next, rising tensions between beijing and washington are not turning off all Foreign Investors in china. We speak with the cofounder of one fund dcm that has raised money from both sides as well as from japan. This is bloomberg. Haidi we are just getting some clarification now when it comes to the u. S. International students. They will have to obtain the appropriate visas according to the state department and have an opportunity to study in the u. S. In full. Temporary accommodation from the state department saying it provides greater flexibility for nonimmigrant students to continue their education in the u. S. While also allowing for the proper social distance in open and operating campuses across america. Andomes across anger confusion after we heard from the u. S. Immigration and Customs Enforcement saying that people could face the partition unless they change their institution to one that had it in person tuition, so potentially, they would be withdrawing u. S. Visas to students who were studying at institutions that provided just Online Learning, so just a development there. Despite rising tensions between the u. S. And china, not all investors are turned off from the region. A new fund with a china spoke china focus has support out of japan. It has raised 880 million for the selina joins us now with a special guest. Selina i am here with david chao, the cofounder and managing partner at a Global Venture capital fund with more than 4 billion under management. David, you have just raised 880 million. Why raise this capital now a made a global pandemic, economic disruption, and where do you plan on investing it . David thank you. The reason why we raised the fund right now is because it is probably the best time to invest from the perspective that Great Companies often are invested during a down cycle. And certainly, the Coronavirus Impact globally is probably going to create recessions around the world, and that is when Great Companies actually get funded. During recessions, that is when Great Companies are founded. In what sectors in particular, in what geographies . David well, we believe that the u. S. , china, and japan markets, the three largest i. T. Markets, continue to show great promise, in particular, i think u. S. And china, they lead the Technology Market today. Is an actual location for Great Companies to come out. U. S. Andover, the china has been the leading returns generated for the Venture Capital market over the last decade. David, given growing calls from washington to decouple financial flows between the u. S. And china, many of your limited partners include u. S. Pension funds and endowments. Are they worried about investing in china at this moment . David so i think there are two categories of investors that you mentioned. I think one group leaves the longterm growth in china and the pacific rim will continue to grow. Boths you can tell, chinese tech and u. S. Tech companies are at an alltime high in terms of market cap as public companies. I do think there is a growing Smaller Group of investors who are viewing the risk and kind of shying away from investing heavily. But to me, when you look at the actual numbers when we interact with many of these investors, i think they will end up being a rounding error because at the end of the day, people still want to continue to invest in both markets, because again, tech is going to be even more important post covid. But there are growing risks to investing in Chinese Companies. Dcm was an early investor in which merged with tiktok, which is facing great scrutiny around the world. The u. S. Is considering banning tiktok in the u. S. What does that mean for the ability of Chinese Internet Companies to truly go global . I think Chinese Companies will continue to truly andlobal, just like sony panasonic from japan. Areink where the challenges and what people would consider strategic areas, so i mean, huawei obviously, in the communications space, communications, energy sectors, those are very sensitive areas for any country. I think with tiktok, what we are seeing is the rise of social media, whether it is something that is strategic to a country or not. The verdict is still out. Traditionally, china has been a sandbox where they did not allow facebook or twitter to come into china. Does the u. S. Do the same thing . The u. S. Has freedom of speech. There is a lot of core values that blocking Certain Services from other countries, you know, it defies the values of the United States. It is going to be quite tricky, i think. Selina are you worried that could serve as a model that they could be locked out of certain markets . David i think potentially yes, but i think india is actually following the china model. That broughtone facebook, twitter, and other social networks. I think india is following suit. It has worked well for china because the indigenous players, whether its wechat they are doing quite well in those countries. , yes, its limiting for china, but that is exactly what the u. S. Companies felt trying to get into china. Again, the question is, you know, what sectors . Are thedavid, what implications of the hong kong National Security law for Tech Companies . You have facebook, twitter, google. Tiktok said it will be exiting the market. Tiktok inl, i think hong kong is probably a little bit more of a pr player to make sure that they do not, you know, be viewed as a purely chinese company. Because a lot of the investors in that company are actually americanbased. , after it goesng over this bomb, actually will flourish in terms of a market for Chinese Companies to go public. I think that a lot of companies, Chinese Companies listed in the u. S. , are fitting to look at the Hong Kong Market to go public it is planning to go private. Many companies, u. S. Listed Chinese Companies, are planning to go private so they can have all those options in the future to see where the best, you know, market to go public is. Selina but for your Portfolio Companies that are not based in china, how are they looking at the implementation of this security law . Do they just need to treat the Hong Kong Market in the same way that they treat working in the mainland . David it is in flux. I do believe that from a perspective,siness i do not think there will be a huge change. However, in the sensitive sectors, whether it is communications, whether it is foody, whether it is the sector, anything strategic to the country or the region, the military, for example, i do think that it will hinder investors. The good news is that we, for example, we do not invest in those sectors, and therefore, we are relatively shielded from the new National Security laws. David chao, thank you so much for joining us and congratulations on raising that new fund. Back to you, shery. Wang our thanks to selina as well. We will hear from another fund as well. Bnc funding provided to Companies Rather than he joins us later. Breaking news out of japan right now. We are now getting the may current account surplus for 1100 76. 800 in at 1. 176 trillion yen. This is widening from the previous months of may. We had seen the surplus being widened even more, led by a contraction in the trade deficit as imports have tumbled. Japans spending numbers showing that Household Spending also plunged, so the import numbers making a difference here when it comes to the current account surplus, now coming in at ¥1. 176 trillion. Haidi. Very quickly on the ground when it comes to this new National Security law being imposed on hong kong, chinas National Security office was part of the setup of the law being inaugurated in hong kong. The reports of course that we know that the new National Security office for hong kong is located at the Metropark Hotel in busy causeway bay and we are seeing the inauguration ceremony happening this morning under very high security, understandably. We heard from carrie lam yesterday, defending the National Security law, saying it did not mean doom and gloom for the Financial Hub despite multiple arrest and growing earnings from civil Rights Groups, human Rights Groups, as well as corporate groups about the impact on hong kongs as aendence, and future financial center. Lots more to come. This is bloomberg. Shery civilRights Groups did not have a positive reaction to a much anticipated meeting with Mark Zuckerberg and his top executives. Bloombergs corporate influence reporter, naomi next, covered the meeting. What exactly didnt these advocacy groups like here . Expected mark and Sheryl Sandberg to take a much more conciliatory turn on their demands that facebook do more to andent voter suppression, hate speech on its platform, and instead, they said what they heard was a lack of commitment and a lack of timeline on making substantive changes to the companys practices on this. And you know, this came after they had organized very successful advertiser boycotts on the platform. Which included, you know, hundreds of companies. Are we just continuing to see Mark Zuckerberg kind of get on the back foot when it comes to these issues . What really needs to happen at facebook, do critics say . Naomi mark is in a tough spot and facebook is in a top spot. On the one hand, they have this desire to take a handsoff approach to political speech. Mark zuckerberg has said multiple times he does not want facebook to become an arbiter of truth. On the other hand, you have civil Rights Groups who are saying, ok, free speech is great, but you have a lot of problematic content on the platform. There are people trying to use facebook to suppress voting in elections. There are White Supremacy groups who are organizing rallies. There are antimuslim groups who are putting out there message on facebook. And there are concrete steps that facebook could take in their view to help squash those concerns. What they are saying is that facebook does not seem that committed, nor do they have enough highranking people in their employee ranks who really understands civil rights issues. Shery according to the advocacy groups, how does facebook compared to other tech giants . Naomi you know, facebook has really shown itself to depart from other social Media Companies like twitter, for instance. Action oncently took tweets by president donald trump, saying that they violated the companys Community Standards when trump posted the , posts on facebook. The company did not do anything about it. Naomi nix narang joining us. Coming up on the next hour of daybreak asia, we have an exclusive interview. The ceo joins us later, but of course, the market opens in tokyo, seoul, and sydney, just minutes away. We will hear from blackrocks perspectives, next. This is bloomberg. Its pretty inspiring the way families redefined the word school this year. Its why, at xfinity, were committed to helping kids keep learning through the summer. And help College Students studying at home stay connected through our university program. Were providing affordable Internet Access to low income families through our internet essentials program. And this summer, xfinity is creating a Virtual Summer camp for kids at home all on xfinity x1. Were committed to helping all families stay connected. Learn more at xfinity. Com education. Shery good evening from bloombergs Global Headquarters in new york, im shery ahn. Haidi im haidi stroudwatts in sydney. Welcome to daybreak asia. Asian markets look set for an uncertain start of the day as a global rally stalls. Investors remain concerned about the Economic Impact of the coronavirus and potential pace of recovery. The coronavirus setting more actors, daily infections in texas, deaths in arizona and hospital cases in california marking new highs. Melbourne was back into a lockdown. Top advisors in washington are said to want the u. S. To undermine the hong kong dollar peg or to punish china. Lets get straight to the Market Action with Sophie Kamaruddin. Sophie cautious moves in japan, the nick a second day. The nikkei 225 extending losses for a second day. Bankruptcy data is due midday. Autos keeping an eye on after toyota, mazda and others said they are keeping some factories suspended after heavy rates hit southern japan. Year a 30 year sale was strong. Samsungs earnings did not provide a boost on tuesday. The korean won study as she goes this morning at 11. 96 after a fiveday gain. , littleie dollar change, slightly lower by 12 tenths of 1 . Lockdownurer set a could cost the economy one billion australian dollars per week. Byking at eminis, higher 1 10 of 1 . Hung sing futures higher after rallies in hong kong. There was a boost of defensive the currency. Says that attacks on the hong kong dollar peg may not get serious consideration for many reasons, including the official backing china. Blackrock has released its midyear outlook report and upgraded its view on japanese equities, saying the nations wellpositioned from a policy perspective to recover quickly from the pandemic plunge. Strategists joins us now. Optimistic that post covid, you will see an aceleration and essentially return of animal spirits that has been hard to make happen even after years of extruding Remote Monitoring fiscal policy . Good morning. Thank you for having me. We see a couple of factors driving Japan Equities from here. Firstly, the activity restarts in japan and globally. Japan with its extremely hasisticated export sector a gearing into the global activity restart. It seems more and more evidence almost daily whether it is the china pmi, so forth. That activity restart both domestically as japan emerges out of its own lockdown, and gearing into the global recovery, is helpful. Secondly, and you touched on it, the bank of japan is, lets say, more advanced in an orthodox policy than elsewhere. Even in japan, its fair to say we are seeing something of a policy revolution with the 2 trillion worth or even more stimulus that we are likely to 40 of gdp. Around unan, an orthodox orthodox policy isnt new, but we think this is a policy revolution that could provide a tailwind for japanese equities. Haidi where you see the dynamism playing out sector wise in japan . Ben i think in the first instance, the activity restart should help the export sector and some of the high qualities there. More broadly, i am still, and the three arrows are not new, think companies that can demonstrate the third arrow gains, the third arrow gets the least attention but i think it is important in terms of structuraleform and improvements over time. A much longer term story come around for years, but i think it is happening. For those companies that can demonstrate they are improving prospects for shareholders sustainably, that is a narrative that i think is underappreciated given the excitement around policy and so forth. Which other countries in asia have Strong Enough Balance Sheets to take advantage of what you call the policy revolution . Ben thats right. Within the broad Global Emerging Markets framework, our clear framework our clear preference is for asia, because asia has relatively more capability to deal with the virus itself and the related economic consequences. Flex, adaptue to into what will be a different world post covid, dan precovid. Than precovid. Our preferences for north asia, china continues to have good data, suggesting it will feel like a ve. Taiwan, korea benefiting from techand also from good data. Asia is a clear preference, and within asia, north asia and east asia as well, with the Japan Equities upgrade we just talked about. Shery in china, what do you make of state media trying to encourage investors to get into the stock market to foster a healthy bull market . Are you concerned that perhaps with this huge rally weve seen him a we could end up seeing another bust like in 2015 . Ben i think this is very different from 2015. Of course the moves weve seen in the last week or so is rather striking, but the policy setting in china is extremely different to 2015, when policy was very loose. Outstanding in its unusualness of actually having a positive interest rates, both real and nominal. It is striking to me that the pboc has stuck to that. Perhaps as they continue to focus around the longerterm aspirations for the Deleveraging Campaign and so forth. Is muchhina, the policy different from 2015, and it is less loose Monetary Policy driven. For me, this seems to be a more fundamental move on a market which is not, obviously, expensive, when one looks at various valuation measures. Risk how much volatility are you assigning going into the u. S. Election . Ben im not a lot. A fair amount. We downgraded u. S. Equities in the second half to neutral from overweight. There are a few reasons for that, not least the remarkable performance less several months. But clearly on the list of things to note, in the second half is november 3 and the u. S. Election and the uncertainty that presents. Because it is quite normal, the rhetoric, one assumes it will get stronger, and some of the concerns we could have around geopolitical news flow and arestic political news flow likely to get louder as we get closer and closer to november 3. Shery thank you so much for your insights today. Ahead, more virus clusters acrossss asia from asia. Areas back under lockdown. First, some a President Trumps top advisors want the u. S. To undermine the hong kong dollars peg. We look at the implications. This is bloomberg. Coronavirus numbers are setting records across the u. S. With hospitalizations in california hitting a new high while florida and arizona set new marks. Global cases are near 11. 7 million with the deaths of a 540,000. U. S. Infections are approaching 3 million alone with a fourth day where new cases rose above 50,000. U. S. Fatalities are now recorded at over 130,000. The president of zell has tested positive for coronavirus as cases in the country soar beyond 1. 6 million. Skeptic a virus skeptic, he played down the threat. He has said he is using hydroxychloroquine. Leader tothird world test positive after the u. K. S Boris Johnson and the honduran president. It settle almost all wrongful death claims filed in the u. S. For the 2018 crash of the 37th 737 max. People on board the plane when it went off of jakarta. This crash was followed by another in ethiopia last year. The max has been grounded worldwide ever since. The fbi has joined the rings of china critics, saying beijing uses an extensive array of tactics to seal u. S. Trade secrets and influence domestic politics. To met director Christopher Wray says this includes hacking, chinese nationals living in america, and planting people close to political officials. This leaves all americans over a barrel. 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. We are staying on u. S. China tensions. Limerick has learned the top advisors to President Trump the administration to undermine the hong kong dollar peg to the u. S. Dollar. It would be intended to punish beijing for its recent crackdown on hong kong. Ourte Department State Department Reporter joins us. What have you learned from the story, notwithstanding that we dont know how this currency sanction or sabotage could work . Is a we know that there whole range of options being considered right now by the administration to punish china. Officials like secretary pompeo and others in the white house are very keen on ramping up, escalating punishment on china for moves in hong kong. One thing they looked at is how to undermine or blow up the dollar peg. Areetary pompeo and others really interested in figuring out a way specifically to target the hong kong banks. One possibility would be to restrict their access to u. S. Dollars, for example. It is still in the early stage, and other things are expected to happen first. Theres also fears pushback on this idea from other people in the administration, particular from the treasury department. Not likely to happen anytime soon, but it gives you a window into the range of ideas that this administration is sticking about as they approached china from now on. Shery to the people youre speaking to also have an idea of the range of countermeasures china could actually take, including moving on the yuan or unloading treasuries . Nick [laughter] right, thats been one of the counter arguments. If you want to go down this road, there are a lot of things china could do in response. Chiefly its holdings of u. S. Treasuries. This is something that could hurt these banks. There are a lot of u. S. Banks that have big operations in hong kong that are very interested in staying there. There are a lot of things china could do, and indeed, thats the very thing sums cap ask about this idea are saying. Skeptics about this idea are saying. Also, if the u. S. Would do this, there is concern a could further deepen a global recession in the wake of the coronavirus. Reporting from washington. Commissionuropean executive Vice President says they see a deeper recession have for europe amid the virus. Our exclusive conversation, next. This is bloomberg. Shery more virus clusters are found across major asian hubs from tokyo to hong kong, sparking alarm over a fresh wave of infections, after us trillion second largest city is back under lockdown amid growing cases. Paul allen is on the line. Give us the latest on the restrictions in melbourne and whether or not this will be enough to actually stop the spread to other states. Paul there is a stayathome order in place in melbourne, a city of 5 million people, for six weeks. People can go up for work, exercise or grocery shopping. No visitors allowed. Two people maximum together outside. Restaurants and pubs are takeaway only. Most critically, the border with New South Wales is closed for the first time in more than 100 years, during the spanish flu. That will hopefully stop the spread throughout the states, but also create a logistical nightmare. This is after 191 new cases were detected in melbourne yesterday. Worst weexceeds the saw in the first wave of the virus. In all seems to trace back to some severe lapses and Hotel Quarantine procedures in melbourne, where private security forms firms and set a police were used to make sure things were kept under control and things were not kept under control. There is now a judicial review into what appears to be a big mess. Another surge of cases in taco in tokyo and hong kong as well. Cases in tokyo on tuesday, now six days in a row there have been 100plus cases reported there. Also three nurses in the hospital in tokyo, testing positive for covid19 as well. Tokyo,0 cases now in 20,000 nationally. Some concern about a resurgence of the virus in japan. As for hong kong, which had done very well, they have nine new cases there, the most in three months. Five of them, no one is really sure how they were contracted. There is concerns there about hidden transmission change, patients without symptoms who could be infecting others. That comes after two weeks of easing social distancing rules in hong kong. Be there signs that may virus is potentially reemerging in hong kong as well. Haidi paul allen in sydney on the latest on the virus in asia. Europes economy is expected to fall into a deeper recession as the pandemic into tin used to wreck havoc. Speaking exclusively to bloomberg, he also said an ambitious response and solitary among solidarity among leaders is needed to whether the crisis. That the session is deeper than previously forecast and indeed, it underlines the need for an ambitious and coordinated eu response. We already took a lot of measures for immediate crisis response, and we see that these measures are bearing fruit. If you look at unemployment bad asthose are not as we were fearing. We see that the measures that were taken in Member States and supported by the eu, medicated mitigated unemployment but now we need to concentrate on the economy. It is important to the agreement on the eu economy Recovery Plan. The commission has come forward of 750bitious proposals billion euros economic Recovery Plan. Will it come up with a conference of move forward . Valdis as regards the move forward, i already mentioned a number of measures which have been taken already in terms of allowing eu Member States the necessary flexibility to react on the crisis with fiscal rules, state rules, residential rules. Tosures that have been made mobilize physical and financial fiscal and financial support. Thats beside the action that the European Central bank. There have been a lot of measures taken as crisis response. Now indeed we need to look at how we can stimulate the economic recovery. Generatione our next plan comes in. Just to our aim is not go back to the precrisis status quo, but with the economic Recovery Plan, also facilitating a green and a transformation of the european commodity. We have a Euro Group Meeting this week on the ninth, the summit on the 17th and 18th. Where do you see the best chances of compromise to get this deal over the line . Of four are concerned by what you propose. What consequences do you see happening . The eu is good at finding compromises at the last minute. Valdis indeed. Compromises will be needed because the eu budget and also willconomic Recovery Plan require unanimous support of eu Member States. Why conversations are ongoing the European Commission is reaching out to Member States. Council president is reaching out to Member States. Germanfew days ago, the council started, and they are determined to reach an agreement on the budget and economic Recovery Plan. Compromises, we are also assessing how we can facilitate an agreement, looking at exact conditionality, how money will be available to Member States, ensuring it is outlinedith priorities in the european semester, where policies, looking at rule of law conditionality. A number of countries with socalled rebates. How much their payments are being adjusted is important. There are number of elements which can be discussed. But what is important is we ambitious european response. It is a major crisis and it requires an ambitious response and solidarity. Shery executive Vice President of the European Commission. We have breaking news at the moment, we are hearing that nissan is planning a bond sale in return to the debt market. This could come in a multitrench fashion tranche fashion. This according to someone familiar with the matter. We hear that nissan is planning a bond sale in return to the debt market. Coming up, the world leading snack manufacturer is facing changing tastes. Wrigleys, how they are dealing with that in hardest hit regions. This is bloomberg. I got an oriole here. Eh. Common bird. Ooh look over here something much better. There it is. Peacock, included with xfinity x1. Remarkable. Fascinating. Very. It streams tons of your favorite shows and movies, plus the latest in sports news and. Huh run the newest streaming app has landed on xfinity x1. Now thats. Simple. Easy. Awesome. Xfinity x1 just got even better with peacock premium included at no additional cost. No strings attached. Just say peacock into your voice remote to start watching today. Haidi lets look at how asian markets are shaping up. A mixed picture after the s p 500 put to a stop to its asked rally of the year. We arent seeing are seeing investors take a breather after the rally and chinese ducks propelled global stocks to the best performance in about a month. Just shy of 2 10 of 1 lower. We are expecting some earnings later on. The kospi resuming gains of 2 10 of 1 . We are seeing biofarma with a rally. Double the debut price. We are seeing some consolidation, given concerns about the euphoria in the space and Health Care Space in south korea. In australia, downside of three tens of 1 , the second largest economy, victoria in melbourne, goes into a new lockdown with a surge in cases. In new zealand, gains of about 1 10 of 1 . Lets look at currencies. It comes toing when demand for the u. S. Dollar, outperforming against every jpeg currency outside of the pound. As the effects of covid19 are felt throughout the world, consumers are changing buying habits and forcing companies to readjust demand and strategies. Mars wrigley is one of the leading manufacturers of confections. We are seeing a change in behaviors. They are not going out to a Convenience Store to buy snacks. ,hey are balancing that shifting toward ordering digitally. They are buying more larger packs. The habit of buying snacks continues to be there and continues to grow. This presents a great opportunity to us to be agile cancreative so that we conquer the consumer as they change behaviors. Its an opportunity to adapt and learn to be creative. Would you say there has been no impact when it comes to your revenue and sales when it comes to emerging markets . Fortunate atvery mars because we have a diverse portfolio. Food segment, the confectionery segment, and when you balance the performance of our three big segments, the performance of mars inc. Is solid even during covid times. Confectionery where i work, weve seen an impact in some business because a big chunk of is consumedness outside of home, and as consumers stay in lockdown at home, we have seen an impact in gum. But in other areas in the confectionery business, people celebrating, having meals together, watching a movie together, watching tv together, we are seeing many of our products continue to be consumed. They are on the rise. So it is a balance. Pandemic,lier in the we are still seeing the supply chain dislocation play out. Has that impacted your business . And right nowovid across the world, of course the situation is different between asia and latin america and america, but in general, during covid, we had three priorities. The first one, the health and safety of associates, which was paramount to us. The second one, to keep our operations running. To keep our factories running, to keep our route to market running so that consumers can enjoy the products. The third priority is how do we make this challenge actually an opportunity to be agile and shift resources and capture the consumer demand as they shift into new behaviors . So yes, depending on the country, we have to do Different Things to keep factories running, but thanks to Associates Across the world, which are really committed and engaged, we have found Creative Solutions while keeping them safe, our number one priority, at the same time keeping 99 of factories running. It is great to be able to continue to operate. Shery that was the global president for emerging markets haidi that was the global president for emerging markets at mars wrigley. Here in australia, victoria virus cases rising by 134 overnight, this adding to the record high of the previous day. We have seen the border between New South Wales and victoria, the second largest economy in australia, close overnight for the first time in 100 years. Melbourne as well as other parts of the state going under renewed lockdown, a stricter lockdown, as the government tries to get on top of these cases that continue to rise. Shery beijing has gotten on top of the outbreak we have seen there. Reporting no new cases in beijing for a second consecutive day. This after we saw more than 300 people infected in the past month. Beijing again recording no new virus cases for a second day on july 7. Coming up, exclusive interview ceo. A c. O. P. A this is bloomberg. Haidi a check of the first word headlines. Australias second largest city entering a sixweek lockdown as new Coronavirus Infections threaten a second wave. From midnight wednesday, people must remain at home in melbourne except for essential workers and services, medical treatment or education. Recorded 130 new cases overnight, one of the biggest daily increases since the pandemic began. The premier says significant steps are needed. Hong kong has reported its highest number of local virus transmissions in three months. Nine new cases with at least five unexplained so far. The department of health says the epidemic has change rapidly and the situation has become severe. The escalation comes two weeks after they eased social distancing curbs after hong kong seemed to largely contain the pandemic. Malaysia cut its benchmark rate to a record low, warning the threat to an economy after months of lockdown. And one the rate to one one and three quarters of 1 . It says its stimulus will accelerate recovery from the virus amid three straight months of deflation and the worst Unemployment Rate in decades. Violence has oaken out in serbia over a new with protesters storming parliament. Lockdownto go under because of coronavirus. They lifted one of the strictest lockdowns in may. Singapore has to the polls on friday with a covid19 crisis as a backdrop. Amin has the latest. Haslinda the countdown begins. The election takes place among an economic downturn and efforts to contain the pandemic. Our next guest says he is focused on creating new businesses the will help his company emerged stronger from the virus. Ceo of an is the urban planning and Infrastructure Development company. Good morning, good to have you with us. Give us a sense of what is at stake for you and other companies in singapore, given the election is coming on the back of possibly the deepest recession since independence. Good morning. This is an eventful week for singapore. Event,n extraordinary the elections. As you mentioned, it is taking place during one of the biggest global crises for many of us in our lifetime. Issues. Be confronted by one, of course, is health. This is a big health crisis. Secondly, economic. Lost,of jobs have been economies have been shut down. Third, what is the new normal of life that we will lead . Covid19 has challenged all of the leadership at the National Level and company level. , itanage the pandemic gradually becomes more economic and it is a more global issue. Interestingill be to see this weeks events in singapore. Haslinda what policies would you like to see from the next government . Continuity or perhaps new policies to help singapore overcome what has been described as a tumultuous future . I think the first thing we need to do is to try and get businesses back into operation. To get Construction Activity safely. D workers back to get back to the precovid level. Ofondly, to take advantage covid19 to roll out some of the new technologies. A lot of us are working from home. Use of technology, it will be popular Going Forward. Operating, i. T. , technologies are crucial. And of course, we want to encourage businesses to transform themselves, whether locally or internationally, and compete for business elsewhere as well. Your company is pretty much owned by a state investor. Pandemic,rse of the it was given contracts to provide many facilities for covid19 patients. Do you hope to tap that experience for similar projects in singapore or elsewhere in the world . When the covid19 pandemic issues came up, we were ,ctivated mainly because today we have the whole spectrum of health care, from the designing of hospitals to providing contracts for construction, including Facility Management of hospital facilities as well, security. I would say we were activated for that. Today, we have managed, we put out about 55,000 aces in singapore. Bases in singapore. Our first was created in the first three days. Our knowledge was activated at the last moment, and we were able to provide the safe and comfortable accommodations for covid patients. It will help us moving forward to branch more into the health care sector. Seeing your are company make a number of acquisitions during the pandemic. What is the thinking behind that, what is the strategy, and is consolidation in the industry the way forward . Looking at the last five years, we made a number of acquisitions. That we look at requiring companies not just for financials, but more in terms of their talent days. How they can add to our original capabilities to deliver Sustainable Solutions for our clients. Also berward that would our focus, to look at how we can do our job that are job that are in a more sustainable way. Haslinda are you looking at more acquisitions in the next 1224 months . What would make sense for you . I dont want to let the account out of the bag. The cat out of the bag. Were looking at companies that can add in scope to what we are doing. Specific. Will be asia how we can participate in some of the regional programs to develop infrastructure. [indiscernible] so that will be our focus. Today, we have about 16,500 employees operating in 40 countries. We are doing quite interesting projects, some of which are very iconic. Course, youre also operating in china. What you make of chinas recovery . What indications are you getting from partners there . Is will remain a key focus Going Forward. Not so much in terms of market but in terms of talent base. In china, there are 1. 6 billion people. Every year, they have 10 million graduates turned out. A tremendous amount of talent that we can leverage to build our company, and Sustainable Solutions we are looking at. The development of china will be a little more integrated, a bit more in depth. Thats why we think we can play a major role together with chinese partners that we have been looking at the last five years. Haslinda staying with china, are you intending to take part in chinas infrastructure and spending plan . Its setting aside about 1. 4 trillion dollars the next six years or so until 2025. What opportunities do see . China, the expertise we in the mobilization capabilities we have demonstrated in singapore. Markets wehese participate, whether it is china or africa. We have a capability to build up very good Industrial Facilities where Foreign Investors look to put their plans. As well as some of the infrastructure work we do in dotralia, india, where we hydro towers, railways, and other projects. Haslinda one final question before we let you go. How profitable the you expect to be in the next two to three years . Us, we are run as a commercial company. We focus on the financial returns of the projects we therefore wen and intend to be above what our regional competitors would be doing. Haslinda on that optimistic note, thank you so much for your time. Haidi another big interview from singapore ahead. Funding to companys rather than seed stage funding. A guest joins us later. Shery we do have an alert on the bloomberg right now. We are hearing the trump aministration is warning realworld Retirement Fund to avoid china, according to the new york times. White house officials are warning a federally administered Retirement Plan for Railroad Workers against investing in Chinese Companies and sing additional sanctions could be on the way because of chinas role in spreading the coronavirus, according to the new york times. Just adding to the tensions between the u. S. And china. Plenty more to come. This is bloomberg. Shery lets get a quick check on the business flash headlines. Barclays has been reaching out in regent months recent months as part of its succession plan. Bloomberg understands the bank has engaged in an executive engage in executive search firm. A group of executives are said to have been contacted. The ceo is set to step down next year. Southeast asias Biggest Online travel startup is said to be close to raising fresh funds at a sharply lower market valuation, short of 3 billion, less than recent fundraising. The jakartabased firm is existingo a bank and backers about securing 250 million. A chipmaker is planning to move to parentusiness softbank to focus on its operations. Was a Key Initiative to move into managing information to devices connected to the internet. Arm says it will strengthen its ability to innovate semiconductors. Softbank bought the company for 32 billion in 2016. Haidi we are looking ahead to the start of trading in china in the next hour. A land markets seeing an almost unprecedented rally to start the week with surging value, sending several trading apps to struggle with demand. Are brokers handling this . Jonas looking at retail facing trading apps, they are having problems. China has a likely social Media Community and theres no shortage of people griping about apps freezing or being delayed as people flock to rallies. Four leading brokers with complaints. It shows us the power of these apps when people can easily trade at home. On the plus side, broker stocks have surged during the rally. Shery we know that Retail Investors play a big part of the chinese market, but what is fueling this surge . Jonas first, fundamentals. Tightow interest rates, capital controls, a crackdown on Wealth Management products by regulators. And an economic recovery that is driving people into stocks. At the same time, there is real boosterism by Chinese Media at the start of the week to show the country is emerging from a pandemic. It is a source of national pride, really. Haidi we called the rally unprecedented it is really not. I have seen this movie before. This time around, is there more concern about it being more measured about the euphoria we are seeing . Jonas i dont think regulators and china want to see a rerun of the latest stock bubble debacle. We saw some smaller gains on tuesday and some of the bigger cheerleaders have also taken a step back. I think they were taken aback by mondays rally and are now urging people to realize there are risks in the market. Jonas, thank you. Strategistdaily fx Margaret Yang joins us to talk about the hong kong dollar peg. Plus, we talk about est investing on the mainland. Market coverage continues as we look ahead to the start of trade. China open is next. This is bloomberg. It is 9 00 a. M. In beijing and shanghai, welcome to Bloomberg Markets china open. I am tom mackenzie. David i am david glass. Ingles. The u. S. Ramps up the pressure on china. The fbi says beijing used high and low tech pressure to move its influence while President Trump made bad tictocs