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Yesterday, were up the inflation rate as well. They saw exports came in at 13. 3 contraction. The headline number, 16 point 60 contraction. 16 contraction. Tom the question is whether on the fiscal side they will need to do more. The markets. N with a mixed picture in terms of sentiment from investors. You have got some significant southgs in japan and korea. The asiapacific almost back to the prepandemic levels. 169 is what you are looking at. Over on the mainland we have got red on the screen. The shanghai composite is down. Mike pompeo talking about attempts to really divide the internet and the tech space between the u. S. And china. The foreign minister saying he wants to avoid a cold war with the u. S. Got earnings now, looking at those shortly. Seeing gains of. 3 . Looking ahead to jobless claims. The private numbers were a big mess. Jobless numbers later in the u. S. And then the perils friday. Atcan move it on and look the individual stocks. It is earnings season. We have had beats and mrs. It was a miss for honda, a beat for olympus. You can see could account is down after missing estimates for the Second Quarter results. Lets look at the currencies and see how that is playing into sentiment. The weaker dollar has been a benefit. You are dollar index is weaker. In terms of the korean won, it is stronger. Old is above the 2000 level gold is above the 2000 level. We had the treasury outlining the longerterm funding plans, looking ahead to the jobs claims numbers in the u. S. That is the 10 year yield. Rishaad looking at white house negotiations taking place. They say they are no closer to agreeing with democrats on the size or scope of the latest stimulus packages. President trump is ready to take steps of his own. Lets get to kathleen hays. What is the latest . We were talking about these talks going at a glacial pace. Seems they are slower. Kathleen they are not getting anywhere although they are talking a lot. There has been endless meetings where we have the treasury secretary in the white house chief of staff mark meadows, nancy pelosi, Chuck Schumer getting together and all reports are that they are cordial with each other, but they cant have up key points. One more reason President Trump, the press conference at the end of the afternoon today, said something that has been talked about, we have been getting reports, he is exploring the possibility of taking executive actions, providing additional relief because he is concerned things are not moving ahead. Meadows, the white house chief of staff, said he is looking at extending Unemployment Benefits concerning the eviction on moratoriums. This is something i would assume democrats could get on board with. At the same time President Trump said he cant support more aid to the states, something democrats say is desperately needed. They need to have support. You are seeing mitch mcconnell. Areeeps saying people talking a lot but the democrats oft seem to have a sense urgency. They are not willing to compromise on the democrats, Chuck Schumer saying there is some lament him but they have to spend more, be willing to do that, there has to be movement on big issues. Mitch mcconnell saying the senate will continue to be in session next week. The august recess would have started friday for them, but now it will not. Chuck schumer, they you seen on the righthand side of the screen, everybody will keep talking and the question is what gets them to the table . Maybe President Trump taking steps will help. It remains to be seen. We have got a couple of days left. Get to a deal, it will have to be paid for, they have got a bond auction. What are we expecting . Kathleen you are going to spend a lot more money, you have got to finance it. You sell bonds. A very big deal for the bond market. It can set the tone for the bond market because you will have a strong test, domestic demand and foreign demand. Treasury is setting another thand, 112 billion, more 108 billion wall street expected. Up from 96 million. That is when the money started coming in. Taking big steps. They will start selling more longerterm bonds, moved to the seven to 30 year bond duration, away from the bills. Heading for a record on the deficit, Something Like 100 of gdp is ahead. It gets close to the world war ii record at 106 . One more thing, jobs, the private tally showing deceleration in july, another sign there is pressure on congress, a couple of good months. Increases in new jobs but now 157,000, maybe things are stalling as the economy as businesses lay off workers. It is an interesting mix. Maybe that is another thing that will put pressure on congress. Our Global Economics and policy editor kathleen hays. Lets look at these awful numbers from the philippines showing the economy contracted in the Second Quarter by 16. 5 . That is the gdp fall. What it did in reaction to the composite index, took back all the gains it had on the day. Gone flat now, it had negative but erasing the gains they had. One of the worst performers in forheast asian stock wise the benchmark. 16. 5 the decline for gdp in the philippines. Lets get you to first word headlines. Social media are taking action against President Trump for violating policy on coronavirus misinformation. Facebook removed a post where he claimed children are virtually immune to covid19. He was backing up his support for schools to reopen and said the virus had no impact on young people. The claim remained on his Campaign Twitter feed but the Washington Post says the account will be banned from tweeting until it is removed. Global covid19 deaths have topped 700,000. The u. S. Remains in focus. California had its second deadliest day in florida was half a million cases. Tensions continue between the white house and its medical expert, Anthony Fauci says u. S. Testing must improve. He told bloomberg a vaccine doesnt have to be 100 effective to be helpful. Will be more than 70 but even if it is 50 , that effective vaccine is totally valueadded, if you complement it with Public Health measures. Tom the pentagon is contradicting the white house over the massive explosion in beirut. President trump says it appeared to be a bomb, but mark esper says it appeared to be a next that it. 100 to be an accident. Night trip Ammonium Nitrate was seized from a cargo ship years ago. A fire started by welders may be to blame. We talk Market Strategy with Standard Chartered banker steve price. Corporate earnings show the extent of the damage being done by the global pandemic. That is later this hour. Samsung revealing its latest smartphone, but our consumers ready to spend on new gadgets . The updated outlook. Tom having lost the crown to worlds Biggest Smartphone maker to huawei, samsung is focusing on a first device lineup to reignite interest in its First Virtual launch event. They sent out the premium android led by the galaxy note 20 ultra. Joining us from seoul is the Tech Knowledge he the technology analyst. Were you excited by this unfolding of the new devices, underwhelmed . How does it position samsung Going Forward . Me onnk you for having your program. Thing is an annual event. These models have been launched like twice a year, the galaxy series. The galaxy note, the note 20 model is a followup from last years. Nothing that exciting i would say. Last year the galaxy note model sold about 11 Million Units compared to 290 Million Units or so globally. This year we are expecting the galaxy note to sell 8 Million Units to 9 Million Units. Lot of focus on the 5g phone. Is there demand for premium devices like that, given the covid impact in the recessions across the globe . , i think itation will accelerate next year. 5g rollouts in developed markets especially in the u. S. And europe has been affected. 5g penetration is doing better than expected in china, but samsung has a small foothold in the chinese market. It will not help. In china 5g shipments are 60 of the total shipments. China is leading the pack. 5g momentum will come to europe and u. S. Later this year. We are expecting samsung 5g shipments to be less than 20 Million Units, which would be about 10 to 12 of total shipments. Profitsin terms of doesnt really become a serious prospect until 2021 . You are right. 5g will become a major driver of the smartphone shipments not this year. Looking at the chip side of the business, what are the hoops they have got to go through, and how do they benefit with what has been going on with intel . The chips and semi conductors will be about 60 of the total profit and they have global leadership, 60 of the totals profit. Maintain their position but in the second half, you are expecting like a short down declineice for these to 5 on an average per quarter in third and fourth quarter. That will affect the earnings momentum. For the foundry side, which is about 5 of the total revenue expect somewe can momentum. They have recently orders from and fiscal and qualcomm intel production issues mean iey stand to get some orders would expect in the near future. Does chinas push to make more chips indigenously mean for samsung . You have talked about smic, but how does that get into this . Samsungs bulk of the prophet, revenue and profit on the semiconductor site is from dm chips. Currently chinas process is quite tiny. Even like given, if you go over the stated plans for the next three to five years, chinas presence in the semiconductors will remain quite minimum. First i would expect them to become a little bit of a competitor to samsung in their memory and in the next five longerterm a target and implication for samsung in the longer term. That is why samsung is looking to diversify its memories in the iconductor Revenue Source it includes foundry, and some other parts of the semiconductors industry. Longerterm samsung is looking to expand its nonmemory; business. Conductor business. Rishaad it seems as if the smartphone side of things, it is becoming a bit commoditized. What statement will be the next big thing in that arena . Smartphone commoditize asian has been talked about the last 10 years but look at apple, it has become like almost like a 2 trillion company. As long as you have the technology, and you execute correctly, i dont think this industry can be profitable. 70 ofple corners about the smartphone industrys profit despite the 15 of the total to samsung has another 15 20 . Like 85 industry profit goes to these two companies, samsung and apple. The reason is they have these models where the customers are willing to pay a Price Premium to 1000 500 500 range. As samsung maintains its presence, i think smartphone profit will remain pretty robust. In terms of growth, we think the growth will come from the foldable phones which is a small part of the world market. This year we are expecting only about 3 million 3 Million Units compared to the Global Smartphone market. Foldables will continue to grow. In the next coming years we can expect these to be about 15 Million Units in terms of shipments. Profitable ifite samsung can sell them at a scale. Foldable will be the next profit driver for the smartphone business. Tom so watch the full double phones. They have a price target of 72,000 on samsung trading at 57,600 or so. The Second Quarter straight quarter of profit declines for southeast asias biggest bank. More on the secondquarter earnings next. This is bloomberg. Singapores big banks posted second straight quarters of straight profits. The profit declines after setting aside loan losses during the pandemic fueled recession. Senior analyst for asia financials joins us now. Dbs saw a 60 profit drop, 2 billion singaporean dollars from dbs. There are surprises in these results for you . Broader numbers are in line although there were some surprises, the positives. Treasury customer flows were solid. Provision side has largely played out as expected and put back management almost 2eady taken billion in the first half or so. We expected them to frontload provisions and the second half should positioned them well for 2021. Margin impact from dbs 34 business points sequential sulli. Sequentially. That we had not expected and the bulk of it could be from the liquidity they have gotten under the deposit side. Looking forward to hear more from tom we also got the numbers for the other banks. What was the numbers looking like an will we see divergence . Divergence we see . It is at the lowest level in more than a decade. Management expects to or three basis points recovery. That is where we could see diversions because they expect weakness in the margins. Also Second Quarter was quite weak on the wealth and credit cards is this. They expect recovery but the one positive that starts out stood out was the property confidence on revenue recovery. Lets go to ocbc. What does this mean for their numbers . A markets related business that will have positive read tomorrow. I think of the margins side, ocbc could have done better because it tends to see a contraction with a lag. They might have done better in the Second Quarter. It may not have risen much. Thatnk we expect it to use revenue and lower dividends to kind of front load provisions. Wealth management seeing growing green shoots as well. Is this likely to continue . I guess that is an interesting observation from the Second Quarter. The strength is across the board. Dbs has Wealth Management income, rebound strongly like from april and almost rose to precovid levels. 71 growth in the Second Quarter. We have been highlighting the private growth is an important thing in the singapore banking space. You can see the global majors here as well. Theet performance, deleveraging, there is a structural growth we anticipate in that business. You for that analysis. Now coming up we will be having an exclusive interview with the cfo of uob group. Join us 11 30 in hong kong, half past 1 00 in sydney. This is bloomberg. Hike Simon Pagenaud takes the lead at the indy 500 coming to the green flag, racing at daytona. Theyre off. In the kentucky derby. Rory mcllroy is a two time champion at east lake. He scores stanley cup champions touchdown only mahomes. The big events are back and xfinity is your home for the return of live sports. Sydney and 10 29 in shanghai. Cases and australia edging closer to 20,000, with 247 people having died. The state of victoria reported a Record Number of infections. Those numbers arent expected to rise further in the coming days. Daily cases are rising the on the thousand. The city of melbourne has been on lock down for four weeks. Spending will be heavily to support a fragile recovery after the economies for his contraction in more than two decades. Saysinance minister there outlays will top 100 million through the end of december, as the government seeks to support growth. The economy contracted more than 5 in the Second Quarter. Its worse than 1999. The two contenders for the u. S. Election are not going to the convention of fears. The president will give his from the white house, what could violate rules. Joe biden will skip the and will give his speech from the home state of delaware. Getting boss jeff bezos stock worth of about 3 billion. He sold more than 900,000 shares, having divested more than double that. He is now what just under 190 billion. Amazon has risen 73 this year. Lets check in on the markets. A mixed picture in terms of asian equity. Happening inwhats terms of the stimulus discussion. A deadlock is happening in washington. Will they get that over the line . There is a focus on the labor market there, which seems to be retracing the gains we have seen. Here is what the msci asiapacific is looking like now, a little over a 10th of 1 . Japan has a big day of earnings, down 3 10 of 1 . In terms of the nifty futures, flat, unchanged. The r. B. I. Will come out of the decision. We will hear from the governor around 2 30, hong kong time. It is unclear what decision they will make according to the survey of economists. Futures up a 10th of 1 . That pretty grim number for secondquarter gdp out of the philippines. The peacock is up 5 10 of 1 . We saw contraction in the secondquarter gdp for the philippines. 16. 5 contraction with a drop of 9. 4 . Singapore banks up a 10th of 1 . Despite the banks reporting higher loanloss provisions. Jakarta is looking at games of up by a 10th of 1 . Malaysia is doing well. Southeast asia is different compared to northeast asia. China is not looking pretty. We move onto the currencies and commodities at the dollar index. It was looking softer. It is soft. Gold is comfortable at that 2000 level. In terms of crude, wti, 42, there were some question marks about these being squeezed in the u. S. 53 basis points on the 10 year. We have secretary of state mike pompeo pushing a clean initiative, which broadens the u. S. Away from China Technology on all levels. We want to see and trusted chinese untrusted apps removed from app stores. With Parent Companies based in tiktok are like threats to american citizens. Lets get to our Senior International editor, jodi schneider. This Clean Network is not really just about dropping tiktok, is it . Jodi no. Mike pompeo, the secretary of state, is urging this effort ,gainst Chinese Technology chinese applications from app stores. You just heard him say what he calls his undressed the chinese app, like tiktok and we chat those National Security threats. He is calling for companies to refuse to make their apps available for phones made by huawei, and friending the use of chinese cloud providers such as tencent, alibaba with sensitive american data. He is really trying to make a broad case against chinese that it iss, saying a much broader, much more insidious issue. He said he does not Want Companies to be complicit in huaweis human rights abuses. This is part of the broadside against china and chinese companies, but its cold war kind of rhetoric. Is this largely rhetorical from pompeo when it comes to this Clean Network, or is he specificn place policies that will block some of these companies from interacting . the Clean Networks guide stopped short of an ultimatum. Not written into law anywhere, but it really does represent an escalation in the administration to try to limit the spread of Chinese Technology. This is really their next step in this. President trump had pledged to ban tiktok, although he did say they could have if by september 15 there was a sale of its u. S. Operation, they would consider not banning it. This kicked off the whole discussion of microsoft being in. Alks to buy tiktok but there is a lot of discussion. A year ago we referred to a trade war with chinese characteristics. Its much, much more than that, this conflict now, isnt it . Jodi this is just the latest round of this. Look at the recent weeks and months, the Trump Administration is trying to Counter China on multiple fronts. Tensions over the south china sea. Beijings crackdown in the National Security law. The treatment of muslims and ethnic minorities. This is not a coincidence that this is coming in an election year. President trump is running for reelection. His tough talks on china is part of his reelection campaign. It really started with him amplifying rhetoric, blaming china for the coronavirus pandemic. Obviously as the number of deaths and cases rise in the he wants to distract from that and blame china. You. Jodi, thank our Senior International editor out of hong kong. The market risks of a Pandemic Recovery that stretches beyond the next year. We will get the outlook. We will hear why they think u. S. Stimulus is in success of a trillion dollars. This is bloomberg. Rishaad the u. S. Dollar is weakening. Will soonhat the u. S. Pass another fiscal stimulus package. The bloomberg dollar index is down for the seventh session. Lets get more from steve brice. Thank you for joining us. We have been predicting this bout of dollar weakness for quite a long time. I suppose if you predict something long enough it becomes a selffulfilling prophecy. What is driving things now . Steve several factors going on. One of the factors is Interest Rates have been harboring the dollar for some time. It is a reliable indicator. I think the key thing that has changed this year is out we are seeing a massive increase in global dollar liquidity for the response to the coronavirus. Plenty of dollar liquidity globally and that has helped the dollar be pushed significantly lower in a short space of time. Our projections for the next six to 12 months is continued dollar weakness. We do think in the shortterm we did get ahead of ourselves. Our market divest or indicators have collapsed. There is a shortterm risk of reversal. But it seems pretty clear to us. Rishaad we will come back to you in a second. Aising their output targets 25 Million Units is coming through. The target numbers of from 22 million, and its animal crossing that keeps fueling demand. Ongoing thing that keeps people at home in any to have entertainment. That means they will buy more of the switch products. Lets talk more about the dollar. It does seem as if its done really well against the euro. Thisuch of that done to fiscal package that it brought together in the euro area . We are seem as though going to an ever greater union. Something that many people have seen for long. Think its really important, one of the pushback siu have had against our weak dollar view. It has been weak against what, who wants a stronger currency. They generally like their currencies to be appreciated because they get control of Monetary Policy and it goes into their asset markets. Elsewhere its a question of who wants a stronger currency. We argued that europe did want that. More of a sign of confidence of anything else on the fiscal reform package. We believe it is a game changer pushing towards greater fiscal unit over time. It will affect a long time, but that does reduce a significant amount of downside risk, and that encourages the euro to do very well. Tom that is the stimulus conversation happening in europe. We have the ringling happening in the United States. I wonder how do you put it all together. In terms of looking at the fed Balance Sheet and all the operations its promised to undergo, and you talk about a third round of stimulus in the United States. You put it together and you think longerterm and the impact on central banking and economic fundamentals. How are you trying to wrap that all together for the longer term . Steve it depends on what you mean buy longerterm. We focus on the six to 12 month basis. The way we look at it is saying we are still in the stimulus stage, so there is no signs of any inflation coming through. We dont think there will be for 23 years. It has been generated by the lockdown, and obviously higher unemployment. From that perspective we have a lot of free road for stimulus to help support the economy, help support asset prices, and keep equity markets doing well. Even more importantly for us, credit markets. We are bullish on credit. Ae have a pressure preference for a highyield. Despite the economic distraction, we think people will be reaching for yield. Spoke to you,ast february i believe, you recommended buying gold on the bit. That was a good call. 15. 30 was what you look at. Do you still see upside for metal . Is it greed or is it fear that is driving gold . Steve it is most certainly greed. Say, ok,say, all the real yield is going down and the dollar is going down and its a hedge within the portfolio. Equity is going up together. There is quite a lot of activity going on in gold. , infundamentals longerterm the shortterm we are a little bit concerned. We are obviously doing a lot of and there is one question on gold. Now we are getting six or seven questions on gold every time we speak to clients. That suggested we are getting a little frothy at the moment. We are getting new highs on a daily basis. We would not buy today even though we think it can go hide. I think we can get down to 1920 back to the previous high. If you get down there, then thats a good time to start accumulating again. We have a second wave, a slight second wave in hong kong, some are saying a third wave, but a second wave could be a sucker punch for the Global Economy . Steve yes, it could. I think what we are seeing now is more nuance lockdowns compared to what we saw previously. The waves are becoming geographically centric in one specific area or region rather than globally. Which means we can probably weather the storm better than we have been historically. In this part of the world, asia, we have seen some pickup in numbers until recently. You mention hong kong. This region seems to be doing reasonably well. We can always get spikes. Until we get a vaccine it is a concession it still is an extremely contagious virus. Vaccines, it is an extremely contagious virus. Tom thank you. That is steve brice. Coming up on the show, too close to call. Economists are split on the rbis next move, with policymakers holding or cutting depending on who you ask. Details are just ahead. This is bloomberg. Itsaad bp slashed dividends and set out new targets. Ceo, andwith the announcing the strong results of the companys trading arm will continue in the back half of the year. Quarter, a strong very strong quarter. We called it an exceptional quarter in trading. It was one of the few highlights of the business in the Second Quarter. Anare very fortunate to have incredible Trading Organization that is global. I dont think that level of performance is ratable. The Second Quarter was probably one of the most challenging quarters in our industries history. It played well in a market where there was a contango. It played to people who have capabilities like we do. It plays the people who have infrastructure positions like we do. A very strong quarter, but not one we would expect to be repeated. What i also was struck with yesterday was when you guys were talking about returns. This brings into commodity prices. Emissions use a Power Projects make a lower return for oil and gas investments, but you see higher returns of 12 14 . How much is 100 predicated on 60 oil, and what happens if you stay at 45 . Outard yesterday we laid that distribution policy and our commitment to shareholders has three elements. Number one, committed distributions, which is a reset dividend and a commitment to do share buybacks. The second is profitable growth, which is the return growths. And the third is around sustainable value, where we are actually saying, here is an opportunity to invest in a company that is helping the ded the carbon eyes carbonized. Is driven by our hydrocarbon business as we head into the second half of the decade. You will see those new businesses come to the fore. We are optimistic about what we can do in this space. We said that we expect to go from 2. 5 gigawatts of fire power to 50 gigawatts. Just about renewables, its about the consumer and mobility in the business, which we said is in the region of 15 to 20 returns. Our transition story is not just a Renewable Energy story, it is also a consumer story and a mobility story. Bp sellsy not know coffee. We sold 150 million cups of coffee. Thats a third as much as costed us. This is a strong business. Its a growth business. He will go from 10 million touch point today to 20 million. We are as excited about that as we are about the low Carbon Energy part. Dont you still beat 60 oil to make that happen . You need cash flows to make that work. Bernard what we did with the distribution policy reset is consistent with strategy. His was rooted in strategy we want to become an integrated energy company. We need to invest into the transition. To do that we want to be able to do that at a range of prices. What we set out yesterday is a framework, a Financial Framework that has a balance point of 30 oil, so we can do these things at 40 oil. Than 40 oil, we will take actions to preserve that. What we have laid out is a very resilient distribution policy that enables us to invest into while givingn, shareholders a fixed dividend and the potential for at least 60 of buybacks if there is excess cash flow. Tom that was bps ceo speaking with bloombergs alix steel. The reserve bank of india could meets in aay when it few hours. Economists are split down the middle, half of them survey predicting a cut on almost the rest. The key repurchase rate for the rbi has already been taken down to 4 this year. Its the lowest since being introduced in 2000. Lets get more from our economy and policy reporter. What is the case for a rate cut at this point . Case for the rate cut is a recession that india is staring at. We are looking at our double digit being 18. 9 contraction in the april to june quarter. As well as a contraction of over 5 . That is a case for the rate cut, along with Financial Stability risks where banks are riskaverse tilman. To lend. Rising inflation is about 6 , which is the upper band of the rbis target. The rbis appetite for a rate cut will probably be demolition. Is the the problem inflation is higher because of the supply side and higher food. This might not sustain. But more importantly, policymakers believe that rate cuts havent had the desire to back on growth. And the bond recovery is pretty much far off. The stability pushed the central bank to take more steps. The risk to Financial Stability are a really big concern to the governor. He is aware that only ever Banking Sector is in good health there is sound recovery. Farfetchedat looks given the Financial Stability report we saw a few days back. The forecast is surging to the highest in two decades. Are warning that stateowned banks are in bad in a need adia decade of loss growth. The governor has been asking them to build cap the buffer. This Statement Today will focus a bit on that also. Whetheralso focus on the r. B. I. Will continue more taurean on debt containment. Moratorium on debt containment. We will hear from the governor of the rbi at 2 30, hong kong time. A quick check of the latest business flash headlines. Tencent is said to be in talks to merge chinas top streaming platform, thats in a bid to dominate the surging 3. 5 billion arena. They are discussing a merger. Eaches about 30 of company and aims to be the largest shareholder of the final entity. A deal would create a streaming andt with 300 million users a combined market value of 10 billion. Confirm details of this years trip dash prime day sales extra began a. It is planning sweeping modifications amid the coronavirus era. The event will kick off in india with the usual discounts an exclusive product that it will employ a virtuals operation room with staff working from home. The u. S. Version was postponed from its usual july spot with a new yet to be announced. Plenty more ahead, stay with us, this is bloomberg. Experience the ultimate sports hub. Where you can find games, news and highlights. All in one place, right on your tv. The xfinity sports zone. Use your voice to search every stat and score. Follow the teams you love. And, even get notifications with breaking news alerts and more. With the xfinity sports zone everybody wins. Now thats simple, easy, awesome. Say xfinity sports zone into your voice remote today. Its almost 11 00 a. M. In singapore and hong kong. Welcome to Bloomberg Markets asia. Heres a look at our top stories. The u. S. Stepping up its attacks on chinese tech. Mike pompeo wants america to cut ties with huawei and tiktok. Too close to call. Economists are split on the rbis are move, but policymakers either holding or cutting today, depending on whom you ask. Rishaad profit falls for a Second Quarter amid fears of virus triggered bad loans will rise. The are joined by the chief Financial Officer of uob later this hour. Haslinda a check on asian markets and muted losses as investors pretty much gauge what to do with those filing risks. At another nasdaq record. The s p just shy of 2 to the record. Csi 300 index down by 1. 7 . Mike pompeo urging American Companies to cut ties with chinese tech, chinese apps, signaling the push beyond the cell or shutdown of tiktok. He calls them on trusted chinese apps. Singapores sti up 7 10 of 1 . We are watching pbs and uob, both among gainers despite posting positive declines. Singapore banks are resilient as shown by the recent stress test. The benchmark in hong kong is down by 1. 8 . Its below its 50 moving day average. Tencent among the biggest. We have the benchmark in manila up by 3 10 of 1 . It has been swinging through gains and losses. We had the economy plunging into recession. Gdp shrinking 18. 5 , far exceeding expectations of a contraction of 9. 4 . The worstperforming benchmark in asia year to date. Rishaad looking at whats going on in bangkok now. The time market just coming on stream. The bank of thailand held its Interest Rates at alltime low, half of 1 . That hold was backed by the Economist Survey we had. The central bank had a unanimous decision with regards to that. Just under an hour before we get imported Inflation Numbers in thailand. Expecting a spot of deflation for the economy. Looking at the nifty, looking like a flat picture in mumbai. Because say singapore, they contract traded in singapore. Looking at the vodafone idea. Petroleum, and a host of others are said to report their First Quarter results later today. Biting at the rupee, a stronger. Thats in the face of dollar weakness more than anything else. Rish, lets delve deeper into the markets. Our mliv asia strategist joins us. Said the august will be a month that could be pretty volatile for stuff, but they are rising. Well, not today, but they have from geopolitics and concerns of high valuations. Should we start to worry or are there good buying opportunities . My short answer is going to that the markets could continue to come back. We see positives and negatives. Another negative news on the chinau. S. Side. It is still the same story. But on the positive side, there is more progress in the vaccine world and relief over the big company having a surge. Between the negative and positive forces, you can continue to look on the bright side and move higher. I am seeing there are changes underway this week. Despite the disappointment in the index isnight, very sensitive to the health of the u. S. Economy. And together with oil, copper and the u. S. Treasury is all supporting the value of gains. Gain. Ld be another has been scooping up the bank of america stocks. The stimulus in the background, athink the sectors could take spotlight in the market. If that happens we will see if that market could continue to climb higher. We have seen the dollar and the currencies in this part of the world have been rising quite appreciatively. One is pulling out of the paint trade in the past two years. Other aspects are at play. Do you see a sustainable one . Trend has more. We know the rate policy will continue. Not extra its not exceptionally strong anymore. All of these factors are not likely to change anytime soon. That is having some weaker impact on the asia currency. And the korean won has been long overdue. Rise if onetinue to breaks through and has their own uptrend in 2018. And the markets also stay on the bullish side for the yuan. Regions a highyielding in an era of negative rates. We are seeing steady inflows into bonds in china, malaysia and korea. If the dollar trend has expectation for lower volatility in the currency, i think this will continue to go for the a sure currencies. A sure currencies. Haslinda you can follow more on the stories and all the days trading on the market live blog on bloomberg mliv go bloomberg mliv. We have the philippines plunging into recession after Second Quarter gdp shrank 16. 5 from one year ago. That the deepest contraction for decades. The government was put under Strict Lockdown for march through the end of may and early this week. Tough new measures were imposed after a strike spike in coronavirus cases. The philippines has the secondlargest number of infections in southeast asia. Banks in china are being exempted from the massive Loan Relief Program in the wake of the coronavirus. Are being tolds they are no longer part of a Relief Program extended in may and the order is said to apply throughout the mainland. The Program Gives businesses relief through march of next year. Indonesia will spend heavily in the coming months to support a fragile recovery after the economies contraction in more than two decades. Says theoe minister hayes will top 100 billion until the end of december as the government seeks to support growth. The economy contracted by more than 5 in the Second Quarter its worst performance since 1999. Contradicting the white house over the massive explosion in beirut. President trump it appears to be a bomb, but the defense secretary says it might have been an accident. At least 135 people died in the nitrate inhere was the ship. They suggest the fire started by welders could be to blame. Still ahead this hour, our exclusive interview with southeast asias thirdlargest bank, you will be. The question continues uob. Cfo sees their level of net loans peaking. Rishaad economists are split on how the rbi can move later. Stay with bloomberg. Rishaad india is facing the worlds third highest count of virus cases in a set for a economic contraction. Its unclear whether that would lead to an Interest Rate cut today. Are lookingts whether they would take a cut of 15 basis ray point cuts. They believe a dovish pause may bode well for markets. Is cio of debt and head of product. She joins us from mumbai. Lets start off with the rbi. What will they be looking at closely . We dont expect them to do anything today, but what they are saying and what they are observing is going to be key. Good morning. I think you are absolutely right on your observation. Its not too much about these actions today. The process oft the Monetary Policy may have. Its something that it has been on their minds. And how soon will disinflation that we have seen in the First Quarter, how soon is it on the lower side. Markets are not to hit by these actions. If there were previous links on the benchmark side, there could be a dovish tone for the monetary side. Back on themsh doing anything is not even in the next meeting. There are a lot of Inflation Fears out there. Ultimately, inflation is not very Interest Rate cuts will not move the dow in regards to inflation, at least given a lot of activity at whats happening with the monsoon. Sense there ise high correlation. Besides backing the medical emergency. The supply reductions will be eased in the coming months, specifically in the month of july. It is an important ingredient to track, specifically given the fact that it is season. [indiscernible] there is reasonable progress. Badooks like we are not as in the monsoon perspective. The bank of india sees business consideration. Rishaad looking at the position there with this lockdown and various parts of india still going on. Also just the effects of the pandemic. Has there been a Material Impact on liquidity and has the rbi done enough in that regard . The centralhink bank of india would need to ensure more liquidity and the banking system. This is more from the medical world, hence the uncertainty element. The central bank will keep liquidity comfortable. They will ensure that they leave no stone unturned. Is in the short end of bond yields and india. Haslinda what do you expect the rbi to say about the prospects for the economy for growth . Do you expect it to forecast a deeper contraction and what it did back in may . Gold is definitely a concern. There could still be a similar trend. There is a very broad band ranging from 6 . That this is not coming back in a very big hurry. Haslinda clearly the demand side has recovered. The supply side has recovered, the demand side has been struggling. Reports are suggesting that 100 million jobs will disappear. That would impact demand. Lakshmi there has been two sections. The monthyou look at of june, you are looking at workers. Some will be back 100 . The man the demand structured for permanent job losses. Where the other side is very diverse it. These are very key numbers. This is not a complete indication because the country was in lockdown. Further opening up in india. It looks like august will be a slightly better month. I think there are multiple juggling acts that are very important and critical to watch. Are you expecting be rbi to expand the debt moratorium be on our guest august . And if it doesnt, what are the implications . Lakshmi and there is clearly a house and a have not kind of modification being set. There could be a high probability of the structuring and there was adequate provisioning. Adding some part of that could be makes and match. I dont think a moratorium is heart of it. The Government Pension Investment Fund in japan is set to post a record gain of over ¥12 trillion, thats about 11. 3 billion actually, ¥113. 7 billion in the First Quarter. Thats according to people familiar with this. Lost was a quarter of during the first three months of this year. This tops the record that it had set in late 2016. 20. 5 trillion. There you have it. Coming up, washington ramping up its antichina stance or it secretary of state calls on American Companies to completely cut ties with chinese tech. We will have the latest. This is bloomberg. Rishaad secretary of state mike pompeo is pushing a central Clean Network initiative, no broadens the u. S. Drive away from Chinese Technology on all levels. We want to see and trusted chinese apps removed from u. S. App store is President Trump has mentioned impending action on tiktok, and for good reason. The Parent Companies based in area, apps like tiktok significant threats to personal data of american citizens, not to mention tools for ccp content censorship. Rishaad lets bring in beijings it bureau chief for more. Chief fors bureau more. Whats the response from where you are in beijing . Obviously, if the u. S. Were on top of tiktok, its hard to overstate the impact that would have on Chinese People visiting in america. It is really a very basic way of life in china and for overseas chinese to communicate with their friends and family. I think it would result in a very huge backlash. State media has already come out against a ban on tiktok and said that its unjustified and pushed back on that. We probably anticipate the same if the u. S. Does go through with these other threats. Haslinda how is china preparing implementational of events, sharon. . What kind of support is the government giving . Sharon tiktok is in talks with microsoft, so we have to wait and see how those pan out. But the Chinese Government has been pushing for china to be more reliant on the domestic economy. Has been xi jinping talking about what he calls his dual circulation very, theory, which would boost support and help companies rely on their market. Ourinda sharon chan, beijing bureau chief. Lets do a check of the business headlines. Instagram is launching a clone , justnese owned tiktok days after Mark Zuckerberg defended tiktok strategies. Users do the same things as tiktok. Its facebooks second attempt to challenge its rivals. Shut downted but after failing to win an audience. Tencent is said to be in talks to merge chinas top streaming platforms in a bid to dominate the surging 3. 5 billion arena. They are discussing a merger. About 38 of each company and aims to be the largest shareholder of the final entities. A deal would create a streaming giant with 300 million users at a combined market value of 10 billion. Becomes the World Fastest rising, 880 in the last 18 months. But investors are beginning to ask if its the next big thing or just exhibit a in a global tech double. Ecommerce and ebay make company has the largest game in any stock with a starting value at 1 billion spot. They are now retweeting at a record rate. Going to the market action, just looking at whats happening as china heads off to the lunch break. Seeing the hang seng and nikkei have a turnaround when it comes to equity markets. Whaty being led lower by is happening on the hang seng, which is down 1. 4 . A stronger yen has put pressure on some of those exports on the nikkei 225. If it declines it will be back on stream after the hour as and its lunch break. Gold up another 4 10 of 1 . Moving to the chinese markets. There we go, not too clever at the moment. Trade concerns are weighing on investor sentiment. Just look at this. Taking a look at the dollar index because what we have at the moment is under a bit of pressure. That is making itself felt in this part of the world with exchanges here. Local currencies appreciating, which can actually have a bit of discomfort. Looking at what we have on the vaccine front that has been played out against the u. S. Stimulus package, which seems to be going nowhere. The philippine composite index is up to 10th of 1 . Allot hit hard and raised of its losses before recovering after a spectacular contraction in the Second Quarter for its economy. Was the contraction there. We were looking for 9. 4 . This is bloomberg. Haslinda live pictures of the lion city. We are in the middle of the trading day. A sci up by . 10 of 1 . Contributing to the gain here in asia. We are keeping and i on singapore banks, two of the three largest banks in the lion city out with earnings this morning and both are in positive territory. Uob contributing to the gains. Simile gains for ocbc as well. Postedted overseas bank second straight profit declines after setting aside more provisions for loan losses during the pandemic feel recession. 22 year onme fell year earlier. Uob had a slump in lending opening. Both banks signal they can weather the economic storm. Earlier guidance maintaining earlier guidance on credit cards. Chiefg us now is uobs Financial Officer lwee wai fai. Weterms of the result that saw this morning, has the impact has the pandemic impacted the banks profitability worse than expected . Of course we are going through the pandemic. The good thing is that we started this crisis on a position of strength. Prepared and confident that we could get through the crisis. On of the first effects of the following margin. We were surprised by the sharpness of decline. Mainly because a lot of policymakers and benchmark rates have come down. That is from the consumer site. It goes withher the crisis. We knew that the crisis was not showing up yet, but we anticipate that it can get worse. We loaded a lot of provision so that we can buffer this so that we are confident to support our customers needs. Haslinda you said that it could get worse. We know that the support measures will not be extended. Is something that we are looking at very closely and watching that portfolio. Effectworried about the if the relief measures are not extended. How can they survive on their own . Its just 16 under the release being. We are quite confident that a majority of them will be able to make it. We are at this portfolio very closely to make sure that we can understand the cash flows and whether they are maintained for stress. What we are hoping for is to restructure some of this and give them some of the cash flow to the crisis. Of course we will have some that will not be able to make it. If we knew that the operating environment has changed, so customers in the Airline Industry and hospital will be feeling a little bit more stressed. Maybe at the worst case, but we are prepared to manage that. Haslinda having said that, when do you see npls peaking . Problemknew that the were facing within the next year. Which is with the ms Relief Program. We would think that it would maybe peak at the end of next year. And they are now working with us to make sure that all the assets that we have, making sure customers dont go under the Relief Program. So we have specialized them at the industrial level. Looking at what we can do for specific relief. On seven areas were mss most concerned about. They are most concerned on employment. That is something we are focusing a lot on. For the time being, the good news is that although sme, a lot of them are in the program, only 50 have the drawdown. The is an indication that they are not as stressed as most people think. Most of our customers have gone through a crisis and now they managing cashnd flow. Along the way we will manage it and we will make sure that we can help customers overcome this. Uob is focused on the region. Do you see businesses in this part of the world benefiting . If you already look at south east, the longterm potential is there. Everybody knows about the population and the growing income and gdp, etc. Tension of the trade war, and also covid actually, giving more interest to the region and die first of find their income and manufacturing to this half of the world. The South East Asia region will be in the best position. If you look at the first half of they defend it year on year. The 20 decline in singapore gives you a sense that our diversification in the southeast actually having some positive diversification. Havee same time, we customers. Customers moving out of the country will shift their base. We are very selective. We are seeing positive signs. More and more people are working from home. What is the longterm strategy uob. Ou kobe four are you encouraging more workers to work from home . What kind of members are you looking at . Lee will we battled the socalled lockdown record, most were worried about working from home. Them received very positive feedback about working from home and about the effectiveness. Philosophy is that there is still a need for it in the markets. Because we need staff to interact and timmy in their collaboration. I think if you look at the culture of the company, its what we pride ourselves with. We need that togetherness. With aill go forward combination of people working some days in office and some days at home. Withat we can provide most this while maintaining the culture of collaboration and productivity. That is probably where we see ourselves moving forward. We will continue to enhance our otherlities from Technology Improvement systems we have done. Sure that were looking at this comfortably. Besides the fiscal consistency, we continue to make sure they are comfortable coming to the office. Sure is done a lot to make the office is clean. We see a combination developing and we will see how it goes. Uob group cfo. Thank you so much for your insights. You are trading up by about 1. 8 . Rishaad lets get to the first word headlines. The Trump Administration morning there will be no deal on a virus relief plan as a millis packages are not hammered out. The democrats say they are continuing to make progress. Senior Administration Officials say it will come to nothing if an agreement does not come in the next couple of days. Some rock some republicans are caught at 5050. U. S. Payroll gains slightly slowed, the coronavirus is putting the brakes on hiring. They say june 4 million plus job gains are followed by an increase of 167,000 in july. A number that trails all estimates in a Bloomberg Survey would be in line with other data that showed labor market in danger of regressing. Deaths have19 risen. The u. S. Remains in focus. California had its second deadliest day and florida topped deadly cases. Tensions continue between the white house and medical experts. Dr. Fauci says u. S. Testing must improve and that a vaccine does not have to be 100 effective to be helpful. Dr. Fauci i hope it will be more than 70. But even if its 5060, a 50 60 effective vaccine is totally value added. If you complement it with Public Health measures. Haslinda coming up, hsbc traders and Investment Bankers. Ave been breakout stars their bonuses may not keep up with performance. Details are next. This is bloomberg. Hsbc traders and Investment Bankers with a breakout size and a gloomy first half may not be rewarded for that bonus. They have shrunk its bonus pool by 600 billion compared to one year ago. Guess it does not make sense when sony people have been made redundant. It make sense for hsbc because if you look at the first half closely, the profits dropped more than 50 and it goes quite well for them to have strong trading activities. But personal banking did quite poorly. And the bank is also expecting long losses as much as 13 million this year because of the pandemic. There is still so much uncertainty. Should we expect or cuts from hsbc in other areas . The chief executive said putay that the bank has to their turnaround plan to might of the pandemic. And the bank would need to be more medical. They are cutting 35,000 jobs over the next few years. We may see more changes to the underperformed businesses, mainly in europe and the u. S. The noise out of hsbc has been pretty dire. Is there anything that we can actually look at which might represented might represent light at the end of the tunnel . Alfred i would say there are not so many. Asia, that region that they are expanding into, hsbc made more than half of their revenue in the region. Now they are expanding Wealth Management in china where they are planning to hire up to 3000 , at a time when they are cutting jobs elsewhere. Reporter our financial , alfred. Forgoingnion has been guidance as a plans for cost cuts amid the pandemic. We are serving customers to 100 countries. We want to reach out to them. We would kill them indicate communicate with them. But there is essential travel because of the countrys where we believe the covid environment is more safe. We have our European Office and i travel commercial to europe. But we are really looking around and we are taking care of our people. The health of our employees is the most important thing for us. That ceosthe things are wrestling with is pandemic fatigue. Its getting hard to work from home. The morale at your company, and how do you keep it up . Hikmet i was talking with another ceo yesterday, another fortune 500 ceo, there is some morale. People like to be together. Discussoing, we like to in the meeting room or will we have coffee with each other with our team members. But we have been quite good. Alking to our people definitely using the electronic channels. We are used to being in different areas as a company. We have motility from 10 Different Countries in different parts of the world. We are not always in one meeting room and we have different kinds of communication. It makes very effective we start the meetings in the morning at 6 00. We also cover other parts of the world. Challenging. T is it is tiring, that is no secret. There are longer hours. I sometimes have the luxury between Conference Calls where i meet my family and have lunch with them. Morale for me. It goes higher again. That gives me more energy to focus more for my afternoon meetings. The world was deemed globalizing even before the beforeglobalizing covid19. How do you grow if there is less innovation and less trade . Is in i think the world a different globalization environment. Globalization will continue. Owned bytion is not government and corporations anymore. By people whois are connected all the time. Look at our business. There are about 270 million that are globally migrant. Under 90 Million People are living abroad. The last 10 years another hundred Million People might really move to another country to look for better opportunities to support the economys back home. Its about 700 billion every year. Larger than the investment, so the globalization will continue in a different way and we can connect and invest and bring people together. Rishaad thats the western. Nion ceo talking at have a look at whats going on with indian markets. More news being dominated by the reserve bank of indias Interest Rate decision. Two hours 42 minutes away from now. , 23 out of 24ne economy is surveyed by bloomberg who thought they would be a 25 basis rate cut. We can see the positive start. Indeed, it has come to an advance. Vodafone idea and blue star comes out with earnings. Coming up, the ceo of teslas making competitor tells us why hes not impressed with elon musks attempt to enter the segment. The ceo is next. This is bloomberg. Haslinda breaking news out of the philippines. The philippines revising its 2020 gdp estimates to a contraction of 5. 5 year on year. The economy is plunging into a recession as gdps fell the most ever today. Brings theending backbone down 15. 5 year on year. The philippines advising its 2020 gdp estimate to a contraction of 5. 5 year on year. Electric carmaker nicola bumpy start. To a it lost more than 86 million in the Second Quarter and its Stock Limited after a heating Earnings Call with analysts. Bloomberg spoke with the ceo who discussed the companys outlook and why he decided to produce a pickup model to produce compete with tesla. Mark we have always been open a partnerships. People often compare us to tesla. Tesla tries to do most things on its own. A huge undertaking. We are interested in partners who can bring resources and who can help us succeed in this. We are looking for partners from the beginning, and you will see more partnership with us in the future. We will be a partner company. Mark, one thing it seems as though the market wants to hear is partner names. Once you line up partners, how soon before we see a badger on production and the load . Mark we are looking for a partner for producing the badger. Depending on who that partner is, we will get it on the road as soon as we practically can. We will also announce that partner as soon as we have the legal ability to do that. We make great progress on that front. These are partners that can help us produce the vehicle very rapidly because they bring a lot of resources to the table on that front. A lot of credibility. People will be impressed i the name. By the name. Is is a carmaker or a Technology Company . Can you give us any idea of what these resources you speak of our . Of are. . Mark original equipment. So what we know already. Very positive when you think at it. Can you give us an idea of how many customers you anticipate and how soon . Mark the reason we did this is, we have not planned on building a passenger pickup truck until the cyber truck was unveiled by tesla. So many people were disappointed with that. There was lots of reservation for it. Some people did not like it and they said, could you guys do Something Like that . It so happened that we had a concept and we just threw it out there. We said, here is a concept that we have actually done before. People went nuts for it. Our website for people to come in and raise their hands and fill out a form to say, id be interested. We had 89,000 people do that. These are nonpaid reservations. They are indications of interest. We had 89,000 people do that and a short amount of time. Thats what attracted the attention of some oems and thats what got us thinking we might want to build it. That has progressed very rapidly. How many of those reservations could we realistically expect turn into sales . Mark we cannot disclose that because we are close enough to this thing and we are in a quiet period. More information is coming. Focused onlargely the badger in december. There will be more information forthcoming. There are plenty of momandpops shocks shops in the u. S. Do you want to make yourself attractive to them . How will you do that . In the heavy part of the business, we are making semitrucks for applications on the road powered by a fuel cell. We are making sure how shorthaul versions of the truck. This is who we have been talking to from the beginning. If you look at our reservation base for the truck, these are largely very large fleets. We have had an arraignment with anheuserbusch for several years now where there where they will be our pilot customer. They have a large feet and they have ordered 800 trucks from us. Those are our target customers. A large fleet at as a target customer and those are the people we have been talking to so far. We will continue to focus on them. Nikola co. Looking forward to results. Uber and lift in the u. S. And the tourism side of things, hilton hotels. We will hear from big european banks. Looking at the markets just as hong kong exits lunch break. How the news, including philippines economy contracted by 16. 5 in the Second Quarter. This is bloomberg. The following is a paid presentation brought to you by rare collectibles tv. The Morgan Silver dollar is without a doubt the most iconic coin in United States numismatics history. Designed by george morgan, this Silver Dollar series was minted from 1878 to 1904 and again for one year in 1921. The morgan dollars nearly one ounce in weight and has a 90

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