Transcripts For BLOOMBERG Bloomberg Daybreak Asia 20240712

Companies listed in new york. Tiktok remains a major stumbling block. Uber delivers, but not where we might have expected. Food shipments top ridehailing for the first time as the decade of unchecked growth hits the brakes. Haidi lets kick it off with a check of the markets. U. S. Stocks are surging, pushing higher as hopes of a stimulus to deal in congress will be imminent as President Trump says if nodeal is forthcoming, he could take action himself. The are seeing s p futures looking flat at the moment after the s p 500 pushed its fifth straight positive session overnight. Chicago nikkei futures also pretty flat at the moment ahead of the holidays kicking off next week so as you expect, we are seeing traders shifting their holdings and also assessing a flood of earnings. The aussie dollar holding that threeday again before the rba Quarterly Monetary Policy forecast. That report due out this hour. 72. 33. We heard from phil evans in the previous hour saying he sees putting clear roads from here for the aussie to end up much higher by next year. Dollar china, we are watching that. 69441. As we get that report on potential tightening of Disclosure Requirements for companies in the u. S. , and we are seeing dollar china trading at near a five month high offshore ahead of key chinese trade numbers out today. Getting a little bit of a training with the weekly gain after the advance being seen by some parts of the markets being a little bit frothy at this point. Switch it over and taking a look at how china and hong kong futures are. The hang seng futures are on the rise after the selloff we saw on thursday day. That was led lower by tech on these worries that the u. S. Might take more measures to limit the use of chinese tech as we continue to watch negotiations between microsoft are seeing but we hang seng futures up by. 25 after closing lower yesterday. Share he. Shery. Shery we are getting breaking out of ocbc. Second quarter net income coming in at 730 million sing dollars which is really missing the estimates. It would be higher than 930 million sing dollars. When it comes to the first half nonperforming loans ratio, coming in at 1. 6 , their firsthalf net income at 1. 4 3 billion sing dollars 1. 3 billion sing dollars. We have seen margins being able given lowr pressure interest rates, and right now, they have really missed their estimates, 730 million sing dollars. There nonperforming loans ratio came in at 1. 6 . The first half allowances for loans and other assets coming in dollars. E billion sing singapore lenders putting aside money given the potential loan losses that they could see as the economy continues to deteriorate given the ongoing coronavirus pandemic. Haidi. Todi shery, lets get back our top market story. Tech stocks in renewed focus when china opens the trade this friday session. The panel pushing for tighter Disclosure Requirements on Chinese Companies listed on american exchanges. Tom mackenzie is in beijing for us with the details. We have had numerous highlevel high profile u. S. Investors that have long kind of talked about these governance concerns for Chinese Companies. What is this proposing to do . Tom that is right. This is a debate that has been going on for more than two decades because china has effectively pushed back on requirements or pressure from the u. S. To have greater oversight and insight into the accounting of companies, Chinese Companies, that are listed in the u. S. , but this is becoming to ahead. Really coming to a head now. That includes the heads of the fcc, members of the treasury, the head of the fed as well, and they put together these proposals recommending that the fcc itself strengthen those requirements around the submission of audit papers from Chinese Companies to the main Accounting Group in the u. S. That goes through all of those numbers. Now, it is not clear at this stage how they are going to enforce these new proposals but the idea is you level the Playing Field and you put some protections in place for u. S. Investors because theres deep concern that u. S. Investors could be exposed to fraud linked to some of these Chinese Companies listed in the u. S. The ultimate consequence is the delisting, as you alluded to, of the Chinese Companies. They will have, under these proposals, until january 1 20 22 to come into compliance and there was one case that happened this year. It is listed on the nasdaq. That was an accounting scandal involved with that company where you saw the stock falling 90 and of course, you had american investors exposed to that stock. That accelerated these conversations. It is about leveling the Playing Field and trying to ensure chinese and u. S. Investors are not exposed to fraud and accounting rest. It is a more than two decade debate going on. Lets talk about one chinese company, tiktok, because they continue to sell operations, but give us a little bit more clarity. It was going to be the u. S. Operations in talks with microsoft. There have been reports it could be the Global Operations. What do we know . Tom we know that initially, microsoft was looking at buying the operation from the u. S. But also canada, australia, and new zealand, we have a report out from the Financial Times suggesting that they would hurt a conversation with tiktok and the Parent Company in beijing about buying the Global Operations of tiktok, because sorts ofo are all complexities about how you carve out specific jurisdiction for different parts of the company. Sources that say the conversations are focused on the purchase of the u. S. Parts of the business, canada, australia, new zealand. Not the u. K. That is according to sources talking to bloomberg. There is a challenge for microsoft as to how to absorb the business if they do that and make sure people and consumers continue to use it, not just in the u. S. , but globally as well, so theres a lot of conversations about what happens in the backend of this business, so that continues. Those conversations continue. President trump has set himself ofset tiktok a deadline september 15 to be sold to a u. S. Company looks like microsoft is in the lead on that front or they close down the app. Shery Tom Mackenzie in beijing with the latest. Coming up, hsbc Global Asset Management sees asian economies recovering faster from the pandemic then global peers, however, Portfolio Managers say the threat of a doubledip is rising. Plus, uber ends a decade of growth. Our earnings analysis, ahead. This is bloomberg. Karina you are watching daybreak asia. President trump is expected to act alone stimulus relief talks seem to be heading nowhere. He says he mae sai sign executive orders boosting Unemployment Benefits are due to expire as the white house and democrats wrangle over the extent of further aid. Democrats say progress is being made but the two sides have major differences as fridays deadline moves. Meanwhile, the reserve bank of india kept its benchmark rate unchanged at a record low for percent while announcing plans to ease stress in the banking sector. Indias economy is heading for its first fullYear Contraction in more than four decades. By r. B. I. Has lowered rates 115 basis points so far this year. India has the third highest number of coronavirus cases globally at nearly 2 million. Australia is to add another 15 billion aussie dollars to keep its job keeper program, taking the total cost to more than 100 billion. Josh ryberg announced the increased cushion the blow of the lockdown which the government forecasts will drive on employment into double digits and wipe another 2. 5 from gdp in the current quarter. Being living in tokyo are asked to refrain from traveling outside the city for the upcoming holiday although authorities are yet to declare a new virus state of emergency as cases surge. Office vacancies have jumped by the most as it weakens the economy. Rose for a fifth consecutive month. Global news, 24 hours a day, on air and on bloomberg quicktake, powered by more than 2700 journalists and analysts in more than 120 countries. I am Karina Mitchell. This is bloomberg. Shery china trade data due in a few hours. They show a pick in external and domestic demand. Chinas economy has shown a sharp rebound from the pandemic. Our next guest says it is not why asia will fare better than the rest of the world. The Portfolio Manager for emergingmarket debt and currency strategies at hsbc Global Asset Management. Great to have you with us. Is it just the idea that perhaps asia was the first in an the first out of the pandemic and perhaps they have done a better job than other countries in managing this pandemic . Olga that is exactly right. What we are observing, what matters is individual Companies Respond to the pandemic, including virus containment and fiscal and monetary response. It is also the nature of the external demands. They when it comes to market, we continue to put a lot of focus on the currency markets, especially with the dollar now being on a downward trend. This dtv chart on the bloomberg showing some of the trades we have seen and it has been a very good one for july for the em carry trade but it is starting to level off a little bit and you are seeing that in the white line. Where are you seeing the biggest opportunities in the fx markets . Process are very oriented and consider a number of factors. We look at valuations, fundamentals, carry, and technicals. First of all, i guess, in terms of our topdown view, we are positive on em currencies, especially versus the u. S. Dollar. In terms of the u. S. Dollar, i ,ould say it is the push factor liquidity, which is historically low yields in the u. S. , 1 . On the other hand, we are also seeing the pull factor, which is improving trade balances and current accounts in em as well as improving growth into emerging markets, so we actually like a number of currencies in em and our top picks at the moment are malaysian ringgit, indian rupee. There are a number of factors that support each in each case. In the case of malaysian ringgit, we are looking at the real effect of Exchange Rate, which is the Exchange Rate versus trading partners adjusted for inflation. It is historical lows and the results of the currencies of the largest trading partners, such as the euro and chinese mmb appreciating. Also the countries experiencing deflation. The carry is attractive given the policy rate of 1. 75 . The trade balance is starting to improve after falling in april. In the case in indonesian rupiah, yes, we are seeing an increase in virus cases, and that is certainly a concern. However, the Bank Indonesia still has space to cut rates, and there is only 20 of the fiscal package that has been approved and used. It is one of the highest currencies in our universe, and also, it is considered a high beta currency. It should outperform in a weak dollar scenario. Finally, as i mentioned, the indian rupee. Again, it is a concern investors we actuallyere, but have attractive carry there as well, close to 4 . Has got to be a catch up trade for emergingmarket currencies, particularly in asia. Most of the weakness in the greenback has been against dm. Olga thats right. We do think that there is a space for appreciation in some currencies such as the malaysian ringgit. Extent, indonesian rupiah and indian rupee, where it is mainly the positive yuan carry. Expect sense, we do currencies to perform. Expect to much do you continue to see the chinese yuan behaving as an anchor currency for asian ems . Olga with respect to the we have anminbi, balanced view. We switched our long position into malaysian ringgit. We expect the Chinese Renminbi to remain broadly stable after the recent appreciation earlier in the month. , portfolio yangol manager at hsbc Global Asset Management. Coming up next, 10 years of unchecked growth are over for uber. We will be assessing the weaknesses and bright spots, next. This is bloomberg. Haidi ubers decade of unchecked growth has ground to a halt with secondquarter earnings showing a obviously, the pandemic and the uncertainty of when cities around the world will come out of the pandemic is really decimating business when it comes to the ridehailing part of the business. Haidi we will get more on those uber earnings. We will stay with the theme of mobility. Hasral motors offered a tesla like range. Buyers will have to wait until late 2022 to take one for a spin. The cadillac is debuting four months later than planned, gm having postponed the reveal because of the coronavirus. Steve carlisle spoke with us at bloomberg. To attract consumers in the numbers that we would like to see, i would say we are going to be close to the heart of that midsized crossover segment. Maybe a little bit of a premium at the outset, but the way we see it, we see prices normalizing. Into what people expect today. The key insight is people dont want to make compromises on what they have today in terms of mobility. Is to evolve that into an electric vehicle. Theres no compromises, comparable prices, and so on. Where do i buy one of these . 2022. Right around two years from now. It is getting really close. Do you have a sense of how big the market will be . How many of these do you hope to manufacture . Steve it is a little soon to say and to put a timescale against that. What we do see in broader terms is that these segments, over time there is a very robust, midsized lux crossover that will migrate to electric, so you know, we will see smaller numbers at the beginning, bigger numbers as they go on, as that is how we see it. That is in our planning. Is this transition period that we see, you know, the middle and latter part of the decade. At somethingoking with a more than 300 mile range. How can i charge it . When i am home, i can charge it, but what about on the road . General motors made an announcement about charging stations across the country. When will i be able to charge it at one of these . Steve that is all going into place now. We are busy with that. As much as the product is really important and the technology, having this whole ecosystem to support sales and ownership. Our most recent announcement. Building out that charging infrastructure, so we would like to have that substantially in place by the time we launch this car. And you know, not only that, but being in a position to be able to facilitate, if you wanted to, install a charger at your home, that we make that as easy as possible as well. That is what people really want to do. People want to have the peace of mind that if they need to charge when they are on the road, that they are able to do that. What people really want to be able to do is to have the convenience of charging at home. What about geographic markets . This will be north america. What about china . China is very important to automakers. And cadillac, most specifically. Steve our intention is that any electric vehicle that we do is available wherever we have a cadillac brand presence and Distribution Network around the world. To your point that certainly includes, first and foremost, china. All of these products, we are dealing with the globe in mind and china in particular. Everyone has been looking forward to the announcement and the release of this new cadillac. Give us a sense of product cadence Going Forward. How often do we think we will have a new gm vehicle, cadillac or otherwise, coming up as all electric . Steve well, we like to say, with our internal combustion portfolio, you know, if you wind the clock back three or so years, we would have a new product every six months or so until we turn over the entire portfolio, and we did exactly that. As it pertains to cadillac is to do that again, this time with electric, so we will kick that off in 2022. Over a period of 3. 5 years, fill out a showroom of electric vehicles so that we have the best possible market coverage in electric, and at the same time, we will be coexisting with internal combustion, and then we will have to see how that transition takes hold. That is what our strategy is and what we are setting ourselves up for. Haidi that was the cadillac president , steve carlisle, speaking to david westin. Lets get back to uber. Secondquarter earnings is signaling a steep decline in ridership. What did you hear from it seems like the recovery path looks very uncertain. When you look at the two segments. Mobility and delivery. Delivery has high tailwinds because everyone is working from home. They were ordering food to the apps. That is not longlasting. Ishink the bigger trend here even with the doubling of the delivery business, they had a 44 decline in u. S. Revenue, in europe, in latin america. So all the key markets, they had a revenue decline. The only place where they had positive Revenue Growth was asia pac. The reason they had positive growth there is because they had very little contributions from delivery. They had exited also the market. And asia pac has recovered faster. The overall region has recovered faster from covid than others, other regions. My main point here being i think white segments is the key when it comes to uber. A very uneven recovery, and we do not think it will get to prepandemic levels before 2022. Haidi is there any hope in the companys expansion into grocery . Mandeep that is an extension of delivery. They can add growth rate delivery. That will be a nice tailwind. The problem is, the more they increase the delivery, it is lower margin. Increases as it exchanges towards delivery. Burning uber bang is too brilliant close to 2 billion in cash. Now, we are talking about burning even more cash in a business which, eventually, you hope it will be profitable, but it is not for the next two or three years. Shery Mandeep Singh with his take on ubers results. Coming up next, stalemate over stimulus. What the lack of agreement means for the u. S. Economy that still needs support. We will discuss. This is bloomberg. Shery breaking news out of japan right now. We are getting the labor cash earnings year on Year Contract and. 7 . Now, this would be a third consecutive month of contraction with japanese wages year on year. This as we continue to see more bankruptcies and more people taking parttime jobs, really putting pressure on labor cash earnings. Household spending year on your declining 1. 2 percent, but really, that slump moderating from the previous month. We have seen a decline of more than 16 in the previous month, and the estimate was for a contraction of more than 7 . Still a fourth consecutive month of contraction for Household Spending. Not surprising given the ongoing coronavirus outbreak, but still, we have seen those virus containment measures nationwide being lifted in late may, not to mention that more than 70 of households had received the ¥100,000 government release payments so that perhaps is helping in these Household Spending more and more in a month of june and that the client 1. 2 percent. Lets turn now to Karina Mitchell for the first word headlines. Karina lebanons to question a former public works minister and the general manager of beirut court over this weeks catastrophic explosion. Let the ministry until 2013 when a shipment of Ammonium Nitrate was seized and put in storage. Documents show authorities ignored warnings about the highly explosive material for years. More than 130 people died in the blast and thousands of others were wounded. Meanwhile, sri lankas powerful heading for a landslide election victory, giving them the chance to change the constitution. Early results show their peoples front has won a majority in parliament with the Prime Minister retaining his brother asis younger president. His son and other family members are expected to be given to humans euro roles. Despite the strictest lockdown in southeast asia, coronavirus cases in the philippines are now at 120,000. It beat indonesia as the regions hardest hit country. Metro manila is back in lockdown as the economy seems into recession, should sinks into recession. The philippines has also been hit by Migrant Workers coming home after losing their jobs overseas. Erythe bloomberg mis index sees the u. S. Suffering the worst declines amid peers. America fell 25 places in a survey. Almost all economies are projected to be more miserable this year amid covid19, but only iceland, israel, and panama are close to the u. S. Level of deterioration in the annual rankings. Global news, 24 hours a day, on air and on bloomberg quicktake, powered by more than 2700 journalists and analysts in more than 120 countries. I am Karina Mitchell. This is bloomberg. Staying in the u. S. , President Trump is getting ready to use an executive order to keep money flowing to unapplied workers and cashstrapped businesses if republicans and democrats cannot agree on a stimulus plan by the close of business on friday. Kathleen hays is on the story. On the one hand, crater certainty for the markets it on the other hand, does the president have the power to be able to do this . Leaving to goas out to ohio, make Many Campaign stops. Coming from trump himself over the last couple of days, he is going to go ahead and get it extended, get the moratorium on evictions and student debt repayments, extended until the end of the year by using executive actions. Many people question if he can do this. Apparently, he has been speaking to a former white house lawyer who thinks he very possibly does. Another thing he is talking about is the payroll tax cut holiday that he so badly wants to put into place. That is another thing he will put on this list. Of course, it is not just democrats who oppose it. Republicans do not like it either. Why is this happening . He is frustrated. It has been over a week now that the talks over the stimulus package have been occurring between republicans and democrats. The president stepped to the side. Instead of being involved himself, Steve Mnuchin, mark meadows in charge. And i think he has gotten tired because theres no deal yet. Ich mcconnell also saying will agree with anything the white house and democrats can agree on. A lot of republicans will not. Probably 20 of his members will not and that is another reason why they need democrats on board. Remember, mcconnell has extended the negotiations will stay there. Tomorrow is today they are supposed to leave. It will be interesting to see how the president handles this. If there no agreements by friday, hes going to have this announced. Shery washington will be laser focused. Kathleen especially after the jobless claims came in better than expected. To 1. 19 million. You look at a chart, you might be able to see, if you squint a bit, even at that level, the best level since march. But the 249,000, that decline is actually about the average that we saw for years in jobless claims, so it is better but it is still awfully high. Lets head onto payrolls and what they will do because this is a big focus now. Bloomberg economics is pointing out that the period when the survey was taken, a lot of things were happening. We had Consumer Sentiment falling. Dont really know if we are going to get a negative number. Some people are looking for positives. The forecast, 1. 4 million. They rose 4. 8 million in june. The consensus is 1. 4 8 million. Look at the range of estimates. 600,002 3. 2 million. That is why i say it is anybodys guess, but definitely, this is potentially the big market mover for tomorrow and beyond. Uncertain times. Kathleen hays. At cofounder and cochairman Oaktree Capital, the largest investor in distress securities distressed securities worldwide spoke about the longterm ramifications of u. S. Stimulus. He warns the fed and treasury cannot keep propping up the economy forever. Believe that the injection of that kind of money, liquidity into the economy, is likely to have some longterm ramifications, and the most likely is some pickup in inflation. That doesnt not mean it is a mistake. The mere fact that we do possible that has negative consequences does not mean it is a mistake. They had to do it. If they had not done the things they did, we would be talking about a much more serious economic event. Now, we might be even using the word depression. And the words global depression. What we are talking about at the moment is largely a macro issue. Lets try to focus for a moment, if we took, on the credit markets. Can government ever put the genie back in the bottle or is there now something of an irreversible backstop for all but the most unsalvageable of Zombie Companies . That is the question. What is the answer . I dont know what they are going to do next time. Obviously, this time, they are providing liquidity to all kinds of companies. Some of them are zombies. We use that term in the markets to define a company where the cash flow is less than the debt service requirements. In other words, they had to borrow money to service their debt because their operations dont go off enough. That company is not doing well. If it will do that for long, it probably should go out of business, but the provision of liquidity is keeping them alive. Another thing we say, however, is that the fed can provide liquidity but it cannot provide solvency. It cannot make a Zombie Company a moneymaker. But they can and are keeping companies longer. Which is to say, for the time being, these companies would not have survived were it not for fed and treasury action. Howard many of them, yes. Yes. A great example is the airlines, you know. The airlines have tremendous ongoing costs every day, whether they are flying or not, and to ground the planes and have them go through a long period when they are not flying or underpopulated, many of them would have gone under. Grants kept them in business. Do you think we have crossed the line into state capitalism . Well, state capitalism, we have not passed a line into government ownership of businesses, but clearly, there letn unwillingness to companies go. There is an unwillingness to let the chips fall just anywhere. Period sinces march has been a period when the government has been providing revenues and incomes to people and businesses that they otherwise would not have had that they need. Without those, it would have been very serious consequences. There is a necessary darwinistic quality to free markets that has been staved off for the time being. At what point is it right . Every Credit Investor is wrestling with this because you have to make decisions accordingly about how you think you are going to generate a return. Its fundamental in this equation. At what point does not need to start happening . Howard looks, we use the term creative destruction, which is to say that companies that are unsuccessful should perish. We waste societal resources keeping Unsuccessful Companies in business, then we cannot do then there are other parts of the population or the economy we cannot do as much for. Ofdi that was howard marks Oaktree Capital speaking to erik schatzker. Lets take a look at how futures are setting up when it comes to this last trading day. Starting off with u. S. Futures after s p 500 traded higher for a fifth straight session. We are hearing from the president , saying he will take unilateral action when it comes isstimulus plans if a deal not reached by the close of business on friday. The are seeing businesses pretty flat by. 1 . Nikkei futures trading in singapore, became pretty directionless, too. We are getting holidays in trading volumes already going into the open holidays next week. Some of those traders finalizing their positions there. A lot of action when it comes to precious metals, seeing silver in particular trading at a 2013 high. Silver futures on track for the best week in 40 years. Bank of america saying 35 an ounce is still very feasible by next year, and also calling 3000 for gold as well. Lets take a look at the chart on the Gtv Bloomberg chart, showing aussie stocks have been trading in a very narrow range over the past month. Flatteningbulence out, below the 2020 average, as we get the rba statement on Monetary Policy in the hour. Plenty more to come on daybreak asia. This is bloomberg. So i do think that the daily protests have really solidified in peoples minds that they need to change the culture. It needs to be different. The real change will come when we change the system and the structures, and that is what sco has been doing. Over 4000 we serve young people, overwhelmingly black and latinx. All of us have opened our eyes and said we need to make a change and we are. The world has changed. Foreeds to accelerate elimination of these structural, racial imbalances and injustice in our system. Business leaders are speaking at the bloomberg equality summit. Staying with a push for equal rights in the corporate sector, many Tech Companies struggled with diversity. Specifically in the board rooms. Progress is being made according to a recent study from 2018 to 2019. We gained 811 seats on companies for the russell 3000. They hold over 19 of board seats. While the progress is good, there is still work to be done. Joining us now is paypals chief of business affairs, luis. She spent two decades working on Tech Leadership roles. Wonderful to have you with us here on bloomberg tv. Some progress, incremental as it is, better than no progress at all. Toe in australia, we managed stay above 30 for some time now. Why is the progress being made in the tech sector so much slower than across broader corporate roles . To,eah, i think you have you know, look at the problem statements from a truly endtoend perspective. We have not seen, in the last decade, the talent at all levels of organization that we need to be able to see. Some of the senior recruitment and highlevel positions. What we are starting to see now is a broad awareness of that need. And we are starting to, you know, i think very intentionally for programs intact around making sure that there is a true pipeline. Certainly women and people of color can have a fair opportunity to be considered for those opportunities. Haidi what are the barriers that still exist . Louise well, i think part of the barriers kind of goes to cultures. I still think that for Tech Companies, the culture still exists where it has just been hard for women to break through. Do i think what we tried to that paypal is create a culture of inclusion so that, you know, you are not seen in many various heights. If you have a strong point of view or you want to show ambition, i think that has not always been tolerated in the past. I think another barrier that i is women certainly need more help to break through the traditional system. We have an existing rolodex. Aen i am starting to see is real broadening of networks around how people recruit. Wereinly, when we populating paypal forward, 45 today, where we were not when we started, a lot madet most of those were through the networks of our existing Board Members and executives. Aery how do you establish clear evaluation criteria so you have the right processes so you dont have this bias creeping in during hiring or reviews . Louise yes, so i think theres a couple of things. I think one is, you know, women need to feel supported, but they also need managers who know how to support. A lot of talk has been given around unconscious bias. At paypal, we looked at that even broader and we said every one of our employees all the way up to the ceo. We have all been through a Training Program so that we can build the first step of awareness in addressing, you know, we all have biases, no matter where we came from or what our backgrounds are. I think its really aligning the examples. In that culture, you have got to have fairness in the system had one of the big things we did is that the ceo immediately said we have to take a focus on pay equity because people have to feel equal to really be given the same advantages. One are being an independent company and we have focused on pay parity and equality in creating opportunity in our current program, and i think a lot of that investment takes several years, but we are certainly a thing coming out of that last five years much stronger than where we were when we began. Shery louise pentland, thank you. Smashing estimates. Nintendos profit tops all analyst calls thanks to its island life stimulator, animal crossing. We will have the details, next. This is bloomberg. Haidi a quick check of the latest business flash headlines. Profit fell more than expected in the Second Quarter as provisions for loan losses sword and mending shrink during a pandemic. Net income dropped 40 from a year earlier to 730 million singapore dollars. Just over. 5 billion u. S. Dollars. Ocbc is singapores Second Largest Bank by assets and joins dbs. They saw year on your revenue sink in the Second Quarter by 94 to just 30 million u. S. Dollars as the coronavirus crippled business. The companys net loss in the period was 117 million, the most since singapore integrated results opened. The virus close in resorts and casinos, devastating Customer Base and travel shutdowns around the world. The sprawling conglomerate built the firstms 29 in half. Holdings in the second half are worse than last year. It has profited for decades by expanding in times of crisis but is now hunkering down and putting controls on spending as geopolitics and the coronavirus battle earnings. The group cut its plans for dividends. Shery lets turn to nintendo smashing earnings estimates, proving it is a tailwind for the games industry. Lets get the details from peter elstrom. Apparently, this was because of what this game, animal crossing, sales almost doubling. What is this . Peter operating profit for the quarter was up about fivefold. As you mentioned, it passed all the analyst estimates. Animal crossing was the pitch. It is a game that is kind of an antidote to the pandemic for many people. It is a Peaceful World where people build their own environments, and it is supposed to be calming so it has really taken off. As we wrote, in the march quarter, they sold 12 million copies in just 11 days, and in the june quarter, the sales were strong again with another 11 Million Units of the game sold. Those are particularly profitable because their software is supposed to switch hardware, which has some thinner margins, so that really helped profits at nintendo and they were pretty optimistic about that business as people stayathome and workathome. Why, with all the success, didnt nintendo raised its forecast for the year . Peter it was interesting. The company was pretty conservative in their discussion online. They said theres still a lot of uncertainties around the pandemic. They do not know what will happen for the rest of the year. There were some disruptions to their supply chain. Their ability to move consoles and other products, so they were conservative. They kept their outlook exactly the same, but there were analysts who took heart from the performance in the Second Quarter and the brighter things ahead this year. Shery the pandemic has been a boon for the gaming industry. I wonder will this last past the pandemic . People will be itching to go out once we continue to reopen economies. Peter that is a good question. Certainly, this is evidence that, as people stayathome more, both for work and for study, that there has been increasing demand for these kinds of computer games. You raise a really good point. As people are allowed to go outside, as they have more freedom, they very well may move away from this sort of thing and try to get outside a bit more. I guess it depends on the markets and how quickly the various economies are going to open up again. Elstrom in tokyo. Coming up on the next hour of daybreak asia, the head of aipac equities sees even more upside to asian equities as they continue to outpace their peers. We will be speaking to the cfo of southeast asias biggest developer. They recorded Second Quarter profits. In the meantime, the market open is next. This is bloomberg. Haidi good evening from bloombergs Global Headquarters in new york. Haidi asias major markets have just opened for trade. Welcome to bloomberg daybreak asia. Asian markets look to round off a winning week as investors await a stimulus package in washington. Wall street ended high. U. S. China tensions ratcheting up further. Tictoc remains tiktok revenge a major stumbling block. One south Korean Company is weathering the storm. We have a bloomberg exclusive with the tesla supplier lg chem. Shery japan, south korea, and australia coming online. Lets get the latest with sophie kamaruddin. Sophie not so much price action. Little change in the asia session. Volume is likely to persist in japan ahead of the holiday. You have the nikkei opening. Little change this morning. We are keeping an eye on consumer names after a decline in Household Spending, moderated in june. Keeping an eye on things like nintendo this morning. Check out what is going on with the offshore yuan, holding below 6. 95 ahead of chinese trade data. Trimming a weekly gain after hitting a five month high. Asx 200 moving to the downside of 1 . 1 10 set for a seventh weekly gain. The korean won trading at a five month high, set to cap a third week higher. We have the kospi continuing to extend games of september gains of september 2018 highs. We are keeping an eye on chip stocks in seoul. Korean bonds are proving popular. Lets pull up the chart on the terminal to show you this picture of global funds rooted by high yields in south korea and a Credit Rating pushing inflows to 41 billion for korean debt. Other asian bond markets are seeing outflows. He chart to south korea and india leading. Hereindex set to erase today losses potentially today. Year to date losses potentially today. Our next guest sees more upside for asia. Ubs Wealth Management head of apac equities and credit Hartmut Issel joins us now. What are your expectations that before the end of the year we will get a widespread and effective vaccine . How high is the risk of disappointment right now . Us, having it by the end of the year is the upside case. It does look like we are going to get one. On the value trade, as we all know, the growth in australia is very stretched now. We are having more visibility with these lingering cases we see in many of the countries like the u. S. , partially in europe. India is another case. When we can bend this curve further, for value in particular, would probably be helpful. Haidi india and singapore interestingly your two picks for highperformance. India has had a hard time dealing with the pandemic and it has wreaked havoc on its economy. Singapore is one of if not the most externally vulnerable economies in this part of the world. Tell me about your bullish case for these two markets. Hartmut starting with india, you are right. The market to this day lagged in the recovery is they have been bending the curve. It looks like in the figure studies that capture most of the gdp, we are seeing a bend. Be that as it may, we think given almost 30 earnings recovery for india possible next year. It is not only covid related, by the way. Some sectors have very low rates. Bita is quite a underpriced. India one of the best performing markets we do think the market is more willing to look through the current situation. Get fromore we evidence it is an open economy. Its stock market is approximately on trade with the region. That sequence would probably calm down financial markets. Ubs Wealth Managements Hartmut Issel. Coming up, defying an industry slump. Tesla battery supplier lg chem is seeing record sales. Our exclusive interview with its ceo is ahead. Grim milestones. More on this later. This is bloomberg. Tech stocks will be in focus when china opens for trade after a highpowered u. S. Panel pushed for tighter Disclosure Requirements on mainland Companies Listed on american exchanges. This is just a recommendation so far, but how likely is it we could see this be put forth given the antichina sentiment we are seeing in washington right now . Right now this is a should and not a must. However, its got a lot of bigname people behind it in the u. S. There is certainly sentiment toward increasing transparency in terms of china listings and some of the things they have going on. Reasons a nonusa china for doing this. We also do remember, thinking back, the highprofile accounting scandal. There has been a lot of call for additional transparency, the ability for inspectors from the accounting Oversight Board to review audits of Companies Like alibaba, like baidu, other firms that trade on american markets. It has been a problem that vexed u. S. Regulators for years that china generally refuses to allow those inspectors to review those audits. This is sort of a move towards that. Eventually the idea is all of these firms would have to submit to this may be in the next year and a half or so. Any new firms would have to submit to this too. If it went through, there would be a great deal of additional transparency if people complied. The fear among some is what it will actually do in practice is tell all of these companies that are cross listed in new york to cross list in london or hong kong or somewhere else instead. Does this really create a new wave of opportunity, particularly for hong kong with the patriotic trend of Chinese Companies coming home . Definitely, if you are hong kong, if you are a london exchange, this smells like opportunity to you. However, if you are on the american side, there is certainly a thought that youve got one class of companies that has to follow certain rules and this other basket of firms where you dont necessarily have the same opportunities. Given the Global Nature of markets, if a Company Moves from new york to london, it is not like you cant invest in them. In them full stock. You take that disclosure risk as you take it. Certainly from the american side there is a justification here. Certainly from hong kongs perspective, from londons perspective, this is an opportunity to get some of these firms if this goes through. Watchek, we continue to the negotiations between microsoft and tiktok. Microsoft revealing to us overnight this report that they were looking to buy all of tiktoks operations, not just those in the u. S. And peripheral operations in australia. What are the Biggest Issues for you with this transaction, whether it puts an end to these concerns . Derek the Biggest Issue for me ing theseatch talks is there is a september 15 deadline. People work means a little bit harder and better under pressure to get there. The problem, i think, is the ongoing usachina spat, the demand donald trump has had to pay some form of what one might call a finders fee to the u. S. For what is leading into this divestment. And then the reaction from china where state media has been clear they think this is a smash and grab opportunity. You have these two polarizing sides starting to dig in a little bit here. All of that is complicating any prospect of a deal. If any company in the u. S. Can get this done, it would be microsoft, which does a lot more business in china than maybe some of its competitors. There are no shortages of obstacles here, and a lot of the biggest ones for me are external to the deal itself. Haidi always great to get your perspective. Editor Derek Wallbank in singapore. You are watching bloomberg daybreak asia. Karina new research from the university of washington sees u. S. Coronavirus deaths potentially doubling the end of the year if the pace of the pandemic spread doesnt change. U. S. Infections rose slightly higher than the daily average as cases approach 19 million. After losing their jobs overseas. Australia is to add another 15 billion aussie dollars to its job keeper program, taking the total cost to more than 100 billion. The treasurer announced the increase to cushion the blow of the latest lockdown, which the government forecasts will drive unemployment into double digits and will wipe another 2. 5 from gdp in the current quarter. Global news 24 hours a day on air and on quicktake on twitter, powered by more than 2700 journalists and analysts in more than 120 countries. Im Karina Mitchell. This is bloomberg. Shery staying on the virus, the pandemic has dented demand for electric vehicles, but the worlds biggest ev battery maker shows sales seeing resilience. Lg chems ceo talked to us exclusively about how strong european demand and a contract with tesla in china could see revenue double by 2025. Some impact,we saw especially in the first half, especially in march, april timeframe. Statesmple, the united and china, those countries. We have since had demand coming from european countries. We have seen no slowdown in european demand. More production to boost in the second half of the year. We do not have a complete tally yet as far as total production is concerned, but it is either close to our production we have had, or if there is any impact, it will be relatively small. Any other things you are seeing recently making you rethink your targets for Production Capacity for the battery business . I believe the initial one was 100 gigawatt hours. This year that goes up to 120 by 2021. Are you looking to increase that , or does that still make sense to you . Pretty much we stick to our plan to continue to invest in our city. As you mentioned, we have about 100 gigawatt capacity by the end of the year. But by 2022 we should have about 220 gigawatt capacity. Ev isk the rate of relatively low. Even with the robust Market Growth of 40 for the next five, we have to continue to invest in our capacity to secure 220 gigawatt by 2022. Of close to 225 billion, so that is a lot of batteries to be made. David your capx plans . Since you mentioned 2022, do you have a figure of what you plan to spend the year after that . We will be spending about 3 billion this year. There was a slight increase from what we had in the plan. Continuehat ratio will in the years to come. David the market is taking a look at your stock. You obviously would know as well that your stock has gone up substantially. You are the top sixth Largest Company on the South Korean Exchange at some point. A lot of that had to do with speculation that the partnership with tesla and the battery business is doing quite well. Can you tell us about how this engagement is going now and how you plan to fend off competition . We should be able to secure a Production Capacity of roughly 25 gigawatts, which is the equivalent of 400,000 evs by the end of this year. I think we have a very well poised to meet the demands of various customers, including the customer that you just mentioned. David fair enough. What is your resumption on how your assumption on how quickly the battery business will grow overall, and as a company will your sales exceed that growth . We expect about 13 trillion from our battery business this year. 30 will grow to about trillion by 2025. Growth. A robust market our Better Business will at least grow at the speed of the market. Our goal is to either maintain or strengthen our market position in many years to come. We hope to grow faster than the market. Haidi that was lg chem ceo speaking exclusively to bloomberg. We will have another big guest later on the show. Minutelim joins us in 20 s time. This is bloomberg. Lets get a quick check of the latest business headlines. Uber generated more revenue from food deliveries over its transport business for the first time last quarter as it failed to offset this deep and prolonged decline in ridehailing amid the coronavirus pandemic. 2. 25ng sales fell to billion dollars. User numbers slumped through june, well below expectations of a fall of 7 . Tmobile rose by as much as 8 in extended trade after adding one million new users in the Second Quarter, taking it to number two among u. S. Carriers. Revenue of just under 18 billion was slightly ahead of expectations, however the coronavirus pandemic did take a toll with covid related costs, rising to 340 million. Verizon remains top dog while at t falls to third for subscribers. Tencent will be one to watch later as regulators in china approve the mobile version of call of duty. The game has been approved in this years list of video games. That also includes ringfit adventure from nintendo and magic awaken. Tencent has been under pressure by authorities in china over the last month as regulators sought to restrict access to mobile game playing. Chinas government wants better returns in its passive sovereign wealth massive sovereign wealth fund. A big motivator it is looking at is pay cuts. China seems to be opting for stick over caret. Over carrot. This is a way of making state owned entities supporting the chinese economic recovery fund. That is correct. These are somewhat unprecedented times in the chinese economy, like most of the world. This is a way to buy more firepower. Are pay cuts. Itshe Government Faces slowest expansion in four decades. From what we could hear, pay cuts reaching 40 on average. It could help the banks weather the current slowdown. How does this play into the broader effort to enlist lenders . The government has already put banks at the forefront of its virus response, calling Profit Growth to below 10 to provide cheap loans, cut fees for many struggling businesses. Banks are lending trillions of money into next year. Otherwise we would have see nan explosion in bad debt in china. What are the implications for local banks now pushing into china . At an these pay cuts come inopportune time for wall street and european lenders. Na open to markets in opened markets in asset management, for example. The challenge is finding enough talent to make a go of it. This could help Goldman Sachs approach workers away from the state owned banks and other financial groups. For greaterr editor china finance joining us from hong kong. Lets get a quick check of how markets are trading. We continue to see pressure for japanese stocks with the nikkei falling for a third consecutive session. This as we see the japanese yen holding at that 105 level. Three sessions of strength against the u. S. Dollar for the nikkei. Kospi gaining ground right now as we continue to see these gains for south korean stocks at the highest level since september 2018. We are getting some comments coming from secretary mnuchin in the u. S. That there are still a lot of issues and that we are close to compromising a position, this as he stands next to the white house chief of staff mark meadows. They are briefing the press on u. S. Stimulus measures. Negotiations have been ongoing on capitol hill to close the gap between the democrats, republicans and the white house. Secretary mnuchin saying a handful of issues remain where they are still far apart. We will have plenty more to come. 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. We just heard from the treasury secretary Steve Mnuchin, briefing the press on u. S. Stimulus talks. He is saying President Trump wants to get a deal done. We heard from the president saying he is willing to take unilateral action on some stimulus measures in the next few days if there is no copper mine between republicans no compromise between republicans, democrats, and the white house. Secretary mnuchin saying President Trump is not going to do a state and local bailout. Democrats want funding for those local and state governments that are under pressure because of the pandemic. White house chief of staff mark meadows saying the administration is going to state engaged. They are meeting again tomorrow. Tighter controls on chinese cap needs listed on american extent is amid concern about exchanges amid concern about potential fraud. They say the sec should strengthen audits on chinese listings, although it is not clear when that would be enforced. Lebanon is a public works minister over this weeks catastrophic explosion. He led the ministry until 2013, when a shipment of Ammonium Nitrate was seized and put in storage. Documents show authorities ignored warnings about the highly explosive material for years. More than 130 people died in the blast and thousands more were wounded. Sri lankas powerful brothers are heading for a landslide election victory, giving them the chance to change the constitution and cement their rule. Early results show they have won a majority in parliament with the Prime Minister retaining his role with his younger brother as president. Other family members are expected to be given key ministerial roles. The World Bank Says the coronavirus is likely to spark what it calls the pandemic recession in many countries. Their chief economist warns we are headed on a similar path to the 2008 crisis, but even worse. Back in june, the World Bank Says cover 19 threatens to drag 100 Million People into extreme poverty with both emerging and developing economies tricking the most ever. Shrinking the most ever. Global cases are touching 19 million. More than 700,000 deaths have been recorded. In asia, the philippines has surpassed indonesia to become the biggest outbreak. The philippines has already had one of the longest and strictest lockdowns across the region. Why cant they get control over the pandemic . It seems like the reopening of the economy happened too quickly when new cases are growing up to 1000 per day. We saw infections surge 500 in the following two months after they did ease restrictions. The government forced to reimpose the lockdown in manila and surrounding areas now that we have seen cases in the philippines have surged to nearly 120,000, a clip sing indonesia eclipsing indonesia. There has been an influx of Migrant Workers returning home after losing their jobs from this pandemic. That is when you have a problem. The Rapid Testing the country has done has delivered a big proportion of falsenegatives. We have seen infected workers go home to their families, not knowing they were actually spreading the virus. The economy suffered its deepest contraction on record in the Second Quarter. This could be a potential of further weakness, shrinking 16. 5 percent from a year ago. India recovering from one of the worlds biggest lockdowns. The rbis hands are tied as well. The central bank kept rates unchanged yesterday and instead are focused on allowing Small Businesses to restructure loans and adding more liquidity into the system. Lets return to congress. U. S. House Speaker Nancy Pelosi speaking about the u. S. Stimulus. Take a listen. We are listening to Speaker Nancy Pelosi talking about the stimulus negotiations she has had with senator Chuck Schumer, as well as treasury secretary Steve Mnuchin and white house chief of staff mark meadows. The understanding right now is that there are still significant differences between republicans and democrats. Take a listen. It seems we dont have the feed right now. Basically we have been hearing secretary mnuchin saying the administration and democrats are so far apart still far apart on top line figures. There has been a discrepancy of 2 trillion in the democrat controlled house bill and Republicancontrolled Senate bill. They are trying to work out those differences. Senator Chuck Schumer speaking right now. Lets see if we can listen. Sen. Schumer we urge our republican colleagues to do can you to continue to negotiate. We urge them to do it. And why . Because negotiation and a broad comprehensive agreement is the best way to go. Their stance was disappointing. We asked them, would you meet us in the middle . They said no, it has to be mostly in our direction. They were unwilling to meet in the middle. They admitted that. That is what makes this so disappointing, because we believe we are covering the needs of the American People. They said the president may do a few executive orders. They admitted that would leave out millions and millions of people. The sophies choice, which of your children do you take and leave a whole bunch behind . We urge them to rethink. An executive order will leave millions of people out. It will be litigated. It wont the effective. And things will get worse. Be effective. Their position is their way or the highway. I want to repeat the exact words, would you meet us in the middle . They said no, it has to mostly be their way because the president wants it that way. We urge the president , we urge the negotiators to rethink. We want to negotiate tomorrow. We want to keep going. The best and only good way to help the American People is a broad, strong bipartisan agreement. Speaker pelosi i would like to say i saw something familiar in the room. I have been in the white house when the president has slammed the table and walked out. That is what mr. Meadows did, slammed the table and walk out. You are slamming the table on our children and their schools. We need substantial help for our schools. Rything tells us authorities on the subject tell us that to have actual school, virtual school, or hybrid school costs approximately the same. Yet the president is insisting the money will go to the schools that are only open actually. What does it say to children with disabilities where we need them to be getting as much care as possible, if there is a situation where they can be taken care of . Dont you want to take care of private schools . Yes, we want to take care of children in private schools, but they dont have to take care of all the children with special needs or are disabled or are specially at risk and the rest. This whole thing about the schools as a mom, as a grandma who has children, public, private, catholic school, teachers are in the same vein. This is central to the life of america, that our children are learning, the parents are earning. This virus has prevented that from happening. They didnt take the virus seriously in the beginning. They are not taking the consequences of the virus seriously at this time. That is why it is hard americasainful of working families. You are hearing from house Speaker Nancy Pelosi as well as Chuck Schumer, the Senate Minority leader. As the stimulus talks continue, we are seeing that blame game. Mark meadows earlier saying the differences between the democrats and republicans in what they want out of this next stimulus package still far apart when it comes to topline numbers. We heard from treasury secretary mnuchin saying they would be willing to do a smaller stimulus deal. They will be going to the administration to evaluate. We heard President Trump called the room multiple times during these talks. Mark meadows saying they will not do a state or local bailout. President trump saying he would do it on his own. Asias second biggest developer reports Second Quarter profit. Hear from the ceo of capitaland in the outlook next. Southeast asias biggest developer posted its first half results. The company said the coronavirus pandemic impacted its operating and financial performance, but says it is cautiously optimistic that the worst is over. Lets bring in cfo andrew lim, who joins us from singapore. These numbers dont look good, but have you seen the bottom . When can we see a rebound . Andrew the numbers speak for themselves. The first half was challenging for us in all of our markets. If you think about how the pandemic affected our businesses throughout the globe, you can sort of see how they would flow to the numbers we reported. It depends on the second half in terms of how we will complete the year. Most of our markets are now reopened, so that is encouraging. Three of our four core markets are in relatively good shape from a pandemic perspective. I think we are cautiously if we are able to continue to sell residential products and our Office Tenants are able to come back to work, we are in position to have a better second half as opposed to the first half. You talk about your malls. Are you going to invest in more physical shopping malls given how the pandemic has fundamentally taken a lot of things online . Is this going to affect your Investment Strategy Going Forward . Andrew it is a good question. It is one we addressed last year when we talked about a strategic pivot to achieve better balance. As a group we were a little bit heavy on retail. That journey will continue. We do still believe that retail plays a role. It is just product itself has to potentially evolve. The pandemic has slightly accelerated the pace of that evolution. We are working hard to provide a digital omnichannel platform to our tenants so they can provide a similar type of service to their customers and shoppers that come to our most. To our malls. There is online and offline that can work well for the malls in the right locations. That underpins our retail strategy across singapore and other markets. Are you looking into alternative asset investments, the likes of cloud kitchens, coworking spaces that are better than traditional retail in the post pandemic world . Andrew absolutely. What the pandemic has taught us in no Uncertain Terms is everything must be relooked at. There are no sacred cows. If there are alternative uses for existing assets we can look at and you mentioned some great examples there we are open to taking a look at that. It will be different for each market. Something that works for malaysia may not necessarily work for singapore and vice versa. It is a case of being locally tuned to what the asset may be able to provide for us. Whether it is a cloud kitchen, a working environment in the mall or something similar to that effect, their ability to put digital on the physical space, these are all different ways we can improve the asset and pivot the asset class, become more resilient in a post covid environment. We have heard the singapore government is increasingly concerned about the fate of developers, that they have drawn up Emergency Assistance plans. Are you worried about the broader industry . Do you see the need for government bailouts if developers run out of money . Andrew lets hope we dont get to that stage. For us, we have to take care of ourselves. What i would like to say is operationally we have remained very resilient. We generated 300 million in operating cash flow despite the challenging half we have just been through. That tells us we have got a good recurring business that generates steady income and allows us to remain cash flow positive. Second aspect is having a strong Balance Sheet that allows us to be comfortable that we have the fiscal and Financial Resources to navigate through the crisis as well as to have the dry powder to take a vintage of any cyclical opportunities advantage of any cyclical opportunities. I hope we dont get to the stage where we have to ask for help. The key is staying selfreliant and resilient through this crisis. Thus far we have been in good shape to do so. What about tenants . Retailers are suffering. Have you had to put on measures to ease their pain, rent reductions and so forth . Andrew indeed we have. We realize we exist in an ecosystem and need each other to function well and prosper. Hand in hand with very timely and beneficial government support, we have been able to collaboratively work with our tenants to provide relief when it is needed. Mandated relief that has been set up by the regulators and authorities, we are working with tenants on a casebycase as needed basis. If you are a tenant and physically unable to open because your mall is closed, that is incumbent on a responsible landlord to help. Coming out of the first half and 90 plus percent of our tenants are able to open across our retail platform, and the same is true in our office spaces, logistics and so forth. The vast majority of our tenants are able to open and function. Get them on an omnichannel platform so they can service their clients according to the desired channel. If you are able to do that, you can proceed down to a much more casebycase basis, rendering assistance where it is needed. When it comes to retail rent in singapore, how much pressure are you expecting for the rest of the year . Andrew it is a good question. Retailr, our singapore reversions have been very slightly positive. Theave been able to renew vast majority of our leases to date. That is encouraging and again i think is a byproduct of the collaborative approach we have taken with the government as well as our tenants. They realize this is an ecosystem that is sustainable as long as we Work Together and figure a way out of the pandemic. We are cautiously optimistic that, in terms of actual rents, they have a good resilience to them. The structuring of the rental contract may change somewhat Going Forward. Where we participate more in a risk sharing model as opposed to relying on a base set. That is a good example of how the rental model structure may have to evolve in the post covid he varmint covid environment, working collaboratively with our tenants. How are you seeing the recovery take place in china . Given we are seeing more bullish assessments of the recovery there, would you be looking at more investments across borders rather than an singapore . In singapore . Andrew china in pandemic terms is first in, first out for us. President ial products selling really well. Residential products selling really well. To 90 back to precovid in terms of sales and so forth. Very encouraging response from china. It is our largest market in terms of contribution. It gives us cautious optimism that a second half will allow us to get back to rebuild on that recurring income base, then recycle capital and be able to make the right types of ofestments, recycling out assets, as well as looking to take positions in new Asset Classes within china. Theye encouraged by how emerged from the crisis. We hope that continues. Really appreciate your time as always. Capitaland cfo andrew lim. Lg chem shares extending gains for a seventh session, rising to a fresh alltime high on the back of its earnings. We are watching korean air jumping as much as 16 on its earnings day. We have broadly seen korean travel stocks climbing after the u. S. Listed that Coronavirus Health travel warning across certain countries. Lifted that Coronavirus Health travel warning across certain countries. A rebound one it comes to aviation stock. Nintendo shares jumped the most since march after delivery a jump in profit, despite leaving the outlook unchanged. You could call it the animal crossing rally. Their results beat the highest estimates. Rounding out the gain makers, ahead ofmco jumping their results. Toyota posting a surprise quarterly profit. Goodsnese baby manufacturer up almost 9 . One Company Following the most since march after missing estimates. Another decliner slipping to a 52week low after its for your loss forecast was four year l oss forecast was wider than expected. Forecasting its biggest loss in two decades with operating income seen dropping to zero. This is bloomberg. A quick check of the latest business headlines. Reports from the u. S. Say microsoft is widenin its pursuitg of widening its pursuit of tiktok. Tiktok doesnt operate in china. Any global deal would not extend to its global sister. Facebook jumped on optimism about its tiktok challenge. Isi saying the real project will be a specific catalyst for growth. Reels is intended to be a rival to tiktok. Reel is intended to mimic tiktok s video sharing features and offer a snapchat like story platform. A british carrier signed erickson to provide 5g and 4g equipment for its radio networks. It had previously been working with huawei, but with Boris Johnsons government announcing it was banning the chinese provider from its network, three u. K. Will replace huawei to commit with components from erickson. Coming up, we look at u. S. China tensions with bonnie glas er. Plus an exclusive interview. Later today we will be joined by the philippines finance secretary. Those conversations ahead. 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. Tom it is 9 00 a. M. In beijing and shanghai. Welcome to Bloomberg Markets china open. Im Tom Mackenzie. David we are counting down to the open on your last trading session of the week on the chinese mainland here in hong kong. Your top story of the day tensions between the u. S. And china ratcheting up further amid calls for tighter controls on mainland Companies Listed in new