We are looking ahead to the fed minutes out on wednesday. Lets change the board and look at the currencies and we will check in on some of the commodities. The u. S. Dollar index currently flat. You have the euro gaining just four basis points. A stronger euro over eight straight weeks. That is beneficial for emergingmarket currencies. The yen, 76. Rsus some gains for the aussie versus the safe haven yen. Gold had its first weekly drop since early june. Gold firmly in focus. Down 3 10 of 1 . 42 for wti. Over in the u. S. , 17 basis points on the 10 year. Lets get to the first word news. Good morning south korea is warning of a new mass Coronavirus Infection after reporting its highest number of cases since early march. The latest infections are being linked to a church in seoul. Tokyo confirmed new cases. Young adults in their 20s the largest group, almost 18,000 people are infected in the capital. New data show the japanese economy continuing to stumble amid falling Global Demand and the spread of the pandemic. 27 alized gdp growth fell and the Second Quarter, more than expected. Private consumption slipped by more than 8 . One relatively bright spot is business expenditure, which was down again but by less than projected. Antigovernment protest rented into the night in bangkok with a large number suggesting anger may run wider than the College Campuses. Demonstrators defied police warnings. Witnesses say it was one of the largest protests in years. Organizers are demanding new elections, a new constitution, and in and to intimidation for government critics. But a mere potent is offering support Vladimir Putin is offering support to belarus. Minsk has been hit by protests. Disputed by the opposition. The capital has seen some of the biggest protests in belarus since it split from the soviet union. Global news, 24 hours a day, on air and on quicktake by bloomberg, powered by more than 2700 journalists and analysts in more than 120 countries. I am karina mitchell. This is bloomberg. U. S. China and the postponed indefinitely trade talks that were due to happen over this past weekend. No official reason has been given. Stephen engle is looking into this and joins us from hong kong. Is it down too bad timing with all of the other tensions going on between beijing and washington . That is very possible. We had the coronavirus outbreak over the last eight months. Taiwan issues are bubbling up again. Hong kong has been a Sticking Point in u. S. China relations. That the surprising talks that were due to be held on saturday actually never made it to any official public calendar, either in washington, d. C. , or beijing. These talks were due to review the phase one of the trade deal at the sixmonth mark, they did not materialize. There is no date set for when that might happen again. Trumps top Economic Advisor did reiterate that the trade deal is going well. We will have to see because donald trump basically said their view on china relations had changed course over the course of 2020. One of the latest Sticking Points is over tiktok and donald trump did order a new executive order on tiktok, the music video app. The u. S. Them to sell assets, citing National Security grounds. Steve mnuchin cited they conducted an exhaustive review of the case and unanimously recommended this action to protect u. S. Users from exploitation of their personal data and donald trump on saturday was asked whether this type of action on Chinese Tech Companies could be extended to other chinese techs. Some have speculated alibaba. Donald trump said they were looking into other things. He did not mention alibaba by name. Expecting the strategic rivalry between the two nations over tech, is that going to be the straw that breaks the camels neck . That is what is going to lead to a breakdown of tensions. It very well could be because we know the chinese side tried to get the issues of we chant and tiktok onto the agenda for those talks that were going to be held on saturday between held on saturday. Whether that was the Sticking Point that made these talks postponed could be because larry kudlow downplayed the trade was a big issue. Trade, he said, was one area where the United States and china were cooperating, even though the chinese have not come through at all they have not come through on the extent of the pledges they made for agricultural purchases. But is likely due to the coronavirus outbreak. Due is likely do the to the coronavirus outbreak. Yvonne we have seen the tech rivalry. What about the military side of things . We saw the news with the u. S. And taiwan, a military deal over the weekend. On friday, there was a formalization of the deal for the pentagon to sell taiwan 66 of the latest generation f16 fighting falcon jets to the tune of about 8 billion. That was a deal that was announced back in august of 2019. Back then, beijing did not shy away from its criticism. The ministry of Foreign Affairs putting out a statement saying the u. S. Arms sale to taiwan severely violates the one china principle. The u. S. Will have to bear all the consequences. The foreign minister also warned the u. S. Not to send the wrong signal to separatist forces in taiwan. Dont repeat mistakes and dont play with fire on taiwan related issues. They are not mincing words. You will have to see how they respond monday morning. Yvonne Stephen Engle with the latest on what was a busy weekend when it comes to President Trump in the latest when it comes to tech. We will see how the past years geopolitical risks are creating some longterm winners and losers. We will have everbright Wealth Management coming up next. Tom it is no surprise that dealmaking in china has taken a hit. We will get the regions m a outlook from bain co. This is bloomberg. Yvonne taking a look at asian equities. Slightly higher, putting much flat on the regional benchmark. U. S. And china postponing talks on their phase one trade deal, a lot of issues with that. No timeline for a new meeting just yet. President trump ratcheting up friction on the tech front giving tiktok owner 90 days to sell u. S. Operations. Another worry for investors, the u. S. Stimulus package. Lets bring in a strategist from everbright Wealth Management. Delayingd off with the of these trade talks between the u. S. And china indefinitely. How do you see this impacting risk assets . Has this largely been priced in . Kenny . Forny i think trading hang seng index this week. Do you steer toward momentum or are you leaning more toward procyclical these days . Moved money to old ecommerce stocks. It is a tough course to pick the correct sectors. Does that rotation, is it sustained . Do you think this is a sustained rotation or can this be flipped back if we get a flareup in geopolitical tensions or a flareup in the virus . Depends on the pandemic. The sector rotation is for shortterm. I know you are a fan of alibaba. They are doing well on the back of that in todays trade. What do you make of the change in membership . How consequential . What is your outlook for alibaba . Kenny i like alibaba. Earnings are promising. Performances relatively high. Do remember some sanctions maybe applied by the u. S. To alibaba. In for the shortterm case we see a mild correction, a longtime time holding on alibaba. Your picks mentioned are some of the financials, brokerages, for example. It is one of the most popular trades out there. The 10 most valuable security firms out there are in china right now. A lot of this has been fueled by the potential merger. Has this rally been rational in your eyes . Rationale is not based on mma issues. China stocks will be the beneficiary of a strong market. Largely operating data, we can expect their earnings. Very strong in asias market. Investore aggressive what about hong kong in particular . You have been talking about where your clients sit, how they view this National Security legislation. If you want exposure to china, its hard to ditch hong kong. What are you advising your clients now . Diversify need to your portfolio. Election and. S. Social unrest. I strongly recommend to have a wellbalanced portfolio. We still have a way to go for the gold prices. You need to have exposure on bonds. Prefer chinese property, of course you should have exposure on Equity Stocks because it can bring you potential capital gains. You need to diversify across asset classes. Across asset classes. Specific stocks, you need to focus on individual stocks. Change in youru portfolio if we do not get additional stimulus out of washington . Case, in terms of hong kong equities, the valuations are reasonable. Given our liquidity situation in think the direct impact on hong kong stocks will be relatively limited. We believe this type of strategy in the second half of this year. Tom we appreciate your time. You are a fan of goals, alibaba. A fan of gold, a fan of alibaba. Japans economy takes a record hit, plunging deeper into recession. Clouding prospects of any recovery. We will get you the latest. This is bloomberg. Into a japans plunged deeper recession and the Second Quarter as the pandemic did hit the economy. Consumers, in particular, businesses at home and the nations trading partners overseas. Lets get to Kathleen Hays with more on this. Give us the numbers. What parts of the economy were hit the hardest . Kathleen there was damage across the board. There were a couple of things that were a little less bad. The question is, what happens next . With the virus still not under control and the 27. 8 annualized rate, so what. More than once you are down more than 25 in a single quarter, what does what difference does a percentage point make . First there was a trade war, then a sales tax hike, and in the pandemic hit. You have to go back to the great recession. You will see more toward the lefthand side of the screen. You see a big downward red bar. Not quite as big as what we just got, but still pretty dramatic. The Second Quarter of 2020, nearly 28 down. This is the worst number since the japanese government started keeping record on gdp since 1955. In terms of what is inside of it, japan had emergency lockdowns. And people are locked up, they dont shop. Consumer spending was down 8. 2 . Businesses spent more, that number was up 1. 5 . This is not just the japan and the pandemic and how it affects the domestic economy. It is all of japans trading partners, right . China, the u. S. , europe. The exports were contracting three full percentage points. There have been signs of recovery. Retail sales, industrial production. With the week exports, virus case is still rising, we do not have the olympics. That would have been a lot of money going to the economy. Tourists are not there spending money. Japan may have seen the worst. Whatever recovery lies ahead, it will be slow. Tom kathleen, we have protests in thailand. What is the economic picture in that country looking like . Kathleen. Pretty grim. There gdp report is out soon, plunging 13 . That would be the very worst on record. You have to go back to the Asian Financial crisis, far left side of your seen. Seven quarters of negative growth. Second quarter of 1998, the gdp of thailand was down 12. 5 . First quarter of this year was not too bad. They seem to be skating past the virus. Now we get this 13 double digit number. What do we look for ahead . Second quarter is supposed to be the worst quarter in terms of the impact of the pandemic. Think about tourism. There is no vaccine yet. Borders. Ot have open this is something that is hard on the entire economy. And there is a stronger bought and it is hurting bot and it is hurting exports. Exports were down 17. 2 yearoveryear in the Second Quarter. Thailand is another one where seen theprobably have peak of the negative impact of the coronavirus. There are too many things going on. It will be interesting to see when that gdp number comes out, what looks better, what looks worse. The outlook is still pretty bad. Tom secondquarter gdp out in the next few hours. Kathleen hays. Here is the latest business flash reports from the u. S. Microsoft remains keen on buying tiktoks american operations and may make a bid for its british arm. Microsoft may expand its interest beyond the u. S. , canada, australia, and new zealand. It is not clear if tiktok would sell the u. K. Unit and the British Government has no current plans to block the app. Japans government tried and failed to push a merger between nissan and honda. The idea was first promoted toward the end of 2019. A merger of two of japans leading Car Companies was rejected before plan could be put through directors. Is bloomberg. Here in hong kong. In mind for a trade deal review after postponing plans for talks at the weekend. A deal remains on course, dismissing to a tensions. President trump threatened to raise tensions saying he is looking at other companies in the u. S. Delayaland Prime Minister the upcoming election saying it is vital that the be safe amid a resurgence of Coronavirus Infections. The Prime Minister says it is important that the election be. Eld in a well organized manner the rise in cases makes it difficult. Toi have decided on balance move the election by farley. At the end of last week, i was advised that this is achievable and presents no greater risk than if we had maintained the status quo. Will spend money to boost its economy. Prime minister modi used his to say that india can be selfreliant as a Global Supply chain hub. They have more than 2. 5 million confirmed infections. Singapore exports rose 6 in july from a year earlier, beating expectations for the second month in a row. The electronic sector climbed 3 from months ago from a low base. Take a look at the data showing that external demand might be picking up as well. Signaling thatis more stimulus could be on the way soon. Broadly positive in asia in terms of the market. Asiapacific up. 1 . The mainland, some additional gains on the back of the quiddity that has been pumped into the system. The rate must kept on hold. Mediumterm Lending Facility pumped into the system. It is essentially the benchmark and it will be set on thursday of this week. We are looking ahead to that as well. Japan, Second Quarter on and analyzed basis. The nikkei is down. 1 . Focus not just on the fed minutes, but on this region as well. Atcan move and on to look them of the regional index is. The tie ating for gdp numbers. We will bring you that with the contraction. We are keeping an ion that data. In terms of the philippines, you are seeing losses. Stocks in the philippines have decoupled from asia. The exports facing estimates. The gdp number for thailand is out, slightly better than forecast. In context, contraction still of 12. 2 . Survey. Versus a that is what we are looking at. We can move it on some of the individual stock as well today, in terms of the movers. We had a change in membership. Those protests in bangkok as well. Tensions politically in thailand. Contraction 12 still one of the worst we have seen. Taking a look at the terminal now. A little better than expected, but still the ugly. You mentioned the political scene. That we saw up to the 10 thousands. Police calling for the end of the military led government and a curb on the monarchys powers. Demand more about the for protesters. Protesters of the are demanding on three main changes. A call to the end of military led government, which includes theolving parliament and end of threat on civil liberty and the drafting of a new kind new constitution for the government. Paul who is leading the protest . It is the generation z. People group called free that includes several student lesbian ands, gay, transgender youth. It was the latest protest in a series that has been occurring in bangkok. That it was the largest in the thai capital so far. Tell us a little bit more. How is this weekend any different . And demand that the protesters are asking for protestthat makes this different than the many protests revolving around thailand that they have seen in the past. The key difference is that some of the protesters are actually ling on the kings powers a curb on the kings powers, especially concerning politics. This is quite a different phenomenon because thailand has very strict laws, where criticism of the monarchy could land you in jail for over 15 years or worse. Paul a breaking News Reporter with the latest on generation z led protests. ,ared kushner says ive been not israel should be the unifying factor for eighth march of the middle east. He spoke about how a deal might make an impact. Will tase is change the paradigm. Facte were resigned to the that nothing would change. Nobody was able to find solutions but the president brought fresh resolution and restring and everything. By taking a serious, no nonsense approach, he was able to make a breakthrough. Have you spoken with them since this has been announced . Statesthink other arab could follow suit . One of the great things that we did yesterday was to keep it a secret. Surprised with a deal of this historic magnitude was able to stay quiet. We have had discussions for very and people are positive. Crownre saying that the prince, that was a huge step forward. He will make the region more secure and prosperous. Purchasehey agreed to new military weapons . Can you give us anything about the purchases that they will make . We have an ongoing relationship for a long time. They are one of our closest military partners. Obviously, there is the common you have a man, who has been threatening america and funding a lot of the proxy fighters causing instability through the region. We are always in discussions with allies about how to advance with progress to make sure the region can be safe. One of the items outlined is the two state solution. He says he will not have annexation for the time being. Be inucial will this deal the longer term . Is a tough leader and he understands what is most important to the israeli people. Believes that it is much more important to strengthen the relationship with United Arab Emirate and other countries, to try to figure out how to create a cross pollination. He gives his word on something. He had noted that there was optimism and hope in terms of how they were working together on covid19. Not all the way, but some areas and the medical situation has forced them to look at regarding water and technology. The palestinians really denounced this deal. You have to put additional pressure on palestine to get them to broker that deal. Want to pressure the palestinian people. People have seen that a lot of the approaches do not work. It want to live in peace. That is the natural evolution. Has had problem after problem. President Trump Realizes realities on the ground. That was the senior white house advisor speaking to kevin. Hit from tensions with the u. S. We will discuss the outlook, next. This is bloomberg. Paul the asiapacific private equity market held stable in the first half, but the exit market saw a decline for a second year and fundraising is set to fall for the third consecutive year. The leading consulting partner. Thank you for joining us. When i spoke to bloomberg, we were looking at a pretty down First Quarter. In terms of deal value, the first half actually increased at about 71 million. Activities were up despite the environment. Down onw does it break a regional basis . China and india increased share of the market. Those two countries accounted for 73 of the overall market. They are usually about 65 . There is a significant increase in activities. Yvonne break it down for us for india in particular. Investments we have seen is there anything more to this surge . We saw a huge surge in technology. Long team ofe are industry and companies that are seeing a favorable condition despite the prices were looking at longerterm positive drivers, the covid crisis situation. It is not just communication across asia. You are looking at internet , so there is a lot of statuest technology that are active in india and you see a lot of health care, telemedicine and so forth. These drove a lot of that activity. What about some of the more risk heavy sectors . Is there any hint of demand or activity that is resuming right now . What would those valuations look like . To be honest, if you look at the retail for businesses like china, it is back to 90 . Activities are coming up. In terms of valuations or pricing, i think a lot of funding are noticing that there has not been a significant decline. If you look at the Public Market , it is very lift recovery. Backctivities really came once the Strict Lockdown went away. A lot of those are pushing people and evaluations have not come down. Paul on the fundraising front, thehad this stimulus led by u. S. And other countries around the world. At what point does that feed a to invest or demand . There is a desperate search for yield. Does that improve the environment around fundraising . Quest it has outperformed it has outperformed. If you look at the fundraising overall globally, we are pretty much on track versus last year. And we dot is lower notice the polarization of larger groups. It is able to do quite a bit of fundraising. It becomes quite difficult to write a check when your only meeting is to resume. Why do exits remain challenging . We are seeing a lot of dual listings. Is that likely to improve . I think we do expect it to turn out. Especially for health care sectors. Thedly speaking, a lot of investors are waiting for the right time for things in the thatt, to be able to show is a going to be important as well. Breaking down some themes in the sector for us. Ofing up, the resurrection australia is facing mounting pressure to salvage some of their debt. The latest as Court Proceedings get underway in sydney. This is bloomberg. Yvonne mounting legal opposition as creditors rally behind their own best you plan this running. Hearingl court started to have a vote on any offer the airline. Lets go to details. Impact whatgoing to we have been talking about for so long now . Delay the definitely whole deal because of the legal challenge. It means basically the revival will take a little longer than what people expected. That is not good news because every day cash is burning. They are not flying as russias they used to. Getting a plan is vital for airlines to get back on its feet. Thisat is the chances of deal being derailed . We will have to see what the court decides, but in the case where they are firm that what they offered is the final offer and it is what they have decided , so imf assuming the court will hear this and make a decision that is best for the airline and employees. Our reporter with what six in sydney, joining us from singapore. Lets do a quick check on the business headlines. The developer has reported a profit of four than to 7 billion. Offering discounts to potential buyers. Downare expected to be from a year ago while net profit is set to be more than 45 . They blamed losses in energy assessment. Investor is the fifth largest shareholder after adding 4 state in the money ager worth 3. 5 million 3. 5 billion. Worked companies have together in the past with talks underway for a joint venture in china. Raised 2nk has billion, joining a number of indian lenders boosting numbers as the pandemic threatened to push up bad loans. Between be offering august 10 and the 14th. The Sovereign Wealth Fund picked up 11 of the offer at Morgan Stanley and Morgan Stanley bought 7 . Fidelity among the gayest participants. The company had been in talks to raise about 1 billion at the price of 270 a share, which would have values these. The latest funding would be spacexs largest so far. Paul lets check in on some of the big of the day. One company that was not added was surprising. It was down pretty heavily in the early session. The developer coming out with a miserable set of results. That is what the markets are looking like in china. 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. It is almost 11 00 a. M. In singapore. Welcome to Bloomberg Markets asia. Yvonne here are the top stories. The trade review is postponed and there is no timeline for a new date. Thatdent trump is hinting he is looking at other companies also operate u. S. Juliette to keep chinas fragile recovery on track. Forne the potential ban china in the u. S. It would be dramatic. Juliette looking at markets in asia, it was a jumpy start. Just up slight. The csi 300 its july high. You have some movement coming through in hong kong. The hang seng is rising by 1 and the nikkei is weaker as we saw that contraction. A little bit of a tick up in stock momentum. Rising 6 in july. We want to focus on currencies. We have been looking at the kiwi and pushed out the election. It has been fluctuating slightly higher. This on this negative rate talk which is pushing the aussie higher against the kiwi. Gold is declining again. Downwardight momentum in terms of the yield. Lets get the first word news with karina mitchell. More the kutty in this is him to sit were the fragile recovery. Over 100 billion by the mediumterm Lending Facility, more than offsetting coming due today. They kept the rate unchanged. Is zealand Prime Minister delaying the upcoming general election thank it is vital amid a resurgent in coronavirus ofection with a new date october 17. The Prime Minister said it is important that it can be held in a well organized manner. Decided to move the election by fort lee. , i wouldd of last week advise that this is achievable provides no greater risk than if we had maintain the status quo. Run wider than the College Campus where they began. There are no reliable figures but witnesses say it was one of the largest protests in years. End. Are demanding an Vladimir Putin is offering thential support after embattled leader appealed for help. Claimed a victory that was widely disputed by the opposition. They have seen some of the biggest protests in belarus since it split from the soviet union. This is bloomberg. Global news, 24 hours a day, on air and on quicktake by bloomberg, powered by more than 2700 journalists and analysts in over 120 countries. This is bloomberg. Postponing trade talks that where do to happen this past weekend. Lets get to Stephen Engle. He is looking to all the developments that we saw over the weekend. What happened . L sophie we are seeing pledge purchases probably not hitting the levels that they promised largely due to the global pandemic. Kudlow, the top Economic Advisor said that trade is an issue that is going fairly well. Whether it is blame over coronavirus or taiwan, we will talk about that in a second. There is hong kong and the Technology Cold war. That is another page in the story because donald trump has done in another executive order in an in addition. Timeline for90 day the possible sale of u. S. Assets buyer,oc, to find a u. S. Including the deadline for august 6 to prohibit americans from doing business with tictoc. Here is a lot of tension and was asked again on saturday could behis action extended to other chinese companies. He said we are looking at other things. Alibaba is in the crosshairs. He did not name alibaba. This is about a boost to defense spending. Tell us more. This was a deal announced in august last year. That the oneing china principle, this is in violation of the principal by selling arms to taiwan. Falcone of fighting fighter jets is the first deal since 1992. 16s we will probably be hearing from beijing at some point today after the formalization was announced friday. The foreign minister in june of last year warned the u. S. Not to those forces to taiwan. Yet another notch in the belt of discord between china and u. S. Thank you as always. , we discuss stalled trade talks between u. S. And china. This is bloomberg. Juliette beginning the week somewhat mixed. Cash injections by the chinese central bank. Lets go to investment solution. Great to have you with us. Tuesday back to those july levels. , iterms of the overall wanted to ask you the question of the day. How can this affect assets . Relations is something that is top of mind for the market. Meeting anticipating a over the weekend, but the market at the moment. Think that there are a lot of other things going on, including school stimulus in the u. S. And the continued new infections of covid19. Unless we get significant deterioration in the relationship, we think it will be passed in the market. Juliette lets focus on china and i of recovery. We had this injection in terms of list today. What are you expecting for policy support . Has been out in front of this crisis which allows policymakers to put a little bit of a pause over the last couple of months on policy. They do not really need to do anything more said if it can on the Monetary Policy side, but they also recognize that the risk is not completely out of the way. We think that policy, monetary and fiscal will stay very supported. Continue toobably signal dovishness. It is not going to be as significant as it was. Yvonne he had getting some jitters in the market. Is there any indication that the selloff is on treasuries and gold and we can Gain Momentum . That is a really good question. Perspective, they were not pricing in any of the growth recovery. We thought it was warranted, given that it has improved so take lacethat did not until last week. The bond market was looking for a few different things. Starting. Ly it looks like the u. S. Government has been able to manage the secondly. It is pretty supportive towards the market. Vaccine. D is potential youre not talking about it as much. That is something that should not be ignored. We actually look at the bond market which is something more coherent than what we have seen. We still think that there is more space for them to go higher. Do you think the fed will have to do some thing . It is dealing as much as it can. They have made it clear that they will probably not raise rates for the next one of years. We will probably get an indication of what the new Monetary Policy will look like in september. Changes. Announce some the baseline is that they become slightly more dovish in their approach. I think the fed is doing everything that it can. We need that physical package to come through for markets to continue to rally. We need people to start spending, which you saw a little bit in the data. Retail sales are pretty much back to precovid levels. The markets in change and you see more men towards value . So far, it has certainly been growth outpacing. Absolutely. That is the question of the decade, i think. A little bit of a setback over the last 15 to 20 days. Is to seeeally need consumers have a sustained sense of spending. Unemployment is still high in the u. S. , so a lot of the spending is being supported by fiscal support and benefits. We have only seen half the come back through the executive order. If we want to see a sustained increase, we need to see the Congress Passed this package. That corporate businesses are Strong Enough at the moment, at least for the remainder of this year. Keep Consumer Spending up. Juliette what are you looking at in terms of asia . You have this divergence for what is happening in indonesia. What are you looking for in terms of sustained recovery costs asia . Asia has been quite interesting. There has been a north and south asia divide. They have benefited and generally speaking been able to bring new infections under control. It,heast asia, a lot of from our spirit our perspective is the competition of the index. They are very financial focused. When you do see Interest Rate pushesenerally, that pressure. To succeed to see a sustained rally, we do need to see a couple of things. I know i keep repeating the same point, but it is important that fiscal policy stays. Project a and they have done everything. You need stable currency. Ways and continued fiscal support. About you mentioned fiscal stimulus. Why do we need this to warrant rotation . It seems like you are leaning towards the procyclicals. If we see a reversal and a meaningful one, is it enough to offset the text selloff that we might see in light of this . They do not really hold that much index weight. I think you can play it in many different ways. Whether it is industrials and materials is one way that we are positive on. Ven the tech sector action andust price evaluation. It is actually supported by earnings. What you are looking for in terms of risk is going to be whether the u. S. And china needs to be earlier , if you see it in terms of Tech Knowledge he driven talks, that is very different from going back to last year, which was much more economic. Risk. S definitely a if you see it passed by the end of september, that would be a sign that is close. Yvonne we are going to leave it there. Thank you for joining us from singapore. Plenty more to come. This is delivering. Bloomberg. Theette warning that relentless alley could end if joe biden wins the white house. They will be tougher on wall street because of the tax plan. So, electing biden and harris, as much as it will be great for the country, it will not be great for the market. Aside from taxation, the Vice President ial pick does not do much in the way of financial policy. People will be watching for that treasury take. Are your expectations of what they would to regulate industry in a different way . The biden camp and everybody i have spoke to our centrist and more conservative than the trump camp. They know that you cannot keep spending forever without having some kind of offset. I think you will see time tax hikes on the wealthy. The country has gotten as wide as it has been, ever. Average american is not doing as well. Most people in america agree with that. It is a question of how it is done. Problem many the tax regimes. That will be the big test. Are markets prepared for that . I do not think so. We are in a liquidity driven frenzy. Up because they announced a stock split. It makes a lot of sense in this environment because everything in 2017,g like bitcoin into a speculative frenzy. Usually, it is fed action. It could be action on raising taxes. Company, an amazing but it is trading on a gigantic multiple a gigantic earnings base. I think the are in bubble territory. The election right stop it for a wild. Some volatile stocks. Is it an appropriate value in these times the echo i think it is. I think bitcoin crossed the rubicon for something that people maybe think is. They are looking into how to get involved. It is a downhill race. The first four years of my existence, i was pushing the ball up hill. I like bitcoin that are than bitcoin has been hard to buy. Bitcoin has a long way to go to catch gold. Think gold should be ending up by the end of the year . Those are hard predictions. Out the highs in the markets, it is hard to figure out where they end. The fed will go even more dovish in the next meeting. That could be what accelerate gold and bitcoin. Was mike. At we have plenty more to come. We will take a look at derailed trade talks. This is bloomberg. A. M. E it is 11 29 continuing to stumble amid the spreading coronavirus pandemic. Growth fell 27. 8 in the Second Quarter, more than expected. Private consumption slipped more than 8 . One brighter spot is his expenditure, less than projected. The economy contracted the most, deepening its recession as coronavirus crippled the tourism sector. Gdp fell over 12 , slightly better than the estimate. A full year decline of 7. 5 , ofing said a contraction five to 6 . China seems to be proving the adage of first in, first out. Pushing out of a First Quarter slump. The only major nation to expand this year. July data on industrial output shows asked engine near 5 . Exports rate rose, beating estimates for the second month and around. Critical Electronics Sector climbed 3 from 12 months ago from a low base. Demand may be starting to pick up. More stimulus could be on the way soon. To boost itsend economy. Prime minister modi used his speech to salute the governments performance and to say that india can be selfreliant. India has 12. 5 million infections. Juliette we saw merger shares falling on friday. We are getting some lines from the company that they are denying report. It says that the land rover business remains strong and a key pillar. When we look at the overall broader market, it has seen an injection that has lifted chinese equities. That point level, we are seeing more weakness as it resumes trade, following a record contraction. We knew that it would be bad. It is annualized in the Second Quarter. In singapore, you are talking about words topping estimate for a second month. It is the kiwi that you want to be watching today. Kiwiussie against the touching below that one spot. Quickly, lets check in on shares slumping the most in five months. Secondlargest listed developers saying that the pandemic and discounting apartment sales slashed its earnings 46 . Take a look at our top story. Ahead of ansigns election. Tiktok to sell assets after a review of security dangers and threatening the chat, which is essential to many operations. It would be a huge threat to American Business and the effect would be dramatic. Thank you for joining us. I have to start with what happened over the weekend with trade talks breaking down. Do you think the trade deal can stick, leading up to the election . We are hopeful that trade talks will continue and we are eager to see the discussion move forward. The lead up was talking about breach at. For thertant thing is two sides to talk constructively and figure out what will be the future structure of the American Economy and the chinese economy. Together. Ply work it has been a productive relationship and we would like to see that continue, if possible. Tell us more about how members are reacting to this ban. How devastating will it be for businesses operating outside of the u. S. And china . It has our full attention, for sure. The executive order is extremely vague. One meeting of it is that it would be a defensive measure to protect american consumers, in terms of protecting their data, and it would not affect American Companies operating overseas. That would be one meeting and it would be possible, but we are trying to gauge with the administration to learn more about what the intentions are. If it affects the operations of companies in china, it would be devastating. Consumer facing businesses and retail businesses, which are doing really, quite well. We are accepting payment from Chinese Consumers. Ofwould be a goal devastating proportions, if this affects us over here. We are trying to learn more about how this will be implemented and how it could affect us. It might not affect us at all. Juliette i wanted to ask in terms of dialogue you are having, you are saying you are trying to interact with them. Where are you with the talks . It is early days in terms of the executive order. They laid out the timeline of 25 days. Administrationhe is basically having more internal discussions, but these are groups that we are very familiar with. We bring a delegation to washington to have dialogues, so we have relationships in place with the department of commerce and National Security council. Here are reaching out to our friends to see what we can learn, but we do not want to wait until september 19 to figure out what will happen september 20. We are very eager to find out what the inking is and what are the possibilities . It would be a major impact, fisher. Potentially devastating. What are you hearing from your members in shanghai, given the Political Landscape in china as well. Moreemo moment is there momentum coming through . Momentum as your lead up was talking about, it is first in and first out. It shows signs of strength in the consumer sector. A lot of those businesses are doing very well, so we are looking at a pretty decent year coming out of the crisis. What we do not need is ban orinty around the any kinds of bumps in the road. Back to your question about the trade talks. We did see news about the anticipated talks not happening. It was a fairly vague timeframe. That talks will continue, but it has been delayed. Expect that talks will go forward. We have a close relationship with him. Others will have a major influence on how those talks go. We are counting down to the november election and there are questions about whether joe bidens trade policy will be different than what we are seeing from the trump administration. Can he walked back from some of these aggressive without looking weak . We certainly hope so. That is part of our discussion. We do not want to see anything that puts damage on this relationship. It has been productive live. It is at an impasse. Something needs to change. We think that the people me dialogue with in china agree with that. They understand something structural will have to change, maybe on both sides. As far as democrats and republicans, whether a biting administration would be different than a trump administration, certain things will stay the same. Toward china and some requirements for a shift, structurally. That will be the same. Probably stay the same, but the how will probably be much different. Biden has ant history of working multilateral frameworks. Also, the way that he goes into these dialogues, i think the two are very different in how they approach trade talks and how they would approach china. They would both be tough, going forward. Yvonne thank you for joining us with the latest. Coming up, we will talk about geopolitics. Looking at supply chains. This is bloomberg. Juliette india is trying to lure businesses. It seems to be working with apple. T from samsung and our economy and policy reporter joins us from mumbai. How feasible are the plans and can india become part of the supply chain . Interest is very much there. Apple suppliers have shown interest, but we know that indias legendary plan for investment getting the project on the ground can take months to years. It is probably missing a trade. Fiscal incentives are being planned. They are trying to boost the mystic industry domestic industry. It is not a favorite with. Ertain countries they have all been favored by companies that are looking to diverse i their supply chain. Diversify their supply chain. Plans rent are these yvonne how different are there plans now . It was announced with much more fanfare. The intention was to push the stuck for being decades. , it is a much stagnant. A greater focus on a limited and aim ofectors trying to improve the measures. Making it very attractive. Is a link tot production. They have not gained much. The challenge is to overcome speed at which these companies can acquire land in india. Joining us there in mumbai. Losses are looking like they are is beingme upside driven by the bank. Up some. 8 . Which dropped. Plan reporting that they would have had to look for a strategic part partner. We afterme further that drop. Unchanged. Also looking at 4 10 of 1 . Telecomocks today, the case. That is another key focus. Shares ahead. Com of its earning report. We will have that next. This is bloomberg. Juliette expecting 50 [no audio] we think the compilation has gone to the second stage. It is happening among leading players. It is by technology and supply chain. We invest huge on the data tree. It has everything. We want our central to be butble, carrying thousands, with good economics. Is the supplyng chain. And directtion purchase of the goods. The supply chain plus technology and retail differentiates us from others. That is what we think. It is a core competitive age. How did the Coronavirus Impact your business . It impacted the behavior of the Online Shopping customers. We used to employ coupon a degenerate traffic, but now we do not have to do that. We doubt subsidy. That is the biggest change of the behavior. Now we have seen more people born after the 1960s and 1970s have chosen Online Shopping as one of the major solution. Hascore customer landscape been shifting to the older generation, the biggest population around 30 to 50 years old. Very disciplined lifestyle. Moreenables us to acquire customers at a cheaper price. Economics. Better you see more data on a daily basis. How much pressure do you think the Chinese Consumer is under right now . Surge instage we saw a shopping. It is an earlystage panic. After that, the supply recovered. Because this is an incredibly competitives case. Jd. Com is one of your main competitors. What is the main thing you have to focus on . The supply chain capability. We cut it into two parts. Where we takeel all inventories and we are the only player in this market with the capability. We do not see others having this capability. We have over 70 directly purchased from users, which takes years of accumulation. Others have not been doing this. The retail unit management distributed many warehouses. Manage. Rd to we used lng to do this. Why does that take you within the fiveyear horizon . Do you start to look at International Expansion . The problem is dealing with the market. We are at the very beginning. What is the timeframe for going public . Chris we do not yet have that plan. Yvonne that was wang jun speaking with tom mackenzie. Trading higher ahead of earnings reports. Bloomberg intelligence is expecting the commerce giant to show a full recovery from the impact of the pandemic. Whatng us with the latest, are we expecting in this latest result . Click stadium will be the first among the ecommerce players to report earnings for the Second Quarter. They will have a good sense of zoomers have recovered consumers have recovered after covid19. Actually, during the pandemic, because of its strong logistics it is attracted a strong base of consumers. Especially bigger ticket items. Midyear, the Shopping Festival included june 18. High ford a record transactions. They have shown signs of recovery. Juliette a focus on competition. How is jd likely to be faring against competitors . If you look at those problems, they traditionally have more income logistics. A unique way of buying. Most of them attack each others territory. Competing. Groceries. Ced, fresh we will see the competition becoming more fierce. Asia tech reporter, thank you for joining us. Do not miss our coverage of the u. S. Democratic National Convention this week. Bloomberg tv and radio will kong. St this in hong that is it from the bog bloomberg asia. [announcer] imagine having fuller, thicker, more voluminous hair instantly. All it takes is just one session at hairclub. Introducing xtrands. Xtrands adds hundreds or even thousands of hair strands to your existing hair at the root. Theyre personalized to match your own natural hair color and texture, so theyll blend right in for a natural, effortless look. Call in the next five minutes and when you buy 500 strands, you get 500 strands free. Call right now. upbeat music the following is a paid presentation brought to you by rare collectibles tv. Our country was founded on life, liberty, and the pursuit of happiness. Representing this idealism is our american eagle. The bald eagle was chosen in 1782 to represent the United States because of its long life, majestic looks, and great strength