Transcripts For BLOOMBERG Bloomberg Surveillance 20240712

I am Francine Lacqua in london. This is what the markets are looking like. Ofis more quiet because august, not so because of august 2020. The european shares are fluctuating, chinese stocks rally in, and oil up with the opec gathering this week. Travel agencies and Real Estate Companies were the biggest drags in the 600, with the dollar weakening against most of its peers. We will have more on the markets throughout the day, but now, lets get straight to the bloomberg first word news in london. Here is leighann gerrans. Leighann in the u. S. , House Speaker nancy pelosi is calling members back about the postal service, which has warned at least 46 states they may not be able to develop ballots on time for the november election amid operational changes and a funding cuts. President donald trump has said repeatedly and without evidence that voting by mail is subject to widespread fraud. Now, in new zealand, Prime Minister Jacinda Ardern has delayed the general election by four weeks until october 17, that amid a worsening cluster of coronavirus cases in the country. The nations largest city, auckland, has been in locked down with social distancing measures reimposed on the rest of the country. A think tank is warning the u. K. Is putting 2 billion jobs at risk by ending its support program too early. The institute for Public Policy Research Says tapering the plan too soon could cause longlasting damage to the economy and peoples lives. So far, the program has helped support more than 10 million jobs. And in belarus, hundreds of thousands of protesters rather theirully last night to fight across the country, calling for the resignation of president lukashenko after a controversial election and a violent crackdown on opponents. The u. K. Has grown join the growing list of countries that says it does not accept those Election Results. Global news, 24 hours a day, on air and on bloomberg quicktake, powered by more than 2,700 journalists and analysts in more than 120 countries. I am leighann gerrans. This is bloomberg. Francine . Francine thanks. On trade, the sixmonth review of the trade deal has been called off. President donald trump, meanwhile, has continued to make his tough position on china a key in the lead up to the election. They are continuing to blame china for the coronavirus. Now, lets get the latest. A look at all of the trade for us. What exactly happened . Know whato not really happened to the talks. They were never on the public scheduled to begin with, either on the u. S. Side or from the chinese side. They were supposed to be sort of a routine catchup, a status report, on the trade deal that was signed in january. But, obviously, they could not get enough together ahead of the to even holdcide it. You would not hold a Conference Call like this that is being reported in the press unless you had some kind of deliverable that you cant announce afterwards, so, obviously, they got to a point where they just figured out, we cannot accomplish anything, so lets not even have the call. Now, whether they reschedule it or it is just kind of postponed indefinitely is the question we are trying to answer right now. Brenton, how is chinas purchases going right now . Dan, how is chinas purchases going right now . Headan we talked to the of a port, and he said he would be surprised if china came through with one third of the 36 billion, 37 billion dollars worth of agricultural purchases it is required to do under the deal, so, obviously, the head of the busiest u. S. Port does not see a lot of activity going back and forth between china and the u. S. , so that could be a sign of them being far short. Notedent trump noticed in recent days that china has stepped up purchases of corn, so both sides do feel, apparently, that the trade deal is worth sticking with for the time being. Is the next what step for both sides . Well, they have to figure out when to stop escalating, you know, the rhetoric. We have seen President Trump morethe weekend threaten Chinese Technology companies, social media platforms, and so on. There was the u. S. Approving , notf16 sales to taiwan good with beijing either, so i guess the next step is to figure out how do we deescalate the situation or at least call a truce and get back to the table and figure out how to cooperate rather than have more confrontation. Much,ne thank you so brendan murray, who leads our trade coverage. Coming up, some hedge funds and the stayathome trade to the covid19 pandemic. Details coming up later. This is bloomberg. Economics, find, politics. This is bloomberg surveillance. I am Francine Lacqua. Lets get straight to a Bloomberg Business flash with leighann gerrans. Worth 3. 4 a deal billion dollars, a french drugmaker pivots innovative therapies. Andcipia has drugs for ms immune disorders. It is a 10 premium over the friday close. Meanwhile, a Coronavirus Vaccine companye with a german finance chief telling the Financial Times that it plans to demanded ethical margin. Curevac more than tripled in its debut friday. It was the biggest listing there this year, and microsoft is interested in expanding tiktok, including the u. K. Operations. It is unclear if Parent Company unedance wnaants to seel the sell the unit. And that is your Bloomberg Business flash. Francine . Francine an injection of the raised positivity with unprecedented amounts of stimulus, but there is also a warning about a second wave of coronavirus creating a downside scenario. To be joined by a multiasset strategist. Think you for joining us. When you look at how the economy will perform, how many jobs we will lose, and also the u. S. China trade, what does that do to your conviction . Arche conviction is we think stocks will be rising over the next year, and the key driver there is really what is happening with the bond market and the fed. We think the low Interest Rates and negative real yields is encouraging more investors to be moving up the risk spectrum into credit and stock and support evaluations, so we think that is going to drive stocks higher. Of course, that plays into the things you mentioned, like the u. S. China tensions and the coronavirus. Stocks higher because of just the Interest Rate story. So what happens if there is a violent second wave . Do you still have conviction stocks will go higher . What has to happen for you to stop believing there is an upside . Think the important distinction to make with the coronavirus is the second wave or the violent second wave, as you describe it, and the chance over nude locked down. The market will be much more reactive chance over a new lockdown. Whether they will be resorting to those new widespread lockdowns like we saw back in march, and the virus does not seem to be spreading as quickly in this incident as it did back in march. We think that means it will stay within the Health Care System capacity, and that means the neednment is not going to to lock down. Of course, looking into the Third Quarter and Fourth Quarter next year, hopefully that provides a more durable solution, and in the near term, we think the absence of lockdowns means this is not likely to be something that drive stocks down. An, over all, are you pretty optimistic about u. S. China relations normalizing if not stabilizing . Certainlyl, we are entering a risky phase, because if we see an increase in tensions now or a removal or an undoing of the phase one trade deal, and the Economic Impact of that will only materialize after the u. S. Election, so this is a kind of phase where perhaps President Trump can get political gain by rising tensions with china, and he does not necessarily bear the costs, and we do see the phase one deal persisting, and a lot of the talks have centered on individual Technology Companies and the regulation there, and for a broad Economic Impact, we do not think that will be too large. As your previous guest was saying, some increase in purchases from china on the oil side. Terms of fulfill the china to meet against the backdrop of the pandemic. So we think that ultimately, the phase one deal will hold, though we have to acknowledge that is a risk as we head into the next few weeks. Thecine if you look at Downside Risk to the u. S. China relations, it could be a blockage on Tech Companies or extra tariffs. What does that due to the market . If you construct your ideal antfolio, kiran, how much of issue is that, and what do you buy into . Isan the tech side interesting, because we keep getting this interesting diversions with the tech world and the china tech world, meaning we have to talk increasingly about diversification. It is not about being in u. S. Tech names or for our asian clients in the asian tech names. They have to be diversified between the two, so we start seeing what we are seeing with tiktok and wechat, at least you are well diversified between the two worlds. I mean, i think, more broadly, for the market downside, you would need to see a removal of those tariffs, and if we go back to the end of 2018, and that kind of market, if we start to see that being removed, but that is just one case. Francine what do you see being priced in in terms of the u. S. Elections . What about a Biden Administration . What is a Market Pricing in right now . You look at the betting markets, they are around 50 on a blue wave, so that is biden plus the democrat congress, and then there is biden plus a split congress. Broadly where the market is today. What we are talking with our clients about is how they can reduce their exposure to some of the stocks that will be more sensitive to the election outcome, so we obviously look at banks and energy and health care. Some of those stocks are going to be quite sensitive to the results of the u. S. President ial election. There are plenty of stocks and sectors in the u. S. That we see as attractive, so it depends on the outcomes, and then we look at things like communication services, a secular group, and we look at the Technology Sector that have not really been in the regulatory spotlight of late, and they also look attractive, and, of course, things like consumer staples, notwithstanding the trade issue i just discussed. They also look quite attractive. So a hedge position in those stocks that are not going to vary so much based on the outcome, because even though the market is getting increasingly positioned for a Biden Victory and a blue wave, as we learned from 2016 these things are not necessarily predictable, so we think it is best to be positioned in the sectors that are not going to be so affected. Iran, if you look at this locally, what do you think . Where elsewhere in the world . Where do you see the regional divide . I think we rank those, and asia would be the the u. S. Andwed by europe. We have a good combination where growth is strong in china with the vshaped recovery coming through, and you mentioned the stimulus efforts that are going in there, and so the market is relatively attractively valued in the u. S. , so sort of our top pick if we choose out of those. In second place, the u. S. Valuations are relatively high, but you have got a secular growth story there with some largecap names, and we think midcaps are also attractive today. Theave got more concerns in euro zone, more specifically where we have a concern. We think that the earnings picture there is more clouded, and it will take longer for things to return to the levels they were out before the pandemic, so looking at the u. S. And asia, the 2021 story, and in europe, 20 22 before getting back to prior pandemic levels. Francine is that on Inflation Expectations . It has rallied back a long way, and we think people are shifting to the u. S. Dollar due to the differential falling, and, you know, at the time of the rally, we were seeing an increase in highrisk cases in the u. S. At a time when it looks like europe was managing the crisis relatively well. I think at this point, that rally is going to consolidate and we will see a trading range for the euro dollar at the moment, and a lot are short in the dollar and positioned in the euro, so we think the near term gain is more limited. But if we look at a more strategic horizon, we are talking to our clients about hedge, diversify away from the dollar towards other currencies of the euro british pound, the chinese, even gold. The dollar story over the longerterm, overvalued to start with, and in addition, a weakness in Interest Rates that we have seen in the u. S. Recently and also the deficit story. We think the dollar is structurally likely to weaken. Francine thanks so much , kiran. He stays with us. Still ahead, what the outlook is. What is the outlook for ideal . Well, more on that next. This is bloomberg. I approach this with a seriousness of mind, because this is a serious moment for our nation. Francine this is bloomberg surveillance. I am Francine Lacqua here in london. Weeklyading, the first drop after hitting an alltime high. Oil trading near 42 a barrel. The cartel will need to assess the trade deal as countries continue to see the virus crushing demand globally. N, first of all, do you buy gold at all at these levels . Have been, and we adding it into our client portfolios to look at the appreciation expect to see, and we think there is an upside scenario for gold that could even reach 3200. We think we have got somewhat of a perfect environment for gold, where we have got very, very low Interest Rates in the u. S. , and that has changed to the opportunity for investing. At the same time, many investors are thinking how can i diversify when bond yields r0 . Where can i go . Zero . N the yields are where can i go . And the uncertainty with all of the money printing and the Government Debt and the geopolitical tensions we talked about earlier between the u. S. And china. This is a really Good Environment for gold, especially in the portfolio context to help diversified portfolios against potential risk. It is an upside scenario for gold, something we have been adding into client portfolios recently. Against is this a bet deflation or against inflation . Longerterm, gold is typically seen as a hedge against inflation, but i think it is primarily sort of a real rates play, so if we get the combination we have seen recently with rising expectations with the fed anchoring nominal rates, then you see real rates dropping, and that is a Good Environment for gold. It is an inflation had for the longerterm, but with the real rate play. What do you do, with oil . If you look at some of the commodities, i do not know if oil is symptomatic anymore with the World Economy and if it goes down if we should worry about demand, or because there is so much focus on renewables that it is likely not matching what it could be for the economy . Yes, oil is Something Else we have seen as interesting, and we have been adding it to client portfolios, including some of the base metals. We think as we are getting this recovering global economy, as trade and consumption start to pick up and productions start to come soon come through soon, as Companies Stop their inventories, inventories will see appreciation because of the increase in demand. You mentioned the opec meeting coming up. We have seen relatively good supply discipline from opec, so it will remain constrained. Soncine kiran, thank you much, from ubs. Coming up, President Trumps advisor, Jared Kushner, says the agreement between israel and the uae will change the paradigm in the middle east. We hear from him, next. This is bloomberg. Francine economics, finance, politics. This is bloomberg surveillance. Im Francine Lacqua, here in london. Lets get straight to the first word news with leighann gerrans. Leighann the u. S. And china have postponed trade talks that were supposed to happen over the weekend. They were aimed at reviewing progress at the sixmonth mark of their faith theyre phase one deal. The talks never made it onto any official calendar, and have been shelved indefinitely. The u. K. The u. K. Suspended its criteria for appealing results hours after they were published. Irregular of quelled says they are under review after scores of results for a levels saw determined University Prison placement downgraded by an algorithm. Japans economy has suffered its worst quarter in data going back to 1950 five. Gdp shrunk 27. 8 percent on an annualized basis. It is as lockdowns around the conspirators Consumer Spending and production and exports. After three quarters of contraction, japan has shrunk to where it was tens of thousands rallied in bangkok yesterday, calling for an end to the military led administration. Criticizing jail sentences. It comes as the economy has fallen the most in 22 years. Secondquarter gdp tricking over both percent from a year earlier. Global news 24 hours a day, on air and at bloomberg quicktake, powered by more than 2700 journalists and analysts in more im 120 countries, leighann gerrans. This is bloomberg. Francine . Francine ministers from israel and the United Arab Emirates plan to meet soon following a landmark call this weekend. Rather the trump President Trumps advisory Jared Kushner s kevinth bloomberg seven cirilli. Most important they him he understands what is critical to israel and a secure economy. He believes it is more important to strengthen the relationship with United Arab Emirates and other regional arab countries to figure out how week create that crosspollination with other arab nations. With that, that will make israel safer. I take his word. Kevin a Previous Administration official here at the white house notice noted there had been some optimism in terms of how the palestinians and israelis were working together on covid19. Not all the way, but some areas, especially how the Economic Situation because of pandemic in the medical situation in both israel and palestine has forced to look at things such as cybersecurity and technology. However, the palestinians denounced this deal. At what point do you have to put additional pressure on palestine to get them to broker that is realpalestine deal. Jared we dont want to pressure the palestinian people. A lot has changed. People have seen that a lot of the approaches havent worked. People want better lives for the children. They want to live in peace, they want security, they want economic security. Problemle east has had after problem after problem. Present trump has come in and recognized the realities on the ground and is trying to sort them out as we go. With regard to the palestinians, we let out a good vision for what happened. We got israel to agree to a palestinian space, we got israel to agree to potential borders through a map we published. And there was a conference in bahrain where the International Community came together and endorsed our plan over 10 years. Newle their gdp, create a jobs and create a better life. I think the palestinian are that the palestinians are closer together than where the palestinian leadership is. Perhaps over time the palestinian leaders will see that they have much more to gain for their people then by putting out the same statements that have brought no progress to their people. Kevin i have two questions for you. Im a geopolitical sense, democrats have been campaigning saying they will join the iran deal. Senator Kamala Harris has said that she wants to rejoin the iran deal. Democrats say Coalition Building is a contrast of the Foreign Policy strategy of this administration. How important of a role did iran play in these negotiations, and what do you what is your response that the iran deal would restore . Jared americans are smart. One of the reasons people american elected donald trump was because they were tired of stupid deals. Arn deal was one of the worst deal the iran deal was one of the worst deals ever made. The money was used to directly fund terror. After they signed the agreement, they were in the streets chanting death to america, death to israel. It was a terrible deal. America made terrible trade deals. President trump has changed all that. The American People want to see our troops wrought home. President trump is trying to end the war in afghanistan. We reduced our troops there significantly. He wants to rebuild American Cities to rebuild other nations. And i think a lot of the isocrats have said that he going to cause war. Well, that hasnt been the case. Done with the Previous Administration and the administration before have not been able to accomplish. Says you have to separate the media from what he really does. Hes not afraid to say what he thinks, and he brings results. I would say this. Rejoining the iran deal under the old tariffs would be absolutely catastrophic for america, for israel, for the whole region. Because the vision of what iran wants to see is not consistent with americas interest. Tom that was Francine Francine that was Jared Kushner speaking with kevin cirilli. The head of the ahead of the landmark call, we spoke with the ministry of he told us the decision was about helping the region. Decisions a sovereign of the United Arab Emirates. Our calculations were that on the bilateral front this is good for us. And our calculation was on the regional front, that this is something that we can actually get something done, which is to do with annexation. Do you expect saudi arabia to join you . Ofi have seen a lot speculation today about this country and that country, and again, these are sovereign decisions. We did not do this because we expect this country to join us or that country to join us. Our calculations were very clear. Our calculations were on the one hand, how can we do something while at the same time achieving something with regards to stopping annexation. Successfuls was very by rationally, realistically coming across and saying we are formalizing a situation that is developing. This is where this relationship is going to go next year or the year after, why dont we do it now . And if we do it now, can we actually get something in reserve to support the region . There are growing concerns that some countries in europe may have reinstate lockdown measures as virus infections start rising again. Over the weekend, italy ordered nightclubs to close, matched by a similar directive in spain on friday. For more, sam fazeli joins us. Sam, what can you tell us about the resurgence of the virus overall. We are seeing some cases in new zealand, australia. We have concerns about the middle east, but also some parts of america. Are we seeing a second wave, or is it a case of looking at countries and trying to keep the infection at bay . Morning, francine. I think you could call this a thatd wave, and i suspect everybody to a degree expected this. You relax the rules come as soon as people get out and get close to each other, then the virus has an opportunity to start spreading again. This virus seems to be incredibly capable of transmitting from person to person. Howtill dont know exactly the outbreak in new zealand came about. At least im not aware of any the casessome of there, so that will be interesting to work out because they had clearly the virus just cannot appear out of thin air, so it must have come from somewhere. It would be important to find out what that source was. In general, obviously we are now going to have to have to figure out what politicians are going to do with regards to, what governments are going to do with regards to restrictions, because if you leave it, it will spread and cases will continue to rise. That will be interesting to watch. Francine where are we on the vaccine, sam . Sam it was relatively quite week last week quite weak last week. Which was good because i was away. I kept my eye on it. We are waiting for some new data. Anyavent seen the details, war details from Johnson Johnsons vaccine yet. Some of the newer technologies the college was using a vexing, so hopefully we will see some news out of that. The completion of astrazenecas phase three trial, they started, at least on paper, there phase three trial, a good two months before pfizer and moderna did. It sounds like, from what ive been hearing, that they havent quite reached 10,000 on subjects they wanted to recruit. The last i heard on a government podcast yesterday was about 9000. So this also means that the ones trying to do 30,000, pfizer and moderna, might take longer than some people have hoped. So lets see how thats going. Usncine what can you tell about therapeutics . Have we had any big developments, or are these the same drugs that were used a couple of weeks ago . Sam no new drug information. There is quite a lot being studied, and some specifically rather than repurposed. If you think about what we have already seen already with remdesivir, it has been repurposed, which is not a problem, but drugs specifically being tested in terms of treating the disease or antivirals, we are still waiting for some news on that, particularly people like pfizer and merck are doing some interesting work in that area. Then youve got the immune system, which i think Patrick Vallance said this on that same podcast. A new system and a vial is therapeutic antibodies, antibodies that have been made so you can have a straight response to the virus. They seem to be having a tough time enrolling patients again. Everyone is scrabbling for patients now. That is going to be an interest everyone is scrambling for patients now, and this could affect the new vaccines that they will start enrolling patients, whether they will be able to better once you have results for existing vaccines. Francine sam, thank you so much. Sam fazeli, bloomberg director of research. Coming up, russia is robbing alexanderupport lukashenko. We will be live from moscow next. This is bloomberg. Francine economics, finance, politics. This is bloomberg surveillance. Im Francine Lacqua, here in london. Hundreds of thousands of people rallied over the weekend, demonstrating disputed Election Results as Alexander Lukashenko returns to power. They are now demanding his immediate resignation. The call with the belarus reader with the bellow loose with the belarus leader, asked how bad is the situation right now . Lukashenko, is growing more and more serious. Today there was a call from the opposition for a National Strike to begin in many of the countries in many of the countrys state run factors, thousands of workers have responded and walked out of those plants. Look at shanker today visited one of the factories and tried to dismiss the protests, the work of a small minority of employees, but even as he spoke, there were thousands outside the factory gates chanting for him to resign. It is more difficult for his regime to maintain that this is a very disgruntled few who did not really have an impact on the election result. It is more clear that he is facing very serious opposition. For ane there are calls general strike today, but with the support of russia will he stay in power . His hope,ink that is that he can cling to power and that somehow russia will come to his aid. But i think many in moscow are puzzled by what it is that russia could do to prop lukashenko up. The offer of help was quite vague from the kremlin, and unless there is some external threat to Belarus Security come it would be hard for pressure to justify sending in troops to put on the protests. I think rush is very much waiting and watching events unfold, but it is not clear that they are winning on keeping lukashenko in power. They may wait wait to see what happens if lukashenko falls. Would it be her . Tony she put out a new video this morning saying that she was ready to take responsibility and act as a National Leader until new president ial elections could be held. She herself, when she ran against lukashenko, said she would only hold power for six months until elections could be held. And then she would step down. It is not clear if she is the longterm replacement, but shes put herself forward as an interim placement if lukashenko sets steps down, but there has been no indications of for that he wants to do that. Francine tony halpin, bloombergs government editor in moscow. Thats get to the Bloomberg Business flash with leighann gerrans. Leighann tiktok has 90 days to divest its 90 days to its u. S. Assets, the latest issuance by donald trump. Treasury secretary steven mnuchin, who leads the body, said the order was to protect u. S. Uses from the exploitation of their personal data. Amazon is being being pulled by the german trust regulator. It is looking into whether the ecommerce giant is abusing market dominance to exert pricing pressure. It is related to complaints that amazon block individual vendors because they allegedly charged excessive prices. Has expressed plans to buy principia biofarma. Principia focuses on treatments aom multiple sclerosis and range of autoimmune disorders. ,anofi is paying 100 per share a 10 premium over fridays close. That is your Bloomberg Business flash. Francine . Sustaining the rally, we will take a look at what to stocksfrom mega caps sex until the end of cap stocks until the end of the year. And why Warren Buffett is selling banks. This is bloomberg. Francine economics, finance, politics. This is bloomberg surveillance. Im Francine Lacqua, here in london. Mega cap tech stocks are resuming their rally as nasdaq futures push higher today. The Global Pandemic means the demand for ecommerce, web services, and delivery is likely to continue, but risks remain, including the u. S. Election, as well as possible issues around the antitrust and regulatory questions. For more, dani burger joins us with the latest. First of all, faang stocks can they sustain their rally . The tech ball certainly thinks so. This is really the ultimate stayathome play. We saw that through the earnings season. Earnings inditex names did significantly better. Estimates for where earnings are going have held up. The tech sector grew 3 yearoveryear in earnings when many sectors were not able to. In some ways, this was almost a haven, but valuations have gotten stretched out. The ratio of the u. S. Tech index to the s p 500 you can see is near its highest since the. Com levels. Dotcom bubble. One of the dangers is that Inflation Expectations have risen. Golden says they like tech because the future cash flow the growth names give them, but we assume if inflation picks up, you will have to discount that future cash flow even further, each means that tech ab looks less attractive. Francine have the hedge funds given up on the tech rally . Dani one of the most interesting things we have seen over the weekend, we had the 13 as filings, and some of the tech names were abandoned, specifically the big faang names. For example, d1 capital, completely abandoning a lot of their stake in netflix, facebook, amazon, viking a similar move, as did code2. We saw appellate tom we saw peloton and the stayathome names, we saw a flock to them. I wanted to quickly mention there wasfett because a selling out completely of his Goldman Sachs stake, Berkshire Hathaway also decreasing j. P. Morgan, wells fargo, and this does reflect buffetts more skeptical view on the economy, she has voiced, also adding barrick, a gold company. His is a clear play of some skepticism on where the u. S. Economy is going for here, francine. Francine thank you so much. Dani burger with some of the big stories we have been following today. In the meantime, european stocks are actually fluctuated there we go, a guest appearance by tom keene, getting ready because he is joining me shortly. We are seeing Light Trading on european stocks because it of the month of august. Investors focus on travel restrictions and of course a resurgence of covid19. Lets get to the markets if we cant to see exactly what eurodollar is doing. Looking at chinese shares, they are gaining after the central bank boosted liquidity. Oil actually rising before an open bus gathering this week. And if you look at europe, airlines, travel agencies and Real Estate Companies with the biggest drags on the stoxx 600 for a while. The dollar also weakening against most of its peers. Thatim also looking at is chinese central banks, the pboc, surprise liquidity to commercial lenders to help them manage some upcoming Government Bond sales. Bloomberg surveillance close continue bloomberg surveillance continues in the next hour with tom keene joining me from new york. Dont miss a conversation with kit juckes of societe generale. This is bloomberg. You doing okay . Yeah. This moving thing never gets any easier. Well, xfinity makes moving super easy. I can transfer my internet and tv service in about a minute. Wow, that is easy. Almost as easy as having those guys help you move. We are those guys. Thats you . The truck adds 10 pounds. In the arms. Okay. Transfer your Service Online in a few easy steps. Now thats simple, easy, awesome. Transfer your service in minutes, making moving with xfinity a breeze. Visit xfinity. Com moving today. Francine frayed relations. Tensions rise between the u. S. And china after weekend trade talks were postponed. Meanwhile, the fourday Democratic National convention begins. Pbocs morale boost. Chinese stocks climb after a Central Bank Cash injection raises hopes of more support. And belarus Opposition Leader says she is ready to be interim president. Thats as hundreds of thousands of people rally over the weekend, while russia says its ready to provide regime assistance. Good morning, everyone. Happy monday. This is bloomberg surveillance. Im Francine Lacqua in london. Tom keene is in new york. Interesting moves when it comes to european stocks because volumes are thin, but we look at the u. S. , the democratic convention, and what is happening to the u. S. And china. Nudgyets call it a august monday. We will do a data check