Colleges are told to offload holdings of mainland companies. Australia signs a deal to make any covid19 vaccine for all. The government will distribute should it prove successful. More vaccine optimism playing out in australia. Lets look at how we are shaping up in terms of the u. S. Future session. Another renewed push of momentum in u. S. Markets overnight, hitting the record, propelled again by the same names. Also betterthanexpected u. S. Housing data. 2016 helping out sentiment, as well. We have positivity when it comes to the active futures trading at the moment. The nikkei 225 trading in chicago, looking flat at the moment ahead of a trade balance numbers, as well as machinery orders. We do have the topix, best performer in terms of Global Markets so far in this month of august. We are looking at broad weakness when it comes to the u. S. Dollar. The dollar sinking to his lowest levels since may of 2018. Im worried about the u. S. Economy with yet no relief package, stimulus package in sight after the drag don negotiations. Gold seeing a pop up. On the side of training, we are looking at disruption when it comes to trading in hong kong. Canceled premarket trading session. We did get news over the last few minutes they will be lowering it to eight in the next couple of hours. Thats an indication of how we can see that day of dislocated trading take lace in hong kong. Shery disruption also in the chinau. S. Relationship. Trump saying he called off the trade review with china. The talks were to assess the phase one deal, although they have not made any public calendar in washington or beijing. Stephen engle has more on this. President trump saying he canceled the talks, and he doesnt want to talk to china. Why . There are a lot of issues other than trade that have crept up over the last six months or so. These virtual talks that were with thebe held chinese and u. S. Trade were likely to be held last saturday. They did not happen. Wast of the speculation other issues, not just trade, had crept up to the forefront. Taiwan,it is huawei, alex azar visiting the week prior, hong kong, or as donald trump is now saying, coronavirus. Im not sure this is the actual reasoning, or maybe a Campaign Platform donald trump is trying to leverage off his toughness on china. I cant interpret that. I can tell you in his words, i canceled talks with china, i dont want to talk with china right now. What china did to the world was unthinkable. And he is referring to the coronavirus outbreak. He is again saying chinas handling of the coronavirus outbreak was unthinkable. Those virtual talks due to be held on saturday, they were not necessarily supposed to be substantive, they were supposed to review the past six months of progress, which have not met expectations because of the coronavirus and chinas pledges for agricultural purchases. Haidi surprisingly, we will hear the response from china on huawei. Beijing came out yesterday at the afternoon briefing. Quite sharply was rebuking those claims that wilber ross of the Commerce Department said huawei was perhaps exploring loopholes to get around the early year restrictions on huawei securing chips made from foundries that use u. S. Equipment. Now those foundries, if they get contact orders from the designers, the subdivisions of huawei that designed the chips, they need to get licenses to make those chips for huawei from the u. S. , since those foundries use u. S. Equipment. This is what the spokesperson in beijing said, the u. S. Has been abusing their state power in the name of national security. It went on to call the u. S. An empire of hackers, and the latest moves on huawei would backfire. With thatphen engle reaction from the Chinese Foreign ministry. We will get more on these tensions between washington and beijing with the u. S. Chamber of joining us for asia later. Still ahead, the dollar raise trade war gains. Asset management providing a boost to assets in asia. With thesed prospects head of emerging markets debt, denise simon. And a covid19 vaccine candidate. How treatment can be free. Details next. This is bloomberg. Continue to watch the developments around the typhoon hitting hong kong. Right now we are hearing from the Hong Kong Exchange. They are delaying their securities in the market open due to the typhoon. Hkxhave already seen canceling. We will continue watching the developments as the typhoon goes over the city of hong kong. Lets turn to Karina Mitchell on the first word headlines. Global coronavirus cases nearing 22 million, with more than three quarters of a Million Deaths. The latest figures, amid signs of infection slow downs in florida and california, while the Prime Minister of finland is being tested. Germany says restrictions will remain in place. The u. K. Reported its lowest death toll in 20 weeks. Hong kong will roll out a third round of support measures. The democrats are willing to lower their stimulus demands to break the deadlock in washington. Nancy pelosi says she will cut calls for 3. 5 trillion of new programs to help the sides reach an agreement. We could indicate the democrats are ready to negotiate below the funding level. The white house wants a one trillion dollar package. Canadian Prime MinisterJustin Trudeau is turning towards his most trusted aide to guide the economic recovery. Financeneau as minister, having overseen canadas interests. She is seen as having enough authority to maintain fiscal discipline in a demonstration. Days. Has had a busy few almost 2 billion in new funding. It is valued at 46 billion. Spacex is one of the most valuable Venture Backed Companies in the u. S. Fundraising comes in a period for tech, tesla soaring along with elon musks personal fortune. Global news, 24 hours a day on air and at could take by bloomberg, powered by more than 2700 analysts. Im Karina Mitchell, this is bloomberg. Haidi with the dollar down to its lowest level since may 2018, erasing most of the gains built on the back of the u. S. China trade tensions. Lets see how the dollar weakness goes into the emergingmarket debt. It could benefit some countries to recover faster, according to our next guest, denise simon. Great to have you with us. Lets start with the dollar weakness. Given that you look at broader positioning across the market, it is not looking overly stressed. Is there more momentum to grow with the selloff . I think there is. So far, the euro has been the main beneficiary of the weaker dollar. I think asia has a lot more room to catch up. Isa is coming out it leading the recovery, they have positive external balances. To positiveve flat real rates in a world where most see inre negative, as we the u. S. , and also in europe. So i think there is more to come in dollar weakness. I think we will see asia and some currencies in Central Europe benefit from this dollar weakness. Fori what are you looking in terms of the credit space . You would still want to see a robust prospect for domestic recovery. This low yield world, where investors are looking at where they can pick in the zero yield environment, i think one market that has been very under looked is u. S. Dollar denominated emergingmarket corporate bonds. These are companies that have better Balance Sheets than in the rated peers u. S. Credit market. What is happening there is a lot of these companies, their rating is capped by the country. So the Balance Sheet might mean they should be Investment Grade issuer. But because they are based in a country that is Investment Grade, it is capped. You actually get better Balance Sheet and higher yields than you do in the developed market. I think there are also lower durations, so you dont have the same kind of u. S. Sensitivity in treasuries,e u. S. 20, 30 basis points, they might not go up a lot, but they are not going down. I think they offer a very attractive Balance Sheet. Fundamentals, less treasury sensitivities, and yields up anywhere between 4 and 7 for less than a five year duration. I think its a market that has been overlooked. It has really grown over the last 10 years. You dont have a dedicated investor base. I think it looks extremely attractive in this kind of environment. You dont need a tremendous amount of growth, you can focus on sectors like utilities, more defensive sectors, where you have stable cash flows. Shery which country are you specifically talking about . I think i would more look at sectors. As ink utilities, mentioned, that are more defensive, project bonds where you have higher barriers to entry, more visibility on tariffs and earnings. In this kind of environment, you want to be focusing on credits that arent overly dependent on a very robust rebound where the credit fundamentals are starting from a less leveraged place. I think you can find that diversified across regions, on latin america. Asia tends to be extended, given the domestic base. I think you want to diversify across countries, across sectors, and for a diverse portfolio, you are getting an accepted credit premium for the risk you are taking. We have obviously had the huge economic shock, and we havent seen a big uptick in defaults for highyield emergingmarket borrowers. Versus more than 1. 5 , the u. S. Highyield market, where the defaults are more like 4 , and the forecasts are that they will have twice the amounts in the u. S. Highyield market then you would have in the emergingmarket corporate highyield sector. Again, better Balance Sheets, highyield than the u. S. , less forecasted defaults. And the sectors are vulnerable. Marginalent had very energy producers, we dont have a lot of brick and Mortar Companies that are more exposed. Haidi great to have your thoughts, we will have to leave it there. Thank you so much. Plenty more to come. Coming up next, we preview day two of the Democratic National convention as President Trump pardons his assault on postal voting. This is bloomberg. Are gearing ups for night two of their national convention, with a starstudded lineup, including speeches from bill clinton and jill biden. Here with a preview, lets bring in rick davis. Before we get to a preview, i want to review what happened last night. Viewership dropped. We see that this Virtual Event can be a tough sell. Does this have implications for voting day in november if you dont get these voters excited . I do think the nature of the convention has changed. There is no question the excitement of a big hall filled with 50,000 people, and some controversy as to what the various speakers will say, tends to draw an audience. Its not surprising all virtual telethon type convention is not going to have that kind of feature to it. But it is disappointing to see voters arent checking in. I would say it is a highly watched election. When you ask voters on intensity scale, they are intent on this election. Certainly the early primary voter turnouts were extremely high. So i dont think this is a correlation. But it is disappointing to the planners around the virtual conventions. Haidi on the first night, we heard from the big guns, bernie sanders, we also heard from the former first lady, Michelle Obama. What lies in hold for the second evening on what is going to be the key what is going to be the key theme you are looking for . I think it will be interesting to see as bill clinton, as a former office holder, takes the same approach towards donald trump Michelle Obama made. She was tough on the president and went right after him. Is thattion i would say each night, that these various messages will be sent in . Clintond think bill will be the guy that goes after trump tonight. I think we have to wait and see how that turns out. Its highly and not likely to be dr. Jill biden, speaking from her old classroom she used to teach in. Shes more likely to attest to joe biden, the father, husband, and the man pretending to be the future president. My guess is we could see some parallels in that regard. Reallyrick davis, appreciate your time. We will get special coverage of the Democratic Convention at 10 00 a. M. Hong kong time, thats at noon if you are watching out of sydney. The pace of the economic reopening has been another major talking point in the lead up to the november election. Essential to helping the country return to normalcy. It captures anything from an n95 mask production, assisting airlines with their pandemic plans. The ceo of darius spoke to bloomberg about the changing response to covid19. Initially, when we first entered the pandemic, it was all about getting the n95 masks as quickly as we possibly could. We played a front and center role as early as march and into april. We expanded our capacity. Obviously that was priority one. That also quickly shifted, because some of the other things we do is we make some of the sensors for the ventilators. So we had a backlog in april. We actually made our own ventilator as well for emergency use. Respondfocus was how we to the crisis we are in very quickly. Moreow, our focus is much on how we get people back to the workplace, back to flying again, back to having fun again, back to going to stadiums again. Thats really a complete shift. So now we are working with a lot of airlines, a lot of the teams in the nfl, the ncaa to get there stadiums ready, a lot of building owners getting back their employees in a safe manner, a different User Experience for the occupants and the owners. We have really been all over the board, from Immediate Response to the crisis, to now preparing to return to a state of normal. You opened up factories in arizona and rhode island to make masks. President trump even visited one of the facilities. Though he wasnt seen wearing a mask at the time. How closely are you still working with the white house on ppe, in particular . Weve had a very Good Partnership with the white house to help them out anyway we can. We quickly opened up the facilities in rhode island and phoenix. We are helping them with some surgical masks. The latest discussions we had and opening up new crafts. We are continuing to have discussions. There is still a huge amount of nearterm uncertainty. Nobody knows exactly what the future looks like it particularly in longterm. What do you think of the evolution en masse, given the initial interaction youve had . I think the president is supportive on masks. Based on the data i have seen. They helped limit the spread. Certainly we practice that. Some of our staff working in offices. Most are not, particularly in north america. We certainly encourage you to require the use of masks. In trying your role to get passengers back on flights safely if they need to fly . This is all about passenger safety, and inger think the airlines have done a terrific job in that respect. We are helping them with sterilization. You may have seen some of that robotlike devices that really rome dials with ultraviolet light rome the idols. A couple of minutes between flights. We are also working on solutions to have cleaner air within the aircraft itself. Some of our technologies, which are longerterm in a nature. Also basic things, like kits for the passengers. So we have a full range of solutions from the very sophisticated and technical, to some basic things, like wearing masks. Adamcyck. Ius openingcing app zoom is a new data center in singapore, expanding into Southeast Asia amid claims it transmits user information to beijing. Zoom has seen demand surge, but the popularity has triggered questions about software encryption. Zoom now has 18 flights around the world, user signups jumped 65 fold in singapore from january to april amid the covid19 outbreak. Taiwan is banning ite and tencents streaming service next month, claiming both businesses are in violation of laws against mainland chinese investments in local media. The governments will issue a former order formal order soon and discussing penalties if the Companies Fail to comply. Taiwan follows pressure from both the Trump Administration and india over chinese apps. Iphone case maker catcher is to sell two businesses in china. Taiwanese Companies Move away from the mainland amid rising u. S. Pressure. Lens technology will buy the units in the eastern city of tie joe, with completion expected this year. It is valued at almost 1. 5 billion and involves a plan that accounted for 40 of their total sales last year. Haidi take a look at u. S. Futures shaping up after the resounding push into a record overnight. Again being propelled by tech. Better than expected u. S. Housing data driving the optimism there. The s pow over 50 for 500, rallying the march low. Nikkei two to five seeing weakness ahead of data on the trade balance, as well as machine orders. The bloomberg was another major market story, as they had that sinking to the lowest since may of 2018. Watching crude ahead of the opecplus meeting. We will be speaking with katie bays. 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. But what if you could stdo better than that . K. Like adapt. Discover. Deliver. In new ways. To new customers. What if you could come back stronger . Faster. Better. At comcast business, we want to help you not just bounce back. But bounce forward. Thats why were helping you stay ahead and adapt with a network you can count on, 24 7 support and Flexible Solutions that work wherever you are. Call or go online today. Kong has canceled premarket trading with its secondhighest storm warning, still in place after the 7 00 deadline. If typhoon made landfall and eight or above remains in force, there likely will be no morning trading. Trade for the day will only be canceled if the warning remains at eight after midday. President trump is called off a tentative trade review with china, blaming the coronavirus. They told supporters he doesnt want to resume talks for the time being and said, we will see what happens with the faceone deal. Made it to anyr official calendar in washington or beijing. Antigovernment protests continue in thailand, calling for a new constitution and tougher curbs on the monarchy. The Prime Minister is downplaying the demonstrations, saying people are being pressured on social media to join the rallies. No test leaders have been arrested for sedition. The president the Prime Minister says he is not necessarily against rewriting the constitution. And the underfire leader of belarus has put the army on alert in the biggest challenge is rule into decades. Claimed alukashenko landslide election victory and is claiming unspecified security threats inside and outside the country. He ordered soldiers to the border. Support to its lukashenko. Global news, 24 hours a day, on air and on bloombergs quicktake, powered by more than 2700 journalists and analysts in more than 120 countries. Im Karina Mitchell. This is bloomberg. Oil at the moment, wti under pressure but Still Holding above 42 a barrel. We got a report showing gasoline supplies rose by nearly 5 Million Barrels, adding to output hikes we have seen from the opecplus alliance this month. We have to look ahead to the opecplus Monitoring Committee meeting, not to mention the iaea crude Oil Inventory report wednesday. Joining us from washington is fiscalnote marketskatie bays fiscalnote markets fiscalnote markets from washington is fiscalnote katie bays. Katie thank you for having me. The market has been astonishingly stable, range bound in the 40 to 43 a barrel range. Successicates a lot of and successful strategy by opecplus. Increasedgy includes production or reduction in cuts starting in august. We do expect opec will move forward with that plan. That is consistent with Market Expectations as well. A recoveryis seeing in demand in a lot of regions, so there is optimism demand is coming back. And opec is moving in line with the return of normal, or what will pass for normal for the near term. Shery how much are u. S. Drawdowns helping . The u. S. Is a big part of this. The u. S. Has cut production, down by almost 2 Million Barrels a day. They are starting to see production come back online very gradually. A lot of producers took pains on earnings calls this month and last to assure investors they are fully trying to bring back economic production, especially the permian, and they are trying to bring some of that capacity online. That could be a threat to the stable, 40 a barrel price range. Haidi do you see all of that production coming back . Katie thats a great question. One trend we are picking up on in the market right now is a focus on a long weekend intained this discipline, both opec and opecplus, and the u. S. As well. How long will producers play nicely with one another and avoid trying to pump aggressively back into the markets . Enougharrel is not high to get anyone excited, but it is not bad. One big question we see in the market right now is, how long will the discipline sustain . Will opec continue cuts well into 2021 . And in the u. S. , will producers remain disciplined . Right now, the forecast we have and that of a lot of folks is that u. S. Production will not robustly come back online, will not test 2019 eyes, until the highs, until the early part of the next decade. Politics is a part of it, we have the looming election with potential President Joe Biden harris, who could have at the oconee and policy toward oil and gas production. Haidi we know china has been propping up demands in a sense, by ramping up purchases of american crude. Is that went to continue, given that was meant to go into the spaceone trade deal meetings that have now and scrapped, President Trump saying he has no interest in speaking to the chinese . Katie i know that is kind of a wild tryst wild twist. There was one political reality we enforce we reinforce with for president t trump, china has been a powerful case for his reelection. We are not surprised to see the president getting tough on china. The reality is, even with lng and otherude, products, even with those additional purchases, china is lagging significantly behind their faceone agreement. Maybe we are playing a little chess here, with the president putting more heat on china to go farther and step up initial buying. md fiscalnote markets katie bays, thank you. Astrazeneca plans to provide 25 million australians with any potential covid19 vaccine. We get details on the deal, next. This is bloomberg. Lets kick off with a check of the markets, u. S. Futures Holding Steady after u. S. Stocks touched another surpassing, finally the february high, failing several times in the past week. We are talking the fastest rebound on record and headed toward five straight months of gains for u. S. Stocks prayed nikkei futures Holding Steady after declining the past two sessions. We have a stronger japanese yen that just broke through the 106 level. We have a very weak dollar at the moment, lowest since may 2018. The low dollar boosting the british pound, which is about to erase yeartodate losses. We are watching for the euro perhaps reaching the 120 level. The weak dollar result of that also helping sentiment with gold, now above 2000 level. Chinau. S. Tensions are boosting sentiment for haven demands as well. Haidi, lets turn to australia. Haidi one of the movers we are expecting today is csl, with regard to this story. The Australian Government signed a deal with astrazeneca to receive and Oxford UniversityCoronavirus Vaccine should prove successful. The Prime Minister says it will be distributed free to all australians. Lets get more from our Jackie Edwards in sydney. What do we know about the story and how it potentially positively impact csl . Forie in terms of timing this vaccine for this initial deal that has been announced, the hope is the University Oxford project may be able to deliver its first vaccine as soon as the end of the year if the vaccine proves successful. To theinal agreement deal still needs to be reached, including details like timing and distribution at the price of the vexing. In the government Statement Last night about the vaccine as saying that, while there is a university of queensland vaccine candidate that remains its priority. It is also in talks with astrazeneca and the government to assess whether it could also be able to provide manufacturing support for the oxford vaccine. [no audio] shery are you still there . Csl, theing about Earnings Report out this morning. Fullyearl reported result this morning in line with analyst estimates. Company said that while demand for its therapies remains robust, coronavirus has presented challenges the industry. Andcknowledged lockdowns stayathome orders have affected the collection of plasma, but also said it will continue to invest in plasma collection, with the expectation the crisis will receipt. Shery Jackie Edwards, thank you for that update on the vaccine race in australia. Milk company has delivered a 33 jump in revenue in its fullyour results driven in part by a neer doubling in infant nutrition fields in china. Thechief executive said company is as wellpositioned as it can be to navigate Global Political tensions. Fact did get headwinds as a result of covid, particularly in quarter three. We called that out. There was unwinding up that that occurred into q4. We have seen more of that continue into the first part of fy 21. Suffice to say our business is in a very strong situation, our brand is performing well and we continue to see growth going forward, and that is in response to the opportunity that we have got. Haidi that opportunity, do you expect that will take your existing business from 40 going to china, to even more . And is that potentially endangered by the australianchinese deteriorating trade relationship, given how wrapped up the a2 milk branding image is with australia . Of our stocks are being sold through our china business. There is a component of our sales in australia that finds its way to china as well. We certainly understand a very important of our business is in china. That we are very much focused on the fact that we zealand,porated in new all our product is sourced from new zealand and we are focused therefore on maintaining a very china,relationship with the respect we have with our trading partners there, the importance of our brand and our focus on opportunities in china. We believe, all that taken into account and the reputation of mean our products finding its way into asiapacific, navigating clearly what are political tensions at this present time. Shery how about the competition angle . Because chinese lenders are really trying to push themselves up market . , rarely, this be move to compete in that market intensifying. How do you plan to keep your competitive that . Product ina unique the a2 protein proposition. The formula is unique. It is the bedrock of our brand. But now our brand represents more than just that, it represents the sourcing from new zealand. Have aelieve we differentiated product. It is a very large market. We believe we can continue to grow very successfully in that market, acknowledging there are other players that are performing well. We monitor what they are doing but are very focused on our business model, and think it is going to produce the goods as we move forward. Shery will your percentage of sales to china stay at around 48 . That will continue to grow. That is part of our strategy. Some elements within the china market, we still have a long road to go. The mother and baby store channel, we mbs have got a reasonably small market share position. We have been focusing on how we grow our position within mbs and there is lots of room for growth there. That got a team in china is performing extremely well. Weve been investing in additional people and resources to grow out there, so we see further opportunity in mbs. We have a strong position in the commerce channel as well and see further opportunity. ,n addition to infant formula we have within our Portfolio Opportunity to further grow it grow with respect to liquid milk and power product. So we are very comfortable the opportunity is there for us to continue to grow by infant formula and our additional products in china, and to navigate through the challenges of both covid and the political tensions. Haidi a2 milk company ceo geoffreyabich babidge speaking with us. We have an exclusive interview ath Richard White coming up 11 40 am hong kong and 1 40 p. M. Hong kong. Lets check business flash headlines. A near 4 billion dollars settlement over the 1mdb settlement. Return ofuarantees a 1. 4 billion dollars in assets seized around the world. It was agreed to in july and exchange from malaysia dropping charges against the bank. Uber is considering changing its ride model in response to tougher labor laws in california. It may license the brand to franchisees in response to new driver regulations to avoid classifying them as employees. New California Law requires offering benefits to workers. Lyft issay uber rival looking at a similar business model. Softbank is said to be sending hotels in to help oyo japan. The chain has been hit hard. Lashed its presence in june and is downsizing in tokyo. Retrench amid to fallout in the tourism sector. Asias wealthiest man is on a shopping spree. He has spent the past few months raising more than 20 billion for sharing stakes in his ecommerce company. Now he wants to buy indian online retailers to compete against amazon. India has become a retail hotspot with more than one billion consumers. At howtake a look japanese markets are trading at the moment, nikkei futures under pressure, down. 3 after we saw pressure in the past two sessions. The japanese yen at the moment strengthening a little, breaking through that 106 level, actually in the low window five level against the u. S. Dollar the low 105 level against the u. S. Dollar. We have seen a rally in japanese stocks in recent weeks, tokyo stocks reaching a new peak for 2020 on tuesday. The topix is the world is best performer among major markets this month. Japanese bonds at the moment unchanged. We are looking ahead to econumbers that will be released by japan, machine monthtomonthn, contraction of 7 for june and when it comes to year on year numbers, 22. 5 contraction. Both numbers disappointing. When it comes to machine orders monthtomonth, a contraction instead of again and another month of improvement that analysts had expected. This is a leading indicator of investments, so it is not going well for japanese businesses. The expectation was that machine orders would have bottomed out in may. It doesnt look like that right now. Number, export contraction of 19. 2 year on year. This is a smaller contraction than expected, more than 20 expected. The export contraction easing from june as well, imports contraction 22. 3 . Tradehave the adjusted deficit coming in at 34. 8 n, a smaller deficit than in the previous month. The previous month f is the numbers have been revised downward. Now isanese yen right continuing to strengthen. Plenty more to come on daybreak asia. This is bloomberg. We have an update on the typhoon impacting hong kong. Hong kong lowered the storm warning signal to eight from nine, saying they will further lower the storm warning signal to three between 11 00 a. M. At 1 00 p. M. Today. The early trading session was canceled ahead of the typhoon signal. We would potentially get the cancellation of the morning session as well if the eight byel is not raised to seven 9 00 a. M. Local time, so we continue to wait and see. That needs to be lowered by noon for the afternoon session, the rest of the day, not to be impacted. Lets get you a story widely followed, citigroup ordered to free 175 million Brigade Capital putting to citigroup. After it wasfusing accident to return much is refusing to return money after it was accidentally wired. What do we know about how the 900 million was accidentally transferred . Big question. Ery citigroup is calling it an operational mistaken that the Bank Accidentally transferred a than00 times larger intended. Citigroup had been acting as an agent for revlon loan, collecting and distributing payments. Accidentalual payment came from the banks own funds. They filed suit monday. The order came out, temporary restraining order, on tuesday, that added pressure on citigroup stock. But citigroup told the stock brigade, a hedge fund, was the only Financial Firm involved that flat out refused to give the money back. Brigade lawyers said it doesnt issue,e 175 million at that citigroup wired the money to 40 different funds and because it went to those funds, brigade cant return it. Brigade says it is not a lender. This is where it gets tricky. Citigroup says brigade is used by these funds as their collateral manager and they are responsible and this is why many believe it may not be quickly resolved. Shery what happens next . Later on wednesday, the judge will meet with both parties and conference to determine next steps. Citigroup asked for an injunction. Forceant the court to brigade to give the money back while the case proceeds. Because it ishat not an emergency matter, that may happen, that would be a key development, and some lenders are balking at the bank demand because revlon was in default on a loan and should have repaid, according to people close to the matter. That is the view. There is bad blood all around according to these sources, because some lenders themselves are in a battle with revlon over the loan at issue. Citigroup tocaused back out a transaction involving clos it was involved in with gate. Shery su keenan with the latest on citibank. Coming up in the next hour on daybreak asia, state street Global Markets strategist Daniel Gerard joins us as markets open in sydney and so. This is bloomberg. Businesses are starting to bounce back. But what if you could do better than that . Like adapt. Discover. Deliver. In new ways. To new customers. What if you could come back stronger . Faster. Better. At comcast business, we want to help you not just bounce back. But bounce forward. Thats why were helping you stay ahead and adapt with a network you can count on, 24 7 support and Flexible Solutions that work wherever you are. Call or go online today. Shery daybreak asia. Daybreak asia. Welcome to welcome to daybreak asia. Im shery ahn. Haidi im haiti stroudwatts. Tensions growing, President Trump calls off the faceone trade deal review. Malaysia has signed a deal to finalize a settlement over the 1mdb scandal, the banks must pay 2. 5 billion in the next 10 days. Bloomberg intelligence and expects intelligence a 6 rise in profits despite street protests and the coronavirus outbreak. Shery japan, australia and south korea are coming online, nikkei down. 3 percent, third consecutive sessions of losses. Topix is reversing slight gains . D is now down for. 4 the 10year yield Holding Steady right there. We have econumbers out of japan. 19 fororts slumping machine orders, all 19 . Machine orders, also slumping. The kospi and south korean a reversing two sessions of losses. The korean you want also gaining ground against the u. S. Dollar, trading at the 1181 level as we see a resurgence of highrisk cases in south korea. Governmentr the has temporarily banned Church Services in greater soul greater seoul. Haidi trading in australia during the peak of earnings seasons, biotech getting positive tailwinds from any manufacturing of a vaccine from astrazeneca or the deal signed with the government or potential procurement from the university of oxford overnight. Upside just under. 1 when it comes to trading here in sydney. The Australian Dollar close to the 2020 high, 72. 51 as we continue to see the slide play out for the u. S. Dollar, greenbacks linking to its lowest may 2018. Australian dollar Holding Steady. Rally continuing with the aussie analysts say that running into 2020 one and driving the debate on negative rates. Kiwirates off. 5 in the dollar moderately higher against the greenback, 66 point dell weight u. S. Stocks hitting the record overnight driven by the cg names in te thes in tech and gains in housing market. Treasurer is advanced. Overnight the 10year yield lower, the dollar index continuing to languish for the fifth straight session. Gold seeing a pop on concerns over the strength of economic recovery. Going into trading in greater china, we expect disruption in hong kong markets, the premarket trading session canceled. They lowered the typhoon morning 8, and we are continuing to see whether the morning session will go ahead as well as the afternoon session is the typhoon continues to potentially impact hong kong. Shery lets discuss markets. Joining us from singapore is Daniel Gerard, state street Global Markets senior asset strategist. Daniel, great to have you with us. We surpassed a record in the u. S. Today after failing several times during the week. What does it mean sure what does that mean for asian assets . Which em assets will outperform . We have a more challenging situation right now with u. S. China tensions and a lag when it comes to more fiscal stimulus. Daniel when we think about it, we cant forget we are still in this very fragile and unusual market. Correlations are unusual and we get relationships we dont usually have to for some of these externalities. When it comes to asian assets, we are in the camp that growth matter,is going to matter more than yield differential. There will be some balance, but it will be where real growth is expected, levels of both, not just a change on worse than expected data last quarter. We are sticking with em asia equities and the exposure to tech there. The idea that investors are paying more attention to geo politics, chinau. S. Trade tensions, are very valid. When we look at immediate sentiment versus the coronavirus, chinau. S. Trade tensions are taking off. From that canceled summit this weekend, it seems it remains political theater. A u. S. This close to election wants to do anything damaging to markets, because you dont make the point more from here going into the election then you have already made. Noty perhaps the damage coming from the trade tensions side of things, but what about seetech war we continue to with more bans and restrictions coming from the United States . We saw suppliers to huawei taking a huge hit from those policies in the United States. That it was that the runup said been so strong. This is a backandforth between, what does this mean in the longterm . Do these tensions mean that we are forcing people to turn away from u. S. Tech, and develop other supply lines down the road . Setback for some taiwanese and korean deals . Are very, there specialized providers that are going to be difficult to cut out of the supply chain. Some of it might be a bargaining chip, but i would not turn away from the tech exposure of korea and taiwan. That is it still a case even as we see valuations skyhigh, we see broader markets driven by tech and growth names . What this earnings theon has shown us is that market was validated by buying into tech and growth and health care names. Tech is the real quality and growth side of the market. It is not just explicit tech either. Parts of different sectors are implicitly aligned with tech that have been drivers of this reallocation away from value, away from traditional value sectors and into tech. That will continue. Parts of health care, parts of consumer discretionary, you can find names in tech themes that dont have to be explicit tech. If you want something more boring, food and beverage is want to look into, they are one of the few industries that has real Pricing Power in this market. Thei we are looking at implications of the grain buying outse, the pound wiping 2020 losses against the dollar. How much downside to you see and the implications of the downside of the u. S. Dollar, when you look at positioning at the markets that it has a bit to go yet . Daniel it does have a bit more to go. We continue to see institutional selling of the dollar. Positions were so overweighted for quite some time in institutional portfolios. That is being worked off. Theif we look at where, dollar has come down, it has always been weaker in recent history, but pulling back the window five years or so, there is more downside to go. One of the implications, i dont think the u. S. Cant complain too much about the weaker dollar, given that the real key here is who is best positioned for growth. That said, if we start to get risk off behavior again, the dollar will strengthen. But it just seems that so much as been priced in, the only thing that maybe might be a new worry, and down the line in october, november, will be if the u. S. Election starts to ring up risk off fears. But for now, i think dollar weakness continues. Im not sure emerging markets are going to love it much, but there is still more downside to go. From stateel gerard street Global Markets on the dollar. Breaking on political turmoil mali president e has resigned after extended detention. Soldiers had been detaining the president after a mutiny. There had been weeks of protests against the government for the failure to raise wages for doctors and teachers and criticism over nepotism and corruption in the government. A fresh political crisis now from mali, now getting word that li hasresident of ma resigned and is presumably still in detention by the military. Upside 15 in the early part of the australian session. Exclusive getting an interview with the ceo of wisetech. Richard weiss will join us richard wise. Major step toward resolving the scandal around 1mdb. More details on that later this hour. First, President Trump says he does not want to talk to china right now, calling beijings handling of the virus unthinkable. The latest on the tensions next. This is bloomberg. Watchingou are daybreak asia. Im Karina Mitchell with first word headlines. Almostcoronavirus cases three quarters of a Million Deaths amid a slowdown in florida and california. The Prime Minister of inland is being tested. Germany says restrictions will remain in place. The u. K. Reports its lowest death toll in weeks. Canadian Prime MinisterJustin Trudeau is turning to his most trusted aide to drive the economic recovery and reset his governments agenda. s finance minister and oversaw canadian interests in the north american trade deal. She is seen as having fiscal admin fiscal discipline and the leftlending administration. Convene a Party Meeting over a crucial issue. Offered about the committee gathering which comes as kim jongun faces new challenges and questions about his health. It will be the first time the Central Committee has convened since december. At least 5 Million People are threatened with power loss in california incoming hours as a heat wave pushes the grid to the edge of collapse. The outages were due to start at. 00 p. M. Pacific time California Governor Gavin Newsom ordered an investigation into the reliability of the state our grid. Global news, 24 hours a day, on air and on bloombergs quicktake, powered by more than 2700 journalists and analysts in more than 120 countries. Im Karina Mitchell. This is bloomberg. President trump says he called off last weeks tentative grade review with china to review the socalled caseone trade deal, all their although they were not on the official calendar. With talks with china because i dont want to deal with them now. With what they did to this country at the world, i dont want to talk to china right now. Chief Asian CorrespondentStephen Engle joins us. Leo it is ifphen it is hard to tell this is political theater leading to the election or evidence the phaseone trade deal is in jeopardy. , trump made similar comments and said he didnt see the phase one trade deal continuing was a priority and set a lot has changed. A lot has changed, issues of bubble to the forefront, while i, we chat, tiktok and the coronavirus that he has repeatedly called the china virus and that has ruined relations between china and the u. S. At a time when even larry kudlow, chief Economic Advisor to donald trump, said trade is the bright spot between china and the u. S. Right now, even though china has not met all its ledges in the faceone trade deal on the agricultural front because the economy has slowed. This was supposed to be saturday, a Virtual Meeting between china and Robert Mnuchin toand steve give a report card on the six months since the faceone trade deal was signed. Not a lot of deliverables were going to come out of that, both sides perhaps agreeing, even though donald trump said he initiated the postponement, both sides probably thinking not a lot could be achieved right now talking about the trade deal. Huawei front, beijing is not happy with restrictions on the company. Stephen this is the second iound of restrictions on huawe issued by the Commerce Department, wilbur ross saying it was closing a loophole that affiliates toing get around u. S. Restrictions and now they are adding to the economic lack list the eight affiliates of huawei and requiring those that make any business deals with huawei to have a license to use u. S. Equipment if they do business with huawei. Beijing says this is nothing short of bullying, the ministry of Foreign Affairs yesterday saying the u. S. Has been abusing state power in the name of national security. They went on. They set the u. S. Is an empire of hackers and these moves on backfire, according to the ministry in beijing. Shery thank you. Says u. S. Ins relations with china could take a different turn under a biting administration. We were also told the rift between the u. S. And china is creating an opening for russia four russia. Russia. It has become a much closer relationship in recent years. We remember fears over the u. S. China russia relationship forged on valentines day in 1915 and lasted until the 1960s and was a major feature of the cold war. The split created an opening for u. S. China relations to develop. But in recent years, china and russia have become closer, even working out emerging tensions in central asia, the region both countries have substantial energy and other Strategic Interests in. Talked to a professor at Yale University this morning and let me ask you the same question. Is the final result of washington policy, trump policy or biden policy, will they be all that much different in regards to china . Reallythat is a compelling question. What would happen in a Biden Administration is that many concerns the Trump Administration has raised would carry through to a Biden Administration. But the Biden Administration will look for grants to cooperate where it can with so we have continued competition, concerns about Technology Theft and other worries about chinas authoritarian push around the world, but we will find areas where we can work together. There are many global issues that require u. S. China cooperation. You are saying the democrats will be mores sympathetic to china be more shipped you are saying that democrats wont be more sympathetic to china . Or will they find Common Ground on things like trade . Democrats come from a tradition that appreciates globalization as a source of economic growth. A Democratic Administration will look for ways to restore an architecture for International Trade and also look for ways to deal with issues that are important to a Democratic Administration, like limit change. One of the first actions the Trump Administration took was to withdraw the u. S. From the paris climate the cord paris climate accord. So there are areas where the u. S. And china have worked productively in their engagement together has yielded significant benefits economically and in terms of managing Global Threats to human security. What can you tell us about chinese vaccines . There is a global race, russians say they have a vaccine against global 19. I am not sure whether china would use a russian vaccine. There are a lot of questions about adequate testing. China is in a big push to develop a vaccine and i think they are in phased testing of that vaccine. And it is already setting up lands to distribute the vaccine and sell it widely around the world. There are a number of companies in china with hopeful signs of being able to launch a vaccine fairly soon. That was carla freeman, executive director of the Johns Hopkins school of advanced International StudiesForeign Policy institute. School of Public Health at Johns Hopkins is supported by michael bloomberg, the founder of bloomberg lp and bluebird financial philanthropies. We get more on u. S. China tensions with Charles Freeman coming up. Deal finalized, Goldman Sachs completing a 3. 9 lun dollars settlement with the malaysian government over the 3. 9 billion settlement with the malaysian government over the 1mdb deal. Haidi Goldman Sachs and malaysia sign an agreement to finalize a 3. 9 billion settlement over the one mbd scandal. What do we know . This is a big step for goldman in its attempts to put it theb scandal behind agreement was reached in principle in july and with it not formalized, malaysias to drop charges against u. S. In exchange for the settlement which according to sources will 2. 5 billion in cash within 10 days of the deal being signed. Shery what is the implication for investigations by the u. S. Justice department . It would seem there are no major implications. Goldman is said to be near a deal with doj this month that could remove the regulation overhang for goldman as well as a hit to beck capital. When it comes to estimates for fine, Bloomberg Intelligence calculating 2 billion based on fees earned and news reports. Goldman could fork out about 4. 5 billion to cover one mbd settlements, with which the bank prepared for with the boost to litigation reserves. The bank previously said it doesnt face significant risks by providing the 1. 4 billion dollar guarantee of one mbd assets to be returned to malaysia, less than what was sought by a previous government that they time when the Current Administration is seeking fines seeking funds for its coronavirus recovery program. Sophie, thank you. The outlook for oil as markets way rising gasoline supplies and outlook hikes. This is bloomberg. Lets check how markets are trading. The nikkei and topics pretty ix pretty muchp flat, tech weighing on the index. The cost beginning the most about one week, reversing two sessions of lot gaining the most in about one week, reversing two sessions of losses. Gaining. 4the moment percent does the aussie dollar holds steady at 70 more dollars . 29 u. S. Level, kiwi stocks falling the most in about a week u. S. Level, kiwi stocks following the most in about a week. The british pound wiping out 2020 losses versus the dollar, the rally against ringback in positive territory, japanese yen gaining or a fourth straight session. We are watching the aussiekiwi there. We have aussie Dollar Strength but the urgent Monetary Policy sharp gainsueling in the aussie dollar against the kiwi, that rally seeming to run well into 2021, bank of new zealand analysts say they expect obvioun toexpect take negative rates into next year. Korean yuan markets, we are watching more clues on where crew goes from here, opec lust holding a Virtual Meeting later. Lets get to our asia Energy Reporter and start with opec. What are your expectations giving there is so much uncertainty on demand . To walk a very fine line and have been it also are. They brought been doing it well so far, they brought back reduction after really steep cuts in june and july. So far they havent ruined the oil recovery. Demand is still shaky, but the new production they have wrought on hasnt stopped the rally. There are signs, however, that they need to be cautious. Physical prices in asia are starting to fall. Lower than it was this time last year because of the virus. So refinery margins are low. They cant afford to bid on crude. So we expect opec to keep pressure on laggards like iraq and nigeria to make their dues and to make their quotas extrude they keep meeting frequently in case there is a need to respond to make their quotas and they plan to keep meeting frequently in case they need to respond to crises. Shery what are we going to see when it comes to first half earnings . Dan it is going to be pretty ugly. Second quarter, we saw a really rough oil rises that are really going to drag down earnings sheet. Everybody is going to be , tohing production costs make their company more resilient to low oil prices. Andcsx is the first cnooc is the first of chinas first big producers to report. They see demand weakening and rises weakening and the possibility of stranded assets growing. Will that translate to china . You still have a rise in energy cnooc decides to write down assets later next week, that could affect big china companies. Haidi asia Energy Reporter dan murtaugh in singapore, critical days in the patch. Session, theading now space, stellar rally being extended almost 20 extended to almost 20 . Income for the full year 160 million there. We are also watching ands bank anz bank, up 1. 5 , cutting declines to about 25 up to the lender payday reduced evident reduceded charges dividend and increased charges. They will cover mortgages at losses related to slower businesses with the ongoing lockdown and pandemic impact. We are watching a two mill. The stock down 4 dr. Not a bad for its in terms of the china segment, but missing expectations for earnings by 1. 5 . We spoke with the asian milk producer with the milk short whileeo a ago with rising tensions potentially threatening the business between canberra and beijing. Hong kong exchange, previewing earnings with Citi Research director yafei tian joining us next. This is bloomberg. Karina you are watching daybreak asia. Im Karina Mitchell with first word headlines. President trump called off his trade review with china, blanking china for the coronavirus. He told supporters who doesnt want to hold talks and we will see what happens with the faceone writ deal. The planned talks were supposed to be a review the agreement, but it never made it to an official calendar in washington or beijing. Japanese exports tumbled that was 20 in july as the coronavirus weight on global demand. Economists forecast a decline of 21 . Shipments accounted for nearly 40 of the nations economic contraction. With spikes in europe and virus concerns in the u. S. , the trend appears set to continue. The first night of the virtual Democratic National convention to 25 fewer viewers on major networks, as the event proved a tougher sell than a live gathering just over 20 Million People tuned into monday nights coverage, down 2016. It indicates traditional problems competing with nondemand viewing. Hong kong canceled free market stock trading after the 7 00 deadline. A typhoon made landfall, but is weakening. The city lowered the warning to signal eight. It expects to reduce the warning to signal three around 11 00 a. M. Global news, 24 hours a day, on air and on quicktake, powered by more than 2700 journalists and analysts in more than 120 countries. This is bloomberg. Back to you. Haidi the Hong Kong Exchange is to announce second order results today. Bloomberg intelligent forecasts streetsing profit right turmoil in coronavirus. Expects hight Earnings Growth in coming years. ,oining us now is yafei tian Citi Research director and analyst. I want to start with this chart and the Great Expectations comes to hkex as a stock. I am wondering how skyhigh expectations of how it is going to perform, that is not the right chart, but we are looking at multiples assigned to hkex suggesting investors have priced the stock to perfection is there likely disappointment . Yafei thank you for having me on the show. We think this is going to be a solid quarter, mainly driven by aty strong cash volumes, but the same time, a very strong oflook for extended period time, beyond the Second Quarter for a couple of years probably. Valuations reflect strong expectations on earnings going forward. Of earningsgh teens growth in coming years and we wanted to hide late key drivers that highlight key drivers that would sustain that. We look at stock connect volume for example, in a couple of days in this first and second order you already see stock volume going higher than the hong kong dx hong kong ex on volume. We expect stock volume to grow 30 sent going forward. Secondly, we are seeing accelerated adr home coming because of the u. S. China conflict. We have a few highprofile Tech Companies already that have a secondary listing in hong kong, and that trend could continue. There are a couple dozen names in the pipeline. Exe finally, hong kong is winning this, it is one a contract further launch 37 futures and options derivative. This would help hong kong ex to drive revenue and diversify growth and earnings. Have got the chart now, looking at the Hong Kong Exchange being the priciest Major Exchange by market cap compared to steep valuation premiums it is enjoying compared to peers. Is this a straightup china story, and effecting from the coming home of these new york listed adrs . Or is this a potential i for bifurcation of adx as well . Yafei the market needs to realize that with the china story, we are scratching the surface. The connect program was only launched in 2014 and is still young. Tosee there is further scope broaden the china story to widen the number of things that can be traded on connect. Secondary listed stocks. And connect can also be extended into other product like ipo connect, commodities connect, so there is further to go on the china story. At the same time, you rightly mentioned diversification by geography. Hong kong dx wanted to be hong kong ex wanted to become the venue for trading in the region, not just hong kong and china. We are still in the very early stage of that process. The launch of hong kong futures is the first step. He could see regional etfs being launched here as well. Diversification , equities and Derivatives Exchange in hong kong so far end in the future we could see fixed income product. Connect is already there but they were a lot of other initiatives that could be on the fixed income side. Andy what about tech future ipos, how much will they compete with starboard in shanghai . Yafei that is a very good question. We released a report saying hong new stock ofe asia. Hong kong ex has been bringing a lot of major tech ipos after the tech reform to allow inclusion of variable voting rights, to be listed here, and help get secondary listings of Mainland China adrs back. Isi do see that starboard also getting a traction when it comes to the new economy ipos. , is alsokong, yes having a very Important Role to play. I see this also working in a very collaborative manner going forward. Shery the fact we are seeing the hong kong dollar around the band, what does that tell you about fears we might see capital flight out of hong kong . Seeingin fact we are capital inflow based on the data we see. When you look at hkma actions to sell hong kong dollars, it has injected over 100 billion of liquidity into financial markets, suggesting strong inflows. But compare this inflow to the last qe around, the inflow is more modest. 460aw in 2019 alone over hong kong dollars of inflow back into qe, so there are inflows. Is now trending downward , suggesting liquidity is quite abundant for the hong kong banking system. Shery yafei tian, thank you, Citi Research director in hong kong. Dont miss our big interview later with chase next chief li, at 4 00arles p. M. Hong kong. The sce frenzy continues with early air be and to be an uber backer who launched his own Blank Check Company to find the next google or amazon. He spoke to bloomberg earlier. Out as a hundred Million Dollars stock. We had incredible demand. We were many times oversubscribed. We kept it at 200 million. That means we can find they Partner Company out the order of 1 billion. There is this phenomenon happening in the last 18 months 400e stacks have grown from , 600, 800, 1 billion and beyond. We buy so many Great Companies that will be enduring leaders tomorrow, amazons and microsofts and googles of tomorrow. We are looking for something in that range with solid fundamentals. There are not looking or moonshot companies. We are looking for those that have fastgrowing revenue, high margin revenue and amazing management teams and date unique, contrary and space. Ignore whatd not to is going to be one of the biggest ipos of the year. You have been an Angel Investor and a lot of Companies Like airbnb. What is this going to be valued at as it goes public . Kevin it is always good to let the market value these companies. I would just bring it back to, i have been a holder of airbnb for over 10 years and i expect that another 10, 20, 30 years. It is a great company. Im not that interested in with the ipo price is. I am interested it ended busters should be interested in what that business is worth 10 years from now. That is what we are looking or in our stack. We are going to find one of these durable companies and holding onto it read my biggest sin is selling too early. I have learned the hard way the best way is to buy and hold a greatpany company. It is going public in the middle of a covid19 pandemic. How is that going to Impact Investor demand on the front end in a Public Market . Great, Institutional Investors will always look for quality. There has been temporary dislocation in the market. It welcome back. We are seeing a lot of local travel happening on airbnb. The bent bright is seeing a big dislocation from covid. But people will gather together, people will travel, and we are seeing the future push forward faster through covid. Cofoundert right and ceo kevin hearts, thank you. Reviewing we will be a Rate Decision next. This is bloomberg. Haidi quick check of business flash headlines. A2 milk stressing new Zealand Heritage amid rate tensions between australia and china. The new Zealand Company is listed in australia and has had office in sydney has seen search of 2600 percent on increasing sales growth china. A2 milk reports 34 rise in profit for the whole year with sales in china surging 65 . The reputation of new zealand being about clean and great products finding its way into the asiapacific, position us as well as we can to navigate what are clearly political tensions at the present time. Catcherphone case maker is to sell to businesses in china has taiwanese Companies Move away from the mainland amid rising u. S. Pressure. A Technology Company will buy the units wi with completion scheduled this year a transaction valued at 15 alien at 1. 5lars valued billion u. S. Wetv is being banned from a tv service month, declaring both in violation of taiwanese laws. The companies will face penalties for failing to comply. Taiwan faces pressure from the Trump Administration and india over chinese apps. Shery Bank Indonesia maybe cuted to avoid another rate as the pandemic continues to better the economy. Global news and policy editor Kathleen Hays is here. Kathleen they have been hit hard, Bank Indonesia caught between a rock and a hard place. Rateuestion is, after four cuts this year, 100 basis points between them, two of them back to back in june and july taking the rate to 4 , do they need more . The question can be answered by looking at what Bank Indonesia said after the last meeting. It will depend on growth and inflation. Look at what happened tpp hit by the pandemic, gdp contracted for the first time in two decades, down five point percent in the second order. This is an economy used to growing five or 6 on average. I want to talk about tourism. Those numbers came out today. The pandemic has hit a lot of touristdependent countries. The number of tourists going to the secondell 88 quarter, most on record you most on record. From tourism, 3 , down from 50 a year ago. People are going to listen very closely to what they had to Bank Indonesia said in terms of where they go next. Forward guidance is going to be very important today. Haidi how severe is the issue of capital outflows right now . Kathleen it is really some. Worst warmingthe currency in asia, down 6. 6 since the beginning of 2020. That is one reason capital is leaving the country, or vice versa, as capital leaves, they rupiah the rupiah is weakening. Capital flows, the chart quite dramatic. Unprecedented outflows is what Bank Indonesia is dealing with this year. If you look at the white line along the bottom, that is what happened in 2020. Up above there, a spaghetti dish of line from 20062019. This number is so much more severe. This is dramatic. This is punishing. Bloomberg economics points out there is also concern about how the government is going to finance it 2021 budget. Aza going to sell more bonds is it going to sell more bonds . Every country in the world is spending more money, and they say that could lead outflows. Bloomberg economics says they expect more rate cuts this year. Look at growth. No economy is going to bounce back so quickly from the pandemic tourists arent coming back. They say they will help them this year, but not just yet that is what most will expect from the meeting today. Haidi Kathleen Hays, Global Economics and policy editor there ahead of the Bank Indonesia meeting. Coming up, ubs private Wealth Management managing director Teresa Jacobson joins us to discuss Market Strategy ahead of the opening of mainland markets, plus more on tensions between the u. S. And china. That is just about it for daybreak asia. In market coverage continues asia and hong kong has canceled its remarket session. This is bloomberg. But none in beijing and shanghai. Im tom mackenzie. David we are coming down to the open of trade in the chinese mainland. No longer in hong kong. We are getting that announcement. Let me take you through our top stories today. Canceled trump says he last weekends phase one review. He blames chinas handling of the