We have seen strength. It has reached 690. That could mean a path to a level not seen since january. The hang seng up 1. 5 . Take a look at where we are in terms of emerging markets. They are trading higher. 1 shy of a recent losses. The kospi is up. The south korean assets will be watched today as it is expected to stoper restrictions a flareup. Gold down to 1943. Lets get to first word news with Karina Mitchell in new york. Karina President Trump is welcoming a coronavirus treatment that involves blood plasma from corrupt recovered patients, saying it will be expanded to more sufferers after the fda approved its use. This makes it easier to make it accessible. Even though its full effectiveness has not been proven. The fda has concluded the treatment is safe and works. Virushas marked a grim milestone topping 3 million infections as the outbreak accelerates. New cases rose by 59,000 sunday with 57,000 people having died in total. South korea is considering imposing tighter Health Restrictions at the highest level amid warnings the country is facing a massive nationwide resurgence. Australia warns post virus recovery is under threat from border closures. Said almostr 700,000 people are off work after being tiktok in a statement says it strongly disagreed with the concerns that were raised by the Trump Administration. The president ordered a ban on the up in the United States within 45 days. He issued another executive order giving it 90 days to divest its u. S. Business to an american buyer. We know microsoft has been the first publicly acknowledged interest in the purchase. Oracle and twitter are said to be interested as well. No duesays there was process before donald trump put out the executive order. On we chat, this group of users users the u. S. Wechat alliance, they have asked federal judge to block the ban on we chat on what they say users overbe all National Security concerns. The group saying that statement or executive order was vaguely written. There is no concrete evidence it poses a National Security threat. They say it is unconstitutional. I might add people familiar with the matter say the Trump Administration is readily seeking to reassure u. S. Companies including the likes of apple and others they can still do business with the we chat app in china. Companies and lobbyists have complained an allout ban could be devastating for firms that work in china. Beijing valley support to strengthen hong kongs role as a National Financial center. What is beijing pledging . Stephen it is no surprise they want to maintain hong kongs. Ule the biggest is assuaging the fears after implementation of the security law and also of global banks that do business here, that are really walking the tightrope to balance complying with National Security law and with sanctions that have been issued by both sides. The banking regulator in beijing says china will provide support for its Financial Institutions in hong kong, offer services to residents and companies. This statement says hong kongs status as a Financial Center will not be weakened and shaken but it will be more prosperous and stable in the future. They cited again the dollar peg, as ainked Exchange RateSolid Foundation which reflects the confidence in hong kong. We will have to see how this plays out. Stephen engle there. Still ahead, a group ceo joining us in the next hour to discuss earnings driven to a record despite the pandemic. With the Philippine Central Bank governor for his look on rates and the economy. Rishaad Ubs Investment BankPrecious Metals strategist joni on whether investors even could still go for gold. This is bloomberg. This is bloomberg. Haslinda Gold Investors have been tracking the feds jackson symposium,kson hole bullion has pulled back. Part of that has to do with complex messaging from the fed on the u. S. Recovering and guidance on its next moves. Our next guest said underlying views are intact for gold. Precious metals strategist joining us from singapore. Good to have you with us. Are we looking at a bull Market Correction underway for gold and what kind of correction are you anticipating . Sinkhole is in consolidation mode. I think this presents investors an opportunity to build medium and longterm positions. The underlying u. S. Is still intact and another test of the highs should occur as investors continue to build gold allegations as they seek to diversify their portfolios with the expectation real rates will remain negative and uncertainty will remain high. Haslinda how closely are you watching powells positioning and messaging from jackson hole . If he does imply greater above target, where to for gold from here . Originally upgraded our gold forecast. We now think the prices could have 2100 next year. Comments fromd here will be quite important. Our economists are expecting that we do get further guidance on the rates policy, keeping rates at zero for a while at the september meeting. They expect further guidance on qe as well. Any sort of non sort of nod towards those should be supportive for gold. Said, there would be Downside Risks as a function of market expectations, expecting dovish fed outcome especially at the september meeting. To the extent that rates could move higher as a reaction that could present Downside Risk to gold. I think any sort of setback from here does present an opportunity to get in better levels. Haslinda having said that, how much gold should you be accumulating . Gold is seen as an asset diversifier. If you see a selloff as an opportunity to buy, how much should you have in your portfolio . We have done analysis on golds contribution to a portfolio and we have found of allocations, it is around 5 . Obviously that is based on a simple stock bond, so much to depend on the actual investor portfolio. Different sort of economic backdrops also matter. We have found allocation to gold tends to help more during times of recession and the succeeding expansion. Rishaad if we looked at gold since the march lows, it is up. Bitcoin is up over 120 . Has been point taken the shine of gold in some parts . I think these Asset Classes are different. There are parallels in the rationale some investors are attracted to either asset class. As a whole, they tend to attract quite a different market. The advantage of gold is that it has a much longer track record compared to bitcoin and it appeals to investors who are against,or hard assets to protect against currency to basement and these uncertainties. Silver has been the real standout, hasnt it, in the Precious Metals space. What is the key driver of people rushing in when they should not, because gold, silver tends to be Something Like jim tomorrow, never gets there and delivers. Particularlylot of the attraction to silver recently has been on the back of strength in gold prices. The fundamentals dont stand out for silver in an economic backdrop. Has to perform well on the back of gold. Heldact that silver has relatively well even as gold is consolidating here, it does suggest the underlying convention is stronger, such that investors are getting comfortable expressing that beast that via silver as well. Rishaad what is the best way of approaching towards the physical stuff or etfs . That is a good question. Something that investors are asking themselves a lot more this year, trying to figure out what the best way to get that exposure to gold market is. I think it really depends on andstors Risk Appetite what their portfolio looks like and the main motivation for getting that exposure. Even within sort of thinking about getting that exposure by gold underlying, there are questions about what kind of exposure, whether it is in futures or etfs or derivatives. Another thing would be the different costs. Do you see gold and silver slumping once a vaccine is found . There is scope for a kneejerk reaction to the extent this could trigger sort of it much faster recovery in the Global Economy than what we are currently expecting. Ultimately what will matter is how Monetary Policy reacts on the back of that, that allows Monetary Policy to react and therefore what the journey for real rates is going to look like. Thank you so much for your insights today. Still to come on the show, as republicans prepare for the national convention, a new poll suggests supporters like the handling of the u. S. Rhinovirus outbreak. What investors should be watching for as the election nears. This is bloomberg. You are back with bloomberg markets. A new poll suggesting a majority of republican supporters approve of the state of the economy and the governments handling of the coronavirus. They say the u. S. Is in a better position than four years ago with a big proportion crediting President Trump. You can tune in for coverage on the convention tuesday 10 00 a. M. Hong kong time. Electionors focus on risks, they say wall street is more focused on longterm fundamentals been shortterm reaction to the vote. We ask the ceo how markets are viewing the prospects of a biden reticence presidency. There is a big difference between the shortterm reaction and the longterm fundamentals. It is why i think it is the longterm fundamentals that will win out. The markets do better under democratic administrations. That is a fact. I think it is a longterm structural issues despite a nearterm bid on the worries which is going to win out. Longterm we have to look at a bigger stimulus package, whether there is a republican or a democrat in the white house. How are investors dealing with the reality that america will be in so much debt . If you think back historically to the great depression, the percentage of stimulus as it relates to gdp, right now it is reasonable. We can handle it. We know we are on the right track. With stimulus, it needs to be monetary to support us, but ultimately fiscal. We need to have proper spending that will bring returns. Spending on infrastructure, education, correcting Racial Injustice and of course on technology. Spending on all of the trends that have been in place before covid, this kind of spending will drive the kind of growth that will allow us to deal with the death debt we have to accumulate now. Isthe question was how far biden prepared to go. There is lots of questions if he can stay in the center. What freaks you out. Everything and nothing. What freaks me out the most is if we faced Health Crisis, economic crisis, racial, climate, if we faced them with chaos. The reality is if we face with pragmatism, go through the economy and society, it will be resilient. We will get used to whatever the new normal is so that is why in the longterm we can be constructive and hopefully not freaked out. Speaking about making progress, you have seen when biden have brought on Kamala Harris to be the Vice President , a lot of white, wealthy donors had come to her support. I am wondering if a lot of this is symbolic or if we will see firms make real changes at their own ranks as we see the government change itself. I think we are. This is inevitable. The pool of talent that is out there, people of color, women engaged in what is going on, it is inevitable. It is not at all symbolic. You see j. P. Morgan, naming the new ceo a woman. She earned it. The idea of her not having access to information, data, capital, everything is about access. For those of us who see sustainable and impact investing, the idea of giving access to what is needed for progress, you cant beat that. You can feel it. I would love to get your market perspective. What are you doing in a portfolio sense into the election . We are positioned for the longterm. Proper Asset Allocation is the starting point. Understanding your investments objectives, your values, how consistent you want to be. That is the first thing. When we think about the equities , we are our clients, and they are positioned for innovation. You can do that with values stock or growth stock. Was the that Cornerstone Capital founder. Lets have a look at some of the latest business flash headlines. Fortescue metals with a record fouryear earnings, getting a boost from surging Iron Ore Prices. 49 . T up pretty much in line with expectations. Fortescue dividend of one dollars australian is 19 higher than a year ago. This reflects the company optimism. Hna said to be close to a deal to sell to a private equity firm. The deal would value them at 7 billion for talks are continuing and could yet and in failure end in failure. Them for 6 billion in 2016. Some investors have been converting billions of dollars in u. S. Shareholdings in favor of hong kong. This to avoid pressure from washington and delisting of companies. Investors taking advantage of new rules using the switch to hong kong. Breaking news. According to a news the in Syria News Agency in syria, there has been an explosion that has cut off power in south syrian areas. Take a look at where we are in terms of the markets, asian markets in the money extending the gains for today, investors waiting. The policy speech from fed chair powell in jackson hole later thursday. The msa emerging markets index also up. Losses towards erasing for the year. Plenty more to come. 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. California reported its highest number of new infections in a week. Mexico report surging numbers. Goldman sachs says almost a quarter of furloughed workers will not return despite the gradual u. S. Recovery. In the early months of the pandemic, employers shed more than 22 million jobs. Most of those were billed as temporary. Reopening spring many of those back. Goldman sees the labor market deteriorating and says temporary layoffs will become permanent. Saudi aramco is shaking up senior management. It is creating a new position of portfolio optimization. Its up anding downstream operation. Among those having to live with was initially denied the right to travel for treatment. Some time before it is known exactly what happened. Kremlin critics have also fallen ill in recent months without explanation. Yearsonvicted of last mosque shooting in christchurch will be sentenced. The australian gunman changed his plea to guilty in march on 51 counts of murder, 40 attempted murder, and one count of terrorism. The first such conviction in new zealands history. He will represent himself at the hearing. Global news, 24 hours a day, on air and at quicktake by bloomberg, powered by more than 2700 journalists and analysts in more than 120 countries. Asia hanging through those gains. Atestors taking a look divergent virus trends in the world. To afutures pointing higher open up by 0. 3 . The s p posted new record highs on friday. Tech providing underlying support. Csi 300 index also expanding its gains for the day up 0. 9 . It is a big earnings week in china. Greater than average earnings. Life underpricing moves. Up ina up china to chinext up. Shares surging this morning. Breaking news at the moment. Kellyanne conway, one of President Trumps longestserving advisors and Campaign Manager immigrant the the lastanager in election is losing her job. That, at the moment, saying she is leaving gratefully. Leaving her post at the white house at the end of august. Lets get some analysis of what is going on. Thank you very much for joining us. We see stocks going up and up. The market seems to be very narrow. Me, what is the deal . Several days when we had record more sectorsek, were going down than up. What we need to remind ourselves is that the overall macroeconomic context remains. Avorable for the market whoever the winner is in the current market situation, the bottom line is rates are very low. Easing ongoing in the background. It is a good argument in favor recovery in the next 12 to 24 months. I think that is good enough for some wellknown tech stocks to continue to benefit from it. Point we are going to a firmerfirmation of scientific solution to this problem, vaccines and etc. In that case there may be opportunity for the market to start catching up. We are not there yet. What we are paying more attention to is the fact that the prospect of Stable Recovery is still there. The winners continue to benefit area for the time being, we think this narrowness of the market is something that is manageable for investors. News breaking on Kellyanne Conway leaving the white house at the end of august. It does begin to concentrate the mind on what happens november 3. Are you looking at the u. S. President ial election . We work with the assumption the democrats are wellpositioned to win the election. We would not rule out the possibility of a trifecta for the democrats. You know, democrats taking both white house and both chambers of congress. Really meaningful volatility trigger would be republicans to sweep democrats because it is so it is not expected by many investors at this moment. Trigger reflation trade. We saw that in 2015. We think the probability is low at this juncture given polling and overall fundamentals. Is theking case here democrats are favored to win the white house and we would not rule out the possibility of a trifecta. Know, continuation of Market Trends before we have news on the vaccine front, maybe early next year. That is the plan regarding the u. S. Election. Do you see a biden presidency reversing at all . Is there a case for that . We dont think so. We think the democrats are pretty acutely aware of the problems they had in the early part of the Obama Presidency when the fed was lacking Board Members so they were not able to for quite a while. They pivoted to health care, that probably cost them a lot politically. We are pretty certain the democrats will push for very aggressive macroeconomic support packages well into the first term if they win. They will continue to push for aggressive fiscal packages and they will likely reappoint jerome powell. I think there will be a strong respect for the fed easing measures well into the midpoint of the upcoming presidency. And that is in line with the policies pushed by Democratic Candidates during the primary season. That is favorable to midwest industry. We would argue it will continue even if democrats win. Real rates int the u. S. Could respond even more nd 3 is not unthinkable. We think the real Interest Rate prices, the yields on 10 lower than fall even the 1 we are seeing right now. It is the lowest real Interest Rate for 10 years. 3 for the u. K. We would not relet the possibility for the u. S. Because the name of the game is to keep the Interest Rate as low as possible. In the u. S. Political context, negative Interest Rates would be very difficult. As long as they keep that patience, if inflation starts going down due to macrononomic support and vaccine development, the Interest Rate will fall a lot lower than the levels we are seeing right now. Thank you for your insight today. Still to come, chinas fragile economic recovery is on with a default set to reach a record. Details just ahead. Chinas recovery is ushering in a fragile phase. Bond defaults will hit a record this year. Weak to save many distressed borrowers. What have we seen happening in terms of onshore default . I guess it is not a huge surprise we are seeing so many given what is happening on the global side of things with the pandemic. It is not necessarily a huge surprise, but what we did see in this last half is the defaults are curiously quiet. Given the level of strength in the Global Economy and credit markets, it was kind of surprising onshore default fell 17 . What we saw was the borrowers who may have had trouble paying actually managed to avoid default in part because the government was proactively guiding investors and lenders to allow borrowers to be more flexible, to allow lenders to accept extensions on coupons and maturities which were coming due. Firms managed to secure delays in payments. What analysts have said is this cratered an illusory calm masking level of stress companies were feeling. Are investors worried about any particular group of borrowers . We are starting to see a nascent recovery in the economy and there are signs policymakers are dialing back. They want to reduce the risk, too much latitude and the risk of seeing them too much levered. Chunkyrs are seeing a amount of debt by yearend. As per usual we are seeing concern about private firms. These typically enjoy Less Government support and are typically vulnerable to credit stress. We are also seeing concern about smaller companies. Borrowers are experiencing commodity industry related stress. Perhaps most surprising is that we are seeing some anxiety about property firms. The majority of chinas bond market made up property firms. It is really because Developers Need to refinance or repay a really hefty amount over the end of this year and going into 2021. What about the offshore bond market . What is happening there . Well the onshore bond market has lagged in terms of default, we have seen a stark pickup. The base is much smaller. The default we track at bloomberg, we have exceeded we have seen this year exceed 65 . Year by going into the rest of the year, the final few months, what Analysts Anticipate is that pickup in defaults we have seen offshore is actually going to spread into the onshore market as well. That would mean about another 70 billion yuan of default coming in june. A quick check of the latest business flash headlines. Chinese video sharing platform tiktok will sue the Trump Administration monday, challenging the president s executive order banning the app in the u. S. Withk says it disagrees demands it be sold or be outlawed. The Company Claims lack of due process and says it has attempted to address u. S. Concerns months ago. Tiktok says it has no choice but to take legal action. The white house is reassuring u. S. Companies they can still messagingtencents app in china even if President Trump follows through with a ban in the u. S. Comes amid concern that a ban would devastate communications for american businesses working on the mainland. Aple could be worst hit as fifth of its sales come through china. Microsoft backing epic games in his development fight with apple. A court may demand that would force apple to restore certain items to the app store and block it from limiting its ability to provide key Graphics Technology to other firms. Microsoft uses the unreal engine and says apples move would place a game creators at a disadvantage. Coming up, lockdowns to Monetary Policy. The fancy apps for contact tracing. Some countries have been lauded for getting virus things right, but the battle is far from over. The fight to contain the coronavirus continues across asia, india saw infections rise beyond 3 million. Hong kong and taiwan focusing on restocking. Other countries including south korea have been praised for getting it right. Saysberg opinion columnist the war is far from over. Anwhat we are seeing now argument about tradeoffs . What kind of increase in infections is acceptable . So. Ery much you are in a situation where you look, in many instances, not all, different approaches were taken. Didomy is locked down hard succeed in the virus. Reopening toy are a different economic world than the one they began to hibernate in. One of the real differences is what is going on with external activity. Tourism, exports. Economies are going to take a massive hit as people stay home. Both stayed away from work. Seeing the countries that have big tourism exposure really suffering even though they appear to have a handle on infections. Many economies are partially open, but tourism and sectors like aviation and lodging are missing in action. How do we interpret recent comments out of thailand . Thailand is not alone here, but it is emblematic because tourism accounts for such a large chunk of gdp. You might be inclined to think, we have had success curtailing the virus. Our infection rates are low. Our death rates are pretty low. This is all relative, but we are taking a huge hit because people cannot get in here. So what did we do . There has got to be a tradeoff. They made thiss, enormous strategic investment in the tourism industry. Does it all just lie dormant while we wait for a vaccine . That timeline keeps being pushed up. We have to find some sort of middle ground here. It is painful. No government wants to be inused of letting people with but the economic gravity is pushing countries like this toward some form of compromise. South koreas approach has been different from the other countries. It is one way of looking at it. It is easy to have a degree, quite a lot of sympathy, for south korea. They took a very different approach from many countries. They did not locked down hard. The relied a lot on distancing and they relied a lot on contact tracing. And, you know, their economy will suffer among the least. There will be a price to pay, but it will be relatively cheap compared with singapore, malaysia, the philippines. At the end, theres only so much you can do. Something will always come along here until globally we find a way to live with this. Dan moss in singapore. Firey says a natural gas in the plexi will be followed by discoveries. A spokesman spoke cozily to spoke exclusively to bloomberg. This is a major discovery. The largest discovery of any Natural Gas Resource on our continent for shelf in the plexi or the mediterranean region. It is the result of years of work on developing our own capacities for not only energy, but economic abilities to explore, partner with other countries, develop this technology this technical capability. It is also resulted in a different approach to our own geography. For a long time, the famous statement that geography is your destiny was used in a negative sense. Here it has a positive significance. Turkey is surrounded by three major sees. Theave found natural gas in black sea. That is important for the turkish economy. Turkey has been a transit country in the energy sector. Turkey will be an Energy Producing country. That is a new dimension. Justmakes turkey more than a producer of energy, but it puts turkey at a different level in terms of strategic locations, regional, and global effects. Is it for turkey to find more gas in the black sea based on your additional your initial findings . Areased on what our experts telling us, there is a much greater potential it is just the beginning. It was discovered yesterday. It is quite likely as they continue drilling the next few be able toy will make deeper assessment what is available or. Or available there. In terms of drilling, after , there are going to be new exploratory wells in the same region . That is true. We are very hopeful it will lead to other fields in the same area. We will continue to explore in other parts of the black sea as well as in the eastern mediterranean, other parts of the mediterranean around cyprus and other places as well. President erdogans spokesperson. Two exclusives coming up in the next hour. Elizabeth gains coming right up. Keep it here with us. Hike Simon Pagenaud takes the lead at the indy 500 coming to the green flag, racing at daytona. Theyre off. In the kentucky derby. Rory mcllroy is a two time champion at east lake. He scores stanley cup champions touchdown only mahomes. The big events are back and xfinity is your home for the return of live sports. It is almost 11 00 in singapore and hong kong. Here is a look at our top stories. A dramatic surge for the first wave of Companies Listing on the chinext under revamp rules. Fortescue metals rising in sydney. Surging prices and demand from china. Profit rose 49 , joined exclusively by Elizabeth Gaines. Tensions flare even further with restrictions on visas. The latest on this deepening spat. A risk on day. The msci index up. Mulling where to go from here. Ina also grapples accelerating along with europe. The emerging market index currently up by 0. 4 . Just shy of 1 , raising losses for the year. Byonthlong rally hindered concern about the pace of the recovery for the u. S. Economy. O cutting tourneys turkeys outlook to negative. Emerging markets at 0. 4 . Futures pointing to a muted gain. With p recorded new highs tech providing underlying support. The csi 300 index higher by 0. 5 . It is a big earnings week. China braced for greater than average earnings related volatility. Rishaad let us have a look at what is going on elsewhere. In bangkok, the Stock Exchange in thailand opening, just under half an hour to go until we get trade data as well. The prospect of an economic recovery as the government is trying to find a way to reopen borders. Taiwan also steady ahead of this. It was expecting a bigger contraction with regard to the numbers. New york screwed up a fraction. What we are grappling with our two things. Two hurricanes heading for the panhandle. They could at the moment disrupt production. Some of the has been offset by signs of a coronavirus resurgence in parts of asia and europe, limiting gains from new york crude. Eliminating gains from new york crude. With the one being stable again, despite the negative headlines around china, that is a deluge in earnings throughout this week. Where is the yuan headed . What is the driving force . The markets in asia continue to grind higher slowly. The markets are not very healthy. The s p 500 options expired. We could see volatility coming back after the s p 500 made a new record high. I believe the tech sector will continue to support the market and the work will continue even after. It is very hard to argue against companies such as apple that have 20 margins and grow more than 10 annually. I also like to see a broadening of the market. Am optimistic vaccine would be a game changer for the market. Once they make a big turn for the market, the consumers and when virus cases , we will see life coming back to beaten down sectors in the markets. For now the movements are very weak. It is a very narrow market. You may see volatility in trading. We saw volatility in the stock market especially with the kospi, the taiex, premuch driven by tech. Is a tech driven rally really sustainable . The tech sector will continue to be a boon to the market. There is no doubt. The pullback is not expected in a bull market. We may continue to see ups and downs. At the moment, we are seeing economic recovery. In a recession, the recovery is going to be very powerful. In the tech sector, the tech sector will do very well as long the environment is still supportive. Haslinda now for the first word headlines. Sayingnt trump convalescent plasma will be expanded after the fda approved its use. The move makes it easier for patients to access the product which the president has promoted even though it has not been proven. He says the fda has concluded the treatment is safe. Global coronavirus cases have top 23 million with worldwide fidelitys fatalities above 800,000. U. S. Virus deaths grew by 998, the first time in five days the total has been under 1000. California reported its highest number of new infections in we. France reported its largest increase since mid april. Mexico reported surging numbers. Supposed virus recovery is under threat. Almost 700,000 people have regained work after being followed earlier this year, but australias unemployment rates exceed 13 in the coming months. Half a million jobs will be lost next month. Goldman sachs is almost a quarter of furloughed workers will not return despite the gradual u. S. Recovery. In the early months of the pandemic, employers shared more than 22 million jobs. Most of those losses were temporary with state reopening is bringing people back. Goldman sees the labor market deteriorating and says 25 of temporary layoffs will become permanent. I head an exclusive interview with the governor getting his outlook on the economy and rates. Next, our interview with Elizabeth Gaines and how fortescue managed to mine a record profit. Haslinda a quick check of the latest headlines. Chinese video sharing platform sue the Trump Administration monday, challenging the president s executive order banning the app in the u. S. Withk says it disagrees demands it be sold or be outlawed. The Company Claims lack of due process and has attempted to address u. S. Concerns. Tiktok says it has no choice but to take equal action. The white house is reassuring u. S. Companies they can still work with we chat in china even if President Trump follows through with a ban. Officials have pointed to apple and others as a concern a ban would devastate communications for american businesses working on the mainland. Apple could be worst hit as a for the bit sales come through fifth of its sales come from china. Investors are taking advantage of new rules easing the switch to hong kong following alibabas secondary listing. What do we have for the moment, looking at what is going on as far as new zealand goes . This is breaking news. Decided toent has extend the lockdown in auckland to midnight of august 31. That lockdown was going to be moved to a level two, it is actually going to be in place until the end of next month. Until next week, the end of the month. Now to one of the top performers on an index of australias biggest companies. We are talking about fortescue metals. Record boosted by Iron Ore Prices. Oneias the worlds of the Worlds Largest exporters of iron ore. Thank you for joining us. View this strong Steel Production in china is looking to continue to the end of the year . It is always difficult to predict the future. Chinese Steel Production up to 2. 8 year onear year. We will obviously continue to watch carefully. For us, we have delivered record results of continued shipments to our customers with an industryleading cost position and very strong margins. We are focused on things we can control, including our product strategy. We are generating very strong cash flows. Rishaad we have seen relations get beijing and worse. Do you have a plan to make sure iron ore stays above the fray . Elizabeth we have demonstrated over many years we are very secure and reliable supplier of iron ore. We have seen other disruptions to other markets, whether that is south africa or south america. What we are actually seeing is australian producers are demonstrating they are a very reliable supplier of iron ore to a market that is demanding iron ore. We just focus on maintaining that most contact with our customers. We are very strongly engaged with our customers. There is that very strong ongoing demand. How important is china in terms of supporting the Iron Ore Price . Is it front and center . Are there other factors in place here . Well, china is the key producer of steel globally. The 2019 calendar year, china was part of global Steel Production. 2020, that will increase because there are other industries in other parts of the world being more heavily impacted by covid. China is absolutely critical to the ongoing demand for iron ore. Over 50 of crude Steel Production. We are seeing that grow. China is continuing to invest in infrastructure. Their market has made an a remarkable comeback from the impact of covid19. We are seeing ongoing strength and demand for iron ore. Are you concerned bal supply risks with with a volley coming back online . They had an impact to their supply. Prior to that, they were producing 400 million tons per year of iron ore. Production that, this year, they have guided to around 330 million tons. They have seen impact of covid19. That production was there previously. It was impacted. It was that supplyside impact. We are focused on enforcing those things we can control. Our strategy, our cost, delivering iron ore to our customers. It is a function of supply and demand. We are seeing very Strong Demand. Indicated they expect to get back to where they were previously. Project and weg have our iron ridge project. Have iron ore ship in calendar year 2022. We are very focused on our customers, our supply, and keeping the steady so we continued to generate returns to our shareholders. Haslinda is it inadvertent bull that the price gains we saw would be reversed . Elizabeth i never liked to produce predict what the iron ore cost might do. It is a function of supply and demand. We are seeing Strong Demand in terms of increase in crude Steel Production, even just in 2019. Steel production in china reached close to a billion tons. It is on track this year to exceed that. It is a function of supply and demand. We are developing our business, growing our business, so we remain very confident in the long term fundamentals and the longterm outlook. The Iron Ore Price is cyclical. There has been volatility. We are focused on a very strong balance sheet. Being a low cost producer we can continue to generate strong margins through those market cycles. Fortescue isknow exploring opportunities in afghanistan, a market in which it too risky. Em do you see markets like afghanistan giving fortescue a Competitive Edge . Activeth we have a very Corporate Development team and they look at opportunities across the world. Initialthe export tory discussions exploratory initial discussions were around philanthropic efforts. He often talks to World Leaders around philanthropic activities. We will look at opportunities. Risk and security are always a factor in indecision. Working with communities is fundamental to us. We have operations in south america where three years ago we did not have operations. We are exploring drillings in those countries. Wehave said for some time are interested in diversification largely through exploration but in a lowcost manner. Risk and security is always first and foremost for us. There another opportunity on hydrogen . What is it in your Company Looking forward . At aneth we just looked mou with highend a from ability hyundai as well as the need to replace our diesel fuel coaches with Hydrogen Fuel coaches and refueling infrastructure. There are two opportunities. One is as a source of energy for existing operations. We have a very ambitious Climate Change targets reach and a zero zerotions reach net operations by 2040. On the other hand we see the potential for hydrogen to be a major export market for australia in the future. That is why we are working with countries like south korea and japan. It is pretty exciting. We also see opportunities for the export market in the future. Rishaad Elizabeth Gaines, ceo of fortescue metals group. Plenty more to come as we head toward the chinese lunch break. A day of gains for much of the industries. Continuing lower oil prices. It is creating a new position of portfolio optimization to assess its existing outlook and is changing its up and downstream operations. Our emco aramco spending and investment to deliver its promise dividend even if debt searches past costs. An indebted chinese conglomerate is said to be close to a deal for a sale to a private equity firm. At deal would value ingram 70 billion but talks are continuing and may end in failure. Hna has been trying to offload assets since it is in unsustainable debt. Microsofts backing epic games in its fight with apple. For apple toourt restore fortnite to the app store and prevented from cutting off developer tools and limiting its ability to provide Key Technology to other firms. Microsoft uses the unreal engine for games and says apples move would place a game creators at a disadvantage. Rishaad we are going to have a look at what is going on as we see asian equity markets moving to the upside being led by hong kong, 1. 5 up. In china we have a broadbased move to the upside. The shanghai composite a laggard. The chinese economy could actually grow this year if the company does manage to achieve its target of adding 9 million jobs. He called on the country to step up its efforts after the economy achieve positive results in recent months. Also just quickly looking at what we have with the other earningss well, through the course of this week. Also we have companies coming onto the market seeing huge debuts. Seeing 500 gains on their chinext index. Revamped rules remove daily price limit for new stocks. Lets tell you what we have coming up. We have our exclusive interview with the Philippine Central Bank governor. Getting his take on where the economy is now, what the outlook is, as well as of course what Monetary Policy holds for the future. This is bloomberg. Haslinda live pictures of the lion city. 11 30 a. M. In singapore. We are keeping a watch on the gh dollar. You had the government unveiling another stimulus package. We are watching Industrial Production numbers. That might paint a more upbeat upbeat picture of the economy. Look at lets have a some of the first word headlines. The Republican Party is that two lodges were its convention monday. The house of representatives has passed a bill to roll back cuts to the u. S. Postal service. The measure allocates an additional 25 billion for the usps. It had limited republican support in the house. Mass protests continue in belarus as president Alexander Lukashenko warrants of a military warns of a military threat on the border. Protesters gathered in central minsk. Nato officials deny his claims that the west is planning to support a military coup in belarus. The russian Opposition Leader has been flown to germany amid claims he had been poisoned. He was initially denied the right to travel for treatment. His aides said he has been attacked opposing president putin. President they say kremlin critics have fallen ill the last few months without explanation. We have the s p posting record high. 225 up 3 10nikkei of 1 . The hang seng extending gains for the day. Vowing support for hong kong as a financial hub. The Philippine Central Bank kept rates unchanged. Speaking of the philippines, most aggressive rate cutter in asia. The benchmark rate unchanged, calling the decision a prudent one. We will discuss that and more with our next guest. Governor, good to have you with us. How dual how long do you expect this to be in place . We have been the most Aggressive Central Bank in the pandemic. 175ut the policy rate by basis points. 2. 25 . Historic lows of it duringter, we cut the first quarter. , we want to policy absorbs aremarket policy measures. Conceivable you can pause until the end of the year . That is entirely possible. The central bank is always data dependent. We look at the international and national developments. Every time we arrived at a decision. Our next policy meeting will be six weeks from now. And should dependent things continue to be where it policyhink these holdres, 2. 25 , will through the end of the year. Haslinda governor, it is within the authority to cut 200 basis points this year. Under what circumstances do you think you could do that . Early february, the monetary board authorized me to cut by 400 basis points. We cut it by 200 basis points. We are looking at further development. Right now, too much liquidity in the system. There is no need for further cut. Measure addressed sectornew lending to the. We are looking at the developments. There is some movement,. Dditional lending on whether it would be additional need for liquidity, we would make no move between now and the end of the year. Rishaad is the government doing enough in terms of fiscal support, in your view . Good question. I keep saying Monetary Policy is not the only game in town. Government has recently passed what we call an additional stimulus package. I think it will be the agreement between both houses of power and it will be ratified today and signed by the president. I think there is a need for more fiscal stimulus, i think. Are going into the final four months of the year. That additional stimulus will be pesos. Bout 165 billion that will be enough for the year. To talk about the budget for next year, which starts in january 2021. Rishaad it is one of the best performing currencies. Are you happy with it strength . It does not help your export position very much. Is one it is the strongest currency in asia. Stronger than the yen and the taiwan dollar. The strength of the peso, there are winners and there are losers. A strong peso helps us with inflationary pressure. Build. Ws the bsp to reserves. Our things dont change, we expect the Cross International reserves to reach 100 billion u. S. Dollars by the end of the year. On the other hand, there are some losers. Some creditors have left money in foreign currency. The peso is where it is. What we can do is to continue making the economy more competitive and resilient so bet external shocks can addressed appropriately while minimizing the negative effect on the economy. Rishaad governor, the pandemic is something you cannot legislate. When is the economy starting to grow again . Momentum, at some what point in your view . What is the logjam that has to be removed for things to be picked up . Hugee economy suffered a decline last quarter, second quarter. There are signs of recovery in manufacturing and trade. To Production Index improved 19 from 39 in april. Inorts improved from 15 june from 50 in april. Reversed tohina 2. 8 growth. From 55 in april. We are optimistic that we will have a bounce back. We expect the economy to decline for the entire year by about 6 . We expect the economy to bounceback very strongly by next 7. 5 , the same growth in 2022. Toestimate we will be back 2019 level by 2022. Haslinda governor, you talked about how the peso strength is a reflection of confidence in the economy. You be comfortable if would you be comfortable if the peso reaches we do not directly intervene in the markets. Toparticipate in the market secure orderly market conditions, avoid excessive volatility. If that is where the market is going, we cannot know anything about that at the moment, although we tried to avoid excessive volatility. Atlinda are you looking increasing your bond buying activity in the second half . Something already pesos in800 billion the secondary market. For the first time, we will be buying directly starting the third quarter. Buy. Ll continue to but maybe not in the same volume. Haslinda governor, always a pleasure to have you on the show. Speaking from manila. Chinesei is stepping up activity in india. On the growing spat, next. This is bloomberg. Rishaad we have a look at events on the subcontinent with ties between china and india continue to worsen. Announced tieups between indian universities and chinese institutions. How widespread are these new restrictions . What do they tell us . I think they tell us that the tensions between india and china are still very much at the forefront of the indian governments mind. There will be extra scrutiny given to chinese businesspeople, academics, and advocacy groups. You anould give indication of how seriously they are taking these restrictions. There are restrictions on the tertiary sector. Be activities are likely to dramatically scaled down or cut. Measures atmilar what the u. S. And australia have taken. These come on the back of other restrictions on chinese businesses. What else has indias government done . Indias government has recently blocked dozens of popular chinese mobile apps, including tiktok. They changed the rules. All of this follows border tensions in the himalayas between the two countries, which thousands of troops and tanks. 20 indian soldiers and an unknown number of chinese were killed in a clash. Until these tensions get resolved, it seems these kind of restrictions will continue. I guess we need to see what kind of retaliations beijing might make. Rishaad you mentioned the tensions on the border. The thing is, they were trying to get together and have some sort of resolution. Any traction in the talks . There have been many rounds of talks over the last several months. So far, there have been no resolutions to these tensions. Military level talks and diplomatic level talks. There is this ongoing standoff along the border. The deadline to try and resolve those tensions will probably be winter, when it becomes much more difficult for soldiers to operate at that altitude and the himalayas. In the himalayas. Much, ruthank you so pollard. Started justrket minutes ago. It has formed a golden crosshair, some further gains in store if you are a believer in technical analysis. We have the nifty banking index, 1. 2 . Have thai trade numbers. Exports falling. Surplushave july trade coming in at 3. 34 billion. The estimate was for 1. 2. Exports are very important to thailand, along with tourism. Both have been slammed. The pain has been compounded by the strong baht. Weighing on the economy as well. Still to come, we hear from the of the Teachers Retirement Fund about the value of tech stocks and whether that is sustainable. Haslinda gains in asia, according to the s p posted record highs. Tech providing underlying support. The days leading to jackson hole could be volatile. All the money is staying on the sidelines. U. S. Futures, there you have it, positive territory. Public California State Pension Fund saying the tech field rallies may have more room to run. The 250 billion fund is looking elsewhere. The cio tells us why he sees a huge t for tesla, add a those are all doing well because of covid19. Eventually, we will solve the Health Crisis. Then there is the question is, what happens on the others . Microsoft and apple combined are bigger than all of the financial stocks in america. If you look at the 1000 largest stocks and look at value and inwth, back to levels we saw 1990. One of our managers sent me some material yesterday. When you click when you look , this is stuff tom keene used to love. Look at those measures, the u. S. And the whole world, technology is at the 99 percentile of valuations. At some time, you will have a huge reversion of the mean. At some point, when the Health Crisis is solved, we will go and shop at other places other than amazon, just like we always did. That will be painful. It is interesting, growth has been outperforming value, and we keep talking about this value trade back into it. It has been painful that Growth Growth the out that continues to be the outperform or. See the extreme move for a long time. The last 12 months ending in july, smallcap growth had almost double digit return. Smallcap value had a negative return. Diversification, how do we protect the planet like ours, you diversify protect a plan like ours, you diversify. Some of the nonus markets are doing ok relative to the usa. We will be in real estate, fixed income, other strategies besides global growth. Everybody out there that has a 401 k needs to step back and look at their Asset Allocation and not just stay in the largecap growth names. They could run for a while. Roubini is not always wrong. This market is well over extended. Traditional signals telling us it is not sustainable. I am interested in your perspective. Perhaps it is time to look hadide of the u. S. , but we a slowing of momentum with pmi. How much does the dollar factor into how much you want to go abroad . The dollar is a big piece of it. Currency diversification. We are a big global investor. Over half of our portfolio is in the usa but we have been looking at when is the right time to go overweight developed markets outside the u. S. And eventually emerging markets . Emerging markets have been undervalued for about two years running. Once you are out of the Health Market is going to struggle to go higher. You really do need to look at diversification. The concentration for the robinhood traders, those people came in and they will leave just as quickly. Rishaad quick look at markets. Looking at the Chinese Markets and how they settled into their lunch break. Gains across. Up 2. 3 with a flood of offerings on this index, trading under revamped rules. 18 trading forof the first time under these new roles. Anotherne up 507 and one for hundred 92 up. 492 up. Sex. Inda gains for the sensei we are seeing foreign money into india. Boosted by the earnings, betterthanexpected. Down on average about 40 . They have written off the quarter. Rishaad overall, markets, lets have a look at them. 1. 5 as we head towards lunch breaks. All of this amid signs of u. S. China tensions, not really sure. And a speech from jerome powell. The following is a paid presentation brought to you by rare collectibles tv. Our country was founded on life, liberty, and the pursuit of happiness. Representing this idealism is our american eagle. The bald eagle was chosen in 1782 to represent the United States because of its long life, majestic looks, and great strength