Continues in solidarity. We will have the latest. Global stocks rally, and then filing just a little bit as we count down to jackson hole and the highly anticipated speech by the fed chair, jerome powell. Here is the state of play. European stocks a little bit lower, dragged down by rollsroyce, in particular, with record highs throughout the week. 68 basis points. We look at that later in the day, we might get more traction. Space, if you are looking for a quiet complex, it is the currency right now. The movement is contained, the dollar barely halting a loss. Wti, at the moment, just barely below the flat line. High, whereemonth they are looking out for live images from the area to get a better sense of the potential damage that might be inflicted. Morgan stanley says the extent of the impact on oil refining will be evolving in the coming weeks with the risk of higher or extended outages, mandatory evacuations in place in some of the coastal areas. You are looking at live pictures now actually from galveston, texas, the heart of the american oil energy there. The storm could be reaching wind kilometers an hour, 150 miles an hour, seven miles shy of the strongest storm possible matching the previous record breaker all of the way back in 1856. We will keep a close eye on that. The or other stories we are keeping an eye on. Here is laura. Arrest afterwas an two people were shot amid violence among protesters and counterprotesters and police in kenosha after the black man, jacob blake, was shot seven times by police. Emergency. Eclared an the white house is defending a shift in guidance from the cdc. They say people who came into contact with people may not need testing. Critics say this could limit how many tests are performed. Says thisndrew cuomo is propaganda. Tensions over the South China Sea have escalated. Beijing fired missiles into the area yesterday. It was an exercise by the Peoples Liberation army around the same time the Trump Administration roles in new sanctions against Chinese Companies that have outposts in the disputed area. Phil hogan has stepped down after growing criticism he event that is now under police investigation. He was involved in key negotiations. Global news, 24 hours a day, on air and on bloomberg quicktake, powered by more than 2,700 journalists and analysts in more than 120 countries. This is bloomberg. Yousef . Yousef thank you for that. Turning to the third night of the rnc, mike pence accepted his joe biden asasting the end of america and also defending president trumps record on the environment. Themore dramatic events in u. S. Unfolding, including hurricane laura and the Fatal Shooting of a protester in wisconsin, u. S. Athletes from the nba and wnba refusing to play, in solidarity with demonstrators. Us, a globalng cio. As we count down to the u. S. Elections, have you made any changes in terms of your recommendations . That well, putting altogether, that is a real dogs breakfast, and i am not sure we can do that, but we can talk about what you focus on, and i think the focus should be on the work the Federal Reserve has done to convince markets they are going to provide stability and support. And so, as we look towards the this jackson hole meeting is important, because we think it will confirm that support is there, and, therefore, we could see equities continuing to do well, but, really, the next leg has to be a widening out of the equity center, performing as we get some of this economic recovery from the covid situation. We going tohat are get from the fed . The expectation is that we might see rates held at zero for about five years. There is an anticipation we may get signaling about the inflation target. Is the market hoping for too much from the fed, in the coming days especially . Ways, yes. Me in some ways, no. If the market expects the fed is going to say mark your calendars in five years, is the first time we are going to raise rates, that is not going to happen. And chair powell did an excellent job in june, when he told markets that we are not even thinking about raising , in that they have taken the fed at its word there. Theythink, really, what have to do is just continue that message, and certainly, we have things along that line, that they do not see forces driving them towards raising rates. They talked about deflation as a potential risk here, and therefore, willingness, perhaps, to have that 2 inflation target be more of an average target than a ceiling. And i think that is what people are going to be looking for. I look at some of the volatility gauges, and there were some red flags we need to talk about, starting with the nasdaq, because that has gone up with the sharp rise price rises. Get additional perspective, the last time this happened, well, that was in 2018, and after that, we had quite the crash. Should something we worry about, given the sharp upside rally we have had . Onk well, i think focusing equity in one particular index is probably not the best way to think about a market that has seen such tremendous changes, both in the way centralbank policy has changed and also fiscal stimulus has changed so much. Vix, it hasat the fallen demonstrably. I think we are a little bit more post the worst of covid, a little bit more back in the regime where the centralbank action is suppressing volatility. Obviously, the run in the nasdaq has led a lot of people to seek protection around what could potentially happen there, and it is so. I do not think that the mastec alone is the way to look at what is going to happen Going Forward for equity markets, where i think it is going to be based much more on what is going on with fiscal Monetary Policy and the continued coverage from the covid situation. Have seen china fire some Ballistic Missiles as part of a military exercise in the South China Sea among rising tensions with the u. S. We were thinking they were trying to reconcile everything on the trade front. Is that a stronger case for you in the portfolio with gold . The gold, there has been large fall in real Interest Rates. I think that gold is kind of a narrow target, but for a lot of our clients, it is exactly those kinds of unquantifiable geopolitical risks which make them look to alternative assets, including gold. But i think that the china policy is on two tracks. On the one hand, there were concerns about the trade dispute and tariffs. That has seemingly kind of calmed down a bit, while the ongoing tensions around the South China Sea and other, these willr time concerns, those likely continue, hopefully in a contained way, as both republicans and democrats are trying to establish what their Foreign Policy will look like in the future, so we know the has in somelic degree over the past several years developed a little bit more of a negative view on china. Mark, great catching up. A wealth Global Management cio. Hurricaneill get to laura again as it made landfall. The category four hurricane in cameron, louisiana, with flash flooding. I will have all of the details next. This is bloomberg. Economics, finance, politics. This is bloomberg surveillance. In dubai. Ef laura . Of state, secretary says the bank continues to provide help to those sanctioned by the u. S. , and also was affecting people accessing their accounts after the rest of jimmy lai. And some people have reached staggering, new levels of wealth, with jeff bezos with 200 billion. That surge pushed mckenzies got to the brink of becoming the worlds richest woman. Scott to the brink of becoming the worlds richest woman. And that is the Bloomberg Business flash. Yousef . Yousef thank you. Lets go to hurricane laura which could inflict billions of dollars in losses. According to the National Hurricane center, it had wind of 150 miles per hour, the intensity matching a record set in 1856. The market braces for disruption to Oil Production and refining. Lets speak to our bloomberg strategist. You look at the Oil Infrastructure that is in place in that area, and the question is the most vulnerable link in this chain . Well, absolutely. If you look at the path of this hurricane, the one very small comfort you can take from this is it is making landfall between houston and new orleans rather than over the top of one of those major cities, but it is coming ashore in the area of the gulf coast that is rich with crackers, ethylene liquefied natural gas export and two of the four sites for the Strategic Petroleum reserves. And then there is the production offshore in the gulf of mexico. We had more than 1. 5 million productionmexican shut for three days now, but that will start to come back. It is possible that i think there will be significant longerterm damage to the refineries and the onshore infrastructure with the massive storm surges that are being predicted. Yousef and we are looking at live images coming through from galveston. ,n terms of the road forward yes, in terms of what else can ,e expected from the damages walk me through what else you would be looking at specifically . Ulian we would be concerned about wind and water damage to refineries, particularly in the lake charles area, perhaps as far west as port arthur. They seem to be very much in the path of the eye of the storm, and we are hearing suggestions that storm surges could move as far as 30 to 40 miles inland, with water rising perhaps as much as 20 feet. Often,blem is that very it takes a long time for that water to reseed, and that means t the damage to refineries it takes a long time for that water to recede. That could be a bigger impact than any disruption we see, which would probably come back online quickly. Julian lee. Perspective. Your after taking on the helm at a video app company, kevin is stepping down. We have details. This is bloomberg. Yousef you are watching bloomberg surveillance. In dubai. F tok to the markets, a moment reflect for a lot of the key metrics. Stoxx, down 3 10 of 1 , many weighed down by rollsroyce. U. S. Equity futures down. Jerome powellto and jackson hole. What are we going to get . Will the market be surprised by some of it . We have an option, the eurodollar pretty much unchanged, with the whole fx complex quite contained moves, and then wti as we keep a close eye on hurricane laura, currently at 43. 30. New trouble at tiktok. Months after taking the helm, kevin mayer is stepping down as chief executive. Owned by bytedance, trump has come under scrutiny by president trump. The company may face restrictions also on its operations in the u. K. Our reporter joins us on the phone. Some of thegh reasoning behind this sudden departure. Seems very much that kevin thought this is not what i signed up for. Be one of theo biggest social media challenges, and he had some experiences, but he actually ended up being in the middle of a sort of geographic conflict with the political relationship with role is stake, and that not something he was ready for, it does not seem, or that he wanted to take on. Where does that leave the Embattled Company . This is really the least convenient moment in terms of Senior Executive changes. Huge blow. S a it was a massive coup to get kevin. Heir inught he was the waiting, and he ended up losing out to bob. He is behind pixar. He built disney . Lent tiktokt really a lot. Departuree token, his is a huge blow to the company, and a genuine, Global Company with a real u. S. Business, not just an extension of the chinese sovereign. Going to have to leave it there, alex. Alex webb. Abe is set toinzo serve at his term, according to a top aid. There has been a lot of speculation about the health of the Prime Minister in the runup to this. He has made several visits to the hospital, and now confirmation from an aide that there is no plan to cut short his current term whatsoever. The dollar yen a bit of a move, not very significant, but we are above 106. And the story out of jackson hole. Powell. R jay we will discuss that. This is bloomberg. Experience the ultimate sports hub. Where you can find games, news and highlights. All in one place, right on your tv. The xfinity sports zone. Use your voice to search every stat and score. Follow the teams you love. And, even get notifications with breaking news alerts and more. With the xfinity sports zone everybody wins. Now thats simple, easy, awesome. Say xfinity sports zone into your voice remote today. Yousef economics, finance and politics. This is bloomberg surveillance. I am yousef gamal eldin in dubai. For the first word news we cross over to laura hines. Hurricane laura made landfall this morning in louisiana, one of the most powerful storms to ever strike the state. It is starting the region with catastrophic storm surges, floods and devastating winds. Of the storm has shattered more than 80 of gulf Oil Production. Professional athletes protested last night. The move was sparked by the Police Shooting of jacob blake. It started in basketball but has since spread to baseball and soccer. It had an Immediate Impact on broadcast companies. U. S. Regulators ordered some sensitive mainland companies. The vicechairman of the chinese regulators said beijing is wanting to solve the standoff, and that is this link benefit both sides. For all the u. S. Investors who have invested in these Chinese Companies and have made a lot more money than the average market return. It is good for the Chinese Companies as well because they have access to international capital. Listing in new york also helps to raise corporate government standards of these companies as well. It is mutually beneficial and hope there will not be a decoupling. Laura global news, 24 hours a day, on air and quicktake by bloomberg, powered by more than 2700 journalists and analysts in more than 120 countries. This is bloomberg. Yousef. Yousef thank you very much. Having gone to unprecedented lengths to combat the covid crisis, Monetary Policymakers are kicking off a virtual jackson hole conference. Expected jay powell is to speak today. Lets look back at what the policymakers were saying this time last year. We think we have to act as appropriate when we see the economy having a shock. I dont see that right now so i dont think we have to act right now. As i look at where the economy is, it is not yet time, i am not ready to provide markham addition to the economy without seeing provide more economy. Tion to the consumers are confident. Consumer spending is solid. Business investment is weighed down by uncertainty, but it still is not negative in terms of disinvesting. Growth. Have the full per matter, the center of gravity is not Monetary Policy, it is trade uncertainty, immigration policy to some respects. There is reason to think Interest Rates will be lower Going Forward than they were in the past. Yousef that was a year ago. Incredible. A different world. Lets discuss more with Simon Kennedy from bloomberg economics. In terms of the big message, it is hard to talk about the policy review without giving away too much because the official announcement and unveiling is slated for september. How will they manage that . Simon jackson hole has a majorf perhaps announcements. I think jay powell will be able to give some details. Yousef will that include inflation targeting, allowing it to go past the 2 limit . Simon the informal target is 2 . Fors generally the markup most Central Banks. The debate is likely to land on periods ofed in crisis that we have seen, a recession. Do you have to let inflation to makehe 2 over time up for the way they undershot it . Eye was aat caught my bloomberg editorial written about what the fed could do. They are saying that you should be looking at trying to express goals in terms of nominal gdp. In terms of growth and demand rather than obsessing over inflation goals because you prior. Ed to it years what about other highlights from the speakers at jackson hole, what are we going to get . Simon we are getting a sort of tour around the world. May have the European Central bank chief economist, andrew bailey, the new head of the bank of england speaking, the singaporean head will also be there. A good chance for central bank watchers to give some insight into what Central Banks are thinking as they returned from the summer. Yousef simon, thank you for that. Simon kennedy from a bloomberg economics, always a pleasure catching up. Lets stick with jackson hole. We spoke with the Federal ReserveBank Kansas City president Esther George at the symposium. Here is what she had to say. Depending on how the economy unfolds, watching to see how job markets recover, it is going to be a very important component of this. In the months ahead, i think watching the data to see what sectors respond, and i think most important, we are focused on seeing what is the endgame for this virus. Until we know that, that is the fundamental to how the economy unfolds. Beyond that, it is really just speculating and thinking about various scenarios that could affect our outlook. Hasll the stimulus the fed put into the Financial Markets is contributing to asset price inflation. Any worries that a bubble might be forming . Mike, one you know, of the things i have long paid attention to is Financial Stability and being concerned whether in balances could be could be imbalances building. That is the nature of monetary stimulus, it lowers the cost of borrowing. It can create incentives for reaching for yields. Of course, today the focus is different, but i think as we , ith how this unfolds remains as important as ever to keep an eye on what the Financial Stability state of affairs is. For our economy. Mike investor leon kipperman notes the National Debt is rising faster than growth and that will cause problems for the economy down the road. You agree with that . Esther fish if we look at the role fiscal policy has played in this, it has played a role. Fiscal policy to this point has been quick and aggressive, and i think the outcomes we are observing shows that households have benefited from that and so have diseases to a great degree businesses to a great degree. So thinking ahead to preserving the ability of the economy to come back online has to be the focus. The consequences down the road are one that policymakers will , and forace eventually now, i will stay focused on the part i play with Monetary Policy. Michael cohen people in different parts of the country have suggested that the rise of the virus again during the summer months and the end of that 600 stimulus put the economy on something of a holding pattern. Has that been your experience . This summer, watch it is becoming clear that the path of the virus certainly affects the path of the economy, and we see that. Where economies have opened up only to experience some resurgence in the virus. Individuals and businesses can pull back as a result of that. It is very clear that the foundation to a solid recovery will depend on addressing the virus first and then Monetary Policy as one of the support to the economy Going Forward. Michael before i let you go, let me ask you about the feds lending programs. For many of them come other has takeup. A lot of have people in your district been able to get the money they need, or is it a question of they just dont want it at this point . Esther fish i think you are referring to the main street Credit Facility, which would be the one used in this region where you have Small Businesses, small banks. That i think is going to be an important Credit FacilityGoing Forward. First of all, it came online just last month. We are seeing a number of lenders register for that program and began to extend credit under that program. So many think about the pressures that Small Business may be under in the months ahead, i think this could prove to be one of the options that to. Turn Community Banks are very focused on how they will support Small Businesses and other customers thateir portfolio and with kind of backdrop, we may see that its usage begins to rise. Michael how about the municipal Lending Facility . As to . . I think some of the other facilities, minutes of double and Corporate Bond facilities, some of those markets where lending takes place and i think the effect has been by and large that the fed has that facility as a backstop that ended up influencing the pricing for those. So in some respects it has done its job in an indirect way by making Financing Commission easier without actually making the extension of credit, but again, as we see how the economy too,ds, those facilities, may have a different level of take up in the months ahead. Yousef that was the Kansas City Fed president Esther George speaking earlier. Dont miss our interview this afternoon with the saint louis fed president. Yousef youre watching bloomberg surveillance. I am yousef gamal eldin in dubai. Lets get you the business flash with laura wright. Jet in jamaica rollsroyce has suffered a record halfyear loss. It posted a pretax loss of 7 billion after the coronavirus grounded jets all of the world. The ceo says 4000 jobs have been cut so far and a total of 9000 may end up being eliminated. Salesforce is moving to streamline its business. It tells bloomberg it plans to cut 1000 jobs, including sales roles, as a support Software Company reported record quarterly revenue and forecast further gains. Salesforce says it is reallocating resources to petition for further growth. This airport is planning a restructuring that can see the loss of another 600 jobs, a quarter of the remaining workforce. It comes after some of its biggest customers abandoned there. Ons it has already scrapped more than 800 posts. That is the Bloomberg Business flash, yousef. Yousef thank you very much. Petrochina,ne from one of the heavyweights listed in hong kong. Coming through with the first half rfis loss of close to 30,000,000, 30 billion yuan. The Company Operates apart from oil and gas services, from exploration to development, production and marketing. Perhaps one Million People work for petrochina. Year to date, the stock has been under pressure because of the low oil prices. We will keep a close eye on that. Now lets talk about some other important stories, including a white 17yearold boy being held after the local people were shot to death during violent protests wisconsin. They were protesting the Police Shooting of a black man. In teenager was arrested illinois about 50 miles from where the shooting took place. Meanwhile, National Guard troops were sent to kenosha. Protesters have ignored the curfew. Professional athletes boycotted games last night to protest inaction on Racial Justice, sparked by the Police Shooting of jacob blake. It started in basketball but has since spread to baseball and soccer as well. It had an Immediate Impact on broadcasters and sports companies. Joining us with more is derek wallbank. This is the world of sports. The reaction, how likely is it that we will see more take part in this . i think one of the most notable things in answering that question came within the hour when dwayne the rock johnson, biggest was a star on the planet who also found under irma, said they would be delaying the launching of a shoe that would be coming out out of respect of jacob blake and his family. This is an idea that is spreading. There is a very big feeling among a lot of people certainly thate nba and elsewhere there has been a lot of attention on Racial Justice issues since george floyd was killed earlier this year in minneapolis by police and they dont feel like they have had the results they wanted to see. Now they feel like they need to do more. It is unknown how the nba will proceed from here. Legal officials are going to meet later today, this morning, usa time. Major League Baseball has signaled it is going to come back. They have rescheduled some of the games of the or postponed. Postponed. E presse but it is clear that this is an escalation from where we were earlier this year. Yousef derek you have been keeping a close eye on the protests. What is the latest . Derek protests again last night in kenosha, wisconsin, which is a city on the shores of lake michigan, a little bit south of milwaukee. Aere were also protests in bunch of other cities, one i would draw your attention to is where floyd died in minneapolis. The National Guard was called up again to deal with unrest there. There was an incident where there was some misinformation going around about a shooting downtown. Widespread looting, business windows smashed up downtown. The governor of that state is calm. G for in wisconsin come up reinforcements for local Police Coming there last night. Amid all of this, there are also questions being raised about the policing done in wisconsin, namely why the person who was arrested for shooting two protesters was allowed to leave the city and cross the state lines. There are a lot of questions. Yousef of course. Derek in terms of the response, and it is fueling that doubt earlier, which is fueling that additional urgency. Yousef thank you very much, derek wallbank. More lines coming through from hurricane laura, catastrophic storm surge, extreme winds, flash flooding continues. That is just coming across now. The hurricane is moving northward over southwestern louisiana. We are looking at live images, this from galveston, texas. Bear in mind, these are speeds up to 150 miles per hour. Last time around we saw speeds like but in that area was with the lost island hurricane of 1856. Much of the u. S. Refining capacity is centered in that region. Not just galveston, it also freeport and houston are closed. Some 50 billion in insured losses could be assumed according to bloomberg intelligence. A snapshot of what else is coming up our interview with the first black artistic director of lvmh. That is next. This is bloomberg. I found that me being one of the few black designers at the head of a parisian fashion house gives me an ability to lead in that space. Fundrted a scholarship to make sure there are inroads cap for young black designers to work in the fashion space all the way to my show in shanghai largely created by an allblack creative team, to showcase the state of the art and how diversity and inclusivity can lead to great results. Your website also talked about how your advocacy looks different. What does it actually look like . Walk us through that. Virgil indeed. Part of my advocacy is fundraising. Putting dollars where it matters to make sure students are entering the road to having a career in design, fashion and creativity. It that is not all it encompasses. Byot of that is leading example. How i build my collections, how i represent black culture, black dna is important. As well, i am supremely focused on mentorship. I think that there is a critical point in everyones career in order to receive the right advice to sort of a sort of work in the right position. And all those spheres are important to how i approach my advocacy. Annmarie talk about looking askrnally, especially we corporations on bloomberg television, is it time to start implementing metrics . Are you think metrics would work for diversity . Virgil to eradicate systemic racism all tools need to be used. We want to see this at the Grassroots Level all the way to the level that the consumer can feel it to show that we are committed to it. So for me on my hand, i advocate all tools to root out systemic racism . Annmarie has your leadership changed . Virgil i think my leadership has changed. I would agree with that statement of me being one of the foremost figures in design as well as being a black male there is a unique opportunity to see, to be a leading voice and lead by example. My Postmodern Scholarship Fund was announced as my wide sweeping effort to tackle that andalso roll up my sleeves showcase the work that i have believed in since i started. So i welcome the challenge and i am taking it to heart . Haverie virgil, you collaborated with the list is just ongoing nike, evian, ikea. Then you have the personalities candy west, Serena Williams kanye west, Serena Williams. You also have shows. You also d. J. [laughter] with a resume like that, what is next for virgil abloh . Virgil what is next for me is eradicating systemic racism and showing how inclusivity and a positive mind can be at the forefront of creative business. Yousef that is virgil abloh, director of Louis Vuitton menswear, speaking earlier. We are getting more news from hurricane laura. We understand at the National Hurricane center, it has actually weakened to a category 3. Originally, it was a category hurricane. Official lines from the agency that the storm has weakened a little bit as it made landfall, just short of the records we have seen in the past. Futures are positive for reflection. Plenty more ahead. This is bloomberg. Is bloomberg. Hike 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. Expect anything different . The big events are back and xfinity is your home for the return of live sports. Tom this morning at jackson hole, chairman powell could distill gifts on the market. Morgan stanley looks for a weaker dollar. Michael mckee will not be having his game day mountain man breakfast at the acclaimed pioneer grail. In this jackson hole, it is a virtual jackson hole. Wins the mosta, grievous sins 1851. And a you will not be safe in joe bidens america, so says Vice President pence. And a football coach in notre dame says mr. Biden is catholic in name only. Good morning, everyone. This is bloomberg surveillance. I am tom keene. Anna edwards is in for francine lacqua. We appreciate your long day here in bloomberg surveillance. Stimus