A substantial fall in secondquarter gdp. Raise to succeed shinzo abe heats up with a long time i lay set to announce his plans. Allys the a longtime set to announce his plans. Taking on the set up from markets this wednesday morning. We are seeing muted price action so far with futures edging higher. The nzx 50 adding 4 10 of a percent. This after the tech that the tech lead rally that saw the nasdaq pushed closer to 12,000. In australia, stocks may edge higher after the worst job worse drop in month. A decline was on positive building data. Checking in on the aussie dollar ahead of the Second Quarter gdp reports. Holding below 74 but still near a two your high. Offshore yuan holding a three year again. The value may test the pbocs tolerance. Check out the euro back below 120 after reaching that level for the first time in two years after the ecb member philip blaines remarks the level does matter from i terry policy. The dollar rebounded from a two year low. As u. S. Markets and tech shares fly closer to the sun, investors or in of getting burnt. This chart on the bloomberg terminal showing the faang stocks looking overbought. Joining us to test the valuation waters is the chairman and cio of cumberland advisors. Both continue to drive stocks higher in this environment we have with tech leading the way despite warnings of bubbles over narrowing market breadth. Rich . Luations looking we watched this remarkable rally in tech stocks. We all ask ourselves the same question over and over. How extended are valuations . Then we see reports of earnings and there are positive earnings surprises coming from the tech companies. That would suggest if that momentum continues, that in fact, they are not yet overvalued. It is a very difficult chart course to take foreign investor today. Sophie what speed bumps could be ahead for tech . Issue i was not sure i did not hear you completely, that i think the issue is what to look for and when to make a change. There is a great difficulty for investors if they did not get a position. If they have a position, they are letting it run. That is what we are doing. If they do not have a position, they do not know how to deal with a valuation question here. That is very difficult. My suggestion would be, wait for a pullback if you get one before taking that position. Loved what about the less parts of the market . Is it too early if you are a longerterm investor to start thinking about positions . David that is the hard one. To look beyond the pandemic. No one knows when we will have vaccines. That will be curated. We will get treatments. We are not sure of that. The assumption is within a year or two, that is going to happen. If that happens within a year or two, then a lot of this upward movement in the stock market is potentially very robust. Index with earnings coming from these companies that would support this highpriced. We are reconfiguring the way we are doing business. It has huge productivity potential. That is going to be realized. The virus treatment is the unknown piece. China and u. S. Tensions are also the unknown piece. We continue to see u. S. Exceptionalism because of the heavy weighting of tech. Change as youn to see the likes of ant financial moving towards Chinese Markets . Is that going to be more of the dominant theme and could american investors miss out on that . David i think that is the major question that confronts the investor class now. I am watching this new offering the ipo of aunt, american ipo of ant, american investors will not be in it. We have this evolving relationship with china, which is troubling all the way around. Close, i think when you Capital Markets and you have these back and forth penalty situations between these economies and Capital Markets, everybody loses good now there is in it everybody loses. There is an issue in the security system. There lies a cutting edge question without an answer. I on view is my own view is in negotiation is a better way to handle things then ultimatums and bullying. I am sorry to see the u. S. Is busy doing the bullying instead of the negotiation. Ipos we are getting the latest from bumble. A 6 said to be preparing billion plus ipo, talking to banks about the potential listing. More impetus when it comes to the tech value potentially. Want to highlight what is going on with volatility. What are you making of the recent dislocations we are seeing from stop gauges and option markets . Demonstrating those we are seeing hectic activity when it comes to call options. David i look at the Options Market and i look at it very carefully because the Options Market is giving us an indicator that is difficult to read. Some of the options, which election,ore the u. S. Have price characteristics, which are unusual compared to those that expired after the election. In the distribution of option prices, there is a premium developing and it is being used to hedge the outcome of the election. The option prices can be giving it distortion from normal because of the election and because of the maturity schedule within those options. It is a very difficult thing to read right now. Bumblesoing back to planned ipo, that valuation, 6 billion plus. What you make of that price tag . Do you expect more from that sector in terms of sales . Have the depth of skill on the specific pricing of the ipo. I have been reading about the amp ipo because it can compare u. S. Thatnies in the are in payment systems. Enough anot good expert to answer you in detail on that one. Haidi very quickly, we are seeing a trend toward direct listings. You have viewed do you have views on either or . David i had trouble again hearing you. I am sorry. Haidi we have seen this flurry of companies preferring to go with the direct listing route rather than the ipos. David that depends on the ipo. It is an idiosyncratic question. We have to answer it one at a time. The real question is, how do you price ipos in this environment and how do you price the companies when you have these differences in Capital Markets and how do you do it when you exclude large pieces of the Capital Market from entry or participation . This is a new kind of world. Controls. T the export in the tiktok transaction. I looked at the decision about ant to be in shanghai and hong kong and not participate in new york. Such turmoilseen and bears are behavior . And bizarre behavior . I cannot recall it. Pricing in this environment becomes difficult because the forces that are at work are bigger than just the company itself. A very difficult task. I am not helping you much. Im sorry. It is the best i can do. Haidi no, very interesting. We appreciate your time and your thoughts. , chairman and cio of cumberland. We will get more analysis on the market. Taking a look at chinese equities. We are joined by ubs head of strategy. 11 30 a. M. In hong kong. Get you the first word headlines. Karina thank you so much. Aberace to succeed shinzo is heating up with the veteran secretary cabinet expected to announce his candidacy later wednesday. He has become the favorite after the ruling ldp developed a voting system. He is seen as winning support across the party ahead of the former defense minister. Here in the u. S. , joe biden is expected to report record fundraising last month with the election weeks away. Democrats raise more than 3 million in august following the nomination of kamala harris. The Campaign Says it has pulled in 48 million after her announcement. Previous record was 193 million by barack obama in september, 2008. China is warming as winning relations with the u. S. Are facing difficult problems. Saying that hardliners are increasingly driving policy. The Foreign Ministry in beijings the u. S. Going to Great Lengths to portray china as a rival. The embassy tweeted the u. S. Is resorting to every possible means to suppress chinas development. Relations between china and nvidia seemed to worsen and india seem to worsen. Inia has moved forces response to provocative actions by china. Beijing says it is taking all necessary action without giving any more details. Local military commanders have held talks and more discussions are expected. Global news, 24 hours a day, on air and on quicktake by bloomberg, powered by more than 2700 journalists and analysts in over 120 countries. Im Karina Mitchell. This is bloomberg. Still ahead, anz readings. Emily texas through the analysis. Of next, the pentagon warns that builduplack of military means it is closer to russia. This is bloomberg. Haidi the pentagons annual dennis report says that Bloombergs NationalSecurity Team editor joins us from washington for more. The pentagon report really putting this out on chinas growing military capabilities. This report shows in the longerterm, we are going to see some highstakes in this already complex relationship shared with all the other pleasures all the other pleasures, this adds to the mix substantially. Theme thated the big we saw in this 200 page report. The big theme this year is they are approaching the full land, sea and air triad of nuclear capabilities. They also are predicting that china will continue its buildup. They say it has about 200 Nuclear Warheads now and predicts doubling that in a the analysis says is more than china needs for the court, minimum deterrent it describes as its goal. What do asset analysts say of these findings . Larry it is interesting. To forf, who we talked the Congressional Research service, so it is a nonpartisan analyst arm in washington, she called it something of an alarmist view. One thing she points out is when it comes to the u. S. And the soviet union and now russia, a triad is seen as something of a reassuring approach in that you do not it is stabilizing because it reduces a vulnerability that a Nuclear Powered country has against retaliation. It may lower the temperature. Sense thathere is a andre still talking about out of context comparison. The director of the Arms Control Association said the estimates still leave you with russia having a much larger and more dangerous to the u. S. Arsenal than china. They are talking about china having 400 warheads eventually. 3800 and russia has 4300. A little perspective on where china stands as a nuclear power. Perceptions the that come out of this report, does this give impetus or add fire to those in america that say the country needs to modernize its own Nuclear Force . Larry yes, and i will emphasize this report has lots of detailed information. It is done by intelligence and military intelligence experts. The chinesey government will say this it is not purely a propaganda document. It is studied by both sides. It cannot be removed from its context. The pentagon is always seeking funds. I need this case, funds to monetize its entire nuclear triad. And of course, the chap administration has many conflicts the Trump Administration has many conflicts with china. In terms of nuclear weapons, the Trump Administration argues that russia should agree to allow china into any talks on extending their nuclear agreement. There is a lot of context this plays into. A report one assumes the chinese experts will be reading seriously to determine what the u. S. Knows and what it claims. Larry, thanks to bloomberg National Security team editor. We will have more analysis on Bloomberg Markets china open with Cornell University associate professor of government. Up, a week after two protesters were fatally shot, President Trump is headed to kenosha, wisconsin. We will get you the details on his controversial trip, next. This is bloomberg. Hie President Trump during a controversial trip to wisconsin. He visits kenosha where protests erected after the shooting of jacob blake last week. You can take the people of kenosha who are not here and you will not see and who are not protesting, but they want change also. They want to see law and order. They want a great police force. They went people that are going to keep them safe where their houses are not broken into. Where they are not raped and murdered. That is what they want. Traveledhe president despite pleas from the state governor and mayor for him to stay away. Trump continuing his message on law and order we saw at last weeks republican convention. What is the take on his visit . That is right. What is remarkable about this is you have the president going through cities that are still raw with emotion over the killing of jacob blake and these violent protests that took place over the weekend. Seeing the president insert himself and use it as a backdrop for a political campaign. Not doing a lot to heal the communitys wounds or calm the tension. But rather, taking sides with Law Enforcement and driving home his Campaign Message that democrats are the ones who are responsible for this upheaval across the country. From the are hearing Vice President mike pence, speaking in a tv interview saying the jacob blake situation is a tragic situation under investigation. The probe needs to be played out and also sang there is no excuse for also saying there is no excuse for rioting and looting and for what happened to george floyd as well. Given this narrative that the Trump Administration is pushing, what do joe biden supporters, what are the democrats saying and are they concerned about a potential narrowing of that lead . First of all, it is interesting. I was listening to the interview before coming on the air. Vice president pence mentioned jacob blakes name, which is something the president himself did not do today in kenosha. It shows the extent he is willing to force this Law Enforcement issue. There are Democrat Supporters of Vice President biden who want to see him get out there more and be more front and center in the campaign in general but also about this issue in particular. You sell him delivered the speech earlier in pittsburgh where he condemned the rioting and also the Police Violence we have seen that have triggered these police killings. Of the senior advisors [indiscernible] youre going to see a different message than what the president is offering, which is this onesided support for Law Enforcement and skirting around the issue of racial inequality and police tell he. Police brutality. Mnuchin signaling more stimulus. What industries could see the least . That is right. He was speaking before congress today. He sends a signal the administration does want to see another round. He mentioned the Service Industry and the Service Industry and airlines are having a tough time recovering just to keep the business alive during the pandemic. He talked to Speaker Nancy Pelosi earlier today, earlier this afternoon. We are seeing some momentum get behind the talks around a phase four stimulus. After that has been on hold for the last few weeks in washington. It seems the administration does believe this next round will happen, that the economy needs it and perhaps the recovery could backslide if it is not given. Haidi finally, the latest on tiktok. The president is insisting any sale that happens must mean compensation for the u. S. Government, notwithstanding the fact that we do not know how legally that would play out. What are we hearing from the white house on this issue . We are not hearing a whole lot. They are refusing to clarify what exactly the president means. Sometimes when these transactions [indiscernible] businesson transactions. There is a Fee Associated with that. The president has talked about that he wants Something Like billions of dollars for the federal government. We have not heard a white house official come forward and say what he means by that or how that would happen or even if it is legal. The president keeps mentioning it. It is possibly a stumbling block to the deal. We have not heard that. Whether that is a redline or whether the companys do need to hand over the money. Know, thefar as we midseptember deadline is still in tact notwithstanding the complications. That may mean approval from the Chinese Government will need to be sought for these ai algorithms to be part of the sale. We will have to leave it there. Our white house reporter, jordan fabian, joining us from washington. Another euphoric session when it comes to the s p 500 hitting another record high. It is that same old story. Tech continuing to drive the rally. We are seeing upside at about four tencent 1 for trading in new zealand. A little bit of upside. Restoring to see the greenback we can after raising losses and recovery among most of the g10 basket overnight. Coming up, the latest on japans situation. The ruling party adopting a voting structure that would boost the chances of shinzo abes top aide to take over. We look at the cabinet secretarys prospects next. This is bloomberg. Sophie you are watching daybreak australia. Im Karina Mitchell with the first word headlines. Theres a new warning about the u. S. Economy with fed governor lyle reynard saying there is considerable uncertainty ahead. She told the Brookings Institute that america will need continuing support from the fed and policymakers in washington as the economy tries to recover from the pandemic. She said Monetary Policy must pivot from stabilization to accommodation. President trump has saluted the police force and the National Guard during a controversial trip to wisconsin. He visited kenosha where protests erupted after the shooting of jacob lake last week. The president traveled despite pleas from the mayor and city away. To stay he talked for the need of law and order and sidestep the racial issues that sparked the protests. President trump also confirmed tic toc must sell its u. S. Operations saying the u. S. Should be compensated from the deal. He repeated the sale must happen before september 15, or he will close the video app down in america. It remains unclear how the u. S. Would collect compensation from the sale of tiktok, and with china imposing rules on the transfer of technology. Distant. Remains washington says chinas Rapid Military buildup means it is close to joining the u. S. And russia as the top nations capable of deploying nuclear weapons. The report warns the advance puts it on the verge of being able to achieve deployment on land, at sea and in the air. The report expects china will double its forces in the next decade. Global news, 24 hours a day, on air and on quicktake by bloomberg, powered by more than 2700 journalists and analysts in over 120 countries. Im Karina Mitchell. This is bloomberg. Sophie thank you. The race to replace outgoing japanese Prime Minister just shinzo abe is likely down to three candidates with abes righthand man appearing to be the front runner. Our correspondent Stephen Engle is tracking the developments and joins us from hong kong. The field is narrowing. Why is this the case . Stephen it looks as though the partys stalwarts are gathering their ranks in it is tilting it toward the chief cabinet secretary and the right hand man to shinzo abe. The ldp, the ruling party yesterday, adopting this internal voting structure that gives weight to the more powerful factions within the party. That limits the influence of Regional Party factions. The system essentially gives more weight to lawmakers in the party over the rankandfile members, unlike in 2018 when the rankandfile members had equal weighting in the internal vote. That favored someone like sugar oishi but. He won the rankandfile vote in 2012 against abay. But abe won the overall vote within the party. As we know, shinzo abe went on to become Prime Minister for a second time in 2012. That is where we stand now. Is fars as though suga ahead of the other candidates because of how those internal factions stack up. Is it a foregone conclusion that he will be elected . What is the implications for the popular vote when we get to an election sometime next year . Stephen we dont necessarily have to have a general election until the end of next year. There will be another Party Leadership vote in september of 2021. The two individuals who dropped out this time, the defense minister, as well as the former internal affairs minister, notable because she is the top female within the government that is often seen as devoid of female leadership, they dropped out possibly opening the door for them to run for the next Party Leadership election in september of 2021. What we are having right now is tellingetarygeneral reporters that the party needs to act quickly. They want to avoid the political vacuum. That in essence is favoring suga. He is seen as a continuity candidate and in the likely choice of the powerful factions. I went to mention that the third wheel is kishida. He also declared his candidacy yesterday. He is a former banker but has very Little National profile and he is seen as more dovish than abe. He runs his own faction within the party. Only has 47 members. That is the fourth largest. Minister whoinance is in abes inner circle, they have the two largest factions. Already, we are seeing those are stacking up in favor of suga. The cars are really stack against the other members, is popularishiba who among the populists but not within the party. He leads the faction with 19 members. Really, as i say, i will use a poker analogy, the cards are stacked against ishiba. Engle, our north Asian Correspondent with the latest. Downgrading expectations for australia secondquarter gdp reading. We hear from senior economist Felicity Emmett. She will take us through the analysis and the outlook for the rest of the year. This is bloomberg. Rest of the year. This is bloomberg. Haidi haidi lets take a look at our market, how they are shaping up as we hit the midweek session. U. S. Stocks setting another strong lead overnight with another record high when it comes to the s p 500. The nasdaq one short of the 12,000 level as the tech rally continues to drive the exuberance. Chicago and nikkei futures as we get the leadership, heating up. Upside of. 3 . Over in seoul, kospi futures are looking like a positive start to the day. 1. 2 higher. In sydney, we are awaiting second corded gdp numbers. Looking like an ugly print. Estimating a 6 contraction quarter on quarter over a 5 contraction year on year as australia looks for confirmation of the first recession technical recession in 29 years. We are looking like probably upside of. 25 going into the start of trading. In sydney and new zealand, we see trading underway with moderate gains here on the benchmark. Getting back to australia, there is more than the usual level of uncertainty around the gdp. They are expecting quarter on quarter disc decline of 7 . The Bank Senior EconomistFelicity Emmett joins us. Uncertainty is the name of the game from an earnings season where you have virtually no company is able to use Forward Guidance to what the economy looks like if we face this fiscal cliff. What is your best estimate as to how the economy can recover given we are seeing virus numbers down, but restrictions likely to stay on . Look, i think it is going to be a really challenging outlook, as you say. Enormous uncertainty, just around todays number. We have never seen the likes of these declines previously. This is the largest decline since world war ii. Makes it verytude difficult to be certain. I think looking ahead though, some of the numbers today will give us a little bit more understanding as to how the economy behaved in the Second Quarter. So what that recovery will look like and how it might manage that fiscal thing that seems to be emerging in the Fourth Quarter. Thei how helpful was recalibration this week in expanding that term funding facility, in terms of this being a narrative where we keep saying we are expecting more heavy lifting out of fiscal Monetary Policy reaching the limits . Felicity yes, thats right. I think the rba wants to do whatever it can to help the recovery. But i dont really think it is the price of money at the moment that is holding back the recovery. It is uncertainty about the path of the virus, and about future income. I think below has been on the money when he has said to the government, this is about jobs. This is about creating jobs. So i think the pressure will really be on the government, particularly for its october budget, to come out with something very substantial. Both in the nearterm for the Fourth Quarter where the stimulus is dropping off sharply. But also for the more mediumterm. And perhaps the states will have to step in with more spending there as well and on the infrastructure side. Sophie what more stimulus can be expected on the fiscal side of the equation . The government wants to avoid negative growth. Felicity yeah, thats right. They have lots of options. We expect they will probably bring forward the tax cuts that are currently scheduled for 2022. We also expect that there is a good chance that they do another checks in the mail, household Stimulus Program that might be worth 5 billion or so that really helps people that are affected by the downturn in that prechristmas period to go out and spend. Also, there is a lot they could do on the infrastructure side in both state and federal. But the federal government could certainly there is a large renewable projects that they could help to support at social housing, a number of programs that i think would be helpful for them more mediumterm growth path. We saw the aussie dollar see a little response to the rbas update. Are there any expectations for the central bank to rein in the pain point . Felicity look, the rba i think is an easy about the aussie dollar is uneasy about the aussie dollar. But it has on a number of occasions acknowledged that actually, it is reflecting fundamentals given the iron ore prize in particular in Commodity Prices in general for australia remain relatively elevated. So it is very hard for them to say it is mispriced. To they would clearly like have the currency lower to help support the recovery. Mightdays announcement help a little bit at the margin. But as you say, there was not much response. Is prepared to step in with further measures. And i think it is a little bit under pressure given its approach in terms of this yield to control has meant it is not in the market quite so much buying bonds as perhaps more fewer of easing programs like the fed, where they are in the market buying bonds. The rba, so far, has been a little bit reluctant to go down that path. But i think over time, it will be forced to and the currency may be the thing that forces it down that path. Haidi in the meantime, we see australiachina tensions. That relationship continuing to unravel with the journalists detained. The news coming out this week. How concerned are you that australia can forge a meaningful recovery while that relationship is in such a bad place, particularly as we continue to see this two speed recovery with the Real Alliance being on chinese demand for our metals and Mining Sector . Look, it really does seem a two speed, even in terms of the relationship. Clearly, they are our biggest export market. Producersf those wine are barley producers or beef producers that are affected, it is an enormous impact. More broadly, at the moment though, things are tracking ok. And the Chinese Government is definitely using infrastructure stimulus to help to stimulate china out of the coronavirus whole hole and generate growth. That is helping on the iron ore side. They are likely to continue to demand our iron ore which is clearly a big part of our exports there. It does mean, though, for those other exports, certainly a lot of uncertainty. And that is just going to add to the uncertainty about the outlook, and certainly, it is something very worrying. Geopoliticalof issues are very difficult to predict how they are going to end up at the moment. Question marks remaining. Emmett. U to felicity tesla makes the most who its Retail Investors investors appetite for their stock and unveils the plan to sell up to 5 billion in new shares. Dont forget, if you are away from the screen, you can find indepth analysis and the days big newsmakers on bloomberg radio, now broadcasting live from our studio here in hong kong. Listen via the app, radio plus, or bloombergradio. Com. Plenty more ahead. Stay with us. Stay with us. Following itsis stock split market record with news of a share sale of up to 5 billion. Su keenan has the story. Tesla plans to use proceeds to strengthen its Balance Sheet. Tell us more. Su a plans to shorten the Balance Sheet and also to fund growth. This as tesla plans to double its factory count. While the shares fell in the latest session on the news because they shares sale is actually going to dilute value, if you look at the stellar performance of the stock near to date, its race to record highs as has because the market value to rise 12 fold since last september. The five for one split that took effect monday pushed it to a fresh alltime high. If you check into the bloomberg in our library of charts that can be found at gtv, you can see that tesla is now larger by value than every other automaker in the world. Ford, gm, toyota, you name it. Tesla is taking advantage of the fact that it has such a large market cap. As well as the fact that Retail Investors have a huge appetite for its stock. So it is planning to raise money by as much as 5 billion in share sales from time to time to a group of banks, according to a regulatory filing. Tesla is also expanding factories in austin and germany. Analysts say this is actually a smart way for it to raise money. Meanwhile, in an unusual phenomenon, i love this story, amazon delivery workers are hanging up their cell phones in trees to get a jump on rival drivers peered what is the story here . Su yeah. This is innovation at its finest. Just like milliseconds can mean millions to hedge funds that use robo traders, these smartphones perched in a tree can be they key to getting a 15 order for a delivery ahead of anyone else. A lot of people familiar with this began noticing it in the summer outside of chicago. Amazon delivery stations and whole foods stores in the area have trees next to them. A lot of the delivery drivers have been hanging their phones from the trees. Apparently the way it works is that the phones proximity to these mobile stations and the dispatch actually gets them the order with a split second advantage. And these delivery drivers are thoroughly taking advantage of it. All of it underscoring the ferocious rivalry we are now seeing in this gig economy in what has been a very weak economy, we are now seeing double digit unemployment and many are turning to these gig jobs. And whatever advantage they can to make money. Back to you. Haidi su keenan there without extraordinary story about amazons delivery competition. Shares of zoom video communication surged in the last session. The company crushed wall street estimates of the quarter and provided guidance that was well above analyst estimates. The cfo spoke with alix steel and guy johnson about how zoom is keeping up with the surgeon demand and its hiring both internationally and within the u. S. We have been hiring as quickly as we can. We added 500 new employees in q2. That was a Record Number of hires for us and a quarter. Also, we have amazing partners in terms of meaning the capacity that we needed to support this increased demand. We have been leveraging the cloud to aws and oracle which have been great. To the it also speaks reliability of our platform itself. It has been able to stretch for the increased demand. Alix how much more can you ring space . Video conference how do you grow in that quickly and who do you think are your main competitors for that . Kelly the great thing about zoom and what i think, especially our enterprise customers see, is it is a consolidated prop par 4. We have our four meetings platform, which is the way most people get introduced to zoom. We also have a whole suite. We had our webinars product, which we have seen growth in. We have zoom phone which we launched last year, which is our cloud solution. We also have the room, our Conference Room solution. So we have this great opportunity for customers to come to us and get this integrated suite of products. We are excited about the momentum we see across all aspects. Example, is now available in 40 countries around the globe. We had our largest deal to date there in q2. Largest deals were outside the u. S. Seeing tremendous traction internationally. Had anmeeting side, we amazing deal with exxon mobil which was our largest initial deal to date as well. So really excited about the traction we are seeing, not only across all segments of our business, but all of our product lines and internationally and geographically as well. Guy lets talk big picture. You you are rebalancing your Engineering Team away from china. To what extent with what is happening with tiktok influence your thinking there . Kelly first, i want to highlight that zoom and tiktok are not similarly situated as it relates to china, in that we are american we are an American Company that was founded and based in the u. S. I would say that what we are doing is looking for an opportunity to augment our existing Engineering Team in china. We have our leadership steam for engineering in san jose. It has always been there. We are looking to further diversify the talent of that amazing team i adding resources not only in the u. S. , but also in india. It will also help us ensure that we have a follow the sun approach to continue to support the growing needs of our customers around the globe. Alix so is not a fancy cfo way of saying that yes, you will reduce your employees in china because of the ties . Kelly we have absolutely no plans at this point to reduce our engineering talent in china. We really are adding to it. If you look at our financial rebuild for q2, you will see r d is a percentage of revenue is 4 . We really wanted to be higher than that. We want to continue to invest in r d resources around the globe to ensure we are able to drive innovation needed for our platform. We want that number to be much higher than 4 . It would do that dropped at levels due to the decrease in revenue and we saw all of the functions decline as a percentage of revenue. We want to add more engineers around the world to continue investing in our platform. That was zoom cfo Kelly Steckel berg. Lets get a check of the latest headlines. Ash American Express is breaking with credit card tradition and will let Small Businesses borrow more on their cards. Amex has made users pay off their cards in full each month but will let some customers have purchases over a longer time with interest. Customers with the companies greeted, gold, and green, gold, and platinum cards will november. Anges in continental plans to cut or transfer as much as 13 of its workforce as it looks to reduce cost by 1 billion amid ongoing pressure from the coronavirus. The company says domestic operations will be hit hardest with some 13,000 jobs in germany affected within five years. Continental ceo saying the Auto Industry is facing its biggest crisis in 70 years. Indias biggest oil exporter posted a 92 profit after crude prices crashed and demand for oil and natural gas at home took a hit from the coronavirus lockdown. Oil and natural gas corp. s net income was around 68 million for the quarter, compared to 800 million a year ago. It fell 50 during the comparable period. Amc said it expects to reopen another 140 cinemas across the u. S. This week with the vast majority welcoming moviegoers at the weekend. That will mean more than 70 of the companys u. S. Theaters are back up and running, approximately 420 sites nationwide. That follows the expected release of the film tenet. Shares jumped 12 in the trade. Haidi lets look at the markets. We had u. S. Stocks hitting another record high overnight, the tech rally continuing in full force. Futures looking flat at the moment when it comes to the s p contracts. New zealand up by. 4 . Setting up for a pretty bearish look at australian secondquarter gdp, with sydney futures at. 4 . Moderate upside when we get to the cash open. In japan, as the leadership race hit heats up, up three. 3 . We get more analysis on the market. We will have a Portfolio Manager who will be with us. Lots more ahead. This is bloomberg. Haidi i am haidi start we are counting you down to the major market open. Im Sophie Kamaruddin in hong kong. Welcome to bloomberg daybreak asia. This hour. Ries wall street marks more new highs powers on. Ech rally novembers president ial election is currently priced as the worst event risk in vix history. Problems mounting