More voluminous hair instantly. All it takes is just one session at hairclub. Introducing xtrands. Xtrands adds hundreds or even thousands of hair strands to your existing hair at the root. Theyre personalized to match your own natural hair color and texture, so theyll blend right in for a natural, effortless look. Call in the next five minutes and when you buy 500 strands, you get 500 strands free. Call right now. upbeat music greater melbourne will be extended for another two weeks before some types of using will start to take place. We also heard from the Prime Minister as well as the treasurer really alluding to the economic damage that this will continue to have on the broader economy here in australia. Inare seeing downside australia. We have also futures falling just about to the lowest since the end of june and sidney stocks ended friday, down over 3 , the most since may. The aussie dollar pretty steady. Pretty steady generally when it comes to the u. S. Dollar after slumping on friday and the aussie 10 year yield, not much of a move as well. Taking a look at new zealand, we are seeing kiwi stocks trading lower by. 25 . Lets take a look at one of the movers. We are watching the pharma giant signing an agreement with the Australian Government in terms of manufacturing capacity for the vaccine that has been developed between the university of queensland as well as oxford. The first doses are scheduled for release from the middle of 2021 onwards as soon as successful Clinical Trials are completed. We are seeing upside of. 3 when it comes to trading. The agreement signed by csl and astrazeneca. Our next guest has been a Firm Believer that investors should forget the buyandhold mantra of stocks. Cio of a company. He joins us from palo alto, california. There is a tech bubble but you cannot really afford to not be invested in that. If you are renting securities, what does that mean for longerterm investors . In your our entry price time horizon. On wednesday, when we were talking to clients, we saw the market rising. Very contradictory data points. Volumes were soft, volatility was rising, not just in the vix, but the nasdaq. These go way above our trigger levels, we said the asymmetry is to the downside. What you will need to wait for is when the asymmetry is to the upside on a lot of these names. It requires a process and a framework. Talking aboutare gaining an entry point when it comes to one of the tech majors, what are you looking at . We had a previous guest in the last couple of hours saying you cannot look at priceearnings, ratios like Free Cash Flow yield that would normally be, you know, something you used to determine value or opportunity because your mindset needs to be so different because of the world we are trading in. Is that correct to you . You are right. That is why we have three parts of our framework. The first is what is the macro set up . In china, and australia, it is a very strong macro set up with gdp, the growth of gdp, accelerating. So that is a positive. Inflation not being too difficult. The second is picking good businesses. The third is actually not valuation from the metrics you are talking about but a lot more , number one, where is investor consensus . Where is the asymmetry in the stock price . We use the proprietary framework to tell you when is something oversold, when is it overbought, where is everybody else sitting at, so you can take the nonconsensus view . If you are wrong, you dont lose that much money. If you are right, everyone is coming over to that side of the trade. Sophie given the market dislocation and what you are seeing, as you noted, given the fluctuations between oversold and overbought levels, where are you positioning in terms of sectors . What is looking to have the most value for you . We look at portfolio construction and its really about popcorn popping. Idiosyncratic. Uncorrelated investments. You might have the eight to 15 of them. One of them we call inflation rising. We have had that for a few months. We have seen prices of all sorts of commodities, not just gold, go up, so that is helpful. Not just a fight inflation but to make money. The second is a depreciating dollar. We believe that will continue so you dont have to have just one bed but you can be sure usd, long yen, different ways to play it and make money in different ways. We also like European Green spend and we also like investing in countries such as australia, china, and indonesia. Whether it is consumer staples, technology, or communication services, theres a lot of Great Companies out there that we tonk we will continue power through. All of these themes are different so you can populate the portfolio with a number of them so you get the popcorn popping in your favor. Sophie on the dollar weakness, attractionn boosting of em assets, but em currencies has been underperforming. What will give them a shot in the arm . Growth you need the of china to become stabilized and people to believe in it, number one. Two is the continued depreciation of the dollar which we just called out. And then its really about select em. We are not talking turkey, brazil, but its a countries like indonesia, taiwan, russia. Theres certain ones that should do and have been doing better than others, so again, it can be a relative trade, not just an absolute trade, to say i can make more money in certain places versus other countries, and then the second part to that is if you actually, you know, saw a continuation of the trends i just spoke about, you can see Frontier Markets really doing well as well. Opportunities do you see specifically when it comes to i guess markets that have that strong domestic growth story . Even as the borders remain closed, Services Industries remain depressed and airlines are basically grounded. You would still see sufficient consumer growth just on the basis of their own domestic population. [laughter] you are right. You have to be quite careful. For example, we own a business in australia that is a data center business. They have had positive multiquarter set ups, not just in australia, but you can look on bloomberg. The stock price chart has been a winner. What we see is that there is increased need for data, increased need for what we call crossconnect, so call it talking various vendors, partners, and it just increases the value of these businesses, and they tend to be in the best located areas, so we love businesses like that. They are similar to equinox or tellecity. Y so you could ride that winter. Was the ceo and cio of the capital company. The British Government is said to be preparing to publish a draft law designed to reduce the legal force of an agreement. A person with the internal markets bill said it contains fallback measures relating to trade if the u. K. And the e. U. Cannot agree. The bill may be published on wednesday and has the potential to undermine ongoing trade talks. Its a wakeup call for the e. U. Side. Theres only two points really that are holding us back but we cannot accept that the e. U. Control our laws. No other country goes into free trade negotiations with the e. U. Or anyone else on that basis. Sophie global coronavirus cases are now approaching 27 million with 881,000 deaths. The u. S. Reported 45,000 new cases in 24 hours, which was inline with the previous weeks average. Case numbers slowed in new york, florida, and arizona. New infections in the United Kingdom rose by almost 3000, which was a 64 jump from the previous day. Coronavirus cases in india have now topped 4 million with the country set to overtake roselle as the secondmost infected nation behind the united states. India reported more than 90,000 new cases on sunday, the highest single daily figure for any country at any time during the pandemic. More than 70,000 indians have died and the testing rate remains low compared with other countries. Australias Prime Minister and business lobby are warning of further economic damage after a Strict Lockdown in melbourne which was extended for two weeks. The State Government restrictions will remain in plan with a gradual easing from october. The state of victoria reported 41 new cases and nine deaths in the 24 hours to monday morning. It has had 90 of australias deaths. A powerful storm fierce winds and rain for the prospect of flooding in some of the southern islands. The typhoon brought winds of up to 160 Kilometers Per Hour as it hit the island, forcing toyota and others to shut factories. The storm is heading for korea, where the president s office is warning it could cause great damage. Haidi still ahead, we will be getting a preview of the upcoming trade numbers. The chief china economist joins us, plus street protests flareup in hong kong with police making hundreds of arrests over the weekend. We get those details in hong kong. This is bloomberg. Sophie Hong Kong Police have made hundreds of arrests as prodemocracy protests return to the streets. Thats bring in Stephen Engle lets bring in Stephen Engle. Get us up to speed on what happened on sunday. Stephen it has been pretty quiet in hong kong what with the coronavirus outbreak and the National Security law implementation lay in the evening late in the evening of june 30. Its been fairly quiet. Daterday, sunday, was the the Legislative Council was supposed to have those highly anticipated elections that the prodemocracy camp was very hopeful that they would win a lot of seats. Of course, carrie lam and the Hong Kong Government postponed that election for a year and there was a lot of speculation within the activist camp that that was done not because of the coronavirus but because of i wanted to limit the possible victories by the prodemocracy camp after the implementation of the National Security law. This is where we stand. Rotesters came out yesterday mostly the kowloon side. Some of the more densely populated places in all of hong kong if not the world. Streets, through the put up barricades. 270 people according to the police were arrested for illegal assembly. Also, another 19 people were arrested for Disorderly Conduct as well as obstruction of justice and some violence with police. There was also separately 47yearold man who was arrested for seditious comments over the course of about a month from june 30 until the beginning of august. You know, that raises a lot of questions because tradition is not in the letter of the National Security law, necessarily part of the National Security law, you know, speaking to possibly overthrow a government. Subversion, terrorism, and colluding with Foreign Forces is the backbone of the National Security law. Later, we were hearing that if there are charges against that man, it would not necessarily be under the National Security law but under an old british air antisedition law. It raises a lot of questions because the government in its Statement Last night, when it announced this was an unlawful protest, unsafe, basically. They said selfish, because of the coronavirus. They also said some of these arrests could be under the National Security law. Haidi in the meantime, disney finding itself in the crosshairs over the hong kong political situation. This is all over a tweet from last year. Stephen thats right. You know, i think probably disney was bracing itself for this kind of reaction because this has been brewing for a actress,ce the main mainland chinese native, american citizen, she retweeted the social media post in support of the Hong Kong Police and saying it was a shame what the protesters were doing to hong kong. Not surprisingly, the activist camp and others around asia, including some in thailand and elsewhere, have been calling, since the movie was released on the disney plus streaming platform on friday, to boycott the movie. This is what he said. He said because disney cap tows toto beijing kow beijing, i urge everyone who believes in human rights to boycott mulan. Ance then, she has backed off bit from those comments, that tweet. She told Hollywood Reporter in february that its obviously a very complicated situation. I am not an expert. But still, disney is getting the brunt of this right now as they are trying to make up for a movie that was obviously going to initially be in the theaters but because of coronavirus is now going to be streaming on its disney plus platform. It needs millions of downloads to breakeven on this liveaction remake of mulan. Haidi Stephen Engle with the latest in hong kong. Coming up next, the u. K. And the e. U. Head back to the table with both sides trading barbs on what is proving to be an unbreakable impasse. We get a preview ahead. This is bloomberg. Haidi the u. K. Is stepping up preparations for brexit trade talks to fail. Time runs out before reaching a deal. Boris johnson is set to tell the e. U. He is willing to walk away. What plans are officials starting to make if we do get to the situation where time is out . Is a really interesting situation because it is the end of the year. The transition period ends so basically the u. K. Will be out of the e. U. , not just on paper but in terms of all the things including border crossings and trade that have allowed it during the transition period. Boris is going to tell the e. U. Today that he will walk away rather than the compromise of what he sees as the Core Principles of brexit. Hes going to set the october 15 deadline even as they draft this law undermining the negotiations. The law is the internal market bill. Expect that to be published this week. Including state aid and customs in northern ireland. A person familiar with these matters. It has been a big issue. The aim of this bill would be to make sure theres trade between the u. K. s nation. This is intended only for fallback options, according to people who are drafting it in case the talks failed but there is obviously a risk it could undermine this negotiation. Could there be chaos for the u. K. If a deal is not struck before the end of the year . That is what everyone is worried about, that basically, if you end the year without some kind of deal in place, that you really would have a situation where you could have trucks that cannot get through and all kinds of border crossings and the conservatives have drawn criticism for their handling of how they are going to deal with this. There arencerns some that could affect the u. K. And also this comes during this pandemic so this would be particularly difficult, especially given the state of the economy is weak given the coronavirus and the economic fallout that has ensued. Sophie International Trade remains under the microscope and the agency that greases the wheels of global commerce, the World Trade Organization is currently without a leader. Annmarie hordern takes a look at the key challenges facing the wto. This year, the wto is 25 years old. Based in geneva, it deals with the rules of trade between nations and promotes the Free Movement of goods and services across the globe. Perhaps the most turbulent point in its history. The wto has been at the center of controversy and political wrangling area the latest round of negotiations started in november, 2001, stalled in 2008, a partial agreement in 2013. Since then, little progress. Some of the trade disputes span decades. The case of a government funding is 16 years old. The u. S. Has given the green light to slap 7. 5 billion of tariffs on the e. U. , the biggest in the organizations history. Recently, the u. S. The wto was the single worst trade deal ever made and if they do not shape up, i would withdraw. Annmarie over two years, the u. S. Refused to consider any new candidates. As terms expired, global trade disputes. Good news for president trump. The selfproclaimed iteris ff man, bad tari news for trade. The Organization Needs a new leader at a time the Global Economy is also feeling the heat. Pandemic, recession, a battle for traits of privacy, and the u. S. President ial election. The stakes could not be higher. A quickets get you check of the latest business flash headlines this hour. A pharmaceutical giant says it signed an initial deal to supply the Coronavirus Vaccine to the Australian Government. Upon successful completion of Clinical Trials. Under the agreement, the company will make 51 million doses of a vaccine being developed by the university of england and could begin production at around the middle of next year. A period ofnd reduced pay for its staff until the yearend, at a lower rate from earlier in the pandemic. Salaries will be cut 10 from this month, which compares to an initial reduction of between 25 to 50 . The Abu Dhabi Airline posted a firsthalf loss to 760 million. The Financial Times says softbank made trading gains of 4 billion through the founder on equity derivatives. The report said softbank spent 4 billion over the past few months on options premiums focused on tech stocks. Softbank is now left with large but so far unrealized profits. Coming up next, chinas august to trade data is due later today. Export growth has been accelerating from the previous month. We find out what to expect with the chief china economist. This is bloomberg. You are watching daybreak asia. Lets get a quick check of the first word headlines. Protests return to hong kong after weeks of quiet following the implementation of chinas National Security law. Police arrested over 300 people over the weekend, including key activists. Of the protest was against the Council Elections held sunday. ,000 people have relied in rallied and de la rue calling for the resignation of lukashenko. This began after the elections returned him to power for the six turn with 80 of the vote. Some say the vote was rigged. He has been in power since 1994. Protests against him are unprecedented in size and duration. Theany has warned russia pipeline is at risk if the kremlin does not cooperate over the alleged poisoning of a dissident. The German Military says he was attacked with a nerve agent. Almost half of the 100 companies in are german. A tennis player accidentally hit a line judge in the head with a ball. Novick joe djokovic had hit the ball in anger. Extreme weather has returned to california with heat waves triggering wildfires and the threat of a blackout. Los angeles was forecast to hit highs above the peaks of august. An emergency has been declared as temperatures climbed, 3 Million People could be affected. China trade data will be in focus in a few hours time. Recovery hopes for age are dependent on trays trades closing up. Thank you so much for joining us. Given the data is likely to show continued recovery in trade from china, which segment of the economy are you seeing driving the rebound, and which are at risk of falling behind . Seen they, we have chinese economy and recovery have maintained a solid pace and so far it has really been a strong external demand that has been leading some of the recovery and domestic production. Second would be the investment growth, especially a very strong housing market, recovery in home sales since the average in march has been boasting property investment. The government stimulus packages have also led to a significant issuance of the local government in bonds and recovery infrastructure investments. So these have been boosting growth and at the same time, consumption has been lagging. And middleclass consumption in our view has been very strong. Home sales, auto sales. Continues, a lot of poor chinese were hit hard by covid. Chinaal governments in are boosting debt sales and we are seeing a record amount of special debt being raised and chinese banks are also planning to increase their bond sales this month to a record in order to replenish capital that has been dented by rising cheap loans. How are you assessing credit risk on the mainland . I think clearly during an economic slowdown and also with so much Small Businesses facing difficulty, there is a clear credit risk globally. Issues raised by the Banking Sector during the crisis but at the same time the Chinese Government, central bank has there to liquidity is kind of a delayed Interest Payment being offered to the Small Business owners. So at least for the second half of the year, we do not have to worry too much for a crisis, lets say. So we are starting to see signs that the Central Government in china has resorted to the old stimulus playbookcture buildout when it comes to economic recovery. To what extent will this be less effective . Build outs are low compared to last year so clearly the money is not transmitting as quickly. What does that mean for the debt crackdown . Sorry, i cannot hear you very clearly. The impact of overall liberal leverage reductions by the Chinese Government . That is right. Particularly as they prioritize the infrastructure and local government that aspect of the economic recovery. I think it is unavoidable this year in every country and because of the government stimulus to boost growth and support employment, we will see rise in the overall debt level. I think familiar to the audience is here, the deleveraging from 2017 to 2019 and there were clearly be a reverse of that and that is expected. At the same time, i think this time the recovery had actually been supported by a variety of demand drivers, strong external demand. So the covid demand, masks, asical equipment, and also u. S. Economists have pointed out, there is a clear shifting in the u. S. Households toward more growth consumption for goods and services that cannot be undertaken during the lockdown. I think that is also benefited china and chinese export. Think [indiscernible] the services pmi has rebounded strongly and as the government more, the sectors will continue to recover in the second half of the year and support growth. So i think it is more balanced. Although i heard government [indiscernible] would be much less compared to say 2009. Expect theiru Consumer Recovery to pick up momentum in china . That money is now being contained within china because tourists are not traveling. Are they spending it within their borders . Think there is a trend the chinese households are spending more on the domestic rents, maybe improving quality of local brands. Survey suggesting 85 of the premium brand purchased by chinese households event domestic rents have been domestic brands. Chinese retail sales, consumption, you can see with middleclass consumption, because there is a significant 600 million poor chinese hit and did not get supports from the government like in the west so there consumption their consumption have dragged down the overall numbers. We have observed [indiscernible] at a reduced traveling and spending because of covid, i think that will be in the coming months. Last week i was in beijing and to traffic was back precovid level and actually usingbecause people are the weekend before school to do local traveling and they are going out and going to restaurants, etc. So we see the awesome for spending among consumers. Foro we do see enthusiasm spending among consumers. How will the longterm outlook the u. S. Deepen . I think it will probably take some time for the overall decoupling in the gdp growth and there are several interactions. One is trade. Expanding workers from china compared to 2019 and happeningoupling is gradually and that will take a number of years to observe Government Policies and to make their next move. Shownk china continues to it is the largest market and the most effective region for production. I think it will take time. Probablerm, it is more andchinese aging population some of the domestic factors will lead to a slowdown of potential growth but in the next five years, china still could growth a 3 to 5 of gdp reasonably comfortably. Thank you for joining us from hong kong. You can always find indepth analysis on Bloomberg Radio when we are broadcasting in hong kong you can listen live at radio plus. More ahead. Please stay with us. Some lines coming out of south korea when it comes to the virus situation. They have reported 190 new cases, the lowest number of new Coronavirus Infections over three weeks. Last 24 hours, 167 reported the day earlier. Number of confirmed cases remains below 200 for a fifth straight day, bringing the total of known cases to just over 21,000. 108 have been because of local transmission aired last week we saw the extension of stricter social distancing measures by another week to september 13. Global cases of the virus are approaching 27 million with cases in india topping 4 million. The country seems destined to overtake brazil is the secondmost most affected nation behind the united states. Hopkins school of Public Healther pickle. Rofessional andrew pickoff numberppears to be a most are familiar with and i think the data suggest you can maintain that along with the mask you have at least two things that will help present help prevent transmission. That is the simplest thing to get across to people as an effective means of practicing physical distancing. We are going into a colder season. Chart of temperature and virus . Where is the break point on that . Virus buters for each thiss been clear that with virus, we have seen a lot of spread in the u. S. Under conditions like you just described, extremely hot and humid. With viruses like influenza, we expect a seasonal a seasonality of that and data suggest cooler temperature and lower humidity helps transmission. We think some of those things are true for covid19 but the reality is so many of us are susceptible to infection that even under less than ideal transmission conditions, the virus has enough susceptible people that it can maintain transmission and spread in the community. About much do we know long haulers . The media is getting wiser. Once you have had covid, is that it . Are there a significant number of people that have to live with repercussions for five months or longer . Absolutely. This is something you only start to realize when you move into a pandemic. You see many people are suffering over four weeks from effects of the virus infection. Aspect is thatnt it can affect your heart and there is now more evidence suggesting there is longterm damage to other organs that may be a result of the immune response the virus generate as it works through your lungs. So we have to think about this disease as more than just a virus that can cause death in a certain percentage of the population. It causes severe disease and relatively Healthy People and can cause longterm effects in relatively Healthy People. Of the truetic view impact of the virus on health in general and Public Health. If we have a flu shot for all of the other flus, why cant we have one for this virus . I think we are in the middle of working out what it takes to do that. Intestate work has been done at a very fast rate to try to generate vaccines and we know those vaccines can induce certain immune responses. The big question is if the immune response the vaccine produces, is it enough to protect you from infection . Is it enough to protect you in a way that will prevent you from spreading the virus . Couldpossible a vaccine protect you from disease but still allow you tos red the virus but still allow you to spread the virus. These things are critical. They will not just look at safety and if you are inducing antibodies to the vaccine, they will look at protect look at protection. Are those who get the vaccine less likely to get covid19 and those who got the placebo . We need to wait for those result widespreadnvest in a Vaccination Campaign because we want to make sure the vaccine has strong efficacy and not will just produce immune responses and provide an unclear amount of protection. Andrew talking to tom and francine. The Johns Hopkins school of Public Health is supported by michael bloomberg. Lets check on market. Agent strzok traded mixed asian stocks trading mixed. Simpson appears to be a beneficiary if england blacklist have softbankou on the nikkei 225, falling nearly 5 , the biggest drop since march. The nasdaq made big bets on tech stock buyout options. Continue, tech stocks after 58 billion in value on friday. Up next, protecting jobs amid the pandemic. We will discuss that next. This is bloomberg. This week, three companies are debuting on the hong kong exchange. We are watching an upcoming mega list that could be the worlds biggest. Many in Mainland China or hong kong. In total, 1500 companies have announced equity offerings with 180 billion year to date. Watch liquidity. Climbing and seven of the last eight days. Big equity offerings pushing pressure on the duty as investors earmarked cash for subscription. Hong kongs relief efforts might benefit one of the Six Companies in the world. Global firms have received tens of millions of dollars it comes to government funded wage subsidies meant to protect jobs that would have otherwise been lost during the pandemic. Lulu chen is with us. There are some concerns, unsurprisingly. Are intendedanies to claim subsidies, the concern is the mechanism of the payout is not fair because the majority of these firms are billionaire tycoons or Financial Firms employing highly played professionals highly paid professionals. But the cities were shushing but the city recession, it calls to question whether the government thoroughly thought out the mechanism of the payout. Receivecompanies subsidies, and how did the Companies Get it . Any Company Including ernst young and a lot of hong kong Property Developers including affiliates related to new world were on the list. Had interesting the union criticized these companies, because two of the Property Developers were already were also named some of the most uncooperative companies inviding rental concessions april so that is drawing a lot of backlash. What are we seeing in terms of government response to that backlash . Right now, the government is saying they might have been able to think out the plants that are betterplan a little bit and in the second round of payouts they will make sure the companies do not lay off anyone because that has been one of the complaints the union has received, 260 complaints from workers saying they were fired or ordered to take unpaid leave despite employers getting the aid so that is something the government is trying to look into. Chen. Nk you so much, lulu lets get some lines. Na and daily news report a eight developers offering a 30 discount in home sales. Concern for a Chinese Developers on the mainland. Lets look at futures. We are seeing a decline for u. S. Futures. Mastech futures up 8 10 of 1 and we have taiex futures reporting gains, awaiting exports from taiwan and figures from china later this monday. Futures under pressure ahead of that. 684hore u. N. Trading below below 684. Ding that is it for daybreak asia. Our coverage continues. This is bloomberg. Look here, its your very own allinone Entertainment Experience xfinity x1. Its the easiest way to watch live tv and all your favorite streaming apps. Plus, x1 also includes peacock premium at no extra cost. This baby is the total package. It streams exclusive originals, the full peacock movie library, complete collections of iconic tv shows, and more. Yup, the best really did get better. Magnificent. Xfinity x1 just got even better, with peacock premium included at no additional cost. No strings attached. It is not ok in beijing and shanghai. Welcome to Bloomberg Markets china open. I am tom mackenzie. I am david ingles. We are counting down to your first trading session of the week. Lets get your top stories today. Thed a nervy start to week. Investors on edge after a tech lead slump in local equities. Oil is down. The dollar takin