Panic or price spikes. Than 52na listing more times oversubscribed. We will assess investors appetite with the ceo, Joel Silverstein. Haidi that is a market highlight but in the meantime, lets take a look at how the set up in asia is faring given we did have the resounding tech rebound. Sophie, what are you watching . At. 8 . S p eminis stock futures pointing higher come of this ahead of the session that brings philippine trade data and a decision from malaysia. Beth are split. The malaysian economy is showing signs of a rebound. Korma she orders are due. We may see a pickup in cap exeter and by the auto sector in japan. From south korea, we are waiting on an announcement of a fourth extra budget that is expected later this afternoon ahead of that we have kospi futures looking a little bit lower. We have the kospi set to be the best performer in asia this month, up 2. 1 so far in september. A quick check on the offshore yuan just Holding Steady after rebounding on that dollar softening overnight and switching up the boards, tech very much in focus in asia after the overnight bounce we saw for the nasdaq. Open after they were hardhit. Forbillion of market cap the japanese conglomerate and shareholders are now demanding more clarity on tech options bets that were made by the new investment arm deploying some of softbanks growing cash pile which is set to increase with a sell down in its domestic wireless unit with orders set to be at 12 billion for that. That plus the toshiba spinoff of its memory chipmaker operations marks a renewed wave of activities in japanese Capital Markets after a quiet summer. Ontching the board, trading this thursday. It priced its ipo at 24,000 won. Retail investors piled in. Yum china making its debut in hong kong. Shares have fallen in market trading. We are seeing this rotation out of Chinese Consumer staples and he says we are halfway through a correction in chinese stocks given the turnover in liquidity conditions are not aligning in the best place right now, shery. Shery lets discuss what is happening in the em sphere. The stock rally seems to have passed over emerging markets despite. Losses. The msci emergingmarket index fell for the six straight session wednesday, the worst losing streak since february. Our next guest with an opportunity in emerging markets. Manager of the overseas group and income fund in the top 15 of its class in the last month. Rate to have you with us. Let me get started for our viewers. This gtv chart on the bloomberg. Mscie seeing this on the emerging markets index. Usually, this would be a positive sign but we have seen that in fact the last two times or twice in the past 17 times or so, we have seen market declines following this golden class and right now, we are seeing a little bit of market brett dth lacking. Reat what do you like in that space . That Technical Analysis oriented pleading could certainly be useful. For us, it is bottom, fundamental longterm investors. It is corporate earnings that mattered the most to us so it is true that despite this recent pullback, i remain concerned broadly speaking stocks in developing is available probably remain ahead of themselves. Acutecern is particularly for china, up 15 yeartodate. Elevated multiples, dividend yields. Despite these concerns about the markets, we are seeing pockets of opportunity across ems. Stocks could be a little bit overheated but it seems to be the only economy that is seeing growth as opposed to other economies across asia. Where do you find the opportunities then. Most of the opportunities are across asia. Most of our portfolio is in asia. Despite my concerns about valuations in china broadly, we are not avoiding it entirely. We have more than 20 of our fund in hshare and hshare company ashare companies. Pharmaceuticals are some of our bigger chinese holdings but our overweight position in south korea, 24 of our position is in south korea and that is driving a lot of our performance over the last quarter. In particular, two holdings. One in the ecommerce space and one in battery technologies. Touations in korea continue be very compelling to us as well as the Corporate Governance improvements you are seeing there. Them have International Expansion aspirations. Find it really interesting that your chinese holdings are more domestically focused. In korea, theres more exposure to attack. Is this a geopolitical hedge or is this something that investors like you are concerned about at the moment . Kate we have been concerned about companies that are dependent on trade. We have been looking at companies that have been producing goods and services for consumption domestically or regionally, less exposed to exporting their goods and products to developed markets. Tell us about what you are underweight when it comes to materials because theres a argument given the infrastructure driven another infrastructure driven stimulus driven recovery in china. Kate right. The fund has been underweight materials. It is not a sector we feel like we have been able to tie very well. E are longterm investors investing in these cycles is what we special in. Another one of our big underweight is real estate. The index is heavily dominated by the chinese Residential Property developers and i remain very concerned about their indebtedness particularly some of their cross currency liabilities issuing a bunch of u. S. Dollar bonds. Shery what about your Food Industry allocation . It has taken a huge hit from the pandemic. Kate sure. Again, we have seen some of our stocks do quite well recently. Some of them struggle. We have some holdings, particularly in korea. We have snack foods in china, consumer staple foods, and so, we remain invested for the longterm. We are dipping into these names. We believe there is a buying opportunity. Kate, really appreciate your time. Kate jaquet, Portfolio Manager at a Capital Partners company. Do not miss out on a big interview we have coming up later. We have that exclusive conversation with the ceo of chinas largest Restaurant Company, yum china. The Hong Kong Listed shares kickoff trading. That is on Bloomberg Television and radio at 9 40 a. M. If you are watching in hong kong. Coming up next, President Trump defending comments made earlier this year that downplayed the threat of the coronavirus in public, saying he did it to maintain calm. Plus, the latest in a race for a Coronavirus Vaccine. Astrazeneca faces questions over a possible serious final problem in that trial patient. This is bloomberg. Karina you are watching daybreak asia. I am karina mitchell. The u. S. Has revoked more than 1000 pieces of chinese nationals in a move set to furthering same relations between washington and beijing. It is set to be aimed at blocking entry into the u. S. For students and researchers believed to have links to chinese military. Them 360,000 chinese nationals attend u. S. Schools, generating about 14 billion a year. Meanwhile, the European Union is considering legal action against u. K. Over plans to reach their agreement. According to a document seen by bloomberg, e. U. Judges believe they may have a case to seek remedies before the u. K. Internal market bill is passed by parliament. And certainly after it. The u. K. Prime minister defended the move. A barrierwants to see down the irish sea. Aat we are doing is putting safety net beneath which things protect theong to settlement in our united kingdom. Karina the European Central bank is painting a rosier picture for the regions economic recovery with the newest boards showing policymakers sticking to the june outlook. The ecb is expected to hold rates steady when it meets thursday but to indicate that if Downside Risk intensifies, further easing as possible before the end of the year. Global news, 24 hours a day, on air and on bloomberg quicktake, powered by more than 2700 journalists and analysts in more than 120 countries. I am karina mitchell. This is bloomberg. Shery President Trump has admitted to initially concealing the truth threat posed by the coronavirus but says it was the right thing to do. Trump spoke after excerpts were published from interviews he gave back in march. Pres. Trump i am a cheerleader for this country. I love our country and i dont be frightened. I dont want to create panic, as you say, and certainly, im not going to drive this country or the world into a frenzy. We want to show confidence. We want to show strength. We want to show strength as a nation, and that is what i have done, and we have done very well. Shery Michelle Cortez joining us now. Aside, therenzy problem is that President Trump repeatedly told the public that this was nothing more than the flu. Michelle he said it was nothing more than the flu, and in fact, we know the flu already killed thousands of people every year and this has been exceedingly more deadly. In the United States, almost 190,000 americans have died. What the president seems to be saying is he was aware of that threat early on. The thing you have to remember is that it was not as though we had a coordinated approach at that point either. The president was downplaying the risk. He knew how serious it was. It is that disconnect that everyone is focusing on. Shery we know a little bit more as to the situation for adverse advents that prompted the halt for astrazeneca. How much of a setback is this . Is it a reality check given that we now know the person who suffered this final neurological inflammation condition was given a vaccine and not a placebo . Michelle there have been two people who have received astrazenecas experimental vaccine who have developed neurological conditions. The first one happened back in july and it was subsequently determined that that was an undiagnosed case of multiple sclerosis. Now, we are seeing a second case of transverse myelitis, which is severe spinal cord inflammation and it can cause weakness and eventually paralysis. It can be very debilitating. These sort of side effects, if they are tied to the vaccine, thed be very damaging to hopes for the vaccine. They could still try to pull it doseperhaps using a lower of the vaccine or coming up with a slightly different approach. A little bit too early to talk about that. They have not tied it to the vaccine. The fact that it is happening is worrisome. Shery we just got johns competence data that coronavirus desktops 900,000. Las vegas Johns Hopkins data that coronavirus deaths topped 900,000. Michelle the virus is increasing in numerous countries. We are seeing deaths continue to rise. The idea that this is going to evaporate, going back to the original comments we heard from President Trump that this is somehow going to evaporate over time, we are seeing that that is not the case. In fact, it does appear like we are starting a second wave here and countries who thought that they put this behind them are we dealing with it again, as are going back into the winter months. People are trying to get back into their offices and schools. We are going to be dealing with this for months and perhaps years to come. Haidi Michelle Cortez there. Returning to astrazeneca because halted trial, John Hopkins University professor lawrence told us why caution is a good thing. Whenave a projection for we might see an effective immunization. Think we will see a successful vaccine sometime next year. I am not as optimistic as some of the other people who are talking about a vaccine by the election or by the end of this year. I think we are seeing some really good data out of these vaccine candidates. Theres nine in phase 3 right now, but i think we do have some time where we are going to have to wade through some of these data and better understand how well the vaccines are working and what the priority is for manufacturing. Are we going to fast in trying to find this vaccine . There will be hiccups but actually, it will be safe when it is out . I think theres elements that are moving a little fast for my liking, but i think the news over the weekend of the vaccine makers, led by pfizer, moderna, pledgerazeneca, to safety overspeed, was a really important step. Its a worrying step i think because the fact that they felt they needed to say that, where perhaps it means that they were being pushed to speed up the timeline. Everybody wants a vaccine. Is anine is incredibly incredibly important tool but we need to prioritize safety. I think seeing that step by the vaccine makers was really important. It mean in terms of what they are worried about . Is the worry that we have a vaccine that is not safe or is the worry that we have a vaccine that is safe but nobody wants to get it . Lauren it is some accommodation of the two. These phase i trials, they start with safety so we understand the safety profile before we even start to understand the efficacy of the vaccine. Here in the u. S. , we have a Vaccine Hesitancy problem so its not just rolling out a vaccine that is safe based on clinical data. Its also really important to understand what will stop people from taking it, what will encourage people to take it, what are the safety and efficacy data that the public want to see in order to ensure that they will go and get that vaccine . If we create a perfect vaccine but no one wants to take it, it does not matter. Because of this unexplained illness, which caused astrazeneca to suspend the trial, doesnt mean it will also be much more difficult to get people, healthy individuals, to try out future vaccines for covid19 . Lauren i think that people should actually be happy to see that this is happening. Normally, i think that this would not make National News but because this is such a national and international priority, this is a standard process in vaccine and therapeutic creation and production. We stopped trials when we see something concerning or unexplainable, something that does not align with the data we sign phase i and phase ii. Theirs astrazeneca doing due diligence, looking at this adverse event, looking at this person who had an onyx plane illness, going through their data to see if perhaps they saw it elsewhere. Johns Hopkins University assistant professor of emergency medicine, lauren sauer, speaking to francine lacqua. Supported bys michael bloomberg, founder of bloomberg lp and bloomberg philanthropys. We will discuss more on the coronavirus with Singapore National clinical director, dr. Sean. Catch that conversation at 8 30. This is bloomberg. Haidi luxury goods behemoth lvmh has called off its purchase of tiffany. Havepscale jeweler they filed a lawsuit. Su keenan is tracking all of the action. They say breaking up is hard to do. Bloomberg learned that lvmh asked the french government to help when it comes to getting out of this deal. Su that is a significant development. According to people close to the matter, bloomberg is reporting lt leaned on arnau the french government. The lvmh board has stated it had no choice but to pull out of the deal because the french government ordered it to delay any deal until 2021. The stocks of both companies took hits. Tiffanys dropping as much as 11 . With that earlier game hit a lot at stake for what had been the biggest luxury transaction ever put together. To free swiftly tiffany swiftly of filing suit to keep the transaction alive. Amid covid19 and the related check downs as well as the proposed tariffs the u. S. Was going to impose on france, up to 25 on luxury goods, the deal had been showing signs of trouble. Tiffany just last month extended the gold deadline by three months to the end of november and that prompted lvmh to say it reserved the right to challenge the new closing date. Lvmh claiming the french government in a letter asked it to delay the deal beyond early january 2021. Shery what happens next . Su the legal challenge will be interesting because what tiffany is arguing in its lawsuit, which it filed in delaware, is that lvmh has made clear its real goal, and this is quoting from the lawsuit now, is to attempt to renegotiate merger price and , borrowingotiation renegotiation, letting the clock run out on the deal. Its basically saying that lvmh tried to leverage the pandemic, the shutdowns of stores, and a lot of the Police Protests in the u. S. Resulted in further stores being shut down to get a better price. One analyst predicts that without the deal, tiffany shares could lose 27 below your tuesday close. It could really slide from here. Lvmh says there is no termination fees. Analysts believe lvmh is actually making a prudent decision here in Uncertain Times , but tiffany was to be lvmhs gateway to the u. S. , and all sides losing here for now. Back to you. Shery su keenan with the latest on that lvmhtiffany deal. Lets get a quick check of the latest business flash headlines. Jp morgan is set to have found that some of its employees pocketed covert relief money that was intended for legitimate u. S. Businesses hurt by the pandemic. A source with knowledge of the matter says the Bank Discovered the actions after suspicious amounts of money were deposited into employee checking accounts. Jp morgan declined to comment on the incident. Barclays is weighing plans to move its u. S. Headquarters from its Current Location in the old Lehman Brothers building in times square. The british lender is set to be looking for around. 5 million square feet of space. Barclays bought the Lehman Brothers building when the Investment Bank collapsed during the financial crisis in 2008. The board at rio tinto is to debate the future of its ceo with the mining giant, facing more pressure over the destruction of asian Aboriginal Heritage site. Sources say a meeting to decide the fate of other executives is due this week. The explosions left stakeholders in Western Australia seeking more action in the state that supplies 90 of the firsthalf profits. Said to be an advanced talks to invest at least 1 billion in two retail biz into a retail business. It follows a similar cash injection from silver lake last week that values the retail unit at around 57 billion. They also raised 20 billion selling stakes in his Digital Venture geo platforms to the likes of facebook and google. Said tofor softbank are have received orders for all 12 billion of the stock it is selling in its domestic wireless unit. Bloomberg understands that orders for local and International Investors are full at both number and another securities company. Than expected to be lower the initial public offering. Up next, chinas biggest Restaurant Company makes its trading debut in hong kong. Eastwest hospitalitys president has experience with young china. We will speak with yum china. We will speak with them next. This is bloomberg. Haidi we are only half an hour away from the open in japan, south korea, and australia. Lets get to sophie in hong kong for a check of what to watch. Sophie. Gains for asian stocks and s p eminis are edging higher early in the asia session. When we take a look at risk parameters, gold trading study after rebounding on the dollars overnight drop and in the bond space, the aussie curb is tracking that steepening we saw overnight in treasuries. Turning to south korea, pulling up the terminal, i want to show you this. The kospi is asias best performer so far this month, up 2. 1 despite the tech selloff that we have seen and the rise in korean virus cases. Now, heavy industries and health care helped lead the charge on the korean benchmark alongside the new deal investment plan, seeing it providing a boost along with the extended ban on short selling. Switching up the chart, that rally has come under pressure after the fastest stock advancing years for chinas equity markets. This as we are following turnover and broken Technical Levels with warning signs. Highflying consumer names come under pressure as well. A rotation out of Consumer Staples is happening as we are seeing a shift into cyclicals, haidi. Haidi we are all watching out for yum china, riding strong investor demand ahead of its secondary listing. Some of the strands will face challenges from the changes brought about by the pandemic. Ofl silverstein has decades experience in asias Hospitality Industry including the pepsico restaurant, the group that became yum china. Great to have you with us. Given the current environment, the uncertainty of what a postpandemic world will look like, particularly when it comes are p and services, what the risk factors for yum at the moment . Joel there are a bunch. Within the yum china portfolio, kfc is definitely the strongest brand and has the longest life Going Forward for various reasons, and one of the reasons is it is a value for money concept and fast food in general tends to be much better during periods of uncertainty and the china market, just like other markets in the asiapacific, lowerpriced brands, quite resilient. Have interestingly, we kind of seen this happen as we get u. S. China tensions just building and building as we get into november election. How much of this hong kong withng is less to do capital raising, given it is already over capitalized, you can argue, and more an insurance policy from the politics . Joel i think it is an insurance policy, another way of confirming the valuation. If you look at yum china, its a very strong company, very wellmanaged. It has a great longterm future ahead of it. It does have some hiccups with some of their brands, but as long as kfc continues to grow, i think they will do fine. There are a lot of challenges in the china economy. Hit, a lot ofvid Chinese Restaurant chains were facing a lot of uphill battles. We have got a glut of malls. Theres too much real estate. There is an oversupply restaurants. The delivery segment, which tends to be lowerpriced, has heard a lot of fullService Restaurants in china, but there are headwinds. Overall, the foodservice Service Market will continue to grow at probably 5 to 6 . Shery i personally have stopped eating out since the pandemic started and now that i think of at home. E been cooking even after the pandemic is home, i feel like i will go out less to eat. What are some of those fundamental changes in Consumer Behavior that you are expecting to see in china, and how does yum brand fit into that . Joel yum brand was one of the first Large Companies to embrace the digital era, so they have adapted quickly to digital opportunities, so i think they are ahead of the curves in that regard. The biggest trends in china, one is digital, clearly, across all platforms. Up to 80 now of the orders to yum china restaurants come through a digital platform so they are wellpositioned for that. Mean ordering on your smartphone and it also means delivery. Delivery is a global trend, which has been occurring for the past five years to seven years before covid. What covid did was jumpstart this. If you look at the Growth Numbers of the u. S. In places like vietnam, indonesia, southeast asia, and china, all those markets, very strong delivery components. Covid exponentially grew the business. It was always already growing, but it is growing faster now because china was one of the first markets to embrace cashless payments. Primarily given by government pressure, so when you have cashless payments, you have smartphones, you have a need for convenience through delivery. Yum china is very wellpositioned and other restaurant chains are as well. Shery what does all of this mean for those restaurants that have physical positions, say, in malls across china . How do they survive . Joel soul Service Restaurants sole Service Restaurants have challenges we worked with a lot of chinese fullservice restaurant chains and they were once at a new mall two years ago when a newer mall opened down the road. They have negative samestore sales growth. Until we see a reduction in the number of malls and a number of restaurants, i think it is almost inevitable that fullservice restaurant groups will have negative samestore sales. Of course, there are some differences. Pickled en to be a i dont know how you explain it pickled fish restaurant, they will continue to grow because people prefer, in china, very spicy sichuan style food. You have to be wellpositioned. If you are positioned in the right segments, you will continue to grow. If not, you will suffer from high negative samestore sales growth. Home thew do they push nationalist branding, encouraging, supporting homegrown champions, potentially split the interest you see within that brands stable . Isl one thing to understand up until recently, chinese 99 of the 98 or chinese fullService Market. So i mean, it is not very insightful to say Chinese People love chinese food, but that is the reality, so there will be a lot more chinese innovations in the food Service Sector, probably a lot more fast food chains. I think your viewers might be really interested to know that there are chains in china that have over 10,000 locations that are point twos, snack brands. The pricing is only between three and 10 renminbi. Demand for lowpriced chinese beverages and snacks. Those kind of opportunities still exist, by far, i would not put a lot of money into a chinese fullservice restaurant chain in a mall. Thats probably the most vulnerable proposition so rands like to hike, which are fullservice are having negative samestore sales and people have delivery. I have been seeing the most recent number, but im sure its doing much at her. Dominoes, for example much better. Dominoes has over 300 locations now. I think growing fairly rapidly. Embrace digitization, delivery, easy to take away, delivers well, and preferably, has chinese flavor profiles, you should do quite well in the china market. Shery thank you so much for your time. Joel civil seen Joel Silverstein joining us from las vegas. We have an exclusive with the ceo of yum china, joey wat. That will be simulcast on bloomberg tv and also radio at 9 40 a. M. Hong kong time. Up next, we will look at the latest oil moves. How it rebounded from the selloff that saw it below 40 a barrel. This is bloomberg. Karina daybreak asia daybreak asia. This is this is daybreak asia. Of anymillion doses Coronavirus Vaccine and the biggest deal yet for the u. S. German partners, on top of 120 million to japan and. 5 billion promised in the u. S. Astrazeneca may resume trials of its vaccine starting next week. They were halted after a protest in the u. K. Experienced neurological symptoms consistent with spinal disorder. In other news, jakarta is bringing tough restrictions on offices and restaurants as coronavirus cases surge. It will shut Entertainment Venues, limit public transport, and limit all nonessential staff to work from home. Level deaths are approaching 900,000. India remains the latest epicenter with more than 1000 people dying from covid each day for the past eight days. In the u. S. , large parts of california are being covered by an eerie orange glow as wildfires and a record heat wave continue to spread dense smoke. Power is being restored after being switched off for. 5 Million People to prevent more fires. California fires have burned through more than 2. 5 million acres this year, which is the most on record. Has been trump nominated for the Nobel Peace Prize by a norwegian mp for his work in bringing together israel and the uae. The two states recently signed their first diplomatic agreements and others in the middle east may follow. The politician who nominated trump is the same one who put his name forward in 2018 in singapore. Global news, 24 hours a day, on air and on bloomberg quicktake, powered by more than 2700 journalists and analysts in more than 120 countries. I am karina mitchell. This is bloomberg. Shery. Shery lets turn to the commodities space after oils big selloff to below 40 a barrel on tuesday, jumped the most since june alongside a rally and broader equities. However, it has pared some of those gains after an Industry Group reported a build in u. S. Stockpiles. Lets go to our oil editor and reporter, jessica summers. We are seeing wti under a little bit of pressure but this matter as i said, we saw that jump earlier in the new york session, so what is really driving prices right now . Jessica great to be with you. After the amazing decline we saw the other day, we did see a bit of relief rally during todays session. Many analysts telling you yesterdays selloff was overdone. Citigroup saying the recent momentum in the Oil Price Decline seems to be ending, but of course, as you mentioned, things have changed a little bit as investors shift focus to tomorrows u. S. Inventory report. Many investors were expecting a decline. U. S. Crude stockpiles. The industry reports from api, which we received a few hours ago, shows that merely 3 million concerning ifte they confirm it tomorrow. Me about theo technicals. What are you watching and what is it showing us . Jessica what is really interesting to me is that we keep seeing brent crude flirting with this 100 day moving average, bouncing off the level today, so it seems to be fighting for some support right around there. If we look at brents relative strength index as well as wtis, we did see that dip below 30 yesterday, signaling oil was oversold. Todays bounceback during the earlier session was expected given the big selloff we saw yesterday, and of course, looking at these technicals like rsi. Haidi what about u. S. Output at these price levels . Jessica essentially, you know, oil remaining in the low 40 per barrel range from longer could mean a slower return, preventing any sort of big bounceback of u. S. Crude production. Right now, u. S. Weekly output is below 10 Million Barrels per day for the First Time Since 2018, which is quite significant, i would say. I also want to point out that the u. S. Government to come out earlier today with their monthly Shortterm Energy Outlook and cut its forecasts for u. S. Oil production next year. Continued the slowdown in production if prices remain at these levels around 40 for a longer period of time. Jessica summers, our editor and reporter with the latest. Unilever says its global reach has allowed it to navigate the pandemic without any major disruptions to its supply chain. We spoke with the ceo as part of bloombergs Sustainable Business briefing series. Hasnilevers supply chain proven to be resilient through the crisis, and we believe it is precisely because it is a globally interconnected supply chain with multiple points of backup. It would be disastrous for us if we had built a local supply chain initially, we watched when issues were developing in china chainmapped our supply for what would happen if there were a major disruption to materials and goods commended for china and through the pandemic and continuing to this day, we are delighted that we have a Global Supply chain that is interconnected and that we have built points of backup, and we would have been in big trouble if we had just the National Supply chain, so that is one dimension of nationalization or nationalism that we think would have been harmful. The second of course is the importance of global trade. Global trade has lifted hundreds of millions of people out of is agreedd generally to spur economic growth, and is particular concern if we retreat away from global trade, it will have a depressing effect on the global economy, and of course, as we started this conversation, those who suffer most will be those who have the least. Nationalism. We think it is bad for global trade. It is bad for the least welloff in society, and it is actually bad for Global Supply chains. I want to hear your take. Especially for the Younger Generation now, they do not want to work for companies that are not seeking workers, and you have to be a lot more transparent because it is social media, much more answerable. Your take on whether the pandemic has made you refocus . Say. Have so much to i have to contain myself. The cost of funding the gap that we have two the Sustainable Development goals is about 6 trillion. All the philanthropic foundations in the world have a budget of 2 trillion. The entire u. S. Government spending is 4 trillion. It is going to require mobilization of the private we have aensure that fair and sustainable world. The biggest change that needs to happen in the private sector is to abandon the ridiculous notion that there is a tradeoff between purpose or profit. By running your business with the sense of purpose, by being responsible for the environment, being responsible to your employees, being responsible to society, its a pathway to superior financial returns and i think more and more investors, more and more economists, our understanding this. We are clear on the Business Case for sustainability and purpose in unilever. It drives better growth, spurs innovation, reduces risk, but most of all, it is a magnet for talent. I want an enduring one of the enduring impact we are seeing from covid is consumers are shifting their spending towards brands and companies that operate with responsibility. We can measure that right away. Join us in trying to eliminate this idea that there is a tradeoff between purpose and profit. Purpose is the pathway to better financial performance. Shery unilevers ceo, alan jope. How pandemic relief meant for Small Businesses ended up in the pockets of employees at the largest bank in the u. S. We will explain next. Dont forget, if you are away from a screen, you can always find indepth analysis and todays big newsmakers on Bloomberg Radio, now broadcasting live from our studio in hong kong. Listen via the app, radio plus, or bloombergradio. Com. Plenty more ahead. Stay with us. Breaking news out of japan. We are getting core machine orders for the month of july growing six point 3 month on month, beating expectations of growth of only 2 , and this of course also coming after that surprise decline we saw in the previous month. The year on year numbers also beating expectations, still a contraction, but the smaller contraction than was expected of 16. 2 and a smaller decline than in the previous month. Those numbers looking pretty good. A surprise to the upside. Of course, machine orders are leading indicators of investment. We have seen perhaps this being driven by the auto sector that has seen a little bit more strength in japan although orders in the Service Sector probably were still under pressure. She and orders month on month growing 6. 3 , haiti. Haidi. Haidi jp morgan found some of its employees apply for and received covid relief money according to a person with knowledge of the matter. The funds were intended for legitimate u. S. Businesses hurt the pandemic. Those employees have now been dismissed. Theresa, what exactly did jp morgan find out was going on and how did they uncover this . Mean, the countrys largest bank found several employees apply for these relief funds that were really intended for Small Businesses that were ailing, that were ravaged by the pandemic. They went ahead and apply for those funds and in the haste of the government trying to rush aid money to the meatiest as fast as possible, you seem to have created a situation where a few more characters jumped in and used the opportunity to pocket that money. The Bank Discovered all these actions were tied to the Disaster Loan Program after noticing a suspicious amount of money had been deposited into checking accounts owned by Bank Employees so that is how the game was found out. They have just reported a number of these people seem to have been fired and rightly so because i would assume any bank, breaking the law would be a violation of their code of conduct. Shery we have not seen signs of misconduct being a ramp it. When jp morgan announced the probe earlier this week, how was this received . Sridhar its interesting because it was a very unusual message from jp morgan that was sent out on tuesday. Many people across the industry because of its Mission Senior leadership led by the chief executive officer, jamie dimon, hey,ng the employees that, some of our employees might have engaged in illegal conduct. They did not describe what they have done but the very fact that they sent out that message to a quarter million workers at their bank was a who could not figure out why the bank was widely sharing this information, but you know, we have spoken to a few people who say the bank making sure widespread fraud, in some cases with its own employees. This is a way to say you have to be on the lookout for bad behavior and to reiterate the point to not see it as an opportunity to capitalize because we will be watching you. In that message, they said they are cooperating with Law Enforcement where appropriate. Very interesting developments. Our Bloomberg Finance reporter, sridhar natarajan. The luxury industrys biggest takeover is unraveling after lvmh moved to call off its 16 billion purchase of tiffany co. The Louis Vuitton owner says the french government had asked him to delay the deal for reasons related to a trade dispute with the u. S. Tiffany claims lvmh is trying to seek a lower price by using the recent u. S. Protests and covid19 as leverage and have countered with a lawsuit. Owners Simon Property and Brookfield Property are poised to acquire j. C. Penney. They will keep the chain alive during the pandemic. Are j. C. Broomfield penneys landlords and they will own around 490 of the chains remaining 650 outlets. J. C. Penney filed for bankruptcy in may after the coronavirus shut its doors. Nintendo has asked its Assembly Partners to boost the production of its switch Gaming Council by as many as 30 Million Units this year, which would mark a 20 jump in output. The japanese game maker has been struggling to keep up with demand for most of the year, boosted by the success of animal crossing. Animal crossing new horizons. Dont miss the big interview coming up later, an exclusive conversation with joey wat, as there Hong Kong Listed shares begin trading later. Thats at 9 40 a. M. Hong kong time. We have plenty more coming up on daybreak asia. Guest aboutk to our cybersecurity. This is bloomberg. Shery welcome to daybreak asia. From bloomberg World Headquarters in new york, im shery ahn. Haidi im haidi stroudwatts in sydney. Asias major markets have opened for trade. Our, asianries is stocks set to gain after tech lead u. S. Equities on the rebound from the threeday route. Volatility remains high, leaving investors on guard for any signs that the selling may resume. Publicly Trump Defends downplaying the severity of the coronavirus threat, saying he didnt want to create panic or price spikes. The future of the ceo as pressure mounts over the companys destruction of ancient aboriginal sites in Western Australia. Shery japansouth korea and australia coming online. Lets start with Sophie Kamaruddin and hong kong. Sophie lets turn to japan. We are seeing gains for the nikkei 225 of. 8 percent. While we do have the yen trading at lower, a level this morning. This is the latest core machine orders for japan, rebounding in july. An indicator of business spending improving with a 6. 2 monthly gain, beating the estimate of 2 . Lets switch it out to check in on the move in seoul. We are waiting on the expected announcement of the fourth extra budget eight or this afternoon. The kospi adding more than 1 . The cause back as well, with the kospi, the best performer in asia this month, despite the tech wrote. The korean won is gaining ground. Goldman expecting the north asian currencies will outperform toward year end alongside other em forests, if a vaccine is approved. Bond markets after the government raised 1. 45 billion by selling u. S. Dollar and euro bonds. Its trading in seoul on the cause . Opening at 48,001. It was print it was priced at 24,000. Turning over to australia, checking in on the asx 200, 3. 3 after falling to a 10 week low on wednesday. The aussie dollar, under pressure for a Third Session in the four. Line. Pport at that 71. 90 that has yet to be broken. In the bond space, we are seeing the australian curve yield. Pulling up the chart on the terminal, watching chinese stocks as momentum is flagging for the worlds hottest trade this year. That is the chinext, falling 13 , hitting a near fiveyear high in july. It has fallen through several years of support, including the 2600 level. It held for two months, it connects the intraday high and low. We are learning in a commentary piece that calls are being made to curb speculative trading on the chinext and bloomberg reporting that regulators are considering cracking down on local fundraising and trading venues that could Impact Developers on local financing firms. Markets remain on guard for any signs of selling that may resume. For more on how the rebound in the u. S. Session is bidding threw two asia, lets bring in our editing manager. Is there a sense that the position adjustment that we saw over the past three days is now over . It is kind of strange to talk about bargain buying, buying the debt when a stock is, even after the selloff, up 60, 6 , 200 this year. Mark i think that is a very valid point. Assets are still very overvalued, despite the recent correction. It is absolutely not about bargain so there. We are in a world where stimulus is driving things. Investors feel that they have to buy a debt when they have the slightest pullback. Perhaps this is their one opportunity. Many have been looking for a pullback that never came. Therefore they will be loath to miss this one. All that said, the price has been exceptionally positive. It has been very powerful. It does look quite positive. I remain worried, as we discussed in, the show earlier on you have to make the the judgment at the end of the week. When we have such volatility, you dont want to read much into shortterm action. That is why at the start of the week, we were saying that we expected more pain but we dont want to say this is a much bigger correction. Similarly, yes, the rebound was powerful. I dont that we can make a conclusion on whether the correction is over until the end of the week. If we finish the week where we were last friday, thereabouts, then we are back in two the longerterm rally. If by friday we have more pain, i think it will lead to further contagion across assets. It dont think we are out of the woods yet. Shery we are expecting the ecb policy decision. We have seen a little bit of strength for the euro, given reports that perhaps some policymakers are more confident about the recovery. What are your expectations of what is going to come out . Mark i think first of all, i dont think the ecb meeting is live. There is zero chance of any new policy. The tail risk is that may be the currency comes up again. You mention the currency, but of course, in the q a, there is a chance that something gets asked of the guard. I dont think that is likely. After philip lane from the ecb spoke of the currency last week and had an impact, the ecb will be loath to double up. Especially since the euro pulled back. The slight risk reward into the meeting is that we will see a little bit of a euro bump up. I dont think it will be sustainable because i dont think this is particularly in consensus. Theres only a very marginal level of surprise. I think overall, the ecb is probably going to be more of a nonevent. What may be interesting, is from the bank of canada that we saw overnight, that they are saying that they are not as willing to provide more stimulus. If the ecb hammers home that message, as is expected and is in line with the positive sentiment, but they are not rushing to do more. That might get people nervous that the fed will deliver the same message, that they are not as worried. If we start getting this general theme that the Central Banks feel they have done enough for now, that well worry markets because this rally has been built on the stimulus that has been pumped into the system. Our live managing editor, mark cudmore there. You can follow more on the story or the days trading on our markets live blog. That is on the bloomberg at mliv go. There is commentary and analysis from bloombergs expert editors so that you can find out what is affecting your own investments right now. Lets get the latest first word headlines the sour. This hour. President trump is saying that he intentionally downplay the severity of the coronavirus in public, saying he did not want to cause a panic or price spike. The president stood by his comments in the interviews which were conducted between december and july, but were not published until cnn and the Washington Post reported on the book. Pres. Trump im a cheerleader for this country. I love our country. I dont want people to be frightened. I dont want to create panic, as you say. And certainly, im not going to drive this country or the world into a frenzy. We want to show confidence. We want tos want to show strength. We want to show strength as a nation. Thats what ive done. Weve done very well. The president of the United States has admitted on tape in february he knew about covid19 that had passed through the air. He knew how deadly it was. It was much more deadly than the flu. He knew and purposely played it down. Worse, he lied it to the american people. He knowingly and willingly lied about the pose the threat imposed to the country for months. He had the information. More the u. S. Has revoked than 1000 visas of chinese nationals in a move that the relations between washington and beijing is set to be aimed at students and researchers. 3006000 chinese nationals attend u. S. Schools, generating around 14 billion a year. Totocs parent is reported be in discussion with the u. S. Government to avoid a full sale of its american operations. According to dow jones, they have been underway for months. There is new urgency as the deadline approaches and china put into place orders that could potentially delay any transaction. The date set by President Trump for the agreement is september 15. Ahead, singapore fights the coronavirus with a focus on Migrant Workers. We will speak to clinical director for the Singapore National center for Infectious Diseases in an exclusive interview. But first, quintessential pad managing partner on his latest investment strategy. Thats at a virtual conference. Coming up in the next hour, we have an exclusive interview with the ceo of young china, joey wat. That will happen at 9 40 a. M. In hong kong. Lets get a check of some stocks that are moving across markets, as we continue to see asian stocks gaining ground. Cookout gains really seeing a strong debut. This after the ipo at 24,000 won. The gaming unit now seeking to raise 323 million. They have now had a very strong debut. 4000, trading at 62,400. Check out what softbank is doing. We have five days of drops for the company. We had the text selloff. Softbank through bankers having received orders for all of their domestic wireless units stocks that they are selling. And they will probably be placing an overallotment according to sources. Plenty more to come. This is bloomberg. To in hongcomforts kong on wednesday. They will show their market views and Top Investment ideas. Our next guest was one of the speakers and made a bullish call on some corporation, a Japanese Company that owns security stake. Lets bring in managing partner and cio of quintessential capital management, gabriel. Great to have you with us. Tell us about this call of yours. Is this a call on the cybersecurity sector broadly or more specifically the company itself . Gabriel i would say both. The sector is no secret that it will probably do very well in the next five to 10 years, say. It is drawing very fast over 50 per year in some segments. Obviously there is a lot of demand. It is very important to have the security of our mobile devices in check. Pretty much every company that operates in the sector we believe will do well. The problem is most of these companies tend to trade reflecting this optimism for the future. Because it is a justified optimism. Ome corporations contain sohnx it is mostly found bright. It is trading for a conglomerate discount. I would say the multiple is way below what it is supposed to be. The moment investors understand that it will be very interesting in the future. Shery what are your expectations for growth in the sector more broadly . Gabriel the statistic we saw depends very specifically on which time. It is a very broad sector in general. I would say you are talking double digits, before some projection say 48 . Which is enormous. Specifically for some corporation, it grows approximately 21 revenue. And because it has operating leverage, earnings are growing even faster. Im talking about sohnx right now, not sun corporation. Sun corporation is due to the fact that the financials are intertwined with other businesses that are secondary, and represent less than 20 of the revenue. Which are in decline. Such as that pachinko business. Maybe investors have overlooked this company because they dont see the underlying financials, which are mostly celebrate. This is a cursory look at the financial statements. Do ongoing due political developments, health care related, pandemic related, affect, or do they affect the way you View Companies now . Gabriel it is very important. Midterm,me shortterm, and longterm cases. I think any investor needs to bring all into account. And have a thought about how their investment will change because of what is happening with covid. In general, especially back in march, we asked ourselves if we wanted to deploy money. And at some point, we deployed a lot of money. We met we went almost all in. Most investors have a few choices. They could try their luck with deep value segments which are basically the segments impacted the most by covid. For example, energy, transport, entertainment. Obviously, it is very highrisk and a high reward thing. It was too risky. On the other hand, it would have been going to businesses which had not been impacted at all, or have been impacted positively by covid. For example, a business like amazon, or the Health Care Sector in general. The problem is again, this is reflected in valuation. The upside was limited. In general, we chose somewhere in the middle approach. Looking at segments which were parsed partially impacted by covid, may be indirectly because of the economic slowdown. But focusing on companies which in general had the strength, the financial strength especially and the cash flow generation to guarantee reasonably that there will be light at the end, of the tunnel, and may be the company will find itself with a kick a few competitors less. This changes a lot from industry to industry. It is an analysis that every investor much must do. Haidi tell me about your top ethic opportunities. As we talk, we see desperate investors who fear they might out. They are buying this adept even though we see a pretty comparatively mild correction in the tech names over the past three days. Where would you be looking for that opportunity . Gabriel i would say two things. In general, it is mostly on an activist one. To the extent that an individual investor can get involved with that, by shadowing other activist bonds, i think that is a good sector to be in because it is less dependent on the fluctuation of the market. The fluctuation can become enormous, and sometimes too steep for most investors to tolerate. Our solution is that it will devolve almost 80 of our time to activism. Mostly short activism. But some time with corporations over longterm activism as well. Decided, out of all positions, to look deeply into tech in midmarch. Like facebook,ut google, apple, those companies that went down almost like the rest of the market. But in our opinion, they were likely to definitely survive the crisis, but come out stronger. That was a good bet back then. Right now, my advice to most investors is to be careful, and to probably ask themselves if they really want to be in this market. In other words, the time to get in was several months ago. Right now, the valuations are very rich. If you are already in and you think you have a business that is strong and makes Good Management with good cash flow generation, then yes, by all means stay in. But i definitely would not get in if i were all cash right now. The likelihood of having a correction, even a steep one, is very high. Most people cannot tolerate it. There,gabriel gray go really appreciate your time. We are hearing from another guest from the sun at conference. Founder and cao fed fisher joins us live on Bloomberg Markets a little later. This is bloomberg. The ceo hangs in the balance. The companys board will be meeting for heads to roll over the minor destruction of ancient Aboriginal Lands in australia. Paul allen is its is in sydney with the details. How does this play out . And ithe board will meet will be something of a reversal if they decide to get rid of this eeo, because it was only last month that the chairman backed him. Even within the board, there is a sense that maybe he needs to do more about this. U. K. Media is reporting nonexecutive bond board want stronger disciplinary action. Just to remind everybody what happened, back in may, he conducted blasts to expand one of its mines in Western Australia. They were legal, they got permission in 2013. It was a year later that surveys revealed the significance. There were rockshelters that have that had evidence of use by humans more than 40,000 years ago. He did not take that into account, went ahead with a blast to access another 8 million tons of iron ore. Got criticized for not changing its plans. An internal review identified failures in management systems. All that happened was bonus payments got cut to js j and a couple of other executives as well. That was pretty much it. Questions remain, was it enough . The answer seems to be no, it wasnt. Shery they need to take more action on this then. Paul the pressure is coming from a few. Places i mentioned those nonexecutive. Board members. But those Pension Funds that are not happy with what happened either. Australian supers, the Largest Pension Fund in australia that manages 180 billion in assets, it wants them to reconsidered these penalties, claiming they fall they fall short. Billiontrust manages 52 by advocacy groups. They are not happy. They are concerned a strained could make winning future approvals for minor extent extension difficult. Then of course there is the Indigenous Community itself. The National Native Title Council wants a whole cleanup of the executive, saying rio got 135 million in ore. How is this a penalty for them . Shery paul allen in sydney with the latest. A ceo who has lashed out against leaders in ireland and the u. K. , saying they are saying their ineffective response has added to the difficulty to the struggling airline industry. He discussed ryanairs 850 million euro bond sale. How many times do we price dimensionally at 2. 8 . Which i think is a very Strong Performance in a market where clearly, certainly the airlines, most of the European Airlines are in distress. The Business Model is performing well, even during these covid crisis. And we will emerge out of this crisis as one of europes strongest and most profitable airlines. I was 20 ask you about that. You said when you raised equity last week, that you wanted to have the money to be able to add flights. You said that last week. Is it really about that or is it about shoring up the Balance Sheet to get through what could be a difficult winter . Michael there is no question that this is going to be difficult. Most of our flights for the month of september, october, and november. 9. 99. Little as what we were conscious of strengthening the Balance Sheet. We found two debt repayments in 2021, then we are to repay loans to the u. K. Government. We have our first 2016 bond of 850 million. I think when we refer to shareholders this year, it is put in place so that both of those get instruments. Cashremoves any kind of call on the airline for the next two years. Our next bond is due in 2023. That leaves us in a strong position. We have three. 5 billion in cash as we engage in slashing prices. Maintaining reasonably Strong Customer demand. Those routes that we can operate this winter. It is challenging because european governors governments keep chopping and changing coronavirus restrictions at a time when many of the european companies, the germans and italians, have been managing lower covid rates. But allowing international travel, as long as it is following the ecdc health and safety guidelines. Was ryanair ceo speaking to anna edwards. Lets get you a check of the latest business flash headlines. Jp morgan is said to have found some of its employees pocketed covid relief money intended for legitimate u. S. Businesses hurt by the pandemic. A source with knowledge of the matter said the Bank Discover the actions after suspicious amounts of money were deposited into employees checking accounts. Morgan has an dismissed has dismissed several employees over the incident. The luxury ender industries biggest takeover is unraveling after they cooled off the 16 billion purchase or the Louis Vuitton owners as the french governor asked for them to delay the deal related to a trade dispute with the u. S. Tiffany claims lvmh has tried to seek a lower price by using the u. S. Protests and covid19 as leverage and has countered with a lawsuit. Coming up next, focusing on singapore against the coronavirus. We speak with a clinical director of the Singapore National center, dr. Shawn vasoo is with us next. This is bloomberg. Karina this is daybreak asia. Is European Union considering legal action against the u. K. Over new plans to reach the agreement governing britains withdrawal from the e. U. According to a document seen by bloomberg, e. U. Judges believe they have a case to seek remedies before the bill as passed by parliament. U. K. Prime minister defended that move. Nobody wants to see a barrier down the irish sea. Putting ae doing is safety net beneath which things cannot go wrong, to protect the settlement in our united kingdom. Karina European Central bank as painting a slightly brighter picture for the regions economic cover it with any report showing policymakers sticking to the june outlook for production and inflation. The ecb is said to hold rates steady on thursday. Further easing as possible before the end of the year. Tougha is bringing back restrictions on officers and restaurants as coronavirus cases surge. The city will shut Entertainment Venues in places of worship, limit public transport and order all 90 Central Staff to work from home. Global deaths have topped 900,000. Over a thousand people dying from covid in india each day for the past eight days. Pfizer will supply that you with 400 million goes his 400 million doses. That is on top of 120 million to japan and have a billion promised in the u. S. Astrazeneca may resume trials of its vaccine starting next week. They were halted after a participant in the u. K. Experienced neurological symptoms consistent with a spinal disorder. 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. Singapores reopening is underway. Than 300,000 Migrant Workers make up much of the citys lowwage workforce. Since april, they have been confined to their residences with limited exceptions. Foring us is the director the center for infection diseases, dr. Shawn vasoo. There is the argument back in that by confining the workers to their dormitories, tightly packed, limited ventilation, shared spaces, are you actually crating more of an environment of higher transmission than preventing the problem the policy is aiming to help . Dr. Vasoo there are many purpose built dorms in singapore. Faced know, singapore has a town during time a challenging time with the outbreak from travelers and the thend wave was really in local area. A lot of cases have been in migrant areas. These Migrant Workers, the dorms are not monolithic. In the 1990s, more pope was bert more purpose built dorms were built. Ande are higher in density i worked also for ngo. Many of my top colleagues have worked with these Migrant Workers. The house and quarters, which are purpose built and they are rather high density. The ventilation is natural. Now, as you know, after the last migrant outbreak we dorms have been [indiscernible] it is going to be quite challenging to eradicate covid19. I do not think this is a scenario unique to singapore. Gradually, i would say the movements of the Migrant Workers in other sectors of the economy are opening up. I think it is a work in progress. Whetherw and based on certain populations have been evaluated, whether they are zero positive, whether they have been infected before with covid19 and recovered, these Migrant Workers are then moved into new dorms. Curious, immi am curious, while the government look at expanding testing within the environment particularly when it comes to individuals who may be shedding the virus and the transmission happening through aerosol . Is that something that will be looked into . Dr. Vasoo right now, the Migrant Workers who live in dormitories, there is a schedule routine testing where [indiscernible] to make sure we pick up new infections. There is a database where we workerst just migrant but in singapore, people who are infected with covid or not. It is rather tricky sometimes because there is a phenomenon of persistence [indiscernible] people actually recovered. There is an Ongoing Program to detect these new infections and sometimes, we need to differentiate. That is how this database helps. Shery lets turn to vaccine development. We have seen the astrazeneca Clinical Trial paused because of illness in their patient. How satisfied are you when you look at these front runners in the vaccine race about how safe these Clinical Trials are and the safety of the eventual development of a vaccine . Early september, 2020, there are at least five vaccines undergoing trials. The majority in the precritical phase. Preclinical phase. There are front runners including the astrazeneca vaccine. I think the news yesterday about astrazeneca trial being paused is a safety precaution to evaluate one of the patients. We are still waiting to hear further reports. It is the safe thing to do. We want to ensure a vaccine is both efficacious and safe. Vexatious this vaccine race we are seeing, could it lead to a relaxing of requirements of safety . Dr. Vasoo the regulations, whether it is the fda or other body, certain regulations in place to make sure and each country has jurisdictions. Two things. One is safety, which is paramount and the other is efficacy. We do not want to release a vaccine that is in efficacious. That might lead to people presuming they are adequately protected. It is unlikely the vaccine will be 100 effective. If you look at the other respiratory viruses, if youd 60 , thatetween 50 to is a very good vaccine. Just really quickly, we have seen the reinfection case confirmed in hong kong. Earlier, singapore this year has said you have not seen any significant mutation as of yet. Given all of the changes we are seeing and still trying to understand how the virus operates, have you, the center and the government of singapore changed how you tackle the virus . Nd the pandemic dr. Vasoo i think reinfection cases emerge is not a big surprise because we know it happens to respiratory viruses. We know from stars from sars in 2003 and what we know from sars cov 2 in the majority of people, some shortterm durability. We have been looking for reinfection in singapore to present respiratory systems tory symptoms. So far, we have not found cases. The few cases that have been described worldwide, as we ramp up capacity and mixed sequencing, we may identify more cases. I think it is important to understand that these are a handful of cases. The large denominator of people who have been infected. We need to get more information. Shery quite having you on. Centergapore national for clinical diseases director. Chinas biggest Restaurant Company makes its debut in just under an hour. What it means for young china as well as for hong kong. This is bloomberg. Haidi lets get you a check of these markets after we had the rebound overnight led by the tech sector. The u. S. , we are seeing a much happier day ahead when it comes to the asian trading session. We have the nikkei 225 just up by a 10th of 1 . Softbank, we are keeping a watch. Fluctuating after a fiveday drop. Taking a look at south korean stocks, the kospi continues to go from strength to strength. We are seeing an upside of close to 1 on it comes to trading in seoul. Is tralia, the i. S. X the asx is rising. T over one present shared just over 1 . We are looking at new zealand stocks up by just about 1 . Taking a look at some of the movers in the aussie session, look on mining rising the most in 19 weeks after the release of on a proposed merger that will produce two independent asx listed companies. Mining losing as much as 13 off those session lows. Withdrawing full guidance. Retailseeing a Department Store giant reporting a four year loss. A 16 drop in sales. Other stuff we are watching, cookout gains front and center. Shares more than doubling from the ipo price of 24,001. Trading at a market cap just shy of 4 billion. Shery we have breaking news. Are hearing the former Elizabeth Holmes want to use a mental disease defense in her criminal fraud trial. That is according to a filing. Our trial starts next year. She faces a dozen fraud charges including she defrauded investors over her blood testing cavity. Disclosure she may rely on a defensive mental disease was announced wednesday. The foundertest on who is facing trial next year. China two yelm china. Shares falling over 3 . Adersget a tr perspective. Great to have you with us. Tells about the difference between yum china and other hong kong listings we have seen like jd. Com. Obviously, we are in different state. We are in different sector compared to the other they listings we have seen so far. Retail and thehe clawback has been enacted with more allocation going toward retail. It could be said it is a little bit lackluster and lukewarm visavis the takedown and what we have seen before, which was hundreds and hundreds of times. It is a different space with a different Business Model, albeit in a difficult environment both onshore visavis with the pandemic and the reopening of the economy. It is traded lower in the gray but a 10th of the is in the way that these are priced versus parity and a discount that was likely to be deeper. Remember the fluid adr still lies in trading. It has sold off a little bit. The gray at 400. Wise, it has been a little against china in the way it has placed paired we have gone from overall optimism visavis equity markets. Especially chinese backed assets to a pessimistic stance led by what we have seen in the nasdaq. Difficult in terms of timing. Overall, our view is positive. Retail is high, means that the demand is there. More importantly, i guess you could argue why is yum china coming to hong kong and the national and the rationale is more poignant to the conversation from a trading point of view. Shery when it comes to the s p value in the sector, we have seen that rally more than 50 this year. Are we seeing a bubble this year and where is it going to stand Going Forward . Yes, we haveassify overrun in terms of price. We have overrun in terms of valuation to a degree. The Business Model necessitates we have more upside to come visavis the opening of the economy. Hases, it does look like it run too far from a sector point of view. Comparison, weup still feel there is some decent s pde left in not only the sector but also this name in particular. I would not be surprised if we in the firstening couple days of our postipo into the hong kong market. I would not be surprised if the stabilization traders are going to be busy, especially today and tomorrow. I would not be surprised if we start to see the markets start to recover, to stabilize, bubble scenario you suggested probably does not play out. I am not expecting a huge collapse in the consumer space. Remember from a china domestic play point of view from a peer group, there is not that many ways to play this. They play this restaurant sector specifically. Brand is saturated across the major tier cities. There is a lot of potential to go. The other thing to consider is that trade premium to the domestic adr. Though we will see a nearterm reaction of our pullback, i am viewing that as temporary. If this is a political insurance policy rather than any kind of necessary capital raising, does it matter for investors . I think what you are seeing is a melon of that truth. [indiscernible] really move again. Also, Hong Kong Exchange is playing a decent in terms of competitive model because now, they have a lot of activity and had would visavis star board and chinext on the onshore market. It is not a foregone conclusion all of these adrs come back. I would also say the avr from a listing point of view and if you take which was done recently in the u. S. , hundreds and hundreds of times and subscriptions, the u. S. Is not devoid of a listing vocation in terms of the chinese point of view. We will probably see it 5050. To going. Shery is this broadly encouraging in terms of an indication that hong kongs Capital Market despite all the other headwinds will do pretty well . Belief. Of that i think the market, especially the primary side of the market is ignoring all the domestic issues hong kong faces at the moment and i think you have seen that with all the listings and the fact the Hong Kong Exchange seems to be going from strength to strength. I expect this to continue even post president ial election because i do not feel the chinese rhetoric will die down a matter gets into the white house. I feel the trend of the listing in hong kong continues to grow and grow amongst the corporate. It is a daily event we see from a trading point of view that we see chinese adr either soft touch the market to hong kong or even a pure announcement. That is a. Reality i imagine that trend. Continues for the immediate short term. Haidi when it comes to yum, do you see potential bifurcation particularly as the campaign over supporting homegrown champions and homegrown brands in china gathers a bit more mental . More momentum . I think you will see about half an hour, suggested the makeup of retail and consumer in china is changing and evolving. Yum china seems to be well positioned visavis its peers. Up that change in desire and that internationalization visavis the pace, especially when it comes to the smb market. I do feel they are in nice space and we do feel from an analytical point of view and fundamental point of view there is still some decent upside. More importantly, from a peer group comparison, this is a relatively dynamic play that is then ill only hong kong can experience it also Mainland China when it comes through. I do feel that the breadth of the brand they have a difference in the brand they have really gets them, keeps them in good step. I feel somewhat sorry for the fact they are listing today as opposed to two weeks ago or in fact thattime in the overall sentiment for china has waned. That is for sure. We definitely have started to see some profittaking either domestically on the mainland or here in hong kong. You have to look at it, it is still a massive performer. Yesterday, it would have been a worse day that it is today because we should be in a relatively risk on environment visavis what we saw in the u. S. Yes, i think it is different from a jd. Space,ely different complete different sector. At the same time, the Business Model had some headwinds visavis the economic recovery. Andy. We really appreciate your time. Joining us from hong kong. Head of equities. Do not mess are exclusive interview with yum china ceo in the next hour. That will be simulcast on bloomberg tv and Bloomberg Radio at 9 40 a. M. In hong kong. Lets get you a check of the latest business flash headlines. To 1ed talks of leading billion. Investors cue up to take on amazons india. It follows a similar cash projection last week that values the retail out abound 57 billion. In its Digital Venture geo platform from the likes of facebook and google. Bankers from softbank are said to have received orders to hold 12 billion of the stocks it is selling. Bloomberg understands both [indiscernible] our now full. The price will be set next week. It is expected to be lower than the initial public offering. Shery take a look at this mover in tokyo. We are seeing it rally. The most since early august. This after the Engineering Firm represents one of the most compelling Investment Opportunities in japan. We have plenty more. The oasis founder and ceo joins us later. That is Bloomberg Markets china open is next. 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. So youre a small bor a big one. You were thriving, but then. Oh. Ah. Okay. Plan, pivot. How do you bounce back . You dont, you bounce forward, with serious and reliable internet. Powered by the largest gig Speed Network in america. But is it secure . Sure its secure. And even if the power goes down, your connection doesnt. So how do i do this . You dont do this. We do this, together. Bounce forward, with comcast business. David this is my Kitchen Table and also my filing system. Over much of the past three decades, i have been an investor. Highest calling of mankind is private equity. Then i started interviewing. I watch your interviews sewing how to do interviewing. I have learned how leaders make it to the top. I asked him how much he wanted, he said to 50. I did not negotiate with him. David how does it feel to get up in the morning and know that 330 million americans want