Transcripts For BLOOMBERG Bloomberg Daybreak Asia 20240712

Beijing praises the decision while President Trump says he is not a fan. A focusson says now on his cabinet lineup. And plans for structural reform. Are seeing a lot of investors sticking by the sidelines, a quiet session in the u. S. Overnight. Wall street hanging out to see what further guidance we get from the fed after their decision. A great chunk of investors will be waiting for more details as to the revamp inflation target. We are seeing futures trading flat. This after we saw u. S. Stocks rising. The s p seeing a Third Straight session of gains. For a change, we saw gains across tech, outweighing the decline we saw across financials. Treasury yields at the dollar end of the day, where they started. We are seeing the likes of the dollaryen holding steady, this as we look set to see the appointment of yoshida suda as the new japanese Prime Minister. As well as hearing more about whether we will see continuity across his cabinet appointments. We are watching at to see if another if the finance mr. Minister maintains his post. Crude seeing an uptick over the loss of the past few days. Still under 40 a barrel. The wto has handed china a win on its trade with the u. S. Ruling that the donald trump tariffs violated International Rules. It seems the ruling will not have much impact when it comes to the ongoing dynamics between the two nations. Lets get from our coanger, Tom Mackenzie. This is a technical win in a sense. What is the significance . Tom it is significant on paper but as you allude to, it is far less significant in practice. The details of the ruling are that the wto has come out and said the u. S. Did break those International Regulations by imposing tariffs on more than 230 billion worth of chinese 2018. S from. The u. S. Used something called a 3 section 302 and the trade act to impose those tariffs which they said was in retaliation for the the theft of intellectual property and tech transfer by china. The wto said the measures were excessive, discriminatory, and the u. S. Had failed to justify them. The reality is the United States can and probably will appeal this decision on went and so, it will go to an appeals body that has been hobbled by the u. S. Because it has been blocking the appointment of judges to the appeals board. The appeal will be kicked into the void and go nowhere. On the other side, there is an argument that many would make that china itself broke wto regulations by imposing counter tariffs after the u. S. Without going through the wto adjudication process. In some respects, this ruling exposes the ruling by the wto exposes the wto and the bodys own limitations. Shery how have both sides responded to the ruling . China unsurprisingly has welcome to the ruling. It says it hopes that the u. S. Abides by the wtos decision. That seems very unlikely. The Ustr Robert Lighthizer came out and said this undermines the wto further. It shows that is not fit for purpose. That it is completely and i inadequate. He says it points to why the Trump Administration, his team along with the president , have worked to undermine multilateral organizations like the wto. Which he says are on adequate to take on issues like intellectual property. In terms of the fade one phase one trade deal, lighthizer says it will not affect that phase one trade deal. He says the u. S. Must be allowed to defend itself from unfair trade practices. In terms of what this means for the wto, for china, and the u. S. Broadly, we heard from chad banned from the peterson institute. He said all of these three parties come out of this as losers, particularly the wto. Shery Tom Mackenzie in beijing with the latest on the wto ruling on the u. S. Tariffs lets turn to Karina Mitchell for the first word headlines. Karina thank you. Hong kong struggled economy has been given a boost with 3. 1 billion in new virus relief stimulus. Some restrictions are being lifted. The money will be sent to help affected industries on rent consumptions. Hong kong will extend Dining Services at restaurants by two hours to midnight and reopen bars and theme parks for a week starting friday. Thailand, its move to step closer to welcoming back Foreign Tourists as it looks to revive its biggest industry following a ban. Month visas have been approved for tourists planning to stay between 90 and 280 days but they will need to undergo a 14 day stay quarantine on arrivall. Thailands economy is expected to contract by 8. 5 this year. Monitoring pfizers experimental covid19 vaccine trial reported no safety issues after more than 12,000 people received their second of two doses. The trial is expanding to 44,000 subjects. Teenagers and people with certain medical conditions will also be allowed to participate. Pfizer says it expects to get conclusive data on the vaccine by the end of october. The uae have signed landmark agreements to establishing normal ties with israel. The signing ceremony signals a potentially historic shift in middle east politics including an exchange of embassies, tourism, trade, health care and security. They join egypt and jordan as the four countries that recognize israel. 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. Haidi still ahead, former executive greg kelly is on trial. Japanese prosecutors say he helps helped carlos ghosn conceal his pay. Others say it is the countrys court system that is facing judgment. Oracles bid for tiktok is under a National Security review in the u. S. We will discuss the offer in terms with Scott Galloway as we await results. This is bloomberg. The oracletiktok deal is being reviewed on a committee with a decision expected soon. Then it will need the goahead from china and President Trump. Pres. Trump i have a high respect for Larry Ellison. He is somebody i know. He has been a terrific guy for a long time. We are going to take a look. I heard they are close to a deal. We will be looking at the tiktok deal with Larry Ellison and oracle. Shery joining us to discuss the deal and everything around it is Scott Galloway, and school of business professor of marketing. Thank you for joining us today. From the bits and pieces weve heard about this proposal from oracle, including the fact that it would create jobs in the u. S. , not to mention that it would not really be an outright sale, but sort of a restructuring, is this in your view likely to get the goahead in the green light from the trumbo ministration . Administration . Scott it is difficult what is quick to happen. If the Trump Administration was concerned about reducing the Security Risk or creating a more level Playing Field where American Companies have the same access to Chinese Markets as Chinese Tech Companies have access to the u. S. Markets, this deal accomplishes neither of those things. If the review is truly a legitimate review, it would be rejected out of hand. This deal as it is proposed is nothing but a follow on financing where oracle is the lead advanced investor for a contract demanded of cloud operations. This achieves none of the objectives initially stated in the initial outline ban. Haidi the Trump Administration does go ahead and give the green light, what would it do for the administration, for President Trump . Scott give them peace with honor on an ill thought out decision or statement that possibly he could not manage legally. There was questions about whether they would be able to enforce this deal. And recognition that he got out the ability to peace with honor. I dont see this accomplishing anything close to what the initial objectives of a ban or a sale were. If they do this, it is because they want to move on to Something Else as they felt that either they got out in front of it, or they just wanted to give a gift to a donor, to one of the few ceos and Tech Leadership that is that has openly endorsed the president. This is socialism at best and cronyism at worst. Haidi could it also just be an opening gambit . If we take a look at this as being the art of the deal and that,bytedance has read could this just be an effort to either start negotiations in earnest, or to buy by the more time . Who knows what the Political Climate will be after november. Scott thats exactly right. I would argue that chinas superpower is they think in time decades, where as we appear in this country to be thinking in time horizons of 140 characters. Im sure they have decided that if they can get a great deal and a great cloud partner in the u. S. That satisfies the administration, then fine. But if not, they will just play beat the clock or run out the clock, and 50 odd days, we have a new administration and we dont know how the new administration will feel. This just feels, quite frankly, that we have been totally outplayed. And we will see what the decision is, but i would argue based on the president s comments you played, it feels like the president has blanked here. This accomplishes almost nothing. Haidi you are a professor of marketing. The president is good at marketing these things, putting the spin on them to be able to package it up as another example of him getting tough on china. And packaging it up as a win for america. Hes capable of doing that with this. Scott i guess. You could spin this however you want or put lipstick on a pig. This just there are two concerns. One is trying to have some sort of level Playing Field around what Technology Companies are allowed to do from china versus what American Technologies are allowed to do and mainland china. But more than that, i dont think there is much of a security concern as much as there is a misinformation or influence concern that this algorithm or anyone who has used tiktok knows that this is a powerful algorithm that is enticing. There are always humans behind algorithms. And if bad actors who do not share american interests decided to influence the 100 Million People on tiktok, whether it is suppressing the vote or inflaming them, whatever it might be, that is a very serious, legitimate concern. It is hard to see how, unless you have American Engineers such as what microsoft was proposing take control of this algorithm, you dont really, in my mind, begin to address what is probably the most legitimate concern around tiktoks presence in the u. S. Shery what about the claim by President Trump that the federal government will get a cut . It just feels as if we have turned into a Reality Tv Show where it is scripted by a real estate entrepreneur who decides he is the hero and if they are going to get some sort of kickback. I think it is likely illegal. And it is just plain embarrassing. So i dont think it is going to happen. I dont think its legal. I think it reflects poorly on the incredibly shrinking brand that is america. Galloway,tt appreciate your time. And stern school of business professor of marketing joining us. Silicon valley greylock is among the investors in bytedance. Partner and Linkedin Reid Hoffman spoke with bloomberg exclusively about the future of chinese tech. We have shareholders in bytedance. I think what you are really seeing here is the very first place where we are now moving into a much more multipolar tech world. Whereas Tech Companies from china are not only doing services for china. Because part of the reason why it was this amazing company, tencent that does we chat, we chat we learned all sorts of things. It had not really come over to the u. S. Much other than people who had worked with china or other kinds of exposure. I think what we are now going to see is Technology Invented in china with global scope that will be contending with the other global Tech Companies. Which, we in the u. S. Have been so lucky for decades to have a broadly free run. And i think now it is the ringing of the bell that competitions here. Personally, i dont think this is the right response, to go to a ton of protectionist. I think there is an issue. How do you balance that out . I think building bridges versus walls is generally a probusiness approach as well as a pro humanity approach. But that is how i look at it. Have heard the first ring of the bell and we have had the first awkward response. But what we are going to see more of his Tech Companies from china becoming globally competitive. You think Chinese Technology is becoming more of a threat to American Technology . Reid yes. Which platforms will establish the platforms in the future . Ok, you look at it, you say a lot of messaging products, obviously we have tended to make those Global Messaging products within the left the west coast of the United States. Here you have got this amazing from tiktokology that is having how do you on board someone and find videos that they want to watch and have god, this is like the next generation of television and entertainment. How do you do that . And tiktok figured out before any other company or bytedance figured out before any other company in the world. Shery linkedin cofounder reid hoffman speaking exclusively to bloomberg technologys emily chang. We will have more perspective on tiktok ahead with Eurasia Group senior Geo Technology analyst who joins us from washington later. Up next, Yoshihide Suga is set to be voted in as japans new Prime Minister later. We are on the ground in tokyo for a preview. This is bloomberg. We are getting breaking news when it comes to facebook. The federal trade commission is preparing an antitrust suit against facebook. We are hearing they could file it by the end of the year, according to people familiar with the matter, in a case that would challenge the companys dominant position in social media. We are hearing the preparations are coming after the ftc spent more than one year proving these concerns facebook has been using its powerful market position to stifle competition. Of thisat the conduct handful of hugely dominant Tech Companies are the people familiar with the story say there has been no final decision made whether to sue facebook. The commission does not always bring cases even when it is making these investigations and case preparations to do so. It decided against filing a complaint against google in 2013, despite taking part in a lengthy investigation. Facebook is still in the process of making its own case to the commission. We are hearing the federal trade commission is preparing a possible antitrust lawsuit against facebook, potentially to be filed by the end of the year. Turning to this part of the world and japan, officially installing Yoshihide Suga as its noon Prime Minister on wednesday. Some of our guests have been weighing in on the countrys future under its new leader. Is a big proponent of deregulation. I think if he is willing to test new ideas, that could be a potential positive for japans productivity. Muchople underestimate how suga is likely to push. Especially on structural reforms. I think the Business Investments expenditure is going to be the source of strength and japan over the next couple of years. That should progress the value seeking as a trap, but to being true value. So im very bullish on the rest of japanese here. He is very much a powerbroker within the political establishment. Wayink unless he find some to give himself some different angle on these reform efforts. Any sense of a slightly less inflationary policy Going Forward is likely to reinforce upward pressure on dollaryen. I think we are heading toward 100 slowly. I would suggest the overall trajectory for dollaryen is to the downside. Is outside the politics of the expectation for a continuation. Im just going to say, we need to understand why Warren Buffett put 6 billion to work in this economy. Shery lets get the latest on the election from our reporter who is at the parliament in tokyo. Given the majority in parliament, this seems to be a formality. Walk us through what happens today . Rate. Japan is about to get a new Prime Minister. Yoshihide suga is expected to win a vote today on a special session to make it official. The 71yearold had have effectively had effectively secured his lead. Todays session is scheduled to start at 9 00 a. M. Local time. Appointing a new Prime Minister early this afternoon. Is a new cabinet led by suga expected to be announced at 3 30 p. M. Local time, followed by a ceremony in the first Cabinet Meeting is going to be held in the evening. It is an allday affair. Have been talking about him being the continuity candidates. Are we expecting any surprises out of his new cabinet . Kunumi right. He had he wants people who are aligning with his thinking, and they can come from any factions. We are hearing from key changes including a Health Minutes minister who will succeed suga as chief cabinet secretary. A defense minister will be in charge of administration reform. The emphasis on the reform and to take his spot will be shinzo abes younger brother who will serve as the new defense chief. It looks like there are other key ministers but they will stay on for finance minister who are among who will keep their jobs to carry out policies focusing on fighting the coronavirus pandemic while showing up the japanese economy. Mentioned the reform minister. How will he reformed the third hour of abenomics during sugas administration . Kunumi yeah, he plans to keep pushing ahead with abenomics. He has also said more should be done on monetary and fiscal policy, if needed. To protect jobs and companies during the pandemic. Suga has been outspoken on some issues including the need for more Competition Among mobile phone providers to bring the fees down for consumers. He also wants to revitalize regional economies and is a proponent of introducing Casino Resorts through tourism. When it comes to foreign policy, suga has little experience but says japans alliance with the u. S. Will remain key. Haidi bloombergs kunumi mori in tokyo. Lets get a check of the latest business flash headlines. The u. K. Government is said to be considering conditions for the proposed video takeover of arm, the countrys most valuable company. Sources say officials are focused on maintaining the 3000 employees in the u. K. And keeping the companys headquarters in cambridge. Softbank has made similar commitments after a report that the giant in 2016 for 32 billion. That reported revenue topped estimates as the coronavirus pandemic drove robust demand for the Software Makers cloudbased services. Sales jumped 14 to 3. 2 billion for the third quarter. Adobe has been benefiting from products that help workers do their jobs remotely. Shares were up in extended trade and they are up more than 50 this year. Fedex is writing a wave of ecommerce demand that is boosting its Pricing Power to a degree not seen in the past in the industry in years. Surcharges for packages and Home Delivery has helped to crew rate the off scent of operating during the pandemic. The company saw a revenue rise by 13 , over 19 billion beating estimates. Fedex shares surged after those results. Coming up next, a guessing game may continue for a while. Fed watchers are not expecting clarity on rate guidance when the meeting wraps up. We will preview what to expect. This is bloomberg. This is bloomberg. Karina this is daybreak asia. Im Karina Mitchell with first word headlines. The wto says the u. S. Violated International Rules when it when it imposed tariffs on chinese goods. While the ruling bolsters to washington cans, effectively veto the decision by launching an appeal lead any days. In the next 60 the ruling relates to tariffs that were imposed on 234 billion of chinese exports. The committee on Foreign Investment in the United States has begun its review on the oracletic toc deal. The Financial Times reports that oracle will become the minority holder in the Global Business rather than owning the u. S. Unit outright. And its current parent will read it will retain the majority. They say another u. S. Investor will also be offered stakes. The u. S. Is exploring blocking all cotton from chinas chin zhang progress providence. 85 of chinas cotton production comes from the province. The moved the move would expand on hair products, apparel, cotton and computer parts and could lead to higher prices for cotton related goods in the u. S. The city of louisville, kentucky has agreed to pay 12 million to the family of Breonna Taylor as part of the Biggest Police misconduct payout in the citys history. The 26yearold was fatally shot in march and her home as police executed a late night noknock warrant. Nothing was ever found. The city has also agreed to some Police Reform to improve community relations. 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. Shery share jay powell will be the center of attention when the Federal Reserve wraps up its tomorrow. As investors wait to see how the Central Banks new policy framework affects policy deliberations. Bloomberg Global Economics Kathleen Hays is here with a preview. What are we expecting in the feds policy statement, not to mention the postmeeting press conference . Kathleen its interesting. Three weeks ago, jay powell was about ready to unveil the new policy framework of the virtual jackson hole meeting that was held. Surprise. Not a people did expect the fed chair to acknowledge many things. Inflation poet short of its target for so long. See that reflected broadly in the policy statement. An emphasis on inflation as a guide as when the fed could start to normalize policy, start raising rates again sometime in the distant future. One thing for sure that people are watching is the economic outlook, the forecast. This is when we get the summary of economic projections. Back in june, the fed was still fairly negative. Infact, if i may bring Stephen Stanley from amherst pierpont in the new york area, he said the fed has been relentlessly gloomy on the economy. He says for example, unemployment, the fed thought unemployment at the end of the year would be 9. 3 . The white line on the bottom, it blew past that already in august. 8. 4 . Gdp, the fed is looking for mostly 7 decline. That is going to be proved to be too high. Particularly if the economy grows. 25 in the third quarter. Inflation is higher than the fed had forecast. If they upgrade their outlook on the economy, will they change the dots . That is the path of the fed funds rate over a two or three year period. This chart, when you have not looked at for a while, when you can see when the fed moved in move, but put out the projections, nobody is looking for the fed to do anything on rates until you get to the end of 2022. We will get a look at 2023 for the first time. Probably this will not change much. Some people think we might see the first couple of dots, the first rate hike moving up a little bit earlier than 2022. That is something we will be looking for. Hikes even with the rate so far off in the future, powell is still really expected to be peppered with these questions about new inflation targeting framework. Why is it important for him to give these details now for the market . Kathleen people are wondering it is one thing to say you are going to look at average inflation. What is your average going to be . What about overshooting versus undershooting . How will you handle that . They are so many more questions than there are answers. The main thing the fed has to be trying to do is break this pattern. You can see how their key inflation measure has never been able to go above 2 or stay at 2 for an assistant four a sustained. Bloomberg economics as if they delay talking about the details, what might happen is people dont know how this will work. It might get in the way of them having the desire they want people to know that they want Inflation Expectations to rise, they want inflation to rise. I spoke at length today to a former fed official, former fed charlie plosser. He said the feds failure to achieve the 2 inflation target is the elephant in the room. The fed has to tell us after so many years of not being able to do it, how are they going to do it now . He also says they are just not clear on how they will use inflation targeting to achieve that. We will be speaking with him tomorrow as you can see on the screen. We will have heard from jay powell by then and we will hear what charlie says about what more we need to hear or what we may have heard that clears up these questions. Economics andbal policy editor, Kathleen Hays. We will have coverage of the fed policy decision tomorrow beginning at 2 00 p. M. In new york. 4 00 a. M. If you are up to watch in sydney. Bridgewater associates says the u. S. Could go too far in terms of testing the limits of stimulus. Ray dalio spoke to bloomberg about what a larger dead debt burden would mean for the central bank. Ray we know if a big bill is passed or if next year, we have a larger deficit, we know the Federal Reserve will be faced with the choice of either allowing Interest Rates to rise, or buying that and monetizing that debt. That diminishes the value of those bonds. Because it is just supply and demand. When you have that debt, you have to sell it. When we look at who are the buyers of that debt and how much it, we aree of dealing with a situation like in the 30s that could be threatening even to the reserve currency status in any way that it did diminishes the value of that which is being produced. That means money and credit. It drives money into those assets. It is that kind of market action. Is there a real threat right now to the u. S. Dollar status as the World Reserve currency . Ray yes, there is a threat. It is an evolutionary type of process. There is not yet a Good Alternative in the form of a currency, per se. Investors, big large institutional investors, do not necessarily because the three major reserve currencies all have the same basic problem. That is why they move into a new storm hold of wealth. And you see that the store hold of wealth, like in 1933 reaction, is equities, is gold, is other Asset Classes that go up. You you buy a company, and have low returns on your bonds, that is that kind of movement. But the same is true for gold and other Asset Classes. And it ists too far, standing the risk of, it is very dangerous. It looks like it currency defense. In other words, if those who are holding bonds, which are a lot, choose to sell the bonds because they are not providing a good return, and they are not, and because there is so much debt production and debt monetization, that puts the Federal Reserve or other Central Banks in the very difficult position of operating like a currency defense. Mechanistically, as money leaves that debt, that means either Interest Rates would rise, which would be terrible for the economy and markets, for they are forced to buy more and more. And that is how a spiral could occur. How do you expect inequality and internal conflict to play out in the november election . Have any idea of knowing who will be elected and whatever. Case, you wereer going to have very large deficits coming forward. There is an ideological difference. Ien i look at the conflicts, studied over the last 500 years the cycles. I started in the 30s and went back before that. If you look at that particular oftern, there is a risk conflict that can be bad. The worst Case Scenario could be a situation in which we dont have a clear winner of the elections, and we dont have a clear process for getting at the winner of that election. If there is not an agreedupon process, and that there is a lot of conflict about how do you resolve that type of thing, you could start to see that things happen. Bad things happen. If that was a situation there is power politics and, you know, does one stay, do they use the national guard, and all of these things, how do you resolve those, that would be an extreme risk. It exists as a possibility. Im not saying what the probability is. But it is a major thing. Shery bridgewater founder and cocio ray dalio speaking air speaking to erik schatzker. Up next, the latest on the trial of former nissan director greg ghosns former aide pleads not guilty and denies his involvement in any criminal conspiracy. This is bloomberg. Al conspiracy. This is bloomberg. Shery less than 20 minutes away from the open. Lets get to Sophie Kamaruddin in hong kong for another check of the set up. Sophie looking like a quiet start with futures narrowly narrowly mixed. S p lower by 2 10 of 1 . In new zealand, we are seeing the kiwi dollar under pressure after a threeday advance while kiwi stocks are adding one third of 1 . This is ahead of the preelection update due from new zealand later today. Switching of the board for some stocks to watch this wednesday, insole, neighbor is on the radar after it led an investment round. 900sel values it at over million. , nneka 229 this on reports that it is looking for exclusive talks for the lion dairy operations in australia. More potential m a on the horizon. A pickup of that pace going into 2021. In the mining corner, we are watching after the stock was upgraded at barclays and jp morgan. The mining on watch. This as it says it does support a proposed moratorium related to Cultural Heritage protection. Turning to japan to see how nikki futures in singapore have started off the session, we are seeing a move lower by about 65 points. While the yen is trading near a twoweek high, this as we anticipate some dollar weakness if we get a dovish message from the fed later this wednesday. When it comes to the parliamentary vote in japan, it will likely seal sugas position as Prime Minister. We are seeing his cabinet choices come to the front. His finance minister pick will offer some stability for jgb markets. Expectations that a third extra budget may be needed in japan. Japan lets stick with and greg kelly has pleaded not guilty to claims that he helped carlos ghosn under report of millions dollars of compensation. Proving his innocence will not be easy. The system itself could face judgment. For more analysis, we are joined by. A professor. Great to have you with us. To what extent do you see gray kelly as being the fall guy here, given carlos ghosn has escaped the judicial system, does this really something that authorities are doing to make a point . Are right. Hink you it is the latest chapter in the carlos ghosn saga. We have to feel sorry for great kelly that he is stuck in japan, whereas carlos ghosn managed to escape. S true, the japanese mode government may be pushing to make an example of him and he may suffer for that. I believe japan probably has more to lose than to gain by punishing him seriously. And that would be pertaining to the desire to attract outside talent, foreign talent, highly skilled immigration, to reinvigorate . The lack oft about transparency, some of the Corporate Governance issues. Are there real concerns when it comes to the legal system as well . John there are many issues involved. Japan is in desperate need of foreign talent to revitalize the economy. That is part of the abenomics program. N and kelly are arguably victims of discrimination. They have been jailed in such a way. One example being someone who followed as [indiscernible] it is a deterrent for foreigners to want to work in japan. Japan needs Foreign Investment. This highlights the closed protectionist nature of the japanese economy. He was a victim of the board room coup and the real reason for the arrest is resistance by japanese people in the management for ghosns plan for a closer relationship or merger with renault and nissan. This is not good for japan. Japan is part of the west and away. It needs economic dynamism. This is a negative to that. I think you suggested also japans Corporate Governance system. Iss issue surrounding ghosn something that should have been sorted out within the company. You dont need to arrest people and go to court. This is internal management that should have solved it. Japan has weak Corporate Governance. Officialsdo japanese an understand how they are being perceived . Could this lead to some reform . John you hope so. In every country, it is not monolithic. There are different schools of thought. Is looking for protectionist, sometimes in every country. People, even the politicians like the new Prime Minister coming in, they are not very international or outward looking. Shery and yet we have heard that suga may be more reform oriented than shinzo abe. Are you expecting any changes under his administration . John not major changes. Some small ones. He may carry on with the abenomics program. I dont think a dramatic opening. Younger,apan needs a more international dynamic figure rather than an old gray figure like mr. Suga. Thei is the concern that closed nature of the way that foreigners perceived are perceived and for an inner migration is perceived will persist under the new Prime Minister . John i think so. There may be changes at the margin. To japans closed approach migration is something that goes back decades and decades. Hundreds of years, actually. The whole society would need to change an open up in the way that it deals with foreigners. That will not happen quickly. It needs to be led by a younger, more Dynamic International figure. Minister,mer defense someone like that. Adjunctophia University Director of the asian century institute, john west. We will have more on daybreak asia. This is bloomberg. Shery we have breaking news out of japan. We are getting the august trade numbers. When it comes to the slums and exports, it seems to be subsiding. We are getting another month of that decline in exports improving. Still down 14. 8 year on year. It is still beating estimates of a bigger slump. Not to mention that exports to china did rise 5. 1 year on year in august. Although exports to the u. S. And the eu remained in contractionary territory. Imports declining 20. 8 year on year. Bigger than expected. We continue to seek demand under pressure as we have those intermittent flareups of the coronavirus pandemic. The trade surplus at 248. 3 billion yen. This is an improvement after five straight months of deficits. We have seen a bit of stronger export demand coming externally. Haidi really just underscores the fragility of the recovery and the challenges for the new presumed Prime Minister, Yoshihide Suga. Letsget a check of the latest business flash headlines. Share. At ipo at 120 a that is above the marketed range. The Company Plans to sell 28 million shares and is set to raise 3. 36 billion from the offering. Snowflake is a rare challenger for amazon as a provider of Public Cloud Services and storage. It is set to begin trading wednesday. Auto home, a chinese online car sale website, is said to be planning a secondary listing in hong kong by could raise as much as 1 billion. The company which counts insurance as is as its biggest shareholder has listings next year. Google says it has removed nearly 300 Youtube Channels in july as part of an Ongoing Investigation into coordinated influence operations linked to china. The company says the channels mostly up to uploaded spam content about music, entertainment, and lifestyle, into small subset of uploaded content in chinese about covid19 and affairs in hong kong. Shery lets get back to the big news on facebook. The ftc is reportedly preparing a possible antitrust suit against the social media giant that could come this year. Joining us for the latest is our tech lobbying reporter, ben brody. What do we know here . For how long has the ftc been investigating facebook, and what does this mean . Antitrust investigation into facebook grew out of the Cambridge Analytica scandal. And it was disclosed less on bare as that was wrapped. It has zeroed in on the way facebook has acquired potential competitors. Antitrusty violating laws and trying to stifle competition. It could be coming to a head in the coming months. Haidi right. What we know in terms of previous instances where preparations have been undertaken, the same investigation into google in 2013, it is still very possible for the ftc or after all of this to decide not to file the suit. Ben absolutely. We understand that they are preparing for the suit. The chairman has said this is the most important competition investigation that the agency has undertaken. He has said that he thinks action may well be warranted. But there could be an offbrand. Facebook could make concessions. There are a lot of ways this could go before it ends. Shery lets say they get to court and facebook loses the case. What could this mean in terms of penalties or remedies . Step in the case that comes much further down. Potentially years. Action, youtrust always face the opportunity of a breakup if this focuses on Something Like the acquisition of instagram or whatsapp. This could be candidates for spinoff in the later phase. Im wondering what kind of measures facebook is already doing to try to counter this . Part of the problem is the integration of different parts of the business, Different Services it provides. What could potentially what could the company do to alleviate these concerns and head off the lawsuit . Ben that is exactly right. There has been criticism that the combining of the data whatsapp, instagram and facebook is basically trying to make it more difficult to submit to spin them off. The company has disputed that. A lot of critics say it would essentially make a remedy that much more difficult. Eminis and antitrust cases are hard sometimes. They revolve resolve competitions by letting rivals access data sets. The spinoff is always an issue. They could agree not to engage in certain types of conduct. There are a lot of different remedies. We will not know what is on the table until we see what the harm is here. Haidi bloomberg tech lobbying reporter ben brody on that report that the ftc is preparing a case against facebook on antitrust issues. Make sure you catch the bloomberg green festival, a weeklong event that gathers business practitioners for a Virtual Event focusing on core issues of Climate Change. 8 00 p. M. Tonight if you are watching in hong kong. 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 trade. Hong kongs troubled economy has been given a boost with a 3. 1 billion in new virus relief stimulus. Some restrictions are being lifted. The money will be spent to help effective industries on virus protection and on rent concessions. Hong kong will be extending Dining Services at restaurants. Get some of the other top stories. We are watching out in asia, fresh guidance out of the fed, we will be getting key was when it comes to the inflation targeting expectations and framework. Expectations are pretty low when it comes to that side of things. Lets look at how we are shaping up when it comes to the asian market open with Sophie Kamaruddin in hong kong. Sophie head of the parliamentary vote in japan, we are seeing stocks lower on the nikkei 225. Off by. 2 . The reform agenda is not focused on a potential third extra budget, may be up for consideration. Markets will be considering applications of that. Front, we have japanese exports falling at the slowest pace since march as demand continues to climb. We are seeing the yen trading near a twoweek high, ahead of the fed decision later today. Lets switch out the board to check in on the moves insole in seoul. The kospi holding steady. We are keeping an eye on autos in seoul. Key on motors announcing the first stage of its eb strategy with a mark with the first model to be launched in 2021. The korean won on the back foot, retreating from the january high. We are seeing a pickup in u. S. Election risk in korean won. 2 . E the asx 200 at the aussie dollar holding steady. The kiwi dollar holding a threeday gain. This ahead of the preelection Fiscal Economic update we are expecting from new zealand. Kiwi stocks gaining grou aad of that. Pulling up a chart on the terminal, want to highlight the offshore yuan. Looking steady after it breached 682 trade at a 16 month high. City revising the trade on the currency to 670 with capital inflows to be supportive. Haidi thats get more on the markets with australias indian head of global markets. She joins us he joins us out of sydney. Great to have you with us. Lets start with the fed. Though expectations in terms of what can be announced in terms of policy. What would you like to see in terms of the details of the inflation framework, given we are seeing signs in breakevens and treasury markets that investors are really looking for more meat on the bones of the framework . Toby i think it is quite possible that it might clarify more about the average rate of inflation, as opposed to whether the rates for Going Forward. They are not likely to change stance in any way dramatically, given the recent Economic Data we have been seeing. Recovery. Already some you can probably see rates tick higher on the basis of supplyside inflation. Overall, most of the focus will be on what the fed will do in terms of asset purchases Going Forward in terms of duration, to determine whether they definitely dont want to see rates go to the high and want to maintain liquidity. Risk that wes the see out of Central Banks that they will start to fade . How much firepower is left . In this week, we are starting to see the recovery in u. S. Stocks on expectations from other major Central Banks. To what extent have we run into the end of the road in capabilities from Central Bank Policy . It is almost an economic theory. We are at unprecedented levels of support as it is in terms of Balance Sheet to support an Interest Rates. Where does it end . The road may not end in theoretical terms. Practical terms, you would hope we reach a point where we see recovery, the level of support provided by Central Banks has reached a point where out. S been mapped what is the greatest uncertainty is what happens with a virus in terms of whether there is a second wave restriction that leads for the decline in Economic Activity. That is where the theory becomes reality and Central Banks pushing the envelope even further. I dont know if the road is ending because you probably would have predicted two years ago that this could not have happened in terms of centralbank stimulus. Shery but about the risk of a bubble . We have seen bank of americas latest Fund Managers survey saying the tech stock bubble, the tech rally, that this is the most crowded trade. That this could actually be a bigger risk ranking behind only that resurgence in covid19 cases that you mentioned. Yeah, valuations are high. Basis, relative to bond yields, equities are attractive at current valuations. That is reflective of the Interest Rates. You would be looking at what 10 year bonds do to see if there is some concern if it gets overheated on that basis. Right now, we saw a little bit of a pullback in the market was consolidating. Given the amount of support, the market is looking for a way to go higher, not lower. I think we are not short of that territory. Shery we continue to hear talk that a vaccine could be available by the end of the year. What happens if it is not . What happens if the vaccine gets delayed further into 2021 . Think governments have been clearer around the world that they will not try to lock down economies again on a second wave, which will be very difficult to manage. The vaccine is critical insomuch as it gives confidence to consumers. Governments will not want to restrict Economic Activity as much as possible because of the damage it has done already to the global economy. What will the vaccine will not only provide certainty, but gives consumer confidence. Which if there is one part of the economy that is not bouncing, it is consumer sentiment. Shery toby lawson, great to have you on. Head of global markets. We have Karina Mitchell with the first word headlines. Karina thank you. The federal trade commission is said to be preparing a possible antitrust lawsuit against facebook that it could file by the end of this year. A bloomberg source as the ftc has spent more than a year investigating concerns that facebook has been using its powerful market position to harm competition. Case could be filed by the end of the year. Although no final decision has yet been made. Staying on facebook, Kim Kardashian west since she will be freezing her facebook and instagram accounts, urging action on the spread of hate and misinformation. Kardashian is linked to the stop hate for Profit Campaign which is aimed at Holding Social Media Companies Accountable for content on their platforms. The reality star is one of the top 10 biggest users on instagram with over 188 million followers. Asia, hong kongs troubled economy has been given a boost with a 3. 1 billion in stimulus. Relief some restrictions are being lifted. The money will be sent to help industries on virus prevention and rent concessions. Hong kong will extend Dining Services by two hours to midnight and reopen some bars, swimming pools and theme parks starting friday. Ofearchers monitoring think vaccine trial have reported no safety issues after more than 12,000 people received their second of two doses. The trial is expanding to 44,000 subjects. Teenagers and people with certain medical conditions will also be allowed to participate. Pfizer says it expects to get conclusive data on the vaccine by the end of october. 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. Haidi still ahead, riding the recovery in china. We will speak with our guest and get his views on potential earnings and upsides over the years. Uple of coming up next, the wto rules in favor of beijing saying the u. S. Violated International Rules when they slapped tariffs on chinese goods. We have the details coming up. This is is bloomberg. Shery here is a check of the latest business flash headlines. Google says it removed nearly 300 Youtube Channels in july as part of an Ongoing Investigation into coordinated influence operations linked to china. The company says the channels mostly uploaded spam he content in chinese, about music, entertainment, and lifestyle. And the ones that uploaded content in chinese about covid19 and Current Events in hong kong. Morgan sent some of its manhattan workers home this week after trader after a trader tested positive for covid19. News of the infection was communicated to employees just days after the bank told a senior traders to be back in the office i september 21. Ceo jamie dimon also weighing in on that debate, saying prolonged work from home will cause economic and social damage. Apples new subscription bundles and Online Fitness Services where the start of its latest apple one will combine Services Including apple music, tv plus, and icloud at a cheaper bundle price. Meanwhile, its a new fitness plus workouts are set to compete with telephone. The products included new watches, and an operated ipad air. It is expected to unveil its new 5g iphones later this year. The wto has handed china a win in a trade war with the u. S. , ruling that Donald Trumps tariffs on chinese goods violated International Rules. Lets get more from Senior International editor, Jodi Schneider. So does this have real significance or is this just a paper victory . Jodi it is really more a paper victory. It means a little since the u. S. Really already has hobbled the wto, the world trade organization, by dismantling its panel that oversees the appeals process. This all stems from the u. S. Moreit imposed tariffs on than 230 billion of chinese exports. The wto has found they basically failed to do this properly under the process that they used. So china approves of the report and says it hopes the american side will fully respect the ruling, but we dont expect it to have much effect on the u. S. Side. We expect the u. S. Will continue its trade war china. Haidi will this likely shift things in the trade war, the trade tensions between the two sides . Jodi yeah, we dont really expect it to do much there. Representative, robert lighthizer, said the report is not going to have an effect on the phase one trade struck,t u. S. And china that ensures greater protection for intellectual property rights, and basically removed some of the barriers to American Companies in Financial Services and agriculture in china. The two sides, despite the mounting tension between the countries, the two sides in the trade deal have tried to keep that deal alive. Even in recent months. So i think them saying that the u. S. The u. S. Saying they dont want to do the trade deal under this, they are basically itself. The report. That they still want to do the trade deal. There is a little glimmer of hope that there will be trade in some negotiations at some level between the two countries. Haidi one of the centerpieces to the relationship, the oracletiktok bid. It is under National Security review in the u. S. What might we learn today . Jodi we could hear as soon as panel,he outcome of that the National Security panel that is looking at that bid for tiktok. President trump said his staff is very close to a deal, and will make a decision to approve the agreement soon. So it is looking somewhat likely. Oracles proposal does not include this payment to the u. S. Government that President Trump had insisted be part of the deal. Although no one has really figured out how exactly you could do that since it is an unprecedented kind of payment. But the company did say that it will create 20,000 new jobs through the video app and they are hoping that will help win that approval. Representatives executives have a Good Relationship with the Trump Administration. And President Trump has even praised their leaders lately. So this looks like it might go through. The chinese look like it will allow it. And if the u. S. Government allows it, there will be other regulatory reviews, but this would be a big hurdle to scale at this point. Haidi Senior International editor Jodi Schneider in hong kong. The chinese abbasid are to the eu has been speaking to exclusively. He told us the full sale of tiktok in the u. S. Is typical coercion and economic bullying. He said it is possible by the end of this year. [indiscernible] merkel, the leader had a meeting. Think there can be an agreement before the end of the year . Because the europeans yesterday said we are not going to be forced into a deadline. We would rather wait and get substance. But for china, do you want to get it done, concluded, in 2020 . We are in negotiations, that is the most important item. Yesterday, leaders of both parties confirmed the need to close it. It does not stop with the agreement. Eu can starton the the process. China is ready. And the eu court, that is interesting. Because bandar lyon said it is not. It is in chinas court. That you have to make yourself a case for this agreement. So what areas of the chinese economy could perhaps china open up to europe in a greater way . I think china will make a big upp forward in the opening to the european market. Yes, theres globalization and it will not be reversed. It will only open wider. Also has to accept the concerns for the eu. Like energy. And so on. Hopefully, it will address the chinese property. In terms of 5g as he mentioned, and huawei, they still believe they can win contracts here in europe. They are waiting for germany to make a decision on the 5g network. Do you think china still has an opportunity on that . Because it seems that the u. S. Is fully closed and countries like france, u. K. , have said they do not want to work with china on this. That it is an issue of common concern. That is not relying on approach. It is crediting. Is globalolution communication. You should not exclude the chinese and 5g. Without any evidence to prove their product is unsafe. Clear without it being for the socalled highrisk, the eu has thew, 5g security. Well, im so sorry. So you have made it clear that you believe the toolbox is unfairly tilted against china and you told us in european leaders yesterday. Did they give you any assurance that they are not going to force sales or block m a deals the way the u. S. Has done with tiktok, for example . As a government official, i will not comment on the operations of certain companies. That to happenr for tiktok in the United States, is a transaction. Some american politicians are the socalledd Clean Network under the cover of fairness. Nationalher hand, gourity to go ever to after nonus companies without nothingence, there is but economic bullying. Shery Chinese Ambassador to the eu speaking exclusively with bloombergs maria tadeo in brussels. We will have more perspective on tiktok ahead with Eurasia Group senior Technology Analyst ivan xie joining us later from washington. Coming up, facebook may be facing tough times ahead. We look at why the social media giant may be hit with a possible antitrust suit next. This is bloomberg. Loomberg. Is preparing a possible antitrust suit against the social media giant that could come this year. This is of course against facebook. Sources saying an investigation has been in the works for more than a year. Joining us for the latest is our tech lobbying reporter, ben brody. What do we know about how long this investigation has been going on, and how significant this would be . Investigation actually grows out of the Cambridge Analytic a investigation and was disclosed last month last summer. It has been going on for more than a year. It certainly is significant. If the ftc were to take it to court. It makes for a significant litigation risk and a lot of public exposure. You do want to point out that often when you get deep into an investigation, it is not common to prepare a lawsuit. It could be averted depending on what happens in the negotiations and the probe. Haidi right. We saw this happen of course with the google, where they spent a long time preparing doing the similar investigation and deciding not to file the lawsuit. What could facebook potentially do to fend off some of these concerns being held by the ftc . Example might be instructive because all of these years later, we are probably a few weeks away from a google case. Not by the ftc, but by the justice department. It indicates the antitrust remedies can span the gamut. They might be asked to divest instagram. They dont seem interested in doing that. Whats up, some of its other acquisitions. But there are other issues far short of that that they could agree to share certain kinds of data with the competitors that could agree to stop engaging in certain types of competitions deemed too rough, given the power. They might be sharing data on people social networks, social graphs, their friends, their likes. Antitrust remedies can run the gamut. And there are things that they could promise at this stage still. Haidi then brody, our tech lobbying reporter. Coming up next, we are live in tokyo as Japans Parliament get set to vote Yoshihide Suga as the new Prime Minister. We get the latest on that coming up next. A major interview coming up later today. Our Electronics Association chairman joins us to discuss prospects on the 6. 6 billion dollars Stimulus Program to bring spark smartphone manufacturing to india. Been a big proponent of deregulation and if he is willing to test new ideas, that could be a potential positive for japans productivity. People underestimate how much suga is expected to push, especially on structural forms. I think the business is going toside soar in japan the next couple of years. Value seekingssed to be actual true value. I am bullish on him. In thes a powerbroker japanese establishment, but his tenure could be short if he finds unless he finds some way to get himself a new angle on reform efforts. Any sense of a slightly less itlationary policy, reinforces the pressure on the dollaryen. His suggestion for their trajectory of the dollaryen is to the downside, and that is kind of outside politics. The expectation is for the continuation of the economics. We need to understand why Warren Buffett just put 6 billion to work in this economy. Installapan will Yoshihide Suga as its new Prime Minister wednesday, some of our guests weighing in on the countrys future under its new leader. From our the latest reporter at the japanese parliament. What are we watching for . Is expected to win a vote today that would officially making the new Prime Minister. Todays session started half an hour ago. Appointing the new Prime Minister will happen in early afternoon. The new cabinet led by suga is expected to be announced later, 3 30 p. M. Local time, followed by a ceremony at a first Cabinet Meeting to be held this evening. Shery tell us about what the cabinet could actually look like . Has said he wants it aligned with his thinking, regardless of the action. We understand that key changes are the health minister, and local media reports the defense minister will now be reform minister. Taking over for him will be shinzo abes younger brother as defense chief. Other key ministers will stay on. The foreign minister in the finance minister will keep their jobs to carry out policies focused on fighting the pandemic, while shoring up the economy. In terms of diversity, i want to point out that only two female lawmakers are set to be appointed to key positions by suga, one heads up the olympics so as economics may not exactly be reflected here. Women and one of the structure were reform issues was crying out for more progress. What are some of the other reforms that are going to be tackled by the new Prime Minister . Not likely change anything on the economic front, but will focus on some structure structural reforms. He said he would consider lowering mobile charges, saying there is not enough Competition Among mobile carriers in japan. He wants to create a new digital arm, a Digital Industry to focus on improving the technology in parliament. Bloomberg reporter in tokyo, reporting from the ground as we await the election of the new print minister. We are halfway to trading in japan, australian south korea. Lets check with sophie for what to watch. Sophie a halfhour into trading we are seeing stocks next, the nikkei 225 the outlier. Year data shows a near 15 on year drop for japanese exports, as we saw demand from regions outside japan staying week. Weak. Ying quick check of the currencies on the board, the yen up this morning, crosses against the japanese currency losing ground, the euroyen has fallen below the 50day moving average for the First Time Since may, under pressure, and the aussie yen staying below 77. In terms of offshore yuan, holding above 680 after cracking that level on tuesday. , after hitting a january eye on tuesday, hovering at the 1180 level this morning. Checking on the stock movers in ul, auto shares are mixed as more players talk up their easy hyundai, this on and the over automakers getting ready to issue its new suv, and capital america issuing a bond as a Global Borrowing binge continues. This could win approval to participate in indian thatacturing and at move may help smartphone makers diversify beyond china. The Indian Government is expected to approve that plan wednesday. Haidi coming up, betting on the china recovery. Portfolioo the manager of the Fidelity China Region Fund on his strategy. This is bloomberg. This is daybreak asia. The u. S. Violated International Rules what in when it imposed tariffs on china in 2018. It said the trade war by donald trump hurt wto rules. Washington can appeal at any point in 60 days. The ruling relates to tariffs imposed on 230 billion dollars of chinese exports. The wall street journal reports the committee on Foreign Investment in the United States reviewed the oracletik tock deal but made no recommendation. Earlier, the Financial Times said oracle would become a minority holder in the business, with bytedance remaining a majority. Other investors could be offered stakes, including walmart. At the u. S. Is blocking trade njiang region of china in response to its treatment of weaker muslims uighur muslims. It could lead to higher prices on cottonrelated goods in the u. S. Global news, 24 hours a day, on air and on bloombergs quicktake, powered by more than 2700 journalists and analysts in more than 120 countries. I am Karina Mitchell. This is bloomberg. Chineseets turn to stotts. They have risen three Straight Days as investors cheered recovery from covid19. A big part of that, a return to growth and consumption. Our next guest is betting on companies in the china region typed to consumer strength. Ivan xie is coportfolio manager of the Fidelity China Region Fund. Ivan, great to have you with us. Chart on the bloomberg shows China Economic numbers and we sell retail numbers grow for the First Time Since the pandemic. What are market calls you like around this narrative of chinese consumption recovering . Ivan thanks a lot for having me. We really like travelrelated stocks as a major beneficiary from Covid Recovery in the next 612 months. What we have witnessed in china is that there is a huge pandemic backup on travel, particularly leisure travel. High hotelng very occupancy rates in popular tourist destinations. On Outbound Travel, the government will fully resume visas to macau at the end of september, essentially creating a travel bubble between the mainland and macau. This is making macau the only Outbound Travel destination for mainland chinese without putting on quarantine limits. So we are excited about travel related stocks. Buying stocks with attractive valuation, strong Business Models and a strong positioning in their respective sectors. Shery what about the broader Chinese Market . We continue to see this rally in china and across the world and how come everybody is worried about valuation levels. Are we at fair value . Ivan we believe the market valuation is fair at the moment. China is trading about 20 higher than its past five years average. We think it is a fair reflection of a higher mix of new economy companies, as well as strong liquidity across the globe. Mscidition, if you look at china, in relation to both, em historicalth are at average levels, reflecting strong liquidity across the globe. We remain very constructive on the chinese Economy Economic , and seepost covid19 additional growth in 2021 in 2022. 2022 how do you feel that how do and 2022 haidi you feel about the tech world in china . Ivan it will go beyond check. Relations our risk for the market and will remain there for the future. In general, this strategy will apply given that we always think about riskreward in terms of what are likely outcomes of an event and what has been priced in by the market. This allows us to stay alert when the market is over complacent. On the other hand, it allows us to take calculated risks when the market is too pessimistic. You mentioned the tech war and the huawei band, i think the market has been digesting the news since may 15 on the huawei of the shockt impact has been in pricing. It will take a wild to see how much of the impact is temporary and how much permanent. So it takes time. Haidi in terms of consumer names, we have been look at popularity when it comes to multi. Too high for you to find it attractive . Multi is an exceptional brand. It is still attractive. However, we find it more difficult to find riskreward attractive names within the Consumer Staples sector. So in our portfolio, we are underweight in the sector. Shery what about the Banking Sector . Is famous for not only large leverage, but also the fact that they have had to carry the economy towards the recovery, they have had a very heavy burden. We have always been constantly reviewing decisions, and we found that from the you weup point of view, see a cat we see a catalyst driving the banks, and the reward is not enough to offset the potential risks of asset quality, especially when it compares to the opportunistic set of circumstances in other sectors. Shery and this is at a time when we are seeing continued strength in the chinese yuan, this chart showing how it has been lifted to its highest they share, breaking through the key 200week moving average. How are you assessing the direction of the chinese you when you are making calls on equity markets . It is a very fundamentaldriven stock. Input, asge rate is many inputs are thinking of riskreward, but it is not a move we aredown making on the exchange rate. Chinese appreciation is driven by the weighty dollar as well as a strong recovery in china, since china in the covid situation has been first in and first out. This strategy is also a result strong export sector that has held up really well during covid. Would you be betting on in terms of infrastructure and stimulusdriven recovery in china . Ivan what we are doing here in terms of infrastructure, we are looking more longerterm and thinking about structural tailwinds. We are investing in 5g. 5g has a high priority for chinese new infrastructure initiatives, and we are going to see more 5g smartphone models available. That is one area. Haidi ivan, we appreciate your time, ivan xie from the Fidelity Investment fund going through his views. Billion a bill gates breaks down his view of the u. S. Relationship with china with bloombergs erik schatzker, and set a complete decoupling would benefit no one. U. S. China relations of gotten very complex. And as one site doesnt u. S. China relations have gotten very complex, and as one side doesnt trust the other, those things spiral. It will be a complex political issue. I think there are cases when we can have a winwin, working on solving medical problems, working on Climate Change innovation together, so i would hate to see what some people talk about, this complete decoupling. I think that would be a loselose. Eric do been a strong proponent of interdependence with china. Do you see anything that makes you less in favor of interdependence . We werewouldnt say interdependent. We benefit from each other in the sense that the u. S. Sells jet engines and entertainment, and we used to want to sell expensive chips that would highe ipaying jobs paying jobs. You have to understand that where there is a Mutual Benefit, i dont think that has come down to know Mutual Benefit come down to no Mutual Benefit between two countries that are, and i fully understand this, increasingly wary of each others behavior. Shot should that should should the United States be wary enough to ban the sale of technology from certain Chinese Companies . Through, have to think forcing them to make their own ships, if you have a confrontation in the future, not only did you give up as highpaying jobs, but you forced them to be totally selfsufficient. Was that beneficial . It takes very smart people that dont want to just talk in terms of slogans or think in terms of us versus them. That was microsoft cofounder bill gates speaking with bloombergs erik schatzker. You can get more on the deteriorating u. S. China daybreak. Bloombergs subscribers, go to tv on your terminal. This is bloomberg. A quick check of business flash headlines. The u. K. Government is said to be considering attaching conditions to the proposed nvidia takeover, the companys most valuable tech company. Officials are considering keeping Company Headquarters in cambridge. Softbank made similar commitments after it bought the Semiconductor Giant in 2016 for 32 million. s director jeffrey often believes investors are focused too much on the battle of ev makers bastad not enough in the future of hydrogen fuel. On as of nicola have been roller coaster this year, largely because of dividing the company. An early investor in the company says he regrets nvidia and its founder to go public before they are ready. Cloud maker snowflake is said to pere its ipo at 100 20 share, above market range. The California Company is set to sell 28 million shares and is set to raise 3. 6 billion from the offering. Snowflake is a rare challenger to amazon is a provider of Cloud Storage and services. To begin trading in new york under the symbols now. Symbols now. Snow. Bol haidi Sophie Kamaruddin is looking at this in hong kong. Seeing offerings from across industries are to home at the time the chinese economy is recovering. Tuesdays eto express, the chinese express tuesday, is o expresst timing is set for september 22 with the debut set for september 29. Adju groupator while ge is on course to raise 783 million with a 2 discount to adr, so this Company Managing over 20 brands with 6000 hotels in its portfolio is probably hoping to get they sliced of the recovery on the mainland with tourism expected to take off. Home hat about otto auto home . Sophie it is a chinese car selling cited is piloting and offering of 1 billion, compared to the 153 Million Dollars raised in its u. S. Ipo, so outsized. This is still in the early innings. We dont have details about size and the timeline. To give you some idea of how autohome operates, it has a market cap of 11 billion. The company has seen shares rise 15 this year as we see pickup in auto sales on the mainland. To give you a snapshot, the listings in the pipeline is a boon for hong kong, which has seen 23 billion dollars raised from ipos this year, almost half coming from china, jd. Com and net east. And we have another group coming from m financial. Shery Sophie Kamaruddin looking at the flurry of secondary listings in hong kong. Lets get a quick look at our markets. We are waiting for powell, the seeing asianre stocks risking on the wednesday theion, maybe waiting for Federal Reserve to gauge hints about what the retargeting theework look like and potential limits of support from the central bank. The nikkei 225 is flat mostly, just as Yoshihide Suga is about to be named the new japanese Prime Minister, replacing shinzo abe. More momentum on trading in australia, up one day percent. Shery we are seeing u. S. Futures pretty much flat after u. S. Stocks closed higher with gains in tech offsetting sliding financials. The chinese, this is how they closed up, up. 1 with chinese data helping propel the chinese stock markets on the chinese yuan at the highest level in a year, so under pressure. Up, the looming tech risk. Japans Digital Strategy for handling the pandemic. Event, thinkers, scientists and business practitioners. This is bloomberg. So youre a small business, or 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