Likely overstepped. President trump announces rapid virus tests to expand Patient Access and reopen schools. Cases continue to rise as deaths are about to past one million globally. Shery thats get you a check of how the markets are trading. We are seeing u. S. Futures coming online flat after we saw the rally in the york regular session. We saw the s p 500 jumping the most in two weeks, extending that global rally that we saw overnight. Investors really buying the dip after four weeks of losses. We had some rebalancing of portfolios ahead of the quarter end. We have the s p 500 seeing its best day since april. Banks leading the gains. All 11 sectors gained ground. The dollar rally hitting a positive in this rally in the stock market. Wti under a little bit of pressure at the moment. This after it drew some support from the u. S. Stock rally. It was at a oneweek high. We also have some optimism over a potential stimulus deal. In the broader context of things, oil remains down 5 in september due to the uncertain demand backdrop. Not to mention the strengthening dollar story. Haidi lets take a look at how this is feeding through for a potentially positive day in asia. Take a look at trading in new zealand. Outside of 1 . Nikkei futures pretty flat at the moment, but we are sitting up for a pretty full day when it comes to risk in japanese and korean markets. The yen Holding Steady despite broader dollar weakness. Sydney futures up by 7 10 of 1 . Also set up for gains in the session, up about 7 10 of 1 . Take a look at the aussie dollar that has been tracking s p futures, pretty close to that high in the session. 70. 73 is what its trading at the moment. Shery for more analysis on the markets, we are joined by porsche Capital Management owner, nicole. A couple of minutes ago, we heard Speaker Nancy Pelosi saying they will be talking with secretary mnuchin at 6 30 p. M. Eastern on the potential stimulus deal. How much do markets not only in the u. S. , but globally really need another round of fiscal measures in the United States . We definitely need another round of stimulus here, not only for confidence for the American Public and workers, but for the markets. Going into this election as well, that would definitely help. Have seen this rally in the past three days of u. S. Stocks but what was interesting is that vicks really has not gone down that much. It is around the 25 to 30 level for some time. What is that telling us . Michele it is telling us that the market has a lot of uncertainty in front of it through the election and the election results. And the market uncertainty. I would expect the markets to be weak, volatile and partially have downside here as we are waiting to find out who the next president is. Own dataknow from your analysis, you rarely see a president ial election that in the aftermath you dont see a stockmarket rally. This showtent does where the market goes for the rest of the year depending on the outcome for november. Michele you are right. In the Fourth Quarter after an election, you do have strength on average. If you go back to 1940, you are looking at it increase in the Fourth Quarter between 4 to 5 which, given what we have been through this year, that is not terribly a lot but you have incumbents that have been reelected and you have stronger stockmarket. That is a possibility. When that happens, you are looking anywhere from 8 to 10 in the Fourth Quarter. Talk me through some of your conviction calls, in particular, some of your chinese names are interesting. You like a number of the chinese insurers. Michele i think those names have not moved to the degree that u. S. Names have moved. There is still a lot of hesitance and caution in the chinesekets but consumer itself, theres a lot of strength. Looking at the names where a Chinese Company is just relying on their own region, think theres a lot of upside there. A lot of the chinese consumers the yet to go into insurance of Financial Services areas. Starting to see those names. Alibaba has started to pull back. Shery how important is it to hedge your bets in this very uncertain environment and what does your portfolio look like . Michele interesting you say that. Starting about mid august, i started taking some money off the table with my largecap mega names, especially in the technology area. Right now, i have about 20 cash. For most of my portfolio, im looking at unhedged equities at about 25 . Surehave overlays to make if we do have downside here, i dont lose as much. But, then i can participate in the upside. Haidi really great to have you with us. Michele connell with us. Lets get to Karina Mitchell with the first word headlines. Karina chinas imports of u. S. Goods in the first eight months of 2020 were less than a third of the total target set for the year in the phase i agreement. Facing promised to spend an extra 200 billion on goods and services this year and next, but has barely managed 33 of the overall goal. 4 billion. Under house Speaker Nancy Pelosi says the white house will have to accept much more spending if theres to be any hope of a stimulus bill before the election. She says she still hopes they can bridge the trillion dollar gap to bolster the economy. The democrats pushing for more than 2 trillion in new funding. President trump does not want to go further than 1. 5 trillion. The u. S. Is being warned it will not reach its potential unless society addresses gaps in economic opportunity. Cleveland fed president says citizens do not have an equal chance and the coronavirus has shown how vulnerable communities are. She says unless action is taken to promote an inclusive economy and end systemic racism, the u. S. Will never achieve its goals. Ecb president Christine Lagarde says policymakers are ready to deploy more stimulus weapons to help the recovery. She told lawmakers that the future remains uncertain and incomplete with consumers cautious about spending and investment. She says the ecb stands ready to adjust its range of policy instruments as appropriate. 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. Im Karina Mitchell. Back to you. Haidi still ahead, commodities a for the worst month since march, putting strain on australias mining earnings. We will discuss the outlook. Next, the federal judge who blocked trumps tiktok band says washington likely overstepped its authoritys, marking the second time this month the court several against the white house. We have the details next. This is bloomberg. Haidi the judge who blocked President Trumps ban on tiktok says the u. S. Government overstepped its Legal Authority and failed to provide enough evidence that the social media app was a threat to National Security. For the latest, lets bring in Stephen Engle. What has been the takeaway from these Court Findings . Eah, probably that the United States is showing off it has an independent judicial system. Keeping the Trump Administration or any administration in check if they are overstepping their bounds. That is what this District Court judge ruled, that under the Emergency Powers law that President Trump invoked, that he was overstepping his bound in trying to ban tiktok. There was a similar case a week ago on september 19 when a separate magistrate, a federal magistrate ruled similarly on the trump ban on wechat. Both cases show that in their findings, that the u. S. Government was able to adequately provide a lot of evidence that china poses National Security threats, but findingsichols sealed that were revealed monday, found that so far the Trump Administration has not been able to adequately show that tiktok and, in the other ruling wechat, have themselves been a National Security problem. That is the root of the issue. Nichols said the u. S. Government provided ample evidence that china is a risk to National Security, but he added the evidence provided about tiktok itself is less substantial. We could hearken back to comments a week ago on september 19. She used the term, scant, little evidence that wechat was a threat to National Security. Emergency powers invoked by President Trump, according to judge nichols, do not allow him to inhibit personal information given that tiktok is mostly used to share videos, photos, art, news and the like. It is not plausible, he says, that any of that content would fall under the espionage act. The u. S. Argues that tiktok and wechat are mining data of u. S. Users, which could be handed over to the Chinese Government for security threats. Covers ruling does not the second executive order on tiktok, that 90 day order that was invoked on august 14. That expires on november 12. It requires the sale of u. S. Assets of tiktok to a u. S. Entity. Shery we are hearing china will draw up its next fiveyear plan. Given all the tensions with the u. S. , how critical will this next economic blueprint be . Stephen absolutely critical, especially if you consider as well that in 2018, president xi jinping pushed through changes to the constitution which allowed him potentially to stay on as president beyond the end of the term in 2023. This next five years are critical for chinas development path. But in addition, we are hearing from the news agency that in addition to the next fiveyear plan which will cover 2021 to 2024, thereabout, is also going to have a longer term plan develop through 2035. That has led to renewed speculation that perhaps president xi, do you see here, is planning to stay on beyond the term that expires on 2023. It is going to be critical because domestic consumption is a big driver, as well as innovation and the possible, what we are seeing already, the decoupling with the United States. The developed innovations and domestic consumption, separate yourself, if that is the way the world is going from its large st trading partner, the u. S. Shery Stephen Engle with the latest on the chinau. S. Tensions. Our chief asia correspondent. Still to come, the latest on the virus in the u. S. The Trump Administration plans to send 100 million rapid test kits to the states, urging they be used in schools. This is bloomberg. Haidi President Donald Trump warned americans to expect more coronavirus cases in the weeks ahead as the u. S. Deploys tens of millions of new rapid tests. It comes as worldwide cases continues to rise, with deaths on the brink of crossing the grim one million milestone. Michelle cortez has the latest on the pandemic. Who is going to get these rapid tests . How much of an impact will it make . Because we are hearing the president draw the correlation that more tests will mean more cases. Michelle more tests will mean more cases, but more importantly, it will mean more information. What we are seeing is a coordinated rollout of information from the Trump Administration when it comes to testing to the states. You will remember back in the early days of the pandemic, all the states were bidding against each other to get access to things like ventilators and ppe. What they will do this time is rollout these tests across the country so that the governors dont have to compete with each other in order to get them. Then, they can distribute them within their state. It is going to help them control the virus. Certain things were Nursing Homes are hit hardest, maybe they will geet him. In other states where they will focus on schools. It will be for everyone where these tests will start getting out there. Shery in the u. S. , people seem to be going about life as normal as it could get during a pandemic. Really, we have not seen hospitalizations and deaths increasing as much as new cases have. So, what are we expecting this winter . Michelle you are exactly right, that we have not seen a surge in hospitalizations and deaths even though we have seen increasing, elevated numbers of cases. That boils down to the idea we are testing people, catching the virus sooner and doing a better job of treating them in the hospital. But there is very concerning data starting to come out now. What we are seeing is these declines in hospitalizations and deaths have stabilized. They are starting to plateau an increase. This is during the summer and early fall. Respiratory viruses circulate normally into winter. Right now, we have seen almost no respiratory virus. We are seeing elevated cases and a consistent flat level of hospitalizations and deaths. Epidemiologists expect that never to be decreased dramatically as we go into the first full winter with coronavirus. Shery michelle cortez, great to have you on. President trump continues to raise more questions than answers over a covid19 vaccine, saying over 100 million doses will be available this year. That is after previously stepping hinting at over the fda. Joshua sharfstein told bloomberg its vital the vaccine process is not undermined by politics. Joshua Vaccine Acceptance is extremely important because you can have a great vaccine, but if they say vaccines do not save lives, it is vaccination that saves lives. People are going to have to want to take it. What thats about is the confidence that people have in the process. Unfortunately, i think the white house has undermined that confidence by putting in such an intense political context and it think that is why there are number of steps of the fda can take to depoliticize it and make it about the science in a way that can inspire doctors to feel confident and people to feel confident about it. Tom this came up four, five, six times this week. Lets get an update from you on a monday as it gets colder out there. Will there be a shortage of other vaccines shots, like a socalled flu shot . Joshua in a way, im hoping there will be a shortage because that will mean everyone is getting a flu shot. We want to have as many people as possible to get a flu shot, particularly people at high risk for flu, and particularly for people who may not have gotten the vaccine before and can get used to getting vaccines through the flu shot which will protect them during the flu season. Unfortunately, there probably is not enough flu vaccines for the entire population so people should go out and get the flu shot. If we run out, we run out. Hopefully, we run out early so we can try to protect as many people as possible. Tom explain the medicine of a given virus or bacteria overlaid on the likelihood of having great harm from the covid virus . Joshua having both together . Tom yes. Well said, thank you. Joshua no problem. There are a couple of problems that could come up. One is just many more sick there are some years the flu fills up the hospital by itself. On top of that, you would have a pandemic. Thats a really scary scenario. I think it is less likely if people wear masks and keep their distance. The same thing the key people from getting covid also keep people from getting flu. The countries in the Southern Hemisphere where people are taking a lot of precautions, theyve had very mild flu seasons in their winter. That is what we are hoping. If people disregard masking and are going out and doing their things, flu could start circulating and you will see worse problems both with covid and flu. The process of getting medical care for flu, bringing people in contact with covid. I think neither places will do very well on both or poorly. Francine what are monoclonal antibodies . From extensive reading, as far as i can make out, they are made in a lab and protect against infection. What do we know about these monoclonal antibodies to fight covid19 . Joshua it is a little bit like plasma. Plasma is all the antibodies people have. Monoclonal antibodies are taking one or a few of those antibodies that are thought to be the most effective to protect against covid19. They make a lot of them in they produce them. It is not taken from somebody. The idea is they can be given to people who maybe are just exposed to the virus but have not gotten sick yet. It can keep them from getting sick in the first place. It also could be used as an early treatment. There is some hints out of the studies that they may be effective, so we will have to see when the studies get reported. Thats another tool in the toolkit to protect people. Haidi Johns Hopkins vice dean Joshua Sharfstein speaking to tom keene and francine lacqua. Johns Hopkins Bloomberg school of Public Health is supported by michael bloomberg, founder of bloomberg lp. Lets get a quick check of the latest business flash headlines. Nippons plans to take its wireless carrier after a tender offer that will be the largest effort in japan. The proposed buyout could be as much as 38 billion based on a 30 premium. It already holds 66 which is japans largest mobile carrier and sixth biggest company. Uber shares jumped on reports it is considering buying a ridehailing venture by bmw. Inr has expressed interest the program after the venture struggled to gain traction from investors amid the coronavirus. Bmw and daimler merged there operations last year which included overseas ridehailing apps in france, greece and romania. Virgin galactic surged the most in five months as investors welcomed space tourism. Bank of america and seth klein initiated by ratings, making the stocks one of the most actively traded of the day. Bank of america says Virgin Galactic is unique because it builds and operates its spacecraft. It says it is a true space innovator. Grew after an investor day that reinforced potential for growth. An upper form rating on the stock, saying alibaba continues to see multiple expansion opportunities. Jeffries say buy. Huge earnings. Alibabas investor event continues through wednesday. Lets take a look at how asian markets are setting up for the day. Really playing follow the leader when it comes to the u. S. Rallying after four weeks of declines and banks leading the s p 500. A pretty broadbased rally. Kiwi stocks up by 4 10 of 1 . Sydney looking to open up about 0. 7 , judging by the futures session we are seeing. In japan, the nikkei 225 trading in chicago modestly higher with the yen potentially tempering some of those gains. Coming up next, nancy pelosi the white house will have to agree to much more spending if the stimulus deal were to be reached before the election. We will get the latest on the wrangling from washington, just ahead. This is bloomberg. Karina i am Karina Mitchell. Chinas leaders will meet next month to finalize the latest fiveyear plan as president xi prioritizes innovation and domestic demand to counter the threat of decoupling from the u. S. Theoctober 26 to the 29 for meeting to discuss development 2025 as well1 to as longerterm goals. That has sparked speculation that xi intends to stay in power beyond his normal term. The eu says it will not abandon brexit talks with the u. K. Even if the Boris Johnson government retains its plans to break international law. The two sides resumed withdrawal talks despite the u. K. s attempt to rewrite parts of the divorce bill. The eu says it will continue to talk but renew his threat to take legal action against the u. K. As a talk goes down. The u. S. May more sanctions on iran to further distance its economy from the outside world. Sources that it may target at least a dozen banks and label the entire Financial Sector offlimits. Irans economy has been crushed by u. S. Sanctions and further moves would leave it isolated from the Global Financial system. Joe biden says he will return to the 2015 nuclear deal if he wins in november. Hong kong has banned a mass protest for Chinas National Day on thursday, rejecting an application for a rally. Last year, more than one Million People marched against the government extradition legislation which led to the bill being dropped. Authorities have repeatedly rejected applications for protests since imposing a sweeping new security law. 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. This is bloomberg. Shery. Just House Democrats have released their updated stimulus proposal to support the u. S. Economic recovery. Speaker nancy pelosi says she talked with secretary mnuchin on the treasury deal any moment now. Lets bring in our compression congressional reporter, Emily Wilkins. We are seeing that Speaker Pelosi urging the call for the 2. 2 trillion dollar proposal put a huge gap not only from what the white house has offered, but from the skinny package by senate republicans. What sort of compromise could we expect . Emily absolutely. There are several different factors all going into this. They have been stuck at this impasse since early august. Democrats saying the republicans need to come up at allow them to spend more money to make sure. Republican saying no way, we have spent enough. We need to think about fiscal conservative, you cannot spend that much. The democrats at 2. 2 trillion, the republicans have gone as far as 1. 5 truly dollars. At this point, it is whether pelosi and mnuchin can come to a cover mys. We have heard Federal Reserve say we need more stimulus. Pelosi has her democrats within her own caucus say they would like to have more stimulus. So, there is a will to get this done, but its incredibly difficult right now as we have seen over the last couple of months, particularly within an election just five weeks away. Haidi what is the political impetus for both sides to get this done . How much of a damaging blow would this be for President Trump going into the debate and the boat itself if another round is not concluded and delivered by the election . Emily whatever race you were looking at for this upcoming november, the number one issue is the coronavirus and the response to the coronavirus. Yes, while americans while businesses have the initial funding, all of that has gone away at this point for the most part. There are lots of industries that are in a lot of trouble. One thing you did see democrats come back and add between the last spending bill proposal and this one is more assistance for the airlines. Because if they dont get more money soon, early october, they are going to start seeing massive layoffs. We have seen the Trump Administration have fresh sanctions on irans financial system. What would they look like and where does the u. S. Stand visavis all the other countries in the world that have actually have an Iran Nuclear Deal in place . Emily the sanctions would put a huge strain on the countrys Financial Sector. 14 banks that have already not been harmed under previous sections. It is meant to close the few remaining loopholes allowing iran to earn any sort of revenue. Its interesting to think about exactly when this is coming. Trump pulled out of the Iran Nuclear Deal. Biden has come out recently and said if he wins, he would like to get back into the nuclear deal. With these sanctions, it would make it a little harder for biden to be able to get the u. S. Back to where it was under the obama administration. Haidi Emily Wilkins in washington for us. Coming up next, commodity set for the worst month since march, but new strains have been put on australias mining and energy earnings. We will discuss the outlook. This is bloomberg. Shery you are watching daybreak australia. A quick check of how markets are trading. Upside for u. S. Futures. This after u. S. Stocks jumped the most in about two weeks in the regular session. We are seeing kiwi stocks to the upside, around the three week i. Japanese futures higher at the moment after the nikkei came off its best day in the month. The japanese yen Holding Steady. Asx 200 futures also looking to the upside. Really positive sentiment after we saw the s p 500 seeing its best threeday gain since april. Take a look at the commodities market because we are seeing oil paring back some of the earlier declines, trading flat, around the one week high. We have some optimism over a potential stimulus package in the u. S. , as we await Speaker Pelosi to speak to secretary mnuchin anytime now. It was supposed to be at 6 30 p. M. Gold futures gaining ground and expanding gains. We saw the best day in about a month after that slump last week. Copper futures higher by three tents of 1 . We are seeing signs of a tighter Copper Market and that has helped the sharp rebound over the past six months. Iron ore futures not doing much, but weve just had the biggest weekly decline since february as weve had news that the china stockpile hit a sixmonth high. Haidi lets get more on that because australias earnings are expected to decline. That is according to the government itself. The department of ministry, science and industry. Iron ore and gold prices surge. Vivek dhar joins us now from melbourne. Great to have you again. So, this is really something that was a long time in the making. We could not save these peaks. Ore, when it came to iron that is certainly the case. Ton, when you have production costs at 25 a ton, we knew this was too good to be true. Really, the current dynamics in the market where we saw chinas demand increased significantly on the back of the Infrastructure Spending, we knew at some point that impulse would fade. We are not there yet but those other factors that have really led to Iron Ore Prices lifting. Is very we have seen much. Haidi i want to throw up this chart that takes look at the situation when it comes to Port Holdings in china. Taking a look at this chart. You do see these levels when it comes to the rally potentially plateauing in the couple months. We see that shift in chinese steel output. Given we are still seeing the infrastructure recovery in china , is there still the opportunity for further gain . Vivek yeah, like, i would not look so much at chinas iron ore stocks. It is more important to look at where the big grades are in terms of the stockpile and that is what you do when you look at the headline number. I would say where the tension reneeds to be paid for Iron Ore Price direction is chinas margins. What we have seen this was the case last year those margins dip into negative territory, we could see a quick fall of Iron Ore Prices. Saw year, and 33 days, we iron ore go to a peak of 126 a , all the way down to 86 a ton. Now when we talk about steel mill margins, we are in single digits. Its very precarious in terms of balance, but if we dipped lower, the risk is we could see Iron Ore Prices fall quite sharply. Our view is we will hold these levels and potentially consolidate, given that we think there is still more Infrastructure Spending to go for the remainder of the year. Shery let me turn to the surging u. S. Dollar because that has so many implications for the commodities space. This chart showing with a strengthening dollar, we saw gold log its biggest weekly drop since march. Where we headed in the Precious Metals space when gold does not seem to be trading as a defensive asset, it is more like a risk asset at this point . Be a gold is going to very interesting case over the next few months. The correction we have seen over the last week or so has really come about because, yes, the u. S. Dollar strengthened but the other factor in the background is poverty probably more pivotal, what is u. S. Inflation expectations. That has come off and that has weighed on the Precious Metals as well. That is something to keep an ion when you are looking to the future. Our view of gold is at the end of the day, we are going to see some consolidation but we see limited upside. We are thinking that gold over the next couple of years will slowly inch higher, potentially the 2000 an ounce level. For us, the real risk when we talk about gold is what is the level of policy interventions we will see from the fed . Right now, we saw the stronger dollar come about because of Global Growth and u. S. Fiscal package not being agreedupon. Really, the story when we look at whats going to happen in u. S. Fed policy is are we potentially going to see considering options like negative interest rates, monetary financing . Any of those scenarios develop, that would push gold well north of 2000. That is something we are keeping a close eye on because that is something that will be the driver. Shery what about Precious Metals like silver, for example . Do they get upset by the fact we could perhaps head towards a greener world and that could boost their appeal, despite all the macro challenges you mentioned . Vivek that is actually a very good question because in terms of what we are seeing, were seeing the macro will overwrite any of the macro trends for the next few months. Ry, we terms of that sto have seen some of that already happening. Before we saw the correction last week, it was one of the bestperforming assets of commodity classes this year. It has benefited from the industrial demand element which is about half silver demand. That is a fundamental reason it is being supported. But, we have seen it is not going to be the main driver in macro forces right now. We saw oil rising to the highest and more than a week. In terms of the mediumterm outlook, are the risks still more skewed to the downside, particularly as you have both demandside concerns over the virus and potential multiple waves of infections now increasing supply concerns as well . Vivek we are in that boat. We have a Rising Oil Price forecast. We have it at 46 a barrel for brent in the Fourth Quarter, rising to 55 a barrel by the end of next year. We see Downside Risks entirely consistent with what you said. Our concern is theres a lot of Spare Capacity. While opecplus is holding onto a lot of that, the u. S. Component, which is about 2. 5 of Global Supply right now, that is something that is attractive. Theres a big hurdle coming in the 40 a barrel. Thatmand is too weak, supply could push prices back down again. Those demand concerns and Spare Capacity is a major concern in terms of the oil price. Brent market continues to show signs of weakness. The premium of wti the smallest since late may. Whats going on in that front . Vivek we are looking at where the picture is starting to really turn. Say, libya. We have seen libyan supply come back. That is putting pressure on the market. The benchmark. I think there are some questions being asked about demand recovery in europe. I think thats another factor which is really going to weigh on the benchmark as well. I think those are the two key factors right now. I think thats the case. Dhar, great having you want for your insights. We will have more on the outlook for Precious Metals later today. Suki cooper will be on Bloomberg Markets at 1 10 p. M. Sydney time. If you are watching from hong kong, that is 11 10 a. M. Next, we will dissect the 1500 rally in australian penny stock brainchip. This is bloomberg. Haidi the chinese electric vehicle maker begin making deliveries of its new model last week, about two months after he began taking preorders. We spoke with the chairman and ceo william lee at the beijing auto show about demand for the companys third model. In july anddemand august was Even Stronger than actual deliveries, as we had a conservative sales estimate at the beginning of the year. Our supply chain partners were not higher ready for even higher production. We are working to solve this problem in the current quarter. We believe Production Capacity will have improved in september. We will keep boosting capacity in the coming months, especially starting deliveries during the weekend. A 25,000 tesla. What do you know about plans . Can you imagine that would have the 25,000ctured, tesla in china given the labor costs and the supply chain . Costsoubtedly, battery for the entire industry have been declining. We reached a growth margin of 10 in the Second Quarter and will increase each coming quarter. I believe the overall battery costs decrease will help promote evs. In the chinese market, the average price for our cars is more than 60,000 which is 15,000 then teslas average in china. We have a lot of work to do in this market. In the long term, we will launch more Cheaper Products with that is not our priority. Elon musk has talked about potentially launching one Million Units in china. How much of a challenge is tesla now . I think auto products are not only about cars but more importantly, serving customers well. For families, a car is not a small expense. It is big spending and closely related to safety. We pay a lot of attention to quality and safety. Factor in a big seeking rapid expansion. Shery william li speaking to Tom Mackenzie at the beijing auto show. Dont miss her interview with the founder and ceo of travel experience platform, the taipeibased startup just raised to 75 million in Series C Funding during one of the worst times for global tourism. That is at 1 30 p. M. You can watch in sydney, 11 30 a. M. In hong kong. Heres a quick check of the latest business flash headlines. House let makers planning legislation to reform air craft manufacturing. Measures released in washington would tighten the faas control of boeing and other companies and their ability to let employees sign off on plane designs. They would also require an expert panel to review boeing. The bill is backed by both sides of the aisle on capitol hill. Shares ralliedd the most since march as bonds showed tentative signs of stabilization after the property giant reassured investors about its finances. The worlds most indebted developer issued a statement, saying its operations are stable and healthy. Shares climbed 21 in hong kong and the dollar bond rose four cents on the dollar. s counteroup lbmh suing tiffanys over the dropping of a planned 16 billion purchase. Tiffany has mismanaged its operations amid the coronavirus pandemic, thereby justifying its withdrawal from a deal. Lbmh adds the jeweler business has been devastated by covid19, providing proper grounds for a dropout. The two sides have declined to sit down and discuss the issue. Jp morgan has told thousands of staff across its consumer unit they can continue to work from home until next year, breaking with the companys wall Street Operations which ordered senior traders back to the office. The directive applies to u. S. Based employees in the consumer unit which is the banks biggest and deploys 122,000. People the order will not affect jp morgans retail branches. Andi a meteoric rally in australian penny stock is fast unraveling. Not just market washers the company itself. Lets bring in Jackie Edwards, earlier,of brainchip what has been driving the surge in the company this year . Jackie there are a couple of factors behind brainchips monster surge this year. Technology stocks in general have soared as the coronavirus pandemic but the spotlight on companies that are focused on tech and innovation. Brainchip focuses on artificial intelligence. It is developing a processor that can be used in all sorts of applications. That processor is not available for commercial use yet. Investors globally have been chasing growth shares this year and piling into the tech sector. Also, brainchip signed a lot of partnerships the last few months. It signed a deal with a nasa subcontractor earlier this month. These partnerships are assigned to investors that other established businesses are seeing potential in brainchips tech. Lastly, this is a stock that has been hyped up by Retail Investors on online forums like reddit. We have seen this phenomenon in the u. S. Where Retail Investors are discussing smaller stocks on these forums and causing these massive shareprice divots. That is happening in australia. Brainchip is one of the stocks that has been widely discussed. Shery what are analysts saying about it . What are they saying about the rise and fall of the valuation at this point . Jackie there are some mixed opinions about this stock. I mentioned before that the flagship product that brainchip has come it is not available for commercial use yet. Surprisedeo was very that at one point it was up 1500 this year. There are concerns that perhaps the stock was overvalued and Retail Investors have been overhyping it too much. It did lose about half of its market value since its peak. There are some Market Participants were pretty optimistic about the company and the potential for its technology to take off in the long term. It will be really interesting to see what happens to this stock next after it has its wild ride this year. Shery bloomberg equities reporter Jackie Edwards there. A quick check of the markets right now. U. S. Futures still gaining 2 10 of 1 after we saw the regular session rally that took u. S. Stocks up by the most in two weeks. We are also seeing kiwi stocks gaining ground for a third consecutive session. Sydney futures higher by 6 10 of 1 . The aussie dollar has been rising after westpac pushed up its forecast for rba easing to november instead of october. We are continuing to see some strength. The japanese yen Holding Steady, but now we are hearing yen positions reached a record high last week so watch out for that as we have japanese futures higher. In the next hour, we will get the news of julia hermon on emerging markets, as multiple houses flag risk. Eurasia group china analyst Chelsea Broderick on tensions between china and the u. S. Will impact the election. This is bloomberg. Shery daybreak asia welcome to daybreak asia, welcome to daybreak asia. I am shery ahn. Haidi i am haidi stroudwatts. Our top stories this hour, asia looks set to extend the global rally after widespread gains led by financials. Wall street snapped four weeks of declines. New details emerge about why a court block to the tiktok van in america ban