Tom maybe we should get you out on tiktok to advance the show. This is an extruders story. It exploded last night with the prep this is an extraordinary story. It exploded last night with the president s comments. As you know, bloomberg reporting on the response from the chinese. It has been abrupt. It certainly is, a finders fee, something we have not seen in the past. For microsoft it could mean the deal of the decade. Lets get straight to the bloomberg first word news in new york city with ritika gupta. Ritika good morning. President trump may take executive action if congress cannot agree on a new coronavirus stimulus package. A president told reporters he might impose a moratorium on evictions and an act a payroll a payroll taxct holiday. That ant trump insists pickup in u. S. Operations has stalled, the u. S. Government if tiktok it said the money would come from china or from an american buyer such as microsoft. Earlier in the day, he said tiktok would have to close in the u. S. By september 15 unless an american complete buys it. I. S. Hurricane prompting Tropical Storm warnings all the way into may. Pose a threat to oil refineries. And Northern Ireland faces a brexit. Supermarkets,ing some may pull out, according to the Northern Ireland retail associates. From britain to Northern Ireland could require export certificates, adding an additional 2000 to the cost of each shipment. Global news 24 hours a day, on air and at bloomberg quicktake, powered by more than 2700 journalists and analysts in more im ritikauntries, gupta. This is bloomberg. Tom thanks so much. Equities, bonds, currencies, commodities. I had to redo the data check because buried in all the bloomberg data that we look at every day, i missed the tips yield. Nine,s at negative suggesting doldrums. You do not see it in the bond market. Yields are higher in the last couple of days, but the 10year 1. 0405. At that is an extraordinary statistic to see. It really bodes important for this mystery, which is a friday jobs report. Francine . Francine im looking at stocks, edging down in europe. U. S. Futures also down a touch. Investors are waiting for word on whether we are going to see fresh stimulus fresh fiscal stimulus in the u. S. And whether they get necessary approval. I want to show you the are peson the argentinian because the ministry put some headlines out about 15 minutes ago saying it reached a dead deal with creditor groups at the same time it actually extended deadlines toon august 24. I just wanted to show you crude oil because that is going off, with bp at 40. 56. Senior democrats and out some progress on the next phase of u. S. Stimulus, and agreed to meet again today. Here is senator schumer yesterday after meeting with white house officials. Getting anr we are understanding of each position and we are making progress on certain issues moving closer together. There are a lot of issues that are still outstanding, but i think there is a desire to get something done as soon we can. So we continued the work. Was senatorat schumer speaking on capitol hill yesterday. Joining us now is amy pope. Homelands. Deputy advisor for president obama. Have we turned a corner . Are the two sides or the three or four sides given how the is . T and the republicans finds no one really wins if we cannot find agreement. In the end, no one wants to be the reason why they cannot come to a deal, so i suspect it is a matter of time. Francine what needs to be in the final bill . Amy needs to be support for americans. The most recent Economic Analysis that has come out has shown real hits to the american economy, translating to people on the ground, which means that they have very serious concerns about whether they can make their bills. So that kind of pocketbook impact is going to make a big difference to americans, and Everybody Knows that the election is just around the corner, and that is a moment in time where they want to make sure americans are not blaming them for their particular economic circumstances. Tom the mythology here is out of the 1980s, which is less government, the federal government is something inefficient, etc. , and it steamrolled over the decades to a point where we have a legislature that cannot legislate, certain parties divided, and a president who clearly does not want to be part of the socalled swamp. Are we able to legislate now . Amy that is a great question. The bottom line is that moments like this, real crisis where the economy is struggling, where the coronavirus is really taking home in the United States in a way no one anticipated, now more than ever, it is time for legislators to get together and come up with a compromise. Whether they can do that, ultimately i think in the end they will pull it out, but they are going to keep people biting their nails on the sidelines until then. Compromiseea of seems so incredibly simplistic given the emergency. At bloomberg we do not take sides on this debate. What is blocking compromise . Amy no one wants to look like they gave into the other side. The electionyear politics here and the dynamic that that is playing at this particular moment in time, it just cannot be underestimated. No one wants to go into an election suggesting that they were soft on some issue or they did not get after president trump. I had to say this, but i think talking points and politics are dominating over some common sense, and good outcomes. But ultimately, everyone knows that they have to get there in the end, so i really anticipate they will get there after posturing along the way. Francine if they leave it too will how much more soft people be and how will that translate into voting in november . Who are they blaming . Amy i think they blame the president ultimately. Senate,blicans hold the the democrats have a very small amount of leverage. It is not insignificant. They are and can use it to their advantage, but in the end, people look to the president when it comes to evaluating their own circumstance and whether or not they think the country is going in the right direction. There is a lot at stake here for him, and ultimately the real question is, why isnt he getting into the middle of trying to navigate or negotiate the deal himself . Frankly, some of the rhetoric or the commentary regarding tiktok seems a bit bizarre, about the u. S. Administration getting some kind of finders fee if tiktok is taken out. How will that be taken in the inner circles of the president . Amy it is really unusual, and im sure everyone there is sort of scratching their heads. There are legitimate security concerns about Chinese Technology companies, that one of the reasons why there is a law that evaluates whether or not certain deals can and should go through if there are National Security concerns. That is the right place for Something Like this to be worked out. It is not the president weighing in on whether a deal can happen or whether the United States should get some sort of fee. All of that is highly unusual. Is not entirely clear that he can do that legally. Areim sure his advisors confused as to what his objective is here. Tom what is the chinese objective . We have had a wonderful response overnight from china, with clarity about theft, etc. Do you perceive tiktok as a private company, or in china, amy, is there no such thing as a private company . Skeptical that in china any company can fully function independently. We saw this a year ago with the hong kong protests, real pressure from the Chinese Government to reveal employees who were protesting and take action against them. We should not assume that china will keep its hands off of any company that is operating there. Tom how do you believe that america will extricate itself from this tiktok mess . It is usually unpredictable right now, but does it just collapsed past september 15 . Collapsed. K it could i think the president is using this, as he often does, as a way to distract from more serious issues that are happening. He knows that the issue of china really resonates with his space, giving him the opportunity to look tough and to look like he is negotiating some kind of deal. But really what hes doing is distracting from a much more serious issue that the United States is facing at the moment. Where he really needs to be using his influence. That, for example, is what we were discussing, negotiating a deal to help americans get through this very significant crisis. Francine amy, thank you so much. Amy pope, Chatham House , former deputy Homeland Security adviser to president obama. Later today, the former commerce secretary advisor penny pritzker. This is bloomberg. Pres. Trump the United States should get a very large percentage of that price because we are making it possible. I use the expression it is like the landlord and the tenant. Without the lease, the tenant does not have the value. Lease, and way the we make it possible to have this great success. Tom absolutely historic in the history of this nation, to see any president talk about a transactional fee of some form. This is really difficult, unclear language right now, to the government on eight corporate transaction. It has been bouncing around on a corporate transaction. This has been bouncing around for the last several hours. The chinese have responded talking about theft. Right now we talked to derek wallbank. Im sure you come as everybody else, of any political persuasion, were stunned by these comments. Where did they come from . Derek i really was. The idea of having a sort of finders fee that is involved in a required corporate takeover that is a form of sanction is unprecedented. It is not really clear where the u. S. Government has some sort of legal justification of what the statute is that they will be looking at, that would underpin Something Like that. Certainly there is some case for some unrelated things, but not for Something Like this that anyone has talked about so far. Three years into into hise years administration, is this something that we would ignore because it will go away . Derek something has to be resolved by september 15, so there is a time limit on this. This is not like mexico paying for the it is an openended thing that may or may not happen. At some point trump has two fold on this or someone has to figure out some justification, or there is some fig leaf that they get to put forward. That makes this different than other things. Elegant wayat is an of finding a resolution to this . Goodness. It is hard to say. You talk about job creation, you talk about some other things, you talk about future tax revenue, Something Like that, there are a lot of ways to get around this. To say there is a government benefit, in terms of an actual direct payment to the u. S. Government from microsoft to the u. S. Government, that is a much harder thing to contemplate, to figure out how that necessarily works. Maybe there is a creative legal theory that is going to get put out the next couple of days to weeks, but so far we have not quite seen it. I think everyone was really taken aback by that headline yesterday. Francine what does that mean for microsoft, or whoever buys it . The u. S. Then tied to administration . Is it something that we need to explore further . More to think there is explore here. For microsoft, you look at Something Like tiktok, it is a potentially transformational technology. It certainly is something where people have a lot of options, and most things do not come around every day, so the chance of acquisition here is certainly a valuable opportunity. It is also a valuable opportunity in terms of pricing to get something under pressure potentially. We do not know what the deals might look like, but you can imagine there might be some price pressure here because there is there is this date certain. There is some risk here in terms of getting involved in this, because this is such a governmental mandate. Ifcould potentially change the wind changes inside the white house differently. ,o it is certainly some risk some twitter account risk, lets say it that way, to anything that goes forward in this space. Tom i want to rip up the script here, and we have to go to your attendance in singapore right now. As singapore seen any changes or difference after the uproar in hong kong, the new changes in security and liberties in hong kong . Do you detect any change in singapore yet . Derek we are seeing some explorative change, tom, in terms of people putting money here to maybe invest here. In terms of tax singapore peoples flying here, moving their industry here, we are not seeing that as yet. The singapore government is being careful about how they play this because they are really trying not to look like they are scoring opportunity off of hong kong. That is not the vibe that they want to project here. But in terms of exploration, are we seeing people do this . Yes. Are we seeing people make a choice that they have an offer between which major financial stimulus they want to take, singapore over hong kong . We are seeing a little bit of that as well. Tom how far is singapore from hong kong . I dont need miles or distance, but how linked is singapore to hong kong mentally . Derek it is a three hour flight and there are some connections, but this is a place that operates a little bit differently. The analysis that a lot of people land here, they will say it is sort of a switzerland from asia, whereas hong kong is very much an interest point to china, singapore might be between singapore and china and also southeast asia. Inle they do think of things terms of business regulation and access to capital, they are positioned differently, and certainly since the National Security law has been put forward. They have been positioned very differently, certainly than investors in terms of outside australia,stors near america,. Veryhave gone from two similar things to two very different things. We will see how that manifests over the next year to see if some of those initial nibbles become full on bites and changes in strategy. Tom derek, thank you so much. Derek wallbank in singapore today. Dowres at negative nine, futures at 38. Politics of the moment, a washington frozen on the balance of power. This is bloomberg. Ritika this is bloomberg surveillance. Lets get the Bloomberg Business flash. Bp has cut dividends for the first time in the decade, removing the cornerstone of its Investment Case as the coronavirus pandemic hammered almost every part of the energy business. Of 7. 6n adjusted loss billion in the second quarter. The company smashed it dividend in half. The federal trade commission is investigating twitter for alleged privacy violations. The issue, whether twitter used phone numbers it uploaded to security purposes that targeted advertising. Thate could lead to is your Bloomberg Business flash. Francine . Tom . Want to point out the disinflation on the data screen and go to the 10 year tips in america, breaking under 1 , negative one percent, i should say, a few days ago. Now it is a 1. 04. That is an extraordinary negative real yield in america. All of this heading for the jobs report friday. Francine . And negotiations on the stimulus has become increasingly urgent with millions of americans left without additional aid. Coming up, we speak with scott thiel, blackrock chief fixed income strategist. This is bloomberg. Hike Simon Pagenaud takes the lead at the indy 500 coming to the green flag, racing at daytona. Theyre off. In the kentucky derby. Rory mcllroy is a two time champion at east lake. He scores stanley cup champions touchdown only mahomes. The big events are back and xfinity is your home for the return of live sports. You say the customers maklets talk data. S. Only Xfinity Mobile lets you switch up your wireless data whenever. I accept. 5g, everybody is talking about it. How do i get it . Everyone gets 5g with our new data options at no extra cost. Thats good. Next item, corner offices for everyone. We just have to make more corners in this building. Chad . Your wireless, your rules. Only with Xfinity Mobile. Now thats simple, easy, awesome. Switch to Xfinity Mobile and save up to four hundred dollars a year on your wireless bill. Plus, get two hundred dollars off when you buy an eligible phone. Tom good morning, everyone. Francine lacqua in london and im tom the in new york. My fixed income interview of the day, he is a blackrock, giving us a longterm perspective on the fixed income world, the fundamentals of the fixedincome world. Scott, good morning. I want to go to the 10 year and the disinflation by its. When you see a 1. 04 on the tenure tips, what does that indicate . Scott as a couple things. One is that the breakeven, the spread between the nominal rate and inflation bond has risen a lot and retraced 100 of the collapse in Inflation Expectations we saw, so to price are negative in yield, but the spread or expected inflation protection is around 1. 5 up to about 1 . Despite the real rate being negative, the breakeven inflation, and expected inflation, has risen to 1. 5 percent, oil prices, economic recovery, activity restart, that is all of the things that brought this to empire. Tom i know it kristin princeton, you have to do we see the nominal move up or down, or does the real rate adjust . Which is the greater mover in the next months . Scott thats a great question. We focus on the tenure treasury, but that has been the the volatility has been low. Been moreat has volatile was 30 year rates. As we approach 30 year rates, we take a negative yield on Interest Rate suggesting 150 to 115 and we are closer to the bottom end of that range. Yield have the opportunity to move higher, dependent on thevity restart and president ial election, geopolitics, etc. Francine what happens to inflation 12 months down the line . Clearly, the activity restart will be critical. Energy prices, which are tied thats, are going to be important. There will be a. There will be a period where economy suffered, but recently, some of the highfrequency numbers have come off. There has been a relatively strong rebound in economic a