Australia. You are watching President Trump giving a press conference saying he is looking at a term limited payroll tax suspension. We have seen democrats and republicans oppose any action on the payroll tax, but the president is saying he is exploring additional executive actions and relief. He says he cannot go along with what he calls bailout money for the states. We have seen the states try to get some sort of relief. President trump says the goal is to protect Vulnerable People and avoid stringent lockdowns. He is headed to ohio tomorrow. He says that no states have s sn outbreaks or get worse since tuesday. We have seen some encouraging vaccine news. U. S. Futures at the moment are looking flat. We will see how things are just shaping up for the asian market. Our reporter is in hong kong with the latest. Futures are mixed and mostly flat. Plenty is happening this thursday with earnings galore. Later today, the r. B. I. Is in focus. Bank will pause after cutting this year to shore up a slowing economy. Lets get a snapshot of gold. Continued gains for the precious metal above 2000 are flashing overbought signals. B of a is sticking to the call for 3000 per ounce in 18 months. Investors could potentially shift. The greenback caps a seventh day losses while the you want you on trading at a five day high. Beyond that could open up a path to the 2020 high. A says that could form and openly suggest the pair is going low as 650. Even as stocks continue to hit milestones, there are warnings that this is not a buy and hold environment. I want to put up one of the many might cause doubt over the rally we are seeing. This chart is near multiyear highs. Is this inevitable . I am curious about your strategy of pulling back whenever you see a 3 10 gain in a stock. How is it working out for you . It has worked out well. There is an incredible individual position of volatility. Its not a i and hold environment. Someink about renting securities during earnings season especially as we are getting positive headlines whether it is we are near a virus vaccine or there might be stimulus. Economy is stalling while the markets are increasing. Does that strategy work for tech . You see these eye watering valuations. To thetraditional traditional metrics still apply . It does. It is a proprietary framework that we used it looks at price volume volatility and it works not only on broad tech indexes here in the u. S. And individual names but also Technology Names and europe and asia. You can look at individuals and say we might have a fundamental real on something. There are still signals of when it is overbought or oversold as we have been able to do that for positions not just here in the u. S. But also abroad in the Tech Services area. Gold is one of the most overbought levels in a decade. Words searches with the by gold are the highest since 2011. How do you trade around your gold position . It seems that everybody likes metal right now. There are two things you look at. You look at do you want to own it or not . For months come the answer was yes there are levels at which it is overbought. I can say that we bought various gold miners because it was at a massive overbought investment framework. Average of the investor, someone listening to the program, what they do is you have to say it is going to be its atup and you think alltime highs, its probably not the day to fight. This is the type of thing that what is the price i am paying for it, what am i expected to get out of it . Is it Risk Management . So it keeps me afloat . Is it a big correction for mi looking to hit the target in the next year . Those are two very different scenarios. The mostfrom one of overbought to oversold, we are talking about the u. S. Dollar which is now at the most oversold level from almost a decade. We have right President Trump talking about the stimulus talks. We have run out of the Unemployment Benefits for the additional enhanced unemployment insurance. Now that you have a weak dollar which raises the cost of living for people here, how are you trading that idea that people will be running out of money because of consumption in the markets . We see the fed as losing control of the curve over time. The inflation is increasing and our currency is being devalued that has been happening this year. We do trade around that as well and also connect that to gold. What you have seen with the fed is that they were able to fix floor on highyield and junk bonds but they didnt fix the economy. Assetd, they fixed prices. You have to say why does that matter in terms of your question . The devaluation of the dyer is fixing at a higher cost of living and the people who cannot afford it the least at a time when they have lost their jobs. Benefitingors are from the depreciated dollar which might translate into appreciation for the yen and the euro but that has implications like you just talked about as higher gold prices or emerging markets doing better are often the contrary reflection of that dollar movement. Cliques always great having you with us. Thank you. Still ahead, the national memberant associations joining us to talk about the impact on the industry. First, we talk to dr. Anthony fauci on the effectiveness of a vaccine and more. This is bloomberg. You are watching daybreak australia. The pentagon is contradicting the white house over the massive explosion in beirut. President trump said it appeared to be a bomb but mark esper says it might be an accident. More than 100 people died in the blast. The Ammonium Nitrate was seized from a cargo ship years ago. The u. S. Government is pushing debt to new extremes to cope with the budget deficit not seen since the country mobilized from world war ii the treasury is expanding plans for borrowing in the coming months aiming to sell a record 112 billion of securities next week. The sale exceeds most expectations but wall streets appetite seems strong and the fed will take 80 billion per month. The Trump Administration is warning there will be no deal on a virus relief plan if a stimulus package isnt hammered out by the end of this week. Democrats and republicans say they continue to make progress. Other Officials Say it will come to nothing if an agreement doesnt come in the next couple of days. Some republicans put the chance of that happening at 5050. Gainsmarket data says slowed last month. In junellion job gains were followed by a gain of 167,000 in july. That number trails all estimates. A slowdown would be in line with other data that shows the labor market is in danger of regressing. Global news 24 hours a day on air and on quicktake by bloomberg. Powered by more than 2700 journalists and analysts in more than 120 countries. Im karina mitchell. This is bloomberg. The u. S. Governments top Infectious Disease expert, anthony fauci, says a vaccine of 50 effectiveness could still help if combined with Public Health measures. He also told david westin there is no vaccine developer that is ahead when it comes to confirming the effectiveness of the drug. And truly putting it behind us. Of virusesal history particularly respiratory viruses such that they are such that if they are going to be as capable as this to virus is from spreading cumin to humans, ultimately if you want to put the nail in the coffin of an outbreak, you need a vaccine. However, there are many things that we can do from a Public Health standpoint that can more adequately control this globally and domestically. They are not particularly complicated things. They are things we keep talking about. Five or six fundamental principles. Things like Wearing Masks universally. Indoor and outdoor. Keeping six feet distance. Avoiding crowded places. Outdoors is always better than indoors. A clearcut fundamental awareness of the need to wash hands is frequently as you possibly can and stay away from places like bars where you congregate and crowded places. If we universally do that and one of the problems we have in this country is that the understanding of the seriousness of this as a pandemic varies depending upon what Demographic Group you are in because i have never seen an infection like this where it goes from 40 of the people who have no symptoms at all very heavily weighted toward young people who do quite well. Have minorwho symptoms, moderate symptoms, severe symptoms, hospitalization intensive care and death. What if we get a vaccine that is 50 effective or only for a few months . Then what do we do . Lets talk about the percent effectiveness or efficacy then durability. They are separate. A 50, i hope its going to be more than 70 . 60 , that is 50 or efficacy is totally value added if you complement it with Public Health measures. To give you an example historically, if you look at measles, measles is an amazing vaccine. It is 97 90 8 effective. The only thing you need to do with measles is vaccinate people. The high degree of efficacy which gives it an amazing degree of herd immunity to the population whereas when you have a vaccine for a disease in which you can do Public Health measures to mitigate against the spread, you put those two things together and i would love to have an 80 or 90 effective. If we get to percent or 60 effective, i will feel good about that. With regard to durability, that is a different story. If you get a vaccine, you will at least have a months of protection to get you through a season. If it turns out that you get more than that, all the better. If it turns out you need to boost someone, that is ok also. We can give a booster shot the way we give booster shots for other vaccines. As a practical matter, who is ahead in the race or a vaccine . Mean. Depends on what you temporarily or efficacy . There is no one ahead efficacy because the proof in the pudding is that you need to do the large phase three Clinical Trial to determine efficacy and to confirm safety. That was dr. Anthony fauci. While companies are raising to come up with a vaccine, many are in line to get the drug out first once it comes out. Ahnson johnson has forged 1 billion path to supply a drug. There are so many points of interest from that interview with dr. Fauci. The end of the day, the points that david raises we dont know when we will get a vaccine or how effective it will be or the supply. You have governments around the world in a race to secure supply even before we know any of the details. You are absolute right. It is interesting because we are starting to see our low points and high points. Johnson johnson today with the news that they sold 100 million doses to the u. S. That puts it at about 10 per dose. Dose vaccine which is 20 per person. Showed, we dont know if youre going to need that every year or every six months or every five years. On the flipside, Madonna Moderna doesnt have a deal. About or they had hundred Million Dollars in commitments already and they are working to come up with other things. Their price is already two dollars30 seven dollars per dose. Thats about four times what Johnson Johnson is doing. It will be interesting to see how it all plays out. Again, its the context of not knowing if any of them works. Lets talk about safety because we heard from the who wording caution from the wash and russian vaccine trial. That thetant is it safety doesnt get compromised and are we seeing signs that could happen . What we are hearing they are doing in russia is there going to start largescale vaccinations in october. Remember, we dont have any midsize trial results yet in the west so that we would know if any of these are safe. We have seen with vaccines in the past that if it doesnt work, you could make people more susceptible to the disease and they could end up having a more severe course of infection if they get it. If there is a safety issue. The idea that russia might start vaccinating their populace on a large scale without those studies is very concerning and thats what the w ho is talking about saying please make sure you have done the safety work first before you start to put your people at risk. That was our health care reporter. Coming up, we will have more on vaccines and armor, it has been a ride for vaccines this week. This is been buried. This is bloomberg. Health Care Companies were front and center in the last round of earnings including moderna which is in the first trials of its vaccine. Quarter beat the highest estimates out there. Cost per share of . 31. It beat the expectation of . 33 per share loss. Also see coming down just a little bit. It did say it would be pricing is covid19 vaccine below value. If you look at the yeartodate chart, you can see the fact that it is in the leading position in developing a vaccine has its shares up almost 3 higher yeartodate. Announce 400 million 400 million and supply of several countries. At announced a phase three trial saying it is on track to complete enrollment in september. It is competing with pfizer which has a similar trial out there. Complete withto participants is likely to put it on the path to success perhaps. Any company that is out there in the front on the vaccine level is having its stock flight. Lets look at shares of novavax. Jumped to nearly eight fiveyear high. Saying the latest news they have on their vaccine efforts make them best in class. The stock was up recovering from a decline after hours yesterday was down as much is 21 on an erroneous report that some participants had been hospitalized. It was clarified that was not correct. Stock up close to 4000 year to date. These vaccine related companies are on a tear. Other health Care Companies also posting results. What are you watching . Atmetlife, lets take a look how they performed after hours. The Second Quarter profit declined 96 . That had a lot to do with their investment declines. Their profits declined 29 in both the u. S. And asia businesses. If you look at how the Health Care Related stocks performed in the regular session, you will see metlife was up ahead of its results. Cvs also in the spotlight. It is holding firm. Its midpoint beat estimates. Beat analyst expectations. That has a lot to do with a boost from emerging drugs. Lets look at a busy earnings day ahead in asia. See. A, nintendo, hmi they will be squarely and focus. We will be breaking down those numbers as soon as they get to us. Be speaking to an analyst about those results later on. In the meantime, lets get the business flash headlines. Instagram is launching a clone of tictoc just days after Mark Zuckerberg defended facebooks copycat strategy. Edit short video clips just like tiktok. Tencent is said to be in talks to merge chinas stop top streaming platform. We are told it is discussing our merger. It owns about 38 of each company. Create a streaming giant with 300 million users and a combined market value of 10 billion. Coming up, mike pompeo is pushing for American Companies to drop chinese apps, tech, and cloud services. We will have the latest. This is bloomberg. You are watching daybreak australia. Deaths have top 700,000. The u. S. Remains in focus. California had its second deadliest day. New york city is setting up checkpoints. Tensions continue between the white house and medical experts. Dr. Anthony fauci says u. S. Testing must improve. President trump insists our procedures are the best anywhere. Cases in australia are edging closer to 20,000 with 247 people having died. The state of victoria it reported a Record Number of infections this week. That number is expected to rise in the coming days. Daily cases are seen rising above a thousand later this month. Melbourne has been in lockdown for four weeks. Indonesia was spent heavily in the coming months to support a fragile recovery after their economies first contraction in more than two decades. Saysinance minister outlays will top 100 billion through december as the government seeks to support growth. The economy contracted more than 5 in the Second Quarter. Its worst performance since 1999. The two contenders for the u. S. Facetoface miss conventions. President trump is to give his nomination acceptance from the white house. Banningl violate laws political gatherings in public buildings. Global news 24 hours a day on air and on quicktake by bloomberg. Powered by more than 2700 journalists and analysts in more than 120 countries. Im karina mitchell. This is bloomberg. Mike pompeo is urging u. S. Companies to abandon chinese apps signaling that washingtons efforts to block mainland tech in the name of National Security will extend well beyond the campaign against tiktok. Chinese apps see removed from app stores. President trump has mentioned impending action on top for good reason. Companies in china, apps like tiktok are a threat to american citizens not to mention censor speech. Y are anxious to find out what those entrusted apps are. How will they be persuaded to drop the apps . I just put that question to the undersecretary of affairs moments ago. I said what is the review process . When it comes to trade issues, they utilize section 232 for tariffs and the like citing National Security. A behind the scene strategy of agencies looking behind these Companies Looking into these companies. He also pointed to india having to ban 70 plus apps as a result of indias National Security concerns. It was all a part of mike pompeos announcement earlier today of the Clean Initiative that extends beyond Apps Services and providers including itunes but also into Cloud Computing and 5g technology. We have talked a lot about the dynamic between the United States and europe and other western allies. Particularly moving away from the likes of huawei. Department,state are they confident that europe would follow suit in th