Down. 2 , nonfarm futures, claims better than expected. Next chart, dollar remains in story or theme around the dollar today, relative weakness against the g10 but not so much against emergingmarket currencies. That is what the dollar is doing right now. Weakness in offshore currency remains on the back of this broader news from the trump administration, down. 2 , that is your aussie dollar, risk off mood, down. 1 , and the boe is flat against the u. S. Dollar. Gold move to commodities, publicly above 2050 and out, further gains. Not as Much Movement in terms of stimulus conversations in washington. Barrel, up,42 a maybe on track for gains across the week. And that is your yield for the 1132 and 52. , tencents down on the back of this executive order. Just how much and how significant this move is by President Trump is of course the question, given wechat is largely used by the chineseamerican community. It is not clear how much revenue tencent derives from the u. S. Market, but this is unfolding. We get more from Jodi Schneider. President trump is now focusing, after tencent, on a bigger target. He signed an executive order prohibiting transactions related to wechat, owned by tencent, thank the u. S. Must take action against the Parent Company to protect national security. This came right after he signed an order restricting tictoc. Our Senior International editor Jodi Schneider has the story. Jodi, what are the significance and implication of this executive order targeting wecheck . coming right after the executive order prohibiting u. S. Businesses from doing business with tictoc or its chinese owner, it is fairly significant. Because it basically says that President Trumps declaring war on these Chinese Companies and does not want them to be in the u. S. , and prohibiting transactions relating to the u. S. It is a huge deal. It is very wide news in china. Muchhis move very restricts whatever commerce you can do in the u. S. , again coming right after that order prohibiting u. S. Businesses from doing businesses with tictoc. Both of these are to take effect in 45 days. That is interesting timing, because basically President Trump is seeking divestment of tictoc the Popular Video app, and taking it to that point, saying, if we can get this deal done, it wont be a problem, you can still go on your tictoc. But the question is, what about wechat . And in both of these cases, the white house deciding the need to take aggressive action to protect national security, that is the way he invoked these executive orders. David it does seem there is happens,il on what and steps for tictoc. It is still unclear though on the wechat story. Back to tictoc, the other part of this is the talks with microsoft. And with three other countries. Of the talks proceeding and does the executive order complicate or help those talks . Jodi it looks like President Trump is trying to put pressure on the sale of that app to get that deal done quicker i saying, after 45 days, if you dont do this, you people are not going to be able to use tictoc. Just a week ago, he announced he might go ahead and hand or was considering go ahead and ban , or was considering banning tictoc in the u. S. , which led to discussions over the weekend app. Microsoft to buy the they said theyre waiting to do it by september 15. A lot of hurdles to doing a deal like this, a complicated deal, because it is not only to buy the app in the u. S. , but also austria, canada and new zealand. A huge deal in that short timeframe is difficult in and of itself. The Chinese Government, we have heard they are not necessarily going to be particularly willing to see this happen, so there is that hurdle. Price might be a hurdle. We dont even know what the at this point. And on the u. S. Side, some china hops in the trump administration, including peter navarro, dont want soft necessarily to be the winner. They think microsoft has been too soft on china, and microsoft has sold a lot of software to chinese firms and the Chinese Government. They are all those issues that may take you think, well, President Trump is serious doing ban in 45 days, and has a before there is a sale. Stuff, Jodi Schneider, Senior International editor. Two executive orders in the last hour or so, and we havent even talked about chinese trade, which should be up anytime. We will get you that when it does break. Lets go to Karina Mitchell in new york with an update on your first word news. Karina david, good morning. New research from the university of washington sees u. S. Coronavirus deaths potentially doubling by the end of the year if the pace of the pandemic spread doesnt change. U. S. Infections rose slightly faster than the daily average thursday as global cases approached 19 million and worldwide deaths popped 707,000. The u. S. Is lifting its blanket foreign travel advisory. Airlines rose on the news. You cant defeat this dangerous enemy in a divided world. And ad a united world, united world needs operation and solidarity among its major powers. Karina People Living in tokyo are being asked refrain from traveling outside the city for the upcoming holiday, although authorities have yet to declare a new virus state of emergency. As the virus surges, Office Vacancies have jumped the most as the pandemic weakens the economy. Vacancies in the Business District have risen for the fifth consecutive month. Lockdowns,ict coronavirus cases in the philippines are now at 120 thousand, leading indonesia as the regions hardest hit country. Metro manila is back and locked out as the economy shrinks more than 16 in the Second Quarter from a earlier. The philippines has also been hit by Migrant Workers coming home after losing jobs overseas. The World Bank Says the coronavirus is likely to spark what it calls a pandemic recession in many countries. The chief economist warns we are following a similar path to the 2008 financial crisis, but even worse. In june the world bank said covid19 threatens to drag 100 Million People into extreme poverty, with emerging and developing economies shrinking the most ever. 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. Tom. Tom coming up, our exclusive interview with the head of Online Gaming company nexon. We speak to the president and mahoney later in this hour. David seems like this could become a thing of the past is the u. S. Moves to tighten regulations for chinese listings in new york. We look at yet another move that is sure to escalate tensions with beijing. This is bloomberg. Back to the show. It is august 7, and after eight months and a couple of days, we are back to square one when you look at where markets are, globally speaking. The Global Market pretty much flat for the year, a little lower. Futures have done a good job. The dollar is on the backfoot, but the real story for markets is not obvious, real yields of the u. S. Pushing more negative, driving everything, bonds, currencies and Precious Metals up. Is Raymond Cheng of jpmorgan private bank. Raymond, a pleasure to have you. I need to ask you about chinese tech, and the news flow. You had tictoc, tencent, how does that change directory . Because a lot of these are mega cap stocks and whatever happens to them happens likely to the index. How are you approaching this risk now . Raymond i think there is a Clear Network imposed by the u. S. To restrict participant tatian participation of Chinese Companies in the u. S. This was anticipated since we were hearing a lot of rhetorical games, listing of the aprs and all that. But lets put into perspective that the fundamentals of a lot of these Chinese Companies, especially the ones that are primarily inare the domestic chinese market. On average, we are talking about less than 5 of their revenues and or earnings coming from overseas, including the u. S. In other words, the impact fundamentally should be quite limited. Think this would pose a dampening of sentiment, offshore chinese equities that are currently listed in the u. S. And in particular, those that have yet to be in hong kong for dual listings. David lets turn to the hshare market, one of your top share market, one of your top markets. Whys that market going up . Ashare is cheap relative to other asset classes. Withtion, around 13 times, Earnings Growth staying positive even in this difficult year of 2020. That ao we like the fact lot of major indexes over the long haul are going to increase ashares as part of their emerging market chinese indexes. Fundamentally, 95 of these asia constituent earnings are related to domestic markets as well. Cushionede very much by what is happening in terms of the trade impact and also in terms of what we have been hearing of late. Also, from a daily turnover is largely it still dominated by retail investors, and only over the last two or three years we started to get more parts of more participation from global investors. So that is a good, early sign that the Chinese Government will be encouraging more of the Institutional Investors to participate in the equity market going forward. So that will help stabilize the foster a healthier, sustained asian equity world. And keeping in mind, facing all these attacks from the u. S. , china really needs a healthy asia market more than anyone else at this juncture. Tom raymond, that lays into your localization theme. You like domestic names, as you suggested, but one call that stood out from your know its from your notes was that you think there may be opportunities in the Banking Sector in china, and unloved sector. What are you seeing . Raymond on the financial sector, chinese banks have been areved forever, and they trading below half of their book value. But what is really standing out to me right now in terms of attractive Investment Opportunity lies in the Life Insurance sector, because it is very different than what is happening globally with interest thes plummeting because of unprecedented monetary loosening by global central banks. We are seeing the 10year china onshore bond yield moving higher, towards 3 . And that is actually very good for Life Insurance companies, because longterm investment yield is a function of that onshore bond yield. So the higher the yield, the better for Investment Income down the road. Part isink that underappreciated and some of the Life Insurance companies are trading at very low valuation relative to history. So that is what we are asking our clients to look into some of these specific Life Insurance names. Sachs saysn Something Else that might be underappreciated is early approval for a vaccine. Specifically talking about the s p 500 index and a rotation from tack to value from tech to value. If we get an early vaccine, do you change your portfolio and go heavy on cyclicals . Raymond well, we always recommend a diversified portfolio for our clients. We are mindful of the fact that the new economy names are not cheap in valuation, but the Health Care Sector and tech still see very strong tailwinds behind them. , the covid19 outbreak onspurring more r d spending innovative drugs. So all this bodes well for the earnings outlooks for the health care and Technology Sectors globally, and it is not just confined to the u. S. So that is why we are still very positive on these two sectors. Meanwhile, we are opportunistic, as i said, using the chinese insurance sector as an example, which has deep value cyclicals that are not appreciated by the benefiting they are from improving fundamentals and also very cheap valuation. I need to ask you about hong kong exposure. Is it time to look at potential gems . Cheap aserything is far as purely hong kong plays . Anything worth looking at . There is definitely a lot of value names out there in al hong kong stock market the local hong kong stock market. They are probably cheap for a economy is still in a bit of a week condition, given what is happening with the outbreak and social unrest. But what has been catching our eyes has been more of the index that was Just Launched last week. We feel that this index really helps broaden our clients existingbeyond the two internet giants come into some emerging names. In this index is composed of 30 of the largest chinese players in the world. So we think that this tech index will help drive better of these toward a lot Smaller Technology names that are listed in hong kong, with participating Industries Like semiconductors that would benefit from the localization trends we talked about. David always optimistic, Raymond Cheng, have a great weekend, out of jpmorgan private bank. Coming up, we speak with the philippines finance secretary, a massive contraction reported yesterday. We will see where they go, they are cutting their 20 for outlook. Carlos domingos joins us later, plenty more ahead. This is bloomberg. You are watching Bloomberg Markets asia. Here is the latest business flash. Profit at overseas Chinese Banking Corporation fell more than expected in the Second Quarter as lending shrank during the pandemic. Net income dropped 40 from a year earlier to 730 million 500pore, just over million u. S. Ob local rival ocbc joins local rivals. , ck hutch group yearthe second half next will be worse, the company hunkering down and putting controls on spending as geopolitics and the coronavirus batter earnings. The group cut its planned interim dividend. Uber generated more revenue from food deliveries over its transport business for the first failedst quarter, as it to offset steepen prolonged decline in ride hailing. Ding sales fell 29 to two point 5 billion, ending a decade of growth. User numbers slumped 44 through june, well below expectations of a fall of 70 . David lets give you a sense of what else we are tracking, a big macro day, jobs later out of the u. S. Any time now, there will be a view of chinese trade numbers. We are not getting a lot in terms of expectations for an increase, but it is a trend and you look at the last couple of months. Within that, you want to look at things like trading partners, incremental increases, leading indicators from other countries like singapore and korea as well. So we track that, once that brakes, we will get that to you. Here is a sense of markets, hsi one hour into the session, we talked about tencent on the drag that perhaps that is giving, pulling on the hang seng index, down 333. Singapore, the banking story there and some earnings coming through, the nikkei 225, the last couple of minutes before the lunch break, just under 22,000 300. Ocbc, we talked about that, korean air surging right now, you have news on opening of trade channels. Guidanceis down after is missed. And pigeon corporation, no pun intended, flying, up 11 . The ceo ofxt with Online Gaming giant nexon. This is bloomberg. You doing okay . Yeah. This moving thing never gets any easier. Well, xfinity makes moving super easy. I can transfer my internet and tv service in about a minute. Wow, that is easy. Almost as easy as having those guys help you move. We are those guys. Thats you . The truck adds 10 pounds. In the arms. Okay. Transfer your Service Online in a few easy steps. Now thats simple, easy, awesome. Transfer your service in minutes, making moving with xfinity a breeze. Visit xfinity. Com moving today. It is 10 29 in hong kong and beijing. This is Bloomberg Markets asia and here are your first word headlines. Former is to question a public works minister and general manager of the beirut port over this weeks catastrophic explosion. He led the ministry until 2013 when a shipment of Ammonium Nitrate was seized and put into storage. They ignored warnings about the highly explosive material for years. More than 130 people died in the blast and thousands more were wounded. Sri lankas powerful brothers are headed for a landslide election victory, giving the chance to change the constitution and cement their rule. Their peoples front has won a majority. His son and other Family Members are expected to be given key roles. Tosident trump is expected act alone later friday as a stimulus relief talk appear to be headed nowhere. Sign exhibit of orders boosting Unemployment Benefits that are due to expire. The white house and democrats wrangle over the extent of further aid. Democrats say progress is being made, about the sides have major differences as fridays deadline looms large. U. S. W