Colleges are told to offload holdings of mainland companies. Australia signs a deal to make any covid19 vaccine for all. The government will distribute should it prove successful. More vaccine optimism playing out in australia. Lets look at how we are shaping up in terms of the u. S. Future session. Another renewed push of momentum in u. S. Markets overnight, hitting the record, propelled again by the same names. Also betterthanexpected u. S. Housing data. 2016 helping out sentiment, as well. We have positivity when it comes to the active futures trading at the moment. The nikkei 225 trading in chicago, looking flat at the moment ahead of a trade balance numbers, as well as machinery orders. We do have the topix, best performer in terms of Global Markets so far in this month of august. We are looking at broad weakness when it comes to the u. S. Dollar. The dollar sinking to his lowest levels since may of 2018. Im worried about the u. S. Economy with yet no relief package, stimulus package in sight after the drag don negotiations. Gold seeing a pop up. On the side of training, we are looking at disruption when it comes to trading in hong kong. Canceled premarket trading session. We did get news over the last few minutes they will be lowering it to eight in the next couple of hours. Thats an indication of how we can see that day of dislocated trading take lace in hong kong. Shery disruption also in the chinau. S. Relationship. Trump saying he called off the trade review with china. The talks were to assess the phase one deal, although they have not made any public calendar in washington or beijing. Stephen engle has more on this. President trump saying he canceled the talks, and he doesnt want to talk to china. Why . There are a lot of issues other than trade that have crept up over the last six months or so. These virtual talks that were with thebe held chinese and u. S. Trade were likely to be held last saturday. They did not happen. Wast of the speculation other issues, not just trade, had crept up to the forefront. Taiwan,it is huawei, alex azar visiting the week prior, hong kong, or as donald trump is now saying, coronavirus. Im not sure this is the actual reasoning, or maybe a Campaign Platform donald trump is trying to leverage off his toughness on china. I cant interpret that. I can tell you in his words, i canceled talks with china, i dont want to talk with china right now. What china did to the world was unthinkable. And he is referring to the coronavirus outbreak. He is again saying chinas handling of the coronavirus outbreak was unthinkable. Those virtual talks due to be held on saturday, they were not necessarily supposed to be substantive, they were supposed to review the past six months of progress, which have not met expectations because of the coronavirus and chinas pledges for agricultural purchases. Haidi surprisingly, we will hear the response from china on huawei. Beijing came out yesterday at the afternoon briefing. Quite sharply was rebuking those claims that wilber ross of the Commerce Department said huawei was perhaps exploring loopholes to get around the early year restrictions on huawei securing chips made from foundries that use u. S. Equipment. Now those foundries, if they get contact orders from the designers, the subdivisions of huawei that designed the chips, they need to get licenses to make those chips for huawei from the u. S. , since those foundries use u. S. Equipment. This is what the spokesperson in beijing said, the u. S. Has been abusing their state power in the name of national security. It went on to call the u. S. An empire of hackers, and the latest moves on huawei would backfire. With thatphen engle reaction from the Chinese Foreign ministry. We will get more on these tensions between washington and beijing with the u. S. Chamber of joining us for asia later. Still ahead, the dollar raise trade war gains. Asset management providing a boost to assets in asia. With thesed prospects head of emerging markets debt, denise simon. And a covid19 vaccine candidate. How treatment can be free. Details next. This is bloomberg. Continue to watch the developments around the typhoon hitting hong kong. Right now we are hearing from the Hong Kong Exchange. They are delaying their securities in the market open due to the typhoon. Hkxhave already seen canceling. We will continue watching the developments as the typhoon goes over the city of hong kong. Lets turn to Karina Mitchell on the first word headlines. Global coronavirus cases nearing 22 million, with more than three quarters of a Million Deaths. The latest figures, amid signs of infection slow downs in florida and california, while the Prime Minister of finland is being tested. Germany says restrictions will remain in place. The u. K. Reported its lowest death toll in 20 weeks. Hong kong will roll out a third round of support measures. The democrats are willing to lower their stimulus demands to break the deadlock in washington. Nancy pelosi says she will cut calls for 3. 5 trillion of new programs to help the sides reach an agreement. We could indicate the democrats are ready to negotiate below the funding level. The white house wants a one trillion dollar package. Canadian Prime MinisterJustin Trudeau is turning towards his most trusted aide to guide the economic recovery. Financeneau as minister, having overseen canadas interests. She is seen as having enough authority to maintain fiscal discipline in a demonstration. Days. Has had a busy few almost 2 billion in new funding. It is valued at 46 billion. Spacex is one of the most valuable Venture Backed Companies in the u. S. Fundraising comes in a period for tech, tesla soaring along with elon musks personal fortune. Global news, 24 hours a day on air and at could take by bloomberg, powered by more than 2700 analysts. Im Karina Mitchell, this is bloomberg. Haidi with the dollar down to its lowest level since may 2018, erasing most of the gains built on the back of the u. S. China trade tensions. Lets see how the dollar weakness goes into the emergingmarket debt. It could benefit some countries to recover faster, according to our next guest, denise simon. Great to have you with us. Lets start with the dollar weakness. Given that you look at broader positioning across the market, it is not looking overly stressed. Is there more momentum to grow with the selloff . I think there is. So far, the euro has been the main beneficiary of the weaker dollar. I think asia has a lot more room to catch up. Isa is coming out it leading the recovery, they have positive external balances. To positiveve flat real rates in a world where most see inre negative, as we the u. S. , and also in europe. So i think there is more to come in dollar weakness. I think we will see asia and some currencies in Central Europe benefit from this dollar weakness. Fori what are you looking in terms of the credit space . You would still want to see a robust prospect for domestic recovery. This low yield world, where investors are looking at where they can pick in the zero yield environment, i think one market that has been very under looked is u. S. Dollar denominated emergingmarket corporate bonds. These are companies that have better Balance Sheets than in the rated peers u. S. Credit market. What is happening there is a lot of these companies, their rating is capped by the country. So the Balance Sheet might mean they should be Investment Grade issuer. But because they are based in a country that is Investment Grade, it is capped. You actually get better Balance Sheet and higher yields than you do in the developed market. I think there are also lower durations, so you dont have the same kind of u. S. Sensitivity in treasuries,e u. S. 20, 30 basis points, they might not go up a lot, but they are not going down. I think they offer a very attractive Balance Sheet. Fundamentals, less treasury sensitivities, and yields up anywhere between 4 and 7 for less than a five year duration. I think its a market that has been overlooked. It has really grown over the last 10 years. You dont have a dedicated investor base. I think it looks extremely attractive in this kind of environment. You dont need a tremendous amount of growth, you can focus on sectors like utilities, more defensive sectors, where you have stable cash flows. Shery which country are you specifically talking about . I think i would more look at sectors. As ink utilities, mentioned, that are more defensive, project bonds where you have higher barriers to entry, more visibility on tariffs and earnings. In this kind of environment, you want to be focusing on credits that arent overly dependent on a very robust rebound where the credit fundamentals are starting from a less leveraged place. I think you can find that diversified across regions, on latin america. Asia tends to be extended, given the domestic base. I think you want to diversify across countries, across sectors, and for a diverse portfolio, you are getting an accepted credit premium for the risk you are taking. We have obviously had the huge economic shock, and we havent seen a big uptick in defaults for highyield emergingmarket borrowers. Versus more than 1. 5 , the u. S. Highyield market, where the defaults are more like 4 , and the forecasts are that they will have twice the amounts in the u. S. Highyield market then you would have in the emergingmarket corporate highyield sector. Again, better Balance Sheets, highyield than the u. S. , less forecasted defaults. And the sectors are vulnerable. Marginalent had very energy producers, we dont have a lot of brick and Mortar Companies that are more exposed. Haidi great to have your thoughts, we will have to leave it there. Thank you so much. Plenty more to come. Coming up next, we preview day two of the Democratic National convention as President Trump pardons his assault on postal voting. This is bloomberg. Are gearing ups for night two of their national convention, with a starstudded lineup, including speeches from bill clinton and jill biden. Here with a preview, lets bring in rick davis. Before we get to a preview, i want to review what happened last night. Viewership dropped. We see that this Virtual Event can be a tough sell. Does this have implications for voting day in november if you dont get these voters excited . I do think the nature of the convention has changed. There is no question the excitement of a big hall filled with 50,000 people, and some controversy as to what the various speakers will say, tends to draw an audience. Its not surprising all virtual telethon type convention is not going to have that kind of feature to it. But it is disappointing to see voters arent checking in. I would say it is a highly watched election. When you ask voters on intensity scale, they are intent on this election. Certainly the early primary voter turnouts were extremely high. So i dont think this is a correlation. But it is disappointing to the planners around the virtual conventions. Haidi on the first night, we heard from the big guns, bernie sanders, we also heard from the former first lady, Michelle Obama. What lies in hold for the second evening on what is going to be the key what is going to be the key theme you are looking for . I think it will be interesting to see as bill clinton, as a former office holder, takes the same approach towards donald trump Michelle Obama made. She was tough on the president and went right after him. Is thattion i would say each night, that these various messages will be sent in . Clintond think bill will be the guy that goes after trump tonight. I think we have to wait and see how that turns out. Its highly and not likely to be dr. Jill biden, speaking from her old classroom she used to teach in. Shes more likely to attest to joe biden, the father, husband, and the man pretending to be the future president. My guess is we could see some parallels in that regard. Reallyrick davis, appreciate your time. We will get special coverage of the Democratic Convention at 10 00 a. M. Hong kong time, thats at noon if you are watching out of sydney. The pace of the economic reopening has been another major talking point in the lead up to the november election. Essential to helping the country return to normalcy. It captures anything from an n95 mask production, assisting airlines with their pandemic plans. The ceo of darius spoke to bloomberg about the changing response to covid19. Initially, when we first entered the pandemic, it was all about getting the n95 masks as quickly as we possibly could. We played a front and center role as early as march and into april. We expanded our capacity. Obviously that was priority one. That also quickly shifted, because some of the other things we do is we make some of the sensors for the ventilators. So we had a backlog in april. We actually made our own ventilator as well for emergency use. Respondfocus was how we to the crisis we are in very quickly. Moreow, our focus is much on how we get people back to the workplace, back to flying again, back to having fun again, back to going to stadiums again. Thats really a complete shift. So now we are working with a lot of airlines, a lot of the teams in the nfl, the ncaa to get there stadiums ready, a lot of building owners getting back their employees in a safe manner, a different User Experience for the occupants and the owners. We have really been all over the board, from Immediate Response to the crisis, to now preparing to return to a state of normal. You opened up factories in arizona and rhode island to make masks. President trump even visited one of the facilities. Though he wasnt seen wearing a mask at the time. How closely are you still working with the white house on ppe, in particular . Weve had a very Good Partnership with the white house to help them out anyway we can. We quickly opened up the facilities in rhode island and phoenix. We are helping them with some surgical masks. The latest discussions we had and opening up new crafts. We are continuing to have discussions. There is still a huge amount of nearterm uncertainty. Nobody knows exactly what the future looks like it particularly in longterm. What do you think of the evolution en masse, given the initial interaction youve had . I think the president is supportive on masks. Based on the data i have seen. They helped limit the spread. Certainly we practice that. Some of our staff working in offices. Most are not, particularly in north america. We certainly encourage you to require the use of masks. In trying your role to get passengers back on flights safely if they need to fly . This is all about passenger safety, and inger think the airlines have done a terrific job in that respect. We are helping them with sterilization. You may have seen some of that robotlike devices that really rome dials with ultraviolet light rome the idols. A couple of minutes between flights. We are also working on solutions to have cleaner air within the aircraft itself. Some of our technologies, which are longerterm in a nature. Also basic things, like kits for the passengers. So we have a full range of solutions from the very sophisticated and technical, to some basic things, like wearing masks. Adamcyck. Ius openingcing app zoom is a new data center in singapore, expanding into Southeast Asia amid claims it transmits user information to beijing. Zoom has seen demand surge, but the popularity has triggered questions about software encryption. Zoom now has 18 flights around the world, user signups jumped 65 fold in singapore from january to april amid the covid19 outbreak. Taiwan is banning ite and tencents streaming service next month, claiming both businesses are in violation of laws against mainland chinese investments in local media. The governments will issue a former order formal order soon and discussing penalties if the Companies Fail to comply. Taiwan follows pressure from both the Trump Administration and india over chinese apps. Iphone case maker catcher is to sell two businesses in china. Taiwanese Companies Move away from the mainland amid rising u. S. Pressure. Lens technology will buy the units in the eastern city of tie joe, with completion expected this year. It is valued at almost 1. 5 billion and involves a plan that accounted for 40 of their total sales last year. Haidi take a look at u. S. Futures shaping up after the resounding push into a record overnight. Again being propelled by tech. Better than expected u. S. Housing data driving the optimism there. The s pow over 50 for 500, rallying the march low. Nikkei two to five seeing weakness ahead of data on the trade balance, as well as machine orders. The bloomberg was another major market story, as they had that sinking to the lowest since may of 2018. Watching crude ahead of the opecplus meeting. We will be speaking with katie bays. 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. But what if you could stdo better than that . K. Like adapt. Discover. Deliver. In new ways. To new customers. What if you could come back stronger . Faster. Better. At comcast business, we want to help you not just bounce back. But bounce forward. Thats why were helping you stay ahead and adapt with a network you can count on, 24 7 support and Flexible Solutions that work wherever you are. Call or go online today. Kong has canceled premarket trading with its secondhighest storm warning, still in place after the 7 00 deadline. If typhoon made landfall and eight or above remains in fo