We have seen strength. It has reached 690. That could mean a path to a level not seen since january. The hang seng up 1. 5 . Take a look at where we are in terms of emerging markets. They are trading higher. 1 shy of a recent losses. The kospi is up. The south korean assets will be watched today as it is expected to stoper restrictions a flareup. Gold down to 1943. Lets get to first word news with Karina Mitchell in new york. Karina President Trump is welcoming a coronavirus treatment that involves blood plasma from corrupt recovered patients, saying it will be expanded to more sufferers after the fda approved its use. This makes it easier to make it accessible. Even though its full effectiveness has not been proven. The fda has concluded the treatment is safe and works. Virushas marked a grim milestone topping 3 million infections as the outbreak accelerates. New cases rose by 59,000 sunday with 57,000 people having died in total. South korea is considering imposing tighter Health Restrictions at the highest level amid warnings the country is facing a massive nationwide resurgence. Australia warns post virus recovery is under threat from border closures. Said almostr 700,000 people are off work after being tiktok in a statement says it strongly disagreed with the concerns that were raised by the Trump Administration. The president ordered a ban on the up in the United States within 45 days. He issued another executive order giving it 90 days to divest its u. S. Business to an american buyer. We know microsoft has been the first publicly acknowledged interest in the purchase. Oracle and twitter are said to be interested as well. No duesays there was process before donald trump put out the executive order. On we chat, this group of users users the u. S. Wechat alliance, they have asked federal judge to block the ban on we chat on what they say users overbe all National Security concerns. The group saying that statement or executive order was vaguely written. There is no concrete evidence it poses a National Security threat. They say it is unconstitutional. I might add people familiar with the matter say the Trump Administration is readily seeking to reassure u. S. Companies including the likes of apple and others they can still do business with the we chat app in china. Companies and lobbyists have complained an allout ban could be devastating for firms that work in china. Beijing valley support to strengthen hong kongs role as a National Financial center. What is beijing pledging . Stephen it is no surprise they want to maintain hong kongs. Ule the biggest is assuaging the fears after implementation of the security law and also of global banks that do business here, that are really walking the tightrope to balance complying with National Security law and with sanctions that have been issued by both sides. The banking regulator in beijing says china will provide support for its Financial Institutions in hong kong, offer services to residents and companies. This statement says hong kongs status as a Financial Center will not be weakened and shaken but it will be more prosperous and stable in the future. They cited again the dollar peg, as ainked Exchange RateSolid Foundation which reflects the confidence in hong kong. We will have to see how this plays out. Stephen engle there. Still ahead, a group ceo joining us in the next hour to discuss earnings driven to a record despite the pandemic. With the Philippine Central Bank governor for his look on rates and the economy. Rishaad Ubs Investment BankPrecious Metals strategist joni on whether investors even could still go for gold. This is bloomberg. This is bloomberg. Haslinda Gold Investors have been tracking the feds jackson symposium,kson hole bullion has pulled back. Part of that has to do with complex messaging from the fed on the u. S. Recovering and guidance on its next moves. Our next guest said underlying views are intact for gold. Precious metals strategist joining us from singapore. Good to have you with us. Are we looking at a bull Market Correction underway for gold and what kind of correction are you anticipating . Sinkhole is in consolidation mode. I think this presents investors an opportunity to build medium and longterm positions. The underlying u. S. Is still intact and another test of the highs should occur as investors continue to build gold allegations as they seek to diversify their portfolios with the expectation real rates will remain negative and uncertainty will remain high. Haslinda how closely are you watching powells positioning and messaging from jackson hole . If he does imply greater above target, where to for gold from here . Originally upgraded our gold forecast. We now think the prices could have 2100 next year. Comments fromd here will be quite important. Our economists are expecting that we do get further guidance on the rates policy, keeping rates at zero for a while at the september meeting. They expect further guidance on qe as well. Any sort of non sort of nod towards those should be supportive for gold. Said, there would be Downside Risks as a function of market expectations, expecting dovish fed outcome especially at the september meeting. To the extent that rates could move higher as a reaction that could present Downside Risk to gold. I think any sort of setback from here does present an opportunity to get in better levels. Haslinda having said that, how much gold should you be accumulating . Gold is seen as an asset diversifier. If you see a selloff as an opportunity to buy, how much should you have in your portfolio . We have done analysis on golds contribution to a portfolio and we have found of allocations, it is around 5 . Obviously that is based on a simple stock bond, so much to depend on the actual investor portfolio. Different sort of economic backdrops also matter. We have found allocation to gold tends to help more during times of recession and the succeeding expansion. Rishaad if we looked at gold since the march lows, it is up. Bitcoin is up over 120 . Has been point taken the shine of gold in some parts . I think these Asset Classes are different. There are parallels in the rationale some investors are attracted to either asset class. As a whole, they tend to attract quite a different market. The advantage of gold is that it has a much longer track record compared to bitcoin and it appeals to investors who are against,or hard assets to protect against currency to basement and these uncertainties. Silver has been the real standout, hasnt it, in the Precious Metals space. What is the key driver of people rushing in when they should not, because gold, silver tends to be Something Like jim tomorrow, never gets there and delivers. Particularlylot of the attraction to silver recently has been on the back of strength in gold prices. The fundamentals dont stand out for silver in an economic backdrop. Has to perform well on the back of gold. Heldact that silver has relatively well even as gold is consolidating here, it does suggest the underlying convention is stronger, such that investors are getting comfortable expressing that beast that via silver as well. Rishaad what is the best way of approaching towards the physical stuff or etfs . That is a good question. Something that investors are asking themselves a lot more this year, trying to figure out what the best way to get that exposure to gold market is. I think it really depends on andstors Risk Appetite what their portfolio looks like and the main motivation for getting that exposure. Even within sort of thinking about getting that exposure by gold underlying, there are questions about what kind of exposure, whether it is in futures or etfs or derivatives. Another thing would be the different costs. Do you see gold and silver slumping once a vaccine is found . There is scope for a kneejerk reaction to the extent this could trigger sort of it much faster recovery in the Global Economy than what we are currently expecting. Ultimately what will matter is how Monetary Policy reacts on the back of that, that allows Monetary Policy to react and therefore what the journey for real rates is going to look like. Thank you so much for your insights today. Still to come on the show, as republicans prepare for the national convention, a new poll suggests supporters like the handling of the u. S. Rhinovirus outbreak. What investors should be watching for as the election nears. This is bloomberg. You are back with bloomberg markets. A new poll suggesting a majority of republican supporters approve of the state of the economy and the governments handling of the coronavirus. They say the u. S. Is in a better position than four years ago with a big proportion crediting President Trump. You can tune in for coverage on the convention tuesday 10 00 a. M. Hong kong time. Electionors focus on risks, they say wall street is more focused on longterm fundamentals been shortterm reaction to the vote. We ask the ceo how markets are viewing the prospects of a biden reticence presidency. There is a big difference between the shortterm reaction and the longterm fundamentals. It is why i think it is the longterm fundamentals that will win out. The markets do better under democratic administrations. That is a fact. I think it is a longterm structural issues despite a nearterm bid on the worries which is going to win out. Longterm we have to look at a bigger stimulus package, whether there is a republican or a democrat in the white house. How are investors dealing with the reality that america will be in so much debt . If you think back historically to the great depression, the percentage of stimulus as it relates to gdp, right now it is reasonable. We can handle it. We know we are on the right track. With stimulus, it needs to be monetary to support us, but ultimately fiscal. We need to have proper spending that will bring returns. Spending on infrastructure, education, correcting Racial Injustice and of course on technology. Spending on all of the trends that have been in place before covid, this kind of spending will drive the kind of growth that will allow us to deal with the death debt we have to accumulate now. Isthe question was how far biden prepared to go. There is lots of questions if he can stay in the center. What freaks you out. Everything and nothing. What freaks me out the most is if we faced Health Crisis, economic crisis, racial, climate, if we faced them with chaos. The reality is if we face with pragmatism, go through the economy and society, it will be resilient. We will get used to whatever the new normal is so that is why in the longterm we can be constructive and hopefully not freaked out. Speaking about making progress, you have seen when biden have brought on Kamala Harris to be the Vice President , a lot of white, wealthy donors had come to her support. I am wondering if a lot of this is symbolic or if we will see firms make real changes at their own ranks as we see the government change itself. I think we are. This is inevitable. The pool of talent that is out there, people of color, women engaged in what is going on, it is inevitable. It is not at all symbolic. You see j. P. Morgan, naming the new ceo a woman. She earned it. The idea of her not having access to information, data, capital, everything is about access. For those of us who see sustainable and impact investing, the idea of giving access to what is needed for progress, you cant beat that. You can feel it. I would love to get your market perspective. What are you doing in a portfolio sense into the election . We are positioned for the longterm. Proper Asset Allocation is the starting point. Understanding your investments objectives, your values, how consistent you want to be. That is the first thing. When we think about the equities , we are our clients, and they are positioned for innovation. You can do that with values stock or growth stock. Was the that Cornerstone Capital founder. Lets have a look at some of the latest business flash headlines. Fortescue metals with a record fouryear earnings, getting a boost from surging Iron Ore Prices. 49 . T up pretty much in line with expectations. Fortescue dividend of one dollars australian is 19 higher than a year ago. This reflects the company optimism. Hna said to be close to a deal to sell to a private equity firm. The deal would value them at 7 billion for talks are continuing and could yet and in failure end in failure. Them for 6 billion in 2016. Some investors have been converting billions of dollars in u. S. Shareholdings in favor of hong kong. This to avoid pressure from washington and delisting of companies. Investors taking advantage of new rules using the switch to hong kong. Breaking news. According to a news the in Syria News Agency in syria, there has been an explosion that has cut off power in south syrian areas. Take a look at where we are in terms of the markets, asian markets in the money extending the gains for today, investors waiting. The policy speech from fed chair powell in jackson hole later thursday. The msa emerging markets index also up. Losses towards erasing for the year. Plenty more to come. This is bloomberg. Businesses are starting to bounce back. But what if you could do better than that . 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. California reported its highest number of new infections in a week. Mexico report surging numbers. Goldman sachs says almost a quarter of furloughed workers will not return despite the gradual u. S. Recovery. In the early months of the pandemic, employers shed more than 22 million jobs. Most of those were billed as temporary. Reopening spring many of those back. Goldman sees the labor market deteriorating and says temporary layoffs will become permanent. Saudi aramco is shaking up senior management. It is creating a new position of portfolio optimization. Its up anding downstream operation. Among those having to live with was initially denied the right to travel for treatment. Some time before it is known exactly what happened. Kremlin critics have also fallen ill in recent months without explanation. Yearsonvicted of last mosque shooting in christchurch will be sentenced. The australian gunman changed his plea to guilty in march on 51 counts of murder, 40 attempted murder, and one count of terrorism. The first such conviction in new zealands history. He will represent himself at the hearing. Global news, 24 hours a day, on air and at quicktake by bloomberg, powered by more than 2700 journalists and analysts in more than 120 countries. Asia hanging through those gains. Atestors taking a look divergent virus trends in the world. To afutures pointing higher open up by 0. 3 . The s p posted new record highs on friday. Tech providing underlying support. Csi 300 index also expanding its gains for the day up 0. 9 . It is a big earnings week in china. Greater than average earnings. Life underpricing moves. Up ina up china to chinext up. Shares surging this morning. Breaking news at the moment. Kellyanne conway, one of President Trumps longestserving advisors and Campaign Manager immigrant the the lastanager in election is losing her job. That, at the moment, saying she is leaving gratefully. Leaving her post at the white house at the end of august. Lets get some analysis of what is going on. Thank you very much for joining us. We see stocks going up and up. The market seems to be very narrow. Me, what is the deal . Several days when we had record more sectorsek, were going down than up. What we need to remind ourselves is that the overall macroeconomic context remains. Avorable for the market whoever the winner is in the current market situation, the bottom line is rates are very low. Easing ongoing in the background. It is a good argument in favor recovery in the next 12 to 24 months. I think that is good enough for some wellknown tech stocks to continue to benefit from it. Point we are going to a firmerfirmation of scientific solution to this problem, vaccines and etc. In that case there may be opportunity for the market to start catching up. We are not there yet. What we are paying more attention to is the fact that the prospect of Stable Recovery is still there. The winners continue to benefit area for the time being, we think this narrowness of the market is something that is manageable for investors. News breaking on Kellyanne Conway leaving the white house at the end of august. It does begin to concentrate the mind on what happens november 3. Are you looking at the u. S. President ial election . We work with the assumption the democrats are wellpositioned to win the election. We would not rule out the possibility of a trifecta for the democrats. You know, democrats taking both white house and both chambers of congress. Really meaningful volatility trigger would be republicans to sweep democrats because it is so it is not expected by many investors at this moment. Trigger reflation trade. We saw that in 2015. We think the probability is low at this juncture given polling and overall fundamentals. Is theking case