Weeks kenosha shooter may have acted in selfdefense. He visits the city today. Jp morgan says investors should prepare for the possibility of a second term. The German Government is said to expect a smaller fallout from coronavirus than previously thought. Italy and spain also had the tape. Apple, ship. Up. M in, wire me up, bid it they are ordering 80 million new 5g phones. The world is safe. Annmarie is picking much roughly in line with what apple produced last year. This is something we will look at as we head into the european open and Bloomberg Intelligence note this morning said that augusts rally in tech shares is very different in the United States versus asia. While apple is doing well, huawei under immense pressure. It says to me that we are seeing that bifurcated tech market that many analysts have been worried about. Manus when you do a stock split, five to one on tesla. He is standing here, his pockets are heavy with tesla stocks. How are your stocks . Good morning. Lets look at the markets. Looking for direction over in asia across the major indices. The asiapacific is trading higher. The data really has just outperformed the s p 500 many futures are higher even though below. Ay, s and p closed it was the best august since 1986 for the nasdaq. A lot of dollar weakness, but yuan strength this morning. 6. 8213 on the yuan. The highest level in more than a year. David ingles says this is about dollar weakness, not yuan strength. It is a dollar having trouble finding a floor. We are moving out of that bermuda triangle. But how much can that strength last . Manus indeed. Just putting that equity market in context, stocks closed broadly lower. But it was the nasdaq, as you say. It was all about tech stocks. Benchmarkpushing the to another record. Apple leading the way after a 41 stock split. Valuable now more valuable than the entire european stock argot. Manus australia held their rates at a record low. The Central Bank Says it will maintain highly accommodative policies as long as necessary. Another backstop on the door of monetary policy. The end of investment for commercial bank of dubai. Forhe head of investment the commercial bank of dubai. The dollar cascading lower, or any of these trades or momentums showing any sign of fatigue for you . Good morning. Yes, i think it is indeed remarkable to see what is happening. If you look deeper, there is a reason behind it. Is pumpingd is doing a lot of stimulus. Revive thisg to economy much faster than any other economy in the world. That is going to attract more from overseas. Term, we in the short may see dollar weakness, this itself creates a stimulus and the asset prices. We are already seeing a broadbased economic recovery in the u. S. Things look ok. Annmarie certainly the one concern i have been reading a lot about. They report about these walking potentially zombie companies. Are you worried about bankruptcies rising over in the United States . Deepak yes, that is a global fear. Ficationt the zombi risk. When you keep so Many Companies afloat when they should not be in business given the new reality. This is not to do with covid. The world was changing in any case. Many of the companies were not prepared for the future. Now, suddenly, you find companies that cannot stand on their own feet. How long can they be kept alive . There is a real risk of this across the world and in the u. S. As well. That goes with the free market. Some losers and some winners. The Bigger Companies will grab more market share. The Smaller Companies will become stronger. The offline businesses will not be able to stand. The new economy businesses will do even better. Innk that is being reflected the pays stock market performance. Bifurcated stock market performance. Addingthe vice chair fresh narratives yesterday, i would say, where he decries nirp, negative rates, and bins of the pathway to ycc, yield curve control. What does that do in addition to ait . Yccirp is off the table but is part of it, what does it do to ait . Of alphabets floating around here. What the fed has done effectively last week in jackson hole is wave goodbye to something that has been our favorite all these years, the phillips curve. The relationship between unemployment and inflation. As unemployment falls, inflation will rise. Most recently, in 2016 to 2019. That inflation never happened but rates went down. That was bad for the economy. The fed has learned a lot of lessons and they are trying to rectify that. They dont do good to anyone. We haved curve control, no news about that unless we hear something on september 15 and 16th. I think right now, the key message is lower rates for a lifetime. Inflation if required. Inflation will be surprisingly good news if that happens for the economy. This is the new regime. Annmarie i think a lot people may agree with you that inflation would be welcomed potentially. But, how do they get there . They have been trying since 2012. Deepak youre right. And they got it wrong because of the phillips curve. All Central Banks of the world have been fascinated by william phillips. That has not worked, not only in the last eight years but also in the last 30 years. It is by and large flat. They will continue to stimulate the economy for as long as it takes. There is no getting back from that. Whether that will create bubbles , i think theors market can live with that. The fed also highlighted the employment for low income communities. Very new sort of a statement coming out where they are now concerned about employment, just not at an overall basis, but low and medium income communities. I think they are very conscious of the mistakes in the past and i think this is a on the regime and stimulus is the only way forward. Luckily, this time around, there is monetary and fiscal stimulus going handinhand. Annmarie stay with us. We are going to go to that election risk and possibly whether or not we will get more fiscal stimulus out of the United States. With more first word news, here is laura wright. Hit back atiden has President Donald Trump, denying claims that americans would be less safe under a democratic administration. Forriticized the president fomenting violence across the country. Germany does not expect the economic fallout of coronavirus to be as bad as expected. Sources told bloomberg of the updated forecast said to be released today. The economy has staged a rebound after collapsing in the second quarter. Global trade is on pace to recover more quickly than after 2008 financial crisis. Shipping volumes are already back at levels it took more than a year to reach following the collapse of lehman brothers. Global news 24 hours a day on air and on quicktake by bloomberg, powered by more than 2700 journalists and analysts in over 120 countries. This is bloomberg. Annmarie thank you so much. You are looking at life pictures , you will be in a moment, of portland, oregon. People have been demonstrating for weeks against the police and Police Brutality p they are marching to the mayors residence. Coming up, President Trump and the polls. A lot can happen in the next 63 days and jp morgan has a message. This is bloomberg. Is bloomberg daybreak europe. Suggestedtrump has that the man arrested for killing two people during a protest last week in wisconsin may have acted in selfdefense. He says the video of the incident shows that the alleged rittenhouse, was trying to get away from protesters but he fell and then they very violently attacked him quote. The incident is being investigated. Editor, in our senior derek wallbank. This is the latest response from the white house. How is that being interpreted . I think that one of the difficult things you will have here is trying to sort out the spin visavis these protests, was responsible for how violent they are, when it comes to the president ial campaign tactics. Because that is what we are in the middle of right now. Is video President Trump referring to, i have seen it. It is very graphic. It is actually the second incident involving this 17yearold young man. Had alreadyr he been involved in a shooting. But this guy was apparently a fan of somes and a of these groups saying they are going to defend property. This guy brought a gun from his home state of illinois and went across state lines into wisconsin. Was not asked, but went anyway. And you saw what happened. At the same time, one of Donald Trumps supporters was killed in portland, oregon. Lotas really deteriorated a in the last week and change. Later today, it is going to be a big deal when donald trump lands in kenosha, wisconsin, over the objections of the states democratic governor. Annmarie what can we expect from that visit . Derek when President Trump talks about this stuff, he is going as hard as possible on this law order message against and he views as thugs violence roaming the streets. Donald trump that is fanning the flames of this. Joe biden has come out repeatedly saying that what donald trump is really doing is rooting for unrest, hoping it his president ial aspirations. I would look for the same sort of rhetoric from the white house that you have seen for the last couple of days. I would be very surprised if donald trump moderates his tone even at all. And then looking at what happens tuesday night as a response. Manus jp morgan talking about the best University Professor and the demonstrations of 1972. Which we are about to discuss. Derek wallbank, bloomberg senior editor, thank you so much. Tesla climbpple and to record highs as stock splits take effect. Will the good times roll on . We will discuss. This is bloomberg. Europe. Is daybreak climb to newla record highs on wall street as their stock splits. Learned that apple has asked suppliers to build at funds75 million five g. I. 5ger this year 75 million iphones later this year. Split me up, bid me up. Good morning. Ride for apple and tesla. The news that bloomberg has broken on the fact that they are targeting 75 million 5g iphones by the end of the year. It shows you that in spite of or despite the pandemic, you are still seeing a lot of demand, and that is because we are all stuck at home and want to remain in touch. Air,atch models, the ipad and smallerome part. The supply chain held up pretty well during the pandemic. Some weakness in taipei today. Overall, strong moves coming through in the taiwanese session. Samsung also moving higher. Notices oververal the past month recruiting workers. They must have known that apple was looking to increase their supply. Stock splits, it really just shows you how this is so popular. We continue to see apple and tesla it does record highs. Cap 464 billion. Bigger than walmart. You can see significant pullbacks in both apple and tesla shocks after this initial euphoria. Annmarie elon musk has now surpassed zuckerberg when you look at the bridge go look at the rich go list on your terminal. Jp morgan says investors should position for the rising chance of President Trump reelection. Betting odds are now nearly even. To potentially due violence around protests and closing of polls. Deepak mehra from commercial bank of dubai still with us. Do you agree with jp morgan . Is it time to position for trump round to . Deepak it could be. We got it wrong last time around when no one thought he will get elected. Not only that, but thought if trump got elected, it would be very bad for the stock market. It is difficult to go by what the polls say. At the same time, lets not forget in the last 100 years, no president has won reelection when you have had a recession in the year of the election. , peoplehe same time nowadays like a strong leader, globally. Nationalism, strong leader. These are the things that people appreciate. Somebody like trump who came with a 600 per week stimulus income tod salaries, individuals, has been highly appreciated. Went on a recess without extending this package people appreciate what he has been doing. Their 401 k plans look very good, by the way. Manus we are where we are at the moment ostensibly because of the size of the balance sheet, zero rates for five years, and a fiscal program. Power forxceeding to a second term, where would that be most impactful . On thehat be again dollar lower and stock market higher . Deepak i think the biggest will be on the china trade tensions. That will have huge ramifications on supply chain. American companies that depend upon china for supplies. I think that is the area to watch. Many winners in the stock get that we have today. Annmarie this is what manus and i were talking about at the start of the show, this bifurcation of the tech world. You look at the likes of huawei. Do you think trump getting reelected will just increase and exacerbate that bifurcation of the Technology Space . It looks like because he will go harsh on china. He will have competition basically eradicated, so there will be more space for the American Companies to do better. They may have supply chain issues, but you can already see foxconn moving to other countries other test to other countries. In the short term, these are the things we have to watch out for. Definitely, American Companies will have more space and less competition if he goes hard on china. Well lets see how that election runs out. The polls are going to shift. We had the real clear politics polls, that shift. The rising odds of a trump victory. How much of that is in the market. Deepak mehra is head of investments at commercial bank of dubai. Coming up, it is a message from germany. The impact from the coronavirus on their economy. We are going to discuss that, whats that mean for the yield breaking the 200 a moving average. That is a much to homage to mark barton. Good morning from bloombergs European Headquarters in this the of london, i am Annmarie Hordern with manus cranny. Stocks start september mixed after tech pushes the nasdaq to another record. Yuan strengthens. The dollar extends losses. Donald trump suggests last weeks kenosha shooter may have acted in selfdefense. He visits the city today. Investors say to prepare for the possibility of four more years. Germany is said to expect a smaller fallout from coronavirus than previously thought. Pmis from italy and spain hit today. A lot to digest this morning. Obviously, the jp morgan one stands out for me, the possibility of four more years of donald trump. Admittedly, he says what matters is how the economy fares for september and october. Says another trump of four more years means a bifurcated tech space. Huawei,f you look at some of those players in asia. My favorite story is the apple story overnight. 500. Tock up by here in lies the point. Its about whether another four more years, as you say, of trump, would lead to an acceleration of these markets to the upside and further demolition of the dollar on the downside. Annmarie as you pointed out with our guest, the fed is a backstop. How are we treating this morning . The rba was in there as well. The backstops keep getting larger and larger. In 500, it is the best year 34 years. The weighting of tesla, of apple, will shift. Say, we need you to reconsider. Beste overall had the august since 2009. Roll, have a look at the yuan because you have had the data from china this morning. 15 month high on dollaryuan. Wills of pboc tolerate further yuan strength . The dollar is down. Are we getting tired, or getting fatigued . These are questions we have to ask ourselves. Gold, ubs,the they were basically saying the feds credibility is on the line. Gold up 1. 1 . Took germany. They expect the economic fallout from covid19 is going to be smaller than originally projected. Theyes told bloomberg updated their forecast. The economy minister is set to present the new outlook at 10 00 a. M. U. K. Time the economy in europes largest economy has had a rebound. Deepak mehras head of investments at commercial bank of dubai. This is a narrative which gathers strength in china, in the United States, looking at the dallas fed recovery numbers, and now in germany. How does that change your perception of european risk in currency or equity . We seem to have just a momentary lapse of communication. At that momentum and europe see what peter has to say this morning. The euro has been on a tear. This is all about dollar weakness, not necessarily euro strength. Is that the view that we walk into these numbers with . Annmarie i have been looking at this recent Bloomberg Survey that says, what pain level can markets withstand . They say the threshold is around 130. We are hovering around the 120 range. If you get closer, that starts to hurt european equities. You have to wonder at what point that starts to hurt european policymakers. Manus if you think the ecb are going to sit on the sidelines, if you really think Christine Lagarde is going to sit on the sidelines and let eurodollar go to 1. 30. Gotmberg. Com, when you have , european equities. Again, this will come back to just how strong germany is. They extend part of their furlough payments. The biggest gain since august 2009. That sets the tone in terms of bifurcation. There is a bifurcation between the u. S. And europe. Gap or doclose that you believe the u. S. Is alpha and europe still plays catchup . Annmarie sticking to the u. S. , i want to show you live pictures out of portland, oregon, that have been demonstrating for weeks against Police Brutality are marching to the mayors residence. We will have coverage of this throughout the morning and continue to bring these live scenes out of portland. Laura President Donald Trump is planning to visit kenosha, wisconsin, the city where two protesters were killed last week. Speaking yesterday, he suggested that the man arrested may have acted in selfdefense. Vice President Joe Biden slammer the president for not calling out the teenager charged with homicide. Jp morgan says betting markets for the november poll are now nearly even, largely due to the impact of recent violence on public opinion, and potentially also buy gas in the polls. Argentina has received widespread bondholder support to pave the way for the nation to emerge from the ninth default in its