, warning a significant backer for years to come. Secretaryse cabinet pledging to maintain policy if he wins, but says more can be done. Lets get a quick reminder how u. S. Stocks ended. The s p closing at a fresh record. This in the face of warnings of a k. G. Recovery and pessimism relief bill. Tesla dropped as much as 15 after Bailey Gifford cut its stake. We are seeing s p under pressure. Lets check in on oil. Below 42 after slipping to a three week low with upcoming refinery maintenance weighing along with a stronger dollar. The greenback rose the most as the euro slips positioning. Technicals are favoring abounds in the dollar, according to scotia bank. We are shaping up in asia, futures pointing higher, holding above 106. Yoshi keeping big stimulus going in japan. We will be watching chinese tech giants after india banned appser sets set of including baidu. Drivers fueling performance of chinas big tech stocks from march lows. The rally has been broader on the mainland than in the u. S. Could the rotation be gathering stateside . By anne, we are joined berry. Barry. Megacapsaps are compelling . Do remainnk they compelling. We have seen a switch around the last day or so. These slightly under loved sectors, whether utility or health care, coming back up. We are seeing a little profit in the tech sector. A luxury balance going into the last part of this year. We saw tesla moving lower on the back of Bailey Gifford cutting its stake. In the market we have seen momentum lets pull up this andt to demonstrate tesla apple have been moving in tandem. What does that tell you about diversification or lack thereof . Ann when you look at tesla specifically there was a catalyst today. They have both been riding the tech stock splits. The focus now observing Market Capital is saying, this is a business that sold under 400,000 autos. They have a market cap as big as the five next big auto producers combined. They are looking at some of these big highprofile Growth Stocks that have gotten so much attention as yields have been so low. I think we will try to go to basics as we continue to see inse surges and topping out the value of the markets right now. Haidi is it possible to see meaningful rotation and growth . In particular these return to reopening economy stocks, if we are seeing an absence of and agful Development Certain way out of the pandemic . Ann i think folks are really trying. If you see what is happening in retail, there was a spring of news coming out of retail today, whether that was macys or gas guess. It was not so much about the aura of a vaccine on the horizon. It seemed to be more about how performer performance was not as bad as expected. It feels as though there is a nuggets of not bad news. If we did see a vaccine come out, we would see more leisure stocks, experiential based business models. Until a vaccine becomes concrete, it is hard to see that crystallizing in the immediate term. Haidi you could see a little more rotation. In the meantime, we are looking at select markets in the u. S. There are uncertain and delayed results, the november election. That is according to j. P. Morgan chase. Interest rates looking high compared to the last election and two prior election cycles. Is there a sense equity markets are not pricing in certainty . Ann with respect to the election . Haidi that is right. They talked about the fact the market is expecting risk the Election Results are not pinned down. It feels it is priced in, the risk is there. In terms of where the impact could be maximally felt, it is unclear. We are waiting on the friday jobs report from the u. S. Just one more question i would like to squeeze in, given we are waiting on the jobs report. The beige report has positive print. Shapedre could be a k recovery. Is recovery in the u. S. Wobbling . Ann if you look at the beige book results that came out today, and anecdotal indication of sentiment,. It was not unexpected it was cautious. Growth was there, Consumer Spending was up a bit. Manufacturing has accelerated to nearly a twoyear high in august. You do not see the impact in the labor market. Seeinventory tightening, we demand for manufacturing activity. There have been indications of growth, but it seems to be at a decelerating pace. As ever but he waits to see what the vaccine outlook could be, it feels as though we continue to move on somewhat upwards. The question whether this plateau was unanswered until there is more clarity on the vaccine situation. Always appreciate your time with us. Lets get a check of the first word headlines. The Trump Administration debating the scope of the date of sanctions against chinese social media apps tiktok and wechat. We are told the Commerce Department is drafting clarifications on transactions banned between the two companies and u. S. Businesses. The decision may come september 20. Washington ramping up tensions with beijing further, hitting diplomats with new restrictions on travel to the u. S. Says it imposes costs for what the Administration Calls unfair treatment. Washington says chinese diplomats must request approval to visit universities or meet with local officials. China is blaming india for clashes over the disputed border in the himalayas. They called the provocative action on the weekends. They said Indian Forces were first to illegally cross the border, and that china has showed a great restraint so far. The two sides have been disputing the board for decades. Heading pastyphoon the west coast toward the korean peninsula. They have sustained winds of 160 Kilometers Per Hour with possible landslides. Cut power as it crossed okinawa. Flights have been cut as the north faces the second typhoon in as many weeks. Sophie staying with japan, a as hide suga tries to keep abenomics in place. We explore the rising tensions between australia and china. Of, grabbing the attention investors for a Digital Health initiative, a funding round led by soft game. We speak with their ceo, Kuldeep Singh rajput. This is bloomberg. Haidi japans next likely Prime Minister wants to continue shinzo abes policy, abenomics. Will it be the same . Can it kickstart the japanese economy . We are joined by avett angle in hong kong. Foregone conclusion that as righthand man will be Prime Minister . David yes, now the way the factional votes are shaping up, he is a virtual shooin to replace shinzo abe. He has racked up an insurmountable lead over his two declared rivals. He already had 10 more votes than are needed to assume leadership. With five of the seven biggest factors supporting them, he will be the next Prime Minister barring any unforeseen calamity. Sophie when it comes to china, how would suga approach relations with beijing . U. S. Japanays the relationship is the cornerstone unity. With china,ispute south korea, russia, on land disputes. He will have to walk that delicate tight rope. Also, not be as hawkish as some in the able administration have been. He is the backroom brawler and dealmaker. He is mr. Fixit, as he is called in japan. Lets see if he can fix the economy first. He is pledging to continue with abenomics. Coronaviruss number one priority of course, but he has to fix relationships as well in his neighborhood and possibly navigate a change in the white house. He has a lot on his plate. Sophie thanks, steve, stephen engel. Trump administration preparing for a distribution of Coronavirus Vaccine by november 1, just days before the election. This is bloomberg. Is is bloomberg. Forie the u. S. Center Disease Control is telling states to prepare for a covid19 vaccine to be ready by november 1. The Trump Administration is planning large spread distribution before the election. This as flareups emerge across the country. Lets speak to our reporter Michelle Cortez. A bullish date for the vaccine. How realistic is this . There was a shot the u. S. Might have a vaccine by november 1. It would require things to go unbelievably smoothly and require the food and Drug Administration to approve it before definitive trials have been completed. That said, the fda said if there is good preliminary evidence, he would consider making an emergency vaccine approval. They want to make sure americans have access. Asy have set november 1 their start date. Haidi you have been talking about an evening out, cases across the u. S. Previous hotspot cases have come down. But now we see cases emerging from near hotspots. Michelle there are new hotspots across the u. S. Early in the outbreak we saw a lot of infections in cities and areas where people were densely congregating. Now that has gotten, because people are Wearing Masks and socially distancing and taking precautions. We see increasing numbers in more rural areas. We are seeing a lot of cases attached to things like school openings. Even less significant things like carpooling to summer outings, gathering with people at picnics, boating. Reported from sturgis, the huge motorcycle rally. We have seen the virus penetrate other parts of the u. S. That to this point have not been hardhit. China is hinting it will take part in a Global Vaccine Program that President Trump has shunned. What do we know about that . Michelle the president has been very skeptical about the World Health Organization and china when it comes to the coronavirus. He has not wanted to work in collaboration with them in terms of getting the virus under control. That is a huge issue when it comes to Something Like vaccines, because we are only as safe as the entire world is. As long as the virus is circulating, anyone could get infected at any point. It is just a matter of someone getting on an airplane. China has said they would work or consider working with the World Health Organization, which has a Partnership Underway looking to work with lower Income Countries to make sure those most at risk would have access with vaccine, should it become available. China has not definitively said and the u. S. Says we will take our own unilateral approach. China is still debating having the conversation. It is absolutely undoubtable we need to make sure the virus is addressed globally, and if any vaccine comes along, it makes it to every corner of the world. Haidi Health Care Reporter Michelle Cortez in minneapolis. 47,000 new cases have push the total to one million. The biggest economic drop on record in the second quarter. President saidk the economy shrank 5 this year. He spoke exclusively to bloomberg about the pace of the economic recovery and the impact of stimulus measures. For next year, we think our growth is better than forecast. It depends on external factors. External factors related to the way the economic agency, the credibility we can generate, and the way we interact. Neto, what campos you can see now 2 3 of the way through the third quarter, and your expectation the Fourth Quarter would be slightly better than the market expects, what would you anticipated this moment the full year decline for 2020 will be for gdp . Minus five percent with growth around 4 . That is betters, as you pointed out, some private economists he gdp dropping by less than 5 . Economists see gdp dropping by less than 5 . Two groups of people. One group is revising better the growth this year, and shaving the growth of next year. They think stimulus is stronger this year, but there will be headwinds once this phases out. Another group says, no. Concerns ofons, economy stalling due to the pandemic, the reactions are better. Two groups of people today. The amount of public spending. Brazil hasountries, been handing out cash during the pandemic to support the economy and help families. Earlier this week that stipend, the monthly stipend, was cut in 600. O about 55 from what impact will that have on the pace of the recovery . I think it is important to quantify the Overall Group of measures we are taking further pandemic. When you look at what other countries are doing, you can divided into five parts. Aggressively. Ed measures,and capital which we also did aggressively. Liquidity measures amount to 16. 7 of gdp. Capital measures amount to 17. 5 of gdp. Ores are either delaying canceling. Then you have transfers and credit lines. Ofzil did a huge program fedex transfers, based on the lower part of the population, the poorer part. We have a bunch of credit programs in place. Some took longer than we expected, but all are in place right now. We had some that started this week. When i look at the amount of money transferred, plus all the credit programs, i see a boost that is Strong Enough to take us between january and february next year. Delay. Ere is a time it to phase out because it was impossible for brazil to keep paying everybody every month. Then it was getting to another which is lack of credibility in the fiscal front. Brazil did what it could. Haidi that was the Brazilian Central Bank resident Roberto Campos nato neto. Lets get a quick check of the business flash headlines. Oracle lost a challenge to a Cloud Computing contract at the pentagon. It tried to claim the pentagon violated its own rules when 10 billion was to be awarded to a single company. But oracle was not harmed by pentagon errors. Jedisoft won the socalled contract. Apple hit an alltime high 132 in the new york session. Its most recent record was on monday. The stock has risen more than s p 500 year, while the has only gained 8 . Gone toet valuation has 1. 3 trillion. That is more than all of the ftse companies combined. Check. Onaires blank to pervert or a traditional public offering. Confidentially, which could happen before the end of the year. Tesla shares have their worst oneday slump since march after shareholder reported declines. Below 400 billion on reports of Bailey Gifford. A significant tesla investor for many years. Beijing andween russia. Bestselling client bestselling author Clive Hamilton will be along with us to give his take. This is bloomberg. Is is bloomberg. Sophie you are watching daybreak australia. I am Sophie Kamaruddin. Here are your first word headlines. Cabinet hide suga says he will maintain Economic Policy if he succeeds shinzo abe as Prime Minister. They have all but guaranteed he will win the party election. He would like to keep the relationship a bad with the bank of japan, adding more could be done with monetary monetary policy. Global Coronavirus Infections reaching 26 million. Top disease experts warned the coming long weekend could lead to a surge of cases in the u. S. The cdc has told state officials to prepare for a vaccine to be ready by the start of november. This is the fastest pace yet. Infections and spain are at a fourmonth high. The Prime Minister says they cannot maintain virus support forever. Makeid singapore must now the best use of its Financial Resources in a targeted manner to stem economic fallout from the coronavirus pandemic. Spent 100sent billion popping up its economy. Italian Prime Minister Silvio Berlusconi has tested positive for the coronavirus and a selfisolating at his home in milan. He recently returned from holiday in sardinia. Local elections are later this month. The vote is seen as a test of stability of Giuseppe Contes government. Tests in a berlin hospital a russian Opposition Leader poisoned by a military nerve agent. Ild the victim of a crime intended to silence and. Many are demanding a response from the credible and. Lets look at how markets are shaping up early in the Asian Session. Happeningat what is in that space. We are seeing moves slightly lower. Tech lagged in reversal of trade. Asian futures pointing higher. Some strategist pointed to confidence in the economy. Jp morgan analysts increased outlook. By halfould be dropped a percent each year without proper policy. The yen holding above 106. 683hore you want in the zone. With anforecasting 670, intact u. S. Trade deal among the factors. Haidi we are getting reaction from the u. S. Embassy in the u. S. As we see the relationship between the u. S. And other trade markets. The Chinese Embassy reacting to moves from the Trump Administration to restrict movements from diplomatic members of the Chinese Community in the u. S. , needing to seek approval before meeting with officials and universities, the embassy urging the u. S. To correct its mistake, saying the new rules on diplomats are unjustified. This as australias relationship with its biggest trading partner is at a historical low point. It has origins in the coronavirus pandemic, antidumping investigations. Now serious concerns over the detention of an australian journalist. We have with us and author and professor, he joins us from canberra. Ofve, is he a hostage diplomacy here . Clive we do not know the reasons why she was arrested. Having interpreted her arrest in the context of the campaign of intimidation against australia. Her arrest [indiscernible] context, whatever the reason, it is interpreted as another form of pressure. Haidi it is harrowing when you read these facebook posts or diaries written earlier in the year. A result of the proverbial chicken being scared to kill the monkeys. Is this what is happening to her in the moment . Beijing wanting to make a point to other foreigners working and living in china . Clive i think that is a reasonable conclusion to draw. We do not know the reasons. It has main foreign journalists and australian journalists in particular, more nervous than they are. Well be the chicken that was killed as it were in order to scare the other journalists. As we know, foreign journalists have become under enormous pressure. If somebody like cheng lei can be arrested, working for state media, then of course anybody can be arrested. Sophie turning our focus to trade, the administration from australia, the Foreign Relations bill has come under some criticism, lauded by others. Could this be overkill given the potential oversight . There is the context of australias measures to resist the chinese economy and australia. It is a program that began three years ago. While the federal government can put in place measures to increase police and intelligence services, we have a big problem in the state and local government and institutions like universities. Accept beijing is interfering on campuses. The federal government says it is an issue of national sovereignty. China has a Strong Influence on victorias state government. We need to be able to intervene and make sure and the agreements we have with china are in the national interests. They dont want them to influence australian politics. Sophie what could be the next shoe to drop in this titfortat situation between china and australia . Clive titfortat, is that what it is . Injing has been interfering australian politics for quite a time. The Australian Government said, no, that is enough. Inquiryan a national into the origins, australia has made no measures against china. The Prime Minister mr. Morrison we are not going to be intimidated into changing our policy. He used an interesting phrase the other day. He talked about strategic patience. Recognizing we are in it for the long haul. We continue to take will they continue to bully australia or will they back off . Been a lack ofs consistent and coherent china policy from the government. Now that we see a lack of ministerial engagement from beijing, how can this be resolved . Part of chinas resistance to australian measures to protect sovereignty have put the australian. Overnment into the freezer [indiscernible] i think what we are seeing over the last three years, quite a firm and consistent policy by the government in canberra. Iss pushback against beijing being washed around the world by other nations and now britain. People like me who are talking about it are in demand to explain to explain australias vision. Position. They have made it clear they orl not back down or kowtow capitulate to beijings demands. I think the leadership in beijing needs to accept that and work out another strategy. What is happening wont work. Element ofhere an self sabotage when you see beijing doing things like this, arbitrary detainment of foreign journalists . It does not line up with its ambitions to be a global superpower, to fill the void from the u. S. Administration, which was, what were we thinking even four years ago . Does this feed into the narrative or is the domestic playbook much more important . Beijing has lost a lot of friends in the world. Opinion in most western places are lined sharply against china, which is contrary to what you would think xi jinping would want. China isg has decided big enough and tough enough to get its way by adopting these very aggressive tactics. I do think it is backfiring. It is too early to say if it failed. There are people within china, the Chinese Communist party, who if it is in the interest of china. They have provided a target for donald trump to push back in a way you would anticipate. Clive, thank you so much. Clive hamilton, professor of public ethics in canberra. Up next, we speak of the ceo of biofourmis, who closed a funding round led by softbank. This is bloomberg. Bank. This is bloomberg. Out a 100 closed million funding round with softbanks vision fund. They use Artificial Intelligence to provide Personalized Care and help health issues. Joining us is the ceo, Kuldeep Singh rajput. Thank you for joining us. Where are you going to put this cash to work . With this capital we will primarily invest in prekidder goal areas, expand into new markets as well as through our current markets, the u. S. , and potential markets including japan and china. The second would be to build up commercial infrastructure and scale. Finally, we would use the investment to advance our products pipeline to get into new areas. Haidi interestingly, you were not planning yet to do this, but softbank got in touch with you after the open of covid19. Outbreak of covid19. Has the trend to go digital been pushed by the pandemic . Kuldeep certainly we have made great progress in the past one year since we closed our series 2019, b in may 2019. Able toere quickly customize a platform to monitor patients with covid19, rolled it out in five Different Countries and monitoring noncovid patients. Were contacted by softbank. They have been following us for quite some time. Met upand june when we with them, it opened new markets where softbank has access to japan and china, but also accelerate our organic growth. That is when we decided to raise series c. Sophie lets get deeper into this potential expansion when it comes to markets. Your patient base is in the u. S. , china and japan. Where else do you see potential to grow, given your capabilities when it comes to digital and that ai focus . Kuldeep the u. S. And Southeast Asia have been our focus currently. But japan and china would be the key markets we would enter. I wantt important thing to highlight for at least the next 12 months, we would be super laser focused on growing the u. S. Market in Southeast Asia, where we already have a presence, gradually preparing for new markets, since new markets require regulatory clearances. We build digital therapies which have to go to through approvals before we can get into these markets. Been likeat has it engaging with traditional hospital operators, given the digitization and Online Health Care Solutions . Kuldeep that is a great question. Since the pandemic, especially in the u. S. , many hospitals have monitor the use of telehealth, monitoring patients with cardio conditions, cancer, etc. What we saw in the past few months, it was not enough for clinicians to make a clinical decision. Clinicians are used to providing care. That is where being able to use a platform we can capture paths of active data, use ari to and provide Actionable Insights to the clinicians. Aat has been combining digital platform. There has been a significant change in the hospital systems. We are starting to embrace the technology. There is change in the regulatory environment. Payers, are more active in embracing digital technologies. Tohie thank you so much biofourmis ceo Kuldeep Singh rajput. Tesla shares plunged after a key investor cut their stake, but there is one thing investors are anticipating. A possible addition to the s p 500 sooner than expected. If you are away from his screen, find indepth analysis on bloomberg radio, broadcasting live from our studio in hong kong. Listen via the apple or bloombergradio. Com. Sophie here is a wrap of your business flash airlines. Airbus shows of fragile recovery propped up by china and continued challenges for widebody aircraft as they adjust to collapsing demand. Of the 10,400 airbus planes and flown ineets, 2 3 have the past three days. Many have not flown at all. United airlines will cut more than 16,000 jobs next month as it shrinks operations amid the coronavirus pandemic. The furloughs announced wednesday will take effect at the start of october, when a six month restriction on job cuts imposed as part of the federal aid package expires. Staff have left united and 20,000 are on temporary leave. Virgin atlantics rescue deal is set for completion this week after a lending judge gave the goahead for their restructuring plan. The carrier said they would run out of cash by the end of september. Bygin atlantic is 51 owned Richard Branson and 49 owned by delta. Tesla stock went on another wild ride, plunging after a key Investor Trend of their stake. One analyst says the electric carmakers possible move to the s p 500 could happen this week. Never a dull moment when it comes to tesla. In terms of volatility, what did we see . Lower and the worst oneday loss since march. Shares dropped as much as 15 , under 6 by the close. The plunge came after regulatory filing by a major shareholder. The u. K. Fund manager Bailey Gifford and company showed its stake in tesla had been cut to 7. 67 , fromfrom february. The news caused a speed bump in the record rise in tesla share price. It was down the prior day when tesla announced it was going to have a major five dollar billion share addition. Thisding to dow jones, reduction in stake by the fund was technical in nature. The Investment Company had guidelines that restrict the weight of a single stock in client portfolios. A spokesman at Bailey Gifford said they remain significant shareholders for many years and may do more buying, if the stock dropped significantly in the months and years ahead. As for teslas possible inclusion in the s p 500, why does Credit Suisse think an announcement is imminent . Su i just got off the phone with dan leavy of Credit Suisse. He said while there is no guarantee a decision is imminent, the s p 500 is due to rebalance on september 18 and we typically put out an announcement of new inclusions two weeks earlier. Could mean we could hear in a couple of days on september 4. As you can see by the bloomberg, tesla exceeds the market cap of every automaker in the world. Investors have been on high alert to a move to the prestigious s p 500 ever since july. That is when tesla met the important inclusion on the index. They have to be profitable in the most recent quarter and the prior year. Inclusion in the s p 500 is a big event for index, mutual funds and etf funds. Tesla,tock the size of that can be a major endeavor. Note thatnoted in his perhaps one has to question whether some of these major investors have already started to do that in advance of an official announcement. It is quite clear many Retail Investors have been buying ahead of what many believed to be a done deal, to take advantage of the socalled s p bump. Haidi pretty well priced. Su keenan in new york. Lets get a check on markets and see how the Asian Session will react overnight. Another session for the u. S. It was tech falling. We see more rotation into value stocks for a change. The s p pretty flat. Qe stocks up 0. 8 . We are a dovish speech from adrian orr yesterday. Sidney futures with a gain of 0. 7 . New virus cases in victoria over the past 40 24 hours. The melbourne lockdown period will be extended another two weeks. Restrictions extended another two weeks. We will wait for clarification on that when it comes to trading in japan, when we get more certainty on the race. Weing up on daybreak asia, speak to the global head of macro. And how the virus is affecting businesses. Jeffrey perlman is with us. Plenty more ahead. This is bloomberg. This is bloomberg. Haidi very good morning. We are counting down to asias major market open. Daybreak asiae i am Sophie Kamaruddin in hong kong. Welcome to. Asia looks set to follow wall street after shares set . Despite fresh marks. Seems alln secretary but certain to succeed s