Boris johnson sparked outrage. News out ofing south korea. We are getting the jobless rate falling to 3. 2 percent. The expectation was that the jobless rate would come in at 4. 2 percent so this is much better than expected. We are also talking about the sixth straight month of decline in jobless rates. That 270 4000ring jobs were removed in august from a year earlier. We know that south korea has seen its government really boost those job creation efforts not to mention we could have seen domestic demand being held by the Summer Holiday season and more jobs being available. The government pushing for a fourth extra budget. This is of course helping workers and businesses who lost income due to the latest restrictions and jobless rates. 3. 2 . In for august at watch out for what happens later in the following months given we have seen this flare up in virus cases towards the end of august, haiti. Haidi. Haidi pretty dire numbers coming out and we continue to watch what happens when it comes to the u. S. Trading session. We were expecting after the long weekend to see a bit more of an optimistic view. No, the tech driven selloff is really looking like it is starting to show signs of infecting other assets as well. We are seeing futures not showing a very good picture,. 7 percent lower when it comes to trading. S p active futures. The nikkei 225 looking like it will get a downward start. Off by. 4 . Dollaryen pretty steady at this point, just shy of the 1060 race s the leadership handle at the leadership race. New york screwed continuing to lose ground. We are now really in danger of share. That 36 a barrel shery the Trump Administration xinjiangina after region of china. Tom mackenzie joins us from beijing. Why this action from the u. S. . Michael tom this is a region of china where for a number of years, theres been allegations of gross human rights abuses, that attention, according to those allegations of up to one million muslims in these detention camps. China says they are simply vocational schools. Clearly, this is part of the reason why you are now seeing you ramping up. We have seen sanctions put in place on chinese officials by the United States. It builds on that action. Three companies so far have been targeted by u. S. Customs and Border Protection with these actions. Six more by the end of the year. These are Companies Involved in the production of garments and textiles and cotton so it seems like we are just at the start of these new measures, targeting these companies that are based in changing xinjiang. This is a reason that region that produces 80 of chinas cotton. The United States buys 30 of its garments from china. A lot of that cotton is getting into the textile trade, those garments ending up in u. S. Shops. That is the concern from the Trump Administration. Its another reminder that the Trump Administration will use human rights as a Pressure Point on china as well as being concerned of course that there is forced labor and theres been reports of forced labor from these camps, that that is ending up in the supply chain filtering through to the United States, so broadly, there is a context around the industry, what this will mean for the textiles industry globally but its another reminder that human rights is a main Pressure Point for the United States over china. Haidi we are hearing more than 130 u. K. Lawmakers have written to the Chinese Ambassador to condemn chinas treatment of the Uyghur Muslim minority and saying the Chinese Governments actions must be stated for what they are, a systematic and calculated program of ethnic cleansing against the Uyghur Muslim people. Another story we have been following, have we gotten a bit more information about the circumstances of the detention of the australian journalist in china . Detailsicials given any as to why she has been detained . More than three weeks after she was detained, august 14 was when she was taken away by chinese law enforcement, we did get comments from officials yesterday here in beijing giving some form of explanation as to why shes being detained, although there is a significant lack of detail. What they said is that the australian anchor for the english language broadcaster said she was suspected of carrying out criminal activities, endangering chinas National Security. Again, she was detained on august 14. This is the first we have heard from chinese officials about why and the rationale for holding her. The allegations give authorities broad power to hold cheng lei for months and these are amongst the most serious allegations brought against a foreign journalist in china. Its a reminder of the pressure that is on the media community. The Journalist Community in china. Its also of great concern for cheng lei and her family and of course, those concerns are widespread in australia. Also a reminder of the rapid deterioration of relations between canberra and beijing. Mackenzie in beijing. This comes over the last couple days after we saw the last two remaining australian journalists working for Australian News outlets in china, being taken out of china under diplomatic assistance. Lets get you the first word news with Karina Mitchell in new york. Karina the bank of thailand governor says the government is the only sector that can help stimulate the economy right now. Speaking exclusively with bloombergs haslinda amin, the central bank chief said public that restrictions should be eased to allow the government to spend more. Thailands benchmark Interest Rate has been cut three times and is at a record low. The problem now is not so much of the liquidity. Illiquidity. We have to focus on insolvency problems that occur. Europe, a steady rise in new coronavirus cases as people return from holidays and the weather cools down. France reported 6000 new cases on tuesday with numbers steadily climbing for the past three weeks. Spain, germany, and the u. K. Are seeing a rise in u. S. Sanctions. England has banned social gatherings of more than six people. A new bill will be publishing the u. K. That essentially rewrites an earlier agreement already signed with the e. U. Critics have called the changes to the brexit Withdrawal Agreement unlawful and two of the most senior legal advisors have quit. It would allow a nodeal departure. Trade talks resume today. Up to half a Million People in california have been affected by power cuts as heat waves and wildfires continue to batter the state. Portland general election has electric has switched off some areas in oregon. Fires burning through more than 2 million acres. Global news, 24 hours a day, on air and on bloomberg quicktake, powered by more than 2700 journalists and analysts in more than 120 countries. I am Karina Mitchell. This is bloomberg. Shery. Shery still ahead, a setback for one of the leading candidates for a Coronavirus Vaccine. Astrazeneca shares fall after its phase three trial is put on hold. We will discuss the details. First, we take a step act from the market turmoil of today and look at investing in the future. Bob brown will tell us why it is wise to bet on junk bonds in a zero rate world. This is bloomberg. Shery Northern Trust released its annual report that futures return expectations and forecasts for a range of asset classes. It predicts the Global Economy will see 2. 6 average annualized growth over the next five years and the asset manager is betting on junk bonds to boost returns in a world of zero rates. Lets get insights from bob brown. Great to have you without spirit let me get started on this call you made. Us. Reat to have you with let me get started on this call you made. What opportunity are we talking about here . No one will get rich on yields, but its a good way to diversify away from equities and still build on impressive gains that have been over the past several years. You hit it on the head. Massive fiscal stimulus helps us get through covid19, continued by what we call the massive monetary toolkit. We will be in a zero rate policy environment for years in the u. S. , japan, and europe, and the monetary fiscal stimulus combined helps avoid a recession and is very supportive of credit spreads come in of credit. But spreads come in. We are predicting returns for years. Better than inflation, much better than cash. Shery if we are talking about hunting for yields, given we see perhaps an upswing in Consumer Prices and a push of a greater part of real yields and sovereign bonds below zero, what is the opportunity with emergingmarket debt . Bob well, our view is that it will also hold and generate positive real rates of return. We expect inflation to be tested. Testink it will fail that after the massive monetary stimulus, so bond markets around the world are well positioned to outperform cash in all their domestic markets. Theres certain markets which have truly inflationary risks. Argentina, the weak currency continues to be an issue for inflation, but in most major bond markets around the world, major emerging markets, we really do not see inflation as being a risk to start generating negative real returns over a fiveyear horizon. We just do not see it. The low inflationary themes that have dominated over the last five years we think will stay in place. However, if it is going to be tested, we think it will be tested over the next year as we see the confluence of fiscal and monetary stimulus really taking place over the next year and that in particular, if there is a democratic sweep in the u. S. , we might see even further increases in fiscal stimulus with a very accommodative set. If you do not see inflation then, i dont think well ever see it. Right to benvestors thinking its ok . The fed has got this Monetary Policy which will stay extraordinarily loose . If you listen to j. P. Morgan, these price only bets that are being made are essentially you are seeing investors sacrifice capital preservation as a cornerstone of debt investing in exchange for rich returns. Is that a dangerous place to be . Bob no, we still think that there is a 5040 portfolio. Yield curves are steep. Year trading of 55 basis points and then you roll down to basically a zero rate over a 10 year horizon. Highertal return will be than your starting yield point, in our mind, and you will generate a return. Investment grade bonds in particular continue to provide capital preservation and income generation. Is it as much income as you would have hoped for or wanted several years ago . Of course not. You have to take on more volatility than you would have for. Yes. Still, its a lot less volatility than an equity market lose 21 that you can of single stock or 4 of broadly diversified tech index. So what you get from fixed income assets has to be put in a broader context of your overall asset class choices. Let me get your views on equities. We have seen the resumption of trading from the long weekend. The tech rout continuing. Tesla having just a horrible time. Indication of, ok, you buy every dip at an opportunity . The market has thrown every type of investment value metric ratio out of the window. Are these dips more opportunities to get investors if you are not already . Significant,ip is there is a change. We went neutral on u. S. Equities back in june. That was a neutral position. We wanted to continue to participate in upside. We did not think it was appropriate to be bearish and underweight u. S. Equities. From a valuation perspective, it had been made. View, as a technical oneyear horizon. Equities will be close to flat before earnings catch up to valuations and you start earning returns over a fiveyear horizon. Between now and yearend, we can easily come up. Etf is 30 100 yeartodate. If i were to tell an investor on january 1, there would be a major pandemic, that the global autonomy would lose doubledigit growth on an annualized basis in the second quarter, that we still would not have a vaccine, clearly effective treatment in september. But your investments will be up over 30 . I think you say i will take that. I but you take 25 . If we see a bit more profittaking given the overall conditions, no one should be surprised at that. If you take a longer term view, the real take away from our fiveyear view is after five years of extraordinary returns in the u. S. , 10 plus returns, you get to keep them and build it on them at about 5 a year. We dont think that is too bad. Haidi really appreciate your time with us. Bob browne joining us from chicago. Just talking through some of the investments. We didnt have breaking news crossing the bloomberg. More on this astrazeneca covid19 trial pause we have seen. U. S. And european regulators are probing astrazeneca and the covid19 trial. Itselfd from the company that it had put a pause on research in its experimental vaccine after a person who was participating in the phase 3 conical trial became ill with what it says is an unexplained illness. We will get more on that story. All the details, up next. This is bloomberg. Haidi we are getting more details on astrazeneca pausing their vaccine trials with u. S. And european regulators having pause vaccine trials. They are probing the covid vaccine. We are hearing that the u. S. And european is actually standard. This of course after they had to pause that trial after a person who was participating in the Clinical Trials became ill. Lets get more from our health care reporter, Michelle Cortez. What do we know so far . Michelle we know that there was a Single Person who was involved in astrazenecas Clinical Trial that did receive the immunization and subsequently fell very sick. We dont know exactly what happened to that person although it has been reported that they are likely to recover and we do know from the way that it came out that it is likely that that person received the vaccine itself so the concern is that the vaccine made somebody who was otherwise healthy sick somehow but of course, it is possible that people get sick just in general anyway. May be its circumstantial and not directly because of the vaccine because it is such a huge issue. They are pausing the trial. They are going to analyze the data and let us know whether or not their work can continue. Astrazeneca was one of the many pharmaceutical companies that signed a joint letter pledging that they would not sacrifice safety at the expense of the vaccine race. Is that nonetheless a real concern that safety shortcuts, efficacy shortcuts, will be made in this race to become the first market . Michelle this actually shows that people are not going to be taking a shortcut. When it is a Single Person who has gotten six, when you could make excuses along the lines people get sick every day. They could have discontinued the trial while they were doing the analysis. The fact that they have temporarily halted the work and they are no longer immunizing anyone with this vaccine, it does indicate that they are taking it seriously and that they are not going to cut any corners. It also means that this incredibly tight timeline everyone is on will get pushed back at least a little bit at least when it comes to astrazeneca. We have heard this other vaccine they have been asked to look and see whether or not they also have had anything like this crop up in their trials. What isn the meantime, the latest on the coronavirus pandemic across the world . We continue to see the surge in france becoming what the Health Minister calls were some. We are seeing the u. S. Worrisome. We are seeing u. S. Cases topping 6 million. Michelle it is not going down. We are going into this indoor season. Things are rainy and cold in many parts of the country and we are seeing students go back to school, colleges, universities, people starting to congregate again, and everyone is tired of a lot of the Safety Measures like social distancing and wearing masks. As a result, we are seeing the rates start to creep back up again. Hospitalizations and deaths are going to follow so the concern is that it is going to be bad. The question is how bad is it going to get and at what point might we have a vaccine . Shery Michelle Cortez with the latest on the global pandemic. Lets get a quick check of the latest business flash headlines. Singapore state fund more in china than in its country following gains and Companies Including alibaba. The latest annual report shows exposure to china and 29 against 24 for singapore, which is the lowest since the fund was formed 45 years ago. The main Singapore Holdings fell because of the coronavirus. The chinese market. China is the largest part of our portfolio right now in the singles market. It is where we have our exposure. Shery apple is set to hold an online event next tuesday telling customers only that time flies. Some analysts think the new iphone could also be made public. The company has earlier said the new handset would not be released until october because of supply chain issues with pandemic. A company which makes the popular game has removed tencents rights to distribute the franchise in india. From now on, the south korean parent will take care of all publishing possibilities in india after new delhi band nned almost 200 chinese apps from operating in the country. It is unclear what kind of initial disruptions consumers will face. Tesla shares had their worst day since the company was listed more than 10 years ago. The plunge followed a decision by the s p 500 not to include tesla on the index and the completion of the companies 5 billion share sale. The stock is still up 300 this year, making its market cap or than toyota and volksw