To be in talks with the u. S. Government to avoid a sale. Lets get started with the quick check of the markets. U. S. Futures coming offline. Down given the rally we saw in the regular session. There was really solid buying throughout the session. A big reversal from the selloff we saw yesterday. The s p 500 saw the best day since june. 500 sectors11 s p up led by tech. Higher. T was also the nasdaq gained. And headingalling toward the 37 per barrel level. This is after it saw the biggest jump since june. There has also been expectation that u. S. Crude stockpiles would extend their streak of declines. We are waiting for the brent open but we have seen it back above 40 per barrel. Of the oil ande gas names here in asia. Lets look at how asian markets are setting up for the day given that we had a rebound we saw in the u. S. Most stocks ending off the session highs. Just half ais percent higher. Sidney futures looking much more positive. We are also getting increasing nervousness when it comes to jobs. Household data showing that households are sitting on cash and that could slow the consumer driven economy. 72. 82. Sie dollar at lets get a check on first word headlines. The eu is considering legal action against the u. K. Over new plans to reach the agreement governing britains withdrawal from the eu. According to a document, eu judges believe they might have a case to seek remedies. It is passed by parliament and after it. Boris johnson defended the move. Nobody wants to see a barrier on the irish sea. I think what will what we would be doing is putting a to net beneath which go wrong and protect peace and our united kingdom. Bank isuropean central taking a brighter picture for the nations economic recovery with a report showing policymakers sticking to the june outlook. The ecb is expected to hold steady when it meets thursday. But it did indicate that further easing is possible by the end of the year. For u. S. Deal yet german partners. Astrazeneca may resume trials of its vaccine as early as next week. They were halted after one participant experienced neurological symptoms consistent with spinal disorder. Jakarta is bringing back restrictions on restaurants after a search in coronavirus cases. They will limit public transport and order all nonessential workers to stay home. Global deaths are now approaching 900,000. Over 1000 people have died each day in india for the past several days. Global news 24 hours a day on air and on quicktake by bloomberg. Powered by more than 2700 journalists and analysts in more than 120 countries. Im karina mitchell. This is bloomberg. Lets get to our top story. Five days atop of President Trumps deadline, the chinese tech giant is said to be in discussions with the u. S. To avoid an outright sale. Lets get the whole story and the details. We are seeing these reports there is a chance it may not have to sell completely. We are looking at potentially a range of options on the table. What do we know . This is what i am hearing as well. Sale aressions about a twofold. Of selling the idea off the business is still on the table. There is also discussion that they may maintain a small noncontrolling ownership stake in the country. So it would not really be able to make decisions on behalf of tiktok u. S. But would still have ownership now. Obviously, the president has said he does not want any ownership from a Chinese Company in the u. S. Version of tiktok. This does not align with what we have heard him say publicly. Supposedly, what we are hearing is that this is being discussed as at least a possibility. This coming after china made a sale more difficult. What is the central issue at stake . The main issue for President Trump and for those in the white storage andund data data collection. Their biggest concern is that any Data Collected from u. S. Tiktok users might be shared or used in some way the chinese government. Sources are telling me that they are trying to come up with ways to solve that first and foremost. How can they ensure that data does not leave the country and it stays with microsoft or oracle or someone else. They believe that if they can solve that issue without facilitating a full sale of tiktok, that that might be where the new scenario comes into play. That was our bloomberg tech reporter with the latest on tiktok. Still ahead, an Australian InvestmentGroup Continues to push into the Wealth Management space as the biggest banks exit. We are joined exclusively after a billiondollar by up of an Asset Management unit. Up next, markets rebound from a threeday route with tech having its best day since april. This is bloomberg. One investor has a new term to describe the market. Raging mania. He also says deflation is a risk. He might identify with that. Partner and a member of the High Net Worth investment network. Give us your reaction to the comments on this mania that we are seeing in the markets. Why are you shifting so heavily to cash . It is nice to be with you again. Thatss my reaction is these are incredibly uncertain times. Those of us who are managing folios for clients are thinking a lot about how we navigate uncertainty in the economy. Also, the fact that safety assets like cash and treasuries have values close to zero. Working, living, educating our children in different ways. The environment we are working and living in is so different. We have to be thoughtful about the way we manage portfolios. This is a time that we believe the planning is so important. We say plan conservatively so you can invest confidence. That means thinking about the liquidity you need. The quiddity being cash or fixed income will have limited volatility. If you think about what your liquidity needs will be over the short term, i dont mean a week or a month but rather 13 years, it enables you to invest strategically and to find the opportunistic investments you can lean into. When we say moving to cash, that is coming from the investment think tank tiger 21 that i am involved with. We did a survey of our members who are all sophisticated investors. It shows that are typical investor has moved from 12 to 19 in cash. That is all around the conservative planning for liquidity and also having dry powder so they can invest strategically and be more nimble when opportunities arise given the volatility in the market. We have seen some of those giants that we thought were really strong take a hit. I know that you like nike. This chart is showing how given the pandemic in the last quarter, 38 . Is there still opportunity in these kind of stocks, what are your pix . Nike is a good example. The company is in a consumer space and consumers have been challenging given the environment of the last six months. We think that nike is wellpositioned. They have focused on their direct to consumer sales model which enables them to increase their margins by going directly to customers. Also to use less working capital. Advancee done a lot to their supply chain processes. They are lowering their cost of doing business and increasing the bottom line. We think the benefit of these multiyear investments are going to dramatically improve their Customer Experience and position them well for market strength and growth. We think nike is a great example of a company that is continuing to innovate and drive growth. Those are the types of companies that we think you want to be invested in. Companies that we think will protect a more volatile environment but also have Growth Opportunity over the longterm. You talk about the meaningful dispersion of finding the volatility. In terms of the beatendown pandemic affected stocks, which ones would you be looking at given that we have some concern or realization upon the markets that getting to a vaccine will or straightick given astrazenecas issues. We are talking a lot about the bifurcation within our tiger 21 group. Across the board, there is awareness that there has been such a bifurcation between growth and value. That is something we need to Pay Attention to as investors. We see it as an opportunity for active amateurs. We have talked a lot recently about how this is a moment to shift away from passive management into active stock ticking to find the companies that we think could whether the more volatile times when there is high uncertainty but also opportunities for growth. You look at one company in the health care space, this is a leader in [indiscernible] of dna largest maker sequencers. They are so interested in covid19 because there are technologies that enable us to better understand covid19. They are such a dominant player with 70 of the next generation dna sequencing instruments and 90 of sequencing done has been done on their technology. This is an example of a company that has played a Critical Role in innovation but is also leaning into innovation in the challenging time that will continue after the pandemic. We think looking at Companies Like that and actively investing in companies that are high quality is so important right now versus owning the Broader Market overall or taking a position more passively. Are markets still underpricing the volatility that might come in in november around the election . The election is clearly something on everybodys mind right now. Where we are having the most conversations with our clients and in tiger 21 is thinking about the tax impact of the elections. Lead us to make some shifts in portfolios to harvest losses sooner or increasing tax environment. ,hen we think about net returns we want to be smart and thoughtful about the way we are managing taxes and portfolios. There are some really important conversations to think about for investing for families given the election coming up. We always appreciate your time and your views. Up. Ave a big guest coming a ceo. Dont miss that exclusive interview on Bloomberg Television and radio. That is at 11 40 this morning sydney time. Coming up, President Trump defends downplaying the virus threat. This is bloomberg. President trump says he was right to downplay the coronavirus threat to avoid causing panic. His comments came after audio recordings were published from interviews he gave back in march. In the interviews, he also acknowledged the dangers of the virus contrast with his public statements. Shows he says it failed to do his job on purpose. I wanted to always play it down. I dont want to create a panic. It was much more deadly than the flu. He knew it and he purposefully played it down. Worst, he lied to the american people. He knowingly and willingly lied about the threat opposed to the country for months. Lets get more detail from our reporter in washington. This recording in an interview with bob woodward. What do we know about this even that President Trump has so many times said that this was nothing more than the flu . It really contrasts what he has been saying in public. There does seem to be a direct contrast. One of the expert excerpts we have gotten from the book is that this is more deadly than the most strenuous flu. There is a contrast in what he said to bob woodward versus the public. He wasnt trying to create panic, he didnt want things to go into a frenzy and thats why he continually played it down. What else have we been hearing from joe biden in response to mark . Keep in mind, one of the things that americans have been pulled on is how they feel that trump has responded to the coronavirus. Prickly, and the last several months, they dont feel that he has done a good job. Most people feel that he has not handled the coronavirus the way he should. His Administrative Administration has bungled and botched response. This is what we have seen from the party in that trump has put a lot of lives at risk. This plays into that narrative that trump knew and didnt speak out. I would expect to continue to hear things like this throughout the rest of the election cycle. Reminding americans that trump knew and he was not forthright about what he knew. Are washington reporter there with the latest. For astrazenecas vaccine could resume as early as next week. Our next guest talks about why caution is a good thing. A i think we are going to see successful vaccine sometime next year. Some other people who are talking about a vaccine by the election or next year, i think we are seeing some good data out of these candidates. There are nine in phase three right now. I think we have some time where we will have to wait through some of the data and better understand how the vaccines are working and what the priority is for manufacturing. Fast and going to trying to find the vaccine . Elementsk there are that are moving a little fast for my liking. The news over the weekend of the vaccine makers led by pfizer, madonna, and astrazeneca to pledge safety overspeed wasnt important step. It is worrying because they felt we areeded to say that prioritizing safety. Perhaps that means they were being pushed to speed up the timeline. Everybody wants vaccine. We need to prioritize safety. I think seeing that step by the vaccine makers is really important. What does it mean in terms of what they are right about . Are they worried that we have a vaccine that is not safe or that it is safe that nobody wants to be injected with it . I think its a combination of the two. These phase i trials start with safety. Profilestand the safety before we understand the efficacy of the vaccine. Here in the u. S. , we have a Vaccine Hesitancy problem. Its not just rolling out a vaccine that is safe they stung clinical data. What will stop people from taking it . Efficacythe safety and data that the public wants to see in order to ensure that they will go and get the vaccine . If we create a perfect vaccine but no one wants to take it, it doesnt matter. Because of this unexplained caused astrazeneca to suspend the trial, will that make it more difficult for healthy individuals to try out teacher vaccines for covid19 . I think that people should be happy to see that this is happening. Normally, this would not make national news. But because this is such a national and international priority, this is a standard process in vaccine and therapeutic creation and production. We stopped trials when we see something concerning or unexplainable. Something that doesnt align with the data. This is astrazeneca doing their due diligence. Looking at the adverse event, looking to what happened the person with the unexplained illness. Going back through their data to see if perhaps they sought elsewhere. Was an assistant professor at johns hopkins. School isinder, that supported by michael bloomberg. Reporting 17e is covid19 deaths over the past 24 hours. Again, trending in the right direction as the state remains under a strict lockdown. Moment. Ing news at the we are now hearing that brookfield and simon have agreed fory j. C. Penney assets 1. 75 billion. 118yearoldthe j. C. Penney retailer had plunged into bankruptcy proceedings after the pandemic forced it to close more than 800 stores. J. C. Penney is saying that this that it will also include cash and new debt. A duo of mall owners are now carrying on with buying j. C. Penney assets for 1. 75 billion. Lets get a quick check of the markets. We are seeing u. S. Futures reversing earlier losses. 500 as we have the s p seeing its best day since june. Kiwi stocks gaining. In new zealand, we are watching the bond yields. Higher as well as nikkei futures higher. Plenty more to come. This is bloomberg. You are watching daybreak australia. Is said Parent Company to be in discussions with the u. S. Government to avoid a full sale of its operations. New urgencyathered as the deadline approaches. By President Trump for an agreement is september 15. The eu is considering legal action against the u. K. Over plans to breach the agreement governing britains withdrawal from the eu. According to a document, eu judges believe they may have a case to seek remedies before the bill is passed by parliament. The u. K. Prime minister defended the move. Large parts of california are being covered by an orange glow as fires continue to spread dense smoke. Power is slowly being restored after being switched off to avoid more fires through a windstorm. The fires to burn through more than 2. 5 million acres this year which is the most on record. President trump has been nominated for the Nobel Peace Prize by norwegian mp for between israelrk and the uae. Himpolitician who nominated is the same one who put his name forward in 2018 for the trump summit in singapore. Global news 24 hours a day on air and on quicktake by bloomberg. Powered by more than 2700 journalists and analysts in more than 120 countries. This is bloomberg. Its 16has called off billion purchase of tiffany. Tiffany has filed a lawsuit. We are tracking all of the action. Bloomberg is now learning that asked for help from the french government and pulling out of the deal. Yes. Board has stated it has no choice but to pull out of the deal because the french government had ordered a delay in the transaction. Bloomberg is now reporting lvmh is chairman initiated the pullout and had asked the government work leaned on frances government to help it with an exit strategy. Both companies are hurt by the pullout. Tiffany swiftly filed a lawsuit in delaware to try to keep the 16 billion deal on track. Between covid19 and the related shutdown as well as the u. S. France trade dispute, the deal had been showing signs of trouble just last month, tiffany extended the deal deadline by three months to the end of november. Reservempted lvmh to the right to challenge the date. That they wereed asked to delay the deal until early 2021 citing the u. S. Move to impose tariffs on goods from france. I suppose the question is what happens now . Are there other interested parties . Is takingn move now center stage in delaware the lawsuit. What is the story behind the breakoff . Saying theret is was a delay that needed to take place but that has no basis in law. They also say in the lawsuit that lvmh has made clear its real goal is to attempt to renegotiate the merger price and barring renegotiation, to run out the clock. They were saying they would stick to the november closing deadline. Could fall 27 below its closing price. Noh says there is termination fee so it would not have to pay to walk away saypting one analyst to its a great way to get out. Prepandemic, the asian stores had a huge rise in sales. There is a bit of a loss here, and a lawsuitions about to take center stage. That