Amazon billion offer to goes from rivals to partners as jeff bezos is willing to take a 40 stake in his indian retail revolution. At thelets take a look set up for the session of trading in asia. We saw that resumption of the loss in the u. S. How are we setting up in this part of the world . Sophie a pickup in volatility once again. In asia, futures are mixed, but we are seeing s p eminis. Chicago adding. 3 . The yen is stuck in the range with brexit risk also a consideration. We are watching tiktok reaction to trumps extension of that tiktok watching reaction to trumps extension of that tiktok sale. Jupiter Asset Management is cutting its exposure to debt of Chinese State linked borrowers so that is something to consider as well. Ahead of the u. S. Election, you are seeing one vol bets can yuan vol bets. Keeping an eye on korean bonds with potentially 6. 3 billion of supply coming through. The government may submit its proposal to parliament this friday. The global rush of Corporate Credit sales, that is not abating. Japanese deals are at a three year and nissan may issue an offering after its first dollar bond sale since 1999. Pulling up the chart on the terminal, even after the rally in credit in asia since march, you bp expecting spreads for asian dollar bonds still having room to tighten with the punch ball being filled up by a global Central Banks. Before the recent selloff, yield premiums on asian dollar bonds narrowed for five straight months through august, the longest streak in six years which had hsbc warning last month that asia credit is running a bit hot. Jerry. Shery. Shery emerging market stocks were on track for the first gain in over a week on thursday but dropped after u. S. Job claims came in higher than forecast. The msci emerging markets index facing its longest losing streak since february. Peter, securities head of macro strategy, joining us now. Great to have you with us. We continue to see weakening the momentum in the em sector. We are talking about them falling below their 50 Day Moving Average for the first time in our months. More stocks posting declines been gaining ground. How cautious should investors be . Peter i think ems will work out ok. Its seeing a pullback and breaking through the 50 Day Moving Average but i would expect money to look for em. As you see china and the u. S. Continue to battle, as you look at the u. S. , whether its republicans or democrats, both sides now seem intent on shifting production out of china so i think that could actually benefit the rest of em and i think dollar weakness will resume, which traditionally has been very positive for em. Haidi especially when it comes to em credit. If you have Consumer Prices rising and inflation undermining the sovereign bond yields into more negative territory, how beneficial will it be for those really out there thats a part of that shrinking pool of positive yielding debt . Peter i think it is attracting more and more attention, even the local currency data. Over the last two months, i think you are seeing people saying if the u. S. Dollar is going to continue to weaken, which is my base case, em looks interesting. You have the growth story. You have negative real yields in the u. S. , so i think that will be one of the surprises, where em attracts a lot of money because its one of the last games in town offering real positive yields. Seeing yield hungry investors increasingly piling into junk bonds. 300 billion worth. Looking at record sales when it comes to the u. S. And even more broadly of course, there is this general sentiment that the fed Central Banks have got your back. How much risk are we setting up for here if something goes wrong . Peter we have to be very careful. When i look at Investment Grade in the u. S. And globally, it has done very well. Some of the Higher Quality stuff did very well but you are starting to see signs of excess where you are getting private yields, done at terms that are as good or maybe even better than you would have seen in january, preferred market on fire, so people want to buy those preferred bonds again so you are seeing signs of excess. If you are an issuer, you are supposed to take advantage of that. If you are a buyer of these, you are supposed to take a little pause, say i want to see where this all plays out so you are supposed to be derisking at the weaker end of credit right now. Haidi talking about capital preservation, talking about keeping your powder dry potentially for some tougher times ahead, what composition do you see that as playing in a portfolio . Be a i think you want to conservative. To me, its a little bit more clear on the equity side where i think the high flyers have gotten ahead of themselves so one nice thing is i like financials across the board and financials, if they can do well, that tends to be good for credit. You want to keep your Investment Grade credit and scale back, take some profits and highyield and leverage loans. Some of the areas have done very well. Despite the fact that em bonds have done well, you want to keep owning that because that will be the next trend. Aarching for a value that is different proposition then maybe what you get just by going deeper and lower down the credit curve in the u. S. Shery we continue to see the pullback in chinese charts. Showing turnover has fallen to the lowest since july. It is really the daily average for september. 20 lower than it was two months ago. Is this also taking off a little bit of the excess we have seen in that rally or is this something more serious . Peter for now, is taking off a little bit of that excess from the rally. I think we have to be cautious. I work withew 14 retired generals and admirals who form a lot of our geopolitical view, and we see from all sides that theres going to be this increased friction with china as we come towards the election. Both the republicans and democrats seem to have chosen to pick fights with china that they want to talk about, repatriating supply chain, so i think that friction is going to be ongoing. We might get a wildcard where at some point, china wants a deal trump want to deal with china, but there will be more friction and rhetoric. China is kind of stepping up. They had planes fly by taiwan. I think you have got to be very cautious on the risk side, especially on chinese stocks, visavis whats going on with the u. S. Haidi really appreciate your , academyer tchir securities head of macro strategist. We will speaking with the prominent advocate for indigenous rights. Destruction of Aboriginal HeritagePresident Trump says tiktok will extension. T we will get the latest, next. This is bloomberg. Haidi taking a look out at sydney on this friday which is promising to be pretty loaded with volatility and downside risk. U. S. Stocks resuming that selloff, particularly when it comes to tech. Shares something for a fourth time in five sessions amid concerns that even after the recent froth that has been taken out, valuations are superhigh for a lot of these tech names. We are seeing the aussie dollar trading higher this morning after declining with the u. S. Dollar higher in that g10 basket overnight. We had victoria state reporting cases3 new covid19 overnight. That is continuing on the numbers coming a little bit lower. Nine more people died. Always to go yet before we get to the five infections per day. Over the rolling 14 day period. That is what the government wants to see before lifting the lockdown. First word headlines with Karina Mitchell in new york. Karina we start with more brexit drama. The u. K. And the e. U. Heading deeper into a split without any trade deal. Boris johnsons government refused to scrap plans to rewrite the accord. He signed with the block. The e. U. Is threatening legal action if the u. K. Does not drop the legislation within three weeks. Christine lagarde painted an optimistic picture of the euro economy, saying manufacturing continues to improve and Economic Data suggests a strong rebound. The ecb kept policy on hold and tempered its forecast for Economic Contraction to minus eight from a june forecast. It will be around 5 . Overall, the balance of risks to the euro area Growth Outlook does seem to remain on the downside. Reflectsssment largely the still uncertain it, and uncertain economic and financial applications of the pandemic. Karina citigroup named james fraser as its next ceo, making her the first woman to head up a wall street bank. She is a 53yearold and has been with the bank since 2004 after a decade with mckinsey. She will replace mike corbat, who is retiring after more than eight years in the top job. She will join the board effective immediately. Hong kong police have arrested 15 people in connection to a surge in digital sales. By Media Company is owned jimmy lai. August, police said the arrests were made on suspicion of illegal funds were used in a conspiracy to defraud. 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 turning to the latest on u. S. China tensions, President Trump says he will not extend the deadline for bytedance to sell tiktoks u. S. Assets. Pres. Trump i am not extending deadlines, no. September 15. There will be no extension of the tiktok deadline. Shery with any deal requiring beijings approval first, tiktok is likely to miss the deadline. Lets get more from stephen engle. What next . Stephen this is a clouded timeline, really, because he has said, donald trump has said that the deadline is september 15, which of course is next week. Onever, he signed the ban august 6. Its a 45 day period. 45 days from august 6 is september 20. Five more days then what he has stated. Subsequently, donald trump also signed another executive order, ordering the sale of tiktok within 90 days from august 14. Im doing the math. Thats around november 12, which is of course after the u. S. President ial election, which also clouds the whole timeline even further, and leading up to todays impromptu comments, you just saw and heard from donald trump. We were hearing from Bloomberg News exclusive reports that white house officials were working feverishly behind the scenes to possibly extend the deadline because they were hearing that tiktok was not going to be able to meet the deadline because of the strict requirement that came down the pike a couple of weeks ago from the Chinese Government requiring have Chinese Government perusal of any deal, the financials and the technicals, and that is said to quiteengthy process and substantial process that will take some time. Apparent they, the white house was working behind the scenes, but they had not taken this proposal to delay the deadline to donald trump just yet, because he had other priorities, obviously, right now. It looks as though im just reading the scenes from abroad here. It looks as though donald trump was not briefed on whether there was going to be a delay and he was asked kind of impromptu by reporters there, and then that is what he said. No extension of the deadline. Lets see how this plays out. Haidi what are the implications for pricing . Stephen does it drive up or drive down the price . The price is all over the place. Bytedance says it wants 30 billion for the u. S. Portion of the business of tiktok, however, the range from analysts has been all over the place. As low as 10 billion, probably somewhere between 20 billion to 50 billion. We simply dont know. 30 billion might be a little bit too rich, even for the bidders at play right now. ,icrosoft leads the Coalition Said to be leading bid, along with walmart. There is oracle as well. It leaves a lot of uncertainty, and whether there is this impetus right now for these companies to submit, at least submit their proposals to the te house by september 15 september 20 is it november 12 . We will see. Drama continues. Steve engle. Coming up next, Silicon Valley is ramping up measures to quell the spread of misinformation going into that november election in the u. S. Microsoft says hackers have stepped up their efforts, too. We will get more details, next. This is bloomberg. Haidi a microsoft investigation has found hackers from russia, china, and iran have stepped up their efforts. This comes as Silicon Valley is stepping up their efforts to curve information on voting ahead of the november 11 polls. Omberg Technology Editor joins us for more. What does the microsoft report telus as to who is being targeted and by what means . This is a pretty interesting report and it mainly focuses on aggressive russian actors. It is a Hacking Group known as handsy bear. Was active for years ago. Attemptshe hacking that microsoft uncovered were not successful but some of them were. Idea is thatal this group has been targeting both political both political parties, like democrats and republicans, but also consultants who work with the candidates as well, so the idea might be that they hack into Sensitive Information about one of the candidates, and later on, they would leak that information right before the president ial election before the candidate can do anything. Given this current environment, we are seeing giants like twitter and google upping their defenses against misinformation. The last time out for years ago, i think we were all prepared. The Tech Companies were unprepared very much so. This time, they are trying a lot harder. Google today is a great example. They changed their technology around. The auto complete feature. I think most people know when you type in a phrase, google will suggest the whole phrase you might want to be searching for. Sometimes, things can be manipulated. For instance, if you type in i thevote or you can vote, system suggest Something Like you can vote twice, or you cant vote by mail. They will get rid of those types of auto complete features during the u. S. Election, particularly ones that favor one candidate over the other. Shery alistair barr. Turning to another key issue that ties into the november elections, a race for coronavirus treatment is facing Greater Public safety concerns after astrazeneca halted its phase three trial. The drugmakers has a vaccine is still possible by the end of the year. Our guest told Francine Lacqua that its important for scientists to speak directly to the public. I think its really important for the scientists who work at these important Public Health regulatory agencies to be talking to the public now to improve confidence. I think what we are seeing in the last couple days with the suspension of the astrazeneca trial is that people are hearing about what happened through secondhand reports of investor phone calls from the company. They are not hearing from the scientists who are responsible for making sure the vaccine is safe and i think that is a really big missed opportunity because its important. Normal safety precaution thats put into place. This could be more significant. It could be less significant. We should not have to filter through clues to figure that out. We should really be hearing about what the plan is to evaluate a problem like this so that people can have confidence that it is being done right. Francine the astrazeneca chief executive said, first, they are continuing to develop this vaccine, and that it could be ready by the end of the year. Is that too fast or do we just not have the facts right now . Joshua there are some very Interesting Research that the fda has done over the years showing that one companies talk about the fdas actions, its not always accurate. I just do not know what to believe and i think it is a missed opportunity for fda and the u. K. Regulatory agencies to be just talking about, you know, what the facts are. People need to hear from them. Its just a terrible that the news is coming out. Somebody heard on an investor call that this is a vaccine the coronavirus pandemic. Talk to us about it. Francine why do you think they are not talking to us, because they are not used to it or because they dont want to influence the trials . Joshua its not the latter because if it were the latter, the companies would not talk about it. You know, its a lot of history and tradition. Agencies generally want to be very quiet, and they think of to be just working behind the scenes, but i mean, in recent years, theres been much more of a push for transparency, and even the fda staff believe there should be more transparency. With a little bit of Political Leadership here, i think it would be possible for regulatory agencies to step forward. There is nothing in the law that stops them from doing that, and in this kind of emergency, i think its just really important for people to hear from them. Francine some kids are back at school, back at college. Some are not. What do you know about breakouts and colleges . Joshua we are seeing huge numbers of cases in college towns, being driven by College Students themselves who have not been taking precautions so seriously. I find it pretty interesting that there are some campuses where they have been very sternly focused on keeping students focused on the danger, and those campuses maybe are having a little bit less of a problem. Howilt University Much is at stake for students if they decided to have a big bety, and campus seems to doing ok. It reflects a little bit what we know about drinking on college campuses, which is a strong policies and enforcement and education of students about the risk can actually substantially curb drinking on campus. And i am hopeful that, you know, universities wil