Added to studying the feasibility of a megamerger. Of helping understate a pay packet of carlos ghosn. We had a wave of dealmaking creating positive sentiment. We had a rebound from last week, one of the worst weeks for u. S. Stocks since march. Tech stocks taking a breather from the selloff. Asset futures trading modestly. Watchl continue to trading when it comes to japan. Potential takeover for Prime Minister the middle of next week, futures are looking flat after the yen starts to gain in the monday session. We will watch for details about the cabinet and what it means for policy continuity playing in two sentiment for the japanese markets. Dollaryen holding steady. Modest dollar weakness overnight. That is set to continue. At 37. 40. Trading opec joining a chorus of voices suggesting the era of oil demand is deteriorating. Demand forecast for each quarter as we continue to see shortselling in the oil market. To a series ofrn deals we have seen. Oracle is bidding for tiktok u. S. Operations undergoing a two track National Security review this week as the september 20 deadline looms according to steve mnuchin. Tom mackenzie joins us. What do we know now about the process . Quicklyngs are moving as we lead up to september 20 deadline. Of potentialmember pitfalls involved a number of potential pitfalls involved. Tiktok will go through a process. The committee for Foreign Investments in the United States will review the proposed deal and then make their own proposals and put that on trumps desk and it will be up to him whether to give his blessing to the deal. The other player is beijing. Allow biteave to darts to go ahead, that is the Parent Company of tiktok. We have more details of what this might look like if a deal is signed off. Talking about Tiktok Global being set up in the u. S. , that is how it is being described with the headquarters in the United States and it could lead to the creation of 20,000 jobs. Our own sources say this is less and moreright purchase of a restructuring of the business in the United States in which oracle would invest in bytedance to create more structure in the u. S. Tiktok put out a statement saying they think this will address the National Security concerns raised by the Trump Administration on oracle befirms and says they will the trusted technology partner. A cut of the wants deal and no one is sure how that will work and they are also concerned about who will ultimately own the algorithm because whoever controls that has the power to influence the type of content that is filters towards u. S. Consumers. So that remains a big question. Haidi have we had much response from beijing on the deal . Tom no official comment yet but we had an editorial in the daily newspaper describing this as extortion of National Politics and the white house was pursuing a national extortion. Coerceinistration to on the claim that poses a National Security threat only reveals the administration willingness to organize a systematic economic extortion targeting any company that has tech knowledgeable supremacy over its u. S. Peers. They are saying it is the abuse of state powers and reuters suggested china would prefer to see tiktok u. S. Close down completely rather than for sales so that remains a question as to whether or not beijing will give the proposal to green light. Haidi far from certain. Lets get to karina mitchell. Tensions, the u. S. Is recommending the u. S. Considers reconsiders travel to Hong Kong Based on the National Security law. U. S. Citizens in hong kong are told to avoid demonstrations. Ties are strained over typeavirus and beijings grip over hong kong. And the new Prime Minister elected japan began his first full day. The vote is the first change of the Prime Minister for almost eight years after shinzo abe stepped down. Tension now turns to the cabinet and policy. Passed 29s cases have million with 925 reported 925,000 reported deaths. The second most affected country. 90,000 cases reported each day for the past five days. They have more than 4. 8 one million infections and short of 80,000 deaths. One day after astrazeneca announced the vaccine trials have resumed in the u. K. , reuters reports they are still halted in the u. S. And side effects are being examined. Neither company nor fda will respond to requests for comments. Global news 24 hours a day, powered by more than 2700 journalists and analysts in more than 120 countries. This is bloomberg. Shery still ahead, the ball is in chinas court. The ease you the eu says beijing must prove an Investment Agreement would be worthwhile. A demand in bonds has pushed out yields to record lows. We will discuss that next. Bloomberg. This is bloomberg. Haidi forecast seemed to be turning around for emergingmarket. Emerging markets. Only one is expected to Lower Borrowing costs. Towardelds are rising the moving average after being pushed towards record lows because of the pandemic. , great to have you with us. Is there he said of inflation starting to pick up is there a sense of inflation starting to pick up . Increasingly there is a concern that debt is running on fumes. Think we opinion, we are not overly concerned at this point, especially because demand globally has not fully recovered and Central Banks have been accommodated but we think there is need to do more. In the emergingmarket. What opportunities do you see at the moment . We like hard currency. Debt,d currency particularly those issued by her highyield countries. [indiscernible] the liquidity relief provided to select Market Countries with good intentions created confusion because they were unclear about the roles of perspective creditors so we there is significant opportunities in em highyield. The high profile cases of theseina and ecuador, are risks or could there be something more systematic . Excellent question. You are right, they would have them regardless of what has happened this year with covid. They were specific to the credit i think most investors the fact of the matter is these defaults results in [indiscernible] and high recovery rates that is a testament to the fact aat these countries had willingness to negotiate with creditors and come to an agreement. Haidi what about countries like india where growth is distant mining and the Financial Systems aims to be under a lot of pressure . That has been a major concern of ours also before this year. They had been experiencing low growth over the last few years, high fiscal deficit, the Financial System has become more stressed this year, geopolitical risk has risen in india. So we think there is a high risk in the next 18 months. You are worried about sri , speaking of stability concerns. What is going on . We think the fall in we thinkmarket negotiations will be key going forward. Lanka needs to enact significant fiscal adjustment to stabilize debt. The government announced measures to reduce expenditures and increase hiring and they are not the type of measures we would like to see to see the sustainability in the future. We are also waiting for the imf. Shery thank you for your insight. Bill gross says investors should be playing defense as stimulus ends and it becomes harder. He told tom keene which trends he sees accelerating as the pandemic drags on. Influence demographic continues, liberalization is turning into d globalization is turning into deglobalization. Pandemic and the pandemic has not helped the globalization, it has accelerated deglobalization. So the virus is changing things. To your memogo today were you talk about a 6 trillion deficit. We have heard this from other sources, claudius dom has made clear we need much more deficit coverage. What does the bond the world do if we get up to 6 trillion deficit . Momentbond world at the is a melding of the fed and thinking,to my way of this sounds derogatory, but the dog and the treasury is wagging it. If they want money, the fed will repurchases, which they have done. Do i endorse that . No. Is it a constructive thing down the road . Probably not. Is it inflationary . Probably yes. But it has not been in japan peered we melded fiscal and monetary and deficits can increase but we are 100 of gdp already. At some point as others point it, if the fed stays out of inflation will come back and we have had inflation with Financial Assets and commodities and they come back in another form. You remember the day recommended the Procter Gamble dividend and the world fell off its chair. Do we have an asset bubble or bubbles because we have your financial repression . I think so. And we have an asset bubble because Interest Rates are near zero and negatives in many parts to my wayld and that of thinking has been slated anything that have profits far in the future that are growing fast. Repression ifial we want to speak to that has always been swept under the rug and it can be fixed at a later said said prior fed chairpersons have focused on reinvigorating the economy and given the extent of retirees and Pension Funds and savers are being hurt, that can wait. But at some point it cant and i think we are beginning to see that. We do not have to talk about prudential or Insurance Companies or bank, we can talk streetomandpop on main where they have no more savings and are not able to save money to earn money on what they have left. The problem year by getting becomes ultimately, it the chink in the armor of this financial complex. Gross speaking with tom keene. Breaking news. We are hearing that citigroup will resume job cuts this week after a pause because of the pandemic. Cuts will affect less than 1 of the banks global work force of 204,000 people and they say with the recent hiring come the overall headcount probably will not show a job. They say they hired more than 26,000 people this year, over one third of the jobs were in group and city a citigroup cfo says they hope to keep expenses flat to slightly up this quarter. Persistently low Interest Rate onconsumer spending weighing revenue. Citigroup just appointed a new female ceo. They are resuming job cuts this week after a pause because of the pandemic. This is bloomberg. Haidi a quick check of the headlines. That the electric truck maker deceived investors about the business prospect. Nicola was called an intricate force that overstated the capabilities of the trucks. Alibaba is set to be in talks with a Southeast Asia ridehailing app. They would be the only investor in the world and would get stock held by uber. Biggest be one of the bets in Southeast Asia since 2016. Tencent has picked singapore as they are asian hub. Tensionscal accelerated the plans to shift operations out of china. The eu has stepped up to demands on china to open its market further to Foreign Investors to keep the goal of ceiling the investment deal alive. Done in remains to be terms of the agreement, particularly in areas. Development. Nable we need china to move on these issues. China has to convince us it is worth having an Investment Agreement. Shery lets get more from that meeting between xi jinping and three leaders. Dan is in hong kong. We have seen the eu be divided when it comes to china. Have they spoken with one voice . As far as today, they have. The message to china is light unclear. The ball is in your court. Donald trump has used the term reciprocity. They are clearly trying to get china to act and pointing out all of the areas where European Companies have struggled to make inroads in the chinese economy. A pretty strong message from europe on trade and human rights. They are keen to talk about now, especially with Everything Else going on with china. [indiscernible] [indiscernible] of japan scholar lays out the challenge of economic reform. That is next. This is bloomberg. Look here, its your very own allinone Entertainment Experience xfinity x1. Its the easiest way to watch live tv and all your favorite streaming apps. Plus, x1 also includes peacock premium at no extra cost. This baby is the total package. It streams exclusive originals, the full peacock movie library, complete collections of iconic tv shows, and more. Yup, the best really did get better. Magnificent. Xfinity x1 just got even better, with peacock premium included at no additional cost. No strings attached. If i could, baby id how can i, when you wont take it from me you can go your own way go your own way your wireless. Your rules. Only with xfinity mobile. This is daybreak asia. Ak tock oracle deal faces National Security review that will need the blessing of trump. Tik tock has submitted the proposal to treasuries the deal requires a signoff from china. Investment make an instead of buying the business outright and at least two andeholders invite them would take stakes in the new business. Boris johnsons breakfast the lawl has would give johnsons government the power to override part of the brexit agreement. Argues the bill is essential for the integrity of the u. K. Thate eu has not taken revival off the table. Revolver off the table. It seems incredible that you could do this but we are not taking power in this bill to neutralize that threat, but obviously reserve the right to do so. The death toll in the u. S. Has hit 35 in the west coast wildfires from california to washington state. Thousands of homes and buildings have been destroyed. Tens of thousands of people have fled their homes. Firefighters could have another problem this week. The forecast is for low moisture and high wind. Global news 24 hours a day, powered by more than 2700 journalists and analysts in more than 120 countries. This is bloomberg. Shery an election by Parliament Wednesday is seen as a formality and the new Prime Minister of japan pledges to maintain shinzo abes policies but our next guest says he will be more aggressive. Joining us is one of the worlds top experts on jimmys just japanese politics. Professor, great to have you with us. That the foreign minister will retain the post in the cabinet. We are waiting to see who he appoints to lead japan. He says he wants to appoint reform minded people. When expected changes to use the what x what changes do you of reformsee in terms and reform oriented policies . He has said and he will have to say he continues the policy. But he is a different person than abe. Goalsminister abe, his were making japan a big player on the world stage. Not is the reverse, he has had much international experience. About raising living lessards, making japan regulated and more business friendly, one way to think about was the minister in charge of internal affairs and communications. He worked closely with the economic minister at the time. Is more inf thinking tune with the kind of government, small private sector led economy kind that was pushed. Underestimate how push,e is likely to especially on Structural Reforms but abe talked a lot about did not accomplish much. Yesterday he was elected and out the the ldp formality will take place tomorrow to make him Prime Minister but in the comments after he was elected to the members he said, these are some of the things i want to do and he listed them. Overcome the system of bureaucracy were each minister itsnt something does own thing and has politicians in charge. He would push it hard as Prime Minister. Regulations, change to encourage small and Medium Enterprises to become more. Nternational pandemic, ite became obvious that japans judo Digital Economy is well behind where it needs to be. He is calling he says he will establish a Digital Technology agency. Achieve. Has a lot to will he need to do it all in one year . For five yearsn and saw five different Prime Ministers. What is the risk of the revolving door . If he doesnt do two things in the next 12 months, you will have a repeat of what you experienced during those five years. He has to call an election and when it. When win it. And he has to pass legislation that will make the public believe that he knows how to get things done and will get things done. If they are consumer friendly policies, he has been a big advocate in his argument years about the need to reduce, the to lower the fees charged by companies, he has profit margin 20 are ripping off consumers. If he can do things like reduce mobile phone charges and make possible Online Medical consultations, another thing has somed for, if he can do major policies adopted that the public likes that abe talked about i did not do, he will stand a good chance of going on as Prime Minister for another three years. And failure is, an option because there will be pushed back and we do not know how capable he is of running the government, he has been a very effective number two, if he fails, you can expect revolving. Oor Prime Minister haidi we know political favor can turn on a dime. We have seen cabinet Approval Ratings high in the past couple weeks and given you have referred to the handling of coronavirus in japan as playing a game of relay. How much a game of russian roulette. I think the chances of there being an