Point 46 overnight. Political posturing is taking place with taking place between london and brussels. Checking in with some of the other little asset of the other asset classes. Gold pulling back in tandem with ,. 10 lower. Tom lets get you the first word news and an update on the continued spread of covid19. Have surged past 40 million and show no signs of slowing. U. S. Infection rates rising in 48 states while europe is inosing tighter restrictions london, paris, and other cities under strict curves with ireland enacting some of the toughest restrictions yet seen. The World Health Organization says failure to control quarantine rules has led to the resurgence. I stocks hit a six month low amid fears continuing street protests will drive investors away and further hurt the weakening economy. The benchmark index closed at its lowest level since april 16 as demonstrators bow to keep up pressure for constitutional reform and curbs on the monarchy. The index has lost more than 5 of its value since protesters took to the streets of bangkok. U. K. Rejected a move by the European Union to revise stalled brexit talks, saying there is no basis for resumption without compromise. Brussels said it is prepared to intensify work on the final agreement. Demanded a more fundamental change of approach from the e. U. Boris johnson has warned an accord is unlikely and says the u. K. Should prepare for no deal split. President trumps Reelection Campaign is taking on the Debate Commission ahead of its faceoff with joe later this week. Ruleenging the essential changes, among which is the muting of microphones to prevent interruption. The President Campaign manager says the commissions pro biden antics have turned debate season into a fiasco. Those were the first word headlines. Talk Top Democrats walking a tight rope. Kathleen hays is here with the latest. Nancy pelosis deadline for later tuesday. Is it a case of the talks being the darkest before the dawn . Kathleen its definitely bleak. Many saying theres no way to get a deal passed before the election if a deal is passed at all. Treasury secretary mnuchin and how Speaker Pelosi did talk on the phone, they cant get past some key sticking points, and lets put that right upfront payment lets remind everybody, what is the big deal . Beside the fact that the democrats packages 2. 2 trillion dollars and the republicans broadly dont want anything above 1 trillion, if that. A two state and local governments, thats about a half billion dollars. Republican saying you have to backup the municipalities, though states and governors offices so they dont have to lay people off. Republican say theres already enough there. They want to bailout Pension Plans in some states, so that the big deal. Tax credits for lower income families, democrats think they need more and republican sink there is already enough there. Liability protection for businesses is something republicans have been pushing for hard since the whole thing started. They want protection for companies to not be sued because workers were in the office flipping hamburgers, whatever they were doing, because to ise its going democrat satan makes it too hard for any worker to prove negligence and pushback against these thoughtless employers. Beyond that, the repeal of the tax credit for business losses, this is a little more complicated. It has to do with changing the law that is in place in 2017, the democrats want to get rid of this, that allows the companies or any individual to take the tax losses in one year and use them to offset taxes in another year. Republican say we just cant do that, in many accounts agree it would give wealthy people a break. On the other hand, a lot of wealthy people lost money in the pandemic, too. Pelosi says they continue to narrow their differences. Mark meadows, white house chief of staff said again, nancy pelosi must be reasonable so President Trump can be reasonable and then they can agree to the finish line. Tom you talked about the fact sparse. Chances look what can we expect in terms of what happens twostate u. S. Time . Are they able to lay a foundation for future potential deal . In two weeks come the political winds may change so greatly that if you dont get something done now, who knows whats going to happen . For sure people so it may be february or march if joe biden becomes president and President Trump is not reelected. A lot of people say people cant wait that long. Saying President Trump the politics are important here, particularly for nancy pelosi. He said nancy pelosi at this moment does not want to do anything to affect the election, meaning getting joe biden to the white house, and i think it will affect the election negatively for her. A lot of people are saying pass that bill in the house, move it onto the senate and put the ball in Mitch Mcconnells court. Let the republicans voted down and see what their political fallout is. Meanwhile, Mitch Mcconnell and most republicans are backing only a limited spending, they have a more positive view of the economy. Oconnell has said most republicans will oppose any virus relief package that is too big. Meanwhile, republicans are trying to pass to smaller bills in the next couple of days. One would use leftover money from the Paycheck Protection Program to send out more stimulus checks, and also their own stimulus bill which is much smaller, maybe 1 trillion at best. Trump says, however, that he can get the republicans to get on board with this if nancy pelosi can get on board with Steve Mnuchin. I think a lot of people think republicans are respect stressing less confidence in trump than they have in the past. Her meadow saying if pelosi and the white house can get an agreement, Mitch Mcconnell will bring it to the floor. Even getting that done and getting a bill to the floor, many people would see a some kind of progress rather than just keeping it tied up in talks. The clock is ticking and people need those checks. Thats what most people are saying. Tom just a lot of political posturing at this point come as you say. Kathleen hays with the latest on those stimulus negotiations. Oklahoma set for what could be the worlds biggest ever ipo. Insight with our guests. Rishaad jp morgans private outlook andg us its the president ial election front and center. This is bloomberg. Tom the dollar fell against most of its g10 peers. Treasuries mostly calm, aussie short and rates also dropped with the rba trying to steer the rates curve and the assistant governor says it would not be a surprise for shortterm rates to drop below zero. , ining us is Adam Margolis want to start with the u. S. Dollar, no surprise there, we just been breaking down stimulus discussion negotiations at continue as a painful spectacle. You had a bearish view on the u. S. Dollar for some time. It has played out, youve called it correctly. If you want to be positioning in other part of the g10 space, where do you look . Adam good morning, tom. I think weve been pretty consistent in terms of our bearish stance on the dollar. Clearly in the last couple of weeks the market has come around to the view that the rising probability of a blue wave adds more risk to the u. S. Dollar outlook. There are couple of Bigger Picture points that continue to underpin the view. One is the idea that the fed is there will be a period of low rates for a while. And Global Growth expectations remaining firm, and that supports our view. We have to acknowledge it is an evolving picture. When we see signs of a second covid wave in europe, inevitably that brings a lot more to weigh risk for the euro. Thats one reason we been rotating our focus more recently toward asia in the last few weeks. On the yuan, as you bring looking at highs matching almost 2019 levels if not slightly stronger than 2019 levels. Sandere a line in the where the pboc and officials have to step in, or do you think theyre comfortable to see it go beyond 6. 6, for example . Adam its not just an election play, we have seen the yuan rallying strongly post first debate and the trump covid diagnose it diagnosis. Towardket coming around a blue wave. We think that makes sense on the idea that a Biden Administration might result in a less combative trade policy, including potentially some relief on tariffs. And dont forget the economy is coming out the back of its strongest quarter since it started trading offshore in 2010. Even with this recent gentle reminder that we had last weekend about the changes in reserve rules going forward, that was the reminder that currency appreciation can be a oneway bet. We have to say that what we seen in the last few weeks, or the last few days in terms of the fixing by the pboc is not necessarily sending in a clear signal to the market about being concerned. General tend to be more worried about unruly moves, so that makes us think that probably the next leg higher in the yuan is likely to be a grind rather than explosive price action weve seen in the last quarter. As a group we continue to be very constructive in china and e. M. Asia. Tom you touched on the blue wave, the fact that some making provisions for that. What is the historical guide here for the currency markets and how they interpret some of the election volatility in the closing stages of a race like this . Its a great question, and i think this time may be a little bit different. In terms of how the market is going to play it. One of the things the market has obviously been worried about is the fear of a contested or delayed election result. Interestingly, what we can say is that currency markets are beginning to price out that outcome. We look at currency options market, the size of the moves expected from the day of the election and subsequent days of reducing, i think that is pretty consistent with what some of the. Ebsites are suggesting while i would say the market is becoming increasingly confident of this idea with the blue wave, that it would trigger another leg of dollar weakness. When we think back to 2016, that creates a little bit of nervousness in terms of the way people are interpreting the data. Tom thats understandable, given what we saw then. Keeping people on their toes. So do you rotate out of the u. S. . Have a look at chinese bonds, the yield premium over those from elsewhere. Is that one of the destinations that you give your clients an option to go to . Adam absolutely. Thats been a very significant theme across our franchise here in the last two or three months. We think that makes a lot of sense, given the current low level of developed market yield. We continue to see a lot of interest in chinese fixed income. The combination of the carrier advantage and the relatively low level of volatility as part of that story. We think thats a trend that is likely to continue. I think in a global context, or beginning to see interest in china out of places like the u. S. That has not traditionally been the case. He gives us confidence that that trend toward increased interest in asia and china is likely to continue. Youaad good stuff, thank for joining us, Adam Margolis. A lot more coming up right here on bloomberg. Rishaad your back with Bloomberg Markets as we check with the latest income bloomberg flash headlines. Bob swan has been looking to sell parts of intel that are not parts of the Main Business. Sold the already smartphone division. Approval for the hong kong leg of the make guild listing following a similar move by china. The green light for the share sale and is now considering approval for the shanghai part of the offering. Its set to be the worlds biggest ipo. At pioneereporting Natural Resources is in talks to buy an Energy Company as consolidation continues in the oil industry. Mexico is said to be discussing around 4 billion. But it does have 3 billion in debt. Thats not the only story making headlines as consolidation is not confined to this one in the energy sector. Tom another mega oil deal is , conocophillips says it is reviewing its strategy after its 9. 7 billion takeover of concho resources, making it among the top u. S. Oil producers with a reserved space of 23 billion barrels. The ceo told bloomberg about his plans. We been talking about the need for consolidation in the business for quite some time. To put it together to offer investors a different way to think about the space. Transformative acquisition with concho resources. It brings in a bunch of 23 billion barrels into the company. Its about the assets, its about the superstar Balance Sheet managing the volatility we see in the business. Its about how you allocate capital for value, not for growth. Its the distributions were able to give back to the shareholder. Its about the sustainable business. Is an Energy Transition coming for our plant. Can you give me some insight into how competitive it was . Theres only a handful of Shell Companies worth buying. Give me some perspective on that. This is putting to super Quality Companies together to create something thats really special in the space. We said this repeatedly in the it needs to be below our 50 cost threshold. Thats the kind of resource that gives us huge position in the Permian Basin. Its a great complement to our existing unconventional position. Now a super large position in the Permian Basin along with our position in california. Were one of the largest unconventional producers in the business today. About you just talk to me what investors are telling you about this deal and why it makes sense . Why would i want to put money to work in your company, given all the headwinds that the sector faces, and how does it change that calculation . The shareholder Value Proposition that we put forward, were going to grow the top line of the company on 70 of our cash flow. 30 of that will go back to the shareholder. A growing, stable dividend that we offer, you look at that Free Cash Flow yield with the dividend yield, we think were putting a Value Proposition out we canhat competes and do that through the cycle because of the strong Balance Sheet that we have. Cant predict what the prices will be, but we know we are investing in lowcost resources and we can be resilient with that. Great assets,g great Balance Sheets together, and thats what makes it different. These are great Quality Companies coming together to form an Even Better Company going forward. Goes hing that decline rates, basically how quickly the well loses momentum, the lower the better. Imguys are around 14 if correct. Concho has a higher decline rate. How will you manage it, and how do you think about that . That goes to the capital intensity. How much capital do you have to back in . We have one of the lowest decline rates because of our global, diverse portfolio. Also with the Legacy Assets around the world. Littlened rates are a below 10 per year. This moves it up to ride at 12 over the next decade. Ryan lance speaking to alex get alix steel. Heres what it looks like in tokyo, reflecting whats happening globally speaking, moved to the downside there. The nikkei to 25,. 3 lower even though we have a move to buy japanese equities. The fifth largest amount on and thats a latest week for which data is available. A. M. In hong kong and shanghai. Im Karina Mitchell with the first word headlines. Sources in washington say democrats and republicans are narrowing their differences on a new stimulus package with nancy pelosi hoping to have an idea on whether a bill might pass on tuesday. She is due to have more talks with Steve Mnuchin and Mitch Mcconnell who says the senate may vote in the coming hours. Democrats say a sniffing gap remains. The imf says it is more optimistic about Growth Prospects for arab states but onces mountingoutput is shrinking, 6 this year. Less than the 7 forecast in july. The improvement is fueled by an upward revision for saudi arabia. Build theaid nokia to first Cellular Network on the moon. They plan to create technology that allows Remote Control of vehicles and permit realtime streaming of High Definition video. Nokia says it will take it will create sustainable presence on the lunar surface. The system will be integrated into a lunar lander, which will self configure on the moon. President trump says he will remove sudan from the u. S. List of state sponsors of terror after the african nation promised to make a long sought after payment to american terror victims and their families. Pay ill play will iran, north korea and syria are the last on the list. Global news, 24 hours a day, on air and on quicktake by bloomberg, powered by more than 2700 journalists and analysts in over 120 countries. Im Karina Mitchell. This is bloomberg. Tom lets check in on the markets now. Broadly, it is risk off in asia. You have what is happening in terms of the covid situation in europe. In the u. S. , you have ongoing stimulus discussions. Here, we had the loan prime rate on hold. Up veryis nudging modest gains. Lackluster, e central he. Essentially. Rish was pointing out that Foreign Investors have been taking heart in terms o