only with xfinity mobile. now that's simple, easy, awesome. switch to xfinity mobile and save up to four hundred dollars a year on your wireless bill. plus, get two hundred dollars off when you buy an eligible phone. ♪ >> welcome to daybreak australia. to asia'snting down major market open. are your top stories. the u.s. and china planned new talks on the phase one trade deal. is short of the agreed targets.

deaths near 700,000. virgin australia rescuers are set to outline the airline's financial plan. >> we are seeing u.s. futures opening flat. u.s. stocks finished higher in the new york session. they fluctuate between gains and losses. thestors are assessing prospect of another stimulus measure. says they try to come up with a timeline on the deal. we expect to hear from president trump at a press conference anytime now. the s&p 500 was way down by financials but energy companies led the advance.

oil is losing at the moment. heading toward $41 per barrel. this after we saw the biggest gain in two weeks. let's look at the asian markets. asian stocks are looking at a modest drop potentially ahead of the session. toyota and honda are reporting today. the yen is holding below 106. china officials are reportedly set to meet around august 15.

barda futures heading higher. when it comes to commodity currency, we saw a lift up there given the rise in oil and metals. cracked 2000 for the first time ever. rally, a short-term pullback could look likely as technical levels signal overbought conditions for bullion but there is still more forecast against. in treasurydrop yields is making it cheaper to short the greenback. treasury volatility stayed calm. a pickup and currency volume.

-- volatility. >> u.s. and chinese officials are preparing to review the phase one trade agreement later this month. our guest is joining us from aging. a lot has happened in terms of this elation ship unraveling in the past six months. >> a huge amount has happened. tensions, the virus, hong kong, the uighurs. all of that will be in the background during these conversations that will happen. we are being told between u.s. trade representative and chinese vice premier. they are expected to be held on or around august 15. it is going to be focused on china's commitment to boost imports from the u.s.. that commitment was an increase

of $200 billion over two years. china has fallen short of the pace needed to meet the target they committed to. we have seen an increase in purchases of things like soybeans, corn, and other farm products. they could be less than halfway to their target. we heard to china's ambassador to the u.s. saying the virus has impeded trade flows. that is the line china is going to push. they will say that we made these commitments and we have made purchases. a reminder that both sides have recommitted to the phase one trade deal. the only thing they can have constructive talks on at the moment.

we are hearing that there may be a crackdown on chinese tech companies. china reacted to the president's demands that tictoc stops u.s. operations or be shut down? >> the rhetoric from state media and officials has been very fierce. the china daily put out an editorial calling it a smash and grab attempt by the u.s. and suggested that beijing may try to block the deal. they framed it as officially sanctioned aft. donald trump has demanded that tictoc be sold to an american company or be shut down. he does have the power to do that. he could put tictoc on the u.s. entity blacklist which would block apple and google from having the app on their app stores. that is the process he could follow. he has also said and insisted

that any sale of tictoc does include payment to the united states. it is not clear under what authority he could demand that money. in the past, he has made similar mexico payingke for the wall that didn't happen. is biggest risk for china that tech companies probably could be affected. they could start targeting other chinese companies which is the broader concern for china. >> we will see what president trump says on that. he's going to speak in a few minutes. in an exclusive interview you don't want to mess later -- later today, we will hear from bill gates on how the u.s. china tensions are affecting the tech sector and much more. still ahead, disney is taking a

bumpy ride with big losses as the coronavirus smashed earnings. we will break down those results. next, a funds president gives us his outlook is the fiscal cliff draws closer. this is bloomberg. ♪

♪ >> president trump is speaking right now at the white house. it is his daily press conference, he is talking about the china virus. he says he spoke to the governors and fema officials on hurricane isaias which has made landfall. u.s. stands the ready to assist lebanon after the explosion.

he says it looks like a terrible attack. in the meantime, let's get other headlines. president trump mentioning those attacks in beirut. violence has returned there with more than 60 people killed and thousands injured in the explosion. the blast shattered windows across the city and was heard in cyprus. authorities have not said if it was an accident or a deliberate attack. oil rose amid fears of instability. the defect a leader of me on myanmar -- she was barred by the previous military constitution from becoming head of state. she has faced international criticism for failing to stop attacks on an oral -- minority muslims.

virgin is working with an arrow engineer to build a plane that can fly at three times the speed of sound carrying up to nine passengers. initial pictures show a similarity to the concorde. that plane was able to reach mock to. china is offering more signs of a recovery with auto sales rising. in july. almost 15% the easing of the coronavirus shut down is allowing car buyers back into showrooms. 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. flat after aes are gain on tuesday.

investors continued to gauge the outlook for a stimulus bill. joining us is a portfolio manager. great to have you with us. let's talk about the stimulus bill potentially coming soon. right now, we are hearing from mark meadows saying the trump administration has made concessions bigger in the virus relief talks more substantial than the democrats. what do you expect out of this and what could be the impact on the markets if they are delayed given how big of a boost they gave to the retail side of things? >> good morning. expectede probably all that the ultimate number would be bigger than the republicans $1 trillion. probably not a full three chilean dollars that the democrats are throwing around. it's probably going to be in the middle, who knows.

up isason the market went in anticipation of the additional debt spending. that's what it is. thinker the deal is, i it's going to be viewed as a keep people participating in the economy as best as possible given the shut down and erratic reopening around the united states. it is tough to tell everybody to sit in place and not undertake your business, not go on with your life than not provide funds for you to be able to do that when it wasn't your choice. they need to do something and they are. the quicker the better, i think. ofwill have the implication your debts -- bigger debts. that is something that we in the united states will have to deal with in the future. >> given how much fiscal and monetary support the equity markets are getting right now,

does this put a nice floor under the markets and when would be the right time to buy? stocks are cheap, broadly speaking. certain sectors are probably way overvalued even among companies that have been able to justify their valuations. i am speaking primarily of cap tech. investor, youterm buy and hold. if you're going to do that and you are disciplined about it, you could buy here in certain places. i would recommend some sort of consolidation, some retracement or something because the values have gotten overextended. we make it into a situation where the markets drop a little bit in anticipation of a stimulus. depending on what the details are, maybe the market sells off

a little bit from here. bethese levels, it could anything that causes a consolidation or a retracement or we could continue to bleed up. there is liquidity for that. the fact that you have the fed backstopping and fiscal stimulus. the cost of capital is cheap. and means people take risks we may continue to see this in the late summer and fall. the uncertainties relating to heading into the fall with respect to coronavirus, the elections which are substantial will begin to get on investors minds and may impact trading further at that point. >> you mentioned the tech growth story. i want to throw out this chart looking at mega caps. the relative strength index is starting to show lower highs. stagnation or

perhaps potential weakening but at the same time, you have apple having its best five days since 2006 up almost 20%. is there a sense that these tech rallies we are seeing are not that therelated, pandemic sped up growth story and it will continue post-covid? >> yes i think the move toward working from home and all of these technological trends that have been accelerated by covid were in the works already. it is just made the move quicker. that's true when you see the operating results of some of these companies. at the same time, some of the companies are tremendously overvalued. crazy numbers. in the long term, you don't mind overpaying for growth, but you want to be able to have a path to the company growing into a

reasonable market. it is hard to justify some of the run ups as being able to do that even over a two-year time. be seeing the beginnings of a slow down here even though the companies have performed well, there is a limit to how far they can go so fast. the real opportunity in equities, you asked can you still buy? yes i think you can and if you look at areas that are keeping up, if you take away the tech numbers in the market where most of the returns are, a big chunk of the returns, the rest of the market is not doing as well. if you are a long-term investor and you believe that ultimately we will come out of covid and resume growth even if it is at a gradual level and you are a long-term investor with patients, you would be buying and some of those areas because they are cheaper and they have

better prospects over the long term than buying apple at $450 after the run-up it has had. it's hard to argue against buying quote -- growth stories because they keep going up but from a valuation standpoint, a little rich right now. you might look for other areas that are underperforming with potential going forward. >> if you are a long-term investor, would you start looking at the pandemic ahead of stocks? do you start looking at stocks like disney, like some of the travel cruise services related stocks that won't see a recovery until we are well out of this? >> you certainly can. we own disney and in the long term, we still like it. we understand the problem and getting people to the theme parks. the problem with lack of production in filmed entertainment while everyone is shut down.

it is a good company. i wouldn't say it is cheap, but it is a good company for the long-term. we like that. in some areas it is hard to predict and it might be too early for my taste because it is hard to predict when people are going to get on cruise ships and participating entertainment and those sorts of things. disney has a very diversified business model so i am more comfortable there. and with the airlines manufacturers like boeing, it's tough to say how long it is before they start selling planes and people start traveling at the level they were. >> we always appreciate your time. we are hearing from the australian prime minister speaking at a security forum taking place in aspen.

he says that australia in terms of the security implications of tictoc, australia has not seen [indiscernible] data by tictoc. this comes as we continue to get the talks with microsoft looking to acquire tictoc. president trump wants to ban tictoc. he is also welcoming china's rise as a major economic partner saying that the w a chose covid-19 probe into the origins of the coronavirus is not politically motivated and saying that the u.s. and china need to pre--- peacefully resolve their disputes. more to come, shares of novavax. some confusion over data with its experimental drug.

this is bloomberg. ♪

♪ innovavax saw wild swings trade amid confusion over its drug trials. 34% infell as much is extended trade before swinging back to gains. what's the story? saw their first set of data coming out with the covid-19 vaccine. the results looked really good. it does produce four times the level of antibodies. that was great. out that a competitor had the data incorrect and they were reporting there were side effects.

storyors looking at that started selling. this is what happens when we don't have the data, it is not published, it was just posted online and we don't have a lot of good detail about it so sometimes mistakes happen and this was one of those. >> what do we know about progress with other vaccine candidates? from are hearing a lot , johnson &madonna johnson, and astrazeneca. up, it is coming pulling up the rear. this is the first part of their phase one trial and they are going to start advanced studies coming later. is iting about novavax doesn't have to be held at super low temperatures. looks consistent. we have a number of vaccines and

development. they seem to be getting pretty good results and if one of them doesn't work, we have at least half a dozen others that are working at a different way. it is hopeful we are going to get to where we need to be. our health care reporter with the coronavirus vaccines. the u.s.low says tictoc deal may not be a key stipulation despite president drums insistence that a large percentage should go to the government. microsoft board member spoke to us about negotiations to buy the popular app. >> microsoft put out a detailed statement on the subject so i refer people to that. microsoft say is that would be a good home for tictoc. >> the other concern is should the president be able to ban any

company let alone a company that 100 million americans use? >> i think the president's concert about security and privacy and digital safety of americans. that is a role for the president of the united states specifically how he and his administration choose to achieve that is something i don't have insight into. that was the former u.s. secretary of commerce speaking to emily chang. let's get a quick check of the markets. zealandtrading in new underway ahead of jobs numbers. let's call it flat. tolat outlook one it comes

u.s. futures as well. we are looking about -- like a bit of a negative open. lots more to come, this is bloomberg. ♪ experience the ultimate sports hub.

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>> you are watching daybreak australia. reports from washington said the u.s. and china are planning a new round of trade talks. are said to have agreed to high-level discussions on august 15 to discuss beijing's compliance the phase one deal. the u.s. has been hammering china over a range of issues. china is fighting back over the battle for tiktok. denouncing president trump's demand over a sale.

they indicate beijing may block any sale. are proving ales relief for instagram as concerns about its future since thousands of users to facebook's video sharing platform. mark zuckerberg told congress that any weakening of u.s. tech threatens to strengthen china's position and influence over the internet and social media. 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. >> disney reported after the bell saying coronavirus had a massive impact on its theme park income.

over theus grew quarter. aboute just talking surprises. there is a pivot to new strategies to try to make up the losses from covid-19. is there now greater concern with the numbers that it's going to be sometime before the parks part of the business is going to return to meaningful recovery? >> i think the expectations we our for a recovery that will stretch into 2021. this is going to be a marathon as we cannot see the resurgence of covid-19 cases in the u.s.. we are confident that the theme through at now going phased reopening across the board. the reliance on international visitors is something that is way off from where the

normalized levels should be. i think theme parks, they have a lot of ways to go. the studio which we also note the theatrical business is taking a major toll as result of the lockdown. the good news is that there are parts of the television business returning gradually. there are a lot of moving parts that we think the company will continue to navigate. in the meantime, they seem to be well situated from the financial -- to navigate the pandemic. >> in terms of the better news that came out, they are leaning into going direct to consumer. the streaming business, disney plus. do they need to lean in even harder to drive and find new sources of value online? >> yes they do and that is one

area where investors are leaning in as well. the premium that disney is trading now significantly above its peers in large part due to the streaming strategy direct to consumer with disney plus now and 100ng 60.5 million million and total if you factor in hulu and espn plus. they are firing on all cylinders. the surprise was that they are going to launch a streaming offering to be integrated with disney plus and that could add their questnsion in to attract a broader audience. announcement milan that could be going up on paper view with disney plus. disney has always been at the forefront of reimagining the traditional distribution

windows. that is what we are seeing now. it seems like the new ceo is going to continue in that line. that is what sets them apart. that is really important to get out front and try to mitigate the losses we are seeing in traditional platforms. whether it is espn or other cable networks across the board. >> even the film studio was a moneymaker when theaters were closed. >> that's right. the theatrical business took a as theaters or mostly closed. there's a lot of things within the film division the tried to make up for that. at the forward visibility in terms of the theater reopening's continues to be clouded by the covid-19 resurgence. we are seeing the film studio could take longer to get back to

normal levels as they begin to experiment with all of the windows. some of the bigger films like mulan, how does that impact their film release strategy? i would think that going forward, they are going to be more open to releasing big titles in nontraditional channels. what that means is that the loss revenue from the studios is going to have to be made up by some of the digital platforms. and if is all evolving anyone can pull it off, disney can do that. >> how created for they during the pandemic when there was no ine sports and bringing alternative sports like creative baseball? returning iss something some -- silver lining.

there are still questions around how they could manage that. espn has taken advantage of the pandemic to be very creative in terms of original programming they have been putting on two great ratings. you alluded to some of the international sports and nontraditional sources of programming. they have been experimenting with that to tide them over the impact of the pandemic. to be a lot of good that comes out of this pandemic because it is forcing all of these platforms to think outside the box. espn is no exception. >> happening right now, president trump is speaking about the white house talking about the potential tiktok bill -- deal saying that microsoft

would be good for a tiktok deal. we continue to see skepticism over microsoft buying tiktok u.s. operations given the tensions with beijing. president continues to insist that the treasury should see a fee over this sale. are lots of doubts over what authority the president would use to collect a part of that sale. a beverage maker saw sales slump as restaurants and bars were closed around the world. with rising economist -- e-commerce sales failing to plug the gap. it's ceo told

>> what we are looking at for our last quarter was the weakest quarter because it had the biggest impact. we are seeing sequential improvement even in the last quarter month-to-month it improved. as we look forward, the next couple of quarters, we are expecting things to get better each quarter. to your point in china, every day every week is getting better. seeing consumption pickup. likeame happens in places u.k. where the pubs opened a few weeks ago. we are seeing steady recovery. the beer business in the first couple of weeks was 70% of normal. we expect that to improve, but clearly it is based on the of the virus and government policies that will impact it. overall across the world, we do expect sequential improvement. that was the ceo of diageo.

this is bloomberg. ♪ >> ♪

you are watching daybreak australia. lots of data for investors to watch today. indonesia is second-quarter gdp.

>> we also have singapore retail sales. pulling up the board, s&p e-mini's, little change to the downside. rallying stocks in mumbai, india expected to lead the gdp contraction. bond futures in australia are settling higher. treasury futures continuing to edge higher. traders are watching for signs of a reckoning. volatility at an all-time low. the dollar changed in the asia session. the dollar's track lower has seen a correlation with asian stocks hit a strongest on record

. a soft dollar has been a boon for emerging assets. a, one cautioned that a prolonged path to a vaccine would boost the odds that liquidity support would be's -- would be higher and that lifted the dollar. >> we have breaking news when it comes to the new zealand labor market. the unemployment rate dropping 4%. that is better than 5.6% that was expected. also better than the 4.2% in the previous quarter. the partition -- participation rate is what is expected. employment change was a gain of 1.2% year on year which was

better-than-expected. the unemployment rate going down to 4% is very good news because new zealand is still coming out from one of the strictest lockdowns in the world. the new owners of virgin australia are expected to announce their plans for restructuring that airline today including news of anticipated job losses. what are we likely to hear from them about the future of the carrier? >> the job losses are going to be central to what we are likely to hear. 9000 employees at virgin australia, they expect 40 to 50% of those jobs to go. there are 132 planes in their fleet. and could be reduced to 70 that would be focusing on profitable mystic roots.

a low-cost budget airline is likely to go. we will hear more about which markets they are going to target and where it's going to fly to. earlier they said they don't want to turn it back into a budget airline but they don't want to compete with qantas for the top end of the market. virgin is still carrying a huge amount of debt. creditors arend yet to vote on the recapitalization proposal. >> air travel has all but collapsed. what is the risk of the virus spreading across the country? >> let me run you through the situation. we have the opposition: for 14 of arrivals from melbourne. that is not happening right now. one-, when-to---

they arrive in sydney the passengers get screened and shown how to put on a mask but masks are not mandatory. they are put into a taxi and sent home and told to self-isolate for 14 days. whether or not this works, we are going to find out the hard way. the opposition is worried that this has the potential to turn into a second ruby princess. that was the cruise ship that dislodged passengers and things went south quickly from there. there are 12 new cases in sydney overnight. not very many, but this is where melbourne was a couple of weeks ago. things can escalate quickly. film industry is trying to keep some production going amid the virus impact. is one of the bright spots. 400 million australian dollars of incentives to come and shoot

movies in australia. if you take melbourne out of the equation, the rest of the country looks good. forptions have been made film crews and actors to come here. scripts can been -- they have been rewritten. one movie is part of the marble universe. another for movie is in preproduction. there have been production inquiries as well. a rare bright spot. ahead onl have more daybreak australia. this is bloomberg. ♪

♪ >> a quick check of business flash headlines. executives were called after its worst was beschloss. they lost $1.5 billion in the second quarter. hsbc is looking to hire up to 3000 wealth planners and china. it says the first 100 or so have

already started work. the rest will be added over the next four years. they are in the process of cutting 35,000 banking jobs worldwide. lender hast valuable named a new ceo. he will begin a three-year term in october. spent 28 years in charge. a singapore company is the latest e-commerce to branch out. it is to roll out an auto invest. tinto admits it has

failed to recognize the value of one of australia's most significant aboriginal sites. details. the it fornificant is investors to be watching this given that it determined whether they get local communities to agree to their new minds and expansion plans? >> that's exactly right. the one thing that is focused intention -- attention for of mayrs, at the end there was an incident where rio area detonated a mining where there was evidence it had been used by aboriginal australians 46,000 years ago. a very ancient site. asked not only

questions about the governance inside the company, over handling the crucial community relations that allow them to operate on land particularly on indigenous land in remote areas. specifically what this means for legislation going forward. they constantly need to replace iron ore minds and those of the operations that generate almost 90% of its profits. it is a key issue. aat we had yesterday was submission that went into a lot of detail about the opportunities it missed to understand the significance and pledges. we got to a point where headlines like this become more than just reputational damage? absolutely.

we have spoken with investors not only those, more general investors also. it goes to governance, a ghost of the culture of a company and it is things like these that investors are weighing when they make investment decisions. that was our senior energy and commodity reporter. it coming up, we will speak with spotlight asset group about markets and stimulus uncertainty. chinabetween the u.s. and are set to take place at the middle of this month. about interior rating relations between u.s. and china. poses a whether tiktok national security risk and how countries like australia

potentially get caught in the middle. we have much more coming up on daybreak asia. asian markets are looking mixed to lower. this is bloomberg. ♪