know? about fisa, now it is widely accepted among republicans that there was fisa abuse. in 2013actually warned that the surveillance court was allegedly a rubberstamp. i don't think as president you've commented on edward snowden, but do you think he should be allowed to return without going to prison? >> there was tremendous fisa abuse. it is amazing that it has taken this long. everyone knows it has been proven substantially. changing documents and putting documents in front of the court, courts that are disgraceful that they could have done it, and the biden,, we caught joe president obama, the whole group.

you can look at brennan and comey and klapper. we caught them spying on our campaign. this was an illegal act like no other illegal act. this was treason. this was at the highest level of treason. and obama and biden got caught spying on my campaign, using intelligence agencies of the united states government to do it, both before and after the election, so before the election, then after i won, they continued. it is totally illegal activity. but as far as pamela is concerned, she's a big tax funds, a big slasher of for our military, and she's got a lot of difficult things that she's going to have to explain. plus she was very nasty to one of the reasons that surprised me, she was probably nastier

than even pocahontas to joe biden. she was very disrespectful to joe biden and it is hard to pick somebody that is that disrespectful. she said things during the debates, during the democratic primary debates, that were horrible, about sleepy joe, and i would think he wouldn't have picked her. yesterday, seattle city council voted to cut funding to their police department and the police chief there, the first black woman to serve in that capacity, she resigned. what does this say about our country and the police movement? , in think that seattle spite of all they've been through -- >> you are listening to president trump there speaking at the white house, talking about an array of topics, but in

particular, getting that response to the democratic presidential candidate joe biden picking the california senator harris as his vice president running mate. saying that he was surprised by the pick and he said kamala harris was doing poorly in the primaries. of course we did hear earlier this morning that joe biden has picked the senator from california, the former attorney general of his california. we are going to get analysis going forward. >> let's look at how u.s. futures are trading at the open. u.s. futures higher by 0.3%. this after all three major averages dropped into negative territory. they were fluctuating much of the day. the focus has been on that next round of stimulus talks. we heard mitch mcconnell saying they were at a stalemate.

big tech extending their losses. nasdaq composite falling. we have cyclicals also paring gains. joining us is mainstay capital management founder, david. great to have you with us. we continue to see this rotation. is this trend sustainable at this point, when we don't have potentially more vaccine positive headlines, not to mention u.s. economic growth numbers that can really push back the rhetoric over the ongoing pandemic? >> we've seen this movie before. we saw this in may and june. we saw a very abrupt and steep rotation into value stocks and cyclicals that lasted for a couple weeks. it looked as if we were going to with therotation

recovery stocks starting to advance. it stopped almost as fast as it started after a very sharp rotation and we came back into those same names came back into growth and when we look at the second quarter, the growth index had set a record for one of its best quarters ever. we think that is going to happen again. we think this is another head fake by the cyclicals and the value stocks and that this will be short-lived. >> we are hearing from president trump now giving his press conference at the white house. he has made some points about the vice presidential pick, kamala harris. what does the presidential election risk look like to you in the next three months? >> it will become more and more of a factor. typically when we look back at statistics over time, it is not

as much. we put a lot of emphasis on which party will control congress, which party will control the executive branch, but mostly leading up to the election, it is about uncertainty. that is what we are faced with here over the next 80, 90 days. we've had a little bit of certainty today with a vice president pick that has been named. but what that means to the running asn she was a presidential nominee, she talked about taxes on financial trading to pay for health care initiatives, things the markets don't like. so there is some concern for the markets there. with biden and trump so close in the polls. so a lot of uncertainty. >> and a great deal of

uncertainty for the tech sector. given that we are seeing president trump go so hard against chinese tech, potentially just worsening this potential bifurcation of western and chinese tech. is that a sector you would be wary of? saying, youlysts just use that as an opportunity to add to your positions. that as anooking at opportunity to add to our positions. even if there is bipolar development of technology, with and path that president trump is talking about of divorcing technology development from china in a very different manner than what we've followed globally over the last several decades. technology development will

continue around the world. tech is eating the world. whether it is developed here or abroad, it is changing the way we live. it has changed the way we lived during the lockdown and the secular growth stories are real and are enablers in every industry. thatst continue to see again and again and again. that sector i think is important. we are going to have days like today and the past few days for technology and some of those leaders we have seen this year. let me finally get your views on gold. after falling from pretty close to record highs in the session, we are seeing that decline, the most in about seven years.

>> we look at this as a good buying opportunity. it was not a good day for gold, but today and the last couple days, we had gold reaching a new all-time high, broken the all-time high in 2011, then crossing 2000, and we've seen some profit-taking or a shakeout today. we had many asset classes down. we think this is a buying opportunity. central bank policy around the world, where interest rates are going, where real rates are going, gold continues to be a buy. >> always appreciate your time with us. strategisttment

david gula. analysts saying it is increasingly becoming a tough call. we get a preview of the decision just as new zealand's run of being covid free comes to a halt. joe biden chooses kamala harris as his running mate, banking on her ties to the african-american community and experience in criminal justice. this is bloomberg. ♪

>> you are watching daybreak australia. i'm karina mitchell. the coronavirus outbreak continues to spread around the world with the u.s. accounting for a quarter of all cases. hong kong may be bringing its outbreak under control, reporting the lowest number of new infections since a month ago. the city saw 32 new local cases.

there are growing fears that the virus impasse in washington will drag on for weeks. the main characters haven't spoken for days with the white house demanding democrats reduce their demand that the government must double its spending commitment. a late session slump tuesday indicates some pessimism. haszealand prime minister put auckland under a new lockdown after four cases of the coronavirus were found in one city household. the discovery ends one hundred two days of no community transmissions in new zealand. the new restriction start wednesday and will last at least 72 hours. most schools will close along with bars and restaurants. the coronavirus is dragging on india's recovery with factory output down as the economy struggles to reopen. 16%,ndex fell more than

i'll be at less than the 20% decline seen in a bloomberg survey. india is heading for the first full-year contraction in more than a decade. global news, 24 hours a day, on-air and at quicktake on twitter, powered by more than 2700 journalists and analysts in more than 120 countries. i'm karina mitchell. this is bloomberg. tappedbiden has california senator kamala harris as his running mate, bedding that her ties to the african-american community as well as herself branding as a progressive prosecutor will help propel him to the white house. harris becomes the first black woman on a major party presidential ticket. henrietta.now is wonderful to have you on what has been a very exciting morning in terms of this vice president

pick, but this is something you had expected. it was just a question of who would be the presidential pick and who would be the vice presidential pick. >> absolutely. we had a bad joke that it was either going to be mala/biden.a or ka when we look at who is undecided, these are the people who decide the outcome of the u.s. election. 20% of the american electorate is still undecided. 56% are female. 12% are black. 48% are young. these are the voters that joe biden is hoping to really speak to an appeal to going into this election. >> how important is it that

senator harris is a member of the senate budget committee if we do get a successful democratic victory? >> in my opinion, it is key. i am biased as a former staffer. i think highly of the committee. but it is definitely a fact that in order to get legislation through in washington, you need 60he -- you either votes or you need the senate budget committee. if you want to unlock the threshold, you must speak to those members. you must go through that archaic process of passing a budget and touring those critical votes get any legislation pushed through. it is our case that this race in the senate is going to be very tight. democrats will be lucky to even get a 50 seat majority. biden brings his bipartisan appeal. he was the vice president in

2009 when barack obama was able to get through the american recovery act. terms, $831 billion deficit increasing stimulus package, that was able to get 60 votes, three of which were from republicans, because of joe biden. so he will go right out of the gate, trying to get as many as 10 republican senators to sign in on a big stimulus package practically the same environment , just instead of mortgage-backed securities, it is a pandemic. and tap into the legislative institutional knowledge that kamala harris actually brings to the table. i think it is a really helpful pick for him. he said he wanted a dealmaker as a partner, somebody who could

help him push through legislation. >> president trump has talked about reducing taxes when it comes to capital gains. he has touted record highs in as part ofarket being successful in his presidency. he wants to see markets higher. what do democrats and the white house need? >> when you think about capital that, that is something administrations have looked into doing for decades now. the department of justice has clarified that it is not within the administrations power, so president trump is not in a position to index the capital gains rate to inflation and he's not in a position to pass any tax legislation of any kind through the house in 2021 if he is reelected.

the promises of further tax cuts from here should probably best be read as no tax increases. but tax cuts are highly unlikely. odds that democrats will maintain the majority in the house, which means that legislation to cut taxes -- especially when 50% of the population doesn't own stocks that have capital gains, makes that distinctly unlikely. when you think about trump administration priorities in a 2021 environment, you keep a perpetual focus on tariffs, the trade wars with china and the european union will be a primary focus. that is action that the president can take. he doesn't need the senate or the house. expect a primary focal point to be on continuing a very

aggressive trade policy. that will similarly be the case for biden as well. if you have a fractured senate, you probably get one bill through congress at most. the second priority is in the health care field. that will be dominated by a decision made by the supreme court. the third piece is going to be a massive green new deal environmental reforms, and that is where maybe if you see any tax increases, it would be in that third package. but as a new president, you only have about nine months to push legislation through. in both cases, i think you are looking at trade being a primary focal point. getting legislation through the senate is going to be tough for either of these candidates. >> henrietta, great having you with us. don't miss our special coverage

of the democratic convention which will kick off next week. coverage starts at the times you see on your screen. this is bloomberg. ♪

>> hong kong media mogul jamie lie has been released on bail. our chief north asia correspondent joins us now for the latest. what now? what is next? next stage ofthe the prosecution if that is what goes forward from the hong kong police. we had jimmy lie walkout shortly after midnight last night. media not speak to the gathered. station was saying

that he had to be released within 48 hours if charges had not been laid against him. prior to his release on bail, charges have not been laid. but we will have to see if those charges are going to be confirmed by the local police. this development came at midnight. as well as activist agnes chow, who waser party member also arrested on monday under the national security law, she was let out on bail early this ofning, the equivalent $26,000. she had to surrender her hong kong passport and was told to return to the police station on december 1. >> we are also hearing that china has given its blessing to that extension of the legislative term in hong kong. why is this significant? >> this is significant because

the standing committee of the national people's congress, it is the second time this body in beijing has weighed in to interpret the basic law. the first time was the national security law, which was basically imposed on hong kong on june 30. now they voted unanimously on the resolution to extend the current session of legislative council for no less than one year after the hong kong government postponed the legislative council for a year. we were supposed to have those elections early september. they were delayed because of the coronavirus. western nations have said it was more likely due to the popularity of pro-democracy advocates. u.s. will nowhe label hong kong products as made in china.

symbolic move or more important? >> highly symbolic but it is part of the steps washington is taking as part of donald trump's removal of the special trading status for hong kong. only 1.2% of all the exports from hong kong to the united states in 2019 were actually of origin, made in hong kong. hong kong is a reexport center. about 80% of the exports from hong kong to the united states are re-exports from china. move, that symbolic the mating hong kong label will be removed and it will now be made in china. >> all right, stephen engle there with the latest. let's get a quick check of the latest headlines. boeing's hopes of bringing the 737 max back may be hindered by regulations.

e.u. and canadian officials are concerned about software, with fears that global certification may slip to next year. the faa launched the process that could see orders in october. the jet has been grounded globally for almost 18 months. -- head of india operations and head of safety have been sent home for three months. video posted a youtube where they question airasia's policy on sick leave, lending procedures, and handling of the coronavirus pandemic. electric car sales rose in china last month. tencent reporting near better-than-expected results. total deliveries climbed about 8% from a year earlier. coming up next, new zealand reporting its first community

infections in more than 100 days while russia approves its first vaccine even as trials go on. we have the latest just ahead. this is bloomberg. ♪

>> you are watching daybreak australia. joe biden has picks kamala harris as his running mate in november, hoping her african-american times and self branding is a progressive will propel him to the white house. she ran in the democratic primaries and is the first black woman on a major party ticket. she has 13 california already elections, having started her career as a district attorney in san francisco. jimmy lie has been released from detention after being accused of collusion with formal -- foreign forces. inand others were cut up

sweeping fears beijing will increase also's -- all dissent. his daily apple newspaper is read out for its condemnation of chinese authoritarianism. the trump administration is tightening the screws on beijing by labeling all goods from hong kong as made in china. camus, 25th, although the likely -- low the likely impact may be limited. only 1% of shipments the u.s. lester were domestically made. an tiktok is hiring more lobbyists in the face of a white house ban on u.s. operations. sharingese owned video app must find an american buyer or shut down amid claims is a national security threat, advertising would cause government affairs and boosting its influence in washington. --bal news

global news, 24 hours a day on air, on quicktake by bloomberg, powered by more than 2700 journalists and analysts in more than 120 countries. this is bloomberg. >> new zealand has introduced a new virus restrictions in auckland after reporting the first cases of covid-19 and more than 100 gay -- days. florida reported record deaths in texas cases hit 100 million. meanwhile, russia has approved its first vaccine there are spikes in india and germany. let's bring in our health care reporter to talk about all of this. let me start off with new zealand. just a couple of days ago, we were heralding the success of the new zealand model that had gone 100 days without community transmission and now you have got auckland back into lockdown. does this narrative tell you how insidious this can be, and how even countries that have handled this very successfully are really on a knife's edge?

>> everyone is on a knife edge, absolutely. you also have to recognize what they are doing here. it is literally for cases, one household that has been reported with coronavirus and they are locking everything down, so they are just going after this very aggressively. not only that they told everyone to expect this would happen. eradicate thewe virus from the country is unlikely has popped up yet. they knew it was coming, there locking everything back down and it will be interesting to see if they can replay. >> in the meantime, we see the u.s. rushing to get supplies of eight potential vaccine. moderna had come out with the highest vaccine price previously looking at the 32-30 seven

dollars a dose for smaller deals in other countries. toy came in with big numbers 100 million doses for the u.s., about $15 a dose. in the u.s., there are going up own -- going to own the vaccine, stockpiling wait until they see results, and that if positive, they will start vaccinate everyone. >> we have got another approved covid vaccine even as trials are ongoing and russia. >> exactly the opposite approach of what they are doing in the united states where they are stockpiling and waiting for the results. in russia, they are not waiting for results. the trials underway have tens of thousands of people and people are volunteering. in russia, they are saying they and so wes underway

are going to approve it and make it available for everyone to come and get it. the challenges that we don't know whether it works or not and there are risks because there have been examples of vaccines in the past where people who were immunized actually got worse cases. in other cases, vaccines don't work very well. in thoseomes to russia vaccines we may never have those answers. >> michelle cortez at the latest on global headlines around the pandemic. was one of the first global companies to feel the impact of the virus crisis with its large exposure to the chinese market. seeing brew giant is things pickup. the ceo told us exclusively that his company learned valuable lessons operating pandemic early on. of ouruhan, we have one

close to 40 breweries. that big operation in china is one of the top five countries. yes, it's a big brewery but one of many. everything in the country went through a lockdown or shut down. reopening anded wuhan was one of the last brewers to reopen. but now everything is back to normal in china as much as can be. retailers, bars and restaurants, they are pretty much back to normal, so china is way ahead of the curve. we also experienced covid as china did in the end of january. >> so is wuhan a bellwether for global consumption trends?

we learn a lot in china. ae of the benefits of being company with business around major countries, the big advantage at the beginning was that we learn from china early how to understand where intomers are going, how to the new reality, and then the pandemics are going to europe. we had protocols that were developed in china or south to do wasall we had brimah translate everything because we had to observe social distance. we had to operate with fewer people, we had to work from home. we had consumers not being able to go to bars, restaurants or hotels for travel, and a lot of

buying more consumer markets and grocery stores. not had a big impact on the supply chain. in terms of delivery and distribution. so agility was something we learn from china that was key to navigate even the fluidity of the situation. certainly because every country was a big different. our consumers had also reacted, but learning in china was key for us to navigate in europe, africa, and the americas. >> you have just announced record year sales. it seems as though people can't wait to start drinking again. what is driving this, and is it sustainable? that's interesting you ask

because in china we did a lot of consumer research during the wasemic, and what we saw the question was what would you like to do with the pandemic is over? told us they would love to go back to their normal life, to restaurants, to travel to meet their friends and go against relatives, do all sorts of things ball, music festivals. so that gave us a little bit of an insight. yes, there will be a new normal, but the fundamental thing consumers are trying to do when they have free time are still very much deep inside of them and we don't think those things will change. ab inbev ceo speaking to us earlier. and omit with another big beverage maker.

an interview with another big beverage maker. up next, the suntory president will speak with us about changes in consumer habits. it is a tough call for the index, but the consensus says they are ready for new virus restrictions. this is bloomberg. ♪

>> the biggest drop in seven years falling below $2000. we are still looking for a check of price action this morning. >> this morning, we have spot gold trading below 19.27. so steady after the drop we saw for bullion. while further correction cannot be ruled out when it comes to gold, a potential upside did surprise us and signal more gains they be in the making with spot testing a 2011 high. and as a guest said on the show dayier, it was in a good for gold buys but he does see an opportunity even where policy and rates are going. our reporto see cards from the likes of cathay pacific and tencent. they are looking for a potential swing in tencent shares.

switching out the chart on the terminal, evaluations are trading close to its historical norm staying above the 15 year average after massive rallies from march there were only recently derailed. they caution a wider band on operations as a whole that would severely impact operations. coming up on the broader set up for asia after a muddled handout from wall street, plus the drop in bonds which could handle -- herald the return of steeper trades. asian futures are mixed after the index erased year-to-date thees, and wellington, index falling the most since a reit -- outbreak in auckland and 66 dollar holding below while it has jumped to an april high ahead of the decision. >> has you say, the reserve bank

of new zealand is gearing up. do we see that as a policy change? kathleen hays is here with the preview, and how well the virus resurgence impact what the bank does? >> you would think they are at least going to talk about it. looking thaty auckland, the largest city in new zealand would be locked down again. is 00 and the bank is inspected to keep it there. in an emergency meeting, they went to bond purchases but a lot has happened as the virus is threatening the economy. that's a member that new zealand's economy had come out

of the virus faster and stronger than a lot of other economies because they move so fast and handle it so well. it is a subsidy program that has boosted job losses and for people with money to spend. rose in retail spending july for the third month in a row, the jobless rate fell to 4%, but not affected to stay how will be renewed lockdown affect something already in play, and that is weakening inflation and mark -- inflation? a problem andtely something they have got to be weighing. >> what is the move to boost bond purchases? >> in a bloomberg survey, two

thirds expect no changes but a third think they could do something. one thing will will see out of this meeting is revised forecasts, and when i speak to the head of the bank after the last meeting, that's where they saw downside risks to the economy. those two things were at the top of the list. >> we are targeting a low and flat yield curve. see the inflation rate falling below the bottom of the range and the jobless rate is actually getting close to 10% by the end of the year. mentioned,st bloomberg economics does see a boost in quantitative easing in the bond purchases. do even say maybe they will a shift to yield curve control and target the yield or three year note.

targeting a quantity of bonds to purchase. morgan stanley thinks they will boost quantitative easing for 80 billion new zealand dollars. they say the door is still open for negative rates though what i spoke a couple of months ago, he said they were pretty high hurdles they would have to cross isr one thing to think about the bond purchases. the government there is issuing a lot of bonds. this week, they are fully refunding 112 billion notes and bonds. the world is putting bonds out. maybe they will have to buy more of their own to make sure the yields don't get too high. latestleen hays with the coming up, we will discuss the

fresh full-year earnings we get back. evan lucas joins us next to discuss numbers.

>> the bank of australia says it will pay close to the maximum dividend even as surging debt pushes profits to a seven-year low. will talk to evan lucas.

great to have you with us and just get your initial thoughts on this set of results. every bank is looking at those provisions. roughly every one of two australians bank with them. it is not just the numbers but the economy side as well. that 11 point decline is a net profit, little bit worse than expected. up which iss well probably a positive in this market, but looking at the headline numbers and the fact that dividends have been slashed is probably secondary to what it is telling you for what it is doing around these covid provisions in regard to a lot of the clients and i think that was the biggest case, just how much of their loan book they are currently backstopping.

saw debts go up to a level we had not really seen, the fact that you have now got 33% of those loan deferments above 80%. so there are some really stormy cloud numbers in their and it clearly shows a lot of their customers are under pressure with unemployment and covid restrictions in general. >> they still declared a dividend and are just coming within a whisper shy of the regulatory barriers to do so. is that a wise decision, do you think? asked me about one of the other three big for banks, probably not. 73% of funding still comes from retail clients and that shows you we live in a strong balance

sheet position which explains why they can pay just under 50% of their cash net profit. again, you can argue whether or not they do want to be doing that. there is a very, very good reason to say no. deferments from covid issues have declined but they are still a significant at $8.79 million. for, are in high gear still most companies beat those instruments -- estimates. what are we expecting? >> that is why the u.s. has always had a beautiful price but when it comes to earnings. australia is really pessimistic but what has been surprising is

places like discretionary's spending are already going better. world is at home and spending on things they ordinarily wouldn't. and if you look at across the board, you will find insurance areas make up a significant part. fairlylikely to have a disappointing earnings season going forward. what about it being continuele will people to spend at this pace? >> the state that i am in is in and aboutur lockdown a quarter of gdp is here and they are to really show signs it is causing an uptick.

we also have an employment rate expected around 10% at the start it -- year on unemployment rate expected at around 10%. we were expecting things to get better and better and i don't think the current spending trend we thought the start of the are wesustained and it's likely will actually see a confidence hit in australia. >> it's been great having you with us. some big banking interviews coming up on bloomberg tv. the bank of singapore ceo and standard chartered ceo will be on bloomberg markets later today. get a quick check of the latest headlines. softbank is buying stocks in publicly traded companies targeting investments of more than $10 billion it reported net income after 14 billion lost for the previous quarter.

the new asset management firm aims to follow in the tradition of masayoshi son's vision fund. airbnb's much anticipated ipo is ever closer with reports the home scherer fire paperwork -- hareer will foul paperwork later this month. airbnb has been hit hard by the pandemic and was recently valued at $18 billion, down from an earlier 31 million. the chinese online video platform is the latest company said to be considering a secondary listing in hong kong. it is reported to be an early stage talks with credit suisse about the group, though no timeline had been agreed. seconde owned by baidu they had reported recently that

tencent is eyeing a stake in the company. tencent stock surging after hours after the company announced it is splitting its elevated shares in a five-one exchange to make the stock less expensive. there the world's largest automaker by market cap and each shareholder will get for additional shares of common stock on august 20 forced -- 21st. they will move to an adjusted basis 10 days later. the next hour, one of australia's largest investment funds will talk to us. we hear from the cio john pierce on tech stocks in particular. checking on the markets as we start trading in new zealand where we are seeing trading underway. is a lot for the central bank to think about as auckland goes back into renewed lockdown.

of -- seeing a swing staying a positive territory when it comes to u.s. futures on the back of the kamala harris cp pick. this is bloomberg. ♪ experience the ultimate sports hub.

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he scores! stanley cup champions! touchdown! only mahomes. the big events are back and xfinity is your home for the return of live sports. haidi: a very good morning. i am haidi stroud-watts in sydney. shery: i am shery ahn in new york. welcome to "daybreak asia." joe biden picks his running mate for november. kamala harris challenged him at the democratic primaries and brands herself as a progressive prosecutor. commonwealth bank is a stock to watch as cash profit comes in