haidi: very good morning. i am haidi stroud-watts in sydney. we are counting down to asia's major market opens. shery: asian markets faced an uncertain end to the week after wall street pulled back from a record. investors are concerned about the virus relief impact in washington. chinese internet stocks remain in focus, son after the close in new york. i.b. faces advertising challenges.

low rates make borrowing almost irresistible even for those with cash in hand. apple is heading back into the bond markets with a $5 billion offering. haidi: let's get you started when it comes to this trading session on friday here in asia, looking at a mixed and muted start as u.s. stocks pulled back from the cusp of a record high as uncertainty continues to prevail when it comes to stimulus talks as well as a question mark over the success on whether the china-u.s. trade talks will go ahead given the unraveling of that bilateral relationship. a bit of positivity when it comes to the contract, up by just a doubt .2%. positivity when it comes to the start of trading in tokyo. a new report saying that it will take four years for the japanese economy to start to make up lost ground after the impact of the

pandemic shutdowns and the impact of the slow down globally. we are seeing weakness when it comes to trading in sydney. big earnings. a little bit better for the miners. thanlying earnings better expected, but watching out for the banks. reporting disappointing numbers, the trading update as well as the ceo flagging further challenges, particularly looking for details around that loan loss provision issue. kiwi stocks up by .1% as they continue to contend with that resurgence of virus cases there. let's switch it out to take a look at currencies because we have the aussie dollar focus as the risk proxy that will deliver us the latest indication of how the chinese recovery is going. domestic activity numbers. we are expecting that to continue to show resilience. is50 one is where the body trading, also watching ust -- aussie's where the

trading. just a word on oil, set to rise almost 3% this week. there are signs that that glut will use, demand will slowly return, and we have futures up a little bit as well. shery: a focus right now on potential u.s. and china trade discussions in the coming days with beijing pushing to white in the agenda to include president trump's crackdown on tiktok and wechat. state street global macro strategist emily wise will be watching that closely. he joins us from boston. great having you with us. play the potential trade talks in the markets? definitely be a reoccurring issue for the rest of the year. we are coming up on the six-month review of the u.s.-china phase i trade deal. tensions have only expanded. we are looking at tariffs, tax,

human rights, national security, a lot more areas where these issues seem to be a rising, and notably, beijing is falling short some of their purchases of u.s. goods so this review potentially could be another fracture point. that being said, we have seen chinese assets. there's been a lot of stability lately. the rebound we have seen in chinese economic data is certainly supporting stock. from the currency side, a preference for stability has helped sort of keep the currency right below that seven level. we look at areas that could be impacted by the trade talks. two areas that come to mind are areas that are highly exposed to china and also that are highly integrated in the global supply chain. taiwan and korea standing out as to countries that fit that description. shery: we have seen global assets also being sustained by the various measures of fiscal stimulus packages around the

world. that me take you to our question of the day from mliv, asking what matters most, china tops or u.s. stimulus? -- talks or u.s. stimulus? emily: u.s. fiscal stimulus, mostly because it still seems like both sides are quite fire part -- far apart. so far, we have not seen too much of a reaction to this. they are approaching an all-time high. we have seen falling initial jobless claims, but continuing claims are elevated. there is still the potential that we certainly are not through this virus, so the additional support fiscal stimulus provides will be crucial to keeping the u.s. economy going. the good news on the u.s.-china trade talks is that neither side seems to want to truly upset the apple cart on that front. even though rhetoric is increasing, still, seems like there is an effort to be made to negotiate some sort of agreement.

emily, what does a biden-harris administration do for the markets? emily: it is certainly something i think markets are starting to pay a lot more attention to as we are a few months away from the u.s. election. that from past elections, a lot can happen ahead of that date so there is still a lot of time for change. to market is trying interpret that data. certainly, the economy will be a really strong point to consider if we move forward. that is traditionally one of the areas that determined the presidential election, how well the economy is performing. we are seeing improvement, particularly on the jobless numbers, but at the same time, that is coming from a massive drawdown that we are suffering with this year. whether that recovery continues to be crucial for how this administration looks in every election campaign -- one of youridi:

preferences was south korea. do you still look upon that market favorably? emily: at this point, we mentioned south korea two months ago. at this point, we are looking to look at these valuation levels and see things be a bit more stretched and looking at south korea as potentially an area that factors into global supply chains and it is highly couldted with china and end up in the fray of that so certainly, those are things we are reconsidering as the situation evolves. haidi: emily, always a pleasure having you on with us. state street global macro strategist there. still ahead, more u.s. scrutiny of chinese tech firms on the way. under investigation from the fcc. plus, facebook is beating its anti-misinformation efforts ahead of the election.

the head of cyber security policy joins us later this this hour. is bloomberg. ♪

karina: you are watching "daybreak asia." i am karina mitchell. global deaths from the coronavirus have passed 750,000 with almost a quarter of those in the united states. worldwide infections are approaching 21 million. democratic presidential candidate joe biden is calling for a nationwide mandate on masks, saying everyone should wear them for the next three months. he and kamala harris were making their first joint appearance in delaware. meanwhile, the u.k. is tightening its coronavirus quarantine, adding france and the netherlands to its 14 day isolation list. the government is now advising against all but essential travel including countries

others. france had been on the you k's initial virus travel corridor list, but infections are on the rise. hong kong democracy activist jimmy lai is warning supporters to be careful in their demands for more freedom as he held an online discussion following his release on bail area the media tycoon has been detained twice this year over his opposition to china's increasing control of hong kong. president trump said the news raid to -- newsroom raid to arrest him was a terrible thing. the general founder and chairman down withwill sit stephen engle later on bloomberg 9:10. radio at don't miss part two of our series, hong kong on edge, a larger look at how beijing's national security law is changing the business and political lands in the city. global news, 24 hours a day, on air and on bloomberg quicktake, powered by more than 2700 journalists and analysts in more than 120 countries. i am karina mitchell. this is bloomberg.

haidi. in the chinese netflix style streaming service tumbled in extended trading after the company disclosed its under investigation by the u.s. securities and exchange commission. tom mackenzie joins us now from beijing with all the latest. what we know about the details of what is going on here? tom: we saw the shares fall. they fell on the back of this news. the company says they are cooperating with the securities and exchange commission, who have requested access to financial reports and operating reports dating back to january of 2018. this probe follows a piece of back in published by -- april of this year in coordination with short-sellers muddy waters, alleging that they userhe company overstated

numbers and revenue streams. we spoke to dan davis around that time. take a listen to what he had to say about the issues they alleged were taking place. of myyou look at some allocations, they are very straightforward and very easy to vet and if there is a truly independent investigation here, the downside is unlimited. now, they denied those allegations at the time and they say, again, that they are cooperating with the fcc at this time, but broadly, the context is the chinese tech companies are under ever greater scrutiny and this adds to that in the u.s. a shadowd this cast over baidu's earnings? they are a big backer. tom: a major backer. otherwise, this would have been a good day for baidu. their earnings were better than expected. they posted a drop in sales of just 1%, far less than many

analysts had expected. they are a major backer so we saw their shares selloff as well on the back of this. and it comes to baidu's earnings for the most recent quarter, they did see an uptick in advertising as the economy repairs following the pandemic so they are benefiting from that. they say they will continue investing 30 heavily and things like artificial intelligence. they see that as a crucial area for future growth. they see increased competition from everyone like by danse, everyone like tencent and others. it has not been an easy few years for i do. they are seeing an uptick in advertising sales so that is proving positive. they also faced some geopolitical whiplash through the china-india clash. that is another challenge for them. they are investing for the long term. howard tom mackenzie, our markets coanchor with the latest

from beijing. we have breaking news at the moment. --are getting north korea's korean central news agency citing kim jong-un as saying in a political meeting that they have replaced their premier. they have also lifted their lockdown. of course, they implemented a lock down because of virus cases there. north korea saying through the news that the virus prevention has been managed safely and they will not allow external -- they had suffered from floods but they will not allow external support. we will have plenty more to, on "daybreak asia -- more to calm on -- come on "daybreak asia." this is bloomberg. ♪

haidi: let's get you a quick check of the latest business flash headlines this hour.

apple is taking advantage of cheap borrowing costs. it is joining other tech companies and tapping the investment-grade markets, aiming to raise more than $5 billion. apple is selling bonds in four parts with a 40 year security yielding 118 basis points above treasuries. big tech has weathered the coronavirus storm. epic games is suing apple after it removed a wildly popular fortnite game from the app store in a case set to test anticompetition laws. apple takes 30% cut of any revenue in its inapt payments, similar to google, and claims epic rokita wills -- broke the rules. epic recently criticized the tech giant of running a duopoly. huawei and zte are said to be frozen out of india's 5g rollout as new delhi-beijing relations sink towards a four decade low. the government will apply new from nationsles

that share borders with india. the decision follows similar moves by the u.s., the u.k., and australia. they say chinese tech companies are a threat. shery: new claim tron employment benefits fell below one million in the u.s. for the first time since coronavirus lockdowns hit the economy in march had whether they meet for congress's stimulus stalemate, kathleen hays is here with the numbers. what do the numbers tell us about the urgency of getting more virus relief money? kathleen: jobless claims fell. they were better than expected but if you look at the numbers, not even that closely, it's pretty clear that there's plenty of room, if not need, for more fiscal stimulus. look at the numbers with me to see what i mean. jobless claims, that is the white bars. the blue bars are continuing claims, people out of work for more than four weeks. they are always higher than

jobless claims. at the very far-right, what you that side is jobless claims fell below one million for the first time since early march, when lockdown started, when the virus was firing up in the u.s., 930 6000, so that was definitely progress. you can go back and compare that to the peaks in early march, see how high the white bars got, and if you look at the blue bars, they are still pretty high. the latest month was over 15 million. if you go to that tallest bar, that was 24 million people who have been out of work for four weeks. definitely, there is some progress. that is good. the fact that coronavirus has been coming down in many parts of the country. there's some resurgence is, but progress has been made. there's been reopening so we are probably getting more jobs out of that. payrolls are higher than expected in july at 1.7 5 million. another plus, another reason to say things are better, but unemployment in july, 10.2%,

pretty much equal to the peak in the great recession. that shows deep distress in the u.s. economy. the idea that congress will say jobless claims got a little bit better, not so much pressure, seems kind of odd. sayingnt raphael bostic it has been so much fiscal relief to help the economy. he is really looking for more, like every other fed official we have heard from these days. the meantime, the stimulus stalemate continues. kathleen: it certainly does, and congress continues to stalemate. mitch mcconnell, the senate majority leader, saying today that they are going on reese's for a month -- recess for a month unless a stimulus deal is reached and members will be standing by on a 20 four hour notice. republicans and democrats are very far apart on the size of the package. one trillion for the gop. 3.5 trillion for the democrats. nancy pelosi said she would come back to the table if the democrats would get to 2 trillion but she does not see it

happening. let's look to what she said. >> perhaps you mistook them for someone who gave a damn. this is not the case. this is very far apart and unless you see the reality of what it means in the lives of the american people, what good is it for us to agree to something that has no relationship to meeting the needs of the american people? kathleen: does she sound like the speaker of the house who is on the side of waiting for what we get? and we know the republicans are dug in on the other side. the message from the economy continues to be -- there's a lot of unemployed people in the country. that recovery is not expected to come that fast, haidi. that is where i think the ultimate pressure will come from. we will see how long the two sides take to finally get there. kathleen hays, our global economics and policy editor. joe biden and his running mate

will accept the nominations at the democratic national convention next week. they vowed to lead the u.s. out of the coronavirus crisis while attacking president trump's response. ther efron is one of earliest and largest financial backers to harris's presidential campaign and we asked what a biting-harris administrative -- biden-harris administration would look like. , harris has great leadership qualities. the biggest attorneys general's office in california. she has great personal qualities, compassion, great judgment. i think she is really good at taking a lot of information, emphasizing it, and coming up with a perspective. she is direct, transparent. is -- moment that we need. obviously very focused on working americans, very focused

on helping those most in need, particularly those hurt by the virus. half of america has a family member impacted by this. she focused on what the 21st century should look like when it comes to something like clean energy. i think she will make the case very effectively, frankly. >> what does an economy look like hunter biden and harris -- under biden and harris look like? seems to be somewhere that draws a bit of doubt. what would an economy with those two in charge look like? blair: an economy under a biting-harris administer -- biden-harris administration look like prosperity, investment in 21st century infrastructure, broadband, upgrading transportation infrastructure, schools, investment in clean energy, as part of that, biden would think about how to create

one million jobs in the auto industry. his plan is that $5 trillion of to creates earmarked 18 million jobs or so. it is important to also wellnize that democrats do for the economy. if you look at the democratic , better stock market, more jobs, just as the stock market indicator during the years of obama, his first term. the market was up 44%. i do think it is an outdated myth that democrats do not do well for the economy. >> you yourself will be going to d.c. for any potential biden-harris administration to help in pushing the country forward? >> the answer is no. >> doing what you do now, you

talk to some of the biggest leaders in the business world. aside from the politics and the stuff to deliver, what are business leaders thinking about in terms of what they can do to help get their companies back on track? blair: first of all, i think business leaders have been incredibly impressive leading their companies during this period. they have shown great concern in welfare not just for their employees but for the communities in which they operate. made important financial commitments, for example. in terms of how they run their companies, the best ceo's are using the moment to say the world is obviously being disrupted. what does it take to be a winner in that disruption four years from now? what does the supply chain look like, what does distribution look like, what does real estate

look like? companies are learning how to operate very quickly in a new environment. frankly, staff is intrigued with what we will asean the other side and we will have a group of companies that for the most part , down the road, are going to look, frankly, even stronger than they looked before the crisis. go hyper-local for the last question. i know you don't have any plans to ipo. it is very hot right now. would you consider selling back if it has shown up? blair: no. very simple, this moment has proven being private, giving our colleagues a great opportunity to be meant toward and to learn, probably the right way for us to run the business, so we are very happy doing it. shery: that was blair efrin. do not miss our coverage of the dnc next week. special,imulcast the

starting monday, at 10:00 p.m. in new york, 10:00 a.m. in hong kong. coming up next, we will discuss with facebook the fight against misinformation. this is bloomberg. ♪ businesses are starting to bounce back.

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transfer your service online in a few easy steps. now that's simple, easy, awesome. transfer your service in minutes, making moving with xfinity a breeze. visit xfinity.com/moving today. shery: this is "daybreak asia." a check now with the first word headlines. china wants the u.s. to stop what it calls discriminatory ventures as the two sides prepared to discuss progress on the phase one trade deal. arert lighthizer and liu he expecting to hold virtual talks at the weekend with asian wanting to add president trump attacks on wechat and tiktok to the agenda. the countries are at odds over trade, human rights, and hong kong. tensions are set to rise in the gulf with the u.s. claiming iran has stopped and boarded a ship in international waters. the pentagon says revolutionary guard forces briefly seized a

liberian oil tanker earlier in the strait of hormuz and would need video to backup their reports. washington offered no motive. tehran has so far made no comment. palestinian leaders are said to be rejecting u.s. claims that israel and the uae are close to a diplomatic deal. the white house says it would be a historic breakthrough with an exchange of industries and more direct commercial relations. the u.s. said israel has agreed to declare sovereignty over parts of the west bank. al jazeera reports the palestinians rejected such a deal. lawmakers in lebanon met for the first time since the devastating explosion that destroyed parts tobeirut, leaving judges question finance and public works officials over the storage of hazardous chemicals amid reports and safety warnings were ignored for years. 170 people died and thousands were wounded.

lebanon is mired in its fourth economic and political crisis in decades. as we approach the u.s. election, misinformation continues to be a major concern. facebook is launching a new data hub to keep places up to speed. on this withe bloomberg technology's emily chang. emily. emily: thank you. joining me now is nathaniel, facebook head of security policy, who has been working on this new information center. thank you so much for joining us. you have been doing a number of different security operations, if you will, gaming out what happens on election night. if we do not have results right away, that very well could be the case. what does that look like and how does facebook handle misinformation in the hours immediately following the closing -- polls closing? nathaniel: it looks more and

more likely will not have results on election night. we have to think about this period of uncertainty as more voters are voting vote by mail and the states are counting those ballots. how do we ensure this accurate information for voters and that we have all the protections in place to defend against any kind of influence operation or disinformation campaign? the voting information centers we are launching today are intended to do exactly this. in the lead up to the election, they are going to provide accurate current information on when or how to vote, how to register to vote, how to check to make sure you are registered, how to request vote by mail or absentee ballots, and up-to-date information on how systems might change due to coronavirus, but on election night and during that period of uncertainty, we will use the same system to provide information to users about how the vote is happening,

what the account is, how the count is proceeding, what we should expect, and importantly, what the process is. one of the things we have seen over and over again -- my bread and butter are security trends. foreign actors, domestic actors, trying to manipulate public debate. that type of thing is most effective when people are uncertain, when you do not know what the truth is, so showing people right at the top of their news feed on posts that reference voting, here is what to expect. here is how the process is working, and it is working as it should, giving that kind of reassurance can help to inoculate public debate against the influence operations. emily: i spoke with sheryl sandberg yesterday, who talked about the rise in misinformation and hate speech that you are taking off the platform. what about the critics who say the real way to safeguard the election is to take down more misinformation, specifically posts by the president of the united states about things like

mail and votes that are misleading and blatantly untrue? nathaniel: when an elected official is making claims about voting, it is important that the public can see those claims. to be honest, particularly now, as the elections are ticking up, understanding with the president and others are saying about voting is going to factor into who they vote for. at the same time, you need people to have accurate information from the experts about what the truth about voting is. the voting information center is designed to strike exactly that balance, to make sure if someone sees an elected official or any prominent figure making a claim about how reliable it is, it will also see analysis from bipartisan election experts on how the process works, what the components of it are, what they should expect, and what safeguards are built into it. we take the kind of content-based work, and just so

it is clear, this is only one piece of the puzzle. we also are continually tracking for deceptive behavior that is any actor here in the u.s. or overseas using fake accounts to mislead people about who they are and the purpose of what they are doing on facebook. the russians did this in 2016, and we are seeing -- please. arey: and i know you working to prevent what happened with russia in 2016. a network of fake chinese accounts have been posting videos bashing president trump has tensions between the u.s. and china have ratcheted up. how concerned are you about a rising china threat given the vast technological resources of china leading into this election, china specifically? aily: we -- nathaniel: we see whole range of threat actors engaging in these techniques. we have done takedowns involving russia and iran and we have started labeling day controlled media into the united

states, including state controlled media from china, including some of this activity. the network you are referring to is a network that has been called spam dragon that has been writing about it. what is interesting is this network is active across a whole range of platforms. the majority of their activity has been on twitter and youtube. we have seen limited activity on facebook. last year, we removed a spam network. not terribly sophisticated. sharing means and other types of information linked to this network. recently, we saw some of the people behind that trying to come back and we stopped them and took them down again. it is interesting to note these operations happen across all social media platforms and target traditional media and sometimes, what you see on one platform is different from what you see in another. we see more deceptive activity from russian and iranian actors but that does not mean chinese actors are not also aggressive and it is something teens are

watching for very carefully. emily: the bad actors, we talked about this, are always one step ahead, and more and more of this activity is coming from domestic actors. how big a threat is domestic misinformation and how can you really get a handle on it when the threat -- bad actors are always, again, one step ahead? nathaniel: more than half of the major takedowns that we do -- we conduct investigations into these networks. whenever we find one, we announce it publicly. we share information with independent researchers. more than half of those investigations have been about domestic actors. last month, we took down nine networks from around the world including a number of domestic actors, some operating right here in the u.s. because those investigations are focused on behavior, are they using fake accounts, misleading people about who is behind them? how are they deceiving people in their activity, as opposed to

content? does not matter if they are foreign or domestic. you are also asking how we stay ahead. this behavioral point is important again. over the past two years, we have seen threat actors take a number of steps to try and hide from the teams that are hunting for them. teams at facebook, twitter, google, teams within the u.s. government, and independent researchers, all of whom are working together to tackle this challenge. what is interesting is we have seen them do things like change their content. there was an operation last year that used artificially intelligent -- that used images generated with machine learning to make their accounts look more real. that is a content changed at is, their behavior still tips us off. emily: nathaniel, -- nathaniel: the defenders are getting better faster. emily: one last question, speaking of domestic actors. nbc has reported you have

millions of followers of right wing conspiracy groups like qanon. why haven't you banned them? why haven't you taken them down? nathaniel: that is exactly why the security challenge around public debate is so hard. i think we should level set. we have 3 billion people on the platform around the world. they make billions of posts every day. qanon is a tiny fraction of that. but it is good to focus on them because they are pushing the boundaries around what freedom of expression should prevent and they are causing harm. what they are doing here is a couple of things. we take aggressive action against keweenaw groups when they cross our threshold. we removed a group just this week for violating our content policies for qanon and my team, which focuses on deceptive behavior, has removed two separate networks that had some links to q1 on and were sharing q and on information. information.

if you drive these actors too far underground, you can end up actually sort of ray a fying their beliefs. we have to stop this type of behavior but also ensure the type of debate happening on the platform till happens and is still robust enough. emily: interesting. nathaniel gleicher, facebook's head of security policy, thank you so much for joining us. chang thanks to emily with us. very important conversation ahead of the u.s. elections. coming up next, we will look at racial disparity in the coronavirus pandemic and ask why minority communities are being hit harder. this is bloomberg. ♪

shery: the global push to develop coronavirus vaccines is accelerating, with russia clearing the world's first shot for widespread use even before clinical trial speared more than 160 other immunizations are still under development around the world. novartis's ceo told us how far away we are from a treatment. of gray,this as shades as you look at the vaccine. we will likely have a vaccine that is viable. sometime before the, let's call it, mid next year.

could be the end of next year -- end of this year. it might not have the full safety data, will not be fully characterized and will not have large-scale manufacturing capacity. with 70 vaccines in development, by the end of next year, we will be able to solve many of those constraints and have a vaccine we are confident in, safe, large-scale manufacturing, which can be used in large appellations paid what that means in practice is we are going to have to make some difficult calls in the coming months. what is efficacious enough, what is safe enough, and then with limited supplies, who will really need the vaccine most urgently in the near term, so there is a complex discussion we will need to have with the public policy community in the coming months. >> is there a danger we are developing a vaccine without fully developing the virus so it is difficult to track and see how it mutates? who to vaccinate first given we what people fight it

with t cells and others with antibodies? >> we are certainly moving at breakneck speed so there are many open questions are typically, the experience has been to develop a novel vaccine takes about 10 years. and it takes that long because we want to deeply characterize the vaccine, understand many different patient populations, then go to large-scale phase 3 studies and follow these patients for a year. in this instance, we are completely skipping phase two and going directly into large-scale studies without understanding a lot about the biology of the virus. i think given the scale of the pandemic, i understand why that is being done but i think it is really important that we support global regulatory agencies to really have rigorous standards. the worst thing would be that we roll out a vaccine to fast, we lose public trust for a future vaccine for covid, and then

perhaps even more importantly, we lose the broader public trust on vaccines in general which have saved billions of lives over the last century. develop theu helped h1n1 vaccine which only took six months. is that because we had a different basis for that? vas: when you go back in time, with influenza pandemics, we built up so much know-how, we have manufacturing facilities, we have technologies, we deeply understand. in a sense, what we do with pandemic influenza is we have the architecture all set up and we change the cassette of the virus. we can know pretty well that we will generate a strong protective immune response. we are pretty much doing everything new. platforms are new, the technology platforms are new. the virus is new. the human population has never seen this kind of virus before wares with influenza, we have influenza every year. there's a lot more complexity with this particular vaccine

development. did not really succeed in developing a vaccine for the first sars outbreak in 2000 or mers, which happened a few years ago, and only partially with respect to ebola. we have to be humble with respect to figuring out is a vaccine really safe or effective? >> that was the novartis ceo, vas narasimhan. staying on the virus, for this week's been pretty quality segment, how the virus is highlighting major issues in the field of medicine. as you can see from this chart, the virus has not been hitting equally as minorities have been proportionally harder hit in terms of fatalities and infection speared our next guest says it has seemingly doubled down on every existing inequality. ae cofounder of equity -- consulting firm that works to build gender equity and diversity. wonderful to have you with us, and of course, just to

reiterate, we said earlier about this pandemic, really shedding light on the disparity. you talk about income and economic impact, the health-care care impact, or the impact on working women and women at home. what in particular is standing out to you in your field? >> thank you for having me on. i really appreciate it. if people could just shine online on this -- shine a light on this. how vast theok at inequalities are. huge differences for black americans, the indigenous population, hispanic americans, specific islanders, many multitudes higher risk for severe disease, hospitalization, and death, and that is because every way that you become more isnerable to the disease, it who has essential workforce roles, who cannot afford to take timeout because they have no, you know, they have no reserves of cash, a single parent who is

living in a multigenerational, more crowded home. the spread is easier. every element we have that increases risk and keeps you on the front lines is exacerbated because of the inequalities here. done? what can be dr. choo: i mean, i think we really need to pay attention to how resources are allocated. so far, when you think of every two will we have against the coronavirus, whether it is testing or personal protective equipment or social distancing or medications that are showing some early efficacy, we have not been distributing them to communities of need, so there is a mismatch between where disease is happening and really ravaging communities and where we are putting our best resources. of our mostut one important resources, this upcoming vaccine, we need to be

really aggressive right now about making a plan to get it to our communities of color so that we can start to even out some of these inequities. moving forward, we really need to question why health access and health disparities are so grave in the united states and around the world that we have huge, vulnerable populations when there is a crisis like a pandemic. shery: let's talk about the health industry itself. what is the level of diversity and equality that you are seeing in the industry? thathoo: this is something we struggle with across health care. gettingoving towards better representation at the point of schools. reallyove forward, we lose representation in the workforce and we have a terrible lack of representation in our leadership across health care. you can just pull up the website of any large health care

organization and your pre-much only see white men. we know diversity is directly related to health outcomes so it is not good for us. it is not the kind of culture we want to have. it is not the kind of culture we want to welcome patients two. it is directly related to health outcomes and equity. shery: expand on that thought. how does diversity affect health outcomes, treatment, patient outcomes? of choo: there's a lot literature showing if you have a more diverse health care workforce, including more women in lead physician roles and having racial and ethnic diversity as well, patients do measurably better in outcomes, including things like cardiovascular morbidity and even death. survival improves when you have a more diverse workforce oath in terms of gender and rac racial and ethnic diversity. it has a lot to do with our

bottom line and health care improving patient care. shery: dr. esther choo, thank you very much, equity quotient cofounder. plenty more to come on "daybreak asia." this is bloomberg. ♪

haidi: google has joined apple in pulling the popular game fortnite from its app store after the games creator, epic, gave its users a way to make direct purchases and circumvent app store fees of around 30%.

epic is suing after criticizing the tech giants of running a duopoly. let's get more details from mark gurman. the comes at a time when u.s. is looking into these antitrust complaints. who is likely to win? mark: that is an interesting question. epic makes a good argument. they are basically enforcing the same rules they typically enforced on everyone, but epic really makes a good point here that apple does not allow any reliable app stores on the iphone and when you use apple store you have to give that 15% to 30% cut. right, so what do we see as being the outcome of any kind of legal challenge here? mark: it is unlikely a think looking from the get go that epic is going to win. monetarynot asking for damages, not asking for an

exception. they are asking for apple to change its rules for everybody and that would be a lawsuit. shery: does that mean we will see more apps joining in this fight as well, really not wanting to pay, trying to circumvent those fees? mark: i don't think so. i think we would have seen developers who were putting up this fight. epic games has been talking about this for months already if not years. spotify has chimed in complaining, too. not a whole lot to lose. most developers, if they get kicked out of the app store, they are basically stuck. business, aas a big very big business. you can be playing on the web and other platforms. there is really not a ton at stake compared to other developers who might want to sue apple. mark gurman in san francisco.

that tussle between google, apple, as well as epic games, and fortnite. we are hearing from the reserve bank of australia governor, phil lowe, who is delivering his testimony this morning. phil lowe saying he sees june quarter gdp likely to have contracted around 7% as we see melbourne under strict lockdown. the labor market outcomes have not been as bad as expected as we had a pretty good jobs number this week as well. also saying there is a high degree of uncertainty around the outlook and a bumpy recovery should be expected and recovery could be more drawn out than expected, saying the rba will not raise the cash rate until he sees progress on cpi as well as the labor market. coming up on "daybreak asia," more perspective on the-china relations. plus, a major -- u.s.-china relations. for anai joins us

in-depth, sit down conversation after his arrest this week. not miss out on part two of our series, hong kong on edge, this weekend. a larger look at how beijing's national security law is changing the landscape. this is bloomberg. ♪

welcome to daybreak: asia. i am shery ahn. asia's major markets have opened for trade. our top stories this hour, asian markets face an uncertain and to the week. investors are concerned about the virus. chinese internet stocks remain in focus. something after the close in new york. they deface advertising challenges while i.t. is under

investigation by the sec. tech trade, human rights watch hong kong will be on the agenda when the u.s. and china review their phase i deal. beijing wants to address reaching out on tiktok. a mixed friday session looking likely after the regional index managed to raise 2020 losses. goldman sees the rebound extending for stocks outside of japan. we are seeing the nikkei 225 at about a third of 1%. that rounds out a shortened week higher. for a secondaded straight week of losses. you have the currency around that 107 level. turning to saul after a nine-day gang -- seoul after a nine day gain. we have august options expiring in south korea.

chipmaker has -- this shoemaker says that the outlook is worsening. we have new quest among the highlights. that rally in gold prices has helped lift prices. they do expect low output signal production headwinds. we are seeing it trade above 1955. the markets are digesting governor low's testimony. he also spoke of the cash rate remaining at 25 basis points. activity,hina monthly offshore yuan trading around six. pulling up the terminal, wargames could be ahead with the

strongest technical signals in place since 2012. the dollar has formed a true death cross. the greenback is set for a fifth month of losses. does remainuan liable for tension. more chinese corporations are in the crosshairs. >> let's get more on the market action with mark. let me start with the point on that. we have seen the weakness in the u.s. dollar. a little bit of a bump this week. still, a week that is in a long trend when you look at the greenback. given the tensions between the u.s. and china, will the yuan be able to benefit from the fundamental support? >> sophie has a nice chart there. we have been talking about similar things as well.

we recommend this area is as far as the yuan would go. over the next few months, it could well be that the -- that china becomes a verbal target for tax from the united states. that will keep you will never's about being too positive on chinese assets, including here. the downward trend has been fairly clear since late may. but we don't think too much below 690 is on the cards in the near term. it might not need to much for the dollar you want to be pushed other higher. these talks on the phase i deal, the review of that does not go too well. pop a littlee yuan higher. the picture will be choppy will largely sideways. we don't expect a major move for

the yuan in either direction until we know the outcome of the election. china would likely maintain a fairly stable yuan. this could give them a much clearer picture on the direction. that is how the u.s. and china are going on their overall relation. possibly a little more downside in the short-term. not a great deal. more likely to be choppy training for the next few weeks. >> what about the consequences for treasury yields? we have had everyone from the city starting to express some caution over the rally that we have seen. have we seen the lows when it comes to this? >> it depends on how the federal reserve comes out and talks about it. i suspect that we are getting excited because for several weeks, treasuries have been a nonstory. it has been unusually quiet in

the treasury market. suddenly in the past few days, partly because of the large auction process this week, treasuries have become more interesting. the 10 year yield is about 7.1%. that is very low. the u.s. fed would be out and talking yields down. it is very much against their interests. for -- expect speakers for the fed to come out and talk about low yields for a long time if this were to take -- if treasuries were to take a little bit lower. bonds down, yields up is a short-term story. it does not go too far for now. on the bigger picture, if inflation starts to pick up, that is a whole new ballgame. treasuries have become much more

exciting. so much islington tour toward the auction process. days for thea few treasury market to digest all of that. you can follow along on that story. all of the day's trading action with markets long. ahead on daybreak asia, the business perspective on u.s., china relations. they will preview the next coming data. she sees no slow into the rebound. this is bloomberg. ♪

>> you are watching daybreak asia. i am karina mitchell with the

first word headlines. level deaths from the coronavirus have passed 750 thousand with almost a quarter of those in the united states. worldwide infections are approaching 21 million. joe biden is calling for a nationwide mandate on masks, saying everyone should wear them for the next three months. he and kamala harris are making their first joint appearance in delaware. mitch mcconnell says there will be no more senate votes for a month as the center winds on. members will be on 24 hour case a dealse -- in is reached. each side has refused to budge. president trump says he will the sale any of the funding for the u.s. postal service. the u.k. is tightening its coronavirus quarantine, adding france and the netherlands to its 14 day quarantine list.

france had been on the initial virus travel list but infections on the rise. lai held an- jimmy online discussion following his release on bail. he has been detained twice this year over his opposition to china's increasing control of hong kong. jimmy lai will sit down with stephen engle. at 10:00 past 9:00. this national security law is changing the business and political landscape in the city. day onnews, 24 hours a air and on bloomberg quicktake, powered by 2700 journalists and

analysts. i am karina mitchell, this is bloomberg. industriala's activity accelerated for a fourth straight month. , external demand, investment at home remains strong. great to have you with us. let me start off by rep -- recognizing this bloomberg chart. we have seen the ip recover pretty strongly. retail sales have been dragging a little bit. >> you can see the recovery of china's activity.

on the back of continued recovery is fiscal. this leaves about 70% of it. supportive.be quite that is over 18% in the first quarter. tell me what that means in terms of what to expect from the pboc. we have had a bit of a puzzling development. it looks that the pboc may be buying of government bonds from the mystic banks.

we don't intend to undertake that kind of qe that we see at other central banks around the world. becky: it is in the month of july. the other category includes the number of special entities, excluding the policy bank defender. they have been purchasing this in the secondary market. they are allowed to buy them from the secondary market. way to do a smaller it.

such activities are not new. pbocin the old days, when bond, specialcial bonds were indirectly purchased by the pboc. most were issued by a private firm. the special bonds were all issued by public option. the pboc could be potentially buying some of them from the secondary market but if they are under 20% based on the number we are seeing for the moment, we view it as anything but reflecting the policy. >> when it comes to the broader markets, how much of a demand are you seeing from foreign investors on the onshore bond market? we have seen a record increase into china bonds.

we have market volatility through the year. also, the huge underperformance. on the back of controlling increasingly is more bullish expectations on this year. that is because of the interest rate premium. >> just quickly, let's turn to the china and u.s. negotiations that could come in the next few days. we have seen increased pressure on chinese companies through u.s. measures, whether it is export controls and other actions. a practical impact will this have on the chinese economy if these measures are

further increased? >> almost on a daily basis, there are new areas of conflict. at this stage, these new measures have relatively limited economic impact. this should be taken. it is definitely rising. we are not looking for any substantial news of the breakdown of the phase one trade deal.

these are discussions regarding tiktok and we chat. in general, we are still looking pace by the chinese authorities. at the same time, a celebration of the market opening. >> always great having your thoughts. the head of market strategy and standard chartered. you will have more on the china relations ahead. william joins us later this hour. raising concern about the virus possibility to linger and reappear in people previously infected. we asked john hopkins university about the risk of virus reactivation.

>> first and foremost, while i am not familiar with the specific cases, there are a couple of issues here. that has had 3.5 months of positive diagnostic testing. fortunately, no negative test results in that time. we do believe this person has been continually positive for covid-19. the two patients in china, it would be important to note whether or not they had negative test or remained positive throughout the entire duration. >> is there any insight? ?o we have the data how difficult is it to get the raw data to understand what we are dealing with? >> a couple of challenges here. the reason we are testing

this patient multiple times, they are in very high risk. in the general population, we don't retest people. the cdc even came out with recommendations that say don't test people within the next 90 days. i think there will be a couple of opportunities to explore this question. people going through vaccine trials will likely had multiple repeat tests. people going through immunologic studies -- all of these, particularly the vaccine will be intervention studies. this will be the study of what is happening on the immune system level. >> what does that mean for potential vaccine? >> if you think about what is happening right now, one of the

adenovirusnes is the vaccine. we have all been exposed previously. the russia example has not gone into clinical trial and it is really important. importantly, at a vaccine level, in that circumstance, if people begin to develop antibodies, it could have an influence on whether or not vaccine campaigns work globally. that will be the first data point about what vaccines may look like with certain forms of underlying vector but there is

an act same with a different form. we really need to provide this type of data as quickly as possible so we can understand about the potential of their exit into -- potential of their efficacy. >> that was jason farley there. out on some other big interviews later on today. we will be hearing from the ocbc boss and plus, deutsche bank's karen han joins us. this is bloomberg. ♪

>> softbank is injecting more than a billion dollars in two we work to help it whether the coronavirus. the money will boost to the

funds to just -- softbank is injecting more than a billion dollars into wework to help it weather the coronavirus. the money will boost their funds. largest ai company is considering a dual listing on the mainland and in hong kong as it closes on $1.5 million of financing. than am for more valuation of $8 billion since the listing plans have been hit by u.s. blacklisting. uber and lyft have not been able to persuade a judge -- the appeal could take years. andruling requires uber benefits.y costly

the companies can still go to a higher court. >> announcing the results of its review of the hang seng family of indexes. alibaba, this is the old economy stocks. what does that mean for evaluation? the hang seng index -- the valuation has been with the global ph. they have had good valuation metrics.

this is the benchmark. in particular, for alibaba. not allow midland traders to buy alibiab -- alibaba. this could be for the stuff to be included. alibiabad make available. all of this is very positive. >> that was the china markets reporter. tumbled in extended trade after reporting that it is under investigation by the fcc. details ahead, this is bloomberg. ♪

>> this is daybreak asia, a check of the first word headlines. china wants the u.s. to stop what it is calling discriminatory measures as the two sides repair to discuss progress on the phase one trade deal. they are expected to hold virtual talks this weekend with add presidentg to trump's attacks on tiktok and we chat to the agenda. rising in the gulf. the pentagon says revenues -- revolutionary guard forces

replace he is the liberian flag oil tank and released a video to back of the report. washington has offered no motive for the boarding. tehran has made no comment. palestinian leaders are said to be rejecting u.s. claims that israel and the uae are close to a diplomatic deal. the u.s. says israel has agreed to halt moves to declare sovereignty. al jazeera said the palestinians reject such a deal. lawmakers in lebanon met for the first time since the devastating set toon -- judges are question finance and public works officials over the storage of hazardous chemicals. they report safety warnings were ignored for years. at least 170 people died and thousands were wounded. in his worstred

economic and political crisis in decades. >> the chinese streaming service is under investigation by the sec. deal -- details from sophie kamaruddin. sophie: this is a report published by research back in april following more than a year researching the company. in that report, allegations were idu onlinethe ba video plat from overstated revenue. they claim that i.t. expenses were inflated to hide alleged fraud from auditors and investors and that it inflated the prices of content and acquisitions.

>> if you look at some of my allegations, they are very straightforward. very easy to vet. >> more scrutiny on chinese tech firms when we are seeing tiktok in the crosshairs. this ahead of potential discussions. what is the response to the probe? correct in this statement that accompanied their second-quarter results, the couple he says it is cooperating with the division of enforcement.

the company also says that soon after it was published in april, it had hired advisors. that is still ongoing. sophie kamaruddin in hong kong with the latest. let's get a check on the markets and trading for the moment. we are seeing the nikkei gaining ground slightly. this will be a fourth consecutive session of gains. it is at the highest level since february. this as the japanese yen continues to weaken. it is passing that 107 level. they are losing almost a percent of their. this after the longest losing streak in months. nine sessions of consecutive games. now falling from that level. the asx 200 gaining 4/10 of 1%.

tight been trading at a range since june, earnings season is in high gear. kiwi stocks falling a quarter of a percent. z expandingthe ibm the program. >> a major shift in the market. the founder and ceo of lev sky macro spoke exclusively tearing about his post pandemic productions and the upending u.s. dominance. >> in general, people are artistic -- optimistic about life but we will get like -- like we will get a vaccine in q4 and move on. and you look at the consequences, i don't think people have made the linkage between the policymaking response.

it is not necessarily linked to the outcome of the virus. the virus was a catalyst. this time. now it is taking on a life of its own. even if the virus is not a major over theur lives following years, i think these changes will be borne out. we are not going from a policy perspective or a social perspective or a political perspective back to where we were. this -- for this to bear out, we don't need the virus to stay with us for an elongated time. i think the horse has bolted. it will be hard to be put in a box. let therd because we political cat out of the bag.

we have seen these big, social movements. , the conflicts were already simmering under the surface. virus hasnment of the allowed them to bubble up. think it is from a policy perspective, very hard to put it back. what matters is rate of change. if you are gone and you have bone -- blown the 20% deficit, how do you put that back in the bottle? is back to the virus zero. it doesn't work like that, for fiscal policy to have an even trajectory on growth, it needs to stay the same. if we had a 20% deficit this it might go down to a 15% deficit next year. that is a 5% contraction.

is a massive contraction. in this political environment, i am not sure you're going to be able to tell congress they need to be writing hundreds of billions of dollars into billion-dollar checks to fund paying interest on reserves. to take money out of social security and pension education to pay banks? luck with that. great tradeshe over the past decade have been long equities come along rates, rates, equities, long you could be short hard commodities. what are the next great trades of the coming decade going to be? >> if i look over the coming decade, i think we are going to be in a very different world. i think the risk parity world that you described is not going

to happen. we have already brought forward that asset price appreciation. it meant your ability for the equity market to keep having these games is going to be very hard. you already had that big dramatic move. the negativet return to be zero in that environment. depending on where that long-term interest rate goes. miss big interviews later on today. we will be hearing from the latest outlook for gold. coming up next, we will be talking to the american chamber of congress. tensions rising between beijing

and washington. this is bloomberg. ♪

of the chinese iqiyi haveervice

dropped after an investigation. joining us from d.c., great to have you with us. we have seen the potential of sister -- strengthened rose and u.s. changes. more scrutiny. is this a long time coming? bill: it is a long time coming. we had a grand bargain with the u.s. and china, both sides doing pretty well for 20 years. we overlooked a lot of these things, whether it is a lock -- a lack of transparency, whether there is protectionism for social media apps like we are seeing now are being addressed or whether it is huawei and social security. i would say it is a delayed reaction on the u.s. part. i would also say it is a bit of an overreaction in the way that we are addressing the problems.

it is like a pendulum. the pendulum has swung. that -- business is hoping that it will come back to the middle so we can come to some kind of accommodation where the u.s. and china can both prosper doing business and investing in each other's countries. >> can there be a real reset of the relationship? bill: that is so interesting. between now and november. we have two months that could be pretty rocky because of these sanctions, legislation, executive orders. we may be seeing more. that thisalk administration could be more conservative and it wants to put the relationship on a trajectory

which would be difficult for any administration to normalize after the election. trumpr it is biden or that wins the election. frankly, the only thing that i see that is irreversible is the closing of the two consulates. that one would take a long time to get those consulates back into some kind of shape. they may have to rebuild them from the ground up. my sense and hope is that whether it is trump or biden, that we can put this relationship back on track. administration would have a better chance of doing that. i think they would approach this and more strategic, nuanced

in a way that is in the best interest of the united states. >> to what extent is that copper most ground possible? it seems that regardless of who is in power, you will continue to see this bifurcation when it comes to u.s. tech and china tech because beijing is looking for greater global dominance in that arena. bill: i get your point. it is a good point. what we need to do and what american business is hoping that we will do is address national security but that does not mean that we have to stop trading. we can scrutinize. we have the resources to make trade is not in anyway

detrimental to u.s. national security but without wholesale banning of certain technologies where the use of some of those technologies was not hurting national security, it would be in the interests of the u.s. in terms of allowing our companies to continue to trade in those areas where national security is not an issue. that includes in some semi conductor areas. so much of the r&b that goes on in the u.s. is funded by that business and so much of that business is with china. there is a way to do it. it has to be nuanced. >> what are you hearing from your members? will there be major decisions made in terms of investments and strategy?

>> i think many companies are in the wait and see mode. we had a survey recently with -- amchanhina and hai. and amchan shang looking to living. some are waiting to see what happens. see,nk they will wait and if it is a trump administration, i think we will wait and see if the policies would become more so politicized. i don't know if there is a very good chance of that but it is something we will be looking at. if it is abided administration, i know we will all be encouraging the administration

to be more thoughtful, more inerate and more strategic the relationship. >> if it is a trump administration the next -- in the next four years, with all of the tariffs, how big of an impact are u.s. businesses taking? bill: a big impact. the tariffs have adversely affected -- the u.s. tariffs have adversely affected there are in china. more than the chinese tariffs have adversely affected them. this continues. supply chains are being disrupted. u.s. companies should be diversifying their supply chains.

this has brought it to the floor. great adverse effect on companies. the white house calling out american companies that are active in china which are mostly inchina for china producing china, the white house called them out and said they were supporters of the u.s. communist party. it is very difficult for american companies to maneuver. in china's getting way? by this i mean we have seen such an aggressive response from china, anytime they feel they have been wronged by other countries, not just the u.s.. are they really getting in their and fermenting distrust of the commonest party? china is feeling its way.

this is a new role for this growing and very large and strengthening country. responses toward what was the normal response in the past, they are seeing that their responses are a lot more effective. they are getting other countries . they are getting much more of a response than they expected. i think the chinese are also learning as they go along. so far, the responses have been counterproductive for china. orther it is in australia someone in the u.s., they have been overreacting. >> william, always great to have you with us. we have another big interview

coming up today. jimmy lie will be sitting down with bloomberg's she north asian correspondent, stephen engle at 10 past nine. that will be in hong kong and in new york. don't miss part two of our series hong kong on edge. it is a look at how beijing's national security law is changing. >> we have been hearing from the reserve bank and his parliamentary testimony to the economic community -- committee there. he is talking about managing expectations for the recovery. he says that he does not see a rise in the interest rates unless there is a really substantial improvement when it comes to both markets as well as the economic recovery. saying that he hopes that the cash rate won't be at the current level for five years. he is confident that it will be

at the current level for at least three years. he said it was possible that it could over the cash rate to a 10th of 1% but at the moment they are not at a point where using monetary policy would help matters. he said it would probably mean they're unlikely to see momentum into the fourth quarter with that shaving off of the gdp. also commenting on negative rates. >> they are going to keep watching. you can also find the other major diary entries coming up today and later this week. this is bloomberg. ♪

>> a quick check of the latest business flash headlines. apple is taking advantage of cheap borrowing costs. it is joining other tech companies in tapping the investment-grade market, aiming to a more than $5 billion. apple is selling bonds in four parts with a 40 year security yeley -- yielding 180 basis points. big tex has whether the coronavirus storm with users often at home in reliance of the devices.

suing apple and maybe the same for google. after the tech giant moved the fortnite. that is in a case that is set to test anticompetitive laws. apple takes a 30% cut of any claims they bookable's when -- epic broke the rules. they have accused the tech giant of running a duopoly. is said to be frozen out of india's 5g will that. will provide new investment. decision follows similar moves by the u.s. and australia who say chinese tech companies are a threat. theet's look at some of movers. aussie shares pushing high.

we have seen over 40% after one pediatric.d 7% drop in third-quarter profit. they are actively looking to sell off their business. a 34% rise in annual profit for new crest. we are seeing prices for the precious metal push higher. coming up in the next hour, we get that is closer interview with australia largest -- australia largest independent mineral company. just a reminder, this hong kong lai sitting, jimmy

down with stephen engle. you don't want to miss that interview. this is bloomberg. ♪

>> it is 9:00 a.m. in beijing and shanghai. welcome to bloomberg markets china open, i am tom mackenzie. david: i am david ingles. you're counting down to the open of trade and the chinese mainland and hong kong. asian markets have that friday aeld as investors wait for deadlock in washington. and the likely effects on the economic recovery. to