sentences will follow, and they will be a very long time in prison for what they have done to these cities. most cities are well-run. most of the nation is well-run. pres. trump: we have made arrests in many cities. including gun crimes, arson, and 91 murders. we are using the full power of the federal government to defeat, as you know, the china fires. new cases have declined in 80% .- china virus new case have declined in 80% of

areas. we have done an incredible job. but had a lot of outbreaks, they will put them out. the hospitalization rate has fallen in our country, 54% since the peak in april, 54%. older americans are still the most vulnerable. 92% of deaths are among those 55 and older. only 2.7% of deaths have occurred among those 44 years -- think of that, 44 years and younger, so 44 years old and younger. >> we are hearing from president donald trump, speaking at the white house, notably saying the u.s. will use a snapback mechanism for further u.s. sanctions on iran, saint mike pompeo will notify the united

saying mike pompeo will notify the united nations. controversial, given this statement is being made by the security council rejecting washington's attempt to extend the arms embargo against iran. that snapback mechanism is the contested argument around the 2015 nuclear deal, despite president trump withdrawing the u.s. from that deal, and can therefore force the return to sanctions if it is seen as a violator of those terms. the u.s. trump saying is using that snapback mechanism in opposing sanctions against iran. we will continue to monitor the press conference and bring the latest. shery ahn: let's check the markets. u.s. futures under pressure at afteren, declining 0.1%,

that reversal off record highs during the regular session. erased early gains. all 11 sectors were lower, led by real estate and energy. as nasdaq losing .6%, this central bank minutes pick painted a bleak picture of the recovery. the dollar.at we have seen the biggest rebound and the best day since march. the rebound pressuring stocks, after sinking to the lowest level since 2018. take a look at apple in the regular session, hitting that $2 trillion mark, wall street history, the first time achieving high market value of more than $2 trillion. we have seen that rally in tech

shares and optimism over the 5g iphone. breaking now. with first half earnings, first-half value of business plunging 38%. the estimate was 30%. this is a huge miss, the steepest decline since its 2010 ipo, following the fourth quarter 28% decline. hit by then badly coronavirus pandemic in hong kong, southeast asia. we sell some recovery in the chinese market, but still not enough for their business value to climb out of negative territory. cost.illion operating we will speak to the aia group chief executive in the next hour on "daybreak asia."

let's get some more market mcdonald, whojim joins us from chicago. let's get started with the fomc minutes. people were not happy with the economy,ture of the and this time no immediate action from the fed. in terms of see market reaction? will they still find a floor given a potential stimulus package soon? the market does not look to the fed for proprietary economic insight, so i don't think the selloff was tied to this. there was a clear reassurance from the fed they would do what it takes to support inflation

among the historical, short-term target. the market was at record levels. it was an excuse for a selloff. there wasn't anything proprietary in the outlook, which remains uncertain. some good retail strengthen good strength from the technology companies, but there is still uncertainty around the path of the coronavirus with the flu season, and what that could mean. surpassed also, apple that $2 trillion mark. theave seen a huge rally on tech sector, right? does still a record, or the breadth and volume and health matter going forward when this seems to be so narrow? jim: it is reassuring when it is the topr recovery, but

technology stocks had revenue 10%th of 15%, compared to a decline for the entire stock market, so there are great, strong fundamentals supporting going on, but we want to see it broaden. stocks are expensive. we struggled to get to a meaningful positive return on stocks over the next year because we have seen so much of recovery party. haidi: we continue to see this bifurcated rally, make a cap mega cap doing- better than small-cap stocks. so, the fundamentals with stocks, so some breadth would be reassuring if we see rotation into economically sensitive areas, showing a durable

recovery expected, better performance by the financials, for example. the tech companies have the best fundamentals out there. are they pricing in if we get a change of administration in november? that is an interesting question. if you talk to investors, the expectation is joe biden will want in the senate is up for grabs. if you have higher corporate taxes with the democratic sweep, well,ould not be viewed but there are positives that could come out of it with more predictable foreign-policy, less trade and tariff disputes with longtime allies, progress in immigration reform, which should be an economic positive.

there are some offsetting positives that could come out of this, and the democratic right now it looks to be more centrist than what people worried about a liberal possibility. haidi: what about a potential collapse of the u.s.-trina -- china trade deal? jim: investors are worried about the virus, number two is economic growth, number three, and the u.s. china relationship yearsen deteriorating for now, so people have positioned for that, and that's not likely to be a big new catalyst. we haven't even talked about the fiscal cliff we are facing if we don't get a fiscal package, so all of those things are ahead of

the u.s.-china relationship in terms of what investors are focused on. shery ahn: jim mcdonald joining us out of chicago. the dollar higher in the fed minutes focusing on the fx impact. our guest will be with us, next. the latest talks between washington and beijing may have been after all, despite action from the us when it comes to hong kong. that is next. this is bloomberg. ♪ oomberg. ♪

focus ofs. remains a the covid-19 pandemic, but number slow, florida indicating

the following. other countries are tightening mayrictions, while the u.k. test passengers at airports, and france has its biggest bike since may. hong kong has reported the lowest numbers, along with fewer infections with unknown origin. passed 35% for the past six days. thailand is considering extending its state of emergency to prevent a new wave of cases. germany's leading aviation body is proposing omitted air corridors for a resumption of flights between the u.s. and europe. it would require passengers to produce a negative covid-19 test before boarding. generated $1rk

billion in annual sales before the virus shut it down. everthe largest of flood levels expected to flow into the three gorges dam in what is expected to be the rge in forarch -- su decades. it has caused $26 billion in economic damage. global news 24 hours a day on air and on quicktake by bloomberg powered by more than 2700 journalists and analysts in more than 120 countries. i am karina mitchell. with the u.s. and china planning to hold trade talks, according to sources, even as the trump administration cuts ties with hong kong. for now, were joined by tom mackenzie invasion. the talks were on and off. are they talking again?

tom: they are. process inrt of the the phase one agreement, six months after the deal was signed , they would sit down and review progress. .hey would do this virtually they were count to get together to discuss how much progress is being made. this wasting suggests going to happen last weekend. that not happen. yesterday, president trump said, you know what, i called off those talks because of the pandemic and the way china has handled the virus. that led to a selloff in the because this is where officials had said they were still aligned on the phase one deal.

sources in washington telling bloomberg now the talks will happen. we don't have a date yet, but they said it will happen soon, so some comfort to those watching this. china has been ramping up its purchases of u.s. agricultural goods. a delay potentially gives them time to get closer to those targets. when it comes to optimism over the bilateral relationship, we may have more tensions over hong kong. more pressure on hong kong over the national security law. the actions did have preferential treatment with the u.s. until that executive order was signed, ending that, so a drip feed of actions, whether technology exports or sanctions on officials like carrie lam. the latest move is to conclude three agreements, including the extra tradition -- extradition

treaty with hong kong, so building on further measures from the trump administration to tradingspecial treatment that hong kong has benefited from with the u.s.. we can expect further actions in the months ahead. >> thank you. we are getting some breaking news. slew of earnings due out today. 1.7 billioneporting austrian dollars, with a share cents, and aian special dividend of $.18 a share, feel your revenue from operations just shy of 31 billion australian dollars. retail sales have been

surprisingly resilient so far in this pandemic in australia, but that is dependent on the strength of any more government stimulus coming through. wesfarmers derives approximately 20% of sales from melbourne, which continues under that strict lockdown. we will be speaking more with robert scott about those earnings at 3:10 p.m. in sydney, was: 10 and hong kong. -- 1:10:00 p.m. in hong kong. , and senatore dnc kamala harris making her primetime debut. what role will she play for the biting campaign? this is bloomberg. ♪ ♪

outemocrats will be rolling

a star-studded night. kamala harris will give her first primetime speech, giving us a glimpse at her role in the joe biden campaign. barack obama, hillary clinton, and nancy pelosi will join him, among others. our guest joins us now. great to talk to you. we are in the middle of this pandemic. we have not gotten a sense of how kamala harris will engage voters. what are we expecting? make are hearing she will a speech they are describing as very inclusive. a lot of americans don't know a lot about kamala harris, former attorney general, and she before ran for president

dropping out before iola. she is not known across the country, so she will introduce herself. the speech is inclusive. she has quite a story. for aa history making not major party ticket, and only the fourth woman in history to be nominated. it is a history making not, a day after the 100th anniversary of the 19th amendment, plant women in the u.s. finally got the right to vote. >> i will interrupt you with breaking news, qantas earnings 1.96g through, a loss of billion australian dollars. that is significantly worse than what investors were looking for,

contrasted against an $840 million profit a year ago. qantas saying the early , theement of 747s international network is unlikely to start before july 2021. aussie dollars is better than the 24 million. significant cuts in 2021, and deferral of aircraft. 6 billion1.9 6 bi coming amid write-downs and fuel hedges as well. so we will get more on that. that is qantas at the moment. jumping back into the conversation about the convention.

choice itthere was no it hasbe virtual, but limited upside for fundraising and networking, which is what you go to these events for. jeanne: absolutely. people have been robbed of that opportunity to meet face-to-face . fundraising online is different. in terms of ratings, the ratings are down significantly, although that does not take into account people watching it online, so we are not quite sure how down they are, but the democratic party has tried their best under difficult circumstances, republican same thing next week, to make this accessible and showcase the best of the party. watching it, it feels like a long telecom or tv

commercial for the party -- telethon or tv commercial for the party. happen during a speech, but we don't have a live audience to respond. there is nobody in the room with everyone social distance. haidi: we appreciate your time. we begin day three of the democratic national convention. let's look at those breaking 1.96 out of qantas, billion australian dollars million profit a year ago. that beat expectations, 124 million versus estimates of 24 million was the analyst average, talking about the deferral of aircraft deliveries as will come

forecasting reductions to the 2021 andecast for unlikely to return until july 2021, also announcing $395 million was higher than expected. out thatth pointing qantas ranks highly in terms of how analysts are feeling, eventually due to the restart and lack of competition with trillion -- australia. analysise getting more , as well as speaking to the man himself. he will be joining us, alan joyce, at the following times. let's check the

latest business flash headlines. airbnb has submitted a confidential draft to the sec regarding a sale expected to take place after a review process and will be subject to market conditions. of theber of shares common stock has not been determined. says it is ready to list as the industry emerges from the coronavirus. accidentally wired a some to revlon. -- same judge meant to make interest payments, some more than 100 times too big. we will have more coming up on "bloomberg daybreak: australia."

this is bloomberg. ♪

trump says he will reinstate sanctions against iran . briefompeo is expected to leaders on plans after the council rejected a formal resolution. theal sanctions were under 2015 nuclear deal that president trump abandoned two years ago. are revisinga talks on their trade deal, after a a virtual conference was called off sources in washington said a precise date is yet to be

set. review never make the official agenda in washington or beijing. the u.s. is stepping up opposition to china, terminating three agreements with hong kong over the national security law, covering the return of people and tax exemptions. the state department says it indicates washington is concerned about china's influence in hong kong and rising control over the legislation. the european union is rejecting the election result in belarus, although stopping short of calling for a new vote. several leaders say they have been unable to reach president lukashenko by phone. there have been warnings from moscow to not interfere. claims the vote was neither free nor fair.

global news 24 hours a day on air and on quicktake powered by more than 2700 journalists and analysts in more than 120 countries. shery ahn: thank you. futures under pressure. asian futures pointing lower after the drop for u.s. stocks. on the central bank front in is on holdhilippines . there are calls for rate hikes. let's check in on the commodities, a rough overnight session for gold, this after the fed backed off providing guidance, but base metals got a lift with copper reaching a high

guidance,tinto cut adding to supply disruptions. let's check in on the , a retreat after preaching 6.90 for the first time since january. the economic recovery in china is not looking to have the pboc change its stance. sees 6.85 if beijing avoids further disputes ahead of the vote in november in the u.s. look at the technicals for the dollar, the bloomberg spot index snapping a five-day route. retreated, but the dollar at the 2018 low, giving

concerns over bond issuance and the growing supply of longer dated treasuries. haidi: now following the release of fed minutes, the bank appearing to back off on guidance on future interest rates and more cautious on the pace of recovery. joining us now is the head of fx strategy, great to have you with us. argument for the dollar remaining intact after the five-day decline, given positioning, it doesn't look terribly stretched? fundamentallying declinefor the dollar that commenced in april, the big decline in real u.s. bond yields

was underway before the pandemic . had not had impact on cross-border capital flows, but was further because of the fed actions in the initial stages of the pandemic, and interest rates lags, butith flags -- the decline is the telling future of where the u.s. dollar should be headed. positioning across the g10 spectrum is not stretched in terms of dollar positioning. if you look at euro-dollar, there is reason for caution, but onil we have more confidence the passage of the recovery from, euro-dollar will range little.20, so this is a pause and has not given the market encouragement as to when the fed might be delivering

forward guidance, and pulling back from adopting a yield curve control policy, so that is the pretext for this risk correction in the moves in the dollars recently. outcome of the u.s. election, will it change that? will we get a more consistent were coherent virus strategy? ray: it will be relevant. u.s. stock markets have only taken notice of the elections a couple of months leading up to it. if the market becomes confident in a joe biden victory, the implications for regulation, health and finance, and other something ofd have an upset to sentiment in the lead up to the election, which would be expected to be u.s.

dollar supportive, but given what central banks are doing, it is not abundantly clear there will be a correction. the election outcome will be balancing risk factors for particular equity sectors with the broader thrust of what fiscal policy might look like biden.biden -- under joe policy could be far more stimulative than is the case currently, so there will be some of that with risk assets and u.s. dollar. have: high yield there's typically unprovoked -- high-yielding assets have typically unperformed. what will it take? differentiation between emerging markets. we have some significant upward pressure on the yuan that

reflects the carry trade characteristics they are. re.the i am looking at turkey in particular as a particular hotspot. it seems the central bank has steadied the ship for the time being, but if they're not ready to take rates into positive territory, that is a potential accident waiting to happen there, but more broadly, if sentiment stays up, you would expect more broad-based em strength to eventually a -- eventually emerge, and we are disposed to north asian em then southeast asian currencies, particular those having a time containing the spread of covid. >> this chart on the bloomberg, since you mentioned turkey and

the turkish lira, they have some of the lowest rates, and we have that central bank rate decision tomorrow. what are your thoughts on the lira, having lost 20% against the dollar, and how with that filter through emerging market volatility, just quickly? ray: the expectation is they won't raise official rates. toy have real rates close that level, so there is vulnerability. areas missy, the .outh africa, russian ruble we will see that selloff in the central bank would do what is necessary to shore up confidence in the turkish lira. haidi: your call for the aussie dollar, particularly with the chatter about negative rates getting louder? ray: i know you ran a report, somebodynk that is

consistently critical of the rba. unlike new zealand, and that inspires our view that the quasi-kiwi cross has more upside the new dollar in zealand currency cross has more upside. we think aussie dollar is headed back towards $.50. haidi: we appreciate your time, ray. we continue to get earnings coming through. these coming through now. l year lossng a ful for south32, declaring that

final dividend of one cent. an underlying profit of $193 million, better than the $180 million expected. south32 declaring that special dividend per share of one dollar and one cent. we will be getting more on that speaking with the ceo and managing director, who will go through those results with those later on, and we will get more on how earnings will be impacting markets. arkets now closing at five-month high in yesterday's session, i positive set of results. this is bloomberg. ♪

we continue to watch earnings from some of the biggest companies today, including wesfarmers, south32, and qantas. we are waiting on santos for earnings. let's look at the impact. our cross asset editor joins us now. we actually saw a five-month high wednesday. i suppose relief may be this earnings season has not been worse? >> hi.

you wonder how much of that gain was driven by sentiment out of the u.s., where u.s. stocks closed at a record. there is not a real clear picture out of australia. earningsave positive by several companies and guidance. also cloud-based software companies have largely been the winners this earnings season in , so you havehere had better sales on stimulus and restrictions, giving people time to spend more money. on the other hand, you have banks under pressure with bad debt provisions to cover with

the related economic fallout. are cuts, or some are not being paid at all. you had qantas this morning with that 2 billion australian dollar net loss, so it is sector-specific at this stage, and the market is very exposed to have these earnings are playing out on a day to day basis. haidi: we did have the fed minutes being bearish when it came to the outlook of the u.s. economy. that took stock markets by surprise, reversing earlier gains. what are we expecting as we continue to see mounting challenges on the economic front , not to mention the china-u.s. tensions? andreea: that's right. temper some of the optimism we have seen in the

last week or so. you also had those positive 83% of companies beating estimates in the s&p 500 , so the fed will have an impact, perhaps just making investors think about this void stock market gains we have seen, and with the twist and turns on a day-to-day basis, that is likely to perhaps rain gn in that euphoria we have seen in recent days. a profit boost for awes. oz minerals.

i spoke with the ceo and general manager, and started asking his predictions for precious metals. that is a difficult question. it is highly volatile with the spike up and down, so we are not making predictions. we are fortunate to have 25% of operations exposed to the gold price currently, but that could turn quickly. copperrs are moving into as well given the high price of gold. or policy is not to hedge make predictions on the commodity. we are a low-because producer, so we like the volatility. haidi: that makes me think you will not be changing your strategy to capture more upside in gold work andrew: -- gold. andrew: no. to, aes us a nice hedge

natural hedge to the copper, but no, not looking to lock in any pricing. haidi: can you push production harder? andrew: we have push production harder as a result of the gold price. a lot of the uplift in earnings this year has been a result of changing our mining sequence to produce more gold over the last 12 months, so we have had flexibility to capture some of the opportunity presented to us. see the wonder how you copper price and the narrative uncertaintyn the with covid-19 and the economic impact globally? it is a good question. the fundamentals is where you have to start. very big investments

that spans multiple cycles, so supplyamics for copper and demand have not changed. it is difficult to find new copper deposits. there have not been any real new discoveries in the decade, and the fundamental operating cost of existing assets is getting higher. on the demand side, whether countries are building new infrastructure or consumers are consuming goods, or countries are trying to produce renewable energy to reduce emissions, they are all large users of copper, so in the medium to long-term, it will be very resilient as a commodity. haidi: do you expect an acceleration in demand from one-offthings, like -- things, like an infrastructure

, or from the.s. infrastructure-driven recover we are starting to see in china? , yes.: in short we are seeing stimulus packages around the globe. building copper smelting capacity, because it sees it as a strategic commodity that underpins its infrastructure program. any stimulus activities will invariably require copper in some element of that project, and we are seeing stimulus programs all around the world to get economies back on their feet and get people employed. they all have a positive impact on the demand for copper, so those programs, no matter where they are, do have a positive impact on demand. from ozndrew cole

minerals. don't miss our other big conversations throughout the day. ceo, ands ceo, south32 wesfarmers ceo paul join us live, later. apple makes history as it leads the great tech stocks of 2020. that is next. this is bloomberg. ♪

haidi: it was a big day for apple, making wall street market value its pushed above $2 trillion. many saw this coming, and shares have doubled since march. in rarer fraudow --re -- in itsook 38 years to reach first $1 trillion, the next trillion came in just two years. if we go into the bloomberg quickly. there is now almost a new milestone. it is close to overtaking the

value of the russell 2000 index, meaning it would be more viable than all 2000 small cap companies. during theed back covid-19 lockdown. what has pushed apple so quickly in the last years has a lot to do with the new iphones, apple watches, air pods, and services. inceo was instrumental bringing about cloud-based and enter not -- internet-based services, and many analysts believes that brings in the revenue that pushed it higher. it has a lot of big investors like warren buffett, and while it is imminent the stock split could have been, many believe that will give smaller investors an opportunity. haidi: in other big developments

rebound,n starting to airbnb is submitting its filing to go public. says it has filed to go public, this as the company emerges from a fairly punishing impact from covid-19, lockdowns, travel restrictions, it has hit companies like airbnb particularly hard. it said it submitted its ipo filing confidentially, so we can't see a lot of the details normally available. the company is saying the size and range of the ipo has not been set. the company was valued at $31 billion at its peak in 2017 during a fundraising round, and many believe was it postponed its filing in march due to the covid lockdown that it might wait until next year, but this indicates it is confident travel

is on the rebound. back to you. haidi: let's get you a quick check the headlines. as coronavirus4% hammered the travel industry. largest company, samsonite, reported a net loss of $1 billion. the value of aia group felt the most since it went public 10 years ago. the coronavirus made it harder for sales agents to meet prospective clients. a key measure the new policy is 38%, $1.4 billion through june, from $2.3 billion a year ago. groupl speak to the aia chief executive about his first half results at 9:30 a.m. sydney , 7:30 p.m. in new york.

plenty more to come on daybreak asia. this is bloomberg. ♪ berg. ♪

haidi: good morning. opene counting down to the fall, and theks dollar strengthens. covid-19 is seeing weighing heavily on the economy.