♪ haidi: good morning. we are counting down to asia's major market open. shery: welcome to "daybreak: asia." asian futures are mixed despite wall street record ralley as the fed policy shift, oil slight at hurricane laura weekend. if u.s.s set for operations, a race for a deal sees walmart joining microsoft to challenge oracle as the app

makes plans for a shutdown. cyberattacks halt trading on new zealand's stock exchange for a fourth day despite confidence of a return to business. let's take a look at markets. asia, we had a seismic shift from the fed market welcoming to change in the new normal from jay powell wagesting inflation and pressures would be allowed and rates would be on hold for longer. s&p, up 0.1%.the the s&p reaching that all-time high or a fifth straight session. the nasdaq also setting a record high before closing nowhere. the nikkei up about 0.1%. we are hearing vaccine plans from japan, we are expecting to hear more from shinzo abe as he is facing the press to give more

details about his health given a recent hospital visit. the bloomberg dollar index is tracking flat at the moment. the weakest in two weeks when it comes to trading in the japanese yen. the biggest drop in more than a week. mixed picture given that we have the aussie dollar and kiwi outperforming. stable, crude pretty just shy of three -- just shy of $33 a barrel. refineries still off-line. shery: for investors, it has been about the fed, taking a on monetary policy. jerome powell says the bank will let inflation and implement one higher. -- run how your. >> our statement indicates that we will seek to achieve inflation that averages 2% over time.

therefore, letting inflation bond below 2%, appropriate monetary policy will aim to achieve inflation above 2% for some time. othert does this mean for central banks? our policy editor has more. guest to the perfect discuss all that, how it reverberates not just in the u.s. but around the world. from run by john -- i'm ron rajan, former head of india. i'm going to start with putting you back in that seat. r.b.i., you out the are waiting to what jay powell had to say, is it a seismic shift or are we making too much of this? dr. rajan: i think it is an important shift. , ii were a central banker

would be more confident that conditions would remain accommodative. he said three things which were important. flexible average inflation targeting, if it is running below target, which it has been, we let is run hot. that, the markets took as, we will not get overly concerned about inflation if it picks up. he said two more things. one is, we will not engage in what we used to earlier, which is when we thought inflation was going to go up, we would start raising rates. been aive heights has cannon of central banks and backed away from that. he seemed to suggest that until previousflation, which governors said it would be too late to raise interest rates at that point, jay powell seems to indicate that it was ok to let that happen and he was not

anxious about raising rates. that third thing was maximum employment, that means inclusion also. typically minorities tend to get hired at the backend of the cycle. that theirsuggest version of maximum employment has become even more accommodative. we will not raise rates until we see more minorities being hired. i thought those three elements contributed. >> let's talk about his expectation on inflation expectations. the fed has been focused on them being too low at he is talking about a tighter labor market boosting those expectations and inflation but in a lot of ways, though inflation is a global phenomenon, not just about where the u.s. is, it is about where the world is, globalization has cut us, chief exports from china. how does that fit in? dr. rajan: expectations are

important and central bankers focus on them a lot. what this speech does is it says , we are going to let the economy one hard. we are going to intervene at some level of inflation, think again and push that level of inflation at which we intervene higher. even though it may not directly impact inflation expectations, it does suggest the fed will be more accommodative than earlier thought and that gives room for expectations to start creeping up. >> what does it mean for emerging markets? does it give everybody a green light to say, if i oco -- if i go above by the inflation target, at what point -- i think this is a tricky path everyone is going on. dr. rajan: it is. emerging markets tend to have

established low credibility, a different kind of problem. industrial companies -- industrial countries have in combating low inflation. it is a different game. for them, the issue is credibility. how do i tell the markets that when inflation picks up, i will react in time? if i don't do that and markets think i will let inflation one hots, it is going to create -- is going run hot, it to creates problems. the fed has bought a room for emerging markets by creating the sense that financial conditions generated by industrial companies -- countries are going to be accommodative. it does not mean central banks have license to do what the fed did. governorrmer fed

joined us in the last hour and he said he thinks the reason the fed is doing this, the goal is to avoid negative rates. the u.s. can avoid a japan deflation mentality scenario. do you agree? dr. rajan: i think the fed ratesizes that negative or yield curve targeting, those new techniques being used elsewhere have mixed reviews, that it is not clear they function as advertised and they have side effects. , at least recently, has been reluctant to think about using those tools and techniques and it would preferred that there were other ways that inflation started moving back to its target and that growth started picking up.

it is reluctant to use those techniques. that is not the only reason. they want to make the existing techniques more effective by bringing this average inflation targeting framework. >> there is talk right now about the federal reserve keeping the key rate at zero for five years or three years, indefinitely. pick a number. is that likely? are we looking backward? people say central banks fight the last battle. could economies come back quicker once covid is under control? maybe next year, and making a lot of this a moot point? dr. rajan: it could come back quicker, that is one possibility. though it or is, we are influenced, when it was hard for central bank to get inflation up in a post-financial crisis, but the world changes. the post pandemic world has higher levels of debt.

we have the major central bank in the world changing its inflation framework and inflation target. thinkncern is just as you the real battle is fighting low inflation, you are setting a lot of conditions in place for having higher inflation. the question is whether that turns out to be the problem down the line, instead of combating low inflation, you have to combat high inflation because high fiscal deficits, high accommodative central bank does create the conditions for higher nation. i don't think it is today's problem. it may be a problem a couple years down the line. >> what is high debt? in so many countries, it has become a problem. china abandoned its attempt to deleverage.

with a pandemic, making that worse. they are not alone. how does the world dissolve this? we will forgive all the debts and start from scratch? high-growth, which is not been the case for a long time. high inflation, which is not been the case for a long time. so pick your poison. there are so many poisons you can choose. growth would be fantastic if we could get that but that will be hard. my guess is we will muddle through with some mix of both growth as well as inflation in many countries and there will be a temptation to fold on some of the data. ae state government debts and number of countries including the united states, in illinois, it is incredible levels. >> you mentioned jay powell's reference to inclusivity and how this policy leans in that

direction by allowing inflation to rise, unemployment get lower and stay lower without changing rates. about howritten a lot the world has changed not just in the u.s. in terms of inequality of wealth and opportunity, but in asia, emerging markets. there if theynamic u.s. is so worried about it? how does this play out for those countries, which are porter with fewer resources? orer inan: being por india or bangladesh is a much lower level of income than being poor in the united states and if we are worried, which we are worried about, the fate of a lot of minorities, poor people in the united states, many of whom are on the front lines, working in grocery stores, think about

those people in india and don'tdesh who are today have a livelihood because of the virus and have to deal with problems of hunger, whether they have enough food, whether they can send their kids to school. -- theld has become pandemic has increased every for sign there is, but the in quality for sign has been exacerbated more. >> thank you so much for joining us today. dr. rajan: thank you. formerleen hays with the central bank of india governor. joinsahead, walmart microsoft in the bid for tiktok. we have the latest next. this is bloomberg. ♪

♪ you are watching "daybreak: asia." the u.s. has parked on another grim milestone with the number of deaths topping 180,000 euros -- 180,000 deaths. france reported its largest number of daily cases since march as the european union seeks to avoid a new lockdown. japan says its recent wave of infections is showing signs of subsiding. president trump will accept the republican nomination later, asking voters for another four years in office. he will speak from the white house saying the u.s. cannot trust joe biden or the democrats to handle the coronavirus and the racial divide.

the president was ready to cancel his speech because of hurricane laura but will go ahead as the storm moves away. don't miss our coverage of the public and national -- number public and national convention. blican national convention. nba aent trump the political organization as players protested the shooting of jacob blake. nba players have agreed to resume the playoffs with games expected to be rescheduled friday. isdi: the battle over tiktok ramping up as walmart joins microsoft. ceo quits as tiktok after three months. let's get more from a correspondent. how does this battle likely to

play out given the unlikely audition of walmart -- addition of walmart? >> it depends on what is the place tech. is it more like what we are hearing that twitter was considering around $10 billion? the numbers are wide. analysts and bankers have pegged to the value between $20 billion to $50 billion. that is a huge range. and analysts said the deal would come in between $35 billion to $40 billion but this is basically a forced sale by those executive orders and it has to be approved by the u.s. government and chinese government. the chinese government has been opposed to this. inre was a lawsuit monday los angeles challenging donald

trump's ex negative order, --ling it unconstitutional executive order, calling it unconstitutional. people are healing from close to this eminent deal is walmart's audition -- addition to microsoft's bid puts them as the frontrunner. others not joining the fight like alphabet or twitter. shery: it was surprising to hear that walmart was teaming up with microsoft. what is it ringing to the table? >> tiktok is a video centric platform tied to young people and potentially dumb shoppers and walmart is in a battle for the future of shopping at e-commerce with amazon. bytedance, apps like tiktok boosted e-commerce features. that is not been available in the united states yet so analysts are saying adding walmart would allow the retail

giant to play that role along and microsoft and microsoft walmart are already collaborating on cloud amazon.ions, joined by it is an interesting thing, we have to see how it plays out. bytedance isg that making contingency plans in case it needs to shut down in the u.s. this is a complicated deal and the price tag has not been agreed upon. if bytedance is seeking $30 billion, twitter saying $10 billion, that is a big discrepancy. that 90 day order could come fast and they might have to shut down if a deal is not made. coming up, new zealand

stock exchange suffers a fourth day of disruptions are cyberattacks from abroad. we will have the details on who may be behind the attacks next. this is bloomberg. ♪

♪ as we reported earlier, the new zealand stock exchange failed to reserve trading marking a fourth day of disruption. joining us is an equity markets reporter. what we know about you might be behind these attacks going into a fourth day? point, we don't know who might be behind these attacks that have affected new zealand's stock exchange. the exchange has declined to comment on the source of the attacks and says it is working with cybersecurity experts. at the same time, there is a publication that reported a

criminal gang has launched distributed denial of service attacks against the world against financial service providers. the group estimated that bitcoin extortion fees to stop the attacks. this is according to that publication. the report mentions a statement by a security intelligence company which said it had been tracking these attacks from a group of actors who are standing -- who are sending ransom letters to companies. shery: i can't imagine investors being happy about this, a fourth day of disruption during a busy earnings season. >> investors have been frustrated with the attacks over the last four days. the timing is not ideal as investors have been unable to trade amid a busy season. this has been disruptive for investors. investors as a whole have been

concerned about information flows. this is a period in companies are dealing with coronavirus and are watching to see how data relates to their forecast. frustrating because previous to this or as this is ongoing, kiwi stops edging closer to the record high. -- stocks edging closer to the record high. days ofve had four outages, it is hard to think about where is next for that milestone, especially when you had some dovish comments from and the new zealand stock exchange is out today. at a time when there could be risk on momentum, they are missing out today. get a quick check of the business flash headlines. goldman sachs once u.k. staff to return to their desks after

months from working from home. incentives.offering however, it's as a return to the office remains voluntary. staffn-s peers has most working remotely although barclays told bloomberg that it is important to have people back together. abbott laboratories surged after emergencyst won clearance. the government will bind all 150 all 150tests -- buy million tests. abbott will begin shipping tests within two weeks. shares climbed 10%. companies are keeping up their dividend payments despite the biggest challenge yet as covid-19 hammers cruise ships

and resorts. malaysia's net loss was the biggest since 2000 and hong kong had to suspend payments to creditors. the company says it is pessimistic. china leading, a profit down 30% as the coronavirus if the investment returns. net income fell to $10 billion in the first half of the pandemic to the company's growth challenges. bloomberg intelligence says it faces a slower recovery than peers because it is more selective about recruitment. a 19% drop in profit. posted a 19% drop in profit. up next, hurricane laura barrels louisiana but largely spared texas from widespread energy

disruption. we assess the damage next. this is bloomberg. ♪

♪ breaking news out of japan, we are getting the tokyo numbers for the month of our guest -- month of august. missing estimates of a faster acceleration in those customer price numbers. when it comes to the core cpi 0.3%,s, a contraction of a deceleration of inflation for the core numbers. the expectation was for it to stay in positive territory. fluidpi numbers excluding and energy prices, contraction

of 0.1%. we are seeing inflationary pressures in japan. the east tokyo numbers are important because they are signaling where national numbers will go this month and for august, we are seeing this inflationary pressures in the japanese yen at the moment seeing some strength. i want to get to market things, gina martin adams made andpoint that the recovery risk tolerance that usually benefits value and small-cap stocks, that has emerged in asia, pulling up the chart on the terminal to demonstrate that, small-cap in asia outperform this month, putting a dent in large-cap dominance over the first seven months with the investor participation a key support as they chase smaller names.

a broader market recovery in asia has been a boon with more than two thirds of stocks trading above the 200 day moving average with that ratio above 70% in india and china. pictures had been relatively flat while industrials, materials, and financials have come into favor. in japan, quiet summer trading has fed into a narrow markets with little change since mid june for the topix. they players have led the rally for the index and a coating to tokyo research, that opens up room for laggards to play catch-up. an analyst is thinking along similar lines, switching up the charge, pointing to the correlation between the topix and global tech shares which could signal nontext cyclical stocks could come into favor if a rotation takes hold. look at the take a

oil. hurricane laura has weakened to a tropical storm but not before it hammered louisiana and scored a hit on plants that produce chemicals. oil prices fell, refineries are avoiding the storm. let's get over to our energy reported with the latest. what are we hurry -- what are we hearing and when could we see a resumption with regard to these disruptions we are seeing? most of the major refineries were spared with the hurricane landing near cameron, louisiana. veering away from southeast texas. minimal disruption in jefferson county, where refineries are located. .ome are in the restart process however, there has been disruption in the port arthur area, home to the largest u.s. refinery.

that is the one people are focused on. it should run normally within a week. what about shipping and offshore oil production? our waterways back to operating waterways back to operating normally? >> ports opened up quickly after the storm. vessel traffic should return. i would say fairly quickly. before the storm hits, there were about 65 takers in the u.s. gulf waiting for it to pass but now that the ports have opened, we should be able to see not much of a backlog. energy reporter there with the latest. let's get you to first word headlines. a storm knocked out power in parts of the south and prompted

the north korean leader to warn of impending damage. winds gusting above 130 kilometers per hour. continue insville the capital throughout friday morning. president trump and the postmaster general are being audited to -- ordered by a court to hand over evidence. the judge said the administration must offer assurance that the postal service can handle the challenge of delivering ballots, saying americans rely on usps to do its job. the president claims mail-in voting these defraud. address media later made speculation about his health. he made two trips to hospitals in the last few days, j.p. morgan said began yen would surge if the pie minister was to go. , abe will serve out his

current term. we discussed up, the gender pay gap as australia marks equal payday, workplace gender equality agency director libby lyons joins us next. this is bloomberg. ♪

♪ today is equal payday in

australia but they are not celebrating gets because we are marking the extra 59 days from the end of australia's financial year to earn the same as men. the gender pay gap could get worse because of issues graded by the pandemic. libby lyons is the director of the workplace gender equality agency. always great to have you here. we have seen the pandemic in so many ways deepen the divides of inequality in that plays out when it comes to the workplace. libby: it sure does. have been on the frontline because of the pandemic. losing they are the ones hours that they can work each week. we have seen our female workforce participation drop.

it is going to be hard to get that back. where are we seeing progress and where in terms of policy and substantial policy change within the corporate sector are we still lacking? data: we noticed from our and collecting data for seven years that when employers take on gender equality, the gender pay gap goes down. a symptom of cultural problems that we have in australia and across the world. if we directed the barriers that women face in entering the workforce, moving their careers , then we see the gender pay gap go down there it -- go down. it is about employers taking action. just because we are in an

economic downturn, the evidence we have is unequivocal. if you focus on gender equality, you will be ahead of your rivals. competitiont your because gender equality is good for business. korea,we have seen south i.e. gender pay gap of more than 30%. -- a gender pay gap of more than 30%. what could these countries learn from australia and what could australia learn from these countries as well in trying to achieve gender equality? libby: the great thing we have been doing in australia that has proved to be a huge advantage is collecting data. we are collecting data from the private sector around gender equality. if you think collecting the data

-- if you start measuring what you are doing, you will be able to affect change. the other thing we are doing is the agencies are educating and influencing organizations to make change. from is much we can learn countries in asia as well. they have a wonderful work ethic in asia and we need to follow that but i think collecting the data and measuring what we do is vital. the advice he would give to the private sector -- >> what is the advice you would give to private sectors and employers? they need to cut costs but also keep trying to close that pay gap. libby: the most important thing employers must do, don't immediately go to the low hanging fruit.

hardships, economic organizations tend to cut part-time employees and they tend to be women. be more creative. look at what organization is doing, who are performing the different roles in your organization. strategic about who you need to let go. we all understand that we need to let go staff, but be strategic about it so that you are not discriminating against women. >> the entry levels, mid-levels are often one other reasons we don't see representation of women and other diverse elements at the highest levels of leadership. i'm wondering what your views are and what we are seeing at amp at the moment and is there a

sense that this is a turning point, high-profile investors like pension funds are starting to demand more out of the cultural aspects of these corporations. libby: absolutely. investors areand to put up anpared action around poor behavior in terms of sexual harassment. i think the culture of any workplace is determined by the executives and the board. harkening back to the way it was in the 1970's does not cut it anymore. community are starting to put pressure on boards, as they should. >> great having you with us, thank you. coming up, inside the corporate

ghosn,at toppled carlos how hit -- how far his allies were willing to remain him from power. this is bloomberg. ♪

♪ >> we are learning more about the corporate crew that

dethroned carlos ghosn. new reporting reveals how far one insider and his allies where willing to go to settle scores. who is this insider and what is he said to have done? about the headng both while office carlos ghosn was there and later and our reporting, based on , as wells, documents as video footage, shows that from before the arrest, they him efforts made to remove that appeared to have little to do with the crimes in question. afterwards, there was a purge of swords within nissan -- of sorts

within nissan in which he was involved in even now, a year and a half later, under new management, there are still things happening such as retribution against a whistleblower who questioned the involvement in nissan's internal investigation and for the first time, we have lay that out. -- laid that out. retaliation,, the how is it important in the broader context of this story? >> one of the key things to think about, whether or not there is ever a verdict or determination as to the guilt of carlos ghosn and the director who was arrested alongside him, there are actions that were that within the company sort of undermine some of their

central assertions in that is backed up by some of the reporting that we have. it goes to the question of corporate governance and accountability by the board and this is part of an effort to provide some transparency for shareholders. >> what is next year? -- here? have a trial of kelly, who was arrested. we will learn more facts. , the discoveries will be influenced by how nissan went about building its case and evidence against kelly and carlos ghosn and much of that we will see come out of trial. senior editor there with the

latest in tokyo. a chinese carmaker jumped 41% on raising $1.5er billion in its ipo. the president told us that the u.s. is the best venue to raise funds despite tensions with beijing and scrutiny over tiny listings. there are all kinds of risks, geopolitics, the market risks, but at the moment, we believe this is the best venue to pursue given our focus of planning the right investors. >> talk about the demand you have seen for the stock. what is driving that demand? >> i think the demand comes from all over the world. there is the inflection point we at in the markets looking

the energy. , all the blue-chip names, which is where we are happy and proud of. >> we are seeing nearly all the chinese listings in the u.s. bump of the range. is that a question of liquidity, buying into the chinese tech story despite tensions? >> i think china has an and they haveket exciting technologies and business models. ,nvestors recognize the growth recognize the development of the technology as well as our business model that is different from other parts of the world. people see this as a tremendous opportunity. >> where you able to price above the rain?

you are placing at $15 a share. were you surprised by that? what is it enabling you to do now? >> it is a happy ending for us. we had high hopes for our ipo and attracting the most sophisticated and high conviction investors is our goal. phase, itunding allows us to have more flexibility are pursuing our business model and additional investments in the area of r&d, brand building, and the service element of our network. we can do much more with the funding behind us. arehe priorities, you raising $1.5 billion from the share sales. it's are indeed a priority? been one oflways

the most important areas to focus on and if you look at the past, we spent more money than any other areas. to half of our staff is in r&d, which is different from our peers. i think this is going to be in our dna and the r&d for automotive products and also can activities. >> how much marketshare do you expect to carve out in the medium-term? expect -- our view will be a concentrated market and top maybes will be commending six players. we hope to be one of those in china. >> does this make you a threat to test? tesla is a good company that

together we are converting this auto market to a smart ed market. it is exciting to see cool products, real technology that is changing the consumer landscape in china and together, we can do better and faster conversion and that will be exciting. >> we have seen a pickup in demand for electric vehicles in china in the last few months. is that going to be sustained or is that down to subsidies? >> the subsidy has been year and in the past this year as well. however, more importantly, you start to see companies like tesla, like others rolling out innovative products and exciting to consumers. that is what is driving the sales. -- iect sales momentum's

expect sales momentum -- we are at the beginning of this space. there is a lot of room to grow. >> can you give us a sense of where you see sales? >> i can't give you guidance given we are about to list. we have a strong conviction of the growth and we are hopeful with our launch recently, we will have exciting growth in our sales numbers. chairmans the vice speaking to the bloomberg coanchor. now a latest check of the business flash headlines. biggestyce posted its loss. it shares slumped as much as 10% in london on the 5.5 billion pound launch. rolls-royce aims to raise 2 billion pounds from selling assets and other options. the company relies on engine maintenance which has been

slashed by the pandemic. >> china's biggest airlines report earnings later aviation looking to the mainland for encouragement after the coronavirus crippled air travel. eastern, andina china southern will report losses. results may show recovering demand things to china's domestic markets. sinus traffic numbers in july were up 25%. -- china's traffic numbers were up 25% from june. the second quarter sales, 51% from a year ago to $226 million. allowances for impairment losses on loans and debt rose fourfold to $430 million. >> coming up, exclusive

interview with the singaporean trade and industry minister on the impact of the pandemic as the city faces its worst recession. we will be joined by one of the most profitable gaming companies along with us to talk about the latest results, the outlook in asia. we will hear from the chairman about the chinese vaccine, geopolitical tensions, and more. the market open is upon us next. this is bloomberg. ♪

♪ shery: welcome to daybreak: asia. asia's major markets have just opened for trade. investors are weighing a fed policy shift. a fourth session. wants $30 billion for its u.s. operations. microsoft will challenge oracle

for the buyout. president trump will address the republican national convention later. he will say american cannot -- americans cannot trust joe biden. >> let's get a quick check of markets. the nikkei is opening higher. real estate and to lily's gaining ground. tech has a little bit of pressure weighing on the index. the japanese yen trading at the weakest level in two weeks. we also had inflation numbers. expectations. that is a signal for national prices later this month. the bank of korea slashed gdp

outlook. the kospi has been gaining. see gainingto strength and momentum for the korean won since march. broader dull weakness is continuing to play out. up when itat the set comes to trading just starting here in sydney. the market opened just a bit lower. the 10 year yield ticking up a little bit. we are just coming to the end of early -- earnings season and australia. it has not been bad with a few surprises. -- plunging to the lowest in three years.

the u.s. yield was the big story overnight. a hugely dovish position was perceived to come from jay powell. the s&p reached an all-time high for the straight session. what are the long-term implications of what jay powell said today? >> you pointed out that the move in the u.s. bond market , you had fairly significant moves down. what did to take away,

jay powell tell us that we didn't already know or expect? this is been a well telegraphed change. you are already in the bear camp, there wasn't anything to move you out. if you continue to expect further dollar decline, there is and someey to be made of the bond areas. it from an equities perspective, it doesn't change things. we know the fed has got your back. we have known that for a long time. it is still a question of where you are looking for value. clearly, there are some areas of asia that seem cheap on a relative basis to their own history and the u.s. and particular. australiaappeal of

rising as well? that is just one example of how fearful people were going into an earnings season where it was so difficult for companies to telegraph how their businesses are going to perform. taking ainvestors lesson from a profit season that hasn't been totally terrible. weakness.nty of you are seeing a decline in bearish bets. the rba is still there. rates are close to zero. there is enough policy support on the fiscal side. as long as you avoided companies that have eight deteriorating outlook, there is plenty of opportunity still to be made given the fact that the central bank and the government are still providing that liquidity.

>> that was our global markets editor. up next, singapore's minister for trade and industry joins us exclusively to discuss the long road to recovery. and the impact that covid-19 has had on their operations. this is bloomberg. ♪

♪ shery: you are watching daybreak: asia. the new zealand stock exchange failed to resume trading for a fourth day on friday amid suspected cyberattacks. tuesdayuption began on making stock prices unavailable. it says it is working with its network provider and cyber security experts to fix the problem. the pre-open was extended.

formally accept the nomination later asking for another four years in office. he will speak from the south lawn of the oval office. he will say that the country cannot trust joe biden or the democrats to handle the coronavirus. the president was ready to cancel his speech because of hurricane laura but he will go ahead as the storm moves away. president trump has attacked thursday's sports what caught calling the nba a political organization. other sports matches were canceled as the players protested the police shooting of jacob blake. have agreed to resume playing. left a wakeura has of destruction. insurance estimates are as high

as $15 billion. it had wins above 240 kilometers per hour killing at least four people. much of the u.s. gulf oil industry shut down as hurricane approached. we are getting breaking news. capital one has lowered its card limits amid the u.s. impasse on jobless a. again, capital one is lowering its card limits. we will get you more details in just a moment. singapore isme, reeling from a previous circuit breaker restriction as part of the lot down. let's crossover to our markets.

it is already in a technical recession. not surprising, for stimulus packages have been announced. that's in $73 billion u.s.. hows get a look at effective the stimulus measures have been so far. thank you for this exclusive interview. i am wondering how much success you have had with stimulus package. what kind of impact have you seen? >> we are quite happy with the program. the trajectory it will depend on three sets of factors. two of which are within our control and one depends on the next. let me briefly share these factors. for the domestic economy, the

domestic consumption, all of those recover progressively. that in thedent third and fourth quarter, we will see a recovery barring any unforeseen circumstances. that is within our control to resume work safely. the second set of factors has to do with external demand. that is a bit harder for us to control. that very much depends on the global situation and how the major economic control -- within the country and the further disruption to the global supply chain. the third set of factors is also within our control. that is how we use the resources preserve the capability while -- the capacity to see the demand resume. we are also using the resources

and workers pivot to new markets or those who have been permanently changed by the covid-19 situation. we are quietly confident that we will get through this and we will take the necessary steps to make sure we prepare ourselves for the new environment and not waiting for the covid-19 to go away. >> you have been quite encouraged by the stimulus. is there reason to think that you could need further stimulus after what was announced? >> i wouldn't work -- use the word stimulus. i think there were three factors within our control. the first set of factors is not about stimulus, it is about resuming safety. the second has to do with external demand. factors is howf we use our resources to help our companies affected by covid to

pivot to new markets and new products. that is where most of the work will focus. the faster we are able to pivot to new markets, the faster we get out of the sectors that have been permanently changed. the better will be our prospect in the new market. >> you talk about helping companies. those that needs help is singapore airlines. -- will singapore help the airlines? and the parent company are doing well managing the situation. we will look closely to see what they need. airline, it ishe about the issue of singapore as a financial hub. we will do what we can to strengthen our position.

last --why over the next week's you will hear about how we are going to progressively reopen our link to the rest of the world and continue to allow tourists to come to singapore. it is critical to our position. we will do this -- just this week as well, singapore raised the minimum employment -- i am just wondering how much will this cost for companies working out of the lion city? >> it will add to some companies, but we are making a move toward quality rather than quantity. this is what we have done progressively over the years. conditionsomic the-for, we will adjust

employees coming into singapore. the reason is this. toward increasingly move the high sectors. the recent adjustment that was announced yesterday will not impact our openness to talent around the world. we want to create more space for the people at the very top. those jobs that can be done by --gaporeans >> there is still concern among companies that perhaps singapore will give priority to the locals given that the recession is taking the weight jobs. what message are you sending to foreign companies, the workers who currently feel the pressure

that they could possibly be losing their jobs? >> our message to the world is simple. singapore will remain open and connected with the world. we will continue to welcome foreign pump meant to our workforce. especially the higher quality. i want to touch on the virus cases. anderms of putting a lid maintaining the success you have seen, how confident are you that the measures implemented right now are sufficient to ensure that there is no resurgence in cases. >> we are not complacent. we are very aware of the resurgence of cases in many other countries. that is why we are making sure that everything we do can be done in a safe and sustainable manner. the less than we want to do is casessituation where

recur and we have to shut down parts of the economy. what we have done is to make sure we do this progressively. we have put in place a rigorous contact tracing system so in case there are cases appearing in one particular sector, we can isolate the cases in that sector without affecting the rest of the economy. that is critical to how we can restart our economy in a safe and sustainable way. we have done a lot to make sure -- soe all of the cases we will control the population progressively make sure there is regular testing for the foreign workers to make sure we are able to can -- detect the cases early for it starts to spread. thank today. your insightsor

today. next, a chinese electric cart startup rocketed more than 40% on its trading debut. we hear from the vice chairman and president. this is bloomberg. ♪

>> let's take a look at where australian bond markets are reacting to jay powell dovish comments overnight. willingness to allow for potential overshoot. we are seeing that move when it comes to the aussie 10 year bond. it climbed extending the opening losses. is 10 year bond feature

under pressure as well. new zealand, we see the 10 year yield. ten-year on the longer end of the range as well as the 20 year is the highest and more than 10 weeks. let's turn to chinese automaker xpeng motors. our china correspondent spoke to their vice chairman and president who told us the u.s. is still the best venue to raise funds despite tensions with beijing and scrutiny of chinese listings. >> there are definitely all kinds of risks. geopolitics, the market risk. at the moment, we believe for the company this is the best venue to pursue given our focus

of finding the best investors. >> tell us about the demand you have seen for the stock. where is that coming from? what is driving that demand? >> the demand is coming from all over the world. big inflection point in the capital market. time, we attracted probably all of the top probably blue-chip names. >> we are seeing nearly all of the chinese listed company in the u.s. pricing above the range. is that a question of liquidity? buying into the chinese tech story? what is behind that? >> china clearly has a very attractive market. have allrs in china been developing exciting technology. investors recognize the growth.

the development of the technology as well as our innovative business model that is slightly different from other parts of the world. people see this as a tremendous opportunity. >> you were able to price above the range. 11-13 u.s.ange of dollars. you are trading at $15 per share. what is that enabling you to do? it is a very happy ending for us. we obviously had high hopes for the ipo. attracting investors was our goal. now with the funding in place, it allows us to have a lot more flexibility of pursuing our business model and additional investment in r&d, self marketing, brand building, and also build out the service channel to our network.

all of that we can do with the funding behind us. then, r&d.rities is that the front and center priority? >> r&d has always been one of the most important areas for us to focus on. if you look at the past, we probably spent more there than any other area. close to half of our staff is in r&d which is very different from the rest of our peers. going forward, this is going to be in our dna. not only the r&d of automotive automatic driving and conductivity. we expect the top players and ev,a will concentrate smart

our view will be a concentrated market and i think our top players will each be commanding 10% of the market share. we hope to be one of those top players and china. >> does this make you a threat to tesla? >> tesla is a very good company. thisher, we are converting auto market to a smart ev market. the products with real technology will differentiate the user experience that is changing the consumer landscape and china. together, we can do a lot better and faster conversion and that will be a very exciting future for us. >> we have seen a pickup for demand and electric vehicles in china. is that going to be sustained going forward? or is that down to price cuts? >> the subsidy has been declining in the past year and this year as well.

however, more importantly, you start to see companies like xpeng and tesla and others, technical logical he innovative products. that is what is driving the sale. i expect the sales momentum for smart ev will grow. the verye are at beginning of this space. there is a lot of room to grow. >> where do you see sales by the end of the year? >> i cannot give you any guidance, given that we are about to list. we have strong conviction of the growth and we are also very hopeful that with our launch recently, we will have exciting growth in sales numbers. that was the xpeng vice chairman and president. later today, we will be speaking

exclusively about eight chinese conglomerate. lots more to come. this is bloomberg. ♪

letting inflation and employment run higher in an industry that was expected to keep rates low for a while. implies pressures to overshoot. he says full employment is an inclusive goal. india had another single day record as the coronavirus cases topped more than 75,000 infections. fatalities rose more than a thousand pushing india toward the worst infection world record

after the u.s.. hong kong is expected to relax covid restrictions allowing for dining in at restaurants and also beauty parlors and sports venues to open. shinzo abe will address the public later about his health. he made two trips to the hospital in the last few days triggering speculation that he might be forced to step down. the cabinet secretary consists that shinzo abe will complete his current term as leader. the u.s.,e in president trump will be speaking from the white house to a crowd of hundreds when he accepts the republican nomination for a second term. let's go to our chief washington correspondent who was at the white house about what to expect on this final night of the rnc.

what are you expecting? >> three things. president trump is going to talk about the economy and tried to portray democrats as being too far left. to get more tax relief as well as deregulation on geopolitics. he is going to draw a sharp contrast to how his administration will deal with china. this is anenes, opportunity for the president to speak directly to the unrest happening in kenosha, wisconsin. he is going to talk about the racial unrest in the united states. he is also going to offer support for the police officers as well. quite >> what is going to be the take away as we get to the final

night of the convention this year? it almost feels like president trump is just laying the groundwork for almost a little battle going into november. >> right now is the final sprint until election day on november 3. it is not just a national audience. all-important races whoever wins on november 3 and becomes president or keeps the presidency is going to have to work with what could be a divided congress or democrats are looking to control the senate. in keyf policies at play battleground states. he senate races that republicans and democrats are trying to make inroads for as well. another key development in the last couple of hours, speaking at a closed-door fundraiser, joe biden suggested he would

actually take the campaign trail and that he might leave campaign headquarters or his home in delaware and participate in rallies. that is a shocking revelation from a candidate who ever since the pandemic has kept out of you from public displays of rallies. from have also heard kamala harris delivering a speech in washington. messaging thathe the democrats are putting out there and how successful it has been so far. , the democratis from california, she is arguing that the white house and publicans watched their response to the coronavirus but it is not clear what specific actions the democrats would have taken. polls suggest the overwhelming majority of americans disapprove of how the president has handled the pandemic. however, he is still up

significantly. in terms of who voters trust to lead with the economy. it is a classic collision course of two competing narratives in terms of the medical as well as economic. the trump administration all week long at this convention has been trying to make the case that they acted decisively when the virus first emerged from china and that they have been trying to hold china accountable ever since. was bloomberg chief washington correspondent. our special coverage of the convention continues into the next hour on bloomberg tv. you can catch that starting at 9 a.m. hong kong time. shery: breaking news out of south korea. they have come out with the case number of coronavirus. cases for a71 new total of 19,077.

these new cases are a decline from the previous day when we saw or than 400 cases. we are keeping a close eye on the coronavirus infections in south korea. they have maintained their social distancing for one more week. that would be level two restrictions prohibiting indoor gatherings of more than 50 people. is blasting china again for its coronavirus response saying beijing's decision not to cut off travel to the u.s. was deliberate. in an exclusive interview, he touted president trumps track record on china over the past four years and gave his thoughts on the future of relations if trump is reelected. china, a lot has been accomplished. on the enforcement side, we really have been enforcing quite

vigorously. you are familiar with the actions we have taken on huawei. you are familiar with the actions we have taken on the te. two major companies. we are working hard on the semi conductor part of because while china does have technology, we still have the best software design and the best fabrication equipment for semi conductors. theme trying to avoid taking unfair advantage of our technology. technology is really important because while protecting like steel and aluminum help take care of today's world, technology is tomorrow's world. that is a big deal. very recently, we put on the entity list of 500 companies

since 2017. a lot of those are chinese companies. that's because they are the ones that seem to be doing the most to violate sanctions. to violate here and right. most recently, -- two violate human rights. most recently, to violate hong kong. that has been a big series. then, you have the tariffs. that weion 301 tariffs imposed on china. the cumulative effect of all of this is enormously greater ban the long-term cumulative effect of everything that had been done before donald trump. >> speaking of china and technology, we have the tiktok issue. various companies have expressed an interest. i am told acro soft, walmart, and oracle have all expressed an interest.

what are the criteria you used to decide if any of these make sense? >> the fundamental idea is that we don't want detailed personal information on all of our teenage children who are the main users of tiktok. we don't want that information to become part of the big tonese database to use infiltrate our country. that is the principal objective. whether it should be microsoft or oracle or someone else, that decide.for them to ♪ the tiktok people are essentially operating in the u.s. and a couple of other non-chinese countries. tiktok does not really operate in china. there will be no particular impact on chinese apps as a

result of whatever we do with tiktok. , my own preference personal preference would be to have tiktok acquired by one of these american companies. that would have the fringe benefit of not only helping from a national security point of view but creating more areas ofon in the facebook and social media. that is a healthy thing. competition is a very good thing that makes american industry thought -- thrive. ross speakinglbur to david westin. three lenders report. the head of china fig research is with us next. this is bloomberg. ♪

>> let's take a look at the markets. u.s. stocks continue to go gangbusters. targetingion framework set out by jay powell at the virtual jackson hole summit. up.nikkei 225

we expect to hear from shinzo abe later addressing the speculation over his health concerns as well as vexing procurement transfer japan. in south korea, we are seeing robust gains despite newest case numbers coming through. cases potentially complicating the outlook for level two social distancing measures and the prospect of an economic recovery. in australia, we are seeing down. overnight, in the u.s., the 10 -- yields0 year bonds are both up. shery: let's turn to china for

banks areargest expected to report. -- deferring payments and releasing unsecured lending to businesses struggling. our next guest says that earnings likely bottomed in the second half. great to have you with us. what are you expecting this quarter given all of the pressure that these banks have placed not only in trying to help the economy but the government urging them to do more? for china banks, -- here we see the gdp increase euro and year.

looking in the second half, we expected they would bottom out. declined largely under regulatory guidance we are trying to deliver the message that china banks are helping the economy. they also need to consider the bank's capital. for example, we think that in the worst case, cha bas would be guided to reduce profit by 20-25%. that is quite a reduction would hurt banks capital even without any dividend payout which would be harmful. also liquidity growth continues to recover like what happened in june and july. thanks would see this pressure to reduce [indiscernible] in the second half.

the guidance is --ically usually set targets if they guided for 10% year on year profit decline which is what we think there is a high possibility of 5-15% decline. anyway, a decline in the second quarter. >> what does this mean for dividend payout ratios? >> basically, the payout ratio would be decided in february to march next year.

if the gdp growth covers and the regulatory, if the profit -- then there is a high probability that it would pay dividend as regular. if there profit declines more than 10% or even like 20-25%, we expect they don't pay dividend at all this year. --ever since the economy bank profits should be in line with or slower than the gdp growth. if the gdp growth continues to recover in the second half of then wer, and next year would see probably the banks profit would recover as well. with historically low prices for some of these banking names, where do you see these

valuations and opportunities particularly if there is a? over how the reporting is? it is quite low currently. 0.66. it is actually at a historical low for hong kong traded banks. however, some people believe that it is related to china banks ratio. for example, we are considering a profit decline for this year. banksight think that would adjust your position. --know that according to the provision they would need to be based on each potential loss

which ties to the npi ratio. in the second quarter, we see that banks generally report a moderate increase in ratio and a theht incline and cuts in ratio and another ratio. questiong with another is how real the chinese banks ratio could be. [indiscernible] in the several years, the growth and formation is 2% every year. of total dispose 2% long growth which keeps their final ratio quite stable. however, -- >> i'm sorry we will have to leave you there. we appreciate your time.

we have lots more ahead. this is bloomberg.

when do you expect to return to pre-covid levels? did quitecan see, we well with a net profit. cry from, it is a far the profit in 2019. we have recovered very well. the three months of -- since then, things have turned quite well.

we are approaching 90% of our pre-covid volumes. things are picking up quite well. nagacorp market is very different to other markets in singapore. they are very much dependent on the visitation population. with us being located in a nonpaying, we are dependent on the resident market. that is a very strong market for us. we have been able to recover fairly quickly. about 80% of our previous levels. >> do you think that level of growth is sustainable given that

we are looking at international borders remaining closed probably well into next year? the restrictions will definitely play a big part in how fast we recover. usn the domestic market for -- sustain for a second half as well. ofwe look at the first half court is the only profitable naming company in asia. is only --a court the only profitable gaming listed company in asia. whore ahead of our peers have had hundreds of millions and losses. we think we will continue to be

able to sustain our profitability for the end of the year. >> how much will you be pressured on the operational cost side of things even the extra precautions you have to take because of covid-19? >> in terms of covid-19 social distancing, hygiene measures. one of the key reasons why we have been able to recover , ackly is because nagacorp lot of gave in companies in asia -- aiming companies in asia, there is no stiction on capacity nor is there a restriction on tables or it by implementing social distancing like spacing tables and closing down some machines, -- we have been able to recover quite quickly.

the covid-19 mitigation measures. quickly, progress on russia has it been impacted by the pandemic? >> it has been a bit of a slowdown for the time were readily -- russian effectively closed its borders. [indiscernible] four not a three, -- [indiscernible] we intend stockpiling in the stillouple of months and very much scheduled for competition in 2025. >> we appreciate your time. daybreak asia.

please stay with us. our coverage of the final night of the republican national convention is coming up next. this is bloomberg. ♪

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senator mitch mcconnell of kentucky is addressing the convention. >> they want to tell you when you can go to work. when your kids can go to school. they want to tax your job out of existence then send you a government check unemployment.