haidi: good morning and walking to daybreak us trail you. we are counting down to the asian market open. shery: and good evening from new york. i'm shery ahn. haidi: china's tiktok change worries, microsoft and walmart falling on fears they could derail the video app sale.

apple and tesla both surging, adding $100 billion to their combined market value with investors still buying. and with the country mired in a ise recession and china continuing to rise -- an australian anchor detained. shery: and a quick check on the markets -- u.s. futures kicking off in the red, down .1%. this after we saw u.s. stocks finishing the session mixed. after thatses of .8% dow component was revamped. haidi just mentioned that the stock split from apple and tesla, that having an impact. microsoft and walmart dragging the index down, china saying it could block the sale it fell on

the friday session but this was still the best august in more than 30 years. we are talking about the s&p 500's sixth straight lay monthly advance. the dollar falling over 10% since the march peak. let's see how things are shaping up for the asian markets. in hong kong -- asia,adly speaking in stocks meander lower and regional pmi's are in the spotlight. yield deepening as virus cases have been a consideration in today's gdp data likely to confirm weakness with the biggest drag on growth, today, we are going to get august trade data. 73.aussie staying above we are keeping an eye on this space, given the central bank

would lower the case on the bond straight. commodity as sex rose against the greenback and the euro is in ascendancy with hedge funds most bullish. pulling up the chart, it was a good august for asian stocks. the best month for asian stocks since 2003, but we may see a slight retreat from those levels. trading below 685 after reaching a mate between 19 in august and% the driving gains are in place even as we see u.s. china tensions ratchet up and china on the front with other countries looking a little more tense there. haidi: so we are going to get the latest on these u.s. china

and as well as australia-china tensions. detainedfficials have an australian reporter as tensions worsen over issues spanning trade, security and the handling of the coronavirus. the former trillion ambassador to china joins us now in sydney. wonderful to have you on daybreak us trail you as always. we have at the same times, the global times issuing probes into interference by china as politically motivated. is the detainment the collateral damage out of all of this? and thank youg for having me. it's too early to say. it looks like that on the surface but let's hope it's not.

the relations to even a lower depths that it has reached. is the foreign minister doing enough to secure her release westmark what would you gauge is happening behind the scenes given it was known she was detained for at least two weeks now? >> i think there has been a lot of activity behind the scenes culminating in the announcement. think the foreign minister is doing the right thing, sticking which is probably a low-profile approach in public and reinforcing the statement yesterday their confidence in china's due process. theseget is important matters are handled behind the scenes and i'm sure there's in a

norma's amount of activity going around at the embassy and higher up levels. does the symbol of the way this is being carried out alarm you? foreign media and foreign journalists working for overseas networks targeted and have a difficult time when it comes to visa rules and censorship in such while working in china, but this is a journalist who has had a long tenure at state-run television. that nos tell you foreign person in china at the moment is safe? >> that could be one way to read it. it is still too early, i think. her very well, she's a personal friend, so it's distressing to see what has happened. it's a very sensitive role in chinese state run media. anotherld have targeted

australian journalist, but this is the game they are playing. i would have to reserve judgment for the time being, but it is a powerful message being sent. how does australia go from here? we have seen a steady ratcheting up of tensions and we are looking at a second probe into australian wine. we saw the announcement of the inquiry into australian universities earlier this week. quicklysurprise you how relations have deteriorated and how -- we have to wait until after the november elections for a better gauge? the first part does not surprise me. we are in a very serious tit for tat downward spiral. i think fault lies on both sides. you will recall last week for some unexplained reason, the treasurer decided to stop a

major chinese dairy company acquiring a japanese owned dairy business. it was simply a sale from a japanese company to a chinese company. it's hard to see a cow as being of national security interest. that's the state the relationship has now reached. the day after the chinese embassy made a conciliatory prime minister announced a review of agreements made by states and universities and for foreign governments, please read china. so there is a tit-for-tat downward spiral going on and it's hard to see where the floor of this is because there's no contact directly between the prime minister and the trade minister and their chinese counterparts. we are seeing the

tensions between china and australia and the military standoff between china and india continue with the u.s. and u.k., also canada. how big of a risk is it for beijing if we have a biden presidency and the launch of a multilateral alliance that could pressure the chinese government and china's foreign policy? >> i think a biden presidency would be a great concern to beijing, precisely for the point you make that a biden presidency will be much more assiduous and cultivating the alliance relationships. europe, china will have to recognize they will face a much more united front if they try to continue their assertive behavior. there are real risks here. but the trump administration will continue to keep the pressure on china. how far istion is

beijing prepared to keep pushing on the limits of tolerance of neighboring states and the international community more generally? haidi: great having you with us. the former australian advancer to china. you can get more on that story. your dayb on terminal. for now, let's turn to the first word headlines. >> india has reported the biggest economic infraction among countries with a surge of covid-19 dragging on the prospects for economy. sharpest falle since new delhi began publishing figures in 1996 and worse than any nation tracked by bloomberg. the median estimate was a contraction of 18%.

seewhile, germany is set to economic fallout from coronavirus not being as bad as expected. the government said the economy would contract by 6% before rebounding by 5%. that would be germany's worst recession since world war ii. the economy minister will present the new forecast later tuesday in berlin. italy has seen its economy shrink by more than previously forecast. with virus lockdowns hammering growth, the statistics bureau said the decline was almost 13% june. three months since the figures are worse than expected and the italian economy is 17.7% smaller than it was one year ago. 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'm karina mitchell. this is bloomberg. back to you.

, it has beenahead a heavy week in australia. we have all the market -- all the analysis from rbc capital markets. president trump resumes its white house briefings as u.s. coronavirus cases top 6 million. this is bloomberg. ♪

haidi: we are getting breaking news from yum china, announcing trading in their hong kong share is expected to begin on september 10. yum china holdings had announced the launch of its hong kong public offering, forming part of its global offering of shares of common stocks and listing on the main board of the stock exchange of hong kong. they will continue to be listed on the new york stock exchange as well.

so we are looking at the offer price initially set at no more than 468 hong kong dollars. they are looking to seek up to 2.5 oh yen dollars from the mega stock offering. this is part of the wave of firms seeking if not isolated as well as home being traded in yum china. shery: as tensions continue between china and the united states, let's turn to what's happening here in the u.s. president trump has resumed his daily white house re-thing where he spoke ruefully about the front of iris before attacking joe biden over the protests in oregon. let's get the details from our white house reporter, emily wilkins. at one point, he suggested the kenosha shooter may have acted in self defense. really this briefing coming at a time when we continue to see

those clashes in major american cities. we are seeing from president trump today is almost a continuation of what we saw last week with the republican national convention. we are still very much on topic about violence come about law and order, this is something republicans have started pushing and it is something we have now seen the polls respond to. president trump is closing his lead on joe biden for the november election and it seems like a lot of people are responding to the fact that they are seeing images of these protests which are accompanied by riots and violence and are worried about the violence that they are seeing on tv. haidi: in terms of the handling of the virus, are we seeing better opportunities for president trump to take a more positive view going into the election? what are the numbers across the country? at 6: we are looking

million cases today in the united states. a particular hotspot is college campuses. we see the number of out rake of cases there as students begin to return for a school year. some schools have decided to not hold in person classes but students are still returning to classes. shouldhave advised they contain the students on the campus instead of letting them go back home instead of -- where they could cause the virus to spread further. emily wilkins there in washington. coming up, the s&p 500 has enjoyed its best august since 19 86. we look at what the markets face next with the global head of asset allocation at wells fargo and investment institute. this is bluebird. -- this is bloomberg. ♪

i knew intraday high as apple announced a four for one split at the end of july while tesla said on august 10 it was planning a five to one division. both came in during trading on monday. one analyst it was a smart move and expect other tech companies to do the same in the covenant -- in the coming months. a giant stepken toward remote delivery by becoming a handful of company certified to operate as a drone airline. the faa has designated amazon prime air as an air carrier, allowing it to begin commercial deliveries in a trial program. they must clear regulatory and technical hurdles before packages can be routinely dropped at homes or businesses. company boosting the size of its fundraising program amid an investor led frenzy for electric vehicles.

than 88any sold more million adrs come having initially planned to offer only 75 million. earlier this year, they one and investment from a city in china. american airlines is following united and delta by adding a $200 fee for changing. it does not apply to basic economy tickets and covers flights to canada, mexico, puerto rico and the caribbean. charges up to $750 for its national destinations remain. august is in the book for the markets. the s&p 500 climbed 7%, its fifth straight monthly game and the indices best august and 34 years. could all these gains now mean volatility later in the year as the vix curves suggests western

mark joining us to discuss this is tracie mcmillion's, lowball head of asset allocation that wells fargo investment institute. see thenue to steepening vix curve at a time when we are entering a seasonally weak time and on top of that, we don't necessarily have another round of stimulus measures in the u.s. what can we expect in the next couple of months? tracie: thank you for having me. followingation is such a strong month and really such a strong recovery since we march, weough back in think we could see some turbulence over the next few months. we are entering a seasonally weaker time with that elections on the horizon and we are entering the fall and there could be some coronavirus that could also start

to worry market participants. that mean inoes terms of asset allocation? where do you go for volatility? investors suggest look at their long-term allocations and targets for equity and fixed income and reevaluate whether or not there -- they are positioned for the amount of risk that they are willing to take in their portfolios. if you look at some of the indices over the last few months trough, large caps are at 58% and that could mean there is some imbalances in the portfolio, so we say rebalance into your fixed income assets if your equities are overweight. may be an opportunity to invest some cash sure pull out some of your fixed income and get it at

a lower price. haidi: what kind of indicators do you need to see when we see recovery in the beaten down sectors? tracie: we definitely want to see some broadening out of the some ofd we want to see the equities that have been start andre also that's going to take an improvement in the economic data. we are getting some economic data in the u.s. that can let us know we are on track. they are checkpoints along the way and we are getting ism numbers come a payroll data later on and we want to see we are headed in the right direction and not too far off trend and in keeping our eyes

looking forward to a point where we see earnings start to recover , we see growth starting to recover, and that's going to tell us that we probably are on the right track here. throw up ant to chart and get your views on political volatility going into november. this is showing the lead for biden starting to narrow in terms of who will win the presidential election come november. we also heard from j.p. morgan saying investors should start positioning for rising odds we will see another four years of president trump. what are the implications two different sectors for pandemic stocks if that is the case given it seems like a continuation of the status quo would be positive for markets for the exchange?

given our analysis going dow index26, just the is an indicator of how elections may go, what we tend to see is along a 1% toack aboutn for the year until september. about 4% onre up the s&p 500 so far this year and we start to see a divergence. if the candidate who is in the white house is going to win, then markets tend to keep going higher and if not come at a start to trend lower. so we really haven't gotten to the point where we see that inflection yet, so the market is not telling us what it is anticipating yet, but that's a good think to watch.

continuation see a of the policy we have in place today, we continue to like information technology, coming occasions services, consumer discretionary, and all of those are pandemic plays, if you will. they are also technology growth plays and in an environment where you have low but positive growth, we think that was will be the sectors that will outperform. as well as health care. we think this coronavirus going to mean there's going to be more investment in health care. haidi: we appreciate your time. asset noble head of allocation at wells fargo investment institute. still to come, we will preview the gdp data.

exclusive some other interviews coming up. we will speak with charles lee. this is bloomberg. ♪

haidi: we are getting some australian data crossing the board -- the index coming through for the month of the -- for the month of august, falling into contractionary territory. production down by three points in new orders down by over six points and stocks falling 44.9. unsurprising when you take a look at the fact that this is a time that covers lockdown in victoria where all nonessential comeacturing activity has

to a halt. we are looking ahead to the reserve bank of australia. they were expecting to keep the cash on hold with that record low. monetary policy must do the heavy lifting for an economy with the major trading partner us now from joins rbc capital markets. ourave been talking about top story today, which is the -- theent of the is australian news anchor. how does this paint a picture when it comes to the trade relation and economic relationship going forward, particularly as reliant as australia is on chinese growth. >> it is clearly a worrying element in what has been an increasingly tense relationship between australia and china for some time now.

that's deteriorated further this year. it adds to the uncertainty and i think for markets, that's never a good thing. limitedrs to have impact so far. we will get data that shows a strong export component. see a large current account surplus, so thanks to commodity prices and the aussie dollar has shrugged off any kind of increasing concern, pushing 270 four cents overnight. so far, a limited impact on markets. a impact nonetheless. starting to see a bifurcated recovery? i'm wondering what the likes of victoria's going to do if there's no international students, no tourism versus western australia where we are starting to see another revival of the mining boom? su-lin: there is very much

varying performances going across the state of us trillion. i guess the way we would characterize it is the renewed -- inctions in tory a victoria. most states were starting to and up with employment confidence coming back. over a quarterit of employment, so the lockdown absolutely setback the recovery. the bounce in activity we had anticipated this quarter is unlikely to be much of a bounce at all or very modest growth. it definitely sets it back, so we see other parts of australia as a good example whereby it is pre-ting pretty much at -covid type levels and there's disparate some

movement. overall, what is important is there is a recovery. it is pretty modest because of victoria and it means government in the rba need to go forward. shery: what sort of fiscal measures do you want to see when the government announces its budget in october? we thinke thinks -- there needs to be a surge forward for the fragile recovery. we would like to see an extension, further extension of the job seeker program for the unemployed. that runs out at the end of this year. we would also like to see additional measures when it comes to housing and infrastructure and the bringing forward of the next stage of the that were cuts introduced in 2022, bringing them forward would make a lot of sense and increase competitiveness and help from the overall confidence

perspective. there's a raft of measures the commonwealth can do in the states as well. australia is quite fortunate. the rolento 2020 at level with a balanced budget and our debt levels are very low by international standards. fiscal policy seems to be doing the heavy lifting. what do we expect from the rba investors? they don't expect much at least when it comes to the cash rate. su-lin: no they don't and it's fiscal policy that has to do more and could be more effective at this stage of the cycle, much more targeted. but we don't think that goes for the rba. they won't stand by if activity underwhelm's. they will continue to lend support and we have seen bond buying from them to send the signal that they are there and they have the scope to do more if needed, whether by stepping

up their bond purchases, tinkering with the yield curve target, and other measures as well. from the bank, following its board meeting, we will be interested to see what they say about the currency. higher thany a bit they would like. they are partly can bidding to it even with their dovish tone and policy action, especially versus the fed. it's common around this australian dollar which pushed through overnight will be interesting. great having you with us. the rbc capital market chief economist there in sydney. let's get to the first word news with karina mitchell. karina: we talked about the latest covid-19 data -- cases heading toward 26 million with the u.s. tally above 6 million. astrazeneca has begun wide red

human testing on a vaccine america while the european union is to contribute 400 million euros to secure covid-19 shots and ensure equal access. meanwhile, canada is buying 100 million vaccine treatments from novavax and johnson & johnson. the who says the only solution is unity. hong kong is launching a mass coronavirus testing plan next tuesday amid calls from activists and health care workers for what caught. half a million residents have volunteered for the tests which will be conducted with help from china. it's billed as an attempt to ward off a new wave of covid-19 infections but critics are wary of the government motives amid widening government mistrust. damage from hurricane laura in the gulf coast and caribbean is expected to cost insurers as much as $9 billion according to two risk modeling firms. laura came ashore as a category four hurricane with most of its damage spread across louisiana.

however, the storm surge was not as powerful as first feared. 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'm karina mitchell. this is bloomberg. come, tesla has entered a combined $100. we will take a closer look next. this is bloomberg. ♪

shery: the tech rally rumbles on in the u.s. but in asia, looks like we are getting ready to start the stocks trading. we are looking at a bit of a retreat. japan, nikkei futures are under pressure after the encz mark managed to see a this has more details on the lbp leadership rates. the case for value stocks in japan is what i want to highlight today. oner warren buffett's bit japanese trading companies -- this could be a bet on economic cycles bottoming out and for investors that may find the topics attractive with about 37% of the index made up of value

place. as illustrated by the chart on the terminal, japanese stocks are trading at a steep discount on a pe basis and trading below their historical average. since shinzo abe returned, the topix has outperformed every global benchmark except the s&p 500. apple and's turn to tesla because they grabbed the spotlight in the u.s. during the trading session in new york. the soaring to records as respective stock splits took effect. su keenan is following all the action. muskally for elon leapfrogged ahead of other billionaires in the rankings. in particular, he leapfrogged over mark zuckerberg. let's get to apple because nothing like a stock split to spur buying among retail investors and that's what we saw in the latest session. it was a 441 stock split taking

effect for apple and even though the splits do not -- do not affect the intrinsic value of the company are chains the economics, retail investors tend to take this as a bullish sign and helped push apple to 76% gains year to date. check out tesla's stock -- a similar surge where a five for one stock split took effect, pushing the stock up 12% on the day, close to a 5% gain year to date and both companies added a combined $100 billion value in this latest surge. let's talk about what happens for elon musk in the billionaire rankings. he is now right behind jeff asus numberl gates to rank as three for the richest person in the world. hastesla ceo's net worth increased 80 billion this year and surpassed mark zuckerberg whose net worth is about $110.8

billion. worth --etwork -- net and jeff bezos'ex-wife became the world's richest woman in may. so that's the latest on that. we are also seeing these outsize performance moves by stocks considered that covid winners. dialing.been that so give us the rundown of what's up with zoom after the bell? let's go to the after hours chart because the video meeting services stock, reported quarterly sales jumped 355%. you see this stock soar by double digits in after hours loan. a has even propelled slack on software business related company, that stock up as well. we are hearing from zoom that their projections are showing there's no stopping the boom we

are seeing. it's not just tied to covid and the shutdowns, it may relate to a fundamental shift in the way a country does business. while zoom is clearly emerged as one of the covid winners, if you will, it really and a fitted from the pandemic, it saw for instance four times the amount of money in the fiscal second quarter than it did a year ago and made more money in the latest quarter than all of 2019. we are seeing some companies counted out as losers because of the pandemic actually become winners -- the cruise lines, casinos, airlines, look how they have done in august. they have owl -- they have all outperformed. we see royal cruise lines, delta and some of these other companies up 25% to 40%. market volatility caused by the covid-19 pandemic has made it tougher for companies to go public by the conventional

paths and that is play's light on special-purpose acquisition companies. company has shares jumping 13%. we spoke with the ceo from the new york stock exchange. over a yearns well plus ago in terms of do we go public, do we go to the traditional route? we happen to meet up with the collier creek guys last may, june, july of 2019 and started to talk to them about the path to going public through a spec -- through a spac and how we might be able to combine together to create this fantastic public company. we got into it before it became a hot method of going public with as much news as recently, so we are excited about it.

is something that catches my attention because in this covid environment, you are a family owned is this for more than a century and there's more focus on the public companies who have access to capital versus these family-owned , there areiness those struggling the most to survive and get the lending they need. how is going public, opening up opportunities to grow and get that are, etc.? one of the main reasons we considered going public was the access to the capital. we spent the last 10 years going after mergers and acquisitions. we bought 10 different companies over the last 10 years with the strategic goal of creating this national platform that we could succeed at and continue to grow with and so through that, we took on some of the debt because we financed it on our balance sheet. upon going public today, with a closing on friday of last week, our balance sheet is in an

excellent place and we are looking forward to the ability to continue to do more of the m&a we've done so well, making us more national, so we have a ton of access to capital and a great board of directors that have a ton of background and experience which is going to set us up for what we consider to be another 100 years of fantastic rose like we have had for the last 100 years. >> talk to us about m&a. bought a 2016, we great brand in golden flake. in 2017, we bought the venture company which had a better for you brand in it and in 2019, we extracted some assets from the conagra system which had brands in the upper northwest that really resonate out there, so we are looking at subcategories to acquire like tortillas and popcorn and better for you and

things that expand us geographically into new category adjacency, so a lot of pipeline out there for m&a. youor: in that are for category, introduction was handing out bags of chips at yankee stadium in college as a summer job. since then, consumer behavior has changed. instead of chips, we are trying to navigate into healthier items. how are you pivoting into a new consumer that's more focused on their health? dylan: the way we go to market is we have a full cadre of options and the full flavor brands are doing fantastic but we also have a good health brand more oriented toward the fy consumers. consumers.

we can offer and build and innovate around that brand and bring out angst that are more protein-oriented or plant-based, so the innovation pipeline we create around that are for you brands -- everyone likes snacks and it jumps around a lot at any given time, depending on people's diets, so we want to make sure we have a full offering to give any consumer based on what they are looking for. coming up, how companies are tackling hiring and adversity amid the pandemic. this is bloomberg. ♪

shery: the companies hit hardest by coronavirus pandemic like food services also employ people from minority groups. when itouble challenge comes to diversifying leadership positions combined with current pandemic. kevin: many are being impacted because the reality of this pandemic is one that has hit hardest those who are in jobs with the lowest income level, the education requirements, and if you are leading those types of businesses, accommodation,

food service, retail, that kind of part of the market, ceos are faced with a double challenge, which is they are responsible for jobs that are most likely to be taken by those in my worries or female. and at the same time, they are the parts of the economy that are hardest hit. that means they are having to get old and creative in what it takes to share the company in that moment. >> how do they do that? words are cheap, saying you want to increase diversity and equality is easy to say. can you give some concrete examples of companies that have implemented something that has worked? is not something that is particularly new in the agenda. many companies talk about it, but what i've seen is a re-engagement on many of the fundamentals. one thing we are seeing is how do you invest in developing and creating opportunities for, let's say black american colleagues wherefore companies

they have not joined at the same rate of progression as before. it's one of the reasons we and others have sought to make it a cornerstone of what is done. the second part is to make sure you are paying attention to the small things. one of the realities is set first promotion that makes all the difference. so early on, if people don't get promoted, the chances are they will fall behind and we have seen that is particularly true with minority groups. so what do you do? put an extra line of resource and pay extra attention to those promotions. is a big part of the challenge is often minority and other people who come and don't look like the majority are the only people in the room. they are often the only woman in the room or the only asian american in the room. so how do you bring people together and give them support in that context? i think good companies are doing that now. alix: do companies need

leadership from the government, whether the u.s. or europe where you are located to push the envelope? government has many rules to play an end government is now playing more of than it ever has done before. that context, yes, government has an important role to play. in the near term, some of those hardest hit are in sectors where incomes are lowest and education is also lowest. so those jobs in the kind of support governments around the world are providing have a disproportionate impact clearly on the people we have just been talking about. the government has to think carefully about handling that part of the economy as the cost of support, which is high, gets traded off over the course of political debate. that has an impact whether or not progress will be made in the near term. alix: inevitably, this

conversation devolves and we can't wait 40 years to solve the issue, so it feels like recruitment has to be a key decision-maker for some of these companies. have you noticed companies are recruiting differently now? kevin: yes. it's a big part of the answer, but it's also one that only takes you so far. 30 companies have signed up for this initiative and one thing we are looking at is how do we stop oning base likely -- based formal education? that's one of the barriers that stands most in the way of progress for giving opportunity to young people coming from underprivileged backgrounds and don't have the educational attainment that a paper qualification suggests. they have an education of a different kind. that was kevinsneader

speaking with alix steel. mobile trade prospects may look shaky and south korean experts for august. while the recovery seen across asia, most pmi's have wallowed in contractionary territory. in australia, the rba is expected to keep the key rate .nd main policy on focus from japan, the child -- the jobless rate is expect good to have risen to 3% as the virus curbs job offers in services. haidi: coming up, we are speaking to carrie greg who is looking beyond the august stock rally. bringing a business perspective to abe's successor. tesla nine youd

as the companies split their stocks. exclusive'sl have coverage of the tech summit in hong kong. ♪ so you're a small business,

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yup, the best really did get better. magnificent. xfinity x1 just got even better, with peacock premium included at no additional cost. no strings attached. ♪ shery: welcome to "daybreak: asia." haidi: we are counting down to asia's major market open. over theeeds later detention of an australian journalist. facing a also recession and extended virus lockdown. tesla surge, adding