♪ from: good morning bloomberg's middle east headquarters in dubai. i am manus cranny. annmarie hordern alongside me in hq. stocks start september mixed. tech pushes the nasdaq to another record. the yuan strengthens further. the dollar extends losses. donald trump suggests last

week's kenosha shooter may have acted in self-defense. he visits the city today. jp morgan says investors should prepare for the possibility of a second term. the german government is said to expect a smaller fallout from coronavirus than previously thought. italy and spain also had the tape. --apple, ship. up.m in, wire me up, bid it they are ordering 80 million new 5g phones. the world is safe. annmarie: is picking much roughly in line with what apple produced last year. this is something we will look at as we head into the european open and bloomberg intelligence note this morning said that

august's rally in tech shares is very different in the united states versus asia. while apple is doing well, huawei under immense pressure. it says to me that we are seeing that bifurcated tech market that many analysts have been worried about. manus: when you do a stock split, five to one on tesla. he is standing here, his pockets are heavy with tesla stocks. how are your stocks? good morning. >> let's look at the markets. looking for direction over in asia across the major indices. the asia-pacific is trading higher. the data really has just outperformed the s&p 500 many futures are higher even though below.ay, s and p closed it was the best august since

1986 for the nasdaq. a lot of dollar weakness, but yuan strength this morning. 6.8213 on the yuan. the highest level in more than a year. david ingles says this is about dollar weakness, not yuan strength. it is a dollar having trouble finding a floor. we are moving out of that bermuda triangle. but how much can that strength last? manus: indeed. just putting that equity market in context, stocks closed broadly lower. but it was the nasdaq, as you say. it was all about tech stocks. benchmarkpushing the to another record. apple leading the way after a 4-1 stock split. valuable -- now more

valuable than the entire european stock argot. manus: australia held their rates at a record low. the central bank says it will maintain highly accommodative policies as long as necessary. another backstop on the door of monetary policy. the end of investment for commercial bank of dubai. forhe head of investment the commercial bank of dubai. the dollar cascading lower, or any of these trades or momentums showing any sign of fatigue for you? >> good morning. yes, i think it is indeed remarkable to see what is happening. if you look deeper, there is a reason behind it. is pumpingd is doing a lot of stimulus.

revive thisg to economy much faster than any other economy in the world. that is going to attract more from overseas. term, we in the short may see dollar weakness, this itself creates a stimulus and the asset prices. we are already seeing a broad-based economic recovery in the u.s.. things look ok. annmarie: certainly the one concern i have been reading a lot about. they report about these walking potentially zombie companies. are you worried about bankruptcies rising over in the united states? deepak: yes, that is a global fear. ficationt the zombi risk.

when you keep so many companies afloat when they should not be in business given the new reality. this is not to do with covid. the world was changing in any case. many of the companies were not prepared for the future. now, suddenly, you find companies that cannot stand on their own feet. how long can they be kept alive? there is a real risk of this across the world and in the u.s. as well. that goes with the free market. some losers and some winners. the bigger companies will grab more market share. the smaller companies will become stronger. the off-line businesses will not be able to stand. the new economy businesses will do even better. innk that is being reflected the pay's stock market performance. bifurcated stock

market performance. addingthe vice chair fresh narratives yesterday, i would say, where he decries nirp, negative rates, and bins of the pathway to ycc, yield curve control. what does that do in addition to ait? yccirp is off the table but is part of it, what does it do to ait? of alphabets floating around here. what the fed has done effectively last week in jackson hole is wave goodbye to something that has been our favorite all these years, the phillips curve. the relationship between unemployment and inflation. as unemployment falls, inflation will rise.

most recently, in 2016 to 2019. that inflation never happened but rates went down. that was bad for the economy. the fed has learned a lot of lessons and they are trying to rectify that. they don't do good to anyone. we haved curve control, no news about that unless we hear something on september 15 and 16th. i think right now, the key message is lower rates for a lifetime. inflation if required. inflation will be surprisingly good news if that happens for the economy. this is the new regime. annmarie: i think a lot people may agree with you that

inflation would be welcomed potentially. but, how do they get there? they have been trying since 2012. deepak: you're right. and they got it wrong because of the phillips curve. all central banks of the world have been fascinated by william phillips. that has not worked, not only in the last eight years but also in the last 30 years. it is by and large flat. they will continue to stimulate the economy for as long as it takes. there is no getting back from that. whether that will create bubbles , i think theors market can live with that. the fed also highlighted the employment for low income communities. very new sort of a

statement coming out where they are now concerned about employment, just not at an overall basis, but low and medium income communities. i think they are very conscious of the mistakes in the past and i think this is a on the regime and stimulus is the only way forward. luckily, this time around, there is monetary and fiscal stimulus going hand-in-hand. annmarie: stay with us. we are going to go to that election risk and possibly whether or not we will get more fiscal stimulus out of the united states. with more first word news, here is laura wright. hit back atiden has president donald trump, denying claims that americans would be less safe under a democratic administration. forriticized the president

fomenting violence across the country. germany does not expect the economic fallout of coronavirus to be as bad as expected. sources told bloomberg of the updated forecast said to be released today. the economy has staged a rebound after collapsing in the second quarter. global trade is on pace to recover more quickly than after 2008 financial crisis. shipping volumes are already back at levels it took more than a year to reach following the collapse of lehman brothers. global news 24 hours a day on air and on quicktake by bloomberg, powered by more than 2700 journalists and analysts in over 120 countries. this is bloomberg. annmarie: thank you so much. you are looking at life pictures , you will be in a moment, of portland, oregon. people have been demonstrating

for weeks against the police and police brutality p they are marching to the mayor's residence. coming up, president trump and the polls. a lot can happen in the next 63 days and jp morgan has a message. this is bloomberg. ♪

is bloomberg daybreak europe. suggestedtrump has that the man arrested for killing two people during a protest last week in wisconsin may have acted in self-defense. he says the video of the incident shows that the alleged rittenhouse, was trying to get away from

protesters but he fell and then they very violently attacked him quote. the incident is being investigated. editor, in our senior derek wallbank. this is the latest response from the white house. how is that being interpreted? >> i think that one of the difficult things you will have here is trying to sort out the spin vis-a-vis these protests, was responsible for how violent they are, when it comes to the presidential campaign tactics. because that is what we are in the middle of right now. is video president trump referring to, i have seen it. it is very graphic. it is actually the second incident involving this 17-year-old young man. had alreadyr he been involved in a shooting.

but this guy was apparently a fan of some's and a of these groups saying they are going to defend property. this guy brought a gun from his home state of illinois and went across state lines into wisconsin. was not asked, but went anyway. and you saw what happened. at the same time, one of donald trump's supporters was killed in portland, oregon. lotas really deteriorated a in the last week and change. later today, it is going to be a big deal when donald trump lands in kenosha, wisconsin, over the objections of the state's democratic governor. annmarie: what can we expect from that visit?

derek: when president trump talks about this stuff, he is going as hard as possible on this law & order message against and he views as thugs violence roaming the streets. donald trump that is fanning the flames of this. joe biden has come out repeatedly saying that what donald trump is really doing is rooting for unrest, hoping it his presidential aspirations. i would look for the same sort of rhetoric from the white house that you have seen for the last couple of days. i would be very surprised if donald trump moderates his tone even at all. and then looking at what happens tuesday night as a response. manus: jp morgan talking about

the best university professor and the demonstrations of 1972. which we are about to discuss. derek wallbank, bloomberg senior editor, thank you so much. tesla climbpple and to record highs as stock splits take effect. will the good times roll on? we will discuss. this is bloomberg. ♪

europe." is "daybreak: climb to newla

record highs on wall street as their stock splits. learned that apple has asked suppliers to build at funds75 million five g.i. 5ger this year -- 75 million iphones later this year. split me up, bid me up. good morning. ride for apple and tesla. the news that bloomberg has broken on the fact that they are targeting 75 million 5g iphones by the end of the year. it shows you that in spite of or despite the pandemic, you are still seeing a lot of demand, and that is because we are all stuck at home and want to remain in touch. air,atch models, the ipad and smallerome part.

the supply chain held up pretty well during the pandemic. some weakness in taipei today. overall, strong moves coming through in the taiwanese session. samsung also moving higher. notices oververal the past month recruiting workers. they must have known that apple was looking to increase their supply. stock splits, it really just shows you how this is so popular. we continue to see apple and tesla it does record highs. cap $464 billion. bigger than walmart. you can see significant pullbacks in both apple and tesla shocks after this initial

euphoria. annmarie: elon musk has now surpassed zuckerberg when you look at the bridge go -- look at the rich go list on your terminal. jp morgan says investors should position for the rising chance of president trump reelection. betting odds are now nearly even. to potentially due violence around protests and closing of polls. deepak mehra from commercial bank of dubai still with us. do you agree with jp morgan? is it time to position for trump round to? deepak: it could be. we got it wrong last time around when no one thought he will get elected. not only that, but thought if

trump got elected, it would be very bad for the stock market. it is difficult to go by what the polls say. at the same time, let's not forget in the last 100 years, no president has won reelection when you have had a recession in the year of the election. , peoplehe same time nowadays like a strong leader, globally. nationalism, strong leader. these are the things that people appreciate. somebody like trump who came with a $600 per week stimulus income tod salaries, individuals, has been highly appreciated. went on a recess without extending this package

-- people appreciate what he has been doing. their 401(k) plans look very good, by the way. manus: we are where we are at the moment ostensibly because of the size of the balance sheet, zero rates for five years, and a fiscal program. power forxceeding to a second term, where would that be most impactful? on thehat be again dollar lower and stock market higher? deepak: i think the biggest will be on the china trade tensions. that will have huge ramifications on supply chain. american companies that depend upon china for supplies. i think that is the area to watch.

many winners in the stock get that we have today. annmarie: this is what manus and i were talking about at the start of the show, this bifurcation of the tech world. you look at the likes of huawei. do you think trump getting reelected will just increase and exacerbate that bifurcation of the technology space? it looks like because he will go harsh on china. he will have competition basically eradicated, so there will be more space for the american companies to do better. they may have supply chain issues, but you can already see foxconn moving to other countries other test to other countries. in the short term, these are the things we have to watch out for. definitely, american companies

will have more space and less competition if he goes hard on china. well let's see how that election runs out. the polls are going to shift. we had the real clear politics polls, that shift. the rising odds of a trump victory. how much of that is in the market. deepak mehra is head of investments at commercial bank of dubai. coming up, it is a message from germany. the impact from the coronavirus on their economy. we are going to discuss that, what's that mean for the yield breaking the 200 a moving average. that is a much to -- homage to mark barton. ♪

♪ >> good morning from bloomberg's european headquarters in this the of london, i am annmarie hordern with manus cranny. stocks start september mixed after tech pushes the nasdaq to another record. yuan strengthens. the dollar extends losses. donald trump suggests last week's kenosha shooter may have acted in self-defense.

he visits the city today. investors say to prepare for the possibility of four more years. germany is said to expect a smaller fallout from coronavirus than previously thought. pmi's from italy and spain hit today. a lot to digest this morning. obviously, the jp morgan one stands out for me, the possibility of four more years of donald trump. admittedly, he says what matters is how the economy fares for september and october. says another trump of four more years means a bifurcated tech space. huawei,f you look at some of those players in asia. my favorite story is the apple story overnight. $500.tock up by

here in lies the point. it's about whether another four more years, as you say, of trump, would lead to an acceleration of these markets to the upside and further demolition of the dollar on the downside. annmarie: as you pointed out with our guest, the fed is a backstop. how are we treating this morning? the rba was in there as well. the backstops keep getting larger and larger. in 500, it is the best year 34 years. the weighting of tesla, of apple, will shift. say, we need you to reconsider. beste overall had the august since 2009. roll, have a look at the yuan

because you have had the data from china this morning. 15 month high on dollar-yuan. wills of pboc tolerate further yuan strength? the dollar is down. are we getting tired, or getting fatigued? these are questions we have to ask ourselves. gold, ubs,the -- they were basically saying the fed's credibility is on the line. gold up 1.1%. took germany. they expect the economic fallout from covid-19 is going to be smaller than originally projected. theyes told bloomberg updated their forecast. the economy minister is set to present the new outlook at 10:00 a.m. u.k. time

the economy in europe's largest economy has had a rebound. deepak mehra's head of investments at commercial bank of dubai. this is a narrative which gathers strength in china, in the united states, looking at the dallas fed recovery numbers, and now in germany. how does that change your perception of european risk in currency or equity? we seem to have just a momentary lapse of communication. at that momentum and europe -- see what peter has to say this morning. the euro has been on a tear. this is all about dollar weakness, not necessarily euro strength. is that the view that we walk

into these numbers with? annmarie: i have been looking at this recent bloomberg survey that says, what pain level can markets withstand? they say the threshold is around 130. we are hovering around the 120 range. if you get closer, that starts to hurt european equities. you have to wonder at what point that starts to hurt european policymakers. manus: if you think the ecb are going to sit on the sidelines, if you really think christine lagarde is going to sit on the sidelines and let euro-dollar go to $1.30. gotmberg.com, when you have , european equities. again, this will come back to just how strong germany is. they extend part of their furlough payments.

the biggest gain since august 2009. that sets the tone in terms of bifurcation. there is a bifurcation between the u.s. and europe. gap or doclose that you believe the u.s. is alpha and europe still plays catch-up? annmarie: sticking to the u.s., i want to show you live pictures out of portland, oregon, that have been demonstrating for weeks against police brutality are marching to the mayor's residence. we will have coverage of this throughout the morning and continue to bring these live scenes out of portland. laura: president donald trump is planning to visit kenosha, wisconsin, the city where two protesters were killed last week. speaking yesterday, he suggested that the man arrested may have

acted in self-defense. vice president joe biden slammer the president for not calling out the teenager charged with homicide. jp morgan says betting markets for the november poll are now nearly even, largely due to the impact of recent violence on public opinion, and potentially also buy gas in the polls. argentina has received widespread bondholder support to pave the way for the nation to emerge from the ninth default in its history. investors will swap their securities for new notes. they say that this will generate about $38 billion of debt relief over the next decade. global news 24 hours a day on air and on quicktake by bloomberg, powered by more than 2700 journalists and analysts in over 120 countries. this is bloomberg. thank you so much. coming up, china's new export

orders jumped in july. we discuss next. this is bloomberg. ♪ ♪

manus: this is "bloomberg daybreak: europe." to hong kong. the exchange there is kicked off its flagship biotech summit. this comes at a time where

health-care listings and hong kong have surged to a record amidst the pandemic. exchange'so the president, charles lee. >> this is just the right thing to do. it is a big sector. china is such a big country with a very massive aging population, huge health care challenges, and lacking drug development. all this requires for asia to have a center for biotech so we can support research, we can support the massive health care reforms. that is a very big event. because china, literally for years ago, brought the entire -- almost the fda. bringsform essentially

the governing drug administration, pretty much the same with the u.s.. that reform sets the foundation for us to be able to again take a huge reform in the biotech sector your in terms of listings because they have no revenue before they can even sell anything. they were really heavily regulated. we thought that previous history allowed them to be listed despite the fact that they do not have the typical financials of companies that we ask for. it was a great event. it is a milestone. we never thought covid-19 is going to hit us. , i don'tlooking back know how we could cope without this new sector allowing so many companies to join the race

finding a vaccine, finding therapeutics, and finding solutions. >> we know that china has been regulating to make it easier to list on the star board and the chinext as well. what is the differentiating factor? >> for the last seven out of the number oners, we are in terms of ipo. center around the globe. that is just the tradition. and also, drug development. in this space, it is very international. requires a tremendous amount of scientific collaboration between the u.s., china, and europe. the scientists are really all

over the place. there needs to be a very significant international component. hong kong provides that great international connectivity. massiveone through a reform and really all pre-revenue, second phase of clinical trial evidence to come. i think china is following, essentially trying to do a similar review and reform. but i think at the end of the day, it is about money, it is about scientists, it is about working together. i think we provide that unique combination. >> what more will you see in terms of reform and what sort of tweaking and the rules could we see as we try to attract more listings? >> i think in the broader reforms -- chapter 18 a, which is the pre-revenue biotech

chapter, is a part of a. large comprehensive reform of really changing the landscape and composition of our market. a lot of reforms have to do with many of the u.s. companies with unique governance structures that do not necessarily fit in here. so we have to find a way to make it work for them eventually to all come back. 18a, i think the bulk of what we needed to do is pretty much behind us, done. just to make the offering a bit easier, so there are a few things we are working with our regulators, our listing departments. but we are not talking about fundamental change. >> hong kong exchanges and clearing senior executive

charles li. china's new export orders jumped in july, driving a recovery in the manufacturing sector. it rose to 53.1, beating estimates of 52.5. analysts expect the reopening of economies to continue to provide a tailwind but they are also sounding the alarm bells about new covid outbreaks that could affect demand overseas. joining us now, the director of emerging-market strategy got societe generale. i want to kick it off with that data overnight and what it means for the you want. the highest we have seen since january or actually middle of last year. a lot has to do with dollar week is. how much stronger you think we could see the yuan go? >> this has to do with a dollar move and continuing to follow that shift toward inflation targeting by the fed.

, byi think the prospects temporary nature that currencies can benefit from this move , thate the implications is very difficult to stimulate a robust and broad-based u.s. economic recovery. of us, the outlook is one prolonged stagnant global growth. modestl anticipate amounts of weakness over the coming months. manus: great to have you with us. when you started august, a great deal had happened. shortid, enter the month efmx and long vol. what has inflation targeting done to the em narrative for

you? phoenix: it is a very dovish signal from the fed. it does mean rates will stay very near zero. it does have some inflationary impetus. that has affected especially the long end of the curve. there is a move against duration i would say in this instance. so it is the growth outlook picture we are concerned about. we would still expect for em currencies to underperform in coming months and we would be targeting around eight 5% weakness against the dollar. annmarie: so longer-term it is the growth story, less the dollar weakness story. what out of these currencies do you think could be the biggest beneficiary from dollar weakness? are somei guess there

countries that are still quite resilient. region will be a key beneficiary because they are still benefiting from the move higher. complexngs a whole cee with it. the asian currencies tend to be strong beneficiaries as well, places like singapore, taiwan, they are very much linked, and they can benefit. isus: one of the big moves dollar rand. we saw this challenge, the currency drop by over 2%. for em.ownside you say there is a compelling risk toward entering. does that exclude the political challenge or improve? tradex: we put out that

before this latest leadership coup, attempted coup happened. that was one of the key governance challenges that grandma posa -- that ramiposa was going into. it was quite concerning to have a leader with strong intentions, very market oriented credentials, come in and not be able to deal with the situation. manus: ok, as you say, every day brings a new challenge politically, economically, and socially across the em spectrum. phoenix kalen, societe generale. coming up on the show, major outage. robinhood, schwab, other online traders experience trading glitches. this is bloomberg. ♪

♪ annmarie: good morning. this is bloomberg daybreak: europe. we do have life pictures coming out of portland, oregon. people have been demonstrating for weeks against the federal police and police brutality and are marching to the mayor's residence. president donald trump has blamed mayor ted wheeler for unrest in the city. in this tweet, as you can see, he says portland is a mess and it has been for many years.

this joke of a mayor does not clean it up, we will go in and do it for them. those are the president's words. back to our latest bloomberg scoop. apple has asked suppliers to build at least 75 million 5g iphones later this year. that is roughly in line with last year's lunch. what does this mean for apple? they wantedre as last year and for 2018. he would say, what is the big deal? but it is exactly as you mentioned, not only are they staying the same, they are staying the same in the middle of a pandemic, in the middle of a recession. demand has not slowed. you can look at apple and say perhaps this is a stay-at-home play. more people buying ipads, buying mac computers and cell phones.

some of the other big news coming out of this bloomberg scoop, new products. by october, four new iphone models. some will look more like androids with more square edges. air,e getting a new ipad two apple watches, and headphones. a smaller home pod speaker. not only do they see more 5g phones, more products meaning they do not see demand letting up. ecosystemfting an from your head to your toes. what about glitches in trading platforms? when is christmas? three months. you can get me a fitbit, pod, you can just ignore me. what about the robinhood? really a lot of

complaints yesterday. it was not just robinhood. ameritrade,ard, td schwab. we saw all of them have glitches. that was exceedingly rare. you had stocks like apple, trading frenzy ongoing. a lot of these retail accounts one to trade like taplin -- trade stocks like apple and tesla. the companies say the issues are now resolved. robinhood is the subject of an sec investigation over a march outage and their handling. two werelear if the related. the timing, not great for these platforms. manus: thank you very much, you are right, it can be disrupting to the old marketplace. that is state of play. howave to understand

politics play in here as well. annmarie: that is it for bloomberg daybreak: europe. european open is up next. this is bloomberg. ♪

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good morning, welcome to "bloomberg markets: the european open." matt: today the market fake king dollar nomura. the greenback hit its lowest level since may 2018. asian stocks rise with eu