♪ good morning. welcome to daybreak australia. i'm haidi stroud-watts. sophie: i'm sophie kamaruddin. we are counting out to asia's major market open. haidi: president trump steps up his attacks on china, threatening to drastically curve the relationship and punish american companies that create jobs there. humanitarianout a catastrophe in india as coronavirus takes control with

fallout falling far beyond the economy. is too early to get bullish on energy prices. let's take a look at how markets are shaping up this tuesday. take a look at asian stock futures. the japanese gdp is expect it to be revised of the second quarter. futures moving higher. chinese bought a water maker starts trading, kicking off another wave of ipo's in. . sydney, as we go to overweight by j.p. morgan. on u.s. futures this morning, goldman peter oppenheimer betting that tech will continue to drive returns in the bull market. jp morgan saying overweight tech and pharma. nasdaq futures are under pressure. check out wti.

as the demandrrel recovery is coming and flatter than expected. suggesting ongoing concerns when it comes to the supply and demand dynamic. let's check in on the offshore yuan. nomura cautions against chasing further gains as the appreciation has been driven by dollar weakness. the u.s. could slow export growth and stimulate imports, which may be against the goal of becoming self-reliant. haidi: we are getting more on these u.s. tensions. donald trump again ramping up the anti-climate -- china rhetoric and vowing to scale back ties with china. pres. trump: we will end our reliance on china once and for all. whether it is decoupling or putting on massive tariffs, we will impose tariffs on companies

that dessert america. if they can't do it here, let them pay a big tax to build it somewhere else and send it into our country. we will prohibit federal contracts from companies that outsource to china. haidi: we have seen president trump seeking to make china an election eacissue, reportedly saying joe biden is a lackey of beijing. let's go to washington. to some extent, the context of this coming into november is not entirely surprising that the president is choosing to double down on his china rhetoric. >> absolutely. thanks for having me on. president trump has tried hard to make china a big issue in this election. he has tried several times -- his campaign has tried to call joe biden beijing biden.

it has not really stuck yet. today's press conference was just another example of that. flashpoint inr the campaign is the handling of the coronavirus. trump is hinting we could see that as soon as october. let's have a listen to what he had to say. this could have taken to work three years and instead it's going to be done in a short amount of time. could even have it during the month of october. the vaccine will be very safe and very effective. it will be delivered very soon. you could have a very big surprise coming up. president trump ahead of the elections there. what does it mean when there is concern there is pressure on the fda from the white house? emma: president trump, as you bet said, today could

produced as soon as october which seems highly unlikely, but who knows? biden, as well as many public health officials, scientists have called for transparency on the process and have expressed skepticism that the fda is not operating under political pressure. harris also called doubt. president trump called the doubts lies. they will also think it is a rush to, after the election and biden said he would wait to see what scientists say. sophie: emma in d.c. let's get a check of the first word headlines. china has been accused of delaying the renewal of press gradual for some journalists working for u.s. media outlets, including bloomberg, cnn, the wall street journal. an official tweeted that the applications are being processed

and reporters will be able to live and work in china while that happens. the holdup is seen as a countermeasure to restrictions placed on chinese reporters in the united states. the eu has warned boris johnson over his later plans for brexit. the european president was responding to threats of u.k. separation from europe without a trade agreement. the deadline was struck. talks resumed this week. the pound fell as much as 1% against the dollar. a human and economic crisis in india which now has the world's second-highest number of coronavirus cases at over 4 million infections. the have already suffered biggest contraction by most major economies. globally, cases of covid-19 are now at more than 27 million deaths. russian opposition leader has woken from an artificial, i com

in berlin and said to be responding well to treatment. the german military says he was poisoned by a nerve agent. angela merkel has promised a court native response for the european union and allies, and threatening to pull out of the pipeline. the men accused of killing a saudi critic government has escaped the death penalty, instead being sentenced to seven and 20 years in prison. five of the eight have been given alternate punishment but that was commuted after khashoggi's son said they had forgiven them. still ahead, the virus, politics and even equipment has undermined australia's $200 billion push to become the world's biggest lmg exporter. we will talk with our guest.

will declines resume for the nasdaq when investors return for the labor day weekend? we are looking at value next. this is bloomberg. ♪

sophie: u.s. stocks at the monday off but they are poised for a closely watched return. s&p gaining ground by half a percent. nasdaq futures under pressure. this after on friday we saw the s&p 500 down fo 4.3% for the past two sessions. to look at the volatility and if there's any value to be had, hilary kramer, cio of kramer capital research. i have the chart on our terminal for the viewers demonstrating the s&p and nasdaq of late. it could be looking to test its 50 day moving average which could see bidding getting fiercer. do you see a risk of market

collection? hilary: absolutely. the market still has so much more to deflate. when one compares the performance in terms of returns of nasdaq, let's say, versus russell 2000 value is down 17.5%. down 17.5% on the year. there is just so much room for a rotation to take place. because of the nature of this tech rally that we have , august 2020ere and the deflation of the past two days, it has been such pain for individual investors. they are the ones that really have this going. they were in the options market. they were buying up on margin and there is so much more room for it to go down. apple, tesla. tesla would have to be selling

cars for the next 1000 years to justify its valuation. that doesn't mean i don't respect elon musk or respect tesla or think it is the best car company in the world, but in terms of its actual value, i'm an analyst. i know how to value companies. based on how many cars you could possibly sell, it is not possible to go there in the market is starting to see that reality. most importantly, everyone has to realize that in the united states, the expectation now has turned to president biden being in the white house and not another four years for president trump. that is what's going to bring the market down, because immediately, earnings get cut by 15% because of taxes. yes? sophie: and with that potential outcome of a biden administration, what does that mean for earnings? does it also see a rotation into

value, looking more from nation o fast more foundational or is it transitory? hilary: i think it will be more foundational because the whole nature of investing will change. that is why i talk about stocks like valvoline, 2.1% dividend yield. i talked about goldman sachs, as the best financial to possibly buy and get a 2.4% dividend yield. on.redien everyone is going to be searching for yield. meaning, they need income because we heard powell say rates are going to be kept at zero for the long-term until our economy improves. now that people have been squeezed out, literally of the stock market, that is the only place to go is income and to look for fundamental value. haidi: hilary, you seem

emphatically convinced we are going to see a biden/harris victory in november and that will result in greater volatility, but the vix futures market is telling us there is so much uncertainty, that the u.s. election is the most underpriced event risk we have seen in some time. is that real concern we don't actually get a result, that there's going to be a delayed result? increasingly, the markets are worried about that. hilary: that is the most excellent question. you hit the nail on the head because it is literally going to be a real problem and we'll set up for that. because already, president trump has made it very clear, he is contesting -- whatever the results are going to be. that is a message he keeps giving over and over again and that is why he has been talking , votes bought,ud

people triple voting. that just adds to the volatility. president would not be talking about that incessantly if he himself weren't worried and there is trump fatigue that is going on and that is why we are hearing more and more outsized, oratory kind of salutations from president trump about what he's going to do and when he's going to give. how we havemazing been able to do so well considering the pandemic and the fact there was such a great reaction in terms of our treasury and making sure we can continue to buy and be economically viable. but the market hates uncertainty in the last time we had anything like this was in the year 2000.

gore and we ended up with president bush because of the state of florida having to recount. multiply that times 100 fold. i still think in all of that, that just presents -- not too many people making money in the stock market. that is my job. the volatility means what do you buy? you have to think in those terms. fear could keep people in the sidelines or what they will continue to do this week to sell out of stocks they have been piling into. in reality, there is so much opportunity and that is why i started by hitting it right away and saying the russell 2000 value is down 2.5%. to me, that is kind of amazing. it shows there is so much opportunity to make money in the market and it has been so imbalanced. anybody who is in funds or has a

portfolio that is not heavily concentrated in these big tech ,tocks, they will tell you that's interesting, i've only made 3% or 4% or i am just back to even on the year. drivenas been so much including very big purchases. all you can do is combined and inflated stock market with 0% interest rates and that just spells danger. because individuals -- haidi: hilary, on those overinflated big tech gains we have seen, we have a viewer question asking whether the frenzy of options trading will continue. we saw softbank and monster making headlines as they were the nasdaq whale, really aggressive the option strategy they pursued. does that continue across the barda market -- broader market? hilary: now the cat is out of

the bag with softbank being responsible for so much of what happens with apple and apple having this unprecedented rise. the option market is going to pretty much evaporate very quickly because so much of it -- not on the professional side, but the options, the increased options activity will start to subside when you look at the statistics of how much of a percentage options of a company have been sold versus the actual value of the company itself, it has to go down because so much of the bubble was made in the options market. much of on thursday, so the online trading services really pulled back. the amount of margin calls that i understand for my colleagues that they were sending out there was -- kind of exceeded anything seen in march and april 2000

with the internet bubble broke and margin was pulled back exceedingly. there have been so many individuals blown out of the waset and softbank news sobering to many who thought they were smart because they thought how many apple would be six sold when 5g comes out in the fall. haidi: always appreciate your time and interesting view. hilary kramer with us. plenty more to come. this is bloomberg. ♪

haidi: india is adding a new coronavirus cases -- more coronavirus cases faster than any other outbreak in the world which could rapidly overtake that in the u.s. let's get more on this. nothe virus curve showing

signs of letting in india? >> india is now the world's second-largest -- has the world's second-largest highest number of coronavirus cases. it passed brazil to reach more than 4.2 million confirmed this outbreak surges across the nation. it is now the global virus hotspot and india has added the largest number of cases in a day with over 90,000 recorded overnight. that is more than 71,000 people have died from covid-19, making it the third largest by number of deaths. not so great news for india at this point. in hong kong, there has been a new study that shows covid-19 patients may have prolonged infection even in the absence of symptoms. tell us more. divya: basically how this works, they did a study looking at

patients in february. what they found is looking at stool samples from patients, they found active got infection in seven patients, some of whom had no nausea, no diarrhea or digestive symptoms. these three patients continued to display active viral infection for as long as six days after the exploratory samples tested negative for covid-19. it is not just about things coming from your mouth. it's also other parts of your body that people have to look out for. sophie: divya. staying with the outbreak, russia's top ministry says the first batch of its so-called sputnik coronavirus vaccine has been produced in the general population. health officials outside russia have raised concerns that the shot was approved even before clinical testing had finished. bloomberg spoke with the ceo of science which is

back in the vaccine. suggest they want to register before phase 3. you need to understand technology and what is published. our technology is based on a virus vector which is an approach which has been proven safe for the last decade. sincery with the vaccine 1971. it is very different. data,ly do we have great but it's great. it is before phase 3 and we have four trials of more than 40,000 people in russia and trials in saudi arabia, philippines and other markets. >> you mentioned those other countries, how many other countries have expressed interest in buying -- and how many have signed binding

agreements to buy this vaccine? of more thanterest one billion doses. it will be announced an agreement starting this week. more than 20 countries would like to pursue it. countries who want to pursue it, it's a big difference. the human approach has been started. mrna approach, there is zero long-term status of long-term effects including cancer or infertility. we are confident that most of haveountries will want to it in their portfolio. we are not the only ones doing this. it is also johnson & johnson. -- there is no doubt it is the most researched, safe and proven technology and and more countries understand that. >> any european countries

reached out to get this vaccine? >> we had some discussions with european nations, but we did have quite on mrna, vaccines. we understand that will be a place for some of the producers. just important, i don't want to repeat too much. vaccinesne is based on that russia has done six years ago, went through all the cases of clinical trials. it helps countries to work with russia. latin america, middle east, asia realize we will produce more than 300 million doses of our vaccine in india. and international partnerships. >> do you know if president putin has been offered the vaccine? if so, has he agreed to take it? i know moscow's mayor and defense minister, agents to president putin, have taken the virus -- the vaccine.

>> i don't know about the president. the mayor of moscow, the defense minister, the ministry minister. i too as well as my family and parents. we are confident with the vaccine because we know the platform is safe. one of the criticisms -- people say it is only 76 people and astrazeneca did 1000 people. if you look at the astrazeneca study, they gave two to only 10 people. shots, russia can do four times more people than astrazeneca did. the are more details. people who understand the science are confident in the russian vaccine. it is very important they check the long-term consequences. it was studied before it got approved. mitrievthat was kirill d there.

off. officially kicks hedge funds singling the outcome does not really matter. investors saying there is no turning back from abe's reforms. ♪ look here, it's your very own all-in-one

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sophie: you are watching daybreak australia. has hintedrump another shot at china as a lecture rhetoric rises. he stays beijing faces massive tariffs from the u.s. and american companies who outsource will be banned from federal contracts. china raising the stakes with reports it plans to launch a global data initiative of its own to counter washington's latest restrictions on chinese tech. pres. trump: we will end our reliance on china once and for all. whether it is decoupling or putting in massive tariffs as we have done already. we will impose tariffs on china

and other countries. if they can't do it here, let them pay a big tax to build it someplace else and send it into our country. we'll prohibit federal contracts from companies that outsource to china. taiwan's exports surged to a record aided by russian components to huawei before the u.s. ban comes into effect next week. shipments rose the 8% last month to a record high of $31 billion. that was more than even the most bullish of estimates of less than 1%. the reserve bank of india is testing new rules for lent is looking to restructure loans that have turned bad because of the coronavirus. it now needs to consider financial parameters such as liquidity and debt ratios. the central bank has identified 26 sectors at risk, with

carmakers, aviation and tourism at the top of the list. haidi: let's take a look at how we are setting up this tuesdays session in asia. the lack of relief from u.s. equities as markets closed for the labor day weekend. we had an impressive rebound in bullish sentiment during the european session. we are seeing s&p futures looking more positive. 6/10 of 1% higher. on friday, we had the s&p closing at the lowest level since august 21. the nasdaq 100 driven selloff taking full force. nasdaq futures trading up bite one quarter of 1%. we had names like amazon and facebook, nasdaq, down over 5% and that friday's session. here closer to home in new ofland, the discussion breaks from rbnz is creating some premium advantage when it

comes to trading in aussie kiwi this morning. city futures modestly positive, setting up for a flat, just a little higher at the citi open. let's turn to japan where the ruling party kicks off its campaign for a new leader later. continuing to assess shinzo abe's legacy. andreea joins us now. positive reviews for his corporate governance reforms. andreea: that's right. investors are held hurting the support ushered in by shinzo abe. you have seen the topics almost abele in the 7.5 years that has been in power. among the things he did better notable -- that are notable is unleash constitutional investors to increase profitability and capital efficiency. this is a country where

traditional investors have been very hands-off. he's created this corporate governance for companies. what this did is really make japanese companies become more anditable, less insular more rewarding as an investment. we have seen profit margins and the topix index higher at the end of last year compared to the end of 2012. return on equity has climbed. dividends and buybacks of also increased. they have been sellers since the buying frenzy in 2013 when a became to power. there was a feeling certain areas he could've done more, like increasing wages to start inflation and also appointing more women to managerial roles. while he has been seen as having a more global approach than previous prime ministers, he probably not as global as european and north american companies. but, with all that, there is a

firm view that regardless of who will succeed him, japan is firmly on this path of corporate governance reform. politics,icking to brexit is back in the spotlight. despite boris johnson's threat to walk away from the eu without a trade deal, economists and traders seem unruffled for now. andreea: that's right. remember when brexit was the biggest worry in markets. you're right. people are not very alarmed at this stage. we did see the pound slide last night, but overall, investors are less bearish about the next six months than they were in 2018 and 2019. when a no-deal departure was much more dominant in the market. there is a view that this is deal will bet a

struck even if it's going to be struck at the 11th hour. this is just part of the brexit negotiating playbook, ultimatums and standoffs. of course, we do have a lot -- investors have a lot of issues out there to worry about. the pandemic, the u.s. election, and also the fresh rhetoric between the u.s. and china on trade. these are issues, that before january when the u.k. was going to leave the bloc, these are issues that are moving fast and large for investors. our asia cross editor, andreea papuc. australia's two become the world's biggest lmg exporter. we will speak with tony nunen. this is bloomberg. ♪

haidi: australia's government has warned the growing hardship with victoria with financial -- easing. key sectors of the economy will remain under control until the end of october. let's take a look at what this looks like for the revival of energy demand and fast tracking towards more renewables. we are joined by tony nunen from brisbane.

great to have you on daybreak australia. are you constructive when it comes to energy demand and prices or is there a great deal of uncertainty in terms of what happens if we face a fiscal cliff and the uncertainty over a vaccine? tony: thanks for having me on. short-term, absolutely uncertainty. i think what's key is if we step out on the longer-term time horizon, the trajectory we are on with the energy transition remains the same. we see, particularly for australia, tremendous opportunity for us here. we are really well-placed with renewable resources we've got. i think we've got the great opportunity as a nation to be able to build an energy system, a renewable energy system that works for customers. one that's affordable, reliable and clean. haidi: the government has been pushing its message for a gas supplier recovery from covid-19. is that the right messaging, do you think?

some of these hurdles created by the pandemic, do they create challenges for renewable investment or excuses to set that back? gas is being a really important part of the energy system particularly today, but also into the future. it is the perfect partner for the long-term switch to renewables. the reason being when the sun is not shining or the wind is not blowing, we need to have other products. gas provides a great partner to do that. andwise, so does pump hydro things like battery storage. the focus on gas and the desire is a country to make sure gas is a very important energy resource for us in the future is an important one and one that we support. sophie: turning to shell's investment in australia. a significant amount of investment. what is attracting you to spending down under? tony: we're really fortunate

that we have a wonderful natural gas portfolio in this country. our focus is on making sure that is as competitive as it possibly can be to provide that important fuel for customers globally. in addition to that, we do see the opportunity to help in the transition about energy system to cleaner sources. what we have been doing in australia is investing in both our lmg and gas businesses, but also into power and renewables. we see that as being the future of the energy system, but most importantly, we see that is what our customers want long-term. sophie: the transition towards renewables in australia has not been without its challenges. when you compare the experience to other comparable nations, what can be done better in australia to facilitate that transition? tony: as i said before. i see of straley a is being well-placed -- australia as being well-placed because of the

natural atmosphere we have here to create a renewable energy system that works for our customers. the most important thing is we don't bank on any one solution. it is going to require multiple solutions that can be seamlessly integrated for customers. i think what's important is for the supply-side to work closely with government, but also to work with customers to ensure all of those options are made available. that we continue to invest in future energy systems, but we also do it in a way that ensures it works for our customers. it has to be reliable, it has to be affordable, and it has to be clean. haidi: there's been a lot of speculation in the media that you are looking to sell off infrastructure assets related to your queensland lmg exports. can you share with us how far along that process is? tony: there is lots of speculation around the commerce facility for us in the plant. i'm not in position to comment other than to say the project

itself is a really important asset for us. i think our decision earlier this year with our partner, petro china, to continue investment in the project speaks for itself for our view of gas and queensland. sophie: so, for our viewers -- haidi: so, for our viewers, need to talk about the $17 billion facility that has not shipped since january. can you give us an update on how the repairs are going and when you expect a resumption th ere? tony: it is a really important part of our portfolio and an important investment. it is an investment we have taken with the multi-decade time horizon. we are in the process of hydrocarbon restarts. it is a process we will make sure we do right. we will make sure we do safely and we will do as long as it takes before we bring it back up again.

sophie: do you still see a profitable long-term future for the industry? tony: it has been challenging this year given the macro conditions and the uncertainty that goes with it. fundamentally, we believe the trajectory of demand and the energy system remains the same. we still be there will be demand for lng come a natural gas. importantly, they will continue to be a strong demand for our customers to transition the energy system to the lower carbon forms of fuel and to make sure that works for our customers. s an impending cash shortage on the east coast. how are you navigate that potential outcome? tony: it is an important focus for all players in the market.

the a tripleork of see, there's a strong focus on the demand and the east coast. the most important thing for all of us is to continue to have a well-functioning market, one where those on the supply-side see the opportunities and continue to invest. likewise for customers, that it's a reliable source of gas into their portfolios. it happens in a way that is also affordable in the long term. haidi: at one point, china became the biggest market for lmg. since then, the relationship has deteriorated. we see that really impact commodities ranging from bali to wine to beef. are you expecting this will weigh on the relationship? can you give us an indication of how much demand you are seeing? tony: we work really closely with our partners in australia and globally.

one of those partners is a key customer of ours. we continue to see strong relationships in those partnerships. we work with them to supplying the energy sources they need. our focus is making sure that long-term, those are fruitful and respectful partnerships. haidi: can you give us an indication of how much demand you are seeing from your chinese customers? tony: we continue to supply our customers as we have done for many years in a way that is consistent with what their demand is. we continue to supply under our contracts and we work very closely with our customers to meet their needs. that will continue this year and into the future. haidi: thank you so much for joining us. tony nunen from brisbane. we do have an update when it comes to victoria state's new coronavirus cases. we have seen the health department report 55 new virus cases over the past 24 hours. eight new virus debts over the

24 hour period. a little bit of a surge compared to yesterday's numbers. nowhere near the numbers that will be required for the full listing of the measures under the lockdown which would require less than five new cases a day as well as less than five over the previous 14 day period. transmitted across the community. billions.making that serves speculations that they could be a driving force before the tech rally. not everyone is convinced. we have the details next. this is bloomberg. ♪

sophie: reports that softbank is making billions by using options to bet on tech stocks has served speculation the conglomerate could have been a driving force behind the rally. however, not everyone is convinced. our cross team editor joins us with that. talk about this nasdaq whale theory. >> it's people on the derivative trading desk and ben eifert, the cio of hedge fund qvr, said this publicly that people are looking at the retail power. when you think of a whale, you think of someone who is corner

of the market. softbank would have been a piece of this but retail is such a big part of things these days that right now, looks like the numbers of retail which may be about 40 billion are dwarfing softbank which the figures seem to say about 4 billion. haidi: what should we we watching in terms of the options market going forward? are a number of bets made early in august on companies like microsoft and alphabet. a lot of these are in the money now but the trades made on microsoft and alphabet themselves are not yet in the money. it will be interesting to see whether those stocks continue to rise or whether they pulled back like they did thursday and friday. we also could see as we get into more volume, some of the pullback might have been because this low volume of the u.s. labor day holiday and that tends to exacerbate these moves.

if we get a big flood of volume back into the market, that might reduce the effect of all these options. joanna in singapore. the latest business flash headlines. jp morgan is doubling the number of investment banks coming back to its new york and london offices as wall street inches back to pre-pandemic arrangements. it wants 50% to be at their desks on any given day, jp morgan staff will be allowed to work from home one week on and one week off. the founder of netflix says working from home has no positive effect and makes it harder to debate ideas. 8500 oneings says not have to return until a vaccine is found that even then they will spend one day a week at home. new zealand reported a drop in

passengers of around 57% for the month of july despite being one of the countries to most successful tackle the coronavirus. it should international traffic since march. new zealand's revenue was also down almost 87% on the year. $6.6 billionon a deal to provide 5g wireless solutions for verizon in the u.s., a big win for the networking business. it is through the end of 2025. the deal marks one of samsung's biggest contract since he decided to enter the networking business, taking on the likes of eric an erickson and huawei. hollywood's first big test in the age of the pandemics all mixed results. christopher nolan's film made $20 million in the u.s. with much of california new york shut but took in more than $120

million in two weeks, including $30 million from china's opening weekend. the film needs to make $200 million to recoup its budget. we spoke with timothy richards about cinema cutting back to normal. hy: we have different social distancing laws in each country but on average, we are filling up 50% of our seats and we have a geographical social distancing, 50%. i think it's important to remember as an industry, globally, we typically have 20% to 30% occupancy rates at any event. we've always had excess capacity. so, the actual social distancing laws have not really affected us at all. >> what is your main concern going forward? if there's not a vaccine, what countries where your operations

will be at risk? timothy: i think looking forward right now, we are going to be living, until there's a vaccine, we are going to be living in a world of hotspots. hotspots are going to come up and we have seen that all across our markets. we have been seeing that now for the six weeks we have been opened in europe. we are going to become as a society, we are going to become faster, quicker, more adept at jumping on those hotspots. tracing, testing. and i think there's a chance we might lose one or two cinemas in those hotspots in different markets. we might lose bond. we might lose part of northern milan. i don't see a situation anymore where we have full lockdown. i think huge credit to warner bros. and christopher nolan for really having the kind of vision to move away from what had been the norm, a global

release of movies and looking at monetizing where they can. havedifferent countries come into this epidemic and are coming out of it at different times. the u.s. right now is a little behind other parts of the world. areer bros. and now they looking at that and looking at 70 or 80% of the screens that are not open. the basis that several weeks later, they will be able to then release the movie in the market as they open up which is really the plan with tenet. "tenet" had a roll out a week or two later than it did internationally. haidi: that was timothy richards joining us earlier. let's take a look at how we are setting up in terms of the tuesday asia trading day. the absence of trading in the u.s. with the labor day holiday

continuing, we are seeing some positive momentum when it comes to active futures trading for the s&p. the s&p closed at its lowest level since august 21 at the end of last week. the nasdaq 100 at one point down more than 5% as well and that tech driven selloff. we are seeing upside 7/10 of 1% when it comes to trading in the s&p asset futures. new zealand trading is underway. 4/10 of 1% higher. we get the premium between the aussie and kiwi dollar increasing as talk of negative rates gains momentum. sydney, we are setting up for a modest start to the day. pretty flat. futures 1% higher. we are looking ahead to the open when it comes to japan. nikkei futures up by 3/10 of 1% as we continue to see the political situation developed in japan. , looking toinuity potential -- as the leadership race gets underway. coming up in the next hour, we

will get more market analysis. state street market analyst will be's with us. towill ask her when it comes emerging markets like india and indonesia. plenty more ahead on daybreak: asia. this is bloomberg. ♪

haidi: a very good morning. i am haidi stroud-watts in sydney. we are counting down to asia's major market open. sophie: i am sophie kamaruddin. welcome to "daybreak asia." president trump steps up his attacks on china. fears grow about a humanitarian catastrophe in india as coronavirus cases soar