haidi: very good morning. i am haidi stroud-watts in sydney. shery: i am shery ahn in new york. welcome to "daybreak asia." the rebound unravels. u.s. stocks turn lower amid heightened volatility. treasuries rise along with the dollar as investors seek havens. asian stocks are seen following the dip in the u.s. no deadline delays for tiktok. talks.nt trump dismisses

amazon billion offer to goes from rivals to partners as jeff bezos is willing to take a 40% stake in his indian retail revolution. at thelet's take a look set up for the session of trading in asia. we saw that resumption of the loss in the u.s. how are we setting up in this part of the world? sophie: a pickup in volatility once again. in asia, futures are mixed, but we are seeing s&p e-minis. chicago adding .3%. the yen is stuck in the range with brexit risk also a consideration. we are watching tiktok reaction to trump's extension of that tiktok -- watching reaction to trump's extension of that tiktok sale. jupiter asset management is cutting its exposure to debt of

chinese state linked borrowers so that is something to consider as well. ahead of the u.s. election, you are seeing one vol bets can -- yuan vol bets. keeping an eye on korean bonds with potentially $6.3 billion of supply coming through. the government may submit its proposal to parliament this friday. the global rush of corporate credit sales, that is not abating. japanese deals are at a three year and nissan may issue an offering after its first dollar bond sale since 1999. pulling up the chart on the terminal, even after the rally in credit in asia since march, you bp expecting spreads for asian dollar bonds still having room to tighten with the punch ball being filled up by a global central banks. before the recent selloff, yield premiums on asian dollar bonds narrowed for five straight months through august, the longest streak in six years which had hsbc warning last

month that asia credit is running a bit hot. jerry. -- shery. shery: emerging market stocks were on track for the first gain in over a week on thursday but dropped after u.s. job claims came in higher than forecast. the msci emerging markets index facing its longest losing streak since february. peter, securities head of macro strategy, joining us now. great to have you with us. we continue to see weakening the momentum in the em sector. we are talking about them falling below their 50 day moving average for the first time in our months. more stocks posting declines been gaining ground. how cautious should investors be? peter: i think ems will work out ok. it's seeing a pullback and breaking through the 50 day moving average but i would expect money to look for em. as you see china and the u.s. continue to battle, as you look at the u.s., whether it's

republicans or democrats, both sides now seem intent on shifting production out of china so i think that could actually benefit the rest of em and i think dollar weakness will resume, which traditionally has been very positive for em. haidi: especially when it comes to em credit. if you have consumer prices rising and inflation undermining the sovereign bond yields into more negative territory, how beneficial will it be for those really out there that's a part of that shrinking pool of positive yielding debt? peter: i think it is attracting more and more attention, even the local currency data. over the last two months, i think you are seeing people saying if the u.s. dollar is going to continue to weaken, which is my base case, em looks interesting. you have the growth story. you have negative real yields in the u.s., so i think that will be one of the surprises, where em attracts a lot of money because it's one of the last

games in town offering real positive yields. seeing yield hungry investors increasingly piling into junk bonds. $300 billion worth. looking at record sales when it comes to the u.s. and even more broadly of course, there is this general sentiment that the fed -- central bank's have got your back. how much risk are we setting up for here if something goes wrong? peter: we have to be very careful. when i look at investment grade in the u.s. and globally, it has done very well. some of the higher quality stuff did very well but you are starting to see signs of excess where you are getting private yields, done at terms that are as good or maybe even better than you would have seen in january, preferred market on fire, so people want to buy those preferred bonds again so you are seeing signs of excess. if you are an issuer, you are supposed to take advantage of that. if you are a buyer of these, you are supposed to take a little pause, say i want to see where

this all plays out so you are supposed to be de-risking at the weaker end of credit right now. haidi: talking about capital preservation, talking about keeping your powder dry potentially for some tougher times ahead, what composition do you see that as playing in a portfolio? be a: i think you want to conservative. to me, it's a little bit more clear on the equity side where i think the high flyers have gotten ahead of themselves so one nice thing is i like financials across the board and financials, if they can do well, that tends to be good for credit. you want to keep your investment grade credit and scale back, take some profits and high-yield and leverage loans. some of the areas have done very well. despite the fact that em bonds have done well, you want to keep owning that because that will be the next trend. aarching for a value that is different proposition then maybe what you get just by going deeper and lower down the credit curve in the u.s. shery: we continue to see the

pullback in chinese charts. showing turnover has fallen to the lowest since july. it is really the daily average for september. 20% lower than it was two months ago. is this also taking off a little bit of the excess we have seen in that rally or is this something more serious? peter: for now, is taking off a little bit of that excess from the rally. i think we have to be cautious. -- i work withew 14 retired generals and admirals who form a lot of our geopolitical view, and we see from all sides that there's going to be this increased friction with china as we come towards the election. both the republicans and democrats seem to have chosen to pick fights with china that they want to talk about, repatriating supply chain, so i think that friction is going to be ongoing. we might get a wildcard where at some point, china wants a deal -- trump want to deal with

china, but there will be more friction and rhetoric. china is kind of stepping up. they had planes fly by taiwan. i think you have got to be very cautious on the risk side, especially on chinese stocks, vis-a-vis what's going on with the u.s. haidi: really appreciate your , academyer tchir securities head of macro strategist. we will speaking with the prominent advocate for indigenous rights. destruction of aboriginal heritage -- president trump says tiktok will extension.t we will get the latest, next. this is bloomberg. ♪

haidi: taking a look out at

sydney on this friday which is promising to be pretty loaded with volatility and downside risk. u.s. stocks resuming that selloff, particularly when it comes to tech. shares something for a fourth time in five sessions amid concerns that even after the recent froth that has been taken out, valuations are superhigh for a lot of these tech names. we are seeing the aussie dollar trading higher this morning after declining with the u.s. dollar higher in that g10 basket overnight. we had victoria state reporting cases3 new covid-19 overnight. that is continuing on the numbers coming a little bit lower. nine more people died. always to go yet before we get to the five infections per day. over the rolling 14 day period. that is what the government wants to see before lifting the lockdown.

first word headlines with karina mitchell in new york. karina: we start with more brexit drama. the u.k. and the e.u. heading deeper into a split without any trade deal. boris johnson's government refused to scrap plans to rewrite the accord. he signed with the block. the e.u. is threatening legal action if the u.k. does not drop the legislation within three weeks. christine lagarde painted an optimistic picture of the euro economy, saying manufacturing continues to improve and economic data suggests a strong rebound. the ecb kept policy on hold and tempered its forecast for economic contraction to minus eight from a june forecast. it will be around 5%. overall, the balance of risks to the euro area growth outlook does seem to remain on the downside. reflectsssment largely the still uncertain it, and --

uncertain economic and financial applications of the pandemic. karina: citigroup named james fraser as its next ceo, making her the first woman to head up a wall street bank. she is a 53-year-old and has been with the bank since 2004 after a decade with mckinsey. she will replace mike corbat, who is retiring after more than eight years in the top job. she will join the board effective immediately. hong kong police have arrested 15 people in connection to a surge in digital sales. by media company is owned jimmy lai. august, -- police said the arrests were made on suspicion of illegal funds were used in a conspiracy to defraud. global news, 24 hours a day, on air and on bloomberg quicktake, powered by more than 2700 journalists and analysts in more than 120 countries. i am karina mitchell. this is bloomberg. shery. shery: turning to the latest on

u.s.-china tensions, president trump says he will not extend the deadline for bytedance to sell tiktok's u.s. assets. pres. trump: i am not extending deadlines, no. september 15. there will be no extension of the tiktok deadline. shery: with any deal requiring beijing's approval first, tiktok is likely to miss the deadline. let's get more from stephen engle. what next? stephen: this is a clouded timeline, really, because he has said, donald trump has said that the deadline is september 15, which of course is next week. onever, he signed the ban august 6. it's a 45 day period. 45 days from august 6 is september 20. five more days then what he has stated. subsequently, donald trump also signed another executive order,

ordering the sale of tiktok within 90 days from august 14. i'm doing the math. that's around november 12, which is of course after the u.s. presidential election, which also clouds the whole timeline even further, and leading up to today's impromptu comments, you just saw and heard from donald trump. we were hearing from bloomberg news exclusive reports that white house officials were working feverishly behind the scenes to possibly extend the deadline because they were hearing that tiktok was not going to be able to meet the deadline because of the strict requirement that came down the pike a couple of weeks ago from the chinese government requiring have chinese government perusal of any deal, the financials and the technicals, and that is said to quiteengthy process and substantial process that will take some time. apparent they, the white house

was working behind the scenes, but they had not taken this proposal to delay the deadline to donald trump just yet, because he had other priorities, obviously, right now. it looks as though -- i'm just reading the scenes from abroad here. it looks as though donald trump was not briefed on whether there was going to be a delay and he was asked kind of impromptu by reporters there, and then that is what he said. no extension of the deadline. let's see how this plays out. haidi: what are the implications for pricing? stephen: does it drive up or drive down the price? the price is all over the place. bytedance says it wants $30 billion for the u.s. portion of the business of tiktok, however, the range from analysts has been all over the place. as low as 10 billion, probably somewhere between 20 billion to 50 billion. we simply don't know.

30 billion might be a little bit too rich, even for the bidders at play right now. ,icrosoft leads the coalition said to be leading bid, along with walmart. there is oracle as well. it leaves a lot of uncertainty, and whether there is this impetus right now for these companies to submit, at least submit their proposals to the --te house by september 15 september 20 -- is it november 12? we will see. drama continues. steve engle. coming up next, silicon valley is ramping up measures to quell the spread of misinformation going into that november election in the u.s. microsoft says hackers have stepped up their efforts, too. we will get more details, next. this is bloomberg. ♪

haidi: a microsoft investigation has found hackers from russia, china, and iran have stepped up their efforts. this comes as silicon valley is stepping up their efforts to curve information on voting ahead of the november 11 polls. --omberg technology editor joins us for more. what does the microsoft report telus as to who is being targeted and by what means? >> this is a pretty interesting report and it mainly focuses on aggressive russian actors. it is a hacking group known as handsy bear. was active for years ago. attemptshe hacking that microsoft uncovered were not successful but some of them were. idea is thatal

this group has been targeting both political -- both political parties, like democrats and republicans, but also consultants who work with the candidates as well, so the idea might be that they hack into -- sensitive information about one of the candidates, and later on, they would leak that information right before the presidential election before the candidate can do anything. given this current environment, we are seeing giants like twitter and google upping their defenses against misinformation. the last time out for years ago, i think we were all prepared. the tech companies were unprepared very much so. this time, they are trying a lot harder. google today is a great example. they changed their technology around. the auto complete feature. i think most people know when

you type in a phrase, google will suggest the whole phrase you might want to be searching for. sometimes, things can be manipulated. for instance, if you type in "i thevote" or "you can vote," system suggest something like "you can vote twice," or "you can't vote by mail." they will get rid of those types of auto complete features during the u.s. election, particularly ones that favor one candidate over the other. shery: alistair barr. turning to another key issue that ties into the november elections, a race for coronavirus treatment is facing greater public safety concerns after astrazeneca halted its phase three trial. the drugmakers has a vaccine is still possible by the end of the year. our guest told francine lacqua

that it's important for scientists to speak directly to the public. >> i think it's really important for the scientists who work at these important public health regulatory agencies to be talking to the public now to improve confidence. i think what we are seeing in the last couple days with the suspension of the astrazeneca trial is that people are hearing about what happened through secondhand reports of investor phone calls from the company. they are not hearing from the scientists who are responsible for making sure the vaccine is safe and i think that is a really big missed opportunity because it's important. normal safety precaution that's put into place. this could be more significant. it could be less significant. we should not have to filter through clues to figure that out. we should really be hearing about what the plan is to evaluate a problem like this so that people can have confidence that it is being done right. francine: the astrazeneca chief executive said, first, they are

continuing to develop this vaccine, and that it could be ready by the end of the year. is that too fast or do we just not have the facts right now? joshua: there are some very interesting research that the fda has done over the years showing that one companies talk about the fda's actions, it's not always accurate. i just do not know what to believe and i think it is a missed opportunity for fda and the u.k. regulatory agencies to be just talking about, you know, what the facts are. people need to hear from them. it's just a terrible that the news is coming out. somebody heard on an investor call that this is a vaccine the coronavirus pandemic. talk to us about it. francine: why do you think they are not talking to us, because they are not used to it or because they don't want to influence the trials? joshua: it's not the latter because if it were the latter, the companies would not talk about it.

you know, it's a lot of history and tradition. agencies generally want to be very quiet, and they think of to be just working behind the scenes, but i mean, in recent years, there's been much more of a push for transparency, and even the fda staff believe there should be more transparency. with a little bit of political leadership here, i think it would be possible for regulatory agencies to step forward. there is nothing in the law that stops them from doing that, and in this kind of emergency, i think it's just really important for people to hear from them. francine: some kids are back at school, back at college. some are not. what do you know about breakouts and colleges? joshua: we are seeing huge numbers of cases in college towns, being driven by college students themselves who have not been taking precautions so seriously. i find it pretty interesting that there are some campuses

where they have been very sternly focused on keeping students focused on the danger, and those campuses maybe are having a little bit less of a problem. -- howilt university much is at stake for students if they decided to have a big bety, and campus seems to doing ok. it reflects a little bit what we know about drinking on college campuses, which is a strong policies and enforcement and education of students about the risk can actually substantially curb drinking on campus. and i am hopeful that, you know, universities will see that path and follow the path of the campuses that are really, you know, treating their students like adults, but adults that have to face consequences if they don't do what they need to do. , vice joshua sharfstein dean. the school is supported by

michael bloomberg, the founder of bloomberg lp and bloomberg philanthropy's peer that's get you a quick check of the latest business flash headlines this hour. india's industries offering to sell a stake in the retail business to amazon. it would see asia's richest man and jeff bezos going from rivals to partners. a $20 billion deal would be the biggest ever for both india and amazon. the pandemic has caught up with singapore airlines. the carrier plans to shed 4300 jobs and that includes -- singapore has been one of the few pick carriers to avoid -- few carriers to avoid job losses by furloughing some workers. the job losses represent around 15% of the total workforce. work from home has come to an end for senior sales staff and traders at j.p. morgan in new york. managing directors and executive directors must return to the office by september 21. employees with childcare issues

and those with medical conditions are exempt. coming up next, citigroup's next ceo shatters the glass ceiling. we will take a look at what the leadership change means. this is bloomberg. ♪ so you're a small business,

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complete collections of iconic tv shows, and more. 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. karina: this is "daybreak asia." i am karina mitchell. senate democrats blocked the pandemic relief plan proposed by republicans on the grounds it does not go far enough. votesailed to get the 60 they needed to advance the bill to a debate in the house. the plan is estimated between 500 to 700 billion dollars. the democrats are proposing a total of $2.2 trillion. a recovery in the u.s. jobs market seems to have stalled with initial jobless claims unchanged. rose.uing claims consensus forecasts projected a decline in both. claims decreased more rapidly

when states began reopening. in the data points to people staying out of work for longer. president trump has made it clear there will be no extension for a deadline to sell tiktok's u.s. operations despite reports its parent was negotiating a delay. under an executive order, bytedance has until september 15. bytedance had been arguing that new tiny regulations are complicating negotiations with microsoft and oracle. pres. trump: we will either close up tiktok in this country for security reasons or will be sold. i'm not extending deadlines. september 15. there'll will be no extension of the tiktok deadline. karina: global news, 24 hours a day, on air and on bloomberg quicktake, powered by more than 2700 journalists and analysts in more than 120 countries. i am karina mitchell. this is bloomberg. haidi, back to you. haidi: citigroup has named its new ceo. she will replace michael corbat.

she will become the first female ceo of a major wall street bank. our reporter joins us from new york. there is a laundry list of challenges that the new ceo will have ahead of her. >> that is for sure. this is not an easy job. citigroup really trails its peers when it comes to its ratio. it comes to when really improving certain areas of its consumer business, and don't forget, we are in the middle of a coronavirus pandemic where the banks, including citigroup, have taken billions worth of loan loss provisions. they have a massive credit card business and credit cards is where a lot of those loan losses are coming from. jane fraser's job. shery: breaking news at the moment. right now, we are seeing the rio

ceo willannouncing its exit the company. we had heard that the board was meeting to debate the future of the ceo given he was placing pressure on the destruction of asian aboriginal heritage sites in australia. now, we have seen investors and legislators in australia expressing alarm with the incident back in may and rio tinto coming out saying it's ceo will exit the company. we will continue this discussion very soon but in the meantime, let's return with a story on citigroup as well. so sonali basak, rising very quickly to our current role as head of consumer banking. what qualifications does she have to take on this global role? sheli: jane, right before was named president at the end of last year, it was really one year between being president and now, less than a year.

she has led the unit at a tough time. very wealthy-- individuals. the consumer unit, which we know has challenges over the last couple of years. she does have some international experience. she also worked at goldman sachs, so there are very few people on wall street with that breadth of experience, both at different firms, strategy and business lines, so hopefully, all of that experience will help jane bring citigroup into a lead that is more like its peers. spoke of course with her back in june about the myriad issues of inequality and representation when it comes to the industry as well as the broader economy. >> we call it the ugly truth. women are paid 73% of what men are because we just don't have enough women in the higher-paying and more senior

roles. that is even more true in our black population. it's true in different parts of the world with different populations. i think the peace now is to begin moving away from the ills and behaviors of the past and start converging on a positive mission for the future. >> what does this appointment mean for wall street? do we get a situation where other banks will be pressured to do more when it comes to women, female representation in the industry? >> that is for sure. remember that this is something that congress has pressured the banks to do before and if you look at the other banks, less than 30% of the senior leadership teams are women and when you brought that out to more than 100 publicly traded firms in the financial industry come out of more than 100 ceo's, only six are not men, according to a report last year so the numbers are really bad and the

other banks, is unclear what the succession plan really is. jamie dimon has been around at least 14 years. brian moynihan at bank of america, 10. james gorman, another 10. there are women on those top ranks, but there are a lot more men. bloomberg's wall street correspondent, sonali basak, with us on that historically significant appointment. let's get you more details on what we are hearing from rio tinto. dramatic news that the decision has been made for the ceo. he will exit the company as pressure has been mounting from protesters from indigenous rights supporters. it needed to be claimed for the destruction of indigenous sites. we are hearing also that a number of other personnel changes will be made as well. the group executive for corporate relations will be

stepping down as well as chris salsberry. it will be slipping down as well. they will be remaining in the role until a successor is appointed, looking keenly as to who the successor will be. he is named a senior independent director. rio tinto saying what happened was wrong and we are awaiting more lines out of that as it appears political as well as public pressure has resulted in rio tinto taking action by way of the stepping down, the exit, of the ceo. we will get a lot more on this overall story and the issue of how corporate australia addresses indigenous rights. one of australia's most prominent advocates will be joining us next. this is bloomberg. ♪

haidi: let's get you a recap of the news that has just crossed the bloomberg in the last couple of minutes. rio tinto, we have seen now the confirmation of the exiting of the ceo, jean-sebastien jacques, will be leaving the company. this amidst significant public pressure, political pressure, after the distraction of indigenous sites in western australia. we are also hearing a few more details. rio tinto suggesting the obvious, what happened was wrong. also, a few more personnel changes.

seeing the corporate affairs head stepping down as well. rio tinto saying that jb will be remaining in that role until a successor is appointed so we will continue to wait for some of those details to emerge, but certainly a seismic shift. let's get some immediate reaction. we are joined by one of australia's most prominent advocates for indigenous rights, professor marcia langton. such a pleasure having you on with us. i just want to get your immediate reaction to this breaking news that the ceo of rio tinto is exiting. is this a kind of highest level of accountability that we need to see in response to something like this happening? marcia: thank you. i'm very pleased that the board jacquesd jean-sebastien and simone to leave the company. that will give the company room important is the most

course that they should take, and that is to find the right person to rebuild the internal culture of the company so that continue todoes not destroy important aboriginal sacred sites and treat traditional owners, aboriginal owners, with the contempt that jean-sebastien jacques and simone have. ,aidi: this is an important high-profile, very significant step for corporate australia, but it is, i would imagine, if step what more needs to be done by the new ceo, and leaders across the mining and business community, to be able to repair some of these relationships? in addition to that, what role does the state government need to take? marcia: aboriginal leaders

andonsible for native title cultural heritage across australia have formed a first havens alliance, and recently met with the federal minister responsible for cultural heritage, minister susan li. we are asking for the minister to lead and australia wired partnership approach to revising very out of date cultural heritage legislation that allows mining companies like rio tinto to destroy our cultural heritage on a whim. we know that one of the reasons for rio tinto making the decision to destroy caves that occupation, of our our ancestors 46,000 years ago, was to make contractual

obligations to provide a particular mix of iron ore exports to china. the decision to destroy the caves appears to have been made on the basis that the ore beneath those caves was the high-grade ore they needed for that particular mix. so the cultural heritage legislation across australia falls far short of our requirements. acts that provide better protection for traditional owners. the act in the northern territory and the act in victoria, but improvements can be made in western australia. yesterday, bhp announced that they set up a cultural heritage counsel with the traditional owners in relation to their mining projects there.

congratulate bhp for starting andove ahead of the pack begin proper negotiations with traditional owners on a regular basis so that sites are not destroyed. tooi: have miners focus much on negotiation with traditional owners instead of trying to get the consent of the communities there? marcia: the destruction of the caves is apparently legal. both the terms of cultural heritage act in western australia and the indigenous land-use agreement negotiated with the traditional owners many years ago, and which is registered with the federal court in australia, but we can see from the evidence of rio tinto to the senate inquiry into this matter evidence which was in some respects very misleading, and i know that the

chairman has called out the company for misleading the senate inquiry, and so, neither the legislation nor the title agreement protected the cultural heritage. the company found ways around legal obligations to go ahead and destroy this precious site. issues,iven the ongoing would it help to have more representation of indigenous communities in leadership positions or board roles going forward in order to avoid such issues? vast majority of rio tinto's profits come from the pilgrims. as the treasurer in western australia or the deputy premier stated recently, rio tinto is a pilgrim company which knows nothing about the pilbara.

rio tinto needs an aboriginal person on its board to represent the interests of australians. the company has, since the appointment of jean-sebastien jacques, treated australia like a resource colony, based as it is in london, and the board, too, should take note of the way that australians feel about how the company has treated the countries in which most of its profits are sourced. ,aidi: professor marcia langton how do you feel about sharing models between governments and corporations? do you attribute much of the blame to lax regulations that allowed for this to happen? marcia: the cultural heritage act is over 50 years old. promulgated in western

australia in 1972, and section 18 c is an open door for mining companies to obtain government approval for the destruction of sites. as far as i know, no minister has ever refused permission to destroy an aboriginal site. thousands of sites have been destroyed. moreover, the federal legislation, which the traditional owners have been has to seek remedy from, been completely ineffective, and neither the minister responsible for that act nor the indigenous minister gave the traditional owners assistance when they approached them to find relief from the impending destruction of the caves, so yes, there is an urgent need for revision of legislation, and that is why the first nations are calling for a partnership approach with all

the australian governments involved and the aboriginal leaders of the native title bodies and land rights bodies to harmonize the legislation and thee the standards to accepted international standards for the protection of cultural heritage. do using shareholders, and i include within that funds as well as institutional shareholders, need to put more pressure on corporations like rio tinto, like bhp, to really advance progress when it comes to these issues? marcia: i am very grateful to those shareholder associations that have been putting pressure on the company in the last couple of months. the local government pension fund of britain, more recently, others,ralian fund and

they have all written to the company, and some have given evidence to the senate inquiry, and there is widespread dissatisfaction amongst shareholders about the contempt for cultural heritage that rio tinto has expressed and the resistance to reforming to create a culture of competence, and i call on other shareholders to pay attention to this issue. they are investing in a company that has created a culture of incompetence in relation to the communities in which it operates. thecompany has treated pilbara community with utter contempt. haidi: professor marcia langton, before we go, we have seen the black lives matter movement gained momentum in the u.s. hasmuch momentum and vigor

that lend to indigenous lives matters in australia and does that go some way to create visibility and draw attention to, as you say, this level of contempt that you see that i think in the past has at least from the mainstream gone largely invisible? -- police killings of -- the campaign to stop police earlygs began in the 1980's. aboriginal women formed a inpaign and were successful having a royal commission established to inquire into aboriginal deaths in custody. the commission considered 99 cases and reported to the federal parliament in 1991. it made over 300 recommendations . most of those recommendations have not been implemented or not fully implemented.

hours, the last 48 another aboriginal woman has died in custody in brisbane. an inquiry inby south australia has found that the death of an aboriginal man was completely unnecessary and once again, the police are likely to not be held accountable for their actions. custodial officer in australia has ever been held accountable for the death of an aboriginal person. now by my reckoning, we must have 700 or 800 deaths and still counting since the commencement of the royal commission into aboriginal deaths in custody. we know that there are between 400 and 500 aboriginal deaths in custody that have occurred since 2008. shery: university of melbourne associate professor marcia langton, thank you so much for your time and insights.

breaking news, japan's ppi numbers for the month of august coming right on line with estimates as a contraction of .5%. this would be the year on your number and it is a growth of .2% month on month. in line with estimates. but we are seeing is a smaller year on year drop, smaller month on month gain, bigger month on month gain than in the previous month. of course, we have seen ppi numbers, inflation being supported by this pickup in commodities prices with a recovery in chinese demand as well. this is bloomberg. ♪

shery: india's richest man is offering amazon's jeff bezos a $20 billion chunk of his retail -- potentially turning the rivals into allies head let's get more from our senior analyst. sense does this deal make? longer-term,lly, if you think about how important india's market is for amazon's growth story, right now, it's a small percentage of its business, but longer-term, from a market potential standpoint, it's biggest outside the u.s. so that's why i think, strategically, having a brick-and-mortar strategy is important, given how the regionalized behavior is different, so i think, you know,

probably, they are trying to regionalized their strategy -- regionalize their strategy, given retail is 35% of india's regional market. it is growing pretty quickly, but still, to go after the bigger lump of retail segment, there needs to be a strategy that they need to have a place in, and that may be the rationale they are looking at. haidi: who gets the better part of this deal here? jitendra: i think if you look at their reliance side of the equation, actually, the deal that they struck with facebook, taking the local businesses and trying to sell on whatsapp, that ofes them a big sort advantage strategically. at onto that, the offline strategy also, going with a partner like reliance, the

logistics network would be a big support. from an all-around basis, if you look at the reliance, you might see benefits sooner. shery: jitendra waral with the thest on amazon and also potential deal. breaking news at the moment. we are getting the first 10 days of trade numbers for south korea when it comes to the daily average exports falling 11.9% year on year. the exports number in general falling 0.2% year on year. imports dropping 7.6%. a huge boost when it comes to 43.2%exports of chips, up year on year. you have seen the export numbers and south korea worsening a little bit after we had seen improvement in the past three months. of course do have the south korean open in just a few minutes at the top of the hour, so we will bring you that and

the japan and australia opens as well. do stay with us. this is bloomberg. ♪

shery: welcome to daybreak: asia. i am shery ahn. >> asia's major markets have opened to trade. lower after aook sellout into the red. >> the rio tinto ceo headed to the exit. he is outed along with another of other executives.

and we hear from the finder -- founder of echo lounge. south korea, getting online. let's get to the market action. we are seeing muted moves in tokyo. nikkei futures opening flat. the index less than 2% away from a racing year to date losses. for an advisory about national security. opening slightly higher. barclays seeing the upper bias easing for yields. after the 20 year auction. south korea, we are keeping an eye on bonds with the government set to submit its proposal. let's check in on the kospi to see how we are faring. lower by 0.2%. we do have contents under

pressure. benchmarks have led the charge. sam song, slightly under pressure. office era .2%. days of the month, we did have growth stabilizing somewhat when it comes to shipments and ship exports stabilizing. are keeping a, we close eye on rio tinto shares in news the ceo and iron ore chief will be stepping down. instead, the hp -- bhp. by 0.2%.f we do have the aussie dollar just slightly higher but it is set for a second weekly drop along with the kiwi dollar. as we wrap up, a choppy week that took the wind out of u.s.

tech stocks. asian tech players outperforming u.s. peers. 16% gain inect a the regional gauge compared to the 5% increase seen for the nasdaq. the next 12 months. >> let's get more perspective when it comes to the equity selloff. i want to bring in the head of global equities. let me set up a chart. as you get a sense of risk aversion going into november. the volatility curve showing and desist more worried about the coming quarter than they have been in some time. , goingk at the curve into the november election. does that suggest we are unlikely to see a meaningful

rebound in risk assets before that? vixt is definitely true the has been creeping up the prior months. we look at it as growth stocks and tech stocks taking a breather. volatility, investors anticipating a lot of economic growth in the future and a vaccine. mixed news. getting the timing of the vaccine is uncertain. u.s. china tensions remain hot. we do view it as there is going to be a lot of volatility. we don't think this is a tech bubble. the last time in 1999, we had high interest rates and we were going into a recession. these growth companies of today have strong earnings, high returns on investments. we think they will go back to trading at a premium after a breather. >> what do you like in terms of

opportunity within asia? we are seeing some markets underperform. are there specific opportunities you think are looking better than u.s. orchids? regions likertain china which has done a good job dealing with the covid crisis. we like macau gaming, reopening to tourists this month. companies, increasing health care and medical treatments to help lower risks. consumer and -- you can get companies like alibaba, which are very diversified and have attractive valuations.

the view the dollar might get weaker is a positive. we are a fan of china and certain sectors in asia. >> we have just south korean trade numbers. what caught me was the chip export sector. rising 42.2%. how big of a boost will this provide? reliantly given how taiwan and south korea can be. >> korea and taiwan can be beneficiaries. increasing u.s. and china trade tensions. seminies such as taiwan are well predicted. it is a mega cap company. inwill benefit from the ramp 5g. we would like taiwan semi a lot. areas definitely can benefit.

they are going to be volatile based on what is going on with the technology. they have been very strong. we expect that to continue. call, we havelar seen a little bit of strength. sustained? on the dollar is with bloomberg rates -- with low rates and growth, we think u.s. growth will start to moderate. there are pockets of weakness and that will hold the dollar down which will be a positive for non-u.s. markets. ownhe u.s., we can still large-cap companies which are economic growth.

you can sometimes find better values and technology and leverage some of these trends such as the consumer which are growing quite quickly. thank you so much for your time. let's get a check of movers. we are watching nomura. informationt with that -- information from corporate clients was released. we are seeing a little bit of pressure there. watching some of the miners including rio tinto. beer hearing the ceo will stepping down and the process to find his replacement has begun.

the rio tinto chairman acknowledging what happened at the digit site -- indigenous site was wrong. they are determined to make sure the destruction of the heritage site does not happen again. a key iron ore player there. next, the airport lounge is an indicator of travel or lack thereof in the pandemic era. -- aboute speaking what he sees ahead for the travel industry. this is bloomberg. ♪

"daybreak watching asia." e.u. headingthe deeper into a split. refused toon's

change plans to rewrite the accord. -- ecb president christine lagarde has painted an optimistic picture of the eu economy, saying manufacturing continues to improve and data suggests a strong rebound. she said the bounceback next year will be about 5%. risksrall, the balance of to the euro area is seen to remain on the downside. this assessment reflects the uncertain economic implications of the pandemic. >> hong kong police have arrested 15 people in connection magazine is- the

owned by a vocal government critic. next digital soared by more than 1000% in two days. citigroup has named jane fraser the next ceo, making her the first woman to head up a wall street bank. bank sincen with the 2004. she will replace mike corbat, who is retiring. she will join the board immediately. global news, 24 hours a day, powered by more than 2700 journalists and analysts. back to you. personal changes put at risk rio tinto's management. the ceo among other officials

will be exiting over the destruction of an aboriginal heritage site. paul allen, we were speaking to a professor. this is what she had to say in terms of what the next steps need to be. >> that should give the company room to do what is the most important course they should take. right personnd the to rebuild the internal culture of the company so it does not to destroy important aboriginal sacred sites and owners andtional australians in general with the contempt they have. >> all of that is a big ask.

we are seeing the first steps in this case. >> that is right. heads have rolled. the ceo is gone, but he will hang around until a successor is appointed or march the 31st year. the other two executives involved in this, chris salisbury, he will leave at the end of the year. willanaging director replace him. alsoer executive will leave at the end of the year. just to recap what happened, this was back in may rio was expanding blasts. it did get permission. it failed to take into account a steady conducted a year later which revealed how significant that site was. with were rock shelters

evidence of humans from more than 40,000 years ago. simple tools and artifacts as well. rio disregarded that and was able to access another 8 million tons of iron ore. we have had a statement saying what happened was wrong. we are determined to ensure the destruction of heritage sites of such exceptional significance never happens again. hisceo paying for it with job. >> we have seen the criticism mounts since then. how did the initial response fall short? >> it was quite a reversal. last monthok -- was the chairman was backing the ceo. and then pressure came from all sorts of places. us trillion super, the largest pension fund, wanted -- us trillion super -- australian

super wanted them to reconsider. the pension fund did not consider that was enough. other funds back that up. saidealth employers fund it was concerned about the response. a number of advocacy groups were worried such a weak response was going to clear the pitch with the western australian government on it came to winning future approvals. the heritage group as well said it was hardly a punishment. saving money on bonuses and ore.ng access to more iron that resulted in the turnaround today. >> still to come, no extension. donald trump said his september 15 deadline for tiktok to divest u.s. assets will stand. this is bloomberg. ♪

>> president trump says he will

sellxtend the deadline to tiktok's u.s. asset. they are likely to miss the september 15 deadline. let's get more from stephen engle. even the deadlines are a bit fuzzy. what are we expecting? gray area. donald trump has said the deadline is next tuesday. he reiterated on the tarmac on his way to michigan we are either going to shut down tiktok in the u.s. for security reasons or we will have a sale and there will not be an extension of the deadline beyond september 15. there are disputed dates here. back on august 6, trump signed the executive band. days. for 45 45 days, it is september 20.

is that the deadline? or is it november 12. there was a second order ordering the sale of tiktok's assets within the u.s. within 90 days. that would put it off to the election. -- after the election. there are competing time frames. we have a bloomberg exclusive story saying the white house toicials had been scurrying figure out if they could potentially extend the deadline. the rule mandates the chinese government must scrutinize any potential bid ordeal. outs a lengthy and drawn and comprehensive process so

they cannot possibly meet that deal. white house officials are potentially going to take it to donald trump to ask whether they would consider an extension of the deadline. not readyy they were to give it to him yet because he had some other priorities. he was asked on the tarmac and he basically said, no extension of the deadline. , am not sure whether his aides whether they are scratching their heads saying what do we do now? you have to wonder if they are scratching their heads, too? what does that mean for valuation, pricing? >> valuations have been all over the place. we have heard $30 billion, anywhere from 20 to 50. even 30 is probably too rich for

some bidders. they are hoping to get a cheaper price. we heard maybe $10 billion. we know microsoft is leading one bid along with walmart. the other bidder would be oracle. we are waiting to see if they are we to scramble to meet deadlines. we are not sure. >> stephen engle there. with the latest on tiktok. let's get you a quick check of the business flash headlines. india's -- selling its retail business in amazon. it would see the asian businessmen go from being a rival to partner. to growth ined greater demand for cloud. first computing -- first-quarter sales rose. they have been revamping a

business model to deliver more software through the internet. -- revenue was up 170 2% for the fourth quarter, at $670. -- $607 million. we will be watching shares in said after nomura information was leaked by an employee to a security firm. 275 companies was leaked. it included dealings and transactions with the nomura domestic -- they had already been a holdout over the last year. they are trading lower by about 1% in the session. the pandemic has caught up with

singapore airlines. the carrier plans to shed 4300 jobs. theapore had been one of few carriers to avoid job losses by furling some workers and redeploying others. around losses represent 15% of the total workforce. come to anome has end for senior sales staff and traders in new york. executive directors must return by september 21. issueses with childcare and medical conditions are exempt. india is planning incentives worth $23 billion to attract companies setting up manufacturing plant. incentives in a range of industries. looking to lore is this away from china. two dozen companies including samsung have pledged to set up

mobile phone companies. nikkei reversing declines. holding steady at the moment. real estate and communications stocks weighing on the index. we did have japanese august ppi numbers in line with expectations. korea watching south because we got there first 10 days of trade numbers. daily average exports falling for the kospi holding steady. this after seeing the best day in a week. 200.a look at the asf it is that the lowest level since june. rio tinto, after they said their ceo would be exiting. kiwi stocks at the moment, losing 0.6%. we had august manufacturing pmi

numbers which came in quite low. currencies right now. the japanese yen has been holding within a trading range. we are talking about the 106 level. not doing much today. alsoffshore he one -- yuan steady. as we continue to see china u.s. tensions. the aussie dollar, a little bit of pressure on u.s. strength. we have some safe haven moves. on weakening after seeing gains in the previous session. ing marketen emerg currencies gaining. rates unfold suggesting the worst is over for the southeast asian economy. this is bloomberg.

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and texture, so they'll blend right in for a natural, effortless look. call in the next five minutes and when you buy 500 strands, you get 500 strands free. call right now. (upbeat music) asia." is "daybreak the ceo isays stepping down and they are working to identify a successor. rio has been under pressure after destroying ancient inriginal heritage sites may. other executives are also departing. the ceo will remain in his role until a successor is found. has detected a series

of attacks aimed at disrupting the u.s. election. they are said to have targeted people associated with the campaigns of donald trump and joe biden. microsoft said the chinese group targeted joe biden. senate democrats have blocked a slimmed-down pandemic relief plan on grounds it does not go far enough. republicans failed to get the 60 votes they needed to advance. the republican plan is estimated anywhere between 500 billion dollars and 700 billion dollars. democrats are looking for a total of $2.2 trillion. rageires continue to across the west coast and threatened to be the worst in oregon's history. to the south, the largest fire continues to burn out of control. the august complex fire has

burned through more than 1000 square kilometers. the u.s. has sold its hong kong consulate to a local developer. the compound, one of the territories most exclusive been valueds, has up to 450 $1 million. a u.s. government representative said the decision was part of a global reinvestment program. global news, more than 24 hours a day. i am karina mitchell. this is bloomberg. let's go to sophie cameroon with another check at the markets. seeing modest moves across asia. with banks weighing on the benchmark. rio tinto falling below 100 aussie dollars. amid news of the iron ore chief

heading for the exit. we had the kospi come off of a date session. digesters higher as we the figures. murmur on theper benchmark. it is sue -- performer on the benchmark. futures edging slightly higher at the start of trade in asia. let's check in on commodities. glow -- gold fluctuating. little upward momentum. copper futures under pressure. on theors casting doubt scale of chinese demand. oil prices diverging. set for the worst two weeks since april. back when futures went negative. i want to pull up the chart in the terminal 2 focus on southeast asia.

sparked by a tougher locked down and posed in jakarta which could spark more fears around investors when it comes to jci and the region. we have seen stocks a lag. asia with some benchmarks down more than 20% to date. foreign clients have sold off about $17 billion. relatively speaking, malaysia, the line in orange has been a relative bright spot. this as we are seeing signs of economic recovery but perhaps a little bit of pressure coming through in the glove maker space. biggester the world's glove maker was downgraded. >> the malaysian central bank interest ratesy unchanged. actedlaysian central bank

as everyone in the bloomberg survey expected. justify a hold even under the circumstances? >> it is a steady as she goes decision. pushed cuts ofdy 125 basis points. ey did also keep the gdp projection, three point 5-5% contraction. it showed the worst contraction since the asian financial crisis. that is similar to others in the region. everyone had a disastrous second quarter. malaysia has been among the more fortunate or maybe we should say less unfortunate. there is not as much urgency to push the interest rate down further. we have seen fewer cuts as of late. the last time one of them cut

was in mid july. some are waiting to see how earlier policy filters through. others do not have the room. a steady as she goes decision. not much change in the decision-making yesterday. >> what else should we be watching out for? decision-making? >> a lot of factors to watch. one unique to alicia is inflation, quite muted. they are likely to average negative inflation. before bouncing back next year. going to be as bumpy road. going to be is uneven across sectors. they are willing to use policy levers as appropriate. they flagged significant downside risks.

one of the levers we might see is the reserve requirement ratio. they kept that steady. they intend to pump liquidity into the banking system. for now, that is not seen as necessary. chat with -- the airport lounge. this is bloomberg.

>> few sectors have been harder hit in the pandemic than travel and tourism. says the pandemic will profoundly affect sectors. in group has interests airport lounges but also hotels and dining. the estimate of travel, how hard were you hit with the pandemic? are you seeing a recovery? -- outlets in 49 airports. we lost about 90-95% of our

business. ,e are lucky after a few months we are offering 40% of operations. of of this 40%, 65% companies from asia director read also, and north america. as we continue to emerge from this pandemic, what will airport lounges look like any post pandemic era? >> it is an interesting question you ask. -- and we received 2000 responses. over 1600 say airport lounges , a new a necessity luxury in travel. said thelways

fundamental thing is hygiene and safety. we make sure we therve the operations, hygiene in the airport. also, where we do the fa. and water out food with a touchscreen. -- order with a touchscreen. mucham wondering how consultation is going on between your business, airports and governments to lay the groundwork for international travel? i am not about for the

consumer or travel to revitalize, we have to work on consumer confidence and business confidence. we have to work together airport, country to country. effective and visible. safety, hygiene, gets respect. technology, check-in and boarding. screenings. think that is very important to implement. i think we all have to recognize the system to boost the confidence of the consumer, of

travelers. governments have an important role to boost travel. the traveling has reached about 90%. reasons we can do it. thetries can continue economy as well. with technology, by working together, you can issue a health certificate. it is quite important for them to see the boost of the confidence of the travelers. say consolidation within the lounge and suppliers and that sort of business, do you see it as long as the pandemic

drags on and we do not see a resumption of travel volumes? -- certainlyering airlines are suffering tremendously out of this pandemic. again, airlines going through a big consolidation, for example the business i am in in lounges, i -- i am sure -- it is more effective. role inys an important the aviation industry to help the airlines to consolidate their lounges and also try to avoid -- in the aviation business. that was plaza premium group

founder joining us from hong kong. one of the biggest residential estate developers will change -- says covid will change the way people live and work in urban areas. toinesses have had to adapt a new rowdy among the pandemic. themberg spoke with chairman about some of these changes. >> we will try to get that conversation to you as soon as possible. course is ame of big focus there as well. as we get more discussion as to what the return to a new normal, we will get that conversation in a fewa vanke minutes. mulan opens amid calls

for blackouts and china. we will get you the latest next. this is bloomberg. ♪

flash's get a quick headlines. citigroup has named jane fraser as its ceo. she has been with the bank since 2004 after a decade with

mckinsey. shewill replace mike corbat will join the board immediately. after shares falling information was leaked to a security firm. data on 275 companies was leaked. information on dealings in ets. been hold already over -- work from home has come to an end for senior staff in new york. andmanaging director subordinates must return to the by september 21. people with medical conditions are exempt.

>> week pre-sales numbers mulan's remake -- disney's mulan remake is in for a tepid opening. it has been at the center of controversies. there are many challenges the film is facing as disney tries to use this as a litmus test to how its new model will work. mulan is facing a lot of challenges right now globally. found mulan saying -- government department where muslim leaders have been led to a global boycott of mulan. boycott a separate movement against mulan because

the main actress supported hong kong police during antigovernment protests last year. also, there is a piracy issue because it was released in platform andaming there are already some high-resolution pirated copies for download in mainland china. rating websites have already had a with spoilers. mulan is facing a lot of problems right now. outlook in china is not very certain right now. >> tell us a little bit about the expectations for box office sales. china, the largest -- predicted the total box office 42.6 million dollars

u.s. which is not much. compared tower warner bros. tenant. office which was predicted at $59.4 million u.s.. opening box office production is lower than that of tenant. >> is the film is unpopular with those who believe leaders supporting hong kong police brutality. there are also geopolitical tensions between the u.s. and china. does that put at risk success in the u.s. market? heard some rumors chinese officials are asking chinese media not to report about the opening of mulan in the controversy elsewhere in the world.

that certainly is one of the major risks for disney. coverage, thedia publicity of the film would not be that high. mulan cost $200 million u.s. one of the highest costing films produced for disney. disneys little question wants to further develop china's market -- is still butterfield confident about long-term growth. >> the billing mess you mentioned is important. we were a pretty young company in the grand scheme of life.

rightfully, i think, there is a lens of skepticism whether the growth is durable. what happened this quarter is different. pandemic, 30%bal globalized contraction. customers000 new which was fantastic. it brings the total to 130,000. small andgoing to be medium businesses around the world. companies freeze hiring, when they do layoffs, it shows up in our billings number. more or less instantaneously. take longer effects to materialize. what you will see happen over the next couple of quarters, the next year or couple of years, we will continue to build

credibility with investors. we are very confident of this growth is durable. is future we are building one that has a lot more opportunity than the one we are leaving. bit long answer, i apologize but i think it is important. an antitrust microsoftand warned could retaliate. how much of a threat is microsoft and i am curious if their posture has changed behind the scenes? are they softer and friendlier than on the surface? >> no change. it is hard to quantify. the important thing for us and for them, too. the market is so big, they are not going to be a limiting factor. does conserve some friction

in the buying process. hand, darwin rates rates are unchanged. we have consistently won and environments where teams go head to head. teams more common case is used alongside others. zoom is the one we happen to use. it doesn't do the same thing. would my life be easier if microsoft somehow ceased to exist? absolutely. 49% growth from last year and acceleration in the rate of new customer acquisition demonstrates we are doing ok, anyway. >> we are less than two months away from the election. microsoft pursuing tiktok.

if president trump stays in force, what does that mean business? -- it is hardl in to compute what the reactions will be and the ramifications. if trump wins, we are going to get extra trump because he will be emboldened. this will be his last term so he has nothing to lose. we will get a lot more of what we are getting. biden is going to be concerned with a return to normalcy. as an operator of a business, i prefer the second path. i am feeling pretty confident this is not going to be a disaster. because of the magnitude of the impact of things going wrong,

and election that things do not work is high, it is something to be concerned about. from do have an update johns hopkins coronavirus tracker. trucking 28 million global coronavirus creases -- tracking 28 million global coronavirus cases. ♪

♪ david: it is 9:00 a.m. in beijing and shanghai. welcome to "bloomberg markets: china open." i'm david ingles. we are counting down to the last trading session of the week on the chinese mainland and here in hong kong. top stories, president trump refusing to stop the clock on the deadline for tiktok to exit u.s. operations. ♪ citi