global news 24 hours a day on air and a bloombergquint take -- bloomberg quicktake. this is bloomberg. thank you. coming up, a new approach. the fed takes a more relaxed to line on inflation. we will hear from jerome powell next. next. >> this is "number daybreak europe -- bloomberg daybreak europe. shinzo abe plans to resign due to health reasons according to a local news organization. we wish him well. we should take a look at what is going on with the dollar-yen this morning. you can see a drop of the dollar against the yen. it is down nearly 0.3%. jp morgan actually recently put out a note talking about the fact of what that risk would be if shinzo abe is leaving the prime minister position, and they were looking at $100 per again. they said it would be a short time reaction, but we have worse will be watching as we see it dropping more. the u.s. dollar down 0.4% against the yen. we will be keeping track of the story. shinzo abe plans to resign due to health reasons. treasury yields jumped at the announcement from jay powell on inflation yesterday. the yield premi

global news 24 hours a day, on air and at bloomberg quicktake, powered by more than 2700 journalists in more i'm 120 countries, leigh-ann gerrans. this is bloomberg. yousef? yousef: thank you very much, leigh-ann gerrans. let's talk about saudi aramco because the company is pressing ahead with a planned 75 billion dollar dividend this year, despite a slighted profits and rising debt. and a widening budget deficit. we are joined by annmarie hordern. we have seen other oil majors alter dividends. how sustainable are saudi aramco's ambitions to live up to the promise that they made yesteryear? annmarie: you can take from this report that they are going to maintain the dividend as long as they can and squeeze the business in order to maintain that dividend. they are holding firm on it. we know, for all oil majors. for saudi aramco, you know better than anyone else being in the region, it is so crucial for the government, the revenue they get from crude and the revenue they get from aramco, and the dividend is no different from that. those revenues will be funneled through the state, and

global news 24 hours a day on air and on bloomberg's quicktake, powered by more than 2700 journalistsnd analysts in more than 120 countries. i'm karina mitchell. this is bloomberg. ahead, jobs and spending data due out for japan later this hour. plus we have top guests talking about the market outlook ahead of the rba decision. be checking the playbook on it comes to stock lips. -- stock. this is bloomberg. ♪ ♪ a better-than-expected earnings season has created the best august and 17 years for asian equities. take a look at this chart, the msci asian on track for a fifth straight month of gains. this trick will be tested this week with a flurry of eco-data including pmi numbers from a number of emerging markets. joining us is a strategist. great having you with us. can emerging markets really trust this august rally given there are so many risks around the corner, whether it is china-u.s. tensions, or u.s. and india, australia tensions? >> there are certainly a lot of banana skins on the way, and knowing on the back of what has been a strong rally would be more challenging. but fundam

global news, 24 hours a day, on air and on bloomberg quicktake, powered by more than 2700 journalistsnd analysts in more than 120 countries. this is bloomberg. thank you very much for that. coming up, tensions rise as beijing files missiles into the south china sea. .he u.s. imposes sanctions we discussed the risk. this is bloomberg. ♪ manus: daybreak europe. i'm manus cranny. tensions between china and the u.s. are escalating over the south china sea. beijing fired medium-range listing missiles into the waters as trump and the administration are imposing sanctions against chinese companies that set up outposts in the disputed region. the action comes a day after china protested a flyover by a u.s. spy plane. china says it has made concessions to let the u.s. regulators order some of it sensitive companies. beijing chairman says wants to resolve the standoff over accounting issues. he also underlined that more chinese financial markets would benefit, both on the mainland and foreign investors. up has always been a key strategy of china's growth over the last 40 years. that is also tru

global news 24 hours a day, on air and at bloomberg quicktake, powered by more than 2700 journalists and analysts in more than 120 countries, i'm ritika gupta. this is bloomberg. tom? guy? tom: thank you so much. equities, bonds, currencies, commodities. it is a turn market. this is what you always see on a monday at -- h schoen market. this is what you always see on a monday. what we really look for is a yield structure moving higher off of what was his see -- what was seen as a pretty good jobs report. we will reset that monday and tuesday as well. i would know that the turkish lira, let's recall on friday, mr. erdogan spoke, and lira strengthened nicely off that. what you need to know is it has given up with a vengeance all of the improvement off the erdogan comments on friday. ,eally now it is 7.40 threatening further weakness. guy: -- guy, what do you see this morning? guy: european equities fading after the numbers were announced. we are now back to flat, trading on very light volume as you have pointed out with the august volume very light last week. that has continued into thi

global news 24 hours a day, on air and at bloomberg quicktake, powered by more than 2700 journalists and analysts in more than 120 countries, this is bloomberg. tom: equities, bonds, currencies, commodities. the churn before a big jobs report, no question about that. we pull it back right now, but i don't want to make a big deal about yields being in. we will talk about that in a moment with steven major of hsbc. oil churning. i would say one of the nuances that is out there is stronger euro against weaker yen. you see that with euro-yen going out to 125. i will let you talk about the turkish lira. francine: it is weaker. we have in mentioning it for the last couple of days. talking about the forces at play, if you look at the charts, it is pretty incredible, and we have a great story saying it is a perilous game of financial markets reaching crossroads with the lire tanking again. i'm also looking at gold. there are are a lot of questions about what gold is behaving like because it is tracking some of the stocks in the u.s. and it is maybe not a safety play like it was three or four

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'm ritika gupta. this is bloomberg. ♪ >> four years later, the state of this nation is very different. more than 150,000 people have died, and our economy is in shambles because of a virus that this president downplayed for too long. obama-- tom: michelle with quite a statement to end the first night of the virtual convention. joining us after virtual sleep, kevin cirilli, our chief washington correspondent. we could go for an hour over the political experiment last night. let's start with the theater of it. was it successful? kevin: i think former first lady michelle obama, from the details of the vote on her necklace to her eyes glossing over when she spoke in passionate terms, really was one of the only individuals -- and i would argue set the template for how these virtual conventions ought to go. she didn't play to a stadium. she played to your cell phone. that could be replayed one-on-one, and it was very inviting. if you are not going to

global news 24 hours a day, on air and at bloomberg quicktake, powered by more than 2700 journalists and analysts in more than 120 countries. i'm ritika gupta. this is bloomberg. ♪ pres. trump: we've gotten much of what we wanted, and they didn't get what they wanted, and they would have, and i guess they still could, and all fairness. i hear that nancy pelosi wants to call and see if she can do something. but they are much more inclined to make a deal now than they would've been two days ago. jonathan: that's one of you. from new york -- that's one view. from new york city this morning, good morning. here's the price action this monday morning, two hours and 12 minutes away from the opening bell. two weeks of gains on the s&p. we are up two points on the s&p 500. yields down a single basis point on 10 year to 0.55%. pulling back down to $1.1751, down 0.3%. the focus still on capitol hill. grating, tojust see this versus the chaos down on capitol hill. tom: the vix, 22.9 two, speaks volumes. under 23 is really remarkable. kevin cirilli is our chief washington correspondent. this could

global news 24 hours a day, on air and at bloomberg quicktake, powered by more than 2700 journalists and analysts in more than 120 countries. i'm ritika gupta. this is bloomberg. ♪ on capitol hill have stalled. from new york, this is "bloomberg surveillance." alongside tom keene and lisa abramowicz, i'm jonathan ferro. your equity market shaping up as follows this tuesday morning. equity futures up 20 on the s&p. can we make it eight straight day of gains on the s&p, currently the longest daily winning streak going back to late 2017? all about dollar weakness through g10. the euro is firmer. the only currency the dollar is doing better against is the japanese yen. that speaks to the risk appetite improving. $1.1791.dollar at tom: in the silence of washington is kevin cirilli, our chief washington correspondent. without question yesterday, the moment for me was mark zandi of moody's framing out a 10% unemployment rate is actually 14%. has a longg, axios dissertation, the granularity of food kitchens around this nation. they are talking about the pandemic depression, and we have radio s

global news 24 hours a day, on air and at bloomberg quicktake, powered by more than 2700 journalists and analysts in more i'm ritikauntries, gupta. this is uber. francine? tom? .- this is bloomberg' francine? tom? tom: 30 year bond, the tips that everybody is following. the real yield, -.99 percent. francine? francine: european stocks are actually fluctuating. if you look at, you know, full faith and technology lead rally, chanced by poor economic data from the region that you mentioned, france pmi is significant, falling estimates. it also germany was disappointing. so i'm looking at the euro go down a touch, and if you look at the offshore fund, rising to the strong this level in seven months against the dollar, china's economic market rebound from the pandemic was one of the fastest in the world. so keep an eye on china and what they will know next. tom: we could go many ways in a three hour conversation with kevin cirilli. unfortunately, we only have minutes here. what i want to do with our chief washington correspondent is drive forward the conversation. at first, last night, vic

global news 24 hours a day, on air and at bloomberg quicktake, powered by more than 2700 journalists and analysts in more i am ritikantries, gupta. this is bloomberg. tom: thanks so much. let me do a data check here. i don't think enough has been made about the equity market, one day up, two days up, three days up. led by tech but dragging others up as well. futures up 12, dell futures up 152 points, 28,391 on the dow. honeywell, amgen, salesforce.com. did not play yesterday, they play today. yield, 10-year are we and chairman power watching closely. it has been -- chairman powell are watching closely. churning a little bit weaker. anna? upside bring you the reaction to the trade news overnight through europe. on european percent stocks. the dax is doing pretty well compared to the others when you look at year to date performance. we watch that one very closely. where we see optimism from german businesses, better mute music -- better mood music between china and the u.s. we sell the dollar and buy currencies, and the euro and the pound both go higher. tom: it is a second night at the

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'm. -- i'm ritika gupta. this is bloomberg. ♪ mr. obama: this president and those in power, those who benefit from keeping things the way they are, they are counting on you. >> they kicked dirt in the face of everyone else, but we can build a thriving economy by investing in families and fixing what is broken. >> i know something about the slings and arrows she will face, and believe me, this former district attorney and attorney general can handle them all. sen. harris: let's fight with conviction. let's fight with hope. i accept your nomination for vice president of the united states of america. that kevin accept cirilli will work 15 hours a day. our chief washington correspondent here with prospective on those voices we heard last night. our convention coverage, 9:00 to 11:00 tonight with david westin and kevin cirilli participating. the theme to me right now is a negative vote. not so much, i want to vote for trump, i want to vote for biden

global news, 24 hours a day, on air and on bloomberg quicktake, powered by more than 2,700 journalists and analysts in more than 120 countries. i am leigh-ann gerrans. this is bloomberg. francine? francine: thanks. on trade, the six-month review of the trade deal has been called off. president donald trump, meanwhile, has continued to make his tough position on china a key in the lead up to the election. they are continuing to blame china for the coronavirus. now, let's get the latest. a look at all of the trade for us. what exactly happened? know whato not really happened to the talks. they were never on the public scheduled to begin with, either on the u.s. side or from the chinese side. they were supposed to be sort of a routine catch-up, a status report, on the trade deal that was signed in january. but, obviously, they could not get enough together ahead of the to even holdcide it. you would not hold a conference call like this that is being reported in the press unless you had some kind of deliverable that you can't announce afterwards, so, obviously, they got to a point where th

global news 24 hours a day, on air and at bloomberg quicktake, powered by more than 2700 journalists and analysts in more than 120 countries, i'm ritika gupta. this is uber. tom: thanks so much. equities, bonds, currencies, commodities. equities lift up here, with a vix of 26.42. yields take a pause after a higher yield regime over the last week or so. 10 have year yield, .69%. 1960. the foreign exchange market, i will call it dollar resilient or solid dxy, near 93. euro ascended, and all of this coming off a real yield regime quite different with the real tips yield, a -.97. that is an improvement, a lesser negative yield than where we were a year -- a week ago, francine. francine: really looking forward to speaking with kit juckes about the euro's assent. euro-dollar, 1.1843. european stocks are fluctuated. investors are focusing on travel restrictions and on trade tensions between the u.s. and china. chinese shares actually gained after pboc boosted liquidity, and i'm also looking at oil rising before an opec-plus gathering this week. we are delighted to talk about the markets and

. -- global news 24 hours a day, on air and at bloomberg quicktake, powered by more than 2700 journalists and analysts in more than 120 countries, i retake gupta. this is bloomberg. tom: thanks so much. it is an a store in a 2020. we have never seen a year like this. it is an extraordinary august, and be only equivalent to the trauma of 1998. with it is a swirl, back-and-forth, of all the data, particularly looking over the weekend of the inflation dynamics. futures up 23, a surge here. a continuous -- a continuance from what we saw friday. tips,r tips, just the negative one .00% as well. dollar churning as well. what do you have on the data from this morning, anna? anna: i bring you on the upside on my data check this morning, tom. stocks in europe flying up by only 2% in these markets. the cac and the dax up by 2%. sentiment,a mixing the listing holds 30% or so, so when we see better talking between the u.s. and china on tech, that has lifted $.10 in hong kong, but astrazeneca in as well because of the story over the weekend that suggested perhaps we will see earlier than previously tho

global news 24 hours a day on air and on bloomberg quicktake powered by more than 2700 journalists andnalysts in over 120 countries. alix: thank you so much. apple and tesla jumping today. with the splits is to make them more accessible to investors. has adjusted his price target for tesla to 380 with a bull case of 700. how much of your upgrade had to do with a practicing of more retail coming in because of the stock split versus something fundamental? dan: in my opinion the stock split is the right move at the right time. continuingomentum is to build more fundamentally in both of these stories in terms of the ev market with tesla, i think other tech giants could follow this. it speaks to them being in a position of strength and it was the right move and i think you will continue to see positive momentum looking forward. alix: some would say you can buy fractional shares anyway so why do you need a stock split to make it truly investable for retail guys? dan: it's more a board decision in terms of stock split's. these companies over the last few months, they are doing this because of

global news 24 hours a day, on-air and at bloomberg quicktake, powered by more than 2700 journalists d analysts in more than 120 countries. this is bloomberg. let's get you some breaking lines coming through. the key line being the august german business confidence index at 92.6. 92.1.rket had pencil in let's get straight to some additional context here. some of the key voices leading some of the research. we had the german gdp on earlier. we are now joined from munich by the ifo institute president, clemens fuest. welcome back to the show. based on the indicator we got from the german gdp figures moments ago and now from your survey as well, is the recovery stalling? would say the recovery is more or less on track. with the gdp figures, they are slightly better than the ones we had a couple weeks ago and the revision. -- in the revision. the business climate index continues to increase, to recover. this time, it is not just of the expectations, it is actually the current situation that is improving. we are still far from normal. the recovery, i would say, is on track. >> what about t

global news 24 hours a day, on air and at bloomberg quicktake, powered by more than 2700 journalists and analysts in more i'm ritikauntries, gupta. this is number. tom: similar color there of the news flow this friday. it is extraordinary. equities, bonds, currencies, commodities. it is a true turn to the market. we had an up up -- it is a true churn to the market. we have worded down to a lower yield regime. 30-year, .64% on the 10 year. digits ono the four bloomberg surveillance. that is the one statistic matters, the -0.9907 on the tip. it really has not come into lower re-yield -- lower real yield. i also mentioned george saravelos of deutsche bank reaffirms get out of the euro, but he is not calling for weak dollar, he is calling for a churn here at the 1.18 level. looking at'm european stocks. it was a great data check as always, tom, but it is really important to look at some of the levels that you mentioned. european stocks are fluctuating. we had data that really cast doubts on some of the region's recovery that came out of germany and europe. i'm also looking at osher one r

the weightit reduced companies global news 24 hours a day, on air and at bloomberg quicktake, powered by more than 2700 journalists and analysts in more than 120 countries,. i'm ritika gupta. this is bloomberg. tom: thanks so much. glad you ended with that dow switch. that is a huge deal, the symbolism of this, for those of you in a global audience, i cannot say enough of the symbolism that occurred yesterday with the dow jones industrial average. sarah ponczek and catherine grayfield wrote a terrific article that i put out last night and i will put out again this morning, giving some of the historical backdrop to what they have done to the dow. salesforce.com, speaking of data, up 21% per year in the last 10 years. equities surge on the news, and the stock as well. they be some trade glory in there as well. futures up 11, dow futures up 1.31. the vix has not moved, an important sign. 22.44. turkish lira, 7.40, rounded up, esther erdogan talking about the -- mr. erdogan talking about the economy today. he is not happy about what is going on. down, the tip. that will be front and cente

global news 24 hours a day, on air and at bloomberg quicktake, powered by more than 2700 journalists and analysts in more than 120 countries. gupta.ika this is bloomberg. ♪ >> if we don't get some kind of deal which offers some additional support to the millions of americans currently unemployed, then the economic bounceback is going to be severely compromised. jonathan: that is why the next fiscal steps in washington, d.c. are so important. paul donovan there of ubs wealth management. good morning. alongside tom keene and lisa abramowicz, i'm jonathan ferro. here's your price action this thursday morning. equity futures lower by six, down 0.2%. in the bond market, yields down by three basis points to 0.51%. tom keene working his magic in getting that fourth decimal point. well done, tom. tom: it's fun. this is the way the street looks at it, folks. jonathan: you explain -- can you expand to our listeners what they are missing out on? tom: years and years ago, it was a reach to go to three, but the street, particularly with the new low rate regime, constantly quotes four decimal point

global news 24 hours a day on air and on bloomberg quicktake, powered by more than 2700 journalists andnalysts. i'm karina mitchell. this is bloomberg. shery: u.s. futures flat at the moment, this after stocks advanced in the regular session with tech shares leading the way amid positive economic data and after that a white house was set consider acting on its own to boost unemployment benefits. despite the rally, our next guest sees several signals indicating continued investors. joining us is comerica asset management to even vest an officer john lynch -- chief investment officer john lynch. this chart showing for our viewers how this panic index is rising now. the skew index rising a month ahead of a selloff. are we heading for some consolidation given the levels of valuation we are seeing at the moment? john: yes, there are some concerns because we are seeing a market, the s&p 500 around 3300. we are entering a seasonally weak period. a lot of were focused on last week's fed meeting, second-quarter earnings, as well as gdp. when i see the way thae yield curve has behaved and bank st

global news 24 hours a day, on air and at bloomberg quicktake, powered by more than 2700 journalists and analysts in more than 120 countries. i'm ritika gupta. this is bloomberg. ♪ ♪ close to a compromise position, but i think there's a handful of very big issues that we are still very far apart. rep. pelosi: not enough money for food. nothing for housing, in terms of -- terms oforium rent. moratorium is nice, but it's not money for rent. sen. schumer: we urge our republican colleagues to come back and continue to negotiate. jonathan: talks break down going into the weekend. from new york city this morning, good morning. alongside tom keene and lisa abramowicz, i'm jonathan ferro. your price action shaping up as follows, about one hour and 12 minutes away from the jobs were -- the jobs report. equity futures are off 0.3%. let's stop the check right there. there are no talks scheduled on capitol hill today to resume fiscal negotiations. we have a completely unpredictable jobs report in about one hour and 12 minutes. we are 1% away from all-time highs in the market is barely adjusting t

global news 24 hours a day, on air and on bloomberg quicktake, powered by more than 2700 journalists d analysts in more than 120 countries. gupta.ika this is bloomberg. ♪ only live in a world that wants you to believe in the bad news racially, economically, and culturally pulled revenues. >> in much of the democratic party, it is now fashionable to say that america is racist. that is a lie. america is not a racist country. tom: some of the comments last night at the republican national convention. the first night a very different look and feel than what we saw from the democrats in terms of the technology and usage of it. the senator from south carolina and former u.s. ambassador to the united nations nikki haley speaking. right now, kevin cirilli, our chief washington correspondent. do you detect that night after night, the republican convention will be the same? is there a consistency here? or was that a one-off theme last night and we will move on to other themes over the last three days? kevin: i think this evening's theme is going to be much more focused on foreign policy, with s

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'm ritika gupta. this is bloomberg. ♪ pres. trump: one of the reasons it surprised me, she was probably nastier than even pocahontas to joe biden. she was very disrespectful to joe biden. it is hard to pick somebody that is that disrespectful. jonathan: the president of the united states weighing in as the former vp joe biden completes in vp pick in, harris -- kamala harris. by 0.75%.s up the euro with a lift. it is just the treasury market this week. we have tenure supply today and 30 s tomorrow -- and 30's tomorrow. lisa: we are getting the record low yields, so it doesn't hamper money.lity to borrow i do wonder if it factors into the selloff we are seeing in treasuries, exceeding any increase in expectations for inflation. jonathan: joining us now from washington, d.c., bloomberg's kevin cirilli, our chief washington correspondent. in many ways it is historic. it is also safe. can you speak to the former vp's vp pick? kevin: on a range of di

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'm karina mitchell. this is bloomberg. ♪ sen. harris: the president's mismanagement of the pandemic has plunged us into the worst economic crisis since the great depression, and we are experiencing a moral reckoning with racism and systemic injustice. jonathan: senator harris at the big biden-harris unveiled. alongside lisa abramowicz, i'm jonathan ferro. your thursday morning price action shaping up as follows. equity futures return to nowhere on the s&p. big gains in the last 24 hours. of 1% couple of tenths from all-time highs. euro-dollar, $1.1852. in the treasury markets, a bit of stability. 30 your supplies coming out of little bit later. a story you have been on top of, u.s.-china relations breaking down in a significant way in the last month. "the wall street journal" reporting more than a dozen u.s. multilateral companies raising concerns about the broad scope and impact of mr. trump's executive order targeting wec hat. some of the com

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'm ritika gupta. this is bloomberg. ♪ i'm ritika gupta. this is bloomberg. ♪ vp pence: where we fought for free and fair trade, and this president stood up to china and ended the era of economics orinda, joe biden -- economic surrender, joe biden has been a cheerleader for communist china. we already gained back nine .3 million jobs in the last three months alone. tom: night after night of the democratic national convention and the republican convention, a look back at the previous evening's festivities. right now on a thursday, no one cares, as we look forward to president trump's speech tonight. kevin cirilli joins us. how will the president speak to the people up in sylvania? kevin: he's got ash of pennsylvania -- the people of pennsylvania? kevin: he's got to talk about jobs, as well as the energy sector. this is really going to be what you saw in president trump convention speech four years ago in cleveland, ohio. that is a different type

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'm karina mitchell. this is bloomberg. ♪ >> donald trump inherited a growing economy and a more peaceful world. like everything else he inherited, he bankrupted it. >> you know what donald trump will do with four more years. blame, believe, and belittle. and you know what joe biden will do, build back better. >> joe biden will be a president we will all be proud to salute. >> joe biden has shown that the heart of this nation still beats with kindness encourage. that is the soul of america joe biden is fighting for now. business, we all have our collective memories of these conventions. they are always fun and exhausting to attend. we welcome you to our simulcast on bloomberg radio, bloomberg television. anna edwards in for a several woods and -- for lisa abramowicz and jon ferro. i want to imagine the wisconsin center with secretary of state john kerry and secretary of state colin powell coming out to a packed arena. kevin cirilli with us, our

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'm ritika gupta. this is bloomberg. mr. biden: this is a life-changing election. this will determine what america is going to look like for a long time. character is on the ballot. compassion is on the ballot. decency, science, democracy. tom: vice president biden last night. we are trying to drive forward the political conversation. both lisaacqua in for abramowicz and jon ferro. in for kevin cirilli is kevin cirilli, our chief washington correspondent. you nailed this in the last hour, vice president pence over at "fox and friends," and they are clearly selling the message on law & order. is that the platform of president trump forward? kevin: absolutely. it plays on two fronts. remember the issue back in the 2004 election, when bush was up for reelection against john kerry, and security moms were something we heard about? , and aftermen vote 9/11. that is also something that played out in both 2008, as well as 2012 and 2016. to take a modern

global news 24 hours a day, on air and at bloomberg quicktake, powered by more than 2700 journalists and analysts in more than 120 countries. i'm ritika gupta. this is bloomberg. ♪ sen. mcconnell: the feeling that seems to have been expressed that we would like to get an outcome, i certainly hope we can. the coronavirus is certainly not over. it is still in a norma's problem affecting commute -- an enormous problem affecting communities all across the country. jonathan: senate majority leader mitch mcconnell. is he leading, or is he following in washington, d.c.? alongside tom keene and lisa abramowicz, i'm jonathan ferro. here's your wednesday morning price action. equity futures firmer, heading north by 19 points on the s&p 500, up 0.6%. euro-dollar,ket, $1.1839. the story for most people, gold getting comfortable north of $2000 at $2054. just explosive, up another 1.64%. flipping the real yield and plotting gold against the real yield, they are in lockstep. there's no other way to put it. technically, i think that is cta. jonathan: thank you. i studied hard for that. tom: right now

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'm ritika gupta. this is bloomberg. ♪ erg. ♪ ms. trump: donald will not rest until he has done all he can to take care of everyone impacted by this terrible pandemic. pompeo: he's ended the ridiculous agreements with china that punched a hole in our economy. >> americans are going back to work. tom: good morning, everyone. some of the voices last night at the republican national convention. right now joining us, chief national correspondent -- chief washington correspondent kevin cirilli. i want to talk about how choreographed all of this is, and yet the news moves on. the news overnight from kenosha, wisconsin is flat out not good. in the law &ed order theme given these repetitive event in a most difficult summer. kevin: i think it is a really great point. they are likely going to try to hammer home the point of law & for swing voters in order to boost turnout in republican districts. , melania last night trump really tended to humanize the pr

global news 24 hours a day, on air and on bloomberg quicktake, powered by more than 2700 journalists analysts in more than 120 countries. gupta.ika this is bloomberg. ♪ >> from a safety perspective, we tested everybody before they came to charlotte. we have been testing people on site. we are doing the things allowing people to live their lives, have a convention, and do it in a healthy and safe way. rnc that is mcdaniel of the , with "face the nation" sunday afternoon. we welcome all of you on simulcast. kevin cirilli right now, as he switches democrat to republican, like question, what is it for guys like you in the industry to switch from team a one-week to team b the next week? however up disease which -- however up is the switch -- how ab wrapped is the switch? kevin: it is quite easy. it's my job. , i gete opening script that, but what is the backstory that we need to know? kevin: first and foremost, this is an opportunity for republicans to come out and make their case about the economy, as well as to tell their narrative as it relates to combating covid-19. but the second poin

global news 24 hours a day, on air and at bloomberg quicktake, powered by more than 2700 journalists and analysts in more i'm ritikauntries, gupta. this is bloomberg. francine? tom? tom: coming up a timely conversation in the 8:00 hour. mr. kaplan of the dallas fed. there is so what's going on, including the markets telling the fed what to do, this new lower weight regime that we see. robert kaplan in the 8:00 hour. this is bloomberg. good morning. ♪ tom: good morning, everyone. "bloomberg surveillance." the jobs report way out there. at the end of the week. it seems a million miles away. kaplan coming up from the dallas fed in a few hours. arvind barth from barclays joining us. i want to tie in on something that last week i think we really underplayed, and that is emerging markets, fiscal and fx dynamics. we know the argentinian story. i think people have a good grasp of turkey unraveling, but as a general statement, what is the knock-on effect of a developed economy slow down on e.m.? there isell, i think actually several different things going on here, tom. we talked about it befor

. -- global news global news, 24 hours a day, on air and on bloomberg quicktake, powered by more than700 journalists and analysts in more than 120 countries. matt: asian stocks as well as u.s. and european futures are under pressure. let's get at the markets now with laura cooper, r mliv macro strategist. what we expectt to see in terms of the move forward. the fed minutes showed tempered optimism. not as optimistic as they could have been. the ecb is coming later today. >> the risk off reaction that we saw in markets shows how sensitive assets are to what the fed is actually saying. they are left disappointed. they want to see this greater guidance going forward. we can see yields being targeted. any kind of hint that they are discussing shifting their mandates. that set up for this tower we are seeing play out in markets. europe looks to be a case of catching up today. for the ecb, they are less likely to have a similar market impact. that will likely be the case. they will hint that there continue told struggle. for the ecb, it will be euro strength and how that could feed into inf

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. gupta.ika this is bloomberg. ♪ pres. trump: in a new term as president, we will again build the greatest economy in history, quickly returning to full employment, soaring incomes, and record prosperity. tom: the president of the united states last night from the white house at the republican national convention in this year of pandemic. with us now, kevin cirilli, our chief washington correspondent. upos this morning tallied it , a total of 67 days yet to go, and the president used biden's name 47 times. vice president biden didn't mention president trump's name once. by biden/harris win annoying mentioning donald trump's name? kevin: the democrats think that they can, and that is the strategy they are banking on. whether it was in subtle comments made yesterday by speaker of the house 90 pelosi, questioning whether or not there speaker ofebates -- the house nancy pelosi, questioning whether or not there in september,tes which is not something t

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'm ritika gupta. this is bloomberg. ♪ >> we brought up the number. i had a conversation with speaker pelosi. even on her counter offer, she can't tell the american people, nor me, what is in that. i can tell you what is in the offer the president made and is willing to sign. . she puts forth a number, suggests that she came down, and yet she is willing to turn down $1.3 trillion of help that goes to the american people. meadows on "meet the press" this sunday. an eventful set of sunday talk shows. here many of them on bloomberg radio. we stumbled on that idea. people really care about the sunday talk shows. as does kevin cirilli. he's gone through the detox postconvention, back with us for a normal political season. right. i look at the stimulus and the need. give me a reason why either party really wants a signed document. are they just going through the motions? kevin: first and foremost, there's a lot of increased pressure given that many in

global news 24 hours a day on air and on bloomberg quicktake, powered by more than 2700 journalists andlysts in more than 120 countries. i'm karina mitchell. this is bloomberg. alibaba reported first-quarter earnings and revenue that beat estimates, with sales almost back to pre-pandemic levels. at the same time, the chinese e-commerce giant appealed to president trump that they are not a security threat. stephen engle joins us from hong kong. what is the take away and waken -- what can you extrapolate about the chinese recovery? stephen: we need to break this story down into two main stories. of course the domestic business is the bulk of their business. this is a $700 billion empire spanning a lot. on the flipside they are trying to expand abroad in particular in the u.s. leah potentially in the crosshairs of the trump administration. the results were fairly good, considering in march and the first calendar quarter, sales the down to new lows as lockdowns really prevented any kind of commerce. so what we saw is a rebound really accelerated from their june 18 to meteor sales promotion,

day, onews, 24 hours a air with bloomberg and quicktake. this is bloomberg.a busy few days for eco-data. we have second-quarter gdp data from the philippines. it is too close to call. it is really too close to call. the consensus expectation is they could cut the rate. it will be a hold on the reverse repo. dilemma isthe main it reaches the upper threshold. there has been some uptick in activity. possible, the base case -- it will have the guidance when inflation comes down. slump in the economy, what are you expecting on the inflation front? ?ill they keep in the range this is most likely a transitory. for september, october, our inflation should start dipping down. we do think there will be more cuts. how difficult is the balancing act given the recent surge we have seen in inflation? >> it is challenging. because the fiscal space is quite limited. the economy entered the covid shock with a very weak banking balance sheet. it is quite challenging. we will have to face this dilemma. they have done a pretty good job. they have been very preemptive in easing.

vonnie: thank you so much for joining, paul triolo. , righthony fauci now, joining bloomberg quicktakeo answer questions about the pandemic. you can watch that on bloomberg, twitter, and facebook. bloomberg users can also watch on live go. this is bloomberg. ♪ vonnie: this is bloomberg markets. i'm vonnie quinn. wanted to bring you a headline from the bloomberg. javi becerra is also joining that multistate action against the president to try to challenge his attack on the usps . california joining in that suit. abigail doolittle is with us. halfway into the trading day, what can we see? abigail: let's take a look at our stock of the hour, american campus communities. lots of news here. of course, this college year is unlike any other. some schools bringing students back, others not. it has been a rough start for schools that have been bringing students back, including unc, one reason why they are tumbling on the day. they are moving online after being in school one week after a big outbreak. notre dame has reported 58 cases from just one party. in the university of oklahoma has quarant

global news 24 hours a day, on air and at bloomberg quicktake, powered by more than 2700 journalists d analysts in more than 120 countries. i'm leigh-ann gerrans. this is bloomberg. yousef? yousef: thank you for that. economic data hitting the ticker from italy. the italian economy contracted in the second quarter from a year ago. 8%t is a 12 point contraction in the second quarter from the previous quarter. about a-dollar 118.92, 10th of 1%. in terms of the other data we have been getting, it underscores some of the signs that asia's biggest economies are recovering in the interim. china's economic activity continues to rebound in august ath nonmanufacturing pmi's the strongest levels since 2018. they softened slightly to 51.1 the month earlier. joining us is the global chief economist at unicredit. welcome back to the program. in terms of those numbers, the pmi, do they fully confirm that the chinese economic recovery is underway? guest: good morning. i am not sure that is the right interpretation. as you had hinted, it is not so clear. it is good news, for sure, overall. is the thi

global news 24 hours a day, on-air and on bloomberg quicktake, powered by more than 2700 journalists n more than 120 countries. this is bloomberg. anna, matt? anna: thank you very much. in london.t how will u.k. small and medium-sized businesses stay afloat if government support is withdrawn? our next guest says private capital could be the answer. we will discuss next. this is bloomberg. ♪ ♪ matt: welcome back to "bloomberg markets: european open." we are still about 20 minutes away from cash equity trading. you see futures are pointing oner, more so in london than the continent. tables ceo is confident consumer demand will return after the pandemic, but it may already be too late to save many restaurants. she says the industry is on track to lose 25% of the restaurants in the u.s., based on the pace of reservations. she spoke with carolyn hyde and taylor riggs. >> we are seeing a lot of trends of restaurant opening and then having to close since the pandemic is spiking in the particular region they are in. the good news is that people in the u.s. and canada are dining out again. and

global news, 24 hours a day, on air and on bloomberg quicktake, powered by more than 2700 journalistsnd analysts in more than 120 countries. i am karina mitchell. this is bloomberg. haidi, over to you. with the recent rally in -- however,kets august may pose a challenge amid a resurgence of trade tensions, uncertainty about the new u.s. stimulus bill. our next guest is optimistic. the cofounder is and ceo of a management company. great to have you with us. of course, when we talk about emerging markets, they are not created equal at all. which one do you like at the moment given we have had this pretty resilient recovery in china as a driver, stability when it comes to currencies and the weakness of the dollar playing in as well? >> thank you. right now, north asia is a market darling, and that is for two reasons. the most obvious of course is the superior handling of covid and consequently fewer shutdowns but the second reason is these countries have more fiscal room to absorb stimulus measures without blowing the budget or the currency or the credit rating, and that is a big advanta

global news 24 hours a day on air and on bloomberg quicktake, powered by more than 2700 journalists andin more than 120 countries. i am karina richel -- mitchell. this is bloomberg. haidi: of course the payrolls number out of the u.s. on friday, one of the bullish stories that drove stocks to extend again we saw albeit marginally by the end of trading friday. with the labor market, we have got news from bridgewater's co-cio. he spoke to that report. he gave us his views about what a lower to invest in for longer environment. >> while everybody sort of focus is on the change in payroll, and people focus on the growth rate, the big issue is the press -- depressed level of spending in the economy. longer we are in that situation of a depressed level of income and spending, the more vulnerable individuals and companies are to that set of circumstances. the most likely timeframe for the virus impact is 18 to 24 months. it is uncertain. we have just had kind of a four-month fiscal program or a one quarter. imagine having to do that i second quarter, -- that a second quarter or eight quarters

global news, 24 hours a day, on air and on bloomberg quicktake, powered by more than 2,700 journalists and analysts in more than 120 countries. this is bloomberg. yousef? yousef: thank you for that. turning to the third night of the rnc, mike pence accepted his joe biden asasting the end of america and also defending president trump's record on the environment. themore dramatic events in u.s. unfolding, including hurricane laura and the fatal shooting of a protester in wisconsin, u.s. athletes from the nba and wnba refusing to play, in solidarity with demonstrators. us, a globalng cio. as we count down to the u.s. elections, have you made any changes in terms of your recommendations? that well, putting altogether, that is a real dog's breakfast, and i am not sure we can do that, but we can talk about what you focus on, and i think the focus should be on the work the federal reserve has done to convince markets they are going to provide stability and support. and so, as we look towards the this jackson hole meeting is important, because we think it will confirm that support is there, an

global news 24 hours a day, on air and at bloomberg quicktake, powered by more than 2700 journalists alysts in more this is countries, bloomberg. francine? francine: thank you so much, laura. let's get the latest on the coronavirus. the u.k. government is looking at all options for tackling local flareups. a london wide lockdown is one of the scenarios under consideration. at how ar far away is vaccine? deenan pillay joins us. professor, thank you so much for joining us. does the u.k. have a handle on the virus? are we testing enough, and do we understand where it is? the u.k. has had one of the worst outbreak pandemics in europe, and demonstrating the largest number of deaths also, for the longest period of time. so the u.k. has not had a good pandemic, and various reasons for that, one of which is the ,elay in establishing testing and the development of structures that have taken some time to that in. francine: what would be your advice to the u.k. government? what do they need to do differently than they have so far? i think dealing with a pandemic is difficult, and i've got to say

global news 24 hours a day on air and on bloomberg quicktake powered by more than 2700 journalists and analysts in over 120 countries. this is bloomberg. ♪ >> this is a deliberate effort to defund and destroy the u.s. postal service so that people cannot engage in mail-in ballots. this is a crisis for american democracy. we've got to act and act now. sanders of vermont talking on the uproar over the postal service. acting pelosi asked -- congress to get back to washington. london, wes in welcome you to our simulcast. i want to get right to kevin cirilli. you crushed oshkosh. you nailed that. nailed oshkosh but gosh. us, ourrilli joins chief washington correspondent. off dave wiggles wonderful work in the washington post. that is dane county. a lot of the democrats are going to be talking like madison wisconsin and liberality of that island of growth in wisconsin and outside it is a massive reality as some people have said. going to speakts to madison, wisconsin or at the margin removed from dane county? >> that is such a great point because whether you are in appleton or madison wiscon

global news 24 hours a day, on air and at bloomberg quicktake, powered by more than 2700 journalists and analysts in more than 120 countries, i'm ritika gupta. this is bloomberg. tom: thanks so much. there are headlines that come across the bloomberg that confirm rather than lead. this would be one of them. we just learned that the 90-day, the three-month euro bore, let's call it the libor equivalent because we are just friends for breakfast -- fell to a record low. 251.91. future still negative, -14, dow futures at -103. the vix, from a 21 handle out to 24. what is really telling here is the third number on your screen. for those of you on radio, this is the 10-year tips, and it is persistently -- it has persistently stayed between -1.00, now -1.0 one. francine, for that to break down lower would be a huge deal. the other thing we saw an hour ago is a lower swiss franc come off weak gold as well. francine: it reminds me of something that i wrote -- that i read last friday from barclays on euro bor. the barclays report was saying a mismatch in european unsecured money markets is setti

gusting up to 180 kilometers an hour as it arrives -- 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'm karina mitchell. this is bloomberg. ahead, shares of communications platform provider whispir have more than tripled this week. we will be speaking with the ceo jeromy wells. next, another day, another record high for u.s. stocks. talking strategy with vilere. this is bloomberg. ♪ shery: let's get over to sophie kamaruddin in hong kong for a check of the markets. sophie: looking at a down day for asian stocks. kiwi stocks under pressure as ed tuesday because of a cyberattack. nikkei futures pretty flat while the yen stays above 106. jp morgan sees a temporary push towards 100 for the currency if there is a leadership change in both the u.s. and japan. in australia we are watching the space, moving closer to securing funds to finance acquisitions. --s, at a time more good news for pension holders in australia. year has growns the pension to about $2 trillion u.s. of the leaders and laggards in u.s. stoc

global news, 24 hours a day, on air and on bloomberg quicktake, powered by more than 2,700 journalistsnd analysts in more than 120 countries. i am karina mitchell. this is bloomberg. haidi, over to you. the tech rally may have more room to run, but there are clear signs the market is becoming unsustainable. the fund is now looking elsewhere to diversify risk. see a huged why they reversion coming. stocks, now we have to add a "t" in there because of tesla. they are all doing well because of covid-19. then, there is a question about what happens due to covid-19. dave wilson, his chart of the day, a shout out to him. these are bigger than all of the financial stocks. if you look at the russell 1000, so the 1000 largest stocks, and you at value and growth, will go back to levels we saw in 1990, and one of our managers set me some material yesterday, when you look at old measures, like price to book, sales to price, these are things that tom keene used to love. you look at those measures, the at the 99echnology is percentile of valuations. at some point, you're going to have a huge reversi

global news 24 hours a day, on air and at bloomberg quicktake, powered by more than 2700 journalists and analysts in more i'm ricky.untries, francine,? tom yet -- i am ritika gupta. bfrancine? tom? tom: equities, bonds, currencies, commodities. to fourear, we go digits here. we like to go to four digits in our data check. i'm really looking at the 10-year tips. this is a stunning real rate -1.0837. of a that is an extra ordinary statistic. they wreck we go to four did was -- nejra, we go to four digits on bloomberg surveillance. nejra: those real rates have largely been pushing gold higher. you see a little bit of risk off in european equities. a lot of earnings suggest the dollar near a two-year low but making a comeback and a fourth the pound very much in focus. one of the g10 performers up .4%. negative rates are in the toolbox but they have no plans to use them. pricing has come back into the markets on negative rates. market took some of the guidance on the boe as well, slightly hawkish. --ning us is jeffrey you geoffrey yu. why not start with the bank of england as we have just

global news 24 hours a day, on air and on quicktake by bloomberg, powered by more than 2700 journalists and analysts in over 120 countries. this is bloomberg. tom: thank you so much. equities, bonds, currencies and commodities. stocks advance in the advance worldwide. ftse closed for a bank holiday. good, ahas been really great reading over the weekend. the interesting idea of the market up and the vix up at the same time, that is unusual. 23.89 on the vix. yields are a jumble right now. what is important is the foot on the two-year yield. third year bond, 1.49%. the real yield -- a residual off the nominal yield an inflation expectations are clearly up in the united states, of -1.06.a real yield what else can i say? the dollar is weaker. the euro is 1.19. not only a stronger one, but an acceleration of strength. what we will begin the day with is to look at europe and look at what happens after everyone, including francine lacqua comes back from her vacation -- kidding -- tom kinmonth rights onlly, really detailed notes bank dynamics. what happens in september for european banks in deb