with stephen engle. or north asia -- our north asia correspondent joins us from hong kong. it was a fantastic interview. what does jimmy lai say about the charges against him. were theon one side business aspects come on the other side were the -- he is the in hongh-profile person kong arrested under charges of the national security law. this is allegedly or in collusion with foreign forces. he believes those charges and those allegations -- they are not official charges yet, but he says they are trumped up. he would not go into details of the charges because it is a legal investigation, but he says he has never supported hong kong independence. he says he wants universal suffrage promised under the basic law as an ultimate goal of hong kong. he says he has never given a single penny to a crowdfunding

by stephen engle. this is bird. ♪ -- this is bloomberg. ♪ pres.is is a truly historic moment. /jordance the israel peace treaty was signed more than 25 years ago has so much agresta been made toward us in the middle east. >> president trump there touting the deal between israel and the united arab and there its to -- united arab emirates to normalize relations. our guest -- our next guest is joining us. think you for joining us. when you look at the region, how much is changing for investors? >> i think there are so many moving parts. the biggest factor continues to be which economies are going to be able to come out of this crisis and this pandemic with resilient macro and political frameworks. we've seen across post the gcc others, quite a significant shift in terms of political allegiances. those are going to interact with the macro economic outlook outlk to assess which of these companies are going to come out of this. >> do you have any insight? where are you looking at as potential beacons of hope? lupin: i think countries that have been abl

tom: our stephen engle with us in a bit. to 1955, between essentially the rural party, the natural lbp party, and the parliamentarians. mr. abe has straddled that divide for many, many years. with our news in new york city, here's what -- here's ritika gupta. ritika: the longest serving prime minister in japan's history is resigning. shinzo abe is stepping down after eight because of health reasons -- after eight years because of health reasons. reports say he has been undergoing treatment for a chronic digestive condition. he agreed to stay on until the ruling party picks a successor. donald trump made his case for a second term last night at the republican national convention. he promised to create 10 million jobs in 10 months enter in the u.s. into a manufacturing superpower. pres. trump: in a new term as president, we will again build the greatest economy in history, quickly returning to full incomes, andoaring record prosperity. ritika: the president also warned that joe biden can be trusted to deal with the coronavirus

joining us now to break does all down is bloomberg's stephen engle. what is your take on this? how much harder will it be for huawei to source these chips? >> it will be more troublesome for huawei and more trouble for the supply chain in places like taiwan. that is why we are seeing companies like mediatech going down today. the trump administration is putting more restrictions on huawei. chip suppliers that use american chipmaking equipment and software to apply for licenses if they want to work with huawei. why does the trump administration have that sway? or assemblyab company including in taiwan all use u.s. equipment from applied materials and software makers including cadence and synopsis. that is what mediatech uses. as wilbur ross, the commerce secretary mentioned, this is closing a loophole from the initial export order rules apply in may. this is a step to make it much more difficult for huawei to operate at a time when stockpiles of store-bought or to-the-shelf chips are set expire perhaps as early as the beginning part of next year. manus: good to have you with us

jimmy lai will sit down with stephen engle. at 10:00 past 9:00. security law is changing the business and political landscape in the city. day onnews, 24 hours a air and on bloomberg quicktake, powered by 2700 journalists and analysts. i am karina mitchell, this is bloomberg. industriala's activity accelerated for a fourth straight month. , external demand, investment at home remains strong. great to have you with us. let me start off by rep -- recognizing this bloomberg chart. we have seen the ip recover pretty strongly. retail sales have been dragging a little bit. >> you can see the recovery of china's activity. on the back of continued recovery is fiscal. this leaves about 70% of it. supportive.be quite that is over 18% in the first quarter. tell me what that means in terms of what to expect from the pboc. we have had a bit of a puzzling development. it looks that the pboc may be buying of government bonds from the mystic banks. we don't intend to undertake that kind of qe that we see at other central banks around the world. becky: it is in th

let's bring in stephen engle, joining with the latest on what we see in taipei. ll us more about the significance of this event, what can come out of this meeting? stephen: horse relations, if that is possible. because iflations that is even possible. china post this when they learned alex azar would be going to taiwan. he is now meeting, seeing the footage of him with a mask and the president on her face with a mask, speaking in the presidential office. this is the highest ranking u.s. official, a cabinet member of the trump administration, to visit taiwan in decades. this will be front and center in the foreign ministry in beijing to talk about how this will strain the relationship between china and the united states. they are said to discuss the international response to the coronavirus because taiwan has been a rare success story globally containing the outbreak. they will also be talking about medical supplies and equipment possibly, collaboration between taiwan and the united states. yvonne: we have seen the news trickle through with the media , aoon, jimmy

stephen engle on that.on the china markets now, it is in negative or -- negative territory, down for a second day in a row. china stocks hovering on a 20 day moving average struggling to overtake the 4800 level for the past month. the csi extending a decline for the day, down almost 2%. the shanghai composite low by has been on chinext a tear, down 3.5%. the sentiment in asia is down for a second day. we are keeping watch on the benchmarks in korea. keep it here with us. this is bloomberg. ♪ hike! simon pagenaud takes the lead at the indy 500! coming to the green flag, racing at daytona. they're off... in the kentucky derby. rory mcllroy is a two time champion at east lake. he scores! stanley cup champions! touchdown! only mahomes. the big events are back and xfinity is your home for the return of live sports. haslinda: live pictures of the lion city, almost 11:30 a.m. in singapore, in the middle of the trading day. the essence -- the sei extending stocks among some the biggest losers today. to have ais exp

stephen engle is looking into this and joins us from hong kong. is it down too bad timing with all of the other tensions going on between beijing and washington? >> that is very possible. we had the coronavirus outbreak over the last eight months. taiwan issues are bubbling up again. hong kong has been a sticking point in u.s.-china relations. that the surprising talks that were due to be held on saturday actually never made it to any official public calendar, either in washington, d.c., or beijing. these talks were due to review the phase one of the trade deal at the six-month mark, they did not materialize. there is no date set for when that might happen again. trumps top economic advisor did reiterate that the trade deal is going well. we will have to see because donald trump basically said their view on china relations had changed course over the course of 2020. one of the latest sticking points is over tiktok and donald trump did order a new executive order on tiktok, the music video app. the u.s.them to sell assets, citing national security

we are joined by our north asia correspondent, stephen engle, in hong kong. askingre a lot of people whether beijing is willing to sacrifice the role of hong kong in this. well, obviously, they do not want to sacrifice hong kong's role, but they do want to restore law and order. that is their terminology. it is said that china will provide support for their financial institutions in hong kong and also, of course, offer continued services to companies here. but we have had these tit-for-tat sanctions by the u.s. and china over hong kong. it has kind of left global institutions walking a tight rope, if you will, between those different regulations, established, of course, under british common law as well as the new regulations under the national security law as well as these added sanctions, so banks with global footprints need to comply with those u.s. sanctions, so it leaves them in a sticky position. in a statement over the weekend, they said at present, the hong kong financial market is generally operating smoothly and the dollar peg has a solid foundation,

shery: stephen engle with the latest there. let's not get a check of the first word headlines with karina mitchell. karina: first lady melania trump headline the second night of the republican national convention, speaking from the white house rose garden after secretary of state mike pompeo delivers his pitch for the president's reelection. the theme this year is land of opportunity. she will talk about her life as a mother and make her own case for her husband earning another four years. -- winning another four years. the opening night of the rnc drew a far smaller audience than numberslast week, with tumbling on every major network. 15.8 million people tuned in monday, 3 million fewer than watched the democrats. tv watching has been shrinking as viewers increasingly shift online. the governor of wisconsin has declared a state of emergency after violent protests following the shooting of a black man by police. says systematic racism and injustice cannot continue. damage and destruction is not the offer -- answer. jacob lake w

let's get to stephen engle if we can. what are the new curbs? hen: as is in addition to the export controls washington slapped on those who do is this with huawei in may. a large asian foundry in taiwan announced in may they would stop making chips designed by huawe'' s affiliate as of september 15, which is the deadline imposed by washington for those restrictions on huawei. these new curbs announced by the commerce department are in addition to that, and according to wilbur ross, secretary of the commerce department, closes a loophole that some of the affiliates of huawei and that huawei was trying to explore to get around that and possibly purchase over-the-counter or off-the-shelf silicone and chips for the telecommunications equipment that are not necessarily made by those complying with u.s. orders. this latest move is very critical for these companies you are seeing here in taiwan, like mediatech. mediatech benefited greatly after may because it basically does off-the-shelf chips that huawei was able to buy the the u.s. new order basically

stephen engle is with us to have a closer look at what we know. latest state of play given also what mike pence is talking about? stephen: you mentioned the publican national convention -- the republican national convention. the activist said the u.s. must use values of freedom, democracy and bill of law to develop a coalition to stop the chinese comet's party aggression and gave an endorsement of donald trump to get reelected for the sake of the world. that is not going to play well in china. what is also not playing well in the tensions between the countries is the military test that the chinese will terry did. a medium-range -- the chinese military did. four missiles were filed -- were fired. ?es rishaad: carry-on. saying one of the missiles was a df21d. that is known as being the carrier killer for being able to take out an aircraft carrier with a single strike. it is ratcheting up the political theater. we had the u.s. communist department as well as the state department announcing new trade and visa restrictions on companies, 24 chinese compa

francine: stephen engle, thank you very much for joining us.countries are spending billions on a coronavirus vaccine. novartis is warning that a vaccine on its own is not enough. our interview is next. this is bloomberg. ♪ francine: economics, finance, politics. this is "bloomberg surveillance." i'm francine lacqua, here in london. the global push to develop a vaccine for covid-19 is accelerating, with pressure creating the world's first for widespread use even before creating clinical trials. within 1600 clinical -- we spoke to vest narasimhan, the -- vas narasimhan. we asked how far we are from a viable treatment. vas: i see this as shades of gray. we will likely have a vaccine that is viable sometime before the middle of next year. it could be at the end of this year. i expect that vaccine may not have the full safety data, won't be fully characterized, and won't have large-scale manufacturing capacity. what i believe is with the vaccines in development by the end of next year we will be able to solve many of those constraints and then have

stephen engle joins us now from hong kong. what are these new curbs? hens: according to the commerce secretary wilbur ross, this is designed to slow -- close down some of the loopholes that they claim huawei was trying to exploit following the previous restrictions on huawei that were announced back in may. now, what the market is seeing is that huawei potentially could run out of its stockpiles of certain self designed tips, essential to telecom equipment, by early next year, 2021. keep in mind, this initial u.s. ban back in may forbade foundries, including in taiwan, from making the chips that were designed for huawei using american equipment. 38s new restriction adds huawei affiliates and 21 countries to this economic blacklist. as the u.s. tries to limit adoption of huawei's 5g technology in various markets around the world. nutshell,t curb, in a cutting access to commercially available chips to huawei. yes, another indication that relations between china and the united states are straining. shery: yeah, it is not only about huawei. there are so man

let's get more from our chief north asia correspondent, stephen engle. es this battle for tiktok likely to play out? stephen: the big question is what is going to be the price tag? are they going to try to drive down the price? this is essentially a for sale, because of those two executive orioles -- orders from donald trump. however, we have two high-powered bidders and microsoft teaming up with walmart and oracle. we had talked and speculation that others like alphabet, the google parent, as well as twitter, even softbank from this. had considered it looks as if it will come down to, microsoft/walmart as well as oracle. and again, the price tag we've been talking about is anywhere between $20 billion and $50 billion is what analysts have been pegging. that's a wide margin. we heard wedbush analyst daniel ives see the deal will likely come down to between $35 billion and $45 billion. but we're hearing bytedance is seeking $30 billion. the numbers are all over the place because we've also heard from people saying earlier, twitter had floated an idea of ab

yvonne: let's get to our chief north asia correspondent, stephen engle, with the development. -- the al was supposed to be the most stable points and now that seems to be in question as well. stephen: seems hard to determine whether this is political theater ahead of the election ,howing trump is tough on china or indeed the phase one trade deal is in jeopardy. we need to read the tea leaves a little further. donald trump had made a similar comment a week ago and quickly it was downplayed by the chief economic advisor, larry kudlow. someve to give skepticism and also wonder whether there is any merit to this because we know the chinese side has been kind of angling to ns and thechat ban tiktok bans on the talks. these talks were supposed to happen on saturday but they never made it to the official calendars of either beijing or washington, so by friday we kind of red the tea leaves and said, this is not going to happen. now we know that these talks, which are actually written into the phase one trade deal -- every six months and they are supposed to get together and talk about the pro

beijing pushing to widen the agenda to include the wechat.n on tiktok and chief asian correspondent stephen engle has the story. how fruitful can the talks be, we don't even have a date, just expecting them to be held by the middle of the month? stephen: yeah, we don't have an exact date. we don't have an exact agenda as well. we are hearing from sources in china that chinese negotiators are pushing for the bans on tiktok and wechat from tencent to be pushed into the agenda of talks. aboutre also talking promises and pledges by the chinese of agricultural purchases which, due in large part to the pandemic, have failed to live up to expectations on soybeans and other agricultural purchases. but there are many other issues that have arisen over the past eight months as donald trump whened to just yesterday, he said maybe things have changed in the relationship over the last eight months, and maybe it is not necessarily something he wants to do now, a phase-one trade deal. hase-one trade deal. however, white house officials subsequently down played -- downplayed concerns that the face-one trade deal

let's get the latest from stephen engle who joins us from hong kong. let's start with the sanctions we have seen on the china side. the strategy seems to remain where you retaliate but do not escalate further. stephen: that is right, donald trump talked about how things are viewed differently with china. a lot has happened including the sanctions. the yunnan states on 11 chinese and hong kong officials, including the chief executive carrie lam. now china retaliating with sanctions of their own on 11 americans, including marco rubio , the republican senator, also ted cruz and tom cotton. plus, pat toomey, a member of the house of representatives. and the human rights watch executive director, kenneth roth. we do not know the extent of the sanctions. the u.s. sanctions on hong kong and chinese officials would include the freezing a bank accounts and property assets if they had them in the united states, putting banks based in hong kong in a bind, who have to comply with u.s. sanctions and the national security law of china. a lot of banks in hong kong are

stephen engle joins us from hong kong. we don't have a specific reason here, but it is not hard to imagine, given the issues between these two countries. stephen: as we got to friday, it was pretty much a foregone conclusion given all the other issues on the back burner and front burner as well. trade might be the easiest thing to talk about. however, we heard reports the chinese wanted to get the issues of we chat and tiktok, those bands by trump in the united states, on the agenda of the video conference talks that were scheduled with robert lighthizer and steve mnuchin. the talks really never made it to any official public calendar in washington, d.c. or beijing. it just never really happened and there is no timetable for that to happen again. originally it was supposed to be a six month checkup on how the trade deal was going. that has also had some hiccups because of the coronavirus. the pledges the chinese have made for agricultural purchases have not necessarily met pledge numbers. there is not a lot of progress to t

stephen engle has the latest. what is the reaction over there to what seems to be increased military tension in the south china sea? stephen: absolutely, of course the china-u.s. relation is a focal point of the election in the united states. i ame it firsthand here or in hong kong. you have to decide whether is this military provocation, or is it more an example of what election era theater? regardless, it's on a dangerous stage here, because what we've learned from the u.s. military is that you -- the chinese military in these exercises in the south china sea, fired for medium-range ballistic missiles, including, we are hearing, a df carrier missile that was fired from the mainland of china into the south china sea. provocative indeed. separately, we are also hearing that the u.s. has announced trade and visa restrictions coming from the commerce department and the secretary state on 24 chinese companies that the u.s. says is tied to the pla, the people's liberation army expansion in the south china sea. 24 compa

. -- north asiaorse correspondent stephen engle with the latest. still ahead, tcw investment management says the global tech supply chain is splitting in two. china against the rest of the world. the cio and co-founder joins us next. the, a company caught in crosshairs of u.s.-china tensions. why tencent says president trump's wechat ban may only have a modest impact. ♪ >> you are watching "daybreak asia." stimulus talks remained stalled in washington with each side blaming the other. nancy pelosi says she rebuffed steven mnuchin because the white house has not budged. he says it was she who will not compromise. pelosi says democrats will come down $1 trillion if the administration will raise by the same amount. joe biden and kamala harris have made their debut at the white house saying november's election will shape america for years to come. biden says harris knows how to make hard calls and will energize the black community. harris is african-american and asian american. their appearance was scaled down from traditional introductions because of

let's get some context from stephen engle. the timing of this is beijinging in terms of and washington. >> so much is happening. we have this taiwan visit from alex azar. on tiktok.pments on taiwan as you are seeing, the health and human services secretary arriving in taiwan sunday. he will be meeting with the president later today. fairly soon. there's that to discuss the international response to the coronavirus, which taiwan has been lauded for its clampdown and protection of citizens and not having a big spread. they are going to discuss supplies of medical equipment and cooperation. beijing, when they first got wind of this high-ranking visit, the highest-ranking u.s. official visit to taiwan in decades, they put out a statement saying they were firmly opposed to official interactions between the u.s. and taiwan. another flashpoint in already soured relations between the united states and china. shery: you mentioned the sanctions on mainland officials. how significant are the? -- are they? >> it is debatable how effective

stephen engle is taking a closer look and joins us from hong kong. so what do we know about this ipo? stephen: we know it is going to be big because people familiar with the situation say that the company is likely seeking evaluation of upwards of 225 billion dollars u.s. and that an ipo of it based on 30 billion u.s. dollars if market conditions hold up and we could see here that would put it beating therld, saudi aramco ipo, up $29.4 billion, bigger than alibaba, its parent company, listing in the united states. softbank, the biggest ipo's. alibaba is jointly listed. also here in hong kong last year for the $13 billion ipo. the numbers are quite staggering. its cornerstone, alipay payment service, we had $10.5 billion in revenue in the first half. this coming out of the earnings report, most recently shedding some light on the financials of this company. they had a profit of 21.2 billion yuan, but if you look at alipay, and the staggering member is $17 trillion in transactions, 118 trillion yuan in the year through this past june. 700 11 million act

stephen engle is looking at what to expect and joins us from hong kong. ces a series of challenges and the possibility of an attack from president trump. stephen: challenges at home and abroad. getting back to those pre-pandemic levels of sales, but abroad, trump orders on the .ikes of tiktok and we chat especially alibaba, which is listed in the u.s. and in hong kong. president trump has threatened more action. that could put alibaba in the crosshairs. ross is a, wilbur secretary, he did say alibaba by name is not on the list right now and is not being targeted. they are focusing on to talk. down to other pressures, warning universities to be wary of endowment funds because of the possible delisting issues that could come down the pike. there are issues in the cloud they are planning to hire 5000 tech workers globally by the end of this fiscal year. it is trump has signaled a national security threat. a lot of challenges abroad. what do we expect from earnings? stephen: alibaba revenue growth plunged to a new low. top line growth is likely we accelerated,

our chief north asia correspondent, stephen engle, joins us with the latest. what happens now? hen: now, the prosecutor prosecutorial process begins. declining to speak to media. ins after about 36 hours detention where police raided his hong kong headquarters as well as his yacht. it has raised a lot of concerns about the reach of the national security law and about whether it is actually retrospective and about the preservation of press freedoms and other activists also have been let out on bail. agnes chow was out on bail early this morning and, she had to surrender her hong kong passport, told to return to police on september 1. this is going to be an ongoing story, but so far, the main people who were arrested in the latest round of police action under the national security law are at least out on bail right now. shery: we are also hearing china has given its blessing to the one year extension of the current legislative term in hong kong. how significant is this? stephen: it represents a second time in as many months that china's parliament, the national people's congress,

stephen engle has the latest. no clear frontrunner. lots of names, increasingly being thrown in. at are looking at? -- what are we looking at? stephen: even though the party has such a big majority, they do not have such a deep bench and front runners for the job. shinzo abe has held the second stint as prime minister for nearly the past eight years. there has been continuity. for the most part, stability. there has not been a deep bench. these are the five names that have risen to the front one who has indicated to officials he will put his name in the hat to become the president. he is the chief cabinet secretary. he is not young. he is 71. abe's right hand man. he is likely to be seen as a caretaker for continuity to carry japan through the next year until there is likely to be an election in the fall of 2021. interestingly, he was the one who told bloomberg news on thursday that he felt shinzo abe despite his health concerns would more than likely fulfill his term as prime minister only to get the bombshell on friday. the whole ldp according to local media in japan was stunned

joining us to discuss is the chief asia correspondent, stephen engle. only be one favorite, stephen, who would it be? stephen: that's the interesting question because there's no deep bench, no obvious successor percent,. it was not for shinzo abe. he was -- for shinzo abe. he was not even expected to resign. we heard from him last thursday. outully expect abe to serve the rest of his term through next september. he then a day later, abruptly stepped down. we are kind of jockeying and putting the odds together for this. ithbe it's a five-man race, w suga at the top. he's 71 years old, six years older than shinzo abe, but there would be a continuity factor here. the other couple of interesting characters would be fmiumio kishida. the had abe's support in past. ishiba. with shigaru he's a former defense minister. popular he's not so within the ldp. he's more popular with the general public. but this election is not going to be a general election. it's going to be ldp stalwarts voting. going toh they're decide themselves and looks like they won't put a woma

annmarie: joining us now is stephen engle. are there any dark horse candidates?e are some. 71-year-oldout the right-hand man of shinzo abe. if you want continuity that is probably the guy. there is also the former defense minister. he is the most popular among the populace, but that does not translate to an election victory because this is not a general election. this is an insider election coming up two weeks from today. as far as dark horses, one interesting dark horse would be the current defense minister. he is fluent in english, he is a georgetown graduate. he laid out a plan for the boj to exit easing monetary policy. he can also be more hawkish with china. if you want to talk about real dark horses, the environment minister. that is a familiar name. he is the son of the former prime minister. he is a rising political star. he is 39 years old. he is not joining the race yet, but says he would back the man i just mentioned if he does enter the race. manus: from a market point of view, abe's successor, it is about the continuity of abenomi cs. confidence in b

north asiachief correspondent, stephen engle, with us. still ahead, a management their cofounder and ceo joins us next. this is bloomberg. ♪ karina: you are watching "daybreak asia." i am karina mitchell. house democrats plan to add 20 $5 billion for the u.s. postal service to legislation that for a vote on saturday. bloomberg learned the measure would prohibit cutbacks ahead of the november election when millions of ballots are due to be mailed out. the move comes amid a wider stalemate in the stimulus measures and worries that voters may not receive ballots on time. the democrats are pioneering political conventions with an event to nominate joe biden and kamala harris that will be almost entirely virtual. speakers will address delegates from around the u.s. with the whole event streamed on the internet and broadcast by traditional news outlets. speakers include michelle obama, bernie sanders, and other democratic leaders. belarus is sliding into chaos amid a growing national strike and mass protests against alexander lukashenko. he is

haidi: our chief north asia correspondent, stephen engle. let's get to karina mitchell for the first word headlines. in australia law will allow the government to force states and territories to cancel agreements with foreign governments in a move seen as ramping up tensions with china. the legislation will be introduced next week and will cover infrastructure, trade, tourism, and other fields. it comes after victoria agreed to join the belt and road initiative against canberra's wishes. the coronavirus pandemic has forced the world economic forum to delay its annual summit until mid-2021. we gathering is normally held each january at the ski resort. this year, it drew 3000 participants from 90 countries. next year's event, titled the great reset, was intended to discuss how to shape the post virus economy. a storm system rated as the worst in 160 years is approaching the coast of texas and louisiana with warnings of a dangerous surge and .5 million people being told to leave the area. hurricane laura, surprised by gaining 70% in strength ov

stephen engle has more on this. president trump saying he canceled the talks, and he doesn't want to talk to china. why? >> there are a lot of issues other than trade that have crept up over the last six months or so. these virtual talks that were with thebe held chinese and u.s. trade were likely to be held last saturday. they did not happen. wast of the speculation other issues, not just trade, had crept up to the forefront. taiwan,it is huawei, alex azar visiting the week prior, hong kong, or as donald trump is now saying, coronavirus. i'm not sure this is the actual reasoning, or maybe a campaign platform donald trump is trying to leverage off his toughness on china. i can't interpret that. i can tell you in his words, "i canceled talks with china, i don't want to talk with china right now. what china did to the world was unthinkable." and he is referring to the coronavirus outbreak. he is again saying china's handling of the coronavirus outbreak was unthinkable. those virtual talks due to be held on saturday, t

china tensions we are joined by our chief north asia china correspondent, stephen engle. what is vision promising now? -- what is beijing promising now? >> it is no surprise beijing will come out and say it will support hong kong as an international finance center. but it points to the issue that has crept up, since the national security law was imposed on hong kong. and since the tit-for-tat retaliatory sanctions against hong kong officials, and chinese officials. it points to the fears perhaps that have risen in the financial community here that they have to walk a tightrope between competing regulatory systems as well as sanctions, when you have an international bank with a global footprint you have to comply with the national security law as well as the u.s. sanctions. we are hearing on the statement from the banking regulator, cbirc, from beijing saying it will provide support for its financial institutions in hong kong, and offer services to residents and companies. let me read your part of the cbirc statement. at present, hong kong's financial market is generally o

our chief northeast in correspondent stephen engle joins us. what were the key takeaways? hen: they have come out of the pandemic fairly strong. of course the march quarter was pretty dire because of the lockdown in china when consumption really grounded to a halt on the lockdown. in the december quarter, they had 38% growth. now they are seeing a rebound back to nearly that level of 34% growth in revenue, to $22.2 billion. they got a boost in record sales in their june 18 midyear promotion, sales promotion, that helped contribute to that big jump in sales. net income also rising faster than expected to a higher number than expected, 47.6 billion yuan. and annual active consumers and china has grown by another 16 million to 742 million active e-commerce consumers. that is twice the population of the united states. also, its 33% owned financial affiliate ant financial, which s profitsalipay, it grew roughly sixfold, getting a glimpse into the financials of this behemoth ahead of the anticipated dual listing in hong kong and shanghai. this is what one analyst called the resul

stephen engle with the latest on that china-u.s. relationship. staying with those ties, china says they've made concessions to let regulators audit some of the most sensitive companies. the vice chairman of the regulatory commission says beijing is sincere in wanting to resolve the standoff over accounting issues. in an interview with bloomberg he says more open chinese financial markets benefit the mainland and foreign investors. opening up has always been a strategy of china's growth over the last 40 years. that is also true for the financial sector. tensionsll of these thetalks of decoupling, opening up of the market has accelerated in the last year or two. since the beginning of this year, in terms of lifting the cap of foreign financial firms in china, we have made a huge stride. >> do you think that pace will accelerate? >> that is a good question. forink it will accelerate several reasons. one is the chinese economy despite the challenge of covid-19 has actually recovered quite nicely. so iast three weeks or to four cities. just based on m

stephen engle joins us from hong kong. this is sure to rub some feathers at a time where we are seeing day by day, escalating tensions between washington and beijing. >> this definitely is not going to help mend the relations between china and the united states. taiwan is a sensitive issue to beijing. the united states, they do have taiwan relations. this one is not on the military side. it is more on the health side. a high-level level cabinet taipei, theing highest-ranking u.s. official in decades, shirley to wrangle -- surely to wrangle beijing. the foreign ministry spokesman when they got word he was going to be heading to taiwan, beijing was firmly opposed to interactions between the u.s. and taiwan. the united states saying it is going to go there to talk about the international response to the coronavirus, which taiwan has been lauded worldwide for its response. they are going to talk about supplies and medical equipment between the united states and taiwan and also get some of the secrets of taiwan's success in con

also with us is stephen engle from hong kong. overed asia for years especially the geopolitical ramifications of this. what is your take? stephen: it is a sudden departure for shinzo abe. he is the longest serving japanese prime minister. as is his second stint. he had to quit in 2007 for health concerns. it is believed it is because of this colitis he has been suffering from since he was in high school. he has been in the job the second time since 2012, the longest serving japanese prime minister. looks as if health issues might bring his downfall. nows at an interesting time with the coronavirus outbreak, pandemic, donald trump also up for another election, what happens to the coalition between donald trump and shinzo abe? it will be an interesting scenario to playoff to the next prime minister of japan. annmarie: right, abe has worked hard to build that bond with president trump. is that the same trajectory we will see under a new prime minister? stephen: two of the top people are in the defense ministry. you have the 63-year-o

asia speak to our north correspondent, stephen engle in hong kong. great work on the interview.hat did he say about the charges against him? lothen: he couldn't say a about the charges, but he did say that they were in his estimation trumped up, and he had never, ever supported hong kong independents. he says all along he has supported what has been pledged in the basic law. that is the ultimate aim, those are the exact words in the basic law. the ultimate aim is universal suffrage. theaid that should be ultimate aim of the protesters, not necessarily independence. he believes that was used as an law toto impose the bring best national security law about to hong kong -- to bring this national security law to hong kong. his most animated answer was when i asked about the statement office, macao affairs which said that jimmy lai was responsible for fostering support for their protests, including the violent protests, and hong kong independence supporters. been tried and found guilty by them before i have even gone to court or before there has been any evidence. he says the golden

shery: stephen engle the latest on u.s.-china tensions.e will have more on the decision to delay the election and the efforts to contain the outbreak. chief market strategist brett ewing joins us to discuss the market outlook and why he is calling for new highs before the u.s. election. this is bloomberg. ♪ this is bloomberg. ♪ karina: you are watching daybreak australia. china seems to be proving there is some truth to the adage, first in, first out. pushingcturing rebound the economy out of a first quarter slump. a bloomberg survey sees growth of 2% despite the falling global demand and the trade war with the u.s. july data on industrial output shows the expansion of nearly 5%. u.k. is being warned nearly trillion jobs could be under threat if the government ends the virus support program too early. millions of workers will supply -- will rely on cash help in october. saw its biggest fall in employment since 2009 in the second quarter with many more jobs expected to go. $1.5 trillionnd to boost its economy. prime minister modi used his i

haidi: our chief north asia correspondent, stephen engle.'s get a quick check of the latest business flash headlines. uber considering changing its ride hailing model in response to tough labor laws in california. it may license its brand to franchisees for new driver regulations and avoid classifying them as employees. new california laws require offering benefits to workers who carry out corporations. looking into a similar business model. catcher is to sell to businesses in china as taiwanese companies move away from the mainland amid rising u.s. pressure. the studioill buy with completion expected this year. it is valued at almost 1.5 billion u.s. dollars. 40% of their total sales last year. new datapening a center in singapore, expanding into southeast asia amid claims it transmits user information to beijing. surgeas seen demand during the coronavirus pandemic, but it has triggered questions about software encryption. zoom now has 18 flats around the world. users jumped up 65 fold in singapore from january to april amid the covid-19 ou

. >> all right, stephen engle there with the latest.'s get a quick check of the latest headlines. boeing's hopes of bringing the 737 max back may be hindered by regulations. e.u. and canadian officials are concerned about software, with fears that global certification may slip to next year. the faa launched the process that could see orders in october. the jet has been grounded globally for almost 18 months. -- head of india operations and head of safety have been sent home for three months. video posted a youtube where they question airasia's policy on sick leave, lending procedures, and handling of the coronavirus pandemic. electric car sales rose in china last month. tencent reporting near better-than-expected results. total deliveries climbed about 8% from a year earlier. coming up next, new zealand reporting its first community infections in more than 100 days while russia approves its first vaccine even as trials go on. we have the latest just ahead. this is bloomberg. ♪ >> you are watching daybreak australia. joe biden has picks

we will actually have a sit down lai with stephen engle later on bloomberg tv and radio. also, don't miss part two of our series "hong kong on edge," a larger look at how beijing's landscape is changing. still ahead on "daybreak: australia," we will discuss the prospect of trade and how the phase i deal will hold up. but up next, streaming service tumbles after a probe into its operating records. ♪ i'm karina mitchell with the first word headlines. china wants the u.s. to stop discriminatory measures as the two sides prepared to discuss their phase i trade deal. expected to hold virtual talks, with beijing wanting to add attacks on wechat and tiktok to the agenda. meanwhile, palestinian leaders are set to be rejecting u.s. claims that israel and the uae are close to a diplomatic deal. the white house says it would be a historic breakthrough with an exchange of embassies and more direct commercial relations. the u.s. says israel will declare sovereignty over parts of the rest bank about broadcaster alba zero -- broadcaster al jazeera says the palestinians rejected such a d

stephen engle catching up with a hong kong media tycoon.king forward to that conversation later. from new york city this morning, good morning. this is "bloomberg surveillance ." ♪ jonathan: from new york city, this is "bloomberg surveillance." live on bloomberg tv and radio alongside lisa abramowicz, i'm jonathan ferro. tom keene will be back next monday. with your economic data just crossing the bloomberg, let's bring in michael mckee. michael: looking at initial jobless claims. the numbers coming in much better than forecast. we thought we would go down to 1.1 million. for the first time in 21 weeks, we are below one million. 900 63,000 jobless claims last week. that is a decrease of 228,000 from the week before. the continuing claims number comes in 15,486,000. that is a decline from 16,107,000 the week before. a bit of a decline, the first time we have seen that in quite some time. pandemic unemployment assistance, the extra assistance that goes out to those who are 488,622, that is a decline of almost 200,000 from the prior week. thes

stephen engle joins us from hong kong. 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, which came in at a record as china came out of the lockdown and he pandemic faster than most nations in the world. revenue,a 34% rise in almost back to prepare gnomic levels, because we saw a 38% rise in the december quarter in sales. sales, not badn considering the state of global economy. annual active consumers and china has also grown by anot

shery: stephen engle with the latest.e will have more on the tensions between washington and beijing with stephanie siegel later this hour. ahead, live in d.c. to get the latest on the security breach at the white house. president trump says the shooting outside the white house is now under control as he explains this the reason for the u.s. economy not growing at a 20% pace in the third quarter, saying he's looking at cuts for capital gains tax, middle income tax as well. this is bloomberg. ♪ karina: you are watching daybreak australia. global coronavirus cases are about to top 20 million u.s. . u.s. infections above 5 million although the rate of increasing is slowing. countries are tightening travel to stem the pandemic. three months jail for anyone refusing to comply. greece is requiring travelers to supply a negative test. hong kong has reported 67 new local of coronavirus, a third of which said to be of unknown origin. 48e city has a total of 41 confirmed cases of covid cases. two of the new infections are said to b

stephen engle there. still ahead, a group ceo joining us in the next hour to discuss earnings driven to a record despite the pandemic. with the philippine central bank governor for his look on rates and the economy. rishaad: ubs investment bank precious metals strategist joni on whether investors even could still go for gold. this is bloomberg. ♪ this is bloomberg. ♪ haslinda: gold investors have been tracking the feds jackson symposium,kson hole bullion has pulled back. part of that has to do with complex messaging from the fed on the u.s. recovering and guidance on its next moves. our next guest said underlying views are intact for gold. precious metals strategist joining us from singapore. good to have you with us. are we looking at a bull market correction underway for gold and what kind of correction are you anticipating? >> sinkhole is in consolidation mode. i think this presents investors an opportunity to build medium and long-term positions. the underlying u.s. is still intact and another test of

haslinda: our chief correspondent, stephen engle. u.s.ution, we will have more on that just ahead. this is bloomberg. ♪ ahead of talks on the phase one trade deal, the blackstone group says u.s. chinese relations are affecting decisions. they hope to see them restore better ties. >> i do not think it is healthy for the largest economies in the world to be in conflict. i think the phase one negotiations are still moving forward. china.l are trading with there is a lot of talk about the end of globalization and on manufacturing. they are a major producer not only of every household good you can name, but medical devices and generic drugs. we continue to import from china. as far as i know, the phase one trade negotiations are still ising along, but phase two off the table. my hope is that if there is a biden victory, we are able to restore more normal relations with china, and the hostile relationship that exists now will diminish. biden has not been friendly towards china in his rhetoric either. relationshipf the between the u.s. and china

stephen engle, great to have you with us. there werebefore abe a lot of prime ministers in japan in quick succession. abe has been such a feature of the political and economic landscape. he has even had a branch of economics named after him. when wethe latest on hear what from abe? >> we could be hearing it momentarily. press going to have a conference at 5:00 p.m. japan time in two hours time. senior liberal democratic party honchos are going to be meeting right now in tokyo. perhaps has local media has been reporting, including nhk, shinzo abe will offer his resignation due to health concerns. those concerns started to swirl when he made a previously unannounced visit to a hospital for medical checkups on august 17. health issues is what caused him to resign the first time he was prime minister in 2007. he reclaimed the prime minister ship in 2012 and has run the country since due largely without open dissent. the opposition has been in disarray. that allowed him to become japan's longest-serving prime minister. colitis is

let's get the latest from her chief north asian correspondent, stephen engle. u.s. does not view china the same as it did eight months ago. what does this mean? >> it means a lot has happened in the last eight months, obviously. there are a lot of headwinds in the u.s. china relationship, blame over the coronavirus, over hong kong, over taiwan. we will get to that issue in a second. then there is corporate issues, huawei anday -- tiktok and others. donald trump is calling on the idea of the phase one trade deal. >> we did a phase i deal and it was a wonderful dale and all of a sudden it means very little, -- that will never pay for the loss of life in our country and we of the world, so we are, view china differently than we did a month ago. -- a wonderful dale. -- deal. >> before the press conference donald trump held earlier today, the people's bank of china governor put out a statement via that she walked news agency -- xinhua news agency via the u.s. embassy -- china epicene united they willassy, saying fill the phase one trade deal the matter how the situa

engle has the latest this. no clear front runner, but there are favorites. one for the people, one for the party. stephenthere's not usually -- no obvious successor. there's not a lot of new blood coming up through the ranks. we can talk about the environment minister, the son of the former prime minister. he's not going to run but at least he is throwing his support tari kono. he is 71 years old. likely to be a caretaker prime minister for continuity. who is 63 years old, the former defense minister. more popular among the populists. if this is going to be a general election, he would probably win. in the latest poll, he had 43.3% of the pole. the problem is, at least, we heard from mr. yen earlier today. he said may be ishiba is not as popular within the party as suga or others or he might win a general election. ldps the lbb stalwarts -- stalwarts that will vote for the next prime minister. it will not be up to a general election. maybe ishiba is not necessarily the favorite pick. there's also kono, who is fluent in english, georgetown graduate. he has been really out loud, saying that boj should poss