u.s.-china. you can't predetermine the outcomes. lexibility because of the legacy issue in china. not need to be targeted and a drop of stimulus in any case, which is why the script will be made up as we go along. shery: when will the demand side of things catch up to the supply recovery in china, because it has continued since the pandemic with industrial production doing well but not being reflected whether it is retail sales or the services side of things. >> that is the $1 million question. that tends to be the issue because it is hard to predict when we will get the coordinated coming back not just for households but for businesses to get into investment, capital expenditure and expending business. expanding the business. we could get stuff picking up. some sign of relief but bear in mind it is falling in 2019 as well. beat.a soft we see further extension so again this is going to be confidence. it will be more caution into spending for a sustainable and more emphatic demand recovery. it probably will not reveal itself until lat

u.s.-china relationship this week. e latest news on the sanctions, what we got last friday was the u.s. putting sanctions on 11 chinese officials and hong kong officials, including the chief executive carrie lam as well as the police commissioner and others, including the head of the hong kong and macau affairs office out of the state council in beijing. that over what the united states says is the oppression of political rights of hong kong. now china has retaliated with unspecified sanctions of its own on 11 american officials. as you said, not anyone directly tied to the cabinet of donald trump. these are mostly republican congressman, including three senators, marco rubio, ted cruz and tom cotton, plus a republican representative, pat toomey, as well as kenneth roth. roth was denied entry to hong kong back in january when he tried to come here. the foreign ministry spokesperson saying this is in response to the sanctions on 11 americans to the wrong behaviors of the united states who in his estimation behaved badly

let me start on the u.s. china talks, the fact they didn't happen. w do you think, and i know you have been throwing this question around on the blog, had we think of the u.s. and china in the past will affect assets, if at all? mark: well i guess what's amazing is how little impact it's been so far. we got used to this idea that the u.s. china trade tensions. it's not like it's a new thing this year. but it did seem like it was escalating than last month or two -- the last mother to, especially the -- last month or two, especially with that trump orders. we've seen another weekend were trump is taking, actions of orders against tiktok and wechat, and yet markets seem impervious. it's interesting to note chinese stocks are soaring and it seems they are focused on the fact they've got more liquidity from the pboc, and liquidity and momentum are driving stock market rather than these concerns, whether u.s. china, or stimulus top, all these long-term -- talk, all these long-term things are not hurting markets anymore. anna: what do we make of the latest

u.s. or china? stephanie: in an interesting way, you have a little more to lose, the u.s. ina or everywhere else. that is the interesting element. the u.s. economy structure has upset -- we know consumers lose when it comes to trade wars. because of the impact it can have on prices, depending on the choice of companies. -- it is also sink billing signaling the reality it craves for other major economies. for the small economies who have to come in a world where the u.s. and china are lesson lined -- less aligned, do i want to continue with china with my supply chains? should i be kind of rethinking the supply chain, and that potential kind of sort of split off of regionalization of trade? i think that will be the state of mind whoever is in the white house. could you argue -- francine: could you argue that andeen that -- that chinese -- stephanie: it is becoming more and more clear, particularly this year with the hong kong security act and the kind of think thatnd -- i actually has pushed europe in a way. it becomes more problematic for europe to be this kind of super cons

u.s. decision makers in washington have really spare no efforts in trying to poison china u.s. relations to urge the american people to adopt an antagonistic deal against china while at the same time china is not an enemy of the united states and people in china are very much friendly towards the united states this gives me hope that in the medium and longer term china and the united states need to figure out a way to get along with each other whether you like the other or not that's another issue but the only option is to get along with each other anywhere in washington is indulging in fantasy if he or she believes that u.s. can manhandle china without any consequences there will be consequences and in about 10 years time china will be significantly larger than it is and this will be a megatrend that no one can resist so i think decision makers in washington need to eventually come to terms with the fact that they need to get alarmed with the china larger and probably more impactful of the united states china today or 10 years later will not be of enemy of the united states tha

u.s.-china tensions. so, a u.s.ist gave interesting remarks saying, he was mentioning anchor as an international company like he could find in silicon valley. in terms of the whole culture , it isosphere and anker very internationalized. haslinda: anker's founder and ceo. now a quick look at the latest business flash headlines. -- 2000ys it will pilots in october as it sees little improvement in commercial aviation in the next six months. they will have more pilot senate needs after 1800 flight deck crew except voluntary retirement. there have been thousands of layoffs at airlines. details have been revealed about the deal to buy version australia. it doesn't make sense to creditors. they can expect a return of just 9%-13 percent and even less if they vetoed the deal. a vote is due tomorrow. oil search is dropping its dividend after low energy prices . the company reports a shortfall dollars inion u.s. june compared to a profit 12 months earlier. oil search says it will review the situation at the end of the year. i

u.s. and china. meanwhile, the democratic national convention begins. a cashrale boost after injection with more support, and belarus, the opposition leader says she is ready to be interim president as thousands rally over the weekend, while russia says they are ready to provide assistance. good morning, everyone, and welcome to "bloomberg surveillance." i am francine lacqua in london. this is what the markets are looking like. ofis more quiet because august, not so because of august 2020. the european shares are fluctuating, chinese stocks rally in, and oil up with the opec gathering this week. travel agencies and real estate companies were the biggest drags in the 600, with the dollar weakening against most of its peers. we will have more on the markets throughout the day, but now, let's get straight to the bloomberg first word news in london. here is leigh-ann gerrans. leigh-ann: in the u.s., house speaker nancy pelosi is calling members back about the postal service, which has warned at least 46

u.s.-china ties face yet more strain. washington is sanctioning hong kong officials as the beijing crackdown on free speech. u.s. cases top 5 million. the chicago fed president -- australia heads into earnings season amid the worst recession in decades and a pandemic crippling the economy promises to be one of the most challenging periods on record. shery: u.s. futures opening flat. this after they finish mixed on the friday session. we had u.s. stocks falling with the s&p 500 flat after five sessions of gains. we have escalating u.s.-china tensions. some positive data. we have the dollar inventing after u.s. july job dated beat estimates. the nasa composite was led lower. composite was led lower. we had small caps leading the gains on those better than expected eco-numbers out of the u.s.. here is how oil is trading. we are seeing oil gaining ground above $41 a barrel with brent coming in around $44 a barrel. this after the biggest loss in a week. not only u.s. and china tensions but the outlook for the u.s. stimulus. the

u.s. businesses at a disadvantage because of how china companies are able to dodge. na: i do not think u.s. businesses are at a disadvantage because chinese companies do not comply with absolutely all of these disclosure roles. i think it is not that common for a company to be audited to that extent, and when it is it is a problem that chinese companies are not in compliance. the problem is a conflict of law issue. national security laws prevent them from disclosing some of the stuff we would like them to disclose, and it needs to be resolved. every company on u.s. exchanges should have to follow the same rules. will this change chinese companies behavior for us to say you will be delisted from u.s. stock exchanges if you do not comply with this? will that cause the chinese government to change its national security laws? i don't know. there a lot of other exchanges and we not coordinating the policy with anybody else. shery: another piece of news was china detained an australian television anchor, we have had these tensions between china and australia, tensions over

the united states saying china and the u.s. n have discussed the phase one deal, saying they had a call with china today, the u.s. saying both sides are seeing progress on the phase one deal with china. they were supposed to have a virtual meeting in the last couple weekends but we had not seen any updates on that. finally we have confirmation with the u.s. saying both sides are seeing progress on the phase one deal with china. according to that trade agreement, they were supposed to review implementation of the deal every six months but that deadline was set last weekend and it did not happen. it finally happened today in a call. the pledge of china purchasing an additional $200 billion of the end of 2021 but given those flashpoints over tiktok and huawei, negotiations finallyn delayed but andirmation that lighthizer mnuchin had a conversation with china's vice premier and both sides are seeing progress on the phase one deal with china. let's get to karina mitchell. stormsfell in asia as threatened the gulf of mexico. one of th

u.s.-china tensions, because they are now saying that the u.s.eeds to get approval or that chinese approval is needed for this tiktok sale. they are throwing a wrench into some of those plans. will we see more of those kinds of relations as we get closer to election day in the united states? guest: yes, without a doubt, and beyond. identify trump with the tensions between america and china and technology, but it is much deeper than that. he is a proponent of that it.rlying move toward i don't think there is any reason to believe a biden administration would be soft on china. but obviously they would speak differently and try to cooperate in a more systematic way. but fundamentally, we are in a major multi year phase of tensions between these giants and it plays out in the technology world. i hope it does not blow up with the sanctions against each other too much, but that is a big risk obviously. yousef: erik, we have a lot to get to. that is erik nielsen. he stays with us. u.s. stocks keep hitting record after record, driven by gains in tech sto

u.s.-china relations. sign.s. te taiwan will a health cooperation agreement and there will be a press conference in about 40 minutes' time at the market open. 1979. time thethe last u.s. sent such a high-ranking official. that was the birth year of the g-class, mercedes' fabled offered cheap. is pressing ahead with $75 billion in dividends this year despite a slide in profits and rising debt. oil snapped a two-day losing streak as the oil giant's ceo predicted demand will continue to improve through the rest of the year despite many regions across the world struggling to bring the coronavirus under control. if only we were all driving g-wagons, that would be the case. hani redha from pinebridge investments is still with us. what do you expect to see and what out of oil? hani: we've gone from a huge april to asurplus in sizable deficit in early july. barrels to 4on million barrels a day deficit. that is really the extreme of it. tweaking from this point, the demand recovery will start to normalize after the initial

shery: disruption also in the china-u.s. relationship. trump saying he called off the trade review with china. the talks were to assess the phase one deal, although they have not made any public calendar in washington or beijing. 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 t

china hits back as u.s.anctions on hong kong, targeting prominent senators marco rubio and ted cruz. beijing steers clear of hitting top white house figures. global virus cases approach 20 million with 750,000 deaths. to break trump has yet the stimulus long gem. softbank backs the virus handed record losses in may at a drop of the value, some may change with earnings later. let's get a quick check of how the markets are trading. we are seeing u.s. futures under a little bit of pressure, down 1/10 of 1%. we have president trump's executive actions on stimulus measures boosting sentiment. that weighed in indices. the s&p 500 saw the highest close in six-month in the longest winning streak since 2017. aska futures at the moment japan comes back from mountain day holiday. i mentioned softbank earnings coming back later. the japanese yen holding around the weakest in more than two weeks. the bloomberg dollar index unchanged at the moment. this after it touched a one-week high. watch out for some data this mornin

u.s. cases ease. uneven vaccine results. collapses. china den ounces u.s. tictoc as theft and a smash and grab. microsoft remains interested in a deal. we hear from bill gates this hour. shery: japan, south korea, let's get straight to the market action with sophie kamaruddin in hong kong. selina: a busy -- >> a busy day for earnings. trade, wert of cash see losses for the nikkei 225 after a two-day gain. they yen holding below 106 as dollar selling is picking up. ahead of the bond buying, they are looking for support after a solid 10 year option. the 10 year yield for japan can get below zero. the last time that happened was on june 12. turning to south korea. microchip delivered a disappointing forecast. opened higher after rising to an october 2018 high. the korean won on the front foot opening at 1190. the strongest since july 31. stocks inoves for sydney and wellington. asx 200 under pressure after rallying the most in two weeks on tuesday. the aussie dollar adding. just holding gains. bond markets will see the rba resume buying this wednesday after th

u.s. and china. how do these latest developments fit into that, and what does it mean for your investment? a cold ware is between the u.s. and china. this is a long-term thing and has been in the making for some time. the difficulty for markets is, how do you price that? it is something that will have long-term ramifications. there is also some short-term things going on. for markets, you will see this temporary setbacks. i don't think it will necessarily change a law. that makes it difficult for it to be priced in markets. this is not abe game changer. but it is simmering there. nejra: there is an interesting piece on the bloomberg by one of our columnists saying that now is the time to swap some u.s. for chinese ones, because they could be considered credit default swaps against president trump's chaotic policymaking. given the investment china is making in 5g and newtek, would you agree with that opinion? guest: i think the timing is extremely difficult. there are a lot of things driving the perfor

u.s. and china. the u.s.ostmaster general defending his management of the postal service before senate lawmakers today. we will speak with our own tim o'brien about how additional questions must be answered. and mixed martial arts taking it on the chin. like so many other businesses, we will talk to the chairman of the professional fighters league win thes plans to battle of covid-19. let's take a look at the markets. greg: on a friday, positive economic news. the u.s. housing market, resales, strong postings in the summer. the spring market has become the summer market. great reads on manufacturing and services sector as well. we have green on the screen, as you can see, now leading the pack. is is a be 500 is -- s&p 500 up 1/10 of 1%. yields are moving slightly lower. 16% in the nasdaq. list take a look at the euro. we will change our focus to overseas. brexit negotiations, it looks like there could be some flagging, the hopes of revival putting pressure there as well when it comes to the british pound. tha

u.s. and china are seeing progress under their phase one trade deal. ey are committed to the success of that. senior officials from the two sides held discussions to review the six month old agreement. the u.s. says they discussed steps china is taking, including greater protection for intellectual property. beijing is still a long way off in terms of meeting its promise to increase purchases of u.s. goods. new york is investigating president donald trump's company falsely reporting the value of his assets to secure loans and tax benefits. the problems triggered by the president's former personal lawyer and fixer, michael cohen. he handed congress a series of trump's financial records from 2011-2013. chancellor angela merkel is demanding for transparency from the kremlin -- full transparency from the kremlin over the case of aleksei navalny. a german medical team has determined he was poisoned -- likely poisoned last week. he is in serious condition and may suffer long-term damage. global news 24 hours a day, on-air and at bloomberg quicktake, powered b

u.s.-china tensions in the ongoing u.s.ables, but also the jackson hole summit and the speech by the fed chair. how is inflation targeting going to ripple through some of key assets? across it throughout the day and the hour. this is bloomberg. ♪ experience the ultimate sports hub. where you can find games, news and highlights. all in one place, right on your tv. the xfinity sports zone. use your voice to search every stat and score. follow the teams you love. and, even get notifications with breaking news alerts and more. with the xfinity sports zone everybody wins. now that's simple, easy, awesome. say xfinity sports zone into your voice remote today. tom: this morning, the ftse up 500of the bottom, the s&p up 51% off the bottom. the difference is american digital dominance. there are sure signs of inflation. lumbar in america a moonshot. iron ore in china, a moonshot. to get to the "incomplete recovery," look for sustained unemployment. and virtual trump will be different from virtual biden. pham, trump junior tonight, t

u.s. and china now we've got statements from both sides and it's interesting to see the u.s. 'd trade representative said both sides see progress and are committed to taking the steps necessary to ensure the success of the agreement then china's ministry of commerce also released a statement which they said the 2 sides agreed to create conditions and atmosphere to continue pushing forward toward the implementation of this trade deal of the major topics here were the protection of intellectual property rights and also china's commitments to purchasing significantly more products from the u.s. now this call was largely seen as a way to clear the air between the 2 countries to talk about how phase one of the trade deal has been implemented and then also to look at setting the stage for negotiations to go into phase 2 deal well rachel or seem to be a lot of remaining disagreements on the table from from both sides when it comes to social media platforms or is also on the tick technology front you mentioned intellectually until actual property theft what's going on there where you'

u.s. tariffs have adversely affected there are in china. e tariffs have adversely affected them. this continues. supply chains are being disrupted. u.s. companies should be diversifying their supply chains. this has brought it to the floor. great adverse effect on companies. the white house calling out american companies that are active in china which are mostly inchina for china producing china, the white house called them out and said they were supporters of the u.s. communist party. it is very difficult for american companies to maneuver. in china's getting way? by this i mean we have seen such an aggressive response from china, anytime they feel they have been wronged by other countries, not just the u.s.. are they really getting in their and fermenting distrust of the commonest party? china is feeling its way. this is a new role for this growing and very large and strengthening country. responses toward what was the normal response in the past, they are seeing that their responses are a lot more effective. they are getting other countri

u.s.-china trade story?e have some concern, but we also like to serve our customers sort of in the background, if you will. we don't talk publicly about our customers. or about who they are in the projects we do. but given the fact that we deal in both environments in the u.s. and china, we could get dragged into it. but we are trying to maintain things in china reasonably autonomously. shery: thank you for your insights. more on the tech sector in the next hour. we will discuss how the pandemic is providing an opportunity to reshape the global financial system in favor of sustainable development. our guest joins us from new york. don't forget if you are away from a screen, you can always find in-depth analysis on bloomberg radio, broadcasting live from our studio in hong kong. app, oria the bloomberg.com. plenty more ahead. this is bloomberg. ♪ ♪ here's a quick check of the business flash headlines. bp reportedly will be selling a london headquarters as it cuts jobs. they have 6500 office staff in the u.k.

recovery and u.s. china relations purchasing manager and managers index also weighed on the indices slashing hope for a v. shaped recovery let's move across the atlantic to brazil. but it is just above flat for the week as investors are optimistic following the country's decision to overturn president also narrows a veto on public sector pay brazil's rail fell on thursday again on the fed warning of a delayed economic recovery let's move north to mexico the b.m.v. it's in the red this week after plunging on thursday following gloomy fed minutes here in the u.s. the dow it's in the red while the nasdaq and s. and p. well they're both up for the week now on thursday the nasdaq closed at a record high rally in the tech sector really helped push markets up after the worse than expected unemployment claims jumped back to more than 1000000 new claims for the week and finally finishing things off in toronto the ts x. it is down for the week rotavirus vaccine news helped push the index up on thursday as johnson and

u.s.-china. you see the u.s. d china trading barbs about the tech war, banning tiktok and we chat, seeing the market reacts to that. you add in taiwan and geopolitical risks very much front and center for investors today. let's bring in stephen engle, joining with the latest on what we see in taipei. tell 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 beca

u.s. will not obsess over china during the election some comments from susan u.s. lawmakers can be classed as making something out of nothing the chinese government always requires chinese companies to carry out economic cooperation abroad according to the dogs and regulations. american people to have the right attitude abandon brigitta us stop using so-called state apparatus to put pressure on chinese companies and to do more that will contribute to the promotion of chinese u.s. relations the push to ban tick-tock arms as dancers are running high between the u.s. and china in several areas donald trump has banned the use of china's while with 5 tickets in the u.s. networks and is pressuring allies to avoid it both countries are in a trade war and have imposed terrorists on its others since 2018 in january they agreed on a 1st step towards a truce and signed a trade deal but then the u.s. actually has china of suppressing information about coronavirus beijing's reject that allegation they're also at odds over china's imposition of a national security law in hong ko

recovery and u.s. china relations the euro purchasing manager managers' index also weighed on the indices slashing hope for a v. shaped recovery let's move across the atlantic to brazil. but it is just above flat for the week as investors are optimistic following the country's decision to overturn president also narrows a veto on public sector pay brazil's rail fell on thursday again on the fed warning of a delayed economic recovery let's move north to mexico the b.m.v. it's in the red this week after plunging on thursday following gloomy fed minutes here in the u.s. the dow it's in the red while the nasdaq and s. and p. well they're both up for the week now on thursday the nasdaq closed at a record high rally in the tech sector really helped push markets up after the worse than expected unemployment claims jumped back to more than 1000000 new claims for the week and finally finishing things off in toronto the ts x. it is down for the week rotavirus vaccine news helped push the index up on thursday as johnso

china announced the highest level u.s. ecades as washington turns up the heat on beijing on a range of friends. alex azar saluted the taiwanese democracy see -- and it's handling of the coronavirus, drawing criticism from china. us twilio reported 331 new daily virus cases in victoria along with 19 new deaths. the fatalities equal the record set the day before. falling from their peak, with melbourne under lockdown and several borders closed in the northern territory. the northern territory will stay shut off from the rest of the country for another 18 months. the health organization's miss to identify the start of coronavirus will start in wuhan. the who said they will study individual exposure in people's daily lives before they developed symptoms. the organization says it will -- it took years to identify the origin of mers in 2012 while the genesis of sars in 2000 three has never been established. the rbnz meets wednesday, as the economy performs better than expected amidst the coronavirus. and policymakers will have to

u.s.-china tensions because there is supposed to be a check in between the u.s. and china on the status of the phase 1 agreement. all of these are turning into election issues as we head into september. francine: does the market think that president trump is a two-term president? if we have a biden administration charge, what does that mean for china and tech stocks? where will we see the biggest shifts? joyce: i think the market is now asking whether there could be a democratic sweep. there previously had been questions about the presidency, now there are even questions about the senate. the markets will focus on that. mean higher tariffs, but will the democrats mean higher taxes? that kind of debate will come out in the coming year. the impact of rolling back some of the tax cuts, we have tried to weigh that against what the cost would be of higher tariffs as well to the marketplace. we come out thinking that you have a number of forces that could be in play if biden is elected. tax cuts, but the he also probably would put in infrastructure spending, minimum wag

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 the virus with an audience entirely of journalists and campaign staff. another leading hong kong democracy activist has been released on bail saying she will not be stopped from speaking out. agnes chow was held along with jimmy

u.s.-china tensions, adding more trouble for the u.s.hina relationship, a visit to taiwan by health and human services secretary. what can you tell us about that? stephen: when beijing got word of this late last week, the foreign ministry spokesperson said beijing was firmly opposed to official interactions between taiwan andd this isn't including the meeting of the president of taiwan with alex azar come a definitely going to wrangle beijing even more. it is the highest-ranking u.s. official to visit taiwan in decades and will certainly worsen the strained u.s.-china ties and he is there supposedly to discuss the coronavirus and limiting ofcessful the pandemic. however, it is widely believed other issues, more sensitive issues, would be discussed, as well? manus: our chiefmanus: north asia correspondent on the developing story of the rest in hong kong. thank you very much. china consumer inflation accelerated and factory price deflation eased in july as the nation's economy continues to recover from the coronavirus crisis. inde prices p

u.s. and china. yes it's a very political discussion it's also a geopolitical discussion china and the u.s. are basically fighting over dominance geopolitical dominance in the world the u.s. . is certainly also an initiative to preserve its 1st position in the global game so to say so europe now caught in between really needs to find its own position geopolitically it as well as into industrially. focus is really falling on germany can berlin really afford to sit on the fence on the fence rather on this issue for much longer. now they're going to absolutely not afford to sit on the fence it has to take a decision it needs to act together with its european allies and partners because so at national decision will not have as much weight as 8 european position this is why the european union has already initiated a strategic process last year that germany is part of and that sends germany now it needs to not only make a technical decision about technical security of networks but also position and south i

u.s. or subject to the laws of the united states from transacting with the china based owners of these apps taking effect 45 days from the signing now the order involving tech talk makes official the president's calls for a u.s. tech company to buy the social media app or it will be banned from operating in the us take tax parent company by day it's said the action was done without due process process adding that legal action would be taken if the company did not get fair treatment from u.s. officials the chinese ministry of foreign affairs also weighed in on the situation friday morning. 2008 local need to just call it enjoys abundant support until she finds a little support to put its own enters the market for both international rules and willful conduct manipulation and your detriment of. american users and companies who only lead to more old. tarnish. international trust that it and i will eventually face the consequences which is so there which at aspect is a new bring coal to the ongoing tensions between the u.s. and china now the messaging app is owned by one of china's largest tech

u.s. and china are planning a new round of trade talks. have agreed to high-level discussions on august 15 to discuss beijing's compliance the phase one deal. the u.s. has been hammering china over a range of issues. china is fighting back over the battle for tiktok. denouncing president trump's demand over a sale. they indicate beijing may block any sale. are proving ales relief for instagram as concerns about its future since thousands of users to facebook's video sharing platform. mark zuckerberg told congress that any weakening of u.s. tech threatens to strengthen china's position and influence over the internet and social media. global news 24 hours a day on air and on quicktake by bloomberg. powered by more than 2700 journalists and analysts in more than 120 countries. this is bloomberg. >> disney reported after the bell saying coronavirus had a massive impact on its theme park income. over theus grew quarter. aboute just talking surprises. there is a pivot to new strategies to try to make up the losses from covid-19. is there now gre

u.s.-china relations as the visit to taiwan this week of the u.s. health secretary alex azar. what came out of that? stephen: yeah, that again is another flashpoint. beijing reiterating its opposition to this visit by alex azar to taipei, especially meeting with the president yesterday. azar really hailing the democracy shown in taiwan as well as the fight against the coronavirus. taiwan has been fairly successful relatively speaking against other countries around the world in combating the pandemic. anx azar said taiwan is inspiration to the region and the world. he was speaking mostly about the democracy that has taken hold in taiwan. aboutat length as well the u.s. relationship with taiwan, saying it is highly regrettable that china has stopped taiwan from participating in the world

u.s. and china. run me through some of the wider thinking behind it play like tencent and at times where the tensions are highest. patrick: we have held tencent for a number of years. you have seen what has happened with technology companies as they reported their q2 numbers, so we expect a very strong quarter. we think that will matter much more to tencent than soundbites from the white house, so we don't think extremes occur. wechat not being able to be used for u.s. citizens does not change the bottom line or the top line of tea set -- of tencent. basically, wechat is being used by citizens of china to can indicate with their family and china. we think the more extreme measures will not be put in place, and earnings will drive the stock market than basically u.s.-china tensions right now. yousef: a note coming through on the bloomberg as we waited for the numbers on the italian bond sale. ,he 10-year has now been sold and that yields dropped 0.9% to 0.4%, and that is critical, because it is actual

u.s.-china tensions. "the china open" is next. this is bloomberg. ♪ businesses are starting to bounce back.

for more on this plus the latest on u.s. 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 p

u.s. tech companies are in china which u.s. tycoon reason trying to gain greater exposure in china because these are the ones that you will smugly going to be targeting this is from the chinese perspective going to be seen as an attack on chinese tech companies who want to expand globally and compete with the u.s. so we can expect that it's not going to be taken lightly craig let's talk about the chinese perspective because the chinese foreign ministry accuses the us of suppressing foreign companies that's exactly how big you know rates. it is. it's one of these really difficult savvis 'd the yukon that's certainly argue with the point on data privacy it's become such a hot topic look just here in the in the e.u. now over the last few years the g.d.p. everyone has become obsessed with dates and what's what's happening with the data and what it's been used for so it's hard to necessarily disagree on the outside if you think if you believe if the u.s. government and maybe all the governments around the world believe that the chine

on friday they're also looking at those u.s. china tensions on that tech band now the french cac in the german dax there also in the green following similar trends in june german industrial output surged 8.9 percent forcing a 14.9 percent increase in exports fueled mostly by china let's go across the atlantic we're going to go to brazil where the it's pretty much flat for the. leading just positive as emergency payments to millions are set to expire this comes despite economists trimming the country's 2020 g.d.p. forecast a 5.7 percent model milder than the expected 6.5 percent in mexico the b.m.v. well that's up for the week as data showed nearly 5000000 people return to work even though informal unemployment numbers are low now the peso also rose this week for the 1st time in 7 sessions and here in the u.s. all of the seas are up the dow the nasdaq and s. and p. are in the green for the week despite some losses on thursday again that's all due to that impending u.s. ban on chinese social media apps some of those losses were cut by t