. -- of ubs. the s&p, 3433. interesting move up. we saw some of the narrowness return back to this market. i guess if you are an investor going long, you have to be happy with what you have seen over the past few days. caroline: down in volume. very much the build up toward labor day. managed to rise 12 points. overall, it seems to be all focused on never-ending buying. out, a: we should point company here, big commerce holding, this just went public at the start of this month. it was up 37% today. this is basically going to be the software behind this e-commerce storefront. big commerce is the beneficiary of this announcement. taylor: about $88 billion in market cap, showing a pretty big number on the top in bottom line. estimates were about $1.55 billion. decent beat on the bottom line on adjusted aces. earnings-per-share, 1.81 versus $1.09. i continue to shift through some of the earnings. in the meantime, let's get back -- angelamwanza mwanza, from ubs. i am curious, as you recap earnings season, were expectations too low? or yo

he is mark andersen, cohead of global asset allocation at ubs.oe biden and kamala harris make their socially distanced debut. up next, we discussed the race for the white house. this is bloomberg. ♪ >> clearly the natural markets, we would they, are not necessarily reflecting what is going on in the real economy right now, which is that demand disruption that we saw as a result of the current pandemic that we have. tois making it challenging underwrite new investments in the marketplace, because you're trying to predict, if you want to call it that, when we are going to come out of this pandemic and the impact it is having on a global basis. onneed to look at credits investments that have an underlying endurable, sustainable cash flow that we feel comfortable with. equally so that when we look at those companies, it is way more important today than it was 10 or 11 years ago, that we understand the margin of safety or, if you will, what the equity cushion is that we have in those investments. that makes it much more difficult. jenkins, that was ma

ubs has a buy on gold. we're continuing to think this rally is going to continue in the gold space, so i would say let's follow the oracle from omaha and let's get some gold. >> this is just speculation, but what if i said to you, it's not warren it's his guys, and a fraction of 1% of the portfolio. would you still be as excited? >> it's definitely warren. >> how do you know there's no way -- >> he's not just letting people go willy-nilly and buying this amount of gold >> it's a gold miner, but yeah, go ahead >> the gold miner, gold, it's all going to do well in this type of environment, and you're seeing that ubs, one of the world's largest banks is saying buy gold every investment bank is saying buy gold there has to be something to it if the smart money is saying get defensive, you got to listen >> we heard the rationale for it we talked about it with rick and others what's going on with the dollar, what's going on with a lot of these asset classes don, just as a final response to that, would you buy gol

ubs wealth management, senior portfolio manager.lesson but how is that a investing lesson? >> there is a concept of animal spirits and so much what happens in the market is driven by confidence, by consumer confidence, by confidence of the markets generally. when you have a market down 34% on march 23rd and now it is reaching record highs you see this confidence is starting to build on itself. that in of itself can help the economy as people become more positive and are willing to participate. cheryl: as we look at the second half of the year as the s&p is hopefully about to close in three minutes, a new record. we haven't had a new record on the s&p in six months. i can't help by wondering if this is the final leg up not just for the markets but for the economy? we're to the going back to march 23rd? >> look, there is three big things that are going on right now. there is the pandemic. there is this notion, this feeling there is light at the end of the tunnel. there is idea that this will be vaccine positivity. there is this whole

optimism more fed stimulus and unlikely hood of more lockdowns joining us, chief investment officer at ubslobal wealth management mark, good morning much has been made about the fed's impact however large it has been, you and your team at ubs think it can go even higher >> caller: thank you, brian. i think that's right we've talked almost every month now since the crisis began it is true we've said, look, you've got to focus on the fed here. i think the question investors are asking is, okay, what has changed that you can still be optimistic since the fed's largest action took place six months ago what we had focused on is look at the 10-year yield despite the pact that the markets have been rallying since chairman powell spoke, the 10-year remains very low and the markets continue to rally. we think that shows that the markets are starting to believe that the fed is going to hold states down even if inflation creeps up or asset prices move higher and that story isn't over yet. >> when do you think it will be over >> look, i thinks th that's a g question probably sometime when the inflatio

anna: john wraith from ubs -- francine: john wraith from ubs stays with us.sagreements emerge over the shape of the recovery. we will discuss that next with john wraith. this is bloomberg. ♪ ♪ economics, finance, politics, this is "bloomberg surveillance." let's get straight to the bloomberg business flash. >> bp has cut its dividend for the first time in a decade. it was widely expected after shall made a similar move but it was unthinkable before this year. big oil's generous payouts have long been one of the main attractions for investors. bp reported a loss that was not as bad as expected. bayer said the pandemic has hurt demand for some of its medicines, hitting outlook for the year. it's consumer health unit got a boost earlier this year from people stockpiling over-the-counter medicines. that affect waned in the second quarter. commerzbank has appointed hans-joerg vetter as its supervisory board chairman. it is a blow for its second-biggest shareholder, cerberus, which tried to block the move. the private equity firm launched a campaign in june to chan

tom: stuart kaiser of ubs with us. what is the short squeeze story? you get that supercharged feeling. is there the shorts out there to squeeze this, to drive us higher in equities? stuart: the short data doesn't show that there is a huge squeeze out there. i think the squeeze might be more kept on the sideline, getting squeezed into the market. people that have been hesitant or cautious to dip their towing to -- to dipthere their toe in. --maybe it is more than a more of a cash squeeze than a short squeeze. you may have people capitulating on their caution. that is equally as important. it is still cash flowing into the market and still a new buyer to put prices higher potential he. lisa: we have some bears that are capitulating. ome bowls also -- some bulls also capitulating. do you see that as a potential for a near-term shock? stuart: we definitely see higher rates as a risk to the market. even though you've had a move in rates recently, inflation excitations have also risen, and typically equities respond very favorable, so the inflation is kinda

even before today's announcement from facebook, ubs released a new note raising its price target and saying the opportunity for businesses to sell directly to consumers through facebook is a potential $10 billion opportunity for the company over the next 3-5 years. ubs adding that facebook is benefitting from the growth of e-commerce as well as its ability to drive sales >> julia, thank you. the assumption behind that $10 billion revenue estimate over 3-5 years is 30% penetration of the businesses that have accounts on business it's not a wild and crazy 100% assumption, tim. what do you think of facebook here >> yeah. remember that when we talked about the facebook tiadvertiser pushback, we talked about small to medium sized businesses being the backbone facebook gets more criticism from the small business community an apple in terms of their ability to dictate the terms. this news came out in may is my recollection the argument that this is particularly useful at a time when a lot of small businesses have been closed some of that pressure on small business has been alleviated, but i

great talking wayne gordon from ubs global wealth management.up, boeing has been given a lift of requirement and the eventual return of the 737 max. what it means for the aircraft maker and its customers next. this is bloomberg. ♪ rishaad: the federal aviation administration's requirement to the faa, the most extensive following an accident. let's have a look at the key details here. >> one of the key details is system whichthe was basically at the forefront of the crashes we had both in africa and in indonesia. there will be major changes coming on that section as well. previously they detected from one sensor, which ultimately led to confusing data and they changed it to have two sensors to detect and sense data. they are also sent training procedures so all the pilots will have proper training to detect if there are any problems with the system itself. boeing is also revising some procedures in the flight manual. some of the changes are sort of centered on the key system that was behind the major crashes that led to the grounding of the aircr

still with us is bhanu baweja at ubs investment bank.this time tomorrow, we will be picking apart everything fed fair -- fed chair jay powell has told us that jackson hole. what should we be looking for? [indiscernible] kailey: that sounds like we are having a bit of an issue. guy: this was my great fear. fear, thatnu's great the technology would let us down and the internet would not provide us with the band with we would be hoping for. we are going to be picking apart everything jay powell has to say. we will get more details come september, but the big question that keeps being asked, if we go to average inflation forecasting that the fed is potentially moving to, how do you communicate that? people can understand a 2% inflation target. it raises the risk of a miscommunication by the fed, and jay powell had a few of those. kailey: that is a huge issue, not just on inflation but how they will communicate their forward guidance. whodoes fed chair powell, has been quite open speaking to the american public, has gone on "the today show" r

it is always good to have paul donovan with us of ubs wealth management. a real focus on china and the dynamics of the political economy or the economic politics of said china, and today, a really historic moment is the cabinet officer of the united states of america is scheduled to visit taiwan. this is a reach back 40 years as well. how much of an affront will this visit be to beijing? paul: i think beijing is unlikely to take it terribly well because the language around this, which is related to the covid-19 pandemic, has also been quite pointed about transparency , so one and so forth. this is coming as we are also hearing that next week or the week after, the u.s. and china are going to be reviewing the phase i trade deal. so i think we probably have to see it in this context come up -- this context, that this is a sort of saber rattling ahead of these review meetings with lighthizer and vice premier liu he. on the domestic politics of taiwan. i know it is very nuanced, very original. give us a quick brief on the state of the political majority in tai

baweja, ubs chief strategist. love the idea of the analysis of income statement versus balance sheet. i totally agree that the balance sheet dynamic is very important. a reason to speak with stephen roach, and we will do that later on surveillance. it has been way too long on commodities. and yes, with oil at $45 a barrel. mr. harry tchillinguirian. this is bloomberg. ♪ ritika: this is "bloomberg surveillance." let's get the bloomberg business flash. convention, night one has wrapped. michelle obama, senator bernie sanders, and republicans who cross the aisle to support joe biden spoke. >> i am sure there are republicans and independents who could not imagine crossing over to support democrats. they fear joe will turn sharp left and leave them behind. i don't believe that because i know the measure of the man. it is reasonable, measurable, respectful. and you know, no one pushes joe around. ritika: boeing will make deeper job cuts than the 10% originally planned. the plane maker is planning buyouts to employees fo

anna titareva is a pan-european economist at ubs.ing up, we will talk about s.bc's big mis this is bloomberg. ♪ what happens when a wireless carrier puts its customers in charge? well, the good news gets shared. and it gets rated #1 for customer satisfaction. but don't just take our word for it. take theirs. it's your wireless. your rules. only with xfinity mobile. call, click or visit a store today. 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. annmarie: welcome back to the open. we are 30 minutes away from the start of cash equity trading. a mixed chair across the futures market in europe and in the united states. betweeng tensions washington and beijing. earning highlights for the week ahead. berkshire h

they have been taking a look at ubs for other things.y are looking at everything from money laundering, tax avoidance, the capital standard. regulators have been very tough on the banks, particularly the swiss. the question also is, does that go to other countries as well? guy: we will leave it there. thank you much. updating us on what is happening at credit suisse, the story broken by bloomberg a little earlier. we are counting down to the end of the week. in some cases, the end of the month. european equity markets are broadly lower. what is interesting is that the european banking sector, unlike the united states, is significantly higher, up by 1.88%. 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

to a now is jason draho, ubs head of technical asset allocation. positionedare marryin remain to the upside? jason: big tech companies certainly got the headlines across the board. the what is notable is guidance for q3 has actually gone up 3%. the overall earnings outlook is showing pretty solid improvement. markets are looking through the weakness we had an second quarter, probably priced more for 2021 earnings. that is a positive. data,e seen some mixed recently concerns about slowing growth in the u.s. because of increasing virus case counts. but the virus curve is flattening, and we are seeing some signs of mobility pickup and some of those states. markets are price potentially for a vaccine solution. do we actually get confirmation? i think there's more upside from that. tom: you have some serious face time with robert schiller of yale on the path to your phd. what kind of exuberance is this equity market? jason: i think it is not that exuberant. there are certainly pockets of it, but on the institutional side, when you look at the overall se

ubs, deutsche bank and other creditors holding half $1 billion of urgent bonds are supporting a plan baincapital and revive the struggling airline themselves papers in australia collapsed in april owing billions of dollars. there was a fast tracked sale to baincapital. $2 million amid strong demand with fidelity among the biggest participants. the company was in talks to raise $1 billion at a price of $270 a share which would have valued spacex at $440 billion. this would be their largest so far and comes after a successful iss mission. coming up next, japan second-quarter gdp data will be with us. expectations for record contraction. worker joinsrica us. we get her response next. this is bloomberg. ♪ this is bloomberg. ♪ we are awaiting second-quarter gdp numbers out of japan. today's report is expected to show the economy slumping deeper into recession. let's bring in izumi devalier. she joins us now from tokyo. great to have you with us. we know the data can be very backward looking, so what will you be watching for? dataah, this was obviously that captures developments up until t

let's check in again with meteorologist mabrisa rodriguez and we've been happy to be able to ub research conditions improving at least a little bit yeah that's right and mother nature's ac kicking into high gear certainly going to help out firefighters, especially during the overnight hours. >>thanks to the return of that marine layer so it is going to bring up relative humidity up to 100% and down to around 50 to 60% by your tuesday afternoon. so a lot more moisture. calmer winds speeds as well better clearing by tuesday afternoon. but it's great to see the return of that fog bank out there not just along the coast, even spreading inland as well temperatures out there right now widespread 70's but in the mid 80's throughout the tribe valleys and 50's and 60's throughout the san francisco peninsula coastline with widespread 50's and 60's for overnight lows and tomorrow's daytime highs cooling down to near normal right along the coast with mid to upper 60's for happen bay in downtown san francisco, mid 70's for the east bay shoreline and widespread 80's and 90's as you make your way inlan

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when ride sharing levels were much, much higher but still, it does at this point go to the public if ub eastern lyft do us is spent their operations, lyft in the e-mail which now seems premature, sorry, the blog post earlier saying they would be us is spenting service at 12 tonight. they said it is possible to flip a switch and make all the drivers employees. fwh but this is a conversation issue going on for years they had lots of notice. and perhaps this now delay gives them more time to make the drivers employees. but i don't think that's going to happen. i think is a battle that will continue to play out in the public. >> interesting it's not dissimilar from the situation in london. the issue there is different with uber. it is more on background checks and safety of drivers as opposed to making all employees full time employees but it led to the same kind of standoffs with the mayor's office and uber saying they're going to be banned all together. as soon as that threat of removing a service that customers like so much in full comes about, it led to the pendulum swinging back in fav

covering 30 square miles. 5 buildings burned to the ground and one structure that has been spared is the ubke extended the spare the air alert through wednesday. poor air quality is expected to tdoo impacts on the east baywies tri they have to choose between a their health and livelihood. >> the air is horrible. at some point we might have to close. >> this is the worst air you can breathe in. if some of the workers have asthma for example, you know,he wl verta sta inde closed. they also recommend air purifiers and conditioning to keep outside air moving from outside inside. >>> city officials say traffic could become an issue and beach goers could interfere with first responders. >> don't think we gave muches it is another hit. but we are very concerned about our maybe iters neighbors to the south. >> beaches are expected to reopen tomorrow morning. >>> still to come, the house passes $25 billion in funding for the postal service. but will it make it through the senate? >> a coffee company owned by firefighters helping fire victims. like cordless phones. - ( phone ringing ) - big button, a

i think the ub is not the only country, there are several other countries that are on the scale in differentges. now why did you happen this year. i think there has been serious concerns and the uae went overboard as part of the league and the usual statements it was one of the early states of annexation. and then you also had a remarkable these things developed in part of the thinking in all three capitals where we can actually connect, can we actually connect -- i was speaking to a european ambassador an hour ago and i said can we actually connect this to an give-and-take, it's an annexation and he said impressed normalization is also a positive thing so i would say that these things developed in many people played an important role in certainly a team plays an important one. under all of that, it's really important, under all of that is the strategic re, and the desire as strategic you can do things normally every day but you don't get the big opportunity and less you take a big risk and here he felt that this is what we will have issues but is the right thing to do because it will open u

ubs asset management and anderson joints next. failed toend meetings unite democrats and republicans on a stimulus bill. analysis ahead of what to expect from talks scheduled for monday. this is bloomberg. ♪ karina: you are watching "daybreak: asia." i'm karina mitchell. global coronavirus cases are approaching 18 million with 680,000 deaths as scientists race to find a vaccine. the u.s. remains the epicenter. cases in california rose by more than the 14 day average while new jersey's transmission rate climbed. nancy pelosi exposed deepening splits in washington saying she no longer trusts pandemic information coming out of the white house. >> the president is spending -- spreading disinformation about the virus. and she is his appointee. so i don't have a confident -- i don't have confidence, no. karina: the u.k. is set to be considering sealing off greater london and ordering people to stay at home in a bid to avoid a second national lockdown. the sunday times says the government is weighing shutting down the capital and tighten

ubs on is higher than forecast it ends.he hkex biotech summit and speak to the president and ceo, plus we will track the china wealthth ubs global management head of global asset allocation. that is it from "daybreak asia." our market coverage continues as we look ahead to the start of trade in hong kong, shanghai, and shenzhen. standby for "bloomberg markets china open." this is bloomberg. ♪ >> is not :00 a.m. in beijing and shanghai. welcome to "bloomberg markets: china open." we are counting down to the open of trade in the chinese mainland and hong kong. our top stories today, china's relations with trading partners and neighbors. beijing detains an australian journalist, sparking tensions with canberra. troops clash

ubs wealth management's hartmut issel. coming up, defying an industry slump.y supplier lg chem is seeing record sales. our exclusive interview with its ceo is ahead. grim milestones. more on this later. this is bloomberg. ♪ >> tech stocks will be in focus when china opens for trade after a high-powered u.s. panel pushed for tighter disclosure requirements on mainland companies listed on american exchanges. this is just a recommendation so far, but how likely is it we could see this be put forth given the anti-china sentiment we are seeing in washington right now? >> right now this is a should and not a must. however, it's got a lot of big-name people behind it in the u.s. there is certainly sentiment toward increasing transparency in terms of china listings and some of the things they have going on. reasons a non-usa china for doing this. we also do remember, thinking back, the high-profile accounting scandal. there has been a lot of call for additional transparency, the ability for inspectors from the accounting oversight board to review audits of companies l

joining me for the hour are stephanie link, jim, pete and rob with ubs private wealth management onees top 100 advisers

the ub inspired to affect change by remembering the others who may not know that they have a voice. i tell the ladies i today, passion will provide a platform and with god all things are possible to those who believe. 19 for this opportunity and the other opportunities to come . >> thank you for your efforts, 16 years ofsustained efforts in this area and we are so grateful for your leadership . next i'll turn to the joint community resource center, if you would mind providing a few remarks as well. [inaudible] i'm not only here for myself but i'm also here to represent many voices and many faces. i am a victim of human trafficking. i was dehumanized, depraved, tortured, beaten, starved, threatened by knifepoint. if i did not do what they commanded me to do. i wasgiven drugs and became addicted . the fear and shame of my addiction kept me separated from my family and children . i was in a cycle of hopelessness, living on the streets, homeless and addicted and lost hope of receiving my life back. i was admitted into human trafficking court. this is where my life began to show hope. i

you saw this in the asset management division with ubs as well. management, 35.5 billion.hose are some numbers, down 6/10 on the quarter. and providing white labeling, that's the real driver here. billion, up 9.8%. officialsing up, said talk up the urgent need for another round of fiscal aid to support the u.s. economy. exclusiveom our conversation with the dallas fed president, robert kaplan. this is bloomberg. ♪ ♪ is "daybreak: europe." two the fed, the federal reserve officials are warning that they need another round of fiscal aid to support the u.s. economy, as the political stalemate is continuing. democrats and republicans struggling to agree on what exactly is needed. payments ofenefit $600 a week expired last week, republicans wanted reduced, arguing it was to generous and discourage people from returning to work. we spoke with robert kaplan about what is needed for the economy. our viewn: it is still we will contract for the year at -five percent. it's been our view after a sharp decline in the second quarter. --had healthy rebound in the we will have healthy reb

soncine: kiran, thank you much, from ubs.ing up, president trump's advisor, jared kushner, says the agreement between israel and the uae will change the paradigm in the middle east. we hear from him, next. this is bloomberg. ♪ francine: economics, finance, politics. this is "bloomberg surveillance." i'm francine lacqua, here in london. let's get straight to the first word news with leigh-ann gerrans. leigh-ann: the u.s. and china have postponed trade talks that were supposed to happen over the weekend. they were aimed at reviewing progress at the six-month mark of their faith -- they're phase one deal. the talks never made it onto any official calendar, and have been shelved indefinitely. the u.k. -- the u.k. suspended its criteria for appealing results hours after they were published. irregular of quelled says they are under review after scores of results for a levels saw determined university prison -- placement downgraded by an algorithm. japan's economy has suffered its worst quarter in data going back to 1950 five. gdp s

formerly a trader with ubs and there is nothing like losing money as a traitor to give you -- as a trader to give you clarity is a portfolio manager. let us turn to the linkage of the dollar to your world of emerging markets. is it about dollar dynamics or is it em by itself? tom.: it's a bit of both, most of the markets in fx, we see verification playing out in a big way. for em currencies, we are those markets doing better. the currencies have done reasonably well year to date. but it is a broad dollar. for the high yield, it is more on a case-by-case basis. the fundamental point really does make a big trend. -- turkey asookie a good example. it struggled to do well because the fundamental point doesn't change by a weaker dollar. jonathan: we typically talk about a country in em getting in trouble and contagion risk to the rest of the complex. how much exposure is there to turkey given what has happened over the last several years? it seems like every 12 months, we have the same conversation. how money people be risk and reduce exposure to turkey? it is irrelevant for the rest of the co

he is a financial visor at ubs what is the level of optimism from your clients right now at ubs?> everyone's very optimistic because the market is at all time highs st the issue is where do we go from here? and there is a lot of headline risk so there is a lot of negative headline news that come k. come out with the elections looming over us in november. they're staying defensive. >> you are telling them not to chase this rally is that what you're saying >> i'm telling my clients if you are someone who has a 30-year time horizon, i'd say keep to your asset allocation. continue to dollar cost average into the market. but it you're someone who is looking to retire the next couple years, i think you should start taking some money off the table. and wait and see what happens in november do you soo he that being priced in at all? >> i don't think it is i think that certainly investors are very optimistic and they're looking for reasons to bid market higher. but even if you look at the consumer confident report for last two months it, that's been declining. and that seems to be consist

mixed picture here more earnings coming through we have shares down 2.2% ubs holding steady hsbc down 3.8% a pretty big move lower for the lender as the first half profit fell 65% the decline was lower than expected with posting $4.3 billion for profit during the period compared to $12.5 billion last year. >> hsbc is warning it's losses could hit 8 to $13 billion this year now this is the 7 to $11 billion range given three months ago this as they reported the first half result with the pretax profits slumping to $4.3 billion now this is a function of loan loss prevention that is a trend among banks increasing their buffers to absorb bad loans due to the coronavirus pandemic. it's expecting $6.8 billion of credit impairment charges for the first six months of this year dividend suspension announced earlier this year was an effort in preserving cash now thanks to such efforts, the ratio which is a key measure of a bank's financial strength went up by 30 basis points from the end of last year to 60% in the first half of the year also lower global interest rates and reduced customer activ

to get you can still get an ube or lived in california both are threatening just change if the didn'teir workers a employees. lift already says we are stayin for now. we'll use ellis your car today? >> the united states is initiating the overall un sanctions all un sanctions on iran lifted under un security resolution 20 to 31. of this process will lead to those sanctions coming back int effect 30 days from today. >> if you think that the iranians responded to all of that with a clint eastwood version of make my day rubbing still more salt in the international diplomatic wound by saying they're going to up the ante and do whatever the they want. we are in tel aviv with what that might be. >> u.s. secretary of state mike pompeo met with the un official today in new york to trigger th snapback of iranian sanctions a was expected, it turned into a bit of a diplomatic mass. u.s. allies today including france, germany, and britain saying they don't agree with this decision. obviously the russians and iranians are not on board sayin they would like a new meeting tomorrow to try to figure ou

paul donovan there of ubs wealth management. good morning.longside 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 points. jonathan: tom keene has been complaining about this for the last 10 years. tom: these are roman numerals. we like to go cross asset, and also in detail. right now, we go to kevin cirilli, our chief washington correspondent. the silence in washington last night was the president's list of approved debate moderators. i'm fascinated by the president's demand, and frankly intelligent demand, should we h

joining us is mike ryan, ubs global wealth management divisional vice-chairman. are seeing today, which is rotation to value, rotation beaten up, definitely risk on, sell bonds, sell gold, his is a real rotation and is it sustainable or is it a buying opportunity? mike: you have to be careful not to take what is happening today at extended over the next three months. part of what you are seeing today is good news on the progress being made on the vaccine. the progress on the vaccine is critically important because it allows economic normalization to continue. we have seen the economy come off the bottom we saw a reached in the first quarter, but the recovery will continue to depend that allow normalization of economic activity and allow progress on the commercial front were we start to see businesses getting back. if that continues, what you will see a some of the safe haven assets, the ones people have fled to on the expectations that growth would be permanently impaired, or expectations we would have to see much more policy support, some of that will come off t

joining me for the hour are stephanie link, jim, pete and rob with ubs private wealth management one of forbes top 100 advisers >> great to see you. thanks for having me >> ted line as you go from 34.50 to 35.25 it's on the back of what you have coined the epicenter stocks why today to raise your target >> i think we're nearing a really important level a lot of guys are saying this is a sign of a renewed bull market. i think we should be constructive on an all time break out. i think the upside, which is why we're raising our target will come from the epicenter. these go back to their february highs. that adds 150 points to the market add to that to are we are today and that gets 35.25. >> you said today was going to be the day for this. what you coined monsterous rally. there's no real indication, tom, that growth is ready to give up its leadership role, is there? >> no. people have been successful sticking with the growth stocks. i think it will tough to give that up plus they are still cheap against bond proxies the epicenter, these companies have rationalized costs. they are maki

ubs sees a move back around seven over the rest of the year if it worsens or economic recovery stallsars in australia, the earnings rate continues. let'sest have reported, turn to a chart for our bigger picture view of gold mining stocks. bullion has done little for evaluation with the sector. the gold mines index trailing the all world index on a basis since may 26. about 16%. now moderating from the 19% we saw in june, the biggest gap since july of 2013. haidi: all right. we will keep on the topic of new crest. the mining company in australia just reporting some of those numbers. paul allen is here. what are you seeing? paul: those numbers are still scrolling across the bloomberg terminal. on first glance they appear to be strong. $647 million. up 15%. underlying profit also beat $750 million. the consensus was for just over 700 million. reasonably healthy dividend as well. revenue was up and the outlook looks reasonably decent. $1.59 million. 2.1 5 million ounces of gold seen in 2021. of course the strong gold price really helping to underpin the result. also haveckly, we national

what is extraordinary about this , and i go back to stuart kaiser of ubs, is the idea of the cash on the sideline. i think that is something we've really got to leon near into labor day -- to lean on here into labor day. lisa: some people pointing to that is a potential myth, the idea of how many for putting in cash like funds. like a triple leverage cash fund, or just putting it in a mattress. tom: it is comfortable, but you mentioned the money market funds almost getting support off of that low yield. lisa: the idea is some of the fund managers are suspending fees for money market funds to avoid having an effective shows the pressure that money market funds are on. even afterthought, that is what , so who'syour child the problem child there? tom: and thank you for all of the emails we have received on this great national conundrum of back to school. it is interesting to talk to the congressman of arkansas about the challenges, like what you do about the college level, and in the south as well. it goes down to nursery schools and all of that. it is a huge national issue. lisa: yeste

mike ryan of ubs wealth management. these are some of the dynamics of the consumer., jonr ferro off, lisa abramowicz and e onking -- and tom keen television, on radio. sterling and a mentee bank career and wandered over to moody's, where he is the definitive analyst on the street on the debt, on the balance sheets of retail america. we are thrilled that charles o'shea could join us this morning. , andk at retail right now the great hope and prayer is a real estate work out for the beleaguered. is that a hope, or can that be a reality. charles: first, thanks for that glittering introduction area i think it is a common nation of both. i think what you're going to see is a consolidation in the retail space, which needed to happen. we were way over the square footage heading into the pandemic. from 2007 toboom 2012 hasn't really come off yet, so there needed to be something. i think what is up in the air right now is exactly what the retailers that survived this and those that thrive, what their footprints are going to look that the surge in online spending has benefited

so the result of this, guys, if ub uber and lyft have to comply, it can be drastically higher costs forvers and riders >> pivoting back to the broader markets. final thoughts what would be your top sector pick for the rest of this year >> yeah. you know, i think broadly speaking investors that have been very overweight in technology, gold, trade should think about diverse fig in the cyclical areas if if areas like airlines and hotels are perhaps too high beta, think about areas that will benefit from both areas some sectors in that camp include medical technology, you know, surgeries and et cetera start to open up housing in a low rate environment benefiting from a secular trend towards moving into the suburbs and esg broadly has become a focus area when you look at public policy, joe biden's campaign put out tremendous policy, funding towards areas like clean energy, even in europe you're seeing the similar trends really an area poised for growth these are just ideas can you think about if you want to broaden that portfolio beyond just, you know, the core pandemic plays >> paul and mon

todd gordon of asent the ubs facebook call, quint, do you agree with it or not >> i like the call i thinkan trade further upside in facebook it's not an overly high momo stock until today. i think traders can catch some upside i think it's on its way to the trillion dollar market cap club. >> it's already broken higher they beat by 25% we already moved higher. the current target is about 18% away from current levels which as the company is growing, we don't see an issue for that. we do own the stock in our opportunity strategy we were in that range heading last quarters earnings we think facebook and instagram are reflecting the dom naninant players. facebook is the go to for small business advertising dollars there's nowhere else to go plus we think the advertising budgets for facebook will grow you come out the other side of covid. that will be a driver for new initiatives plus the new facebook and instagram shopping app they incorporated shopify into we're bullish. we hold it not adding here but any pull back. it would be attractive to us >> all right todd and quint, thank you very muc

good morning to you,ub sir. >> guest: good morning. how are you? >> host: i am doing well. could you start by reminding viewers what the america public health association is. >> guest: sure, thank you. you're the national nonprofit of people who practice public health and quite frankly, many of our people, the ones out chasing the virus each and every day. >> host: what role have you sought to play in the coronavirus pandemic?ht what is your group been doing? >> guest: we have been doing a lot of policymakers, the public, advocating for resources and generally trying to push in prohealth agenda based on science p. >> host: we found out yesterday the number of reported coronavirus cases in this country past the 5 million mark that is doubling of u.s. cases since the end of june and the last million happening in just the last venting days paid your reaction to that milestone. >> guest: the challenge is that a lot of this is preventable. we are not paying attention to what we know works. when you look at other nations in the world may be as they get their hands around this ter

we speak with ubs australia's head of fixed income, and we will hear from the university of sydney epidemiologistaway about australia's battle to contain the virus outbreak as we get fresh restrictions out of the state of victoria, including the new curfew being imposed as well as waiting to hear about the restrictions on businesses later on today. we have all of that and more ahead on daybreak: asia. this is bloomberg. ♪ haidi: good morning. i'm haidi stroud-watts in sydney. we are counting down to the major market open. shery: i'm shery ahn in new york. welcome to "daybreak: asia." our top story this hour, the u.s. goes after china again with tiktok facing a nationwide ban. microsoft post its interest on hold as mike pompeo says other chinese software is under scrutiny. the coronavirus marches on with the u.s. remaining the focus. the u.k. considers new curves in london.

we are ub any fied in our support at $600.ey are in disarray. >> mark meadows and i will be back here every single day until we reach an agreement. we understand there's a need to compromise but on the other hand there's a big need to get kids into school, get people back to jobs and keep the economy open and keep people safe. >> and for many americans, that extra $600 helps pay the rent and if it's discontinued, they worry they could end up out on the street. cnn's paul bercammen has one family's story. >> reporter: tension on the streets of los angeles this weekend. economic worry. people wondering how they're going to make ends meet. the $600 from the federal government gone and looming on the horizon, how to pay your rent or make up for rent that has not been paid. there is a moratorium on the things in the city of los angeles, but in the state some other eviction moratoriums may go away soon. we talked to the alvarez family. they haven't been able to pay rent in three months and they are greatly concerned about what's goi

the state won a temporary injunction that could force ube and lyft to reclassify drivers as employees as early as tomorrow. >>> the mayors of san jose and san diego do not want san francisco based uber and lyft to pause operations. as leaders of the second and third largest cities in california, they are urging a judge to delay enforcing the law. they want state leaders and ridesharing companies to come together and negotiate a solution to avoid a shutdown. in a joint statement they said being forced into a situation where shutting down service is the only viable option hurts everyone at a viable moment when we need to pull together to help californians make ends meet. a lot happening this morning, but mike, let's check in with you because we want to know what these winds might be like for those firefighters out there and for us trying to just breathe. good news.ave slightly goody noy here is a look from tam where it is not nearly as hot as yesterday. so the unhealthy air easing for some of us but not all. temperatures still above average through next week and i'm still watching a cha

when it comes to investing in asset classes specifically art, ubs has a strong global presence.ur clients around the world what motivates them when it comes to investing like this, they basically tell us, since the covid lockdown, the collectors community -- into this digital realm and what we see is, you know, a lot of people not traveling, spending more time at home in front of their computers. what we got was the gift of time. it gives investors unprecedented access to the asset classes like the ones that you're describing where the motivation behind the investment is more of a passion, you know than profit even though -- can end up being quite profitable. charles: although, i'm going to say, let's face it, the profits ain't bad either. even before covid you had a record for living artist last year, might have been jeff coons or everything else. records for a b.a. squiat. i wish i had bought one 20 years ago. record prices for gold and silver. there is something going within store ever value. historically have they proven to be great stores of value? is this a reason why indi

platform the center of their e-commerce strategy which would drive ad revenue wells user engagement today, ubsng its price target writing in a report that facebook's shopp allowing facebook to sell on its properties is a potential $10 billion revenue for facebook in the next five years. and the e-commerce trend as well as the ability for its ads to drive the e-commerce sales now, that report was issued before facebook announced this new shop destination which further shows facebook's interests in profiting from social commerce. john, back to you. >> julia, thanks greg, you've got firsthand experience when it comes to rolling out e-commerce features. i also think about facebook. they launched facebook watch that didn't really explode on to the scene. marketplace, not sure how well that's done. what do they need to do with these shops to make sure they have kind of a bigger impact than maybe some of the other efforts have >> well, again, i'll be interested to explore what they've done further however, certainly, what, you know, customers across the entire kind of global e-commerce ecosystem are

i feel like ubs, facebook -- i don't know if it was evidence lab.quarter, mdt. >> ubs took facebook to 330, they were at 242 they're talking about shops being a $10 billion opportunity, jim. >> it will be. >> that's a new street high on facebook as well. >> i think shops is brilliant, it's the ambassadors now of the company, notice the heat has died down. there was a non-story about actually that zuckerberg has been saying, listen, as long as microsoft -- microsoft can get tiktok as long as it's separate. there were no revelations there but they had to make it a revelation you have mark smucker? you guys have mark smucker >> yeah. >> why don't you cut my heart out. indiana jones and the temple of doom he was my guest. you know how he reaches it and just goes like this, that's what you just did to me. >> you don't get every single one of them, jim. >> the great sara eisen -- i'm not going to mess with the eisenhower >> you should feel better about it, i'm on that hour today with sara, those two hours. >> it's cafÉ bustelo, it's dunkin'. >> that's in

the new york traded company is working with bank of america, credit suisse and ubs and said to join chineseooking to list in hong kong amid increasing tension between beijing and washington. the timing and size of the sale remain unclear. india's largest airline is looking to raise just over half $1 billion to write out the travel upheaval from the covid-19 crisis. approved.arent has indigo reported a $386 million loss for the june quarter, with a net worth falling by almost a half. that compares the profit of $160 million a year earlier. haidi: let's take a look at how we are setting up the tuesday session in the asian markets. so much direction from wall street overnight. we had a pretty mixed picture. investor selling off some of the tech names. the china-u.s. tensions continuing to weigh when it comes to chipmakers. asian markets open but this is how it is shaping up when it comes to sitting. a little bit of weakness but aussie shares have been soaring after we had the highest close on monday in about three weeks. financials contributed pretty heavily to that rally. new zealand is looki

show the attempt to hack into election systems or misuse social media, and this attempt focused on the ubntact between russian agents and people affiliated with the trump campaign. but i would say that is still all in the rearview mirror. what do we take from this report going forward into 2020? ten days ago the american intelligence community said that russia will be back. and they are back. and other nations may be trying to copy their playbook as well, like china and iran. and my job as the intelligence vice chair is to keep the pressure on the intelligence community to get that information out as much as possible to the american public. we have an obligation, i think, to educate the american public about the russian disinformation campaigns. russia's attempts to mess with our election, they do it in democracies all around the world. >> right. >> but the best is educating the public and -- does a good job and lithuania and estonia does a great job, educate the public so they could spot that russian disinformation. we need to do a better job of that going into 2020. >> well, frankly, si

continue to watch thanks for being with us >>> and coming up, california's eryfrney general on the ubng stay with us you say the customers make their own rules. let's talk data. only xfinity mobile lets you switch up your wireless data whenever. i accept! 5g, everybody's talking about it. how do i get it? everyone gets 5g with our new data options at no extra cost. -that's good. next item: corner offices for everyone. just have to make more corners in this building. chad. your wireless. your rules. only with xfinity mobile. now that's simple, easy, awesome. switch and save up to $400 a year on your wireless bill. plus, get $400 off when you pre-order the new samsung galaxy note20 ultra 5g. >>> hitter sto shutter stock is plunging after announcing a large chunk will be sold by the company's founder and executive chairman who also happens to be its largest shareholder. today's move lower pretty much on track for its worst day in years. the stock remains firmly positi -w20 after notching a new 52eek high a week ago. we'll be right back. - at u.s. money reserve. we've helped hundreds of t