generally lower on fears the american recovery is stalling. ♪ wall street is stalled, stocks falling to their lowest in a week as rising u.s. jobless claims rekindle fears about the recovery. there is growing evidence of the economy is in trouble. breaking lives across the terminal focused on the electric vehicle space, a challenger to m motors isna, w filing be considering for an ipo and the chinese star board. we talked about the star board in the last hour and the fact that this has now become a red-hot venue for ipo's. this confirms the trend. tv maker wm -- is now considering an ipo on the chinese star

board, again, trying to challenge the tesla hold on the market. wm has a factory in shanghai. let's check the markets. risk off on the u.s., falling 2% on wall street on the back of concerns about u.s. jobless claims. the virus, above 4 million cases now in the united states. and as we said, concern that the economy in the u.s. is in trouble. screen, read on the broadly across the msci asia-pacific, down .6%. on the mainland would just talked about the proposed ipo by wm motors, small caps setting off more than 2% as we get for the end of the week. ong kong looking attractive to investors, it seems, down. .2 percent, up despite concerns highlighted earlier. weakened byyuan .1%, currently around seven in terms of the offshore yuan.

the aussie dollar and the japanese yen, looking at that as well, the 10-year basis point, 58 for the 10 year as a result of the risk off we had at the end of the day on wall street. chinese, 2.91. gold at 1.46 in terms of the gold-silver index, and philadelphia crude, $41 a barrel. we are going to talk about the complex around oil and supply happen demand questions later in the show. look at just taking a the currency situation, this is what it looks like for the dollar. we have seen sustained dollar weakness of late. the dollar is touching four-month lows. we are set for a fifth week of declines. you can see what is going on there. and then we have the euro climbing up to one dollar 16 cents, sterling as well getting --onger at one dollar 27

$1.27. the index is underperforming, the red bar going down, five straight weeks of declined out for the currency. would it means is that it is grinding down at the start of and i suppose it remains supported at some extent by weakness in the greenback. we bring in mitul kotecha emerging maca -- emerging market strategist for td securities. tell us what your view of the dollar is at whether this weakness can be sustained further, and the path of least resistance? is is thatreality the dollar is suffering from a number of angles. there was a case of optimism toward europe, and the recovery fund has helped the euro in recent weeks, at the same time

the increase of intensification of the virus in the u.s. that has flattened growth we have seen in recent weeks. ere are worries about the election and frictions with china, all adding to that weight of uncertainty on the dollar. and it looks stressed when you look at the technicals, the technicals would suggest we are at key critical levels or around there. but it is like catching a falling knife. anyhe moment i don't see incentive to be holding on are going to long dollars at this point. so even if it is stressed, i think the conviction of the long dollars fairly limited. rishaad: which currencies in this part of the world are likely to benefit from this? mitul: if you look at the currencies with the highest sensitivities to dollar weakness, in asia, they are the ng dollar,he si and another of,

the sensitive currencies. rishaad: what we have also seen is the tendency for u.s. equities, when they are going them quite down going into the dollar, but can you see any other correlations you would be looking at? td securities -- mitul: that is absolutely right. the risk-dollar relationship has certainly broken down. part of the reason is, simply put, a lot of these issues are the fact that we have got concerns about the u.s. election, we are concerned about u.s. covid cases, and the fact that there are election risks that are intensifying, all of those are adding to the weight of pressure on the dollar.

and having a number of client conversations in recent weeks, i haven't found anyone willing to be positive on the dollar. that said, conviction has been low. it is not a sense that everyone is going out and selling dollars, which could mean there is dollar selling to come. but for now, as i said, it is looking somewhat stretched in terms of dollar weakness. how are you factoring in the resurgence in virus cases in places like tokyo and hong kong, and the state of victoria in australia? and the need for policymakers potentially to step up support, potentially further lockdown in those economies, and how that factors into the currency space in those jurisdictions? mitul: yeah, it does add to the uncertainty. so far, it is interesting that the increase in covid cases hasn't necessarily impacted currencies in this region, but it is a big risk. as you say, if lockdowns intensify at a time when stimulus measures are starting

to run out, yes there could be more, but how much more monetary stimulus can there be? how much more fiscal will there be? in the u.s., for instance, concerns about a fiscal cliff and a new package there. but we talk about asia, and cases of virus infections, it is a concern because the viral -- because the recovery is going to be a lot slower than people had open for that is going to weigh on markets and currency in the region. tom: potentially a stimulus package of anywhere from $1 trillion to $3 trillion, depending on what happens between negotiations between republicans and democrats and the white house. if that additional stimulus comes through, does the flood of stimulus coming through emerging markets, does that at another level of support for ems asse ts? yet torepublicans have agree among themselves, and then there has got to be discussions

with democrats, all the while the fiscal cliff approaches. is more will impact em liquidity infusions. and that has already happened to a large extent. the fed's qe, which notably they have not been accelerating, they have taken time to reduce asset buying, so that means the marginal impact on em is lower. and unless you see a big jump up in quantitative easing or liquidity provisions, it is unlikely that the em are going to benefit much. going back to the dollar, this is one of the reasons the dollar is soft, because real rates in the u.s. and liquidity for dollars is so apple at the moment, it is weighing on the dollar. that helps em currencies, but in general, the new round of stimulus is unlikely to have much of an impact for emerging markets. rishaad: which central bank on this side of the world should we be focused on at this point? mitul: there is a big debate in asian certainly about debt monetization. we have been focused on

indonesia with this agreement on the government to monetize debt. there are a lot of questions. rohingyasterday where would follow s -- follow suit and move toward monetization of risk. but overall when we look at interest rates, rates have been cut almost their low environs, we may have a little more in this region, but not a great deal its of real thing for greatl banks -- not a deal. so the real thing for central banks in this region is how much more ammunition they have, not so much monetary easing for now. i am looking for that. china is a big focus. pboc has slowed down its policies. it is unlikely they will be more aggressive going forward either in the near term. mitul, have a lovely wicked. great to get mitul kotecha your insights. --t is mitul kotecha

that is mitul kotecha. rotavirus cases have doubled in the past six week. or deaths in california and florida set on welcome new highs. a detailed study of pandemic origins, investigators are expected to travel to beijing soon. meanwhile, the world health organization is hitting back at the trump administration, saying its comments about being bought i china are untrue and on acceptable. secretary of state mike pompeo isd the health body enthralled with beijing, justifying the u.s. decision to pull up. who rejects that and suggests its only role is to improve global health. ♪ ole focus of the focus of the entire organization is on saving lives. if there is one thing that shouldmatters to us, and

matter to the entire international community, it is saving lives. who will not be distractedy these comments. coronavirus infections continue rising in nature, hong kong reporting 100 plus infections for a second day. social distancing rules are being tightened amid a third wave, but the government insists a new lockdown isn't imminent. took a set a new infection record, 350 new cases as the country enters our long weekend. the coronavirus pandemic is likely to see india missing budget analyst says government finances come under pressure. the economic affairs secretary says spending targets may not be achievable. a bloomberg survey expects the deficit to widen to 7% of gdp, twice the government's original pandemic hits tax revenue.

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. i'm karina mitchell. this is bloomberg. ♪ tom: thank you. breaking lines crossing the terminal. cbn, the broadcaster in the philippines, falling 23% in manila trading, after a 30% loss posted yesterday. you will remember they failed to renew their license in the philippines. that is weighing on the stock again today. still ahead, we hear from an couldt who says crude drop back toward $40 per barrel. that is later this hour. but just ahead, mike pompeo delivers a fiery speech which could mark another low for relations between washington and beijing. we look at the possible response from china next. this is bloomberg. ♪

♪ secretary of state mike pompeo has issued america's darkest warning yet against china, as an existential struggle between right and wrong. speaking at the nixon library in california, pompeo's address is a culmination of a series of beaches from the trump, warning of the threat china poses to the rest of the world. pompeo:y of state president trump said he dealt with the soviet union on the basis of trust, but verify. when it comes to china, i say we must distrust but verify. we. [applause]

the freedom loving nations of the world must induce china to change, just like resident nixon wanted. from senior more international editor jodi schneider in hong kong. let's start with your key takeaways from the speech by pompeo? jodi: first of all, this was a very dark portrait of what the secretary of state sees as china's direction, and a remarkable week where the u.s. has taken a number of very strong actions against china, especially forcing them to close their consulate in houston. a veryis making this cold war kind of speech, it harkens back to language from the u.s.-soviet standoff during the cold war. and interestingly, he was making

them at the library of richard nixon, who opened up china, helped open up china a half-century ago. to cast a good and itevil dichotomy, comes as the u.s. is taking all these actions against china. so clearly, this is really meant make thisensions and a cold war era struggle. what kind of tit for tat are we anticipating from beijing, after what d.c. has been up to? really seenen't that retaliation yet, especially on the consulate closure. but we are expecting to see that soon. there are a number of things that beijing could do. consulates, u.s.

consulates, and china, and there is the u.s. consulate in hong kong, which used to be viewed as somewhat separate. but there is thinking that maybe this could be a place, if not close it, really downsize it significantly. we also heard a very stark warning from the foreign ministry spokesman yesterday, who basically warned the u.s. to think carefully about where that relationship was heading, again, very tough words as potentially -- as well as potentially tough action. tom: thank you. senior international editor jodi schneider. coming up, twitter seeing a record jump in new users, but add sales drop as businesses cut back on spending amid the global pandemic. company earnings reports are on the way next. this is bloomberg. ♪

♪ we have a look at the latest earnings numbers, intel taking a beating, falling 10% in after hours trading after reporting another delay in the chipmaking process. twitter come also disappointing news, despite surging users, the company saw ad revenues plunge. twitter beat the numbers, so why the selloff? another revelation, and this is not the first time, that a new chip production process suffered a delay. it was enough to send the stock tumbling after-hours. at decline was more than 10% one point, raced about $25 billion in market value, and intel's pain was a tribal gain.

advanced micro devices at $5 billion in microcap after-hours alone. semiconductor and other companies also rose. intel is their method of cranking out smaller and more powerful chips. it is a process which is being delayed by about six months, according to intel on the conference call. new,that means is, these crucial, next generation semiconductors will now hit the market a full year behind schedule. overshadowed the fact intel actually eat on the revenue and profits, second-quarter revenue jumped 24%, net income was $1.19 a share, both topping analyst estimates. some news that the production -- so news that the production delay is happening damaged intel's reputation, but not its finances so far. tom: what is going on with twitter? more uses, but add revenue

getting hammered. good news and bad news for sure. it reported a second straight quarter of record user group, and that of course has to do with stay-at-home orders around the world. pandemic and that civil unrest here in the u.s. which sparked campaigns by companies to boycott social media ads, revenue took a hit and came in below analyst estimates let's go through the highlights, because 180 6 millioned active users. that is 3% or 4% above where they were a year ago. revenue though, down 19%. the ceo says twitter is now going to look to additional businesses to supplement or offset this decline, perhaps a subscription service which wouldn't start until after 2020, but this is a way to supplement advertising revenue, which makes up, get this, 82% of total revenue. it was noted by many on the

conference call that twitter tended to sidestep questions about the future impact of these boycotts campaigns pre-back to you. thank you.nan, crossing the terminal, taiwan's taiex index topping its 1990's record closing hot. up on the that screen, the taiex topping its 1990's record closing high. the virusn on a tear, dealt with quickly and successfully in taiwan, and you are seeing investors move into some tech stocks there. we are talking about the semiconductor story and that is part of the story for taiwan as well. so this is the situation in terms of the time one stock exchange. years.f 130 7% over 30 again, getting back to 1990's record closing high for the taiwan taiex. business flash headlines now.

second quarter earnings beat formates, domestic demand suvs even as the coronavirus pummels the automotive industry. hyundai operating profits fell, but it was twice as good as estimates. sales declined 19% but beat forecasts. warren buffett's berkshire hathaway has bought $813 million worth of bank of america stocks, to stomach its 31% slump this year. by 3%, justhe stake under one billion shares. berkshire holds 11% of the bank now. it bought the shares for an average $23.99. in a subsidiary business india is purchased by tiktok as it looks to consolidate its competition against amazon. andart operates 28 cash

carry stores across the country which will now come under flip-flop wholesale, which launches in august -- flip cart wholesale, which launches in august. amazon is also expanding in india. ♪ rishaad: let's look at markets, the hang seng right now moving to the downside, taking cues from what is happening on wall street, where we saw the move to the downside. on the bottom, you can see what is going on with one outlier, taipei market, tswe, the time one stock exchange posting a record high, beating its record from the 1990's, now up 12,497. elsewhere, the shanghai company to pressure by more than 1%. moment,200, at the getting just depressed stocks.

.9% below, some of the weakness in the silver price, which has been on a tear lately, starting to make an impact. the kospi, the outlier, even though they have fresh tensions with japan. about flat, but still in the green. this is bloomberg. ♪

♪ 10:20 9 a.m. in hong kong and beijing. i'm karina mitchell with first word headlines. in a reversal, president trump is canceling the republican convention florida next month, as the u.s. continues to see rising coronavirus infections. he says it is time to drop the plans amid fears cases could strike among delegates. gathering was moved to florida after north carolina was unable to guarantee safety as the pandemic rose across the u.s. in a different form, but we won't do a big, crowded

convention. it is not the right time. i care deeply about the people of florida and everywhere else, frankly, in this country and even in the world, who would be coming into the state. i don't want to do anything to upset it. karina: latest brexit talks broke up with both sides saying a deal remains out of reach. use as a deal is unlikely while the u.k. warns an accord may not be reached before the end of the year split. talks continue in september ahead of an eu summit a month later. if no agreement, businesses will be hit by tariffs and quotas were nonexistent today. in others news -- in other news, spacex set to be aiming for new capital, $44 billion. an injection of $1 billion at a price of $270 per share, only the round isn't unlikely to close soon and terms could change. the most recent funding effort for spacex was for $500 million 36 billionion of

dollars. morgan stanley says it could ultimately be worth $175 billion. and china has launched it most ambitious space program yet, ending to join the u.s. and landing a spacecraft on mars. in the week'shed second mission, after a uae booster took off from japan. the chinese mission will take seven months to reach mars, with the rover looking for evidence of water and the possibility of ancient life. 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. i am karina mitchell. this is bloomberg. ♪ thank you very much check in on markets, modestly risk on if you are not looking at china, where there is read on the board, the mainland. hsi is in the red as well. taipei has gone back to its records last in the 1990's, and

since those in march it has rallied significantly at the taipei exchange. again, the virus story is a positive in taiwan. asia-pacific, off .7%. japan is closed, by the way. china and the china is lower by by 2%.hina is lower futures in the u.s. are looking modestly positive, up .1%. we are going to be looking at currencies, but also individual stocks in focus today. here are the currencies. the yuan has weakened, modestly at 0.71, the australian dollar has been weakened by .1% of the kospi is flat essentially. the 10-year yield, 60 -- 58 basis points, a move into the tent-year yesterday at the close of play on wall street when it

was a risk off move. next board, individual stocks we want to focus on. there has been a comment from xi jinping, the president of china, of has come out in support automakers in china. to 12%, tencent leading declines, posting losses in hong kong. abs-cbn posting another day of heavy license heavy losses after they failed to get their postingrenewed -- another day of heavy losses after they failed to get their license renewed. rishaad: let's look at what is going on in the u.s.. high-frequency data related to employment, restaurant bookings, motility -- mobility flattening. we have jobless claims number in the debate over the stimulus is raging in washington, d.c.. we go to public policy editor

kathleen hays for more on this. we are seem as though seeing, if not a flattening, some are going so far as to say another down lag in the u.s. economy, especially states hit hard by the virus. kathleen: that is the bad news. the virus is surging. renewed more talk of lockdowns in some states. businesses are going to be clobbered again in those areas. what isame time, maybe happening with jobless claims could put urgency under congress's need to move as fast as they can on the next, new stimulus package. id what we saw today is, think, inching forward, significant steps, and it started with treasury secretary steven mnuchin and sank the white house dropped insistence on the payroll tax cut as part of the gop package. he says a fundamental agreement

has been reached. planer, i haven't seen any actually being put on the table until next week. though,nd of the day senate majority leader mitch mcconnell, what everybody has been waiting to see, is he going to put something out this week? maybe not. next week? he said monday he will be ready to put the bills in front of the world, in front of the democrats. this will start the groundwork for negotiations, because now the republicans are giving specifics. the democrats have been complaining those specifics were not there. and earlier today, we heard nancy pelosi, speaker of the democrat chuck schumer, democrat from new york, blending republican for the rick --aming blaming republicans for the fiscal cliff we are now facing and saying the republicans have no plans.

instead of the payroll tax cut, democrats are looking for $1200 check being sent to every family making less than 12,000 -- making less than $75,000. want to extend jobless benefits from the federal government, 600 dollars per week. aid to schools to help them reopen. jobless loans. the big thing we have to be aware of is that there $600 per week checks expire friday. that is why people would like to have some deal to renew them in place by then. the other sticking point? republicans are looking at day $2 trillion plant -- looking at and trillion plan, democrats are looking at a $3 trillion plan. thiswhat do you make of increase in the week's jobless claims. how does that play into the

debate around the stimulus and what does that tell you about the health of the u.s. economy? that for it tells us now are the past couple of weeks, we have seen a plateau. let's look at a chart from the bloomberg, and if you look a back few months, in march when the lockdowns were getting started, nearly 7 million people were laid off, had to apply for an appointment benefits in a week. the number came down to 1.3 million. it was supposed to stay there in july, and it ticked up for the first time in three months to 1.4 million. on the other hand, continuing claims, people on unemployment benefits for four weeks or more fell a little further to 17 million, still awfully high. services, a lot of concern, the area hardest hit, service industry, service sector, restaurants, hospitality like inels, as things worsen certain states, that could get

worse. the former president of the new york fed was on bloomberg television earlier and he said you can see from the jobless claims is that the recovery is flattening out as the virus is surging. he says it is clear fiscal stimulus is in play now. monetary policy is not the focus. and he said there is a big fiscal cliff problem that congress has to address. we are right at the edge of a huge fiscal cliff with the expiration of the $600 a week on a plummet competition benefits at the end of this month. and if that is not replaced by something significant, soon, the economy is going to be weaker. -- a big week next week for the white house, republicans and democrats, as they potentially sit down to

start negotiating. a big week for the fed, not pectinany moves, b jay powell will face members of congress. i am sure he is going to be pushed by republicans to come down for their plan and pushed by democrats to come down for their plan but one point he will make -- one point they will make is that more fiscal stimulus is needed. tom: that discussion continues in washington and kathleen will beyond that, global and economic policy editor kathleen hays. coming up, the outlook on oil. brentut why a firm says is likely to head lower again in short term. that is ahead. this is bloomberg. ♪

♪ rishaad: the resurgent virus pandemic continues to crush oil demand. , the opec-plus alliances a little over a week away from unleashing more crude onto the market. our next guest says growing concerns on demand could push brent down. let's ring in sri paravaikkarasu energytor of asia oil at consultancy fge. she joins us from singapore.

wti has been stuck in a range early39 to $42 since june. how is the virus impacting? all the market dynamics? -- how is the virus impacting all the market dynamics? sri: it has been performing in a very tight range, $44 a barrel for a while. we need to look at certain things. close demand collapse by to 23 million barrels by april, but we have recovered tremendously over the last few months. demand has recovered by close. . to 10 million barrels -- close to 10 million barrels, but yes, we are still down by more than 10 million barrels. but what is really affecting the market is the opec plus cots and cuts from non-opec members, especially the u.s.. prices, we saw

strong cuts in non-opec members. u.s. production dropped by close to 3 million barrels a day. all these things helped tighten the market in the last few weeks. -- and the price is price is stuck in that range, concernseason being over the demand recovery process, a second wave in some countries in asia, and the big problem in the u.s. now, alarming levels of new cases happening in the u.s., and india. and clearly, this has stopped, i should say slowed down the recovery process and demand, and keeping us in that rate. cuts, yes,ut opec opec is planning to unleash more barrels in august. but this is slightly lower than

what the market expected. the real impact will be only about one million barrels a day. we don't think that is changing the equation in a big way. tom: where does this leave your outlook for prices? think there could be some downside for prices over the next few weeks. on how thedepends demand situation pans out. bearishet more sentiment, that could hold prices down by a couple of dollars a barrel. but we think, as we progress through the latter part of the gains in that will take prices up to $47 a barrel by year's end. you talked about supply

and demand, but dynamic, but on the demand side, other signs -- demand side, are there signs of weakness? u.s. data is turning lower or even stalling in some cases. tell us about it. demand stability process has slowed the past two weeks with the reemergence of , and the big increases in the u.s.. driving demand has especially taken a hit in the u.s., with a number of places going into lockdowns and things like that. demand clearly impacting . even though cases are under control in a large part of the world, people are still shying away from air travel.

when you put those things need to process more crude has come down the last few weeks. that has flattened out a bit, and that is why we think there could be a downside risk for crude prices over the next few weeks. where will oil prices be in two months? it: the next few weeks, could go down by a couple of dollars from current levels, into the low 40's. thirdmove into the late quarter, it could break past the $45 range and go up. you, srithank paravaikkarasu, joining us from the energy consultancy fge. coming up, eight everything.

it is a trend that is helping to sell ice cream online. we talk with the ceo next. this is bloomberg. ♪ roland the lever ♪

rishaad: unilever says the virus is shifting consumer patterns

and to sting its biggest brands. , the ceo, spoke to bloomberg about whether we have seen the worst of the pandemic. alan: what we have seen in the last quarter is the true strength of unilever. the breath of our portfolio gives us resilience. we have shown agility on how to respond to existential circumstances. and meanwhile, we have been working on the strategic future of the company. we are long past the stockpiling phase in north america and we , handeing big shifts hygiene, surface hygiene, and i think a lot of our growth in north america has been driven by our foods business, as people eat meals at home and on the go. that is likely to continue for some time. our business supplies, restaurant is this is our down,

struggling in current circumstances. >> you were surprised at how well ice cream like ben & jerry's did in north america, given the fact a lot of tourist concessions had to be shut down. do you think ice cream and other businesses you supplied to restaurants are going to recover in the second half as more cities begin to open? number ofe is a consumer behavior changes we are seeing through this pandemic. people are at home as a safe space, people worrying, and one of the things we are observing is e-everything. online, paying online, browsing online, consuming media online. and can you believe it? pivot to managed to take advantage of the growth in home deliveries. one of the growth things we have

seen with ice cream is people enjoying ice cream at the end of result of a home delivery service. as we sit in western europe, and our bubbles in north america, we must not lose sight of the fact this disease is still ravaging the globe. it is gaining steam and south america, getting a grip on africa, devastating parts of asia, so we need to be conscience -- we need to be conscious people are suffering around the world. >> good point, and a lot of humility you need to bring when you discuss the impact. when you look at those changes in behavior, is there anything you can harvest -- anything you can harness to create more brands, maybe for stay-at-home meals? other brand you can potentially potentiallyn acquire?

how did this change your portfolio? brands, traditional brands are doing very well indeed in the current circumstances. this is a time when people are feeling insecure, and the trust they pay have -- trust that they having become a well-known brands is of even greater importance. we will continue with our opportunities to acquire, and have completed the largest acquisition for unilever in quite some time, mostly brands continueia. so we will to engage in the acquisition process, but at the moment, the ofl news is the strength well-trusted, big, familiar brands. >> you talked about your key business in the latest report. part of thening off empire. thinkther m and a do you

has potential this year? andthe industry do more m a in this crisis environment? aan: our position on m and hasn't changed over the last six month. we are looking for price and timing and opportunities and we are in a strong position with our very healthy balance sheet to take advantage of that. one thing we have been working on in the last quarter is that we announced our intention to unify the company, simplify the legal structure of unilever. and further down the road, that could give us opportunities to look at acquisition, but there is nothing of that nature on the radar. rishaad: -- unilever ceo alan

jope speaking with bloomberg. headlines, ah walmart subsidiary business is purchased in india as it looks to consolidate competition from reliant businesses. walmart india operates 28 cash and carry stores in india, which will now come under flipkart wholesale as of august. top glove is benefiting from the coronavirus, becoming biggest stock, soaring 450% to give the company market value of more than $60 billion. ♪ chinad: checking in with markets, and looking at what is going on in shanghai and

elsewhere. this is a down story at the moment. we have tensions between beijing and washington, the rhetoric , withg more vociferous secretary of state mike pompeo casting chinese leaders as tyrants bent on global hegemony. renewedchanged amid tensions between japan and south korea, weighing on the market overall, which is down. the taiwan market is up record highs, up to tensor 1%. looking elsewhere, the kospi just came on about 55 minutes ago, off .5%, and the middle and up -- and the manila market the worst performer in asia. thai stocksopen for at the top of the hour.

we will been you that and more. all the market action, plus any response from beijing to the speech by mike pompeo. stay with us. this is bloomberg. ♪

♪ >> happy friday. almost 11:00 a.m. in singapore. welcome to "bloomberg markets: asia." rishaad: care are the top stories. geopolitical tensions rise further. mike pompeo raising the pressure by describing china's leaders as totalitarian tyrants bent on global domination. haslinda: asian markets are down at the end of the week, except

for taiwan. taiex higher than its all-time closing price. rishaad: rising jobless claims rekindle fears about the recovery. there is growing evidence the u.s. economy is in trouble. haslinda: let's do a check on the markets. japan is on a long weekend. asian stocks mostly lower. australia, hong kong, singapore leading losers. worries about the economy coming back. jobless claims unexpectedly rose for the first time last week since march. the msci asia-pacific index down. futures pointing to a modest open. were downenchmarks thursday. --e pompeo costing china calling china's leaders tyrants

bent on global domination. briefly at all-time highs. by the way, the taiex is up 14% in the past 52 weeks, up 46% above its march lows. 0.2benchmark in manila down %. abn cps slumped more than 30%. the p comp the worst stock market in asia this year, down 23% for the year. flip the page. take a look at where we are in terms of the fx world. dollar weakness getting momentum. the usd now near march lows. wells fargo says it may weaken

further after the fomc meeting next week. the euro continues to inch strength.owing some suggest this may only be the first stage of a big market move. lower, 1888.a tad rishaad: you look at the prospects of trading day -- of the indian trading day. nifty futures in singapore showing a decline of about 2/3 of 1%. we have several nifty 50 companies in focus. several companies out with first-quarter earnings later friday. % toland, look at that, 0.8$ the downside. exports down 15%. that is the position that these markets are in, really reflecting a down arrow story

across the asia-pacific. haslinda: let's delve deeper into the market stocks of asia that are falling. the u.s. recovery is stalling. after three major u.s. benchmarks, the tech heavy nasdaq composite was the biggest decliner. our next guest thinks the long-term story for tech remains compelling. joining us is lorraine tan of morningstar. how compelling is it? how much longer can this tech story go? lorraine: the valuations have arely, for some companies, priced to perfection. these are going to be sensitive to pullbacks. are inr of the big names areas that we think are relatively overvalued right now.

however, we think the long-term story is still compelling. has spurred as -- companies to invest in productivity solutions. we are expecting this to really drive trends toward cloud computing, remote working, and similar sort of technology solutions that will be required for that. shares inf buying this area, we would probably be a lot more selective right now. haslinda: more selective and looking at your choices, you are these stocks tied to the consumer story. we have not seen a strong consumer recovery. why are these outstanding plays for you? see ske: we actually hynix as a laggard. it actually did very well

earlier this year and then pulled back about 20% in its share price. there was some concern over, you know, memory demand. at this point in time, we think those concerns are reflected. we still see strength in other aspects of its business. in that respect, we do like sk hynix as that laggard. gen, you are right, is more sensitive to the mobilephone story. if you look at the trend towards the camera lens, we still think they are a beneficiary of this. this is one of the key differentiators for what will be an increasingly competitive cell phone market. haslinda: what are the risks out there? i mean, to what extent have the markets factored in geopolitics,

the election cycle coming up in november? i think at this stage, because most of it is just rhetoric at this point that is flying around, nobody has actually said that they are going to up the tariffs again. because of this, we think the market has not really taking the risk as seriously as they could. us, but i think at this stage because there is less of a discount in the marketplace , for example, we are only looking at about asian markets 8%-10%t an average discount to fair values. i think at this stage, the risks become heavier. once again, it just means that there is reason to be a little bit more cautious and take a longer term view as well. having said all of this, we still think that really as the

pandemic story takes precedence. the longer it takes globally for things to normalize, the burden is on the things to return to normal. we still see this is the number one risk to us. rishaad: what about some of the names out there? where are the pockets of value, if there are any, and technology in particular? lorraine: our u.s. team is recommending companies involved in cybersecurity. palo alto networks is one of the companies we like at the moment. certainly, a focus on that segment, which lately has not moved up as some of the others in the tech space. i mentioned sk hynix earlier. that is what we are looking at. on the internet space, things

have moved up so strongly in asia. tencent was one of our stock picks early in the year and it has done tremendously well. with take those consumer internet plays will remain obviously in focus. at this point, especially when -- in hong kong, it maintains the momentum for this segment. at this stage, we would probably be more cautious. rishaad: looking at investors at the moment, is there a sense thatyou have got a feeling people are getting prepared for another down leg and all of this -- in all of this? lorraine: i'm not sure. yes, i think the risk of a down leg is possible. the risks of a further shutdown, we are seeing that come about -- come around again.

for things to normalize, it is taking longer. this is going to put risks in some of these as well. puts -- makes it much more difficult for the governments to unwind as well. at this point in time, our base case is still that we expect treatments and vaccines to come about over the course of the next year. that will help things normalize. longer time being, the it is shut down, we think that will weigh on earnings. we think the market has factored in somewhat of a bounce in the second half of the year, which may not occur as strongly as we expect in terms of earnings. that is one of the things we need to watch out for. if i were to buy anything now, or think that we are looking -- things that we have buy calls on

are much more deeply undervalued. we are looking at companies that can sustain cash flows and dividends. rishaad: lorraine tan there from morningstar. let me give you an update on what is happening in australia. this pandemic shows no signs of abating. let's get that story and more. deaths are rising in victoria after a surge in case sent melbourne in a lockdown. six fatalities all connected to care homes, along with 300 new infections. the rate is down from thursday and wednesday's record. the total number of deaths in victoria has now reached 55. coronavirus infections continue to rise in asia, with hong kong reported 100 plus infections for a second day.

social distancing rules are being tightened. the government insists a new lockdown is not eminent. tokyo set another infection record with more than 360 new cases as the country enters a long weekend. -- research say cases are increasing among 40-50 euros ---year-olds. secretary of state mike pompeo said this week that the house to beijing. that,h.o. projects insisting its only role is to improve global health. >> our sole focus and the focus of the entire organization is on changing -- saving lives. if there is one thing that which matters to us, and should matter to the entire international community, it is saving lives.

w.h.o. will not be distracted by these comments. >> 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. i am karina mitchell. this is bloomberg. haslinda? could thestill ahead, softbank backed fintech business be india's first mega startup to reach ipo? we will hear from cofounder and ceo yashish dahiya later this hour. rishaad: next, more tensions with china as mike pompeo calls for triumph over tyranny. ♪

♪ of state miketary pompeo has issued america's

starkest warning get on china -- yet on china. pompeo's address is the culmination of a series of speeches from the trump administration warning of the threat that china poses to the rest of the world. >> president reagan said he dealt with the soviet union on the basis of trust and verify. when it comes to the ccp, i say we must distrust and verify. lovingthe freedom nations of the world, must induce china to change. rishaad: let's start with the highlights from pompeo's speech, or beijing would probably look at it as the low lights. >> yes, well, china's initial response, i've got to tell you,

a spokeswoman said what he is doing is futile, like an ant trying to shake a tree. what mike pompeo was trying to broadly laysically out the case for other countries who see the world as the united states does to get along with america and get on board with china to do on things a different way. we've talked about this a lot. the u.s. has said many times that they believe china is engaged in systemic and often times stay endorsed fraud -- estate endorsed fraud, in terms of -- state endorsed fraud, in terms of intellectual property, corporate secrets and things like that. candidly, the united states would say that they do not feel like the rest of the international community that

espouses similar views of world commerce, they don't believe that they have stepped up in an appropriate way against china. so pompeo is attempting here to lay out a case for that. whether he will be successful or not, we will have to see. haslinda: the concern really is that the more aggressive the u.s. is, the more aggressive china could be as well, but we have not seen that. know, we areyou going to see some amount of retaliation come out from the chinese side in terms of this consulate closing in houston. the u.s. said that china would have to vacate the houston consulate by the end the -- of the week. china has promised to respond. there is a wide amount of options. we are going to see an escalation, as i say, in the near to immediate future.

whether that would trigger additional escalations, whether the u.s. side, which we have reported, has a lot of china awks and the state department, whether the u.s. side continues to push forward remains to be seen. there are a lot of escalation opportunities ahead of us. i have got to reiterate, this is an election year in the united states. not only donald trump, but also democrat joe biden are trying to portray a hard on china tone. every single political condition in the united states is toward a tough on china policy. wallbank inrek singapore. just ahead, we will look at whether racial equity should be mandate.he fed's the minneapolis fed president

thinks it is a good thing. our interview is next. this is bloomberg. ♪

♪ let's do a quick check of the latest headlines. motor istesla rival wm said to be weighing an ipo in shanghai as chinese ev makers battle for domestic sales. the company is working on a listing as soon this year, aiming for an offering that would value wm at about $4.3 billion. 2015 andunded in investors include baidu and

tencent. hyundai's second-quarter earnings beat estimates, even as the coronavirus pummels the wider car industry. operating profit fell to just short of half a billion dollars but that was twice as good as the average estimate. sales declined 19% but also beat forecasts. rishaad: one of the world's biggest diagnostics manufacturers is urging customers to be judicious as the demand for coronavirus tests outstrips supply. the ceo warning that the supply shortage may continue for months, despite the pharma giant regrouping its capacity to turn out such tests. >> demand is anonymous. --refore kadesh enormous enormous.

therefore, it is important that tests are for patients with symptoms. it is very important that we do everything, every one of us, to help reduce infection rates by keeping social distance, washing our hands, wearing masks. be very, verywill difficult to keep up with demand. >> do you think we would get a handle on covid-19 in this way? i have heard this school of thought that you have to test the public at large. what is really worrying people is the asymptomatic. do you think it would be enough to just test people with symptoms? as you said, we need to have a careful use of these tests because they are pretty scarce still. >> that is exactly the case. as long as we have this scarcity of supply and as long as the industry is not yet able to meet demand, i do believe we have to

be very thoughtful about allocating the tests in the right way. it is important that we allocate the tests to those patients who ow signs and symptoms of the disease. >> can we sufficiently test our capacity? the capacity to test in the next three to four months when there is also winter and fall coming in the north hemisphere, where we could see a second wave? has increased production capacity over the last 4 months. i am extremely proud of our organization, all of the people working day and night, 24/7, over holidays to get out as many tests as possible. the industry as a whole has been

ramping up production. it will still take time until we can meet demand. for the time being, i would strongly advise to allocate molecular tests to those patients who are most in need and those at risk patients, patients with signs and symptoms. roche expecting a big second wave of the virus in europe, asia, and elsewhere in the coming months? >> that is difficult to predict. it will depend on all of us, whether we keep distance, washing our hands, wearing masks where this is appropriate. that is really the only way to keep this virus under control until we see vaccines or an antiviral medicine. >> what should policymakers be doing right now to be prepared for that? is it making sure the population

stays as they have been? is it getting the message across or something more concrete to do with medicine? >> it is a lot about reiterating the message so that we stay all vigilant. it is also important to carefully track the disease, to see how it is evolving. where are the hotspots? and then quickly react and intervene accordingly. part of that is also testing. takeof that is that we very specific measures wherever up.ee infection rates going that is absolutely key before we have medicines or vaccines available. rishaad: the chief executive of roche speaking to francine lacqua. just getting to the lunch break in shanghai. we see markets under pressure with more, at the moment,

tensions between washington and beijing. ♪

♪ is almost 11:30 a.m. in singapore. we are in the middle of the trading day. the sti down about 1.3%. it is down almost 20% year to date. credit suisse faces a new suit in singapore. bank'sm suing one of the trusts in singapore. that opens a fresh fund in the long running dispute.

it ruled the city had a jurisdiction over the case. -- the msci asia pac index down. let's get the first word headlines for you. the coronavirus pandemic is likely to see india missing estimates, as government finances come under pressure. secretaryic affairs a says spending targets may not be achievable and the current fiscal year may be "lost." the deficit is expected to widen to 7% of gdp, twice the government's original call. up latest brexit talks broke , with both sides saying a deal remains out of reach. the eu says big differences remain and agreement is unlikely. warns an accord may not be reached by the end of the

year. is no agreement, businesses will be hit by tariffs and quotas. said to be aiming for new capital at a valuation of $44 billion. we are told it is talking about an injection of $1 billion at a price of $270 billion per share, or rather, $270 per share. the round is not likely to close soon and terms could change. spacex's most recent funding effort was for $500 million. morgan stanley says it could ultimately be worth $175 billion. most has launched its ambitious space program yet, aiming to join the u.s. in landing a spacecraft on mars. the rocket blasted off in the week's second mission to the red

planet after a uae booster took off from japan. it will take seven months to lookingrs with a rover for evidence of water and the possibility of ancient life. government is's pushing health insurance brands to the less privilege. -- privileged. hopes to tapt host a large population of the underinsured or noninsured. yashish dahiya joins us now from .ondon thank you for joining us. how big is the insurance imperative in india? about 1.2t is

billion people and about 600 of these are covered by one or the other government scheme. that leaves a gap about half a million people, of which less than 100 million have any form of insurance. is, of course, number one, it is less. those that have insurance are also highly underinsured. the ended -- the average individual coverage is about $3000. they have care expenses in any private hospital -- the care expenses in any large, private hospital can be a lot more than that. it leaves a lot of financial distress in the case of a health situation for the bulk of middle-class indians. rishaad: would have you been seeing in terms of the insurance space? let's talk about health insurance, as one thing. with the coronavirus where it

is, have you seen a big increase in criticalr policy health insurance? anhish: there has been upsurge in protection against death, disease, or disability. the upsurge is not a crazy upsurge. it is more like the industry is up probably about 30% over the last year. which, given the level of penetration in india, could be a lot higher. rishaad: absolutely. you can see how much space there is to work. tell me, how many people do you have on board? you act as sort of a middleman, don't you, effectively? how many companies are with you know? yashish: we have about 46 companies working with us. there are 53 in india. haslinda: we know you are looking at an ipo by 2021.

is that on track? you're also looking at a possible bull listing? where might that be? singapore perhaps? allows us tolaw list in mumbai only. if it changes, we can look at a dual listing. so far, we are considering nasdaq. as of now, it is just a single listing in mumbai. yes, we seem to be untracked. we hope to do -- on track. we hope to do that between september and december of next year. haslinda: one of your biggest backers is softbank. zaar now under greater scrutiny? yashish: a couple of things.

policy whenested in it was at a valuation of under $1 billion. after that round, we have had one round at $1.5 billion, which was a secondary come a pretty significant secondary. we had another secondary, $1.6 million. -- billion. none of these are from softbank. saying isying -- i am that we are the rare example of a company that has received higher and higher valuations from other investors, not just softbank. i don't know about the other investments of softbank, but this one is doing quite well. on, you didrlier say that the investments from softbank was a mistake. yet, you did accept more

investments from the company. no, i think that was incorrectly reported. we did not ever say that the investments from softbank were a mistake. some of the decisions made were incorrect. that does not have to do with a single investor. shareholder does not lead the strategy for a company. the board of the company does that. at that point, softbank was the fourth or fifth largest investor. and -- almost as large shareholders as softbank. rishaad: thank you so much for your time and thank you so much for getting up so early to talk to us. yashish dahiya of policybazaar.

the latest trade numbers from thailand coming through and they are worse than expected. exports falling 23%. going to have a look also at the import side of things. there we have it. 23% down exports year on year. customs imports, 18.1% down. that is also worse than anticipated. we were looking for a number of 17% lower. the contraction for experts worse than were o had in may. the trade numbers coming out of thailand, haslinda. the -- under pressure right now. twitter saw record u.s. growth but it was not enough to lower -- we will have the details next.

stay with us. this is bloomberg. ♪

♪ back.d: we are a hearing within the ceos of the facebook, alphabet, and amazon has been postponed but questions remain about their monopolistic power. breaking them up into smaller argumentt there is

that would -- we asked steve wozniak what he thinks. >> i've never voted for a president in my life. i decided not to be political, to be an average person. i am not an extremist in any way. i'm against it. so i don't know all these ideas. different people come to different opinions and they are all right. >> i am curious about your thoughts on the rise of the chinese tech industry. builtsly, as someone who one of if not the most successful technology company in the world, have you been paying attention to what they have been building in china? do you think that these companies could edge out u.s. technology companies? >> i look right down to the bottom level engineering and they have the skills. they are good like us. we should consider ourselves one

family, in my opinion. know, wether and, you will do the parts we do best, you do the parts you do best and we all win. haslinda: apple cofounder steve wozniak. warren buffett's venture hathaway has purchased about $813 million of bank of america stock, piling more funds into the lender despite its 31% slump this year. b boosted erkshire's stake. flipkart has purchased a's subsidiary business in india -- has purchased walmart's subsidiary business in india. the stores will now come under flipkart wholesale, which launches in august.

amazon has also been expanding in india. rubber glove maker topic love is benefiting from the coronavirus isktop glove -- top glove benefiting from the coronavirus. company has a market value of more than $16 billion. top glove is now second only to biggest maker. beating,intel taking a falling as much as 10% in the extended session. they came out with another delay in the chipmaking process. twitter, also some disappointing news, despite a surge in users. it saw ad revenue plunged. intel actually beat on the numbers.

this whole process of making semi conductors has got some investors quite nervous, hasn't it? >> well, it is a very competitive industry. increasingly, rivals and companies -- customers are relying on taiwan companies to make chips. the fact that intel has another chip problem sends the stock plummeting. intel's pain turned out to be its rival's gain. their main competitor gained 5 billion in market cap. taiwan semi also gained in after hours after the news. intel's key issue has to do with the method of cranking out these stronger, more powerful chips. they have a delay that will push everything back about six months. next-generation, very crucial chips for intel will not

hit the market until a full year later than originally intended. intel beat on both profit and revenue. 2 revenue jumped 20%. for now, production was are damaging intel -- woes are damaging intel's reputation. they may outsource more production near term to get through this rough patch. haslinda: meantime, twitter saw a significant user growth, but the problem with ad revenue, that got hammered. >> yes. similarly, they have good news and bad news. they reported the second straight quarter of record user growth. a lot of this has to do with the pandemic and shutdown orders. but the pandemic and civil --est, which happened

between the pandemic and civil unrest, which happened in the u.s., it caused companies to not advertise. revenue took a huge hit. twitter reported 186 million daily active users. that is a 34% jump over the year ago quarter. revenue, though, down 19% due to those ad boycotts. the ceo said twitter is looking at additional ways to bring in business, perhaps a subscription service. this would supplement advertising, which makes up 82% of twitter's total revenue. back to you. rishaad: let's get to the indian market open. up and running now for just under a minute now in mumbai. we see a bit of pressure creeping through it equities -- with equities, like in the rest of the region. a situation where we have got india now surpassing spain's

death toll. we have several companies we have been watching out for on the nifty itself, particularly looking at some of those companies which are coming out with earnings, as we are in the middle of the earnings season. againda, it is a low open , but it is to be expected given what is happening in this part of the world. haslinda: a low open. there is a man on a high here. has jumped nine places in the bloomberg billionaires index. shares of his conglomerate have low. 139% from its march rishaad: steve ballmer becomes the fifth wealthiest person on the planet. the jump in rankings thanks to fortune, which has surged by almost $19 billion by the end of year.

to have a look at that list, simply type rich go on the terminal. haslinda: more billionaires after the break and how one country is making a habit of mending a new -- with individuals every week. this is bloomberg. ♪

♪ rishaad: this is "bloomberg

markets: asia." when the trump administration abruptly halted a ring of employment visas last month, tech companies urged officials to reconsider. the u.s. chamber of commerce, the national association of manufacturers and the national retail federation is suing to throw out those restrictions. tom donohue of the u.s. chambers spoke with us earlier. >> the reason for this lawsuit is we have got to overturn this sweeping and unlawful immigration restriction that basically put up a big sign that say to people around the world, you are not welcome here. executives, i.t. experts, doctors, nurses, you think about the talent we need to drive this economy and you know we have to challenge this action by the administration. we had to do the same thing with

children, who are now grown-up and wonderful workers. anhad to do the same thing, important thing when they tried to shutdown people coming to our colleges, which would have put the colleges, lots of them, at risk. this one is critical. the president has the right to make adjustments in immigration issues but he does not have the right to eliminate the actions of the congress in welcoming these people to the u.s. when we need them. rishaad: tom, there have been various situations -- >> tom, there have been various situations in which you have agreed with president trump. what has gone wrong here? the president has said he wants growth, jobs. a lot of these people coming and working here help u.s. growth. why is it that he wants to keep them out now?

is it because of covid-19? no. take two things you need for economic growth, skilled people and investment money. we've got plenty of investment cash in the private sector. we need skilled people. , wet before the pandemic were at the lowest unemployment in america in 65 years. we still need all those people, the skilled people. the second thing is, the chamber, when we were founded more than 100 years ago, we were founded for two things. one, to represent the american business community and two, to help our government. my times, and for all here this time, 23 years, we've looked for ways to help our government. we have helped this a government on taxes, as you indicated, on challenges around the world, on inting an agreement done and

solving quiet things that need a lot of attention. i serve on the president's advisory group on employment with his daughter. we don't have anger with the administration, any of them. you are doingen something that we can support, we are going to support it as hard as we can. and when you are doing something that we cannot support, we are going to take you on. we never make it personal. we never talk about the president. we talk about the administration. often, them quite because it is one way to get clarity, not only for the business community, but for the government. that what wey say have done for many years we will continue to do. and that is support any government activity that helps

our country, creates jobs, and strengthens our economy. and we will challenge those issues that seem to go the other way. donohue, that was tom ceo of the u.s. chamber of commerce. market euphoria is creating a new billionaire every week. at least 24 people have become billionaires so far this year from the country's red-hot market for ipo's. mind-boggling when you think about it. amid all the pandemic, you this would be destroyed, but the opposite has happened. they are creating billionaires in the process. wow. the insatiable appetite for stocks is just amazing. rishaad: despite these

valuations, where they are at the moment, signs that the stock market is overheating, we can expect many more of them. china has made it easier for ipo's to happen. it has been trying to open up its capital market. it has made it easy to trade stocks. on shanghai star board, we have companies taking an average of days to goike 288 public. you can expect the wealth of billionaires in china to continue growing. the key drivers of billionaire growth are these disruptive business models. it is the world's biggest domestic market as well, which is, of course helping things along as well. let's have a look at what is going on with regards to these. we had the open in mumbai a short while ago. we had a taiwan market showing signs that a could be the record that it set in -- beat the

record that it set in 1990. it will not be beating that record on the close. there we go. we have just got this breaking news coming through. china has asked the united states to close its consulate in the city of -- its consulate in a city. this is a story that made the rounds yesterday. confirmation coming through here on the bloomberg newswire. that's what we have. tit-for-tat between washington and beijing. at thet, also helping moment to helping burst depressed equity markets in this part of the world. bit of saber rattling between seoul and tokyo as well. the current authorities wanting further apologies for japan's conduct at the end of the second world war. "daybreak: middle

east" is next. keep it here with us. this is bloomberg. ♪

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