We have got to vote like we did in 2008 and 2012. Weve got to show up with the same level of passion and hope for joe biden. Weve got to vote early, in person if we can, weve got to request our mailin ballots backht, and send them immediately, and followup to make sure they are received. And then make sure our friends and family do the same. Weve got to grab our comfortable shoes, put on our masks, pack a brownbag dinner becausee breakfast,too, we got to be willing to stand in line all night if we have to. Look, weve already sacrificed so much this year. So many of you are going that extra mile. Even when you are exhausted, you are mustering up unimaginable courage to put on those scrubs and give our loved ones a fighting chance. Even when you are anxious, you are delivering those packages, stocking shelves them and doing all of that essential work so all of us can keep moving forward. Even one it all feels so overwhelming, working parents are somehow piecing it all together without childcare. Teachers are getting creative so our kids can still learn and grow. Our young people are desperately fighting to pursue their dreams. And when the horrors of systemic racism shook our country and consciences, millions of americans of every age, every background, rose up to march for each other, crying out for justice and progress. This is who we still are. Resilient, decent people whose fortunes are bound up with one another. And it is well past time for our leaders to once again reflect our truth. Add ours up to us to voices and our votes to the echoingf history, heroes like john lewis, who said, when you see something that is not right, you must say something, you must do something. That is the truest form of empathy not just feeling, but doing. Not just for ourselves or our kids, but for everyone, for all of our kids. And if we want to keep the possibility of progress alive in our time, if we want to be able to look our children in the eye after the selection, we have got to reassert our place in american history, and weve got to do everything we can to elect my friend, joe biden, as the next president of the United States. Thank you all, god bless. David we have been listening to the former first lady of the United States, michelle obama, give remarks to the Democratic Convention. We want to get some closing thoughts from our contributors. Rick, i think weve been listening to perhaps the most popular democrat in the country, bar none, give a very impassioned speech. One thing that struck me, she said specifically i understand my message wont be hurt by some people. Who will be hearing this message . Who is she addressing the message to . Is it to democrats, independents, or does she think some republicans might come around her way of thinking . Rick i think she spoke very clearly to the Minority Community within the country. She sent a lot of messages to them about the need to turn out, about not supporting french candidates. Fringe candidates. She had some interesting lines were she talked about the kind of Foreign Policy that was promoted by reagan and eisenhower, obviously looking young the paulison the partisan divide. But tonight she was the lawyer and she made the case against donald trump in a way i have not seen very much of, without even using his name through most of the speech. ,ne point after another disavowing the administration, and then talking about why it would be different under abide in presidency. A real i think we saw emergence of i would not say an used, dog, but very well popular politician to undermine the current initiation. David as powerful as that was, did she tell us anything we did not already know . Both people who support donald trump and oppose donald trump. Was there anything we did not know . Jeanne one thing that came through clearly is how personal this is for the obamas and the former first lady. Verynk they took personally, obviously, the loss in 2016, and i think tonight she was out there to say, you need to get out to vote because we lost certain precincts by just two votes. I think shes trying to make the case to democrats, independents and people who will listen that we could do better as democrats if we get out to vote. He may not be a perfect candidate, but the danger, the threat of donald trump so real that we have to do this right. To me it was the personal nature of this that came through. David later on we will talk about what it means to vote this year and how we are able to do that. Y thank you to both of you any thanks to both of you. Each night this week we will be here covering the Democratic Convention on Bloomberg Television and radio. Tomorrow, speeches by new york on this woman alexandria because your coke is alexander ocasiocortez, and former president bill clinton. This is been special coverage on Bloomberg Television and radio. Welcome to Bloomberg Markets asia. Here are the top stories. In launch a Virtual Convention attacking President Trump on the coronavirus, Racial Justice and the shattered u. S. Economy. Haslinda u. S. China relations fell even further, huawei hit with more curbs on american tech, and tencent hires its First Washington lobbyist in a bid to head off awechat band. Ban. Future with less emphasis on coal. The group ceo joins us this hour. Lets check on the markets right now. We have asian markets drifting up, modest gains we saw yesterday when it comes yesterday, and when it comes to volume, he remains elevated. Index up. Sia china stocks approaching the highest level in two years, pulling away from the 30 day moving average, suggesting gains can continue. The pboc putting in more funds to ease liquidity stress. Boosting with almost 6 billion u. S. Dollars. Tracking the benchmark in taiwan, currently under pressure, 9 10 of 1 . We have mediatech leading the climb after the u. S. Added 38 huawei affiliates to a blacklist. Mediatech saying there will be no meal material impact, currently down about 10 . We have the dollar index easing somewhat, down about 1 10 of 1 . The dollar facing pressure from the deadlock in negotiations. The aussie strengthening versus the kiwi for a second day, the prospect of negative rates from the rbnz sending the kiwi down, up. Gold futures sixt have crude down enths of 1 . This will zero in on the opec meeting tomorrow. For the first word headlines, the u. S. Adding additional restrictions on huawei aimed at cutting access to commercially available chips. It is the latest move in an increasingly tense relationship between washington and beijing. Correspondent has the story and joins us now. Lets get to Stephen Engle if we can. What are the new curbs . Stephen as is in addition to the export controls washington slapped on those who do is this with huawei in may. A large asian foundry in taiwan announced in may they would stop making chips designed by huawe s affiliate as of september 15, which is the deadline imposed by washington for those restrictions on huawei. These new curbs announced by the Commerce Department are in addition to that, and according to wilbur ross, secretary of the Commerce Department, closes a loophole that some of the affiliates of huawei and that huawei was trying to explore to get around that and possibly purchase overthecounter or offtheshelf silicone and chips for the Telecommunications Equipment that are not necessarily made by those complying with u. S. Orders. This latest move is very critical for these companies you are seeing here in taiwan, like mediatech. Mediatech benefited greatly after may because it basically does offtheshelf chips that huawei was able to buy the the u. S. New order basically says companies and assemblers that do business with huawei or its affiliates like hi silicon must have a license from the United States. Why is that . Andst all of the Silicon Semiconductor industry uses u. S. Equipment, whether it is manufacturing a claimant that thes the chips, or foundries like mediatech that use u. S. Software, Critical Software like from synopsis. The u. S. Says we are closing that loophole and basically closing the vise tighter on huawei and its supply of chips. They are already saying huaweis stockpiles of self designed earlywill run out by 2021. There will be a supply crunch for huawei coming up. Yvonne you are feeling that crunch in some of the huawei suppliers also today, mediatech down in taiwan. Tell us more about the tencent story as well be seems like they are making moves in d. C. To protect their interests. Stephen with these new executive orders and sanctions and moves by the trump administration, it behooves just about any manufacturer or company in the tech supply chain to do what they are doing. Hired ah in july lobbyist for washington, patrick wilson. Now we are hearing that tencent, in a different battle because the trump administration, trump himself had the order to ban wechat in the United States after august 6. They have recruited roberto gonzalez, a former Treasury Department council. He will serve as tencents first lobbyist in washington, d. C. , maybe trying to get into the halls of power and influence decisionmakers ahead of that ban in september. Yvonne Stephen Engle, our chief north asia correspondent there. Coming up, we will talk more about geopolitical tensions, and also we will talk to the head of the worlds biggest miner, just hours after the latest Earnings Report missed estimates we will go it estimates. We will go over that with mike henry. Haslinda next, the Market Outlook from blackrock. Keep it here with us this is bloomberg. Haslinda welcome back. Asian stocks setting their sights on a return to where they were before the u. S. China trade war began in 2018 pewter in 2018. That is being told by the emerging market etf, set on higher. That valuedence stocks are leading markets higher. Lets turn to our guest from blackrock. Good to have you with us. Becausely has legs liquidity and stimulus are almost guaranteed. Theeah, thats exactly point. This is very much a liquidity driven full market. Central banks all over the globe, the fed keeping interest rates, real rates basically near zero. Retail investors have little choice but to invest at this point because they are not getting any interest or yield or coupon by keeping their money in the bank or going into fixed income government bonds at this point. Haslinda what is the outside for risky assets in such an environment given low yields . People are looking at going into riskier assets to get better returns. , and thats what we are seeing with the rotation to emerging markets. You pulled up the chart earlier on e. M. Asia. I continue to like the growth story there. If you look at the growth projections into 2021, asia should grow 7. 5 in terms of j. D. Gdp terms. China,chmark is 75 for korea and taiwan. It is quite an exposure to tech. Alibaba, samsung, tencent. It is similar to the u. S. And Global Investors are reaching for growth and that is mostly been technology and quality factors. You said, china pretty much leading gains among e. M. , but not so much for e. M. Markets in southeast asia, they are lagging behind peers in asia. What could turn that around . About if youre asking north asia, its a different story. If you take out telecoms, you have less than 1 exposure to technology. Old, value driven type economies. The rotation we have been seeing over the last week or two into value, the question is what kind of legs does that have at this point . If you look the disparity in valuations between growth and russell 2000, for example, theres a huge divergence. I think what we are advising clients at the moment, you need to have some exposure into the technology, health care type names, they have stronger Balance Sheets and reported better earnings than the value play. But they are a little bit expensive and there are risks moving into u. S. Elections specifically, and you probably need to look at having some value in your portfolio as well, as well as taking risk in places like emerging markets and specifically asia. End, to yourthat view on technology, we see hang seng will be adding alibaba and others next week in a rebound. How do you see the rebalancing playing out . Thomas yeah, so i mean the market clearly took it as if you look at the performance of shall make show me yesterday. I think this will continue, particular if you look at some of the rules on inclusion from the u. S. And how those docs will make their way back to hong kong with Strong Revenue exposures from china. I see it as a positive. Hong kong, hang seng has been very much old economy. Thats been one of the headwinds for investors moving into places like hang seng and the traditional economies. I think is that continues to change, it will be positive for investors and i inspected to see more influence from overseas, hang seng tech, emerging markets, and we just lost launched a fund for that reason. An investors are underway to this point. Haslinda its interesting to note from your notes, you say inflation is a risk thats not being priced and fully yet, but at this point in time, there is no risk of inflation spiking, dont you think . Thomas that depends on what you look at. Inflation historically in market cycles tends to spike when investors are not expecting it. There are couple of potential reasons you might see inflation come back. We will get so fomc some fomc minutes tomorrow where they are likely to talk about inflation averaged targeting, which is relatively new. If you look at the manufacturing side globally, weve seen betterthanexpected macro data somee will also see monetary fiscal stimulus. That has moved into asset prices. The third point is around oil. Oil has had a huge comeback. Not expecting to see a massive spike in the price of oil, but certainly moving back toward that 60 mark as a base in the next year or so. That will have an impact on inflation as well. I amnda quickly, wondering, do you view the november elections as a potential risk . Do you see volatility leading up to november . Thomas certainly, for sure. Its something weve been talking about for about ask months now, and i think now that we are a couple of months away, three months away, you are going to see investors focus more on that. Same, it comes back to the conversation around tech and nasdaq type stocks, where weve been seeing joe biden talking about raising corporate taxes in the u. S. In general, but specifically closing loopholes for technology stocks, which have avoided paying tax in the u. S. That could have a big impact in herms of outflows from tec because its such a concentrated area of the market at this point. Yes, i do think it has some serious ramifications in terms of investor positioning in the future. You for thomas, thank your insights today youd today. Lets look at the north asia markets. Currently flat at 48. 15. Were keeping a watch on taiwan in particular, mediatech leading declines. Shanghai currently up three tents of 1 . Higher. A also coming up, we are joined by bhp ceo mike henry. This is bloomberg. Looking for direction, thats what asian markets are failedight now after to top the record levels, but ona setting its heights levels before the trade war setting its sights on levels before the trade war started. The asiapacific index up to 10th of 1 . U. S. Futures pointing to a flat open. The s p up more than 50 from march lows. Goldman boosting its s p target by 20 as strategists play catch up, joining the likes of j. P. Morgan in being bullish. Weighing afresh chinese injection on the on hand and lingering tensions on the other. The u. S. Announced new restrictions on huawei, putting in risk suppliers like mediatech and taiwan. In taiwan. The benchmark in manila trading higher as well as manila emerges from lockdown pew lets get a check from lockdown. Lets get a check on commodities. The index down after rising from seven for seven weeks. Flat, justs pretty below the 2000 mark, and we have oil currently easing about six cents of 1 , 42. 65. On thatwill zero in opec meeting tomorrow, and we have iron ore up come up prices rising for three consecutive weeks. Global iron ore production predicted to expand to percent annually. Speaking of, lets look at bhp, it saw its annual earnings hold mostly study as they offset impacts from the coronavirus pandemic. The mining giant signaled caution about the impact of the virus. Joining us from malverns ceo mike henry. Ood to have you with us earnings, what assumptions are you making in terms of demand for china has been pretty resilient. For having meu and you are right, recovery is underway. Those dynamics have really helped underpin the revenue side of the equation for strong results the past year despite everything the world faced enter industry faced. We have turned in a great set of results where we were safer, lower cost and more productive for the year, and that is all underpinned, not only the 70 return on capital, but the 17 return on capital, but to shareholders. Are you expecting a vshaped recovery in terms of demand for iron ore from china and what assumptions are you making for demand for the rest of the world . The recovery continues to be underway and appears strong in china. I think we will see quite a bit of volatility and uncertainty in the way the rest of the world recovers. Our broader Economic Forecast is it will take about a year for the world to get back to pre covid levels of activity and two or three years to get back onto the trajectory we otherwise would have an on. That is the broad economic outlook. For iron ore itself, demand is and appears to, be holding up well. On the supply side, we see more supply coming from competitors as they get past their challenges. But our strategy of being the lowest cost supplier, continuing to improve quality and delivering Continuous Improvement yearend and year out holds and is the winning strategy. , with supplye reentering the market, can you capacity from australia and looking at that scenario . Is that realistic . Mike weve been clear and our results announcement today that we see our iron ore business as an exceptionally good business, but the way we continue to grow value and returns is a focusing on Operational Excellence and really driving the returns on the capital we have invested in that business rather than through major capital expansions been its all about productivity, safely and reliably delivering results year in and year out. Think we will reach our mediumterm guidance. Haslinda q expect iron ore prices to average 100 per ton next year . Want to give an exact prediction. I think as more supply comes to market we could see some retracement in iron ore prices, what bhp is a diversified Resources Company and we have other commodities in the portfolio that as the rest of the world recovers we expect will result in perhaps more favorable market dynamics. The resilience of the portfolio ushave, which has helped see through the last six months of covid, stand us in good stead going forward, despite the uncertainty. The resilience of our portfolio and people will allow us to continue to perform strongly. Ore,nda outside of iron what effect have you seen from the virus on other materials . We have seen, obviously in copper, prices have come up a bit off of lows on the back of strong demand, and some supplyside challenges. Coal under a bit of pressure. This is all in the shortterm. If i bring us back to the longterm, our fundamental thesis around longterm demand growth for the commodities we produce remains unchanged despite covid, and through the focus on Operational Excellence, financial discipline and building options in these commodities that are most exposed to some of the longer population around growth, decarbonization and so on, we are setting ourselves up to be able to deliver great value and returns for decades to come. Looking toou are make an exit from coal, but bhp is not alone in this. How confident are you that you have enough buyers to get the right price, or is there investor appetite for a spinoff . Mike i want to be very clear, this is an exit from four coal operations and we continue to see great value and upside in our higherquality coal. As steelmakers move to reduce , therearbon footprint will be more demand and more upside for Higher Quality coal. We remain committed to that core of our portfolio. We have other assets whose value will be realized through things like major Capital Investment and which are unlikely to compete well for capital within bhp given our broader portfolio intent and other options available to us. How we go about doing that, we are open all options. One of the reasons we have come forward early on this is to give us the ability to explore different options, either trade sale or demerger being two of those options. We will land the right solution in the next year or two and it will be the one that maximizes value for shareholders. Clear, areust to be you looking to make a full exit from coal in decades to come or could coal still be part of your portfolio . Mike we think coal demand, thermal cold and coking coal, the demand will be there for the foreseeable future and certainly decades to come. This is about as tending to our own portfolio and ensuring we have greatest exposure to upside. And in this case in coal, it means part of that portfolio will generate greater value under a different structure and those of the assets weve announced today. For the remainder of the business, we continue to focus on Operational Excellence, getting the best returns out of the capital we have deployed into that business, and we think demand for that product and that upside i have spoken about will be there for a long time yet. Also mike, youve oil and gas in australia. What is the longer plan for bhp and oil . Mike ive also been clear today that we see oil as being attractive. Thats on the basis of both ongoing demand for oil, given humanderpinning for mobility and industrial processes, coupled with on the supply side, ongoing decline curves, a feature of the industry. There will be more oil supply needed. We think theres great value and returns to be generated in oil for the foreseeable future, so certainly the next decade and likely beyond that. We will continue to invest in oil and growing value and returns, we will do so in a balanced way. Part of that balance is taking mature assets, where there is less upside, less long life, and looking to the best. We will move to the best in traded assets. That will help with some Capital Recycling and we will be able to take the proceeds from that divestment and grow value and returns in the other part of our petroleum or oil and gas portfolio or elsewhere in our portfolio. Haslinda mike, thank you for joining us. Reputedp ceo my can lets get the headlines for you. Democrats launched a Virtual National condition that will formally endorse the bidenharris ticket with a series of attacks on donald. Speakers accused him of mishandling the coronavirus, racial inequality and the shattered u. S. Economy. Michelle obama was the opening days star speaker. Biden accepts the endorsement on thursday. More than 150,000 people have died in our economy is in shambles because of a virus that this president downplayed for too long. Oracle is reported to be joining the race to buy tiktoks u. S. Operations. Essay briefed on the move they have held meetings. The reports is a oracle is working with a group of u. S. Investors that already hold a stake in bytedance. President trump ordering tiktok be sold by september 15. Belarus sliding further into chaos amid growing National Strike and mass protest against its ruler. He is refusing to step down after claiming a landslide when in last weeks disputed election. He is offering constitutional not retain he may credibility. Hes been in power since the breakup of the soviet union three decades ago. Come, and ecommerce giant delivers more than expected on earnings we discuss what the numbers say about chinas domestic consumption. Keep it here with us. This is bloomberg. Results from chinas Biggest Online retailer provides more clues on the strength of the consumer and the chinese economy, which is emerging from the virus slump. Jd. Com reported revenue that exceeded estimates as there was a Rising Consumer spending. Lets get more from our analyst. Youve got the covid impact but what were the main Drivers Behind the strong Second Quarter earnings . Earnings were very strong as an acceleration. Clearly the covid19 had an impact on part of the consumption demand in the first , the lockdown was shifted in the second quota. It helps Second Quarter numbers. We also had anniversary sales and margin participation this year was probably higher because of the covid disruption p more important, what we are seeing is Strong Customer group for jd. Com, especially from lower tier cities, their customers grew by 30 yearoveryear. The daily active users of the mobile app went up 40 . That penetration is driving a lot of their growth. Haslinda what does it mean for chinas ecommerce sector . I think clearly we can see that the covid19 pandemic is accelerating the adoption of Ecommerce Services in china. There is a structural shift from offline to online consumption. If you look at the numbers, the overall retail sales in china are still contracting but the online portion of sales is actually growing over 20 yearoveryear. Lester at this time, about 20 of total retail sales were going through online channels and now it is 25 . Zoomers are more reliant on online channels, and merchants customers are more reliant on online channels and merchants are using online channels. We have categories like consumer goods and Household Items that traditionally used to be offline. Analyst there. Reportedseng inclusion first net income of 106 million were shares of around 7 since friday. Ceo in awith the bloomberg exclusive peer he told us about the companies m a plans and goals about covid19 antibody treatment. Company, a global enabling any company to work on covid19 treatments. We have more than 10 programs ongoing right now. Yet, mainly antibodies used to treat very sick patients or prevent covid19. We are fortunate, we have three programs and a couple more to go in the next couple of months. Does that suggest you that by the end of the year you will have some antibody treatments for the virus . Is very likely few very likely. We have some clients whose goal is to get the product approved i the end of the year. A lot of Hong Kong Listed chinese commies have taken this opportunity to raise money on the mainland as well. Im wondering if this is within the radar of maybe listing your shares on the mainland. Chris does not part of the plan. Earlier, weved just been added to the hang effortscognition of our , empowering Global Companies to explore and develop treatments for patients like in the covid19 pandemic. Tom you talk on the cash on hand and as you look to expand and david touched on this, are you looking in terms of capacity to expand capacity and if so, what would that for capex . And on mergers or acquisitions, is that something youre looking at as well . Chris was betting about a billion dollars in the u. S. And europe to build the supply chain to make sure the medicine we are developing can be manufactured largescale. Were talking about biologics. We are talking about biologics. We want to make metric tons for the u. S. And europe. We are investing overseas. As you mentioned, we have plenty of cash to do that. We have an active plan to look at the companies out there that we can partner with, and a very active m a plan. As you know, earlier this year, we acquired a company in germany. It is very active. Tom what fits your portfolio in terms of acquisitions . Chris we are taking a look at mostly because we build our technology ourselves, we have the platform and we want to build manufacturing facilities closer to the customer. Europe, singapore, china, that is our goal. [indiscernible] that was a typical example of what we want to do in the near future. On the revenue a look, im looking at your financials in remember the remember the almost 4 billion as of last year. Do you think you will get to 10 billion in annual revenue by 2022 or is that too early . Chris we have a very aggressive plan. We will see what we can achieve. Growyear we think we can at least 30 and hopefully in 2021 and 2022 weaken grow faster than this year. Yvonne that was Christian Chris chen speaking to bluebird. The equity markets just opening. We are seeing some upside. Resting State Government bond options later today in india, the bond markets open later on. Weve seen some global funds exit the bond market given fears of deficit. Weve seen virus deaths in india close to 51,000. Annuallooking at shareholders meetings today, the entertainment also announcing First Quarter earnings. Coming up, stimulus measures in singapore pumping close to 6 billion u. S. Dollars into the economy as it plunges deeper into recession, the details are coming up. This is bloomberg. Haslinda singapore boosting its Stimulus Program by nearly 6 billion u. S. Dollars as a slight deeper into recession. Lets get to a reporter. Does singapores latest stimulus a about where the economy is right now . Its important to put it into context. The 6 billions package yesterday, it is important to compare it to other big budgets past. Passed. This should be seen as an extension of earlier stimulus, now extended into march 2021, hoping that things will look better by then. Since the last package was passed in may, there have been reports of data that was worse and expected. Most concerning was the secondquarter gdp figures that were worse than analysts had look for. Businesses and consumers have been asking for support, industries especially hardhit by the virus, aviation and hospitality looking for more aid, and they got it in the latest package bid about 230 million has been dedicated toward tourism bowel vouchers. Definitely a push to help the hardest hit in extent some of the stimulus they have already passed. Already haslinda what are the prospects for battling the virus through the yearend . 2 alle officials usually vaccine or more solid treatment as the key x factor. Other than that, the Prime Minister said yesterday that singapore has the virus at least under control for now. They finished testing the farmworkers who reside in the dorms here and overall case figures have gone down quite a bit in recent days. Theres still concern about the economy shaking off the effects they already failed already felt from the lockdown earlier in the year. Already theres more flexibility on rules recently in terms of how many can gather at weddings and funeral services, for example. Some of life getting back to normal to help the economy, but still slow on traveling, trying to get a green lane with malaysia off the ground. In theseenges are real industries. Retail. And through year end, there could be more retrenchment and the like and thats what officials have warned about, that this is not over and we need to keep pushing. There trying to harp on the theme of emerge stronger with some of the industries in the post covid economy. Haslinda our reporter there out of singapore. Wheredo a quick check of the markets are right now . Lets look at where the asian markets are right now. We have the markets drifting after modest gains yesterday. Looking at chipmakers on the back of the u. S. Announcing further restrictions on huawei, adding to those announced in may, 30 huawei affiliates in 21 countries added to an economic blacklist and weighing on other stocks. Mediatech down almost 10 . Lower by a must a percent. U. S. Closing the loop all is a surprise but not totally unexpected. Escalating tensions have hit chinese tech companies. East is next. Le hike Simon Pagenaud takes the lead at the indy 500 coming to the green flag, racing at daytona. Theyre off. In the kentucky derby. Rory mcllroy is a two time champion at east lake. He scores stanley cup champions touchdown only mahomes. The big events are back and xfinity is your home for the return of live sports. But what if you could stdo better than that . K. Like adapt. Discover. Deliver. In new ways. To new customers. What if you could come back stronger . Faster. Better. At comcast business, we want to help you not just bounce back. But bounce forward. Thats why were helping you stay ahead and adapt with a network you can count on, 24 7 support and Flexible Solutions that work wherever you are. Call or go online today. Manus this is bloomberg daybreak middle east. Opened democrats oh their Virtual National convention with attacks on President Trump over the coronavirus, Racial Justice, and the company. Manus u. S. China relations sour even further as huawei is hit with a new set of curbs on american tech. Apple