President trump dismisses talk of an extension. The markets are opening right now. U. S. Futures coming in slightly higher at the open. This, of course, after the regular session felt pressure. Stocks falling for the fourth time in five days. Had the stimulus package being blocked in congress. Both sides are far apart when it comes to more stimulus measures. Leading the decline. Volatility much higher. The dollar also strengthening. Weakness in the pound. The pound picking up more than 11 , although we did see the u. K. Refusing to withdraw legislation to tear up the brexit treaty. Look at what oil is doing at the moment. Oppression, 37 a barrel under pressure, 37 a barrel. Lets see how things are shaping up for the asian markets. Futures are mixed, but we could be looking at a down day this friday in asia. Back to back weekly declines. Australia, we are watching commodity stocks. Chinas plan to boost the reserves of oil and strategic reserves. Over in japan, we are keeping an eye on nissan. 2 ping an eye on the nikkei, off of erasing the year to date losses for the benchmark. Lowered by one notch. Offshore yuan bumping up a key bumping up against a key barrier again. We do have an idea of what is going on and take for tiktok. We are keeping and i on bond markets an eye on bond markets. Stress is building up for the chinese debt market. Ye on yumeping an e china. Goldman coming through with a new by on the stock. Despite the gyrations we are seeing in the u. S. Stock markets, conditions still looking frothy in options. Economic dynamics, with defensive positions. Is the head ofus active equity at wells fargo asset management. We continue to see the tech rep here in the u. S. Reck here in the u. S. Should investors stay away from the sector altogether . It does not feel good. Corrections are healthy and after the increase we have seen in some of the names within tech, it is not surprising we got the correction that we have seen. It is very likely the volatility is going to continue. Our Portfolio Managers continue to be overweight the sector, not just the three to five largest names but across market caps. I think it is important for investors to realize that within the tech space, these are some of the Fastest Growing companies that have the best Earnings Growth unless debt than many other and less debt than many other companies in the market right now. When do you start to get into cyclicals . Is something our Portfolio Managers have done for the last couple of months. It is important for investors to diversify, and i know that there has been a shift going on in the economy, moving us closer to technology. We have not ignored the cyclical recovery that was happening as well. Our managers were also investing in in overweight areas industrials, specifically manufacturing, transportation, and materials. So far, it still looks like the recovery is mostly on track. Although, given the jobless claims and other things, it would not surprise me to see some pause with the recovery as well. Of fiveafter four out aboutf losses, talking entry points, some of these stocks are still up 60 to 200 this year. Are these investors that were not able to get in initially feeling nervous about missing out again . Thene of the thingss market does best is to take advantage of investors emotions. It is important for all investors to stay disciplined. Certainly, we try and do that. Our Portfolio Managers stay disciplined to their investment process to take emotion out of decisionmaking and use volatility as a benefit to find , tos and prices they like buy companies they really want to own. If you know why you want to own a company for longterm, you can hold it through cycles like this. Lets call it a reality check when it comes to the vaccine with the astrazeneca trial been put on hold, does that create a reassessment when it comes to how you feel about Pandemic Recovery stocks . N i think the market has anticipated we will get a vaccine relatively soon, hopefully by year end, if not the beginning part of 2021. Mark has anticipated that. There is always risk that if we do not get that, we will see a pause. What is more important is that we continue to find ways to open up our economy even more from where it is today. Without doing that, we will continue we will continue to see disappointment in job numbers and other things. But we are seeing across the vaccine,en without a is for the most part really good ability to control this virus. As long as we continue to do that, that should be favorable for the economy overall. You mentioned volatility. Given the uncertainty over the vaccine and this chart showing how volatility on the chinese course, that is around the time we have the u. S. Elections. What do we expect heading into november . Why this is another reason we see volatility picked up. It is something we have expected. As we head into the election, investors to worry about what kind of changes we would see. Certainly, with foreign relations, but also what would happen with tax regulation, taxes and regulations for corporations. I think we will continue to see volatility increase. I will see that i will say that another part of markets that are emerging market Portfolio Managers really like in china. Some areas in the small to mid cap space as well. We are seeing opportunities despite what we are all hearing and seeing. Appreciate your time. Mitchell. To karina blockede democrats have a pandemic relief plan on the grounds that it does not go far enough. To getublicans failed the votes they needed. Democrats are proposing a total of 2. 2 trillion. The u. K. And the eu are heading deeper into a split. Boris johnsons government refused to scrap plans to rewrite the brexit divorce. The eu is threatening civil action if the u. K. Does not drop legislation. Christine lagarde has painted an optimistic picture of the euro economy, saying manufacturing continues to improve. Hold. B kept policy on she said the bounceback next year will be around 5 . The balance of risk to the area is to the downside. This assessment reflects the uncertain economy and financial implications of the pandemic. Hong kong police have arrested 15 people in connection with a surge in next digital shares. The Media Company is owned by vocal government credit. In august, it soared by over 1000 . The arrests were made on suspicion legal funds were made in conspiracy to defraud. 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. Shery still ahead, time is running out for tiktok. The Trump Administration says it will not extended deadline to sell the video apps u. S. Operations. On the brink of collapse, how is spat over policy threatening to tear the New South Wales government apart. President trump says he will not extend the deadline to sell off tiktoks u. S. Assets. We either we will close out tiktok in this country or will be sold. I am not extending deadlines. It is september 15. There will be no extension of the tiktok deadline. Likely to miss that deadline. Lets get more from our corporate influence reporter. Unless we see some rabbit out of a hat, all but certain to crash into that deadline. What will happen . I think that is the open question. Advisors for the president had been considering whether to recommend giving tiktok more time to arrange a sale. Likelymentioned, it is to miss trumps publicly stated deadline of september 15. They know how to get sign up sign off from the Chinese Government, and those things take time. How are microsoft and oracle dealing with this . That is the open question. One of the issues they have to deal with, what is the actual deadline . The administration has been a bit confusing. Trump has publicly stated september 15. The executive order indicates the sale would have to happen by september 20. A separate move by the administration seems to give them a little more time to divest the u. S. Business even past the november election. They have to figure out exactly what criteria the Chinese Government needs in order to approve the sale and exactly what the administration needs. To evaluate their own interest as they navigate this deal. We continue to see some legal challenges against the trump executive order. Yes. Is challenging the executive order. We are also seeing some lobbying around a related order. Wantsump administration to ban American Companies use of the app, which is widely used as a means of payment by American Companies in china. Offer seeing industries their counter perspective. Cooks how much of this how is banking on a hope that this could drag out by november when maybe it will not be such an issue . Any idea of how i potential Biden Administration would deal with this . The Trump Administration has been ramping up its pressure against bytedance and taking other aggressive measures against china. Just as we are headed into a president ial election, the administration has made it clear they want to take a hard line against china and they consider that a Winning Campaign tactic. You know, in general, we have appeal tobipartisan china byharder line on democrats, whether a Biden Administration would pursue similar measures, i think that is debatable. The order would work a little differently than what trump has come up with. Y might also take scrutinize some of these companies. Brexit talks are fraying, raising chances of a chaotic u. K. Eu split. Highlights from our exclusive interview next. This is bloomberg. The u. K. And the European Union are heading for a chaotic split as talks between the two sides fray. The eu has given Boris Johnson three weeks to back down on his plan to rewrite the brexit divorce deal or face legal action. Paolo gentiloni spoke to alix steel and guy johnson. Indeed, the bill was very seriously damaging draft between u. K. And the eu. Stressing iswe are that it is up to the British Government to work to reestablish the trust, and time is running because our reachment is either we this agreement within one month from now, you know the formal deadline is endoftheyear, but to have an agreement, we need to have a decision taken at the beginning of next month, the beginning of october. Of the reestablishment drafts, the changes in this bill that was introduced in recent days is of essence and it is very urgent. If the u. K. Does not back down, will there be a hard brexit . As we always said, this is proposal. Ropean this is not the european will. This is not the solution we envisaged. Need two parties to have a there is not any seriousness in respecting the basis of thethe negotiations going on, i think things will get very difficult among the eu and u. K. We are not working for this. We are not working for a hard brexit. A contractuale partner to have a deal. We heard from the ecb they revised upward their 2020 forecast but they see destabilization of any rebound next year. What is your assessment of the european economy right now . What letter of recovery are we in . We are, in general, a similar ,nalysis of the one of the ecb we will have our winter forecast beginning of november. Our evaluation is that we have a recovery, especially in june and july. Perhaps according to granularuency data and data, the speed of the recovery has slowed down in recent weeks. I think we still have in front around thetainty strength and speed of recovery. Our task is to reinforce in thence in the markets cities and business community. With our recovery plans, we will try to do in the next weeks. Andrtainty is still there we are not sure of the speed of the recovery. That was Paolo Gentiloni get youck you lets a quick check of the latest headlines. Development would see them going from rivals to partners. Are willing to applaud 20 billion deal would be the biggest ever for both india and amazon. The pandemic has caught up with the airlines. Jobs. Rrier plans to shed singapore had been one of the few carriers to avoid job losses so far. Represent 15 of the total workforce. Work from home has come to an end for senior sales staff at jp morgan in new york. Managing directors and executive directors must return to the office by september 21. There are some exceptions, employees with childcare issues as well as those with medical conditions are exempt. Retiring ceo will be in january and jane fraser as his successor. We will get the details on this historic appointment, next. This is bloomberg. Business newiting zealand pmi. We are looking at signs of any kind of recovery given that we have had one of the strictest lockdowns in the world in new zealand. Look at where we are trading in terms of kiwi stocks, down about half a percent. Watching for whether that continued rally in the kiwi dollar can gain momentum. Dovish remarks from the governor have given it a little bit of a downside for the kiwi. News get to the first word with karina mitchell. Wherestart in the u. S. The jobs market seems to have stalled with initial jobless claims unchanged. Continuing claims rose. Declinehad projected a in both numbers. The data points to people staying out of work for longer. President trump has made it clear there will be no extension for a deadline to sell tiktoks u. S. Operations despite report they were negotiating a delay. They have until september 15 two agree to a sale or the app will be banned in the u. S. Upwe will either close tiktok in this country for security reasons or it will be sold. I am not extending deadlines. It is september 15. Microsoft says it has detected a series of cyberattacks disrupting the u. S. Election. Chinese,rom russian, and iranian hackers. Microsoft says the Chinese Group targeted joe biden while the Russian Group cast its disruptions more widely. Wildfires continue to rage across the west coast. Hundreds of homes have been destroyed with several starters fire started by down power lines. Northern california, the largest fire continues to burn out of control. It has burned through more than 1000 kilometers. 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. Shery for the first time, a woman will run a major wall street bank. Citigroup has picked jane fraser as its next chief executive officer. She will take over from michael corbat. We are tracking the story. It is 2020 so this really should not be new. We have a woman heading a major wall street bank. Frazier herself talking about jane fraser talking about equality in the industry when she spoke to bloomberg in june. 73 of what paid men are. True in our more black population. It is true in different parts of the world with different populations. The piece is to begin moving away from the ills of the past and behaviors of the past and start converging on a positive vision for the future. Speaking back in june. What does her appointment mean for the industry . It is a really good question, and i think it will be interesting to see. We have seen leaders from Goldman Sachs calling out and saying, this is awesome, and congratulating jane. It was just a couple of years ago that all of the big ceos went to capitol hill. At that time, none of them raised their hand when they were asked. Now that a woman has, does this take a little pressure off of banks to improve the diversity of their seniormost ranks . We hope not. It will be interesting to see where banks take this next. What about the challenges when she takes the helm . It will be interesting to see how she handles this. Peers in theed its profit perspective we will see if that is among the first things she needs to tackle. We are also in the middle of a pandemic and citigroup has most of its workers working from home. It might be something where she has to steer the ship and keep it on course for a while. What is the strategy in doing this in the middle of the pandemic . So many workers are still working from home. The bank is still struggling. A pretty high level magnitude crisis, right . Time to do antense leadership change. We have heard this across wall street, sometimes in the middle of a crisis is a good time to get fresh eyes on a problem. It will be interesting to see if that is the case here. Obviously, we are still in the middle of it. Not looking like it is going to wrap up anytime soon. She has six months to transition into this new role. Hopefully, by february, she will have a better sense in terms of where she needs to take things and how to manage this crisis. Get more on the new succession plan. Bloomberg subscribers can go to tv on their terminals. Testing its version of democracy and the results are not good. Outlook for u. S. Policies and his views on stimulus. Secretary mnuchin, chairman powell have done an amazing job with 435 individuals trying to figure out how do we get the plan to the people. It is not to the big companies. People are panicked for survival. The average individual trying to figure out, how do i live . What is happening with my rent . What is happening with my check . It is not coming from my employer anymore. That confusion and dismay when you have three to 5 trillion flushed into being the economy. The solution to all of that has got to be a resurgence of confidence across all the things we talked about. Pandemic, i honestly never ught i would see a global as horrible as one death is, how we cannot find a solution or cure is another quandary. The cessation of revenue in the world is a problem. The unintended consequences of that, the openness of the division between the haves and havenots, what we are seeing with black lives matter, kenosha, chicago, the nrk the anarchy, certainly is political. This financial frustration of people just not having a gps of what their life is going to be. Until we fix that, i think nothing is going to work. Many people put that squarely at the foot of this administration. It was almost exactly four years ago that you were on stage at the rnc telling the world about your friend donald trump. Many people would blame him for exactly these ills you are describing in this widening disparity. What do you say to that . America god we are in where we can all criticize the powers that be and hold them accountable for whatever variances we feel are at stake. Starting with our position and my position as a public chairman, i support whatever regulatory body is in power at the time and whatever those regulations are, we will abide by them. Donald trump has been a friend of mine for 40 years. I have great admiration and respect for him as an individual and president of the united states. This is not an easy job. Try to figure out how do we solve these global ills. At the same time, i dont agree all the time with how he. Essages as i dont agree with a lot of world leaders. The political situation is frustrating because people are in agony. That decision will be in the polls. Joe biden has been a friend. I have Great Respect and admiration for him also. The process is the right process. President trump came in to this thistermediate intermediate. A democracy which is threatened. What is happening is we are testing our democracy. It is not working well. The rich seem to be getting richer and the poor seem to be getting poorer. People are frightened for their education and for health care. Just the basic needs. That has got to be fixed. Chairman capital speaking exclusively to bloomberg. Aberdeen standard investment explains why in addition why there is a financial reason for respecting the rights of Indigenous People. This is bloomberg. Lets head back to sophie in hong kong. Stock futures are mixed after the choppy session on wall street that sawtek pulled off that saw tech pulled off again. Japan, on thursday, if further increase in sales tax will be needed. Commodities, it could be an Inflection Point as trading becomes less volatile. We are seeing copper futures under pressure. We are seeing several indicators about the scale of chinese buying. I want to turn our focus to oil. That space is coming under pressure. Crude with the worst two weeks since april. Adding to pessimism around demand recovery. The appetite for crude will fall more than 8 Million Barrels a day. Beforet be reclaimed 2022. What that means for the industry, it will likely lead to job losses. Bloomberg intelligence seeing as much as 2000 jobs being lost globally. Moving onto the pie chart to show you the breakdown. More than half expected to be in the united states. Exxon losing the biggest percentage. As for china, we could see a 22 drop when it comes to job cuts with petro china. The fallout from rio is front anduction center for the Mining Sector to discuss. I want to bring in danielle welshrose. Investment director at aberdeen standard investments. Wonderful to have you here. To discussing potentially the future of the ceo. To show accountability for this kind of thing really does matter . We have seen evidence there was knowledge of the significance of this site. Unlike what rio said, which was to plead ignorance. Very complex a issue and it is something there is a lot to unpack at the moment. Engagement happening with rio tinto and other groups to figure out what happened. One of the most important issues, trying to understand at the highest levels how a company like rio tinto, that whole issue of accountability and Risk Management and whether that accountability and responsibly for Risk Management is happening at the highest levels. What kind of a penalty or response would you like to see . What kind of response from the government would you like to see given that at the end of the day, these individual states are hosting these mines are wildly profitable for Companies Like rio . that is one of the issues that first stood out. It became quite abundantly clear early. The laws in Western Australia were not adequate to protect indigenous rights. Question, weises a cannot rely on Companies Just to be obeying the law. In many cases, the law falls short of community expectations. That is one of the reasons that makes this case so complicated, you have a company that, from everything that we can see, obeyed the law. Response from others say that is not a good enough reason anymore. What is the financial case for respecting the rights of Indigenous People . It is a moral case as well as a financial case. This is clearly a financial issue for the company and for others in the Mining Sector. Are we are seeing, there reputational hits the company is taking. All of the time and attention been directed internally as the company is trying to figure out what happened and to respond to the inquiries. There is a lot of activity happening. We are talking about, in this case, a wider response from policymakers around tightening costsse laws and adding to those Mining Companies for operating in australia. It has repercussions across other jurisdictions as well. There are a number of financial costs involved, moral implications as well. This extra scrutiny on inequality conversations, Climate Change conversations. Are you seeing a shift in the Investment Community . Absolutely. It is clear to everybody that there is a lot more noise happening across these issues, not just in the Mining Sector but across the board. I think investors have been engaging with Companies Directly for a long time. What is changing is we are seeing a lot more collaborative engagement. Seeing the rise of the shareholder resolution, investors more likely to use their vote to signal to companies how they feel about certain issues. We are seeing a lot more nongovernmental organizations and Interest Groups banding together and becoming a lot more sophisticated. Either targeting the Companies Directly or targeting the investors. Level ofeing a greater organization. Media is responding and playing a big role as well. There are conversations that may have only happened behind closed doors previously. Now, more often in the spotlight. Very quickly before we let we go, i want to give you get your views on the panel you were these of addressing issues. Yes, covid19 is causing a lot of complexity in many ways. Atpecific example, looking it became apparent that the normal site visits either an investor or auditor would make to these factories or worksites are not able to happen anymore because of covid19 restrictions. That is one example of how covid19 is adding to the complexity and potentially concealing the fact that human rights abuses are happening in the supply chain. , thankelle welshrose you so much for joining us. We will get more on the pressure facing rio tinto with one of australias most prominent advocates for indigenous rights in the next hour. We are hearing that open door is in talks to go public via social capital. Opendoor is a Property Technology startup about seven years old. It is backed by softbank. They are in talks to go public by social capital ii. The combined companies would be valued at 5 billion in the deal. Plenty more to come. This is bloomberg. A damaging split is threatening the stability of the government and australias most populated state, New South Wales. Koalas are at the center of it. Marsupials able to bring down the government potentially . Hard to believe. The government does have the koalas interest at heart. The government is a longstanding coalition of the liberal party and the national party. The liberals are trying to pass new environmental policies. The smaller partner, the nationals, represent rural communities. They say it is a nail in the coffin to farmers. Premier unimpressed by this. They have until 9 00 a. M. To decide, which is five minutes away. What are we expecting . Paul the nationals are having a meeting right now to come to some sort of agreement on this. The government only has a twoseat majority. There is a real potential for the government to fall apart over this. On the national side, farmers do have strong support but not everybody in the party is on board with this level of brinkmanship. There are concerns over his approach. The deputy leader has expressed concern they will see the party painted as antikoala. That will be interesting to see how this plays out and what sort of role the deputy premier has next week. The plot thickens. Four minutes to go before the deadline expires. Thank you so much for the latest on those qualities. Koalas. Ged those we will have plenty more. And we will also talk about rio tinto. This is bloomberg. Haidi very good morning. I am haidi stroudwatts in sydney. Shery i am shery ahn in new york. Welcome to daybreak asia. The rebound unravels. U. S. Stocks turn lower amid heightened volatility. Treasuries rise along with the dollar as investors seek havens. Asian stocks are seen following the dip in the u. S. No deadline delays for tiktok. President