Expiring ones. The dollar index in weakness, 1200 right now and continues to slide down over the past four weeks. The dollar moving average 200 day the lowest average in recent weeks. Citi says looking at a 30 possibility that gold will get to 2000 an ounce in three to five months. Stocks rebounded yesterday after slumping 5 . China up 1. 3 , turnover has receded from its highest levels since 2015. The hang seng up 1. 6 , biggest increase since july 6. Tencent adding 5 . Alibaba is the one to watch, surging 5 . Ant financial look at where we are in terms of the Southeast Asian markets. China up by 0. 5 . Sti up 0. 7 . Theaad we also have European Union leaders running a policy marathon as there planned two day meeting to pass a massive Recovery Fund. In the u. S. , republicans and democrats are starting to hammer out a budget plan this week. Our policy editor Kathleen Hays is with us. In both cases, agreeing on a we are getting some murmurs of an agreement. We certainly are, and we know two day meetings turn into four day meetings. Insults are being hurled back and forth. Emmanuel macron pounding the table. There is a compromise they are considering. It is mainly due to the fact that led by the netherlands are insisting on changes. Of 390 billion euros of grants. Before they said it has to be way less than 350 billion. Originally the majority wanted 500 billion. They made some progress. 360 billion of low interest loans. On monday, the chancellor of germany sees progress, and sees the framework for a possible agreement or at least an agreement that is possible. Eu have toers of the agree on the plan. 216 and goay it is ahead with it. Will be part of the five including germany that will be looking at 360 billion in rebates aced on the money they put in over the next few years. It is a complicated arrangement. Some people think that will help. Linch the goahead we will see if that happens tomorrow. In the u. S. , this is a threeweek period after the july recess before they go on august recess, for congress to get a bill passed. President is calling for a payroll tax cut. Democrats oppose it and republicans do not like it. Steve mnuchin called for a 1 trillion stimulus plan, that is what republicans are looking for to help kids, unemployed, Small Businesses and vaccine development. Mnuchin, nancye , andi and Chuck Schumer the white house chief of staff mark meadows will be meeting and hammering things out. Mitch mcconnell says he help the gop can offer a starting point. You have 1 trillion on the republican budget for a new plan. Democrats are looking for 3. 5 trillion. They have big ground to cover for a compromise. Haslinda in australia, the minutes released from the last meeting as a negative rates unlikely. What else have we learned . Kathleen extraordinarily unlikely. I think they are try to tell us, they will not go in that direction. Japannations look at how has dealt with it, how the euro area and ecb have done negative rates. Do they really make that much difference . They are signaling that is not something they are looking for. The minutes of the july meeting show members saw no need to adjust policy under current conditions. They are ready to adjust the package as needed. The minutes said, knows the prize, recovery is uncertain, surprise, recovery is uncertain. The question of where the Central Banks stand in terms of debtary policy, financing etc. Could be best explained in an upcoming speech by the governor on july 21. They will speak in the next few. Ours and give us more detail people want to know what he sees on the virus, where australia is in terms of impeding it, and what that will mean for the economy and reserve bank of australia in future steps. Kathleen hays, our Global Policy editor. Continues to be at the epicenter of the global coronavirus pandemic as worldwide infections approach 15 million. Reporting numbers in the u. S. , 3. 8 million with fatalities topping 140,000. A vaccine trial from Oxford University a showing promise while pfizer could also publish positive data on treatment. The European Union is moving toward a massive virus plan with a compromise on the deal. The new arrangement reduces the total amount and grants and includes is low interest loans to countries hardest hit by the pandemic. Talks have been ongoing since friday with netherlands unhappy with how the program is funded. Hong kong is considering a ,ockdown as coronaviruses surge with isolation beds and Testing Capacity starting to run out. 66 cases monday with half from unknown origin. 560 new infections in the last two weeks, signaling hitting trains chains of transmission are widespread. A lockdown remains a distinct possibility. Chinas massive three gorges dam has a river surge, torrential rains left 31 dead and 23 million affected with property and agricultural damage topping 9 billion. The biggest oil refiners plan to reduce production at some refineries. 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. Still ahead, hong kong facing uncertainty on many fronts. E will speak with tommy wu haslinda up next, we will speak with Precious Metals strategist, ubs investment bank, joni teves seeminglys unstoppable rally. This is bloomberg. Haslinda gold and silver have surged this year as the coronavirus pandemic roils the global economy. Gold is benefiting from low real and record plays into Exchange Traded funds and increased allocation. Our next guest says the gold market is well supported. Joining us from singapore is joni teves, Precious Metals strategist, ubs investment bank. , 90 nly way is up for gold year to date. I think the market has been driven by the fall in real rates into negative territory. And further declines would extend that higher. That being said, further upside from these high levels does become more challenging particularly in the nearterm. Investors have built exposure to gold already and are more likely to manage long positions rather than continue to add here. Becomes morearket vulnerable in the nearterm, and potential corrections in real rates from record lows and selloff in equities, and any positive data as the recovery presses on. In the nearterm that would be healthy for the market. Haslinda the trajectory is higher, and looking at possibly 2000 and five months. What are you looking at in terms of gold prices . Risk i think the upside remains in focus. From a medium to longterm timeframe, this is driven by strategic interest gaining more momentum. And because gold is getting a wider investment base, becoming a more important asset to hold. Particularly given how low real rates are and uncertainty continues to be elevated. Looking at more inflows into gold etfs, is that fromh to offset demand traditional buyers from india and china . Driver for the move in gold has been investment interest. As that continues to be the case, even historically fundamental physical demand, also important, does not drive price action in the market. As long as macro factors continue to drive investors toward gold, that more than offsets the weakness in physical demand. The risk of a week physical backdrop is if macro factors surge, it makes the market more vulnerable on the downside. How far is overriding on the back of the wave of gold onhow far is silver riding the back of gold . In silver hasrest been on the back of the move in gold. Silver positioning is not as crowded as the gold positioning is of the moment. That is attracting interest from investors. The fundamental side of silver comes into play, and our view is that although silver will outperform, itl will face headwinds as well and is likely to struggle to maintain that outperformance over the long run. Behaad it always seems to jam tomorrow when it comes to commodity. Do you have a price target for it and a time frame . Silver,ur silver for the nearterm target is around these levels, 19. From here it depends on where gold goes. If we move into a bull case for gold, that is a scenario where silvers fundamentals come less therefore itand follows gold higher and acts metal. A pressur precious until we get to that point where gold is making new highs, consolidation in gold will weigh heavier on silver as well. Rishaad if you wanted exposure to gold, what is the best way to do it . Is it getting the physical stuff, having an etf, or getting involved with people who mine it . On thet really depends Risk Appetite of the investor, dependsr mandates, that that tends to be a key criteria. One thing that has become ofdent this year, in terms the positions, investors have been more deliberate making those decisions and choosing how they get that exposure to gold and Precious Metals in general. Rishaad thank you very much, joni teves, Precious Metals strategist, ubs investment bank. Deal with the worst crude crash. Up next, this is bloomberg. Haslinda chevron has agreed to buy noble energy. Is a major deal since the coronavirus cost a slump in oil markets. They said why the entire portfolio makes sense for chevron. Onthis is a deal built chevrons strengths, high quality assets in a fair price that is a good deal for shareholders of both companies. It shows why we are different from others in our sector. This is not just about the permian basin. Position an impressive in the Eastern Mediterranean, in the west africa, in colorado. This is a diversified company with assets that fit our portfolio and capabilities well, and their shareholders have access to a stronger balance sheet, stronger dividend, and retain upset exposure to a recovery. It seems like the takeover was opportunistic rather than strategic, not the start of the chevron buying spree. Is that the correct interpretation . , and wee always looking look at things through the lens of value. We have to see a good portfolio fit. There are strategic screenings we look at for any transaction. We have a high bar for these things, and we think these assets will compete for capital that will strengthen our portfolio longterm, and help us improve returns. This was not created on free for show cash flow share, it has Strong Financial attributes. These are assets we expect in our portfolio for a long time. It is a strategic fit, and we think the time is right for both companies to engage in this combination. If you have a sheet of paper with names on it, are there any more names for takeover, or is that in the door right now . Always have a long sheet of names that we look at, but a strict set of criteria we applied. We have a high bar. To createking synergies, improve returns, and this is in line with our ur disciplined strategy. We are focused on this, it is good for shareholders for both companies, and that is our focus today. Noble in particular, i wonder what is a bigger driver for you, the International Assets in that Eastern Mediterranean, or was it conventional . Where do you see the biggest appeal . It is all of the above. It is an attractive asset base. Successful in so the Eastern Mediterranean that it does bring with it a set of geopolitical complexities and potential risks that for a company the size of noble is meaningful. We have a large global diversified portfolio with exposure to many different basins and geographies, many different governments. We have many decades of experience managing these risks. It is a nice fit. Their position in the permian is not good, but not the scale on our side. We bring them together, and we have efficiencies that we will see. Their position in colorado is an add for us. We have unconventionals in argentina and the u. S. , texas and new mexico. To a high us exposure quality resource. The entire portfolio is a nice fit, it is not about one or the other. Ceo mike chevrons wirth. Amazons unseemly unstoppable bezos on then Jeff Bloomberg billionaires list, adding 13 billion to his personal fortune, the largest single day rise since 2012. Bezos has seen his wealth swell 74 billion this year to 180 billion. Earlier this month, softbank will sever from its chipmaker arm because of the limited ability to grow. Rishaad we willathe markets, the dollar having a rough time of it. Moving to the downside by 0. 2 . Drop of 0. 4 a over the last few sessions. It could be under pressure as it takes on more Risk Appetite with the prospect of a coronavirus vaccine. Barrelil around 40 per and looking at investors wondering about coronavirus concerns. This is where we are as we head into the tokyo lunch break. A move to the upside. Have stocks moving up, msa i asiapacific index just over 1 to the upside. Index justpacific over 1 to the upside. This is bloomberg. Its 10 29 in new york. Seeking aaid to be valuation of more than 200 billion with twin listings in hong kong and shanghai, and is already more highly valued than most wall street firms and may aim to earn more than saudi aramcos 29 billion hall. Its move torating challenge rival tencent. John is one in the u. K. To abandon plans to suspend its extradition treaty with hong kong, calling effect the foreign secretarys statement quote, brutal meddling in its internal affairs. They are urging them to halt what they call wrong words and actions. Ties are already strained over huawei and chinas influence over hong kong. The chinese parent a video sent app tiktok amid claims they send user data back to beijing. They paid half 1 million during june, almost twice what they spent in the first quarter. Tiktok is under pressure from the white house and capitol hill, with President Trump threatening to ban the app entirely. Myers numbers fell below 200 in tokyo for a second successive day, even as rates spread beyond the capital. However, virus cases are often lower on monday with hospitals closed for the weekend, therefore if you attest carried out. The government says new restrictions to stem the outbreak are not needed for now. South korea is central to the global tech supply chain, but it is failing to keep pace with its largest customers. The result is that the combined capitalization of all kospi companies is less than the market value of apple, amazon, or market microsoft. 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. Im Karina Mitchell. This is bloomberg. Some breaking news. One your total shareholder return is the worst since when he 16. The worst since 2016. They own control of multibillion stakes and the like of singapore allies, all the big cap stocks in the lion city. The biggest shares have fallen about 23. 5 billion in three months. Temasetk asia tracking gains in the u. S. With stocks the highest since february. Than 1 comere extending gains for the day, rising for a third day. Asian stocks trading almost 90 times pe. Indexast asia up by. 5 , more than 30 since march lows. You to date it is negative territory. S p futures opening flat. Gold at 18. 18. 30 possibility gold will get to 2000 announced. An ounce. Take a look at what we are in terms of the north asian markets. Tracking the csi 300 index, up by. 4 . Chinese stocks rebounding yesterday, up 5 . A sense the markets in china can expand the blistering rally. China up by more than 1 . Than 1 . T up by more nikkei 225 higher by. 6 . Watching, rwe are ising. 3 . Boosting iron ore volumes. Commercial down 3 . Q2 net income falling 20 year on year. A mixed picture for the glove makers. Ashaad hong kong is facing third wave of coronavirus which has contributed to unemployment rising to its highest level in more than 15 years. Also under pressure from the deteriorating relationship between the u. S. And china. Lets bring in tommy wu, lead economist for oxford economics. How bad are things, and how bad can they get before they improve . First of all, thank you for having me here. The third wave of which happenedak since early july, things start to get that are in hong kong in terms of the retail and restaurant side of things. Outbreak, thehird Retail Sector and restaurants as well are going to suffer for a prolonged period. That maybe there could be a stronger recovery in the Fourth Quarter for retail and restaurants. But having said that, Inbound Tourism as of now is still pretty much at a halt. Premuch the only sector that is doing right now has been the financial sector. This will continue to do well for the rest of the year. For instance, we are going to have some large ipos coming in hong kong. The covid19with outbreak and also before covid19, the economic momentum in hong kong was very slow coming into 2020 because of the civil unrest last year. Expectingar, i am only to contract by 6 , actually. Rishaad we have had a series of events. You have mentioned the civil unrest and of course the coronavirus pandemic. On tap of that we have the National Security law, which has created a lot of uncertainty. Does the hong kong economy have to shift structurally in the future, in your view . There yeah, it looks like will be some restructuring. Happens is hong kong will become more of a Financial Center that serves the chinese market, which is actually what it has been doing. It is just that may be previously there were companies that treat hong kong more as a asia, but thisn world may be shifting, in the sense that hong kong is more becoming the Financial Center for the Greater China market, which means that hong kong is still going to be the gateway in and out of china. But this road is going to be even more prominent. So i think there will be offsetting affects coming from all the Political Uncertainty arising from the National Security law and also the international responses. So on the one hand you will probably have Foreign Companies thinking there is left less c