Profit increase as iron ore holds up amid the pandemic. Relations go even further. China says attacks on tiktok were bullying and rejection of fair competition. Shery lets get you started with a quick check of how the markets are trading. U. S. Futures opening flat after the s p 500 and other major indices ended the session mixed. We had a rally in Technology Companies with the nasdaq gaining 1 . Selling off sos the s p 500 was dragged a little lower. Still closing at the highest level since february. The third time in the past week that the index topped above its february closing record during the session, but ended below it. Still up more than 50 from its march low. We did get more positive ecodata. A gauge of Builder Sentiment jumping to the highest since 1998. Take a look at oil because that positive sentiment over the economy taking oil for a five month high, all the right now under pressure. Wti now headed towards 42 a barrel. See how things are shaping up, here is Sophie Kamaruddin in hong kong. Sophie this tuesday, we have asian stock futures mixed but mostly higher. Getting more than 1 after the regional benchmark closed at a high on monday. Back online today after the kospi snapped a nineday rally with technicals slashing. Indonesia returns to the fray as well with trade data due today. From australia, rba Meeting Minutes on tap. And watching westpac increasing bad loan charges. Bhp earnings on watch as well. The miner seeing iron ore prices easing from the current level and that has extremely challenged demand outlook for the first half. Overall, stocks could be set for modest gains. Looking at a snapshot of rbnz policy divergence. You have the aussie dollar topping the best winning streak since 1991 against the kiwi. Negative rates in new zealand. Expecting the rbnz will cut the cash rate to 50 basis rates in april. Switching out the chart, made way on japanese stocks with the currency trading around a oneweek high. Recovery prospects remain uncertain following the gdp slump. The nikkei could be on a path to losses, during the broad rebound we have seen in asia. Changing of the chart, it is not being felt, which are on track for the worst year since 2013 as the region misses out on the tech rallies that continue in wall street. Southeast asias old economy firm makes up the heaviest waiting which will longer will be the case in hong kong, adding alibaba and shalxiaomi. More on the get markets with aaron gibbs. We keep touching those record highs without really being able to surpass it when it comes to the s p 500. When you look at the rally we are seeing in the u. S. Stock market, what do you think about andbreadthe, depth volume of the overall trade . Erin there are some positives and some negatives. Its interesting what has happened in july and august. We have seen a better breath and seen some of the cyclicals, and from the laggards start, start to lead and catch up. The downside is we have not seen the volume. We are still at extreme lows when it comes to volume in this a lot of money on the side when you go to money market funds. As well asof Retail Investors are on the sidelines partially because they are waiting for this second stimulus package to be issued. Of course, now our congress has gone on vacation so that is going to be something where people are going to potentially remain on the sidelines because we dont know what our government is going to do as part of this economic recovery. So, its as much as we are looking forward and were hoping to be able to come out of this recession and we have this amazing with lower estimates in the second quarter, there is still some concern of how we are actually going to pull ourselves out of this. For every positive number, we might see a negative as well. I certainly feel more confident than i did two months ago because at least we are seeing a broader participation and seeing real great numbers in the housing market. But, there is certainly some warning signs and some reasons to be somewhat cautious. On,s not a full risk highgrowth environment just yet. Shery the housing market, we got those positive Builder Sentiment numbers jumping to the highest since 1998. How do you play that . Erin yeah, that is one of the positives. Isay home is where the money as well as the heart. There are a lot of ways you can really play this home market. It is really about this trend of people moving out of multifamily homes, i. E. Apartments, into singlefamily homes, houses. With that comes in a lot of areas of potential growth and longterm earnings potential. Two of my favorite stocks for long time has been home depot. A Home Improvement and Home Development retailer. Another one in materials is sherwinwilliams, a paint supplier. And straightforward homebuilders. Lennar homes is one of the better homebuilders out there. Some of the strongest Balance Sheet debt, free cash for levels. Good credit quality. But, they also were very focused on singlefamily building versus multiunit. Thats where we are really seeing the trends, the exodus from the cities. This a lot of different areas. It doesnt have to be homebuilders or retailers. Theres a lot of potential if you think about going from an apartment into a home, to take advantage. Electionu say that the and the political meanderings going into november does not necessarily knock the market rally back. After november, do you think the market is adequately pricing in the risk of a change in tax code, particularly with regards to what a Biden Administration may do on Capital Gains tax . I think, in general, it takes so long and we still have it will be challenging for biden to get a lot of things passed through. Taxes, the Capital Gains that could be a negative. That was a big push when trump lowered it. I think the market is very ofely pricing those types events in until it is clear it will happen. Even if biden wins, and a lot of people are very happy with some sort of change because of the political, pandemic, and economic crisis we are facing. Just the idea of change would be more of a positive overall. That isstreet, something that even if there are changes, there might be other aspects that wall street would be happy about. Haidi just want to get your views on the retail recovery and the consumer recovery. Do you see that in the u. S. . Picks whateve are your in that space . Erin this is one area where i really advise you to be very selective. One of the things im looking at as i mentioned, good Balance Sheets. Have enough cash on hand. You can still keep the lights on. The retailers i like, even though we are facing a they tend to be smaller stores. T. J. Maxx, ross. They are well valued even with the downturn. They have recovered somewhat. Haidi erin, we will have to leave it there. Erin gibbs. A little bit of interference. We do have some breaking news crossing the bloomberg when it comes to bhp. The miner just releasing its earnings. A bit of a miss. 4. 6 below the average analyst estimate and it comes to net income. 7. 96 billion. And finalng a 40th dividend of . 65. Capex at 6. 9 billion. Earningspershare at 1. 79. Fromyour revenue coming in continuing operations, just shy of 43 billion. That was more or less in line with estimates. The underlying about 22 billion for the full year. Interesting commentary coming from bhp. Seeing iron ore prices easing from the current levels. We have seen super high iron ore prices being driven by the recovery and infrastructure demand out of china. Bhp saying the worst of the physical demand shock from covid19 in the first half of the year is now behind us. China growth rate moderates over the longerterm, saying they were extremely challenging demand for its products in the first half. Still seeing a challenging environment for coal, navigating a difficult period. We will get more analysis on that. Coming up, including an interview with the bhp ceo joining us later on. That conversation at 1 30 p. M. If you are watching in sydney, 11 30 a. M. In hong kong. This is bloomberg. Karina you are watching daybreak australia. New figures suggest u. S. Coronavirus infections are slowing despite cases approaching 5. 5 million. Arizona reported no new covid19 deaths, while californias numbers were less than the 14 day average. Florida indicates the summer infection surge may be slowing down. Spain and italy have closed nightclubs. Francis has virus indicators are trending upwards. Singapore has announced new virus stimulus worth all low 6 billion. Extending wage support and hospitality. The program adds to the governments total package of 73 billion. The news comes with singapore sliding further into recession and the economy shrinking a record annualized 43 in the second quarter. Hong kong is extend social distancing curves for a week to august 25, including a dine in ban in restaurants. Officials say it could threaten and people should prepare for a possible surge in covid19 cases as winter approaches. The economy remains under threat from the operate. Global news 24 hours a day on air and on bloomberg quicktake, powered by more than 2700 journalists and analysts. Im karina mitchell. This is bloomberg. Haidi the u. S. Is adding additional restrictions on huawei, aimed at cutting its access to chips. This is the latest news in an increasingly tense relationship between washington and beijing. Stephen engle joins us now from hong kong. What are these new curbs . Stephens according to the commerce secretary wilbur ross, this is designed to slow close down some of the loopholes that they claim huawei was trying to exploit following the previous restrictions on huawei that were announced back in may. Now, what the market is seeing is that huawei potentially could run out of its stockpiles of certain self designed tips, essential to telecom equipment, by early next year, 2021. Keep in mind, this initial u. S. Ban back in may forbade foundries, including in taiwan, from making the chips that were designed for huawei using american equipment. 38s new restriction adds huawei affiliates and 21 countries to this economic blacklist. As the u. S. Tries to limit adoption of huaweis 5g technology in various markets around the world. Nutshell,t curb, in a cutting access to commercially available chips to huawei. Yes, another indication that relations between china and the United States are straining. Shery yeah, it is not only about huawei. There are so many different firms, including other Chinese Companies that are feeling the pressure. Now we are hearing that tencent has hired its first lobbyist in washington. Stephen thats right. Service, the big messaging service from tencent. Obviously, it has been pretty much over the next month and a half, will be banned in the u. S. Or from u. S. Customers using that service. Tencent, not surprisingly, i guess you can say, has hired its first d. C. Lobbyist. It has recruited roberto gonzales, former Treasury Department counsel. He will be working the halls of the powers in washington to try to see what it be done to rectify this situation, which we had an interview with the president of the Shanghai American Chamber of commerce yesterday. He said it could be very devastating if it extended all the way to china. The chinese equivalent to wechat, that would be devastating to small and mediumsize businesses on both sides of the pacific. Shery Stephen Engle there. Coming up, the Democratic NationalConvention Kicks off virtually in a few hours, as the Postal Service remains a partisan flashpoint. The latest from capitol hill, next. This is bloomberg. Plenty tose democrats add 25 billion in funding for the u. S. Postal service. The legislation scheduled to be voted on saturday. The bill would prohibit service cut to strengthen the agency head of the november election. That as the Democratic National convention is set to kick off virtually in a few hours. Bloomberg contributor and Political Science director joins us now. Great having you with us. Tell us how important it is to deal with this usps crisis in order to avoid a disputed election this fall. Its becoming increasingly important. I think for democrats, once the president came out a few days ago and said he did not want to support or opposed funding for the Postal Service because of his opposition to some forms of mailin voting, that really was something that got the democrats active on this issue. The president has since tried to walk that back. What we really have here is something that started out as a mundane Funding Crisis that has erupted into this political crisis. The speaker of the house is bringing the house back to vote on saturday on this 25 billion of new funding. On monday, you are going to see the new postmaster dejoy and the board of governors, chairman robert duncan, testified before a House Committee led by none other than carolyn maloney, who herself did not know she won her own primary in new york for six weeks because of some problems with mailin voting. It is going to continue and heat up over the next week. Course, we are gearing up for the Democratic National convention. What does and all Virtual Events mean . The implications for things like fundraising and networking, which is so crucial for these events . Jeanne yeah, it is going to be so fascinating. We have never seen anything like it. You just put your finger on what is a huge change that has not been discussed a lot, is the fact that networking that usually occurs, the face to face, the handshaking over this week or longer that people would theoretically be in milwaukee has now all gone virtual. And the impact on fundraising is something we are all curious to see. Ticket bidenharris raise money . They need to keep up that momentum. They are trying to do that as the president himself is crisscrossing the country, counter programming and raising money of his own. Shery what are polls telling us . Jeanne we are still seeing in most polls that biden has somewhere in the high single digits, sometimes lower double digits lead. We did see this new cnn poll come out of the last few days which had it narrowed quite a bit with trump underwater or behind biden by just four points which is the closest we have seen it made the race does, if you believe either the cnn poll is an outlier or not, most polls have biden still ahead. As we look at this convention, one question is are the democrats going to get a bump . In the last few years, the bumps from the conventions have not been as big as they used to because everything is so highly partisan. On the heels of the democratic convention, the republicans will have their turn. Biden really wants to get a bump out of this both in terms of the polls and the front raising to keep up the momentum as we go into this typical labor day kickoff to campaign season. I think we should remember that conventions and debates are really the only time, particularly in a covid environment where the entire nation and world will be able to see these candidates publicly talking and making their cases. Really appreciate your time is always. Bloomberg contributor and Political Science professor jeanne zaino. Coverage of the Democratic National convention, bloomberg tv and radio will be simulcasting starting at 10 a. M. In hong kong, 10 p. M. In new york, 12 00 in sydney. Lets get a quick check of the latest business flash headlines. Teslas relentless rally has driven its valuation above that of procter gamble. Will be able to dominate the auto market of the future. The stock closed up 11 that a record with reports of a fallen registration made in cars. Tesla is now more than 300 up this year with a market value of 13 billion dollars. Facing scrutiny from the occ and the fed. The bank is being asked to explain how it managed to send money by mistake to creditors amid a business fight between them and the cosmetics company. The amount equal to the full principal of the loan and found its way into lenders accounts last week. Some paid it and some havent. Citigroup has claimed a clerical error. Epic games is asking California Court to stop apple from blocking the app. Epic is seeking a restraining order to stop apple from removing fortnite from the app store. Last week, epic sued apple and google for removing fortnite. Escalating a tech dispute that has been rumbling for weeks. Legal action by bank of us trailing bondholders and a rescue plan to move ahead has been knocked back. The federal court of australia has sent a request for the administrator for creditors, having already agreed. Virgin australia creditors meet in three weeks to formally approve the deal. Australias secondbiggest bank has cut its dividend as a chores of cash amid the follow fallout. 920 million u. S. For the third quarter. Lower Interest Rates drove its net interest margins slightly, with an impairment charged of 600 million u. S. Coming up next, some of the worst hit states in the u. S. Show signs of easing. Big deals being made among pharma giants. The latest on the Coronavirus Impact next. This is bloomberg. Karina youre are watching daybreak australia. We begin with china. Hitting back at president trumps band on tiktok in the u. S. , saying that i dances close to launching. The president says he is concerned about National Security but beijing rejects that as bullying and the denial of market forces. The two sides are trading barbs as relations deteriorate with planned trade talks postponed indefinitely. House democrats plan to add 25 billion to the u. S. Postal service in legislation set for a vote on saturday. The measure would prohibit cutbacks of the service ahead of the election when millions of election ballots are due to be mailed out. It comes amid a wider stalemate in stimulus measures. Thedemocrats a pioneering political conventions with an event to nominate Joe Biden Kamala harris that will be almost entirely virtual. The speakers wil