National security and tiktok says it is pure politics. And the official nomination of President Trump at the republican convention. He says his opponents want to steal the election. Haidi we have again u. S. ,arkets with fresh record highs a little relief given expectations of the fasttrack process when it comes to vaccines and therapeutics as well. The s p 500 notching another alltime high, there is optimism the virus will not hamper growth. We are seeing a muted session on it comes to the futures sessions, flat at the moment. Little negative when it comes to the start of trading in asia. The nikkei to do five trading in chicago seeing downside about 1 10 of 1 . Dollaryen holding. The biggest declines in the g10 space was the kiwi and looney. We are also watching the price of crude as we have twin storms approaching. 80 of refinery output in the gulf of mexico has been halted, potentially seeing some impact when it comes to crude prices, which did rise, gasoline hitting the five month high overnight. That price is moderating and it comes to trading in new york crude at the moment. Shery and it is official, the u. S. China tussle over technology and trade is now in court. For the latest on tiktoks lawsuit against the Trump Administration, lets bring in david ingles. What is tiktok claiming . Claiming that, to borrow a phrase from the chinese, smash and grab is the simplest way to describe it it is unconstitutional and violates the right to due process. They basically have said they have provided more than enough documentation to support, among other things, that they have taken extort an measures to ensure things like Data Security and that despite that all of this has been ignored and theyve not been engaged by the u. S. Government, have a look at this. Im going to paraphrase this to make it simple, that the u. S. President is taking plaintiffs property without compensation. It says it has been ignored multiple times. In other words, again, it is a violation of a right to due process. Andcase was filed in l. A. , you will see it is against the u. S. President himself. Hearinghat are we also about a tiktok employee filing a separate lawsuit . One was in san francisco. A few hours after the case was l. A. By bytedance in patrick ryan, at google 10 years and then joined bytedance a couple of months back. His contention is essentially as well, unconstitutional, that he hasnt received any notice and that the ban was an effect would in effect the private from having a job and a paycheck. As a u. S. Citizen, he says i see a clear due process problem. That one is in san francisco. Shery what is the white house saying . Also what is being said about tiktoks chances . David it is a tough sell. For one, and it is separately in our story, decisions made by the committee of Foreign Investments are all but impossible to overturn in court. That is the legal reality. We are getting a comment from james dembski, the executive director at the Berkeley Center for law and tech. He says courts generally do not challenge the president when he invokes national security, that is one. The other is that it would be a tough sell for tiktok or bytedance to establish that they did at the beginning have the First Amendment right. That is the legal challenge and the reality is that seldom do we see these things overturned by courts when it is in fact a decision made by the committee on foreign investment. All right, david ingles in hong kong talking us through some of the legal intricacies when it comes to tiktok and wechat. We have some breaking news across the bloomberg. To anation when it comes andisition between kirin lion dairy. We had heard airily early the australia was backing buyout of one of its best one best known dairy brands. That has now been terminated. We know that theyve been on an acquisition spree for overseas assets after they purchased the dairy and a formula producer here in australia. Lets get you the first word headlines with karina mitchell. Karina latest virus data indicates infection dates rates are declining in the u. S. Spanish cases fell from four month highs while germany is scrapping plans to test travelers from high risk regions with Health Service capacity. With restrictions on social gatherings. Hong kong investigating the reinfection from someone who recovered from the virus in april. The 33yearold man was found to have a second infection while passing through the airport returning from europe. Researchers determined he was infected by separate strange of the virus that could circulate even if patients gain Natural Immunity. President trump marked his official nomination at the Republican National convention by once again criticizing mailin voting and saying his opponents are trying to steal the election. He launched into his attacks even before he thanked delegates in charlotte for their backing. The convention opened with a few hundred people in the hall, different from different from previrus events. Oil fell in asia. Systemse two threatening refineries. Storms marco and laura have the potential to cause damage. In new slid for 10th york after earlier rising 7 10. 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. Ahead, Icbc InternationalResearch Sees more new drugs being launched in china at a faster pace. What that means for International PharmaCompanies Already struggling with agings bulk with beijings bulk buying. But first, an economist owings us. Joins us. This is bloomberg. Alert crossing the bloomberg when it comes to numbers out of oil. The interim Dividend Per Share of essentially not declaring an interim Dividend Per Share, and also revenue for the first half of 625. 6 million. Debt coming in at 2. 33 billion. When it comes in to the analyst ratings on this, we still have 11 buy, swap, hold. Costs, when it comes to the Oil Equivalent to 10. 50. 9. 50 production more in line more or less in line with expectation. We will continue to watch those. But the net loss of 266 million coming through from oil search. Heading to jackson hole, central bankers have been meeting virtually this week to discuss Monetary Policy. Our next guest says the focus has shifted to the recovery, which will be longer and more complicated that the downturn itself. He joins us now from seattle. Great to have you with us. Talking about this idea of markets being very excited about any signs of a rebound, that that is vastly different from talking about a true, sustainable recovery. Paul right. We will not see a vshaped rebound some people were talking about, we were never really in that camp. It will be multiyear and different across sectors. Some sectors are doing ok, such as tachy, parts of financial services, Health Services, and we know what got hit hardest by social distancing. When we put that together, we will talk about a multiyear recovery where we dont recover all of the lost output or get back to precovid unemployment rates until 2022 in some and in some cases 2023. Haidi as we head into jackson hole, we are seeing framework changes from the fed, does it feel like we have hit peak Monetary Policy . What can be done . It feels like were in a situation where we are looking for more than for more of the heavy lifting to come from fiscal. Paul we agree with that, the Monetary Policy swung into action early. It was effective at stabilizing the market, etc. What the heavy lifting both protecting the most impacted groups as well as link the foundation for the recovery will have to come from fiscal policy. Maybe the good news is we have a bit more fiscal space than we thought, there were worries going into this that with the debt level so high there were not be enough fiscal space to tackle the next crisis but we are here with unprecedented fiscal deficit and offbalancesheet guarantees. It looks like at least in advanced countries, fiscal response has been robust and should do a good job of cushioning the downturn. Shery yet in the u. S. We are still struggling to pass another round of fiscal measures and are at a debt loss. What are the risks of a premature austerity, intended or unintended . Paul i was going to say, this is not premature austerity. We flagged that as a risk where we get fiscal religion too early in the recovery process. This is just the government not functioning properly. There is a clear case to extend the fiscal stimulus, whether it is ppp or any other measure that supports the combination of Small Businesses and the labor market. It is unfortunate this hasnt happened in the u. S. And the risk is we get a flattening of the recovery building some momentum. We will have to see in the coming weeks whether that happens. We are still looking for a good balance in q3 but not a good balance in q3 but not as what we were hoping for. Shery after tapping the bond market at a record pace, forms firms more indebted than ever before. How much of this overhang will act as headwinds in the longterm . Paul its hard to get the data on actually what the borrowing was used for. Some of it was used to build up a cash buffer, so it was smoothing. Very little of it went to stock buybacks or to new capex. Its a question of whether it was used to coffer cover operating losses or buildable war chest. But Market Access was there and it will become clear in the coming months when we get more data in. It doesnt seem to be a huge constraint right now. As we just this gust, the constraint over the next month or two as the covid situation its wobbly is to make sure the fiscal support is still there because we are not seeing enough private sector demand and there will have to be Public Sector demand to support the recovery. See the loss in labor market activity being a global trend . We are seeing all sorts of estimate, a quarter of u. S. Jobs not coming back, 60 of restaurants, for example, and stores, not reopening. What kind of permanent structural shift you see in these numbers . Paul there are two parts to that. One is how much output will be lost permanently. If we think as the economy on a willprecovid, post covid be on a lower but parallel path. But you are right, we will have destruction of physical and Human Capital or labor and Human Capital or labor in some of these sections sectors hit hardest, whether it is restaurant or entertainment. Some of that will come back in the recovery and we will see shifts in the composition of output. There will be more online stuff, security, hopefully more Green Investment in infrastructure. We will have to resort the labor market, resort some of the sectors of the economy. Thats why we will not see a vshaped, it will take time and the multiyear bounceback. Hopefully we get back to a decent path when this is all done. We still have 2 growth in the u. S. And we dont have too much destroyed labor and capital. U. S. China the tensions and uncertainty going into the november elections, how concerned are you about a bifurcated Global Economy . Paul bifurcated is a strong word. The u. S. And china are still pretty linked up but we know where the tectonic lazar rubbing rubbing, around data privacy and security and around health security. I think that came to the fore the next couple of quarters. There will be areas where the u. S. And china will agree to disagree. We could have some duplication. We already see some duplication. Think of the number of firms operating, u. S. Firms operating in the Chinese Market and serving the Chinese Market. It is hard to buy these stories of a total bifurcation or separation. Maybe we call it a partial divorce. A partial divorce on those two or three areas i mentioned, and hopefully both sides can find their way to keep the relationship going outside of those. Something approaching business as usual. Shery as an economist do you factor in those components . Internet, different standards, and companies having to adhere to different regulations and not really talking to each other. It will raise the cost of doing business worldwide and also affect Global Growth. Do you take that into consideration longterm . Paul duplication is clearly wasteful, that is a good point that is right. On it will hit china more than the u. S. If you think of chinese growth over the next decade, chinese growth will not come from or labor or capital, it will come from productivity growth. Interacting with the u. S. And the europeans on Technology Transfer and accessing Tech Knowledge and ways of doing business, etc. Will be the growth driver for the chinese economy over the next decade. If that process gets blocked or slowed, we get slower productivity growth in china, we get slower Global Growth. Remember that china alone is driving one third of Global Growth and if chinese growth comes down a notch because they have slower productivity growth, it takes everyones growth down. That is something that could potentially move the growth needle over the next decade. Shery what happens if we get a vaccine sooner than expected . Do you see demand shooting up and what happens to emerging economies that right are suffering so badly, like india, really dragging on your Economic Forecast anyway . Paul that is one positive risk have flagged. We are not epidemiologists but we have some inhouse we are working with. Our working assumption is we get a global vaccine discovered and distributed sometime the middle of next year. It looks like that could be on the conservative side. That is good and of itself, but something we have not talked about, which is the lack of physical space in some of the emerging market countries. They do not have the fiscal resources to cushion the blow, economic or humanitarian, or support a recovery. The sooner we get a vaccine, i think you are correct the relative winners in that scenario everyone will win, but some of the bigger ems struggling with the crisis will be the happiest ones if we get a vaccine sooner rather than later. Haidi fingers crossed there. Great having you on. S P Global Ratings global chief economist. We will discuss more about the virus. Thefirst confirmed case of infection has been confirmed in hong kong. We will get the latest on that and the race for treatment, next. This is bloomberg. Scientists in hong kong firstan armed the worlds case of reinfection from someone who recovered from covid19. Michelle, we know the patient did mount an immune response but it was still a new infection. What are the implications of this . Michelle we know that can get a very longlasting infection people have been testing positive for weeks and months even after an initial infection, and researchers and doctors were not aware whether that meant they were still infectious. What we see here is the first definitive evidence that someone had a coronavirus infection, completely recovered from it, and then picked up a new virus. The reason why that happened is there was a genetic shift in the virus itself so that the second infection was slightly different from the first. Haidi what are the implications then what this means for a and the ideacacy, if we haventibodies, different strains . Michelle we know there can be drift in this virus. What that means is in an initial infection and perhaps in a vaccine, it will not provide magic bullet protection against future infections. You can still be vulnerable if you get infected again, if you come up with a different type of the virus. Is, the patient, the 33yearold from hong kong, did not have symptoms the second time around. Researchers are saying that does mean perhaps he had some protection from the first infection. While he can transmit it and can get infected again, most likely it would not make him sick and that is important for Natural Immunity and for vaccines. With thechelle cortez latest on that reinfection case. You can get latest on the hope for a vaccine and other stories you need to know to get acquainted with todays issue of daybreak. Bloomberg subscribers have it on their terminal, its also on your mobile app. You can customize it so you just get the news on the industries you want. Apple plans to start reopening Retail Stores in the u. S. That had been closed by covid19. Sorcerers say they will start with a small number of outlets this month, with customers served on appointment only. Apple closed stores back in march and began limited reopening in may but had to close more than 120 because of rising infection numbers in local areas. Cutting the price of diamonds after the coronavirus cuts into the jewelry industry. The number one producer will lower the price by 10 . Rivals de beers and rivals sold less than last year. Companyy revenue for a bounceback after the pandemic. The Worlds LargestMeal Delivery service announced a rise in the june quarter. Daily deliveries in august hit 40 million, up by 10 million in just a year. Tencent jumped the most in a month on reports white house officials are saying a ban on we chat will not be. U. S. Companies will still be able to use the messaging app in china. We are told u. S. Officials realized an allout ban on wechat could be devastating for american retail and other industries. Still to come, donald trump formally nominated for a second term. What to expect from the fourday republican convention. He is speaking on all four nights. That is next. This is bloomberg. 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 eas