The simultaneous listing could bring evaluation of 225 billion dollars and may raise more than aramcos record sale. Day twot lady headlines of the republican convention. The theme is the land of opportunity as Melania Trump makes the case for her husband winning four more years. Working news at the moment. We are getting confirmation that the u. S. Business will be charged in a generic drug pricefixing probe. This coming from the department of justice, saying the Pharmaceuticals Company was charged for its role in a saying teslas u. S. U. S. Mers tevas consumers were charged 350 million. It was charged for conspiracy including landmark and glen tech. Nd apple it is falling more than 4 in postmarket trading. Teva pharmaceuticals being charged with conspiring to raise prices for generic drugs. This is after years of pricefixing in the generic drug market. The doj saying it is the seventh company to be charged with generic drug pricefixing. Teva was charged for pricefixing. You can see the stock after markets falling more than four point 5 . Haidi. At howlets take a look the asian markets are setting up a missed what was a pretty benign day in terms of moving slow in the u. S. But still, we saw the s p 500 as well as the nasdaq matching up the Third Straight days of record highs. We are seeing futures trading pretty flat at the moment. A muted start in asia despite the record high on wall street. Seems like investors, despite things like Consumer Confidence falling, are pricing in a robust recovery. Just under. 1 higher. We saw the greenback on the back foot again in the overnight session. We are watching crude prices currently trading at 43. 44 a barrel. Laura,g Tropical Storm expected to strengthen into a hurricane greater than before making landfall this week. U. S. Gasoline futures hitting the highest since march over these concerns about the possible impact of the hurricane on fuel shortages. Shery. Shery lets turn to jack mas group which has filed for its longawaited ipo which will be a joint listing in hong kong and shanghai and could possibly be one of the biggest market debuts in years if not ever. Stephen engle is taking a closer look and joins us from hong kong. So what do we know about this ipo . Stephen we know it is going to be big because people familiar with the situation say that the company is likely seeking evaluation of upwards of 225 billion dollars u. S. And that an ipo of it based on 30 billion u. S. Dollars if Market Conditions hold up and we could see here that would put it beating therld, saudi aramco ipo, up 29. 4 billion, bigger than alibaba, its parent company, listing in the United States. Softbank, the biggest ipos. Alibaba is jointly listed. Also here in hong kong last year for the 13 billion ipo. The numbers are quite staggering. Its cornerstone, alipay payment service, we had 10. 5 billion in revenue in the first half. This coming out of the earnings report, most recently shedding some light on the financials of this company. They had a profit of 21. 2 billion yuan, but if you look at alipay, and the staggering member is 17 trillion in transactions, 118 trillion yuan in the year through this past june. 700 11 million active monthly users in the same period, 12 months through june. The app had more than one billion overall users, more than 80 million merchants are using alipay, mostly in china. Proceeds, according to the prospectus, is going to be used to expand crossborder payments. That is a significant issue. Of course, right now, with the ongoing u. S. China trade war. Haidi we know it is listed in new york. Can we say they have avoided a u. S. Listing because of these uncertainties associated with the u. S. China tensions . Stephen you might want to draw that conclusion. They are not necessarily saying that exactly. They are going to go to hong kong, shanghai, with a Place Holding listing, and hong kong has been on fire with its tech listings, including the alibaba listing last year of 13 billion u. S. Dollars, but basically, but Trump Administration has signaled it has increased scrutiny on Chinese Companies that are listed in the united dates. The state department has warned University Endowment funds to possibly divest their holdings in chinese shares. Foreign equities made up nearly 14 of College Endowments that have more than 1 billion in investments so there is a sizable amount of money in these large funds that have gone into Chinese Companies. It really returned very nicely including Companies Like alibaba. That state Department Letter to those endowment funds, says holding these has high risks associated with prc companies having to restate financials. That is what the Trump Administration is alluding to. Chinese Companies Listed in the United States may have to restate their financials and some may have to delist if fraud is the allegation that is proven true. These Big Companies from china, im not saying they are conducting fraudulent behaviors, but again, the Trump Administration is putting a bigger microscope on these companies and you can draw the dots and say do you want to avoid that . Listed in hong kong, list and shanghai list in hong kong, list in shanghai. Haidi potential to get really messy. Stephen engle with us. Lets get to Karina Mitchell with the first word headlines. Karina detained huawei cfo has failed to win access to documents withheld from her by the canadian government. Restrictions on six papers involving canadas agency is warranted in the information they is not relevant to her arrest 20 months ago. She wants canada to dismiss the extradition request that alleges she and huawei violated International Trade sanctions. The president of the Un Security Council has rebuffed u. S. Demands to restore extensions on iran, prompting the u. S. Ambassador to accuse members of supporting terrorists. Last week, mike pompeo insisted washington has the right to reimpose sanctions despite abandoning 2015 nuclear deal. All Security Council members, bar one, say the u. S. Move would be illegal. The u. S. Continues to be the focus of the coronavirus, but there are signs infection rates are slowing further. California and florida show improvement while arizona has been taken off new yorks travelers quarantine list. Some u. S. Universities are seeing a spike in cases. Further afield, new infections in france slowed. Pedro sanchez rejected calls for a new nationwide lockdown. Near an germany, fourmonth high. Hong kong will not relax social distance they will relax social distancing rules. Parlors, ands, ute some Outdoor Sports venues will also reopen. Thailand has approved an extension of its virus emergency plan through september, seeking to prolong its streak of threemonth without a local covid19 transmission. Global news, 24 hours a day, on air and on bloomberg quicktake, powered by more than 2700 journalists and analysts in more than 120 countries. I am Karina Mitchell. This is bloomberg. Shery. Shery still ahead, we will assess what could trigger the first tradable correction in equities. Theresa kong says Growth Stocks will continue to outperform. Its, palantir lays out plans to go public in a direct listing. Details on that, ahead. This is bloomberg. Haidi Morgan Stanley is warning investors growthlson once of a scare to be followed by a rates care and that might be a sharp increase in lung data rates given the federal reserves lack of willingness to employ yield curve control. Next guest sees rates well anchored and lower for longer. Theresa, always great having you with us. Take a look at this gtv chart on the bloomberg. We are now seeing signs of perhaps yield starting to gain ground a little bit, at least taking on the 50 Day Moving Average when it comes to the 10 year yield. What are your expectations here given we still have yet to see, mind you, congress is next round of fiscal stimulus measures, and what will that mean when it comes to rate and its impact on other Asset Classes . In the shortterm, it is certainly possible for rates to back up a little bit from your here. From it is important to ask where rates will be over the longer term. If you look at it from a longerterm perspective, we see rates being well anchored. The reason is as follows. There are structural reasons. It is largely due to demographics of aging populations. Lower productivity growth and even things like inequality and no Public Investment has all lowributed to our structural rates. In the shortterm, could we see a reprieve . Certainly. With 10 year yields above 1 , i would be getting along. Shery what does this mean when you have u. S. Rates so low and you have the valuation of these Companies Just soaring . Teresa when using about u. S. Rates, it surprises from all Asset Classes. When you look at equities, one of the key things we do is we discount future cash flows. It really means we are assigning the same value to a dollar tomorrow as we do today. Things has shifted valuations in favor of both companies. Will this persist . Over the oneyear to threeyear perspective, we think we are well anchored. Types of valuations we have seen. With the flood of liquidity we are seeing, the lower cost of capital, does that translate to the lower cost of efficiency in terms of what bang for your buck you are getting in terms of this Monetary Policy . Teresa absolutely. You can think about it. If you can borrow lower, it means you require return on the capital is also lower. That translates to more zombie companies. The thing about these companies that would have folded under a higher Interest Rate environment would have been that much higher. Along withan muddle lower costs. Classic value traps. We think that those are the type with continued operational shocks from covid. Haidi haidi do you expect broadbased dollar weakness to continue . Does that change and who are the winners in the asian space . The 10,000s question right now. We do think that the u. S. Dollar will continue to weaken against currencies like the euro, asian currencies like the dollar. We cannot really say the same of all em currencies, so investors should not see this as a on, where it is a tide that rises all boats. We think the fate of emergingmarket currencies will depend on how quickly they can recover for covid19. A lot of this will have to do underlyingur structural factors are. For countries that are dependent on things like terrorism, its going to be difficult for them to recover, given that we are not seeing, at the moment, treatment. At this point, we are underweight currencies and we are overweight other currencies. Shery we are headed towards jackson hole symposium. We are expecting chair powell to discuss the policy framework review. Heres our question of the date coming from mliv. What do bond traders fear most at jackson hole . Teresa has them all broadcast that the fed is willing to lead inflation run higher for longer. Certainly be true before covid. We were not able to hit our 2 inflation targets. That is what the market has priced in. It will be difficult for us to imagine a scenario where the fed wants to surprise the markets. The fed really very much is providing a put and they feel this is a time when the economy really does need extra. If the fed said something very different than what is priced in the market, it could hurt the markets. That is a very low probability at this point. Haidi always appreciate your time with us, teresa kong, head of fixed income strategy for Matthews Asia with us. Testing an experimental antiviral pill that might have the potential to unseat covert treatments available right now. We will get the latest on these developments. This is bloomberg. Haidi news at the top of the hour. An israeli drugmaker has been charged by the department of justice for conspiring with rivals to raise prices for american medicines. Shares fell in the regular session and slumped after the bell. Lets get more from Michelle Cortez on the story. What do we know and what are the implications in the significance of these charges . Michelle this is the latest company that has been charged with pricefixing with generic drugs. The Generic Medicines are supposed to be less expensive than Branded Pharmaceuticals because Drug Companies dont have to do all the research and development to get them out there but the allegations are the Generic Companies are working together to prop their prices up together so when they are going against everyone keeps their price high and no one gets the benefit for having lower prices. Shery we have also some news when it comes to these antiviral pills coming from merck. Experimental, but it could really have an impact on authorized treatments for covid19. Michelle we have been waiting to have some type of a pill or therapeutic that will make a difference when it comes to coronavirus and this is the first product that is going to come along. That is what many people think of as drugs. It is something you could theoretically get a prescription for from your doctor even if you have a mild case. He could take it at home for five days. More likely to recover from coronavirus. Everything with this virus is still early days so we are waiting any day now to get the phase two results and then merck is supposed to be starting its next trial of this medication in september but the only things we have now are things like convalescent plasma and remdesivir so you generally have to be in a hospital for those. If we can actually get a pill, that would be a huge breakthrough. Shery that would be great news. Michelle cortez, our health care reporter. Lets get a quick check of the latest business flash headlines. Air asia reported a record loss of 230 million for the Second Quarter, becoming the latest carrier to reveal the extent to which the coronavirus has decimated the airline business. Plunged 96 e period in just 20 million. The group ceo has been looking at ways to raise capital. Cutican airlines is to another 19,000 jobs when the federal payroll a ends on on october aid ends 1. 17 thousand people will be furloughed and eligible to return should conditions improve. Virgin atlantic has won the support of creditors for a 1. 6 billion rescue plan for the next one point five years, aimed at returning the airline to profitability. Identified 1. 5 billion dollars in cost savings and 800 million will come directly from shareholders, including virgin itself. The rescue needs the approval of the British High Court. Staying with the airlines, a european carrier reported thirdquarter results that were better than initially feared. That sent shares soaring. The ceo spoke with bloomberg about the impact of the pandemic on his business. That we arear extremely dependent on the travel restrictions imposed by different governments and different countries. Since they dont work handinhand, rather uncoordinated, it creates anxiety among our customers. For example, when we went into an beginning of july, we saw ease in travel restrictions that would cross a number of the European Countries which created a rather significant request for additional demand. People wanted to travel for primarily master purposes. Thehe end of the month, whole thing shifted, and some countries started to reimpose restrictions again and close down the freedom of travel. Of course, travel stopped rather quickly and ceased to exist. It is very volatile and makes it very hard to plan and predict. We move into the fall, we are fairly dependent on business traffic and the behavior has shifted that people tend to book their travel close to departure so we have very limited visibility into the future months, i. E. , october, november, and december. Again, makes it difficult to plan. Uncoordinated activities among governments is a key issue for us. How do you think demand would react if there was a vaccine that was widely available . That would make a huge difference. That is what will be required in order to have a more stable situation. That is what we plan for a fairly slow rampup in demand and that will continue throughout this year, throughout the whole of 2021 to 2022, when we believe we might have some more stability in the month, and at levels that are comparable to precovid19. To 90 but maybe 80 what it was back then, but i think we need to have seen a global vaccine. Pursuing acurrently rights issue. You need your creditors to sign onto that. This is the financial lifeline that is required to keep the airline going. What kind of feedback are you getting right now about whether or not your terms will be accepted . It has been extremely intense work throughout spring and summer, trying to get all these different take holders aligned and build back a tangible and robust recapitalization plan. I am pleased we have been able to announce a plan that is fully. Acked by our shareholders the government of sweden, the government of denmark, and the foundation. It is a plan that has been fully endorsed by the e. U. Commission, which said this was compatible with state regulations. We agreed agreement in principle with our key bond holders and hybrid holders that they would want to convert that into equity. I think we made significant progress but we cannot claim victory yet. Bondholderset all or the majority of the bondholders in favor of this, which will happen on september 2, and then we need to turn to our shareholders on sept