Bytedance will retain overall control. President trump says he may change his mind about approval. We are joined exclusively by st. Louis fed president James Bullard ahead of jay powells trip to capitol hill. The fed chair will say the u. S. Faces a long and uncertain virus recovery. Shery heres how u. S. Futures are coming online. A little bit of pressure at the open, this after we saw the s p 500 lose ground for a fourth consecutive session in the regular trading our. It was the longest losing streak since february. We had banks sinking at least 3 on that report detailing suspicious transactions at global banks. ,e had also surging virus cases not to mention doubts over another round of stimulus measures. That really sent stocks down. We have the nasdaq at one point falling as much as 2. 5 , but it did pair back some of the losses with a bullish reversal in the afternoon. Down only 1 10 of 1 . We are this week watching closely what chair powell and secretary mnuchin will say in congress. We already heard from chair powell saying the path ahead was highly uncertain. Take a look at what oil is doing at the moment, this after it fell below 39 a barrel in the new york session. We have those stock declines putting big pressure on oil after last week ended in a bullish note it was the best week since june for wti crude. We also had libya signaling the resumption of oil exports, right now reversing those earlier losses. See how things are shaping up for the asian market. Sophie kamaruddin is in hong kong. Sophie asian futures are pointing to losses, looking at the tech space for a move of what we saw overnight in the u. S. Keeping an eye on game makers on the back of microsofts deal. Ahead of teslas battery day, we are keeping an eye on battery makers like lg and panasonic after elon musk said tesla would boost its purchases. Miners in focus. Lithium will outperform other ev Battery Materials in the coming years. Precious metals had a down day. In the face of a stronger dollar. Back above 1900 but under pressure this morning. The aussie folding steady after falling as much as 1. 6 overnight, not trading at 72, head of the rba Deputy Governor speak which will be closely scrutinized for any youll conserve and qe. The Hong Kong Authority hosting the peg once again to curve the hong kong Dollar Strength amid this flood of ipos. Set to debut today. Offshore yuan trading near a oneweek low as we see the pullback in Risk Appetite overnight. Haidi . Thing that will be weighing on the tech sector will be the tiktokoracle deal, suddenly looking shaky again after President Trump said he might reneg on his approval if he finds that oracle does not have total control. The government signaling reluctance on the deal. Our senior tech reporter shelly banjo has the latest food this roller coaster ride continues. We know other this deal, oracle does not have total control, so what happens now . Shelly now you are seeing both governments go back domestically message and managed, pr Crisis Management to their own constituents. You saw trump go on fox news during the morning in the u. S. , saying we are still going to maintain control. Theres no way i would approve of a deal that does not maintain that. He will use the figures and the fuzzy math that has been put forward to justify that. Meanwhile in china, you have state media come out and say beijing will not approve anything that requires the export of algorithms or chinese tech. With this deal, you kind of have both sides trying to claim very opposite angles and goals in a way thats not going to happen the way both governments want it to. Shery with both sides taking a hardline, what are the chances a deal will eventually get made . Shelly i think that the way the deal is structured now allows donald trump to be able to claim many of the soundbites he wants to, which is a new tiktok will create jobs for the u. S. Create tech will dollars for the u. S. And a partnership with oracle will harbor the american data safely. Hood, you still have bytedance, a chinese company, owning the majority of this newly formed tiktok. And you have the algorithms squarely in the hands of bytedance. Both sides could claim victory, it is a matter of whether or not you dig into the details. Shery shelley banjo with the latest on that tiktokoracle deal. Lets go to Karina Mitchell with the first word headlines. Karina fed chair jay powell will tell lawmakers later tuesday the u. S. Economy is improving but has a long way to go before fully recovering from the virus pandemic. Comments release the head of his testimony say many Economic Indicators show market improvements for employment and overall activity well below precovid levels. Hell add the path forward remains highly uncertain. Meanwhile, ecb president Christine Lagarde says there is still room to had stimulus and can adapt the program if the euro zone economy needs more help. She says the Third Quarter will see a rebound, although he recovery from the coronavirus recession has been uneven and incomplete. Economists expect the ecb to expand its 1. 5 trillion bond buying to bolster the rebound and revive inflation. Released arats have stopgap funding bill that lack support the white house or senate republicans, raising the threat of a federal shutdown at the end of this month. The draft would extend current spending through september 11 but does not include 30 billion in farm aid that the administration has been seeking. Both parties say they want to avoid a shutdown. France says the eu should keep pursuing a trade deal with u. K. But warns any british violation of the agreement would bring talks to an end. Paris criticize Boris Johnsons admission that the withdrawal would break international law. The former u. K. Prime minister theresa may is the latest senior conservative to reject the bill, saying she will not support the move. Johnson will hold urgent talks as covid19 cases surge of the u. K. There could be 50,000 new infections each day without urgent action. That triggered speculation of a new lockdown for jp morgan warning a two week lot shutdown could not off of gdp and require new stimulus from the treasury and bank of england. Global news 20 for hours a day on air and on bloombergquint take powered by more than 2700 journalists and analysts. Im Karina Mitchell. This is bloomberg. Back to you. Shery coming up, dont miss our exclusive interview with st. Louis fed president James Bullard on the road ahead for the u. S. Economy. Gilbert tells us the recovery in the market is likely to slow more. This is bloomberg. Clearly, the mood has soured on a number of fronts that has created some air pockets for the market. The dollar has spiked today. We have seen the yields falling a little bit. I think a lot of it is atmospheric. Some of it is we have just come off a couple of weeks where investors are starting to question the valuations. Then, we already knew as you get into the end of the year, as we get into the colder months, the virus numbers are going to pick up. We have the u. S. Election approaching. This is almost a perfect storm for a lot of volatility. If the market is moving, the reallife vol is up a lot. I think theres uncertainty around the election that will stay with us for a period after the election. Earlierome of the guests of the selloff we are seeing. Lets get more insight on those moves. Our next guest says valuations may be causing markets to take a second look at tech. Joining us is wealthwise financial ceo loreen gilbert. Chairman powell is excited to reiterate how virus dependent the recovery is an have a long way there is to go on how quickly and resiliently the economic recovery could go. Does that mean we will still continue to see the decoupling between the real economy and what we have seen with the euphoria of markets . Loreen yeah, i think we are experiencing right now a number of things that are affecting the markets. What is a stimulus tantrum that we have not received any new stimulus news in the month of september which we have been awaiting. We also have this talk of increased lockdowns or relocking down the economy. With that really means in the markets is theres going to be a decrease in demand if people get locked up again which would mean we have to go to a risk off move that is what we have seen in the markets today. Haidi lets talk about tech because we talk about this market nearing a formal correction. You take a look at the valuations we see across a lot of the tech darlings. These are stocks still up between 50 and 200 year to date. Can we really say we are close to any kind of bottom . Or do you find the reentry point if you are not already invested . Loreen i think we certainly said that technology is the way of the future and it has been an area that recovers the fastest and was on the leaderboard. When you do look at those valuations, we are still remaining above are averages over the longterm it really puts us in valuations that exceed our 25 year averages. When you look at that, you have to be cautious. Having said all of that, i think this is somewhat of a normal pullback in the markets and that is good for the markets to kind of regroup again. For those investors that thought they may have missed out on opportunities anin technology, this is a time to be looking at those darling names that investors want to hold and look for opportunities to buy in as they have pulled back quite a bit. I would say look for those has ways to enter into the market. Shery no wonder we are seeing so much volatility. Tech volatility, according to this chart on the bloomberg, surging to almost a higher level since the bubble the dotcom bubble. Today, we have seen dip buyers getting into the market, the bullish reversal in tech. I have to say, how risky is this narrative when we are looking towards a president ial election, and no matter who gets elected whether it is democrat or republican in the white house, we are expected to continue this discussion of antitrust, that no matter who is in congress and the white house, these conversations are expect it to ramp up. Loreen i completely agree with that. I think no matter who wins this election, there is volatility leading up to the election and potentially after the election. Whenever theres uncertainty, the markets dont like uncertainty. Right now, theres quite a bit of uncertainty when it comes to antitrust, that you just mentioned, that would affect those largecap tech names that we have seen, as well as potential tax proposals that could impact corporate profits between 5 and 10 . Looking at all of those things has the markets nervous. For investors to continue to look for more volatility through this fall leading up to the election. I in the meantime shery in the meantime, given we continue to hear the economy remain supported by fiscal and Monetary Policy, when would it be time to get into those cyclical names and value names . Loreen thats what we are talking to investors about. Look to other areas of the market. Today, some of those areas got hit pretty hard when you look at industrials, materials got hit, financials got hit. Those are some of the names that could be leaders of the future. I say where we go from here when we look at Market Drivers is the market is looking for fiscal stimulus as well as a vaccine approval. When we see that happen, which i do think we will see both of those happen, sooner or later, but when we do see that happened, the market will respond in a positive way. Even with all of these headwinds we are looking at today, whether it be increased china tensions, stimulus questions, and lockdowns, what we know is the recovery is taking longer than we all had hoped which is what we said all along that we expected a w shaped recovery. With that, expect that w and know it will come to the other side. We do think there will be a rally on the other side of this once we get that vaccine. Shery loreen gilbert, always great having you with us, healthwise financial ceo. Watching closely any headline related to the coronavirus as fatalities approach the one million mark with a number of infections continuing to increase. Dr. Joshua sharfstein spoke to bloomberg about what number will make people really woerle. There is exponential growth and the curve is pretty steep. Really,in a few days you could get to double the number of cases that you have before. You have to really do something to control the spread of that point before you really start to see it takeover. When you look at some of the things we were looking at, what do we understand about why more people catch it but less people end up in hospitals . Is it because it is laggard or because it is a different type of population that is catching the virus right now . I think it is a combination of factors. One is we are finding the virus and more people that are at lower risk so the rate of people getting very sick is lower. The other thing is theres a better understanding of the virus. For people who do get sick, they can get oxygen faster. If they go into the hospital, theres better treatment for them so they are less likely to die. It is the pretty deadly and it is the legacys that everyone is rolling the dice if they get it, because even younger people can get quite sick. Why is it some of the vaccine trials in the u. S. But not in the u. K. . Great question. Theres obviously concerned about the adverse effects that were found, for the potential adverse effects. Thinking about the transverse myelitis and the other conditions that show up in the trial. In the u. K. , they may feel comfortable moving forward. The u. S. May still be asking for information. I think it would be great for both the regulators to be exciting there thinking, otherwise it could look confusing. If theres one thing we are trying to understand, there is so much of a dispute about the timeline. Doesnt really matter to keeping people healthy if we have it in december or the First Quarter of 2021 . We want a safe and effective vaccine as quick as we can, but its got to be safe and effective. I think the election has distorted the discussion of the timeline in the united states, but most people seem to think the trials are on track to report results later this fall. That would drive what happens after that. I think we are in for a period where we will be hearing about multiple vaccines, we will try to set up a Distribution System which will be challenging for certain kinds of vaccines because of the requirements, and people will have a lot of questions. Just really important for us to have a clear, consistent, scientific voice guiding that to inspire confidence not just in the general public, but the Health Care System so that people can turn around and recommend it with full confidence to their patients. Joshua sharfstein there speaking to bloomberg. A reminder that the school is supported by michael bloomberg, founder of bloomberg lp and bloomberg philanthropys. Coming up, speculation the Appeals Court judge Amy Coney Barrett could be President Trumps pick to succeed ruth bader ginsburg. We will get the latest rate ahead. This is bloomberg. Shery President Trump moving towards nominating Amy Coney Barrett as his pick to replace the late ruth bader ginsburg. Trumpswas one of Supreme Court finalists in 2018 when he replaced anthony kennedy. Lets get more from our government congressional leadership reporter emily wilkins. What do we know about this judge and the timeline of when the vote could finally happened . Emily the timeline is a little bit up in the air, although it seems very likely it is going to happen before the end of the year. The question is will the vote come before or after election day . Trump said today he wants a Supreme Court pick before november 3. He thinks it is going to be a net positive for republicans. However, it remains to be seen a little bit. There are some lawmakers out there, republicans who are in very difficult races that are representing states that lean heavily democratic. If they take this vote, that might mean democrats wind up with control of the senate next year. Impactin terms of the potentially this nomination and the filling of the Supreme Court vacancy could have on the coronavirus stimulus bill, i am wondering the implications of that. I want to point out we are now looking at life pictures of the president speaking, making comments at a rally in dayton, ohio at the moment. Emily the chances for coronavirus stimulus, they didnt look good last week, they look even worse now. The filling of this report vacancy will overshadow a lot of the senates work for the next several months, potentially the end of the year. Keep in mind, the coronavirus stimulus bill is also competing for time and attention with a bill to fund the government before october 1 because at that point, we have a government shutdown, something both sides have expressed they dont want. There are still some negotiations and agreements that need to be reached before we have a bill to fund the government. Those are two of the big priorities right now and the relay has not been that much of any sort of indication that republicans and democrats are closer to an agreement. Wilkinsll right, emily the latest in washington. Lets get a check of the latest headlines. Tesla say it may make its own battery cells to meet demand even as it ramps up orders from outside. Elon musk tweeted the possibility ahead of the Company AnnualShareholder Meeting and annual battery day presentation which is expected to showcase innovations aimed at maintaining teslas lead. Indicates tesla may be in line for a record quarter. Nicholas slumped dramatically after the founder resigned as executive chairman. Wedbush analyst says the departure will be seen as a gut punch to the lofty ambitions with having playdom key role in driving the vision. Nicola has backup and the move will allow to focus on expanding its links with gm. Hsbc slumped sharply in hong kong and london amid the fallout of transactions. Named inmost 100 banks leaked documents which faces 2 trillion of transactions. Hsbc has temporarily banned staffer posting on social media accounts over fears of negative rea